Document of The World Bank

Report No: 33720

IMPLEMENTATION COMPLETION REPORT(SCL-44740 IDA-32130 TF-25682)

ON A

LOAN IN THE AMOUNT OF US$20 MILLION AND A CREDIT

IN THE AMOUNT OF SDR36.8 MILLION (US$50 MILLION)

TO THE

PEOPLE'S REPUBLIC OF CHINA

FOR A

HIGHER EDUCATION REFORM PROJECT

April 5, 2006

HUMAN DEVELOPMENT SECTOR UNITEAST ASIA AND PACIFIC REGION

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CURRENCY EQUIVALENTS

(Exchange Rate Effective December 29, 2005)

Currency Unit = Yuan (Y) Y1 = US$ 0.12

US$ 1.00 = Y8.1

FISCAL YEARJANUARY 1 DECEMBER 31

ABBREVIATIONS AND ACRONYMS

APR Annual Progress Report FDAN Fudan University PAD Project Appraisal DocumentBISC Baotou Iron and Steel College HIT Harbin Institute of Technology PIs Partner InstitutionsBIT Beijing Institute of Technology HEAP Higher Education Advisory Panel PKU Peking UniversityBNU Beijing Normal University HED Higher Education Development PKUHSC Peking University Health

Science CenterBUAA Beijing University of Aeronautics

and AstronauticsHUST Huazhong Institute of

TechnologyPPI Project Performance Indicators

BUST Beijing University of Science & Technology

ICR Implementation Completion Report

PUs Project Universities

COU China Ocean University ISR Implementation Status and Results

SARS Severe Acute Respiratory Syndrome

CUMT China University of Mining and Technology

IDF Institutional Development Fund SNNU Shaanxi Normal University

CUST China University of Science and Technology

ICB International Competitive Bidding

SJTU Shanghai Jiaotong University

CERNET Chinese Education and Research Network

JLU Jilin University SCU Sichuan University

CEP Chinese Expert Panel JUT Jilin University of Technology SEU Southeast UniversityCQU Chongqing University LCBPT Laboratory Center for Basic

Physics TeachingTJU Tianjin University

CAD Computer-assisted Design LZU Lanzhou University TSING Tsinghua UniversityCAI Computer-assisted Instruction MIS Management Information System USTB University of Science &

Technology BeijingCAS Country Assistance Strategy MTUC Mining and Technology

University ChinaWHU Wuhan University

DLUT Dalian University of Technology MOE Ministry of Education WREP Work Review and Evaluation Report

EAP East Asia and Pacific M&E Monitoring & Evaluation XJTU Xi`an Jiaotong UniversityEOP End of Project NJU Nanjing University YNU Yunnan UniversityFILO Foreign Investment Loan Office NKAI Nankai University ZJU Zhejiang University

Vice President: Jeffrey Gutman (EAPVP)Country Director David Dollar (EACCF)

Education Sector Manager Christopher Thomas (EASHD) Task Team Leader/Task Manager: Dingyong Hou (EASHD)

CHINAHigher Education Reform

CONTENTS

Page No.1. Project Data 12. Principal Performance Ratings 13. Assessment of Development Objective and Design, and of Quality at Entry 24. Achievement of Objective and Outputs 55. Major Factors Affecting Implementation and Outcome 186. Sustainability 207. Bank and Borrower Performance 218. Lessons Learned 229. Partner Comments 2310. Additional Information 26Annex 1. Key Performance Indicators/Log Frame Matrix 27Annex 2. Project Costs and Financing 39Annex 3. Economic Costs and Benefits 42Annex 4. Bank Inputs 43Annex 5. Ratings for Achievement of Objectives/Outputs of Components 45Annex 6. Ratings of Bank and Borrower Performance 46Annex 7. List of Supporting Documents 47Annex 8. Additional Data on Components 1 and 2 49Annex 9. Partnership Implementation Issues 55Annex 10. Policy-Based Research Studies 56Annex 11. Development of Textbooks and Electronic Materials 59Annex 12. Lanzhou University Student Loan Pilot Scheme 61Annex 13. List of Project Universities and Partner Institutions 62

Project ID: P046051 Project Name: Higher Education ReformTeam Leader: Dingyong Hou TL Unit: EASHDICR Type: Core ICR Report Date: April 5, 2006

1. Project DataName: Higher Education Reform L/C/TF Number: SCL-44740; IDA-32130;

TF-25682Country/Department: CHINA Region: East Asia and Pacific

Region

Sector/subsector: Tertiary education (98%); Central government administration (2%)Theme: Education for the knowledge economy (P); Social analysis and monitoring (S)

KEY DATES Original Revised/ActualPCD: 08/10/1998 Effective: 09/30/1999 10/06/1999

Appraisal: 12/15/1998 MTR: 10/21/2002Approval: 05/18/1999 Closing: 07/31/2005 09/30/2005

Borrower/Implementing Agency: PRC/Ministry of EducationOther Partners:

STAFF Current At AppraisalVice President: Jeffrey Gutman Jean-Michel SeverinoCountry Director: David R. Dollar Yukon HuangSector Manager: Christopher Thomas Alan RubyTeam Leader at ICR: Dingyong Hou Hena G. MukherjeeICR Primary Author: Hon Chan Chai

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: HL

Institutional Development Impact: SU

Bank Performance: S

Borrower Performance: S

QAG (if available) ICRQuality at Entry: S

Project at Risk at Any Time: No

3. Assessment of Development Objective and Design, and of Quality at Entry

3.1 Original Objective:The overall objective was to improve the quality and relevance of undergraduate basic science and engineering programs through integrated reform activities in curriculum and teaching methodology. The project investment, targeted at the first and second year studies, was designed to provide the impetus for embedding the reforms across all four years of undergraduate science and engineering programs.

Specifically, the project sought to: (a) enable Project Universities (PUs) to improve teaching and learning through restructuring the curriculum, reduction of narrow specializations, and introduce integrative interdisciplinary courses; (b) enable the PUs, through a collaborative partnership program, to disseminate the reforms they developed to their poorer Partner Institutions (PIs); and (c) strengthen institutional planning and administration and central coordination. The effectiveness of the teaching/learning process was to be improved by adopting student-centered strategies, and making the laboratories, computer facilities and library services more readily accessible to students and staff. Annex 13 provides a list of project universities, their codes, partner institutions, and implementation completion reports, dates and length. The project universities are identified by their code, as appropriate.

3.2 Revised Objective:The project’s development objectives were not revised. Adherence to the original objectives was a reflection of the broad consensus among the PUs on the reform priorities for their institutional development. The consensus was significant considering the variation in institutional history of the PUs and levels of socioeconomic development of the eleven provinces and four municipalities in which the PUs were located. At appraisal, there were three municipalities: Beijing, Tianjin and Shanghai; subsequently Chongqing became the fourth municipality.

3.3 Original Components:The project components were designed to meet the project objectives. Clearly defined implementation responsibilities were shared between the PUs, which would execute project activities at the institutional level, and the Ministry of Education (MOE)/Foreign Investment Loan Office (FILO) at the central, overarching level. The MOE/FILO was assisted by the Higher Education Advisory Panel (HEAP, also referred to as the "Chinese Expert Panel" or CEP) which carried out advisory and oversight functions in relation to the PUs. Each PU, in turn, had its own mini-FILO and advisory team to assist in the implementation of institutional project activities.

The three main components supported the improvement of the quality and relevance of undergraduate basic science and engineering programs by reforming the curriculum, teaching-learning methodology, and the examination system. All components were judged to: (a) have direct relevance to the project’s objectives; (b) be well within the capabilities of the implementing agencies; and (c) have been designed with the incorporation of ‘lessons learned’ from previous World Bank (the Bank) projects in China and the East Asia and Pacific (EAP) Region. The components, as implemented, were as follows:

Component 1: Achieving Improvement in Teaching and Learning (Base Cost: US$84.0 million)

The PUs would restructure the curriculum to provide broader, integrative interdisciplinary courses in science and engineering, with improved student-centered teaching-learning strategies, more accessible laboratories and workshops, computer facilities and library services. New equipment would be provided: (a) to complement the new expanded and modernized physical facilities for first and second year science and engineering programs; and (b) to establish integrated laboratory centers for new type of laboratory

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experiments which would include open-ended and research-design-oriented projects. The aim was to meet employers' demand for graduates who, having acquired a broad knowledge base, would be more practical, creative and skilled in team work.

The component’s overall objectives would be achieved through four sub-components:

(a) Restructuring of Academic Programs through continuous curriculum development to ensure the relevance of academic programs to modern market demands. Activities would include: (i) improving the relevance of academic programs and curricula through practical linkages between universities and employers by means of external and industrial advisory committees and graduate tracer system to gather feedback from graduates and employers; (ii) supporting continuous curriculum development and improvement through a feedback process linking inputs from students, graduates and employers and committees responsible for program-specific curriculum development; and (iii) restructuring of academic programs by reorganizing and broadening the content of science and engineering programs and strengthening each subject's fundamental concepts and practical aspects, which would be effected by reducing the number of specialized courses and the amount of scheduled time in each program to provide students more time for individual and group learning.

(b) Reforming Learning Strategies. The above reforms would include support to teaching staff, evaluation of teaching reforms and dissemination of outcomes to other institutions; and integration of new equipment with reformed approaches to teaching-learning. The reforms would be achieved through: (i) adoption of student-centered teaching-learning methods; (ii) improving the quantity, quality and relevance of laboratory experimental work through improved laboratory equipment, increased student access to laboratories, and changing the balance between directed, "verifying” and/or repetitive experiments and open-ended, design-oriented laboratory projects; (iii) ensuring a safe and conducive laboratory environment through renovated facilities; and (iv) reforming student examinations through more student-centered testing and evaluation strategies and a flexible course credit system.

(c) Improving Learning Opportunities and Conditions. This would be achieved by facilitating more self-directed learning by: (i) improving and updating textbooks and other teaching-learning materials; (ii) improving the conditions for self-directed learning through reduction of time for traditional lectures and increase of time for student self- or group-study enabled by open access to laboratories, enhanced computer facilities, and library resources; and (iii) improving learning-support services through improved teaching/learning and campus networks linked to Chinese Education and Research Network (CERNET) and the Internet. (d) Upgrading teachers and staff to support the reforms would be achieved by short- and long-term (local or overseas) training of administrators, teachers and laboratory support staff in higher education planning and management, and teaching-learning strategies. (For further details on Component 1, see PAD Report No. 19146-CHA, dated April 14, 1999, Annex 2 pp. 32-36.)

Component 2: Using Partnerships and Networks to Spread Reforms (Base Cost: US$5.3 million)

This component linked the 28 PUs with their less-developed Partner Institutions (PIs) to share the benefits of project investments in physical and human resource development and to widen the impact of the higher education reforms initiated in the PUs. This would be achieved by disseminating the curriculum reforms and academic program and course development and improved teaching-learning strategies in basic science and engineering courses. The partnership core elements would include: (a) training PI staff in higher degrees and/or courses in science and engineering content and teaching methods; (b) training and/or

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exchange of students between institutions to participate in teaching-learning programs and generally for the PI staff and students to use the better equipment and teaching-learning resources of the PUs; (c) sharing resources, reforms in curricula, teaching-learning methods, good practice in institutional management; and (d) development and use of electronic teaching-learning materials and routine electronic communication between teaching staff and students through CERNET and other networks.

Quality improvements in reforms would be monitored by HEAP or CEP. Good performance by PUs would be rewarded by MOE under five categories of partnership activities: (i) sharing facilities; (ii) staff training; (iii) joint research and development programs; (iv) technical assistance; and (v) donations (equipment, software, publications). PU staff would be expected to help their PI counterparts to adopt the new teaching methods developed under the project. (For further details on Component 2, see PAD Report No. 19146-CHA, dated April 14, 1999, Annex 2 pp. 36-37.)

Component 3: Supporting Institutional Capacity for Change (Base Cost: US$4.3 million)

Aimed at strengthening institutional planning and administration and central coordination, activities under this component, implemented by MOE, were organized under four main groups.

I. National-Level Technical Assistance Activities included staff training and study tours with follow-up dissemination seminars: (a) staff training would focus on project, financial, and procurement management to ensure effective project implementation; (b) the study tours to various foreign universities would familiarize senior university staff with current good practices in: (i) reform of institutional management and implementation of teaching reform (for university presidents); (ii) reform of curricula, textbooks, teaching methods and the institutional examination system (for directors of teaching affairs); (iii) improving financial management (for finance division directors); (iv) reform of laboratory management (for equipment division directors); and (v) reform of laboratory teaching and management (for chiefs of the experiment centers).

II. Policy-Based Research Studies on five research themes identified by MOE/HED, in collaboration with university experts. The themes were: (a) development of a system for quality assessment in higher education; (b) establishment of a textbook renewal mechanism appropriate for a socialist market economy; (c) managerial autonomy of institutions under legislation; (d) development of a graduate tracer study; and (e) comprehensive assessment of financial management in higher education institutions.

III. Textbooks and Electronic Materials reform and development activities were coordinated by MOE to ensure adequate dissemination of the most innovative results to all universities in the country. MOE planned to produce 400 textbooks on 200 basic courses which would include those not covered by the project, with the aim of spreading the reforms beyond the PUs and PIs. The development of management software would fall under the overall Management Information System (MIS) development activities of MOE and the various universities, while the development of teaching software would be associated with curriculum reform and teaching practice improvement under the project’s Component 1.

IV. Student Loan Pilot Scheme for Lanzhou University, a pilot scheme funded by a US$100,000 PHRD Grant to Lanzhou University, was a study of an alternative student loan scheme. (For further details on Component 3, see PAD Report No. 19146-CHA, dated April 14, 1999, Annex 2 pp. 37-40.)

3.4 Revised Components:There were no revised components.

3.5 Quality at Entry:The project was not subject to a QAG review or rating at entry.

The ICR rating for quality at entry is satisfactory. The rating is based on the following findings: (a) from

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the beginning, the project was strongly focused on agreed-upon development objectives, and this concensus remained through the duration of the project; (b) the thrust of the project was closely aligned with the Borrower’s higher education sector development priorities as described in China Higher Education Reform (June, 1997), an in-depth sub-sectoral analysis jointly conducted by MOE and the Bank; (c) the project design was consistent with the Bank’s Country Assistance Strategy (CAS, R98-107 dated May 6, 1998); and (d) the Borrower clearly considered the project to have been timely, and had shown strong ownership. It was implemented at a time when the demand for high level scientific and technological workers was at a critical stage in the nation’s economic growth, and the sub-sector could have suffered a development set-back if the project had not been implemented. The project design was formulated on the basis of a well researched and documented study (referred to above) and lessons learned from previous higher education Bank projects in China and the region. The project components were designed to be fully sustainable by the PUs and MOE. Finally, the cost estimates in the original project design were proven to be reasonably accurate, with no significant shortfall in local funding of the project.

4. Achievement of Objective and Outputs

4.1 Outcome/achievement of objective:The project was judged to have met and, in many aspects, exceeded its overall development objectives. This assessment was based on: (a) satisfactory to highly satisfactory project outcomes and outputs pertaining to all the targeted reforms; (b) strong PU and MOE commitment and participation throughout the implementation of the project; (c) highly conducive student learning environment in the new laboratory experiment centers; (d) highly satisfactory graduate employment rates; (e) effective implementation by the PUs and implementation oversight by MOE/FILO, supported by HEAP; (f) strong indications of PU and PI satisfaction with the overall implementation of the project and its outcomes; and (g) positive indications of continued sustainability of project investments. These indications are most apparent when the Borrower continues to place strong priority on continued improvements in, and dissemination of, higher education reforms, particularly in laboratory experiment centers, the key to achieving higher levels of teaching-learning in science and technology. Based on these indicators, the overall outcomes of the project are rated as satisfactory.

4.2 Outputs by components:

Component 1: Achieving Improvement in Teaching and Learning

(a) Restructuring of Academic Programs. This sub-component is rated highly satisfactory.

At the end of the project (EOP), 1,486 majors were reformed and 4,203 courses were updated (126% of the target of 3,340, MOE/FILO PPI, Tables 2 & 10) including new majors and non-specialized courses for providing undergraduate students with a broad based and flexible education program through wider range of choices. Each PU carried out the restructuring according to its needs, guided by the overall objective of deepening the reform of undergraduate science and engineering curricula, course content and teaching-learning methods. Nankai University's experience provides an insight to the general approach to academic program restructuring taken by the PUs. In Nankai (NKAI), whose reform focused on four lab teaching centers (biology, chemistry, physics and electronics), the restructuring process started with rationalization of the schools of science, followed by reforming the lab management system by integrating the teaching lab resources and establishing the basic lab teaching centers according to education objectives, lab classification and teaching-learning content. The University realized that reforming the experiment teaching system was inextricably linked to providing quality education for undergraduates. Thus, issues

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were thoroughly examined and debated among teachers and administrators to arrive at a consensus on institutional and academic objectives and strategies for achieving them (NKAI, ICR).

Infrastructure supporting teaching/learning reforms. A prerequisite for restructuring the academic programs was the provision of new or renovated lab experiment facilities, up-to-date equipment and precision instruments, computer/multimedia and library support services. All the PUs improved and/or expanded these facilities, with the largest lab area increase in Jilin University (JLU), whose lab space was increased by 264% from 11,365 square meters in 1999 to 29,967 square meters at EOP. Total PU lab areas increased by 162% from 258,000 square meters in 1999 to 419,000 square meters in 2005 (PPI, Table 3-a). The 28 PUs (including JUT, which had merged with JLU) had a total of 117 new or restructured lab experiment centers, averaging 4.2 centers per institution, ranging from six centers (PKU, TSING, and SCU) to two (USTB). Science centers accounted for the highest proportion (53%), followed by engineering (36%) and multimedia and language centers making up 11% (Annex 8, Table 1). The completion reports by each PU provides extensive details of experiment centers and the reformed teaching/learning they embodied. The new laboratories with modern equipment provided the necessary support for educational reforms.

The experiment centers became the focal points of the university reforms and provided the platforms for the implementation of the new approach to teaching-learning science and engineering, which was facilitated by the installation of new equipment collectively valued at US$57.32 million and RMB264.5 million, and the acquisition of 97,000 new science and engineering books (increased by 74% from 55,700 in 1999). Teaching and learning in the experiment centers were supported by 5,539 lab instructors, increased by 31% from 4,225 in 1999 (PPI, Table 4). The successful establishment and equipping of the lab centers, language labs, libraries and other learning resource centers had significantly improved the PUs' health and safety learning environment and broadened the opportunity for students to test their creativity and fulfill their development potential.

(i) Improving the relevance of academic programs and curricula. This sub-component is rated highly satisfactory.

The reformed undergraduate curriculum typically consisted of a combination of required common basic courses, specialized compulsory courses, optional courses, general education optional courses, and common optional courses. Within these requirements, students had varying degrees of freedom of choice, depending on the departments they were enrolled in. The reforms, originally focused on the first and second year science and engineering programs, had spread to the entire undergraduate curriculum at the PUs, and through the PUs to their partner institutions. The dissemination of reform ideas had a leavening influence on the quality of graduates, with beneficial impact on the graduate employment rate, a key indicator of the relevance of academic programs and curricula. The new skills, developed under the project, are in high demand locally and globally. The increasing involvement of industry (e.g., participation in Boards of Trustees established during sector work just before the project) in educational activities and management at the PUs helped to strengthen the relevance of science and engineering education to the labor market. This is evidenced (in early 2004) by the establishment of 438 laboratories with industry built either in the PUs or in university-linked enterprises (FILO draft APR 2004, p. 2). Selected PUs, using a survey instrument developed by SJTU under the leadership of MOE/FILO, conducted a survey of graduate employment for three years (details of the graduate tracer study are given in Component 3, below). The results from ten PUs showed graduate employment rates to be high but with not unexpected variation between institutions and changes between 1999 and 2005 (Annex 8, Table 2).

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The graduate employment mechanism which linked employers' requirements and the universities' preparation of students for a socialist market economy had to balance graduates' abilities and expectations with labor market demands. Generally, local government state enterprises offered lower salaries, while the new private enterprises, particularly foreign or foreign-linked, offered higher salaries. According to BIT (ICR p.17), employers were becoming more diverse. Up to the end of the 1990's, BIT graduates were employed by traditional state enterprises, scientific research institutes, and national departments, but since the turn of the century, graduates increasingly have been sought by multinational and joint-venture enterprises. In 2004, about 28% of total BIT graduates were employed by foreign enterprises. In 2005, foreign companies accounted for one-third of employment units advertising for graduates in BIT. A survey by HIT in 2004 to gauge the quality of education and training students received showed that those who graduated in 1998 or earlier and those who graduated in 1999 or later differed markedly (close to 0.1 significance level) in computer competence, hands-on work ability, and organizational and management ability.

The high enrollment increases from 1999 produced the first sharp increase in output of graduates of 2.12 million in 2003, an increase of 6.5 times over the 1999 output of 322,400. The situation suggested three main trends: (i) the increase was a response to the changing demands for skills in public sector and fast expansion of private enterprises; (ii) industrial specialties (e.g., telecommunications, medical technology, automobile manufacturing) became the preferred majors, and the output of high-quality and broadly trained graduates was a response to the needs of these sectors; and (iii) a growing number of graduates moving to post-graduate studies, a direct result of the enriched curricula as well as an increasingly sophisticated labor market signaling its preference for workers with a post-graduate degree.

(ii) Supporting continuous curriculum development and improvement. This sub-component is rated highly satisfactory.

Continuous curriculum development is necessary to improve design and to respond to new technologies in science and engineering and the changing labor market demands. The increased emphasis within the reformed programs in the PUs on basic scientific and technological concepts, instead of narrow specializations, is likely to facilitate continuous updating of curricula. The PUs have institutionalized various processes for continuous curriculum development and improvement, using feedback from students and graduates, as well as employers, to sustain the process of reviewing and improving curricula and related activities. An illustration is provided by the experience of Fudan University, a research-focused institution, whose major responsibility, like that of other PUs, is to build up undergraduate disciplines that meet the needs of the 21st century. The University encourages departments and colleges "to boldly undertake reforms in laboratory curriculum consistent with academic characteristics and the talent-development needs" (FDAN, ICR, p.6). At the management level, a course credit system development team, headed by the University President, and four curricular design expert teams, respectively for humanities, science, medicine, and comprehensive education, were set up to address the reform of curricular structures. The resultant comprehensive education policy combined all four discipline areas in the systematic development of advanced student talents (FDAN, ICR, p. 24). For other examples, see Annex 8, Table 2.

(iii) Restructuring of academic programs. This sub-component is rated highly satisfactory.

Historically, science faculties in China's universities evolved from physics and chemistry laboratories affiliated to basic (teaching) faculties. The specialty faculties only conducted research, while the basic faculties only conducted teaching. Thus, the arbitrary division between research and teaching adversely affected the improvement of teachers' competency and the improvement of basic teaching quality (USTB,

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ICR Part 2, Reports by the Experimental Centers, p. 6). The project reform objective was achieved through the integration of basic teaching and research, reflected in the administrative integration of experiment labs. In turn, the restructured academic programs were reflected in the PUs' increased allocation of laboratory time to students who were free to choose their experiments (see (b) Reforming Learning Strategies, below). During the project period, student use of the lab centers totalled 30.88 million person-hours per year, 27% higher than the plan to provide 24.30 million person-hours. Parallel to student use was the total lab openning hours per week increased from the average of 40 hours to 80 hours. The experiment centers served about 462,000 students, about 29% more than the planned 356,000 students. The above statistics (PPI, Table 3-b) reflect the opportunities accorded to students to do their experiments at their own convenience as part of the restructured academic programs.

The foundation for the restructured academic programs was provided by the renewed/updated lab experiments for basic science and engineering courses, of which the PUs in 2005 had achieved a total of 7,779 (65.3%) of the 11,906 total lab experiments. The experiment centers served 3,368 majors, 115% more than the planned 3,021 to be served (for further details, see MOE/FILO PPIs for PUs, Table 3-a).

(b) Reforming Learning Strategies. This sub-component is rated satisfactory.

To achieve the reforms in learning strategies, special emphasis was placed on raising the number and quality of academic staff. At the end of the project, the PUs had a total of 23,556 teachers with a Master's degree, and 21,556 with a doctoral degree, 40.2% and 36.8% respectively of the total of 58,585 full-time (FT) teachers. In 2005, the student enrollment was 867,142, giving a student-faculty ratio of 15:1 (PPI, Table 1). (At appraisal, the corresponding ratio was 11:1; thus, the situation in 2005 suggested an improvement in staff utilization, implying increased efficiency.)

The academic staff training achieved mixed results. About half of the PUs aimed to attain at least 50% teachers with a Master’s degree, but in actuality, only four (14%) of the PUs reached that target on project completion. By contrast, 20 (74%) of the PUs reached or surpassed their targets for staff with a doctoral degree. At EOP, the overall picture showed the majority of PUs did not reach their targets for teachers with Master's degree or doctorates. This shortfall, however, was compensated by a 36% improvement in the average student-full-time teacher ratio (see "Trained Teachers" below). Details of the results from selected universities are given in Annex 8, Table 3.

Apparently, one reason that caused the PUs to underachieve the targeted number of higher degree faculty was due to the fact that staff aged 45 or older were ineligible for higher degree training. Nevertheless, the project's staff development program was a catalyst for many PUs to establish their own program for training younger staff. For example, to raise teaching standards, Wuhan University (WHU, ICR p.18), like many universities in China, required young teachers to undergo pre-job training, two rounds of teaching assistance, teaching preparation, and trial teaching before they started independent teaching. Both young and mid-career teachers were encouraged to study for a Master's or doctoral degree, with the employing university subsidizing the tuition fees or providing support for overseas studies. Significantly, the training included an introduction to educational theories and modern educational technologies. All the above indicate an enlightened policy far in advance of many foreign higher education institutions where teaching staff are seldom required to have any training in pedagogy.

All the PUs embraced the student-centered teaching/learning strategy. The reduction in the lecture mode of teaching, which had no reported negative effects, provided students more time for individual laboratory work, team activities and, most important of all, for individual thinking and reflection. Examination reforms reduced the demands of the past for extensive memorization. Traditional "cook-book" lab

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activities wherein students were required to follow prescribed experiments to verify known results have mostly been abolished and replaced by experiments of greater scientific interest and learning value. They give students more individual responsibility, require higher-level reflection and challenge their innovative skills. In BUAA, for example, the updated physics lab experiment courses and the re-grouped chemistry courses were matched by a reduction of lab "verification" experiments and a corresponding increase in activities designed to focus on developing students' creative thinking and innovative abilities (BUAA, ICR p. 4). Most courses in PUs provided for peer evaluation of staff teaching effectiveness as well as student evaluation of their teachers' instructional competence. Good practices in teaching/learning were shared with other institutions through seminars and workshops, and through the university partnership program.

Updated Courses. The target total for the PUs was 3,340 updated courses by EOP, with an average of 124 courses per PU to be updated. The actual achievement was 4,203 or 126% of the target, with an average of 157 courses updated per PU. With the exception of JLU and SCU, all the PUs exceeded 100% of their targets. Among the highest achievers were MTUC (204 updated courses, 334% of its target), NJU (250 updated courses, 333% of its target), and TJU (141 updated courses, 282% of its target). (MOE/FILO ICR, PPI Table 2).

Courses with Reformed Examinations. The main thrust of reformed examinations was to replace the traditional written examination with multiple modes of testing and evaluation of student learning achievement. The reformed examinations focused on students' creativity, independence, scientific thinking, team work ability, skill in gathering information from the Internet and library, and overall capacity to learn. The PUs planned to produce 7,861 examination-reformed courses. The actual achievement was 9,434 (120% of the target). LZU with 1,560 (137% of target) had the highest number, followed by SEU, with 1,300 (130% of target). The lowest number 20 from PKUHSC was, however, 100% of target. Overall, the PUs achieved 120% of the target for reforming examinations of basic courses, ranging from 67% (JLU and SNNU) to 312% (NJU) and 304% (MTUC). In the case of JLU, the original target of 300 courses was for JLU and JUT (the latter having merged with JLU in 2000), and the actual score of 200 examination-reformed courses was a substantial achievement. All the above reflect the PUs' highly satisfactory achievement in improving the conditions for more progressive teaching/learning strategies. Details of updated courses and courses with reformed examinations in selected universities are shown in Annex 8, Table 4.

(c) Improving Learning Opportunities and Conditions. This sub-component is rated highly satisfactory.

The PUs reached or surpassed their targets for improving the learning conditions and opportunities, as demonstrated by the number of updated/developed textbooks, library open-shelf books, and annual library borrowed volumes (details shown in Annex 8, Table 5). These were in addition to the numerous computer, language and multimedia centers established and/or extended by the PUs. The above-mentioned courses with reformed examinations, as an outcome, produced other outcomes in the form of new courses to meet the objectives of the reformed examinations. An example is CUMT's establishment of a course on creativity aimed at enabling students to master the general principles and methods of developing creativity and innovation (MOE/FILO ICR, p. 68).

Fudan University's experience provides an example of improved learning opportunities and the widening range of innovative approaches to student-centered learning. The University's Laboratory Center for Basic Physics Teaching (LCBPT) initiated a succession of distinctive experiment programs, such as "Experiment Gardens," "Self-Taught Experiment," and "Open Experiment," designed to stimulate students' higher-level thinking and motivate their creativity. The Experiment Garden is a "zero-credit" study site which has no

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access time restriction and offers free entry to first and second year students to try out their favorite experiments (FDAN, ICR p.10).

Updated Textbooks. The project achievement was 6,827 textbooks updated or developed, 157% of the target 4,331. All the PUs reached or exceeded their targets, except JLU which produced 139 (75% of its target of 185) updated textbooks. Six universities (BUAA, BNU, HUST, NJU, SNNU, SJTU, TJU) achieved over 200% of their targets (for details, see Annex 8, Table 5).

Access to Library Resources. Along with increased service hour of the libraries, the old practice to lock up books and journals in the closed section of the library was abolished. Now twenty-three (85%) of the PUs had at least 50% of their books on open shelves for students to access these resources more easily. The achievements, in percentages, ranged from 100% for seven universities (BUAA, PKUHSC, SEU, LZU, SJTU, XJTU, MTUC) to 37% (BNU). A commendable case was HIT, which set a modest target of 15%, but actually achieved 78% open-shelf books.

Library Books Borrowed. Twenty-three (85%) of the PUs reached or exceeded their targets for annual number of borrowed books. Seventeen (63%) of the PUs achieved 50% and higher of book borrowings, and six (22%) PUs had 30-49% borrowings (see Annex 8, Table 5 for details). While the above indicators are important measures of the relative openness of PUs and their accessibility to learning resources for students, their importance should be viewed in conjunction with other factors, such as the availability of reading rooms and carrels in the libraries and colleges that may have reduced the need for open-shelf or take-away books. Many PUs, such as Lanzhou University with nearly 72,000 square meter of library floor space and 39 reading rooms – the largest library in northwest China – had greatly expanded their library facilities.

In addition to the above library-based reforms and establishment of computer and multimedia centers, most PUs had developed their own campus intranet with access to CERNET and the Internet so that students had access to virtually all the available websites for their online research. All the above facilities and services testify to the improving conditions and opportunities in the PUs that are conducive to self-directed student learning.

Laboratory Safety and Environmental Standards. By the end of the project, all PUs had achieved 100% of their lab safety and environmental standards (PPI, Table 3-a). Many PUs were initially skeptical about the need for strict standards, but the project's focused attention to this issue helped change the attitude of the skeptics. By mid-term the PUs had reached 90% compliance in the new labs which established international safety and environmental standards. These standards provide the benchmark for students' practice and behavior after graduation when they might be responsible for handling large quantities of toxic materials in factories and industrial laboratories. It is noted that they might also disseminate these lab safety and environmental good practices in their workplaces.

(d) Upgrading Teachers and Staff to Support the Reforms. This sub-component is rated satisfactory.

At project completion, 26,430 teachers (under various long- and short-term, in-job and off-job training programs), 4,472 laboratory staff and 2,517 library management staff had received training to upgrade their professional qualifications (PPI, Table 8).

Trained Teachers. In 2005, there were 21,745 teachers in all the PUs teaching undergraduate Year 1 and Year 2 courses. The majority (88%) of PUs reached or surpassed their targets for the teachers to be trained. The actual achievements ranged from 170% (SEU) to 23% (SJTU) of the planned numbers. The

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PUs had 14,055 trained teachers, representing 64.6% of staff teaching Year 1 and Year 2 courses (Annex 8, Table 6 and PPI, Table 2). The increase in the proportion of trained teachers to that of at the beginning of the project was indicative of the higher quality academic staff, which in turn would translate into improved quality of teaching/learning in the classrooms and experiment laboratories. The above achievements in updated courses and teaching-learning methods, and courses with reformed examination methods provided the teachers with the academic content and learning-assessment tools to continuously raise the quality of teaching-learning.

Another aspect of support for reforms is the ratio of students to full-time teachers. In 2005, the PUs had a total enrollment of 867,142 students and 57,585 full-time (FT) teachers, giving an average student-FT teacher ratio of 15:1, a 36% improvement over the average PU ratio of 11:1 at appraisal. This should result in lower per-student costs and therefore overall system efficiency. Technology programs, which are apt to use more CAI tools for basic instruction, tend to have higher ratios (e.g., Dalian), while medical training would have lower ratios (e.g., PKUHSC). The ratios of students to full-time teachers ranged from 21:1 (DLUT) and 20:1 (COU), to 8:1 (XJTU) and 5:1 (PKUHSC). Annex 8, Table 7 provides further details.

Component 2: Using Partnerships and Networks to Spread Reforms

This component aimed at spreading reforms through partnerships and networks is rated satisfactory. The reforms carried out by the PUs were spread in various ways to the Partner Institutions (PIs), and through them to many local tertiary institutions. The partnership program contributed to the "Chinese Great Western Development Strategy," strengthening the ties and balancing higher education development between the interior underdeveloped regions and the coastal developed urban centers. The cooperative activities' spin-off effects included stimulating the development of teacher education, education of minorities, private education, as well as distance education (MOE/FILO, 2004 draft APR, p. 5).

Implementation, however, was uneven because the planning and coordination of project activities varied among the PUs and their partner institutions. According to the plan, each PU was to allocate 15% of their counterpart funds to the partnership program. The total planned budget was RMB37.47 million, averaging RMB1.34 million per PI (excluding LZH, which had a planned budget of RMB1.82 million and four PIs, so that the average per PI was RMB0.46 million). The actual expenditure was RMB37.79 million, averaging RMB 1.48 million per PI. Most PUs carried out their planned activities, but actual expenditure varied widely among the PUs, ranging from 146.6% for PKU to 10.9% for WHU. About 75% of PUs reached or exceeded their planned expenditure. One PU had no information on their expenditure, and five PUs (18%) fell short of their planned expenditure (Annex 8, Table 8 provides details). The expenditure variation was evidenced by non-allocation for books, software and other items among many partnerships, while the largest allocation was for equipment, which accounted for 64% of the total value of materials donated to PIs. The PIs were handicapped by lack of access to project financing and by being dependent entirely on whatever development funds were available.

The partnership program suffered from a slow start caused partly by the PUs being more concerned initially about implementing their own institutional project activities. Poor communication between partners, described by the Chinese Expert Panel as the program's "weak link," PU personnel transfers, and arbitrary alteration of partnership program plans hampered implementation. Differences in the level of institutional development and differing orientations of staff and students made it difficult for various partners to work together smoothly. In some cases, distance between PUs and PIs made it impracticable to implement certain cooperative activities, such as opening library and lab center facilities to PI staff and students.

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Notwithstanding these implementation problems, which tested the ability of the PUs to adjust and adapt to difficult partnership conditions, the partnership program achieved its main and most important objective: enabling the weaker PIs to adopt and incorporate into their undergraduate programs the new teaching/learning methods developed and shared by the stronger PUs. This is illustrated by the fruitful cooperation between the universities of Fudan and Yunnan in designing and developing Yunnan University's Department of Electronic Science and Engineering, upgrading its equipment, updating the lab experiment courses, course content, and reforming teaching methodology (FDAN ICR, pp. 28-34); USTB and Baotou Iron and Steel College in improving reforms in course content and teaching methods, and management of teaching, library and laboratory services (USTB ICR, pp. 17-21); Nankai and Yunnan Normal in working methods of science lab construction, lab teaching content, methods, and textbooks, and staff development (NKAI ICR, pp. 26-28); and USTC and Anhui Normal in restructuring the latter's laboratory system, establishing a course credit system, and assisting in staff higher degree training (USTC ICR pp. 50-53). These partnership activities testify to the realization of the outcomes of the benefits of higher education reforms. (Further details are provided in Annex 9, "Partnership Program Implementation Issues.")

(a) Higher degree training for staff. This sub-component is rated satisfactory.

Higher degree training for PI staff was part of the broader program of staff development. It facilitated the process of merging small specialty institutions to establish broad-based universities that could offer more comprehensive academic and professional programs through a more broadly and well trained faculty base. The staff training program was a major factor in contributing to the spreading of reforms as trained staff were the effective instruments of change and innovation. A total of 499 PI staff were trained in degree programs. The numbers varied widely among institutions, from 81 (HIT and Heilongjiang College of Science and Technology); 75 (TSING and Yunnan University of Industry); and 66 (SEU and Yancheng Engineering College), to zero (BUAA and Guizhou Industry University, and FDAN and Yunnan University). Non-degree training yielded 604 staff, and 1,071 teachers were trained under a short-term program (Annex 8, Table 9). With the spread of teaching reforms, many teachers began to feel the need to update their academic and professional qualifications, thus creating the demand for higher degree training, which in time would lead to higher quality undergraduate education and training.

(b) Training and/or exchange of students. This sub-component is rated satisfactory.

Under this scheme, 42,317 PI students were beneficiaries in various short-term, non-graduating programs in the host PUs where they participated in lab experiments and related courses. The largest numbers were hosted by Southeast University, which received 15,000 students from Xichang Agricultural College, and China University of Mining and Technology which took in 21,658 students from Xuzhou Vocational University (Annex 8, Table 9). An example of particular good practice, Wuhan University supported 30 students from Yunyang Teachers' College in Hubei Province by placing them in Wuhan's 3rd Year bachelor's degree programs so that they graduated after two years' studies.

(c) Sharing resources. This sub-component is rated satisfactory.

The quantitative aspect of "sharing" comprised mainly donations by PUs to their partners valued at RMB42.32 million. All PUs and partners participated in the sharing of resources. The largest item "shared" in terms of value was equipment which was valued at RMB18.4 million. The largest donation valued at RMB3.11 million was from Peking University to Inner Mongolia University, followed by Fudan University whose equipment donation to Yunnan University was valued at RMB1.23 million. Other items

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included books (RMB1.19 million); software (RMB2.92 million); and "others" (RMB6.15 million). In Annex 8, Table 8, the qualitative aspects, by far the most important outcomes of the partnership program, covered the key reforms described in the preceding sections of this ICR.

(d) Development and use of electronic teaching/learning materials. This sub-component is rated satisfactory.

A number of updated courses and updated textbook titles were developed under two distinct activities: through cooperation and through the efforts of PIs. Under the partnership program, 2,284 updated courses were produced; and under PIs' own efforts, 259 courses. Regarding updated textbooks, the partnership program produced 1,937 titles, and PIs on their own produced 186 titles (Annex 8, Table 9).

Outcomes

Although achievements across the PIs were uneven, the expected outcome of Component 2 was achieved. The achievements included the transfer by the PUs and the adoption by the PIs of the reforms in curriculum, textbooks and other teaching/learning materials; student-centered teaching/learning methodologies; methods of testing and evaluation of student learning achievement; management of lab experiment centers; and staff development programs.

The partnerships deepened the substance and strengthened the traditional "hand-in-hand" inter-institutional program. The initial collaboration, covering relatively easy to implement activities, such as training teachers, staff and student exchange, provision and sharing of material resources and experience of best practices, etc., evolved, toward the EOP implementation, to joint efforts to improve the quality of undergraduate courses and develop institutional capacity for quality assessment. The change came from the need to transcend the simple transfer of equipment and learning materials, and from a shared concern for ensuring the achievement of high value-added education. Practically every PU ICR testified to the transfer of new ways to organize and manage the lab experiment centers and of the reformed teaching/learning methods used in lab experiments. The transfer of teaching technology, representing a revolutionary change of educational philosophy and practice, was the most fruitful outcome of the cooperative relationship which both the PIs and the PUs strongly wished to maintain and further develop.

The benefits generated by the PUs spread to other departments within the PIs, as well as to other colleges and universities. The partnership program convinced the CEP that the strategy initiated by the project was the key to accelerating the development of universities in China's remote areas (CEP, WREP, p. 21). The benefits served as a catalyst for gradually changing narrowly-focused institutions, such as Heilongjiang Mineralogy College, Guizhou Industry University, and Baotou Iron and Steel College, into more comprehensive universities capable of meeting the needs of the 21st century. The overall rating for Component 2 is satisfactory.

Component 3. Supporting Institutional Capacity for Change

All the project activities were implemented as planned. The overall rating for this component is satisfactory. Summaries of the outputs/outcomes of this component are entered in Annex 1 (Key Performance Indicators/Logframe Reference). The following paragraphs provide detail on this component's achievements.

I. National-level Technical Assistance Activities. This sub-component is rated as satisfactory.

(a) Project Management Training. The initial training in 1999 of 112 staff responsible for overall

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project management ensured the smooth implementation of activities that required an early head-start, such as equipment procurement and financial planning, apart from the day-to-day administration of the project. Between May 2000 and December 2002, MOE and HED conducted seven follow-up training sessions for 364 staff to reinforce the management skills dealt with in the initial training. Training sessions were held in Beijing, Dalian, Nanjin, Chongqing and Guilin. As of June, 2004, the total training outputs included 84 staff trained in project management, 56 in financial management, and 336 in equipment procurement management. However, since the last training session in December 2002, FILO reported a total of 550 staff had been trained as of July 2005, but there was no details provided on the training content for the additional 74 staff who received training after June 2004 (MOE/FILO ICR, p. 42). (b) Domestic Training. This was accomplish through study-tours of universities in China, including

Hong Kong. They focused on experiment-based teaching-learning in science and engineering laboratories, including the design and operation of such laboratories. In addition, the multimedia teaching-learning centers established in the PUs were used for upgrading the pedagogical skills of teaching staff. These included basic IT knowledge on Internet access, web- page designing and development, the relevant technologies related to computer usage in teaching and general communication, laboratory and staff management, facilities use and maintenance.

(c) Overseas Study Tours. MOE/FILO implemented 21 study tours in key thematic areas specially related to the project for PU administrative and academic staff. The tours were followed up by dissemination seminars to share information and new ideas gained from overseas institutions. A total of 210 (versus the planned 217) staff participated in the study tours to Europe, North America, Australia, Malaysia and Singapore. The participants comprised 29 university presidents, 89 division directors and 92 laboratory experiment center chiefs. The participants studied institutional, teaching and financial management; science laboratory development and management; and multimedia/language laboratory teaching and management. The tours helped to deepen understanding of the advances achieved by international universities in the content and methods of teaching/learning science and technology, and to reinforce the growing conviction that the reforms were vitally important to the further development of China's universities and their contribution to the growth in China of the knowledge economy.

(d) Dissemination Seminars. A total of 12 seminars of 5-6 days duration each were held between August 2003 and July 2005 in various provincial cities. They involved 1,764 PU participants that included university presidents, division directors, and lab and equipment directors, as well as 207 personnel from 98 other (non-project, non-partner) universities. The seminar topics were related to project and institutional management, and science and engineering lab development and management. The 64 national and three international specialists conducted the seminars. A final seminar, focusing on "Teaching Reform Achievements" was held in Xinjiang during July 4-8, 2005.

II. Policy-based Research Studies. This sub-component is rated as satisfactory.

All the research studies on thematic areas, which were identified by MOE at appraisal as having a special bearing on higher education policy formulation, were completed. The reports, in Chinese, including executive summaries in English for four of them, were on the following topics: (a) development of a system for quality assessment in higher education entitled "Research on Chinese Higher Education Evaluation"; (b) establishment of a textbook-renewal mechanism appropriate for a socialist market economy, with an English summary report entitled "Teaching Material Renovation Mechanism under Condition of Socialist Market Economy"; (c) managerial autonomy of higher education institutions (no English summary report); (d) development of a graduate tracer study (English summary report entitled "University Graduates’ Information Tracking and Investigating System"; and (e) comprehensive assessment of financial management in higher education institutions (English summary report entitled "A Report of the

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Study on the Comprehensive Assessment of College Finance".) The following is a summary of the reports, details of which are given in Annex 10.

Developing a System for Quality Assessment

The study produced five sub-reports on various aspects of quality assurance. The study outcomes included: (a) the implementation of a five-year evaluation cycle, using 7 primary and 18 secondary key indicators and 38 "observation points" to monitor and evaluate three key aspects of higher education (operating conditions, the educational process, and institutional efficiency); (b) establishment of data collection system on undergraduate programs and an evaluation agency under MOE; and (c) development of a cadre of evaluation experts and a task force for future work.

Establishment of a Textbook Renewal Mechanism

The study contained three parts: (i) the textbook renewal mechanism; (ii) textbook development/reforms under the 10th Five-Year Plan; and (iii) an evaluation system for higher education textbooks. There were five recommendations focusing on: (a) strengthening the role of publishers; (b) increasing textbook choice; (c) introduction of competitive bidding for textbook development; (d) establishing indicators for quality assurance; and (e) developing electronic materials to diversify textbook provision. The recommendations were adopted by MOE for systemwide implementation.

Managerial Autonomy of Higher Education Institutions

In a three-phase study, the first phase involved designing a framework for higher education institutional reforms which was piloted in the universities. The second phase, involving the introduction of reforms in 2000, showed that institutional autonomy required a major system restructuring. The actual study was carried out in the third phase which was completed in mid-2003 and the draft report reviewed in mid-2004. The issues identified in the study included: (i) the legacy of public ownership of higher education institutions and its attendant problems; (ii) the need to promote institutional autonomy; (iii) the need for institutional reforms to be implemented within the framework of political reform; and (iv) potential obstacles to reforms. Two key recommendations were to privatize some of the public higher education institutions, and restructure resource allocation to give institutions greater autonomy.

Graduate Tracer Study

The study, developed by Shanghai Jiaotong University and tested in all project institutions, generated a questionnaire and a software for tracking student. By early 2004, the study had: (i) completed a survey of graduate employment, including employer information; (ii) identified/formalized key indicators; and (iii) developed the software for the survey of graduates and employers. The study was completed in July 2004. The results of the evaluation that followed the study were integrated into the present evaluation system. While no formal report was issued, several PUs reported results from their own surveys. The findings of two PUs have been cited in the ICR text (para. 4.2 (a) (i) ). Additional information was provided by HUST, ICR pp. 26; HIT, ICR pp. 23-24. For further details, see MOE/FILO ICR, Annex 4.

Assessment of Higher Education Financial Management

The study was completed in 2003. The findings confirmed the suitability of the existing financial management system for the current reforms. The software for the study, developed for use by higher education institutions, contained 38 key indicators divided into three groups to monitor and evaluate financial management. The key indicators dealt with: (i) total income of the system to be measured; (ii) operational efficiency (e.g., teacher-student ratios, expenditure on equipment per student and for faculty

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research, etc.); and (iii) risks, such as loans/borrowings by institutions, year-end balances, expenditure versus income, fixed assets versus liabilities, etc. Following a trial run, the software was being used by 76 higher education institutions under MOE.

III. Textbooks and Electronic Materials. This sub-component is rated as highly satisfactory.

The target was to produce 400 textbooks on 200 basic courses through a cooperative effort between the PUs and MOE/HED which produced the guidelines for the innovative approach of having the universities bid for contracts on a competitive basis. A 120 expert-member review panel approved 333 proposals from 170 institutions from 31 provinces, regions and municipalities. Significantly, 22% of the successful bids came from "disadvantaged" universities in poorer areas. Under MOE's leadership, the PUs were successful in developing and implementing new curricula, textbooks, teaching-learning methods for undergraduate core foundation, compulsory and elective courses, supported by a variety of multimedia software. At EOP, 4,203 key courses had been updated and 6,827 textbooks renewed or developed, approximately 126% and 157%, respectively, of the targets. At the same time, there were 9,434 examination-reformed courses, 120% of the project target. (For details, see Annex 1, key performance indicators under Component 1; Annex 8 Tables 4 and 5; and MOE/FILO PPI, Table 2).

Management Information System (MIS) Development

At the outset of project implementation, MOE/FILO established a MIS to support its overall project coordination responsibilities. Several factors contributed to the development and application of the system: (i) the project universities' management; (ii) the development of IT; (iii) the heavy burden of daily routine work for information dissemination; and (iv) the urgent need for communication among project stakeholders. Management staff of PUs could access the project website email box with the given user name and password, while an email link was established between MOE/FILO and PUs. All data transmission, collection and processing were done through computers. Regular visits to the project website became a part of the PU FILO's work which strengthened communication between the PUs and MOE/FILO. The project website, as an information-sharing and multi-channel communication platform, was an indispensable tool for project management and coordination (MOE/FILO 2004 draft APR, p. 9).

The Severe Acute Respiratory Syndrome (SARS) crisis presented an unexpected opportunity for the MIS to demonstrate its efficacy as a information-sharing and communication support system. MOE/FILO and the PU leaders responded to the crisis by: (a) creating off-site and online communication to maintain inter-university contact; (b) quickly establishing, in cooperation with CERNET, a public distance education platform that was rapidly expanded with courseware by PUs; (c) using video-conferencing for institutional administration and academic exchanges; and (d) exchanging project information and progress reports through the website created by the MIS (see para. 5.1, below).

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Outcomes

Under Component 3, the domestic training and overseas study tours, together with the dissemination seminars, were crucial to the reform process because they primed the senior university officials for the leadership roles they would play in implementing all the key aspects of the reforms. Seeing for themselves how undergraduate science and engineering programs were conducted in the "world class" universities provided the university leaders with a vision of what China's higher education institutions could achieve and needed to achieve. All the project universities have institutionalized the principles of student-centered teaching-learning methodologies; students’ choice of courses within academic programs; and adoption of a range of flexible methods of assessing student learning achievement through team as well as individual projects, written assignments, standard closed-book and open-book tests/examinations, etc. The reformed curricula emphasize stimulating students’ creativity and innovative abilities. Science and engineering laboratories are open for students’ use after regular scheduled sessions, subject to first-come, first-serve advance bookings through their teachers. Reforms in curricula and instructional methods have led to the institutionalization of regular skill upgrading and professional training for administrative, technical and academic staff.

Key outcome indicators of the reforms may be seen in the national as well as university presidential prizes awarded to numerous student papers for their excellence, to staff for their distinction in teaching, and to institutions for establishing excellent laboratory centers as well as developing excellent innovative basic undergraduate courses. For example, Nankai University's four lab centers won the first ever title "Excellent Teaching Labs" in Tianjin Municipality, and in Peking University, four teachers cited for their excellence were recognized as "National Excellent Teachers" in 2003. Similar awards were conferred upon several universities. The logical outcome of excellence in teaching is student learning achievements. Nankai University provided the example of one of its students, Zhang Lei, of the Chemistry College winning a special innovation award for his article Luminous Zinc Nanometer Molecule in the 7th National Challenge Cup for College Student Scientific Works in 2001. The only undergraduate to receive the award, Zhang Lei subsequently had five articles accepted for publication by international journals (NKAI ICR, p. 18).

An important outcome with potential long-term impact is the development of multimedia teaching-learning through the establishment in the majority of project universities of multimedia centers which are used for professional staff training and for extracurricular courses for students. The multimedia-based teaching has not only significantly reduced the conventional instructional time, but also effectively promotes student-centered learning in which students have relatively more time to study and carry out research on their own. A potentially far-reaching outcome is the introduction of courses in English or bilingual (Chinese/English), as an important first-step towards increasing the internationalization of Chinese higher education. An expanding number of universities offer bilingual (English-Chinese) courses in science and engineering. Indeed, in some universities, selected science courses are specifically taught in English to reinforce students proficiency in the language and to familiarize them to the scientific concepts and terminologies in English. Many of the students that the Bank mission team met in discussion sessions in CUST, XJTU, TJU, DLUT, and JLU said they regularly used the Internet to access science and technology information worldwide -- an indication of their English proficiency -- a foundation for their lifelong learning. An impressive number were able to discuss in English their learning experience under their respective universities’ reformed academic programs and to express their evaluation of the efficacy of the reformed methods of teaching and assessment of student learning. Discussions with students in NJU, SEU, FDAN, SJTU, PKU and TSING confirmed the earlier mission findings that the university reforms in science and engineering curricula, teaching-learning methods, and use of the equipment-updated

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laboratories and workshops for students’ practical experiments had significantly improved the learning environment and increased student learning achievement.

IV. Student Loan Pilot Scheme. This sub-component is rated as marginally satisfactory.

This sub-component was tangential to the main thrust of the project. The scheme was designed specifically for students to repay their loans aftergraduation when they were employed. One of the assumed, but not explicitly articulated outcomes was the adoption by Lanzhou University of an official policy to allow students who borrow money to finance their education to repay their loans aftergraduation. Evidently, there was no change to the prevailing policy of requiring students to repay the loan beforegraduation. The loan fund (a PHRD grant of US$100,000 equivalent to approximately RMB830,000) provided by the pilot project was quickly taken up by Lanzhou University students. The majority of borrowers -- about 77% -- were students from rural areas and presumably much poorer than others, repaid their loans before graduation. One specific lesson learned from this pilot is that such institution based pilot is not likely to succeed in achieving the designed policy objective without adddressing the broader policy framework at the system level. The prevailing policy environment during the project that did not embrace the transition toward an income contingent scheme limited the experimental value of such pilot.

4.3 Net Present Value/Economic rate of return:Not applicable.

4.4 Financial rate of return:Not applicable.

4.5 Institutional development impact:The institutional development impact of the project was substantial. The construction of new or renovation of existing lab experiment centers provided the physical infrastructure for the reforms in the teaching and learning of science and engineering that underpinned the institutional development of the PUs as well as the PIs. The institutional development impact was evidenced by the following project outcomes: (a) the restructured academic programs that integrated basic teaching and research; (b) the administrative reorganization of the previously fragmented labs into a modern integrated system of experiment labs that facilitates cross-discipline teaching and learning; (c) the institutionalization of the credit system, providing students a flexible choice of majors and multiple modes of assessing student learning achievement; (d) the practice of a student-centered teaching/learning methodology and an open-access policy for lab experiment centers to encourage students to carry out experiments that could test their creativity and innovative ability; (e) the establishment by MOE of a quality assessment system; (f) the adoption of a graduate employment mechanism linking employers' requirements and the university undergraduate programs through a feedback system that strengthened the relevance of academic programs to market demands; (g) the establishment of a system of continuous curriculum development, including updating or creating new courses and related examinations, and renewal and development of textbooks and other teaching/learning materials; and (h) the institutionalization of the partnership program with multiplier effects on the reforms undertaken by the PUs.

5. Major Factors Affecting Implementation and Outcome

5.1 Factors outside the control of government or implementing agency:The sudden outbreak of SARS in Guangdong Province in March 2003 was a major factor that had a negative impact, but fortunately no long-term effect on the project (PSR #9, archived June 5, 2003, and PSR #10, archived December 11, 2003). During the initial period of the crisis, the travel ban severely limited communication among PUs and especially among those in Beijing, and forced the shut-down of

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PUs' regular operations in other SARS-infected provinces. These events temporarily slowed down certain implementation activities, mainly information dissemination and exchange visits between institutions. The crisis, however, produced unexpected outcomes that demonstrated the creative resilience of the PU leaders whose response to the challenge included the following activities: (a) the creation of off-site and online communication to maintain inter-university contact; (b) the quick establishment of a public distance education platform by CERNET that was rapidly expanded with courseware by PUs open to the public; (c) video-conference technology was used for institutional administration and academic exchanges; and (d) PUs exchanged project information and progress reports through the website created by MOE/FILO's MIS. As the threat of SARS retreated, mobile tutoring teams were established and more flexible course schedules were developed to maintain the running of courses and cater to students' learning needs. SARS also had a negative impact on the project's counterpart funding due to the fact that the crisis forced many PUs to use their resources to contain the disease while continuing the teaching/learning process through augmented distance education technologies that also incurred extra expenses.

5.2 Factors generally subject to government control:One of the overseas study tours, as one of the MOE-FILO centrally-organized activities, was delayed by visa problems. Apart from this minor delay, the overseas study tours and dissemination seminars were effectively implemented by FILO's technical assistance department, and institutional project implementation was monitored and guided by the CEP. The centralized equipment procurement procedure, at least under the first ICB, resulted in many PUs receiving poor quality equipment or instruments that did not match their requirements. Some PUs reported unsatisfactory or totally non-existent after-sales service; unsatisfactory or no replacement of defective equipment; and poor quality of locally-manufactured equipment purchased on the basis of lower price, but was not cost-effective for lab teaching/learning purposes. Xian Jiaotong University, for example, was of the opinion that there were "many flaws" in the national public bidding for equipment because "a remarkable number of equipment" did not fit the requirements and specifications of the experiment labs. The equipment list under this procurement method was too limited. With reforms deepening and the need for increasingly more sophisticated equipment, adjustments were needed for large-scale equipment procurement (XJTU, ICR pp. 21-22). These problems were addressed in the second and third ICBs.

In staff development, several PUs fell short of their targets for teachers with Master's degree and doctorates, because they were unwilling to release staff for higher degree training programs, and because the prevailing regulation limited staff training for higher degrees to staff who were younger than age 45. This restriction limited the number of staff eligible for project-financed higher degree training, resulting in the reduced output of staff with higher degrees. However, this appeared to be only a temporary setback which was being overcome by the PUs' own regular staff development programs whereby younger staff registered for a higher degree while employed by the university which provided incentives, such as reduced or waived tuition fees.

5.3 Factors generally subject to implementing agency control:In 2000, several PUs faced difficulties with counterpart funding for the project due to the sudden increase in student enrollments. After the installation of lab equipment, some PUs claimed that the plan for counterpart funding covered only installation, not maintenance costs, raising questions about the sustainability of the investments in equipment (MOE/FILO, 2004 draft APR, p. 5). The frequent changes of staff responsible for the university partnership program, and the arbitrary changes of certain partnership activities had an adverse effect on certain aspects of the program. The problems were addressed by the CEP during inspection visits to PUs and at the year-end conference organized by MOE/FILO to review and resolve implementation issues.

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5.4 Costs and financing:At appraisal, the total estimated project cost was US$104.4 million, including physical and price contingencies (US$6.4 million and US$4.8 million, respectively), comprising US$46.5 million in foreign costs and US$57.7 million in local equivalent (Annex 3, PAD, dated April 14, 1999, p. 44). The MOE/FILO-revised estimated project cost was US$106.27 million. The project was financed by a loan amount of US$20.0 million and a credit amount of SDR36.80 million equivalent to US$50.0 million.

The actual project cost was US$121.73 million, 116.60% of the revised appraisal estimate. The increased cost was mainly due to the cost of civil works funded by counterpart resources from the institutions. The heaviest expenditures, in absolute terms, compared with the revised appraisal estimates, were laboratory equipment (US$76.47 million = 132.07%), and curriculum and textbook development (US$6.27 million = 285%). Annex 2 provides details on costs and financing.

6. Sustainability

6.1 Rationale for sustainability rating:The rating for sustainability is highly likely. The Government regarded this project as the second wave of major reforms to create a strong, modernized and broadened curriculum content and skills base which would enable the project universities to prepare graduates for an increasingly knowledge- and technology-driven economy. The MOE fully understood the fact that implementing the much-needed reforms in the first and second year undergraduate basic science and engineering programs would help the country keep abreast of the quickening speed of global knowledge-creation and technological innovation. The new generation of graduates would help speed up national efforts in the transformation of a planned economy to a socialist market economy which, if successful, would provide important and closely-monitored models of institutional change for China's vast higher education sub-sector. The reforms are built on a strong policy platform based on the Guidelines of China's Educational Reform and Development (GOC, February 1993),which called for, among other things, the provision of specialists for the nation's modernization. All the outcomes which had a significant institutional impact (listed in para. 4.5, above) are the long-term building blocks of the project's sustainability. Since 1995, cost recovery mechanisms had been in place with the implementation of tuition fees. While students who enrolled prior to 1995 did not pay tuition fees, those who enrolled from 1999 were required to pay them. With the rapid enrollment growth, the real income of the PUs would correspondingly rise, thus increasing their ability to sustain the project reforms in teaching and learning.

To ensure sustainability in the immediate post-completion period, every project university prepared as part of their ICRs a plan for sustaining project investments. Many included appropriate policies and regulations, with the necessary budget provisions, to create a favorable environment for the continued support of the lab experiment centers and the teaching/learning reforms. For example, HIT included plans for the continued development of teaching in its second stage of Project 985 and the Eleventh Five-Year Plan, 2006-2010, with the proposed investment of RMB 100 million to build a new laboratory complex, in addition to the annual allocation of RMB 200,000 to maintain each of the four labs developed under the project, and an equal amount to operate the graduate tracer system. Other budgetary provisions were made for training lab center personnel and investment in the partnership activities, including dissemination of reforms, with Heilongjiang College of Science and Technology (HIT, ICR pp. 40-41). Wuhan University plans to invest RMB 4 million in the next five years for domestic and overseas training of academic and laboratory teaching and administrative staff (WHU ICR, p. 28).

6.2 Transition arrangement to regular operations:As all the PUs and PIs are long-established, functioning institutions supported according to their

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governmental or ministerial affiliation by MOE, various Ministries, municipalities and provincial authorities, the transition from project status to regular operations for the project universities and partner institutions has been a seamless process.

7. Bank and Borrower Performance

Bank7.1 Lending:The first Bank project in China in 1981 was for higher education development, which signalled the start of a constructive Bank-Borrower relationship in education projects. By the mid-1990's, however, undergraduate curricula had not been updated for over a decade. The 1997 Bank Sector Report, China: Higher Education Reform (op.cit.) provided the rationale for the ground-breaking higher education reform project that focused, for the first time, on reforms in undergraduate science and engineering programs. The Bank Sector Report was in line with the 1993 Guidelines for Development and the Reform of China's Education System which called upon the education sector to speed up the process of transforming the planned economy into a socialist market economy. The project complemented on-going Government reforms in higher education at the post-graduate level, particularly in "Project 211" which however, focused largely on physical infrastructure enhancement, whereas this project provided the impetus for reforms in curriculum and teaching methodology, and institutional management and finance. The Bank brought to the project design valuable international experience with regard to science and engineering education development, international higher education consortia information, and management information systems.

7.2 Supervision:Budget constraints and the tight work schedule of the counterpart task team, coupled with the SARS crisis in early 2003 reduced the number of field supervision missions, which however, was supplemented by desk reviews of project progress based on the Annual Progress Reports (APR) submitted by MOE/FILO. A total of 13 Implementation Status and Results (ISRs) (formerly Project Status Reports, PSRs) were recorded, the first dated June 29, 1999 and the last June 7, 2005. Field supervision missions and communication between Bank resident mission staff and MOE/FILO staff provided timely and consistent support to MOE/FILO and to those PUs which the missions were able to visit in matters pertaining to procurement of equipment and services, financial management and disbursement of loan funds, and project reporting. From the outset, emphasis was placed on strengthening the monitoring and evaluation (M&E) scheme to track and report on progress towards project objectives and outcomes. Budget constraints also limited the site visits and composition of the supervision team. In between the formal supervision missions, the Resident Mission staff provided regular support to MOE/FILO to resolve various implementation, disbursement and financial management problems. The supervision teams were flexible in addressing implementation issues. The findings and recommendations of supervision missions are well documented in aide memoires, back-to-office reports, and ISRs. The Bank's supervision performance is rated satisfactory.

7.3 Overall Bank performance:The Bank's overall performance was satisfactory. The identification, preparation, and appraisal missions were appropriately staffed with a judicious mix of well managed, and effective higher education specialists. Project negotiations were well planned, managed and executed. The supervsions were adequate with timely assistance to the Borrower, despite the budget constraints.

Borrower7.4 Preparation:To prepare for the project, MOE had commissioned a fairly extensive body of research in locations across China. The findings had been reported in the project areas of curriculum, teaching, and management

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reform. In addition, to facilitate the work of the Bank's identification and preparation missions, MOE's HED had also commissioned 216 research projects nationwide on subject content, teaching method reform, and management reform in higher education. (The Bank had earlier supported these activities through an IDF Grant.)

Consensus among universities participating in the project was developed through national workshops convened during the project identification, preparation and pre-appraisal stages. This was to ensure that the universities were fully informed about various aspects of project design, implementation and follow-up. Between Bank missions, the MOE task team convened several workshops for continuing this work. In addition, a national experts committee worked with and advised the project teams. Project design involved university management, administrative and academic staff, and civil service staff at all levels of government managing higher education institutions. The graduate tracer and social assessment studies covered a wide circle of stakeholders, including students, parents, employers and minority group representatives to elicit their views about the project and its objectives. Government's performance during project preparation is rated as satisfactory.

7.5 Government implementation performance:MOE/FILO made a good head-start with the training of project, procurement and financial management staff soon after project launch. The centrally-organized activities (domestic and overseas study tours and dissemination seminars) were well-planned and carried out efficiently. The policy-based studies were implemented as planned, with summary reports issued in 2004, but no final official reports were published. The Higher Education Advisory Panel (HEAP), also known as the Chinese Expert Panel (CEP) provided effective advisory support for the project. Frequent staff changes in FILO adversely affected regularity and continuity of annual project progress reporting, especially at the final stage of project implementation. All the PUs submitted individual ICRs, most with extensive coverage of project activities, particularly of the lab experiment centers. The CEP submitted a summary report on its supervisory activities, and MOE/FILO submitted a consolidated report based on the 27 project university ICRs. The Borrower was in full compliance with all loan/credit covenants. All audit reports had been submitted without negative comments.

7.6 Implementing Agency: Each of the PUs had its own FILO as the implementation unit. As implementation gathered momentum, some institutional FILOs and many lab centers experienced staff turnover problems which caused communication problems between PUs and their partner institutions, adversely affecting the partnership cooperative activities and management of the lab centers. From year 2000, some PUs had local funding difficulties due to the sudden increase in student enrollments. Apart from these problems, overall implementation and progress reporting were well managed.

7.7 Overall Borrower performance:Overall the Borrower’s performance is rated as satisfactory.

8. Lessons Learned

Key lessons learned are summarized as follows:

Project Design and Management

1. The project demonstrated clearly the crucial importance of: (i) government commitment to the large-scale reform of higher education to ensure successful implementation; and (ii) the effective

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coordination and integration of the centralized technical assistance and institutional management of training and development of key management and teaching staff, which were the primary enabling factors in the successful implementation of the university reforms (para. 4.1 and Component 3, I, p. 14).

Policy-Based Studies

2. Quality Assurance. A quality assurance system for undergraduate programs requires continued efforts to: (i) clarify the capacity-building needs at the national and institutional levels in the context of the decentralized control and diverse structure of higher education; (ii) transform the evaluation system from being an externally-driven mechanism into an internally-motivated, self-generating agency; and (iii) establish guidelines based on nationally-accepted standards for the accreditation of private tertiary institutions in preparation for their expanding role in the education and training of high-level skilled manpower for China's fast-expanding economy ("Quality Assessment", p. 15).

3. Institutional Autonomy. As improvement in institutional governance is the key to effective higher educational institutional autonomy, a supportive policy framework and financial arrangements need to be augmented by strong governance to reinforce institutional autonomy against external administrative interventions ("Managerial Autonomy", p. 15).

Competitive Funding for Textbook Development

4. The strategy adopted for textbook development demonstrated the usefulness of competitive bidding as an effective instrument in improving institutional efficiency and performance, provided objectives are clearly defined, a peer review mechanism is in place, and a set of transparent criteria is established to guide the process ("Textbooks and Electronic Materials", p. 16). Equipment Procurement

5. Some universities experienced poor or non-existent after-sales service for equipment; others could not obtain replacement of defective equipment which generally was locally manufactured and nominally less costly than the imported (foreign-manufactured) equipment. The experience suggested that the best cost may turn out to be not cost-effective; and therefore, cost considerations needed to be balanced against quality and specifications of service standard in the procurement of precision instruments (para. 5.2).

Counterpart Funding

6. Many PUs learned after equipment had been delivered that the local funding provided only for the cost of equipment installation not maintenance. The experience suggested a need to include funding for equipment maintenance, as well as installation at least during the project period when preparing counterpart financing of the project (para. 5.3).

9. Partner Comments

(a) Borrower/implementing agency:Note: Borrower's comments included are unedited.

9.1 The Borrower thinks that the Bank’s ICR made a clear description of the project and its implementation in terms of project targets, implementation experience and results. The statistical data supporting the report is trustworthy. The Borrower agrees on the whole to the viewpoints, analysis and

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recommendations in the ICR.

9.2 Project Background. In 1993, in order to speed up the modernization, the Chinese Government in The Guidelines of China’s Educational Reform and Development called for reforms to: (a) provide the required specialists for China’s modernization and for establishment of a socialist market economy; (b) improve the social status, work and living conditions of teachers; and (c) build up numbers of key universities and establish key courses of studies and specialized studies. The main problem in achieving this strategic target was mainly in three aspects: (a) Shortage of education funding. The proportion of funded educational expenditure was even lower than 3% of Gross National Product of our country by the end of the 1990's. Following the fast enlargement of the scale of higher education, the problems of the funds for higher education are more severe. In the 1990's, the universities of our country had already formed an education of mainly financial allocation funded with other patterns of raising education funds through many channels. In this case, university become the host of funds raising, but because of the gap of economic development level and financial resources invest among different areas, some universities still face the serious funds shortage situation, which is not good for university development. (b) The university new curriculum reform since the 1980's made the school teachers shoulder the pressure of the knowledge structure renewal. Furthermore, traditional teaching materials can not meet the new requirements of the new period either. Therefore, a large number of funds for teaching staff training and textbook compiling are needed badly. Data shows that universities of our country are confined by factors such as being insufficient in input of science and technology, which leading to low scientific and technical innovation level. This means that the scientific creativity is not in a high level because of the limitation of insufficient investment in science in universities.

9.3 After a careful study and discussion with World Bank and based on the need of country's on-going modernized development strategy, our government determines to utilize World Bank loan supported Higher Education Reform Project to open up a new way in order to solve the above-mentioned development bottleneck problems of higher education through adopting the advanced idea of running a school, focusing on supporting the undergraduate educational reforms in 28 project universities, and improving the education conditions of the universities.

9.4 Project Objective. The agreed objective of the project was to: (a) improve the teaching and learning quality and relative teaching conditions and cultivate more innovative students through reforms in curriculum system, experiment teaching system and teaching pattern of the science and engineering first and second year undergraduate; and (b) strengthen the programming and management ability of government and universities to drive the implementation of the above reforms. This project will definitely provide favorable environment for project universities and partnership universities to better adapt for the development of socialist market economy of China.

9.5 Project Implementation and Results. Since the project launching 5 years ago, the project has reached all the goals pre-planned and then come to a closure on July 31, 2005. Thus, the targets are fully met and all construction tasks are completed. The project has a performance in promoting the conditions of project universities, deepening the reform of undergraduate education, and improving the teachers’ professions and abilities of management staff. This project impelled the management mechanism reform of labs and combined the originally separated labs into 117 experimental teaching centers and multimedia teaching centers with a total area of 420,984 m2 and total experiment teaching staff number of 5,539. Every year, with the help of these centers, 30,876,600 person times of teaching task can be made. Besides, the labs areas of basic experimental teaching centers have been enlarged from 245,498 m2 in 1999 to the current 420,984 m2; the value of equipment has also increased 91.47 million dollars. All the experimental centers are open to the whole university that realized the resources sharing and intercollegiate resources

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communication. The technological assistance activities supported by project organized domestic trainings and also study tours in foreign countries. Besides, various seminars were held. In total, the number of project trained staff reaches 39,634 person times completing 152.89% of the project plan. In all, the collaboration activities have established relations with 30 project universities, and the investment made by the project reaches 28.657 million RMB.

9.6 The implementation of the project has impelled the reform in undergraduates’ education and teaching methods, especially in the experiment courses of basic courses for the first and second year students. These experiment courses now turn out to be tightly integrated with the respective theoretical courses and as well as independent. In order to realize the student cultivation goal of “Knowledgeable, capable, and competent” in experiment courses, the project gives much attention to re-equipped the labs, renew the teaching staff structure to realize a human resources recombination, and construct a new management mode and mechanism of experimental centers. Project also undertakes some goals, which has been realized step by step during the implementation of project: increase the utilization rate of lab equipment with the link of experimental courses reforms; strengthen the training part for university executives, teaching staff and technical teaching staff by training activities both in central level and university level to enhance teachers’ quality; project universities provide assistance to partnership universities in fields like human resources, material resources and funds and consequently, their deeds are warmly welcomed by the partnership universities; in total, 9.07 million RMB has been invested in researches with 186 sets of newly reformed textbooks, 259 renewed courses and many researches valuable to teaching reform and development as the fruit; combined with experimental courses reformation, project universities have bought books and teaching software that relevant to undergraduates’ basic courses; project universities have realized the project radiation to other fields through cooperation with partnership universities, especially has obtain good results in education reform and construction.

9.7 Project universities have completed all the labs renewal work in the experimental centers and thus have strengthened the equipment condition in laboratories and enhanced the utilization rate of the equipment. In addition, these universities put much more efforts to teaching reform, construction and amendment of experiment courses, construction of the management mechanism of experimental centers, improvement of utilization of books, speeding up the construction of teaching staff, making good and detailed conclusion and evaluation of the researches of this project and putting it into practice.

These efforts of project universities provide a stable base for realizing the goals of this project. These are fully analyzed in MOE’s ICR and Bank’s ICR, so no further description will be given here.

9.8 Project Sustainability. After this project, aiming at maximum of the impact of this project in personnel training, we will continue to support the university for the development of the project in the aspects as policy, personnel, and funds, and also support the university to organize and implement the laboratory construction, teacher training, bachelor degree reform, reform of curriculum and course content, teaching material construction and university teaching management and so on. Besides, the development of the project will be included in the master plan and annual plan for higher education development. In order to properly promote the overall development of university education, we will assist the project universities to make the benefits development and fund input plan of five years and after the project is closed. Recently, Ministry of Education begins to set up the demonstration centre of national-level experiment teaching and organize evaluations on the experimental canters of university and regular review on each center. It is predictable that a large part of these centers will be supported by the project. Also more relevant policies and plans will come out for continuous promoting the development of every project university (see details in relevant paragraph in MOE’s ICR).

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9.9 Borrower’s Performance. All the activities related to supporting Institutional Capacity for Change are managed by MOE, who has supervised the implementation of project through these activities. FILO of MOE has organized overall bidding and procurement of equipment, study tours, national training workshops and dissemination seminars, and provided project management, summary and evaluation. Higher Education Department and Financial Department of MOE also have favorably cooperated with project universities in operating five researches and studies, curriculum reforms and textbooks compiling activities (electronic textbooks are included). The Advisory Panel of Project supported by MOE has played a crucially important role in assisting FILO of MOE to supervise and evaluate the overall status of project. FILO conspicuously fulfilled its task in project supervision, providing very constructive suggestions and recommendations to project units, and having good coordination with departments concerned, which guarantee a right direction of project development and also rich outcomes of project. The activities mentioned above help to strengthen the programming, management and coordinating ability of the university authorities. On the whole, the Ministry of Education has successfully fulfilled its duties in project implementation and management.

9.10 Comment on World Bank’s Performance. World Bank (WB) officials and consultants sent to China are all possessed with high professional and management ability. They had worked harmoniously with the Chinese Counterparts, especially with FILO of MOE who in charge of this project. From the beginning of the project, the task manager of the World Bank and Bank consultants have been paying much attention to the quality and innovation of the project. They provided lots of valuable suggestions and recommendations when visiting and supervising the project and helped solve problems appeared in the implementation period, which guaranteed the smooth implementation of the project. In a word, in the evaluation process, implementation process and implementation completion process, their outstanding work gained respect and high commends from project implementing institutions.

(b) Cofinanciers:Not applicable.

(c) Other partners (NGOs/private sector):Not applicable.

10. Additional Information

Not Applicable.

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Annex 1. Key Performance Indicators/Log Frame Matrix

Outcome/Impact Indicators

Indicator/Matrix Projected in Last ISR Actual/Latest EstimateProject Development Objective:

Quality and relevance of undergraduate basic science and engineering programs improved.

A. OUTCOMES

Component 1: Achieving Improvement in Teaching and Learning.

A1.1: 75% of project universities (PUs) and the Partner Institutions (PIs) use the curricula review/renewal mechanism on a regular basis by end of project (EOP).

Over 75% of the PUs and PIs used the reformed curricula on a regular basis.

In this section, actual achievements pertain to status at EOP.

100% of PUs and PIs used the updated courses and updated or newly developed textbooks (Project Performance Indicators – PPIs – Table 2 and Table 6).

A1.2: 75% of institutions have adopted and implemented relevant reform programs by EOP.

Over 75% of institutions had adopted and implemented relevant reform programs by EOP.

100% of PUs and PIs adopted and implemented the reforms developed under the project, in teaching/learning in laboratory experiment centers. The relevant examinations have also been reformed to conform with the reformed courses; the credit system has been adopted for the Year 1 and Year 2 science and engineering programs, providing greater flexibility for students to choose or change their majors, and to combine different disciplines as desired.

A1.3: 75% of previously identified teaching/learning/management good practices used by PUs and by at least 70% of PIs by EOP.

Over 75% of identified teaching/learning and management good practices are used by PUs and PIs. Details are provided by the individual PU ICRs and the sub-reports on their lab experiment centers.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

A1.4: Twenty-eight (28) sets of partnerships between PUs and PIs established and operational by end of project year 1.

By end of project year 1, there were 31 PIs (Lanzhou University had 4 partners, and Jilin University had 2, taking over Jilin University of Technology’s partner after the merger of the two universities in 2000). Not all partnerships were in full operation by end of project year 1, because many were still working out the details of partnership activities. By Mid-Term, however, all partnerships had been established and operational.

Component 2: Using Partnerships and Networks to Spread Reforms.

A2.1: 75% of Partner Institutions (PIs) use the curricula reviewal/review mechanism on a regular basis by EOP.

As in A1.1 above. As in A1.1 above.

A2.2: 75% of institutions have adopted and implemented relevant reform programs by EOP.

As in A1.2 above. As in A1.2 above.

A2.3: 70% of previously identified teaching/learning/management good practices used by at least 70% of PIs by EOP.

A2.4 Twenty-eight (28) sets of partnerships between PIs and PUs established and Operational by end of project year 1

As in A1.3 and A1.4 above.

As in A1.3 and A1.4 above.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

Component 3: Supporting Institutional Capacity for Change.

A3.1 A system of quality assessment in higher education developed and operational by EOP.

A study on quality assessement, initiated in May 2001, developed a new undergraduate evaluation scheme focused on teaching and learning. The study produced five sub-reports dealing with various aspects of quality assurance. Outcomes included: (i) positive feedback from higher education institutions; (ii) development (on-going) of a pool of evaluation experts and a task force for future undertakings; (iii) establishment and implementation from 2003 a 5-year evaluation cycle; (iv) establishment of a system of regular data collection on undergraduate programs; and (v) establishment (in process) of an evaluation agency under MOE. For details, see ICR, Component 3, II, Policy-based research studies, p. 22.

A3.2: A textbook renewal mechanism appropriate for a socialist market economy established and operational by EOP.

A study on this issue resulted in a summary report (2003) with recommendations for: (i) re-defining GOC role, including exercising overall quality assurance by developing and applying appropriate indicators and establishing appropriate social institutions for textbook monitoring and evaluation; (ii) strengthening role of publishers through decentralization of the responsibility for textbook development; (iii) increasing choice of textbooks for various subjects to meet the need for multiple sets of learning materials; (iv) introducing competition and incentives for open bids in textbook development; and (v) further diversifying textbook provision by developing electronic teaching/learning materials. Many universities have, in fact, replaced the textbook single-choice with a multiple-choice system. For details, see ICR, Component 3, II, Policy-based research studies, p. 22.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B. OUTPUTS

Component 1: Achieving Improvement in Teaching and Learning.

B1.1: (a) Ratio of staff with higher degrees increased by EOP.

As no baseline was provided in the Project Performance Indicators (PPIs) of the PUs’ completion reports and in the ICR of MOE/FILO, the comparisons in the increased or decreased OUTPUTS throughout this section are necessarily based on the targets set by the PUs and their actual achievement. In this section, all achievements pertain to status at EOP.

The results for ratio of staff with higher degrees are mixed. Seventeen (63%) of the 27 PUs failed to achieve their targets for increasing the ratio of teachers with Master’s degree to full-time teachers. Regarding teachers with doctoral degree, six (2.2%) of the PUs fell short of their targets. The situation reflected complex socioeconomic conditions affecting staff training in the universities, most of which had a high proportion of staff aged 45 or older, usually holding only a bachelor’s degree or equivalent, who were ineligible for higher degree training. This apparently was one of the main reasons for many PUs falling short of their training targets. The higher proportion of PUs meeting their targets for Ph.D. teachers suggests that they are the younger academic staff. For details, see PPI, Table 1.

B1.2: Ratio of students to [full-time] teachers increased by EOP.

The average student:full-time teacher ratio at appraisal was 11:1 compared with the 2005 ratio of 15:1. Thus the achievement represented a 36% improvement, implying a higher teacher utilization rate that would eventually result in lower per-student costs. Further details in PPI, Table 1.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B1.3: Cumulative number of teachers trained for basic courses increased by EOP.

In 2005, there were 14,055 trained teachers teaching Year 1 and Year 2 basic undergraduate courses, representing 64.6% of the total of 21,745 teachers. As there was no average target for the PUs, relative achievements could be gauged by comparing individual PU achievement against its target. Examples of target (T) versus achievement (A) for selected PUs (using their codes): SEU T=100%; A=170%; NKAI T= 15%;, A=43%; LZU T=50%. A= 97.5%. The majority (88%) of PUs reached or surpassed their targets. The increase in the proportion of trained teachers reflected higher quality staff, which would lead to improved teaching/learning quality. For details, see PPI, Table 8.

B1.4: Cumulative number of trained administrator increased by EOP.

In 2005, the PUs had a total of 16,857 administrative staff, of whom 9,296 (55%) were trained. Twenty-two (81.5%) of the 27 PUs reached or exceeded their targets for trained administrators. The five PUs that fell short of their targets may have encountered a similar problem to that of PUs with staff aged 45 and older who were ineligible for further training. Further details in PPI, Table 8.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B1.5: Number of updated courses and updated/developed titles of textbooks increased by EOP.

Updated Courses. In 2005, the PUs achieved a total of 4,203 (125% of the target of 3,304), averaging 157 per PU versus the average PU target of 126 updated courses. The largest number was achieved by PKU: 400 (target also 400). Ten PUs (37%) had 200 or more updated courses; 9 PUs (33%) had between 100 and 199; and 8 PUs (30%) had less than 100.

Updated/developed textbooks, the PUs achieved 6,827 titles, averaging 253 per PU, or 158% of the target of 4,331 with the average of 160 titles per PU. With one exception (JLU), all the PUs exceeded their targets, from 102.5% (XJTU) to 691% (BUAA). Further details in PPI, Table 2.

B1.6: Ratio of courses with reformed examinations increased by EOP.

The PUs achieved 9,434 examination-reformed courses, 224% of the target of 4,204, averaging 349 per PU, ranging from 20 (100% of target of PKUHSC) to 1,560 (137% of the target of LZU). With five exceptions, all the PUs reached or surpassed their targets, from a modest 102% (BNU) to a remarkable 996% (HIT). In absolute terms, LZU had the largest number at 1,560. Further details in PPI, Table 2.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B1.7: Ratio of open-shelf books increased by EOP.

Twenty-three (85%) of the PUs had at least 50% of their books on open shelves. The percent achievements ranged from 100% for seven PUs (BUAA, PKUHSC, SEU, LZU, SJTU, XJTU, MTUC) to 37% (BNU). A commendable case is HIT which set a modest target of 15%, but actually achieved 78% open-shelf. Further details in PPI, Table 2. Accessibility to open-shelf books should be seen against the greatly expanded and improved in-library reading/study rooms and carrels (ICR, Component 1 (a) (iii) (c) Improving Learning Opportunities and Conditions, pp. 15-16).

B1.8: Ratio of annual borrowed library books.

Only 12 (44%) of PUs set a target of 50% or higher for book borrowings, and nine had targets between 30% and 40%. In actual achievement, 23 (85%) of PUs reached or surpassed their targets for annual number of books borrowed. Seventeen (63%) of PUs achieved 50% and higher of book borrowings, and six (22%) had 30%-49% borrowings. Further details in PPI, Table 2. The book-borrowing rate should also be assessed against the expanded and improved in-library reading/study rooms and carrels (ICR, Component 1 (a) (iii) (c) Improving Learning Opportunities and Conditions, pp. 15-16).

B1.9: 90% of labs and experiment centers restructured and equipment upgraded by EOP.

Practically all the laboratories in every PU were restructured, as evidenced by the increase in lab space and the PUs' completion reports testifying to the reorganization and integration of the formerly fragmented lab facilities into dynamic, research-oriented teaching/learning centers, equipped in varying degrees with the latest scientific equipment and instruments. Details in PPI, Table 3-a & 3-b.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B1.10: 80% of good practices in teaching/learning/management identified are disseminated by EOP.

In the absence of specific indicators for "good practices", no hard data are available to show the amount and proportion of good practices identified and their dissemination. However, practically all PUs' completion reports declared that they had adopted the student-centered approach to teaching/learning, the credit system allowing students a wider, more flexible choice and combination of courses and majors; reduction of formal lectures and corresponding increase in time for students' self-study; a less rigid examination scheme incorporating lab practical work, library and website research assignments, oral presentations and other evaluation methods, as well as the conventional written tests to assess student learning achievement. All the project circumstantial evidence point to a high level of good practices identified and disseminated to the Partner Institutions and non-project institutions as well as to other faculties within the PU. Further details in PPI, Table 3a and 3b, and especially the PUs' completion reports.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

Staff Updating and training program designed and operational.

B1.11: 90% of university administrative/management staff trained in relevant reform subjects by EOP.

B1.4: (b) 90% of academic staff trained in relevant subjects and teaching methodologies by EOP.

B1.4: (c) 90% of lab managers/technicians and librarians trained in relevant technical areas by EOP.

Data source for this section is PPI, Table 8. The numbers pertain to status at EOP.

A total of 6,215 (221% of the target 2,811) administrative/management staff had been trained.

A grand total of 26,430 (325% of the target 8,108) academic staff had been trained through off-job, in-job, long- and short-term training programs.

A total of 4,471 (152% of the target 2,925) laboratory staff had been trained; and 2,517 (205% of the target 1,223) library management staff had been trained.

Component 2: Using partnerships and networks to spread reform.

Source of data for this section is PPI, Table 5, and refer to the status at EOP.

B2.1: Number of teachers trained long-term and short-term for Partner Institutions (PIs).

The training output in three programs was: Degree, 499; Non-degree, 604; Short-term, 1,071.

B2.2: Number of PI students served for lab experiment/practical work.

Total students served: 42,317.

B2.3: Value of equipment donated. Total value of donations was RMB 28.68 million, comprising: (a) Equipment, 18.42 m.; (b) Books, 1.19 m.; (c) Software, 2.92 m.; (d) Others, 6.15 m.

B2.4: Number of teachers sent to teach in PIs.

A total of 307 PU teachers served the PIs, averaging 11.4 teachers per PU, in teaching, consultations in curriculum and teaching/learning materials development, teaching methodology, lab experiment center planning/development and experiment teaching. The largest contingent, 68 teachers, was from Beijing Normal University to its partner Northwest Normal University.

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Indicator/Matrix Projected in Last ISR Actual/Latest EstimateB2.5: Number of updated courses and updated textbook titles in PIs.

The larger proportion of courses and textbook titles was developed by the PIs themselves. The largest output of updated courses came from Tsinghua University's partner, Yunnan University of Industry, with 600 courses. The total partnership program output was in two categories: (a) Courses updated by PIs' own efforts, 2,284; cooperatively with PUs, 259; (b) Textbooks updated by PIs, 1,937; cooperatively, 186.

Component 3: Supporting Institutional Capacity for Change.

B3.1: Number of staff trained in project management, financial management, and procurement management.

Staff training under MOE's national-level technical assistance took place during November 1999 - December 2002. FILO reported in June 2004 that 476 had been trained, distributed as follows: (a) 84 in project management and implementation; (b) 56 in financial management; and (c) 336 in equipment procurement/management. However, FILO's ICR (para. 3.3.1) stated that 550 had been trained, versus 504 planned, with no explanation or substantiation for the additional 74 staff trained after December 2002.

B3.2: Number of study tours completed. The study tours, implemented during the last quarter of 2002, had 210 participants versus 217 planned. They included university presidents, division directors, and laboratory chiefs. The tour groups, which visited higher education institutions in Europe, North America, Australia, Malaysia and Singapore, focused on management of teaching, finance, institutions, science and engineering laboratory experiment centers, and multimedia and language laboratories. For details, see ICR Component 3, I, National-level technical assistance activities, p. 21.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

B3.3: Number of post-study-tour dissemination seminars conducted.

The dissemination seminars, conducted over the course of 3 years (August 2003 - July 2005) were planned for 588 participants, but the actual number was 1,764. The three-fold increase was due to three seminars held during April-July 2005, on science and engineering laboratory teaching & management, and teaching reform achievements, which drew 749 participants. For details, see ICR, Component 3, I, National-level technical assistance activities, p. 21.

Curriculum Reform and Textbook Development.

B3.4: Number of policy-based research studies completed and disseminated for curriculum reform.

All the five planned policy-based research studies were completed and their findings disseminated for the pertinent reforms in curricula, textbooks and other teaching/learning materials.

B3.5: Number of textbooks and electronic materials developed.

A total of 6,827 textbooks were updated or developed. The total output of electronic materials was not quantified, but the majority of PUs reported developing CAI materials which were shared with their partner institutions. Details in PPI, Table 2.

Tracer Study Mechanism

B3.6: A graduate tracking system, an institutional evaluation system, and a set of financial indicators are tested in a number of institutions and results disseminated among PUs and PIs.

The model for a graduate tracer study mechanism was developed by Shanghai Jiaotong University and tested in all PUs. The resultant questionnaire and software were developed and used in several PUs, including Shanghai Jiaotong: HUST, HIT, BIT and DLUT. For details, see ICR Component 3, II, Policy-based research studies, p. 23.

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Indicator/Matrix Projected in Last ISR Actual/Latest Estimate

Student Loan Pilot Scheme for Lanzhou University as an alternative to an existing scheme.

B3.7: Number of applicants and beneficiaries disaggregated by gender and amount disbursed and repaid annually by EOP.

Launched in November 1999 with a US$100,000 PHRD Grant, the funds were disbursed by December 1999. By July 2005, the cumulative loan recovery was RMB 707,000 (about US$86,000 equivalent). It was unclear whether the pilot scheme could be a viable alternative to the existing scheme. There were 1,413 applicants and 614 were beneficiaries, of whom 17% were women, 6% were minority students. For further details, see ICR, Component 3, IV, Student loan pilot scheme, p. 27.

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Annex 2. Project Costs and Financing

Project Cost by Component (in US$ million equivalent)AppraisalEstimate

Actual/Latest Estimate

Percentage of Appraisal

Component US$ million US$ million1. Achieving Improvement in Effective Teaching and Learninga. Staff Training (4.8) 4.80 3.42 71.25b. Teaching Reforms (3.2) 3.20 3.41 106.56c. Lab Equipment (57.9) 57.90 76.47 132.07d. Books & Library Materials (4.4) 4.40 5.06 115e. Maintenance/Parts/Consumables (13.3) 13.30 16.46 123.762. Using Partnership & Networks to Spread Reform a. Partnership Program (5.2)3. Supporting Institutional Capacity for Change 5.20 6.63 127.5a. Staff Training (0.1) 0.10 0.13 130b. Study Tours (1.3) 1.30 0.99 76.15c. Curriculum & Textbook Development (2.2) 2.20 6.27 285d. Dissemination Workshops (0.3) 0.30 0.50 167e. Research & Studies (0.2) 0.20 0.23 115f. Operating Cost for Higher Education Advisory Panel: HEAP (0.1)

0.10 0.09 90

Total Baseline Cost 93.00 119.65 Physical Contingencies 6.40 Price Contingencies 4.80 1.88

Total Project Costs 104.20 121.53Front-end fee 0.20 0.20 100.00

Total Financing Required 104.40 121.73Note: Figures may not add up due to rounding.

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Project Costs by Procurement Arrangements (Appraisal Estimate) (US$ million equivalent)

Expenditure Category ICBProcurement

NCB Method

1

Other2 N.B.F. Total Cost

1. Works 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 60.40 0.00 21.20 0.00 81.60(54.30) (0.00) (7.50) (0.00) (61.80)

3. Services 0.00 0.00 6.30 0.00 6.30Staff Training (0.00) (0.00) (2.70) (0.00) (2.70)4. Books & Materials 0.00 5.00 0.00 0.00 5.00

(0.00) (2.30) (0.00) (0.00) (2.30)5. Consultant Services 0.00

(0.00)0.00

(0.00)6.00

(2.90)0.00

(0.00)6.00

(2.90)6. Partnership Program 0.00

(0.00)0.00

(0.00)0.00

(0.00)5.40

(0.00)5.40

(0.00) Total 60.40 5.00 33.50 5.40 104.30

(54.30) (2.30) (13.10) (0.00) (69.70)

Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equivalent)

Expenditure Category ICBProcurement

NCB Method

1

Other2 N.B.F. Total Cost

1. Works 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 76.40 0.00 13.20 0.00 89.60(59.60) (0.00) (3.50) (0.00) (63.10)

3. Services 0.00 0.00 6.83 6.71 13.54Staff Training (0.00) (0.00) (1.44) (0.00) (1.44)4. Books & Materials 0.00 0.00 5.06 2.90 7.96

(0.00) (0.00) (0.00) (2.16) (2.16)5. Consultant Services 0.00

(0.00)0.00

(0.00)6.00

(3.00)0.00

(0.00)6.00

(3.00)6. Partnership Program 0.00

(0.00)0.00

(0.00)0.00

(0.00)4.63

(0.00)4.63

(0.00) Total 76.40 0.00 31.09 14.24 121.73

(59.60) (0.00) (7.94) (2.16) (69.70)

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1/ Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies.2/ Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staff

of the project management office, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ii) re-lending project funds to local government units.

Project Financing by Component (in US$ million equivalent)

Component Appraisal Estimate Actual/Latest EstimatePercentage of Appraisal

Bank Govt. CoF. Bank Govt. CoF. Bank Govt. CoF.1. Achieving Improvement in Effective Teaching & Learning

59.61 26.72 62.98 41.04 105.7 153.6

a. Staff Training 1.04 3.48 1.21 2.20 116.3 63.2b. Teaching Reforms 3.07 2.61 85.0c. Lab Equipment 56.43 17.97 59.60 33.33 105.6 185.5d. Books & Library Materials

2.14 2.20 2.16 2.90 100.9 131.8

2. Partnership & Networks to Spread Reform

5.24 4.63 88.4

a. Partnership Program 5.24 4.63 88.43. Supporting Institutional Capacity for Change

1.26 3.51 5.47 278.6

a. Staff Training 0.10 0.03 0.10 30.0b. Study Tours 1.30 0.78 0.20 60.0c. Curriculum & Textbooks Development

2.20 2.07 4.00 94.1

d. Dissemination Workshops

0.30 0.29 1.07 96.7

e. Research & Studies 0.20 0.22 0.10 110.0f. Operating Cost for Higher Education Advisory Panel (HEAP)

0.10 0.10 100.0

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Annex 3. Economic Costs and Benefits

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Annex 4. Bank Inputs

(a) Missions:Stage of Project Cycle Performance Rating No. of Persons and Specialty

(e.g. 2 Economists, 1 FMS, etc.)Month/Year Count Specialty

ImplementationProgress

DevelopmentObjective

Identification/Preparation08/25/1997 3 Sr. General Educator & Mission

Leader (1); Operations Analyst (1); Sr. Education Economist (1)

S S

06/14/1998 6 Sr. General Educator & Mission Leader (1); Operations Analyst (1); Higher Education Management Specialist (1); Financial Analyst (1); Science and Technology Specialist (1); Education Economist (1).

S S

10/14/1998 10 Sr. General Educator & Mission Leader (1); Operations Analyst (1); Educational Planning Consultant (1); Higher Education Management Specialist (1); Engineering and Technology Consultant (1); Financial Management Specialist (1); Science and Technology Specialist (1); Procurement Specialists (2); Education Economist (1)

S S

Appraisal/Negotiation01/11/1999 14 Sr. General Educator &

Mission Leader (1); Education Planning Specialist (1); Education Specialist (2); Financial Management Specialist (2); Principal Counsel (1); Higher Education Management Specialist (1); Procurement Specialist (1); Operations Analyst (1); Engineering and Technology Specialist (1); Higher Education Specialist (1); Science and Technology Specialist (1); Human Resources Economist (1)

S S

Supervision09/13/2000 6 Principal Education S S

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Specialist & Mission Leader (1); Operations Officer (1); Curriculum Specialist and Social Sector Coordinator (1); Monitoring and Evaluation Specialist (1); Procurement Specialist (1); Disbursement Specialist (1)

10/21/2002 7 Sr. Operations Officer & Mission Leader (1); HD Sector Coordinator (1); Lead Education Specialist (1); Sr. Monitoring and Evaluation Specialist (1); Sr. Science Education Specialist (1); Procurement Specialist (1); Disbursement Specialist (1)

S S

06/5/2004 7 Sr. Operations Officer & Mission Leader (1); Education Specialist (1); Monitoring and Evaluation Specialist (1); Science Education and Research Specialist (1); Procurement Specialist (1); Financial Management Specialist (1); Sr. Program Assistant (1)

S S

06/20/2005 7 Sr. Operations Officer & Mission Leader (1); Education Specialist (1); Procurement Specialist (1); Financial Management Specialist (1); Program Assistant (1); Monitoring and Evaluation Specialist (1); Science Education Specialist (1)

S S

ICR12/21/2005 3 Sr. Operations Officer &

Mission Leader (1); Education Specialist (1); Program Assistant (1);

S S

(b) Staff:

Stage of Project Cycle Actual/Latest EstimateNo. Staff weeks US$ ('000)

Identification/Preparation N/A 593,172Appraisal/Negotiation N/A 162,000Supervision N/A 300,502ICR N/A 35,000Total 1,090,674.00

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Annex 5. Ratings for Achievement of Objectives/Outputs of Components(H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable)

RatingMacro policies H SU M N NASector Policies H SU M N NAPhysical H SU M N NAFinancial H SU M N NAInstitutional Development H SU M N NAEnvironmental H SU M N NA

SocialPoverty Reduction H SU M N NAGender H SU M N NAOther (Please specify) H SU M N NA

Private sector development H SU M N NAPublic sector management H SU M N NAOther (Please specify) H SU M N NA

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Annex 6. Ratings of Bank and Borrower Performance

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)

6.1 Bank performance Rating

Lending HS S U HUSupervision HS S U HUOverall HS S U HU

6.2 Borrower performance Rating

Preparation HS S U HUGovernment implementation performance HS S U HUImplementation agency performance HS S U HUOverall HS S U HU

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Annex 7. List of Supporting Documents

A. Borrower’s Implementation Completion Reports for Credit 3213-CHA and Loan 4474-CHA.

1. Peking University, July 2005; 234 pages.2. Beijing Aeronautics University (undated); 92 pages.3. Beijing Science and Technology University (undated); 71 pages.4. Beijing Institute of Technology (undated); 74 pages.5. Beijing Normal University (undated); 14 pages. 6. Peking University Health Science Center (formerly Beijing Medical University)

June 2005; 12 pages.7. Dalian University of Technology (undated); 63 pages.8. Southeast University (undated); 14 pages.9. Fudan University (May 2005); 56 pages.10. Harbin Institute of Technology (undated); 222 pages. 11. Huazhong Institute of Technology (July 2005); 62 pages..12. Jilin University ( July 2005); 129 pages.13. Jilin Institute of Technology, incorporated into Jilin University.14. Lanzhou University (June 2005); 87 pages.15. Nanjing University (July 2005); 74 pages.16. Nankai University (June 2005); 111 pages.17. China Ocean University (August 2005); 157 pages.18. Tsinghua University (July 2005); 17 pages.19. Shaanxi Normal University (June 2005); 86 pages.20. Shanghai Jiaotong University (undated); 29 pages.21. Sichuan University (June 2005); 118 pages.22. Tianjin University (June 2005); 82 pages.23. Wuhan University (undated); 81 pages.24. Xian Jiaotong University (August 2005); 135 pages.25. Zhejiang University (August 2005); 119 pages.26. China University of Science and Technology (undated); 54 pages.27. China University of Mining and Technology (undated); 52 pages.28. Chongqing University (June 2005); 65 pages.

(Total 2,310 pages.)

B. Other Borrower Reports

1. MOE/FILO: Implementation Completion Report (draft, dated October 2005; final datedDecember 20, 2005, received January 14, 2006).

2. Chinese Expert Panel, "Work Review and Evaluation Report" (draft: dated August 25, 2005; final: dated December 20, 2005, incorporated in MOE/FILO ICR, as Annex 2.)

3. Mid-Term Review Report, dated June 2002.4. Annual Progress Report (draft, 2004).5. Project Implementation Plan, dated April 20, 1999.6. Centrally-Organized Technical Assistance Activity, dated June 8, 1999.

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Bank Documents

1. Project Appraisal Document, Report No. 19146-CHA, dated April 14, 1999.2. Development Credit Agreement, Credit No. 3213-CHA dated July 29, 1999,

and Loan Agreement, Loan No. 4474-CHA, dated July 29, 1999.3. China Higher Education Reform, Report No. 15573-CHA, dated June 27, 1996.4. Back-to-Office Reports and Aide-Memoires, Project Status Reports.

- 48 -

Additional Annex 8. Additional Data on Components 1 and 2

Component 1 Tables

Table 1: Science and Engineering Laboratory Experiment Centers.Laboratory Center No. %

Physics 26 22.2Chemistry 21 17.9Biology/Life/Natural Science 15 12.8

Sub-Total 62 53.0Electronics 5 4.3Engineering 11 9.4Electronics & Electrotechnics 12 10.2Mechanics/Mechanism 14 12.0

Sub-Total 42 35.9Multimedia/Electronics Infotech 8 6.8Language 5 4.3

Total 117 100.0 Source: MOE/FILO Project Performance Indicators for PUs, Table 3a.

Table 2: Graduate Employment Rates from 10 Selected Universities,* 1999 and 2005.

Employment Rate (%)No. Project University

1999 20051501 PKU 88 961502 BUAA 89 991504 BIT 99 951505 BNU 97 951506 PKUHSC 97 931508 SEU 98 981512 JLU 93 931514 LZU 79 701517 COU 90 931518 TSING 94 95

*These were universities which had the relevant information. Source: MOE/FILO Project Performance Indicators (PPIs), Table 1. The above figures have been rounded.

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Table 3: Ratio of Teachers with Master’s Degree and PhDs in Selected Universities, 2005.Ratio of Teachers with Master’s Degree among

Full-Time (FT) TeachersRatio of Teachers with PhD among Full-Time

(FT) TeachersNo. Project University Total FT

TeachersTotal Ts with M Degree

EOP Target (%)

Actual 2005 (%)

Total Ts with Ph.D.

EOP Target (%)

Actual 2005 (%)

1501 PKU 2189 559 * 26 1299 * 59

1502 BUAA 1343 424 35 32 608 45 45

1503 USTB 1040 407 65 39 413 30 40

1504 BIT 1701 905 50 53 694 40 41

1505 BNU 1285 332 55 26 741 30 58

1506 PKUHSC2946 1002 29 34 1060 25 36

1507 DLUT 1516 684 66 45 472 24 31

1508 SEU 2001 722 50 36 625 30 31

1509 FDAN 2201 625 45 28 917 45 42

1510 HIT 2860 1203 55 42 829 27 29

1511 HUST 3923 2350 45 60 997 30 35

1512 JLU 4189 1590 63 38 1082 25 26

1514 LZU 1283 609 55 47 264 15 21

1518 TSING 2097 593 20 28 1,462 70 70

* No target was recorded Source: MOE/FILO PPIs, Table 1.

Table 4: Cumulative Number of Updated Courses, & Ratio of Coures with Reformed Examinations in Selected Universities, 2005.

Cumulative No. of Updated Courses Ratio of Courses with Reformed Examinations

Actual 2005 Reformed Courses

No. Project University

Target

No. %

Total No.

of Courses No. %

1506 PKUHSC 16 18 112 20 20 100

1511 HUST 20 25 125 495 495 100

1512 JLU 170 116 68 300 200 67

1514 LZU 200 321 160 1,140 1,560 137

1515 NJU 75 250 333 80 250 313

1516 NKAI 210 240 114 1,350 1,242 92

1517 COU 50 126 252 70 110 157

1518 TSING 220 220 100 300 300 100

1519 SNNU 75 89 119 60 40 67

1520 SJTU 101 105 104 100 148 148

1527 CUMT 61 204 334 136 136 100

Source: MOE/FILO PPIs, Table 2.

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Table 5: Updated/Developed Textbooks, Library Open-Shelf Books, and Annual Borrowed Volumes in Selected Universities, 2005.

No. of Updated/Developed Textbooks

Library Open-Shelf Books

Annual Library Borrowed Volumes

Actual 2005No. Project University Target No. %

Target Actual 2005 (%)

Target Actual 2005 (%)

1502 BUAA 150 272 181 100 100 70 46

1505 BNU 100 210 210 25 37 17 23

1509 FDAN 500 764 153 95 95 25 25

1510 HIT 150 238 159 15 78 39 50

1511 HUST 30 70 233 88 92 22 90

1512 JLU 185 139 75 49 83 38 40

1519 SNNU 50 124 248 44 49 12 28

1522 TJU 120 292 243 30 55 35 65

1523 WHU 260 260 100 76 94 100 168

1524 XJTU 120 123 102 100 100 75 76

1525 ZJU 100 183 183 85 86 60 64

1527 CUMT 60 82 137 37 100 41 62

Source: MOE/FILO PPIs, Table 2.

Table 6: Trained Teachers in Year 1 and Year 2 Undergraduate Basic Courses in Selected Universities.

Ratio of Trained Teachers for

Year 1 & Year 2 Basic CoursesNo. Project University

Total No. of Teachers

Trained Teachers

Target

(%)

Actual 2005 (%)

1506 PKUHSC 2,946 1,426 45 48

1511 HUST 1,382 670 45 48

1512 JLU 1,701 1,105 60 65

1514 LZU 158 154 50 97

1515 NJU 330 330 90 100

1516 NKAI 857 367 15 42

1517 COU 380 220 56 57

1518 TSING 800 721 90 90

1519 SNNU 239 86 35 36

1520 SJTU 246 58 80 23

1527 CUMT 232 115 30 50

Source: MOE/FILO PPIs, Table 2.

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Table 7: Ratio of Students to Full-Time Teachers in Selected Universities, 2005.Ratio of Students to Full-Time (FT) Teachers

No. Project University Total Students

Total FT Teachers

EOP Target

Actual (2005)

1506 PKUHSC 13,126 2,946 5:1 5:1

1507 DLUT 31332 1,516 13:1 21:1

1509 FDAN 29,028 2,201 18:1 13:1

1515 NJU 31,615 1,905 20:1 11:1

1516 NKAI 30,782 1,587 11:1 19:1

1517 COU 18,940 950 12:1 20.:1

1518 TSING 27,095 2,097 11:1 13:1

1519 SNNU 13,265 1,182 11:1 11:1

1520 SJTU 33,948 2,254 12:1 15:1

1521 SCU 65,162 3,622 14:1 18:1

1522 TJU 23,474 1,891 13:1 15:1

1524 XJTU 19,157 2,363 12:1 8:1

1526 CUST 18,586 1,360 11:1 14:1

1527 CUMT 21,077 1,392 12:1 15:1

Source: MOE/FILO PPIs, Table 1. The ratios are rounded.

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Component 2 Tables

Table 8: Partnership Program: Budget and Value of Materials Donated.

Budget (RMB '000)

Value of Materials Donated by Project Universities to Partner Institutions(RMB'000)No. Project

University (Code)

Partner Institution

Planned Actual % Equipment BooksSoftware Others TOTAL

1 PKU Inner-Mongolia University 2,700 3,958 146.6 3,106 54 -- 798 3,9582 BUAA Guizhou Industry University 1,800 165.7 92.1 1,448 1 -- 31 1,4803 USTB Baotou Iron & Steel College 1,350 1,350 100.0 484 -- -- 866 1,3504 BIT Yan'an Educational College 150 152 101.3 138 5 -- -- 1435 BNU Northwest Normal University 1,350 850 63.0 320 40 11 41 4126 PKUHSC Inner-Mongolia Medical

College1,040 1,050 100.9 1,000 2 2 46 1,050

7 DLUT Dalian Nationalities Institute 1,560 1,586 101.7 400 196 385 605 1,5868 SEU Yancheng Engineering College 1,400 1,495 106.8 -- 125 55 -- 1809 FDAN Yunnan University 1,500 1,460 97.3 1,230 -- 30 200 1,46010 HIT Heilongjiang College of Science

&Technology1,500 2,184 245.6 253 -- -- -- 253

11 HUST Hebei Three Gorges Institute ? 1,489 ? 799.3 21.6 -- -- 820.912 JLU Jilin Normal College (Beihua

University)1,431 1,431 100.0 984 100 -- 347 1,431

13 JUT Yanbian University 1,500 1,508 100.5 1,316 -- -- 192 1,508

14 LZULanzhou Railway Institute; Qinghai Normal Univ.; Ningxia Univ.; Xinjiang Univ.

1,824 322 17.6 97 34 16 43 190

15 NJU Guangxi Normal University 1,650 1,971 119.4 200 -- -- 275.8 475.816 NKAI Yunnan Normal University 1,450 1,590 109.6 250 43 365 -- 65817 COU Liaocheng Teachers' College 1,350 1,600 118.5 1.316 164 -- -- 1,48018 TSING Yunnan Univ. of Industry

(Kunming Univ. of Tech.)3,000 3,100 103.3 500 200 400 2,000 3,100

19 SNNU Baoji Instit. of Liberal Arts and Engineering

125 120 96.1 43 -- -- --

20 SJTU Xinjiang University 2,034 2,050 100.8 800 -- 930 -- 1,73021 SCU Xichang Agricultural College 1,460 1,145 78.4 1,068 -- -- 77 1,14522 TJU Inner-Mongolia Polytechnic

University1,440 1,628 113.1 360 -- -- 50 410

23 WHU Yunyang Teachers' College 1,370 149 10.9 747 150 -- -- 89724 XJTU Ningxia Northwest Second

Minorities Institute1,500 954 63.6 300 -- 20 -- 320

25 ZJU Qinghai University 191 193 101.5 568 -- -- -- 56826 CUST Anhui Normal University 1,500 1,473 98.2 405 35 270 -- 71027 CUMT Xuzhou Vocational University 1,320 1,323 100.2 284 22 439 575 1,32028 CQU Chongqing Architecture

University-- -- -- -- -- -- -- --

TOTAL 37,474 37,787 100.8 18,416 1.193 2,923 6,147 28,679Average 1.44 1.40 97.2 708.3 74.5 243.6 409.8

Source: MOE/FILO ICR, PPIs for PUs, Table 5.

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Table 9: Partnership Program: Students Served, Teachers Teaching in PIs, Teachers Trained, and Courses & Books Updated.No. of Teachers

Trained (long-term) for PIs

No. of Updated Courses for PIs

No. of Updated Textbooks in PIsNo.

Project University

(Code) Partner Institution

No. of Students served at PU Lab

Experiment Centers

No. of PU Teachers

despatched for teaching

in PIs. Non-Degree

Degree

No. of Teachers Trained (short-

term) for PIs

Done by PIs

Co-Operative

Done by PIs

Co-Operative

1 PKU Inner Mongolia University 315 5 -- 9 20 -- -- -- --2 BUAA Guizhou Industry

University35 9 -- -- 38 130 16 35 7

3 USTB Baotou Iron & Steel College

-- -- -- 14 22 31 7 49 20

4 BIT Yan'an Educational College 23 7 1 1 4 9 4 11 55 BNU Northwest Normal

University-- 68 6 28 3 420 -- 470 --

6 PKUHSC Inner-Mongolia Medical College

2,76 -- 3 -- 3 4 1 1 1

7 DLUT Dalian Nationalities Institute

635 4 -- 11 -- 21 10 14 11

8 SEU Yancheng Engineering College

13 18 10 66 28 54 9 21 6

9 FDAN Yunnan University 610 7 6 -- 24 23 5 36 --10 HIT Heilongjiang College of

Science & Technology205 12 15 81 23 60 37 82 41

11 HUST Hebei Three Gorges University

181 12 6 39 21 30 14 21 7

12 JLU Jilin Normal College (Beihua University)

220 2 6 34 18 116 5 139 2

13 JUT Yanbian University -- 6 15 12 5 -- 6 -- 214 LZU Lanzhou Railway Institute;

Qinghai Normal Univ.; Ningxia Univ.; Xinjiang University

-- 1 18 15 351 42 -- -- --

15 NJU Guangxi Normal University -- -- 34 3 44 28 10 22 816 NKAI Yunnan Normal University 6 13 33 3 21 -- -- -- --17 COU Liaocheng Teachers'

College344 20 6 10 6 138 -- 254 1

18 TSING Yunnan Univ. of Industry (Kunming Univ. of Tech.)

-- 8 57 75 34 600 80 250 1

19 SNNU Baoji Institute Of Liberal Arts & Engineering

60 20 25 2 125 160 20 22 8

20 SJTU Xinjiang University 610 -- 3 2 8 7 4 64 821 SCU Xichang Agricultural

College15,000 16 4 11 5 20 -- 32 --

22 TJU Inner Mongolia Polytechnic University

-- 11 2 12 64 50 4 13 2

23 WHU Yunyang Teachers' College 100 3 4 4 22 160 20 200 5024 XJTU Ningxia Northwest Second

Minorities Institute-- 15 -- 25 25 10 -- 8 --

25 ZJU Qinghai Unversity -- 2 20 24 11 -- -- -- --26 CUST Anhui Normal University 226 25 31 13 6 98 7 91 627 CUMT Xuzhou Vocational

University21,658 23 302 5 139 73 -- 102 --

28 CQU Chongqing Architecture University

-- -- -- -- -- -- -- -- --

TOTAL 42,317 307 604 499 1,071 2,284 259 1,937 186Average

Source: MOE/FILO ICR PPIs for PUs, Table 5.

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Additional Annex 9. Partnership Implementation Issues

Part of the implementation issues stemmed from the fact that the PIs were not included in the project launch workshop. MOE/FILO, thereby, missed the opportunity to fully apprise them of the purpose and scope of the partnership program. Some PIs mistook the program to be "charity activities" by the PUs (2004 draft APR, loc. cit.). The slow start of cooperative activities and the PIs' generally limited autonomy did not help to mitigate this misperception.

A key step to institutional reform was understanding what autonomy could do to help update/upgrade the management and administration of academic activities. Generally, PIs being less developed tended to be more "rule-following" conforming institutions than "rule-breaking" innovative universities. Their staff qualifications and exposure to modern international developments in higher education were very different from those of their PU counterparts. While each partnership program had a joint committee to plan, prioritize and coordinate the development activities following the general partnership guidelines, actual implementation encountered difficulties arising from fundamental differences between project and partner institution. For example, USTB reported (ICR, pp. 17-18) that differences in general institutional orientation and staff and student backgrounds made it difficult for the partner, Baotou Iron and Steel College (BISC) to participate in the research and other activities in USTB's reform programs in teaching, curriculum content and course systems. Consequently, USTB adjusted the program to focus on promoting its reform achievements by sending instructors to BISC to give demonstration lessons, using multimedia courses and donating courseware to the partner. This had positive results.

Similarly, the original plan to open the new lab centers and library facilities to BISC students was impracticable because of the distance between the two institutions. Discrepancies in the level of computer network development between the institutions made it impossible to use the Internet to teach. Instead, USTB assisted in building a CAD (computer-assisted design) lab in BISC, seating 85 and equipped with intranet. The lesson from this particular experience was that certain partnership programs tended to be rather idealistic, and, in certain aspects, such as level of institutional development and readiness for collaborative research, the feasibility of specific activities was not adequately assessed. The partnership experience also highlighted the need to be flexible in adapting development programs to particular institutions. The slow start of many partnership activities was due to many PUs being preoccupied in the initial project stage with their own implementation responsibilities. The lack of urgency was compounded by poor communication between the partners, a condition which the Chinese Expert Panel (CEP) described as the "weak link" in the program. Other problems included changes in PU personnel responsible for the program and "arbitrary" changing of partnership plans (CEP, "Work Review and Evaluation Report [WREP]", dated October 25, 2005, p. 7). The Panel, which closed each year's work with a conference convened by MOE to review implementation problems, addressed the various issues as they visited individual institutions. The accumulated implementation experience from the inspection visits provided the basis for a conference convened by the Panel in March 2004 in Yunnan University where the issues described above were resolved in part to smooth the way for the continuation and possible expansion of the partnership program in the post-completion period. Perhaps the most challenging issue was the fact that traditional universities with vertical organization and hierarchical management were suddenly expected to establish lateral or horizontal communication and interaction.

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Additional Annex 10. Policy-Based Research Studies

Developing a System for Quality Assessment

The study yielded five sub-reports dealing with various aspects of quality assurance: (i) policy recommendations; (ii) proposal for an evaluation system; (iii) developing mechanisms for an evaluation system; (iv) developing an information system through a database on key indicators and evaluation experts; and (v) a comparative study of evaluation systems in North America, Europe and the Asia-Pacific region.

Outcomes of the study included: (i) establishment and implementation from 2003 of a five-year evaluation cycle; (ii) establishment of a system of a regular collection of data on undergraduate programs which would eventually be published; (iii) establishment of an evaluation agency under MOE; (iv) positive feedback from higher education institutions on the current evaluation system; and (v) development of a pool of evaluation experts and a task force for future undertakings.

Key indicators of quality included seven primary and 18 secondary indicators and 38 "observation points". They are used together to monitor and evaluate three key aspects of higher education: (i) operating conditions of higher education institutions; (ii) the teaching-learning process; and (iii) institutional efficiency. The seven primary indicators deal with teaching staff, the curriculum, relative emphases on science and arts, campus culture, student achievement/performance (e.g., in language proficiency, computer skills, etc.), and employment outcome of graduates.

Some necessary follow-up action included: (i) further improvement of the evaluation system by completing the relevant studies; (ii) extension of the evaluation system from its original conception as an external mechanism to an internally-motivated, self-generating agency; and (iii) development of evaluation specialists to carry out all key aspects of evaluation. Since the inception of the five-year evaluation process, higher education institutions were preparing to review and institutionalize it. There were also plans, based on comparative analyses, to move towards the establishment of an independent evaluation agency, but no further information was available at EOP. Also, there was no reference to private tertiary institutions.

Establishment of a Textbook Renewal Mechanism

The rationale for the study was the lack of an effective mechanism for textbook renewal for higher education and the need to establish a [new] mechanism in line with reforms in other sectors of the economy. The three sub-studies were on: (i) the textbook renewal mechanism in the socialist market economy and in the present situation; (ii) recommendations on textbook development and reforms under the 10th Five-Year Plan; and (iii) a textbook evaluation system for higher education textbooks, especially in science, engineering, agriculture, medicine, humanities and the social sciences. The study entailed an extensive survey made through seminars, questionnaire surveys for teachers and non-teachers, public opinion solicitation, and topic workshops. A general summary report, based on 11 articles prepared by the research team in 2002, was published in 2003.

Five recommendations for a textbook renewal mechanism included the following: (i) re-definition of GOC's role and strengthening the role of publishers and publishing groups through decentralization of the responsibility for textbook development; (ii) increasing the choice of textbooks for various subjects to meet the need for multiple sets of learning materials; (iii) introduction of competition and incentives for open bids in the development of textbooks; (iv) exercising overall quality assurance by developing and applying appropriate indicators and establishing appropriate (social) institutions for textbook monitoring and evaluation; and (v) further diversification of textbook provision by developing electronic teaching-learning materials.

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The recommendations were adopted by MOE, and some of the ideas were being implemented. Many higher education institutions had replaced the textbook single-choice with a multiple-choice system. For example, in Qinghua University, over 30% of courses use multiple textbooks. Dissemination of the recommendations had been carried out through workshops. A follow-up for extending the textbook evaluation system was the establishment of a web-based feed-back system.

Managerial Autonomy of Higher Education Institutions

The study was carried out in three phases. The first phase, a year-long exercise to design the study, involved a general survey and analysis of the present higher education management system in China and selected foreign universities. The result was the design of a framework for higher education institutional reforms, with some pilot programs implemented in the universities and educational administrative organizations. In the second phase, when reforms were introduced in 2000, it became clear that institutional autonomy could not be achieved without a major restructuring of the system. During this phase, about 100 of the 200 institutions were taken over by the provincial authorities and the remainder remained under MOE. The third phase, when the actual study was carried out, was completed in mid-2003 and the draft report was reviewed in mid-2004.

Issues arising from the study included: (i) the legacy of public ownership of higher education institutions and its attendant problems; (ii) the need to moderate the current centralized control with increased decentralization to promote institutional autonomy; (iii) the need to recognize that institutional reforms must be carried out within the framework of political reform; and (iv) the existing internal administrative mechanisms might hinder reforms. Factors that hindered autonomy included the lack of: (a) an efficient mechanism for resource allocation; (b) institutional responsibility and accountability; and (c) management authority for hiring and firing staff. However, the existing system of centralized financial control enabled the authorities to set national priorities. There was a need to dispel the misperception outside China that GOC was still trying to retain central control, whereas the policy was actually to decentralize. Two key recommendations were to privatize some of the public higher education institutions, and restructure resource allocation so as to give greater autonomy to institutions. Information on the outcome of the recommendations was not available at EOP.

Graduate Tracer Study

The model for this study was developed by Shanghai Jiaotong University and tested in all project institutions. A general survey was first carried out of various existing tracer systems or studies used by higher education institutions (e.g., through their respective alumni associations). The plan was to develop, on completion of the survey, a questionnaire and a software for a student tracking system. By early 2004, the study had accomplished three tasks: (i) a survey of graduate employment, with information from employers, had been carried out during the previous three years; (ii) the contents of the tracking system had been reviewed to identify/formalize the key indicators; (iii) and software was being developed for implementing the survey of graduates and employers. The study was completed in July 2004. The results of the evaluation that followed the study were integrated into the present evaluation system. While no formal report was issued, several PUs reported results from their own surveys. The findings of two PUs have been cited (para. 4.2 (a) (i) above). Additional information was provided by HUST, ICR pp. 26; HIT, ICR pp. 23-24. For further details, see MOE/FILO ICR, Annex 4.

Assessment of Higher Education Financial Management

The findings of the study, which was completed and the report reviewed in 2003, confirmed that the existing financial management system was appropriate in the context of current reforms. The software, designed for the study had been tested and fulfilled MOE standards, was developed for use by higher

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education institutions. It contained 38 key indicators to monitor and evaluate financial management.

The key indicators, developed with MOE involvement and participation of university financial management staff, were divided into three groups. The first group, comprising eight indicators, measured the institution’s financial strength; the second group, comprising 18 indicators, evaluated institutional efficiency; and the third group, comprising 12 indicators, assessed the institution’s development potential and risks. The key indicators dealt with the following: (i) total income of the system to be measured; (ii) operational efficiency (e.g., teacher-student ratios expenditure on equipment per student, expenditure for faculty research, etc.); and (iii) risks, such as loans/borrowings by institutions, year-end balances, expenditure versus income, fixed assets versus liabilities, etc.

Following a trial run in Hebei Province to test its effectiveness, the software was being used by 76 institutions under MOE. Several publications affirmed that the assessment system was being applied to various universities affiliated to the Ministry of National Defense, MOE and the Hubei Provincial Government.

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Additional Annex 11. Development of Textbooks and Electronic Materials

The MOE target was for the project to produce 400 textbooks on 200 basic courses (PAD, dated April 14, 1999, p. 39). To achieve this, the universities were invited to bid on a competitive basis for contracts to develop courses following MOE/HED guidelines and write textbooks based on the revised courses. The competitive bidding initiated in July 1999, the first of its kind in China, elicited by early 2000, 963 proposals from over 320 universities, of which 773 were for science and engineering and 190 for medical sciences. By end-June 2000, a 120 expert-member review panel approved 333 proposals from 170 higher education institutions from 31 provinces, regions and municipalities, using criteria based on guidelines in an open, transparent manner. A significant development was the phenomenon of joint-university proposals (e.g., Fudan, Tsinghua and Zhejiang universities submitted a successful joint bid), a reflection of the emergence of independent lateral institutional cooperation. Equally significant was that 22% of the successful bids were from universities in the disadvantaged western parts of China. Thus, the awards contributed to the central government's Western Development Initiative (Aide Memoire, Supervision Mission, September 2000, para. 22). Under MOE's leadership, the project universities succeeded in developing and implementing new curricula, textbooks, teaching-learning methods for undergraduate core foundation, compulsory and elective courses which are supported by a variety of multimedia software. The achievements were complemented by the establishment/renovation of science and engineering laboratory centers and language and audiovisual learning centers, and the provision of new equipment. The reformed undergraduate curriculum typically consisted of required common basic, specialized compulsory and optional courses, general education optional courses, and common optional courses. During the Bank review missions in 2004 and 2005, interviews with students indicated that the reformed curricula were well received by them. At the same time, project universities in varying degrees had facilitated the application of modern educational technology to teaching-learning, introducing multimedia into courses where conditions were appropriate. At EOP, 4,203 key courses had been updated and 6,827 textbooks renewed or developed, approximately 126% and 157% respectively, of the targets. At the same time, there were 9,434 examination-reformed courses, 120% of the project target. (For details, see Annex 1, key performance indicators under Component 1, and MOE/FILO PPI, Table 2).

The development of modern instructional technology was supported by computer-assisted instruction (CAI) development teams responsible for directing and coordinating software design and production. In the more advanced universities, web-based international distance-learning courses were being developed. For example, the PKUHSC had completed the development of 17 pre-clinical and nine clinical courses that could be accessed through the Internet. At the same time, the leading universities, such as PKU and DLUT, had increased the proportion of courses delivered in English or bilingually (English-Chinese) as part of the strategy to further internationalize higher education in China.

While the reforms were focused on the teaching-learning in the first two years, attention was also given to the development of specialty courses at the third and fourth years of the academic program. Students were free to select courses within the framework of the academic program which, in varying degrees, involved laboratory experimental research aimed at cultivating undergraduates’ capacity for innovation. Generally, the new and renovated science and engineering laboratories, equipped with the latest equipment, provided the necessary enabling environment for the reforms which involved the renewal or revision of subject matter, teaching-learning and evaluation methods, in both basic and advanced courses.

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Other learning centers provided important logistical support for the reformed teaching-learning methods. Advances in the development and application of new technologies and multimedia facilitated improvements in foreign language education. Many young instructors had, on their own initiative, introduced important reforms in foreign language teaching-learning methods through the application of multimedia. This led to an increased interest among students in foreign languages. The establishment of multimedia and audio-visual centers in many project universities helped to stimulate reform in using English in bilingual teaching. For example, the Peking UniversityAudio-Visual Education Center provides facilities for foreign language education to over 1,200 undergraduates and graduates, and nearly 10,000 undergraduates and graduates of 19 faculties of the School of International Studies. All project universities were involved in the development of conventional textbooks as well as electronic textbooks and CAI course materials.

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Additional Annex 12. Lanzhou University Student Loan Pilot Scheme

Funded by a PHRD grant of US$100,000 (RMB 830,000, which MOE/FILO erroneously assumed was part of World Bank project funding), the Student Loan Pilot Scheme was launched in November 1999, and the funds were disbursed by the end of December 1999. The longest term was nine years; the shortest, six years. As the table below shows, rural students and ethnic minority students were the major beneficiaries of the scheme. The loans contributed to the successful completion of their higher education. Although the scheme was designed specifically for students to repay after graduation when they were employed, the majority of borrowers repaid their loans before graduation.

Undergraduate population: 7,965 Loan Applications Loan ApprovalsNo. % No. %

Applicants 1,413 18.4 614 43.4Female Students 1,378 17.9 105 17.1Ethnic Minority Students

419 5.4 37 6.0

Rural Students 5,920 76.9 524 85.3Science Students 4,765 61.9 439 71.5

Source: Lanzhou University Completion Report, pp. 16-17.

Of those who received the loans at 2% per annum interest charge, students of 1999 comprised 94.3%, those of 1998, 33.4%, and those of 1997, 7.4%. The average loan amount was RMB 1,000 – 2,000. Of all the approved applicants, 28 (4.6%) took a loan of less than 7 years; 153 (24.9%), of 8 years, and 433 (70.5%), of 9 years.

Loan Repayment and Revolving Fund. All the 28 students of 1997 cohort paid off their loans before graduation (July 2001); recovery was 100%. Of the 1998 cohort, 113 of the 153 students paid off before graduation (July 2002); thus, recovery was 74%. Of the 1999 cohort, 433 students paid off before graduation (July 2003). Up to July 2005, 518 students had paid off their loans; the recovery was 84%. By July 2005, RMB 707,000 (including RMB 23,000 interest) had been recovered. As the amount recovered was relatively small, the university, in order to save on administrative costs, merged the recovery loans into the Lanzhou University Special-Purpose Interest-Free Loans for the revolving loan fund, with the intention of using the funds independently for the revolving applications when the loans were fully recovered. (Lanzhou University Completion Report, p. 17.) The report did not explain why students who took the loans repaid them before their graduation. One assumption is that loan repayment was a condition for graduation. If indeed students had no option but to repay their loans before graduation, the apparent outcome did not prove or disprove the pilot project's assumption that some students might prefer to take an interest-bearing loan which could be repaid after graduation when they were employed. Without a detailed analysis, there appeared to be no basis for any policy recommendation. (For additional information, see MOE/FILO ICR Annex 1.)

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Additional Annex 13. List of Project Universities and Partner Institutions

Project University Partner InstitutionNo. Name Code Location &

JurisdictionName Location & Province

1501 Peking University PKU Beijing, MOE Inner Mongolia University Hohhot, Inner Mongolia1502 Beijing Univ. of Aeronautics &

AstronauticsBUAA Ministry of Natl.

Sc. & IndustryGuizhou Industrial University Guiyang,

Guizhou1503 Beijing Univ. of S &T (Univ of S & T

Beijing) BUST(USTB)

Beijing, MOE Baotou Iron & Steel College Baotou,

1504 Beijing Institute of Technology BIT Ministry of Natl. Sc. & Industry

Yan’an Educational College Yan’an, Shaanxi

1505 Beijing Normal University BNU Beijing, MOE Northwest Normal University Xi’an, Shaanxi

1506 Peking University Health Science Center* PKUHSC Ministry of Public Health

Inner Mongolia Medical College Hohhot, Inner Mongolia

1507 Dalian University of Technology DLUT MOE Dalian Nationalities Institute Dalian, Liaoning

1508 Southeast University SEU MOE Yancheng Engineering College Yancheng, Jiangsu

1509 Fudan University FDAN MOE Yunnan University Kunming, Yunnan

1510 Harbin Institute of Technology HIT Ministry of Natl. Sc. & Industry

Heilongjiang College of Science & Technology

Heilongjiang

1511 Huazhong Institute of Technology HUST MOE Hubei Three Gorges Institute Hubei1512 Jilin University JLU MOE Beihua University Changchun,

Jilin1513 Jilin Univ.of Tech. ** JUT MOE Yanbian University Jilin1514 Lanzhou University LZU MOE Guizhou Normal Univ; Lanzhou

Rly. Institute; Xinjiang University; Ningxia University

Lanzhou, Guizhou

1515 Nanjing University NJU MOE Guangxi Normal University Guiling, Guangxi

1516 Nankai University NKAI MOE Yunnan Normal University Kunming, Yunnan

1517 China Ocean University COU MOE Liaocheng Teachers’ College Liaocheng, Shandong

1518 Tsinghua University TSING MOE Kunming Univ. of Technology Kunming, Yunnan

1519 Shaanxi Normal University SNNU MOE Baoji College of Arts & Science***

Baoji, Shaanxi

1520 Shanghai Jiaotong University SJTU MOE Xinjiang University Urumqi, Xinjiang

1521 Sichaun University SCU MOE Xichang Agric.ultural College Xichang1522 Tianjin University TJU MOE Inner Mongolia Polytechnic

University.Hohhot, Inner Mongolia

1523 Wuhan University WHU MOE Hubei-Yunyang Teachers’ College Yunyang, Hubei

1524 Xi’an Jiaotong University XJTU MOE Ningxia Northwest Second Minorities Institute

Yinchuan, Ningxia

1525 Zhejiang University ZJU MOE Qinghai University Xining, Qinghai

1526 China University of Science & Technology CUST China Acad. of Science

Anhui Normal University Wuhu, Anhui

1527 Mining and Technology University China (China Univ. of Mining and Technology)

MTUC

(CUMT)

State Bureau of Coal Industry

Xuzhou Engineering Institute Xuzhou City, Jiangsu

1528 Chongqing University CQU MOE Chongqing Architecture University Chongqing; Chongqing Municipality

* Formerly Beijing Medical University. ** Merged with Jilin University, June 2000. *** Formerly Institute of Liberal Arts & Engineering.

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