Dociun tof

The World Bank

FORt OFFICAL USIE ONLY

Report NY. 12496

PROJECT COMPLETION REPORT

CHINA

POLYTECHNIC/TELEVISION UNIVERSITY PROJECT(CREDIT 1411-CHA)

NOVEMBER 17, 1993

MI CROGRAPH I CS

Report No: 12496Type: PCR

Environment, Human Resources and Urban DevelopmentOperations Division

China and Mongolia DepartmentEast Asia & Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS(as of April 1993)

Currency Renminbi (RMB)Unit Yuan (Y)US$1.00 - Y5.7Y1.00 - $0.18

FISCAL YEAR

January 1 - December 31

ACADEMIC YEAR

September 1 - August 30

ABBREVIATIONS

CRC Chinese Review CommissionCRTVU Central Radio and Television UniversityDCA Development Credit AgreementFILO Foreign Investment and Loan OfficeIAP International Advisory PanelNEC Municipal Education CommissionMOE Ministry of EducationPCR Project Completion ReportPEC Provincial Education CommissionPTVU Provincial Television UTniversitySEdC State Education CommissionUDPI University Development ProjectTVU Television University

Note: At the time of project appraisal, the chief implementing agency wasknown as the Ministry of Education. In 1985, as part of a majordecision on education reform, this agency was renamed the StateEducation Commission to reflect its change in status to an agencydirectly under the State Council. In this document, the agency isgenerally referred to as the State Education Commission (SEdC).

FOR OFFICUL USE ONLYTHE WORLD BANK

WaShington, O.C. 20433U.SA

wa tIons Evauaton

November 17, 1993

MEMORANDUM To THE EXEE DIRECTORS AND THE PRESIDENT

SUBJECD: Project Completion Report on ChinaPolytechnic/Television University Project (Cr. 1411CHIA'

Attached is the Project Completion Report on China - Polytechnic/TelevisionUniversity Project (Cr. 1411-CHA) prepared by the East Asia and Pacific Regional Office.Part II was prepared by the Borrower.

The project substantially, if unevenly, achieved its main objectives of expandingcapacity and enrollments, and enhancing instructional quality in the new polytechnic andtelevision University systems. Outcome of the project is rated as satisfactory. The project isremarkable for the fact that it had significant accomplishments despite a range of constraints,including hasty and inadequate preparation and supervision, faulty design, a shifting economicand sector policY context, risky institutional innovations and complex, partly unforeseeable,technological problems with equipment. On the positive side, the commitment of project staffand the responsiveness of Bank staff in identifying and proposing solutions to issues smoothedthe rough path which the project trod.

The project only partially achieved its institutional development objectives withregard to staff of project institutions, project management staff and subsector planning andevaluation capacity building. This was largely due to inappropriate technical assistance andfellowship programsIand unintegrated management, especially the polytechnic and televisionUniversity components which belonged to different systems.

Sustainability is uncertain despite the mushrooming of polytechnics outside theproject. This is because: (a) evolving policy in vocational and higher education renders thefuture of project institutions unclear and no follow-up plans have been made; and (b) thereare risks that possible localized funding and management may be weak under the currenttrend toward; decentralization.

Ihe PCR is thorough, frank and analyticaL

No audit is planned for this project.

Attachment

This document has a restricted distributon and may be used by recipients only in the peformance of their officialduties. is contents may not otheniwse be disciosed wthout World Bank authoization.

FOR OMCAL USE ONLY

PROJECT COMPLETION REPORTPOLYTECHNICYTELEVISION UNIVERSIT' PROJECT

(Credit 1411-CHA)

Table of Contents

Page No.Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Evaluation Summary . . . . . . . . . . . . . . . . . . . . . . . . .

I. PROJECT REVIEW FROM BANK'S PERSPECTIVE

Project Identity . . . . . . . . . . . . . . . . . . . . . . . . . .Project Background ...... . .. . . .. . . .. . . .. . . . .Project Objectives and Description ................ . 2Project Design .......................... . 3Project Implementation ...................... . 4Major Results of the Project ................... . 7Project Sustainability . . . . . . . . . . . . . . . . . . . . . . 9Bank Performar'ce ......................... . 10Borrower Performance ....................... . 11External Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . 11Project Relationship ....................... . 12Project Documentation and Data .... . . . . . . . . . . . . . . . 12Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . .12

II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE .... . . . . . . . 14

Adequacy and Accuracy of Factual Information in Part III . . . . . . .14Comments on the Analysis in Part I . . . . . . . . . . . . . . . . . .14Bark Performance . . . . . . . . . . . . . . . . . . . . . . . . . . .20Borrower Performance . . . . . . . . . . . . . . . . . . . . . . . . .20

III. STATISTICAL INFORMATION

1. Related Bank Loans and IDA Credits. . . . . . . . . . . . . . . .222. Project Timetable . . . . . . . . . . . . . . . . . . . . . . . .243. Cumulative Estimated and Actual Disbursements . . . . . . . . . .254. Planned and Actual Completion Dates of Components . . . . . . . .265. Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . .276. Allocation of Credit Proceeds . . . . . . . . . . . . . . . . . .287. Project Indicators. . . . . . . . . . . . . . . . . . . . . . . .298. Project Study . . . . . . . . . . . . . . . . . . . . . . . . . .319. Status of Credit Covenants. . . . . . . . . . . . . . . . . . . .3210. Staff Inputs by Stage of Project Cycle. . . . . . . . . . . . . .3311. Mission Data by Stages of Project . . . . . . . . . . . . . . . .34

ANNEXES

Annex 1: Evaluation Report of the International Advisory Panel andChinese Review Commission (Executive Summary)

Annex 2: Participants in Final Evaluation Visit (March/April 1990)

This document has a restrkted distribution and may be used by recipients only in the performanceof their oflicial duties. Its contents may not otherwise be disclosed without World Dank authodration.

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CHINA

POLYTECHNICtTELEVISION UNIVERSITY PROJECT(Credit 1411-CHA)

PROJECT COMPLETION REPORT

Preface

This is the Project Completion Report (PCR) for thePolytechnic/Television University Project in China, for which a Credit (1411-CHA) in the amount of SDR 79.6 million was approved on September 13, 1983.The credit was closed on June 30, 1992, two and a half years behind schedule.By June 30, 1990, implementation of the project as app .ised was substantiallycompleted. To utilize credit savings of approximately SDR 13 million, anequipment maintenance account was established in April 1990, with the approvalof the Association's Board of Directors and amendment to the DevelopmentCredit Agreement (DCA). The account continued disbursing through mid-1992.

The PCR was jointly prepared by the Environment, Human Resources, andUrban Development Division, China and Mongolia Department, East Asia andPaoific Regional Office (Preface, Evaluation Summary, Parts I and III) and theBorrower, represented by the State Education Commission (Part II).

Preparation of this PCR was organized during a completion mission ofthe project in March/April 1990, and is based, inter alia, on the StaffAppraisal Report; Development Credit Agreement; annual progress reports of theBorrower; reports of the International Advisory Panel and Chinese ReviewCommission for the project; evaluation questionnaires and reports by theproject institutions; reports of specialists who visited project institutionsto provide training and technical assistance; correspondence between the Bankand the Borrower; and internal Bank memoranda.

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CHINA

PQLYTECHNIC/TELEVISION UNIVERSITY PROJECT(Credit 1411-CHA)

PROJECT COMPLETION REPORT

Evaluation Sumnary

Introduction

1. This was the third Bank-assisted project in education for China,and the ninth operation to be approved following the Government's renewal ofmembership in the World Bank in 1980. The two preceding education projectssupported development of existing key natioral universities and agriculturalcolleges and research institutes, and were completed in June 1985 and December1988, respectively. This project was undertaken to further develop and expandaccess to post-secondary education through ralatively new institutions thatcould provide cost-effective, vocationally-oriented programs for recentsecondary school graduates and adults whose education had been disruptedduring the Cultural Revolution. The project was appraised in January-February1983 and approved in September 1983. Total costs were estimated at US$206.2million, of which US$84.8 million equivalent was to be financed by an IDAcredit. The project was originally scheduled to close on December 31, 1989but has been extended to permit completion of staff development programs in1990 and disbursement of an equipment maintenance account in 1991-92. Theproject was completed in June 30, 1992. Including the maintinance account,the actual project costs have been US$202 million, with a foreign exchangecomponent of US$92.1 million.

Objectives and Project Content

2. Development of the project institutions supported theGovernment's effort to alleviate shortages of skilled manpower that hinderedthe pace of modernization and economic growth. China's television universitysystem (TVU) had been reopened in 1979 and was to be expanded and modernized.The polytechnics in the project, among the first group of such institutions inChina, were to constitute a new form of post-secondary education by providingtwo or three year diplomas through programs that were non-residential,required payment of fees and did not guarantee jobs to graduates. The projectobjectives were to increase the numbers of graduating technicians, improveinstructional programs and strengthen management of both types of post-secondary institutions. To assist the polytechnic system, the projectincluded development of 17 polytechnics through campus construction orrenovation, provision of educational equipment, and a program of curriculumand staff development. To assist the TVU system, the project includedconstruction and equipping of television production, laboratory and printingfacilities for the Central Radio and Television University (CRTVU);construction and equipping of production, laboratory, audiovisual, andclassroom facilities at 28 provincial television universities (PTVUs);

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establishment of transmission stations for nine major provincial televisionuniversities; a pilot program of study centers in rural areas; and trainingand technical assistance for TVU staff. The project also provided fortechnical assistance and equipment related to evaluation and planning ofir.vestments in these and other educational systems.

3. In March 1990, the Board approved an amendment to the DevelopmentCredit Agreement to establish an Equipment Maintenance Account for Bankeducation projects from the unutilized funds from the project.

Implementation Experience

4. Initial implementation was slower than expected, withdisbursements at about 11% of appraisal estimates by the end of the first yearof effectiveness. Slow disbursements were related to reasonable delays inconstruction and procurement, and difficulties in launching the technicalassistance program. With increased effort by implementing agencies andsupport of external specialists, disbursements accelerated in 1986 andcumulative disbursements reached more than 200% of appraisal estimates forthat year. At the end of 1992 disbursements had reached 107% of the estimatedcredit total of $85.0 million.

5. During implementation, the SEdC coordinated the provincialeducation bureaus and project institutions in procurement and installation ofequipment, participated in technical assistance activities, and in preparationof annual progress and auditing reports to the Bank. Local officials anduniversity leaders worked diligently to implement the project. The SEdC andindividual project institutions received advice and assistance in planning andmanagement of technical assistance from an International Advisory Panel andChinese Review Commission financed under the project.

6. In terms of project issues, problems stemming from project designwere encountered in implementing the training and technical assistance. Thecomputing equipment selected to aid management of the TVU system turned out tobe unsuitable for administration of these institutions and was not able to befully utilized. Availability of satellite technology for educationalbroadcasting in China was not anticipated at appraisal but came about in 1986and has had broad impact on distance education in general and on the projectinvestments.

Results

7. The educational capacity of both the polytechnics and TVUs hasbeen increased significantly. More than one million graduates with vocationalcollege diplomas and several million other adult certificate holders have beeneducated at the project institutions during i-mplementation. The 17polytechnics established under the project are important examples for morethan 100 other polytechnics established in recent years by provincial andmunicipal governments throughout the country. The television universitieshave been substantially modernized and expanded into a countrywide system thatcan be adapted to changing national and local labor requirements. There is

svidence of improvement in the quality of instruction through improvedteaching methods and increased amounts and relevance of practice undertaken bystudents in conjunction with classroom learning. Thtc scope of instructionoffered has broadened through development of many new study fields and coursesin science and engineering as well as the social sciences, finance and foreignlanguages. Significant development of management and administration systemshas been achieved in only some of the project institutions. There has beenless progress than expected in evaluation and planning systems.

8. Fur-ls from the Maintenance Account were provided to 28institutions for the procurement of spare parts and accessories. This accounthas provided a source of funds for the institutions to make purchases of spareparts and accessories in a timely manner, thus resultin. in increasedutilization rate of their equipment.

Sustainability

9. With China's ongoing efforts to modernize, there will becontinued demand for the kind of post-secondary education that the projectinstitutions are now well-established to provide. The polytechnics and TVUsare evolving, however, in ways that will make it difficult to fulfill orsustain the original concept of SEdC and the Bank of locally managedinstitutions that function more or less similarly across the country accordingto centrally articulated policies. A key question in the fucure developmentof the polytechnics and TVUs is to what extent central government policies andavailable resources cani be used to support and guide development of theseinstitutions, especially if the burden of financing and management isincreasingly shouldered by local institutions.

10. As the funds in the Maintenance Account are repaid over an 18-24month period from the borrowing institutions other institutions from previousBank-financed projects may borrow funds for spare parts and accessories.

Findings and Lessons Learned

11. The principal lessons learned during project preparation,implementation and evaluation, wlth implications to other projects, aresummarized below:

(a) Project design and preparation should be based on v-.derstandingof the broad policy context of the operation and, to the extentpossible, should incorporate existing local institutions,resources and expertise.

(b) It is important that the design of large-scale technicalassistance programs in China provide for involvement of peopleand institutions in China who are allocated the time andresources to guide visiting foreign specialists.

(c) Assessment of staff development needs and potential trainingsolutions must take into account the current skill level andexperience of the target group.

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(d) To the extent possible, there needs to be continuity of staff inproject supervision and adequate resources and attention toreorientation in the case of staff turnover.

(e) Systems for monitoring and evaluation of investments ineducational institutions, especially new ones, need to becontinually assessed and refined. If indicators are found to beunsuitable or rnot useful, they should be revised.

(f) To maximize returns on investment in long-term external projectadvisors, it is essential that there be close and continuouscoordination of the Government's implementing agencies, theexternal advisors and Bank staff responsib for supervision.

CHlIN

POLYTECHNIC/TELEVISION ,IgERSITY PROJECT(Credit 1411-CHA)

RJECT COMPLETION R

PART i. PROJECT REVIEW FROM BANK'S PERSPECTIVE

A. Project Identitv

1.1 - Project Name: Polytechnic/Television Uni-ersity Project- Credit No.: 1411-CHA- RVP Unit: East Asia and Pacific Regional Office, China and

Mongolia Department- Courtry: China- Sector: Education- Subsector: Higber Education

B. Proect_ Backtround

1.2 Sector Development Objectives. In support of China's ambitiousmodernization effort, the Bank's lending to the Government in education in theearly 1980G was aimed at helping to alleviate severe shortages of skilledmanpower, especially in science and engineering. These shortages stemmed fromthe disruption of post-secondary education and China's isolation during theCultural Revolution. Access to higher education in China was limited, with anenrollment ratio of 2.1% of the age cohort in 1981 compared with 5% in otherdeveloping countries. Bank assistance was thus directed toward expandingopportunities and access to higher education. Specifically, the Governmenthad decided to develop conventional universities, establish a system of short-term vocational colleges (polytechnics), and develop its television university(TVU) system. The TVU had been started in the early 1960s to train scienceteachers, closed during the Cultural Revolution, and reopened in 1979.

1.3 Policy Context. In 1983, as the project was being developed, theGovernment's reform program was achieving progress in rural areas and reformefforts were increasing in the industrial sector. These were strong "push"factors for development of higher education. Yet, the cost implications ofexpanding conventional universities under existing policies of free boarding,tuition and scholarships for students and guaranteed job assignment forgraduates were viewed by the Government as constraints to further expansion ofthese higher education institutions. The polytechnic and TVU systems wereseen as a faster and less costly means of expanding post-secondary educationto produce middle-level technicians. Polytechnics were to offer post-secondary technical education to recent upper secondary school graduates. TVUeducation was initially to upgrade the skills of currently employed workersand over time to enroll an increasing proportion of secondary schoolgraduates. New education policies were to be introduced through thepolytechnics. In contrast to conventional universities, these institutions

would be non-residential, students would pay tuition, and graduates would notbe guaranteed future employment.

1.4 Linkages Between groject. Sector and Policy Objectives. Thepolytechnics and television universities developed through the project aremaking an important contribution to meeting China's requirements fortechnical, managerial and other qualified manpower to support modernizationand development. The policy innovations in the polytechnics (described inpara. 2 above) have been launched but in some respects were -.ot able to befully implemented because they were dependent on broader reforms in housingpolicies, enterprise management. wages or the labor assignment system.

C. Project Obiectives and Descriptions

1.5 Project Objectives. The specific objecti- s of the project wereto: (a) increase the output of technicians from the initial group ofpolytechnics and expand the enrollment capacity of the TVU system; (b) raisethe quality, scope and relevanca of instruction; and (c) improve the standardsof management in both systems. The project institutions were to work towardtargets to be attained by the end of the project with respect to enrollmentlevels, student-teacher ratios, the number of specializations and courses,space utilization and other efficiency measures (Part III, Table 7).

1.6 Project Components. The project was to consist of tlhe followingcomponents:

(a) Polytechnic System--(i) establishment or improvement of 17polytechnics, including construction or renovation of libraries,laboratories, and classrooms; (ii) provision of educationalequipment, including laboratory, language laboratory andaudiovisual equipment and computers, books and teachingmaterials; (iii) a program of curriculum and staff deve'opment,including training seminars, fellowships, and local and overseasstudy tours for teaching staff;

(b) Television University System--(i) construction and equipping of aproduction center, a laboratory center and printing facility toassist the Central Radio and Television University (CRTVU); (ii)in the 28 provincial television universities (PTVUs),construction and equipping of about 9 major and 19 minorproduction centers, and about 85 study centers, each consistingof a laboratory, audiovisual and classroom facilities; (iii)construction and equipping of transmission stations at nine major(PTVUs); (iv) a pilot program of study groups in rural areas andprovision and equipping of classrooms for use by these studygroups; and (v) staff development for CRTVU and PTVU staffthrough provision of local training, overseas fellowships andstudy tours, and specialist services.

(c) Evaluation and Planning--Improving and assisting the evaluationof current investments in the polytechnic and television

university systems and planning and preparation of futureinvestments in these and other educational systems throughprovision of local training, overseas fellowships and studytours, specialist services and related equipment.

(d) Near the end of the Project, the Board approved an amendment tothe Credit Agreement to establish an equipment MaintenanceAccount with the unutilized funds (savings) from the Project.The account provided a fund for institutions from Bank educationprojects to borrow foreign exchange for the purchase of spareparts and accessories.

D. Project Design

1.7 The project was designed in a remarkably s' irt period,considering that China had only resumed its membership and borrowing activitywith the Bank in 1980. This was the third education project in Chinadeveloped in a period of approximately three years (Part III, Table 1);implementation of the two previous projects was underway but in relativelyearly stages. In the Bank, a single task manager was responsible for allthree of these projects. Conceptualization and preparation for thePolytechnic/TVU Project were initiated during the appraisal mission for theAgricultural Education and Research Project in late 1981. The project wasorganized through a preparation mission in October 1982 followed by appraisalin January 1983. A total of approximately 80 staff and consultant weeks weredevoted to the project from preparation through negotiations. Additionalexpatriate assistance in project preparation was provided to the Government byUNESCO and specialists hired by SEdC with funds available for projectpreparation under the first University Development Project (UDPI).

1.8 The aim of the project - to develop higher education in a cost-effective manner through these relatively new kinds of institutions wasmutually understood by SEdC and the Bank, and considered innovative in theChinese context. The design incorporated features of the earlier UDPIProject. Common elements included: (a) the project was to support arelatively large number of higher education institutions (in this case 46) invarious provinces throughout the country, with overall project coordinationand policy guidance by SEdC in Beijing; (b) the bulk of investment under theproject was to be for equipment and civil works to expand and upgradefacilities at all institutions, with review of planned expenditures andprocurement to be coordinated centrally; (c) overseas fellowships andexpatriate technical assistance were to be provided for staff development inproject institutions; (d) allocations to individual universities and theschedule of implementation were to be basically common for participatinginstitutions; and (e) implementation of physical and technical assistanceinputs to the project institutions were to proceed simultaneously afterproject effectiveness. An additional common element of the Polytezhnic/TVUProject to UDPI was inclusion of an International Advisory Panel (IAP) andChinese Review Commission (CRC) which would advise SEdC and the projectinstitutions and, with assistance from an IAP secretariat based overseas,would support SEdC in defining and managing a technical assistance program of

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specialist visits and study tours. (This latter feature was not described inthe appraisal report, although it had been discussed during preparation).

1.9 In implementation, the design proved to be inappropriate inseveral respects, mainly because the project institutions differed from theuniversities supported under UDPI. In comparison with the key conventionaluniversities, the polytechnics and TVUs were new and less well-established,had fewer international contacts, were generally staffed with less experiencedfaculty, and offered more vocationally oriented programs. Unlike the UDPIuniversities, which are national in status and receivp most of their financialsupport directly from SEdC, the polytechnics and PTVUs are managed andfinanced primarily by provincial and municipal governments; thus SEdC'sinfluence was somewhat less direct under this project. Not only were theproject institutions different from conventional universities, but thepolytechnic and TVU systems differed from one another I terms of educationaldelivery. The polytechnics used a more traditional classroom approach whilethe TVU was based on an innovative use of technology in study centers oftenlinked to enterprises. Uniting the development of these two very differentsystems into a single project that involved extensive foreign involvementproved a complex undertaking for SEdC.

E. Project Imolementation

1.10 The start-up of implementation was slower than expected, withdisbursements at about 11% of appraisal estimates at the end of the first yearof effectiveness. With progress in civil works, and with large procurementpackages and the establishment of the IAP/CRC to support technical assistancemanagement, implementation accelerated to reach more than twice the level ofcumulative appraisal disbursement estimates by the end of 1986. Thereafter,disbursements increased moderately and leveled off in 1989. The variancesbetween planned and actual project implementation were: (a) the program ofoverseas fellowships for staff development was only about half that estimatedat appraisal; (b) some television production equipment purchased under theproject is not being used as extensively as expected; (c) specialist visits toproject institutions were not as useful and relevant to project institutionsas expected; and (d) evaluation and planning for the TVU and polytechnicsystems under the project was not undertaken as envisaged at appraisal.

1.11 The shortfall in overseas fellowships occurred mainly becausethere were fewer candidates than estimated from the polytechnics andtelevision universities who had the requisite language skills for study in aforeign country. The problem was recognized duiing the first year ofimplementation, and steps were taken by SEdC and the project institutions toprovide for appropriate language training. Even with these efforts, however,the total number of fellowships could not reach the levels estimated atappraisal. This problem could have been avoided through more carefulassessment of staff training needs in the project institutions during projectdesign. It might have been more appropriate and cost-effective to address agreater proportion of training needs within China using domestic expertise.

1.12 There is underutilization of facilities and equipment providedunder the project for the production of educational television programming atsome of the PTVUs. Reasons vary across institutions but often include faultystudio design or construction, shortages of qualified technical staff, or lackof operating funds. An overall factor is limited transmission time forlocally produced educational television at provincial and municipal TVstations. In their broadcasting, these stations must give first priority toTV education programs produced, approved and broadcast nationwide under theauspices of CRTVU. In a few cases, PTVUs are contracted by CRTVU to produceprogramming used nationwide, but in general this does not make full use ofprovincial capacity, and there are limited incentives for PTVUs to invest inprogram development. In hindsight, it might have been possible to avoid lowreturns on some investment in this equipment had there been more thoroughappraisal of central policies that were to guide TVU broadcasting and of theperceived needs of CRTVU and PTVUs to develop local pro action capacity. Amore efficient alternative to investment in new capacity might have been theupgrading or expansion of production facilities at local television stations,although coordination across institutional boundaries in China is sometimesproblematic.

1.13 Given the innovative nature of the project institutions, it wasbelieved that exchange of ideas with foreign specialists would assist projectinstitutions to adopt new ideas and make good use of technology. In projectevaluation (described in para. 33), responses to a questionnaire and follow-upqueries during the project completion mission revealed that one quarter ofproject institutions reporting in the evaluation found the visits andworkshops by foreign specialists of little or no use to their staff.Institutions reported a gap between the foreign specialists' knowledge andadvice and the conditions faced in Chinese institutions. Contributing factorsmay have been the differences of the polytechnics and TVUs from conventionaluniversities (see para. 8), insufficient allowance of time and resources forbriefing of foreign specialists and preparation by the specialists, and a lackof intensive involvement by Chinese specialists in the design and delivery ofworkshops. What has been learned from this experience is that future projectsneed to incorporate more Chinese specialists to help assess needs, design andevaluate training programs, and brief and guide visiting specialists.

1.14 The appraisal envisioned that CRTVU and SEdC would be supportedunder the project thrcugh a component for evaluation and planning (para. 5(c)). The DCA speciried that units for evaluation of polytechnics and the TVUsystem would be established and maintained in SEdC and CRTVU, respectively,but no explicit terms of reference were agreed during preparation orimplementation for the functions of these units under the project. There wasno unit established in SEdC to oversee the polytechnic system per se. Since1987, the Bureau of Technical/Vocational Education in SEdC has been designatedas responsible for the polytechnics. For evaluation and planning of TVUs, theCRTVU originally assigned responsibility to its administrative office, butthis role became difficult to carry out as administration of the TVU systemwas decentralized. The Bureau of Audio-Visual Education in SEdC is nowresponsible for overseeing the TVU system. Responsibility for evaluation ofproject investments in the polytechnics and TVUs and for reporting to the Bank

has been assumed by the Foreign Investment and Loan Office (FILO) of SEdC, butthis evaluation role is unlikely to be sustained after project completion.Under the project, there has been little systematic forward planning forpolytechnic and TVU education by the central government and no future projectshave been prepared to support these systems.

1.15 Project Risks. Of the project risks identified in the appraisalreport, the uncertainties arising from the "newness of the polytechnicinstitutions and the policy changes for Chinese education" were of consequenceto the project. This risk was to have been mitigated by the evaluation andplanning component and by the use of project monitoring indicators. Onreflection, there might have been greater effort by Bank staff to help reducethis risk during project preparation through more in-depth study of the localconditions and policy context in which these institutions were beingdeveloped, inclusion of fewer institutions in the proje-t, provision of moreintensive technical assistance based on detailed needs assessment, or phasingcertain aspects of the project in a pilot group followed by study andexpansion of successful implementation in a broader number of institutions.

1.16 Unforeseen Factors Affecting Project Implementation. Satellitebroadcasting for education became available in China in 1986. Thisdevelopment was not anticipated at appraisal but has had widespread impact ondistance learning in China. Satellite has dramatically increased the capacityfor nationwide distribution of programming from Beijing. In addition todeveloping the TVU system as envisaged at appraisal, the Government haslaunched an educational television channel and an in-service teacher trainingprogram via satellite. The chief consequences of satellite use for theproject are that some terrestrial transmission equipment purchased for theCRTVU is not used, and programming produced by PTVUs may be "crowded out' bythe CRTVU programming that is now available from Beijing. Local TV stationsproviding transmission for TVU programs now operate on a "hybrid system" inwhich they receive CRTVU programming via satellite from Beijing and disperseit throughout the province by microwave relay transmitters, many of which wereputrchased under the project. Had it been anticipated that satellite wouldbecome available to the TVU system during the project, the investment mighthave included more purchase of earth stations (which cost as little asUS$1,000 and are manufactured in China) for branch or study centers in veryremote areas, not all of which are presently served by the hybrid system.

1.17 It was not anticipated in 1983, when the outlook on highereducation in China was clearly expansionary (paras. 1-2), that development ofthe project institutions might be affected by quotas on full-time enrollment.Such quotas were implemented in universities throughout China in 1988, in partto allow for increased resources for the effort to achieve universal basiceducation. Contrary to expectations at appraisal, the polytechnics and TVUshave not been exempted from these growth constraints in consideration of thecost-effectiveness of their operations. The justification and full impact ofthese policies on the project institutions, which also include largepopulations of part-time students, has not yet been carefully analyzed.Reliable and comparable data on total student enrollments in polytechnics andthe TVU are needed. It appears possible, however, that the quotas may be

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preventing project institutions from operating at the full capacity envisionedfor project completion and thus could be resulting in inefficient use ofresources.

1.18 There has been a savings in the credit proceeds of about SDR 13million which arose partly from lower than estimated expenditures, and partlyfrom fluctuations in the dollar value of the EDR over the life of the project.This savings is being used to address the shortage of foreign exchange forpurchase of spare parts and maintenance services, an issue of sustainabilityin this and other education projects in China. The Government and theAssociation, with the approval of the Association's Board of Directors andamendment to the DCA, agreed in May 1990 to establish an equipment maintenanceaccount that could be used as a revolving fund to maintain equipment purchasedby project institutions under this project and other education projects fundedby the Bank/IDA in China.

1.19 Decision Taken which Affected Proiect Implementation. The typeof computing equipment selected through International Competitive Bidding andpurchased to support management and administration in the CRTVU and PTVUs hasaffected project implementation. The operating system and softwarecompatibility of this equipment turned out to be unsuitable for theadministration of these institutions. At the recommendation of the Bank, theSEdC employed specialists in educational and computing equipment to assist inadoptation of the equipment to the original specifications. Staff at one ofthe PTVUs devised a way in which the computers could be adapted for use inadministration and SEdC organized a workshop of the other PTVUs to disseminatethis approach. Nevertheless, in the CRTVU and all but a few PTVUs, thisequipment remains unused. It is difficult to say what additional steps mighthave been taken to avoid this problem.

F. Maior Results of the Proiect

1.20 Project Objectives. Overall, there was significant progress oneach of the major project objectives, although the degree of success variedamong institutions. Full-time enrollment in both the polytechnics and TVUshas grown significantly during the project period but not to the high levelsenvisioned during appraisal. The reported numbers of part-time students atboth types of institutions exceed appraisal estimates. There is evidence ofimprovement in the quality of instruction through improved teaching methodsand increased amounts and relevance of practice undertaken by students inconjunction with classroom learning. The scope of instruction offered hasbroadened through development of many new study fields and courses in scienceand engineering as well as the social sciences, finance and foreign languages,which are seen as important for meeting social, economic and educationalneeds. Employers interviewed during the completion mission-I described

1/ Opportunistic interviews were conducted with groups of 10-20employers of graduates at the polytechnics and TVUs visited by theevaluation group in four provinces. Annex 2 lists members of theevaluation team.

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graduates of the project institutions as generally well-prepared for theworkplace and able to be trained quickly In the specific tasks of their jobs.Development of management and administration systems, however, has been unevenamong project institutions.

1.21 ImDact of Project. More than one million graduates withvocational college diplomas and several million other adult certificateholders have been educated at the project institutions during implementation.The 17 polytechnics established under the project, among the first group ofsuch institutions in China are important examples for more than 100 otherpolytechnics established in recent years by provincial and municipalgovernments throughout the country. The television university system has beensubstantially modernized and expanded and developed into a countrywide systemthat can be adapted to changing national and local labor requirements.21 Theproject institutions have increased participation in higher education amongupper secondary school graduates whose scores on the national examination werenot high enough for entrance to conventional university and among adultsseeking opportunities for continuing education. The Maintenance Accountprovided funds to 28 Bank project institutions to procure spare parts andaccessories on an emergency basis. This enabled the institutions to procurespare parts in a timely manner and in turn increasing the utilization rate ofthe equipment.

1.22 Policy Initiatives. With respect to the policy innovationsdescribed in para. 2, the project provided a testing ground for new ideas but,it appears that the policy initiatives have not extended as far as they wereexpected because success depended on far-reaching reform in other sectorswhose relatiotiship to educational reform was not carefully studied duringproject preparation. For example, it was intended that polytechnics be non-residential, but the project institutions have found it necessary to builddormitories to provide access for students who live too far away from thecampus to commute and are unable to obtain temporary housing nearby throughthe housing assignment system. (In addition, polytechnics must providehousing for staff.) Tuition has been levied for students of both types ofinstitutions but the fees vary widely among provinces depending on economicconditions. They are often paid by the enterprise in the case of the TVU, anddo not appear to be established in relation to actual unit costs and plans forcost recovery. Graduates from the polytechnics are permitted some flexibilityin choice of jobs, but in general their placement in positions must be part ofthe government plan for supply of manpower. While it was originally intendedthat the TVU would increasingly enroll recent upper secondary schoolgraduates, it appears that TVU students have further diversified to include,for example, upper secondary school students and teachers.

21 A total of 120 TVU study centers were established under the project,exceeding appraisal estimates by 35.

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G. Project Sustainability

1.23 With China's ongoing efforts to modernize, there will becontinued demand for the kind of post-secondary education that the projectinstitutions are now established to provide. The polytechnics and TVUs areevolving, however, in ways that will make it difficult to fulfill or sustainthe oriSinal concept of SEdC and the Bank of locally managed institutions thatfunction more or less similarly across the country according to centrallyarticulated policies. A key question in the future development of thepolytechnics and TVUs is to what extent central policies aad availableresources can be used effectively to support and guide development of theseinstitutions, especially if the burden of financing is increasingly shoulderedby localities.

1.24 Some present policies may be constraining development andefficiency improvements of project institutions. For example, leaders andlocal government supporters of polytechnics and PTVUs envision expansion offacilities and courses over the next several years to increase theircapability to meet local needs. If full-time enrollments are curtailed, evenwith present facilities, there are likely to be rising unit costs of providingeducation through these institutions and thus growing inefficiency. Centralpolicies are also encouraging polytechnics and PTVUs to give priority tovocational programs for secondary school students in rural areas. Yet, in thecase of polytechnics, most campuses are located in provincial capitals ormajor cities and have few or no dormitories or branch campuses. At the sametime, many local governments are seeking to develop 'their' polytechnicstoward becoming conventional four year, degree-granting universities. The TVUsystem is strongly influenced by CRTVU's regulation of the examination processand role in allocation of transmission time, yet the CRTVU plays a relativelysmall role in evaluation, policy analysis, innovation and overall leadershipof the TVU system. In fact, the quality and capacity of television productionby CRTVU has been surpassed under the project by some of the stronger PTVUs.

1.25 Currently, policy decisions by the central government for thepolytechnics and, in particular, the TVUs are based on very little orunreliable data and analysis on student enrollments, examination results,local efforts in curriculum development, and perceived educational andtrain'.ng needs of local industries. If SEdC is to guide polytechnics and theTVU system with central policy for efficient development of institutions thatwill b. able to adapt readily to meet changing local needs, there will need tobe greatly increased attention and resources allocated: to developing anationally standardized system of student records for the institutions;further improving budgetary and financial management systems; trainingmanagers; devising incentives for efficiency; and fostering cooperation amonginstitutions.

1.26 The central government, in cooperation with provincial andmunicipal education commissions, could also play a useful continuing role inassisting project institutions to use equipment resources efficiently byhelping to develop systems for maintaining buildings and equipment. An

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important first step has been taken with the establishment of a revolving fundto provide foreign exchange for purchase of badly needed spare parts (para.17). Another possible measure is the establishment of a mechanism that wouldfacilitate redeployment of equipment that is not used in the projectinstitutions. For example, in the case of TWUs, it might be possible toarrange for sale, auction or swap of the unused computers to otherinstitutions and to use the proceeds toward purchase of microcomputers for TVUadministration. These sorts of measures are difficult to initiate andimplement in China because cooperation across institutional, local andprovincial government boundaries is often complex. SEdC, however, with itsbroad mandate and established links to institutions and local governmentsnationwide could play an important role in helping overcome obstacles tocooperation.

1.27 The Maintenance Account has established the basis for a source offunds to enable education institutions to procure spare parts on an emergencybasis. SEdC expects to relend the funds once repaid and to continue theoperation of the fund.

H. Bank Performance

1.28 Major Strengths and Weaknesses. The Bank staff mobilized a teamof qualified specialists to work with SEdC in project preparation. Thesespecialists and SEdC worked intensively over a short period to design andorganize a project that could be implemented as quickly as possible and tohelp address what were perceived as urgent priorities in the expansion ofhigher education. The Bank ensured that specialists in educational equipmentand procurement were available to assist SEdC in a special post-appraisalmission. Bank staff helped to organize the IAP and structure implementationof technical assistance. In hindsight, there were some costs duringimplementation to the accelerated preparation in the form of unanticipateddifficulties in technical assistance (para. 12) and low returns on someinvestments in equipment (para. 11). On reflection, it might have beenpreferable to carry out more in-depth preparation in order to develop a betterunderstanding of these new institutions and the local conditions and policycontext in which they were to be developed.

1.29 A major weakness of Bank performance was in supervision.According to the Bank's management information system, total supervisionbetween project effectiveness in FY84 through FY90, excluding work on thecompletion report, was approximately 60 weeks or an average of less than 10staff weeks per year. Eighteen different staff and consultants participatedin supervision, of whom seven spent more than two weeks supervising theproject in any given fiscal year. Of the 46 project institutions in 28provinces, Bank staff visited those in about 10 major cities duringsupervision. No site visits were made to the pilot TVU study centers in ruralareas. There was relatively little direct contact with the IAP and virtuallynone with the CRC. Consequently, the Bank's supervision aide-memoires andreports to Bank management either overlooked or did not systematically reviewkey implementation problems, namely those experienced in the specialist visitsand in the evaluation component, and failed to investigate trends in

enrollment levels and qualitative aspects of educational programs andinstitutional management.

I. Borrower Performance

1.30 Malor Strengths and Weaknesses. In view of the SEdC's limitedexperience in working with the Bank at the time of project preparation, therewere some remarkable strengths in the Borrower's performance. The staff ofthe Planning and Finance Department and Foreign Investment and Loan Office(FILO) carefully and promptly developed the project proposals and assembledthe data necessary for project preparation. During implementation, SEdCcoordinated the provincial education bureaus and project institutions inprocurement and installation of equipment, participation in technicalassistance activities and in preparation of annual progress and auditingreports to the Bank. For their part, local officials and university leadersworked diligently to implement the project objectives as they understood them.Shortcomings in performance are mainly related to a lack of needed adjustmentsin the face of unanticipated changes or problems. SEdC staff were not closelyinvolved in the design, delivery and evaluation of the specialist workshops.More steps could have been taken to improve the organization and effectivenessof the seminars as shortcomings were reported by the IAP/CRC and specialiststhemselves. It has been recognized for some time that certain equipmentpurchased under the project is not utilized at some of the projectinstitutions, but progress has been slow in taking steps to redeploy theseitems. It would also have been useful to have greater involvement of theCRTVU and SEdC line bureaus in annual reporting and evaluation, IAP/CRCactivities, and Bank supervision.

K. External Advisors

1.31 The IAP and CRC for the project were constituted in 1985. Thesegroups comprised eminent education professionals who provided advice andsupport to SEdC and individual project institutions throughout projectimplementation. IAP/CRC activities were centered on an annual month-longvisit to China which involved inspection visits to project institutions andmeetings with SEdC officials in Beijing to discuss issues and define technicalassistance activities for the coming year. The IAP/CRC advised on TVU programproduction, curriculum development, administration and management, trainingneeds, and opportunities for cross-institutional cooperation. The IAP/CRCoffered many practical recommendations to SEdC, provincial and municipalgovernments, and project institutions (Annex 1). With support of itsSecretariat, the IAP provided critical support to SEdC in the identificationof experts from abroad for technical assistance activities and helped toarranged placement of fellows and programs for study tours. The IAP alsoprovided valuable support in the undertaking of tracer studies of polytechnicand TVU graduates. A shortcoming of the IAP's contribution is that relativelyless attention was paid to assisting SEdC in project mnonitoring and evaluationand to systematic analysis of issues arising during implementation, progressin policy initiatives, and the implications of broader policies and technicaldevelopments in China for the polytechnics and TVUs.

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J. Project ?lationshiv

1.32 Impact QRelationships on Project Implementation. Therelationships between the Bank and SEdC and between SEdC and the IAP/CRC andIA secretariat could have been better integrated. Each relationship was seenas having separate data requirements and supervision activities. For example,the annual project monitoring undertaken by SEdC for its reporting to the Bankwas not at all integrated with the TAP's annual visits and policy meetings.Prior to the final evaluation visit, Bank staff supervision missionsoverlapped with the IAP/CRC's annual meeting on only two occasions and thiswas only for debriefing, not formal participation in the Joint PolicyMeetings. Given their limited contact with SEdC or the Bank, the IAP were notalways up to date with policies in education and related sectors that affectedproject implementation. What has been learned through the final evaluation isthat although key issues were discovered through the implementation managementand supervision structures, problems were not always analyzed or resolved withall parties working together.

L. Prolect Documentation and Data

1.33 Adequacy of Staff Apgraisal Report and Major Working PaDers. TheSAR proved to be a useful document for specifying objectives, planning andguiding project inputs. In hindsight, however, there were two majorshortcomings: (a) the arrangements for implementation of technical assistancewere not explicit in the SAR and thus may not have benefitted from full reviewwithin the Bank; and (b) the evaluation and planning component was not clearlydefined and the indicators prepared for project monitoring proved difficult touse. For reasons discussed in para. 27, the supervision reports weresometimes scanty in the information provided and the issues reviewed.

1.34 Data for Evaluation. In 1989, a questionnaire developed by SEdCin consultation with the IAP/CRC was circulated to the 17 project polytechnicsand 28 provincial television universities and was completed by theinstitutions in both English and Chinese. The response rate for both groupsof institutions was more that 80%. In an effort to obtain qualitativeinformation, SEdC also requested self-evaluation reports from eachinstitution. The questionnaire was interpreted differently by differentinstitutions, however, particularly with respect to categories of studentenrollment. Thus it is difficult to aggregate figures or draw comparisonsamong institutions. Project progress reports, prepared annually throughoutimplementation, provide additional data for evaluation.

M. Lessons Learned

1.35 The principal lessons learned or again confirmed, withimplications to other projects, are summarized below.

(a) Project design and preparation should be based on understandingof the broad policy context of the operation and, to the extentpossible, should incorporate existing local institutions,resources and expertise.

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(b) In short-term technical assistance in China, it is likely thatspecialists from other countries who are not Chinese speakers andhave little experience in China will require considerablebriefing, preparation and guidance in adapting their knowledgeand expertise to the cultural context of a Chinese institution.It is therefore essential that the design of large-scaletechnical assistance programs provide for involvement of peopleand institutions in China who are able to guide this process.

(c) Assessment of staff development needs and potential trainingsolutions must take into account the current skill level andexperience of the individuals being assisted.

(d) To the extent possible, there should be continuity in Bankproject supervision and the likelihood of continuity should be aconsideration in the assignment of staff to supervise a givenproject. When continuity is not possible, there should becareful attention to ensure that new staff are able to spendsufficient time orienting themselves to a project and undertakingsubstantive supervision.

(e) Systems for monitoring and evaluation of investments ineducational institutions, especially new ones, need to becontinually assessed and refined. If indicators are found to beunsuitable or not useful, they should be revised.

(f) To maximize returns on investment in long-term external projectadvisors, it is essential that there be close and continuouscoordination of the Government's implementing agencies, theexternal advisors and Bank staff responsible for supervision.

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PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE

A. _deguacy and Accuracy of Factual Information in Part III

2.1 The Borrower recognizes that the tables of factual informationcontained in Part III have formed a sufficient illustration of the key factorsrelating to the evolution and implementation of the Project.

B. Co_ments on the Analysis in Part I

2.2 General Assessment. The Borrower agrees with the opinion of theInternational Advisory Panel (IAP) and the Chinese Review Commission (CRC)presented in the executive summary of their Evaluation report as attached inAnnex 1 of this report. Despite the shortcomings existing in its preparationand implementation, the Project on the whole has had a significant andbeneficial impact. Furthermore, it is important to note the followingspecific characteristics and conditions of the Project: (a) Both thepolytechnic and Television university (TVU) systems are new and unique inChina, and this is the first time for all the project institutions toparticipate in a project financed by the World Bank. They were extremelylacking in practical experience and had to learn while working; (b) The twosystems and the Project had close relation to the economic reform and openpolicy in China. They should adapt gradually to the changing needs forskilled manpower to achieve the reform, and meanwhile they were affected bythe related policy adjustments as well as the reform of economic development.

2.3 Project Pregaration and Design. The TVU system was establishedor restored in almost all provinces of China in 1979, the same year when theeconomic reform started throughout the country. A year later, China resumedits membership in the World Bank, and the concept of proposing an IDA creditproject to modernize and expand the system emerged soon afterwards. In 1981,intention of creating the polytechnic university system in China and applyingfor an IDA credit for its development was also evolved, despite the fact thatsuch an institution was first established in 1982. Thus, conceptualizationfor the Project was practically initiated in late 1980. Combining the twovery different systems into a single project was only for the purpose ofenlarging the implementation. However, the two components were essentiallytreated as separate projects, and hence no serious difficulties arose inproject management. At the time of project preparation, almost all theproject institutions had not been well established, some polytechnicuniversities were even just created. Moreover, no complete set of guidelineshad been established and perfected to manage education projects utilizingforeign investment and loans. The feasibility study of the Project had notbeen conducted adequately in some aspects during the relatively short periodof preparation. In addition, enthusiasm of the whole society for reform anddevelopment was strongly encouraged by the rapid progress in rural areas andincreasing demand for reform and development for the industrial sector."Overheating of the economy" and "excess demand" for skilled manpowercontributed to a strong "push" for the development of education sector. Undersuch context, some shortcomings of the project design discovered later is

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somewhat understandable. As a matter of fact, the designers did notsubject2.vely incorporate the features of the First University DevelopmentProject (UDPI) in the design of this project at least in terms of intention.

2.4 Project Implementation. An overwhelming majority of theparticipants of the Project hae worked very actively and seriously in projectimplementation. Although many of them were less-experienced or evenunqualified at the beginning, they learned hard on the job and gainedimpressive achievements at the end. During the life of the Project, however,a series of important decisions concerning education reform and representingpolicy adjustments were made by the Government. In 1985, a general decisionon reform of educational structure was made which highly emphasized theimportance of developing technical and vocational education in China, As ameasure of carrying out the decision, the Ministry of Education (MOE) wasreorganized and promoted to the position of commission, that is the StateEducation Commission (SEdC). In 1986, the National People's Congress adoptedthe Compulsory Education Law. In the same year, the State Council decided touse satellite broadcasting educational programmes. Since 1988, SEdC setquotas on full-time enrollment in universities, including polytechnicuniversities and TVUs, throughout the country as one of the measures ofimproving the quality of instruction and management. All these decisions andactions, as well as the progress of reforms in related economic and socialsectors, had considerably influenced the project implementation and severaltimes necessitated adjustments of project components, executing plan andcredit allocation. Another factor affecting the executing plan and causingthe adjustments was the intense fluctuation of currency exchange rates.Therefore, some variations in the process of project implementation and theactual results of the project could hardly have been accurately predicted andestimated in advance. The major adjustments had been agreed by the Bank andthe Government.

2.5 Overseas Fellowshins. Through annual review and mid-termevaluation of the Project at the end of 1985, the planned program of overseasfellowships for staff development was discovered too ambitious to be fulfilledin the designated implementation period. This is mainly because ofoverestimation of the quantity of candidates available from the projectinstitutions with qualified language skills for study abroad at appraisal.With the consent of relevant departments of the central government and theBank, SEdC adjusted the program in February 1986 by (a) decreasing the numberof candidates from managerial and technical staff and increasing the number ofcandidates from faculty staff, with total number reduced from 605 to 509; (b)organizing and sending out a number of short-time study teams in place ofindividual fellows; and (c) intensifying in-country language training for tViefellows before going abroad. Although the situation became better after theadjustment, the revised targets were still not met at project completion.Nevertheless, the performance of the returned fellows proved that most of themstudied quite well while abroad.

2.6 Central Radio and Television University (CRTVU). The annualreview and mid-term evaluation also revealed that, according to the status ofproject implementation in the first two years, the planned equipment

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procurement list and corresponding credit allocation to CRTVU both exceededthe reasonable requirements. After repeated investigations and studies, it hadbeen understood commonly among the relevant departments that continuing toimplement the original program of procurement would most likely causeconsiderable overstock and waste, especially under the circumstances that therelated civil works necessary for installation of the equipment could not becompleted on time and the technical staff necessary for operating andmaintaining the equipment was inadequate both in quantity and quality.Therefore, the Bank and the Government reached agreement through exchangingletters between authorized representatives that the equipment list should becut down and the credit proceeds should be reallocated correopondingly. Theadjustment resulted in a surplus of credit proceeds of about US $2.1 millionequivalent that were used to: (a) support the Central Institute of EducationalResearch (CIER), which is committed to conduct research projects in relationto the development of the polytechnic universities, with US $0.6 millionequivalent to equip its information center and psychology laboratory; and(b) help equipping the newly established China Education Television (CETV)with US $1.5 million equivalent, serving the satellite broadcasting ofeducation TV programs as well as some programmes produced by CRTVU. Thus, theProject had increased two components in its composition and extended itsimpact. In addition, most of the polytechnic and Television universities(PTVUs) had also saved certain amount of their allocated credit proceeds inprocurement of equipment for the study centers in the Project. These savingswere used to equip 34 additional study centers, raising the total number fromthe original 85 centers to 119.

2.7 E£uipment Maintenance Account. The project, when adjusted inlate 1988 as described above, was near completion. SEdC reviewed and checkedin detail the disbursement of the credit and estimated that there would be asurplus of about SDR 13 million in the account at the closing date. Thisamount was left mainly due to the unpredictable sharp fluctuation of thecurrency exchange rates, and also partly because the adjusted program ofoverseas fellowships would still not be accomplished. After intensivediscussions, the Bank and the Government agreed at last in May 1990 with anamendment to the DCA that allowed to propose establishment of an equipmentmaintenance account with this amount, which is expected to provide assistanceto the sustenance of the equipment of the beneficiaries. As a creativeproposal, the program won the overall support of the concerning parties.

2.8 The Maintenance Account Borrowers. By the end of 1992, theAccount had loaned US$ 17.171.664.90 to 28 Project institutions which aremainly from the First University Development Project and the Polytechnic TVUProject.

2.9 The equipment purchased under the account are mainly the spareparts and accessories for: (a) testing and analysis -- electric mirror, infra-red absorbing instrument, ultra-violet absorbing instrument, etc.; (b) themedium-type and super computers such as Fujitsu and Honeywell; and (c) theinstruments for Physics and Biology. All the spare parts and accessories weredelivered by the end of 1992.

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2.10 According to the agreements signed with the account users, theusers will repay by the end of 1993. But the repayment rate of the account islow because of the financial constraints of the users. SEdC will hasten theaccount users to repay in the designated time and speed up the turnover of theaccount serving the institutions which have completed their World Bankprojects, including the institutions of University Development Project II andProvincial Universities Project as envisaged in the agreements mentionedabove.

2.11 In general, the use of the maintenance account has replenished intimely fashion the spare parts and accessories for the credit-purchasedequipment, raised the utilization rate of the equipment and prolonged the lifeof the previously procured equipment. As a result, both the institutions andthe implementing agencies value highly the proposal and the implementation ofthe program which has basically met the objectives of the Account.

2.12 Civil Works. The total amount of actually completed civil worksexceeded the appraisal estimate, but progress of construction was uneven amongindividual institutions. Construction for the polytechnic component had beencompleted nearly twice as the original plan, while the TVUs just fairlyachieved their target envisaged at appraisal in general. The worst case isCRTVU that has not yet completed its main building. However, manyinstitutions, including CRTVU, had built or rented buildings as temporaryarrangement to start and facilitate project implementation and routineoperation. All civil works under the project were financed with domesticcounterpart funds, and many institutions would further construct necessarybuildings after project completion.

2.13 Eguipment Procurement. Equipment procurement, mainly throughinternational competitive bidding (ICB), was contracted with the InternationalTendering Company (ITC) of the China National Technical Import and ExportCorporation (CNTIEC) by the Foreign Investment and Loan Office (FILO) of SEdM,and assisted by experienced specialists and faculties from some key projectuniversities. Procurement went quite smoothly. According to the results ofacceptance tests, about 96% of the ordered and received equipment were in goodor fair status at arrival, and over 83% were of advanced technical level.There are some general complaints and arguments against the computerspurchased for CRTVU and the PTVUs. Careful study of the question undertakenby FILO of SEdC reached a conclusion that selection of the types of computersthrough ICB in 1984 should not bear the blame for the current situation.Success of the Sichuan TVU and a few other TVUs in developing devices ofsoftware programs suitable to their use in administration as well as traininghad proved the resolution of the problem. The remaining question is todisseminate the devices. The other PTVUs may devise alternatives under theenlightenment from the forert ners; or otherwise, they should just followthem. Retaining the equipment unused is not a resolution. For CRTVU, themain point is in the procurement list, a fault in project design. The size ofthe computer for CRTVU was defined too large for the envisaged use. Thesolution to the problem is to replace it with an appropriate one, and transferit to an appropriate user.

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2.14 utilization of Equipment. The majority of the equipmentpurchased under the Project are in regular use. The computers purchased forCRTVU and PTVUs have not been fully utilized for reasons as described in theprevious paragraph. Some of the laboratory equipment have to be transferredelsewhere. This is not due to faulty procurement but a result of improperdesign. Some of the eq'tipment for certain polytechnic universities,particularly the sophisticated analytical instruments for chemistry orchemical engineering laboratories, have been only about half used, because thesubject envisaged has been dropped from the teaching program. As to the TVprogram production equipment, utilization rates at CRTVU are fairly high, andabout 50% of the equipment are in regular use at the PTVUs. About 30% areused up to 10 hours a week. In view of the complex nature of the case, it isdifficult to set a nationally uniform standard for evaluation of conditionsand this should be assessed in relation to the variation of conditions andpolicies for TVU education from time to time and across provinces. Ingeneral, however, the utilization rates have to be further raised.

2.15 Specialist Services. There is a difference of views in projectevaluation on the value of the visits and workshops by the foreign specialistsunder the Project. Some project institutions found some workshops or visitsof little or even no use to their staff, while the others have oppositecomments. Certain institutions, such as the Shaanxi TVU and the ShaanxiCollege of Industrial and Business Management, reported in writing that theworkshops are somewhat useless, but confirmed in queries that they are quiteuseful and welcomed. From the Borrower's perspective, the recommendation ofinvolving more Chinese specialists in the technical assistance programmes forfuture projects is valuable, and it should also be noted that negatingeverything of the visits and workshops is unfair. The specialists from NHK ofJapan had collaborated with staff of CRTVU very successfully in producing acomplete set of software packages for TV training, which had proved veryeffective in seminars.

2.16 Evaluation and Planning. This component of the Project wasimplemented under rather difficult conditions, as no existing unit related tothe Project had previous experience of implementing such a programme. As thefirst phase of evaluation, MOE (later, SEdC) entrusted CRTVU and the newlyorganized Association of Chinese Polytechnic Universities with the task ofcarrying out tracer studies to the graduates of the TVUs and the polytechnicuniversities, respectively. Assisted by the IAP/CRC and some professionalforeign specialists, the studies were conducted smoothly and successfully.These are the first of such experimental endeavour in education evaluation inChina. The studies not only were very helpful for evaluation of the impact ofthe Project, but also provided valuable experiences for the future educationalundertakings. In view of the complexity of the planning that is closelyrelated to the overall programme of the national plan of educationaldevelopment (and in turn to the plan of national economy and socialdevelopment), it should be carefully studied and coordinated by SEdC withcooperation of the related ministries of the central government. TheDepartment of Audio-visual Education, the Department of Vocational andTechnical Education and FILO of SEdC had been designated as responsible forthe component during the implementation period. The outcome of the component

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has been less encouraging as envisioned at appraisal even though it achievedsome initial progress.

2.17 Results of the Project. A brief comprehensive description of thegeneral achievements of the Project has been presented in Part I and Annex 1of this report. While recognizing it with pleasure, the Borrower has alsonoted the evidence of variances among the institutions and the differencesbetween a number of target indicators set at appraisal and the actual resultsof them at project completion. The former reflects the diverse background,including the quality of staff, among the provinces and institutions, and thelatter is due to various reasons. At the time of project appraisal, thereform of economy as well as education in China was .ust in the preliminarystage of development, with many policies and actions subject to adjustmentand perfecting through pilot programmes. Consequently, the newly establishededucation systems and project institutions were set up to adapt readily tochanging social, educational and economic requirements. Therefore,evaluations should stress the extent to which the institutions on the one handadapt to these changing needs and meet the project objectives on the other,rather than simply looking at the original indicators formulated eight yearsago. Besides, some of the indicators are difficult to quantify accurately, orto certain extent useless for evaluation of the project impact. The mostnotable achievements of the TVUs have been in serving a wider range and largernumber of students than envisaged at appraisal, and almost all the 17polytechnic universities deserve credit for setting new standards of quality,to be emulated by the polytechnic universities that were establishedafterwards. The project in general has successfully supported the newlyestablished polytechnic universities, which are different from conventionaluniversities and strengthened a countrywide TV education network, which isvery unique and could be the largest of its kind in the world. Assessing thesignificant impact of such a project in China is by no means confined to justthe scope of the project itself.

2.18 Project Sustainability. The significant development of thepolytechnic and the TVU education systems in the past decade strongly supportsthe prospective demand for them in the future. While the Government willfurther develop this kind of post-secondary education mainly on its ownefforts, any reasonable external assistance from abroad, especially that ofthe World Bank, will be welcomed. With respec.t to the relationship betweenthe central and the local governments, the previous experiences had provedthat coordinated decentralization of the management function is somewhat anappropriate way which should enhance the initiatives of the local governmentsand the institutions in the undertakings. The central government, however,should reserve the necessary right of decision of central policy matter,rea'llocation of available resources and provide guidelines and coordination ofactions, as granted by the Constitution and approved by the National People'sCongress. This should not cause inextricable contradictions in the futuredevelopment. The question would not be to what extent they "can" do, but towhat extent they "have to" do.

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C. Bank Performance

2.19 The Bank and its staff had played important roles in theconceptualization, identification and implementation of the Project,particularly the polytechnic component. They supported the concept ofestablishing a new type of post-secondary education sub-sector in China, andintroduced the experiences of similar institutions in foreign countries asthey understood, and helped to organize two teams of study tour to someindustrial countries. When the government proposed to include the TVUs intothe Project, the Bank quickly made positive response and sent theirspecialists of distance education to join the appraisal mission. These hadenriched the Chinese staff's understanding of the new education systems andreduced the difficulties in project preparation. Turning to the assessment ofBank's supervision during project implementation, there should be carefulattention to note that both Bank and Borrower might see things from differentperspectives. While recognizing that supervision might be a weakness of Bankperformance, the Borrower has to confirm with appreciation that thesupervision missions had made great contributicns to discovering some majorproblems that would have affected the progress of the Project, and had madegreat efforts to help bring about improvement of the situation throughadjustment of related aspects of the project, as mentioned in paragraphs 2.5,2.6 and 2.7 of this report. Furthermore, the possible reason for the weaknessof the project supervision appears to be the frequent replacement of themission members that prevented regular staff continuity in supervision andweakened the familiarity with the project. This might be a lesson that shouldbe learned.

D. Borrower Performance

2.20 As indicated in previous paragraphs, almost all participants ofthe Project lacked experience in dealing with both the new types of post-secondary education and World Bank-financed projects. During its life, theProject suffered from frequent changes of conditions and policies thataffected its evolution and implementation. Thanks to the diligence andefforts of the participants, a series of difficulties had been overcome andthe achievements of the Project as a whole had exceeded the expectationsenvisaged at appraisal. This also proved that the projecc and the new TVU andpolytechnic system were in general satisfactory to students and society, andhence were supported by them. The major shortcomings of the Project briefedin the previous paragraphs manifest in various extent the weakness in theBorrower's performance. They are delay of some civil works, under-utilizationof some facilities and equipment, shortfall in overseas fellowships, negativecomments of some institutions on the specialist visits and workshops,reallocation of credit funds, and problems in the evaluation and planningcomponent of the Project. The key problem appears to be the projectmanagement. The quality of management in most organizations and institutionswas recognized as too low at appraisal, especially in view of the newness ofthe TVU and the polytechnic systems. It had been set as one of the projectobjectives to help improve the quality of management through a series ofmeasures. The level of management in most institutions had been significantlyenhanced by the project, but still not to the extent envisaged at appraisal.

- 21 -

In order to sustain and enlarge the project impact, more attention should bepaid to further improvement of management as well as policy coordination.

- 22 -

PART 111. PROJE PROFILE

Table 1: Related IBRD Loans and IDA Credits

Loan/Credit Year ofProject Title Approval Purpose of Project Status Managed by:

Univ. Dov. ProJ. 1981 Mhe project sought to strengthea Cocpleted SEdC(Li 2021-CA, science engineering in Chinese 28 1987Cr 1167-G) leading Univer.tties. Objectives were

to increase the quality & quantity of8raduates t research, to Strengthen theplning I management capabilities 1 toprepare investments in the eoductionsector.

Agric. Educ. 8 1983 The project was designed to *ssist Completed 1988 ministry ofResearch agriculture higher education and Agriculture. Animal(Cr 1297-CEA) research in 11 agricultural colleg8. Jusbandry & PLshery

and 7 institutions.

Rural he-lth & 1984 The educational Component of this Completed 1989 Ministry qf PubiLcMedicl Edue. project wa designed to enhane the Health(Cr. 1472-C3A) quality of education 4 training.

Second Agricultural 1984 The project sought to Improve & assist CoMpleted 1991 Minlstry ofIduc. Project agriculture educatton ln 23 Agriculture, Animl(Lu 2444-CHA) agricultural ooll*ges, 12 agricultural Husbandry & Fishery

techniatl schools.

S2eond Untivrsity 1985 To iacrese China's high level of Completed 1989 SdCDev. Project technical & managerial through policy a(Cr 1551-CIA) institutional changes related to the

engineering and economicsiftn nceeducation subsector.

Provincial Univer- 1986 To expand enrollment & improve the Completed 1991 SdCatties Project quality & management of higher(Cr 1671-CIA) education programs In 60 provincial

Universities.

Gansu Provtncial 1988 It is part of a comprehensive plan to To be completed Censu ProvincialDev. Project attain universal nine-year basic in 1993 Coveraeent(Ln 2812-ChA, education and to improve the quality ofCr 1793-CIA) nsteruction tn prarY and lover

secondary schools in Gansu Prvince.

Teacher Training 1989 To promote universal basic educatton To be completed SEdCProject through the e*pension. and upgrading of in 1994(Cr 1908-CIA) in-service training for lower secondary

school teachers.

Textbook Dev. Proj. 1989 The project supports the textbooks To be copleted SdC(Cr 2006-CIA) upgrading program by tbe Chinese in 1995

GoverMent. Objectives are to improevthe educational quality of textbooks atall levels of schooling, to inoreasethe variety of available textbooks & toimprov the efficiency of textbookproduction.

- 23 -

Vocational & 1990 To improve the quality of technical & To be completed SEdCTechnical Educ. vocational training in China through in 1995Proj. (Cr 2114-CRA) supporting 59 secondary vlt schools in

10 provinces and 3 municipalitles.

Mediumi-SLzed Cities 1990 The project assists the Changzbou, To be completed Municipalitles ofDev. Project Luoyang and Shashi cities to improve in 1995 Changazhou. Luoyang(Ln 3286-CHA) overall and sector planning and and Shashi.

management, including education.

Key Studies Dev. 1991 The project supports the government's To be completed SEdCProj. (Cr 2210-CHA) plan to reform the management of in 1995

science & technology programs. Itconsists of support for research &graduate training in 133 State KeyLaboratories and Special Labsaffiliated with Universities and withChinese Academy of Sciences.

Education Dev. in 1992 The project supports three main goals To be completed SEdCPoor Provinces for the development of education in in 1996ProJ. relatively poor provinces - Shanxi,(Cr 2339-CiA) Shaanxi, Hubei, Hunan, Cuishou and

Yunnan.

- 24 -

Table 2: Project Timetable

Item Planned Date Revised Date Actual Date

Identification ^/

Preparation Mission 8/82 10-11/82 10-11/82

Appraisal Mission 1/83 - 01/83

Credit Negotiations 7/11-15/83 - 7/11-15/83

Board Approval 9/83 9/83

Credit Signature 10/83 10/83

Credit Effectiveness 1/84 , 1/84

Credit Closing 12/31/89 12/31/90 10/31/92

Project Completion 12/31/88 6/30/92 06/30/92

a/ There was no formal identification mission. Initial preparation workwas conducted during the appraisal and post-appraisal missions for theAgricultural Education and Research Project which were undertaken in10-11/81 and 3/82, respectively. An initiating project brief wasprepared in 2/82.

- 25 -

Table 3: Cumulative Estimated and Actual Disbursements(US$ million)

Bank FY 1984 1985 1986 1987 1988 1989 1990 1991 1992

Appraisal Estimate 4.4 12.9 21.4 42.6 63.8 85.0 -Actual 0.0 1.4 50.1 60.8 61.6 73.6 75.9 76.1 91.3Actual as % of Estimate - 11 234 143 97 87 89 90 107Date of FinalDisbursement 10/30/92

- 26 -

Table 4: Planned and Actual Completion Dates of Components

AppraisalProject ComDonents Estimate ̂/ Actual

Polytechnic System 12/31/88 6/30/90

Television University System 12/31/88 6/30/90

Evaluation and Planning 12/31/88 6/30/90

Equipment Maintenance Account A/ - 6/30/92

a/ Established in April 1990 with approval of the Executive Directors of theAssociation and amendment to the DCA.

- 27 -

Table-5: Project Costs(US$ million)

An,raisal Estimate ActualLocal Foreign Local Foreign

Category Costs Exchange Costs Total Costs Exc. Costs Total

Civil Works 48.2 0 48.2 87.8 0 87.8

Furniture 2.3 0 2.3 3.1 0 3.1

LaboratoryEquipment 33.8 13.7 47.5 11.6 28.9 40.5

ProductionEquipment 2.3 17.1 19.4 5.3 20.2 25.5

TranmissionsEquipment 6.7 7.2 13.9 2.8 8.5 11.3

Computers 0 5.4 5.4 2.7 9.0 11.7

AudiovisualEquipmentand Books 0.6 10.2 10.8 9.5 2.4 11.9

Specialists 0.4 1.1 1.5 0.1 2.3 2.4

Fellowships" 2.7 6.7 9.4 0.5 3.6 4.1

Evaluation,planning andpreparationof futureprojects 5.0 5.0

Contingencies 21.7 18.5 40.2 3.7 3.7

MaintenanceAccount 17.2 17.2

TOTAL 118.7 84.9 203.6 127.1 92.1 219

Comment: (a) Includes foreign exchange costs disbursed for preparation of futureprojects (study tours).

- 28 -

Table 6: Allocation of Credit Proceeds(in SDRs)

Original Revised ActualCategory Allocation Allocation Disbursements

(1) Equipment 59,100,000 60,100,000 57,787,536

(2) Equipment 13,000,000 13,369,756Maintenance Account

(3) Specialist servicesand study tours 5,500,000 2,100,000 2,071,849

(4) Overseasfellowships 9,600,000 2,800,000 2,776,714

(5) Books andinstructionalmaterials 1,900,000 1,600,000 1,630,715

(6) Initial deposit inspecial account toprefinance itemsunder Category (4)above 800,000 --- ---

(6) Unallocated 2,700,000 ---

Total 79,600,000 79,600,000 77,636,570

- 29 -

Table 7: Project Indicators A/

Appraisal ActualIndicators Target (as of end 1989)

Polytechnic SystemAll system enrollmentRegular students 35,000 26,293In-service training 10,000+ 18,303Total 45,000+ 44,596

Regular student first-yearenrollment as a % of urbanarea upper secondary school graduatesthe year before 5% n.a.

Fee as % of GNP per capita <8% n.a.Number of specialization perpolytechnic 6-12 7-47

Number of specialization withenrollment under 80 per yearof study None Some

Polytechnics with regular studentenrollment under 3,000 Few Some

Number of specializationswhich do not start studentgroups each school year None Some

Student enrollment per teacher 15 13Less than fully trained teachersNumber None Some

% ~~~~~~~~~~~~0%Number of fully trained technicians 1,600-2,000 1,046Number of trained administrators 250-300Academic, lab & library spaceper studentMostly academic programs 6-10 sq m n.a.Mostly technical programs 12-15 sq m n.a.

Ratio of site area to constructedarea 0.2-1.2 n.a.

% of experiments performed out oftotal required by curriculum 80-100% 81-100%

% of students in technical fieldsable to perform all experiments 90-100% 86-100%

% of teachers using audiovisual equipment 100% 15-100%Number of library titles per student 10 22-270Number of class periods per day 9-10Class periods per classroom per day 8-9

n.a. - not available

- 30 -

Tabl1 7: Project Indicators (cont'd.)

Appraisal ActualIndicators Target (as of end 1989)

TVU SystemSystem enrollmentFull-time 900,000 464,649Part-time 400,000 481,498 _/Total 1,300,000 946,147 /

% of full-time enrollmentdrawn from recent middleschool graduates 30-40% n.a.

Number of courses taught onlyby face-to-face method None Few

Number of courses developedby CRTVU:Science and engineering 60 n.a.Social science and humanities 110 n.a.

Number of courses developed byeach PTVU:Science and engineering 20 n.a.Social science and humanities 35 n.a.

Number of fields of studydeveloped by CRTVU:Science and engineering 10-12 n.a.Social science and humanities 11-12 n.a.

Number of programs producedannually by:CRTVU 700 2,000All major PTVUs 1,350 3,723All minor PTVUs 1,900 3,540

% of experiments performed outof total required by curriculum 70-90% 45-100%

% of students able to performexperiments 80-100% 70-100%

n.a. - not available

a/ Indicators were developed during appraisal. SEdC provided initial reporton indicators in June 1990.

- 31 -

Table 8: Project Study

Purpose asDefined at Impact of

Studies Appraisal Status Study

Tracer Study Monitor match Studies completed Introducedbetween graduates' for both TVU and methodology foremployment and polytechnic analysis in thisfield of study graduates area

- 32 -

Table 9: Status of Credit Covenants

Section Covenant Status

3.01 (b) The Borrower shall establish In compliance. A Polytechnicand thereafter maintain until Association, comprisingthe Closing Date, a representatives from projectPolytechnic Commission. institutions as well as other

polytechnics, has been formed.

4.01 (c) (ii) The Borrower shall have In compliance. Due 6 monthsaccounts audited each fiscal after end of FY; last receivedyear and furnished to 9/92 for FY91.association certified copy, assoon as available, but notlater than six months afterend of each such year.

4.03 (a) The Borrower shall, until Reports for 1988 received inDecember 30, 1990, monitor and 4/89; final report provided toevaluate the progress made by the Bank in 8/90.Project Institutions towardproject objectives in light ofproject indicators andtargets.

4.03 (b) The Borrower shall establish Units within SEdC (Bureaus ofand thereafter maintain until Technical/Vocational EducationDecember 31, 1990, a planning and Audio-Visual Education)and evaluation unit within have been designated to carryMOE* and a research and out the responsibilities.evaluation unit in the CRTVU. However, these units have had

relatively little directinvolvement in projectimplementation monitoring andevaluation.

4.03 (c) The Borrower shall cause: Mi) Studies successfullythe Project Polytechnics to completed.carry out annual surveys and(ii) the Project TVUs to carryout periodic sample surveys oftheir graduates.

* now the SEdC

- 33 -

TablegJ0: Staff Inputs by Stage of project Cycle(staff weeks)

Stage of Planned Revised FinalProject Cycle (HQ and Field)

Through Appraisal 51.7 51.7

Appraisal 29.8 29.8Board Approval

Board Approval 10.0 10.0Effectiveness

Supervision 96.0 A/ 98.0

TOTAL

a/ Estimated using standard coefficient of 12.0 staff weeks per fiscal yearfrom project effectiveness through expected completion date of 6/30/91.It was not uncommon, however, during the early 1980s to reach 20-25 staffweeks per year.

- 34 -

Table 11: Mission Data by Stages of Project

Stage of Staff Weeks PerformanceProject Month/ No. of Specification in RatingCycle Year Persons Represented a/ Field / Status P/

Preparation 10-11/82 9 (A, E, ET, GE, 36.0MMS, TEd,TEn) _/

Appraisal 1-2/83 5 (A, E, GE, GE,OA) 15.0

Post-Appraisal 4/83 2 (E, GE) _.

Total 53.0

G P M F

Supervision I 9-10/83 2 (E, GE) 1.0 1 1 1 1Supervision II 1/84 1 (MMS) 1.0 1 1 1 1Supervision III 8-9/84 3 (GE,GE,GE) 2.0 1 1 1 1Supervision IV 2-3/85 4 (E, GE, GE, TE) 4.0 n/a n/a n/a n/aSupervision V 4-5/85 1 (E) 1.0 1 1 1 1Supervision VI 10/85 1 (GE) .5 n/a n/a n/a n/aSupervision VII 3/86 2 (GE, TE) 3.0 1 1 1 1Supervision VIII 7/87 1 ( E ) 1.0 1 1 1 1Supervision IX 7/88 3 (E, GE, TE) 3.0 1 1 1 1Supervision X 4/89 2 (E, TE) 4.0

Total 18.0

PCR 3-4/90 3 (E, GE, OA) 4.5 2 1 1 1

a/ A - Architect; E - Economist; ET - Educational Technologist; GE - GeneralEducator; MMS - Mass Media Specialist; OA - Operations Assistant;TEd - Technical

b/ Data from supervision summaries and back-to-offfice reports.S/ G - General Status; P - Procurement; K - Management; F - Financial4/ Secretary

- 35 -

Annex 1Page 1 of 7

CHINA

POLYTECHNIC/TELEVISION UNIVERSITY PROJECT(Credit 1411-CHA)

Evaluation Renort of the International Advisory ganeland Chinese Review Commission

Executive Summary

1. In our opinion, based on the evidence available to us, the US$85million credit from the World Bank to the People's Republic of China fordeveloping the television universities (TVUs) and new polytechnics has had avery significant and beneficial impact.

2. It has stimulated investment of a further large sum, probablyexceeding RMB500 million, in local currency. Within the life of the project,benefits foreseen and unforeseen in 1983 have exceeded reasonableexpectations, and these benefits are likely to continue.

3. The TVUs make up a unique countrywide system in 28 provinces, witha national course production and examination-setting center in Beijing. Theybenefitted through: a) a large construction program which provided studios,office buildings, classrooms and laboratories; b) provision of a considerableamount of imported and domestic equipment, including transmitters, AVproduction and duplication equipment, computers for management and teaching,and laboratory equipment; c) increase in staff, and d) extensive training fortheir staff, in China and abroad. They have been expanded, and in mostrespects modernized as well.

4. The 17 polytechnics, new because they were among the first to beset up in China in the early 1980s, differ from conventional Chinese post-secondary vocational institutions because they are normally non-residential,charge tuition fees and do not guarantee jobs for their graduates. Theybenefitted in the same ways as the TVUs, except that money was not providedfor TV or radio program production, or for broadcast-related buildings andequipment.

5. We attempted to measure the impact of the credit on the TVUs. Weare clear that their achievements would have been far less without the loan,and can say with reasonable certainty that during the project (1983-89) theyhave produced:

* Over a million good quality adult graduates at the vocational collegediploma level.

36 -

Page 2 of 7

* Nearly another million adult certificate holders at the same level.

* Several tens of thousands of adult certificate holders at thevocational secondary level.

* About two million adult certificate holders who have followed acontinuing education course related to their jobs.

* Several million young people and adults who have learned from thebroadcasts and textbooks without being registered for courses ortaking examinations.

6. The impact of the credit on the 17 polytechnics is less dramatic,because they have much smaller student numbers, but no less significant. Theyhave improved, to a greater extent than have the TVUs, their management, theirfacilities and the quality of the courses and teaching they provide. Almostwithout exception, they are now models for other new polytechnics to emulate.During the project they have also produced:

* Tens of thousands of good quality graduates at the vocational collegediploma level.

* Thousands of adult certificate holders who have taken short in-service training courses.

* Tens of thousands of adult self-study students.

7. Our recommendations are aimed at further developing, improving andexpanding the TVUs and polytechnics, and at solving problems that prevent themfrom becoming fully modernized.

Recommendations: Television Universities

* To ensure a good working environment, TVUs should allocate or obtainfunds for, and undertake each year, regularly scheduled maintenanceof buildings, including studios, on the basis of detailed surveys ofwhat is required and under the supervision of managers with theauthority to control the work and train staff to do it.

* To improve efficiency and quality of program production, the CentralRadio and Television University (CRTVU) and any provincial TVUs(PTVUs) still designing studios should consider the full potential ofmodern production equipment paid for from loan funds, and modifytheir designs accordingly.

* To improve the effectiveness of its operations, CRTVU should completeas soon as possible its new headquarters, including new studios.

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Annex 1Page 3 of 7

* To avoid serious interruption of transmissions of TVU programs,provincial education commissions (PECs) should negotiate withprovincial governments and broadcasting authorities regarding supplyof spare parts and/or standby transmitters for channels serving TVUstudents.

* To increase-efficiency, the Bureau of Audio-Visual Education (BAVE)and PECs should take appropriate measures, with broadcastingauthorities (central, provincial and, if necessary, municipal), toobtain increased airtime for and distribution of TVU programs, withinnational guidelines, and according to an integrated strategy,developed by each PTVU, involving as appropriate use of satellites,terrestrial transmitters, microwave links and videocassettedistribution.

* To ensure availability and increase use of project equipment otherthan computers, TVUs should keep records of equipment use, breakdownsand repairs, and PECs should provide funds for repairs andreplacements, and for additional equipment needed, and should permitTVUs to exchange items not being used.

3 To speed up computerization for management, and assuming that SEdCcannot obtain the Unix operating system for Astras, TVUs not usingtheir Astra computers should dispose of them with the assistance ofPECs, and acquire suitable microcomputers instead.

e To improve use of Astra computers and microcomputers in TVUs thathave succeeded in operating them, SEdC should obtain the Unixoperating system for Astras and BAVE should encourage these TVUs toexchange software they have developed for management or teaching.

* To increase use of laboratory equipment supplied to it, CRTVU shouldselect items required for TV program production, and request theState Education Commission (SEdC) to transfer all the remainingequipment to other institutions able to use it well.

* To plan development of new courses aimed at meeting provincial needs,and to discuss revisions or dropping of existing courses, PTVUsshould set up, and hold regular meetings of, advisory committeesconsisting of representatives of industrial, commercial and otherenterprises, plus TVU administrative and teaching staff, andprofessional education experts.

* To enable PTVUs to exchange their courses more easily, CRTVU shouldhold computerized data, regularly updated with the help of the PTVUs,on all these courses, and should publish the list once a year,preferably during the annual competition for best audio-visualprograms.

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Annex 1

Page 4 of 7

* To ensure that proper records of student registrations of all kindsare maintained for policy and management purposes, CRTVU and allPTVUs should collaborate, under the guidance of BAVE, in completingurgently a nationally standardized system of student records based onthe same microcomputer hardware and software standards, and shouldmaintain this system with diligence and accuracy.

* To increase effectiveness of the tutorial system in TVU classes,branch-TVUs and work stations should increase the number of TVUgraduates they appoint as tutors.

* To improve teamwork in TVU studios and add to the professionalstanding of TV and radio program directors (bian dao), SEdC and TVUsshould recognize this category and title.

* To improve management of the TVUs, BAVE should organize in-serviceretraining for TVU managers, among them presidents, vice-presidents,deans and provincial and local officials responsible for TVUs, toinclude topics such as policy, planning, budgeting and computerizedmanagement systems.

* To foster individual staff development and encourage effective use ofinnovations, TVUs should plan, obtain funds for and carry out regularevaluation and in-service training, in China and/or overseas, for allcategories of their staff.

- To speed up modernization in China, and increase efficiency andeducational opportunity, BAVEs and PECs should authorize TVUs toincrease each year registrations of students in all groups theyserve.

* To speed up modernization in China, and increase efficiency andeducational oppcrtunity, BAVEs and PECs should authorize TVUs toincrease each year registrations of students in all groups theyserve.

* To ensure continued operation of imported TVU equipment, SEdC shouldestablish a revolving fund and a national center for spare parts andcomputer updates.

* To ensure that the nature of the TVUs is better understood andappreciated by officials at central, provincial and municipal levels,CRTVU should, under the guidance of BAVE, set up a unit with the taskof publishing and distributing to all concerned a regular newsletteror newssheet publicizing details of the system, including a standardlist of terms used.

- 39 -

Annex 1Page 5 of 7

* To increase cooperation between TVUs, BAVE and PEGs should supportand encourage the formation of a Television Universities'Association, with sub-groups for staff such as TV programmedirectors, computer managers, etc.

* To maximize use of resources provided by the World Bank credit, TVUsshould collaborate wherever possible with the polytechnics, by meanssuch as making available videos and other teaching material of use tothe polytechnics.

Recommendations: Polytechnics

* To ensure a good working environment polytechnics should allocate orobtain funds for, and undertake each year, regularly scheduledmaintenance of buildings, including s_cudios, on the basis of detailedsurveys of what is required and une r the supervision of managerswith the authority to control the iork and train jtaff to do it.

* To ensure availability and increase use of project equipment otherthan computers, polytechnics should keep records of equipment use,breakdowns and repairs, and PECs and/or municipal educationcommissions (MECs) that guide them should provide funds for repairsand replacements, and for additional equipment needed, and shouldpermit polytechnics to exchange items not being used.

* To ensure greater use of science laboratories, computer centers andlanguage laboratories in the mornings, polytechnics should makeopportunities available for students to do practical work throughoutthe teaching day.

* To increase use of Digital Equipment Corporation (DEC) computers andmicrocomputers, the Bureau of Vocational and Technical Education(BVTE) should encourage polytechnics to exchange software they havedeveloped for management and teaching.

* To increase access for teachers and students to books and otheritems, polytechnic librarians should hold most of these on openshelves.

* To increase collaboration between polytechnic librarians, they shouldparticipate in the newly-formed Polytechnic Librarians' Association.

* To ensure that polytechnics continue to be vocational-orientedinstitutions offering diplomas requiring 2-3 years of study, BVTEshould rule that where 4-year courses are introduced, these shouldnot exceed 10 percent of all courses offered.

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Annex 1Page 6 of 7

* To increase students' acquisition of practical skills, polytechnicsshould design "sandwich" courses that include attachment toappropriate industrial and commercial enterprises for up to a thirdof the time, preferably in the middle, and SEdC should re-emphasize,if necessary, through local government, the need for proper financialarrangements between polytechnics and enterprises agreeing to theseattachments, and for later allocation of graduates to take theattachments into account.

* To plan development of new courses aimed at meeting provincial needs,and to discuss revisions or dropping of existing courses,polytechnics should set up, and hold regular meetings of, advisorycommittees consisting of representatives of indu trial, commercial

and other enterprises, plus polytechnics' administrative and teachingstaff, and professional education experts.

* To improve the employability and adaptability of their graduates,polytechnics should help all students to acquire foreign language andself-study skills, and become computer literate.

* To increase efficiency and improve their teacher:student ratios,polytechnics should either hold teaching staff numbers at presentlevels and increase their numbers of student full-time equivalents(FTEs), for example, by increasing numbers of student taking in-service courses, or, if FTEs cannot be increased, avoid replacingteaching staff who leave or retire.

* To ensure that students receive up-to-date teaching, polytechnicsshould consider, and adopt where appropriate, new textbooks for alltheir courses, bearing in mind the needs of local enterprises andtheir technological development, and current practice.

* To improve management of the polytechnics, BVTE should organize in-service retraining for polytechnic managers, among them presidents,vice-presidents, deans and provincial and/or local officialsresponsible for polytechnics, to include topics such as policy,planning, budgeting and computerized management systems.

* To foster individual staff development and encourage effective use ofinnovations, polytechnics should plan, obtain funds for and carry outregular evaluation and in-service training, in China and/or overseas,for all categories for their staff.

* To speed up modernization in China and increase efficiency andeducational opportunity in polytechnics, the State, provincial andmunicipal education commissions that guide them should considerincreasing the numbers of students in existing polytechnics, ratherthan the creation of new ones.

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Annex 1Page 7 of 7

* To ensure continued operation of imported equipment in projectinstitutions, SEdC should establish a revolving fund and a nationalcenter for spare parts and computer updates.

* To increase collaboration among polytechnics, the State, provincialand municipal education commissions that guide them should encourageand support the polytechnics in participating in an association, withsub-groups for staff such as deans, departmental heads, computer andresearch personnel.

* To maximize use of resources provided by the World Bank credit,polytechnics should collaborate wherever possible with TVUs, by meanssuch as making available to TVUs their facilitie., includinglaboratories, libraries, language laboratories and computer centers.

- 42 -

Annex_2

CHIN

POLYTECHNIC TELEVISIQON UNIvESM PROJECT(Credit 1411-CHA)

Participants in Final Evaluation VisitMarch/Aril 1290

International Advisory Panel Chinese Review Commission

Prof. David Hawkridge, Chairperson Prof. Chen Jiaerh, ChairpersonMr. Shigenari Futagami, Vice Chairman Ms. Gao Liming, SecretaryDr. Normal Watson, Vice Chairman

British Council Statg Education Cgmmission

Mr. Sandy Edington, Media Advisor Mr. Zhu Guozhang, Advisor, SEdCDr. Julian Edwards, Technical Mr. Wang Yuanren, Deputy Director

Education Advisor Foreign Investment & Loan OfficerMr. Leslie Jeary, Project Officer Mr. Fan Longxian, Chief, Project

Division, FILOMr. Ye Zhongshan, Official, Technical

Assistance Division, FILO

World Bank

Ms. Terrice Bassler, Operations AnalystMs. Himelda Martinez, Senior Education Specialist