Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 6933z-JM

STAFF APPRAISAL REPORT

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

December 1, 1987

Human Resources DivisionCountry Department IIILatin America and Caribbean Regional Office

This document has a restricted distibution 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

Currency Unit Jamaican Dollar (J$)J$1.00 = US$0.1818US$1.00 = J$5.50

ABBREVIATIONS

ARI' Administrative Reform ProgramCAST College of Arts, Science and TechnologyCXC Caribbean Examination CouncilEDCC Estate Development CommissionGOJ Government of JamaicaHEART Humar. Employment and Resource Training TrustIDB Inter-American Development BankOAS Organization of American StatesMOE Ministry of EducationPCR Project Completion ReportPIOJ Planning Institute of JamaicaPIU Project Implementation UnitSLB Students' Loan BureauSLF Students' Loan FundUNDP United Nations Development ProgramUNESCO United Nations, Eduicational, Scientific and Cultural

OrganizationUSAID United States Agency for International DevelopmentUWI University of the West indies

FISCAL YEAR

April 1 - March 31

SCHOOL YEAR

September 1 - June 30

FOR OFFCL USE ONLYJAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

BASIC DATA ... c.***¢*.***..................**.....**..... i

LOAN AND PROJECT SUMMARY ......... .............. it

I. THE EDUCATION SECTOR ... ................ 1

The Education Sector - An Overview ..............., ......... 1Selected Issues in Education .............................. 1Educational Financing ..................................... 4The Government's Objectives and Policies in the Sector .... 5Bank Strategy and Past Assistance to the Sector ........... 7

II. THE PROJECT ..................... ........................ 8

Background ................................................ a

Project Objectives and Scope .......... .................. 8Rationale for Bank Involvement ................ ........... 9Project Components ............................. ,........ 9

Upgrading and Consolidation of All-age Schools ........ 9Studies ........*........................................ 10In-service Teacher and Staff Training ................. . 11The Student Loan Program ......... . . ................................ . 11

Project Costs and Financing ......... .. ................................ . 13Project Implementation ...................... -............. 14Procurement ................................. 15Disbursement .. ****...................................... 15Accounting, Auditing, and Evaluation ..... ................. 16Project Benefits and Risks ................................ 16

III. AGREEMENTS REACHED AND RECOMMENDATIONS ...... .............. 17

ANNEXES

ANNEX It COMPARATIVE EDUCATION INDICATORSANNEX II: GOVERNMENT EXPENDITURE ON EDUCATION, PY 1986-87ANNEX IIIs STUDENTS' LOAN BUREAU

This report is based on the findings of an appraisal mission in December1985 consisting of Messrs. A. Cespedes (mission leader), J. St. Germain andB. Dahlborg, and post-appraisal by Messrs. D. Holsinger (mission leader),W. Hobbs and B. Jump (consultants), March and July 1987.

This document ha a rstficted distribution and may be used by rcpients onl in th, perfonnanceof their oMcial duties. Its contents may not otherwise be diclosed without World lank authordion.

Table of Contents (Continued)

ANNEX IVs LOAN REPAYMENT COLLECTION SCHEDULEANNEX V: COLLECTION STRATEGIESANNEX VI: ALL AGE SCHOOLSs PHYSICAL FACILITIESANNEX VIlt STUDIES TO BE FINANCED UNDER THE PROJECTANNEX VIIIs INSERVICE TRAINING PROGRAMANNEX IX: TECHNICAL ASSISTANCE AND FELLOWSHIPSANNEX Xs COMPUTING EQUIPMENT REQUJIREMENTSANNEX XI: SUMMARY OF PROJECT COSTSANNEX XII: FINANCING OF PROJECTS COSTS AND DISBURSEMENT SCHEDULEANNEX XIIIs PROJECT ORGANIZATIONANNEX XIV: IMPLEMENTATION SCHEDULEANNEX XV: PROCUREMENT ARRANGEMENTSANNEX XVI: LIMITS ON TYPE OF PROCUREMENTANNEX XVII: AUDITING EXPERIENCE UNDER LOAN 2070-JMANNEX XVIIIt MONITORING INDICATORSANNEX XIX: COMPOSITION OF COMMITTEESANNEX XXs SELECTED DOCUMENTS IN PROJECT FILE

MAP IBRD 20446

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JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

BASIC DATA SHEET

A. GENERAL COUNTRY DATA: Data Year

1. Population Estimate (Million) 2.2 19842. Population Projection (Million) 2.7 20003. GNP Per Capita (US$) 940 19854. Average Annual GNP Growth Rate (X) -0.4 1984. Urban Population as Z of Total 53 1984

6. Literacy Rate (X) 90 19847. Area ('000 Sq. Km2) 11 19868. Population Density (Per Km2 of Agricultural Land) 200 1985

B. EDUCATION DATA:

1. Preschool Enrollment Rate (2) 25 19852. Primary Education Enrollment Rate (Z) 98 19853. Secondary Education Enrollment Rate (Z) 81 19854. Higher Education Enrollment Rate (Z) 8 19855. Public Education Expenditures as Share of

Total Fiscal Expenditures (Z) 11 19866. Preprimary and Primary Expenditures to

Total Education Expenditures (X) 34 19867. Secondary Expenditure to Total Education

Expenditures (Z) 7 19868. Higher Education Expenditure to Total

Education Expenditures (2) 15 1986

SOURCE: World Development Report, 1986Economic Social Survey of Jamaica, 1986Mission Estimates

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'7CIII

JAMAICA

EDUCATION PROGRAM PREPARATION AND STODWNT LOAN PROJECT

LOAN AND PROJECT SUMMARY

Borrowers Government of Jamaica

Beneficiatiess Ministry of Education (MOE) and the Students' LoanBureau (SLB). The Borrower would transfer aboutUS$2.6 million of the Bank loan proceeds to the SLBas a grant, enabling the SLB to extend loans toqualified students at institutions of highereducation.

Amount: US$8.3 million equivalent

Temst Repayment in 17 years, including a four-year graceperiod, at the Bank's standard variable interestrate.

Project Objectivesand DescriPtions The project wills (i) assist the Government to

prepare and evaluate options for a basic educationrehabilitation and development program, withparticular emphasis on grades 7-9, adapted to thecountry's educational, economic, and budgetrealities; and (ii) strengthen the Goverrument'sstudent loan program for nigher education.

The project includes: (a) a comprehensive technicalassistance package, including about 164 staff-monthsof specialist services and about 191 staff-months offellowships to strengthen selected units of the MOEand to support studies underpinning program andinstitutional development in the areas of secondaryschool reform, student loans, school administration,community participation, particularly in schoolmaintenance, and reduction of unit costs in publiceducation; (b) in-service training of teachers,supervisors, and MOE management staff; (c) a pilotproject for consolidation of about 20 small all-ageschools (grades 1-9) into larger, more cost-efficientunits (together with the provision of 40 newclassrooms) and incorporation of students in grades7-9 in those schools into the regular system;(d) funds to expand the students' loan program forhigher education to enable low- and middle-incomestudents to continue with their education, togetherwith necessary institutional development includingstrengthening of the management of the SLB; and(e) computing equipment for the SLB and the MOEPlanning Office.

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Benefitsand Risks: (i) The proposed project would assist the Government to

design an education rehabilitation and developmentprogram, aimed primarily at the first nine grades,especially grades 7 through 9, in order to improvethe system's performance and prodmctivity, withoutmajor increases in budgetary allocations. It wouldalso help increase the MOE's planning, managerial,and operational capabilities. In addition,assistance for strengthening the student loan programwould support the Government's plans to increase costrecovery and improve equity in higher education.

(ii) The essential risk is that the strategy to beembodied in the work program prepared under theproject may not be adopted, and that the strategy forstudent loan repayment may not be enforced. Theproject has been realistically designed to minimizeth>ese risks. The Government has a strong commitmentto introduce improvements in the sector. The projectis part of the medium-term development strategyagreed with the Bank and the pilot demonstration andstudies should assist the Government to prepare ahigh qualitv education investment program to befinanced from both domestic and internationalsources. In addition, project covenants and progressindicators have been designed to give signals in caseprogram objectives and government actions diverge,and an active supervision plan will be followed.

Project Costs by Category:CUS$ Million Equivalent1

Local Foreign Total1. Tec)mical AssistancelStudies

(i) Foreign Consultants 0.1 0.7 0.8(ii) Local Consultants 0.2 0.1 0.3(iii) Fellowships 0.0 0.6 0.6

2. In-service Staff Trainain 0.1 0.0 0.1

3. School Construction and Renovationt

(i) New construction 1.9 1.3 3.2(ii) Renovation 0.4 0.2 0.6

4. Furniture and Equipment

li) Furniture and Equipment 0.1 0.2 0.3(ii) Computing Equipment 0.0 0.1 0.1

5. Students' Loan Program EzUansion 3.5 0.0 3.5

Total Base Cost 6.3 3.2 9.5

Physical Contingencies 0.3 0.3 0.6

Subtotal 6.6 3.5 10.1

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Proiect Costs a Categor:s (continued)

US$ Million EquivalentlLocal Foreign Total

Price Contingencies 0.5 0.5 1.0

Total Project Cost 7.0 4.1 11.1

1/ Net of import duties and taxes which are negligible.

US$ Million EquivalentFinancing Plant Local Foreign Total X

Bank 4.2 4.1 8.3 752Government 2.8 0.0 2.8 252

Total 7.0 4.1 11.1 1002

US$ Million EquivalentDisbursement Pl Batak FYs FY88 FY89 FY90 FY91

Annual 1.6 3.1 2.8 0.8Cumulative 1.6 4.7 7.5 8.3

Economic Rateof Return: Not applicable

Map:- IBRD 20446

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JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STAFF APPRAISAL REPORT

I. THE EDUCATION SECTOR

The Education System - An Overview

1.1 Jamaica possesses a broadly based public education system. Thenine-year basic education program comprises over kalf-a-million students,taught by 14,000 teachers in 900 schools (1983-84). Private insLitutionsfigure only marginally in the formal sector at all levels. Education isfree and compulsory up to 11 years of age. Because of this and anautomatic promotion policy, access and retention ratios are high.Enrollment rates for females are about equal to those of males. Netenrollments in primary education (grades 1-6) and in lower secondaryeducation (grades 7-9) are currently 97Z and 921, respectively, of thecorresponding age groups. Two-thirds of the students enrolled in basiceducation (grades 1-9) are at the primary level (347,000 students), and therest (16X,000 students) are at the lower secondary level. Studentsenrolled at the latter level are separated into two groupst (i) thoseattending the substandard "all-age' schools, where the nine grades arecombined, and who, as they leave school, generally become part of theunskilled labor force; and (ii) those in the junior cycle (grades 7-9) ofthe regular secondary school system (grades 7-11/13), who receive higherquality education in more adequate facilities. Higher education isprovided in the University of the West Indies (UWI), the College of Arts,Sciences and Technology (CAST), and in several other colleges, includingteachers' colleges. These institutions enrolled about 102 of the relevantage group in 1984.

Selected Issues in Education

1.2 Basic Education. High enrollment rates at the basic educationlevel have been maintained in substantial measure at the expense of inputsneeded to improve the quality of the system (i.e., educational research,curriculum development, textbooks, in-service teacher training, studentevaluation, and school supervision) and to maintain existing infra-structure. Management deficiencies have adversely affected the system'sinternal efficiency and overall productivity. Furthermore, the Ministry ofEducation (MOE) has not escaped the Jamaican Government's financiallimitations, the severity of which has increased sharply in recent years.In view of the declining resource base, the MOE must make changes in itscurrent policies that will increase efficiency in order to attaineducational objectives within the limits set by financial resources.

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1.3 Poor quality and basic inequities in the system are the mainissues wlich require attention by the MOE. These problems are reflectedin: (i) low student achievement levels; (ii) iniadequate and deterioratingphysical facilities; (iii) low effectiveness of education administration,planning, and financial management; and (iv) shortage of resources.

1.4 Low Student Achievement. Although there are no systematic testdata concerning student achievement in Jamaica, the MOE estimates thatabout half of those who finish the nine-year basic education cycle in theall-age schools (para. 1.1) fail to acquire fundamental literacy andnumeracy, and virtually all (about 70,000 currently) are poorly educated.This situation is attributed by the MOE staff to interrelated deficienciesin at least three areas: (a) curriculum; (b) the examination system; and(c) a lack of systematic in-service teacher training.

1.5 Curricula. Curriculum improvements made in the 1970s and early1980s have concentrated on the production and distribution of syllabi forgrades 1-6. However, the basic education curriculum for grades 7-9 alsoneeds improvements, in particular for the all-age schools. At present, thesystem is polarized: secondary schools catering to the majority of grade7-9 students have a curriculum focused on an elite group of students aimingto continue into university, while the needs of those for whom basiceducation is terminal are largely neglected. For the latter group ofstudents (primarily those in all-age schools), the curriculum isinadequate, representing in effect a remedial primary education dispensedby poorly trained and motivated teachetvs. This problem is compounded bydeficiencies in textbook production and distribution, although recentprovision of textbooks to schools under bilateral agency financing hassomewhat reduced the size of the rroblem.

1.6 Examinations. The examination system, despite recent improve-ments requires further changes. Jamaican education has benefitted fromthe establishment of the Caribbean Examination Council (CXC), the agencyresponsible for replacing foreign examinations in the Caribbean withregionally specific examinations. But the system remains deficient in thefollowing respects: (a) various types of examinations are given atdifferent levels, resulting in a lack of uniform standards; (b) externalexaminations are aimed only at selecting students for higher educationstudies, neglecting the job-seekers; and (c) the new CXC does notadequately cover the common core subjects now being planned for inclusionin the basic education curriculum.

1.7 In-Service Teacher Training. The absence of an effectiveprogram for in-service teacher training adversely affects the entiresystem. Support to teachers in instructional and other pedagogical methodsis weak because of the inadequate number of school supervisors. Anincrease in the numbers of supervisors cannot take place under presentbudgetary constraints, so alternative solutions need to be devised. Thereis, within the MOE, no unit in charge of planning, coordinating, andimplementing a comprehensive teacher training program which utilizes, in acoordinated fashion, the existing teacher training colleges for in-servicetraining purposes. Teachers who have been employed for more than fiveyears need to have their knowledge and skills updated and be made aware ofcurrent trends and new technologies in education.

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1.8 Inadequate an' Deteriorating Physical Facilities. Despite effortsmade over the last two decades and supported by the Bank (Loans 468-JM and727-JM) and other agencies (USAID and IDB), a significant proportion of thestock of physical facilities is still inadequate, and in need of expansionand upgrading. More importantly, maintenance of facilities is poor, andfurniture is seldom repaired. One cause of this situation is the low levelof community participation in school affairs and the corresponding lack ofmobilization of community support to help maintain school facilities andproperty.

1.9 Low Effectiveness of Education Administration and Management. Thebasic education system is currently managed at two leve.ls: at the natioviallevel, by the MOE, and at the local level, by school boards. At thenational level, there is inadequate coordination amonag the various units ofthe MOE, and between the MOE and other ministries and agencies thatimplement training programs (i.e., the Ministries of Labor, Youth andCommunity Development, and HEART).1 In additior., key functions, such aseducational planning, educational research, andi school administration, needstrengthening. At the local level, the principal need is to review andcorrect deficiencies in the school board system (e.g., in the management ofgrant funds allocated by the MOE). Because of budgetary constraints, inJuly 1985, the MOE closed four regional education units which had somelimited intermediary administrative functions at the regional level. Theremay be merit in considering reopening some of these units and reassessingtheir role, to allow the MOE to delegate at the regional level some of itsadministrative functions (e.g., selecting and appointing teachers,processing pay documentation, and supervising schools) in order to improvesystem efficiency; this, however, would need further investigation.

1.10 MOE staff need in-service training to upgrade their skills. Somesenior officers in the MOE have not had specific training in educationmanagement. Specialists in the main education technical areas are rare,and technical support is provided on an ad hoc basis (e.g., by temporarygroups or comr..ittees working on the preparation of limited in-serviceteacher training programs). Recruitment of qualified MOE staff, as well asteachers, is hampered by low salaries paid to public servants and by a lackof comprehensive personnel management policies extending over, inter alia,recruitment standards, induction tr, -ning, promotion rules, and salaryscales related to the level of training. Some of these issues (e.g.,compensation strategy) are being addressed by the Administrative Reformproject supported by the Bank (Loan 2473-JM). Further development of cost-effective approaches to in-service training is required both for MOE staffand teacbers (para. 1.7).

1/ HEART (the Human Employment and Resource Training Trust), which wasestablished in 1982 as the major entity for skills training, is financedby a 3% payroll levy on large- and medium-sized private firms (i.e.,those that have a payroll of more thaa about J$7,200 per month).

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Educational Financing

1.11 Shortage of Financia' Resources. In 1985/86, 7.6X of Jamaica'sGDP was devoted to education, one of .he highest percentages amongcountries in the region. However, as a result of Jamaica's severe economicdifficulties over the past few years, budgetary allocations to educationand training have become increasingly constrained. The share of the publicbudget (including debt service) devoted to education and training has been-7duced over the past five years, from about 202 to less than 12Z(Annex II). Even with the planned increase in public sector investment inAucation over the next three years, necessary qualitative improvements andexpansion of coverage in basic education will have to be obtained primarilyby more efficient management of available resources and to a lesser extentby increasing private resource inputs. This can be achieved by: (i)improving management by the MOE and the school boards; (ii) reducing schooladministrative costs through consolidation of small all-age schools (thosewith fewer than 200 student places) into more efficient school sizes (thosewith 400-600 student places); (iii) devising a viable school maintenancesystem drawing more on community support; and (iv) strengthening cost-recovery measures, especially in higher education. Improvements in theMOE's financial management are being introduced under the Bank-assistedSecond Technical Assistance Project of 1985 (Loan 2507-JM). Savings inschool administration are to be achieved through: (i) consolidation ofsmall all-age schools; and (ii) the formation of local community groups toprovide support for school maintenance. A unit cost study would shed lighton the scope for cost savings through reduction or elimination of varioussubsidies. In addition, a study is needed on the potential scope forvarious cost-recovery measures and their implications for equity,efficiency and future operations of the student loan program.

1.12 Increased Need for Student Loans (Annex III) and Improved LoanRecovery. As important steps to deal with its financial constraints, theGovernment, beginning with the 1986-87 academic year, eliminated boardinggrants for all tertiary institutions (formerly J$750 per student per year)and recently introduced fees to be paid by students who pursue highereducation. Jamaicans who attend the UWI campus in Jamaica now pay fees ofabout US$364.00 annually. (Proceeds of these fees assist the Government toshift a portion of the cost of operating its colleges and universities fromthe Public Treasury to students and their families who can afford to pay).Those unable to finance tuition and other costs from their own resourcesare eligible for loans which allow them to repay on a deferred basis uponcompletion of their studies. A limited number of academic scholarships arealso available on a competitive basis. Although the fees were to have beenintroduced gradually, with annual increments of lOX up to about one-thirdof the economic costs of a UWI education and maintained constant in realterms, political pressure has slowed thv. full introduction. At present,total charges to students represent about 15Z of recurrent costs, still oneof the highest shares among Commonwealth countries.

1.13 For more than a decade, Jamaica has operated an educational creditprogram. However, the program has a poor record of loan recovery andinsufficient capital to meet forecast demand. An expanded student loanprogram in Jamaica is central to gaining public acceptance of theGovernment's decisions to terminate boarding grants and to introduce fees.An expanded loan program would also help reduce the net burden to theGovernment of achieving and maintaining an appropriate level of higher

education. Eq,ually important, given likely financing needs, will be stepsto improve cotlections performance on outstanding as well as new loans.Loan amounts vary by institution attended and family income. Eligibilityis determined by need and satisfactory progress toward educationalobjectives. Repayment follows graduation and a three month grace period.Students have up to 9 years to repay (time varies according to loan amount)at a 12? nominal interest rate, increased from 6? in 1985. The PlanningInstitute o: Jamaica (PIOJ) estimates that nearly three-fourths of thestudents at UWI and the CAST (as opposed to about one-fourth until now) mayrequire student loans to cover at least part of their tuition and otherexpenses. The SLB is not in a position to respond to this sharplyincreased need for loans without a substantial increase in lendingresources and comprehensive institutional improvements. These wouldinclude a better socio-economic data base on the clientele who will berequesting loans, in light of the new cost-recovery measures introduced bythe Government (e.g., social origin of students, potential for paying fees,aid improved security arrangements to be introduced).

1.14 During its FY85-86 fiscal year (April 1, 1985-March 31, 1986), theSLB made 2,230 loans, totalling J$5.1 million (about US$0.9 millionequivalent): 1,018 of these loans were to students attending UWI, and 610to students of CAST; most of the remainder were to students of teachers'colleges. As of March 31, 1985, the SLB's loan portfolio, includingcapitalized interest of J$6.9 million, totalled J$36.4 million. At thesame date, principal and interest payments in arrears amounted to J$6.7million (or 22.7? of total principal outstanding, excluding capitalizedinterest). Of some 15,650 loans in the repayment stage, 6,423 accounts (or411) were in arrears. At the request of the Bank, a long-standing policypermitting the SLB to recover from the Government of Jamaica (GOJ) accountsin arrears for over 90 days was abolished at the end of 1986 in an attemptto increase the efficiency of the SLB.

1.15 In recent years, the SLB's ratio of collections to loans andinterest due has been runring at 40? or less. But with the reorganizationof SLB and the appointment in late 1986 of a new Executive Director, theGovernment has launched a far more vigorous and effective co1lectioneffort. SLB has introduced new procedural guidelines for loan appraisal,disbursement and collections. The new SLB management has pressed debtorsand their guarantors much more forcefully by making greater use of a widerange of aggressive collections strategies, -including legal remedies (e.g.court ordered payment, suit for breach of contract). The new admin-istrative team made improvements of the SLB's collection performance afirst priority, and accordingly implemented a set of procedures for thispurpose. Recent collections illustrate the fruits of this new emphasis.Collections throughout the first six months of 1987 averaged about 30tabove the corresponding level of the preceding year. This trend hascontinued through September 1987.

The Government's Oblectives and Policies in the Sector

1.16 The impact of public sector fiscal deficits in recent years hasbeen felt strongly in the education sector, with a decline in MOEexpenditures of 28t in real terms since FY83-84. Faced with thiscurtailment in budgetary allocations, the MOE took several important anddelicate steps to contain expenditures. In FY85-86, it closed one teacher

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training college, froze new admissions to all teacher training insti-tutions, eliminated grants for the purchase of school uniforms and forfinancial assistance to students, and cut expenditures for several non-formal education programs. In addition, the Government recently adopted apolicy to begin charging fees in public tertiary institutions (para. 1.12).Unfortunately, along with these essential reductions, certain quality-enhancing inputs (such as provision of textbooks) have also beendrastically curtailed by the MOE, which needs to find ways (and thecapacity) to reverse such measures. In light of the above constraints, theGovernment has reviewed its policy objectives in the sector, puttingpriority emphasis on: (a) improving the internal efficiency and quality ofbasic education; (b) increasing cost-effectiveness of the vocationaltraining system; and (c) improving effectiveness and efficiency ineducation management, together with 'ppropriate cost-recovery measures,particularly in higher education.

1.17 Social development emerged as a top government priority in 1987and a major initiative to this end has been taking shape over this year.While this initiative is not yet fully defined, the main thrusts can beoutlined, particularly in respect to education. The Government'sinitiative seeks major improvements at the pre-primary (3-6 year-olds),primary (7-12 year-olds) and lower secondary (13-15 year olds) levels. Anongoing program to assist early school leavers in securing productiveemployment (the HEART Program) would also be substantially expanded. Inrespect of primary and lower secondary -- the core of the education reformsbeing developed -- the central objective is to correct for the vastdifferences existing in the kind, quality, and duration of schoolingavailable to individuals, depending largely on the type of primary schoolattended in the early years. For those enrolled in substandard schools andprograms, major changes are also proposed in provision of textbooks,educational materials and rehabilitation of physical facilities.

1.18 The Government is also aware of the need for increased overallefficiency in the sector, and in particular, more effective loanadministration on the part of SLB. The Government wishes to strengthen theSLB to reduce its claims on fiscal resources. Towards this end, at therequest of the Bank, consultants made recommendations in 1986 to improveSLB organizational efficiency, management and economic performance. Theserecommendations are now being implemented (a new organizational structurewas introduced in September 1986; a computerization program has beendesigned); government subsidies are being phased out; and a range ofcollections strategies, including legislative, regulatory and legal action,are being planned and implemented.

1.19 The SLB has made a firm commitment to improve collections.Collections targets, to be adjusted periodically, have been introduced forthe first time (see Annex IV). Officers are ass'gned regions andcollections targets. Measures have also been taken under the name of"moral suasion". After collection attempts have proved unsuccessful, namesof delinquents are now published in the local newspapers, along with theircurrent employment situation. Credit bureaus are advised of borrowers'status. In addition, legal measures are being adopted to ensure thatbeneficiaries who are able to pay do so (Annex V).

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Bank Strategy and Past Assistance to the Sector

1.20 To achieve its educational objectives, the Government requestedBank assistance to help prepare and evaluate options for a sectorrehabilitation and development program aimed primarily at tasic educationand attuned to fiscal realities. In addition, Government has requestedassistance to strengthen the student loan program for higher education.

1.21 The Bank has supported three education projects in Jamaica: Loan468-JM (US$9.5 million, Project Completion Report of March 4, 1975); Loan727-JM (US$13.5 million, Project Completion Report of June 30, 1981); andLoan 2070-JM (US$6.8 million, extended to June 30, 1988). The first twoprojects provided assistance for the development of secondary education(junior and comprehensive schools) and tertiary education institutions(i.e., Teacher Training Colleges, Industrial Training Centers, CAST, andthe Jamaica School of Agriculture). Enrollments in these institutionseventually exceeded the initial plans by 15Z to 302. Both projectsencountered some implementation difficulties, related to occasionalshortages of counterpart funds and change of key personnel. According tothe Project Completion Report (PCR), Loan 727-JM experienced a 2002 timeoverrun, due to changes in Government and its educational policies, staffshortages in the Project Implementation Unit (PIU), staff turnover at theMOE, and lack of counterpart funds. Nevertheless, all project objectiveswere evaluated as fulfilled or partially met, and all physical componentswere completed by the Closing Date of the Loan. Loan 468-JM alsoencountered implementation difficulties, as well as a 54Z cost overrun.However, all new construction and facility expansion components wereundertaken as planned and were judged in the PCR to be of generallysatisfactory quality.

1.22 The Third Education Project, which is being implemented, continuessome of the actions initiated for CAST under the first two projects. Italso includes: (a) upgrading and expansion of a vocational teachertraining center; (b) technical assistance and funds for curriculum andlearning materials development in primary education; and (c) development ofskills training centers for out-of-school youth. The project, n)w morethan 902 completed, is expected to be fully implemented by June 1988.Extension of the original Closing Date by two years to June 1988 becamenecessary due to bankruptcy of two project building contractors, to achange of site of one training center and to some delay with equipmentprocurement. Apart from these delays, the project has been progresPingsatisfactorily. In addition to direct lending in the education se.tor,Bank projects in other sectors have supported educational development.Selected improvements in management are being achieved through theGovernment's Administrative Reform Program (ARP), assisted by the Bank anddirected at improving the effectiveness of the Jamaican civil service (Loan2423-JM, of 1984); and the Bank's Second Technical Assistance Project (Loan2507-JM, of 1985). The MOE is one of three ministries selected to undergostudy and possible restructuring under the ARP. The ARP will focus ondecentralizing of personnel functions, installing a performance budgetingsystem, and restructuring the Ministry along program management lines.Under the Second Technical Assistance Project, assistance will be extendedto the MOE to review the role of school boards in the educational system

and to improve further the Ministry's financial management. The proposedproject has been designed to complement the actions undertaken under ARPand the Second Technical Assistance Project.

1.23 In recognition that students, in particul.r those from lowerincome levels, require a solid basic education in order to take advantageof further educational or employment opportunities, and in view of thedeteriorating conditions in education during a difficult economic andfinancial period, the Bank's strategy seeks to develop cost-effectivemeasures for qualitative improvement of basic education. Future Bankstrategy in the sector will draw heavily on the results of the proposedproject in the context of the Government's broader strategy for reform andrehabilitation in the social sectors. In contribution to that initiative,potential areas for future Bank support are the further rationalization andconsolidation of secondary education (either as preparation for furthereducation or for entry to job training or employment opportunities);support for development of primary education in lower-income districts; andassistance for post-secondary education that would be financed by acombination of increased cost-recovery and targeted subsidies for capablestudents from poorer families. Bank operations will also be designed tocomplement assistance from other donor agencies currently focused in thefollowing areas: (a) IDB - improvement and expansion of primary education(US$45.8 million); (b) OAS - education guidance and related personneltraining (US$64.0 thousand); (c) USAID and German Government - primarytextbook project (US$8.3 million); (d) USAID - basic skills training forsecondary education (US$12.5 thousand); and (e) Italian Government -machine tool training (US$1.4 million).

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II. THE PROJECT

Background

2.1 The proposed project was identified by Bank staff who visitedJamaica in November 1984 and in April 1985; prepared by the Government withUNESCO assistance in June 1985; and appraised in July and, following severedeterioration of Jamaica's economic and financial situation, in December1985. The student loan component was appraised somewhat later, followingthe Government's request for support and the introduction of highereducation fees in 1986. Negotiations were held in Washington fromNovember 17 to November 19, 1987. The Jamaican delegation was headed byMr. H. W. Milner, Financial Secretary, Ministry of Finance.

Project Objectives and Scope

2.2 The Government's strategy during these last years has emphasizedeconomic and fiscal adjustment to restore the basis for a return tosustained economic growth. These adjustments have entailed social costs.The proposed project aims at alleviating the impact on lower-income groups,by adjusting overall education policies, with particular attention to theall-age schools attended mainly by low-income and rural pupils, and bytargetting student loans for higher education to the poorer segments of thepopulation. The fundamental purpose of the project is to assist theGovernment to prepare and evaluate options for an education rehabilitation

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and development program adapted to the country's educational, economic, andbudget realities. In the face of tight financial constraints, the projectis aimed primarily at the first nine grades, with major emphasis on grades7-9. The project will assist also in program and institutionaldevelopment, preparing the way for increased efficiency and cost-effectiveperformance of the education system. In addition, it has a student loancomponent designed to provide support for the Government's cost-recoverypolicy in post-secondary education.

2.3 To assist in the formulation of strategies to enhance costeffectiveness and to improve the quality of basic education, focussing inparticular on the severe problems of education in the all-age schools, theproject will finance: (i) experimentation with, and the testing on a pilotbasis of, alternatives for long-term physical facilities planning andconsolidation alternatives for all-age schools; and (ii) the execution ofbroader studies in the areas of school administration and schoolmairtenance, prospective reforms of secondary education, and unit costs ineducation. To improve the technical capacity within the MOE, so as to moreeffectively prepare, implement, and evaluate educational changes, theproject will finance a well-balanced training and fellowship program forresearch and planning staff, and provide computer support to the planningunit of the MOE. In addition, to assist the Government in its policydecisions concerning cost-recovery, the project will assist an expandedstudents' loan program, with institutional improvements to the SLB, inorder to ensure continued access to higher education for lower- and middle-income students.

Rationale for Bank Involvement

2.4 The World Bank has taken a lead role in assisting the Governmentof Jamaica to formulate and implement an economic adjustment and recoveryprogram. It should now help the Government mitigate the social cost ofadjustment and develop human resources as required to sustain Jamaica'smedium to long-term economic viability. The project would make animportant contribution by assisting in formulation of economically soundstrategies in the education sector.

Project Components

Upgrading and Consolidation of All-age Schools (Annex VI)

2.5. This component aims to implement on a pilot scale an alternativeto the uneconomic and socially inequitable situation of the immediate post-primary grades, 7-9. It will provide the basis for savings in schooladministration through experimentation with consolidation of all-ageschools. Popular support would also be increased by standardizing thesecondary curriculum, so that all children moving from primary schooling tograde 7 would receive roughly equivalent instruction in similar physicalsettings. An ancillary objective would be to reduce the importance of, andthe need for, the common, post-primary entrance examination. In likemanner, the need for the all-age school, as a receptacle for children whofail to secure one of the 9,000 seats in the 46 prestigious high schools,would be reduced. Several options permitting the Government to gain

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experience with alternative arrangements, prior to embarking uponislandwide reform, have been discussed with the MOE and would be supportedby the proposed project. These include upgrading and amalgamating existingsmall all-age schools; integrating children from all-age schools intoregular secondary schools; or creating separate lower secondary schools.These options would be implemented, tested, and evaluated in one Parish(St. Thomas) and in two schools in Kingston's suburbs. From thisexperience one option will be selected to serve as the basis for acountrywide program. The pilot program would require refurbishing (i.e.,painting, partitioning open spaces, repairing roofs and windows, and addingnew sanitary facilities) in about 15 of the 20 experimental schools.

2.6 To facilitate this pilot program for the all-age schools, theproject would also provida for the construction and equipping of about 40new classrooms (1,700 student places, including science facilities), thecost estimates and precise locations of which have been determined on thebasis of a school mapping exercise carried out by the Government, withUNDP/UNESCO/USAID financing. All new sites have been chosen and purchasedby the Government. Maintenance of school buildings will be providedthrough school maintenance committees which the Government agreed atnegotiations to establish by December 1988. These committees wouldconsist of representatives of parents, faculty, and the student body andthe school principal. Such committees would survey the status ofmaintenance of schools, and identify and support steps to carry out theadditional maintenance.

Studies (Annex VII)

2.7 This component would include studies and related technicalassistance for guiding future development of the education sector. Thestudies to be carried out include: (i) a study to complement the MOE studyon decentralization under the Administrative Reform Program (para. 1.23).This study would focus on personnel and organizational requirements forimproved school administration at the local level; in addition, it wouldexplore, in connection with the pilot program (para. 2.5), ways to improvemaintenance of the school network, focusing, inter alia, on achieving moreactive participation of local communities; (ii) a feasibility study of thesecondary school level reform, with emphasis on a unified lower cycle;(iii) a study to determine unit costs, components of costs, and financingof costs of secondary and higher education, both publicly and privatelyprovided; and (iv) a study to assess higher education students familyincomes and expenditures on instruction and boarding, to strengthen thebases for cost-recovery policies under the students' loan program, and todetermine, more accurately, the needs for increased student loans andappropriate loan terms. Technical assistance (Annex IX) financed under theproposed project would support 49 staff-months of specialist services toadvise and assist MOE staff in carrying out studies. In addition, a smallamount of specialist assistance would be provided to help analyze the databeing generated by the school mapping exercise carried out by the MOE withexternal financing from other sources (para. 2.6). Terms of reference forthe studies and consultants, including qualifications and employmentconditions, have been prepared by the MOE's planning unit and the SLB withthe cooperation of the Technical Assistance Division of the PlanningInstitute of Jamaica, and in accordance with the Bank's guidelines. Thesewere reviewed by the Bank at negotiations and are satisfactory.

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2.8 During negotiations, the Government provided assurance that itwould inform the Bank, by June 30, 1990, of the initial findings of thestudies under MOE, and present to the Bank for review, by December 31,1990, a basic education development plan and investment program which wouldtake into account the conclusions and alternatives proposed in the studies.The plan would cover. (i) Jamaica's current educational needs andpriorities at this level; (ii) alternative policy actions, and theirestimated costs, to meet such priority needs; and (iii) those policyactions preferred on the basis of cost-effectiveness and educationalcriteria. With respect to the study on student loans, the Government willpresent to the Bank a plan for implementation of the recommendations byJune 30, 1989.

In-service Teacher and Staff Traiiiing (Annex VIII)

2.9 Under the project, in-service teacher training would be developedfollowing a new model that comprises a set of short-term seminars (1-3 dayseach) to be organized over a two-year period. This scheme constitutes asubstantial change from the traditional extended courses (4-6 weeks each)occasionally organized during summer vacations. These courses have provedinefficient and unpopular. Under the new approach, used with good resultsin other countries, each seminar would give participants opportunities todevelop skills or teaching techniques in 3 to 4 areas, such as pedagogy,utilization of textbooks, student evaluation practices, and communityresources for school activities, including maintenance of the school plant.Prior to introducing the new courses, teacher trainers for the programwould be trained by the School of Education of the UWI. The proposedproject would finance trainees' allowances and training materials andequipment for about 450 staff (teachers, school principals and viceprincipals, supervisors, teacher trainers, and selected staff from theMOE). The proposed project would also finance the construction of onesmall in-service teacher training center (some 150 M2). It would be builtas an addition to an existing school located in an area where there are noteacher training installations, and would serve the training programdiscussed above.

2.10 The training program also includes some 191 staff-months offellowships for field studies and training of staff abroad (includingeducation and school management staff and other MOE officers) in criticalareas such as education planning, statistics and information management,evaluation and testing, teacher education, and financial management. ThePlanning Unit of the MOE would be further strengthened through theprovision of a microcomputer to start a data base information system foredueation statistics, together with training of operators in the use ofappropriate software. Procedures related to the use of fellowships bygovernment officers and teachers were reviewed at negotiations and areacceptable to the Bank.

The Student Loan Program

2.11 The number and size of student loans for higher education,especially at UWI and CAST, will have to be increased to assure continuedaccess to higher education by lower- and middle-income students. For thepurpose of the proposed project, the increase in the student loans

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requirement has been conservatively estimated at a total of about J$33million or US$6 million equivalent, with the following distributiontUS$0.55 million in 1986/87, US$2.00 million in 1987/88, and US$3.45 millionin 1988/89. (Detailed results of alternative projection scenarios arecontained in working papers in the Project file.) As it is difficult topredict accurately the impact on enrollments of the introduction of tuitionfees, the proposed project would provide US$3.5 million, covering theexpected needs of academic years 1986/87 and 1987/88, and about 30? of theneeds of academic year 1988/89. During this period, a study will beundertaken to more accurately assess student loan assistance requirementsand appropriate terms for beneficiaries (para. 2.7). The Government wouldtransfer to the SLB, as a grant, about US$2.6 million of proposed loanproceeds, to enable the SLB to expand its loan program.

2.12 Major institutional changes and improvements within the SLB (para.1.15) were achieved during the process of loan preparation. Duringnegotiations agreement was reached on implementing an Action Program withrespect to (a) on-lending terms and condition-; and (b) loan administrationand recovery. The major points of the agreement are presented in thefollowing two paragraphs.

2.13 On-Lending Terms and Conditions.

(a) Interest rates would, at a minimum, remain positive in realterms and would tend, over the long run, to cover the normalcosts of operations.

(b) The SLB would not modify the terms and conditions withoutprior consultations with the Bank.

(c) The SLB would provide to the Bank annually by September 30 ofeach year written estimates of the operating costs (capitaland recurrent) of the fund including the costs ofsubsidization, administration and non-performing loans.

(d) Based on (c) there would be an annual review no later thanNovember 30 of each year of eligibility criteria and interestrates.

2.14 Loan Administration and Recovery

(a) The SLB willt (i) retain the services of a collection agencyworking on a commission basis; and (ii) write off old/difficult accounts (i.e., more than five years of age sincebecoming due and for which the balance owed has not changedin the past five years) and remove these accounts and relatedinterest from the "receivables" category of SLB balancesheets.

(b) The Government will prepare alternative proposals tointroduce legislation or administrative actions which wouldassure that individuals wishing to emigrate have repaid theirstudent loan obligations or have made satisfactoryarrangements to do so.

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(c) The Government will prepare alternative proposals tointroduce legislation or adttinistrative action mandatingsalary deductions from loan beneficiaries in the civilservice and requiring non-government employers (or pr$"atebanks in the case of the self-employed) to withhold paymentsfrom salaries (or attach bank accounts) of individuals whorefuse to negotiate satisfactory repayment terms with theSLB.

(d) The Government will provide to the Bank not later thanApril 30, 1989 a comprehensive written program to improveloan recovery, including specific proposals contained in (a),(b), and (c) above and will promptly thereafter put thisprogram into effect.

The terms and conditions for students' loans, and the program for loanadministration and recovery for the first year, were reviewed by the Bankat negotiations and were found satisfactory.

Project Costs and Financing

2.15 The total cost of the proposed project (net of taxes) is estimatedat J$61.1 million, or about US$11.1 million equivalent, of which US$4.0million equivalent would be in foreign exchange (362). The baseline costsestimated at appraisal for goods and services are adjusted to July 1987prices. Cost estimates for civil works are based on costs provided by theMinistry of Construction on recent comparable structures. Equipment andfurniture costs are based on costs of new laboratories recently equipped.Costs of technical assistance are assessed on tne basis of actual costs ofsimilar projects financed by UNDP and the USAID. Physical contingencies(not including Students' Loan Funds) would amount to 10 of total basecost. Price contingencies (not including Students' Loan Funds) for localand foreign costs are based on estimated annual inflation rates for allcosts of 12 in FY88 through FY90 and 3.52 for FY91. These contingenciesare estimated in US dollars equivalent, on the assumption that variationsin the exchange rate would compensate for the difference between local andinternational rates of inflation. Given the emphasis in this project onprogram preparation and student loans -- technical assistance, studies,consolidation of schools and loans for selected students in highereducation -- incremental recurrent costs are not significant. The detailsregarding the costs, financing and disbursement of the proposed Bank loanare presented in Annexes VII - XII. In addition, a detailed preparationdocument exists in Project Files.

2.16 The proposed Bank loan of US$8.3 million would finance 752 oftotal project costs, or 1002 of foreign exchange costs and approximately612 of local costs. A 752/252 cost sharing between the Bank and Jamaica,including local cost financing by the Bank, is necessary considering thegeneral fiscal situation of the Jamaican Government. It would permitsuccessful implementation of the project, particularly of its pilotcomponents, and would enable the MOE to &iaintain adequate staffing of thekey units in charge of project implementation. Jamaican counterpartfunding requirements of the project would be met by the Government.

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Project Implementation

2.17 Responsibility for the coordination of overall projectimplementation would be vested in an existing project implementation unit(PIU) in the Projects, Construction and Maintenance Division in the MOE(Annex XIII). This Division has performed well for the Third Project,under implementation (Loan 2070-JM). The Division director would delegateto a full-time PIU coordinator full responsibility for the implementationof the project. The PIU coordinator would be assisted by a full-timeeducator, as well as other staff (Annex XIII). The PIU would be supportedby a technical level Advisory Committee, chaired by the Director ofProjects, MOE, and comprising, among others, one representative each fromthe Secondary Education Directorates, and the Evaluation and Planning Unitsof the MOE. The Advisory Committee would provide assistal2e as needed incarrying out all education aspects of the proposed project. An inter-agency Review Committee, chaired by the Permanent Secretary of Educationand with high-level representatives from the Ministry of Finance and thePlanning Institute of Jamaica, uill take lead responsibility for thepreparation of the Government's secondary school reform program and assurethat the recommendations stemming from the four project studies arereflected in that program (Annex XIX). The SLB, depending from theMinistry of Finance, would be primarily responsible for implementing theproject's student loan component. During negotiations agreement wasreached that the PIU Coordinator and Educator wc'ld be appointed and theAdvisory Committee and the Review Committee would be established by loaneffectiveness. Specialist services including those for studies, trainingand trainee placement will be managed directly by a contractor(s) (selectedfrom competitive offers in a manner agreeable to ihe Bank). The contractorwill report in all matters to the PIU coordinator,

2.18 The project's civil works component would be implemented mainly bythe Estate Development Commission (EDCO), a construction agency under theMinistry of Construction. Satisfactory contractual arrangements betweenthe MOE and EDCO for implementation of the physical aspects of the proposedproject have been approved in draft and submitted to the Minister ofEducation and the Attorney General for signing. At negotiations agreementwas reached that these contractual arrangements would be satisfactorilycompleted prior to loan effectiveness. EDCO would design and preparetender documents, advertise for and evaluate tenders, and superviseconstruction. EDCO, with MOE assistance, has already prepared a detailedinventory of facilities at each of the existing schools in the proposedproject. It has fully assessed their needs for expansion and/or renovationand for supplemental furniture and equipment. Realistic cost estimateshave been made on the above and for the designs, construction, furnishingand equipping of the proposed new classrooms. The new classrooms would beconstructed on the basis of standard classroom designs prepared by the MOE.Preparation of furniture and equipment lists and specifications would bethe responsibility of the MOE division concerned with these items. TheSchool Operations Division of the MOE would manage the execution of theproject's school administration study, and the Planning Unit of MOE theunit costs and, with SLB, the student loan studies.

2.19 The Bank loan proceeds pertaining to the project's student loancomponent would be transferred by the Government to the SLB as a grantunder a subsidiary agreement which would ensure both parties' compliance

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with that program's objectives. At negotiations it was agreed that theirsigning of an agreement satisfactory to the Bank would be a condition ofloan effectiveness. The proposed project is expected to be completed inabout three and one half years, by June 30, 1991 (Annex XIV).

Procurement

2.20 Procurement arrangements for the project are summarized in thetables presented as Annexes XV and XVI. Contracting of civil works(totalling about US$4.8 million) would be carried out under localcompetitive bidding procedures (LCB), which are acceptable to the Bank.Civil works contracts for the building of schools are not expected to be ofsufficient value to attract foreign contractors. Small school buildingsfor individual schools would be grouped into sufficiently large packages toassure economies of scale and attract better qualified contractors.Furniture, totalling only about US$200,000 and,procured over a period ofabout two years, would be procured through LCB procedures which areacceptable to the Bank. To the extent possible, all computer systems andother complex or large equipmcnt would be grouped for bulk procurement andwould be awarded on the basis of ICB in accordance with Bank guidelines.Contracts for other equipment, library books and instructional materials,not exceeding US$50,000 each would be procured through LCB procedures whichare acceptab,le to the Bank; such procurement would not in aggregate exceedUS$100,000. Miscellaneous items that cannot be grouped into packagesexceeding US$20,000 would be procured through local shopping and, inaggregate, would not exceed US$50,000. Prior Bank review would be requiredonly for contracts exceeding US$100,000. Other contracts and bid-avaluations would be subject to random ex post review by Bank staff duringsupervision missions. Contracts for technical a5sistance would be awardedin accordance with Bank guidelines.

Disbursement

2.21 The proposed loan is expected to be disbursed over 4 years. Thiswould be faster than the average for loans in the education sector (9years), as the proposed operation would be essentially a projectpreparation/technical assistance loan and its disbursement period would bein line with those of other technical assistance loans. The Bank loanwould financet (a) 402 of the costs of civil works; (b) 100Z of foreignexpenditures, and 802 of local expenditures, for furniture and equipment,including installation costs where applicable; (c) 100X of expenditures forconsultants' services and fellowships; and (d) 752 of local expendituresfor student loans. Individual disbursements with a value of up toUS$100,000 equivalent each against civil works, fellowships, student loansand contracts for furniture and equipment would be made on the basis ofstatements of expenditure. Related documents would be retained by the MOEand SLB and would be made available for Bank staff review. All otherexpenditures would be fully documented. A Special Account in US dollarswould be opened at the Bank of Jamaica, with an initial deposit ofUS$750,000. The account would co-er the disbursement needs forapproximately four months of project expenditures. Retroactive financingwill be permissible for approved expenditures for payments made afterSeptember 1, 1986 up to an amount not exceeding US$860,000.

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Accounting, Auditing, and Evaluation

2.22 Deficiencies have existed in the record keeping and internalauditing Rrocedures, both at the MOE and at the school board level. Suchdeficiencies were noted in the audit reports related to the Bank's ThirdEducation Project (Loan 2070-JM; a summary of the auditing results on thisloan is given in Annex XVII). There is need for the Government to improvethe MOE's record keeping and internal auditing procedures. Technicalassistance to improve the MOE's financial m.' gement has been included inthe Bank's Second Technical Assistance Project (Loan 2507-JM, para. 1.22).The Government has signed a contract with a management consulting firm(Touche Ross) in accordance with terms of reference previously approved bythe Bank.

2.23 Under the proposed project, the MOE and SLB would establish andmaintain consolidated Project Accounts as well as other records that arenecessary to account for the goods and services financed under the loan.Such accounts would be clearly identified within the MOE and SLB accountingsystems and be adequate to record, monitor and report on the financialtransactions derived from the utilization for the project of both localcontribution and Bank financing. These accounts would be audited annuallyby independent auditors, acceptable to the Bank, in accordance with theBank's auditing guidelines. The selection of an independent auditing firmwill be presented for the Bank's approval at least two months before theend of each fiscal year. The Special Account at the Bank of Jamaica andexpenditures against statements of expenditures would also be audited byindependent auditors acceptable to the Bank, in accordance withsatisfactory terms.of reference to be supplied by the Bank. The annualaudit reports would be provided to the Bank no later than six months afterclosure of the MOE's fiscal year. The PIU director would be responsiblefor preparing periodic (at six month intervals) progress reports to theBank, to provide information on project implementation, covering bothquantitative and qualitative aspects of the project. Annex XVIII includesa list of the main indicators for project monitoring and evaluation.

Projpct Benefits and Risks

2.24 The main component of the proposed project has been designed astechnical assistance to assist the Government to experiment with costeffective solutions for addressing current deficiencies in Tamaica'seducation system, particularly those affecting most directly basiceducation. The outcome of these studies and experimental actions supportedby the project will be a governmental educational development strategy andinvestment program, responsive to the current needs and consistent withavailable resources. In the process, the project would also assist inincreasing MOE's planning, operational and managerial capabilities. Theproposed student loan component would support the Government's objective toreduce subsidies to hi-her education while enabling low- and medium-incomestudents to continue their education.

2.25 There is the risk that the strategies for education developmentresulting from the project, and particularly the results of the studies,might not be integrated in the sectoral plan to be prepared by the

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Government. In addition, the cost-recovery measures introduced at thepost-secondary level might be suspended for political reasons, thusweakening the rationale for the part of the project assisting the SLB. Therisks o e minimized by the fact that the Government is highly committed toimproving the efficiency and productivity of its education system. Inaddition, the Bank's strategy in Jamaica puts a heavy emphasis oninstitutional development and improvement of public administration. Thisproject and the resulting plan for the education sector are an integralpart of this overall strategy agreed with the Government. Thus,substantial unilateral deviations from agreed policies are unlikely tooccur.

III. AGREEMENTS REACHED AND RECOMMENDATIONS

3.1 At negotiations, the Government and the Bank agreed on: (a) termsof reference for project studies and consultants (para. 2.7); (b) timingand implementation plan of the studies, including a basic educationdevelopment plan and investment program (para. 2.8); (c) procedures for theuse of fellowships (para. 2.10); and (d) on-lending terms and conditionsand the program for improving loan administration and recovery during thefirst year (para. 2.13).

3.2 During negotiations, the Government gave assurances on thefollowing matterss (a) establishment of school maintenanee committees byDecember 1988 (para. 2.6); (b) informing the Bank not later than June 30,1990 of the initial findings of studies and presenting to the Bank forreview not later than December 31, 1990 a basic education development planand investment program which would take into account the conclusions of thestudies (para. 2.8); (c) adherence to an Action Program with respect to on-lending terms and conditions for student loans and loan administration andrecovery under SLB (paras. 2.12-2.14); and (d) annual audits by independentauditors acceptable to the Bank, and timetable for submission of auditreports to the Bank, on the Special Account, project accounts andstatements of expenditures (para. 2.23).

3.3 The following will be conditions of loan effectiveness:

(a) the GOJ will set up the Advisory and Review Committees andappoint the PIU Coordinator and Educator (para. 2.17);

(b) the GOJ will have made satibfactory contractual arrangementsbetween the MOE and EDCO for implementation of the physicalaspects of the project (para. 2.18); and

(c) the GOJ will have signed an agreement satisfactory to the Bankbetween the Government and the SLB (para. 2.19).

3.4 Subject to the above conditions, the proposed project constitutesa suitable basis for a Bank loan in the amount of US$8.3 million equivalentto the Government of Jamaica, repayable in 17 years, including a four-yeargrace period, at the Bank's standard variable interest rate.

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- ISY - t2.60YeoLtvtA to S:4, SSO 4-1*y 3U-5* - - - 63 747 IOY - 12.62b1.8 6.1 S I t 4 it Ivy Iloy 4.Sb blo lsay 14tyCatLe 76 1 .&go 3.gby 13.0b - - - - I I"Igy 346Y - 55-y joby I I.qubyCDLMIA so 2 1, 18ob ).I 25.0 H zu to SO is 16 32 6.6 47 20 10.0207COSTA AtCA so 2.2b 1.8job 8.4 3t.1 4u 27 33 9u 93 I? 33 $.5 ly 4t) 27 14.00cum is 9.6 - 8.0 11.0 - - - 9t itibey " [$by - 96 libsy is ig.n2bywootchn up. so 5.1 1.030 2.9 13.0 39 21 22 68" so 31 59 3.2 94 30 33 16.00Num so 6,4b 1,110 61up 3b.7 45 It It el M - - 36 12.6 86 47 16 29.00aL UZVAM 77 4.4 640 3.4bY 23.1by 64 a 2� 62 82bxy 12 )o - 41 Ibbsy ilby 7.90byGuaCK" is b.8 1.010 illov 12.6b _ - - - 69bxy - 35" - 69 lsbxy I #by 5.30YGtYTANA 76 0.8 630 6.1by 1J.6by _ _ ._ - "buy - 32by - - "bxy -- 3.00byNUTI so S.ob 130 3.4v 7.941 65 9 6 20 5u 20 41 19.0 b2a 46 21 0.80Nompula 76 3-6 szo mby 14.1by b2s 150 196 60 sob" lo* 411;7 12.64 bp 21" 19 9.007JAWCA so 2.1 1.1to 6.5 13.7 37 43 20 90 96 9$ 40 2.3 95 St 22 SWOmmeo GU 65.5 1.880 4.2 0.08 46 39 15 92 IS 51 44 9.5 86 56 II 10.30PICAL40A 78 2.6b 610b 31obw 14.0b -- - - gob $Sbz 24 pb - 2#,bx job -?AXAM 76 1.8b j.550b 5.5b" 21.Sby 424 iSs 13 glb 95by - tsby 11.6 as$ soby 27by ZO.40byPARAWAT 79 3.0 1. 14') 114W 14.: 42 17 20 64 03 32 28 Mt 76 J2 la 0.70FM 60 16.6 1.000 3.6 14.3 5) 15 19 so 63 % 39 9.8 69 39 22 14.40Ymatow 4 TOO. 71 1.1. 1.910 4.6by e.aby 46 32 20 95 94 9t. 30 10.5? 49 62 24 -clumv lo 2.9 Z.SOU M 9.4b - - - 94 105ba - 24b - - 64big - 17.806YVBNKVAU 7$ 14.4 1.440 My jS.9b - - - 82 jobbe - 26 - - jobs ti 21-toy

- 19-ANNEX 1

MWAM"U MMrM UNCAMPage 2 of 2

gIPMI?= 9DUCAT 69N W81 39.S3MON

- ~~~~ 1 *ON -.ic .- = --M?mu.- amcm.- -to

(19") (199) SWJ IOu 1081 830018W? *01?1 SAIl FOB 0811M a COST1 9UM1) 143U (

-u l f so o 079733 1108 UIUSuI0OU libe 7186?7U61 961mB? 111.0 661 IS060036 680.3 8103

iso8i* SI 350.1b $80 3.1 9.) 70 24 6 lab IS 63 27 33.0 74 I1 36 5.70$*W 82~* 39.36 1.6566 ).?W 20.8 34 14 33 96 99 98 63 39.0 o8 86 is 33.80W""t& ~ 64 IS.A6 4.87ob 6.1 16.7 39" 63V iSv 706 978 9I 26 33.5' 69 72 33 4.00

P*IVA N.G. 83 3.0* 630 1.6 19.0 40 37 22 - 60 11* Ila 35.0 35 3)82 I7a 3.00MSLIFPIS 79 48.36 . 696 2,8' 34.0 64 36 - 756 84 61 is 7.3 OS Ss 36 33.00)

8380410 W0 3.4 4.430 2.7 6.7 39 40 36 63 92 03 it 8.6 951 33 8.005030033 IlL. 83 0.3b 640 CO4W t9.0b 43 34 l0 11 is s0 it 30.5 40 to is 3.10TSAIuJO 03 49.06 800b 3.4 20.3 59 36 t0 666 103 6 21 9.18 64 44 Is 4.00vufAlU 66 0.16 - 8.3 3MS 63 27 4 33 its 60 24 It.0 2$ 30 36 3.00

END= ~79 93.36 90 1,37 30.1*7 it I1 20 226 637 - SI 1.6 - 34 21 3.4)IWAII* 80 1.2 so 3.6 31.0 *- -- 1 33 - -- --USDIA 716194.6 210 2.97 9.90 ---- 36 758 43 - -38 - 93901143 83 15.06 I3S0b 1.4 I . - 39 10 - 18 - -23 3)2 1.304PAK381*X 83 $?.lb nob 2.0 7.U 38 20 24 22 s0 43 30 5.9 1 33 13 5.00

M AP oqym NT "'- 3. .7 47 19 Is 32 3367 69 376 - 62 8 2361 3.001Mau A ~79 38.3 I.T70 3.8 32.3 348 268 21' 15 9)1 41' 3 .5 5 9 2 .0

W." 8i 43,34 650' 4.6' 7.9 338 31* 26' 44 758 80' 364 9.98 83' 438 3* 7005m= 7 9.3 4.340 2.' 10.66 * 11 26 21 - 7629 6.' - I98 36 I78613*8 79 36.9 - S.7?4Y 34.141 - - - SO 303"X - 328 - - 4,aa 24a 4eey

1896 79 12.6 3.710 6.381 6.987… … … -- - 3007 - 38 - - 4$47 39 9.30'11151*80 as 3,46 4,480 6.3SY 31.987 - - 98 93 94 29 -98 83 3 4 33.00MO3 63 3.36 1.420b 4.9' 10.2 19 44 l8ob5 92e 8s 13 35.3 69. 38 8.10

ai.0m8 i9 2.3 -. -- 36.664y -- - -- 968 - 39 - - 449 - 27.80*10110:00 84 23.861 6706 6.0' 22.9 I8 45 3I9 3S $TO 9 33 1.1 3 4' 38 8.90k

Ohno Ss J.2b 6..4906 3.3 3 2. 1* -- - - 306? ?lox 61W1 90 lit 344 .70111003 66b 30.26 3.9306 4.6 II.$ SO lb6 S) so 321 70 t8 16.9 68 Ss 16 8.005033381 7s 33.1 2.100 3.967 6.21 la - 9 3o468 Il2l6 so9 6aba 22b 30.4061SPAIN 76 57.0 4.930 2.37 36.8 - "by 66 296b - 97by - 34.3067ST1L1A 16 8.6 3.310 4.47 30.3 39 2)5 26 5S 9763' 80 3S6 SS6 4167 236 13.60103051 79 64a 1.1)0 7.01 39.0 42 39 Is 636 300' 80 396 13.6 30 3338 30 6.0101338*5 8) S 3,230 3.3 36.2 Su) 22 24 73b 330 77 33 6.0 1) 36 I3 8.00NoUsimA.. 84 3b $slo6 7.97) 37.7 90 20 33t 23' 55 38 53 27.8 80 9 30 3.10YOU ,.D.&. ea 2.06 4356 7.6 9,7 63* 34' 64 53 63 34 is 22.0' 46 31 20 3.30)

8o 1.ec Weutniess 84 93 1046967 8t 92 66 91 61 15 93 66 s8

RAGO$ 0~~~~~~1.6- 13.7- (23- (8- (S- (8- (32- 112. (13- (3.4- 3O-~ (3- (8- (0.0)-30.03 U4. 3 943 66) 333 99) lit) 993 11) 6G.0 3003 643 48) 291.0)

quart;les: upper. 1.6 it.7 13 36 22 el 96 0 A3 30 e7 41 26 33.0Nedtao: 4.0 36.3 63 28 39 53 63 63 35 33 6$ 26 22 3.73a8S1S 3.0 33.0 38 2333 25 60 is 26 9 40 14 to 1.0

qu.ttle 0*,tettwo?. 3.3 5.4 6.5 7.5 6.5 NO. 39.0 33.1 7.0 5.6 33.5 16.1 I.$ 1.0

mbao: 4.4 37.0 46 28 38 53 76 59 36 36 42 33 23 6.9

Standard osvIattoO: 3.9 8.7 32 30 7 29 23 26 it 33 21 23 7 7.4

884(8.. 4.0 36.0 43 26 39 53 83 61 is 33 65 26 12 3.7-

83T103.8. 000110115:- DATUM NN 3)6A13A8L5 A * 0DATUM 74306 T0 88*5 11 8 * 9101t111 UII I3CA13011 (33D5) 0ILY

MAC6113)0 VtL 03 IIGLIGIILS 8 TU010346.11*C*58 13* BASS Y114* 7 WI AIM48 51811 (3,VZuIl. 0ILYDAM15 Q058I10h*L 9 *1138*5 va1ets V* * 753.1 181POD31i5, ONLY

* LOWIlS PAR-ll- 1) T 133981 9 NU83 I8SOLUU3I RATIo I t* 38133)05 U458-40 115068F MIS608 55113*8 RATto I * UNEUSCo 6031*

8Q00C116: Co1VM t a,d 2: Nor 14 IVAk 81188 Of 34V4t0Q*1 081Cr field S1.81068.Co1oBw 3 to 34:. World leak Sd.btgtoO 841101 8188108, Government1 eutle,

sa.dlor the Uliaeeo Statistical Yearbook.

CO.peratlve 34081*0 Data arm ..eful to the e,a1u*ti of.a VerIO oe @444811 SyStee.s and 80817s18 0t relative SC8*$ of.8uc*lomhl develoment tetwso 08voila" 100.t08s. W4.ot oCt Lb0 16 beats of the pr.aaot data. 1r089-6*ttqft1 t494i1e0rebeeld be ep9p8pChe WIth giret emotion. Data pCesmlOdi t.s 1above*0 table 688 beet. C01lected Jlaroly by bo*k elss44meIt", g0*8mt~8 ~08U#0 the r.I 104 are attif *stimat*e or daca f ro Iloesto. gfftorte hew; beet. a.s" t0 steadrdiaaAltiodtttooa ". 010. wile t.1. to check the accuracy at the date, Nevertheless etuch del are .t1113 epefeet t0several. repects a the Bank.4 to wrcki to twpo". thee progroostvely at. the 01000100 of itsae 07t.110.1 workt. Lt. LbeU". 0f th4Se det. the folloWlep qwelitfcaclooe should be k*tepk 30 0d:

(33 'Uw3to*lo a. 4eiloM it. the table lacludee al1 .4.1*1(00 084 178101. both formal and *80-formal.

(23 umary edwatlot. refers s0 edotiltot. at the fIrst level, and eecoodary' edocatloa Woes9 to aII 44.00t100at CMe Secondary level re*rdleae of 177 (e.g.. geoersl. teehalc.I, 41rftultoral).

(3) 'Ustaray ruate. (el. 6) are of t*o Obtained f roe 4aualry cet.buh.. 10 maoy cowactr(e they et* 0017*pptova*1103o am: 1 1t dou4btful that08 oanyuiorm def 1011401, of '11teraet' 648 been follaved Conssentltt1y.

(4) '0463t4 tipeO tuft to education- (cot.. A4*4 S) tefer, to allt cept*tl sa04 r*lurttt *.peodttutas deCotd toeducation by public 40d 9u41-publlC &aactee.

($3 *Iorollmet -atlas' (cote. 7, 32 and 343 reft to s46001 year aad are the prerwago of ellgIble ehLdreo&wxotll0 141-imat It. the approPelate .6003o, pubili aod private by Level. ro.Y are oftlen aob3ct to a 'Idamerrgie of err or 1. te dewelopi96 Counties ewiog to var4tlOo* It. the acCulr.y of 68.11 date (i.e.,48m,-SPeCltto popeletee .0A erol1amte). 84o.l..at ftguree freqoinly are hIghe 168 the Co ,abe ofstedms dte 08lly to Oechol. Ovees-agd students may be tocludad to th"e. figures and egat Letlter the rattoo..

- 20 -

ANNEX IIPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

GOVERNMENT EXPENDITURE ON EDUCATION, FY1985-87

Total Recurrent Capital(millions of J$)

PANEL A. ANOUNTS

Fiscal AggregatesTotal Expenditures 5,599 3,761 1,838Total Expenditure Net of Debt Service 3,299 2,293 936

EnXenditures by Education Category a/Central Administration 14.0 14.0 b/Curriculum Development 10.9 10.9Libraries 12.3 12.3 b/Projects, Construction, Maintenance 2.4 2.4 b/Student Support Services 4.6 4.6 b/Infant and Primary Education 219.2 192.4 26.8Secondary Education 234.1 229.3 4.8Tertiary and Continuing Education 47.8 47.6 0.2Higher Education 95.6 95.6 b/Capital Expenditures

not Elsewhere Accounted 2.7 - 2.7TOTAL: All Education Categories 643.6 609.1 34.5

PercentPANEL B. PRCENTAGE RATIOS

Total Education Expenditures to Total Fiscal Expenditures 11Infant and Primary to Total Education Expenditure 34Secondary to Total Education Expenditure 36Tertiary and Continuing to Total Education Expenditure 7Higher Education to Total Education Expenditure 15Total Recurrent Expenditure in Education toTotal Education Expenditure 95

a/ 'Revised budgetary estimates'b/ Capital expenditure for these categories are presumed to be

proportionately negligible and are accounted, in aggregate, as"Capital Expenditures not Elsewhere Accounted".

Sources Planning Institute of Jamaica, Economic and Social Survey ofJamaica 1986. Table 6.3, p. 6.4; Tables 18.1A and 18.1B, p. 18.2.

- 21 -

ANNEX IIIPage 1 of 5

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STUDENTS' LOAN BUREAU

1. Institutional Setup/Lending Program. The SLB was created as astatutory body in 1970, to provide financial assistance to Jamaicannationals of proven financial need, to enable them to pursue courses ofhigher education relevant to the country's manpower requirements. It hasabout 50 employees under an Executive Director and operates under generalpolicy guidance of a 9-11 member Students' Loan Council, appointed by theMinister of Finance. The Council members include those appointed from MOEand Ministry of Finance. The Government has recently restructured theSLB's management to prepare the ground for major institutional reform.

2. In 1971, shortly after SLB's creation, the Government contracted alow-interest loan of US$4.7 million from the Inter-American DevelopmentBank (IDB), the proceeds of which, together with the counterpartcontribution of US$3.3 million equivalent, were made available to the SLBto constitute the Students' Loan Fund (SLF). In 1976, a second loan ofUS$5.3 million was obtained by the Government from IDB and, together withthe Government's own counterpart contribution of US$3.3 million equivalent,was transferred to the SLB to replenish the SLF. While the intention wasfor the SLB to advance new loans to qualified students out of loanrepayments and interest receipts under previous loans, serious difficultyhas been encountered in maintaining SLF's revolving nature, owing to highincidence of delinquency among SLB's borrowers. The SLB's collectionratios on maturities due (including the amounts in arrears at the beginningof each year) were 35.4Z and 38.82 in FY84 and FY85, respectively. Toprotect the SLF's liquidity, the Government has from the outset committeditself to reimbursing to the SLB all loan installments overdue for morethan 90 days. In a move to put the SLB on an independent financialfooting, and at the request of the Bank, the GOJ has recently rescinded itspolicy of guaranteeing the SLB portfolio. Until recently, the Governmenthas also met the SLB's administrative expenses, but this policy, too, hasnow been rescinded. Under the new SLB management, the administrative costsare being shifted from Government to the fund itself. 'While the Governmentmade grant contributions to the SLB from time to time (the last contri-bution being in FY83), currently SLB depends on loan repayments andinterest receipts to extend new student loans -- quite inadequate to meetthe growing need.

3. Lending Procedures and Terms. The following criteria andprocedures constitute a part of the operational policy determined by theStudents' Loan Council which guides loans.

- 22 -

MANNEX IIIPage 2 of 5

(a) To be eligible for loans, students must attend CAST, a teacherscollege, the UWI campuses or such other institutions or programsapproved by the Students' Loan Council. Because of their highdefault rates on loan repayment, students attending forelgncolleges and universities are normally only supported by loans intheir final year.

(b) The amount of loan which students are eligible to receive dependson institutions attended and computed family 'net income', whichis family gross income adjusted for large expenses associated witheducation, home mortgage debt payments, etc. (Students fromfamilies with 'net income' in excess of Jamaican equivalent of$12,000 are ineligible for loans from the SLF). The maximum loanamount varies by institution attended, with students attending UWIbeing eligible to receive a maximum of J$2,500 or J$8,000(depending on the campus attended), CAST students being eligiblefor J$1,500, and teachers colleges students being eligible forJ$800 in FY85.

(C) The SLB has developed safeguards against borrowers' use of loanfunds for non-educational purposes (such as exchange ofinformation with institutions of higher education, certifications,etc.)

(d) Student loans by the SLB are repayable following a three monthgrace period after graduation. Students have up to nine years torepay, and the length of the repayment period varies with the sizeof the loan. Students who quit school prior to graduation arerequired to begin repayment immediately, and the SLB may requestimmediate repayment in full.

(e) The interest rate on student loans has been 62 since the inceptionof the SLF, but the council raised the rate to 122 beginning withloans to be issued in FY86. While the new rate is still below thecurrent market rates in Jamaica, it offers a positive rate ofinterest compared with the 1986-1987 domestic price increase of1 and estimated 1987-1988 rate of 7X.

- 23 -

ANNEX IIIPage 3 of 5

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

SUMMARIZED BALANCE SHEETS ASOF MARCH 31, 1984, 1985 AND 1986

(AMOUNTS IN J$' 000)

ASSETS 1984 1985 1986

CURRENT ASSETS

Cash & Bank Deposits 884 414 1,365Accounts Receivable 41 32 107Current Maturities 9,516 11,042 12,174

TOTAL CURRENT ASSETS 10,441 11,488 13,646

Loans and Capitalized Interest 33,838 1/ 36,385 1/ 37,722 1/Less:- Current maturities (9,516) (11,042) (12,174)- Arrearages over 90 days (5,219) (5,715) (5,939)

Net long-term loans and 19,103 19,628 19,609capitalized interest

Recoverable from GOJ 2/ 24,673 36,898 36,884

Student Insurance Fund Investments 245 362 422Fixed Assets 67 48 58

Subtotal 312 410 480

TOTAL ASSETS 54,529 68,424 70,619

1/ Including capitalized interest of J$6.3 million at end FP84, J$6.9million at end PY85, and J$7.3 million at end of FY86. Therefore,excluding capitalized interest, SLF's loan portfolio stood at J$30.4million for 1986.

2/ Policy of recoverables from GOJ is no longer in effect as of 1987.

- 24 -

ANNEX IIIPage 4 of 5

(AMOUNTS IN J$'000)

LIABILITIES AND SURPLUS 1984 1985 1986

CURRENT LIABILITIESDue to GOJ 1,278 2,906 4,759Accrued Interest 2,946 3,875 4,726Accounts Payable 106 134 133Current Maturities 1,405 2,066 2,050

SUB-TOTAL 5,735 8,981 11,668

Long-Term Debt (net ofcurrent maturities) 47,832 58,900 58,677

Students' Insurance Fund 273 388 513

Accumulated Surplus 689 155 (239)

TOTAL LIABILITIES AND SURPLUS 54,529 68,424 70,619

- 25 -

ANNEX IIIPage 5 of 5

SUMMARIZED INCOME STATEMENTSFOR YEARS ENDED MARCH 31, 1984 AND 1985

(AMOUNTS IN J$'000)

1984 1985 1986

INCOME

Interest on Student Loans 1,714 1,904 2,031

Investment Income 223 161 226

Others 7 13 1

TOTAL 1,944 2,078 2,258

EXPENDITURES

Financial Expenses 435 929 851Admuinistrative Expenses 1,530 1,683 1,840of which:

(personnel expenses) (1,097) (1,209) (1,364)

(others) (433) (474) (476)

TOTAL 1,965 2,612 2,691

DEFICIT (21) (534) (433)

- 26 -

ANNEX IVPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STUDENTS' LOAN BUREAU

LOAN REPAYMENT COLLECTION SCHEDULE

Percent* of Current Balance Due to beLoans Coming Due for Collected for Fiscal YearRepayment Durinat 1987 1988 1989 1990 1991

FY1987 85 86 88 89 90

FY1986 75 80 82 84 86

FY1985 70 75 77 79 81

FY1984 65 70 72 74 76

7Y1983 60 65 67 69 71

7Y1982 55 60 62 64 66

FY1981 50 55 57 59 61

1Y1980 45 50 52 54 56

* Percent refers to the number of individual loans that are

due to be repaid.

- 27 -

ANNEX VPage I of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STUDENTS' LOAN BUREAU

COLLECTIONS STRATEGIES

Applicable Recovery StrategyLoan Category -

LCP JPS* CJ IP* W* ACP* VISA* COL*(1) (2) (3) (4) (5) (6) (7) ~ 8)

Overdue Loans N** N Y Y*** y y N N

Coming Due Loans Y N Y Y Y Y Y N

New Loans Y Y Y Y Y Y Y Y

Key: Y s yes; N = ro

I LCP - Strictly followed sequence of loan collection procedures, drawing uponthe experience of private sctor collections professionals.

2 JPS - Use government national lnsurance number (NIS) to Identify debtors whoare employed In the Jamaican Public Service. Make continued omploymentcontingent upon an agreed repaymont schedule.

8 CJ - Obtain tsttutory authority for court Judgmont to enforce contract.

4 IP - Imposo an Interest penalty on debtors who make no effort to work out asuitable repaymet schodule. Alternatively or In addition makeavailable a reduced interest lncontive for early paymnt.

S W - Obtain statutory authorization requirlng employers to withhold loanrepayment from wage.

a ACP - Determine cost beeofit ratio for additional collectlons personnel.

7 VISA - Work through diplomatic channels and with WOJ emigration authoritioeto curtail the issuance of visas to debtors.

O COL - For app licants from fallies at the upper end of tho perm)scableineo range determine whether loans could be collatoralized.

C Indicates a new policy not presently operational.

*c Although a sequence Is followed the exact timing is not specif ed andmuch noeed Information (ofton oven addresses) is missing.

eo5 Interest penalties were not mentioned in contracts and might requirestatutory status. SIB might also try grace period during whichpenalties would be forgiven for p ople who geot on schodule.

- 28 -

JmAXCA Page 1 of 1

FNAT m M WDTllQ AND sr w Pr

AUM Aa SO91S: PISGL FAMLl=

Ibriab "roea Sdvoi- NOW CLsWOoMB Fatrolkuut

-e_P o- -- 9

lb. of kIteUOUn Nw !alst1tg Nw Actual Etstte A±usl etlmte . _ a_b"gdaW (ERd.tir Situ Situ Sit1 after th af ter thssduolJ situ) prodee khes

1. S. . ._

18 edmIsd 3 1 i4 10 5,343 5,520 1,379 2,165 1q,sua 6

uatedteszd~equipm meincbabd for13 feelr

|2.St. | . in .

2 sdiol 0 1 0 13 993 1,070 654 675 Rqeip w1rwmisli,u o

umteidAo aidiieqtpiFt a1ncai fotI feeleracb0ol.

1~Y~L 3 12 14 23 6,336 6,590 2,033 2,840

1/ Inc1ud. tmy ni mI4utod dhools (Grads 7-9) and selecteI all-s4 sdhOolS (GrLaes 1-9) or "CetrulSdwools' in V& amd clsciwom ani sd laboraturiu vll be hdlt for tfeir secordary edutlondptmits. 1hea faciltil will cater for secoidary education saiients of several feeder allage

9doIs, :uich will be ccuerted into prinry schools (Grades 1-6).

- 29 -

ANNEX VIIPage 1 of 6

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

STUDIES TO BE FINANCED UNDER THE PROJECT

Study Title: Unit Costs

Brief Description: Determination of unit costs, components of costs, andfinancing of costs of public secondary, tertiary and higher education as wellas private secondary education. Includes instructional and boarding costs(both costs financed publicly and privately) and comparisons of differentinstitutional types.

Policy Implication of Study: Assess the degree to which education isprivately financed, and the potential for increasing private finance. Assesscost-effectiveness of alternative institutional types. Assess potential forreducing unit costs.

Procedure: Sample of institutions at each level, assuring adequaterepresentation of different institutional types. Develop survey instrumentfor schools and, if necessary, students. Administer instruments and processdata using standard software (SPSS, SAS). Run cross-tabulations of datas andanalyze results.

Timing: Begin development of methodology and survey instrument in March1988, and completed by December 1988.

Staffing:

(i) Foreign Technical Assistance:

Development of Methodology 1.0 staff/monthDevelopment of Survey Instrument 1.5 staff/monthData Processing on Computer 1.5 staff/monthAnalysis of Cross-Tabulated Results 2.0 staff/monthReport Preparation 0.5 staff/month

Total T.A. 6.5 staff/month

(ii) Local Consultants:

Development of Survey 1.0 staff/monthData Processing 1.0 staff/month

Total L.C. 2.0 staff/month

Jamaican Counterparts:

Staff of the Planning Unit of MOE.

- 30 -

ANNEX VIIPage 2 of 6

Total Costs: US$

(i) T.A. 6.5st/m x US$ 10,000/st/m 65,000

(ii) L.C. 2st/m zx US$ 3,500/st/r 7,000

(iii) Travel, per diem, etc. 2,000

(iv) Materials 1,000

75,000-rnrn

- 31 -

ANNEX IIPage 3 of 6

Study Title: Student Loan Scheme

Brief Description: Determination of student and family income, ano studentexpenditures on instruction and boarding, computed separately for differentinstitutional types witin higher education (e.g. CAST, T.T. Colleges, UWI).More accurate determination of the potential demand for student loans andappropriate terms and repayment arrangements.

Policy Implication of Study: Will allow the government to determine thedeslrable combination of grants, fellowships and loans as well as the MDstefficient and equitable terms of repayment for student loans.

Procedure: Select sample of students at each institutional type. Developsurvey instrument. Determine secondary documents useful in verifyingresponses about family income. Administer instruments and process data.Report components of student incomes and expenditures by income level andinstitutional type. Collect and analyze existing records on student loanrepayment and default. Analyze flows of funds to student loan program andsensitivity to interest rate clanges.

Timing: Begin development of methodology and survey instrument andcollection of data in March 1988 and completed by December 1989.

Staffing:

(i) Foreign Technical Assistance:

Development of Methodology 2.0 staff/monthDevelopment of Survey Instrument 3.0 stafffmonthData Processing 2.5 staff/monthData Analysis 3 0 staff/month

Total T.A. 10.5 staff/month

(ii) Local Consultants:

Development of Survey 1.0 staff/monthData Processing 10 staff/month

Total L.C. 2.0 staff/month---

Jamaican Counterparts: Staff of the Planning Unit of MOE and Student LoanBureau, with selected staff of tertiary institutions involved.

Total Cost: US$

(i) T.A. 10.5st/m x US$ 10,000/st/m 105,000(ii) L.C. 2st/m x US$ 3,500/st/m 7,000(iii) Services 4,000(iv) Materials 2,000

Total 118,000-u--a--

- 32 -

ANNEX VIIPage 4 of 6

Study Title: School Administration and School Maintenance

Brief Description: Assessment of possible administrative reform ineducation, particularly at regional and local levels, includingdecentralization of certain administrative functions. Evaluation ofalternative means for improving school maintenance at primary and secondarylevels. Emphasis on potential role of local school boards, localparent-teacher organizations, and local communities. Study assesses theinvestment costs, recurrent costs, feasibility, and effectiveness ofalternative approaches.

Policy Implication of Study: May lead to decentralization of certainfunctions of MOE, resulting in a reduced administrative apparatus of centrallevel, and increased involvement of local authorities in schooladministration and maintenance of physical facilities, to reduce maintenanceburden on recurrent budget of the MOB.

Procedure: Analysis of present administrative procedures and structures.Select set of administrative alternatives, assess impact of each alternativeon administrative costs (human resources and financial) and effectiveness.In addition, it will be based on local sample surveys to determinemaintenance needs, (reveal current means of providing and financingmaintenance) and parental response to possible alternatives.

Timing: Begin in March 1988, and completed by September 1989.

Staffing:

Foreign Technical Assistance:

(i) Management Consultant 3.0 staff/month(ii) Local Consultancies 9.0 staff/month(iii) Study Tour (e.g. to Costa Rica, Paraguay) 5.0 staff/month

Total 177.0 staff/month

Jamaican Counterparts: Staff of the school operations Division, and of thePlanning, Primary and Secondary Units of the MOE.

Total Cost: US$

(i) T.A. 3st/m x US$ 10,000/st/m 30,000

(ii) L.C. 9st/m x US$ 3,500/st/m 32,000

(iii) Study tour 5st/m x US$5,400/st/m 27,000

(iv) Services, travel, etc. 3,000

Total 92,000

- 33 -

Annex VIIPage 5 of 6

Study Title: Reform of Secondary Education

Brief Description: Financial evaluation of alternative secondary educationreforms, including new curricula, rationalization of existing institutionaltypes, with particular emphasis on the feasibility of a unified lower cycle.

Policy Implication of Study: Study should lead to a restructuring ofcurriculum and types of secondary education with reductions in costs andimprovement in effectiveness. Costs should be reduced by simplifyingprovision of secondary education and realizing economies of scale fromadoption of a standardized curriculum and instructional materials at lowerlevels.

Procedure: Develop alternative approaclhes in light of present Jamaicaneducational and economic conditions, Determine implications of alternativesfor staffing, costs, educational effectiveness, and access by students.Assess the required investment to undertake alternative reforms and theirdplications for recurrent cost, and a feasible schedule for implementation.

Timing: Begin in March 1988 and finish by September, 1989. This study isclosely linked with the unit costs and school administration and schoolmaintenance studies. The technical part of the study is estimated to requireabout 6 months (educational aspects) whereas the "feasibility" discussions ofvarious alternatives might require more than the estimated six-monthduration.

Staffing:

vi) Foreign Technical Assistance:

Curriculum Development 4.0 staff/monthTechnical/Vocational Educatioa 4.0 staff/monthAssessment of Cost Implications 2.0 staff/month

Total 10.0 staff/monthm00

(ii) Local ConsultantsCurriculum Development forLower Secondary Education 4.0 staff/month

Total 4.0 staff/monthUrn.

.'amaican Counterparts: Staff of the core Curricul.um Unit, TechnicalJocational Unit, and Planning Unit of MOE.

- 34 -

ANNEX VIIPage 6 of 6

Total Cost: US$

(i) T.A. 12st/m x US$10,000/st/m 100,000

(ii) L.C. 16st/m x US$3,500/st/m 14,000

(iii) Services 2,000

(iv) Materials 2,000

Total 118,000r-m-

- 35 -

am TM

JAMAICA

- , PIWARA= AiN SflW LOW PM

DWRVICZ IRADINN PROGRAM

Tzuni Prgu wod.hops/ T bafor Semnars Schedule Traius cs

A. Tadwr Traines 4 local (a) Education 1987 11e l*niatr c 1,000PINultaIts Plicies Education

3 HE smAor' (b) A&unlatra- 11w scztaiy c&staf tbe Reform Fin.e

2 UWI staff (P) 11e National2 ARP officers (c) o 0iaul. 1987 Budst Director2 0wriwum Developut 1e Dam of the

offires N_ Sdcol cf2 P3 officers (d) MotbodolqD1 !dwztlio

The APP Director

B. HE Officer 25 Education twday 1987 local CADULta 1,500Oficers nbsh ps in: In Career duc-

(a) Student tion. Staf ciEvalxtim the WI.

(b) Co"eling(c) Vocationaorientati atthe juaior sec-onar school

Cd) lult-finevaluation ofthe teachertrainf prcgra

Co Schol Pdnd- 110 persona ore-d 1988-1989 loca and forep 11,000pals and Cw lm seminas in: ow iukants, WI,(frw All- (a) Evaluation staf.aM elected junior (b) Counsellingsacowlazy s chols) (c) Aptitue

Thating

D. Schol Wper- 15 person a-day aak- Om each y'ar HIE sor 1,000vIsoVs Shops in: 1987-1989 of flcers, fomr

(a) School servims amdmanwm_lt local coiwult-

(b) Supervisi4n ants.TechnIques

(c) SchoolYaintenM

- 36 -

am v1u

L SdIo PdMd- 50 pS O. ow- or noa-day So amually: locel cmult- 15,0O0pal g Ui. - rmsvbp in: 1987-198 arts, HZ sorrjUs A sid (a) S&hooJ. effie od VAtombwd deotttImi staff.a1u-s sduo (b) Schoolwoecta ~Ib

(c) Qdmncead aptiudetn.

F. All-Op udwo 200 ipos on-da 1987-1988 HZ senior 25,000tl_.. sadrs in: offtsr, schoo

(a) the of super4lom,tXte¢boc local coreultants(b) Prqsation and asetmof idzW princpals of theMtor""s teaw tr4nhi(c) Student ciIs.

(d) harvworkIn the class-

0. NU offier and 35 perw one-day semt- 1987-1988 Poeip and locd 4,000oselectd sdOc&M nacs on: ooultants, UWI

1ncipa and (a) suitive staff.

tim ece traialm the in-service

(b) Schooo s cf~~~~~~~~o educatiE

(d) Pecmwda-tiniw for f-p-ture prcg

R. All-Age adwol 10 person 2 one-day sm- (kie amimafly: voreipi wuult- 1,500prtmcipsls ~~~~~narn in: 1987-1988 ants, sdeled

(a) School Ad- schoo princ-ministration pals and HZ(b) Ne tre senior offirea.In school vev

(c) S o

(d) leadeRshpin Education

L ~~aw l 4610 pe2- teanl o ,00

/In a ony cost of daly allw to paticipants (i.e., food transportanto, hoselctad leang MT11s). FMs for maxdtants ad trailne are nt Included.

- 37 -

~~ATLG4 ~ uam ~ enwir am u JAIoA 4

Ttd0AA 4Y TWO= hSSIE Stff Uni Wtthn thi Coat

1. OGWu mf

Specia in bRlis 4 O 40,000reaf unit

Speidit in Scie1. 6 60,000 Sciees te_lis ith godaierit so tiat tay coamdavirn an and eisat with teduig aad dvelopintofsieme awrznih. (grel 7-9)

Sdaliat in leanag 4 7ech.tVoc. Ibit 40,000mmat pvCo.

Specialst In distaei 9 Tetiay Undt 80,000 leAnt awerin In dthi fieldtea,Mng. 18is dfrble.

Spedalst in Ewlation, 10 Baluation asd lO0,000Qudnids and Caaelz. 10 zdomm Unit. 100,000Education Sttiosi Spec. 3 30,000

2. Tech./oc. E ation 4 Tech. Voc. ldt 40,000 To avie on and asidst withthe desiP, pogr..i and

lq~lntaionof tim In-mrviae teader trai

3. Studies pc

Unit cos 6.5 Plamdz hdit 65,000student loa8 satrn 10.5 Swlamtts' loan 135,000

Scbhol aAA1.stttion and 3 Scol opqtit 300000sdio uMltiAmB Division

Refotmof Sac. EductIon 12 Oe Cwriculm UitTedmical Vocation Udit

_ Plaml Unit 000

Sub-total 82 80000

- 38 -

E1G= P3KAM WAAwM AND MM WM W

TKE A81R JUID SZVA

AhM OF urW l. ASSISTARM Stdff lhlt Witbin the Cost

S. wt omm .

1. OCL0I.TAm

Speciaitas In Fqlishmarg to ,o* as 4 Core OzriclAm MOt 14,000 local speialiests w work, as

Ath tbm nsed, slocal omuteparts offoreipn comdltant on foreg specalts.thts mset.

Eciaists In Sciezoe 4 14,000

Specialists in Matl_tntc 12 42,000

Speciass In 12 42,000Sodal Studii.

Specialists in lower 12 Tertiary Unit 42,000- Eduatio

(Caore Ozawbi)

L.Soddle of Education 2 Tertiry Unit 7,000(Assistaw COdEducation Officer)

3. Siooil aZcXn 2 Sewnd Ery catio 7,000 2m spedalIsts In wcal super-lkit don w11l assist in prsprz w

lla for the cur for MZaUIPevis.

4. 4 Pianing Unit 14,000

5. Studlas

Units asts 2 P1nni1g unit 7,000

Student loan sebne 2 Pl _vri Unit aM 7,000Student 4on Butew

Schel adduietration 9 Smol Operatiowar seool m ivision 32,000

Rfom of sec. eduation 4 Core 0wriLua UnitTedmical Voc. Unit

- P]amig Unit 14,000

Sub-total 69 242,00D

- 39 -

JAMI sPa 3f 4

17 1ROMN A AND WN }W N

-AL hIIVM AND PIULLUSM

Total -0AMA8 (F TKNICA Assign=I ND. Of Staff Unit within the Ccst

SW=~ Fe- 1scos Mxtu )Unltry of Ed. U_$ lAmusa

C. PEUZIAS.

1. Arcdlteettre 2 12 Archtects Sectlon 36,000 To Iqowm the expertlis ofthe architects in theProject I laatatim andMutnte1we Units of thm[,

2. Evalustiwi and 4 4 10 Evaluation ardstiZlg CUwlig Unit. 120,000 lb *rove the competerte

and expertise of the educa-tion officers workig ontetirg and meauwemei ofprogram ealuation.

3. ReforDi and 7 36 Core Curariibu 108,000 To ugade the d18ls aidDevelopmxt expertise of the tE

ffi.ee working on Englishreading, science etication,music ad core oruicaul.

4. Study Tour 5 5 Mintenab e Unit 27,000 l see experienes Incmmity participation inwlhool vaintenance

5. Strategie InIn-rvioe tnin 2 12 Trtiary Udt cf 36,000 lb study, oseerve ain

the Ia doarut a strateglesmDe in inserviceteader trainitg so thattbose concerned can workwith the foreip special-ist in desIgnivg the irservice teadur training

6. Tbade Education 2 18 Trtiawy Unit 541000 To uMgrade the ddfls andepertise of MOE officersso that they can asist Inthe lnpl1entatim andsupvision of the nw hrservice traiidrg program.

7. Teacher EducaIon 12 24 rIary Unit 72,000 Upgrading of lecturers atT.T. Iatitutioiu

- 40 -

A IXJAWAIA Pa f 4

m,IWXRA E PAIAAR14 AND STn W I U PN

iGRA ASSISIME AND FES

Total CoordiatingAREAS (F DEI X Z ASIS1 No. of Staff Utit witbln the Cost

==CBS Pesm It oty of Ed. US$ Rnemrks

8 atioan Statistics 2 12 Planirg Unit 36,000 lb upgrade the skis ofstaff in the Planig Unitto prepare a data base oneducation statistics.

9. Exation Planing and 4 32 Plamlirg lldt 96,000 To upgrade staff InEAtion Econmis - education paing, aid in

InXarlou areas efeducation scosnmics.

Sub-total 40 191 585,000

D. RELIT S SS AND MAT3IAIS FM STMlES

ServicesTravel, etc. Materas Total

t_ lBS US$ U$

unit Costs 2,400 1,000 3,000

Student Ia=s 4,000 2,000 6,000

Sdiool Alistration 3,000 - 3,000

Reform of Secondary Education 2,000 2,000 4,000

Sdol Mppig - 10,000 10,000

Total 11,400 15,000 26,000

- 41 -

ANNEX XPage 1 of I

JAMAICA

EDUCATION PP.OGRAM PREPARATION AND STUDENT LOAN PROJECT

Computing Equipment Requirements

Department of Utilization Cost

Students' Loan Bureau 75,000

HOE Planning Office 25,000

TOTAL 100,000

- 42 -

PapIof 1

JAN&1A

EDWATM PWAR=Ma MW WM M

Lama of PmAts Ca(*t of Tam ad Dutim)

TotalJ$ tbmuad U8tumds Fordep Boa

Prolect Coa Blocal Fk Tot loal F Tota1 C os

1. ecluical Asitance and Studles- Forde Crmutant 605 4,015 4,620 110 730 8M 87 09- lcad COvaulan 990 385 1,375 10 70 250 28 03-=Reated SevelsaiWAMaterlals 165 0 165 30 0 30 0 0- inhi= rps 'O 3,190 3,190 0 580 580 100 06

2. Iv-Serice Staff Tmlnilg 550 n 550 100 0 100 0 01

3. Scolol Corttmeti~m & iax,vatiaw- Nm Coutzuctian 10,395 6,930 17,325 1,890 1,260 3,150 40 34- Renoatio 2,145 1,430 3,575 390 260 650 40 07

4. Fturzne and E4uimit- Fburitue 550 330 880 100 60 160 38 01-EqU4pmt 0 715 715 0 130 130 100 01- C qtag EupMnIt 0 605 605 0 110 110 100 01

5. Studnta' tam Prnrm Expauin 19,250 0 19,250 3,500 0 3,500 0 38

Total e Costs 34,650 17,600 52,250 6,300 3,200 9,500 34 100

Physical C stizUes 1,540 1,760 3,300 280 320 600 53 06

Sub-Total 36,190 19,360 55,550 6,580 3,520 10,100 35 106

Price Contlngemies 2,541 2,904 5,445 462 528 990 53 10

TOtAL PM= M1 38,731 22,264 60,995 7,042 4,048 11,090 37 117

- 43 -

ANNEX XIIPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

FINANCING OF PROJECT COSTS AND DISBURSEMENT SCHEDULE(US$ million)

Local Foreign Total X

IBRD 4.2 4.1 8.3 75

JAMAICA 2.8 0.0 2.8 25

Total 7.0 4.1 11.1 100

ESTIMATED BANK DISBURSEMENTS(US$ million)

Fiscal YearCategory

1988 1989 1990 1991

Annual 1.6 3.1 2.8 0.8

Cumulative 1.6 4.7 7.5 8.3

- 44 - nau JAMACA

EWATCN PFDRMI PRPARATL AND S IUM WMPUw~~~~~~~~~~~P l'-o£

)flnstry ofF e Minister of lAucatio

Review otteeadvise au assis In

refdom prcrm

Pernent Secetay

Director

Projects, Conwtruction and_intence Division

Project Adisory Coittee Project emwtation Unit /

Avise and asist in imple- - CoordinatDruntation of education as- - General Educatorpects of prodect: - Coiutruction Maqer- Teacher Training - Procurem± Spedalist- Qirriaii - kccmtant- Studies - legl Officer- Speialist Asdstance - Support Penonl- FeUtsbip Training- In-6ervlce TrainIng

Studeens' Loan bireeu

Manaps the Students' Loan Prcgramand nukes periodic reports to thePIU Cooinator for foS EM tDthe Bar

- 45 -

ANNEX XIVPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

IMPLEMENTATION SCHEDULE

CALENDAR YEAR 1987 1988 1989 1990 1991

QUARTERS 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Civil Works(All sites obtained)

New Schools (2):Site SurveysDesignTender DocumentsTendering, Evaluation andContracting

Construction

Renovations/Extensions:Facility and Site Surveys _Work Orders and DesignsTender DocumentsTendering, Evaluation andContracting

Construction

Purniture and EquipmentList and Tender DocumentsTendering, Evaluations andConstruction

Delivery and Installation

Computing EquipmentSpecificationsTender, Evaluate and AwardDelivery and Installation

StudiesUnit CostsStudent LoanSchool Administration and -

MainteanceSecondary Reform

Technical Assistance andFellowships

Draft Education DevelopmentPlan

- 46 -

ANNEX XVPage 1 of I

JAMAICA

EDUCATION 1iROGRAM PREPARATION AND STUDENT LOAN VROJECT

PROCUREMENT ARRANGEMENTS(US$ million)

Category Procurement Method TotalICB LCB OTHER Costs/a

School Construction and Renovation

New 4.0 4.0(2.4)/b (2.4)

Renovation 0.80 0.80( .5) .*5)

Furniture and Equipment

Equipment 0.15 0.10 0.05/c 0.30(0.15) (0.10) (0.05) (0.30)

Furniture 0.20 0.20(0.20) (0.20)

Technical Assist, and Studies

Foreign Cons. and Fellowships 1.80 1.80(1.80) (1.80)

Local Cons. and In-service Training 0.50 0.50(0.50) (0.50)

Student Loan 3.5 3.5(2.6) (2.6)

Totals 0.15 5.10 5.85 11.1(0.15) (3,20) (4.95) (8.3)

a/ Includes all contingencies.b/ Numbers between brackets reflect Bank financing.c/ Local Shopping

- 47 -

ANNEX XVIPage 1 of I

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

LIMITS ON TYPE OF PROCUREMENT(US$ thousand)

Type of Contract Contract Aggregate Type ofProcurement

School Constructionand Renovation 4,800 LCB

Equipment and Furniture:

Computer Systems and Complex -

or Large Equipment Items 150 ICB

Other Equipment and LibraryReferences 50 or less 100 LCB

Misc. Equipment and Materials 20 or less 50 (Price Quot.)3 localbidders)

Furniture 200 LCB

- 48 -

ANNEX XVIIPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

AUDITING EXPERIENCE UNDER LOAN 2070-JM

1. The audits of the project accounts maintained at the Ministries ofEducation, Youth and Community Development are performed by the independentaudit firm of Touche, Ross, Thorburn. The latest report received covers1985.

2. The audit reports concerning the National Development Agency (NDA) 1/by Touche, Ross, Thornburn for the fiscal years ended March 31, 1982 and1983 were issued by the middle of February of 1983 and 1984, respectively.The report for FY84 has been received in March 1986. The independentauditor expressed a clean opinion on all fiscal years. The delay inissuing these reports has largely been attributed to the unsolvedweaknesses in the system of recording and filing internal informationprevailing in the Ministries of Education, Youth and Community Development,and in the NDA.

3. In addition to the audit by a private firm, the Auditor General ofJamaica annually reviews the educational sector and his comments areincluded in the "Report of the Auditor General on the Appropriation andOther Account of Jamaica for the Financial Year ended 31 March.,.." TheBank has reviewed the reports for FY83 and FY84 regarding the Ministry ofEducation in general and the execution of the project through the MOE andMOY in particular. The related comments, which include observations in thefinancial management of both the MOE and Bank's loans, disclose continuingarrears in the maintenance of the accounting records, weaknesses in thesystem of internal control and other unsatisfactory features in the MOE'soperations (such as inadequate control of stores and assets, and overgrants to agencies and institutions).

1/ This agency was closed by the Government in 1985. Responsibility forproject school construction has been taken over by the EstateDevelopment Commission (EDCO), under the responsibility of the Ministryof Public Works.

- 49 -

mm

,a EM PAREA MID S- tNM N

:MM DVATecluAcal Ases1twmo

Field of Epertise Ttal(iwin local ocsdtant) stYeaw Year I Year III Co u

1. Uits cot study 6.5 (2) 4.5 (1.5) 2 (.5) T.A. lptfort dstuda ii be

2e Student l wtudy 10.5 (2) 6.5 (1) 4 (1) ,miterd InJution h t

3. Sol dalntration, fand umntezze stud 3 (9) 2 (6) 1 (3) studies.

4. Secondaryr omstuy 12( 4) 2 10 (4)

Sb-rotal 32 (17) 15 (8.5) 17 (8.5)

5. English reedg 4 (4) 2 (2) 2 (2) fl mranfzn T.A.wil be monitoe In

6. Sciexoe 6 (4) 6 (2) (1) (1) accedazmnithayealy pla to be

7. 1e.nIg matils 4 4 prWed by dty lP:sta3 WIll be

8. Mabtattes (12) (4) (4) (4) rqord InI ~~~~~~~~~~~~~~~~~~qwterl r s

9. Distauoe te.hing 9 9 rOrts.

10j. Evuation 10 4 4 2

11. Qddanoe and ciaelti 10 4 4 2

12. Social studies (12) (5) (5) (2)

13. Iwr sec. education (12) (2) (8) (2)

14. Statistics 3 2 1

15. Tech./Voc. Education 4 2 2

16. Sociolcgy of education (2) (2)

17. Scol supersion (2) (2)

18. Schol umppi (4) (4)

Total 82 (69) 35 (29.5) 34 (30.5) 13 (9)

PefloiiPsPrlor to each yapl o ye, a plan proa diq tg de ir of fellm, their fmctio, destintion, duration ofstay wMll be preqard. lxdtoring will be bosed upWm t pln; each prcgrm rqort wl contain a tale bIudsthe status cf the fillowship po al1/ ber in pretluss Indicate loal co_mtaits

- 50 -

ANNE XXXPage 1 of 1

JAMAICA

EDUCATION PROGRAM PREPARATION AND STUDENT LOAN PROJECT

COMPOSITION OF COMMITTEES

The high level Review Committee is to meet quarterly; the TechnicalAdvisory Committee is to meet monthly.

REVIEW COSMTTEE

Permanent Secretary, MOE - ChairmanChief Education OfficerFinancial Secretary, MOFP or nomineeDeputy Financial Secretary (Budget), MOFP or nomineeDirector-General, PIOJ or nomineeOffice of the Prime Minister (Bureau of Management Support)Vice Chancellor, UWI or nomineeAssistant Chief Education Officer (Planning)Director Projects, MCEPresident of CAST or t.ominee

TECHNICAL ADVISORY COMMITTER

Director Projects, MOE - ChairmanAssistant Chidf Education Officer (Planning)Assistant Chief Education Officer (Curriculum)Assistant Chief Education Officer (Secondary Education)Assistant Chief Education Officer (Technical and Vocational)Assistant Chief Education Officer (Evaluation and Counselling)Nominee of Jamaica Teachers' AssociationNominee of Financial Secretary, MOFPChief Architect, MOERepresentative of Private Sector Organizations of Jamaica (PSOJ)Nominee of Vice Chancellor, UWINominee of Director-General, PIOJPresident of CAST or nominee

- 51 -

ANNEX XXPage 1 of I

JAMAICA

EDUCATION PROGRAM PMEPARATION AND STUDENT LOAN PROJECT

SELECTED DOCUMENTS IN PROJECT FILE

1. Jamaica Education Statistics2. Student Loan Council Ant3. Three Alternative Scenarios of Student Loan Fund Growth, July 19874. SLB Account Balances by Academic Institution, March 19865.. Government of Jamaica Budget 19876. Project Preparation Report7. SLB Collections Strategies, November 1987

Im~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2

MAP SECTION

I~~~~~~~~~~~~~~~~~~~~~~~~~

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lotow~~~~~~~~~~~~~~~~~~~~~~~~~~ld.Tw

J r ' s ~~~~~~~~~~~~~~~~~~~WakfeI..d 7- Ii At N 0 V f h bS ! !ANMFS ' $r

Sv .C lawovr T R F a -A N fi A N N

; - _ , 9 R t Nf tW b S ~~~~~~ ~~~/ S I A NNE s I t ~ ~ ~ ~ ~~ Ic

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k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ru HaI ll

S I E L I 7 A B F T H\Boptis\ \ C l, A R E s Or Let:OiO>t \\ uiomald

gL } _ ~~~~~~~\ MANtDEVILLE

J A M A I C A BLACK RIVl 1 t )r

OURTH EDUCATION PROJECT M C H-S!FMAY p

* EXISTING SCHOOLS WITH CLASSROOMS TO BE ADDED Cooks

o } NEW SCHOOLS

- ARTERIAL ROADS I

SECONDARY MAIN ROADS pott

S -- '--.-RAILROADS Uon.

RIVERS

4 MAIN PORTS Rocy Poi1

INTERNATIONAL AIRPORTS

4 LOCAL AIRPORTS

~-. PARISH BOUNDARIES

- COUNTY BOUNDARIES

-* - INTERNATIONAL BOUNDARIES 7roo' 7730'.~~~~~~~~~~~~ . _

IBRD 2044677k0 ?830 'NITIO StAttS

JAMAICA

i'S~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 i''l tvttSAYAO

) FANAIIIA \~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~*AI

MAeSICO Nit.

, L AILIZIa30 -~~~~~~ KONOUZAS

GUATEMALA -,? NgCAAOUA

It SALVAcen A

4t ~~~~~~~~~~~~~~~~~~~~~~~~~~COSTA RIA PANAMA

0xMoneogue~~~~~~~~~~~~~~~~~~~~~~~~~~~~KC 'u ,, v _tUfA

PRT MARIA COLOUSIA

Mount Diablo i-/\*s#rl

*- \~~S S MAX JCURIY>W\;Cmsc~~~~~~~~I Pad ~ ~ ~ ~ Tqs

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84)

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MILES tw P. TMp n0w _r0 1 2 3 * 5~~~~~~~~~~~~~~~~~km." Ti* krs_d

M~~~~~~~~~~~~~~~~~~~~~I l;. E S _ , * __,

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JULY 1987