DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENTINTERNATIONAL DEVELOPMENT ASSOCIATION

Not For Public Use

Report No. PE-52A

APPRAISAL OF

AN EDUCATION PROJECT

LEBANON

FIllE COPYNovember 29, 1972

Education DivisionEMENA Projects Department

This report was prepared for official use only by the Bank Group. It may not be published, quotedor cited without Bank Group authorization. The Bank Group does not accept responsibility for theaccuracy or completeness of the report.

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CURRENCY EQUIVALENTS

US$1.00 = 3.06 Lebanese Pounds (LL)1 Lebanese Pound (LL) = US$0.3271 million Lebanese Pounds (LE) = US$327,000

MEASURES

1 m2 10.76 sq ft1 km2 = 0.39 sq mi

FISCAL YEAR

January 1 - December 31

Note: The Lebanese Pound is a freely fluctuating currency.In this report, conversions between Lebanese Pounds andU.S. dollars have been based upon the following exchangerate which existed at the time of field appraisal:

US$1.00 = 3.11 Lebanese Pounds1 Lebanese Pound = US$0.321

LEBANON

APPRAISAL OF AN EDUCATION PROJECT

TABLE OF CONTENTS

Page No.

BASIC DATA

SUMMARY AND CONCLUSIONS ............................. i

Is INTRODUCTION ............................. ............... 1

II. THE SETTING ......................... .................. 1

Socio-Economic Background ...................... ........ 1Economic Development Strategy and Manpower ............ 2

III. THE EDUCATION SYSTEM .............. s...... o..#. 3

General ...................... ............ . ........ .0. 3Private Education . . ............. ........ * . . 3Primary and Lower Secondary Education ........... 4Upper Secondary Education ....... ...................... 4Non-formal Vocational Training ..... ................... 5Higher Education ...................................... 5

IV. EDUCATIONAL ISSUES AND DEVELOPMENT STRATEGIES 5

V. RATIONALIZING EDUCATION COSTS .................... 9

VI. THE PROJECT . ......... .. .... . ......... 12

General ........... ..... 12Primary Schools . . .. .. $. ........... . .... 13Lower Secondary Schools ......... . .............. 13Primary Teacher Training Institutes 14Lower Secondary Teacher Training Institute 14Technical Assistance.. ........... 15Cost of the Project ........................ ..... 16

VII. IMPLEMENTATION.......... 17

Administration... .... 17Procurement........ .... ...... . 18Disbursements.. .............. 18

VIII. AGREEMENTS REACHED AND RECOMMENDATION .... 18

This report is based on the findings of an appraisal mission which visitedLebanon during February 1972. The mission consisted of Messrs. 0. Markgren(mission leader), M. Krohn (I.L.O. technical educator), N. McEvers (economist)and C. Molineaux (architect, consultant).

TABLE OF CONTENTS (Cont'd)

APPENDICES

I. Education and TrainingII. Education Costs and Finances

ANNEXES

1. Comparative Education Indicators2. Enrollments, Teachers and Institutions by Level and

Type of Education, 1970/713. Supply and Demand of Primary School Teachers in Government

Schools 1970-19804. Supply and Demand of Lower Secondary School Teachers in

Government Schools 1970-19805. Expenditures on Education and Training, 19716. Government Annual Recurrent Costs per Pupil7. Public Expenditures on Education and Training, 1962-19718. Government's Rationalization and Expansion Program

("Plan de Regroupement") at Primary and LowerSecondary Levels

9. Comparison of Recurrent Cost Implications of EducationDevelopment Plan, 1980

10. Projected Costs and Benefits of the Primary School Componentin the Proposed Bank Project

11. Projected Costs and Benefits of the Lower Secondary SchoolComponent in the Proposed Bank Project

12. Projection of Public Expenditures on Education and Training13. Estimated Project Costs by Various Types of Expenditures14. Unit Capital Costs and Efficiency of- New Project Institutions15. Contingency Allowances16. Project Implementation Schedule17. Disbursement Schedule

CHARTS

Structure of the Education and Training System (6757)Enrollment Pyramid 1970/71 (6758)Growth of Enrollments in Primary and Secondary Education (6759)

MAP

0LEBANON

BASIC DATA

Total Population (1970) 2.8 million

Current Population Growth Rate 2.5%

Primary Enrollment (1971) 514,700

As Percent of Age Group 78.5% (excluding 31% overaged)

Lower Secondary Enrollment (1971) 128,580

As Percent of Age Group 35.0% (excluding approx. 15%overaged)

Upper Secondary Enrollment (1971) 53,300

As Percent of Age Group 22.0% (excluding approx. 10%_ overaged)

Higher Education Enrollment (1971) 19,640

As Percent of Age Group 8.6%

Government Expenditure on Education as aPercent of Government Current Revenue (1971) 21.0%

Expenditure on Education as a Percent of GDP (1971); 7.4%

Of which Private Expenditure 3.4%

SUMMARY AND CONCLUSIONS

i. This report appraises an education project ir. Lebanon for which aBank loan of US$6.6 million is proposed. Lebanon is a commercially activecountry, one of the more advanced of the developing nations. Its educationsystem, however, has not kept pace with the country's requirements forgreater numbers of better educated, and more practically oriented and train-able personnel. Moreover, it has not been able to provide equitable oppor-tunities for schooling for all groups in the country.

ii. Lebanon's education goals, therefore, are first, to reorient thepresent highly academic system to a more practical and technical one andsecond, to expand educational opportunity by extending improved schooling toall segments of the population on an equal basis. As a first step, the gov-ernment intends to reform and expand the primary and lower secondary levels.Quality will be improved by planned revisions in teacher training curriculaand methods, and in curricula, examinations, and equipment at primary andlower secondary levels; the government, taking the lead in this program toimprove the quality of education, has established a new administrative groupto assist in developing and implementing these changes. Tn addition, 225,000primary school places and 197,000 lower secondary school places will be con-structed by 1980 to offer educational opportunities on a more uniform basisthroughout the country.

iii. Typical of the country's economy, the private sector dominates theeducation sector; this is the most striking feature of the Lebanese educationsystem. Private schools account for 62% of total enrollment (63% of primary,47% of lower secondary, 71% of upper secondary, and 77% of higher education).These schools vary widely in quality and are expensive to attend with tuitionfees rising annually. A significant expansion of the private school systemis not possible on the present basis because the ceiling on the numbers whocan afford the tuition fees has already been reached. This has resulted inincreased expansion of government-aided private schools (65% of the increasein private primary school enrollment during the past ten years was subsidizedby the government) and in increased demands for free public education.

iv. The government recognizes that, if the educational system is torespond to the economy's demands, the public education system is the partwhich will have to provide the bulk of the required expansion. This systemis relatively small at present because of the government's past relianceupon the private sector. One of the results of this reliance has been thegovernment's practice of locating public schools mainly in response to needswhich the private system was unwilling or unable to meet at the time. Perhapsbecause this deficiency of private education in a particular area was oftenonly temporary, the government adopted the practice of renting private dwellingunits for use as public schools. This has proven to be uneconomical due toincreasingly high rents and to an increasingly high wage bill for teacherscaused by the low student-teacher ratios imposed by small classrooms.

v. If the present practice of renting schools were continued, itwould be difficult for the government to achieve the targets ror expansionof public school enrollments, as this would require the allocation in 1980of 40% of the government's recurrent budget to the Ministry of Education.The government has decided, therefore, to construct a network of publicschools which would replace rented facilities and would rationalize theexisting pubic school system at primary and lower secondary levels. Inaddition to eliminating rents, the program would also allow the schools tobe strategically located within catchment areas and for teacher-pupil ratiosto increase to 1:35 in primary and 1:30 in lower secondary schools from thepresent average of 1:18 for primary schools and 1:23 for lower secondaryschools, with economies in teachers' use of common facilities.

vi. The proposed Bank project would assist in the initial phase of thisprogram by supporting the construction of 39 primary and 24 lower secondaryschools, which would represent 14% and 7% of the enrollment capacity to bebuilt at these two levels, respectively, by 1980. The project schools wouldbe the first to be built in the program and would serve as model schools forthe programming, planning, construction and equipping of the other new schoolsincluded in the rationalization program.

vii. Because of the difference between the costs per pupil in the proj-ect schools and in similar schools using rented facilities, the primary andlower secondary schools in the project would result in considerable savings.The difference between the costs (capital and recurrent) of catering for24,240 primary school students in the project primary schools and in therented facilities they would replace would amount to a savings for the gov-ernment of US$1.1 million annually. Even disregarding the educationalbenefits to be realized from the expected upgrading of academic standards,the rate of financial return to the government on the project's 32 primaryschools would be 21.5% over a 15 year period. A similar rate of return onthe lower secondary schools would be 24%.

viii. In addition to the above primary and lower secondary schools, theproject would assist the government in its efforts to upgrade the quality ofits education system by including the financing of:

(a) construction and equipment for three primary teachers traininginstitutions;

(b) the renovation and equipment for one lower secondary teachertraining institute;

(c) technical assistance in planning the comprehensive devel-opment of upper secondary education, particularly tech-nical education.

.

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ix. A project implementation unit would be established within the ConseilExecutif des Grands Projects (CEGP) to provide overall supervision of theproject. Contracts for civil works and equipment would be awarded on the basisof international competitive bidding in accordance with the Bank's Guidelines.Furniture would be purchased under reserved procurement, as requested by thegovernment, and would not be financed by the loan. Preferred domestic bidsfor equipment would be accorded a margin of preference of 15% of the c.i.f.price of competing imports, or the generally applicable level of duty, which-ever is lower. Lebanon does not have any regional preferential agreements.

x. The total project cost is estimated at US$15.9 million, includingcontingencies. Cost data are based on detailed schedules of accommodationand contracts for similar work. The foreign exchange component is estimatedat approximately US$6.6 million equivalent, corresponding to 42% of the es-timated total project cost.

xi. The project is suitable as a basis for a Bank loan of US$6.6 millionto Lebanon for a term of 25 years including a grace period of 5 years.

I. INTRODUCTION

1.01 A Unesco mission visited Lebanon in May 1971 to identify educationprojects suitable for Bank financing: a Bank mission reviewed these findingswith the government in September 1971 and agreed on the project items thatwould be submitted for Bank financing. In November 1971, a Unesco projectpreparation mission assisted the government in preparing the proposed project,for which the government requested Bank assistance in January 1972. A missioncomprising Messrs. 0. Markgren (mission leader), M. Krohn (I.L.O. technicaleducator), N. McEvers (economist) and C. Molineaux (architect, consultant)appraised the project in February 1972.

1.02 The project was modified during appraisal. The technical educationand technical teacher training components were deleted because they were notbased on a well-developed plan, and technical assistance was added to assistthe government to develop a comprehensive plan for future consolidation andreform of upper secondary education, including technical education.

II. THE SETTING

Socio-Economic Background

2.01 Lebanon is one of the more advanced and commercially active of thedeveloping nations. Long involved in international trade, it has been ex-posed to a wide diversity of cultural influences and today it has severalspoken languages, namely Arabic, French and English. Since the end of WorldWar II, when the French Mandate ended, the Lebanese have used their ingenuityin trading and in entrepreneurship to fashion a unique role for themselves inthe Middle Eastern economy and in world commerce by: a) exploiting theirgeographic position to establish their country as a major transit point forgoods and people, b) building on their traditional role as traders to estab-lish Lebanon as a commercial and financial center for the Middle East andc) exploiting the attraction of Lebanon's natural beauty and historical sitesfor the foreign tourist.

2.02 The Lebanese people are divided almost equally in number betweenChristian and Moslem communities, which in turn, are sub-divided into numeroussects and factions. By constitutional agreement, the interests of the tworeligious communities must be equitably balanced in the organization and con-duct of the country's political and social affairs. This balance is main-tained under a democratic rule, with a high degree of political and socialstability.

2.03 In the past, population growth within Lebanon tended to be reducedby emigration. However, emigration has slackened off considerably in recentyears. As a result, Lebanon's population of about 2.8 million (1970) is in-creasing at the fairly high rate of 2.5% per year. Furthermore, approximately

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55% of the population is under 20 years of age. The population's growth raterand age structure have given rise to escalating demands for education and haveplaced increasing strains on existing educational facilities especially atprimary and lower secondary levels.

2.04 Its unique structure makes the economy vulnerable to internationaleconomic and political fluctuations: trade, tourism, international bankingand transport contribute two-third of GDP. Agriculture, industry and con-struction together contribute about 35%, but together employ over half thelabor force of 572,000 (1970). Although it has provided some key elementsof infrastructure and maintains monetary stability, in economic matters thegovernment traditionally has adhered to a "laissez-faire'" economic approach.The economy averaged 5.5% real growth p.a. during 1961-1971 despite negativeeffects of the Intra-Bank collapse, the Six Day War, and confrontations withPalestinian guerillas.

2.05 Although economic growth has been sufficient to raise per capitaGNP from US$486 in 1964 to US$610 (1970), it has still benefited mainly anarrow segment of the society. Inequalities in the distribution of incomeas well as in the provision of social services (favoring urban over ruralareas) have tended to widen. The government is now concerned that thesedisparities, unless redressed, could pose a potential threat to Lebanon'sstability. Non-intervention by government has deterred both the expansionof publicly provided social services and the fiscal modernization needed tohelp support such expansion. Now, however, the government is planning totake a more active role in expanding and improving social services and inreducing inequalities in income. A major reform of the direct tax systemto enhance the government's financial capacity is part of a long range pro-gram to achieve these objectives.

Economic Development Strategy and Manpower

2.06 The government's 1972-77 development plan aims to reach and main-tain, as a minimal target, at least 7.0% growth per annum of Lebanon's econ-omy. This increase will be based mainly on the continued growth of services.The service sectors are expected to expand at a rate of 8% yearly, comparedwith approximately 7.5% p.a. during the period 1965-1970; over this sameperiod, agriculture and industry grew at 1.8% p.a. and 7.4% p.a. respectively.However, the 1972-77 plan also intends to achieve some degree of diversifica-tion in the economy so that development could become less dependent on serv-ices: to this end, the plan forecasts that agriculture will grow at 4% to5% p.a. and industry at 9% to 10% p.a. (partly in response to export oppor-tunities in the region), increasing their combined total share of GDP fromabout 22% in 1970 to 24.5% in 1977.

2.07 Over the long term, an element crucial to the success of Lebanon'sstrategy will be the human resources available to support the country's growthand development. Although detailed data are lacking, the economic growthcharted in the 1972-77 plan would require new employment, due both to job

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creation and to replacement, of about 63,000 in the primary sector, 124,000in the secondary and 138,000 in the tertiary sector over the period 1972-80.Based on these figures, it is estimated that annual requirements for newmiddle level manpower will reach about 15,000 by 1980. This is in contrastto the present output from upper secondary schools which averaged, between1965-70, 9,000 per annum. Many expatriates, mainly Syrians, who constitutedover 9% of the labor force in 1970, were working as semi-skilled and skilledcraftsmen in construction, industry and public services (power, water, trans-port, communications), sectors which are already experiencing shortages oftechnically-trained Lebanese manpower. Assuming that growth plans for thesesectors are realized, the skill shortages are expected to become more severein the future. These indicators suggest that the stock of trained personnelrequired in the future will be larger than what the existing educational sys-tem can produce.

2.08 Future growth of Lebanon's relatively dynamic and diversified serv-ice activities will require not only a larger but also a better schooled, morepractically-oriented and trainable pool of manpower. With Lebanon's emergenceas a modern commercial nation occupying a position of growing importance inthe regional and world economy, it has become increasingly evident that nativebusiness acumen no longer suffices in the operation of the service sectors.Furthermore, the supply of skills needed for agricultural and industrial de-velopment and for efficient operation of the country's infrastructure (whichhas been rapidly extended in the last decade) will depend partly upon labortransfer and mobility, and consequently on the overall adaptability of thelabor force. The educational system, as presently constituted, is not in aposition to respond to these requirements.

III. THE EDUCATION SYSTEM

(Appendix I, Annexes 2-4, Charts 6757, 6758, 6759)

General

3.01 Education in Lebanon is structured as follows. Primary educationconsists of a five-year cycle normally beginning at the age of six. Generalsecondary education comprises a four-year lower and three-year upper cycle.Secondary technical education and training is offered primarily at the uppercycle in courses of up to four years. Higher education is offered in coursesof normally four to five years in universities and teacher training and tech-nical institutes.

Private Education

3.02 Consistent with the private sector's importance in all fields, thecountry has traditionally relied heavily on private schooling. Private schoolsaccount for 62% of total enrollment (63% of primary, 47% of lower secondary,71% of upper secondary and 77% of higher education). The private schools are

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sponsored by different religious and commercial groups; at primary and second-ary level, Roman Catholic schools serve 43% of all private school pupils,other denominations, mainly Moslem, serve 18% and private profit-making in-terests serve the remaining 39%. They also vary widely in quality, from verygood schools with high academic standards to extremely low-quality schools.Yet, regardless of their sponsorship or quality, private schools are expen-sive to attend, and their tuition costs are rising each year.

Primary and Lower Secondary Education

3.03 In primary education, about 79% of the age group, or 515,000 stu-dents, were enrolled in 1971, but only about 65% of those entering the coursecomplete it. About 12 student years are required to produce one primaryschool graduate.

3.04 At lower secondary level, 35% of the relevant age group (and 15%of over-age students) are enrolled. Repeater rates are also high. Thereis a great disparity in the quality of private and public lower secondaryschools. About 90% of all students in private lower secondary educationattend full cycle secondary schools (grades 6-12) and are taught by teacherstrained for the upper secondary level, while about 81% of all students enrolledin public lower secondary education are housed with primary schools and taughtby primary school teachers. For primary school graduates who cannot gainaccess to the lower secondary academic course, either for scholastic or economicreasons, further training is available in eight public lower secondary voca-tional schools or private schools offering mostly commercial subjects. Trainingin the public vocational schools is of low quality and their graduates' employ-ment prospects are poor.

3.05 The supply of qualified teachers at these levels is low. In 1971,only 40% of primary teachers and about 27% of lower secondary teachers wereconsidered qualified. The present primary teacher training capacity, how-ever, is sufficient to produce a fully qualified primary school teachingstaff by 1980, a net increase of about 6,800 over the present staff of 3,300qualified teachers (Annex 3). Lower secondary teacher training began onlyin 1971 when the government, in cooperation with UNDP/Unesco, started athree-year program for training science teachers; this program is expectedto meet the demand for 1,500 science teachers by 1981. On the other hand,adequate facilities do not exist for training the approximately 3,000 teachersneeded for social science and languages over the same period. Their trainingwill have to start in provisional facilities this year (Annex 4).

Upper Secondary Education

3.06 Upper secondary education (grades 9-12) in 1971 enrolled about53,000 students or 32% of the relevant age group divided among the differ-ent types of education at this level as follows: general education (68% ofenrollment), technical and commercial education (26%) and primary teachertraining (6%). Education at this level is quite academic and traditionalin content and generally, therefore, not in keeping with the modern needsfor a more practical orientation and preparation.

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3.07 Although public technical and commercial education enrollment hasexpanded rapidly in the past three years - from 795 in 1968 to the present2,377 - the structure and content of the system are not appropriate to theneeds of the economy for skilled workers and technicians (para. 2.07). Thecurriculum in industrial trades emphasizes general education and theoreticalsubjects and encourages students to seek white collar jobs. As a result,technical school graduates tend not to work as skilled workers or techniciansin industry, but as office employees at the subprofessional level and in otherjobs unrelated to their training.

3.08 Changes are clearly required in technical education (paras. 2.07,2.08), but planning is inadequate. New upper secondary technical schoolsunder construction will provide about 2,500 new student places in 1974. How-ever, no plans have been made as to the trades or specialities to be offeredin these schools, and agreements to involve industry in determining the coursesor their content have not been made.

Non-formal Vocational Training

3.09 The National Vocational Training Center, under the Ministry ofLabor, organizes accelerated training courses of 5 to 12 months' durationin close cooperation with industry. Thus far, it has trained over 1,000workers, all of whom have been successfully employed. Beyond this govern-ment program, all other non-formal training schemes are privately sponsored,3 but their sizes are negligible.

Higher Education

3.10 Lebanon, with its many private and government colleges in Beirut,has become a center for higher education in the Middle East. In 1971, 41,700students were enrolled, of which 47% were Lebanese and the rest from neighbor-ing countries. About 28% of the students were enrolled in technical, scienceand science-related faculties. In addition, about 6,000 students were en-rolled in universities abroad, mainly in France. There are at present nouniversity development plans.

IV. EDUCATIONAL ISSUES AND DEVELOPMENT STRATEGIES

4.01 Lebanon's goals, consistent with its overall development strategy,are to adapt its educational system to the country's needs by first, re-orienting the highly academic system to a more practical and technical oneand second, expanding educational opportunity by extending improved school-ing to all segments of the population on an equal basis. The present system,although it has reached comparatively high enrollment levels in relation tomany other developing countries, (paragraph 3.03-3.10) is nonetheless con-stituted so as to make achievement of these goals difficult: based on a

pre-World War II French model, the system is traditional in content and overlyselective, thereby limiting further education possibilities for many students.Moreover, the dominance of private education and its high tuition fees(paragraph 3.02) limit possibilities for future expansion and improvement offormal education in the country at all levels. As the major bottleneck toreform is at the beginning levels, primary and lower secondary education havereceived priority in the government's plans for educational reform.

4.02 For primary education, increasing numbers of parents have beenforced to send their children to less expensive, government-subsidized pri-vate schools, which consequently increased in enrollments from less than 25%to 50% of total private primary enrollments during 1960-1971. Increasesin tuition have also resulted in mounting demands for the government to ex-pand free public education at primary and lower secondary levels. In sum-mary, while in the past, private schools have been able to meet demnands foreducation, the limit of students able to afford them bas been reached, par-ticularly in the rural areas.

4.03 At the same time, the government school system responded on anad hoc basis to the needs which the private sector had not met. This hasresulted in the widespread practice of renting school facilities - 85% ofall public primary school enrollment and 100% of all public lower secondaryschool enrollment are housed in rented facilities. Most of these facilities,in addition to being expensive, are inadequate for educational purposes. Inmany instances, family dwelling units have been converted into governmentschools which lack sufficient space to accommodate economical class sizes;this results in uneconomically low student:teacher ratios (the average isonly 1:18 in primary schools and 1:23 in lover secondary schools). Thefinancial implications of this practice, fully described in this reporttssection on rationalizing education costs, are that without revision of thisuneconomical system, the government will not have the resources either toexpand or invest in needed qualitative improvements.

4.04 Reform Plans. In order to begin the reform of Lebanese educationalong the lines suggested by the six-year plan, 'i972-77, and policy state-ments by the Minister of Education, the Ministry of Education in close co-operation with the Ministry of Planning has decided to focus in the 1970'sfirst on reforming and rationalizing primary and lower secondary education andto assume increasingly a large share of education from the private sector atthese levels. The goals of this reform are: (i) to provide gradually acommon base of comprehensive lower secondary schooling for all primary schoolgraduates, and thus to equalize educational opportunity by providing up toten years of basic schooling to all children from approximately ages 5 through14 and (ii) to improve the quality and efficiency of education at primary andlower secondary school levels. After this reform has been initiated success-fully, and based on it, the upper secondary level will be reformed.

4.05 Total public and private enrollments are planned to expand to 95%and 65% of the primary and lower secondary age groups respectively between

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1971-1980. The development of enrollments during 1971-80, and the propor-tions to be accounted for by private and public schooling, are as follows:

1971 1980a _No. % No. %

Primary Level

Public 192,518 37.4 340,000 54.3

Government Aided Private 158,455 30.8 165,000 26.4

Private 163,729 31.8 121,000 19.3

Total 514,702 100.0 626,000 100.0

% Age-Group Enrolled 78.5 95.0(excluding 31% over aged)

Lower Secondary

Public 65,150 52.7 197,000 67.4

Private 58,487 47.3 95,300 32.6

Total 123,637 100.0 292,300 100.0

% Age-Group Enrolled 35.0 65.0(excluding 15% over aged)

4.06 In order to achieve these targets, and in view of the constraintson the private sector's capacity for expansion, the government will providethe required expansion at the primary level and also absorb about 11% of theprimary school students enrolled in inadequate private schools. In addition,the government plans to provide facilities for about 79% of targeted totalexpansion at the lower secondary level.

4.07 Under the reform, a pre-school year will be added to the five-yearprimary school course. Selectivity at the primary level will be abolished.This has already been partly accomplished by eliminating the examinations atthe end of each grade, thereby making promotion between grades nearly auto-matic, and by eliminating the final school leaving examination at the end ofgrade 6. All students will eventually progress to four years of a commonlower secondary education designed to guide them towards further general, pre-vocational or vocational studies, or employment. Thus a student's choice ofcareer will be deferred under the new system to grade 10. Finally, separatelower secondary vocational schools will be phased out and all lower second-ary education programs will be offered under one roof. For the first timein Lebanon, teachers will be trained specifically for lower secondary level.

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The project would assist in financing the renovation and equipping of thelower secondary school teacher training institution for this purpose. Bythese measures, it is expected that the existing differences in the qualityof education at this level between public and private schools (paragraph 3.04)will be eliminated.

4.08 An important part of the government's plans for improving the qual-ity of education at these levels includes improving teacher training andcurricula which are highly academic and outmoded. New, more modern primaryschool curricula recently developed by the Ministry of Education will beintroduced. These include modern mathematics and instruction in modernforeign languages; knowledge of these languages is particularly importantbecause of the multilingual character of the country (para. 2.01). In addi-tion, revised curricula emphasize study of the natural environment and itsproblems. Lower secondary school curricula already being used in schoolsinclude a broad common core of academic and optional practical subjectsstressing manual work to replace the present highly academic curriculumwhich mainly prepares students for further education. The related finalexamination, also under revision, will be introduced in 1976. The new curric-ula provide a better base of general education for all students in order tomake them more adaptable for further training and employment needs and tohelp them defer decisions on career and study programs to a later age. Guid-ance and counselling services will be offered to the students so as to assistthem in the choice of courses appropriate to their abilities and future pros-pects. As a first step in implementing this guidance program, an experimentaltraining program for guidance counsellors was initiated at the Lebanese Uni-versity in 1971.

4.09 As part of the program to improve the quality of the education sys-tem, the primary teacher training system will be up-graded and consolidated.The present system comprises seven institutions with a combined enrollmentof 3,240; only two are adequately housed. The remaining five schools, whichare poorly housed in rented facilities, will be replaced by three larger moderninstitutions with a combined enrollment approximately the same as in the fiveschools they will replace. The present three-year upper secondary trainingcourse will be continued but adapted to the new primary school curriculumand to more modern teaching techniques. In addition, a special one-yearpost-secondary course will be initiated for in-service training of unqual-ified teachers who now represent about 60% of the primary school teachingforce (Annex 3). The government intends to adjust the enrollments in thethree-year and one-year courses so that, beginning in 1975, about 600 wouldbe graduated annually from the longer pre-service course and 400 from thein-service course. Through this program, about 92% of the primary schoolteachers would be qualified in 1980. The project would include the construc-tion, furnishing and equipment of the three new primary teacher training in-stitutions envisaged in this program.

4.10 General upper secondary education will have to undergo a reform,particularly in view of the planned reforms of primary and lower secondary

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education. Curricula will have to be changed to be in accord with the intro-duction of new curricula at the lower levels. A balance between types ofcourses will have to be established offering a combination of technical andacademic subjects appropriate for the preparation of pre-university studentsand those who intend to enter employment directly after completion of second-ary education. Although this approach has been agreed on, there has been sofar no detailed planning for implementing it; furthermore, some of the plan-ning will have to wait until experience is gained from the reform of the lowerlevels. The proposed project therefore includes technical assistance to helpthe government in comprehensive planning for reform at the upper secondarylevel. In this there will be an emphasis on planning for technical education(paragraph 3.08).

4.11 An administrative group, the Education Center for Research and De-velopment, was established in April 1972, in consultation with Unesco to helpdevelop and implement the above changes. The Center, under the direction ofa well qualified director, deals broadly with questions concerning overallpolicy and planning of all levels except university education. It also col-laborates with other institutions working in planning related to education.The Center will continue to deal with the continuous revision and evaluationof curricula and examinations, development of school standa-rds and equipment,and development of educational materials such as teachers' manuals. Coordina-tion between the Center and the operational departments within the Ministryof Education is implemented through an Advisory Committee composed of theDirector of the Center and the Ministry's other department heads.

V. RATIONALIZING EDUCATION COSTS

5.01 General. Lebanon's national outlay on education and training ishigh for a developing country, amounting to 7.4% of GDP (1971). Privateresources, however, account for about 54% of this expenditure (Annex 5) whichare derived largely from school fees. About fifty percent of the pupils, whocannot afford to pay the usual private, primary school fees, pay lesseramounts and their schools receive an annual subsidy from the governmentthat covers about 41% of the difference; the balance is provided by the or-ganizations operating the schools. Some 90% of public expenditure on educa-tion is financed by the central government. Public primary schools arefree, but public secondary schools charge a nominal, annual fee of L*631(US$10). Over 75% of the Lebanese University budget is funded by thecentral government and the rest by student fees. Except for private univer-sity education, the amount of external financing is negligible.

5.02 Costs and Expenditure. Private schools fees are high, ranging fromLL251 (US$81) p.a. to LL630 (US$203) for the primary grades (in non government-aided schools) and from LE362 (US$116) to Li)1,000 (US$322) for the secondarylevel. With its present fee structure and enrollments, the private sectorcovers at primary and secondary levels that segment of the population who canafford to pay the annual fees and associated costs of private schooling. For

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this reason, there are severe limitations on private education's EaiL-ty toenroll in the future greater proportions of Lebanon's primary and lower sec-ondary age groups than it enrolls now. On the other hand, the government alsofaces financial constraints on its capacity to undertake the full burden ofexpansion in primary and lower secondary enrollments as planned (para. 4.07).

5.03 The low student-teacher ratio resulting from the small rented facil-ities (paragraph 4.03) combined with increases in rents, in teachers' sala-ries (which represent over 70% of recurrent costs) and in administrative ex-penses, caused recurrent costs per pupil in public primary and lower second-ary schools to increase at over 11% per annum during 1968-1971 (Annex 6).

5.04 Recurrent outlays on primary and lower secondary education absorbover 50% and 20% respectively of the Ministry of Education's expenditures(which, in turn, account for more than 93% of the central governments' totaloutlay on education). Due to the high recurrent costs of primary and lowersecondary schooling, together with enrollment growth and a sharp increase(14.6% per annum) in the amount of subsidy per student paid to private pri-mary schools, the central government's total educational expenditures quad-rupled between 1962 and 1971 (Annex 7). As the central government's totalexpenditures rose by only 7.2% per annum over the same period, education'sshare of total central government expenditures increased from 11% to 21%(Annex 7). If the government attempted to achieve the public school enrollmenttargets for 1980, while continuing the present practice of accommodating itsprimary and lower secondary school pupils in rented facilities, the Ministryof Education's recurrent expenditures in 1980 would absorb 40% of the government 'recurrent budget. Even with additional resources acquired from improvements tcthe direct tax system, which have already been initiated, it would be extremelydifficult for the government to allocate sufficient resources for either itsplanned expansions or future development of public education at higher levels,unless it could place its primary and lower secondary education on a moreeconomical basis than at present.

5.05 "Plan de Regroupement". The government has, therefore, planned asystematic rationalization of the network of school facilities at the primaryand lower secondary levels ("Plan de Regroupement"). Four hundred new primaryand 295 new lower secondary schools will be built under this program during1972-1980, many of them in rural areas. They will provide 225,000 new primaryschool places, of which 34% will replace rented space, and 197,000 new lowersecondary places, of which 33% will replace rented facilities (Annex 8). By1980, only 25% of the government's primary school pupils, and none of itslower secondary students, will be accommodated in rented facilities (Annex 8).The program wili allow for school facilities to be centralized within thecatchment areas, for teacher/pupil ratios to improve up to 1:35 in primaryand to 1:30 in lower secondary schools, for more efficient use to be madeof teachers, for considerable public budget savLngs to be realized in rents,and thus for substantially lower recurrent costs per pupil to government thanwould otherwise be possible. By 1980, the recurrent cost per governmentpupil at constant prices will be LE387 (US$124) at the primary level andLU409 (US$132) at the lower secondary level, as compared with LU616 (US$198) 0

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per primary school pupil and LW742 (US$239) per lower secondary school pupilin rented facilities in that year (Annex 9). Seventy-six percent of the dif-ference between the costs of catering for students in new schools and inrented facilities would represent savings in direct teacher costs and 24%would represent savings in rents. The new costs, moreover, would allow forincreased allocations for didactic materials and supplies. Under this Planby 1980, the government will save approximately L6144 million (US$46.3 mil-lion) per annum in recurrent budget outlays for primary and lower secondaryeducation (Annex 9). Despite higher student-teacher ratios, no employmentdifficulties are foreseen for teachers within the framework of an-expandingeducation system.

5.06 The proposed project would assist the government in the initialphase of the "Plan de Regroupement," by including 39 primary and 24 lowersecondary schools. These would represent 14% and 7% of the enrollment capac-ity to be built for the two levels respectively under the "Plan" by 1980.The project schools would be the first to be built under the "Plan" and wouldbe located to serve as model schools for the programming, planning, construc-tion and equipping of the other new schools in the rationalization program.

5.07 Because of the difference between the costs per pupil in the projectschools and in rented facilities, the project's primary and lower secondaryschools would constitute a sound investment. The difference between the costs(capital and recurrent) of catering for 24,240 primary school students in the32 project primary schools that will replace rented facilities would amount to0 a savings for the government of US$1.1 million annually. Without taking intoaccount the educational benefits to be realized from the expected upgrading ofacademic standards (which are too difficult to quantify), and consideringthese annual savings as the only quantifiable benefits, the rate of financialreturn on the investment by the government in the project's 32 primary schoolswould be 21.5% over a 15-year period (Annex 10). The rate of return on thelower secondary schools would be 24% (Annex 11).

5.08 Projection of Government Expenditures in Education. Future expendi-tures on education (Annex 12) are expected to grow at about 10% per annumover the period 1971-1980. By 1980, recurrent expenditures on education areexpected to absorb about 24% of current government revenue and 26% of thetotal recurrent outlays made by the Central government, compared with 21%and 23% respectively in 1971 (Annex 9). Whereas in the past, capital ex-penditures seldom amounted to more than 4% of the Central government's an-nual expenditure on education, they will amount to over 10% per annum duringthe forecast period. Of the LE314.4 million in capital funds to be investedin education by 1980, L1276 million will be spent on the "Plan de Regroupe-ment," mostly during 1972 through 1977, and the rest will finance new facil-ities for technical and academic education at the upper secondary level.The total investment in education will represent 21% of the Central govern-ment's overall investment program during 1972 through 1980.

.

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5.09 The annual recurrent costs of all the proposed project institutionswould be about 6.8% of total projected recurrent expenditures on education by1980. The capital expenditures on the project schools would amount to lessthan 15% of the projected capital expenditures on education during the 1972-1980 period. Because of the high priority which the government has assignedto this program, the government can be expected to allocate this share of itsresources to education.

VI. THE PROJECT

General

6.01 The proposed project would assist the government in implementingits development program for primary and lower secondary education. The pro-gram is aimed at replacing rented school facilities by appropriate structuresin order to (i) reorient the school system along more practical lines;(ii) equalize education opportunities; (iii) consolidate school facilitiesand (iv) economize on educational recurrent cost. The project would alsoassist the government's development program by replacement of facilitiesfor primary teacher training and improvement of facilities for lower second-ary teacher training. Technical assistance would be included in the projectin order to assist the government in replanning of upper secondary educationto prepare for reform at this level of education.

6.02 Specifically the project would include: (a) construction or im-provement, equipment and furnishing of the institutions listed below; and(b) 2 man/years of technical assistance.

Total Annual Teacher'sItems Grades Capacity Output Requirements

A. New Construction, Equipmentand Furniture:

39 Primary Schools Pre- 30,960 5,000 848School+ 1-5

24 Lower SecondarySchools 6-9 14,400 3,200 464

3 Primary Teacher 10-12 650Training Institutes 13 2,280 320 102

B. Improvement of Facilities,Equipment and Furniture

One Lower Secondary TeacherTraining Institute 15 380 380 35

No boarding accommodations or staff houses would be required.

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Primary Schools

6.03 The project schools would make possible the replacement of about24,000 primary school places in rented facilities and the absorption of about7,000 students who would otherwise be in low-quality government-aided privateschools. The project would contribute a capacity of student places equiv-alent to about 9% of total public primary school enrollments by 1980. Five

; of the new schools would serve as demonstration schools for the three primaryteacher training institutes included in the project.

6.04 The schools would be of three different sizes - enrollments of 240,480 and 960. In accordance with the government's education strategy, theprimary schools would follow new curricula and include modern foreign lan-guage, modern mathematics and science. The schools would also offer prac-tical activities such as simple woodwork and sewing. The schools wouldserve as model institutions for demonstrating the application of the newcurricula and the use of new teaching methods and media to teachers inneighboring primary schools (para. 4.08).

Lower Secondary Schools

6.05 All project school places would replace rented facilities. Theschools would be of three different sizes - with enrollments of 320, 560 and1,120 - and would contribute school capacity for about 5% of the total lowersecondary school enrollment by 1980. The curricula would include a commoncore of academic subjects (about 85%) and optional practical subjects forall students. Ten of the schools, located in agricultural regions, wouldoffer agriculture as options and all schools would have home economics, wood-work and metalwork. The schools would serve as demonstration schools fornew teaching methods and the use of new media and curricula. The new cur-ricula would require revision of the existing _examinations and for thatreason the government has provided an assurance that the lower secondaryschool examinations will be revised not later than December 31, 1976 inorder to be consistent with the new curricula (para. 4.08). In view of theimportance of educational and career guidance for students in the new system,the government has enacted supporting legislation to ensure that appropriatetraining programs for guidance and counselling will be organized for a minimumof 100 teachers during the project implementation period.

6.06 Both primary and lower secondary schools would be located in ruraland urban areas with different population patterns. Schools with the sameenrollments would have identical accommodations but the designs would beadapted to local topographical and climatic conditions.

6.07 As the government has limited experience in school building, theconstruction of the project schools is expected to exert a strong influenceupon future construction included in the rest of the rationalization program.Consequently, the proposed project schools would be expected to make a sub-stantial contribution for refining planning norms, setting space standards,

- 14 -

establishing technical and fiscal controls for construction and in relatingfacility planning to curricula development and new teaching techniques. Thzeconomies realized in the design and construction of the project primary analower secondary schools will also be of benefit to the planning and buildingof all the other schools in the government's program (para. 5.06).

Primary Teacher Training Institutes

6.08 The three niew primary teacher training institutes form part of thegovernment's program to upgrade and modernize its primary teacher trainingsystem (para. 4.09). The institutes would offer 3-year pre-service coursesat upper secondary level and 1-year upgrading courses for unqualified primaryschool teachers who have graduated from upper secondary level education.Each institute would enroll 650 pre-service and 110 in-service students.The institutes would also be used for in-service training of teachers andschool administrators during vacation time.

6.09 New curricula, to be introduced in all primary teacher traininginstitutes in the country, will be first introduced on an experimentalbasis from 1973 in two existing government institutes. The programs willbe adapted to the new primary school curricula. All pre-service studentswili have a common course during all three years but in the last year willhave an option to specialize for about 40% of the time in general subjects,foreign language or fine arts. The 1-year course students will receiveeducation mainly in Arabic, pedagogy and psychology and specialize in generalsubjects or languages.

Lower Secondary Teacher Training Institute

6.10 This item would comprise the provision of equipment and furnitureand the renovation of an existing school building to be used for traininglower secondary school teachers in social science and modern languages.

6.11 During their first two years in the program, students would enroliin the respective faculties of the Lebanese University to study the subjectmatter which they would later teach. In the third year, the last year of thecourse, students would be enrolled in the project institute to study pedagogy,methodology, psychology, and audio-visual aids and to practice teachingin local lower secondary schools. The training of teachers in foreign lan-guages and social science will start in provisional facilities in 1972 (para.3.05) and the students will be transferred to the project school as soon asthe facilities are available.

6.12 The institute would be used dur'-ng weekends and vacation time forin-service training of directors of education, school inspectors and lowersecondary school teachers of general and practical subjects. These shortcourses would concentrate on education policy and the use of new teachingmethods and media. The implementation of the in-service training plan hasbeen authorized under recently enacted legislation and course programs havealready started. The plan is that, over a five-year period, all schooladministrators and teachers will receive such short in-service trainingcourses related to the new lower secondary school curriculum.

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6.13 During negotiations, the government provided an assurance thatrevised curricula for primary education, lower secondary education and primaryteacher training and new curricula developed for lower secondary teacher train-

* ing (social science and modern languages) will be made available to the Bankfor comments not later than December 31, 1974.

Technical Assistance

6.14 The government intends to reform upper secondary education (para.4.10). Competent manpower is available in the country to undertake thenecessary studies to accomplish the major burden for planning this reform;however, some short term specialists' services would be included to assistthe government in this effort. Special attention would be given to thecapacity and content of technical education and related teacher training.

6.15 During negotiations, it was agreed that the following expert serviceswould be provided within the project for periods ranging up to the following:

Man/Months

(i) Education planning and administration 8

(ii) Education economics and manpower 6

(iii), Technical education 6

(iv) Education statistics 4

Total Man/Months 24

6.16 All experts provided within the project would be agreeable to theBank and would be employed on terms and conditions acceptable to the Bank.

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Cost of the Project

6.17 The estimated costs and foreign exchange components of the variouselements of the project are summarized as follows:

Lebanese Pounds (000) U.S. Dollars (000)% of

Local Foreign Total Local Foreign Total To-.

Primary Schools (39) 13,352 7,361 20,713 4,213 2,447 6,660 53.0

Lower SecondarySchools (24) 8,039 6,718 14,757 2,505 2,240 4,745 38.0

Primary TeacherTrainingInstitutes (3) 1,630 1,060 2,690 524 341 865 6.9

Lower SecondaryTeacher TrainingInstitutes (1) 218 311 529 70 100 170 1.3

Technical Assistance 62 249 311 20 80 100 0.8

Sub-Total 1 23,301 15,699 39,000 7,332 5,208 12,540 100.0

Physical Contin-gencies 1,919 1,297 3,216 617 417 1,034 8.2

Price Increase 4,151 2,989 7,140 1,335 961 2,296 18.3

Sub-total 2 6,070 4,286 10,356 1,952 1,378 3,330 26.5

Total Project Cost 29,371 19,985 49,356 9,284 6,586 15,870

6.18 A breakdown of projected expenditures is given in Annex 13. Con-struction of the school buildings would account for 62% of total projectcosts; site development 9%; furniture 9%; equipment 14%; architectural andengineering services 5%. Technical assistance would account for less than1% of project cost. Space allowances are well within the range of those forcomparable schools in other Bank Group financed projects, while allowingnecessary flexibility for the adoption of modern teaching methods. Construc-tion cost at an average of US$59 per square meter is low by world-wide stand-ards, reflecting austerity of design criteria, relatively low labor costs,and maximum use of locally produced building materials. Capital costs perstudent's place are below the median of similar Bank Group financed project(Annex 14).

0

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6.19 Cost estimates for site development, construction and related pro-fessional services include contingency allowances of 10% and for equipment5%, to cover unforeseeable physical requirements. Based upon an averageannual construction price increase of 6% over the past five years, an addi-tional contingency of 18% would be provided for the period required to com-plete construction. This percentage would also apply to site developmentand related professional services. Furniture costs have increased at therate of 6.2% per annum, and equipment at 7%. Applied over the implementationperiod, these price increases would amount to about 15% and 16% respectively.Technical assistance cost escalation is estimated at the combined rate ofabout 4% per annum for local and foreign cost requirements, giving a total ofabout 6% over the period of these services. Total contingency allowanceswould thus amount to 26.5% of estimated project costs without contingenciesor 21% of total costs including the contingencies (Annex 15).

6.20 The foreign exchange component would be about 42%, or approximately$6.6 million, and has been estimated as follows: (i) civil works, 35%; (ii)equipment 100%; and technical assistance, 80%.

VII. IMPLEMENTATION

Administration

= 7.01 A Project Unit would be established within the Conseil Executif desGrands Projects (CEGP) to be responsible for the implementation of the project,coordination of activities with the Ministries of Education and Public Works,other government and private bodies, and liaison with the Bank. The CEGP andProject Unit would have subsequent responsibility for the completion of theschool construction program (Plan de Regroupement), of which the Bank projectforms a part (para. 5.05).

7.02 The Project Unit would consist of: (i) a project unit director,who would be responsible directly to the Director of the CEGP; (ii) an architect;(iii) an educator; (iv) a specialist from the Ministry of Planning; and (v)a furniture and equipment procurement specialist. The first four officerswould be appointed on a full-time basis in consultation with the Bank. Appoint-ment of the above officers and the establishment and operation of the ProjectUnit, provided with adequate accounting and procurement services, supportingstaff and facilities would be a condition of effectiveness of the loanagreement.

7.03 Educational aspects of the project and the preparation of equip-.ment lists would be supervised by the Project Unit in close cooperation withappropriate departments of the Ministry of Education. Design of all schoolsand supervision of construction would be performed by consultant architects,agreeable to the Bank, and appointed on terms and conditions acceptable tothe Bank.

0

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Procurement

7.04 Civil works and equipment supply contracts would be awarded underinternational competitive bidding in accordance with the Guidelines for Pro-curement under World Bank loans. The construction industry in Lebanon hassufficient capacity, and intense competition for civil works contracts isexpected. Local manufacturers submitting preferred domestic bids for equip-ment would be allowed a preferential margin of 15% of the c.i.f. costs ofcompeting imports, or the generally applicable import duty, whichever islower. Lebanon has no preferential tariff arrangements with any country.Items would be grouped to the extent practicable to form sizable bid packagesand to permit bulk procurement. The Project Unit would be responsible forpreparing and issuing tenders, evaluating bids, and awarding the contracts.Detailed master lists of furniture and instructional equipment would be sub-mitted for Bank review prior to procurement.

7.05 Project furniture would be purchased on reserved procurement, asrequested by the government, and would not be financed under the proposedloan. Lebanon has a furniture manufacturing industry adequate to meet therequirements of the project.

7.06 Of a total of 66 new schools, sites have been designated for 32,and are presently in the process of acquisition. Thirty-four sites stillremain to be proposed by the local (municipal) authorities, approved by theCEGP and Ministries of Public Works and Education, and formally acquired.The government has provided an assurance that all sites, agreeable to theBank, will be acquired prior to the scheduled start of construction.

Disbursements

7.07 The proceeds of the proposed loan would finance the foreign ex-change cost of technical assistance, the CIF cost of imported equipment,or 100% of ex-factory cost of such equipment if locally manufactured, and35% of total expenditures for construction and site development, which re-presents their foreign exchange component. This latter percentage would beadjusted as required to spread disbursements over the implementation period.Construction would be completed within three and one-half years of the dateof the loan agreement (Annex 16). The schedule of estimated disbursements isshown in Annex 17. Utndisbursed funds would be available for reallocation.

VIII. AGREEMENTS REACHED AND RECOMMENDATION

8.01 During negotiations, agreement was reached on the followingprincipal points:

Mi) a new examination system adapted to the new lowersecondary school curricula will be introduced not laterthan December 31, 1976 (para. 6.05);

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(ii) curricula for the project schools will be made availableto the Bank for comment not later than December 31, 1974(para. 6.13);

(iii) technical assistance experts agreeable to the Bank will beappointed on terms and conditions acceptable to the Bank toassist the government in planning reforms of upper secondaryeducation (paras 6.14 and 6.16); and

(iv) sites, agreeable to the Bank, for all project institutionswill be acquired prior to the scheduled start of construc-tion (para. 7.06).

8.02 Conditions of effectiveness:

(i) appointment of a full-time Project Director, Project Educator,Project Architect and specialist from the Ministry of Planningin consultation with the Bank (para. 7.02); and

(ii) establishment and operation of an adequately staffedProject Unit in satisfactory premises (para. 7.02).

8.03 The project is suitable as a basis for a Bank loan of US$6.6 mil-lion equivalent to the Government of Lebanon for a term of 25 years includinga grace period of five years. The loan, which would finance foreign exchangecosts, and the ex-factory cost of locally produced equipment, would be equivalentto about 42% of the estimated project cost.

APPENDIX IPage 1

EDUCATION AND TRAINING

General

1. Access to education is guaranteed to all citizens of Lebanon bylaw. But the government itself is in charge of only a small part of theeducation system. The private sector dominates; in 1971 about 62% of allstudents were enrolled in private institutions. The government cateredfor only one third of the primary education, less than half of secondaryeducation and one fourth of higher education. The private schools areowned by churches, private institutions and private individuals, who runthe schools on a profit making basis.

2. The students in government schools are almost entirely taughtin privately owned, rented school facilities; 85% of the primary and alllower secondary school students were taught in privately owned buildingsin 1971. In order to help students from low income families, who cannotafford high tuition fees, the government gives annual grants, based onthe number of students enrolled, to private schools (prive subventionne)which thus can give education at reduced fees.

Planning and Administration

3. Planning of government primary education and secondary academicand technical education and training are the responsibility of the Ministryof Education in cooperation with the Ministry of Planning. Other Ministrieshave training courses only on a very limited scale. Each of the fiveregions of the country has a Regional Planning Office closely attached tothe Ministry of Planning. In this office is integrated a Regional Office ofEducation. The Office of Education is the link between the local schoolauthorities and the Ministry of Education but does not have authority to makedecisions. All decisions are made in the Ministry of Education.

Supervision

4. Supervision of government and government-aided primary schoolsin the region is carried out by the staff of the Regional Office ofEducation, but all supervision of secondary level education is attachedto the Ministry of Education. The supervision system does not coverprivate schools.

Strategy for Educational Development

5. The long term development of education as reflected in the 6 YearPlan 1972-77 and policy statements by the Minister of Education calls for:

(i) consolidation of government primary and secondary educationm and more efficient use of teachers and school facilities;

APPENDIX IPage 2

(ii) gradual transfer a larger share of responsibility for primaryand secondary education from the private to the governmentsector;

(iii) introduction of 10 year basic comprehensive education for allchildren within the framework of a 6-year primary and a 4-yearlower secondary course;

(iv) reform and coordination of all second level academic andtechnical education;

(v) improvement of teacher training for primary level education,introduction of teacher training for lower secondary education,and expansion and improvement of teacher training for academicand technical education on upper secondary level;

(vi) introduction of the use of new media in education; and

(vii) reform of the administrative system on central and local levels,and introduction of an institution for continuous educationalresearch and development of the education system.

6. No fixed period of time has been determined for the implementationof the above long-term policy. However, part of it is already under imple-mentation in accordance with the 6-year development plan 1972-77. Arationalization plan (Plan de Regroupement) for primary and lower secondarylevel education has been established as a first step. The Plan calls fortotal enrollments to expand to 95% and 65% of the primary and lower secondaryage group respectively from 1972-80. During the period 1972-80, 225,000primary and 197,000 lower secondary school places will be constructed ofwhich the Bank project would form a part. 65% of the new primary schoolplaces and all the new lower secondary school places will replace rentedfacilities. The present teacher-pupil ratio of 1:18 in rented facilitieswill be improved to about 1:30 in the new lower secondary schools and 1:35in primary schools and create substantial savings in rents and more efficientuse of teachers. Planning and reform of upper secondary level education willstart soon.

Administrative Reform

7. Three directorates of the Ministry of Education administer differentlevels and types of education. However, an administrative reform is underdiscussion and is planned to follow the reform of the primary and lowersecondary school system. With the introduction of a comprehensive type ofschool there will be need to divide the different departments according tofunction. The full administrative reform will come when the comprehensivecurricula have been in effect for some time, and a better judgment can bemade from experience concerning organization of the Ministry and consequentlyof the regional and local administration.

APPENDIX IPage 3

8. The reform of the education system, however, will create demandfor continuous planning, evaluation and revision of activities. For thatreason, the Educational Center for Research and Development was establishedin consultation with Unesco in April 1972. The Center is administered by adepartment of the Ministry of Education and Fine Arts. Coordination betweenthe Center and the educational administration of the Ministry is carried outthrough an Advisory Committee composed of the Director of the Center and theother department heads in the Ministry. The Committee, which is under theChairmanship of the Minister of Education, gives opinions on the decisionsof the Center, when requested by the Minister or submits recommendationsconcerning work connected to the functions of the Center.

9. The Center deals with questions concerning overall policy andplanning of all education except university education. It also collaborateswith other institutions working in the field of planning related to education.More specifically the Center will deal with continuous revision and evalua-tion of curricula and examinations, development of school standards andequipment, development of educational documentation such as teachers' manualsand other documentation to support a successful implementation of the reformmeasures.

10. The Center has already developed close links with the teachertraining institutions. The Center is expected to have an impact on the re-form of the country's education development and successful implementationof the reform plans.

The Structure

11. The school system provides for five years of primary education,normally beginning at the age of six. Most students spend 1-3 years inpre-primary education before entering the primary schools. General secondaryeducation is offered in a 4-year lower and a 3-year upper cycle. Secondarytechnical education and training is offered mainly on upper level in coursesof up to four years. Higher education is offered in universities in coursesof normally 4-5 years and in teacher training and technical institutions.

Primary Education

12. Primary schools enrolled about 515,000 students in 1971 of whichabout 193,000 (37%) were in government schools, 164,000 (32%) in privateschools and 158,000 (31%) in government aided private schools. 109.5% ofthe age-group 5-10 years was enrolled; of that about 31% are estimated tobe above the relevant age group. The low efficiency of primary educationis evident by the fact that only about 65% of the students complete theireducation. A student spends as an average twelve years in school to completethe 5 year course. The percentage of overaged students is expected to de-crease during the 70's partly because increasing numbers of children tendto start school at normal age, partly also because the tests which students

APPENDIX IPage 4

earlier had to pass every year and the primary school final examinationafter grade 6 were abolished two years ago. The primary system is nowgeared to automatic promotion even if the student capacity does not at presentallow for a full implementation of this approach. The majority of the govern-ment primary schools accommodate 100 to 200 students and the private schools300 to 400 students. The language of instruction is Arabic, but there areprivate schools which use French or English. The curricula are academic incontent. The teaching methods are as a rule traditional, partly dependingon the fact that only a small proportion of the teachers have adequatetraining but also because of inadequate school facilities. The governmentplans to introduce new curricula, which are already available in draftform. They will include French or English as a second language and modernmathematics and will give more attention to natural science and other environ-mental oriented subjects. The intention is to give education, xwhich willbetter serve both students who terminate their education after primaryeducation for employment and those who continue to further education ortraining on secondary level.

13. By 1980, projections are that about 95% of the relevant age groupwill be enrolled in primary education. The planned development of enrollmentduring 1971-80 is shown in the following table:

1971 1980 _No. % No. _____

Primary Level

Public 192,518 37.4 340,000 54.3

Private Aided 158,455 30.8 165,000 26.4

Private Non-Aided 163,729 31.8 121,000 19.3

Total 514,702 100.0 626,000 100.0

% Age-group Enrolled 78.5 95.0

(excluding 31% over aged)

Lower Secondary Education

14. Lower secondary education enrolled 128,600 students in 1971; whichrepresented 50% of the age-group 11-14 years. 51.6% of the students wereenrolled in government general and 45.5% in private general education.About 15% of the students were estimated to be overaged. The averageenrollment,of the government and private schools was about 250 students.The basic language of instruction is Arabic but in many schools scienceis taught in English and social science and mathematics in French. Thecurricula are academic in content and oriented to further academic studies.About 65% of primary school leavers entered lower secondary education in

APPENDIX IPage 5

1970. The dropout rate appears to be low. About four students out of fivecomplete the 4-year course and almost all lower secondary school graduatescontinue to upper secondary education of different kind and length. Theefficiency, however, is not as good as it appears in statistical termsbecause of repetition. A lower secondary school student needs 6.5 years asan average to complete the four year course.

15. Lower secondary education is offered to about 56,000 of thegovernment students in primary schools. These schools are called "ecolescomplementaires" and are in many cases badly equipped and lacking laboratories.The teaching is done in most schools by primary school teachers lackingadequate teacher training for the secondary level. About 9,000 of thegovernment school students are taught in upper secondary schools by theupper level teachers. There is an obvious difference in quality of educationbetween the "ecoles complementaires" and lower secondary education offeredin the upper secondary schools even if the curricula are the same. With thegrowth of enrollments on upper secondary level, the 9,000 student places nowoccupied by lower level students will gradually be taken over by upper levelstudents. The same thing will happen in primary schools where the places nowoccupied by lower secondary schools students will be taken over by primaryschool students. Lower secondary school curricula and the examination systemare under revision and will be introduced as soon as suitable school facilitiesare available. The curricula will include a broad common core of academicand optional practical subjects. They will provide a better base of generaleducation for all students in order to make them more adaptable to furthertraining and employment needs and to help them defer decisions on career andstudy programs to a later age. Guidance and councelling services will beoffered to the students on lower secondary level so as to assist the studentsin the choice of courses appropriate to their abilities and future prospects.

16. The government plans to enroll about 65% of the age group 11-14years in lower secondary education by 1980. The planned development ofenrollments is shown in the following table:

1971 1980No. % No. %

Lower Secondary

Public 65,150 52.7 197,000 67.4

Private 58,487 47.3 95,300 32.6

Total 123,637 100.0 292,300 100.0

% Age-group Enrolled 35.0 65.0

(excluding 15% over aged)

APPENDIX IPage 6

Upper Secondary Education

17. Upper secondary education enrolled about 53,300 students in 1971equivalent to about 32% of the age group 15-17 years. At this level therewere general secondary schools, technical schools and primary teacher train-ing institutes. 71% of the students were enrolled in private institutions.Of the total enrollments 26% were enrolled in technical education. Bothacademic and technical schools are overly academic and traditional in contentpromoting psychologically an orientation by all students towards white collarwork. Technical education facilities are under expansion but no firm plansas to the use of the facilities are available.

18. In 1971 general secondary schools enrolled about 36,200 studentsequivalent to about 22% of the age group 11-14 years. About 70% of thestudents attended private schools and the rest government insitutions. Asin the case of the lower secondary schools, Arabic is the language ofinstruction but English and French are frequently used for teaching insubjects like science and social science in order to better prepare thestudents for future functions in the Lebanese society and for higher education.

19. Revision of the curricula, which are academic in content, is neededand this will be still more necessary after the introduction of new curriculaon lower levels. For that reason, and as a second step following reform ofprimary and lower secondary level curricula, the government intends to re-form curricula on upper general secondary level as a part of the overallreform of upper secondary education.

20. The enrollments in public technical secondary schools under theMinistry of Education have increased rapidly during the recent years. Atpresent, there are about 2,400 students in 13 schools, but the totalcapacity is 3,500 student places. Moreover, 2,450 student places are underconstruction in seven new schools or extensions.

21. Vocational or lower secondary technical schools offer two-yeartechnical courses leading to CAP 1/ or BP 2/. In 1971-72, there were about800 students in seven schools, mostly at BP-level. These courses are notvery popular and therefore they are being gradually phased out; CAP courseswere already discontinued in 1971 in all public technical schools exceptin Hermel where the low educational level of the students does not yetjustify BP courses.

22. At the upper secondary level, the former 4-year course, leading tothe diploma of "Baccalaureat Technique", was divided in 1967 into two partsof two years' duration, called BT1 3/ and BT2 4/. In 1971-72 there were

1/ CAP = Certificat d'Aptitudes Professionnelles (Grades 6-7)2/ BP = Brevet Professionnel (Grades 8-9)3/ BT1 - Baccalaureat Technique lere Partie (Grades 10-11)4/ BT2 = Baccalaureat Technique 2 eme Partie (Grades 12-13) _

APPENDIX IPage 7

about 1,800 students in eleven schools, two-thirds of them at BT1 level.Almost 90% of the successful graduates from BT1 level continue their studiesat BT2 level. In order to reduce the pressure on BT2 course, a new terminal3-year course, called FPM 1/ was introduced in 1971 parallel to the BT1course, to give academically less gifted students more practical training.It is expected that about 80% of the students will take the FPM course andonly 20% will continue to BT2 courses.

23. Technical upper secondary schools are normally well equipped, buttoo little time is devoted to practical training. Therefore, the trainingprograms do not adequately prepare the students for employment in industryand construction, where shortages of technical skills are most acute. Moststudents consider technical schools as another avenue of education in whichthey prefer to stay as long as possible.

24. The private technical secondary education, which is mainly com-mercial, is by large part not controlled by the government, although theinstitutions have to respect the official programs, and the students haveto take the examinations organized by the Directorate of the Technical andVocational Education in order to receive the official'diploma. The schoolsare not allowed to issue any certificates of their own. In 1971-72 therewere 275 private technical schools with a total enrollment of over 16,000,but only about 800 students passed the government examinations. No informationis available on the level and the length of the courses.

25. The Technical Secondary School of Agriculture at Fanar, under theMinistry of Agriculture, offers 3-year courses in Agronomy and AnimalHusbandry. The annual intake is 30 students. Of the graduates, 70% work foror collaborate with the Ministry of Agriculture or the autonomous agriculturaloffices, 5% work in the agro-business, 15% work in the private sector and10% continue their studies in universities abroad.

26. The Ministry of Agriculture operates also three AgriculturalVocational Schools, which offer practical courses of ten and a half months'duration. The total enrollment is about 120.

Primary Teacher Training

27. Seven primary teacher training institutes offer a 3-year courseon upper secondary level. In 1971 the enrollment was 3,200 and the outputabout 750. The teacher:pupil ratio was 1:18. Five of the institutionshad rented inadequate facilities whilst two institutions were governmentowned and of acceptable quality. The rented low quality facilities will bereplaced by three new institutions. The number of primary teacher traininginstitutions would thus be five by end of about 1977 offering 3-year pre-service courses and 1-year upgrading courses for unqualified teachers.

@ 1/ FPM - Formation Professionnelle de Maitrise (Grades 10-12)

APPENDIX IPage 8

28. The existing teacher training capacity is sufficient in terms ofnumbers but inadequate in quality for primary school teachers to teach ina reformed primary school program. For that reason the government intendsto introduce new revised curricula in the teacher training institutes assoon as adequate facilities are available. The new curricula will be relatedto the reformed primary school curriculum and thus include foreign languages,more science and better instruction on teaching methods and the use of newmedia. The students in the 3-year course will have a common core of subjectsduring all three years, but will in grade three have an option to specializefor 40% of the time in general subjects, foreign languages or fine arts..

29. In 1970 about 3,300 or about 40% of all primary school teacherswere qualified. The total number of teachers needed in government schoolsby 1980 will be about 11,000, a net increase of about 6,800. 92% of theteachers would be qualified by 1980.

Lower General Secondary Teacher Training

30. There was no special teacher training program organized forteachers in lower general secondary schools until 1971. In 1971 about1,000 teachers in lower secondary schools were considered qualified;equivalent to about 25%. These teachers were also qualified for teachingat upper secondary level and did part of their teaching in upper secondaryschools.

31. In 1971 the government in cooperation with UNDP/Unesco starteda 3-year third level program for training of science teachers in the oldfacilities of the Faculty of Science of the Lebanese University. Thisprogram is expected to meet the demand for about 1,500 science teachers by1980. Training of about 3,000 teachers for social science and languagesis also needed over the same period and will start in provisional facilitiesduring 1972. These teacher trainees will devote their first two years toprofessional study of subjects in which they later will teach. The thirdyear will be devoted to pedagogy, methodology, psychology, audiovisual aidsand other subjects related to practical teaching activities as well as appliedteaching in lower secondary schools. The curricula for lower secondaryteacher training will be designed to prepare the trainees for work in thereformed lower secondary schools.

32. By 1980 about 65% of the teachers in general subjects would betrained considering planned expansion of enrollments and teacher trainingprograms.

UpDer SecondarV Teacher Training

33. Teachers in upper secondary schools have a university degree andteacher training carried out in short courses by the universities. Lessthan 25% of the teachers in upper general secondary schools are estimated tohave some kind of teacher training. The teacher training at this level

APPENDIX IPage 9

will be-in accordance with the government's overall strategy for reform ofthe secondary school system - expanded and organized in a national systemrelated to the need of the school system.

Technical Teacher Training

34. The Institut Pedagogique National de l'Education Technique (IPNET)was established in 1964 with the technical assistance from UNDP/Unesco.Unfortunately, the enrollment and the output of this insitute remained muchless than foreseen in the Plan of Operation because of the complicated andslow procedure involved in recruiting students. Only 47 new technicalteachers graduated from the two-year courses between 1965 and 1969, and44 existing teachers participated in short-term in-service training courses.Finally the lack of students led to closing of IPNET in 1969.

35. In 1971 there were 186 full-time and 460 part-time teachers in thegovernment technical schools. The part-time teachers were equivalent toabout 180 full time. About 50% of the full-time teachers were adequatelytrained. IPMET will be reopened in 1972 in order to make an effort to meetadditional need for teachers in the existing institutions and the institutionsunder construction. The total number of teachers needed when the schoolsunder construction are in full operation by 1975 is estimated to be about 700.

Higher Education

36. Beirut is the center for higher education in the Middle East.The number of students enrolled was 41,700 in 1971; 19,650 or 47% wereLebanese representing 8.6% of the age group 18-22 years. In additionabout 6,000 Lebanese students were enrolled in universities abroad. Thegovernment caters for 11,688 students or about 28% of the enrollments inLebanese institutions. About 28% of the students were enrolled in technical,science and science related faculties.

37. The Technical Institute and the Tourism Institute are both locatedin the former technical teacher training institute. The Technical Instituteoffers two-year courses at post-secondary level and has an enrollment ofabout 100 students in engineering. The first group of 20 Higher Technicians(Technicien Superieur) graduated in 1971 and had difficulties in findingsuitable employment, as the government had not fixed their salaries as com-pared to the engineers' salaries. The Tourism Institute, which started in1971 as an UNDP/ILO project, gives 2-3 year courses at upper secondary andpost-secondary levels. It has about 100 students, but the enrollment isexpected to reach 250. Seven private post-secondary technical schools havea total enrollment of about 500, mainly in Accountancy and Management.

Non-Formal Education

38. Non-formal vocational training is the responsibility of theMinistry of Labor, which established a National Vocational Training Center

APPENDIX IPage 10

in 1961 with the technical assistance from UNDP/ILO and in cooperationwith the Association of Lebanese Industrialists. Since 1964, the Center hasbeen located in the workshops of the School of Arts and Trades. It hasfive sections: General Mechanics, Welding, General Electricity, IndustrialElectricity and Watchmaking. The duration of training is 5 months exceptin watchmaking, which is one year. So far the Center has trained 1,117workers; about 8% of them were employed workers and 92% unemployed youths,all of whom have been employed after training. The number of applicationsis about double the intake. A new vocational training center is plannedto be established later at Cheka, about 20 kilometers south of Tripoli.There is also a plan to organize short-term upgrading courses in the exist-ing technical schools, but it is not yet clear how the responsibilitieswould be divided between the Ministries of Education and Labor.

Radio and Television

39. Mass media are not used for educational purposes more than on anad hoc basis. However, Lebanon has, with its well developed televisioninfrastructure covering practically the whole country, possibilities tointroduce the use of mass media in education at low cost. The governmentis therefore considering introducing mass media as a means of instructionand for introducing the new curricula at primary and lower secondary levelsand for in-service training of teachers. However, no plans are availableso far.

APPENDIX IIPage 1

EDUCATION COSTS AND FINANCES

General

1. Lebanon's total expenditure on education and training amounts to7.4% of GDP (1971). Private resources account for 54% and public sources,

- predominantly the Central Government, finance the rest of this outlay. Theamount of external financing, except for private university education, isnegligible.

Private Finance

2. That 63% of all primary and 55% of all secondary students attendprivate religious and non-denominational schools indicates further theimportance of privately sponsored education in Lebanon. Roman Catholicschools cater for 43% of all private school pupils; other denominations,mainly Moslem, cater for 18% and private profit-making interests cater forthe remaining 39%.

3. All private schools charge tuition, which is their main sourceof recurrent financing. Capital financing, for the denominational schools,is derived from the denominations' own resources. 50% of the pupils attend-ing private primary schools, who cannot afford to pay the usual fees, paylesser amounts and their schools receive an annual subsidy from the govern-ment that is currently fixed at LL90 per pupil. This grant covers about40% of teachers' salaries. Most of these subsidized, private primaryschools are owned and operated by the Roman Catholic Church and the othersare owned and run by non-denominational interests.

4. The tuitions charged by private schools have increased rapidlysince 1960. As a result, increasing numbers of parents have been forced tosend their children to the less expensive, government subsidized, privateprimary schools, and enrollment in the latter grew from less than a quarterto one half of total private primary enrollments during 1960-1971. In-creases in tuition have also resulted in mounting demands being placed uponthe government to expand its own provision of free, public education bothat the primary and at the lower secondary levels.

5. Private school fees are high. They range from LE251 (US$81) p.a.to LI630 (US$203) for the primary grades (in non-aided schools), fromLL362 (US$116) to LU825 (US$265) for the lower secondary and from LB551(US$117) to L1000 (US$322) for the upper secondary level. In additionto these fees there are associated costs, borne by private households, ofstudent transport, textbooks, schools meals, etcetera. Studies by bothgovernment and private education authorities clearly indicate that, withits present fee structure and enrollments, the private sector now coversat primary and secondary levels that segment of the population who can affordto pay the annual fees and associated costs of private schooling. Forthis reason, it is unlikely that private education could enroll in the

APPENDIX IIPage 2

future greater proportions of Lebanon's primary and lower secondary agegroups that it enrolls now.

Public Finance

6. Over 80% of public expenditure on education and training consistsof recurrent outlays made by the Ministry of Education. But the Ministryis not responsible for school construction which is undertaken by theMinistry of Public 1Works. Contributions made by municipalitles, for schoolbuilding rental payments and for furniture and equipment, are relativelyinsignificant.

7. Government primary schools are free, but Government secondaryschools charge a nominal, annual fee of LL31 (US$10). Pupils attending theseschools pay for their own transport, textbooks and school supplies. Voca-tional and technical education, as well as primary teacher training, areprovided free of charge by the Government, except that a small number ofboarding students in technical schools pay nominal fees. The LebaneseUniversity charges modest student fees, while over 75% of its recurrentbudget and all of its capital program are financed by the Central Government.

8. To ensure that primary and lower secondary enrollment targetsfor the period 1972-1980 are met, in view of the private sector's limitedcapacity for expansion, the Government plans to cater for all of the expansion 0involved at the primarv level and for 79% of targeted expansion at the lowersecondary level. It plans, in addition, to absorb up to 11% of primarystudents enrolled in the private sector, many of whom attend low quality,Government subsidized schools. However, the Government also faces financialconstraints on its capacity to expand enrollments.

9. The Government accommodates 85% of its primary and all of its lowersecondary students in rented facilities, often at exhorbitant prices. Most ofthe rented facilities are too inadequate to per-mit teacher/pupil ratios greaterthan 1:18; hence, the average ratio is 1:23 for the public primary level as awhole and 1:18 for the lower secondary level. This factor, combined with in-creases in rents, in teachers' salaries (which represent over 70% of recurrentcosts) and in administrative expenses, have driven up recurrent costs per pupilin public primary and lower secondary schools to a high level.

Annual Recurrent Costs Per Pupil to Government

1968 1971 Rate of Growth p.a.LE US$ Ll US$ 1968 - 1971

Primary 230 73 331 102 11.8%

Lower Secondary 312 99 439 136 11.0%

10. Recurrent outlays on primary and lower secondary education absorbover 50% and 20% respectively of the Ministry of Education's total expenditures.

APPENDIX IIPage 3

Due to the high recurrent costs of primary and lower secondary schooling,together with enrollment growth and a sharp increase (14.6% p.a.) in theamount of subsidy per student paid to private primary schools, the Ministryof Education's total expenditures increased by 253% from 1962 to 1971 (Annex7). This was considerably faster than the increase in Government enrollmentsat these two levels during the same period. Total expenditures by the CentralGovernment as a whole rose by only 7.2% p.a. over the same period; as a re-sult, the percentage share of education outlays in total Central Governmentexpenditures rose from 11% to 21% (Annex 7).

11. If public enrollments were allowed to expand to the levels targetedfor 1980, and if the Ministry of Education were to continue accommodating itsprimary and lower secondary school pupils in rented facilities, 40% of theGovernment's recurrent budget would be needed in 1980 to meet the Ministry'srecurrent expenditures (Annex 9). The Government will not be able to allocatethis much of its recurrent budget to education. Even with additional resourcesacquired from improvements to the direct tax system, which have already beeninitiated, the Government would not have sufficient resources to financeeither its planned expansions or the future development of public educationat higher levels unless it could place its primary and lower secondary school-ing on a more economical basis than at present.

_ "Plan de Regroupement"

12. The Government has based its planned expansion in public primaryand lower secondary enrollments on a systematic rationalization of schoolplant ("Plan de Regroupement"). The "Plan" consists of constructing andequipping new schools of a larger, more economical size, which for the mostpart will replace rented facilities. The location of these new schools hasbeen carefully planned so as to develop an economical configuration of schoolfacilities throughout Lebanon. Four hundred new primary and 295 new lowersecondary schools will be built under this program during 1972-1980, many ofthem in rural areas. They will provide 225,000 new primary school places,of which 65% will replace rented space, and 197,000 new lower secondary placesall of which will replace rented facilities (Annex 8).

13. As a result of this program, the proportion of Government primaryschool students housed in rented facilities will be reduced from 85% to 40%by 1977 and to 25% by 1980. From 1977 onward, none of the Government's lowersecondary school pupils will be accommodated in rented facilities. Further-more, the program will allow for school facilities to be centralized withinthe catchment areas, for teacher/pupil ratios to improve up to 1:35 in pri-mary and to 1:30 in lower secondary schools, for more efficient use to bemade of teachers and for considerable savings to be realized in rents. Con-sequently, by 1980 the annual recurrent cost per pupil to Government will besubstantially lower than the cost per pupil of catering for the same enrol-lments in rented facilities.

APPENDIX IIPage 4

Annual Recurrent Costs Per Pupil to Government in 1980 (Lb)

Primary Lower Secondary5

Costs as Result of"Plan de Regroupement" 387 409 /1

Costs of Catering for sameEnrollment in Rented Facilities 616 742

/1 This unit cost is actually less than the overall cost of LE439 perlower secondary school pupil in 1971 for the following reason: althoughmost lower secondary school pupils in 1971 attended primary and lowersecondary schools, some of them (15%) attended secondary schools wherethe cost per pupil at the lower secondary level was LE614.

About 76% of the difference between the costs of catering for these studentsin the new schools and in rented facilities represents savings in directteacher costs and approximately 24% represents savings in rents. The newrecurrent costs resulting from the "Plan", moreover, will allow for a highercalibre of teaching staff, increased allocations for didactic materials andsupplies and for other qualitative improvements. Finally, as a result ofthe "Plan de Regroupement", by 1980 the Government will be able to saveapproximately LE144 million (US$46.3 million) per annum in recurrent outlaysfor primary and lower secondary education (Annex 9).

14. The proposed Bank project would assist the Government in the initialphase of implementing its "Plan de Regroupement". The project would include39 new primary and 24 new lower secondary schools, comprising 14% and 7% ofthe new enrollment capacity to be built for these two levels respectively underthe "Plan" by 1980. The project schools would be the first to be built underthe "Plan" and would be located to serve as model schools for the programming,planning, construction and equipping of the other new schools in the rational-ization program. Furthermore, the proposed project would contribute to over-all savings to be realized under the "Plan".

15. The value of investing in the proposed project schools is clearlyevident in terms of the possible return on this investment. For example,the difference between the costs (capital and recurrent) of catering for24,240 primary school students in the 32 project primary schools that willreplace rented facilities and in rented facilities represents the financialbenefits that would result from the project (Annex 11). On this basis, therate of financial return, over investment cost, to the Government on the proj-ect's 32 primary schools that would replace Government rented faciltiies wouldbe 21.5% over a 15-year period (Annex 10).

APPENDIX IIPage 5

Projected Public Expenditures (Annex 12)

16. Public sector expenditures on education and training are expectedto grow from LE180 million in 1971 to about LE431 million i'n 1980. Outlayson education by the Central Government will increase from LU161 million toLU386 million over this period, i.e. at 10.2% p.a. in real terms. By 1980,recurrent expenditures on education by the Central Government are expectedto absorb about 24% of current Government revenue and 26% of the total re-current outlays made by the Central Government. Whereas in the past, capitalexpenditures seldom amounted to more than 4% of the Central Government's an-nual expenditure on education, they will amount to over 10% per annum duringthe forecast period. Of the LU314.4 million in capital funds to be investedby 1980, LU276 million will be spent on the "Plan de Regroupement", mostlyduring 1972 through 1977, and the rest will finance new facilities for tech-nical and academic education at the upper secondary level. The total invest-ment in education will represent 21% of the Central Government's overall in-vestment program during 1972 through 1980. The percentage share of educationin the total Central Government budget by 1980 will be 25%.

17. The preceeding forecast of expenditures on education is based on thefollowing assumptions: (a) that the "Plan de Regroupement" will be carriedout on schedule (b) that enrollment targets for primary and lower secondaryeducation will be met and (c) that upper secondary enrollment in Governmentschools will not exceed 30,000 by 1980, given the need to plan carefully thereform and modernization of education at that level before providing forrapid expansion.

0

Educa.tion Prulote te-art.e. ANNU I

CiMPARATIVE - EDUCATION INDLCATOIIS

Pablic % of COP o~% f Total1 Se...ndary F Annea Cu-touGOP/Capita; Lite..acy Educatio Devo..ted to Public Secondary Stadeuts I ilighet from Highe

Population it facto i bate F.reodit-tn Edction Eediu.s. Prissay P'ctnuy oecon.duy Enrothesot pe Enrollment EducationY- ~ ~ ~ cotPer eCcait (hlin Devoted to E-c1i1on StudnsErlmn o Tuhr i o

(Millions (Constant (% f (Machot E pondious -ducttu Ratio e Rato Vctoa.fl-im giutr 0.

US $9 us) J.jtsseito.. _____

Cunpeetinedu...ticn dnne see onefu1 is the ADVANCE 9 I ,9 97 . 92 S6 27 meatoof v-n-o ed-ntitn nYten and SA-tiri I I . 9 44'6 1 1 24

ihe ntalytis of .rEasv nta5eo. dotoo O d 9 1. 2,A20P 91 265 C 7.2 10 6 C 99 26 51 TN 2 926=culp.sou honceo v-riou.s. .onotee. DoR- Oeomy, Fedoe1 itpuhlit 68 160.8 E 2,315F 99 853.59 99 32 615 22 4

evr ntho hanin of tho preseat data, cone Jeen69 102.3 i,0 950C 3.0 20.5 99 20 90C 20 21 j 21 30tatiunnl nonpacicoos Ehonid, ho .. ap ahad Netherand 65 12.9E 1i57 30F P 93 . J54 17. 23.3 99 31 64 I SC I 20 0C 20684A

nihgetcuio. Otto presenid in nhe MN. Zeland 70 2.80 2,209 ... 90 C 4.6 1463 9 3) 71 I ... I 19 21 lt

by thn tank nien B rmgvesso_ sucs Snoden 69 0.0 2841P 99 2Sf0D 7. 14.6 99 1 16 75 34 1i i0 lao

the reide er stoU etln.ot-ot dote United Kingdom 69 55.5 1,831 1U 97 94 5.8 13.0 98 29 58 SC 10 16 19

.ro..n.c. Efd re ay been nod to U.S.A. 68 213.2Et 4,1000PF 9 229 C 4.0 13.1 97 26 ElD. 20 .. 53

tu hc th e ccray of the date. Enter EUROPE theln1 suc...h doa t. - til IIIprf-c in 1. Greece 69 8.7 055F 020C 23 2.2 11.7 99 33 5 3 15 3i 122 9

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uoeaof ice upeeetiuoel o-k. In Ste ne f these date, thu fullomig quolift- APREC

c-titu ehauld he home. in d: 4. AleIe 70 15.1 I 266 25t 35 10.3 20.0 2142 22 20 6 65. Cuneoot70 5.9 153 6 3.0 20.0 714 40 23 25 4 7

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edctiun an the first total end s7odc' 11 hn0 8.5 184 ... i 4.2 i.7 745 29 8 4 is is 1edctiurfenn ohedcaio t the i2. Et-" Cc..et 60 14.9Et 2453P 9 A 10 4.'2C 20.4 44 48 j 8 23 "

ecnay evlreadises of type lo. 17 Kcy 68 10.9 0 135FP 30 7 6.V 18.4 65 32 8 2 22 29 5 Ageneral, teohnicei, agriculncrui); 1~~~~~~4. Lihecie 70 1.3 267 158 5.7 1.7 50 0 3 121 6 16 12 C9C

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h=oms.-sonio corss 1.taie 71 2.8 49 0 5 1 . 6. 30 2 5 00 27 0 20. Oda 68 15.8G0 100F P4 . A A 5.3 22.0R0 31X 486A . 2 A 3 C 127A 23 3 11 C

4) aLi-eray coE'(Ccl. 3) oo 21. Tae a60 12.6 tUP 1 .0V 10.9 35 30 C 2 6C 2i 2 0

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sIatoIy; C, AR50ICA AND CARIBBEAN123. RuiiceSpbhlic 68 410E 274F1 53 60 2.9FP 17.0 s0 56 j 17 1 26 1016C

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3U.Nliloerag 69 1.9 3t9F P 55 2.4 i9.0 80 36 12 0 23 28C 15

63 "onroilme.n ration0

(Cuban 7 audi9) 31. Trinidad aud Toao71 1.0 836 P 90 40 3.1 i8.9 95 35 49 LI 25 i9 4

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47. Meins1 a70 11.8 3460 89Bi 17 4.7 16.5 0 89X 31S 29X 3 25 lb 74

48. Puliti 68 58.0 lOP . ..F. ... 45X 35 15 .. 3849. Pbil ippines 71 59.0 197 72 6 3. 29.0 93 30 62 836 5

50. Si.gpoo7U 2.i 843 7 31 3.4 16.01 92 302 4016 29 185851. Thsailod 7i 37.6 163 70 .8V1 4.1 V 17.1 901 IA4 131 13 25 15 3752. Tukhe 69 34.5 340F 4AOA 9 3.5 17.1 92X 42 25X 14 23 26 41

SUMM8ARY PFM 00VE1DPtNCOINURIECNober of c-utin- 46 Ii 69 43 52 52 32 Si4_ 4

Reogs ( - 98) (1 - 38) (i.4 - 6.3) ~6.3 - 29.0) (6 - 107) (22- 72) (2 -54) (I . 32) (13 - 38) (i - 38) (O - 4577

Q-utilen: Oppor 8i 15 4.7 20 89 46 29 22 30 22 46Median 53 10 3.8 18.0 74 37 iS 21 25 15 13

__________________________________________ ~~~~~~~~ ~ ~ ~~~~Lone 25 . 6 3.2 14.3 50 32 a ... 5 ,,,, 20 107

tybhelo: .... Data nailehie Notes: A 1s1965 u- before NN a noe..pi....ueo Ceitame (2) and (21 Worl Tehies (110D) Pr--- igitode oil no uegli5ihle a 966 5=G.D.P. vsee ius

Otaguind less tbea hif of unit -eploped C = 96 P Intindig forign aid Colt-s (3)-(9) ead (11) 11m missions? otiunhl 2D 968 3-Centra Eovorn only Ca1nst 180-fill sod (13): 112SCO Statttiro! enhc

P l1870 V -Icldin"a priveeepodlnrG 19 71 l.Incidiog -neregd1ZnSnt

May 31, 17927

ANNEX 2

LEBANON

ENROLLMENT, TEACHERS AND INSTITUTIONS BY LEVEL AND TYPE OF EDUCATION1970/71

Enrollments % of Teachers TeacherLevel and Type % Distri- % Relevant Equiv. Pupil Insti-of Education Total bution Female Age Group Output Full-time Ratio tutions

PRIMARYGovernment 192,518 37.4 8,356 1:23 1,258 6/Government-Aided 158,455 30.8 4,402 1:35 ) 1,002Private 163,729 31.8 4,563 1:35 )

Sub-Total 514,702 100.0 45.5 109.5 1/ 60,821 17,321 - 2,260

SECONDARY(i) Lower

General (G) 65,150 50.6 9,538 3,704 1:18 540General (P) 58,487 45.5 12,120 1,720 1:34 481Technical (G) 844 0.7 330 100 2/ 1:8 10 5/Technical (P) 4,100 2/ 3.2 1,500 4/

Sub-Total 128,581 100.0 42.5 3/ 49.9 23,488

(ii) UpperGeneral (G) 10,533 19.8 1,925 702 1:15 540General (P) 25,655 48.1 5,331 1,280 1:20 481Primary TeacherTraining 3,278 6.1 733 182 1:18Technical (G) 1,537 2.9 607 200 2/ 1:8 8 5/Technical (P) 12,300 2/ 23.1 4,100 4/

Sub-Total 53,303 100.0 31.0 3/ 31.9 12,696

HIGHERLebanese students:

Government 9,733 49.6 642 362 1:27 1Private 9,912 50.4 1,242 10

Sub-Total 19,645 100.0 24.1 8.6 1,884 11Foreign students 22,184

TOTAL 738,415 98,889

1/ Of which 31% over-aged,2/ Estimated distribution between levels.3/ Estimate based on distribution in general education.4/ Estimated outout.5/ Most schools have both lower and unoer level students.-6/ 1,076 schools are rented. 488 schools have both orimary and lower secondary students.

0

LEBANON

SUPPLY AND DYE-4AND OF PRIMARY SCHOOL TEACHERS IN GOVERNMENT SCHOOLS

Teacher/ Teachers Output from WastagePupil Unqual- Primary Teacher (about %

Year Enrollments Ratio Qualified ified Total Training 2.5%) Qualified

1970/71 192,518 1:23 3,345 5,011 8,356 733 78 40

1971/72 4, 000 750 100

1972/73 4,650 800 120

1973/74 5,330 900 140

1974/75 6,090 2/ 1,000 1/ 150

1975/76 6,940 2/ 1,000 1/ 160

1976/77 7,780 2/ 1,000 1/ 190

1977/78 300,000 1:28 8,590 2/ 10,676 1sooo 1/ 210

1978/79 9,380 2/ 1,000 1/ 240

1979/80 340,000 1:32 10,140 2/ 86o 11,000 92

1/ About 600 pre-service graduates and about 400 upgraded unqualified teachers.

2/ -About 400 in upgrading training who have to be replaced during the year by unqualified teachers.

LEBANON

SUPPLY AND DEMAND OF LOWER SECONDARY SCHOOL TEACHERS IN GOVERNMENT SCHOOLS

Teachers Output Teachers Needed 7% Qualified TeachersTeacher/ Qualified Unqualified Total Social Social Social

Enroll- Pupil Equiv. Equiv. Equiv. Science Science & Other Science & Science & TotalYear ments Ratio Full-Time Full-Time Full-Time Teachers Languages Subiects Science Languages Science Languages Staff

1/ 1/1970/71 65,150 1:18 1,000 2,704 3,704 27

1971/72

1972/73 -

1973/74 - 200

1974/75 300 360

1975/76 300 360

1976/77 300 360

1977/78 150,000 300 360

1978/79 300 360

3/1979/80 197,000 1:30 4,300 1,700 6,600 1,700 1,800 2/ 1,550 3,000 100 60 65

1/ Es.timated distribution.2/ Teacher training will be arranged in short courses during summertime for graduates from technical schools in accordance

with demand./ Not including teacher training programs under 2/ above.

, * #~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4

*0~ . .. 0

L E B A N O N

Expenditures on Education and Training, 1971

(In LL Thousands)

Percentage Distribution

Private (Estimated) Public Total Expenditures Distribution

Level and Type Recurrent Capital TotalAl Recurrent Capital Total Amount Z % Private % Public

Primary 90,000 90,000 63,723 1,000 64,723 154,723 100.0 58.2 41.8

Secondary 61,100 2,900 64,000 40,337 2,000 42,337 106,337 100.0 61.1 39.8

of which: Lower secondary 38,000 38,000 29,686 2,000 31,6862,900 (2,900)

Upper secondary 23,100 J 23,100 10,65L-/ 10,651

Primary Teacher Training 8,019 8,019 8,019 100.0 100.0

Technical Teacher Training 438 438 438 100.0 100.0

Vocational and Technical 24,600 24,600 16,421 3,925 20,346 44,946 100.0 54.8 45.2

Other Programs 16,3431/ 16,343 16,343 100.0 100.0

Higher Education 29,000 29,000-' 19,014 8,385 27,399.f/ 56,399 100.0 51.5 48.5

Totals 204,700 2,900 207,600 164,295 15,310 179,605 387,205 100.0 53.7 46.3% of GDP 4.0% 3.47% 7.4Z

Source: Ministry of Education, Ministry of Planning, la Commission Episcopale pour L'Ecole Catholique Au Liban, la Secretariat Des InstitutsReligioux Libanais Pour les Affaires Sociales, the Makassed Moslem Association

a/ Excludes subsidies and other transfers from the public sectorbI/ Includes physical education programsc/ Includes commerciald/ Includes subsidies and other transfers to the private sector

e/ l'Unive-site Arabe onlyf/ l'Universite Libanaise

L E B A N O N

Government Annual RecurrentCosts Per Pupil

Growth1968 . 1969 1970 1971 Rate p.a.

LL US$ LL Us$ LL US$ Lu 2US$ 1968-1971

1. Primary 230 73 253 80 310 96 331 102 11.8%

of which: Teacher Cost 175 56 185 59 227 73 236 76 10.7%Rents 10 3 12 4 15 5 19 7 26.0%Other 45 14 56 17 68 18 76 19 11.0%

2. Lower Secondary 312 99 395 125 417 129 4 3 9a 136 1t.0%

3. Upper Secondary 700 222 750 237 797 246 881 283 8.5%

14. Primar-y TeacherTraininm 1,900 619 2,229 705 2,330 721 2,446 778 8.3%

Technical Education 2,000 634 2,322 735 2,420 749 2,565 825 9.0%

Source: Ministries of Education and Planning

a/ Cost per lower secondary level pupil in 1971 was II 409 ($126) in primary and lower secondary schools andLL 614 ($190) in secondary schools.

Aoril 27, 1972 18

* * -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

.~~~

L E B A N O N

PUBLIC EXPENDITURES ON EDUCATION AND TRAINING 1962-1971(In LL Millions)

Growth Rates P.A.1962 196, 1968 1971 1962-1971

Recurrent Capital Total Recurrent Capital Total Recurrent Capital Total Recurrent Capital Total Total Expenditures

1. Ministry of Education Expenditures 42.2 42.2 78.7 78.7 88.0 88.0 149.2 149.7 15.1 %of which: Public Primary 5 41.R 41.8 63.7 63.7

Lower Secondary 30.4 30.4 ' 7 '7 1.t 15.6 29.7 29.7

2. Total Central GovernmentExpenditures on Education 44.4 2.0 46.4 82.0 7.3 89.3 92.2 4.2 96.4 154.2 6.9 161.1 14.9 %

3. Total Central GovernmentExpenditures 295.0 120.3 415.3 403.2 123.0 526.2 472.5 131.0 603.5 642.0 132.0 774.0 7.2 %% Spent on Education (02) 15.0 1.6 11.1 20.0 5.9 16.9 19.5 3.2 15.9 24.0 5.2 20,8

4. Total Public Sector Expenditureson Education 48.2 2.0 50.2 88.0 7.3 95.3 100.5 4.2 104.7 164.3 15.3 179.6 15.3 ZAs 7 of GDP N.A. 2.7 2.4 3.4

Source: Ministries of Education, Planning, Finance

L E B A N O N

GOVERNMENT'S RATIONALIZATION AND EXPANSION

PROGRAM ("PLAN LE REGROUPEMENT")AT PRIMARY AND LOWER SECONDARY LEVELS

A. PRIMARY LEVEL B. LOWER SECONDARY LEVEL

Composition of School Composition of SchoolAccomaodation Construction Program Accommodation Construction Program

Student Places Teacher/ Replacement of Expan- Total Cost" Student Places Teacher/ Replacement of Expan- Total Cost*

No. 7 Pupil Ratio Rented Facilities sion New Places (Lb Millions) No. % Pupil Ratio Rented Facilities sion New Places (LL Millions)

1971 Accommodation

Rented Facilities 163,640 85.0 1:22 65,150 100.0 1:18

Owned Facilities 28J878 15.0 1:32

Total 192,518 100.0 1:23 6S.150 100.0 1:18

1972-1980 Construction 77,518 147,482 225,000 135.0 65,150 131,850 197,000 141.0

1980 Accommodation

Rented Facilities 86,122 25.3 1:25Owned Facilities 28,878 1:32

New Schools, Replacement 77,518 1:35 65,150 1:30

New Schools, Expansion 147,482 1:35 131,850 1:30

Sub-total, Owned fa.-ilities 253 878 74-7 1:35 197,000 100.0 1:30

Total 340,000 100.0 1:32 197,000 100.0 1:30

* Construction only

r * r~~~~~~~~~~~~~~~~~~~~~~~

LEBANON

Comparison of Recurrent Cost Implications of Education Development Plan, 1980

(In L,E Millions except as noted)

Development Plan Enrollment Expansion toExpendi- Enrollment Targets:Expenditure Plan Enrollment Targets:Expenditure

ture With Rationalization ("Plan de Regw upement") Without Rationalization ("Plan de Regroupement")

1971 Enroll- Teacher/Pupil Unit Cost Total Enroll- Teacher/Pupil Unit Cost Totalmest Ratio to Gov't Cost ment Ratio to Gov't Cost

A. Primary Level (LIi) (LE)78.1 505,000 ' 153.3 505,000 231.3

Public 63.7 340,000 1:32 387 131.5 340,000 1:20 616 209.5Private Aided 14.4 165,000 132 21.8 165,000 132 21.8

B. Lower Secondary Level 29.7 197,000 1:30 409 80.5 197,000 1:18 742 146.2

C. Total Expenditure"A" and "B" 107.8 233.8 377.5

D. Total Ministry ofEducation RecurrentExpenditure 149.2 344.4 539.0

E. Total CentralGovernment RecurrentExpenditure 642.0 1,354.0 1,354.0

F. "D" as % of "E" 23.2 25.4 40.0

G. Central GovernmentCurrent Revehue 697.0 1,450.0 1,450.0

H. GDP 5,207.0 9,572.0 9,572.0

L E B A N a N

PROJECTED COSTS AND BENEFITS OF THE PRIMARYSCHOOI. CCIPONENT IN PROPOSED BANK PROJECT

(In Thousands of LI)

A. Cost to the Government with Proposel Proiect S hools B. Cost to the Government of Catering for Same C. NetYear Total Total Enrollment wit out proiect schools * -tNumber Number Number Investment Direct Cost Number Number Number Direct Total ofof of of Expen- Teacher Total of of of Teacher Recurrent BenefitsStudents Schools Teachers ditures Costs Cost Students Schools Teachers Costs Costs Benefits

0 973.0 973.0 -973.01 5,308.3 5,308.3

-5,308.32 5,040 12 144 12,911.3 967.4 1,290.2 14,201.5 5,040 21 219 1,471.2 2,036.2 -12,165.33 24,240 32 693 4,958.4 6,617.5 6,617.5 24,240 102 1,065 7,620.1 10,423.2 + 3,805.74 24,240 32 693 5,272.2 7,029.6 7,029.6 24,240 102 1,065 8,094.0 10,665.6 + 3,636.05 24,240 32 693 5,617.7 7,490.2 7,490.2 24,240 102 1,065 8,637.2 11,974.6 + 4,484.46 24,240 32 693 5,981.3 7,975.0 7,975.0 24,240 102 1,065 9,204.0 12,974.5 + 4,999.57 24,240 32 693 6,363.0 8,484.0 8,484.0 24,240 102 1,065 9,308.2 12,919.9 + 4,435.98 24,240 32 693 6,781.1 9,041.5 9,041.5 24,240 102 1,065 10,439.1 13,938.0 + 4,896.59 24,240 32 693 7,217.5 9,623.3 9,623.3 24,240 102 1,065 11,118.6 14,835.0 + 5,211.710 24,240 32 693 7,708.4 10,277.8 10,277.8 24,240 102 1,065 11,840.7 15,780.2 + 5,502.411 24,240 32 693 8,199.2 10,932.2 10,932.2 24,240 102 1,065 12,610.7 16,798.3 + 5,866.112 24,240 32 693 8,764.0 11,635.2 11,635.2 24,240 102 1,065 13,429.7 17,937.6 + 6,302.413 24,240 32 693 9,308.2 12,410.9 12,410.9 24,240 102 1,065 14,303.0 19,676.9 + 7,266.014 24,240 32 693 9,908.1 13,210.8 13,210.8 24,240 102 1,065 15,232.7 20-289.0 + 7,078.215 24,240 32 693 10,544.4 14,059.2 14,059.2 24,240 102 1,065 16,223.1 21,622.1 + 7,562.9

* is in Government rented facilities.

The rate of return over cost for a fifteen year period is 21.5%.

0*

*~~~ * I

L E B A N 0 N

Projected Costs and Benefits of the LowerSecondary School Component in Proposed Bank Project

(In Thousands of LI)

B. Cost to the Government of catering for same

A. Cost to the Government with Proposed Project Schools enrollment ijithout project schools *I ~~~Total _ _ _ _ _ _ _ _ _ _ _

I InvestmentI Direct Total Direct Total C. NetNo. of No. of No. of Expendit-l Teacher Recurrent Total No. of No. of No. of Teacher Recurrent Stream ofStudents Schools Teachers ures Costs Cost Cost Students Schools Teachers Costs Costs benefits

0 500.1 - 500.1

1 2,505.0 -2,505.0

2 6,695.7 -6,o95.7

3 5,440 14 181 5,055.0 1,375.0 1,833.3 6,888.3 5,440 14 302 2,394.9 3,193.3 -3,695.0

4 14,400 24 480 3,844.8 5,126.4 5,126.4 14,400 24 800 6,717.6 8,956.8 +3,830.4

5 14,400 24 480 4,104.0 5,472.0 5,472.0 14,400 24 800 7,020.0 9,360.0- +3,888.0

6 14,400 24 480 4,341.6 5,817.6 5,817.6 14,400 24 800 7,272.0 9,648.0, +3,830.0

7 l4,400 24 480 4,417.2 5,889.6 5,889.6 14,400 1 24 800 8,013.6 10,684.8 +4,795.2

8 14,400 24 480 I 4,968.0 1 6,624.0 6,624.0 14,400 24 800 8,488.8 11,318.4 +4,694.4

9 14,400 24 480 5,313.6 7,084.8 7,084.8 14,400 24 800 8,996.4 11,995.2 +4,910.4

10 14,400 24 480 5,680.8 7,574.4 7,574.4 14,400 24 800 9,536.4 12,715.2 +5,140.8

11 14,400 24 i 480 6,015.6 8,020.8 8,020.8 14,400 24 800 10,108.8 13,478.4 +5,457.6

12 14,400 24 i 480 6,372.0 8,496.0 8,496.0 14,400 l 24 800 10,724.4 14,299.2 +5,803.2

13 14,400 24 480 j 6,816.5 9,115.2 9,115.2 14,400 24 800 11,364.4 15,148.8 +6,033.6

14 14,400 24 480 7,225.4 9,662.4 9,662.4 14,400 24 800 12,077.6 16,056.0 +6,393.6

15 14,400 24 480 7,659.4 10,324.8 110,324.8 14,400 l 24 800 12,906.4 17,020.8 +6,696.0

* i.e. in Government rented primary, lower secondary and secondary schools

The rate of return over cost for a fifteen year period is 24.2 %,

"ear L~~~~~~~~~~~~~~~~1H~~~F

L E B A N O N

Pro,jection of Public EMenditures on Education and Training(In Millions of LU)

Capital Expenditures: 1977 Expenditures: 1980Ex enditures Recurrent Capital Total Recurrent Capital Total

1972-1980

1. Ministry of Education 2 2 4 3Primary 109. 109. 131. 131.Lower Secondary 5D.6 50.6 80.5 8o.5Upper Secondary 33.4 33.4 42.3 42.3Primary Teacher Training 10.5 10.5 12.1 12.1Technical Education 24.0 24.0 39.8 39.8Secondary Teacher Training 10.0 10.0 11.8 11.8

Technical Teacher Training 1.5 1$5 1.8 1.8Other Programs 19.9 19.9 24.6 24.6

2. Central GovernmentExpenditure on Education 314.4 268.1 48.0 316.1 356.1 30.0 386.1

3. Central GovernmentCurrent Revenue 1.157.0 12450.0

Expenditure Education (#2)as % of Revenue 23.1 24.5

4. Total Central GovernmentExpenditures 115l0 1,046.0 223.3 1,269. 1,354.0 200.0 0

Expenditures on Education(#2) as % of Total Expen-ditures 20.7 25.6 21.4 24.9 26.2 15.0 24.8

5. Total Public Expenditureson Education 334.4 306.0 52.0 358.o 402.3 30.0 431.3

6. GDP 7,814.0 9,572.oExpenditures on Education(#5) as % of GDP 4.5 4.5

April t972

* * '-~~~~~~~~~~~~~~~~~~~~I

ANNEX 13

LEBANON

ESTIMATED PROJECT COSTS BY VARIOUS TYPES OF EXPENDITURES

Lebanese Pounds (000's) U.S. Dollars (OOO's) % ofLocal Foreign Total Local Foreign Total Total

1. Construction

(a) Site-works 1,844 1,770 3,614 569 1,162 9%

lb) Buildings 15,389 8,714 24,103 4,949 2 801 7,750 62%

(c) ProfessionalServices 1,953 - 1,953 628 - 628 5%

Sub-Total 19,1A6_ 10,484 29,670 6_ 6170 3,370 9,540

2. Furniture 3,552 N.A._ 3,552 1,142 N.A. 1,142 9%

3. Equipment 501 4,966 5,467 - 1,758 1,758 14%

4. Technical Assistance 62 249 311 20 80 100 1%

Sub-Total 23,301 15,699 39,000 7,332 5,208 12,540 100%

5. Contingencies 6,070 4,286 10,356 1,952 1,378 3,330 26.5%

Total 29,371 19,985 49,356 9,284 6,586 15,870

LEBAWN

UNIT CAPITAL COSTS AND EFFICIENCY OF NEW PROJECT INSTITUTIONS(in U.S. DDllars)

Gross Area Building Construction Furniture &quipaent Teacher-Type of School per Rupil Construction Cost per Cost per Cost per Totals Pupil Use

________ M') Cost (M ) Pupil Pupil Pupil Ratio Factor

Primary 3.0 57.00 171.15 18.40 17.00 206.55 35 70

Lawer Secondary 3.6 57.70 207.90 31.70 73.60 313.20 30 75

Primary TeacherTraining Institutes 4.4 61.4o 270.85 45.oo 44.90 360.75 22 75

1/ Exclusive of professional fees and contingencies.

>IHi

LEBANON

CONTINGENCY ALLOWANCES (in US$'s @ L.L.3.11 = 1.00)

Profes-

Site Building sional TechnicalDevelopment Construction Furniture Equipment Services Assistance Totals

Local Foreign Local Foreign Local Foreign Local Foreign Local Local Foreign ($000)

a. Physical Contingencies(Unforeseeable) 107. 107 107, 107 N.A. N.A. N.A. 5% 107% N.A. N.A.

b. Price Increase(escalation) 19% 12% 19% 20.8% 12.5% N.A. 16.3% 19.1% 17.8% 8.3% 6%

c. Total Contingencies(In percentage) 29% 22% 29% 30.8% 12.5% N.A. 16.3% 19.1% 27.8% 8.3% 6%

Total Cost of Project(before contingencies) 593.0 569.0 4,948.0 2,802.0 1,142.0 N.A. 161.0 1,597.0 628.0 20.0 80.0 12,540.0

a. Physical 59.3 56.9 494.8 280.2 N.A. N.A. N.A. 79.9 62.8 N.A. N.A. 1,033.9

b. Price Increase 112.7 68.3 940.1 582.8 142.8 N.A. 26.2 305.0 111.8 1.7 4.8 2,296.2

c. Total Contingencies 172.0 125.2 1,434.9 863.0 142.8 N.A. 26.2 384.9 174.6 1.7 4.8 3,330.1

Currently Estimated CostPlus Contingencies 765.0 694.2 6,382.9 3,665.0 1,284.8 N.A. 187.2 1,981.9 802.6 21.7 84.8 15,s7O.l

LEBANON EDUCATION PROJECT

IMPLEMENTATION SCHEDULE

DATE OF LOAN- _ CLOSING DATE OF LOAN---

YEAR FIRST SECOND THIRD FOURTH FIFTH

QUARTER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

PRIMARY SCHOOLS *** ### +++ += =// / " K H H. !H 1(240 puipils) oo 000 vVV ww xx

PRIMARY SCHOOLS *** ### +++ += =/ // '': ::::: .! !!! !(480 pupils) 0 000 ovv vww XXX xxx

PRIMARY SCHOOLS *** IH# +++ += = /// : :: :: : : :: :: : .: ! ! ! !(960 pupils) ooo 000 vv vww XXX XXX Xxx

LOWER SECONDARY SCHOOLS .. ### +++ ++ + =l/ /'' :: ::: ::: : H H! . .. . .(320 pupils) 0 000 oVV vww w x x

LOWER SECONDARY SCHOOLS *** ### +4+ +++ = = I' " : ::

(560 pupils) o 000 000 v VVw ww xxx xxx XXX

LOWER SECONDARY SCHOOLS *** ### +++ +.+ === === I/f . : ::: ::: ::: ::: !!! !!! !!! !!!(1,120 pupils) 0 000 00 VVv www xxx xxx XXX

PRIMARY TEACHER TRAINING *** . === === =// /"I ':: ::: ::: ::: ... ... :!! !!SCHOOL 0 000 00 vvw ww x xx

LOWER SECONDARY TEACHER ** ### +++ -H+-- ==/ f/f - .., ... ... H! H! H lTRAINING SCHOOL 0 000 00 ww www xx x

TECHNICAL ASSISTANCE

CONSTRUCTION RELATED SCHEDULE: FURNITURE AND EQUIPMENT:

* Acquisition and survey of construction sites o Preparation of furniture and equipment procurement lists

# Selection and appointment of architects v Preparation and submission of bids for supply of furniture+ Preliminary architectural planning and equipment

(including final programming) w Review of bids and award of contracts for supply of furniturePreparation of bidding documents for construction and equipment

/ Preparation and submission of bids for construction x Delivery and installation of furniture and equipment

Review of bids and award of construction contract # Technical assistance mConstruction (including site-works and utilities) x

Construction defects guarantee period

* * 0

ANNEX 17

LEBANON - ESTIMATED SCHEDULE OF DISBURSEMENTS

(US$ millions)

1/ Accumulated UndisbursedQuarter Disbursements Dhsbursements Balance

1 - - _

2 - - 6.60

3 0.03 0.03 6.57

4 0.03 o.o6 6.54

5 0.02 0.08 6.52

6 0.02 0.10 6.50

7 0.30 0.o4 6.20

8 0.35 0.75 5.85

9 0.73 1.488 5.12

10 1.15 2.63 3.97

11 0.63 3.46 3.34

12 0.90 4.16 2.44

13 0.71 4. 87 1.73

14 0.59 5.46 1.14

15 0.44 5.90 0.70

16 0.23 \6.13 0-.47

17 0.20 6.33 0.27

18 0.15 6.48 0.12

19 0.12 6.60 o.oo

g/ Starting from date of Loan Agreement

*

LEBANONSTRUCTURE OF THE EDUCATION AND TRAINING SYSTEM 1971/72

-..- PRE-SCHOOL-_l- <-W- PRIMARY - SECONDARY N HIGHER E

- LOWER LOW UPPER ---- W

PRIMARY TEACHER LOWER SECONDARYTRAINING ~~~TEACHER TRAINING

GENERAL GENERA UNIVERSITY

CERiTIf ICAIL TECHNICAL

0 BffRL V L I TECH.TEACHER

* t3ACCALAUHt AT VOCATIONAL TRAINING

* [JIPLO,)M,A

* DECRLE iA L

PS PHI SCHOOL .,RADES

P PREPARATUfiy YE AR iCULIURAL

LABOR MARKET

AGE 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22- ~~~~~~~~~~~~~~~~~~~~I I I I I I I

GRADE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

NO(1T1 Age gl.ie W eldto ,i.Ii Ileal not foes ess,Ilv -o s'

World B.nk-6757

LEBANONENROLLMENT PYRAMID 1970-1971

AGE-

EDUCATIONAL GROUP

LEVEL/GRADE

GOP %OF

TOTAL TOTAL POPULA- RECEDANT

THIRD LEVEL MALE FEMALE TION AGE GROUP

IB 1000 4 -6 300

T 37 , 5 2 %

17 1.600 6% 75S 3,0

T 3 7 9 l l7 =637%% .73173D3.1

16 260006% 3 700 229.300 8.6%

T5 2 900 602110 1,200)

T *7_;5% 5

6,800 25, 44Y .200

SECOND LEVELuPPER

7.23%

1 2 a0OU4007 1S

T ~~~~~~90 24003

1 1 1~~~ 2.950 15 6% 6.300 162 00319%

SECOND LEVEL

LOISLO

9 13600 3 56%

9.400

1. SW 4~~~~~~~~~~~~~~~~9 %5%108

oboE 10.800~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~27.0 99

21500 j 0 3 / ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'14.0004 ~~~~~~~~~~~~~~~~~~~~~~20.000

61 2 5% 45

33,500 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~27.400

470.000 o005%

64300~~~~~~~~~~~~~~~~~~~~~~~~. .... 4.0

42 300

BOYS ~~~~~~~~~~~~~~GIRLS

GOVERNMENT /A

PRIVATE V22.200 FOREIGN STUDENTS ENROLLED IN HIGHER EDUCATIONINSTITUTIONS NOT INC LUDED IN THE PYRAMID

1Of whi,ch 31% averaged

ENROLL~E INPI~FMA

ANON SCjAF~?YVSUCA7TION

~~~ ~~ GROUp

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I / 78504 0~~~~~~~~~~ps\

1

6 9% OFz

400~~~~~~~~~~~~~~~~~;wT

1 5 70 4GE

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:chool ,' etX9 - -.~ T L . H E R M E L / f . ,

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hq - - ) \ 4>,~~~~~~/ 7/ 't /,PPLTO:Prosprsumml

34' t/l>.< ffi ,:30 __,' X HAS B A I Y A ( X 4 1 500 -- 2,000

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BAA ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~EAO

EDUCATION PROJECT

SAID: A B E / A H I j ( oryeoi ho, F ig r upoo

,. .-, rA,,*> L- 9j 0 ,J-st=istis cL.-l d L y echMnl -- iloF iny 320

<0' P5 , - . t s. ACHAIYA --o, dy schol - p.ty 560-33-30'53

3'E S-O Loe Reco-d.y . hool - copo(ity 1, 120 3 300P,!-Ly sch-l -- cp-cily 240

X . - t - 1AE N T :t-B Ai L- t. -i , KlLOMETERS~~~~~~~~~~~~~~~,;y,,,~. . ... ty48

03 rissory schoo -- c_p-ity 960

.' _ : - rod6ontipPOPULATION: P-- p- -tqOe 1Sl 0

M- l'o- 20,000

C '~~ HASBAIYA I ~/ 500 -- 1,02

Pooo de/wrrtmi-ily fi9so-s o-e bM ed Po.

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It, Y IA 00 20 30 420

BENT JBAU ( ~~~~~~~~~~~~~~~~~~ ( ~~~KILOMETERS0 5 [0 IS 20 25

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I S R A E L 35 i'30' ~~~~~~~~~~~~~~~~~6'36130