Damt o

The World Bank

FOR OMCIAL USE ONLY

Report No. P-4275-SOL

REPORT AND RECOMMENDATION

OF THE

PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

IN AN AMOUNT EQUIVALENT TO SDR 4.5 MILLION

TO SOLOMON ISLANDS

FOR A

SECONDARY EDUCATION PROJECT

April 11, 1986

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

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CURRENCY EQUIVALENTS

Currency unit: Solomon Islands Dollar (SI$)

Calendar 1984 February 1986SI$1.00 = US$0.79 US$0.62US$1.00 = SI$1.27 SI$1.61

Co-financier's currency unit: AustraLian Dollar ($ A)

February 1986$A 1.00 = US$0.71US$1.00 = $A 1.41

FISCAL YEAR

January 1 - December 31

ACADEMIC YEAR

February 1 - January 31

GLOSSARY OF ABBREVIATIONS

ADAB - Australian Development Assistance BureauCDC - Curriculum Development CenterGSU - Guidance and Selection UnitGTC - Goroka Teachers CollegeIPU - Implementation and Planning UnitMET - Ministry of Education and TrainingNSS - National secondary schoolsODA - Overseas Development AdministrationPEO - Provincial Education OfficePCC - Project Coordinating CommitteePss - Provincial secondary schoolsSICHE - Solomon Islands College of Higher EducationSISC - Solomon Islands School CertificateUSP - University of the South Pacific

FOR OFFICIAL USE ONLY

SOLOMON ISLANDS

SECONDARY EDUCATION PROJECT

Credit and Project Summary

Borrower: Solomon Islands

Amount: SDR 4.5 million (US$5.0 million equivalent)

Terms: Standard IDA

ProjectDescription: The objective of the proposed project is to help the

Government ensure an adequate supply of suitably trainedmanpower for formal employment and higher levels of educationby improving educational opportunity and quality in lowersecondary education and strengthening education sectormanagement. This would be achieved as follows:

(a) improvement of educational opportunity thrcugh:'i) expansion of lower secondary school enrollment byconstructing, furnishing and equipping three new lowersecondary schools to provide about 1,220 student placesin three disadvantaged provinces; (ii) development of apreservice diploma training program to train lowersecondary teachers in addition to limited preservicetraining overseas; and (iii) carrying out a feas.bilitystudy for the Solomon Islands College of HigherEducation;

(b) improvement of educational quality through the provisionof: (i) equipment and teaching materials, includingtextbooks; (ii) in-service upgrading for lower secondaryteachers; (iii) staff training, housing and consultantsfor the Curriculum Development Center; and (iv) newstaff, staff training and consultants for the Guidanceand Selection Unit of the Ministry of Education andTraining (MET); and

tc) improvement of educational management through theprovision of: (i) new staff and staff training for

lb establishing an Implementation and Planning Unit (IPU) inthe MET and for the Provincial Education Offices (PEO);and (ii) consultants for preparation of studies onteacher utilization and incentives, the financing ofeducation, and a sector investment plan.

Benefitsand Risks: By 1991, lower secondary enrollments would be increased by

28Z; the enrollment ratio for the 13-15 age group would be

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

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raised from 21X to 23%; and geographical distribution ofeducational opportunity across provinces would improve. Theprovision of better trained teachers and more and betterequipment and materials for all Lower secondary studentswould contribute to raising student achievement. Morequalified staff in the IPU and the PEOs would result in moreeffective educational and financial planning and schooladministration.

The proposed Credit entails some risks due to local staffshortages, poor communication between central and provincialauthorities, and possible continuation of high teacherwastage. These risks would be reduced by the proposedactions to be taken before and during project implementationto address these issues.

Estimated Costs: Local Foreign Total-US$ million

Improvement of educational opportunity:Expansion of lower secondary schools 2.7 2.3 5.0Preservice teacher training 0.5 1.2 1.7

Subtotal 3.2 3.5 6.7

Quality improvement:Provision of equipment, textbooks and materials 0.1 0.4 0.5Curriculum development 0.1 0.3 0.4Strengthening of Guidance and Selection Unit 0.0 0.1 0.1In-service upgrading of teachers 0.0 0.1 0.1

Subtotal 0.2 0.9 1.1

Management improvement:Establishment of Implementation and PlanningUnit, training of Provincial EducationOfficers and studies 0.0 0.3 0.3

Subtotal 0.0 0.3 0.3

Total Baseline Cost 3.4 4.7 8.1

Physical contingencies 0.3 0.4 0.7Price contingencies 0.5 0.7 1.2

Total Project Cost la 4.2 5.8 10.0

/a No taxes are included in the TotaL Project Cost, as all building materialsand equipment, textbooks and educational materials imported for use in theproject are exempt from import duties and taxes.

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Financial Plan: Local Foreign TotalUS$ million -

Government 0.7 0.0 0.7IDA 2.9 2.1 5.0ADAB 0.6 3.7 4.3/b

Total 4.2 5.8 10.0

Estimated Disbursements:

IDA FY FY87 FY88 FY89 FY90 FY91 FY92 FY93----- US$ million --

Annual 0.1 0.8 1.2 1.4 1.0 0.4 0.1Cumulative 0.1 0.9 2.1 3.5 4.5 4.9 5.0

Rate of Return: Not applicable

Staff Appraisal Report: No. 5645-SOL, dated April 8, 1986.

Map: IBRD 18812

/b Of which $A 4.0 million from ADAB's cofinancing facility and $A 2.5 miL-lion Erom its regular bilateral aid program in Solomon Islands.

REPORT AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT TO THE SOLOMON ISLANDS

FOR A SECONDARY EDUCATION PROJECT

1. I submit the following Report and Recommendation on a proposedcredit on standard IDA terms to Solomon Islands for the equivaLent of SDR 4.5million (US$5.0 million equivalent) to help finance a Secondary EducationProject. The Australian Development Assistance Bureau (ADAB) has made a com-mitment to provide $A 4.0 million in grant aid from its cofinancing facilityand $A 2.5 million from its regular bilateral aid program for Solomon Islands(equivalent to about US$4.3 million).

PART I - THE ECONOMY

2. The Bank Group's second report since the country's independence(Country Economic Memorandum: Solomon Islands, No. 4989-SOL) is datedAugust 1, 1984. Basic country data are given in Annex I. In June 1983, theWorld Bank and the UNDP issued an energy assessment report (Solomon Islands:Issues and Options in the Energy Sector, No. 4404-SOL).

Structure of the Economy

3. Solomon Islands is an archipelago stretching over 1,450 km in asoutheasterly direction from Papua New Guinea. From 1893 until independencein July 1978, it was a British protectorate. The country has a population of241,000. Six main islands - Choiseul, New Georgia, Santa Ysabel, Malaita,Guadalcanal and Makira - account for most of the population and the land areaof some 28,500 sq km constitutes mountain ranges which are mainly volcanic,with deep narrow valleys and limited coastal strips. Although the populationis racially homogeneous (about 93% Melanesian), at least 87 vernacularlanguages are spoken. About 80% of the population reside in small, widelydispersed settlements along the coasts; 60% of the people live in localitieswith fewer than 100 inhabitants and more than 80% in localities with fewerthan 200. The capital city of Honiara, the only major urban area situated onGuadalcanal, the largest island, has 16,000 inhabitants. Other urban centershave fewer than 2,000 inhabitants each. Inter-island shipping is the mainmode of transportation.

4. The economy is predominantly agricultural, with land communallyowned. Subsistence (nonmonetary) production is an important component of thetotal output. It contributes 40X of GDP, and nine out of ten households areengaged in subsistence food production to some extent. As is typical of theislands in the Pacific, the basic needs of the population are reasonably wellmet from subsistence activities. Reflecting the size of the subsistence sec-tor, the proportion of the labor force engaged in paid employment is limi-ted.. Only about 20X of the labor force is employed as full-time salary andwage earners, and an additional 27-28% derives some cash income from copra and

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market gardening, with the remaining 50% of the labor force engaged in subsis-tence production.

Recent Developments

5. After an impressive growth performance in the 1970s (8% p.a. growthof real CDP), Solomon Islands' economy recorded a sharp downturn in the early1980s, with real GDP estimated to have declined by 2.5Z p.a. between 1980 and1982. After this period of stagnation, economic growth resumed in 1983 andsharply accelerated to 15% in 1984, as the external environment, especiallyconditions in the copra market, turned favorable. The resulting strong growthin domestic incomes was reflected in a rise in both public and privateconsumption; however, investment remained weak. Inflation, which had sloweddown considerably to 7% in 1983, increased due to domestic demand pressures toIIZ in 1984.

6. Between 1981 and 1983, the growth in total Government revenue andgrants did not keep pace with that in total expenditures. Current expendi-tures on the newly decentralized administrations and an 8% increase insalaries and wages in the public sector accounted for the growth in expendi-tures. The budget deficit, therefore, was about 11-12% of GDP during the1981-83 period, but declined to only 4% in 1984 as a result of revenueincreases from taxes on international trade. Financing of the public sectorbudgetary deficit was funded mostly by grants, principally from the UnitedKingdom, Australia, and Japan. However, with a decline in the availability ofthese grants in 1983 and in 1984, Solomon Islands authorities have begun toutilize domestic and foreign markets more fully.

7. Mirroring the performance of the productive sectors and the publicsector, the balance of payments position in Solomon Islands has improved sincethe early eighties. From a current account deficit which averaged almost 25Zp.a. of GDP in 1980-81, the deficit declined to only 13% p.a. of GDP in 1982-83, and fell to just 5% in 1984. As well as favorable external circumstances,the improvement in the external account is also due to a 10% devaluation ofthe SI$ in August 1982, and subsequently, the adoption of a more flexibleapproach to foreign exchange management by the Central Bank. To shore up itsshort-term balance of payments position and to finance the public sectordeficit, the country has begun to resort to judicious external borrowing fromcommercial sources and multilateral institutions. Nevertheless, the debtservice ratio remains low (6% in 1984, excluding early repayment of anEurocurrency loan).

Development Issues

8. With a young and rapidly growing labor force, the Government facesthe challenge of creating employment opportunities in a largely subsistenceeconomy. While considerable export diversification took place between 1970and 1980, it was limited to large-scale commercial agriculture with relativelylimited effects on the smallholder subsistence sector. Aware of the fact thateven the 20-25% growth in formal employment envisaged over the medium termwill be insufficient to absorb the demand for formal employment, the Covern-ment is seeking to expand the assimilation of the labor force into the urban

and rural informal sectors. The second National Development Plan, encompass-ing the 1985-89 period, was published in August 1985 and stresses the need toconcentrate development planning in the areas of diversifying the productivebase of the economy and intensifying the Government's efforts on humanresource development and education.

9. Human resource development is far from adequate in Solomon Islandsas roughly measured by the few available social indicators. Available dataindicate that, in the early 1980s, the adjusted enrollment ratios for primaryand secondary education were, respectively, 782 and 22Z, while the adultliteracy rate is (at best) about 15%. The low level of educational achieve-ment explains the severe shortages of local skilled and semi-skilled labor andof high level manpower for the public and private sectors. Decentralizationand localization have undoubtedly accentuated these shortaaes. The shortageof manpower is a major development constraint.

PART II - BANK GROUP OPERATIONS

10. Consistent with Government priorities, the Bank's strategy forSolomon Islands focuses on the education sector and activities which supportagricultural development. This strategy is designed to address key constraintsto development - the shortage of skilled manpower and limited absorptivecapacity, as -fell as to support the major potential growth area in the economy- agriculture. The four credits totalling SDR 10.9 million (US$12 millionequivalent) approved thus far are assisting the expansion of primary educa-tion, agricultural extension and training, access to term-credit through theSolomon Islands Development Bank, and road improvement on Guadalcanal Island.

11. In delivering the lending program to Solomon Islands, considerationhas been given to the need for aid coordination, impact and cost effectivenessof IDA involvement in the region and the expertise and geographical proximityof major agencies operating in the Pacific. The Bank has looked to cofinanc-ing of selected activities with the Asian Development Bank in sectors ofcommon interest and concern. This has been possible in the projects support-ing agricultural development. In the formal education sector, IDA has coordi-nated the lending effort with the major bilateral donor, the AustralianDevelopment Assistance Bureau (ADAB).

12. The aim of the proposed project is to meet the needs of the countryfor an adequate supply of trained manpower through improving educationalopportunities and quality at the lower secondary level, and strengtheningeducational sector management. The objectives of the project directly supportthe Government's aims of improving coverage and quality in education andimproving the capacity of the Ministry of Education and Training (MET) tomanage and administer the educational system. The project has been designedby the Government and IDA to take into account the budgetary limitations andthe implementing capacity of MET.

13. As of September 30, 1985, effective credits to Solomon Islands heldby the Bank Group amounted to US$12.0 million equivalent. Annex II contains asummary statement of IDA credits. There are no IFC investments in SolomonIslands.

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Disbursement Performance

14. Four projects are currently being implemented in Solomon Islands.Disbursement under the first credit (Credit 1115-SOL) for the Solomon IslandsDevelopment Bank Project were initially slow but have subsequently increasedas a result of IDA agreement to finance a portion of local currency in addi-tion to foreign currency expenditures. Under the second credit (Credit 1212-SOL) for the Primary Education Project, disbursements are well ahead ofschedule and the project is nearing completion. The third credit (Credit1430-SOL) for the Rural Services Project became effective in June 1984, andthe fourth credit (Credit 1542-SOL) for the Guadalcanal Road ImprovementProject became effective in July 1985. Both of these projects are in thestart-up phase of implementation and disbursements are proceedingsatisfactorily.

PART III - THE EDUCATION SECTOR

Ltroduction

15. Solomon Islands' development strategy and programs for the 1980semphasize the expansion of employment for a fast-growing labor force through abalanced development of smallholder and plantation agriculture, improvement ofthe inter-island transport and marketing system and greater involvement of theprivate sector in economic development. Another priority is to increase thenumber and quality of skilled manpower, in particular to fill vacancies and toreplac- expatriates with national staff in formal employment. Twenty percentof an estimated 3,500 establishment posts are at present either vacant oroccupied by expatriates. The shortage of qualified nationals is due in largepart to the education system's shortcomings, which include poor averagequality at all levels and restricted opportunities at the post-primarylevels. A major consequence is that a large number of tasks affecting thecountry's development are not being accomplished. The Government has alreadybegun to address the problems of the formal education system through a compre-hensive development program for primary education, assisted by the 1982Primary Education Project (Credit 1212-SOL). As the next step, the Covernmentis turning its attention to strengthening secondary education, to ensure anadequate supply of suitably trained manpower for higher education and formalemployment in the modern sector.

Structure and Administration of the Educational System

16. The educational system provides six years of primary (Grades 1-6),three years of lower secondary (Grades 7-9 or Forms I-III), two years of uppersecondary (Grades 10-11 or Forms IV and V), and one year of pre-university(Grade 12 or Form VI) education. Post-secondary education leading to a certi-ficate or diploma is provided at the Solomon Islands College of HigherEducation (SICHE), which was formally established in 1983, incorporating theformer Honiara Technical Institute, the Teachers College, and other governmenttraining units into a single umbrella institution with six areas of study:education and cultural studies; finance and administration; industrial

development; natural resources; nursing and paramedical studies; and marinestudies. Regional institutions (particularly the University of the SouthPacific (USP) and the University of Papua New Guinea) and other overseas uni-versities provide access for a selected number of students for degree anddiploma studies. In 1983, there were about 35,000 students in primaryschooLs, 4,900 in secondary (including Form VI) classes, 1,200 in the SICHEand 300 in overseas post-secondary institutions. Teachers are trained eitherat the SICHE or overseas.

17. Secondary Education. Secondary education in Solomon Islands beganformally in 1956 with the establishment of the King George VI School inHoniara which offered a four-year course and accepted students from all overthe country. In 1978, a five-year course Leading to the Solomon IslandsSchool Certificate (SISC) was introduced. By 1984 there were eight suchnational secondary schools (NSS), six Christian church- and two government-operated, with a total of about 2,600 places. The NSS curriculum is gearedtowards the SISC, for which the examination is taken at the end of Form V.Currently only the King George VI School has a Form VI (pre-university)class. A second Form VI class at the new Waimapura NSS began in 1986.

18. Following an official review of education in 1974, the Governmentintroduced an alternative system of lower secondary education through theprovincial secondary schools (PSS) in order to lower the cost of post-primaryeducation, devolve responsibility for lower secondary education to the pro-vinces and further widen educational opportunity. The PSS provide three yearsof schooling and have a curriculum combining a core of academic subjects withpractical subjects related to the rural economy. Despite the inclusion ofpractical subjects, unit costs in the PSS are reasonable and are in fact,lower than in the NSS. All PSS offer full boarding due to the dispersednature of the population in the provinces and the lack of access by road tonearly all the schools. By 1984 there were 12 PSS with a maximum enrollmentcapacity of about 2,800.

19. The PSS and NSS have a comnon core lower secondary curriculum, withdifferent compulsory and elective subjects. At the end of Form III, both PSSand NSS students take a common national examination which serves to selectthem either for continuation to Form IV or for post-secondary training at theSICHE. The majority of PSS leavers, however, enter the labor market. At theend of Form V, students take the SISC examination which, for the majority, isthe terminal point of their education, while a small minority proceeds toForm VI and higher education.

20. Over the past decade, secondary school enrollments have increased atan average annual rate of 12%, from 1,152 in 1971 to 5,109 in 1984. Most ofthis expansion has taken place in the PSS, so that by 1984 enrollments we-Proughly equal between the NSS and PSS.

21. Administration. Education formulation and overall educational plan-ning for primary and secondary education are under the control of the Ministryof Education and Training, while most administrative responsibility has beendecentralized to the provincial governments. The PSS are maintained by theprovincial governments through central government grants for operating costs

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and teachers' salaries. Each school has a Board of Management with limitedpowers; effective financial control is in the hands of the Principal EducationOfficer of the Province. Fees are charged within the range set by the MET(SI$40-60 per annum for boarding students and SI$30-40 for nonboarders in1983). In addition, students contribute their own labor to maintain and oftenconstruct the schooL's buildings and to grow part of the food they consume.Teachers are hired by the provinces from a list approved by the TeachingService Commission. Of the eight NSS, the two government institutions (KingGeorge VI and Waimapura) are administered directly by the MET, while theremaining six church schools are administered by their respective Boards ofGovernors which are responsible to the Minister of Education through theNational Education Board. All NSS charge fees within the range set by the MET(SI$80-120 per annum for boarding students in 1983). School staff in thegovernment NSS are appointed by the Public Service Commission, while those inthe church NSS are appointed by their respective Boards of Governors.

22. Financing. The central Government finances investment and recurrentexpenditures for primary and secondary education, the latter through theprovision of grants to the provincial governments for primary and PSSteachers' salaries and school operating costs. All NSS receive similargrants. Some of the church-operated NSS supplement the government grants withsubsidies from their respective churches. As education has expanded rapidlyover the last five years, so has government education expenditure. Thegovernment recurrent budget for education increased from SI$3.5 million in1979 to SI$8.3 million in 1983, an average increase of about 23Z per year,which represents an increase from 18Z to 20% of the total government recurrentbudget over this period. On the investment side, the budget between 1979 and1983, rose from SI$0.9 million to SI$3.3 million, or roughly from 6Z to 20X ofthe total government capital expenditure. Much of the capital expenditure wasassisted through the Primary Education Project.

Main Issues in Secondary Education

23. ' Notwithstanding the impressive quantitative achievements of the lastdecade, the Solomon Islands' secondary education system has to overcomeseveral problems which fall under three major categories: (a) restricted edu-cational opportunity; (b) low average quality; and (c) limited capacity foreducational planning and management.

Restricted Educational Opportunity

24. Total secondary school enrollments, after stagnating during 1973-78,rose rapidly during 1979-83 as a result of: (a) expanding the intake ofprimary school leavers into Form I and PSS leavers into Form IV of the NSS;and (b) higher retention and completion rates for Forms III-V. Nevertheless,opportunities for secondary education remain restricted. In 1984, out of atotal of about 3,620 applicants, only about 1,520 or 42% were admitted intoForm I. The demand for Form I places is expected to rise from 4,200 in 1985to nearly 8,000 in 1990. This projected demand is due largely to a widerreach in primary education, the result mainLy of the Primary Education Projectwhose greatly increased output is expected to exert pressure on the secondaryschool system after 1986. If there is no increase in the number of places,

the corresponding Form I admission rates would decline from 36% in 1985 to 19Xin 1990, thus severely limiting opportunities for secondary education andultimately the number of students who could be trained in middle- and higher-level skills. The shortage of places is most acute in the PSS andparticularly in Cuadalcanal, Western and Malaita provinces, where Form Iplaces in 1983 were available for only 12.8, 9.6 and 7.0X, respectively, ofthe age 12 population compared with the average of 14.3Z.

25. While the female enrolment ratio has been rising slowly over thelast decade, and is reasonable for the region, females in 1983 accounted foronly 36% of total Form I enrollments, compared with an average of 41% inprimary grade 6. One factor is the poorer performance by females in theForm I selection test. Another factor appears to be parental reluctance tocontinue the formal education of adolescent girls whose laber in the home oron the family farm would make a significant contribution to the family income.

Low Average Quality

26. While some secondary schools have distinguished performance records,national average achievement is low, particularly in English, mathematics andscience. Students selected for overseas fellowships from among the limitednumber of qualified candidates often require remedial preparation for theirhigher education. This low achievement is due, in part at least, to the lowquality of students entering lower secondary education. In addition, qualityis further eroded at the secondary level due to a number of factors includ-ing: (a) inadequately trained teachers with a high turnover rate; (b) a weakinstitutional base for curriculum development and a lack of appropriateinstructional materials; and (c) inappropriate testing instruments and studentselection procedures.

27. Teachers. In the past, national secondarv teachers have beentrained overseas to diploma or degree level. Diploma training, considered theappropriate qualification for PSS staff, has for the most part been providedat the USP or the Coroka Teachers ColLege (GTC) in Papua New Guinea. The USPhas recently terminated its teacher training diploma program, however, andplaces for foreign students at the GTC are relatively limited. The systemalso suffers from a 6% loss of teachers every year, mainly throughresignation. Although the causes of the high teacher attrition rate have notbeen studied in detail, most apparently join the public service or the privatesector which pay better salaries and have better working conditions. Thishigh turnover of teachers, combinied with the reduced overseas opportunitiesfor secondary teacher training, have hampered the Government's efforts toreduce its dependency on expatriate personnel and have led to a currentbacklog of 34 vacant secondary teacher posts. There is a need to develop asecondary teacher training program in-country. The SICHE's School ofEducation and Cultural Studies currently trains primary teachers to meet theneeds of the primary school system which is expanding under the PrimaryEducation Project. The Government intends to reorganize and expand the SICHEand has requested assistance in preparing an academic and physical feasibilitystudy for this purpose, which would be carried out in 1986/87. Meanwhile, theSICHE has recently introduced a "foundation year" required of all studentsentering from Form III before they begin certificate programs, thus straining

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its facilities at a time of increased demand. The Government must addressthis issue in the context of the feasibility study. However, it is clear thatthere is an urgent need to provide additional physical facilities and stafffor the training of secondary teachers at the SICHE.

28. In addition, the level of qualification of teachers already in thesystem is low. In 1984, out of a total of about 260 secondary school teach-ers, 190 were Solomon Islanders, half of whom had had formal education only upthrough Form III before starting their professional training. This impliesthat the academic achievement of about 50% of national teachers is littlebetter than that of the students they teach. Annual in-service arrangementsfor improving teacher competency are limited to a centralized, ten-dayworkshop organized by the MET's Curriculum Development Center (CDC). Toimprove overall teaching quality, upgrading training should be provided tofocus on raising the academic credentials of these teachers and to improvetheir effectiveness in using teaching equipment and materials.

29. Curriculum Development/Instructional Materials. While the CDC hascompleted work on a revised secondary school curriculum, recent staff short-ages and inadequate budgeting have resulted in ineffective implementation ofthe curriculum and a system-wide shortage of instructional materials, includ-ing textbooks. Six national Curriculum Development Officer/Subject Advisorposts exist, two of them created in 1986. Four are now filled, all but onerecently, as the posts in the past have been graded at a level unattractive tobetter qualified national staff and no housing is available. In addition,four aided Advisor posts exist, none currently filled. Without the attentionof Advisors, some subjects still lack supplementary teaching materials, whilemany existing textbooks should be reviewed and/or revised. It is estimatedthat lower secondary students need about 20,000 copies of standard textbooks(which would have to be imported) and about 280,000 copies of supplementaryprinted instructional materials covering all subjects in the curriculum. Inaddition, the Government needs to clarify its policy on textbook replacement.

30. Examinations and Student Selection. Three national examinations arecurrently used to select students for promotion from one level of education toanother and for overseas fellowships. The most controversial is the compara-tively crude test developed overseas used to select grade 6 students forfurther formal schooling. A more accurate evaluation of student achievementat this level is needed. The Form III examination and the SISC examination,which evaluate student achievement after 9 and 11 years of schooling, respec-tively, and are used to select students for further education, also needadditional study. and development to improve their reliability and validity.Staff to carry out this development are not currently available in the MET'sGuidance and Selection Unit (GSU), however.

Limited Capacity for Educational Planning and Management

31. To a large extent the two major issues of restricted educationalopportunity and low average quality and student achievement spring from thelimited capacity for educational management in Solomon Islands. Planning,programming, administration and evaluation, the key functions of management,are all weak. The main causes include: (a) the present inadequate organiza-

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tional structure of the MET (which currently lacks an effective educationalplanning unit), especially in view of the Government's policy of giving theprovinces more responsibility in alL sectors; and (b) the lack of personneltrained in educational planning and administration at the central level and ashortage of skilled personnel especially for secondary education in theProvincial Education Offices (PEOs). This has resulted in: (a) the lack of acoherent sectoral strategy for educational development which would be respon-sive to both the country's social and economic needs; (b) inadequate financialplanning to allocate resources efficiently for the development as well as themaintenance of the system; (c) confusion over decentralization of responsi-bility to the PEOs; and (d) a lack of coordination among the MET, the Ministryof Home Affairs and Provincial Government (the coordinating agency for centralgovernment dealings with the provinces), the PEOs and in some cases, the localcouncils, on budget planning and the disbursement of funds. Inadequate finan-cial planning in turn has led to deterioration of physical facilities, equip-ment and teaching materials in most schools. The poor conditions alsocontribute to the high turnover of teachers.

32. As part of the Government's current policy of giving the provincesmore responsibility, the MET is negotiating "agency agreements" with the PEOswhich would set out the exact responsibilities of both. However, the newGovernment is currently undertaking a review of the organization of the entirepublic service including the policy of devolution. Following this review, adecision would be made on whether to reorganize the MET. In the meantime,there remains an urgent need to strengthen the MET's embryonic planning unitwith staff training and the PEOs with trained personnel responsible forsecondary education, and to take a closer look at the reasons for the highteacher attrition rate and at the financing of education in an effort toprovide: (a) incentives for teachers to enter and stay in the system; and(b) adequate maintenance funds to the schools, while at the same time increas-ing efficiency in the use of the available resources.

Government Goals, Experience with Past Lending and Rationale for BankInvolvement

33. Government Goals. In support of Solomon Islands' developmentstrategy and programs for the 1980s, the Government's major educational goalsare to improve the quality and coverage of both primary and secondary educa-tion and to increase the supply of skilled manpower in line with the develop-ment needs of the country. Issues in primary education are being addressed bythe Primary Education Project, while those in secondary education would beaddressed in this project.

34. Experience with Past Lending. The first Bank Group operation ineducation in Solomon Islands is the Primary Education Project (Credit 1212-SOLof 1982, US$5.0 million (SDR 4.3 million)). Effective since July 1, 1982, theproject aims at upgrading quality, increasing enrollments, equalizing educa-tional opportunities, and improving educational management. Implementation isproceeding extremely well with about 180 of 300 planned classrooms constructedand in operation, and 70 fellows already trained in such fields as educationaladministration, multigrade teaching, etc. Disbursements are well ahead ofschedule and the project is expected to be completed in advance of the comple-tion date estimated at appraisal.

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35. Rationale for Bank Involvement. Agriculture and education have beenidentified as the primary sectors for Bank Group lending to Solomon Islands --agriculture as the sector with the greatest potential for development andeducation as the key to improving the human resource base and generating theskilled manpower needed for the country's rapidly growing public and privatesectors. The current shortage of middle- and higher-Level manpower, which hasconstrained overall development, is due to the paucity of secondary schoolgraduates who could be selected for middle- and higher-level skill training.The restricted output of secondary school graduates is the result of the verylimited number of school places and the low average quality of educationwhich, in turn, arise from weak educationaL management. It is thereforecrucial that the Government address these issues. In this project, IDA iswell placed to assist the Government because of its experience not only indeveloping coherent education sector investment strategies, but also incoordinating aid from bilateral agencies such as ADAB which have made, and infuture will make substantial contributions to education in Solomon Islands.

PART IV - THE PROJECT

Background

36. The proposed project was prepared by the Ministry of Education andTraining. An IDA mission appraised the project in October 1984. Negotiationswere held in Honiara from February 25-28, 1986. The Solomon Islands delega-tion was led by Mr. Silverio Waleka, Under Secretary, Ministry of Finance. Adelegation from ADAB also participated in the negotiations. The StaffAppraisal Report (No. 5645-SOL, dated April 8, 1986) is being circulatedseparately. Supplementary project data are provided in Annex III.

Objectives and Scope

37. The proposed project would assist the Government to improve accessto and the quality of lower secondary education and strengthen educationalmanagement. To achieve these objectives, the project would undertake thefollowing activities:

(a) improvement of educational opportunity through: (i) expansion oflower secondary school enrollment by constructing, furnishing andequipping three new lower secondary schools to provide about 1,220student places in three disadvantaged provinces; (ii) development ofa preservice diploma training program to train about 35 lowersecondary teachers annually in addition to Limited preservicetraining overseas for lower secondary teachers; and (iii) carryingout a feasibility study for the SICHE to include academic and campusmaster plans;

- LI -

(b) improvement of educational quality through the provision of:(i) equipment and teaching materials, including textbooks, to allForm I to III classes; (ii) in-service upgrading for about 60 lowersecondary teachers; (iii) staff training and consultants for theCurriculum Development Center, along with staff housing; and(iv) new staff, staff training and consultants for the MET'sGuidance and Selection Unit; and

(c) improvement of educational management through the provision of:(i) new staff and staff training for establishing an Implementationand Planning Unit (IPU) in the MET and for the Provincial EducationOffices; and (ii) consultants for preparation of studies on teacherutilization and incentives and the financing of education with anemphasis on secondary education, and a sector investment plan.

Improvement of Educational Opportunity (proposed outlay US$6.7 million exclud-ing contingencies)

38. To expand educational opportunity in the three most disadvantagedprovinces, Malaita, Guadalcanal and Western, each would be provided with a newPSS of about 405 places, equivalent to 3 classes in each grade (Forms I-III). This addition of about 1,220 new places (along with another 100 newplaces at the Waimapura NSS already being financed under another Australianfunded project) would increase lower secondary enrollment from about 4,300 in1985 to about 5,620 in 1991. The enrollment ratio for the population aged 13-15 years would rise from about 212 to 23%. Geographical distribution ofeducational opportunity across provinces would improve by almost 40% as indi-cated by the Gini coefficient- which would drop from 0.161 in 1985 to 0.099in 1990. In addition, a three-year preservice diploma training program withabout 100 places would be developed at the SICHE in the College of Educationand Cultural Studies, to begin in 1987, with an annual output of about35 lower secondary teachers. These teachers would staff the new PSS andreplace teachers leaving the system. Students would enter the program follow-ing Form V. Courses would be offered in all subject specializations in thelower secondary curriculum except agriculture. A feasibility study forreorganizing and expanding the entire SICHE, to include academic and campusmaster plans, would also be undertaken. The Government also plans to examinethe effect on its primary teacher training program of the increased demand forenrollment at the SICHE caused by the "foundation year" and to formulate anaction plan to meet the demand, including proposals on implementation andfinancing.

39. The project would include constructing, furnishing and equipping thethree PSS. Boarding would be provided for all students, and staff housingwould be included. New classrooms, boarding and staff housing would also beprovided to accommodate the new preservice diploma program at the SICHE as

1/ The coefficient ranges from 0 to 1, with 0 representing an entirelyequitable distribution of school places and 1 representing a veryinequitable distribution.

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would about 15 man-years of expatriate teacher trainers, 75 man-months ofshort-term consultants in institutional and course development, and 12 man-months of overseas attachment programs for 6 national teacher trainers. Inaddition, preservice fellowships overseas would be provided to train about19 teachers in diploma programs after the start of the new program, mainly inagriculture. About 12 man-months of consultant services would be provided forthe feasibility study for reorganizing and expanding the SICHE to includeacademic and campus master plans. Draft terms of reference for the study havebeen drawn up. At negotiations, the Government provided assurances that:(a) it would make every effort to ensure that all teachers trained preserviceunder the project would be bonded to teach in the PSS for periods equal totheir periods of study; (b) by October 31 each year during the project period,it would submit to IDA for its review and comments a report on the operationof the primary and secondary teacher training programs of the SICHE for boththe current and the following academic years to include such information asIDA may reasonably request; (c) by December 31, 1986, the action plan formeeting the additional demand for enrollment at the SICHE created by the"foundation year" would be submitted to IDA for its review and comments; and(d) the SICHE study would be conducted in accordance with terms of referenceacceptable to IDA and submitted to IDA for its review and comments by June A3,1987, and the recommendations of the study as agreed between the Governmentand IDA would be carried out by the Government in accordance with a timeschedule acceptable to IDA.

QuaLity Improvement (proposed outlay US$1.1 million excluding contingencies)

40. To improve the delivery of quality education at the lower secondarylevel, equipment, textbooks and teaching materials would be provided to allForm I to III classes, teacher qualifications would be upgraded throughin-service training, and the CDC and the GSU would be strengthened. Theproject would provide about 20,000 textbooks for the three new Pss and the 20existing schools which would also receive about 280,000 supplementary prin-tedmaterials to be produced by the CDC. In addition, each school would beprovided with simple instructional equipment including handtools for practicalsubjects. About 60 lower secondary teachers would be upgraded in-service todiploma level at the SICHE daring semester breaks and by correspondence duringthe project period. About 36 man-months of short-term consultants would beprovided to develop the upgrading courses. In addition, during their annualin-service workshop (already being funded under the MET's regular recurrentbudget), training would be provided to all teachers focusing on the effectiveuse of textbooks and materials.

41. Two new Curriculum Development Officer/Subject Advisor posts, to befilled by nationals in two core subjects, have recently been created in theCDC. These posts have been established at a civil service level attractive toqualified personnel; the four existing posts have also been upgraded to asimilar level. After filling these six posts, the CDC would have a complementof Advisors who would provide backup advisory service to all schools, inspectthe schools and conduct the annual workshops in their respective subjectareas. The CDC would be able to update regularly both the curriculum and theteaching materials. About 72 man-months of overseas fellowships for trainingthese Advisors and 63 man-months of consultants to work with them would be

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provided. In addition, the CDC offices would be remodeled, and housing forthe Advisors would be provided.

42. The Examinations Officer post in the GSU, now filled by an actingexpatriate officer and funded by the UK's Overseas Development Administration(ODA), has recently been converted into a local post and a second local postin test selection and evaluation would also be created at a civil servicelevel attractive to qualified personnel. A new expatriate officer willcontinue to advise the GSU under the ODA funding. Equipment and staff train-ing would be provided for the GSU to enable development of new and improvedtests for the national examinations and provision of better student guidanceand counseling. The two new staff along with the Chief Education Officer,Selection and Guidance, would be trained overseas for a total of 48 man-monthsin examinations, guidance and counseling, and 36 man-months of specialist ser-vices, in addition to the ODA advisor, would be provided to develop testinstruments and procedures.

Management Improvement (proposed outLay US$0.3 million excludingcontingencies)

43. To strengthen educational management capacity at the national andprovincial levels, implement the project and plan for future investments ineducation, a new Implementation and Planning Unit would be established andmaintained in the MET. In addition, the Government plans eventually to createProvincial Education Officer (Secondary) posts in each province. Prioritywould be given to the province: where the new PSS are to be built. Studies onteacher utilization and incent;ves and on financing and efficiency of educa-tion (with an emphasis on secondary education and the improvement of schoolmaintenance), and preparation of a sector investment plan would be under-taken. By project completion, financial analysis and pLanning and projectimplementation would be improved and secondary education administered moreeffectively. In addition, future development projects would have been plannedmore systematicalLy.

44. Appropriate staff would be appointed and trained for the new posi-tions. Eight MET staff have just returned from studying overseas in educationmanagement and business studies as part of the Primary Education Project.Four of these staff will be assigned to posts in the IPU as director, educa-tor/implementer, procurement officer and accountant, in addition to a fifthstaff member to be appointed as education planner. The three ProvincialEducation Officer (Secondary) positions would be submitted for establishmentto coincide with the opening of the new PSS. About 3n man-months of overseasfellowships would be provided to train IPU staff and the Provincial EducationOfficers (Secondary) in education planning and administration.

45. About twelve consultant man-months would be provided to prepare thestudies on teacher utilization and incentives and the financing of education,the sector investment plan and future projects and to help the Covernmentprepare the project completion report. Draft terms of reference for thestudies on teacher utilization and incentives and the financing of educationhave been drawn up. At negotiations, the Government provided assurancesthat: (a) it would establish and maintain the IPU with functions and

- 14 -

responsibilities acceptable to IDA with competent staff in such numbers asagreed with IDA; (b) the studies on teacher utilization and incentives and thefinancing of education would be conducted in accordance with terms ofreference acceptable to IDA and submitted to IDA for its review and commentsby June 30, 1987, and the recommendations of such studies as agreed betweenthe Government and IDA carried out by the Government in accordance with a timeschedule acceptable to IDA. Establishment of the IPU would be a condition ofeffectiveness of the Credit.

Project Management and Implementation

46. The project would be implemented by the IPU in coordination with theCDC, SICHE, other MET divisions and the PEOs. An interim project director hasbeen appointed to act until the establishment of the IPU. Equipment andvehicles for project administration would be provided under the project. Inaddition, an implementation advisor would be appointed to assist the IPU inthe overall implementation and management of the project. Three man-years ofconsultant services would be provided for this purpose.

47. A Project Coordinatng Committee (PCC) for this project has also beenappointed, consisting of representatives from the MET, the Ministry ofFinance, the Ministry of Economic Planning, SICHE and the Home Affairs Officesfor Malaita, Western and Guadalcanal provinces. The PCC will act in anadvisory capacity and will monitor project implementation. The project wouldbe implemented over a period of about five and one-half years, starting inJuly 1986. All project items are expected to be fully implemented byDecember 31, 1991. The Closing Date would be December 31, 1992.

Status of Project Preparation

48. Sites for the three new PSS have been identified and are beingacquired either through purchase or long-term lease. Major problems in siteacquisition are not anticipated. Land is available on the SICHE campus forconstruction of the new facilities required for the secondary teacher trainingprogram and for the CDC housing. The Public Works Department will providearchitectural services for the SICHE construction and the CDC housing andremodeling, and consultant architects will provide such services for the threenew PSS. Twenty-two secondary teachers were enrolled overseas in degreeprograms in 1985 and four in diploma programs under the Government's ownfunding. Another 10 are expected to enroll overseas in degree programs in1986 along with 16 in diploma programs. The new lower secondary teachertraining program at the SICHE will commence in 1987. Subject panels ofsecondary teachers established by the CDC to advise on the secondary schoolcurriculum have completed the master lists of equipment, textbooks andmaterials needed to teach each of their subjects and the lists have beensubmitted to IDA. CDC staff have visited three typical existing secondaryschools to determine overall equipment and textbook needs. The two unfilledexisting CDC posts have been readvertised. A preliminary review of teacherincentives has been completed by the MET and a recommendation on increasingteacher salaries to bring them in line with other civil service salariesproposed. By mid-1986, the Government expects to have completed: (a) prelimi-nary site layouts for the new PSS using the Government's standard building

- 15 -

designs, the construction to be undertaken at the SICHE and the CDC housingand remodeling; and (b) details of its policy on textbook replacement.Acquisition of one PSS site would be a condition of effectiveness of thecredit, and at negotiations, the Government provided assurances that allremaining project sites would be acquired by December 31, 1986.

Costs

49. The total cost of the project is estimated at US$10.0 millionequivalent. Base costs refer to February 1986 prices. Construction costs arebased on contract awards for similar facilities in the Solomon Islands.Furniture costs are estimated at 10 of construction costs for academic andcommunal faciLities, 8% for boarding E&cilities and 15 for staff housing.The costs of equipment, textbooks and materials have been estimated on thebasis of standard lists and recent tenders, and were adjusted to include localtransportation and installation. Area and capital costs per student place andper housing unit are reasonable compared with Bank-wide averages. Buildingmaterials and equipment, textbooks and educational materials imported for usein the project are all exempt from import duties and taxes. Unit costs forconsultants include salaries, allowances and airfare. Unit costs for fellow-ships are estimated from about US$300 per man-month at nearby South Pacificinstitutions to about US$600 in Australia, both including internationaltravel.

50. The contingency allowance of US$1.9 million (about 23Z of baselinecosts) includes contingencies for unforeseen physical conditions of 10 forcivil works, furniture, equipment, textbooks and materials, and professionalservices, and 5% for all other categories. Price contingencies were calcu-lated for both local and foreign costs in accordance with the implementationschedule and the following expected average annual price increases: 7.2% for1986, 6.8% for 1987 and 1988, 7Z for 1989, 7.1% for 1990 and 4% for 1991.Accordingly, aggregated price increases are estimated at about 13% of baselinecosts plus physical contingencies.

51. The foreign exchange component of US$5.8 million (about 58Z of thetotal estimated project cost) was calculated on the basis of the followingestimated foreign exchange percentages: civil works, 40%; furniture, 35%;equipment, textbooks and materials, 90%; professional services and foreignconsultants, 90%; overseas fellowships, 90%; and local training, 20%.

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Financial Plan

52. The proposed IDA Credit of US$5.0 million equivalent and grants forparallel financing from ADAB totalling about US$4.3 million equivalent wouldtogether finance about 93% of the total estimated project cost. The Govern-ment would be responsible for the remaining 7% of project costs or aboutUS$0.7 million equivalent. The IDA Credit would cover about 40% of theestimated foreign exchange cost of the project and about 70X of estimatedlocal costs. A commitment in principle has been received from ADAB for itsshare of the funding which would be committed by two methods:

(a) a grant of $A 4.0 million from ADAB's cofinancing facility. IDAwould administer and disburse these funds consistent with the co-financing arrangements among the IBRD, IDA and ADAB; and

(b) a second grant of SA 2.5 million from ADAB's bilateral aid funds.These funds would be administered and disbursed by ADAB.

A cross-effectiveness condition between the IDA Credit and the ADAB grantswould be included in the Credit Agreement. In addition, a memorandum ofunderstanding would be signed between IDA and ADAB on arrangements fordisbursements, supervision, etc. by both institutions. Retroactive financing,amounting to US$50,000 would be provided under the Credit for foreign consul-tants to prepare the studies (para. 45) beginning January 1, 1986. At negoti-ations the Government provided assurances that it together with IDA wouldreview by October 31 each year beginning in 1986, the progress achieved inimplementing the project and the allocation of Government counterpart funds(investment and recurrent) necessary for the purposes of the project duringthe following fiscal year.

Recurrent Costs

53. Additional recurrent costs incurred as a result of the project areestimated at 9% of the recurrent budget for education, or about 1.5Z of thetotal government recurrent budget. This increase over the five and one-halfyears of project implementation is within the revenue-generating capacity ofthe economy, given recent growth performance and the priority placed by theCovernment on education. Therefore, there should be no difficulty infinancing the recurrent costs of the education investment program.

-17 -

Procurement

54. Procurement arrangements are shown in the table below:

PROCUREMENT ARRANGEMENTS(USS Million)

Total costProcurement method including

Category of expenditure ICB LCB Other contingencies

Civil works 5.1 0.2 0.7 6.0(4.7) (0.2) (0.0) (4.9)

Furniture and equipment, - 1.6 1.6textbooks and materials - - (0.0) (0.0)

Professional services - - 0.4 0.4- - (0.0) (0.0)

Technical assistance - - 2.0 2.0= = (0.1) (0.1)

Total 5.1 0.2 4.7 10.0(4.7) (0.2) (0.1) (5.0)

Note: Figures in parentheses refer to Credit allocations.

55. The contract for construction of the three new PSS (estimated valueUS$5.1 million including contingencies) would be awarded as one package on thebasis of international competitive bidding procedures in accordance with IDAGuidelines. The invitation to bid, proposed award and final contract wouldall be subject to prior review by IDA. Remodeling of the CDC offices andprintshop and the new CDC housing would be too small to attract foreign compe-tition and would be awarded on the basis of local competitive bidding proce-dures acceptable to IDA. Consultancy services financed by the Credit would beobtained in accordance with IDA's guidelines for the use of consultants. Allother procurement would be carried out by the Government or ADAB under theirown regulations.

Disbursements

56. The proposed credit of US$5.0 million equivalent would be disbursedover a period of six and one-half years. Disbursements would be made asfollows: (a) civil works for construction of the three PSS and the CDChousing and office remodeling - 80% of total costs; and (b) specialists forthe studies on the financing of education and the sector investment plan andother sectoral studies for preparation of future projects - 100% of totalcosts.

- 18 -

57. Under the proposed Credit, a special account of US$333,000 (equiva-lent to SDR 300,000) would be set up and maintained in US dollars at a bankacceptable to IDA to finance project expenditures. Under ADAB's cofinancinggrant, a second special account of $A 270,000 would also be set up andmaintained in Australian dollars. Applications for replenishment would besubmitted quarterly, or more frequently if necessary, in amounts of not lessthan US$165,000 and $A 135,000, respectively. Disbursements for the contractto be awarded on the basis of ICB would be made against full documentationwhile all remaining disbursements from both accounts would be based on state-ments of expenditure. Supporting documents would be retained by the IPU andmade available for review, as requested, by visiting IDA/ADAB missions. TheMET's experience with a special account and the use of SOEs under the PrimaryEducation Project is satisfactory.

58. Disbursements are estimated to be made within six months of expendi-tures, on average. To allow sufficient time for submission of final with-drawal applications following the scheduled completion date of December 31,1991, the Closing Date would be December 31, 1992. In a comparison of dis-bursements for the proposed project with the Primarv Education Project'sactual and estimated disbursements, this Credit is expected to be disbursed ata somewhat slower rate, as fewer consultants are being provided to assist inproject implementation.

Accounts, Audits and Reporting

59. The IPU would establish and maintain a separate account for allproject expenditures. The account would be maintained in accordance withsound accounting practices. Auditing of the account would be performedannually in accordance with procedures satisfactory to IDA and an audit reportsubmitted to IDA within nine months of the end of the Government's fiscalyear. Within six months after the Closing Date, the IPU would submit aproject completion report to IDA.

Benefits and Risks

60. Benefits. The project would widen the opportunity for secondaryeducation in disadvantaged provinces by providing about 1,220 more schoolplaces in Forms I-III, an increase of 28% from the 4,300 available places in1985. The enrollment ratio in 1991 would be about 23% of the age group,compared with 21% in 1985. Geographical distribution of educational opportu-nity across provinces, as measured by the Gini coefficient (para. 38), wouldimprove almost 40%. Sufficient secondary school teacher would have beentrained to staff the new PSS and to fill existing vacancies and those causedby normal attrition. The Curriculum Development Center, with an increasedstaff, would be much better equipped to provide supporting services toteachers in the main subject areas in the curriculum. The project wouldimprove the quality of secondary education through the provision of better andmore equipment and instructional materials, including cextbooks, and bettertrained teachers. The strengthened Guidance and Selection Unit would be ableto improve test designs and procedures, facilitating efficient implementationof national examinations and the selection of students. Better trained staffin the Implementation and Planning Unit and the Provincial Education Officeswould improve overall educational administration and planning.

- 19 -

61. Risks. There appear to be several risks to successful implementa-tion of the project. The lack of experienced staff for project implementa-tion, poor communication between the MET and the PEOs and no staff at allassigned to secondary education in the PEOs could delay implementation ascould complicated land acquisition procedures. These risks would be minimizedby staff training, the proposed establishment of the IPU (para. 45), creationof new secondary education officer posts in the PEOs, drawing up of agencyagreements between the MET and the PEOs and initiating land acquisitionprocedures well ahead of physical construction (para. 48). A further risk isthat not enough Form V leavers would be attracted into secondary teaching andthat teacher wastage would continue at the present rate, but these would becounteracted by bonding of teachers following their training and by implemen-tation of the results of the study on teacher utilization and incentives. TheCDC might not be able to recruit all the officers needed, but this risk wouldbe reduced by the recent upgrading of the levels of the CDC posts, and byproviding staff training and housing. In order to minimize financial risksduring implementation, IDA and ADAB would jointly review project implementa-tion and financing with the Government each year.

PART V - RECOMMENDATION

62. I am satisfied that the proposed Credit would comply with theArticles of Agreement of the Association.

63. I recommend that the Executive Directors approve the proposedCredit.

A. W. ClausenPresident

AttachmentsApril 11, 1986Washington, D.C.

ANNEX I- 20 - Pa8eT 1of 5

Uows. rmTaLm - SI U TO AT RTmoLow Il m P OPS iRUC COP. IMEIlSD AYRRMU p

muci (MMa slow ITMATWE)soTr MULE INCNS DOLE

OthL 1970tk =TINR UAU A PACIFC LAT. ANUIICA CA

tm I 1ui Sq 2)TOTAL 28-, 20.4 28.4AIRICULIUMAL .9 9 0.9

era cPTa ar ) .. .. n.a. 1011.1 875.

wom i rnr camfl(KiLo O Or oiL QUnvamLr) 32.0 92.0 200.0 566.8 993.4

POULATIN -M Vim. STATISItCSPOPUATICN.XIO0-TZA, (THOUSANDS) 125.0 143.0 256.0MEDAl! POPUIATION CZ OF TOTAL) 3.1 9.3 23.2 35.9 67.7

POPUIATIXO PEIJECXISPOPULATION IN TEA 2000 (HILL) 0.4STATIONARY POPUATION CHILL)POPULATION NOSNTIR.

POPULATION DEISITYPER SQ. KN. 4.4 5.7 8.9 386.9 48.0Pt SQ. M. AGRI. LND 141.6 183.1 272.2 1"1.2 91.1

POPUIATION AGE STRUCTUR CS)0-14 TVI .. 46 4S.J 38.2 38.5

15-64 YIS .. 51.9 £1.6 57.7 57.165 AND A80VI .. 3.5 3.0 3.5 *.2

POPULATION GROWER RATE CZ)TOTAL 1.6 2.6 3.4 2.3 2.URDAN 12.9 13.6 12.5 *.1 3.6

IC 8RATH LCT (PR tODS) .. 41.0 3b.0 30.1 30.9C;UIDE WDEA t RAT (PER 1305S) .. 11.0 13.0 9.4 8.0GROSS REPROIUCTION RATE .. 3.1 3.5 1.9 2.0

FAMILY PLAJINIACCCEORS. AISIIAL C(TUbS)USERS (2 OF MARRIED EN) .. .. .. 56.5 65.3

vom Am D smaIDEX oF FMOD ?RO0. PER CAPITA(1969-71-100) 111.0 100.0 124.0 126.4 109.6

PER CAPITA SUPPLY OFCALORIS (S OP REQUIIFINTS) 87.0 80.0 78.0 115.7 113.2PROTEUS (GRAS PER DAY) 60.0 41.0 55.0 60.3 69.4

OF WHICII ANIMAL AND PULSc 13.0 15.0 15.0 Id 14.1 34.2

WIILD CAGES 1-4) MAE RAZE .. 6.1 4.l Ic 7.2 4.8

LIF EXPECT. AT I5m1 (TS) .. 31.0 57.0 60.6 64.8INFANT tDrr. RAT (PER THmUS) .. 52.4 52.0 44.9 59.7

ACCESS TO SAFE WAYER (ZRP)TAL .. .. 27.0 /e 46.0 65.3URBAN .. .. 9.0 7; 57.6 76.5RURAL .. .. 20.0 T 37.1 ".2

ACCESS TO EXCRE'A DISPOSAL(u Or PoPuMAION)

TOrAL .. .. 17.0 ic 50.1 56.3URBAN .. .. 82.0 7; 52.9 73.4RURAL .. .. moT.7 44.7 25.5

POPULATION PER PHYSICIAN 5730.0 420.0 7130.0 If 7751.7 1909.7POP. PER NURSING PERSON 3390.0 Ig 790.0 410.07o 244.8 808.2POP. PER HOSPITAL BED

TOTAL 150.0 140.0 150.0 IC 1112.1 362.0URBA 30.0 100.0 170.o 7i 6451.4 622.0RURAL 130.0 a 160.0 40.0 7T 23596.5 2716.7

ADIISSIONS PER SPITAL MED .. 16.1 18.0 If 41.1 27.5

AVERAGE SUR OP IOUSENOLDTOTAL .. 5.4 5.6 IhUfBJ ,, 54 5.5 7rhRRAAL .. 5.4 5.6 4.

AVERACE NO. OF PERSONS/ROOK1TOTAL .. ..

URBAN .. .. 1.9 bRURAL .. ..

PERCENrTAE OF DMELLI.ICS WM1H ELECT.TOTAL .. ..

URBAN .. .. 8.O lbRURAL .. .. . ..

- 21 - ANNEX IPage 2 of 5

Sa[eN ll - 8CIAL IND CAf0 DjRW

MOST (HOST RCENDT ESTIKATE) Lbl960Lb 17l SCENT MIDDLE INMt MIDDLE

rnakIS7 - ASIA & PACIFIC LAT. AfRICA A CAR

AWflSTED ENOUITRATIOSPRLNAITI TOTAL .. 61.0 60.0 / 100.7 106.7

IHAE .. .. .. 104.4 10i.5FAL .. .. .. 97.2 104.6

SKCONDR TOTAL .. 7.0 16.0 La 47.8 44.2MALE .. .. .. 50.6 42.7MAL .. .. .. 54. 44.9

VOCATIOI. (2 01 310L0*) 14.6 17.7 9.1 I 18.4 13.3

PUPIL-TEACIZI RATIOPRIAR 19.0 24.0 25.0 30.4 29.9SCONDAI 14.0 14.0 16.0 L 22.2 16.7

PARSECE CABIEOSMAUl POP .. .. 5.0 /d 10.1 46.0RADIO RCEIVERS/ITUIAND POP 4.8 49.1 98.0 172.9 32B.3TV EVzEgS/TROUSASD POP .. .. .. 58.5 112.4NIZRIAPE ("DAILYE CRUML

LITERST") CIROuLATIONPzU TOM053D POPULATION .. .. .. 65.3 91.1

CUZIA AINUAL ATIUDAICE/CAPITA 0.8 .. 0.5 d 3.4 2.4

TOTA LABOR FORCE (CTiuS) .. .. 23.0 /hFzMALE (PZRCZNT) .. .. 16.6 87 33.6 23.6AGRICULTUIR (PCENT) . .. 4.7 52.2 31.4INDUSTRT (PUICI) .. .. 15.0 71 17.9 24.3

PAITXCIPATION RATE (PERCENT)TOTAL .. .. 28.0/ 38.9 33.5KALE .. .. 47h0 50.8 51.3FAL .. .. 9.5 7E 26.8 15.9

ECOMOHCC DEPENDENCY RATO .. .. 1.2 J8 1.1 1.3

IumN DSIOPERCENT OF PRIVATE INCZRCQIVISD myf

RIGEST 51 01 ROUSEROLDS ..ICEST 20= OF HOhSEfOLDS .. .. .. 4U.O

LOElST 20S or uoUSuows .. .. .. 6.4LOVEST 402 ROF SUOWS .. .. .. 15.5

ESTITD ABLUTE POVER 130USLEEL (USS PER CAPITA)

URAS .. .. .. .. 288.3EL. - .. .. .. 151.9 185.3

ESTIMTD RELATV POVERTY IKCUSLEVEL CUSS PER CAPITA)

URBAN .. .. .. 177.9 519.8iRURL .. .. .. 164.7 359.7

EsTIMAED POP. BELW ABSOLUTEPOVERTY INOM LEVL CE)

URBAN .. .. .. .23.5RURAiL .. .. .. 37.8

NOT AVAILABLENOT APMLCBE

/a The group average far each indcator are population-weighted arithmetic mane. CovraP of countriemon the Indicatorn depedu on availability of data and In not unlform.

/b Ueleo. otbarvae noted, 'Data for 1960" rater to any year betwn. 1959 and 1961; 'Data for 1970' between1969 and 1971; and data for "Wont Recant ntlabte" between 1981 and 1983.

/c 1979; /d 1977; /a 1980; /f 197B; f 1962; lb 1976.

JUNE. 1985

ANNEX I- 22 - Page 3 of 5

DEFINITIONS OF SOCIAL INDICATORSNwc Atheoug the duta are drawn frren aurce generallyjudpd the most authoritative and reliable, it should abo be noted that Ihey may not be ineinationallyconparble bemwe of the lack of adardized deinItions a oncepts used by different countries in collkting the data. The data are. noetheks ueful todeacibe orden rr magnitsde. indica 4tremds. and tbracterize crtin major dilferenc between countries.The reference oupare (I) the sne country group of tie subject country and (2) a county group wit omewhat higher ave incone than the countrygroup of the subit country (except eo -High loonic Oil xpartenw group whee Middk Income Norh Africa nd Middl East is chosen Remuse aottrongersocioculturs altmtities). In the reference group dat the aveas are popultion wighted arithmetic muns for each indicLtor and shown only when mjorityofthe couutries inagroisp ha data for that indicator nce ite coverageofcountrie among tbe indicatordepcd on the availability ordta and isnot uniformcaution must beexerised in rdating average atone indicator to another. Thee average are only usdul in csnpanng the value ofone indicator at a time amonthe country and rdefence group

AREA (thousand sq.km.) CMsk Rinb Rate (per thra- d)-Number of live births in the yearToea-Total surface area comprising land arca and inland waters per thousand of mid-year population: 1960. 1970. and 1983 data.1960. 1970 and 1983 data. Crud Deat Rast (per thosanad)-Number of deaths in the yearAgraubrai-Estimate of agricultural area used temporarily or per thousand or mid-year population; 1960. 1970. and 1983 data.permanently for crops, pastures. market and kitchen gardens or to Gross Repredcrie Rate-Avcrage number of daughters a womanlic falow. 1960. 1970 and 1982 data. will bear in her normal reproductive period if she experiences

prescnt agspecific rertility rates; usually five-year averages endingGNP PER CAPITA (USS)-GNP per capita estimates at current in 1960. 1970. and 1983.market prices, calculated by same conversion method as World Family PkaSA y-AWceprors, Anal (theosands)-Annual num-Bank Aras (198143 basis): 1983 . ber of acceptors of birth-control devices under auspices of natiunal

ENERGY CONSUMPTION PER CAPITA-Annual apparent family planning program.consumption of commercial primary energy (coal and lignite. FffUy Pa r-Usrs-s (peret of mrred nmef-The prcen-petroleum. natural gas and hydro-. nuclear and geothermal elec- tage of married women or child-bearing age who are practicing ortricity) in kilograms Of oil equivalent per capita; 1960. 1970. and whose husbands are practicing any form orcontraception. Women1982 data. ofchild-bearing age are generally women aged 1549. although for

some countries contraceptive usage is measured for other agePOPULATION AND VITAL STATISTICS groups.

Total P1p9A8 ioe, Mid-da. (thousands-As of July 1: 1960. 1970, FOOD AND NUFRITIONand 1983 data.

.Iux ofFoodPrednctia Per Capita (199-71 = 11)-Index of perUrba Popalation (percent of rota)-Ralio of urban to total capita annual production of all food commodities. Productionpopulation; different definitions of urban areas may affect compar- excludes animal feed and seed for agriculture. Food commoditiesability of data among countries: 1960. 1970. and 1983 data. indude primary commodities (c.g. sugarcane instead of supr)Populton Projecos which are edible and contain nutrients (e.g. cofee and tea arePopulation in year 2000-The projection of population for 2000. excluded) they comprise cereals. root crops. pulses. oil seeds.made for each economy separately. Starting with information on vegetables, firuits, nuts. sugarcane and sugar beets. livestock, andtotal population by age and sex. fertility rates, mortality rates. and livestock products. Aggregate production of each country is basedinternational migration in the base year 1980. these parameters on national average producer price weights: 1961-65. 1970. andwei. projected at five-year intervals on the basis of gcnerpiited 1982 data.assumptions until the population became stationory. Per CaWp upply f Calis (pecet qfrequirements)-Comput-Stationary popularid-ls one in which age- and sex-specific rror- ed from calorie equivaknt of net food supplies available in countrytality rates have not changed over a long period. while age-pecific per capita per day. Available supples comprise domestic produc-fertility rates have simultaneously remained at replacement level tion. imports less exportS and changes in stock. Net supplics(nct reproduction rate = 1). In such a population. the birth rate is exclude animal feed. seeds for use in agriculture. quantities used inconstant and equal to the death rate. the age structure is also food processing. and losses in distribution. Requirements wereconstant. and the growth rate is zero. The stationary population estimated by FAO based on physiological needs for nonnal activitysize was estimated on the basis of the projected characteristics of and health considering environmental temperature, body weights.the population in the year 2C00. and the rate of decline of fertility age and scx distribution of population, and allowing 1O percent forrate to replacemnct level. waste at household level; 1961. 1970 and 1982 data.Popuation Monaemum-Is the tendency for population growth to Per Capita Supply aPteia (grat per day)-Protein content ofcontinue beiand the time that replacenent-level fertility has been percapita net supply of food per day. Net supply of food is definedachieved: that is. even after the net reproduction rite has readhed as above. Requirements for all countries established by USDAunity. The momentum of a population in the year r is mcasured as provide for minimum allowances of 60 grams of total protein pera ratio of the ultimate stationary population to the population in day and 20 grams of animal and pulse protein, of which IO gramnthe year r. given the assumption that fertility remains at replace- should be animal protein. These standards.are lower than those ofment level from year f onward, 1985 data. 75 grams of total protein and 23 grams of animal protein as anlPuatio DLsarui average for the world. proposed by FAO in the Third World FoodPer sqkm.-Mid-year population per square kilometer (100 hec- Supply. 1961. 1970 and 1982 data.tarcs) of total arca; 1960. 1970. and 1983 data. Per Caia Protein Supply born Animal d Pal se-Protcin supplyPer sq.kn. agictadural land-Computed as above for agricultural offood derived from animals and pulses in gramns per day; 1961-65.land only. 1960. 1970. and 1982 data. 1970 and 1977 data.Pop_uios Age Strutnre (perrent)-Children (0-14 years). work- Chl (ges 1-4) Dath Rate /per thoJsand)-NN umber ofdeaths ofing age (I5-64 years), and retired (65 yearsand over) as percentage children aged 1-4 years per thousand children in the same ageof mid-year population: 1960. 1970. and 1983 data. group in a given year. For most developing countries data derived

Population Growth Rate (perceitsQ-4otal-Annual growth rates or from life tables: 1960. 1970 and 1983 data.total mid-year population for 1950-60. 1960-70. and 1970-83. HEALIHPopation CGrowth Rate (percent)- -urba-Annual growth rates Lgte Expectany at siri (years)-Number of years a newbomof urban population for 1950-60. 1960-70. and 1970-83 data. infant would live if prevailing patterns of mortality for all people

ANNEX I-23- Page 4 of 5

at the time of of its birth were to stay the same throughout its lire; PupU-teacher Ratie - prinary, and secondary-Total students en-1960, 1970 and 1983 data. rolled in primary and secondary levels divided by numben ofInfat Monaty Rate (per thousamiO-Number of infants who die teachers in the corresponding levels.before reaching one year or age per thousand live births in a givenyear, 1960, 1970 and 1983 data. CONSUMPTIONACES te Soft Wear (pfrcet af popasvims)-totd, wrhm, ad Passeer Cars (pr thmsnd papuudou,-Passenger cars com-red-Number of people (total. urban. and rural) with reasonable prise motor cars eating less than eight persons: excludes ambul-acs to safe water supply (indudes treated surface waters or ances. hearses and military vehicles.untreated but uncontaminated water such as that from protected Re&# Receivm (per thousandpopuladiofl-AII types of receiversboreholes, springs and sanitary wells) as percentages of their respec- for radio broadcasts to general public per thousand of population;tive populations. In an urban area a public fountain or standpost excludes un-licensed receivers in countries and in years whenlocated not more than 200 meters from a house may be considered registration of radio sets was in effect; data for recent years mayas being within reasonable access of that house. In rural areas not be comparable sinc most countries abolshed Icasing.reasonable access would imply that the housewife or memnbersof the T hecompar sinc osountries aoieiensinochouselhold do not have to spend a disproportionate part of the day TVRce e thosn rl J-TV receivers forbroadcastin fetching the fanily's water nceds. to general public per thousand population: excludes unlicensd TV

receivers in countries and in years when registration Jf TV sets wasAccess to Escreta Disposa percent of p_oplwn)-teteal, whm, in effect.and rura-Nunber of people (total, urban, and rural) served byexcreta disposal as percentages of their respective populations. wapcr C ircalti (per thousandpopatdon)-Shows the aver-Excreta disposal may include the collection and disposal, with or age crculation of "daidy general interest newspaper." defined as awithout treatment, of human excreta and waste-water by water- periodical publication devoted primarily to recording general news.borne systems or the use of pit privies and similar installations. It is considered to be "daily' if it appears at least four times a week.Populbion per Phypsian-Topulation divided by number of prac- Cimea Ammu Attendwe per Capita pr Yr-Based on thetising physicians qualified from a medical school at university level. number or tickets sold during the year. including admissions toPIbp duion per Nwurng Persopu-lbplation divided by number of drive-in cinemas and mobile units.practicing male and female graduate nurses, assistant nurses LABOR FORCEpractical nurses and nursing auxiliaries. LabOR FORCEPops/or per HospWtal Bedt-oal, aras and rwol-Ptpulation Totdl Labor frce oandsun-Economically active persons, in-(total, urban. and rural) divided by their respective number Of chding armed forces and unemployed but excluding housewives.hospitalbedavailablein public and private, general and s p eda students. etc.. covering population of all ages. Definitions inhospitals and rehabilitation centers. Hosbeals are establishmets various countries arc not comparable; 1960. 1970 and 1983 data.permanently staffed by at least one physician. Establishments prov- Femok (percenfl-Fernale labor force as percentage of total laboriding principally custodial care are not included. Rural hospitals, force.however. include health and medical centers not permanently staffed Agricahure (percens)-Labor force in farming. forestry. huntingby a physician (but by a medical assistant. nurse. midvwie. etc.) and fishing as percentage of total labor force: 1960. 1970 and 1980which offer in-patient accommodation and provide a limited range data.of medical racilities. Iadazry (percent)-Labor force in mining. construction, manu-Adudsions per Hospital Ied-Total number of admissions to or facturing and electricity, water and gas as percentage of total labordischargecs from hospitals divided by the number of beds. force; 1960. 1970 and 1980 data.

Proicjption Rate (percent k-tosal mwke, sdf tnsil-ParticipationHOUSING or activity rates are computed as total, male. and female labor forceAerge Size of iOusehold (persons per husho)-eotal. hbam, as percentages of totaL male and female population of all agesadrAura-A household consists of a group of individuals who share respectively: 1960. 1970. and 1983 data. hese are based on ILOsliving quarters and their main meals. A boarder or lodger may or participation rates reflecting age-sex structure of the population. andmay not be included in the household for statistical purposes. long time trend. A few estimates are from national sources.Average Number of Persons per Room-total, arban, and rura- Ecveomic Drpendency Rack-Ratio of population under 15. andAvcrage number of persons per room in all urban. and rural 65 and over. to the working age population (those aged 15-64).occupied conventional dwellings. respectively. Dwellings excludenon-permanent structures and unoccupied parts. INCOME DISTRIBUTIONPercentage of Dwelkqs wit Eecricip-totaetl, ham, and rul- Perntaxe of Total Dspabk Income (boh in cash and kind)-Conventional dwellings with electricity in living quarters as percen- Accruing to percentile groups of households ranked by total house-tage of total. urban. and rural dwellings respectivdy, hold income.

EDUCATION POVERTV TARGET GROUPSA*4ud Earfigeat Ratis The following estimates are very approximate measures of povertyPrinary school - total, male and female-4Gross total. male and levels. and should be intcrpreted with considerablc caution.female enrollment of all ages at the primary level as percentages of Estiaed Absolte Povry Incom Lewd (USS per capita)-arbanrespective primary school-age populations. While many countries ad rural-Absolute poverty income level is that income levelconsider primary school age to be 6-11 vears. others do not. The below which a minimal nutritionally adequate diet plus essentialdifferences in country practices in the ages and duration of school non-food requirements is not affordable.are reflected in the ratios given- For some countries with universal Estimated Reltive Poverty Income LevWl (US per cepita)-arbaneducation. gross enrollment may exceed 100 percent since some ad rural-Rural relative poverty income level is one-third ofpupils are below or above the country's standard primary-school avenge per capita personal income of the country. Urban level isage. derived from the rural level with adjustment for higher cost ofSecondary school - total. male and female-Computed as above; living in urban areas.secondary education requires at least four years of approved pri- Estunated Popustion Below Absolute Poarty Income Level (per-mary instruction; provides general. vocational. or teacher training ceut)-arban ad rnual- Percent of population (urban and ruralinstructions for pupils usually of 12 to 17 years of age: correspond- who are "absolute poor."ence courses are gnerally excluded.Vocationa FroUmeni (percent of secondary)--Vocational institu- Comparative Analysis and Data Divisiontionc indude technical. industriaL or other programs which operate Economic Analysis and Projections Departmentindependently or as departments of secondary institutions. June 1985

-24 - ANNEX TPage 5 of 5

COUNTRY DATA - SnLOMON ISLANDS

GNP PER CAPITA IN 1984: n.a. COVFRNMENT FINANCE 1983(S5S uln)

GROSS DOMESTIC PRODIICT IN 1984 (Current prices)Current receipts 34.1

US$ mmn 2 Current expenditure 38.5 -

Current surplus 4.4CDP at market prices (estimate) 178.6 Capital expenditure 11.4Exports of goods 91.7 51.1 Rxternal assistance (net) andImport of goods 79.0 44.2 Project Crants 4.0

mONEY, CREDIT AND PRICES 197R 1979 1980 1981 I182 19R3 19R4CSIS million outstanding at end of period)

Noney and quasi-money 27.3 39.6 37.7 31.5 39.4 47.2 64.2Bank credit to public sector .1 n.5 6.4 7.5 9.3 11.0 1m.5Bank creditt to private sector 5.7 11.1 17.3 21.4 22.5 20.6 2Q.9

(Percentage or index numbers)

Consumer price index (1980-100) 81.8 88.4 1n0.0 116.4 131.5 14n.5 155.qAnnual percentage change in:

Consumer price index - 8.1 13.1 16.4 13.n 6.R 11.0Bank credit to public sector - 4nn00 1,1,0.0 17.2 1n.7 32.5 -4.5Bank credit to private sector - 129.8 32.1 23.7 5.1 -R.4 45.1

BALANCE OF PAYMENTS 1982 1983 Iq94 NERCRANDISE FEPORTS (AVERAGE 1OR2-RA4)'UsS million)

USS rln IExpnrts of goods 58.3 62.0 91.7Imports of goods 59.1 61.S 65.8 Tiuber /b 21.5 3n.5Trade balance -0.8 0.5 25.9 Flsb Ic 2n.9 2q.4

Copra 13.6 19.3Services (net) -16.5 -18.9 -31.4 Palm oil S.6 12.2Private transfers (net) -4.5 -2.5 -1.7 Cocoa 1.9 2.7

Other 4.2 5.9Balance on current account -21.8 -20.9 -9.2

Total 70.6 10.0nOfficial transfers 11.8 15.1 14.6

EXTERNAL nERT, 19R4 (Estimate) USS mlnNonmonetary capital /a 14.3 10.9 5.3

Public debt, tncl. guaranteed SR.4Overall balance 4.3 5.1 10.7

DFRT SERvICE RATIO mOR 1984 /d 7Gross reserves 37.0 45,9 45.7

Public debt, tncl. iwaranteed 6.n

RATE OF EXCRANGE 1979 1980 1981 1982 1983 1914TBRD/IDA lENDING, Septemher 30. 1985 IDA

SIS1.00 - US$ 1.1547 1.2051 1.1492 1.029R 0.8706 0.7851 (1Ms milion)USS1.00 - SI$ 0.8660 0.8298 0.R702 0.9711 1.1486 1.2737

Outstanding & disbursed 12.00Undisbursed 6.61Oustanding, incl. undishursed 1R.61

/ia Includes errors and omissions.7W Includes logs and sawn timber.

Tm Includes fresh, smoked and canned fish.7d Includes IMP.

Note: All conversions to dollars in this table are at the average exchange rate prevailing during the Period covered.

September 30, 1985

-25 - ANNEX I

STATUS OF BANK GROUP OPERATIONS IN SOLOMON ISLANDS

A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of September 30, 1985) /a

Amount in US$ mlnX Credit (less cancellations)

number Year Borrower Purpose TmDA|b Undisbursed

1115-SOL 1981 Solomon Islands Development Bank 1.5/c 0.79

1212-SOL 1982 Solomon Islands Primary Education 5.0/d 1.09

1430-SOL 1984 Solomon Islands Rural Services 3.5/e 3.06

1542-SOL 1985 Solomon Islands Guadalcanal Road Improve- 2.n 1.67ment

Total 12.0 6.61

Of which has been repaid - -

Total Now Outstanding 12.0

Amount soldof which has been repaid -

Total Now Held by IDA .12.0

Total Undishursed 6.61

B. STATEMENT OF IFC INVESTMENTS

None.

/a The status of the projects listed in Part A is described in a separate report on allBank/IDA-financed projects in execution, which is updated twice yearly and circulatedto the Executive Directors on April 30 and October 31.

lb Amount expressed here is USs equivalent of undisbursed SDR awount in terms of USS com-mitments.

/c Credit amount is SDR 1.3 million (equivalent to USS1.5 million at time of commitment).Tdf Credit amount is SDR 4.3 million (equivalent to USS5.0 million at time of commitment).fe Credit amount is SDR 3.3 million (equivalent to USs3.5 milllon at time of commitment).

-26 - ANNEX III

Page 1

SOLOMON ISLANDS

SECONDARY EDUCATION PROJECT

Supplementary Data SheeL

Section I: Timetable of Key Events

(a) Time taken to prepare the project: One year.

(E*) Agency which prepared Ministry of Education andthe project: Training.

(c) First presentation to IDA: March 1984.

(d) Main IDA identification/preparation mission: April 1984.

(e) Date of departure ofappraisal mission: October 1984.

(f) Date of completion of negotiations: February 1986

(g) Planned date of effectiveness: July 1986

Section II: Special IDA Implementation Actions

None.

Section III: Special Conditions

A. Conditions of Effecciveness

(i) The Government would establish the IPU (para. 45);(ii) One PSS site would be acquired (para. 48); and

(iii) All conditions precedent to the effectiveness of the ADAB grantswould have been fulfilled (para. 52).

1/ Extensive review and discussions were required between the Government,ADAB and IDA following the change of Government in November 1984.

-27 - ANNEX IIIPage 2

B. Other Conditions:

The Government would:

(i) make every effort to ensure that all teachers trained preservice underthe project would be bonded to teach in the PSS for periods equal totheir periods of study (para. 39);

(ii) by October 31 each year beginning in 1986, review together with IDA:(a) progress achieved in implementing the project; (b) the allocationof Government counterpart funds (investment and recurrent) necessaryfor the purposes of the project during the following fiscal year; andCc) a report to be prepared by the Government and submitted to IDA onthe operation of the primary and secondary teacher training programsat the SICHE for both the current and the following academic years toinclude such information as IDA may reasonably request (paras. 39 and52);

(iii) by December 31, 1986, submit to IDA for its review and comments, theaction plan for meeting the additional demand for enrollment at theSICHE created by the "foundation year" (para. 39);

(iv) establish and maintain the IPU with functions and responsibilitiesacceptable to IDA with competent staff in such numbers as agreed withIDA (para. 45);

(v) conduct the SICHE study and the studies on teacher utilization andincentives and the financing of education in accordance with terms ofreference acceptable to IDA, by June 30, 1987, submit such studies toIDA for its review and comments, and carry out the recommendations ofsuch studies as agreed between the Government and IDA in accordancewith a time schedule acceptable to IDA (paras. 39 and 45); and

(vi) by December 31, 1986, have acquired all project sites (para. 48).

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