Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 7038-TU

STAFF APPRAISAL REPORT

REPUBLIC OF TURKEY

SECOND INDUSTRIAL TRAINING PROJECT

March 7, 1988

Population and Human Resources DivisionCountry Department IEurope, Middle East, and North Africa

TWis document has a resticted distribution and may be used by recipients only in the performance oftheir offlcial duties. Its contents may not otherwise be discosed without World Bank authorization.

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REPUBLIC OF TURKEY

STAFF APPRAISAL REPORT

CURRENCY EQUIVALENTS

Currency Unit = Turkish Lira (TL)US$1.00 = TL1120 (February 1988)

FISCAL YEAR

January 1 - December 31

PRINCIPAL ACRONYMS USED

MOEYS Ministry of Education, Youth and SportsMCT Ministry of Culture and TourismMOS Ministry of StateMIT Ministry of Industry and TradeYdK Council for Higher EducationSEGEM Industrial Training and Development CenterSEE State Economic EnterprisePPAR Project Performance Audit ReportTA Technical AssistanceTTC Technician Training CenterTTU Technician Training UnitITU Industrial Training UnitVSHE Vocational School of Higher EducationFTVE Faculty of Technical/Vocational EducationFTE Faculty of Technical EducationFVE Faculty of Vocational EducationPBIT Policy Board for Industrial TrainingTUREM Tourism Training CenterICB International Competitive BiddingLCB Local Competitive BiddingPIU Project Implementation UnitCTA Chief Technical Advisor

FOR OMCIAL USE ONLY

REPUBLIC OF TURKEYSECOND INDUSTRIAL TRAINING PROJECT

STAFF APPRAISAL REPORT

Table of ContentsPage No.

LOAN AND PROJECT SUMMARY . . ..... ...... . (i)-(iii)

I. ECONOMIC DEVELOPMENT AND INDUSTRIAL TRAINING ............. 1Economic Development . . .. ................. . 1Industrial Training . .. ......... . ...... . 2

Technician Training . .. ...... . .......... . 3Technical and Vocational Teacher Training ........ 4

Government Industrial Training Policiesand Budgetary Support .......... .. t** 7

Government Industrial Training Policies .......... 7Budgetary Support for industrial training ........ 7

Bank's Ro4e in Education and Training ................. 8Bank Lending Strategy .. .................... . 8Past Experience ..... e . .... .... 8

_I. THE PROJECT OT.... ............... 9Project Origin r i gin........... ........... 9Project Objectives ........ ..... ........ ... 9The Project ..................... 10Detailed Project Description.....................O... 11

Management of Industrial Training............... 11Industrial Technician Training............... 11

Curricula and subject development............. 12Training of Trainersa..... .. .r. .. .. ....... *.- 12Technician Training Centers..e...s........... 13

Technical and Vocational Teacher Training........ 13Technological Content......................... 14Pedagogical focus o ........................... 15Research and Development ...................... 15Teacher Training Facilities................... 15

Tourism Sector Training ................ . .. 15Strengthening of MCT's Training Department.... 16Instructor Training. ................. . 16Tourism Training Center s.......... 16

This report is based on the findings of an appraisal mission whichvisited Turkey in September/October, 1987. The mission comprisedMesdames C. Lee (economist, mission leader), P. Kleysteuber (operationsassistant), Messrs. I. Goodine (technical educator), S. Sigurdsson(implementation specialist), and L. Briggs (technical educator).

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.

Page No.

III. PROJECT COSTS, FINANCING, MANAGEMENT AND IMPLEMENTATION 17Cost of the Project ..... . ...... . . 17Project Financing ............... ................... 20Project Management . .. ................................. 21Status of Preparation . .. . ............................. 25Supervision Requirements ............................. . 25Disbursements, Accounts and Audits ... 26

IV. BENEFITS AND RISKS ..... 27benefits ................................... . .. .o. 27Risks ....... 27

V. AGREEMENTS TO BE REACHED AND RECOMMENDATIONS ....... o .... 29

Annexes:

1. The Council for Higher Education (YoK)2. Starting Monthly Salaries of Engineers, Technical Teachers

and Technicians3. Projected Enrollment in 20 Technician Training Centers4. Requirements for Instructors in 20 Technician Training Centers5. Projected Enrollments and Output by Type of Program for the

Faculties of Technical and Vocational Education6. Unit Costs of Equipment Per Training Place7. Price Contingency AllowancesS. Summary Account by Project Component9. Technical Assistance Program: Fellowships and Expert Services10. Requirements for Trained Manpower in the Tourism Sector11. Requiremeuts for Instructors in Hotel Specializations12. Technical Assistance Program for Tourism Sector Training13. Related Documents Available in Project File

Schedules:

I. Implementation ScheduleII. Disbursement ScheduleIII.Implementation Schedule for hotel, catering and

Tourism Training

Charts:

1. Organization Chart of the Council for Higher Education2. Proposed Management Structure for Industrial Training3. Organization Chart of the Ministry of Culture and Tourism4. Proposed Management Structure for Tourism Sector Training

Map: Institutions supported under the Second Industrial Training Project(IBRD Reference No.19975)

(i)

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING II PROJECT

STAFF APPRAISAL REPORT

Loan and Prolect Summary

Borrower: Republic of Turkey

Amount: US$115.8 million

Terms: Seventeen years, including a four-year grace period, at the Bank'sstandard variable interest rate.

ProjectDescrirtion: The project supports the Government's efforts to improve the quality

and increase the quantity of trained technicians for the industrialsector, to meet urgent needs for well-trained technical andvocational teachers in secondary, post-secondary and non-formalvocational/technical training institutions and to increase thesupply of trained hotel, catering and other service personnel forthe tourism sector. The project would assist the Council of HigherEducation (YnK) in developing: (i) a national system of higher-leveltechnician training, initial support for which is being providedunder the Industrial Training Project (Loan 2399-TU); and (ii) asystem of high-quality technical and vocational teacher education infour Faculties of Technical and Vocational Education (FTVEs). Inaddition, the project would support the Ministry of Culture andTourism (MCT) in developing a national training system for hotel,catering and tourism occupations. Specifically, the project wouldsupport the conversion of 20 outmoded, ill-equipped andinappropriately staffed Vocational Schools of Higher Education(VSHEs) into proper Technician Training Centers (TTCs), theexpansion and upgrading of existing instructor training programs atthe FTVEs to meet a projected shortfall of over 13,400 technical andvocational teachers by 1991, as well as the upgrading and expansionof 10 tourism training centers (TUREMs).

Benefitsand Risks: The project would increase the supply of well-trained technicians

and technical/vocational instructors to improve industrialproductivity, leading to higher output and increased foreignexchange earnings. The project would also provide post-secondarytraining for women in specializations such as commercial studies,financial administration and tourism. In addition, the projectwould meet the urgent need for trained manpower in the rapidlyexpanding tourism sector which is anticipated to have foreignexchange earnings of about US$1.6 billion in 1988. There is a riskthat roK does not have the capability to manage the industrialtraining system on a continuing basis. This risk would be minimizedthrough technical assistance to strengthen and expand YUK's

(ii)

Technician Training Unit (TTU) into a permanent agency resnonsiblefor coordinating technician and technical/vocational teachertrair.ing. There is also a risk that training programs may becompromised by an overly academic orientation due to the attachmentof the TTCs to the universities. This risk would be diminished bythe strong commitment of YoK to make technician training programsrelevant to the needs of industry and by cooperative arrangments forthe training with industry. Since many FTVE graduates currentlyprefer to work in industry, there is a risk that the Ministry ofEducation (MOEYS) may not be able to attract sufficient FTVEgraduates to teach in its secondary schools. To alleviate thisrisk, the MOEYS has proposed to improve the terms of service fortechnical and vocational teachers. The Bank fully supports therecommendations of the MOEYS which are being considered seriously bythe Government in view of the critical shortage of teachers intechnical/vocational institutions. The proposed project wouldassist in improving recruitment and retention rates of teachersthrough: (a) re-orienting FTVE programs towards teacher educationto ensure that the end-products are trained to teach and not serveas engineers; and (b) improving teacher quality and involving theMOEYS in curriculum development and standards setting for teachertraining, thereby eliminating the need for an external examinationin which the passing rate is only about 50 percent. The MOEYS wouldalso simplify recruitment procedures for teachers in order toshorten the waiting period for candidates. Finally, there is a riskthat the MCT may not be able to implement project activities in atimely fashion. To reduce this risk, disbursements againstexpenditures incurred under the tourism training component will notstart until the Bank has reviewed and agreed on the details of animplementation program for the component.

(iii)

EstimatedProjectCosts:

Local Foreign Total a/(US$Million)

Management of Technician Training (YoK) 0.2 1.5 1.7

Industrial Technician Training 28.1 64.9 93.0

Technical/Vocational Teacher Training 7.9 25.2 33.1

Tourism Sector Training 2.2 4.9 7.1

Total Baseline Costs 38.5 96.5 134.9

ContingenciesPhysical 3.0 7.6 10.6Price 8.5 11.8 20.3

Total Project Costs 50.0 115.8 165.8

FinancingPlan: Govermnment 50.0 - 50.0

Bank - 115.8 115.8Total 50.0 115.8 165.8

a/ Details of items may not add up to totals because of roundings

EstimatedDisbursements(US$million): - -

Bank FiscalYear 1989 1990 1991 1992 1993 1994 1995 1996

Annual 10.0 14.1 21.0 23.2 21.0 14.8 8.4 3.3Cumulative 10.0 24.1 45.1 68.3 89.3 104.1 112.5 115.8

Ecor.omic Rate of Return not applicable.

StaffAppraisalReport: No. 7038-TU

Map: IBRD No. 19975

REPUBLIC OF TURKEY

SECOND INDUSTRIAL TRAINING PROJECT

I. ECONOMIC DEVELOPMENT AND INDUSTRIAL TRAINING

Economic Development

1.01 Industrial production and, in particular, manufactured exports havebeen the mainstay of the sustained economic growth experienced since 1981.Between 1980 and 1985, manufactured exports grew by almost 41 percent peryear, which doubled industry's share in exports from 36 percent to 75percent. However, the industrial sector faces major technological problemsthat could jeopardize future export growth and the competitiv6.iess of Turkishproducts in European markets. These problems which include low laborproductivity, poor product quality, low design and engineering capability,weak production management skills, and poor preventive plant and equipmentmaintenance, are directly linked to the serious shortage of highly skilledtechnicians and specialized manpower in the country'.

1.02 Industrial employers frequently report that well-trained techniciansare in short supply, particularly in exporting industries which require highstandards of quality control, modern production techniques and specializedmachinery. These qualitative labor market signals have been confirmed by anindustrial training needs survey conducted in early 1986 to assess the demandfor technicians in export-oriented manufacturing industries-'. Surveyresults indicate that approximately 40,000 additional technicians3/ would berequired by the top 500 export-oriented industrial firms during the five-yearperiod of 1986 through 1990, of whom about a third or 12,500 would behigher-level technicians or "tekniker" with strong theoretical backgrounds.Hence, the total demand for higher-level technicians by the manufacturingindustries could be estimated at about 2,500 per year. The impact of labormigration on this demand would be minimal because: (a) the outflow of workersto Europe has been declining since 1981: and (b) recent reports indicate thatthe majority of those leaving for the Middle East are semi-skilled and skilledworkers, and not higher-level technicians.

1/ See: (a) IBRD: Private Manufacturing - Assessment of the Impact of PastPolicies and Future Adjustment Needs, Report No. 6684-TU, July 1987; and(b) IBRD: Turkey Industrialization and Trade Strategy, Report No. 3641-TU,February 1982.

2/ This survey was conducted by the Council of Higher Education (YoK) as partof a pre-investment study for expansion of the higher-level techniciantraining system under its jurisdiction. The survey covered 268 industrialfirms (with an average of 800 employees) located in 37 major cities - asample representing 20 percent of the top 500 export-oriented industrialfirms in Turkey. Ranking of these top 500 firms was based on the annualoutput value of their exports.

3/ The term "technician" as used in Turkey, includes semi-skilled and skilledworkers as well as bona fide technicians, who are called "tekniker" inTurkish.

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1.03 The scarcity of skilled technical manpower points to insufficientinvestments in human resource development in general, and to inadequateindustrial training in particular. Programs for the training of bona fidetechnicians are qualitatively and quantitatively lacking. As a result, many ofthe "technicians" currently working in industry are actually either graduates ofsecondary technical schools who have subsequently acquired their skillson-the-job, or university graduates or dropouts willing to accepttechnician-level jobs. Outside the formal education system, trainingopportunities for skilled workers and technicians are limited since only a fewmajor industries offer in-plant training. Hence, in launching the structuraladjustrent program in 1980, the Government recognized that a major undertakingwas needed to expand and improve industrial training in order to produce anadequate supply of well-trained, productive and skilled manpower.

1.04 Scarcity of trained manpower in also constraining the expansion of thetourism sector which is becoming an increasingly important source of foreignexchange earnings for the countrys'. Based on the anticipated increase in thecapacity of licensed accomodation facilities (100,(X00 beds by 1989), additionalrequirements for trained manpower in the sector have been estimated at about4,000 hotel, catering and other tourism related service personnel per year. Ofthis number, about 1,800 would be skilled workers. Consequently, the Ministry ofCulture and Tourism (MCT) which is responsible for tourism promotion activitiesas well as the training of skilled manpower at the basic levelZ', is stronglycommitted to improve both the quality and quantity of trained manpower in tourismoccupations.

Industrial Traning

1.05 Pre-service training of semi-skilled and skilled workers is undertakenmainly by the Ministry of Education, Youth and Sports (MOEYS) through thesecondary technical schools, trade schools and night schools, as well as throughan apprenticeship training program. Previous bank sector work 3' has indicateda clear need to extend and improve the skill training programs of the MOEYS toimprove the quality and quantity of semi-skilled and skilled workers. However, amore pressing priority is technician training, of whicii there is little inTurkey. The expansion and improvement of technician and 3ther skill trainingprograms is however, constrained by a lack of well-trained technical andvocational teachers. Another high priority is therefore to address this problemby improving the system of technical and vocational teacher training in thecountry. Finally, since expansion of the tourism sector which is increasinglyimportant to the economy is constrained by the serious shortage of trainedmanpower in hotel, catering and tourism occupations, a concerted effort has to bemade to upgrade and expand training programs in these specializations.

1/ Foreign exchange receipts from the tourism sector increased from US$381.3million in 1981 to US$l.2 billion in 1985 and are anticipated to reach US$1.6billion in 1988.

2/ Training in tourism occupations is currently done at three levels: (i) basiclevel training for skilled workers provided by the MCT at 5 Tourism TrainingCenters (TUREMs); (ii) secondary level training provided by the MOEYS in 11hotel schools; and (iii) university level training in hotel and tourismmanagement at 18 colleges under Yok.

3/ See IBRD: Education and Training Sector Survey, Report No. 6249-TU,September 1986.

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1.06 Technician Training. The Council for Higher Education (YoK) is thekey Government agency responsible for training higher-level technicians inTurkey. TYK was established in 1981 as a semi-autonomous Government agencywhich reports directly to the Head of State on matters pertaining topost-secondary education, including universities and the two-yearpost-secondary Vocational Schools of Higher Education (VSHEs) attached tovarious parent universities. YoK's responsibilities include the training ofteaching staff and the appointment of the senior staff and management of the*_niversities and VSHEs. A detailed description of YoK and its organizationstructure are given in Annex 1 and Chart 1, respectively.

1.07 There are currently 75 VSHEs under YoK with an enrollment of about35,000 students in two-year courses in business studies, secretarial studiesand tourism, as well as in technical fields such as electronics andinstrumentation. These VSHEs suffer, however, from an over-formalizedapproach to training, inadequate premises, out-dated curricula, lack ofequipment and a shortage of appropriately trained instructors. Furthermore,the unusual administrative structure which places technician training withinthe university system gives rise to several concerns, foremost of which is theissue of staffing the VSHEs. The current practice of assigning instructionalstaff from various faculties to teach at the VSHEs on a part-time basis isunsatisfactory because such staff generally do not have appropriatequalifications to train technicians and tend to treat technician training asthe first phase of an engineering program. This obscures the objective anddilutes the quality of training. The attachment of technician traininginstitutions to universities also presents the risk that training programs maybe compromised by an overly academic orientation.

1.08 Another weakness of the administrative structure is that Y5K does nothave the institutional capacity to ensure that its policy decisions areeffectively carried out by the various universities responsible for theVSHEs. A Technician Training Unit (TTU) was established in YoK in 1983 tocarry out coordinated planning and supervision of technician training on acontinuing basis; however, inadequate staffing of the unit has prevented itfrom effectively carrying out these functions. The lack of qualifiedpermanent staff at the TTU to plan the development of training programs inaccordance with projected manpower needs, and to coordinate the implementationof training policies with parent universities of the VSHEs, has resulted in adhoc expansion of the post-secondary vocational training system.

1.09 On the positive side, many VSHES have established unusually closelinkages with local industries which are maintained through advisorycommittees and by the inclusion of a four-month industrial attachment in thetraining program. During such an attachment, trainees are graded by theirsupervisors in industry in cooperation with staff from the training centersand the results are incorporated into the requirements for graduation. Y5Khas also utilized advice from industry in developing a coherent nationalpolicy on technician training.

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1.10 A scheme is now being implemented by YoK to systematically upgradeselected VSHEs so that they are more capable of meeting the needs ofindustry. As a first step, eight VSHEs-' are being developed intoindustrially-oriented Technician Training Centers (TTCs) with assistance fromthe Bank under the Industrial Training Project (Loan 2399-TU) which becameeffective in 1984. A major component of this project consists of equipping,furnishing and minor refurbishment for eight TTCs, a fellowship trainingprogram for instructors, and technical assistance for the development of newcurricula for eleven specializations. Currently, four of the TTCs haveenrolled students in new training programs, and from 1991 onwards, totalannual output from all eight TTCs would be about 1,200 technicians.

1.11 Technical/Vocational Teacher Training. Although new initiatives ontraining are underway, both ongoing and planned training efforts areconstrained by the severe shortage of instructors and qualified senior staffto manage the expanding technical/vocational training system. YoK and theMOEYS are experiencing difficulties due to the lack of qualified staff toundertake the administration of training institutions, plan new programs andcurricula and conduct applied research in response to the changing needs ofindustry.

1.12 The training of technical teachers is carried out at three Facultiesof Technical Education (FTEs) while vocational teacher training is done at oneFaculty of Vocational Education (FVE). These faculties are attached touniversities in the western, central and eastern parts of the country. TheFaculties of Technical/Vocational Education (FTVEs) have not kept pace withdevelopments in instructor training in the last decades and are not producingteachers of the right quality and in sufficient numbers to staff theGovernment's training institutions.

1.13 A major reason for poor teacher quality is that the FTVEs see theirrole as producers of technical manpower (engineers) for industry and not asteacher training institutions. Consequently, they have oriented theirtraining programs to suit industry, even entertaining the idea of awardingengineering degrees in place of the present teaching degree. As a result,there is an over-emphasis on engineering practice and production work with acorresponding neglect of technical teaching skills and pedagogicaldevelopment. Graduates of these programs are therefore ill-equipped to serveas effective teachers, and as such, are frequently rejected by the MOEYS.

1.14 Apart from the poor quality of output, the supply of graduates fromthe four-year programs in the FTEs falls far short of the demand for technicalteachers. The best demand estimates have been done by the MOEYS and YoK basedon current shortages and projected enrollments in their traininginstitutions. As shown in table 1.1, during the five-year period of 1987through 1991, over 17,000 technical teachers would be required. Currentannual output from the FTEs is only about 1,200 teachers or about 6,000 over

1/ These VSHEs have been selected on the basis of: (a) their proximity tolocal industry; (b) the level of support for the program from localindustry; and (c) the adequacy of the existing buildings for techniciantraining programs.

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five years, which will create a shortfall of 11,000 teachers. Clearly,alternatives to the four-year pro-service courses are needed to close the gapbetween demand and supply. During the ame five-ye-ir period, additionalrequirements of about 12.650 vocational teachers have been projected. Thesource of such teachers is the FVE which offers four types of trainingprograms: (a) a four-year degree program to prepare teachers for the highschools offering technical education for girls; (>) a four-year degree programto prepare teachers for tourism and commercial high schools; (c) a two-yearcertificate program to prepare teachers for vocational and non-formalvocational education; and (d) a two-year certificate teacher preparationprogram for girls' technical education. Annual output from these programs,however, is only about 2,000 vocational teachers or about 10,000 over fiveyears which will create a shortfall of 2,650 teachers. In summary, if annualenrollments at the FTVEs remain at current levels, there would be a shortfallof about 13,700 technical and vocational teachers by 1991.

1.15 In addition to the problems of poor quality and quantity of outputfrom the FTVEs, the MOEYS L,as not been able to attract and retain sufficientnumbers of technical and vocational teachers in their training institutions.The main reason for this is the unfavorable terms of service (low salaries andlack of career prospects) for technical and vocational teachers. As indicatedin Annex 2, a technical teacher receives only about 10 percent more instarting monthly wage than a fresh technical high school graduate even thoughthe former has invested in an additional four years of higher education.Conversely, 6 newly-graduated engineer who joins the public sector earns about60 percent more than a technical teacher even though both have had the samenumber of years of post-secondary education. As a result, many of thegraduates of the FTVEs prefer to work in industry rather than teach. If thecurrent poor recruitment and retention rates of such teachers peraist, the:IOEYS would face a more serious shortage than the projected shortfall oftechnical and vocational teachers shown in Table 1.1.

1.16 Another weakness of the current technical/vocational teacher trainingsystem is the poor linkage between the FTVEs and one of their major clients,the MOEYS. The lack of a formal channel of communication between the twoparties has resulted in the FTVEs planning and implementing training programswhich do not meet the needs and/or the standards set by the MOEYS fortechnical and vocational teachers. Since the MOEYS and the FTVEs have notagreed on a set of qualification standards for teachers which could beincorporated into the training programs, graduates are required by the MOEYSto pass an external examination before they could qualify as teachers. TheMOEYS' dissatisfaction with the quality of the training programs is reflectedin the low passing rate of this examination (about 50 percent). The problemof low recruitment rates is further exarcebated by the slowness of the MOEYS'selection procedures for teachers. On average, it takes a prospective teacherfrom six to eight months following graduation to secure a position. In thatperiod, many of those who could qualify as teachers are able to findalternative jobs in industry. Consequently, only about 20 percent ofgraduates actually become teachers.

1.17 Tourism Sector Training. The MCT is responsible for basic leveltraining of hotel, catering and tourism personnel at 5 Tourism! TrainingCenters (TUREMs) located in Western Turkey, Western and Central Anatolia.These 5 centers which provide training for about 400 students a year, areinsufficient to meet the needs of trained manpower in the to,urism sector(para. 1.04). Although the MCT is strongly committed to meeting the seriousshortages of trained manpower in the tourism sector, expansion and improvementof basic level training programs are constrained by the lack of: (a)appropriate training facilities; (b) up-to-date equipment; and

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(c) well-trained instructors. Furthermore, the Training Department of the MCTlacks professional staff who are able to plan and develop training programs inaccordance with projected manpower.

Gmernment Industrial Training Polieies and Budgetary Support

1.18 Government industrial training policies. The main thrusts of theGovernment in industrial training are to: (a) improve the effectiveness ofexisting programs; (b) increase the scale of industrial training; and (c)establish an appropriate institutional framework for industrial training. Toimprove the effectiveness of training programs, agencies engaged in industrialtraining have begun to link their training more directly to the needs ofindustry. In 1983, the MOEYS introduced a new program aimed at linking thesecondary technical school curriculum to the needs of industry. Morerecently, a new Apprenticeship and Vocational Training Act was passed in June,1986 to establish the legal and financial basis for industrial employers toparticipate in the apprenticeship training program of the MOEYS. To increasethe scale of industrial training, the Government has not only expanded publictraining programs but also encouraged private sector participation inindustrial training. In addition to the Industrial Training and DevelopmentCenter (SEGEM) affiliated co the Ministry of Industry and Trade (MIT), largeprivate corporations such as Koc Holdings, and many State Economic Enterprises(SEEs) in coal, textiles and mining, have developed an in-service trainingcapacity. In the longer term, the Government aspires to establish aninstitutional framework for industrial training through a national schemewhich would rationalize the provision of industrial training and providefinancial incentives to employers to provide training. The groundwork forthis is being laid by the MIT, through SEGEM.

1.19 Budgetary Support for Industrial Training. According to the mostrecent (1985) data, total expenditures of the MOEYS and YoK on education andtraining accounted for 8 percent of all central government expenditures - ashare that is lower than normally found in countries at Turkey's level ofdevelopment, such as Portugal (22 percent), Tunisia (19 percent), Korea (21percent), and Jordan (10 percent). In 1985, technical and vocationaleducation at the secondary level accounted for 14 percent of all MOEexpenditures or 0.9 percent of all central government expenditures.Post-secondary technical education expenditures for that same year accountedfor about 8 percent of all higher education expenditures, or 0.1 percent ofall central government expenditures. Hence, total expenditures for technicaland vocational education amounted to only about 1.0 percent of all centralgovernment expenditures in 1985. Both the Government and the Bank concur thatthis amount is insufficient, given the size of the technical and vocationaltraining system and its rapid expansion in response to skilled manpower needs.

1.20 To mobilize additional resources for education and training, theGovernment has begun to institute some cost recovery measures and to encourageprivate sponsorship of education and training. Beginning in academic year1984/85, all students of post-secondary institutions are required to paytuition fees ranging from TL40,000 to TL100,000. In 1985/86, fee income frompost-secondary institutions was about TL 10 billion or 6 percent of therecurrent YoK budget that year. Under an edict, fees collected at theuniversity level should not cover more than 20 percent of recurrent costs.Hence there is scope for increasing the revenue from fees. The private sectoris also being mobilized for the industrial training programs of the MOEYS.Private schools now account for nearly 2 percent of the total enrollment atthe secondary level. Under the new Apprenticeship and Vocational Training Act

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Table 1.1 Projected Requirements for Technicaland Vocational Teachers

Type of YearInstitution and/or *-------------------------------------------------Program * 1987 a/ 1988 1989 1990 1991 Total

_…_____________ *…__________________________________________

2-year post-sec. 1,590 200 200 200 200 2,390VSHEs/TTCs (Y5K)

Technical Secondary 6,190 3,100 1,350 2,200 1,860 14,700Schools (MOEYS)

Demand for Technical 7,780 3,300 1,550 2,400 2,060 17,090Teachers

Vocational and 1,520 1,670 2,320 2,710 3,020 11,700Non-Formal Voc.Training Programs b/

Skills Acquisition 190 190 190 190 190 950Schemes

Demand for Vocational 1,710 1,860 2,510 2,900 3,210 12,650Teachers

Total Demand for 9,490 5,160 4,060 5,300 5,270 29,740Technical andVocational Teachers

Total Supply 3,200 3,200 3,200 3,200 3,200 16,000(FTEs and FVE) c/

--------------------------------------------- __

Shortage 6,290 1,960 860 2,100 2,070 13,740

a/ Figures for this year include existing vacancies in the MOEYS and YoKtraining institutions, as well as additional requirements oftechnical and vocational teachers.

b/ These include technical education programs for girls, programs incommercial and tourism schools, as well as the apprenticeshipand non-formal vocational training programs of the MOEYS.

c/ Assuming that annual enrollments between 1987 and 1991 remain atcurrent (1987) levels, average output per year from the FTEs and theFVE would be 1,200 and 2,000 teachers, respectively, or 3,200teachers in total.

Source: YoK Project Preparation Document, August 1987

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of 1986, industrial firms will contribute 1 percent on top of their corporateincome tax, to a Training Development and Extension Fund, as well as provideon-the-job training to students of secondary industrial schools.

he Bank's Role in Education and Tra1nig

1.21 Bank Lending Strategy. Since 1971, the Bank has assisted theGovernment in developing Turkey's education and training system through fourloans aimed at increasing and upgrading capacity to train technicians andskilled workers for the industrial sector. The First Education Project (Loan748-TU) which was signed in 1971 and closed in 1981, provided a loan ofUS$13.5 million to upgrade secondary technical education including technicalteacher training, and skill-training programs for adults. The IndustrialTraining Project (Loan 2399-TU) which became effective in 1984, is providingUS$36.8 million in assistance to improve post-secondary pre-service techniciantraining and in-service industrial training. A third project, the FY85Industrial Schools Project (Loan 2536-TU) is the basis of a loan for US$57.7million to upgrade pre-service industrial training programs at the secondarylevel to improve the quantity and quality of semi-skilled and skilledworkers. An FY87 project, the Non-Formal Vocational Training Project (Loan2776-TU) provides a loan of US$58.5 million to assist the Government indeveloping a comprehensive program of non-formal vocational training focussingon creating opportunities for self employment and income generation.

1.22 In 1986, the Bank completed an extensive survey of the education andtraining sector which identified several priority areas for action including:*i) qualitative improvements to the education system; (ii) selective expansionof technical and vocational training in accordance with projected manpowerneeds; and (iii) resource mobilization and utilization for education andtraining. The Bank's future role in the education and training sector wouldbe to assist the Government in addressing these priority areas. In line withthis objective, the proposed project would help the C-overnment increase thesupply of well-trained technicians required to improve industrialproductivity. Further project support for YoK, the MOEYS and other keyindustrial training agencies is likely to be requested by the Government inthe future, in areas such as in-service and pre-service teacher education,research and development, and the use of education technology to improve theoutreach of the education and training system. It is important for the Bankto ascist YbK, which is a relatively new agency, in its future development asan institution responsible for planning and coordinating post-secondarytechnical education.

1.23 Past Experience. Lessons learned from past lending have beenincorporated in the proposed project. The Project Perforwance and AuditReport (PPAR) for the First Education Project (Ln.748-TU) cited the lack of awell-defined Project Implementation Unit (PIU) with adequate authority, as aweakness of the project. The PIU created in YUK under the Industrial TrainingProject (Ln.2399-TU) is functioning well and would be further strengthenedunder the proposed project. The PPAR noted the lack of Government connitmentto the technical assistance program under the First Education Project. The TAfor the proposed project has been fully discussed with YdK and agreed upon.YoK has successfully implemented the TA under the ongoing Industrial TrainingProject (Loan 2399-TU) and should have no difficulty in implementing the TAfor the proposed project. However, YhK has shown limited success to date, inestablishing a permanent capacity in YdK for managing the technician trainingsystem. The proposed project would provide substantial technical assistanceto strengthen the existing management unit for technician training in YMK.

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IJ. THE PROJECT

Project Orin

2.01 The ongoing Industrial Training Project (Ln. 2399-TU) is assistingthe Government, through Y5K, to develop a system of pre-service industrialtechnician training. A pre-iavestment study included in this project hasindicated that further expansion of the system would be required to meetindustry's needs for higher-level technicians. The Bank's 1986 survey of theeducation and training sector recommended selective expansion and improvementof the technical/vocational education system, particularly: (a) developmentof a country-wide system of higher-level technician training for industry; and(b) upgrading the quality of instructor training for technical and vocationaleducation. Based on the findings of these studies, the Government hasproposed a second phase of assistance to develop and expand training programsin areas where technicians have been identified by employers to be inshortage. Bank missions visited Turkey in March and June, 1987 to assist theGovernment in preparing the proposed project which was subsequently appraisedin September/October, 1987. Subsequently, the Government requested thatadditional support be given to the Ministry of Culture and Tourism (MCT) indeveloping a national training system for hotel, catering and tourismoccupations. The specific information required for appraisal of this newcomponent has been reviewed and found to be fully satisfactory.

Project Objectives

2.02 The Project objectives are as follows:

(a) to strengthen the institutional capacity of YoK to plan thedevelopment and coordinate the implementation of technician andtechnical/vocational teacher training programs;

(b) to alleviate scarcities of technicians in industry by assisting YoKin the development of adnitional pre-service technician trainingprograms targeted to prodlLce about 3,100 graduates per year by 1996;

(c) to meet a projected shortfall of over 13,700 technical and vocationalteachers in secondary, post-secondary and non-formal skill traininginstitutions through: (i) expanding and improving the quality ofteacher training programs at three Faculties of Technical Educationand one Faculty of Vocational Education: and (ii) strengthening theinstitutional capacity of these faculties to carry out pre-serviceand in-service training as well as research and development intechnical and vocational education.

(d) to strengthen the institutional capacity of the MCT to plan thedevelopment and coordinate the implementation of basic level hoteland tourism training programs at 10 Tourism Training Centers (TUREMs)and thereby meet a projected annual shortfall of about 1,800 skilledworkers in tourism occupations.

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lbe Projeet

2.03 Over a period of eight years, the project would support the fourcomponents noted below:

1. Management of Industrial Training at YoK (US$1.7 million). Thiswould strengthen the capacity of Y5K for coordinating the industrialtraining system wh,ch includes technician and vocational/technicalteacher training. The existing management unit for techniciantraining in YoK (the Technician Training Unit) would be strengthenedand expanded to enable it to carry out additional responsibilities intechnical/vocational teacher training, and to implement the proposedproject according to its established objectives. To reflect itsextended role, this unit would be redesignated as the IndustrialTraining Unit (ITU) and would receive technical assistance to: (a)develop key staff capable of planning and coordinating trainingprograms at the TTCs and the FTVEs on a continuing basis; and (b)assist staff of its Project Implementation Section in implementingthe proposed project.

2. Industrial Technician Training (US$93.0 million). This wouldincrease the supply of technicians for industry by developing andexpanding priority training programs in 20 Technician TrainingCenters (TTCs). These 20 TTCs have been selected on the basis of apre-investment study included in the ongoing Industrial TrainingProject (Ln.2399-TU). Inputs for this component include: (a) expertservices for curricula and subiect development (US$1.3 million); (b)fellowship training for TTC instructors (US$12.8 million); and (c)equipment, furniture, and renovations or extensions to existingbuildings for 20 TTCs, as weli as study tours for their directors toenhance knowledge of training center management (US$68.7 million).

3. Vocational and Technical Teacher Training (US$33.1 million). Thiswould assist in meeting the growing requirements for technical andvocational teachers (shown in Table 1.1) through improvement andexpansion of technical and vocational teacher training programs infour Faculties of Technical and Vocational Education (FTVEs). Toachieve this objective, US$9.4 million in technical assistance wouldbe provided to establish new improved and shorter courses at theFTVEs to attract a broader group of entrants, leading to increasedenrollments and hence, output. To improve the technological andpedagogical content of the existing 4-year program and to ensure thequality of new programs, expert services and fellowships would beprovided to establish a Technology Department, a Technical/VocationalEducation Department, and a Development and Instructional SupportUnit at each FTVE. Finally, FTVE facilities would be upgradedthrough the provision of US$20.4 million for equipment, furniture andrenovations or extensions to existing buildings.

4. Tourism Sector Training (US$7.1 million). This would assist the MCTin meeting the urgent need for trained workers in the tourism sector(Annex 10). To achieve this objective, US$2.0 million in technicalassistance and followships would be provided to strengthen thecapacity of MCT for planning and implementing basic-level tourismtraining programs and to establish training courses for instructorsat the TUREMs. In addition, equipment, furniture, renovations and/orextensions to existing buildings for 10 TUREMs costing US$5.1million, would be provided.

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Detailed Project Description

Management of Industrial Training (US$1.7 million)

2.04 To address the problem of a lack of managerial and technical skillsin YhK to effectively manage the industrial training system, the proposedproject would include staff training to improve the coordination of techniciantraining at the TTCs and technical/vocational teacher training at the FTVEs.About 9 additional professional staff would be trained for the existingTechnician Training Unit in YoK to strengthen its capability for planning andcoordinating training programs at the TTCs. Technical assistance in the amountof US$1.3 million would be provided to train these key staff in areas such aslabor market analysis and program development for technician training. TheseYhK staff would work closely with qualified individuals at the TTCs to developcurricula for technician training. To enable the Technician Training Unit tocarry out additional responsibilities in teacher training, it would beexpanded and redesignated as the Industrial Training Unit (ITU) to reflect itsbroadened mandate. A full time coordinator for the ITU would be appointed.The project would provide US$0.5 million in technical assistance for thispurpose.

2.05 Specific project inputs for this component include about 21staff-months of tellowships and about 135 staff-months of expert services forITU staff to enable them to: (a) assist TTCs in course development; (b)monitor academic standards and supervise administration of examinations; (d)evaluate the external efficiency of technician training programs and assiststudent placement in training and employment; (e) ensure that TTCs and theFTVEs are appropriately staffed; and (f) implement the proposed project.Since the ITU would be required to manage two significantly different andsubstantial technical assistance programs for technician training andtechnical/vocational teacher education, a team leader would be hired tosupervise each program and to train counterparts in the ITU. These two teamleaders would report to the ITU coordinator who would ensure that theactivities of the TA teams are compatible. Details of the fellowship andconsultative services program for the ITU are given in Annex 9.

Industrial Technician Training (US$93.0 million)

2.06 Although the 8 TTCs supported under the ongoing Industrial TrainingProject (Ln.2399-TU) would produce about 1,200 higher-level technicians from1991 onwards, the results of a pre-investment study included in the sameproject indicate that at least 20 additional TTCs would be required to meetthe projected requirements for higher-level technicians in industry (para.1.02). The proposed project would therefore convert an additional 20 VSHEslacking in equipment, appropriate curricula and teaching staff into TTCscapable of offering high-quality training programs. This would requiresupport for: (a) curricula and subject development; (b) training of trainersfor the 20 TTCs; and (c) improvement of TTC administration and facilities.The VSHEs have been selected based on geographic and economic criteria such asproximity to local industry, commitment of employers to training programs, andlocation in areas targeted by the Government for development. The geographiclocation of these TTCs is shown in the attached map.

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2.07 Curricula and subiect development. To meet current and projectedneeds for technicians and specialized manpower in priority areas, support wouldbe provided to develop 9 new specializations and to expand 11 existing ones inthe 20 project-assisted TTCs. These 20 specializations, identified in thepre-investment study (para. 2.01) correspond to the needs of th,e industrialsectors targeted for expansion in the Fifth Five-Year Development Plan. Toensure that training programs for these specializations would fit the specificneeds of industry, participation of employers in curriculum development wouldbe encouraged through Advisory Boards which have already been formed for thispurpose (para. 1.09).

2.08 Although the main focus of the proposed project is on techniciantraining, 4 of the 9 new programs would be in non-technical specializations(commercial studies, administrative services, financial administration andtourism) to meet the needs of employers in industry as well as in the rapidlyexpanding services sectors, for personnel in these specializations. Thesenon-technical specializations would provide 930 training places, an estimatedeighty percent of which would be taken up by women. The 5 new technicalspecializations to be added include chemical, food processing, textiles,medical electronics, and computer repair and maintenance, while the 11existing ones to be expanded include civil, electrical, controls andinstrumentation, communications, industrial electronics, mechanical, airconditioning and refrigeration, fouudry, agricultural mechanics, computers,and petrochemicals/petroleum technologies. Together, these 20 specializationswould provide 6,660 new training places at the TTCs, giving an annual outputof about 3,100 graduates from 1996 onwards.-' This output would meet theprojected annual requirements of about 2,500 higher-level technicians per yearin industry (para. 1.02) and in addition, be available to other employergroups such as the power and services sectors. Annex 3 details projectedenrollments by subject area and distribution of specializations by TTC.Development of the 9 new specializations and expansion of the 11 existing oneswould require about 84 and 33 staff-months of expert services, respectively.These expert services costing US$1.3 million are detailed in Annex 9.

2.09 Training of Trainers. The proposed project would assist Y6K inmeeting its short-term requirements for trainers in the 20 project-assistedTTCs through a fellowship program costing US$12.8 million. This substantialfellowship program is the most expeditious and effective way of producingqualified trainers for the new TTCs, given the importance of starting uppriority technician training programs with the minimum of delay. Trainers whohave benefited from the fellowship program are contractually obliged by YhK toserve for a mandatory period of 18 months at the TTCs and this has beenproposed to be extended to 24 months. Furthermore, inappropriately trainedstaff at the TTCs (para. 1.07) could be phased out when fellows return after 9months of overseas training. Lon&sr term needs for trainers would beaddressed through project support fur improving the output of technicalteachers from the FTEs. To ensure that YdK would be able to recruit asufficient number of instructors for the 20 new TTCs, the Governmentprovidedassurances during negotiations, that it would allocate funds for creating additional staffpoitions for instructors, based on a ratio of 12 students to 1 instructor.

1/ Attrition rate for the 2 year post-secondary programs is estimated atabout 4 percent from historical records.

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2.10 The fellowship program would enable about 444 teachers of specialistsubjects and 28 teachers of general (core) sutjects to be trained inappropriate overseas institutions. These 472 fellows would be selected for 9months of training according to criteria which would be reviewed by the Bank.Professional aptitude and proficiency in a foreign language would be among themain criteria for selection. In total, the proposed project would provideabout 4,248 staff-months of fellowships. The distribution of fellowships byarea of specialization is given in Annex 4.

2.11 Technician Training Centers. The current facilities in the 20selected VSHEs are inadequate for technician training. To upgrade thesefacilities for the new and expanded training programs, the proposed projectwould provide equipment, furniture, anid renovationg or extensions to existingbuildings. Only equipment designed for institutional training would beprovided for the 20 specializations supported by the project, since anytraining requiring heavy plant or production equipment would be undertakenduring the in-plant training period for trainees. Preliminary equipment listsfor the new specializations have been prepared by YoK and reviewed by theBank. Equipment lists for the existing specializations have already beendeveloped under the ongoing Industrial Training Project (Loan 2399-TU). Toimprove the administration of the 20 centers, study tours of three weeks eachwould be provided to the directors to visit appropriate institutions abroadand learn about efficient management of training centers. Project assistancefor these improvements to the TTCs would amount to US$68.7 million.

Technical and Vocational Teacher Trainina (US$33.1 million)

2.12 As shown in Table 1.1, there is a projected shortfall of about 13,740well-trained technical and vocational teachers by 1991. The proposed projectwould address this issue by improving the quality and increasing the quantityof technical and vocational teachers through support to three Faculties ofTechnical Education in Western Turkey, Central and Eastern Anatolia, and oneFaculty of Vocational Education in Central Anatolia''. To improve teacherquality, the proposed project would assist the FTVEs in improving theirexisting teacher training programs by: (a) improving the technological andpedagogical content of programs, and reducing the emphasis on engineeringpractice and production work (para. 1.13); and (b) establishing appropriatetraining standards. To achieve this, a Technology Department, aTechnical/Vocational Education Department and a Development and InstructionalSupport Unit would be established at each FTVE. Curriculum development fortechnical/vocational teacher training programs would be undertaken at theTechnical/Vocational Education Departments and would involve relevant expertsfrom the technology departments. In the longer term, these departments wouldhave the capability to advise the MOEYS, the major client of the FTVES, oncurriculum development for its secondary industrial and technical highschools. The proposed project would also upgrade training facilities in thesenew department/units, and improve faculty administration.

1/ The three Faculties of Technical Education are located at Gazi Universityin Central Anatolia, Marmara University in Western Turkey and FiratUniversity in Eastern Anatolia. The Fatculty of Vocational Education islocated at Gazi University in Central Anatolia.

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2.13 To increase output of technical and vocational teachers, the proposedproject would assist in the development and implementation of new improved andshorter courses at the FTVEs. The new courses include: (a) one-yearpost-graduate courses for graduates in relevant specializations; (b) two-yearcourses for graduates of post-secondary institutions such as the TTCs whorequire a total of four years of higher education to qualify for a teachingdegree; and (c) modular in-service training programs for suitably qualifiedpersons in industry who wish to be teachers, and for currently employedteachers who wish to upgrade their skills for career advancement. Thesecourses would be developed in consultation with MOEYS and other clientministries/agencies, as well as industry. They would be designed to tap newsources of entrants with higher levels of education and/or relevanttechnical/vocational skills without affecting the overall length of thetraining period (four years of post-secondary education) required for traineesto attain a university degree in teaching. Training flexibility would also beenhanced since the new courses would impart the necessary pedagogicalknowledge to entrants already equipped with appropriate technical/vocationalskills, to enable them to teach in various specializations. Addition of thesecourses would allow enrollments in the FTVEs to increase to the levelsindicated in Annex 5, leading to a doubling of annual output by 1991. Outputof graduates would therefore be sufficient to meet the requirements fortechnical and vocational teachers shown in Table 1.1.

2.14 To address the issue of recruitment and retention of technical andvocational teachers in the Ministry of Education's secondary skill traininginstitutions, terms of service for these teachers would have to be improved(para. 1.15). The proposed project is however, not the proper vehicle tobring about this improvement as it would entail reform of personnel policieshaving widespread ramifications in the civil service. However, MOEYS isstrongly committed to improving the terms of service for its technical andvocational teachers and has submitted a proposal on the subject for Governmentapproval. Other important issues impacting on teacher recruitment andretention (para. 1.16) would be addressed through the proposed project. Lossof potential teachers would be reduced by about 30 percent through: (a)improving teacher quality and involving MOEYS in curriculum development,thereby eliminating the need for an external examination in which currently 50percent of the candidates fail; and (b) simplifying MOEYS recruitmentprocedures to shorten the waiting period for candidates.

2.15 Technological content. Expertise would be developed in the TechnologyDepartments to revise the curricula of existing technology courses and theteaching methodology for instructor training programs, which are too heavilyoriented towards engineering. To assist in this task, a total of 16technology education specialists would be provided at the rate of 4 perfaculty for 6 months each. To increase teaching competency in technologysubjects, 68 staff in the Technology Departments would be sent on 9-monthoverseas fellowships. The technical assistance program for these departmentswould amount to US$3.0 million.

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2.16 Pedagogical focus. The role of the Technical/Vocational EducationDepartments would be to provide the pedagogical focus to training programsthat is currently missing, and to develop curricula for instructor trainingprograms in conjunction with the Technology Departments. To help theTechnical/Vocational Education Departments develop a capability for assumingthis role, the project would support: (a) staff 'development throughfellowships for about 12 faculty members to obtain Ph.D. Degrees in technicaleducation, and 24 others to obtain Masters Degrees in the same field; and (b)development of teacher education curricula and instructional materials througha consultative services program of 144 staff-months. Total cost of thistechnical assistance package would be US$5.0 million. Duringnegotiations, theGovernment provided assurances that it would establish by March 31, 1989, a Departmentof Technical Education at the three designated Faculties of Technical Education, and aDepartment of Vocational Education at the Faculty of Vocational Education to providethe pedagogical focus to teacher training programs.

2.17 Research and Development. The Development and Instructional SupportUnits would be responsible for: (a) developing new training materials; (b)establishing training standards for pre-service and in-service programs in theirVEs; and (c) providing the leadership for research and development intechnical and vocational education. The Project would assist in theestablishment of these units through provision of 48 staff-months of expertservices for preparing teacher edu^ation materials, and about 240 staff-monthsof fellowships for staff to enable them to develop skills for research anddevelopment in technical education. Support would also be provided for thedevelopment of library staff for Learning Resource Centers. Total support forthe Development and Instructional Support Units would amount to US$1.4million. In the longer term, these units would have the capacity to developinstructional materials for other training agencies and for in-plant trainingprograms of industrial firms. Income derived from such services wouldcontribute to cost-recovery on training at the FTVEs.

2.18 Teacher Training Facilities. Facilities in the FTVEs would have tobe upgraded for the new and improved training programs. To upgrade trainingfacilities, the Project would provide equipment, furniture and renovations ofand extensions to existing buildings. Equipment would primarily be used tosupport pedagogical and methodological improvements in the training programs;only a limited amount would be provided for the technology departments toreplace obsolete equipment. Preliminary priced equipment lists have beenprepared by Y6K and reviewed by the Bank. Finally, to update senioradministrative staff in the organization and administration of educationfaculties, 22 staff-months of study tours would be provided. Total cost ofthis sub-component would be US$20.4 million.

Tourism Sector Training (US$7.1 million)

2.19 The MCT has projected an annual shortfall of about 1,800 basic-leveltourism workers by 1989. In addition, the expansion of training programs isconstrained by the lack of well-trained instructors. To address these twoissues, the project would support: (a) strengthening the capacity of MCT'sTraining Department for planning and implementing tourism training programs;(b) establishment of new and improved instructor training programs in fourmain areas of hotel specializations; and (c) improvement in the quality andquantity of trained tourism workers through the ugrading of 5 existing TUREMsand the development of 5 additional such centers at existing hotels operatedby the MCT.

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2.20 Strengthenins of MCTs Training Department. To plan, organize andmonitor a national training system for tourism occupations, the TrainingDepartment of the MCT requires well-trained professionals in manpower andtraining needs assessment, curriculum development, and training centersmanagement, among other key functions. Since such professionals are currentlylacking, experts' services and overseas training fellowships for MCT staffwould be provided to assist the Training Department in planning andimplementing a national training strategy and to carry out the activitiesunder the proposed tourism training component. The technical assistanceprogram is summarized in Annex 12.

2.21 Instructor Training. A critical factor in the development of TUREMprograms is the MCT's capacity to provide the required number ofwell-qualified instructors for the four main areas of hotel specilizations,namely, front-office, housekeeping, food preparation and food and beverageservices. Requirements for instructors in these areas are detailed in Annex11. Experts' services and fellowships would be provided to develop andimplement these specific training programs. In addition, about 30 languageteachers would be recruited and trained in the use of language laboratories inorder that TUREM trainees would receive effective instruction in foreignlanguages.

2.22 Tourism Training Centers. The current facilities in the 5 existingtraining centers are inadequate for high-quality training in tourismoccupations. To upgrade these facilities, equipment, technical assistance andrenovations to buildings would be included in the projecL The existingcenters, however, are not sufficient to meet the increasing needs forbasic-level manpower in the tourism sector. The project would support thedevelopment of 5 new centers in existing hotels presently run by the MCT. Toachieve this objective, the project would include equipment, furniture andrenovations and/or extensions to existing buildings. Finally, to strengthenthe management of the training centers, overseas study tours would be providedfor the directors and assistant directors of the centers.

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III. PROJECT COSIS, FINANCING, MANAGEMENT AND IMPLEMENTATION

Cost of the Project

3.01 Summary of Proiect Costs. Project costs are estimated at TLira 286.0billion or US$ 165.8 million equivalent. A summary of project costs byproject item is shown in Table 3.1. Project costs by category of expenditureare shown in Table 3.2. Details of project costs are shown in Annex 8. Thesecosts include equipment and technical assistance (specialist services,language training and fellowships) as well as Government financed constructionof extensions to existing facilities, renovation of existing buildings andprovisioa of furniture. Excluded from project costs are the constructioncosts (US$3.0 million) of two project items (Faculties of Technical Educationat Marmara and Firat Universities), which are currently under construction andexpected to be completed by the time of Board presentation.

3.02 Basis of Cost Estimates. Equipment costs for about 80 percent of thevalue of the equipment packages in the TTCs have been estimated on the basisof detailed equipment lists and specifications in recently awarded contractsfor identical technologies supported under the first Industrial TrainingProject (Loan 2399-TU). Equipment costs for the proposed new technologies inthe TTCs and for the faculties of vocational and technical education have beenestimated on the basis of preliminary priced equipment lists for the proposednew training courses. Technical assistance costs have been estimated on thebasis of recent prices for comparable technical assistance in the the firstIndustrial Training Project (Loan 2399-TU) and in the Industrial SchoolsProject (Loan 2536-TU). The man-month costs of specialists include housing,relocation costs, salaries, subsistence, office services, fees, overheads andrecruitment cost. Costs of construction and rehabilitation are based on: (a)surveys of existing facilities; (b) standard plans of the proposed traininglaboratories and workshops; (c) schedules of accommodations; and (d) currentunit costs of construction (US$165/m2 for new construction and $47/m2 foralterations,) in recently awarded contracts for the technician trainingcenters that are included in the first Industrial Training Project (Loan2399-TU). Furniture costs are based on existing, pr'ced furniture lists andamount to 13 percent of the cost of construction. Base cost estimates reflectprices as projected for the time of negotiations (February 1988).

3.03 Customs Duties and Taxes. Project costs include an estimated US$1.8million in indirect taxes on locally procured civil works and US$17.1 millionin export promotion tax (5 percent) applied to imports and value added tax (12percent) on equipment.

3.04 Costs per Student. Construction costs relate exclusively to theexpansion and/or refurbishment of existing facilities; calculations ofconstruction unit costs and areas per student are therefore not applicable.Use factors in the technician training centers would be about 70 percent inclassrooms and 60 percent in workshops. Equipment eosts per student in thetechnician training centers and the faculties of technical education areestimated at an average of US$8,662 and 2,810 respectively (base cost), whichis reasonable in comparison with those of other Bank-wide financed facilitiesfor industrial training of this type (Annex 6).

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Table 3.1: SUMMARY OF PROJECT COSTS BY PROJECT ITEM

(TURKISH LIRA lillion) (US illion)

I Total Z Total2 Foeisn kws 2 Foreisn las

Local Forein Total ExchanO Costs Lwal Foreign Total Exchang Costs:3-=== :3:2333 4z7=33 xz,=33 aszz3x 233 23 33333:t n:33uuau zzzua:

A. NMAGEIIENT OF INDUSTRIAL TRAINING

COORDINATION OF TECHNICIAN ftGs YOK 0.19 1.09 1.28 85 1 0.18 1.07 1.25 85 1OORD, OF VOCITECH. TEACHER TRG 0.07 0.41 0.48 86 0 0.06 0,41 0.47 .U6 0

suo-Total iANAGEKENT Of INDUSTRIAL TRAINING 0.25 1.51 1.76 96 1 0.25 1.48 1.72 86 1S. INDUSTRIAL TECHNICIAN TRAINING

CURRICULA AND SUIJECT DEVELOPHENT 0.20 1.13 1.33 85 : 0.20 1.10 1.30 85 1TRAINING OF TRAINERS 0.80 12.21 13.01 94 9 0.78 11.97 12.75 94 9TECHNICIAN TRAINING CENTER6 27.68 52.89 80.57 66 59 27.14 51.86 78.99 66 59

Buo-Tatal INDUSTRIAL TECHNICIAN TRAINING 28.68 66.24 94.91 70 69 28.11 64.94 93.05 70 69C. VOC. ANL TECH. TEACHER TRAINING

… - - - -------TECIOLGY DEPARTENTS 0.26 2.78 3.04 91 2 0.26 2.73 2.98 91 2TECHNICAL EDUCATION DEPARTMENTS 0.42 4.66 5.08 92 4 0.41 4.57 4.98 92 4DEVELOPMENT AND INST. SUPPORT UNITS 0.13 1.26 1.39 91 1 0.12 1.24 1.36 91 1TEACHER TRAINING FACILITIES 7.29 16.96 24.24 70 18 7.14 16.62 23.77 70 18

Sub-Total VOC. AND TECH. TEACHER TRAINING 8.10 25.66 33.76 76 25 7.94 25.16 33.10 76 25D. TOIRISH SECTOR TRAINING 2.22 4.97 7.20 69 5 2.18 4.88 7.06 69 5

Total kASELINE COSTS 39.25 98.38 137.62 71 100 38.48 96.45 134.92 71 100Phvsical Contirkimncies 3.11 7.71 10.91 71 8 3.05 7.55 10.60 71 8Price Contingencies 45.27 92.27 137.54 67 100 8.48 11.80 20.28 S5 15

Total PROJECT COSTS 87.62 198.35 285.97 69 208 50.00 115.90 165.80 70 123- ,= = _ - = ., : , -=,==-- -=: = = -- -3--: :-

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TABLE 3.2 PROJECT COSTS BY CATEGORY OF EXPENDITURE 1/

(TURKISH LIRA Billion) (US$ Million)

2 Total Z TotalZ Formin 2m Forwin Due

Local Foreign Total Excha-de Costs Local For*isn Total Exehmni Costs22=23 3822323 =22=Z3 323323323asm 32*2 3*323 3228332 332332 333*32223 323233

I. IWVESTMENT COSTS

A, EQUIPIENT

EQUIPIIENT 26.70 69.61 96.31 72 70 26.17 68.25 94.42 72 70

Sub-Total EWUIP10NT 26.70 69.61 96.31 72 70 26,17 68.25 94.42 72 70S. TECHNICAL ASSISTANCE

_ ___.__ _

OERSEAS FELLOUSHIPS 1.00 18.74 19.74 95 14 0.99 18.37 19.35 95 14LANGUAGE TRAINING 0.15 0*04 0.18 20 0 0.14 0.04 0.19 20 0SPECIALISTS 1.18 6.60 7,78 85 6 1.16 6.47 7.63 85 6

Sub-Total TECHNICAL ASSISTANCE 2.32 25.38 27.70 92 20 2.28 24.88 27,16 92 20- B 8UILDIN65

EXTENSIOIIS TO EXISTING FACILITIES 6.36 2.11 8.47 25 6 6.24 2.07 8.30 25 6RENOVATION OF EXISTING FACILITIES 2.44 0.80 3.24 25 2 2.39 0.79 3.18 25 2FURNITURE 1.43 0.47 1.90 25 1 1.40 0.46 1.86 25 1

Sub-Total BUILDIN6S 10.22 3.38 13.61 25 10 10.02 3.32 13.34 25 10

Total BASELINE COSTS 39.25 98.38 137.62 71 100 39.48 96.45 134.92 71 100Phwuical Continunies 3.11 7,71 10.81 71 8 3.05 7.55 10.60 71 EPrice Contirdsncies 45.27 92.27 137.54 67 100 8.48 11.80 20.28 58 15

___ -- -- - - - - --- -- - _ _ -- -

Total PROJECT COSTS 87.62 198,35 285,97 69 208 50.00 115.80 165.80 70 123

1/ Total project costs include US$ 18.9 million of identifiable duties andtaxes.

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3.05 Contingency Allowances. Project costa include a physical contingencyallowance equal to 8 percent of the estimated cost of all project items.Price contingencies between negotiations (February 1988) and the end ofproject implementation are estimated at US$20.3 million equivalent, or 14.0percent of base cost plus physical contingencies. Total contingenciesrepresent 23 percent of the base cost. Because Turkey's trade pattern ispredominantly oriented towards Europe, the estimated price contingencyallowances (Annex 7) for imported equipment differ from world-wide pricecontingency estimates.

3.06 Foreimn Exchanse Component. The foreign exchange component wasestimted as follows: (a) construction and refurbishment of existingfacilities - 25 percent; (b) furniture - 25 percent; (c) equipment - 72percent; (d) specialist services - 85 percent; and (e) fellowships - 95percent. These percentages have been determined by: (a) estimating theindirect foreign exchange of construction and furniture; (b) assuming that allequipment wopld be imported; an.' (ci estimating that about 85 percent of allproject financed specialists wo Md 'e foreign. Including contingencies, theresulting foreign exchange com,poneiv. is estimated at US$115.8 million, orabout 70 percent of total cost&.

3.07 Recurrent Costs. Under the proposed project, additional recurrentcosts for rdk would be generated by: (a) the recruitment of additionalinstructors to augment the staffing of the technician training centers and thefaculties of education; and (b) needs for incremental budgets for trainingm_terials and equipment maintenance to sustain the proposed improvement in thetraining of industrial technicians. Since project buildings are limited toeztensions and refurbishment of existing facilities, only modest additionalrecurrent costs would be generated by building maintenance. The totaladditional recurrent (base) costs generated by these items when all theproject institutions are in operation would be TLira 2.8 billion. This sumrepresents 1.9 percent of the YoK recurrent budget in 1986. In addition,about TL 1.0 billion in annualized capital costs would be incurred as a resultof the proposed project. The sum of the recurrert costs and the annualizedcapital costs would represent about 2.7 percent of the annual ThK budget. Forthe MCT, additional recurrent costs as a result of the project are estimatedat about TL1.6 billion per year when all 10 TUREMs are in operation. Thisaoount represents only about 1.0 percent of the 1986 MCT recurrent budget.

Proiect Fhnmncin

3.08 The proposed Bank loan of US$115.8 million would finance the foreignexchange component of the proposed project. The Government would finance thebalance of project costs. Project financing would be in accordance with Table3.3.

Table 3.3: FINANCIAL PLAN

BankCategory of Expenditure Gov't Bank Total Financing

Buildings & Furniture 17.0 0.0 17.0 0.0Equipment 28.2 78.4 106.6 73.5Overseas Fellowships 1.1 21.5 22.6 95.0Language Training 0.2 0.0 0.2 95.6Specialist Services 0.5 8.3 8.8 95.0Unallocated 3.0 7.6 10.6 71.7

Total 50.0 115.8 165.8 70.0- ------------------------------- - --------------- - ---- _

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Project Management

3.09 Overview. The proposed project would be implemented by the Councilof Higher Education (YnK) through its existing Technician Training Unit (TTU),which wo-.ld be modified to carry out its expanded responsibilities (para.2.04). The TTU was formally established within YoK in 1983 with a mandate todevelop technician training as an important emerging part of the highereducation system. Originally, the Coordinator of the TTU reported directly tothe President of YoK, but a Y8K council member has subsequently been nominatedon a full time basis to direct the operations of the TTU and to act as aspokesman on all aspects of technician training on behalf of YoK. The TTUhas, until recently, focused its attention on the development of the eightTechnician Training Centers (TTCs) under the Industrial Training Project (Loan2399-TU).

3.10 Management Structure. Under the proposed project, there would be arenewed emphasis on the role of the TTU as a coordinator of techniciantraining programs and as a liaison agency with industry. Its mandate wouldalso be broadened to cover new issues related to teacher training fortechnical and vocational secondary schools and TTCs. To assist the unit incarrying out its expanded role, management of the TTU would be fullyintegrated with the proposed technical assistance (TA) program summarized inAnnex 9, which would be designed to leave behind a permanent organizationalstructure to manage and coordinate all aspects of technician training andtechnical teacher training. To reflect its expanded functions, the TTU wouldbe renamed the Industrial Training Unit (ITU). A full-time coordinator wouldbe appointed to manage the ITU. The ITU would also identify and tap localtechnical expertise in the TTCs and technical universities for curriculumdevelopment, training materials production and the drafting of equipment listsand specifications. The ITU would hire these staff on a part-time basis ascurrently is being done in the first Industrial Training Project to providelocal support to the project specialists working on the above tasks.Participation of these local experts would assist in the dissemination ofproject concepts to training institutions which are not included in theproposed project.

3.11 The ITU would receive its directives from a proposed Policy Board forIndustrial Training (PBIT), under the chairmanship of the YBK council memberreferred to in para. 3.09, and with membership from the Ministry of Education,Ministry of State, the four Faculties of Vocational and Technical Education,Chambers of Commerce and Industry. Through the PBIT, decision makers in theconcerned ministries/agencies would be able to decide jointly on policies forindustrial training. The secretary of this PBIT would be the ITUcoordinator. Within the ITU there would be: (a) a technician trainingsection; (b) a vocational/technical teacher training coordinator; and (c) aservice and project implementation section. The proposed management structureincluding the numbers of key staff is shown in a schematic form in Chart 2.Descriptions of key positions are listed in paras. 3.12-3.14. Duringnegotiations the Government provided assurances that: (a) it would establish the PBIT byMarch 31, 1989 under the chairmap of a YoK member responsible for techniciantraining and technieallvocational teacher training; (b) the PBIT would haverepresentation from the entities coneerned with the development and management oftechnical education and training; and (c) the existing Technician Training Unit responsiblefor project implementation would be expanded into an Industrial Training Unit (ITU)having a full-time coordinator (who would also serve as secretary to the PBIT), and a fullcomplement of key staff by March 31, 1989.

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3.12 Within the ITU, the Technician Trainina Section would be responsiblefor: (a) advising and assisting the PBIT in establishing objectives for thetechnician training system; (b) planning, developing and evaluating programsappropriate to those objectives; and (c) advising and assisting techniciantraining centers in securing and managing the human, physical and financialresources needed to implement the planned programs. In this section, a smallgroup of key staff would work closely with the experts on technician trainingfor the proposed project (for details of experts, see Annex 9). A sectionchief (with a background in technical education and at least two years ofadministrative experience), would function as the principal counterpart to t'leader of the TA team working on Technician Training. Under the section chiethere would be two staff working as counterparts to the specialist on manpowerdata and employment issues. Their duties would include maintenance of acomprehensive information system on manpower needs and employmentopportunities, liaison with chambers of commerce and industry, and carryingout periodic employers' surveys. Two staff training officers would organizethe process of selection and recruitment of fellowship candidates, assist inthe selection of overseas training programs and institutions, and coordinatethe induction of returning fellows. Additionally, there would be about twostaff responsible for testing and evaluation of training programs. Finally,two staff, working as counterparts to the curriculum and program developmentspecialists, would be responsible for identifying suitable institutions inTurkey as the focal points of curriculum and materials development, andrecruiting qualified individuals to carry out these tasks.

3.13 The Vocational and Technical Teacher Training Coordinator would bethe principal counterpart to the TA team leader for technical/vocationalteacher training, and the liaison officer with the Deans of the Faculties ofTechnical and Vocational Education. The incumbent would assist in theplanning of technical and vocational teacher education programs, includingassessment of the required capacity of facilities, timing and introduction ofnew courses, and teacher requirements. During project implementation, theincumbent would also assist in the design of suitable overseas study tours forkey faculty staff.

3.14 The Service and Project Implementation Section would carry out allthe necessary support functions for the Technician Training Section, and forthe Vocational ard Technical Teacher Training Coordinator, including inparticular, preparation of designs, procurement related activities, keeping ofproject accounts, preparation of progress reports, keeping of project accountsand personnel related matters. This section would have six key staff. Itwould be headed by a section chief, responsible for monitoring overallprogress, and staffed with the following additional staff: (a) an accountantand a budget officer responsible for keeping project accounts and controllingtechnical assistance budgets; (b) an architect responsible for preparinginventories of existing facilities and preparing schematic designs andequipment layouts for new facilities; (c) a procurement officer responsiblefor the coordination of bid document preparation, bid invitation, bidevaluation and contract awards; and (d) a personnel officer, responsible forpersonnel administration within the ITU.

3.15 Faculty Organization. To promote increased emphasis on (i) pedagogy;(ii) subject matter development; and (iii) curriculum development andin-service teacher training (in contrast to the current emphasis onengineering skill development), each Faculty of Technical/Vocational Educationwould be reorganized into: (i) a Technology Department, responsible forkeeping abreast of and disseminating to the other departments, technologicaldevelopment in the TTCs and abroad; (ii) a Department of Technical/Vocational

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Education with prime responsibility for developing pre-service teaching skillsthrough an appropriate mix of pre-service teacher training courses (para. 2.16);and (iii) a Development and Instructional Support Unit responsible for conductingin-service teacher training and ensuring relevance of curriculum materials. Eachdepartment would be headed by a vice dean. To ensure that technical andvocational teacher training curricula and training methodologies are relevant andresponsive to regional requirements, and to provide linkage between the FTVEs andtheir clients, the Government provided assurances during negotiations that: (a) by March31, 1989, a Regional Advisory Board would be established at each faculty to advise the dean,the faculty council and the faculty executive committee on requirements for teachers oftechnical subjects, requirements for teacher training courses in new specializations and oncurriculum development issues; and (b) its membership would include local technical andvocational schools, regional universities, TTCs and industry.

3.16 Management of Tourism Sector Training. As shown in Chart IV, amanagement committee for tourism training would be established under thechairmanship of the Deputy Undersecretary for Tourism. This committee wouldcomprise the General Director of Tourism, the General Director of Marketing andPromotion, the Director of Tourism Investments and the Director of the TrainingDepartment. The Deputy Undersecretary would nominate by December 31, 1988, aGeneral Secretary who would act as the Coordinator of an implementation unitwithin the MCT. Implementation of the activities under the proposed tourismtraining component would be carried out by the staff of this unit. Other keymembers of the implementation unit would include an auditor and a procurementofficer.

3.17 Evaluation of Programs. To strengthen YdK's capability for evaluatingthe external efficiency of technician training programs, overseas fellowshiptraining would be provided to about two suitably qualified ITU staff to enhancetheir skills in testing and evaluation. These staff would be responsible forassessing the effectiveness of training programs and providing relevant feedbackto ITU and TTC staff involved in curriculum development. In the longer term, theFTVEs would have additional expertise for testing and evaluation.

3.18 Architectural Design Services. Standard plans for new workshops andlaboratories in YoK institutions have been prepared by the consortium of Turkishand foreign consultants who have been responsible for designing renovations andextensions to existing facilities under the Industrial Training Project (Loan2399-TU). Schematic designs for alterations, preparation of workingdrawings/tender documents, and supervision of construction of the proposedextensions and renovations would be prepared by consultants who would be hired asa part of the technical assistance package (Annex 9).

3.19 Location of Project Activities. All project items will be located inrenovated and expanded existing facilities, and will be accommodated on existingsites.

3.20 Maintenance. The Government has a good track record in terms ofmaintaining training facilities, and its policy and practices in this respect areexpected to continue.

3.21 Procurement. The procurement procedures for the proposedproject are summarized in Table 3.4:

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Table 3.4: PROCUREMENT ARRANGEMENTS a/

Proiect Element ICB LCB Other Total

Buildings & Furniture 0.0 0.0 18.1 18.1(0.0) (0.0) (0.0) (0.0)

Equipment 107.1 5.0 2.0 114.1(78.7) (3.7) (1.5) (83.9)

Technical Assistance 0.0 0.0 33.6 33.6(0.0) (0.0) (32.0) (32.0)

Total Cost: 107.1 3.0 53.7 165.8Bank financing: (78.7) (3.7) (33.5) (115.8)

a/ Figures in parentheses are the amounts to be financed by theproposed Bank loan.

The exceptions to ICB procurement would be as follows:

(a) Contracts for equipment estimated to cost less than US$100,000 equivalenteach, which in the aggregate would not exceed US$5.0 million and which wouldnot be expected to interest foreign suppliers because of the variety of thecontents of each contract, would be awarded on the basis of competitivebidding advertised locally in accordance with local procedures to beacceptable to the Bank; and

(b) Sundry items not exceeding US$25,000 in each contract and aggregating anmximum of US$2.0 million equivalent would be purchased on the basis of aminimum of three quotations, in accordance with local procedures to beacceptable to the Bank.

3.22 Buildings and Furniture for Yok Institutions. Because of the small size(US$14.4 million in the aggregate and less than US$1.0 million per site), anddispersed nature of the proposed sites for civil works (see Map), bids would beinvited under local bidding procedures on the basis of one contract per projectsite (i.e. a total of 22 contracts). Contracts for furniture (US$2.2 million inthe aggregate for 22 contracts) would be awarded with on the basis of requestsfor at least three price quotations from schools or training centers which are inthe business of furniture production. Both of the above procedures are proving tobe economical and efficient during their ongoing use in the first IndustrialTraining Project (Loan 2399-TU). All civil works and furniture contracts would befinanced exclusively by the Government.

3.23 Invitations to bid on equipment for Yok institutions would be issued intwo phases because tender documents (including equipment lists andspecifications) are already available for a first phase which includes equipmentfor technologies identical to those under the Industrial Training Project (loan2399-TU). The value of equipment in the first phase (US$60.8 million) wouldaccount for about 60 percent of the total value of equipment (US$ 102.4million). Bids in each phase would be grouped into about 28 packages of goods,the contents of which could typically be provided by one supplier. All thesepackages suitable for International Competitive Bidding (ICB), would be reviewedby the Bank prior to bid invitation and would be procured in accordance with theBank's "Guidelines for Procurement Under IBRD Loans and IDA Credits" (May, 1985).

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3.24 In comparing bids for equipment to be procured through ICB, domesticmanufacturers would be allowed a preferential margin of 15 percent, or theexisting customs duty, whichever is lower over the c.i.f. prices of competingimports. The two invitations to bid and the proposed award of all equipmentcontracts would be reviewed by the Bank prior to final award decisions.

3.25 Technical Assistance for Yok Institutions. Because of the large size ofthe TA program (US$ 31.2 million) and the different nature of the assistance tobe provided to the TTCs (para. 2.08) and the Faculties of Vocational andTechnical Education (para. 2.14), two separate bids would be invited to provideintegrated packages of specialist services and fellowships (including necessarymanagement support) for the project items. The preparation of tender documentsfor the contract is nearing completion and the start of technical assistance hasbeen carefully timed to ensure continuity with the technical assistance programunder the Industrial Training Project (Loan 2399-TU). The consultants would beselected in accordance with principles and procedures acceptable to the Bank onthe basis of the "Guidelines for the Use of Consultants by World Bank Borrowersand by the World Bank as Executing Agency." At least three training institutionswould be requested to submit proposals for each package, following ashort-listing of institutions acceptable to the Bank. To ensure that the twotechnical assistance contracts for technician training and technical/vocationalteacher education would have an identity of objectives, a proposed steeringcommittee on technical assistance would be established to ensure coordination ofthe two technical assistance packages. The two TA team leaders would report tothe ITU coordinator who would be responsible for ensuring that the teams wouldwork closely together.

Status of Preparaton

3.26 The proposed project would be completed in about seven and a half years(1988-1995) in accordance with the implementation schedule (Schedule I). Asupplementary implementation schedule for the activities to be implemented by theMCT is attached as Schedule III. The project is in a state of preparation thatwould permit timely implementation because: (a) construction of buildings is inprogress for two major project items, and the remaining construction would belimited to extensions and renovations of existing facilities; (b) equipment listswith bid specifications have been completed for about 80 percent of thetechnologies in the TTCs, and draft equipment lists exist for the remaining TTCsand for the faculties of technical and vocational education; and (c) thetechnical assistance packages, including terms of reference are expected to befully defined by February, 1988, and proposals are expected by August, 1988.According to the Implementation Schedule (Schedule I), project completion wouldbe December, 1995 and the Closing Date would be June 30, 1996.

tgyvnEion Reuimrements

3.27 An initial and crucial supervision mission would be scheduled forSeptember, 1988 to discuss YoK's evaluation of the technical assistance (TA)tenders and to review the proposed contract terms for the selected TA agencies.A second carefully timed supervision mission would take place shortly after thearrival in Turkey of the two leaders of the TA teams for technician andtechnical/vocational teacher trainiag (January, 1989). The task of this missionwould be to brief the team leaders and local counterparts in YMk's ITU as well asthe staff of MCT's PIU, on all aspects of project implementation as well asreporting requirements vis-a-vis the Government. This would ensure that ITU andMCT staff would be able to implement the project according to its established

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objectives, and to produce issue-oriented reports which could form the basis forGovernment reporting to the Bank. Once the reporting system has beenestablished, Bank supervision would rely heavily on it to keep abreast ofprogress and to identify project issues. Subsequent supervision would: (i)emphasize problem solving; (ii) ensure that the Bank's procurement guidelines arebeing fodlowed; and (iii) ensure that there is progress towards meeting projectobjectives.

Disbursements, Accounts and Audits

3.28 The current country disbursement profile (from date of Boardpresentation) is eight years. The EMENA regional profile for education projectsis in excess of ten years, which is due to the early stage (i.e. unacquiredsites, no tender documents for equipment and technical assistance) at whicheducation projects have hitherto been typically appraised. The proposed projectwould be disbursed over a period of about eight years, which is consideredreasonable because of the advanced stage of project preparation. Disbursements(estimated at the equivalent of US$83.8 million for equipment and US$32.0 millionfor technical assistarce) would be made against:

(a) Equipment: (i) 100 percent of foreign expenditures for directlyimported items; (ii) 100 percent of ex--factoryexpenditures for locally manufactured items; and (iii)83 percent of local expenditures for other itemsprocured locally.

(b) Specialist services and fellowships: 100 percent of total expenditures.

The disbursement schedule follows the normal profile for education projects inthe country. Disburcements are expected to be completed by June 30, 1996.However, disbursement against expenditures incurred under the tourism trainingcomponent will not start until the Government and the Bank have agreed on thedetails of a program of implementation (Schedule III) for that component. ABank mission will visit Ankara in June, 1988 to review such a program.

3.29 Disbursements against contracts for goods and services exceedingUS$200,000 equivalent would be made against normal documentation.Disbursements against contracts below that level would be made on the basis ofStatements of Expenditures available for examination by Bank missions. Tofacilitate timely project implementation, the Government would establish,maintain and operate, under terms and conditions satisfactory to the Bank, aSpecial Account in the Central Bank of Turkey to which the World Bank wouldmake an initial deposit, equivalent to about US$10.0 million (the averagedisbursement amount over a four month period). The Special Account would bereplenished as appropriate in accordance with established Bank guidelines.

3.30 Accounts and Audits. The Industrial Training Unit would maintainseparate accounts for the project and would prepare, at the end of eachquarter, a statement of progress, including a statement reflecting projectexpenditures. Project accounts including the Special Account (para. 3.29)would be audited in accordance with the March, 1982 Bank "Guidelines forFinancial Reporting and Auditing of Projects Financed by the World Bank". TheBank would be provided within six months of the end of each fiscal year, withan audit report of such scope and detail as the Bank may reasonably request,including a separate opinion by the auditor on disbursements made on the basisof a statement of expenditures.

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IV. BENEFITS AND RISKS

Benefits

4.01 The proposed project would improve industrial productivity throughthe expansion and upgrading of pre-service technician training programs, andof the technical/vocational instructor training programs. The 20 TechnicianTraining Centers (TTCs) to be financed in the proposed project would produceabout 3,100 graduates per year by 1996. This output would meet the projecteddemand for higher-level technicians in manufacturing industries, and, inaddition, cover a significant percentage of total demand for such personnel inother sectors such as the power and services sectors. More importantly, theproposed investment would put into place a dynamic training system that wouldrespond to the needs of changing industrial technology. An indication of thereturns on this type of investment is provided by an evaluation of thebenefit/cost ratio for the development of 8 TTCs uider the Industrial TrainingProject (Loan 2399-TU). The evaluation indicates that by undertaking thisform of investment, the Government will enjoy a return to its resources ofabout two and one-half times the level it presently enjoys.1' Also, throughthe provision of training programs in commercial studies, financialadministration and tourism which are attractive to women (estimated 80 percentof enrollment), the proposed project would increase the labor forceparticipation rate of women in these areas. Finally, the project would meetthe urgent needs for trained manpower in the tourism sector which is becomingan increasingly important source of foreign exchange earnings.

Riks

4.02 Under the ongoing Industrial Training Project (Ln.2399-TU), there isa risk that YoK may not be able to bring on board, as soon as needed, specificskills required to manage the technician training system on a continuingbasis. This risk would be minimized in the proposed project through thesupport to strengthen the existing TTU to enable it to undertake additionalresponsibilities in respect of technical/vocational teacher training. The TTUwould be redesignated as the Industrial Training Unit (ITU) to reflect itsexpanded responsibilities. Assurances would be obtained from the Governmentthat YoK would recruit the requisite number of full-time staff for the ITU byMarch 31, 1989.

4.03 The existing arrangement of attaching technician and technicalinstructor training to the universities presents the risk that trainingprograms would be compromised by an overly academic orientation. This risk isconsiderably reduced by the strong commitment of YoK to make techniciantraining programs relevant to the needs of industry and by cooperative

1/ See IBRD: Republic of Turkey - Industrial Training Project, ReportNo. 4755-TU, February 28. 1984.

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arrangements for this training with industry. In addition, the proposedproject would include a management structure for technical/vocational teachertraining which establishes strong linkages between the faculties and theirclients such as the Ministry of Education and the Ministry of State, to ensurethat the training system would always be responsive to the job-oriented needsof the clients.

4.04 Since many FTVE graduates currently prefer to work in industry, thereis a risk that the Ministry of Education (MOEYS) may not be able to attractsufficient FTVE graduates to teach in its secondary schools. To alleviatethis risk, the MOEYS has proposed to the Government that the terms of servicefor technical and vocational teachers should be significantly improved. TheBank fully supports the recommendations of the MOEYS which are beingconsidered seriously by the Government in view of the critical shortage ofteachers in technical/vocational institutions. The proposed project wouldassist in improving recruitment and retention rates of teachers through: (a)re-orienting FTVE programs towards teacher education to ensure that theend-products are trained to teach and not serve as engineers; and (b)improving teacher quality and involving the MOEYS in curriculum developmentand standards setting for teacher training, thereby eliminating the need foran external examination in which the passing rate is only about 50 percent.Finally, the MOEYS would also simplify recruitment procedures for teachers inorder to shorten the waiting period for candidates.

4.05 Finally, there is a risk that the MCT may not be able to implementthe tourism training component in a timely manner. To reduce this risk,disbursements against expenditures incurred under the component will not startuntil the details of an implementation program have been reviewed and agreedby the Bank. This is expected to be done in June/July, 1988.

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V. AGREEMEINS TO BE REACHED AND RECOMMENDATIONS

5.01 During loan negotiations, the Government provided the followingasurances:

(a) that it would allocate funds for creating additional staff positionsfor instructors, based on a ratio of 12 students to 1 instructor, forthe 20 new Technician Training Centers (para. 2.09);

(b) that it would establish by March 31, 1989, a Department of TechnicalEducation at the three Faculties of Technical Education in Gazi,Marmara and Firat Universities, and a Department of VocationalEducation at the Faculty of Vocational Education in Gazi Universityto provide the pedagogical focus to teacher training programs (para.2.16);

(c) that: (i) it would establish a Policy Board for Industriall Training(PBIT) by March 31, 1989 under the chairmanship of a YdK meL)erresponsible for technician training and technical/vocational teachertraining; (ii) the PBIT would have representation from the ertitiesconcerned with the development and management of technical educationand training; and (iii) the existing Technician Training Unitresponsible for project implementation would be expanded int, '.aoIndustrial Training Unit (ITU) having a full-time coordinator (whowould also serve as secretary to the PBIT), and a full complekent ofkey staff by March 31, 1989 (para. 3.11);

(d) that: (i) by March 31, 1989, a Regional Advisory Board wo"dt beestablished at each Faculty of Technical/Vocational Education toadvise the dean, the faculty council and the faculty executivecommittee on requirements for teachers of technical subjecti;,requirements for teacher training courses in new specializations andon curriculum development issues; and (ii) its membership wouldinclude local technical and vocational schools, regionaluniversities, TTCs and industry (para. 3.15);

5.02 During negotiations, the terms of reference for the technicala4sistance program were reviewed and confirmed.

5.03 Subject to the above conditions, the proposed project provides asuitable basis for a Bank loan of US$115.8 million to the Republic of Turkey.

-31- Annex 1

Page 1 of 2

REPUBLIC OF TURKEY

INDUSTRUiL TRAIDNG IU PROJECT

STAFF APPRAISAL REPORT

The Council for Higher Education (YoK)

1. roK is a semi-autonomous Government agency, in effect a mini-ministry, which was established by a law passed by Parliament in 1981 andentered into the constitution. Its functions are to plan, organize,administer and supervise education provided by institutions of higher learningincluding the 29 universities, the specialist academies, and the 75 two-yearpost-secondary technician and other training institutions. YbK'sresponsibilities include the training of teaching staff and the appointment ofthe senior staff and management of the universities and institutes.

2. The President and six members of the 24-member governing council ofrYg are appointed directly by the President of the Republic of Turkey and theYK Pres;.dent reports to him. Other members of the council are nominated bythe Cabinet, Ministry ef Education, the Inter-University Council and theGeneral Staff of the Armed Forces, and subsequently appointed by the Presidentof the Republic of Turkey. The chief administrative officer of YoK is theSecretary General who administers YoK through a number of AssistantSecretaries General who in turn, administer Directorates, which includeEducation and Training, Planning, Research, Budgets and Investments, Libraryand Documentation, Data Processing, Coordination, Construction, andAdministration (Chart 1). A Student Selection and Placement Unit isresponsible for the country-wide selection and placement of the nation'sapproximately 400,000 students in higher education and also monitorsuniversity examinations. A Technician Training Unit is responsible for thedevelopment of technician training. Both these units report directly to thePresident of YoK.

3. Government funds for higher education amounted to TL 151.7 billion in1985, or 23 percent of total expenditures on education. YoK administers thisbudget and provides funding for each institution under its control and ensuresproper use of financial resources.

4. The Technician Training Unit (TTU) was established formally in 1983to be responsible for the development of technician training, including thetransformation of eight existing post-secondary xvcational traininginstitutions into Technician Training Centers (TTCs) for which bank assistanceis included in the Industrial Training Project (Loan 2399-TU). Originally,the Coordinator of the TTU reported directly to the President of YoK, but aCouncil Member of YhK has subsequently been appointed to direct the operationsof the TTU. The Coordinator now reports to this Council Member on theday-to-day operations of the TTU.

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Annex 1Page 2 of 2

5. The proposed project would further assist YoK in converting anadditional 20 post-secondary vocational institutes into TTCs. The TTU willadminister all 28 bank-assisted TTCs and in addition, will also be responsiblefor the coordination of technical and vocational teacher training programs atthree universities. To reflect its expanded functions, the TTU will beredesignated as the Industrial Training Unit (ITU).

6. Within the Industrial Training Unit is the Project ImplementationUnit (PIU) for the proposed project. At appraisal, the organization andmanagement system of the ITU, the composition of the PIU, and institutionallinks with the universities and industry were reviewed and found acceptable tothe Bank. Chart 2 shows the proposed management system for technician andtechnical/vocational training. Details of this proposed system are given inChapter 3.

7. All the existing post-secondary vocational training institutions areattached, for administrative purposes, to a parent university in thevicinity. All the 28 bank-assisted TTCs would remain under the administrativecontrol of their parent universities. The Council Member responsible forindustrial training and the Coordinator of the ITU have direct access touniversity rectors on all matters affecting the development of the TTCs andwill, in consultation with the rectors and the President of YoK, advise on theappointment of TTC principals and other senior staff. A critical factoraffecting the development of technician training under ThK and the proposedproject is the dogree to which the Coordinator can establish effectiverelationships with the staff in the universities concerned with theadministration of the TTCs. The high caliber of the present TTU/PIU staff islikely to assist this process.

8. The responsibility for curriculum and staff development, and thebudget of each TTC is with YhK, which ensures budget autonomy from parentuniversities and independence in program development. The administrative linkwith the universities has the advantage that there is a strong localadministrative support for each TTC. However, it carries the risk that thedistinction between university studies and the industrial technician trainingprograms proposed by the project may be made less clear. This issue isappreciated at the highest levels in YoK and every effort is being made toderive the maximum benefit from the administrative liaison with theuniversities.

9. Although YoK is a relatively young organization, it has shownsignificant progress in the development of technician training and in theimplementation of the Industrial Training Project (Loan 2399-TU). Four of theeight TTCs included in the project are already in operation and would beproducing their first graduates in 1988. The staff associated with theproposed project are well qualified and have benefited from the experience ofimplementing the ongoing project.

-33- Annex 2

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING II PROJECT

STAFF APPRAISAL REPORT

Starting Monthly Salaries of Engineers, TechnicalTeachers and Technicians (as of July 1. 1987)

(Turkish Lira)_ _ ._Wmz.uum . - . - in.

Type of Personnel Salary Years of Post-SecondaryEducation

Public Sector Engineers a/ 157,000 4

Technical Teachers b/ 99,000 4

Technical High School 88,000 0 + on-job trainingGraduates c/

Technician d/ 89,000 0

ej Graduates from the faculties of engineering who are employed bygovernment agencies or by state economic enterprises (SEEs).

b/ Graduates of the four-year program in the faculties of technicaleducation who are teaching in the secondary industrial/technicalhigh schools of the MOEYS.

c/ Graduates of the secondary industrial/technical high schools of theMOEYS who are working in industry as semi-skilled and skilledworkers.

d/ Graduates of the two-year post-secondary technical traininginstitutions (VSHEs/TTCs) under YOK who are working as twchniciarla.

Source: YOK project preparation document, August 1987.

O6OTT

REPUBLIC Of ItkKEt

PfojCtE4t Earuiigmts im 20 i.cbalcla Ira,Dzq Enters

CnJRfLI ELECTRONICS tAlU. ESAC- RCI- AR6t- CIVIL FlUI- A1101 CMUUTER PEIRLEUR CO1. FM TEXTILE 70310N CO1M I.L fl1KEIAL miNijS- MIuLIlilli- mmCH EMVLECN RICU. AMid. CULTU- OUV AND TECH- TECH- IEOI- TECH- TECH- STWtES UKIlIS- TRAIVE EIUKLNENIIINTtruriml MUremIa. WAY it MAL lREID.6 ILOSI NO.05V 21 KILOS KILOS6N.5 mIATmO SEovicS

I. UTALIB 30 30 s0 00 so 3 30 30 10 30 SO 420

2. 81LECIx 30 30 30 40 0 30 30 so 30 30 390

S. ERiUU so 30 30 00 90 so 27u

4. SIVES 30 Su 30 ov 9 30 270

5. MAIN o io o 0 so so so30Jo3 So so io so zoA. DIAIVE 40 90 30 Ooo

1. lATHS 00 0 30 120

S. 51103FA 000 30 30 30 30 270

9. VA 30 so s0 60 0 30 30 30 so To 30 so so 410

IC. KAYSEh so 30 30 00 90 so 30 Wo 350

11. ELAI16 so so so 00 w s s0 300

12. k*AWIE Z EIESISI 30 30 30 40 30 so ito

13.ShIlll 30 30 30 00 0 30 so so 30 300

14. NSSA 30 so so 00 30 J0 30 Jo 30 JO

15. 6UZIAITE so s0 so 00 90 so so so so so 900

*6 KA.III rAMR 400 30 30 30 30 30 So 130

17. TEKIUh so so so 40 0 30 so Jo 30 SO5 420

It. IFLIIESLB 30 30 so 00 0 so 30 30 30 340

19. amE 30 30 so 00 0 30 so 30 so 30 so so so 480

20. KomLi so 30 30 40 9030 W0 30 30 30 420

fNRllLNElT/SWkIJC 400 490 490 1,200 1,440 150 480 00 3Y) 120 90 120 ISO ISO ISO 27u 4u 240 0,000…--- ---- & ---- -- -- ----- -- -- ---- ----- --- -- -- -- --- - --- -- ---- -- - ---… - -.- - ----- - ---- --- ----- -- -- ------- -- ----

I1 iher. we. the.. options imier this spsulalaatamn, samly, medical elKtrlmaCS, ClWutet repair and Miflitlhci, ad COlmRitatama.2i lb. P~trOlM tKhfolGqY SPICIAlitattAll Ecar`ams1 tao options: III petrol.. eflpnwrnq (at Satma [tC); and (it) petrocb.uicals fat Eaj aNW local:t TTCs).

-35-

Annex 4

REPULIC OF TURIEY

SECOND INDUSTRIAL TRAINING PROECT

Requireefts for Trained Instructors by Subject for 20 Technician Training Centers

Nuaer of ENROLLIENTS SPECIALISTTechtcia TOTAL INSTRUCTOIS

Training TOTALCenters

1. CIVIL ENGINEERING 16 460 322. ELECTRICAL ENGINEERING 20 1,200 s03. CONTROLS & INSTItENTATION 16 460 324. ELECTRONICS TECIDLO6Y 1/ 16 4*0 325. INDUSTRIAL ELECTIONICS 16 480 326. IECHAICAL ENGINEERING 16 1,440 967. All CONDITIONING & REfRIGERATION 11 330 228. FOIIDRY TECHNOLOGY 2 60 49. AGRICULTURAL ENGINEERING 5 ISO 10

10. CONPUTER TECHNOLOGY 4 120 811. PETROLEII TECHNOLOGY 2/ 3 90 6

---..-.-.- ------.-.----... ---.-..-------

SI-TOTAL S,310 354

12. CHENICAL TECHNOLOGY 4 120 813. FOOD TECMOLOGY 5 ISO 1014. TEXTILE TECHOLOGY 5 150 1015. COIIERCIAL STUDIES 9 270 1916. ADNINISTRATIVE SERVICES 8 240 1617. ADNINISTRATIVE ASSISTANTS/SECRETARIAL 8 240 1619. TOURISH 6 10 12

SUI-TOTAL 1,350 90

GRA TOTALS 6,660 444

( SPECIALIST TEACHERS 444RELATED SUUJECTS TEACHERS Ill

TOTAL TEACHERS REUIRED: 555

STUDENT TEACHER RATIO: 12 TO I

1/ Electronics technology comprises three options, namly, edical electronics,copeter maintenance and repair, and comunications.

2/ Petrolm technology comprises toe options: (a) petrolm engineering; and (b) petrochmicals.

-36- ANNEX 5

REPUBLIC OF TURKEYSECOND INDUSTRIAL TRAINING PROJECT

STAFF APPRAISAL REPORT

Projected Enrollments and Output by Type of Program for the Facultiesof Technical and Vocational Education

Program 1987 1988 1989 1990 1991 1992

4-year 1/ 9,902 8,400 8,300 8,300 8,300 8,3002-year 2/ 1,582 2,300 3,000 3,000 3,000 3,000I-year 3/ 0 1,000 1,400 1,400 1,400 1,400Nodular 4/ 0 1,200 1,800 1,800 1,800 1,800

Total Enrollment 11,484 12,900 14,500 14,500 14,500 14,500Total Output 3,400 5,200 6,850 6,700 6,570 6,570

1/ These are existing four year programs for high school graduates.

2/ New two-year programs for graduates of post-secondary institutionssuch as the technician training centers under YOK.

3/ New one-year post-graduate programs for university graduates ofrelevant areas of specialization.

4/ Nodular programs of 6-weeks duration for instructors in the systemand for individuals with appropriate industrial experience who wishto become instructors.

0070T

-37-

Republic of TurkeySecond Industrial Trainin PrIoject

Staff Apraisal Report

Unit Costs of Equipent Per Training PlaceComparison of Project Costa with Bank-Wide Costs

Costs Bank Wide Unit Costsof This ------------------------Project Median let Docile

Cost of Eqt for TTCs in Lira 000 58,839,470Cost of Eqt for TTCs in US$ '000 57,686Nwmber of Additional Trainees: 6,660

Cost per training place (1983 US$): 4,118 6,189(1988 US$): 8,662 5,298 7,962

Coat of Eqt for Faculties in Lira '000 18,630,280Cost of Eqt for Faculties in USS 000 18,265Nmber of Additional Trainee: 6,500

Cost per training place (1983 US$): 4,814 7,193(1988 US$): 2,810 6,193 9,253

1/ Source: Unit Area and Unit Cost Estimates in Education ProjectrOPS, November 1983. Pbst Secondary Non University Technical, Vocationaland Agricultural Institution (TVTI), and University level institutions(Faculties of Voc/Tech. Education). 1983 prices have been inflated by:28.6%

Foreign exch Rnte: TL 1020: US$1.00

-38- ANNEX 7

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING II PROJECT

STAFF APPRAISAL REPORT

PRICE CONTINGENCY ALLOWANCES

Foreign Escalation Domestic Escalation

Year Equipment Other Items All Items

1987 8.51 5.8X1988 10.5X 5.61 25.011989 6.31 5.42 20.011990 -5.71 -0.32 25.0S1991 1.31 1.32 20.0S

* 1992 1.31 1.3% 13.011993 1.3% 1.3% 13.011994 1.31 1.31 13.01

Source: IBRD, October, 1987

0070T

-39- ANNEX 8IEFLIC OF TI3%E

KM IUU6RIML 1gAI WINS 'OJET!S&mra Acco,at bv *.e c Cwowot

.TUIISH LIRAb fidier.)

_BTD CF IZU6TRIALTAINIII INISTiUs:i rICIw M hINII1 Vl ACC. AN TECH. TIaE Tc ININDS

CUIM IOuu F CM- cr CiIo TECNWCUIIc. KYL TWIEO TOURISNTE,gcIZ voCFlTEN. mAUCT TINIIu CF mOiNN lM.E EMOTION AIOS. TU1863Si sECT0

VW TE10 TO KWEL T3 M1M6 WIIS KARTIET MTTS ST UlITS FACILIIIES 1111116 Total,. ................ ,f ,SfCS , ,,_ ....... .......... tfffsa.. n.nhaea nal*ll, .fa.aaaat........ s,ss nafl... a...

NIWIV1ER COSTS

A. . .'lj

ECCItitNT - - - - 69,99.05 - -- 232049.60 3.960.51 96,309.36- - - -- - - -- - - - - - - - - - ---- --

Si*-Total £311?- - - 69299.05 - 23049.80 30960.51 76h309.3iPh,.ieoI CotaiWcm¢ - - - - 4* 07.27 - - 159S.9o 274.74 6,i0,.98Ptie ContOD tC.s - - - 62,63.45 - - 20,834.73 3,579.91 87V.054.9

- I 160.0I8S COTINKCIS - - - 136745.77 - - - 45,483.50 7-.15.16 I09044.44-- * - 20,465.37 - - - 6407.06 119.62 20,44-.05

- -97.-3-2.3 1-32.34.08 5560.93 '3i22'7.34'^rL A515TOIC

FEUan9 BO.9 70.27 - 12,825.97 - 1.954. 3,449.77 843.28 - 515.20 199740.35__ TAw s - - - 183.36 - - - 183.36

-UALISTt 1,19.25 406.52 1.327.U - - 1,09.38 1.6)4.07 544.69 - 157.36 7,760.94

Sub-Ttal TEOSICAL ASSIST1 1D279.24 478.79 1,327.68 139009.34 - 39044.25 59013.4 1,187.97 - 2,093.56 270704.65plhIC4l Cont't ci.s 127.92 47.A 132.77 1,300.93 - 304.42 5WU.38 13U0.0 - 209.36 2070.47Price Conting 99c4 P7.5a 562.20 1,052.09 14.927.52 4-119.53 5S802.17 29142.30 - .57.N 30,258.28

Su-Total 1KWI CTIUEACIES 2.401.75 1,0".87 24512.54 29Y237.79 - 74.20 119394.39 39669.06 - 2,90.79 607M3.;ov,sop E%c9a 2,021.05 o924 2#101.24 27.279.43 - 631M. 10.317.34 3283.14 - 2,s50.62 55.205.62

C. 94iL8116S

EXTERSUNS TO EXISTn FACILITIEtS - - - 8,470.91 - - - - - 8,470.913ETIIN O EXISTI F4CILITIES - - - - 57h.31 - - - 520.72 19142.39 3,239.41. ITt1E - - - - 1-2u - - 671.36 - 49m.52

8-JTotal lUILiI- - - 14.38 - - - t.192.00 1142.39 13.606.84P1hoS&a CantiAlcf - - - - 11.44 - - - 119.21 114.24 1,360.88Price ContiU wmif - - - 17.00.72 - - 1OM62.10 1.501.44 2,224.34

8*Total 1li1 COITIMUCE - - - - 299442.54 - - - 2,03.46 2,758.07 3P,94.07Tam - - - 2944.25 - - - 23s 275.81 3519.41Fortop E_hAi - - -. 620.84 - - - 6n.29 623.13 79917.26

Tota IEDESt I COSTS 1,279.24 478.79 1,37.0 13009.34 80,573.43 3,044.25 5s0n3.uH 1,387.97 24*241.0 7,196.46 1374M22.8ftical CantanMsn.w 127.92 47.86 132.77 1,300.93 5,934.71 304.42 50.3 138.80 1,718.17 5S8.34 10o812.33Price Cm9iUmncrn 994.9 5U2.20 1052.09 14,27.52 79,480.17 ,119.53 s3402.17 2.142.30 22,516.91 5,739.23 137.5)6.?1

taUI ll0litS CUTWiN Is 2*401.75 1.8,7 2,512.54 299237.79 166.10U31 7940.20 11394.39 3,69.06 46,476.9 139534.02 205M9.smfnfnn n_a *-_aanaw .. .,San nfiS aa a. auaa.a nan.. .annfl a.aa

Ts _ - 23,409.63 - - - 7,106.41 1,445.42 31961.46

Forms ExchwU 202Q1.0s 92.84 2.10l.24 2279.43 103.923.17 6,731.96 10,317.34 3,233.14 334037.36 8t734.68 198,350.21

oWt LilE Ctm 1.279.24 478.79 1327.6 13,009.34 0eS73.43 39044.25 5,083.84 137V.97 24241.06 7196.46 137.22.96Fmacal Contirwgmm 127.92 47.0 132.77 1.38.093 5.94.71 304.42 50.3s 138.80 1.718.17 598.34 10812.33Prie Contiu .ctes 994.58 562.20 1,52.09 14,927.52 79,66017 ,119.53 5.2.17 2.142.30 22,516.91 53739.23 13795)6.71

otalECT COSTS 2*401.75 1e-.0. 2.512.54 29.237.79 16,1"0.31 794u.20 11*394.39 3669.06 43,476.96 13534.02 265,971.90n..aa na- aa*-.a -- ssannsa. nn ssn .a asa fh ,aa..aan

T - - - 23,4963 - - - 7,186.41 19445.42 31,961.46Forunw Euxim 2*021.05 2.84 29101.24 27,279.4 1033.17 6731.96 10.317.34 3tM3.14 33.037.3. 8.734.6 19,350.21

Cb.af 1, 190 111:20

-40- ANNEX 9Table I

REPIMLIC OF TURIEY

SECOND INDUSTRIAL TRAINING PROJECT

Technical Assistance Progra

Fellowships and Expert Services for the Nanagemt of Industrial Training in Yro

FELLOHSNIPS SUIJECTEXPERTS

NAN-MONTHS NAN-MONTHS

1. PLANING AND DEVELOPMENT 32. CURRICULUM DEVELOPMENT 63. TESTING AND EVALUATION 64. TRAINING NEEDS ASSESSMENT ;S. STUDY TOUR FOR TTC DIRECTORS IS6. STUDY TOUR FOR SENIOR PIU STAFF 36. TEAM LEADER FOR TECHNICIAN TRAINING . 427. COORDINATOR OF TECHNICIAN CURRICULUM DEVELOPMENT 248. COORDINAtOR OF INSTRUCTOR TRAINING FOR TTCs 249. EMPLOYNENT AND ANtPONER IWORNATION SPECIALIST

10. COPYRIGHTS AND TRANSLATION SPECIALIST ;It. PROCUREMENT SPECIALIST 3

TOTAL 36 99

-41-

Annei 9

Table 2REPUBLIC OF TURKEY

SECOND INDUSTRIAL TRAINING PROJECT

Technical Assistance Program

Fellowships and Expert Services by Subject for 20 Technician Training Centers

FELLOWSHIPS SUBJECTEXPERTS

MAN-MONTHS MAN-NONTNS

1. CIVIL EN6INEERING 288 32. ELECTRICAL ENGINEERING 720 33. CONTROLS & INSTRUMENTATION 288 34. ELECTRONICS TECHNOLOGY 1/ 288 215. INDUSTRIAL ELECTRONICS 288 36. MECHANICAL rN6INEERING 864 37. AIR CONDITIONiNG & REFRIGERATION 198 38. FOUNDRY TECHNOLOGY 36 39. AGRICULTURAL ENGINEERING 90 310. CONPUTER TECHNOLOGY 72 311. PETROLEUM TECHNOLOGY 2/ 54 6

SUB-TOTAL 3,186 54

12. CHEMICAL TECHNOLOGY 72 913. FOOD TECHNOLOGY 90 914. TEXTILE TECHOLOGY 90 915. COMMERCIAL STUDIES 162 916. ADOINISTRATIVE SERVICES 144 917. ADMINISTRATIVE ASSISTANTS/SECRETARIAL 144 918. TOURISN 108 9

SUB-TOTAL 810 63

GRAND TOTALS 3,996 117

1/ Electronics technology comprises three options, namely, medical electronics,computer maintenance and repair, and communications.

2/ Petroleum technology comprises two options: (a) petroleus engineering; and (b) petrodcmals.

RPOULIC OF TURKEYSECOhU I UTIAL TRAINING POJECT

TECahICAL ASSISTANCE PROGRAM

Consultants forFaoulti1s af Vocational ant Technical Education

Areas of --------Faculties of Technical Education---- Faculty of Voc. Educatton

Consultant -------1------ - 2 3 ----- Total

Activit Number Month Number Month Nuiber Month Number Month Number Month

Tech. Education DepartmntTeacher Educ. Specialists I 24 1 24 1 24 1 24 4 96

Hat. 0ev. Specialists 1 12 1 12 1 12 1 12 4 48

Technology Department 4 6 4 6 4 6 4 6 16 96

In-Service Training 2 6 2 6 2 6 2 6 8 48

Team Leader 1 36

TOTALS a 72 8 72 a 72 8 72 33 324

Note: Team Leader to be located at Yok in Aakara

Consultant Specialists to be located in respective Faculties except for Technical Teacher education

specialists who will begin with one onth at their assigned Faculty. return to Yok for 6 months of materials

preparation as a group, and then proceed to Faculties for final 17 months of assignwent.

I-;t!1

tO XIj %O

SECOND

Fe'llowS ps fi)rFaculties of Vocationa' LAn :ftNLI Teaherr Educati

Areas of ------- Faculties of Technical Education--------------- -Faculty of Voc. Education-Fellowship ----- 1 ------- ------ 2------ ------ 3------ ------- I-------T

SR2call2ations so "ML No RL NIL ML IL ML IL

Tech. Teacher Education".S. 6 24 6 24 6 24 6 24 24 576

Ph.D 3 42 1 42 3 42 3 42 12 5604

RID 5 12 S 12 5 12 S 12 20 240

Tech. Specializations 21 9 14 9 10 9 23 9 6S 612

Library/Learning Resources 2 3 2 3 2 3 2 3 S 24

Study Tours forSenior Administrators 5 I 5 1 S I 5 1 20 20

Vyik 2 2

Totals 42 S30 35 467 31 431 44 546 1S4 3976

-44- ANNEX 10

Annual Requirements for Skilled Manpower in the Tourism Sector 1/

A) By Specialization

No. of required personnel

Administration and Accounting 200Front Office 400Housekeeping 800Restaurant and Bar S80Kitchen 600Purchasing Office and stores 120Maintenance 400Others 600

Total 4,000

B) By Skill Level

Manager 80Department Heads 200Supervisors 520Skilled Workers 2/ 1800Unskilled Workers 800others 600

4,000

1/ These requirements are only for tourist class hotels. Manpower needsof other establishments related to leisure and travel activities suchas bars and cafetarias located in touristic areas, have not beenconsidered. T

2/ The Ministry of Culture and Tourism is responsible for training thiscategory of workers in the Tourism Training Centers.

-45-

Annex 11

Requirements fcr Instructors in Hotel Specializations 1/

at 10 Tourism Training Centers

pecialization Requirements in 5 Requirements in 5existing centers 2/ new centers 3/

rant-Office 10 5

itchen 20 10

?staurant 20 10

ousekeeping 15 5

-------------------------------------------------------------------3tals 65 30

…---------------------_------------------------------------------------_

1/ In addition to instructors in "technical" specializations, each centerwould require three language teachers (English, German and French).

2/ These centers are located at Ankara, Antalya, Istanbul, Izmirand Urgup.

3/ New centers would be established at existing hotels run by theMiiistry of Culture and Tourism. The selected hotels are located atIzmir, Yalova, Istanbul and Urgup.

-46- ANNEX 12

TECHNICAL ASSISTANCE PROGRAM FOR TOURISM SECTOR TRAINING

A) Experts' Services----------------------------------------------------------- __------------

Title Number Man/Months----------------------------------------------------------- __------------

Hotel and Tourism Training Planning 1 36and Organization Expert

Food and Beverage Training Expert 1 27

Room Division Training Expert 1 21

Food Production Training Expert 1 18

Housekeeping Training Expert 1 12

Maintenance Training Expert 1 12

Hotel Training Centers Layout Specialist 1 3

Equipment Procurement Specialist 1 3

Language Laboratory Operation Expert 1 6

Audio-Visual Aids Specialist 1 3

Water Sports Specialist 1 3

Totals 11 144---------------------------------------------------------------------- __-

B) Fellowships-------------------------------------------------. _-----------__--_.-------

Subject Duration of Man-MonthsStudy Tour (mths.)

I. Management of Hotel Training Centers- 10 Training Center Directors 3 and 1/2 35- 10 Training Center Assistant Directors 3 and 1/2 35

II. Strengthening of Training Department- Chief of Department and assistant 3 6- Training Methodology Expert (2) 3 6- Curriculum Development Expert (4) 3 12- Equipment Procurement Officer 3 3- Financial Controller 3 3

Tot-------------s------(30---------fellows)----------------- 100---------Totals (30 fellows) lOC

- ---.-- -- -- --- -- -- ------ ---- - --- -- - ---- --- -- ---- - - -- --- -- - ------ __ - -- -- ---

-47-Annex 13

REPUBLIC OF TURKEYSECOND INDUSTRIAL TRAINING PROJECT

STAFF APPRAISAL REPORT

Related Documents Available in Pro ect File

IBRD Turkey: Education and Training Sector Survey, July 1986, No. 6249-TU

IBRD Turkey: Industrial Sector Strategy Paper, February, 1983

IBRD Turkey: Industrial and Vocational Training, July 1983, No. 4496-TU

YhK Proposed Project Document (Ankara, August 1987)

YSK Equipment and Specification List, August 1987

MCT Preparation Documents for Tourism Sector Training, Ankara, February1988.

EMlPH* Working Papers

*Population and Human Resources Division, Country Department I

eMIC of Tnmw\SEC EUnTSIAL Tulnuc PIECT

STAFF wuMISaK umm

eve? 89,6 O9tto5 09 8992 iota 4 slow1J.. Jul Jaa Jul Jaa Jul Joa Jul Joe Jol Jo* Jul J jl Jo e i Ja Jl JnBoard Approval - I I I I I I I I I I I I toloo So^n a >_}

P Loam Eif ecve I ).)

liECII(AL as-is.lsaxe: * *- * * a * * * a a a * * * * a a *ISl" EaOn ea^too *A £.tr62 be Me 2nd 1I omt0.si Mae TO Rod Ii. usenbt rpa. i4, a . hareits tPr*at: * )). a * a a a * I o aIS igano O*oewe SofA* |is *m.'te It Sid I =)I? iwaluate ta Side 1 =is 94ic"uSI Iti (eiotvac£ oe V Mama Review of draft C act a * * a * * * a * * a * * a a a ,S IA (Cotract S1isnen 3

Jl I *4s,lax6t,s,n*2 Start I& ueot&!) lit ;16 iob *.640trw )24 prepof Uane.*d . pdu . * * g* * c a a p a * C a21 lamS of lae; etdw S Ca" .pS& Select l.t eoSIou I -

;? lot l-- ISt*10v *t I,'5 le i.IarmaS * Iev*t

lI Croup teachin m £I solect 2nd lIC ISntract4 roup , toot

lnd II la-iuawtrv * 8V_2.d tIC 11aterna i, ___.nI(, au e La e E t* 3* a a at , , , * a a " * a * ' *

.2n4 M 'om 0;* Leave*2d lI( M 4rop leach$*g* fir * for itr,.EmpoertO S>

3? *odml, OTC -.rricula 96%oslet.bo) IOi now I % Cuiticutat 16rat( Ig

so Fl"E (CI It. calntr V * * a a - 5. . *11 Prep Ear Fil'E Currlc la Ia46 t-0 att fl tot IO$ ,. I I I I I I I I I t I -i- - t- - p *

oQ:

I--I ACtiv,ty not on the critical path. ¢(tI- ACtivity on the critical path.

UPIC U TOMV

SUMUNM-aimm aS1A _PPISK I_l i

Jon J Jos J Jn Jus Jos Jos Ja Jos J J Jo J Ja Jan J t

EEcestG 1i( Spe,C§4'mCi: Liii,.lEst 1 IC lender deo" I -

Ee I SedidI,Prd E~ tI t e u:teeub, et lids * 9 l* * )_>9 * * C 9 fE"l lIC *^**e ltore** I1.el tC Cue ea. periode iwC SI e (mcl Lii, >

11ee tI tender _Eec.r|t 19610 ii' bedi e PeId09 ' N.. ti. Ivate .4 4esI. 9 9 .-

FIVE ti sai Ses. tFluqE Lut £ Sp1ec. *8 * * * * *FleE lo*ddn P-Oct d IFI"E *91|w§FilE C aIetI of Dd I -) -FIVE peeantes r * * * * * *

FIVsEwwclouea S fUUluE * Ilie Sietchle esian, '(emeutlam ite,Picrult Pr'.iciaI Archimtects 'IWeri8ne1sr.uAnge4.rIie * * I. * * * >-> r * * * * * * * * *

E m ddl r.t far C r(-cstr d s I ZCI.v.Imobriles Iatard (onir S tebXllee I -M%struct sen Perted I I

'Weroan1e Feriod 4"*r" bear 'Con.tentfl"ft $booh beei S -^ Itsl=

Fill* UWorkins r.aw1a SiflsE l$edd t for consctri . 9 * I*****F' S'NE Evolvetees of coftor.:t i.n J 9 vI ilF Overd coeestr. ?-em,. I 9 9 9Feral S KCgr"*rO Se-eel. I .Fir::8 an Namsara*eret.'rda1z *e.,ellemgn * 4 * 9 9 4 9 99 4 _ * * *.a:e .ar,anete persi1d

L~......gActhvstY nOt an the critical path.L- , ACttsvty on the critical path. N

-50-

Schedule II

3Z?J3JC OF TURKE

Wow IDUB 72 o PROJECT

STAFF APNUIAIL REPORT

Schedule of Disbursement(US$ MILLIONS)

IBRD Fiscal -- DISBURSEMENTS…------- CountryYear and AverageSemester Semester Z Cumulative S for Turkey *

19891 10.0 8.6 10.0 8.62 - - 10.0 8.6 6.0

19901 6.1 5.3 16.1 13.92 8.0 6.9 24.1 20.1 18.0

19911 10.0 8.6 34.1 29.42 11.0 9.5 45.1 38.9 36.0

19921 12.0 10.4 57.1 49.32 11.2 9.7 68.3 59.0 55.0

19931 11.0 9.5 79.3 68.52 10.0 8.6 89.3 77.1 72.0

19941 8.8 7.6 98.1 84.72 6.0 5.2 104.1 89.9 86.0

19951 4.2 3.6 108.3 93.52 4.2 3.6 112.5 97.1 95.0

19961 2.2 1.9 114.7 99.02 1.1 1.0 115.8 100.0 100.0

* The country profile for Sector Investment Lending.

RE?MJ8LIC OP TURCEY

HOTEL, CATERING AND TOURISM TRATNINC

DIPTEWATIO SCBEDULE

C O M PONENT 1989 1190 1991

STRENOZrTENNG Or MCT TRAINDUG DEPARTHW:

Nanpower survey preparation, execution and analysis

- Evaluation of present training system

- Formulation of training pla

- Setting up of operational organization -

- Permanent evaluation of manpower and training needs _

- Elaboration of pedagogical means

- Language training of NCT Training Department personnel -

- Fellowships for NCT staff except procurement officer

- Creation of centralizel A.V. production unit

- Implementatlon of courses as per training plan and aetb_dol _ _

n0 .

REPUBLIC aF TUMEY

HOTEL. CATERING AND TOURIS' TRAINING

INLMMMATI SCEEDULE _ _ _ _ _ _ _

COXPONENT 989 1990 1991

MAnGn CET

- Rehabilitation survey of all institution - plans

- Tendering -

- Contract implementation -

EQUIPMENT l

- Final equipment lists -

- Equipment lay out

- Equipment tender documents and contracts .

- Delivery and installation -

MAINTENANCE WORKSEOP:

- Selection of building

- Layout plans

- Final equipment list -

- Delivery and installation

- Operation _

e)n

0 _

-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

REPUBLIC OF TURKEY

EOTEL, CATERING AND TOURISM PRDJECT

IMPLEMENTATION.SCHEDULE

C O M P O N E N T 1989 1990 1991

TRAINING OF INSTRUCTORS AND T.C. MANAGER

- Selection of future instructors

- Training course for kitchen instructors at Kemer _

nO it ONF & 8 .I_

_ TO Front-office N

ni nO .2 6iP n

- Follow up and evaluation of instructors performance

- Recruitment of la:iguage teachers -

- Course for languacte teaching

- Program es for language teaching

- Selection and recruitment of managing staff for T.C.

- Language course fcr managers

- Fellowships and study tour for managers

- Seminar for managqri* and assistants -

OQ em

0 s

REPILIC OF Tong

CouRcll for IU4r ptoaOraSstloru Chet

|ONwL OF HGHER DUCATK)N (iOK)

-MR I H r ------- IDENTT£COUNCIL r RSDN .pf5fTT

VICE PRESEN TS

LMNAGVIT O STWr SElECTION AM SECRETARY GENERAL SOARD OF lN|ECTZUOST SL RAINING PLACEMEN'! CENTER TO

ASSISTANT 5tAREUY :CEW::K

=O"EI 1E OFDIRECTOAIE1 lRFINING | | ~~~~~~~~~PERSONNE fAlR~AS

DVMiES _I DIRECTORATE OFAND COOFI9N[O ON£ .Ft4 Gb

DOCUMIENTATION l ULCRELATIONS | | M N ANDI -I_pjLlc M~~~AIMNTNCIE

TORJJE OF DATA

-55-

Chart II

PROPOSED MANAGEMENT STRUCTURE FOR INDUSTRIAL TRAINING

Proposed Policy Boardfor Industrial Training(PBIT), chaired on a full < -

time basis by a desig- 'nated YoK Council Member Feedback on policy issues

_ _ -- __-_-_---- in technician training andI technical teacher training

Industrial Training Unit(and secretariat of PBIT),managed by the coordinator _for Industrial Training

Service and Project=== Implementation Section

For details, see para 3.14

I I ___Technician Training Vocational/Technical Teacher

Section Training CoordinatorFor details, see para 3.12 For details, see para 3.13

THE ORGANIZATIONAL CHART OF THE MINISTRY OF CULTURE AND TOURISM

TECNNI X UIVE UNITSNSPE |TSM M I NI S T E R COUNCIL |

LOGAL . PUBLIC RELNSRADVISERS PRES P UIBLIIC

1±] DE-T E]_rAVWDESEEAR REXCRETARY FOR|

| ADVISERS . t 4 ~~~~~~~~CIVIL DE

DEPUT-1UNERSE:CRET

TECINICAL-EX=ZTIVE UNITS

E STAT EI

FFoDMETCOFIE

OTBE REL;TE DEPARIEN5E

tDM.OFICS ARSONND -

KWM. ON F3

AT. DEPT.

OTErr:R RETATED DEPAR.MENTS ~ ~ ~ ~ ~ ~ .* IF

-57-

Chart IV

Proposed Management Structure of the Tourism Training Componentof the Project

DEPUTY UNDERSECRhErARY FORl TOURISM

MANAGEMENT CoMITTRE I

TRAINING INSTITUTIONS

I ,I__ IFiRD 19975R

B U L G A R I A f- - 30- 55 40a

[~ ~ ~~~~~Ein Kikarll _ r °eoP Sio U. S.S. R.

25 30" 3':'5E ' :CS.04

40* *CIlfke aleh

Zonguldak ur Hopo~~~~~~~~~~~~~~~on (IA

Karadeniz Ereglisi Samsunr. I {/A

AnomBf0[r'H 0 100 200 300

j; '2 C I mit a,- N Od TrabzonLOtETERS

-35°' ~~~~TURKEY -< SYRiANM: 35:8vssafxkoneec

SECOND INDUSTRIAL TRAINING '--CYPRU5S A R A B '-,-_-'~-*,'- PROJ ECT X JiR E P U B L I C IGQSJ t8ASO I~ wituoryO n fldO(SOrflGft 0 CtRfCotfr0

-400 anakka e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~4

* Tourism Centers to be Creatert ______________________________________

* Existing Tourism Training Centers //POLAND)

* Tedmnician Training Centers /. s. S RI

13D Faculties of Technicat Education I ZCI'i( - Pf

7j Facutty of Vocational Educotion J_,4,,-~

A Management System for Industrihl TrainIng I P-, jCRoads

'*/ -> -~ kA R0UArds _

*- - - Railroads I-~ W <1 5 \6 9 N a t i o n al C a p i t al /i ' p S a 4

| -.- Ilil~~~~e m E s k il ml h o /i".e ..r 1.sF~J UX.- ItrntonlBonzrega A I~ ri,

/ s > <tr 9 ~~~~~~~~~Ankoro ., -

er cRm; Kti vT UaR KEY \ IS LA Manisd yon Bingbi 35 || CRETE 2 CYPRREPUBLIC

/f ~ ~ ~ ~ ~ -- ' SYRIAN~~~~~~~~~~1.OF

zmi ~ ~ ~ 0.1~ ~.RDIIni RQ IA

spprto onyo I rt~- I

iyom ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~ARH18