D_ocunet of

The World Bank

FOR OFCLAL US ONLY

Rqput N.i P-5927-MS

MODUM ND

OF THE

PRESID OF THE

INTERATIONAL BANK FOR RECIJCTION AND DEVELOPMEiT

TO THE

EXECUTIV DIRECTORS

ON A

PROPOSED LOAN

OF US$20.0 MILION

TO

THE REPUBLIC OF MAURITIUS

FOR AN

EDUCATION SECTOR DEVELOPT PROJECT

NAMCI 1, 1993MICROFICHE COPY

Report No. :P- 5927-MAS Type: (PR)

Title: EDUCATION SECTOR DEVELOPMENTAuthor: NOOR, ABDUNExt. :34167 Room:,J10105 Dept.: F2PfH

This document has a resticted distibudon and may be used by reipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World BDak authoriztion.

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CURRENCY L

Currency Unit = Mauritan Rupee (Mau. Rs.)US$1 = 16 Mau. Rs.

WVEIGHTS- A MrEASURES

Metric SystemI m. = 1.09 yd.

1 sq. m. = 10.76 sq. ft.

Juiy 1 - June 30 October 1 - June 30

CIP Core Investment ProgramBC European CommunityEPZ Export Processing ZoneESMP Education Sector Master PlanMEPCU Master Plan Coordination UnitMOES Ministry of Education and Science

FOR OFFICIAL USE ONLY

EDUCATION SECTOR DEVELOPMENT PROJECT

LOAN AND PROJECl SUMMARY

Borrower: Republic of Mauritius

Beneficlary! Ministry of Education and Science

Loan Amount: US$20.0 million

Terms: Standard, variable interest rate

Onlending Terms: Not applicable

Tiuancing Plan: IBRD 20.0(US$ million) Government 58.7

Total 78.7

Economic Rateof Return: Not applicable.

Staff AppraisalReport: Report No. 11348-MAS

Map: To be added.

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.

MEMORANDUM AND RECOMMEMATION OF TIM PRESIDENrOF THE IBRD TO THE EXECUTIVE DIRECTORS

ON A PROPOSED LOAN TO MAURITIUSF'OR AN EDUCATION SECTOR DEVELOPMENT PROJECT

1. I submit for your approval the following memorandum and recommendation on a proposedloan to Mauritius for the equivalent to US$20.0 million to help finance an education sectordevelopment project. The loan would be at the Bank's standard variable interest rate, with a maturityof 17 years, including 5 years of grace.

2. Countr Economic Backgmnd, Mauritius owes its economic success of the 1980s tothe tenacity with which it pursued structural re'orms to eliminate severe domestic and externalimbalan=es and create a favorable macroecoLlomic environment. Strong fiscal incentives forinvestments in non-traditional exports enabled the private sector to take advantage of the economicupturn in the industrial countries in the mid-1980s and reap full benefits from the preferential tradearrangements Mauritius, as an ACP country, has with the European Community (EC) for its sugarand garment exports Iin the fartework of the Lome Convention. The impetus for growth cameprimarily from the rapid expansion of employment in the Export Processing Zone (EPZ) industries(garments and textiles) using labor-intensive technologies. Growth in employment grew rapidly,outpacing the number of new entrants, including women, to the labor market. lhus, within the 1980decade, the economy was able to completely absorb the surplus labor and was transformed into a fill-employment economy, with frictional unemployment of only about 2 percent. The rate of growthof the EPZ industries' output averaged 10 percent per annum in the 1980s, and GDP grew at anaverage rate of 7 percent per annum.

3. However, the economic environment at home and abroad is changing rapidly. 'Te EC isunder considerable pressure to reduce agricultural subsidies and market protection. This in tur wouldreduce the favorable prices Mauritius obtains for its sugar exports to the EC and the trade preferencesenjoyed under the Lome Convention. Mauritius' textile and garment exports to the EC could losea considerable advantage over Far Eastern competitors such as Hong Kong, Korea, and Taiwan.Mauritius' heavy dependence on the preferential trade arrangements with the EC underscores thefragility of its success. IS exports are overly concentrated in garment products and in the ECmarkets, and a high proportion of its exports is in the low end of the market in which Mauritius'competitiveness has been eroding due to wage hikes that have outpaced increases in productivity.The foremost challenge for Mauritius is to achieve productivity increases through technology andskills enhancement, for which sound basic education is a prerequisite. Upgraded technology andskills will enable Mauritius to shift to high-valued, quality exports, and break into the upper-end ofthe international market. A determining factor in this regard is the quality of the labor force, itseducation level, and the level of technology.

4. Sector ftacgrod. Over the past decade, Mauritius has made impressive progress indeveloping its education system, both quantitatively and qualitatively, but much remains to be doneto reach the level of performance achieved by East Asian competitors. Today, for example, universalprimary education has for all practical purposes been achieved, with 97% of the 6-11 year age groupenrolled; education is free at all levels, including university; teaching and learning materials areavailable to an teachers and students; and curricula are reguiarly updated o take the needs of achanging economy into account. Parents actively contribute to the educational process, throughparent-teacher associations (PTAs) and community involveme-A, and by financing private tuition.However, Maritius' education system is far from what is required to propel the country into a new

2

phase of economic development. The workforce has a mean educational attainment of only 6.9 yearsof schooling, compared with about 9.0 years in Taiwan, Korea, and Hong Kong. The six-yearprimary education cycle, enrolling about 97 percent of the 6-12 year age group, is the terminal pointfor about one-third of children. Secondary enrollment, at 48 percent of the age group, again lowcompared with Korea (83 percent) or Singapore (80 percent), has remained stagnant because of highrepeater and dropout rates and inadequate capacity. Higher education enrolls only 1.5 percent of theage group in a small undergraduate program, compared with 12 percent and 6 percent in Korea andSingapore respectively; poor instructional quality and inadequate facilities encourage flight tooffshore education.

5. About 80 percent of secondary school students attend private schools. However, the qLalityof education provided by these private secondary schools is considerably lower than that provided bystate schools, due to lower levels of funding, poor physical conditions, lower-qualified teachers, andlack of specialized facilities such as laboratories and libraries. Many of these schools operate inrented quarters, where owners are unwillling or unable to upgrade the physical conditions or expandenrollment capacity.

6. A number of factors adversely affect the quality of education. Three-fourths of primary andsecondary teachers have inadequate teaching skills. The curriculum is not enough geared to theacquisition of skills in science and mathematics. A rigid examination system encouragesmemorization of facts rather than the ability to analyze and solve problems. At the post-secondarylevel, the poor quality of science, engineering and technology programs encourages students to optfor liberal education programs. The current situation is partally the result of relatively low financinglevels for education: public expenditure on education declined from S.1 percent to 2.8 percent ofGNP between 1980 and 1990. But this situation has been corrected since. Allocation between 1990-92was about 3.3 percent. Between 1993-98, it is expected to be in the range of 3.5 to 3.7 percent ofthe GNP. Private sector expenditures on education have also been deciining because of inadequateftnancial incentives for owners of private schools, while the highly centralized system of educationmanagement has led to poor communication and weakened accountability of school principals fordelivering quality education. In an effort to address these problems, in 1991, the Government hascompleted an Education Sector Master Plan (ESMP) and an accompanying Education SectorInvestment Program (ESIP), with assistance and advice from the World Bank and UN agencies.

7. Pjflect Objectives and Descriptlon. The project will assist the Government of Mauritiusin implementing its education development program for the period 1993-1998, as described in itsEducation Sector Master Plan (ESMP). The main objective of the ESMP is to improve access to andthe quality of secondary education, with the specific target of increasing secondary enrollments by15,000 students (17.5%) over the five-year period 1993-98. Secondary objectives include improvingthe quality and efficiency of education at all levels, expanding tertiary education, and strengtheningeducation sector planning and management. To achieve these objectives, the project supports ESMPpolicy measures to: (a) extend basic education from six to nine years by the year 2000; (b) increaseinstructional time for science and mathematics in primary and secondary schools; (c) upgrade under-qualified primary and secondary teachers; (d) reform student assessment, examination and testingprocedures; (e) decentralize educational administration and supervision to the regional levels; (t)rationalize the development of tertiary education; and (g) develop the capacity of the Ministry ofEducation and Science (MOES) for policy formulation, planning and programming.

8. To support the above ESMP policy objectives, the project will finance a portion of theGovernment's five-year (1993-98) core investment program (CIP) for the education sector. Financingis in the form of a Sector Investment Loan, based on prior agreement on four key conditions: (a) a

3

comprehensive policy framework for the entire education sector; (b) an appropriate education sectorinvestment program (ESIP); (c) an expenditure program which supports both the policy frameworkand the sector investment program; and (d) an intermediary institution which will manage andcoordinate program implementation.

9. The project will support investments designed to:

Increase Access to and Promote Equity of Education through: (a) the rehabilitation of 25dilapidated primary schools and construction of 13 new primary schools in underservedregions; (b) the renovation of 21 state secondary schools and constructing 5 new secondaryschools, providing for 8,000 additionat student places; (c) the provision of financial supportto upgrade up to 55 private secondary schools and expand enrollment capacity by 7,000student places; and (d) the expansion of enrollment capacity at the University of Mauritiusby about 2,000 student places.

Improve the Ouality of Education by: (a) funding the design and implementation of a nationalsystem to assess student achievement; (b) supporting pre-service and in-service teachertraining; and (c) providing library materials and teaching aids.

Strengthen Education Sector Management by: (a) assisting the tertiary education commissionto prepare institutional development plans for higher education institutions; (u) establishingan education management information system (EMIS); (c) support research to explorealternative approaches for more effective, efficient and flexible dalivery of education; (d)develop a viable institutional framework for a national schools inspectorate; and (e) establisha network of regional education centers to provide educational support to schools at theregional level.

10. TEect Fhnancn, 'Me project will finance a five-year (1993-98) Core InvestmentProgram, comprising 14 projects with a total value of about US$78.7 million, all selected from theGovernment's approved education sector investment program. The CIP projects are critical to thesuccessful implementation of the Education Sector Master Plan and the achievement of its objectives.Proposed Bank financing, in the form of a sector investment loan of US$20 million, wiUl provideabout 25 percent of the estimated project costs, and finance about 55 percent of the foreign exchangecosts of selected civil works, instructional equipment and furniture, and training and technicalassistance. The Government of Mauritius will finance the remaining project costs, in particular civilworks, in a total amount of US$ 52.7 million. Other donors, including UNDP, UNESCO andUSAID, are expected to contribute about US$6.0 million for technical assistance and fellowships.

11. Prjeet Implementation. Day-to-day management and implementation of each projectcomponent will be carried out by designated units in the Ministry of Education and Science, thePrivate Sector Schools Authority and the Tertary Education Commission. The Master PlanCoordinating Unit (MPCU), within the MOES, will be responsible for coordination of projectacdvities, administrative and financial matters, monitoring project inputs and outcomes, inter-agencycoordination, and relations with the Bank. The project's policy measures are integrated in the variouscomponents and will be implemented by the respective responsible units, with the MPCU providinga monitoring and advisory function. The project is expected to be completed over a five-year period;the loan would be disbursed over 6 years.

12. Poeet Susinablitv. Takdng account of the projected decrease in primary enrollmensand the expansion of secondary and higher education, and assuming the application of efficiency

4

measures such as improved student: teacher ratios, the annual increase in sector expenditures isestimated at 5 percent per year in real terms. Assuming that the economy will grow at 5 percentannually, and that the Goverment's recurrent budget will grow at the same rate, the share of theeducation in the budget during the comint, decade should remain at the same level (about 11 to 12percent)as during the past five years. In relation to the GNP, the total education expenditures areprojected to be in the range of 3.5 to 3.7 percent. The project is sustainable.

13. Lessons from Previcos Bank Involvement. The first two education projects (Cr. 501-MAS/Loan 1033-MAS, US$7 million, 1974; and Lr.1543-MAS, US$15 million, 1978), completedin 1980 and 1986 respectively, provided support for primary, secondary, and post secondaryeducation, and rural and industrial trades training. The completion reports on both projects observethat, in order to accommodate evolving Government's education policies and satisfy parental choices,extensive changes ware made during implementation. For example, three year-junior secondaryschools were upgraded to five-year secondary schools, anu financing earmarked for rural educationcenters was diverted to upgrade primary schools. Ihe key lesson is that a clear vision of a policyframework in which institutional changes would be developed and investments defined, should be aprerequisite for preject processing. The second lesson is that project design should be sufficiendyflexible to accommodate the needs of a developing and changing economic environment. The thirdlesson is that the project should refrain from supporting ewperimental and innovative activities forwhich there it little commitment from parents. The proposed project takes these lessons into accountby obtaining at the outset a consensus on policies and programs, and by providing a flexible financingmechanism.

14. Rationale for 'lank Involvement. The project is consistent with the Bank's countryassistance strategy. This strategy emphasizes economic diversity, productivity increase, andcontinuing human resource development. The strategy gives high priority to the development of askilled labor force capable of meeting the needs of a growing and diversifying ma rig andservice-based economy. To support this strategy, the Bank has maintained an active dialogue onhuman resource development with the Government and has been closely associated with thepreparation of the ES1U by providing professional support and advice. The focus of the projectsupports these objectives by expanding basic education to nine years, improving the quality ofeducation at all levels, and strengthening sector management and institutonal development. Theprincipal role will be to assist the Government in achieving constructive sector-wide policy dialogue,sharpening the focus of investment programs, and fostering institutional development - the threeelements that constitute the principal thrust of this project.

15. Agmmena, There are no pending issues. During meotiWiM, the Government provideda draft program of assistance to private secondary schools; a draft operational plan of teriaryeducation; a final Education Sector Policy Letter; the composition and costs of a three-yearexpenditure program; summary terms of reference for studies and major technical assistanceprograms; dates and procedures for anmnal joint Government-Bank implementation reviews and themidterm review; and a draft reorganization plan for the Ministry of Education and Science. AQoniiQn.Qf disbursement for the tertiary-level education components will be the submission of aTertiary Education Development Plan, acceptable to the Bank.

16. EnvIronmental Aspects. This is a Category-C project, without any direct impact on theenvironment. Schools and classrooms would be sited and constructed following design standards andprocedures that ensure environmental soundness, in conformity with strict environmental guidelinesset by the Government.

5

17. Progm Objectives Caategorls The project responds to the human resource developmentobjectives of the Government. Increasing access to basic education, primarily for children from ruraland underprivileged families, and promoting the teaching of sciences, mathematics and technologyimprove opportunities for employment and income generation and higher living standards of thepopulation in general.

18. lBenefits Project benefits will be widespread. By establishing nine years of basiceducation, the project will provide a larger and better-educated pool of secondary school graduates,improve the quality and sophistication of the future labor force, and facilitate the transition of theMauritian economy to a higher level of productivlty. Policy measures supported by the project willstrengthen Government's capacity for policy formulation, planning, and program management,enhance the development of rrivate sector education, and provide better opportunities for training inscience and technology.

19. RL4& There are two main risks. EiM, owners and managers of private secondary schoolsmay not borrow Government funds to improve and expand their facilities. This would not onlyjeopardize Government's policy objectives of improved quality and enlarged capacity, it would alsoforce the Government to consider alternative ways of expanding enrollment capacity at the secondarylevel. This risk is being addressed by providing owners of secondary schools with instructionalequipment and supplies free of charge under the project, provided that their facilities are expandedand improved in a satisfactory way, based on mutually accepted criteria. $nd, while the fourtertiary education institutions may have reached consensus on a comprehensive development plan forhigher education, there is still a risk of continued duplication of certain programs and Inefficienciesin resource use. In recognition of this risk, it has been agreed that a major outcome of therationalization of tertary education should be the integration of the Mauritius Institute of Educationinto an enlarged university, either by transforming MIE into a full-fledgeJ Faculty of Education orinto a Department of Education within the University of Mauritius. The two minor institutions(Mauritius College of the Air and the Mahatma Gandhi Institute) which have very limitedundergraduate programs, could remain as independent entities.

20. &CmnMdatio I am satisfied that the proposed loan will comply with the Articles ofAgreement, and recommend that the Executive Directors approve it.

Lewis T. PrestonPresident

Attachments

Washington, D. C.March 1, 1993

Schedule APROJECT COff SUMMARY Page 1 of 2

fin US$ millioPM

Project Component and Foreign Local Total FE Total BaseSub-Components (%) Cost (%)

A. INCREASING ACCESS &

1. Primary

Rehabilitation & Renovation 1.6 0.6 2.2 72.7 3.3

New Construction 2.8 1.1 3.9 71.8 5.8

2. State Secondary

Rehabilitation & Renovation 3.2 1.2 4.4 72.7 6.6

New Construction 13.1 6.3 19.4 67.5 29.1

3. Private Secondary

Rehabilitation & Renovation 3.4 1.3 4.7 72.3 7.0

Equipment 5.0 0.0 5.0 100.0 7.5

4. Tertiary

UoM/MoE 12.6 2.9 15.5 81.3 23.2

SUB-TOTAL 41.7 13.4 55.1 75.7 82.6

B. IMPROVJNG QUALrrY

1. Reform Assessment/Tests 1.6 0.3 1.9 84.2 2.8

2. Teacher Training 1.6 0.9 2.5 64.0 3.7

3. Teaching Aids/Libraries 1.6 1.6 3.1 51.6 4.6

SUB-TOTAL 4.8 2.7 7.5 64.0 11.2

C. STRENGTHENING SECTORMANAGEMENT

1. Management 1.3 0.0 1.3 100.0 1.9

2. National Inspectorate 0.9 0.0 0.9 100.0 1.3

3. Regional Educational Centers 1.4 0.5 1.9 73.6 2.8

4. TEC 0.1 0.0 0.1 100.0 0.2

SUB-TOTAL 3.6 0.5 4.1 87.8 6.2

D. TOTAL BASE LINE COSTS 50.1 16.6 66.7 75.1 100.0

a. Physical Contingencies 3.0 1.0 4.0 75.0 6.0

b. Price Contingencies 6.0 2.0 8.0 75.0 12.0

E. TAL PROJECT COSTS 59.1 19.6 78.7 75.1 118.0

Schedule A

IMMATED IDBRD D DURSEMENT'S Page 2 of 2DD US S millinn)

IBRD FY 94 95 96 97 98 99

Annual 3.1 4.0 4.0 4.0 4.0 0.9

Cumulative 3.1 7.1 11.1 15.1 19.1 20.0

Schedule BPage 1 of 3

SUMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS(US$ millon equivalent)

PROJECT ELEMENT PROCUREMENT METHOD NBF TOTALCOST

ICB LCB OTHER_

1. WORKS l

A. Primary:

Rebab. & Reno. - 2.4 2.4__ __ _ __ __ _(-) (-)

New Costuction 4.4 4.4__ __ __ __ __(-) (-)

B. Secondary:

Rehab. & Reno. - 3.1 3.1_________________.____ ___ ______ (-) (-)

New Constction 18.4 . - 18.4_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (4.7) _ _ _ _ _ _ _ _ _ _ _ _ _ __4_ (4.7)

C. Pria Secoondary:

Rehab. & Reno. _ 5.5 5.5_____________________________ _________(-) ,(-)

D. Tetiary 11.4 11.4UoM/MIB . () (-)

E. Regiona Educational Center . 1.9 1.9__ __ __ __ __ __ __ __ __ _ __ __ __ __ ____ __ __ __ _(-) (-)

F. Renovation to Libraies . . 1.1 1.1.~ ~ ~ ~ ~ ~ ~ ~ ~ ~~______ ______ (-) (-)

0. Minor Work . 1.8 1.8* (-)

Sub-Tota 18.4 . . 31.6 50.0(4.7) () (4.7)

2. GOODS _ _

A. Equipment& Pumnitm 11.8 0.7 0.2 - 12.7(9.6) (0.5) (0.1) (10.2)

B. Teaching Aids & Computers 1.7 . 0.2 2.3 4.2l _____________________________________ (1.2) (0.1) (-) (1.3)

C. Books & Leaning Mtea 5.0 . 5.0l ______________________________________ .___________ (1.1) _____________ (1.1)

Schedule BPage 2 of 3

PROJECT ELEMENT PROCUREMENT METHOD NBF TOTALCOST

ICa LCB OTHER

Sub-Total 13.S 0.7 5.4 2.3 21.9(10.8) (0.5) (1.3) (-) (12.6)

3. CONSULTANCIES

A. Studies 0.6 - 0.6(0.6) (0.6)

B. Technical Assistance - 3.2 - 3.2___ ___ __(1.S) (1.5)

C. Training 0.6 - 0.6(0.6) (0.6)

D. Design & Supervision 2.4 - 2.4._____.____. _ (-) _____ (-)

Sub-Total . .8 . 6.8_____________________________ _________ (2.7) (2.7)

TOTAL 31.9 0.7 12.2 33.9 78.7l ______________________________ (15.S) (0.3) (4.0) (-) (20.0)

Note: (a) NBF = Not Bank Financed.(b) Figures in parenthesis are the respective amounts to be financed by the Bank.

A:.ANNsX9

Schedule BPage 3 of 3

Disbursement Categories and Percentages(in US$ million)

CATEGORY AMOUNT OF LOAN PERCENT OF EXPENDITURESALLOCATED TO BE FINANCED

1. Civil Works 4.7 35% of foreign expenditures

2. Equipment & Furniture l1.5 70% of foreign expenditures

3. Books &Printed Items 1.1 70% of foreign expenditures

4. Technical Assistance 1.5 100% of foreign expenditures40% of local expenditures

5. Traning & Studies 1.2 100% of foreign expenditures40% of local expenditures

TOTAL LOAN AMOUNT 20.0

Schitdule C

Timetable of Key Project r sing Event

(a) Time taken to prepare Two years(b) Prepared by Government with IBRD assistance*(c) First IBRD mission December 1990(d) Appraisal mission departure June 1992(e) Negotiations February 1993(f) Planned date of effectiveness June 1993(g) List of relevant PCRs and PPARs PPAR 4247 of 12/30/82

PPAR 7874 of 06/30/89

* This report is based on th; findings of an appraisal mission, jointly fielded by AF2PH andAF3PH, which visited Mauritius in June 1992. The mission comprised Messrs Abdun Noor,Mission Leader and Task Manager (AF2PH); Djamalddine Rouag, Educator; Frederick Walker,Architect/Implementation Specialist; and Manuel Zymelman, Economist. The Mission wasjoined part of the time by Messrs/Mmes. Jacob van Lutsenberg Maas, Division Chief (AF2PH);Alain Colliou, Division Chief (AF3PH); and Young Kimaro, Country Officer. Comments werereceived from Mr. Adrlaan Verspoor, Lead Advisor (PHREE); from Ms. Francoise Delannoy(EA1PH) and Mr. Donald Holsinger (PHREE), Peer Reviewers. A pre-negotiation mission, tookplace in December 1992, composed of Messrs Abdun Noor (Mission Leader), Frederick Walker,Jamil Salmi, Abdelwahed Zhiri (present Task Manager AF3PH), all Bank Staff, and were assistedby Messrs William Cooper, Jose Dominguez and Edward Greene, as Consultants. Ms. B. P.Pang (AF2PH), Mrs. S. Marquina-Leon and Ms. Hilda Emeruwa (AF3PH) assisted in processingthe report which was finalized by Messrs Abdun Noor and WiUliam Cooper. Mr. FranciscoAguirre-Sacasa and Mr. Alain Colliou are the Department Director and the Division Chiefrespectively of this operation.

PAGE I

Run Tim: 01/22/93 at 15.53.10

Schedule DWRMITIUS Page 1 of 3Status Of Bank Group Operations In PARItTIUSPFDBR25 - Summary Statmten Of Loans and IDA Credits(LOA data as of 12/30/92 - MIS data as of 01/22 93). ..... ... .... ........ ............

By CountryCountry: MAN ITIUS

Amout in USS miltion(less cancellations)

Loan or Fiscal Undis- ClosingCredit No. Year Borrouer Purpose Bank IDA bursed Date

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

Credits

5 Credits(s) closed 20.42

All closed for MMJRIT!US

TOTAL mumber Credits = 0

Loam

19 Loans(s) closed 180.77

L27280-NTs 1986 PMJRITIUS SUGAR t 30.00 2.91 06/30/93(R)L29270-mTs 1988 IWJRITIUS IND.FINANCE DEV.1 10.00 .92 12/31/95L31320-MTS 1990 MAURITIUS HNGIWAYS it 30.00 20.74 06/30/94L32770-NTS 1991 KAURITIUS ENVIRON KONIT. & DEV 12.37 10.49 06/30/96L33330-NTS 1991 NAURITIUS AG. SERVICES 10.00 10.00 06/30/99L34010-MTS 1992 NALRITIUS IND AND VOCAT TRAIN! 5.40 5.40 12/31/98L345J0-NTS 1992 KA1TITIUS SUGAR ENERGY DEVELOP 15.00 15.00 12/31/96

TOTAL nunber Loam = 7 112.77 65.46

TOTAL** 293.54 20.42of shich repaid 108.67 2.25

TOTAL held by Bank & IDA 184.88 18.17Anurit sold 4.95

of which repaid 4.95

TOTAL undisbursed 65.46==

Notes:...... .......... ___ _

N Not yet effectiveN- Not yet signedT*- total APProved, Repaments, and Outstanding balance represent both active and inactive Loans and Credits.

(R) indicates fonrtlly revised Closing Date.(S) indicates SAL/SECAL Loans and Credits.

The Met Approved and Bank Repayuents are historical value, all others are market value.

The Signing, Effective, and Closing dates are based upon the Loan Depdrtaunt offical data and re not takenfran the Task Budget file.

Schedule DPage 3 of 3

PROJECTS IMPLEMENTATION AND DISBURSEMENT STATUS

Mauritius implementation performance of investment operations has traditionally matched thehigh quality of its economic management. However, there has been some deterioration inperformance over the last two years. The focus of new operations became directed towardsmore difficult institutional goals, often requiring for their achievement the cooperation ofvarious interest groups. For example, the preparation of the Industrial and VocationalTraining project was slow as it required close cooperation between the Government and theprivate sector. In addition, the recently approved Sugar Energy Development project requiresthe innovative collaboration of the public and the private sectors in the cogeneration of powerbased on the use of bagasse. Here also, the risks of slow initial implementation are high.Although the current level of performance is still high in the African context, the incipientproblem of a slowdown in implementation is one that will be watched in supervision work inorder that early solutions can be worked out to these delays arising from insufficientcollaboration among responsible agencies.

IBRD 24629

MAURITIUS

ARTERIAL RWADS

MOIORWAY

OTHER MAIN ROADS $ * ti ieeu\

RESERVOIRS AND RIVRNtRu _ < _ > X

6 NATIONAL CAPrrL < \

° OnIFER1TONSAND VILLAGES Vh n <

INDIAN

OCEAN

ff f~~~~-n(ftTrlrmlrin W t t; C -N VEau81e \au.

Is I I I 5S

141 .86 I 2 3 4 56 l l ; aIhw c eofreodens and is for 1w irl of The 9Wdd S .d-MomI a

Bos Group.~ Thednnnlonsuededtimbanosrleeslwro on IbIs""

ooeh,sytsnyorrxvonyendsrssG or of n

FEUuBrU 1993