Docwnent of

The World Bank

FOR OFFICIAL USE ONLY

kA/. 39g5o- F1-

Report No. 8592-PNG

STAFF APPRAISAL REPORT

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

DECEMBER 5, 1990

Country Department VAsia Regional Office

This document bas a restricted distribulion and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank autborization.

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CURRENCY EQUIVALENTS

Currency Unit - Papua New Guinea Kina (K)

US$1.00 = KO.967(November 1990)

WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

January 1 - December 31

ACADEMIC YEAR

January - December

ABBREVIATIONS

Adcol - Administrative CollegeCHE - Commission for Higher EducationCIDA - Canadian International Development AgencyDFP - Department of Finance and Plai.iingDLE - Department of Labor and EmployiientDoW - Department of WorksDPM - Department of Personnel ManagementETD - Employment and Training DivisionFAS - First Assistant SecretaryICB - International Competitive BiddingIT - Information TechnologyLCB - Local Competitive BiddingMDTRD - Manpower Development, Training and Resource

DivisionNTP - National Training PolicyPETT - Pre-employment Technical TrainingPCC - Project Coordinating CommitteePCR - Project Completion ReportPIP - Public Investment ProgramPPAR - Project Performance Audit ReportPNG - Papua New GuineaRMS - Resource Management SystemRTC - Regional Training CenterSDU - Staff Development UnitSOE - Statements of ExpenditureTTU - Transitional Training UnitTLP - Training and Localization PlanUNDP - United Nations Development ProgramUPNG - University of Papua New GuineaWPS - Work Permit Scheme

FOR OFICAL USE ONLY

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

Table of Contents

Page No.

LOAN AND PROJECT SIMMARY .... . . . . . . . . . . . . . iii

I. INSTITUTIONAL REFORM IN PAPUA NEW GUINEA . . . . . . . . . .1

A. Introduction .1... . . . . . . . . . . . . . . . . . .B. Reform Program .... . . . . . . . . . . . . . . . . . 2

I. ISSUES AND POLICIES IN THE TRAINING SECTOR . . . . . . . . . 6

A. Introduction .... . . . . . .. 6B. Issues .... . . . . . . . . . . . . . . . . . . . . . 6C. Policies .... . . . . . . . . . . . . . . . . . . . . 9D. Bank's Experience in Education, Training and

Institutional Develcpment . . . . . . . . . . . . . . . 12

III. THE PROJECT .15

A. Origin of the Project . . . . . . . . . . . . . . . . . . 15B. Project Rationale, Objectives and Scope . . . . . . . . . 15C. Project Description . . . . . . . . . . . . . . . . . . 16

IV. PROJECT COSTS, FINANCING AND IMPLEMENTATION . . . . . . . . 25

A. Costs . . . . . . . . . . . . . . . . . . . . . . . . . . 25B. Financing .... . . . . . . ....... . . . . . . . 27C. Project Management and Implementation . . . . . . . . . . 28D. Environmental Impact .33E. Impact or Women .33

V. BENEFITS AND RISKS .. 33

A. Benefits .33B. Risks .. 33

This report is based on the findings of a preappraisal mission which visitedPapua New Guinea (PNG) during October 1989 and an appraisal mission consistingof Messrs. W.E. Rees (task manager), M. Bray and M. Turner (consultants), andMs. Mieko Masuda (project cost analyst) which visited PNG during February-March 1990. Peer reviewers were Mr. T. Schmidt (institutional issues) andMs. R. Hees (educational issues).

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

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Table of Contents (Cont'd)

Page No.

VI. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . 34

TABLES IN TEXT

4.1 Summary of Project Costs by Component . . . . . . . . . . 254.2 Summary of Project Costs by Category of Expenditure . . . 264.3 Financing Plan . . . . . . . . . . . . . . . . . . . . . 274.4 Project Expenditure by Procurement Category . . . . . . . 31

ANNEXES

1. Enrollments and Staffing in Training Institutions2. Planning and Coordination of Training3. Organization Chart - Department of Personnel Management4. Summary of Technical Assistance and Fellowships5. Organization Chart - Department of Labor and Employment6. Organization Chart - Administrative College7. Summary Account by Project Component8. Summary Account by Year9. Implementation Schedule10. Organization Chart - Project Management and Coordination11 Estimated Schedule of Disbursements12. Selected Documents Available in the Project File

MAP: IBRD No. 22739

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PAPUA NEW GUINEA

PUBL-C SECTOR TRAINING PROJECT

Loan and Proiect Summary

Borrower: Independent State of Papua New Guinea

Amount: US$20.8 million equivalent

Terms: Repayable in 20 years including 5 years of grace at theBank's standard variable interest rate

Project The basic objectives of the project are to strengthen in-Description: service training in the public and private sectors and

increase the supply of specialized high-level persannel tostaff the Government's policy and planning agencies and meetpersonnel shortages in te-hnical fields. Specific_lly theproject would: (a) support the implementation of theNational Training Policy (NTP) through strengthening thecapacity of the Department of Personnel Management (DPM) topromote, coordinate, monitor and evaluate training in thepublic sector and strengthen the capacity of the Departmentof Labor and Employment (DLE) to play a similar role in theprivate sector; (b) upgrade and reorient the AdministrativeCollege (Adcol) towards its new role as defined under theNTP namely to focus on short, intensive skill developmentcourses and executive development programs and place greateremphasis on research, curriculum development and thetraining of trainers; and (c) finance an overseas fellowshipprogram for training in policy and planning fields and inspecific technical fields which is not presently availablein PNG. The project would finance civil works, equipment,teaching and consumable materials, fellowships and experts.

Benefits and The project would assist in improving the quality of in-Ricks: service training in the public sector and improve its

relevance to clients' needs. The project would alsoincrease the supply of key high-level policy, planning andtechnical personnel thus strengthening public sectoragencies. It would lead to more effective training in theprivate sector. The major risk concerns the ability of therelatively inexperienced project institutions to implementthe project efficiently. The risk will be reduced throughthe establishment of a high-level Project CoordinatingCommittee and the appointment of an experienced projectmanager.

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Proiect Costs: Local Foreian Total----- US$ million---

Implementation of the National TrainingPolicy 1.0 4.0 5.0

Strengthening of the AdministrativeCollege 2.9 5.2 8.1

Overseas Fellowship Program 0.3 5.8 6.1

Baseline Cost 4.2 15.0 19.2

Contingencies

Physical 0.3 1.0 1.3Price Increase 0.7 1.9 2.6

Subtotal 1.0 2.9 3.9

Total Project Cost /a 5.2 17.9 23.1

/a Project expenditures are exempt from duties and taxes.

Financing Plan Local Foreign Total------ USS million------

Government 2.3 - 2.3IBRD 2.9 17.9 20.8

Total 5.2 17.9 23.1

Estimated Disbursements:

Bank FY 1992 1993 1994 1995 1996 1997 1998------------- US$ million ------------__

Annual 1.6 2.8 4.0 4.0 3.8 3.0 1.6Cumulative 1.6 4.4 8.4 12.4 16.2 19.2 20.8

Economic Rate ofReturn: Not applicable

MAP: IBRD No. 22739

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PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

I. INSTITUTIONAL REFORM IN PAPUA NEW GUINEA

A. Introduction

1.1 Papua New Guinea's overall economic performance improved during thelatter half of the 1980s. The decline in public investment was halted andsome recovery was made in the growth of per capiLa income. Soundmacroeconomic management was achieved and this was reflected in solidimprovements in the economy's fiscal, balance *. payments, external debt andinflation indicators. However, growth was based mainly on increased activityin the mining sector and less progress was made in the structural adjustmentand institutional development needed to promote growth in the non-miningsector. The absence of broad-based growth has increased regional in"omedisparities and this trend has been exacerbated by the fall in agriculturalcommodity prices. The situation has deteriorated further following theclosure of the Bougainville copper and gold mine in May 1989. The minecontributed about 35 percent of export earnings. 15 percent of governmentrevenues and 8 percent of GDP in recent years and its closure has clearlyhad a major economic and financial impact. The Government has respondedvigorously with stabilization measures which include reductions in governmentspending and public external commercial borrowing, slower growth in domesticcredit and higher interest rates, and wage moderation. However, theimportance of the stabilization measures should not detract from the longer-term need for higher levels of investment, growth and income generation in thenon-mining sector.

1.2 In pursuit of accelerated and more broad-based development, twobasic constraints must be addressed -- the country's relatively weak institu-tional capacity and the low level of human resource development. In general,PNG lacks strong institutional capabilities in the form of organizationalstructures, administrative policies and procedures and management systems toplan, design, implement and sustain effective development programs. Funda-mental to this problem is the weak human resource base. In the post-independence period, the education and training system 1/ has in general

1/ The school system in PNG comprises a six-year primary cycle (grades 1-6),followed by a lower secondary cycle of four years (grades 7-10) and twoyears of upper secondary education (grades 11-12). In 1988 enrollmentsat these levels were 395,000; 51,300; and 1,890 respectively. Provincialgovernments are responsible for the provision of primary and lowersecondary education and the national government is responsible forcurriculum development, teacher training and all aspects of uppersecondary education. Higher education and training (post-grade 10) iscarried out in 55 institutions with a total full-time equivalent enroll-ment of 9,800 (para. 2.1).

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been quite well-financed but even so has fallen short of delivering theskilled and educated personnel necessary to manage a rapidly changing economy.The result is seen in the modern-sector workforce in which little more thanhalf the workers have completed primary or some lower secondary education andminiscule numbers have completed upper seconda-y or higher education.Consequently, there is still heavy (although declining) reliance onexpatriates to fill technical, professional and managerial positions.

B. Reform Program

1.3 Institutional weaknesses in PNG's administrative system have beenreviewed regularly since independence and included a major contribution by theBank.2/ However it was not until late 1983 that a concerted reform effortbegan to address the institutional deficiencies which by then were well-documented. The more important deficiencies were: insufficient clarity andlack of prioritization in defining national development strategies;insufficient linkage between central agencies which formulated projects andthe provincial authorities responsible for implementing them; a budgetaryprocess which was effective in controlling expenditure but which paidinadequate attention to ensuring that products and services were deliveredefficiently; a highly centralized persotsnel system which lacked theflexibility and incentives to allow sectoral and provincial departments tomanage scarce manpower resources efficiently; and a planning and budgetarysystem which gave little guidance to predicting future human resource needsand developing the education and training programs to meet them.

1.4 The reform program, currently under implementation, is a comprehen-sive effort to address a broad range of issues which would lead ultimately tostrengthening the entire administrative system.3/ A central element of theprogram is the Resource Management System (RMS) which aims to link the objec-tives of development to the programs and projects necessary to achieve them.The RMS calls for the definition of national and provincial objectives througha consultative process involving political and community groups and governmentdepartments. Each objective is allocated to a 'lead agency' which develops aprogram to meet the objective in conjunction with other relevant agencies.Actual investments are defined in a series of projects relevant to eachobjective. The aim of the RMS is to provide clear and meaningful performance

2/ Public Sector Management in Papua New Guinea. An Administrative Overvi-ew, World Bank Report, No. 4396-PNG, June 1983.

3/ For a detailed discussion of the program, see Papua New Guinea, Policiesand Prospects for Sustained and Broad-Based Growth, World Bank Report,No. 7121-PNG, Chap. VI., April 1988.

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indicators for each program/project and thereby permit an assessment to bemade of the degree to which outcomes have been achieved in relation to inputsutilized.4/

1.5 Major projects are combined in the Public Investment Program (PIP)which is the primary means by which the Government implements its developmentstrategy. It contains a detailed and comprehensive set of projects covering arolling five-year period and these are prioritized to reflect overall develop-ment priorities as defined by the RMS. New project cycle procedures have beenintroduced which aim at improving interdepartmental and central-provincialcoordination in project planning while at the same time establishing aconsistent process for project preparation, implementation and monitoring.This process will be reinforced by new procurement procedures, currently beingimplemented, which aim to reduce time lags for tendering and procurement byhalf. A proposed Technical Assistance Management Facility will direct short-term technical assistance and training to improving the preparation andprocessing of PIP projects. To complement these improvements in investmentplanning and consistent with the RMS's emphasis on measuring outputs, theGovernment is in the process of introducing a new budgeting system--programbudgeting--to shift the focus of expenditures from identify ing andcontrolling inputs to specifying the outputs of goods and services to beproduced by specific organizational units. Program budgeting will lead to aclearer statement of institutional objectives and allocate resources moreeffectively to achieve them.

1.6 The impact of improved planning mechanisms and administrasiveprocesses will be greatly reduced unless appropriate attention is given toensuring that competent personnel are available to carry through the improve-ments. Thus the Government has also turned its attention to refoLms inpersonnel and training p-actices in recognition that human resource issues lieat the heart of the admi.aistrative reform program. At the center of personnelreforms is the Departmer.t of Personnel Management (DPM) which has replaced thecolonial era regulatory-style Public Service Commission. In recognition ofthe great diversity of activities undertaken by public service departments andthe need for flexibility in meeting their staffing needs, the Government hasopted for the gradual decentralization of personnel functions. The role ofthe DPM, when fully operational, will therefore focus mainly on policydevelopment, technical support to departments and monitoring their performancein relation to delegated personnel functions. Decentralization has startedwith the delegation of authority to departments for the recruitment of staffbelow the senior management level. The decentralization process will proceedat a pace consistent with the capacity of departments to perform the delegatedfunctions.

4/ The RMS is being implemented by 10 provincial governments and implementa-tion is under consideration in the remainder. The introduction of RMS inthe central government departments is currently under review with a viewto simplifying its structure so that it can be implemented moreeffectively in the face of substantial public service personnel reduc-tions.

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1.7 The Government has long recognized the value of in-service trainingin improving the productivity and effectiveness of personnel. It hasrecognized also that while large investments have been made in trainingprograms, there is much scope for improving their relevance to job performanceand the efficiency with which training is delivered. In response to theseproblems, the National Training Policy (NTP) has been approved and iscurrently being implemented. This calls for the strengthening of the Depart-ment of Personnel Management to promote, coordinate. monitor and evaluate in-service training in the public sector and strengthening of the Department ofLabor and Employment (DLE) to perform similar functions for training in thepublic sector. The NTP would also establish a National Training Council (NTC)which would be responsible for advising the Government on training policies,priorities and resource requirements. This advice would be based on analysesby DPM and DLE of the Three-Year Training Plans which are required to be sub-mitted by all public sector agencies and major private firms under the NTP.

1.8 The NTP also calls for the strengthening of the AdministrativeCollege (Adcol) to play a pivotal role in in-service training. Adcol wasestablished in 1963 to train public servants in basic administrative skills.The focus was originally on practical training but also on general educationcourses to make up for the lack of formal education of many public officialsin the 1960s. Early training reflected the colonial status of PNG and empha-sized district administration and the maintenance of law and order. Withindependence, the focus changed to training for economic and social develop-ment as health, education, infrastructure, small business, e__., expanded.Adcol has made a major contribution to PNG's development and has many dist4n-guished alumni. However, in recent years, Adcol has suffered from weakmanagement associated with a rapid turnover among its directors. It hasbecome increasingly out of touch with the skill development needs of itspublic service clients and has focused too much of its resources on long,academically-oriented courses more suited to the neighboring University ofPapua New Guinea (UPNG). A new director has recently been appointed and he ischarged with moving Adcol in the directions mandated by the NTP. Adcol willreorient its activities towards short intensive skills development coursesaimed at rtising the performance levels of working public servants. Particu-lar emphasis will be placed on short executive development courses formanagers who find themselves working increasingly in a rapidly changing Andmore complex operational environment. But Adcol will also extend its activi-ties beyond the delivery of training programs. It will develop the capacityto become a training resource center for public service departments respon-sible for research and consultancy on training issues, curriculum development,training of trainers, etc.

1.9 The high priority being given to improving management training isunderscored by the work of the Transitional Training Unit. The TTU whichope:ated during 1987-90, was set up as an interim arrangement to improve thedelivery and quality of management training while Adcol underwent its programof strengthening and reorientation. The TTU designed and tested managementtraining materials through courses given to central and provincial depart-ments. It also institutionalized management training in the departmentsthrough the training of trainers, promoting training technologies andestablishing working relationships between TTU, Adcol, DPM and the

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departmrents. The staff of the TTU were recently transferred to the ProgramManagement Unit of the Department of the Prime Minister where they are nowworkirg mainly in support of the development of the RMS.

II. ISSUES AND POLICIES IN TdE TRAINING SECTOR

A. Introduction

2.1 The success of Papua New Guiniea's ambitious plans to create moreeffective administrative processes and a better managed public sector willdepend crucially on the ability of the training system to produce skilled andmotivated personnel who are not merely able to perform their designated taskseffectively but also are amenable to change and improvement in tthe administra-tive system. Tiius training is an integral part of PNG's program ofadministrative reform. It is carried out in a great variety of institutions.At the post-secondary level, training is undertaken in 55 institutions offer-ing about 350 courses with a full-time equivalent enrollment of about 9,800.Apart from the two universities, the post-secondary system has a strongsectoral orientation with heavy concentration in teacher training, health andagriculture/forestry. MIddle level skill training .s carried out in 8technical colleges (enrollment 1900) and the apprenticeship scheme (900). Inaddition to formal institutional training, in-service training courses arewidespread in the public sector and among the larger private firms but to amuch lesser extent in smaller firms in the private sector. Annex 1 providesenrollment and staffing data on the major training institutions.

2.2 The above data characterize a training system which is highlyfragmented, with a large number of institutions enrolling a relatively smallnumber of students. Student/staff ratios are low and unit costs high.Moreover, the system is heavily subsidized with most students receivinggenerous allowances. The system is almost totally government-financed andthere are few incentives for the private sector to finance training. However,the major constraint to the system's expansion is not lack of budgetaryresources, which in general have been adequate, but rather the lack ofgraduates from the secondary schools with sufficient levels of achievement toqualify for entry to training courses. These issues are described in moredetail belcw.

B. Issues

2.3 Inadequate Capacity. Nearly 15 years after independence, Papua NewGuinea's low level of human resource deve.opment stands out as one of themajor constraints to the country's development. In the post-independenceperiod, the training (and education) system has fallen short of delivering theskilled and educated personnel necessary to manage a rapidly changing economy.Consequently, the modern sector workforce is still heavily dependent onexpatriates who occupy about half the administrative and managerial positionsand about 17 percent of the professional and technical positions.

2.4 A major constraint which has restricted the capacity of the trainingsystem to meet the denmand for skilled personnel has been the inability of thesecondary schools to provide adequate numbers of graduates qualified to entertraining courses. This has been especially true for higher level courses.The expansion of upper secondary schooling has been restricted by the desireto avoid educated unemployment. This cautious approach to expanding

enrollments wh3n combined with the high dropout rates within the system andthe demand by employers for the direct employment of upper secondary gradu-ates, has greatly reduced the flow of qualified graduates to the trainingsystem. At the middle level of skill training, enrollments in the technicalcolleges and the apprenticeship scheme have been constrained by the supply ofquality inputs but also by a lack of demand by employers for the outputs ofthase institutions whose training is perceived to lack quality and relevance.The result has been declining enrollments in pre-employment technical training(PETT) courses and apprenticeships and in static enrollments in techniciancourses.

2.5 Efficiency. The training system, especially at the higher levels,is highly fragmented into a multiplicity of institutions and courses(para. 2.1). As a result, the system has failed to achieve economies ofscale, which has led to the costly underutilization of physical and teachingresources. The situation is further exacerbated by high dropout rates and theresult is high unit costs per graduate throughout the system. In contrast,the training system enjoys high levels of external efficiency at the higherlevels. This is to be expected to some extent, since many training institu-tions are run by government departments and the majority of their graduatesare targeted for departmental employment. Furthermore, high employment levelswould also be expected given the general scarcity of citizens with highertraining. This is borne out by a recent tracer study of 1987 UPNG graduateswhich showed that about 80 percent were in employment immediately aftergraduation or were intending to pursue further education. Over 90 percent ofthe employed were in jobs relevant to their training. However, at the middlelevels of skill training, a recent study showed that only 52 percent of PETTtrainees were employed in occupations relevant to their training. Althoughthe information is too limited to draw firm conclusions, the study should betaken as a warning sign about the relevance of middle-level skill training tothe needs of the labor market.

2.6 Quality and Relevance. At the middle level, the skill trainingsystem suffers from the usual problems--poorly trained instructors,inadequately equipped workshops and curricula which may not be relevant to theskill needs of the labor market. The appropriate mode of training alsoemerges as an issue. It is likely that too much training is taking place inexpensive formal institutions which lack the flexibility to respor.d quickly torapidly changing skill needs. This suggests that more training should beshifted to the workplace while the formal training institutions concentrate onproviding short modular courses in basic skills and in skill upgrading.Training in the workplace ensures a high degree of relevance to employers'needs while at the same time having the flexibility to respond quickly asskill needs change.

2.7 At the higher levels of training, courses are in general well-financed and studant/staff ratios are low. However, the structure of enroll-ments does not seem to be particularly relevant to the needs of PNG's develop-ing economy which would seem to require a strong concentration on science/technology based courses. Within the university system as a whole, theUniversity of Technology acc.,Ants for only 27 percent of total enrollments.Within UPNG, enrollments in the science faculty account for only 15 percent of

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total enrollments compared to 40 percen; for the faculty of arts. The keyinstitutions serving primary industries (agriculture, forestry and fisheries)account for only about 6 percent of total enrollments in higher education.

2.8 Enrollment Disparities. Enrollments in training courses reflect thefact that female enrollment rates decline at each subsequent level ofschooling. Girls comprise 44 percent of total enrollments at the primarylevel, 38 percent at lower secondary and 27 percent at upper secondary.Consequently enrollments in training institutions are only about 33 percentfemale. Moreover, this proportion is inflated by enrollments in traditionallystrong female fields such as nursing and teacher training where femalesaccount for 69 percent and 46 percent of enrollments respectively. In theuniversities, female enrollment is only 14 percent in bachelors' degreecourses, concentrated mainly in the arts and education faculties. This situa-tion reflects traditional attitudes which have devalued the need for femaleeducation. Although these attitudes appear to be changing as evidenced by thehigh access rate to grade 1 (95 percent), girls are still leaving school atdisproportional rates as they progress through the system.

2.9 In-service Training. Within the public sector, in-service trainingactivities are widespread but are hampered by poor planning, coordination anddelivery. The core of the system, the Administrative College, is not perform-ing effectively in providing an appropriate range of skills upgrading courses,especially intensive management courses for middle-level and senior managers(para. 1.8). The latter are of particular importance to public sectormanagers as they contend with increasingly complex management decisions and arapidly changing policy environment. The recently established Department ofPersonnel Management has been given the mandate, under the NTP, for theplanning, coordination, monitoring and evaluation of training within thepublic sector. When fully operational, the DPM is expected to achievesubstantial improvements in in-service training in the sector. Information onin-service training in the private sector is limited. Large enterprises havea strong commitment to in-service training but smaller enterprises less so.The Department of Labor and Employment has a similar mandate for promotingtraining in the private sector as the DPM does in the public sector. However,implementation of this function is impeded by lack of trained staff withinDLE.

2.10 Financing of Training. The inability of the training system to meetthe country's requirements for skilled citizens has been not so much a matterof inadequate allocation of budgetary resources as a lack of qualified inputsto training courses. This is borne out by the high unit costs of enrollmentsand graduates which are due, in large part, to small enrollments (and highdropout rates) in many courses. Thus although overall resource allocationsseem to have been adequate in terms of the size of the training system, thequality of training has not been consistent with this level of support.Within training institutions, salaries are the major category of exper.diturereflecting the high salary levels in general in the public sector and,especially in higher level courses, the employment of expensive expatriates.Salaries together with other overheads (especially boarding), leave onlylimited funding for the investments necessary to improve quality such aslearning materials, up-to-date equipment, consumable materials, etc.

2.11 Cost sharing in the training system is almost non-existent andsubsidies for students increase with the level of training. In vocationalcenters, fees account for about 5 percent of unit costs; in the technical andteacher training colleges there are no fees and students receive a stipend.In the -niversities fees are paid by the Government and a higher stipend ispaid to students. Cost sharing with the private sector (apart from theapprenticeship scheme) is also almost non-existent. Although the privatesector has access to the graduates of the public sector training institutionsand tax rebates are available to encourage training, there is at presentinadequate incentive, in the face of high occupational mobility and doubtsabout the quality and relevance of training, for private employers to sharethe cost of training beyond the few students now sponsored directly by them.

2.12 Planning, Management and Coordination. The public sector pre-service training system comprises the autonomous universities and clusters ofother training institutions under the direct control of line departments(Education, Public Health, Agriculture, etc.). This fragmentation in themanagement and delivery of training has precluded the development of overallplanning for the system. It is difficult to specify overall objectives fortraining, allocate resources and monitor progress in achieving the objectives.It is not possible, under present conditions, to specify a 'higher education'budget. Moreover, although the training system is supposed to serve the humanresource needs of the economy, there is no effective mechanism for measuringthese needs and relating them to the outputs of the training system. Thissituation has resulted in many proposals for the rationalization of thetraining system but little progress has been made to date. Nevertheless, afirst step was taken in 1983 with the establishment of the Commission forHigher Education. The CHE has an advisory role which includes advice to theGovernment on the allocation of budgetary resources to the training institu-tions and policies regarding the award of scholarships within PNG andoverseas. It also administers the National Tertiary Scholarship Scheme.However, CHE has no direct responsibility for the operations of the traininginstitutions and thus cannot compel institutions to conform to its recommenda-tions. The influence of CHE, in its present form, is thus potential ratherthan real. A second step towards reform and rationalization is at presentunderway in the form of the preparation of a higher education plan, a firstdraft of which was recently completed. The plan will recommend asubstantially more powerful role for CHE in the planning and coordination ofhigher-level training. UNDP is expected to provide expert assistance to CHEin developing its new role.

C. Policies

2.13 The Government has reversed recent trends towards a lower priorityfor the social sectors and has called for a massive increase in budgetaryallocations for education and training--almost doubling the allocations in the

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1989-93 PIP compared with the previous one.5/ Also indicative of the newpriority for human resource development in the PIP is the large number ofprojects in economic and infrastructure sectors with training components.

2.14 The Government's strategy calls inter alia for: (a) the rapidexpansion of upper secondary enrollments to break the bottleneck caused by theshortage of graduates qualified to enter higher education and training;(b) expansion of training capacity to absorb all available grade 10 outputs;and (c) a doubling of university enrollments. The Government has alsoestablished several medium-term objectives relevant to the training sectornamely: (i) to strengthen the links between enrollment targets and curriculaand priority needs for higher-level skill training; (ii) rationalize highereducation and training to focus on high priority subjects, improve internalefficiency and reduce unit costs; (iii) provide incentives for privateemployers to undertake employment-specific training for school leavers; and(iv) restructure student financial support to ensure that the beneficiaries ofhigher-level training contribute to its cost.

2.15 While addressing a priority need, the target of an eight-foldincrease in upper secondary enrollments and a doubling of university enroll-ments over the next 10 years seems unachievable in the face of currentconstraints. At the upper secondary level, the major constraint is likely tobe lack of qualified teachers especially in math, science and English. Theseare in short supply everywhere and it is unlikely under existing employmentconditions, that PNG would be able to attract sufficient numbers to supportthe planned expansion. The long-term solution is to staff the national highschools with citizen teachers but the scarcity of teacher trainees means thatthere will continue to be heavy dependence on expatriate teachers in theforeseeable future. The constraint on the target for doubling universityenrollments is likely to be the shortage of grade 12 entrants rather than lackof teachers. Although university teachers will continue to be largelyexpatriate, requirements are relatively few and the recruitment market fairlyextensive. On the other hand, the pool of grade 12 graduates has remainedstatic at about 800 p.a. in recent years and the demand from other higherlevel institutions and from employers for direct employment, restricts thepool of potential university entrants even further. This situation willimprove over time as the expansion of upper secondary enrollments takeseffect.

2.16 The proposal to permit all grade 10 leavers to proceed to some formof training does not seem to be a viable one at this stage. At present onlyabout 35 percent of grade 10 graduates proceed to further education andtraining. Thus under the proposed policy over 6,000 additional school leaverswould have to be trained each year. However the formal sector workforce,where the ma;ority of trained workers would seek employment, would be unableto absorb the annual increase in the face of cutbacks in public sector employ-ment and poor investment prospects in the non-mining private sector. While

5/ The 1990-94 PIP showed a further increase of 15 percent over thepreceding PIP in resources to be allocated to education and training.

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widespread skill shortages exist in PNG, the problem cannot be solved througha mass training effort. The shortages will be most effectively overcomethrough a steady expansion of training efforts in line with identified demandin the labor market and with due regard to maintaining quality and relevance.If greatly expanded training opportunities for grade 10 leavers are to beconsidered, they should focus on preparation for self-employment in the non-formal sector and combine training with access to such complementary inputs asstart-up credit and technical assistance.

2.17 The Government's medium-term objectives are sound and are directedtowards making bigher education and training more relevant to labor marketneeds, improving the efficiency and cost effectiveness of higher education andtraining and getting private employers and students to make a greater contri-bution to the costs of education and training. Progress is being made inmeeting these objectives. A Human Resource Planning Branch is to beestablished in the Department of Finance and Planning (DFP) which would beresponsible for human resource planning at the macro level utilizing dataprovided by such key agencies as CHE, DPM, DLE, etc. Its work would providethe analytical basis for strengthening the linkage between enrollments andskill needs. Such linkage would be further strengthened with data from theThree Year Training Plans now being implemented under the NTP (para. 1.7).Progress is also being made in rationalizing higher education. The recently-completed draft of a higher education plan makes recommendations for a morecost-effective .tilization of training institutions and for strengthening therole of CHE in planning and coordinating higher education and training. As anincentive to the private sector to undertake training, a two percent payrolllevy has been introduced from which would be deducted the costs of trainingactually undertaken by firms. A start has also been made on the restructuringof student financial support. Regarding the latter, the continued award ofscholarships will depend in future upon student performance with failingstudents losing their scholarships and marginal students being required to paya penalty.

2.18 Inadequate planning, coordination and delivery of in-servicetraining programs is being addressed in the National Training Policy which isan ambitious attempt to solve these problems and create a rigorous frameworkfor the delivery of quality training. The NTP defines priorities, objectivesand guidelines for the organization and management of training. Its implemen-tation will be largely the responsibility of DPM, DLE and Adcol. Considerablestrengthening of these bodies will be necessary before they have the capacityto effectively implement the NTP. When the latter is achieved it will permitthe National Training Council, being set up under the NTP, to become apowerful mechanism for contributing to the achievement of the Government'smedium-term objectives in the education and tr,4ning sector.

2.19 Policies currently in place, or being formulated, will result in amuch more rational mechanism for planning and coordinating both pre-serviceand in-service training. A strengthened CHE (para. 2.12) will be responsiblefor planning and coordinating a restructured and more efficient system ofhigher-level pre-service training institutions. Although operationalresponsibility for the individual institutions will not be transferred to CHE,the latter's role as adviser to the Government is expected to be greatly

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strengthened in dealing with the size, structure and content of the highereducation and training system and with the level of resources necessary forits cost-effective operation. The planning and coordination of in-servicetraining will likewise be strengthened under the National Training Council.Its terms of reference and associated regulations have been formulated and ithas met already as an interim body. The NTC will appoint a director, who willact as chief adviser to the Government on in-service training issues andpolicies. Under the NTC, DPH will handle in-service training matters for thepublic sector and in parallel, DLE will carry out a similar function in rela-tion to the private sector. Thus there will be clear lines of authority forplanning, policy and coordination of pre-service training running from theinstitutions/departments to the Government through the CHE. For in-servicetraining, the line will run from public sector departments through DPM and theNTC to the Government and from private firms through DLE via the NTC toGovernment. This is represented diagrammatically in Annex 2.

D. Bank's Experience in Education, Training and InstitutionalDevelopment

2.20 The Bank's lending strategy in the education and training sector hasbeen consistent with the Government's priorities and has been supported bythree lending operations. The first (Credit 661-PNG in 1976) focussed onstrengthening training for middle and higher level personnel in agriculture,health, teacher training and technician training for industry. The projectperformance audit report (PPAR-No. 5126 of June 15, 1984) concluded that whileproject implementation was satisfactory, enrollment and employment targetswere not reached due primarily to changing skill requirements and the lack ofqualified secondary school entrants to the training courses. These outcomesindicate that project design should have paid greater attention to estimatesof human resource requirements and the likely level of outputs from thesecondary school system. In the case of technician training, inadequateattention was given to the relative lack of incentives for employers torelease and pay trainees and to the opportunity cost of training to the self-sponsored trainees. Nevertheless some success was achieved in the teachertraining component. Although output targets were not achieved, the actualoutputs did lead to a significant replacement of expatriate teachers in theprovincial high schools with a concomitant reduction in recurrent costs.

2.21 The second project (Credit 1087-PNG/Loan 1934-PNG in 1981) assistedin strengthening management of the education system, improving quality inprimary education through curriculum development and expanding textbooksupply, strengthening student assessment and teacher training and expandingprimary schooling in underserved provinces. The PCR for the project indicatesthat enrollment targets were exceeded and substantial progress was made inreducing enrollment disparities among provinces. However, the project was notsuccessful in improving retention rates. Localization of staff in the teachertraining colleges was improved and substantial numbers of personnel weretrained in various fields of educational development. Textbooks were producedin record volumes but there were problems in distributing the materials. ThePCR concludes that institution building related to the strengthening ofcurriculum, examinations and project monitoring and evaluation was successfuland sustainable. The project's contribution to institutionalizing planning

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procedures represented a first step in what must be a long-term process.Project management was highly satisfactory. The third project (Loan 2395-PNGin 1984), which is currently being implemented successfully, responds to theneed to expand secondary education and improve its quality while containingcosts. The project will ease the bottleneck in the supply of adequatelyprepared secondary school graduates which has retarded the expansion of highereducation and failed to meet the demand of employers for recruits with a soundgeneral education. The project will provide about 5,000 new secondary schoolplaces, strengthen curriculum development and teacher training and improveeducational planning, cost control and the linkage between secondary educationand labor market needs.

2.22 The two completed projects offer two major lessons of relevance tothe design of the proposed project. First, careful attention needs to begiven to assessing training requirements and ensuring that training isflexible enough to respond to changing demand for different types of training.In the proposed project, the prime responsibility for defining the majortraining needs and the identification of the majority of candidates forfellowships will lie with the individual departments thus ensuring that theimmediate employer determines training needs and priorities and is well-placedto adjust the fellowship program to changing needs as necessary. Second, thetwo completed projects were implemented satisfactorily largely because specialattention was given to developing sound project management units staffed withexperienced personnel. In the design of the proposed project, specialemphasis has been given to project management and coordination includingcareful attention to appropriate mechanisms and procedures and to the employ-ment of outside experts.

2.23 Although only three projects have been processed in the educationsector in PNG, the Bank's lending has probably had more influence on educa-tional development that the small number of operations might imply. The lasttwo projects have had some sector-wide impact on improving management,planning and the quality and relevance of education and are contributing tothe development of a more efficient and cost-effective education system. Thisimpact has been reinforced by recent sector work on the financing of education(Report No. 6767-PNG, June 1987) which the Ministry of Education has indicatedis a valuable input to policy formulation. A similar contribution was made bythe extensive treatment of human resources issues ir the 1988 Economic Report(Report No. 7121-PNG. April 1988). Additional sector work has also beencompleted recently on issues and policies in training.

2.24 The Bank has been asked by the Government to take the lead roleamong donors in the education and training sector. The implications of thisrequest are not clear at this stage and consequently a sector strategy paperis under preparation to provide guidance on future activities. Nevertheless,the Bank sees a possible substantial role in two major areas--therestructuring of the higher education system into a smaller, better managed,more relevant and cost-effective system and the expansion and quality improve-ment of upper secondary education to provide better quality inputs to higherlevel training courses and for direct entry to employment. Support in boththese areas would assist in alleviating PNG's severe shortage of high-levelpersonnel, accelerate localization and strengthen PNG's ability to handle the

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development challenges of the future. Such assistance would reinforce thecountry's ongoing efforts in institu-ional reform and also reinforce supportfor strengthening public sector training under the proposed project.

2.25 The tank has supported the Government's administrative reformprogram through an ongoing dialogue and sector work aimed at improving publicsector management (para. 1.3) and through recent sector work on absorptivecapacity problems. The latter report reviewed the institutional constraintsto the implementation of PNG's development program. It reviewed issuesrelating to: the shortage of skilled personnel; procedural and regulatoryconstraints in inter-agency coordination, project preparation, funding andmonitoring; and bottlenecks which retarded actions in land acquisition,project audit and evaluation, management of technical assistance, etc. TheBank's report made a number of recommendations aimed at alleviating many ofthe above problems. These are now being implemented or are underconsideration by the Government.

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III. THE PROJECT

A. Origin of the Proiect

3.1 Possible Bank assistance for public sector training was a topic indiscussions between the Bank and the Government in April 1988. This wasfollowed by an official request for assistance in September 1988. Theproposal was further refined during management discussions with Government inNovember 1988 and a mission identified and started preparation of the projectin February 1989. The project was pre-appraised in October 1989 and appraisedin February-March 1990.

B. Proiect Rationale, Objectives and Scope

3.2 The Bank has previously assisted institutional improvement andpersonnel training in PNG. It is therefore well-placed to continue support inthese areas. The Government's ongoing administrative reform program includesmore effective training as a major ingredient to be achieved throughimplementation of the NTP. The key to the successful implementation of theNTP is the effective performance of DPM, DLE and Adcol. The proposed projectwould strengthen the capacity of these agencies to carry out their roles underthe NTP. In the longer term, this would result in a better managed, more costeffective and relevant training system. The project would also assist infilling important skill gaps by providing overseas training opportunities infields which are not available in local institutions. The project is consist-ent with previous Bank assistance to agricultural, health, teacher andtechnical training (1976) and to the expansion of secondary education toincrease the supply of qualified secondary graduates for entry to the traininginstitutions (1984). The basic objectives of the project are to strengthenin-service training in the public and private sectors and increase the supplyof specialized high-level personnel to staff the Government's policy andplanning agencies and to help meet shortages of technical skills. The overallimpact of the project would be to assist in strengthening the management,planning and technical capacities of the public sector and improve theeffectiveness of training in the private sector.

3.3 Specifically the project would:

(a) support the implementation of the National Training Policy throughstrengthening DPM's capacity to promote, coordinate, monitor andevaluate training in the public sector. Strengthen DLE's capacityto play a similar role in the private sector;

(b) upgrade and reorient the Administrative College towards its new roleas defined under the NTP namely to focus on short, intensive skilldevelopment courses and executive development prngrams and placegreater emphasis on research, curriculum development and thetraining of trainers; and

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(c) finance an overseas fellowship program for training in policy andplanning fields and specific technical fields which is presentlyunavailable in PNG.

The project would finance civil works, equipment, teaching and consumablematerials, fellowships and experts.

C. Project Description

Implementation of the NTP (Estimated baseline cost, US$5.0 million)

3.4 Department of Personnel Management (US$3.3 million). While DPM isresponsible for a range of personnel functions--policy and planning,industrial relations, personnel placement, organization and methods--it is thetraining function which will be assisted under the proposed project. Theorganizational structure of DPM is shown in Annex 3. The NTP gives DPM themandate for promoting, coordinating, monitoring and evaluating training in thepublic sector and the unit responsible for training in DPM is the ManpowerDevelopment, Training and Resource Division (MDTRD). This division isresponsible for handling the Three Year Training Plans being produced underthe NTP. Thirty-six of the scheduled 44 such plans have been prepared to dateand are currently being implemented. Apart from extracting and analyzing bidsfor donor-financed training, the MDTRD will take responsibility for overallanalysis of the plans and for making appropriate recommendations on opera-tional and policy issues to the Government through the National TrainingCouncil. The implications of these activities are not yet clear especially interms of data-base requirements and appropriate mechanisms for utilizing data.To assist in clarifying these issues the project would finance 11 months ofconsultant services for a training analyst to advise nPM on how best toutilize the Training Plans to meet long term training needs and to develop amechanism to link data analysis to policy development to ensure that trainingis planned and executed in a rational and cost-effective manner. The projectwould also finance 15 months of consultant services for an informationtechnologist to develop a computerized data base to serve as the basis for theanalytical work to be done on the training plans. The consultant would alsobe responsible for training staff of the MDTRD in operating the data base andfor advising on computer software and hardware requirements. During negotia-tions, the Government gave assurances that the training a2alyst and the infor-mation technologist would be appointed by July 31, 1991.

3.5 The Training Plans produced to date are of variable quality and willneed further development and refinement. ;. model plan needs to be developedwhich would provide common stiucture and content and provide the standard fromwhich agencies would work in producing plans. Although there would be someflexibility in the standardized approach in recognition of the differentstructures and objectives of the various agencies, enough commonality wouldexist to provide consistent sets of data and clear statements of institutionalobjectives relating to training. The MDTRD would take the lead role in thefurther development of the Training Plans, working through the departmentalStaff Development Units (SDUs). The project would finance 40 months ofconsultant services for a staff development and training advisor to assist infurther improvement of the Three Year Training Plans and in training staff of

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the SDUs in training needs analysis and plan preparation. Similar trainingwould also be provided for staff of the MDTRD. The consultant would alsoassist MDTRD in strengthening the linkage between training and career progres-sion. During negotiations, the Government gave assurances that the staffdevelopment and training advisor would be appointed by July 31, 1991.

3.6 The project would also assist in establishing and making operationalthe National Training Council. An interim NTC has already been convened butmuch work needs to be done in setting it up on a permanent basis, developingits policy role and establishing its operational procedures. DPM iscoordinating this activity. When fully established, thL NTC will beresponsible for the oversight of the NTP and its review and revision asnecessary. The NTC will advise the Government on training priorities andpolicies in relation to in-service training in the public and private sectors.The NTC will have a secretariat which will analyze information made availableto it by DPM and DLE and provide appropriate advice to the NTC. Thesecretariat's director has been identified and staff profiles are currentlybeing drafted for the secretariat's supporting staff. Recruitment of staff isexpected to be completed by the end of December 1990. The project wouldassist the NTC to become fully operational by providing 14 months ofconsultant services for an information technologist to assist in the develop-ment of a data base, training of staff of the secretariat and provision ofadvice on appropriate software and hardware. Because the NTC is a new bodywhich must develop its own operational procedures, and in view of the likelyinitial inexperience of its staff, the project would finance 27 months ofconsultant services for a management advisor to assist in putting the NTC on asound management basis and to support the establishment of appropriatemechanisms for policy development and advice. A staff development andtraining advisor would be financed under the project for six months to assistin drawing up a staff development plan for the NTC secretariat together withappropriate training materials. Terms of reference for the consultants toassist DPM and NTC have been agreed with the Bank. During negotiations, theGovernment gave assurances that the management advisor and the informationtechnologist would be appointed by July 31, 1991 and the staff development andtraining advisor by January 31, 1992.

3.7 Department of Labor and Employment (US$1.7 million). The DLE hasmultiple functions covering the private sector relating to industrial rela-tions, policy and research, labor administration, employment, training, etc.(Annex 5). At present, the training function, which is the responsibility ofthe Employment and Training Division (ETD) is largely concerned with theimplementation of the work permit scheme (WPS) and apprenticeship training.In addition to this training responsibility, the NTP calls for DLE to carryout a role in the private sector similar to DPN's in the public sector,namely, to promote, coordinate, monitor and evaluate training. Thus, EDT willbe required to ensure that private firms produce the Three Year Training Plansas required under the NTP, analyze data from the Plans and advise the NTC onneeds and priorities for training in the private sector. These requirementsconsiderably enlarge the training role of DLE and to be able to implement it,significant institutional strengthening will be required. The computerizeddata-base needs to be expanded and upgraded. The current system cannot copewith the present work permit scheme and its training and localization

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implications and so will be inadequate to meet the extra data demands of theNTP, especially for processing data from the Training Plans. Therefore theproposed project would finance 18 months of consultant services for a laboreconomist to define the nature of the data to be collected, the method ofcollection and the type of analysis required to meet the needs of ETD (andother divisions of DLE which might need training data such as the Policy andResearch Division ard the National Employment Service). The result would be asystem which would permit expanded data analysis, wider accessibility todepartmental staff and promote the use of information as an input to thepolicy process. During negotiations, the Government gave assurances that thelabor economist would be appointed by July 31, 1991.

3.8 The core of the data system would be the information extracted fromthe Training Plans. But the opportunity would also be taken under the projectto include other relevant data related to employment, skill structure, labormobility etc. These data, which have been identified within DLE, would beused by other divisions of DLE and also by the national planning authorities.Much data are stored in conventional files in a haphazard manner and dataretrieval is difficult. To address these issues the project would finance theestablishment of an integrated microfiche system for ETD which containsfacilities for photography, storing, displaying and photocopying. Since thereis no central location for the collection, classification and storage ofprinted material, the project would also establish an information unit for DLEto collect, and provide easy access to, a wide variety of relevant publica-tions. The project would finance library furniture, a cataloging system, amicrocomputer, training materials and equipment and book purchases. Theproject would also finance the services of a consultant information specialistfor two years to set up the unit and provide in-service training. Duringnegotiations, the Government gave assurances that the information specialistwould be appointed by October 31, 1951.

3.9 To handle information-related issues on a continuous basis, DLE hasan established position for a systems analyst. However it has not been ableto fill the position with a qualified citizen. The post is an important oneif DLE is to maintain over the long term, the improvements to its informationbase proposed under the project. The project would therefore finance twostaff years of consultant services to fill the post with a qualified systemsanalyst. Working in close consultation with the labor economist, the systemsanalyst would evaluate present data base capabilities and make recommendationsfor expansion and improvement in relation to DLE's overall informationrequirements regarding training and related activities. A suitable citizenwould be recruited and sent overseas for training as a systems analyst underthe project. During negotiations, the Government gave assurances that theconsultant systems analyst would be appointed by October 31, 1991 and that thetiming of recruitment of the trainee systems analyst would permit anappropriate period of overlap with the expert. The consultant systems analystwould also identify all the hardware and software requirements to be financedunder the project to service DLE's data processing needs and also provide in-house training as necessary.

3.10 The expanded and improved data base would support several majorfunctions within DLE including training, localization planning, expatriate

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employment, etc. However, in order to ensure that these functions arecarried out effectively, DLE needs to strengthen its administrative capacity,upgrade management skills and clarify its operational objectives and theorganizational structure needed to achieve them. Strengthening DLE in theseareas would provide a sound administrative context for the improvements beingsought under the proposed project. The project would therefore include threeyears of consultant services for an organizational development/managementtraining specialist to review organizational structure and managementprocedures, make appropriate recommendations and provide the necessary in-service training. During negotiations, the Government gave assurances thatthe organizational development/management training specialist would beappointed by July 31, 1991. Draft terms of reference for all the consultantsto assist DLE under the project have been agreed with the Bank.

Strengthening of the Administrative College (Estimated baseline cost,US$8.1 million)

3.11 Adcol is the key institution responsible for in-service training inthe public sector in PNG. Its overall aim is to raise the productivity ofpublic employees through training in practical skills and management. Itcomprises a main campus in Waigani and three regional training centers (RTCs)in Waigani, Madang and Rabaul. Adcol is headed by a director who isresponsible to the Secretary, DPM. Following a series of acting directors. apermanent director has recently been appointed and this will give firm direc-tion to Adcol's management. The director will be supported by a governingBoard which is currently being set up as required under the NTP. The Boardwould oversee Adcol's long-term development which under the NTP calls forincreasing autonomy and revenue-earnizj capacity. Each RTC has a RegionalTraining Advisory Committee to guide its operation. Adcol's main campus hasthree main branches which focus on research and development, developmentstudies, and management and accounting, plus administrative support facilities(Annex 6). Adcol currently has 90 courses in its calendar ranging from 40week courses in accounting and auditing to 2 day introductory computercourses.6/ A recently completed training needs analysis has reviewed allcourse offerings and will make recommendations on future course development inline with the NTP's emphasis on short practical courses and executive develop-ment programs. Currently, 16 short courses and 5 long courses are beingoffered with enrollments of 240 and 98 respectively.

3.12 Adcol has an academic establishment of 52 posts on the main campusof which 33 are currently filled, 11 by expatriates. The recently completedtraining needs analysis which will define future course offerings will clearlyhave important implications for future staffing. Changes which will berequired in staffing structure will be greatly facilitated by the 37 percentvacancy rate among academic posts by permitting new recruitment to be closely

6/ The RTCs focus entirely on short (1-6 week) courses which have a strongpractical skills orientation related to local needs. Examples are reportwriting (1 week), basic bookkeeping (2 weeks), cash accounting procedures(3 weeks), training skills for extension officers (6 weeks), etc.

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related to new training needs.7/ Further flexibility is provided by the 11expatriates who are on short-term contracts which provides fairly rapidturnover and therefore further opportunity to change the skill-mix of theacademic staff. The present situation in which 58 percent of academic postsare either vacant or filled by short-term expatriates will also assist Adcolin recruiting staff for the increased emphasis to be given to research anddevelopment, training of trainers, curriculum development and consultancyservices as mandated under the NTP. The RTCs are staffed by a full establish-ment of 26 personnel of which 11 are expatriates. The administrativeestablishment of the main campus is 94 posts of which 63 are currently filled.

3.13 Staff development is given high priority in Adcol to ensure thatteaching staff have appropriate academic qualifications and the skillsnecessary to teach practical courses. Staff development is provided throughrelease of staff to study at UPNG, overseas fellowships funded bilaterally topursue graduate programs and through attendance at short skill-orientedcourses within Aecol and overseas. At present, three academic staff arestudying at UPNG and four are in Canada studying for masters' degrees inpublic administration financed by CIDA. The proposed project would support anoverseas graduate fellowship program of about 25 staff years. This wouldextend the CIDA program, which terminates in 1990, and broaden its base toinclude masters programs in business administration, communications, socialwork. etc.. The project would also support the development of practicalskills to permit academic staff to respond to Adcol's increased futureemphasis on short, skill-intensive courses. Although there are 80 shortcourses of 12 weeks or less in Adcol's calender, only 16 are currently beingrun. Teaching staff who are well-qualified academically need to strengthentheir capacity to teach specific skills and also broaden the range of coursesthey can handle. The project would finance 25 staff years of overseas andlocal training and also include attachments to relevant institutions forpractical learning experience. To reinforce the staff development program,the project would finance 15 months of consultant services for a training-of-trainers adviser to train faculty in instructional methodology, studentassessment, etc. During negotiations, the Government gave assurances that thetraining-of-trainers' adviser would be appointed by October 31, 1991. Detailsof fellowship and training programs are in Annex 4.

3.14 The project would also assist in the physical upgrading of Adcol'smain campus and the RTCs. Adcol's main campus has deteriorated in recentyears reflecting its decline in status and the concomitant squeeze onbudgetary resources. If Adcol is to achieve the expanded role and enhancedstatus proposed for it under the NT!, a good deal of physical renovation and

7/ The relatively high vacancy rate does not reflect particular difficultiesin recruitment but rather is part of an explicit policy not to fill postsuntil future needs, related to institutional reorientation, areclarified.

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some new construction would be needed.8/ On the main campus, generalmaintenance (carpentry, plumbing, painting) would be financed under theproject. In addition, the library would be upgraded through the provision offurniture, audio-visual equipment, air conditioning plant and printing equip-ment. Additional equipment would be provi.dJ for the kitchen/dining hall andstorage space extended. Dormitories woulc be renovated including two to bebrought up to sufficient standard to house the senior officials who will beresident for the executive development program. Six additional staff houseswould be provided to ease the existing housing shortage and solar heaterswould be installed in all existing houses as an energy saving measure.Computer capacity, mainly for teaching, but also for administrative purposeswould be enlarged. At present Adcol has very limited computer facilities,mainly a few donated PCs ani additional terminals. Computer training is seenas a priority area under the NTP and Adcol plans to greatly expand itscapacity in this field. It is also important to extend computer training tothe RTCs. The project would finance 131 PCs with associated peripherals andsoftware and a mini computer for use by Adcol's management. The project wouldalso finance a consultant in information technology for 27 months to assist indeveloping appropriate programs relevant to clients' needs and also to adviseAdcol's management on relevant systems for internal administration. Duringnegotiations, the Government gave assurances that the consultant informationtechnologist would be appointed by July 31, 1991.

3.15 The project would support the upgrading of the RTCs and the re-establishment of the Highlands RTC. The RTCs were established in the early1970s to bring training closer to clients in a more cost effective way. Theywere abolished in 1982 as an economy measure but three of them were reopenedin 1985. The re-establishment of the Highlands RTC in an existing facility iscalled for under the NTP. It is proposed to do this by sharing the facilitiesof the Education Resource Center in Mount Hagen. These include existingoffices, classrooms, library, dormitory, kitchen and dining facilities.Additional facilities to be provided under the project would include fourstaff houses, furniture and equipment, toilet and sewerage facilities, librarybooks, audio-visual equipment and improvements to dormitory and kitchenfacilities. The Northern RTC at Madang has a well-equipped campus. The majorproblem is staff housing and it is proposed to construct three new housesunder the project. One classroom will also be converted and air conditionedas a computer teaching facility to handle the planned increase in computertraining courses. For the Islands RTC at Rabaul, the project would financerenovation of housing, classrooms and dormitories, provide furniture andequipment for the administrative building and kitchen/dining room facilities.The Southern RTC is adjacent to the main campus at Waigani and shares itsfacilities. The project would provide only limited assistance, namely the

8/ Adcol's requirements for physical renovation. new construction andrelated equipment were prepared and costed in conjunction with theDepartment of Works (DoW). Standard designs are available for newconstruction, including staff housing. Additional land acquisition willnot be required.

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conversion of the old mess building into an executive development center toserve the strong demand for management training.

3.16 Adcol's move towards autonomy and an increasing revenue-earningcapacity will require new approaches to management. This will be supported by4 months of consultant services to develop a plan for institutional autonomyand 23 months of consultant services for a management advisor to developappropriate internal management systems to govern the main campus and theRTCs. The latter would be assisted by the information technology expert to befinanced under the project (para. 3.14). Increasing emphasis on curriculumdevelopment, course selection, monitoring and evaluation will require thedevelopment of new systems and this will be supported through the provision of47 months of consultant services comprising a course development adviser (27months) and various short-term advisers (20 months). During negotiations, theGovernment gave assurances that the consultant on institutional autonomy, themanagement advisor and the course development advisor would be appointed byJuly 31, 1991. The technical assistance program, totalling 116 staff-months,would help to equip Adcol with the sound management and professional capacityto achieve the role defined for it under the NTP. Terms of reference for theabove consultants have been prepared and are acceptable to the Bank.

Overseas Fellowship Program (Estimated baseline cost, US$6.1 million)

3.17 Papua New Guinea's universities have not been able to meet thedemand for high-level personnel in the post-independence period. Although awide range of degree and diploma programs is offered, expansion has beenconstrained by the shortage of qualified graduates from the high schools andto some degree by budgetary constraints, especially in recent years. Problemsof declining quality also exist in the universities. Although the supply oftrained personnel has been deficient in most major skill areas, the problem isespecially acute in the fields of policy and planning. There is a widespreadperception that citizens with superior qualifications relevant to policy andplanning activities--economists, financial analysts, planners, managers,etc.--are in short supply in the key departments. In addition, there areshortages of graduates in specialized technical fields such as petroleumengineering, geology etc. for which training is not available in PNG. Thelong term solution to these problems is to be found in expanding the universi-ties and improving the quality of their programs. However, in the shorterterm, the problem can be addressed through overseas training in programsrelevant tc skill shortages and in fields not catered for at present in thelocal universities. High level training is being assisted by several donorsand focusses particularly on graduate programs. This fills a gap in localuniversity education which remains largely undergraduate.

3.18 The proposed project would expand the opportunities available forhigh-level training overseas. Procedures for identifying and processing over-seas fellowships are firmly established in PNG due to the extensive donor-sponsored training programs which finance around 100 overseas universityfellowships annually. Overall responsibility for the process lies with DPM.However, the actual identification of training needs lies with the individualdepartments which are also responsible for nominating individuals to receivefellowships. This ensures that the training priorities of the employing

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departments are met and that suitably qualified individuals are nominated forfellowships. This process will be reinforced with the introduction of theThree-Year Training Plans under the NTP which will require clear statements ofdepartmental priorities and associated training needs. Departmental trainingbids are sent to DPM which reviews them in terms of the country's overalldevelopment priorities. DPM also reviews individual nominations for fellow-ships to confirm eligibility for entry to overseas programs. DPM then drawsup a prioritized list of fellowships and negotiates with donors to procureappropriate financing. When the list of fellowships is finalized, donorsliaise with client departments regarding the administrative processing ofindividual fellows. Sim.ilar procedures, suitably adjusted to the needs of theproposed project, will be followed for the fellowship component.

3.19 Fellowships amounting to a total of 240 study years would befinanced under the project and are summarized in Annex 4. Fellowships wouldbe awarded in two general areas - policy and planning (140 study-years) andspecialized technical fields (100 study-years). In policy and planning,fellowships would be awarded in two fields:

(a) economic policy including macro-economics, finance, labor, humanresources, trade and industry. This part of the program will coverthe Departments of Finance and Planning, Labor and Employment,Personnel Management, Trade and Industry, Education, and Health; and

(b) policy relating to natural resources management, environment andconservation covering the Departments of Agriculture and Livestock,Environment and Conservation, Minerals and Energy, Fisheries andMarine Resources, Lands and Physical Planning, and Forests.

Fellowships would be awarded mainly for graduate study for masters' degreesand graduate diplomas but short courses for developing specific skills and jobattachments to provide practical experience would also be included. Require-ments for policy and planning fellowships have been identified by DPM, inconjunction with participating departments. The fellowship program definesthe general areas of priority for training and relevant fields of study. Thefellowship program would be updated annually and reviewed by the Bank.Fellowships to be financed during the first year of the program have beenreviewed and are acceptable to the Bank. Fellowships would be awarded toserving officials in the participating departments. Recipients of fellowshipswould be occupying positions dealing with policy andlor planning issues ormore junior officials who show the potential to move into such positions. Theassessment of such potential would be made by the individual departments.Special attention would be paid to maximizing the participation of women inthe fellowship program to reflect the fact that female representation declinesat each higher level of education, thereby reducing the pool of qualifiedapplicants. During negotiations, the Government gave assurances that age andposition levels would not be applied rigidly to women candidates so as toensure that younger, more junior women, with high potential, would beconsidered as applicants.

3.20 Fellowships to be awarded for training in specialized technicalfields would be mainly at the undergraduate level but some provision would

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also be made for shorter, skill intensive courses of up to one year's dura-tion. Skill needs would be identified during the preparation and annualupdating of the Three-year Training Plans. This information would be passedto DPM which would coordinate the matching of skill needs with trainingopportunities and the identification of candidates. This would result in anannual fellowship program for each year of the project which would be reviewedby the Bank. Since most of the training would be at the undergraduate level,some of the candidates would be school leavers. Information on this categorywould be provided to DPM by the Commission for Higher Education which isresponsible for the award of national scholarships to school leavers. Womenare poorly represented in technical fields in PNG which is partly due to thelow proportion of women entering higher education and also to their preferencefor nontechnical courses. In recruiting candidates for fellowships intechnical fields, the Government gave assurances, during negotiations, thatspecial attention would be given to identifying female candidates.

3.21 There is no formal "bonding" system for returning fellows in PNG toensure that returnees enter jobs for which they have been trained. However,since fellows must be recommended by their departments and remain on thedepartmei t's establishment while studying, return to the parent departmentwould seem to pose no problem. For the most part it appears that fellowsreturn to their previous positions or to positions relevant to their training.No data are available on the placement of returnees but there is anecdotalevidence that some fellows return to their departments to find that theirpositions have been filled or in some cases abolished. In view of thisuncertainty, the Government agreed during negotiations, to obtain a writtenundertaking from sponsoring departments, that fellows being financed under theproject would return to their previous positions or to positions within thedepartments which were relevant to the training programs undertaken by thefellows. In the case of fellows who have not been previously employed, suchas school leavers, no written undertaking would be required and returneeswould be free to seek employment in the public or private sectors.

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IV. PROJECT COSTS, FINANCING AND IMPLEMENTATION

A. Costs

4.1 The cost of the project is estimated at US$23.1 million equivalentnet of duties and taxes. The estimated cost by project component issummarized in Table 4.1 and by category of expenditure in Table 4.2. Detailedcosts by component and category are given in Annex 7 and project expenditureby year and category in Annex 8.

Table 4.1: SUMMARY OF PROJECT COSTS BY COMPONENT

ForeignComponent Kina Million US$ Million as 2 of

Local Foreign Total Local Foreign Total total

Implementation of NTP:DPM 0.8 2.4 3.2 0.8 2.5 3.3 75DLE 0.2 1.4 1.6 0.2 1.5 1.7 89

Subtotal 1.0 3.8 4.8 1.0 4.0 5.0 79

Strengthening of Adcol 2.8 5.0 7.8 2.9 5.2 8.1 65

Overseas Fellowship 0.3 5.7 6.0 0.3 5.8 6.1 95Program

Baseline Cost 4.1 14.5 18.6 4.2 15.0 19.2 78

Contingencies:Physical 0.2 1.0 1.2 0.3 1.0 1.3 80Price Increase 0.7 1.8 2.5 0.7 1.9 2.6 71

Subtotal 0.9 2.8 3.7 1.0 2.9 3.9 74

Total Project Cost 5.0 17.3 22.3 5.2 17.9 23.1 78

Note: Equipment and materials imported under the project would be exempt fromduties and taxes.

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Table 4.2: SUMMARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE

ForeignItem Kina Million US$ Million as Z of

Local Foreign Total Local Foreign Total total

Civil works 2.0 0.8 2.8 2.0 0.9 2.9 30Furniture 0.2 0.1 0.3 0.2 0.1 0.3 30Equipment 0.2 2.0 2.2 0.2 2.1 2.3 90Teaching materials 0.1 0.4 0.5 0.1 0.4 0.5 80Technical Assistance:Project implementation 0.1 0.5 0.6 0.1 0.5 0.6 90Organization improvement 0.4 3.5 3.9 0.4 3.6 4.0 90Fellowships and training 0.9 6.6 7.5 1.0 6.8 7.8 88Consumables and supplies 0.2 0.2 0.4 0.2 0.2 0.4 50Allowance overseas 0.0 0.4 0.4 0.0 0.4 0.4 95

Baseline Cost 4.1 14.5 18.6 4.2 1 .0 19.2 78

Contingencies:Physical 0.2 1.0 1.2 0.3 1.0 1.3 80Price Increase 0.7 1.8 2.5 0.7 1.9 2.6 71

Subtotal 0.9 2.8 3.7 1.0 2.9 3.9 74

Total Project Cost ' 17.3 22.3 5.2 17.9 23.1 78

4.2 Base costs are estimated at November 1990 prices. The estimatedcost of the overseas fellowship program is based on the current tuitioncharges and other costs and allowances of the overseas training programs beingimplemented in PNG (US$24,000 per study year). In Papua New Guinea,participants in long-term overseas training programs (nine months or longer)are allowed to have their families accompany them during the period of theirstudies, subject to prior approval by their own department and DPM.Therefore, family allowances, based on the standard rate of allowance, areincluded in the project costs and would be financed by the Government. Theseare estimated to cover about 30 percent of the participating fellows. Civilworks costs for renovation and upgrading of the buildings and expansion ofhousing of the Adcol main campus and the four RTCs are based on standard costestimates from the Department of Works. Equipment and furniture costs areestimated on the basis of agreed lists of equipment and furniture and recentcatalogue prices. Equipment and materials imported under the project would beexempt from duties and taxes. Import duties or taxes on constructionmaterials have not been identified separately in project costs since suchtaxes are negligible. The estimated costs of expert services are based onunit costs of similar services and activities in programs currently beingimplemented in Papua New Guinea.

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4.3 The contingency allowances of US$3.9 million (about 202 of basecosts) include contingencies for unforeseen physical conditions and forestimated price increases. Physical contingencies were estimated at 51 forcivil works, furniture, fellowships, equipment and materials, and 102 forexpert services. Price increase contingencies were calculated for both localand foreign costs in accordance with the following expected annual averageprice increase percentages; local cost 7.OZ in FY91 and 5.5Z thereafter andforeign cost 3.6Z throughout. Accordingly, aggregated price contingencies areestimated at about 13 percent of base costs plus physical contingencies.

4.4 The foreign exchange cost of US$17.9 million, (about 78 percent oftotal estimated project costs) has been calculated on the basis of thefollowing foreign exchange percentages: civil works - 302; furniture - 302;equipment - 902; teaching materials - 802; fellowships - 95Z; experts - 902;and consumables - 502.

B. Financing

4.5 The proposed loan of US$20.8 million would finance 902 of totalproject cost. This level of cost sharing is based on the increasing need ofPNG for external assistance which is partly due to the recent oil priceincrease as PNG is an oil importing country. The Government would beresponsible for the remaining 102 or US$2.3 million. Retroactive financingamounting to US$0.7 million would be provided under the loan for expendituresincurred after December 1, 1990 for civil works, equipment, fellowships andconsultant services.

Table 4.3: FINANCING PLAN

Category of expenditure Government Bank Total---------- US$ million ----------

Civil works 0.7 2.6 3.3

Furniture, equipment andteaching materials 0.5 3.1 3.6

Fellowships and training - 9.5 9.5

Consultants - 5.6 5.6

Consumables and supplies 0.6 - 0.6

Overseas family allowances 0.5 - 0.5

Total 2.3 20.8 23.1

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Recurrent Expenditures

4.6 The project would not generate any significant additional recurrentexpenditures. The only incremental recurrent expenditure generated when theproject is fully operational would be consumable materials and supplies forAdcol. These would amount to about US$0.1 million per year which is equiva-lent to about 3 percent of Adcol's recurrent budget for 1990. This additionalexpenditure could be accommodated by Adcol without difficulty.

C. Project Management and Implementation

4.7 The implementation schedule is shown in Annex 9. The projectcomponents would be managed by the respective agencies which have functionalresponsibilities in the fields concerned: DPM, DLE and Adcol. A ProjectCoordinating Committee (PCC), with suitable terms of reference, has beenestablished by the Department of Personnel Management (DPM). It is chaired bythe Secretary of DPM, and its members include the Secretaries of DLE and theDepartment of Finance and Planning (or their nominees), the Director of Adcol,the Director, Office of International Development Assistance, and the FirstAssistant Secretary (FAS) of the Manpower Development, Training and ResourceDivision of DPM. The PCC would be responsible for the overall coordination ofproject implementation, provide directives on policy issues and resolve majorproblems which might arise during project implementation. The PCC wouldperiodically review progress in the implementation of all the components.During negotiations. the Government gave an assurance that the PCC wouldremain operational throughout the project implementation period. Theorganizational structure for project coordination and management is shown inAnnex 10.

4.8 The Project Manager, who would be responsible to the Secretary ofDPM (the Chairman of the PCC) for the overall coordination and management ofthe project, has been appointed and would be retained throughout the projectperiod. The manager, whose terms of reference have been agreed to by theBank, would be responsible for coordinating, monitoring, reviewing andevaluating project activities, loan administration, including disbursements,preparing consolidated semiannual progress reports and Part II of the projectcompletion project, arranging for annual audits of project accounts, routinecorrespondence and reporting to the Bank, and for ensuring that all theproject activities are implemented in accordance with the plans agreed to.The manager would assist in the preparation of annual work plans and budgets,procurement of works, goods and services and coordination and supervision ofconsultant services. The manager would be provided with necessary administra-tive support by DPM and her salary would be financed under the project.

4.9 The First Assistant Secretary of MDTRD would be responsible forimplementing the DPM component (strengthening the capacity of DPM toeffectively implement the NTP for the public sector) and for the overseasfellowship program. In the context of implementing the overseas fellowshipprogram, the FAS would cooperate with the departments participating in thefellowship program. Management of the DLE component, which would strengthenthe capacity of DLE to implement the NTP for the private sector, would be theresponsibility of the Employment and Training Division of DLE. ETD would be

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responsible for planning, budgeting, procurement of services and monitoring ofthe component's activities. It would also be responsible for staff develop-ment and tra!aing of DLE staff. The Management Services Division of DLE wouldbe responsible for financial administration of the component and accountingstaff of the division would be assigned to assume this responsibility. TheAssistant Secretary of ETD has been designated project manager for the DLEcomponent with terms of reference acceptable to the Bank.

4.10 The Director of Adcol would be responsible for management andimplementation of the Adcol component including the four RTCs. The Directorwould be supported by an implementation committee, headed by a projectmanager, appointed from existing staff, and consisting of representatives fromthe Administration Branch, and the Research and Development Braich of Adcol,the Department of Works and the RTCs. The committee would be responsible forthe preparation of annual plans and budget, financial administration, procure-ment of works and services, coordination and supervision of expert services,monitoring and evaluation of the component's activities and for coordinationwith DoW for civil works. Civil works would be managed by DoW. DoW is atpresent successfully managing all civil works included under the secondaryeducation project (Ln. 2395-PNG) and has the capacity to manage the worksincluded under the proposed project. The existing staffing of Adcol would beadequate to implement this component. The implementation committee with suit-able terms of reference has been established and the project managerappointed.

4.11 The proposed implementation period is six years (Annex 9). To allowsufficient time for submission of final withdrawal applications following thescheduled completion date of March 31, 1997, the Closing Date would beMarch 31, 1998. Due to the relative inexperience of project institutions andthe complexity of project design, above-average supervision coefficients ofabout 15 staff-weeks per year would be required in the first 3 - 4 years ofproject implementption. The Bank would supervise the project around March andSeptember in each year, which would coincide as far as possible with thepreparation of the semi-annual progress reports (para. 4.20). A third missionwould be scheduled as necessary. Overall implementation would be theresponsibility of the task manager who would be assisted by a projectarchitect to handle civil works procurement and an operations officer tooversee the procurement of expert services and fellowships.

Status of Project Preparation

4.12 Physical inputs required for the upgrading of the main campus ofAdcol and the four RTCs have been identified. Equipment needs, includingcomputer hardware and software, have also been identified together withconsultant services necessary for reorienting course structure and forstrengthening the management of Adcol. Equipment specifications and standarddesigns and bidding documents for civil works are available. Overallfellowship requirements have been identified and the detailed first-yearprogram has been prepared. Consultant services for the institutionalstrengthening of DPM and DLE have been identified. Project managementprocedures and staffing have also been agreed upon. Draft terms of referencefor consultant services have been prepared and are acceptable to the Bank.

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Procurement

4.13 Procurement arrangements are summarized in Table 4.4 and procedureswould be as followss

(a) Civil works (estimated value US$3.3 million) would comprise renova-tion and upgrading of buildings and expansion of housing of ,.he maincampus of Adcol and the RTCs in four provinces. Individualcontracts for specific locations ranging from less than US$100,000equivalent to US$l million would not attract foreign bidders. Localconstruction contractors are available in PNG. Contracts for civilworks would thus be awarded on the basis of local competitivebidding (LCB) procedures accept&ble to the Bank.

(b) Equipment, furniture, teaching materials and consumables. Equip-ment, would be grouped, to the extent practicable, to facilitatebulk procurement, and bid packages exceeding US$100,000 equivalent(estimated value US$2.0 million) would be awarded in accordance withBank guidelines for international competitive bidding (ICB).Equipment in packages not exceeding US$100,000 equivalent andfurniture (estimated value US$0.8 million) would be procured inaccordance with local competitive bidding (LCB) proceduresacceptable to the Bank. Items of less than $25,000, up to anaggregate of US$0.2 million, may be purchased by shopping on thebasis of at least three competitive price quotations from supplierseligible under Bank guidelines. Books and teaching materials(estimated value US$0.6 million) would be procured in accordancewith Government regulations which are acceptable to the Bank.Consumables (estimated value US$0.6 million) would be procured inaccordance with government procurement procedures which areacceptable to the Bank.

(c) -The major expenditure for fellowships would comprise actual costsfor tuition, international travel and authorized allowances inaccordance with the agreed unit costs. Fellowship placements wouldbe made in accordance with standard Government procedures which areacceptable to the Bank.

(d) ConsultancZ services financed under the Bank loan would be procuredin accordance with Bank guidelines.

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Table 4.4: PROJECT EXPENDITURE BY PROCUREMENT CATEGORY

TotalCategory of expenditure ICB LCB Other /a N.A. cost

---------------- US$ million ---------------

Civil works - 3.3 - _ 3.3(2.6) (2.6)

Furniture, equipment andteaching materials 2.0 0.8 0.8 - 3.6

(2.0) (0.5) (0.6) (3.1)

Fellowships and training - - - 9.5 9.5(9.5) (9.5)

Consultants - - 5.6 - 5.6(5.6) (5.6)

Consumables and supplies - - 0.6 - 0.6(0.0) (0.0)

overseas family allowances - - - 0.5 0.5(0.0) (0.0)

Total 2.0 4.1 7.0 10.0 23.1(2.0) (3.1) (6.2) (9.5) (20.8)

/a Other procurement procedures include: (a) international and localshopping; (b) direct purchase after negotiations for best discounts forbooks and teaching materials; and (c) consultant services.

NOTE: Figures in parentheses are the respective amounts to be financed by theBank.

4.14 Prior Bank review would be required for all technical assistancecontracts and annual fellowship programs financed under the Bank loan, and forprocurement documentation and contracts for procurement of equipment awardedon the basis of ICB. This would represent about 80 percent of the total loanamount. Analyses of bids and recommendations for awards for all civil workscontracts awarded under LCB would be subject to post-review by the Bank.

Disbursements

4.15 The proposed loan would be disbursed over a period of seven yearswhich is in line with the standard disbursement profile of 7.5 years for Bankprojects in Papua New Guinea. Disbursements (Annex 11) are expected to becompleted by the Closing Date of March 31, 1998. Disbursements would be made

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on the basis of: (a) 802 of civil works expenditures; (b) 1002 of foreignexpenditures for directly imported equipment, furniture and teachingmaterials, 1002 of the ex-factory costs of locally manufactured goods, and 75?of the costs of other items procured locally; (c) 1002 of the cost ofconsultant services; and (d) 1002 of the costs of fellowships, and training.

4.16 Disbursements for civil works, equipment, furniture, books andmaterials costing less than US$100,000 equivalent would be made against state-ments of expenditure (SOEs). Documentation supporting these SOEs would beretained by DPM and DLE for all project institutions and made available forreview, as requested, by visiting Bank missions. All other expenditures wouldbe fully documented. DPM and DLE would be responsible for preparingwithdrawal applications which, following review and processing by DFP would besubmitted to the Bank.

4.17 In order to expedite disbursements, the Government would establish aSpecial Account at the Bank of Papua New Guinea. It would be maintained inkina with an authorized allocation of the kina equivalent of US$1.0 million,the estimated average of four months' expenditures, and the account wouldcover all categories of expenditures financed by the Bank and be used for bothforeign and local expenditures.

Monitoring and Evaluation

4.18 Implementation of project activities would be monitored closelythrough semi-annual progress reports to the Project Coordinating Committee andto the Bank around March and September in each year. Specific monitoringindicators would be included to cover the implementation of the overseasfellowship program for each year of the project. These would include numbersof fellowships awarded and completed, participation of women, type of program,field of study and re-entry plans. Long-term evaluation of the on-the-jobperformance of returned fellows would be carried out through the staff perfor-mance appraisal procedures that DPM currently uses as part of its staffdevelopment procedures.

Accounts, Audits and Reporting

4.19 Separate project accounts would be maintained by the implementingunits in DPM, DLE and Adcol. During negotiations, the Government gaveassurances that: (a) each unit would maintain accounts in accordance withsound accounting practices and that project accounts and separate accounts ofstatements of expenditure would be prepared annually by the implementing unitsand cousolidated by DPM for audit by independent auditors acceptable to theBank; and (b) certified copies of the audited accounts and financial state-ments for each financial year, together with the auditors' reports would besubmitted to the Bank as soon as they are available but not later than ninemonths after the end of each financial year. The Government would submitsemi-annual progress reports to the Bank around March and September in eachyear, provide status reports to visiting missions, and within six months ofthe Closing Date, submit Part II of the project completion report.

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D. Environmental Impact

4.20 The project will not have any negative impact on the environment.The fellowship component will place strong emphasis on natural resourcesmanagement, environmental policy and conservation. Fellowships will beawarded to policy and planning personnel in key departments in these areassuch as Agriculture, Forestry, Minerals and Energy, Environment and Conserva-tion, etc. The project would strengthen the ability of these departments tocontribute to the development of the country's natural resources in anefficient, environmentally sound manner.

E. ImPact on Women

4.21 Overall, women account for only 33 percent of enrollments in higher-level training courses and this has led to their under-representation inhigher-level jobs. The project would benefit women through the award offellowships and special attention will be given to maximizing their participa-tion in the fellowship pr_gram. This will ultimately enhance their qualifica-tions and promotional opportunities and expand the employment of women intechnical fields. The project, through assistance in implementing the NTP,especially the development of the Three-Year Training Plans, will enable thetraining needs of women to be more clearly identified and permit a more effec-tive matching of needs with training opportunities.

V. BENEFITS AND RISKS

A. Benefits

5.1 The project would assist in the effective implementation of the NTP.This would lead to higher quality in-service training in the public sector,which would be of greater relevance to clients' needs and more efficientlydelivered. The project would also increase the supply of trained high-levelpersonnel which, in turn, would improve the management, planning and technicalcapacities of key agencies thereby enhancing their performance as agents ofdevelopment. The project would lead "o more effective training in the privatesector. In the longer term, the projet.t would accelerate the localizationprocess.

B. Risks

5.2 The major risk associated within the project concerns the capacityof the relatively inexperienced project institutions to implement the project.The risk will be reduced through the establishment of a high-level ProjectCoordinating Committee and the appointment of an experienced project manager.

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VI. AGREEMENTS REACHED AND RECOMMENDATION

6.1 The Government has agreed to the followings

(a) consultants to assist DPH would be appointed as follows: traininganalyst and information technologist by Ju.j 31, 1991 (para. 3.4);staff development and training advisor by July 31, 1991 (para. 3.5);the NTC's management advisor and information technologist byJuly 31, 1991 and the staff development and training advisor byJanuary 31, 1992 (para. 3.6);

(b) the timing of recruitment of the trainee systems analyst for DLEwould permit an appropriate period of overlap with the expertsystems analyst (para. 3.9);

(c) consultants to assist DLE would be appointed as follows: laboreconomist by July 31, 1991 (para. 3.7); information specialist byOctober 31, 1991 (para. 3.8); systems analyst by October 31, 1991(para. 3.9); and organizational development/management trainingspecialist by July 31, 1991 (para. 3.10);

(d) consultants to assist Adcol would be appointed as follows:training-of-trainers' advisor by October 31, 1991 (para. 3.13);information technologist by July 31, 1991 (para. 3.14); expert oninstitutional autonomy, management advisor and course developmentadvisor by July 31, 1991 (para. 3.16);

(e) age and position levels would not be applied rigidly to womencandidates for policy and planning fellowships so as to ensure thatyounger, more junior vomen with high potential would be consideredas applicants (para. 3.19);

(f) special attention would be given to identifying women candidates forfellowships in technical fields. (para. 3.20);

(g) for students being sponsored by a department, a written undertakingwould be given by sponsoring departments that fellows being financedunder the project would return to their previous positions or topositions within the departments which were relevant to the trainingprograms undertaken by the fellows (para. 3.21);

(h) the PCC would remain operational throughout the project implementa-tion period (para. 4.7);

Mi) annual accounts would be maintained by each project unit andconsolidated for audit by DPM (para. 4.19); and

(j) audit reports would be submitted to the Bank within nine months ofthe end of the financial year (para. 4.19).

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6.2 Subject to tihe above conditions, the project constitutes a sultablebasis for the Bank loan of US$20.8 million equivalent to Papua New Guinea fora term of 20 years, including 5 years of grace at the Bank's standard variableinterest rate.

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ANNEX= 1Page 1 of 3

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

Enrollments and Staffing in Training Institutions(1987)

Student/Enrollmenmts Teaching Teacher

Training Institutions /a Staff /b Ratio

UNIVERSITIESPNG University of Technology 979.5 136.0 7.2University of PNG - Waigani 2,049.4 144.0 14.2University of PNG - Taurama 155.8 35.0 4.5University of PNG - Goroka TC 395.0 52.0 7.6

Sub-total 3,579.7 367.0 9.8

TECHNICAL COLLEGESArawa Technical Collerge 198.5 22.0 9.0Goroka Technical College 206.0 24.0 8.6Lae Technical College 400.7 40.0 10.0Madang Technical College 126.0 18.0 7.0Mt.Hagen Technical College 269.2 31.0 8.7Port Moresby Sec.College/ 201.0 15.0 13.4Business School

Port Moresby Technical College 337.5 na naRabau. Secretarial/Technical 60.0 4.6 13.0College

Sub-total 1,798.9 154.6 9.5

TEACHERS COLLEGESBalob Teachers College 310.0 20.0 15.5Dauli Teachers College 149.0 10.2 14.6Gaulim Teachers College 202.0 13.0 15.5Holy Trinity Teachers College 230.0 16.9 13.6Madang Teachers College 363.0 26.0 14.0OLSH Teachers College 149.0 15.2 9.8St.Benedict's Teachers College 230.0 12.2 18.9St.Paul's Teachers College 149.0 11.0 13.5Port Moresby Inservice Teachers 152.0 20.0 7.6College

Sub-total 1,934.0 144.5 13.4

/a Equivalent full-time students./b Equivalent full-time teaching staff.

Note: Enrollment data for 1987 are incomplete. Using data in previousyears as a guide, total EFTS enrollment is about 9,800.

Source: Commission for Higher Education

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ANNEX 1Page 2 of 3

Enrollments and Staffing in Training Institutions(1987)

Student/Enrollmenmts Teaching Teacher

Training Institutions /a Staff /b Ratio

SCHOOLS OF NURSINGArawa School of Nursing 35.0 5.0 7.0APCM School of Nursing 65.0 3.0 21.7Highlands Regional School of 78.0 11.0 7.1Nursing

Lae School of Nursing 55.0 7.0 7.9Lutheran School of Nursing 95.0 10.0 9.5Mendi School of Nursing 69.0 6.0 11.5Nazarene College of Nursing 77.0 5.0 15.4Rabaul School of Nursing 60.0 5.0 12.0Sacred Heart School of Nursing 48.5 9.0 5.4Sopas College of Nursing 45.0 5.0 9.0St.Barnabas' School of Nursing 37.0 5.0 7.4St.Gerard's School of Nursing 26.0 3.0 8.7St.Mary's School of Nursing 164.8 17.3 9.5Tinsley School of Nursing 31.4 4.1 7.7Wewak School of Nursing 20.0 4.4 4.5

Sub-total 906.7 99.8 9.1

PARA-MEDICAL COLLEGESCASH (Madang) 125.0 33.1 3.8CASH (Port Moresby) 181.0 34.5 5.2

Sub-total 306.0 67.6 4.5

PRIMARY INDUSTRY COLLEGESHighlands Agricultural College 53.8 11.0 4.9Popondetta Agricultural College 51.0 14.0 3.6Sepik Agricultural College 110.0 na naVudal Agricultural College na na naNational Fisheries College 53.0 8.0 6.6PNG Forestry College 96.0 10.0 9.6Timber Industry Training College 32,0 na na

Sub-total 395.8 43.0 5.9

/a Equivalent full-time students./b Equivalent full-time teaching staff.

Note: Enrollment data for 1987 are incomplete. Using data in previousyears as a guide, total EFTS enrollment is about 9,800.

Source: Commission for Higher Education

- 38 -

ANNEX IPage 3 of 3

Enrollments and Staffing in Training Institutions(1987)

Student/Enrollmenmts Teaching Teacher

Training Institutions a/ Staff b/ Ratio

OTHER GOVERNMENT INSTITUTIONSAdministrative College of PNG 318.4 53.0 6.0Civil Aviation Training College na 17.0 naCIS Staff Training College 1.2 10.0 -

Customs Training Center na 3.0 naDefence Force Training na na naElcom Training College na na naFire Services Training Center na na naLegal Training Institute 38.0 2.0 19.0National Arts School 97.0 11.0 8.8National Postal & Telec. 85.0 64.0 1.3Training

PNG Maritime College na na naPolice College Bomana na na na

Sub-total 539.6 160.0 4.1

TOTAL 9,460.7 1,036.5 8.8 Lc

La Equivalent full-time students./b Equivalent full-time teaching staff.,L Does not include Other Government Institutions.

Note: Enrollment data for 1987 are incomplete. Using data in previousyears as a guide, total EFTS enrollment is about 9,800.

Source: Commission for Higher Education

PAPUA NEW GUINEAPUBUC SECTOR TRAINING PROJECT

PLANNING AND COORDINATION OF TRAINING

<30VERN(NATIONAL EXECUTIVE

PAE48ERVICE IN-SERVICE

C8SIONrFOR mNATONALTRAININGMOMMMMAMM ~~~~~~~~~COUJNCIL

| TRARINING | OF PERONEm OF LBR AND||INSY1TUTIONSMANAGlEMENT EMP LOYMENT

PUBLIC ECTOf L PFtVATE jDEPATENT8 SECTOR

FIFAM ~ ~ ~ ~ ~

PAPUA NEW GUINEAPUBLIC SECTOR TRAINING PROJECT

Organization Chart

DEPARTMENT OF PERSONNEL MANAGEMENT

SECRETARYDEPARTMENT OF

PERSONNEL MANAGEMENT

EXECUTIVE EXECUTIYESECRETARY OFFICER

EXECUTIVEOFFICER

FAS1FSWPOVGER FAS _ MANPOWER

PLANNING & I EVELOPMENT,ORGANISATION IREC TRAININGDEVELOPMENT _____C& RESOIRCE

SER ASS PRINC. ADVISER ASSISTANTPRING. ADVISER REGONAL ASSISTANT I PRINO. A SECRETARY

MiPOWER POUCY MANAGER SECRETARY I PAY POLICY MWPOWER DEVELOP,DEVELOPMENT & PERSONNEL (SOUTH) POICY COORD. & I DEVELOPT & TRAINING &

CONTROL _CENTRALISATION CONTROL RESOURCE

ASS. REGOA.SITN ASSISTANTPICPAMTF

SECRI ARSECRETARY R SECRETARY DEVELOPMENTORGANISATIONMAAGERFINANCE & I INDUSTRIALOFIE

DEEANAOMENT PEFSONNEL (NORTH) PERSONNEL RELATIONS

ASSISTANTPRINC. ADVIISER REGIONAL INTERNAL SECRETARY PRINC. MANPOWERMANAGEMENT MANAGER - (YSEAS STAFFING PLACEMENTEFFICIENCY PERSONNEL NGO ~ AUDTOR & CONTROL OFFICER

____________ ___________ ~~ ~~~ADMINISTRATION _ _ _ _ _ _

REGIONAL 1MANAGER I

PERSNL (H.LANDS) |

FAS - FbIst Assita Soety

IREC - hiduss Relanions and Enyoye Conion EIQSadSW469SS

- 41 -

ANNEX 4

Page 1 of 2

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

TECHNICAL ASSISTANCE PROGRAM

Summarv of Consultant Services - bv Comoonent and Year

(staff-months)--------------------------------------------------------- __------------------__-----------------------------

Component 1991 1992 1993 1994 1995 1996 Total------------------------------------------------------------------ __---------__-----------------------------

I. Imolementation of National

Training Policy

Deot. of Personnel Management

For DPM Capacity Building:

-Information technologist 6 6 1.5 1.5 - 15

-Training analyst advisor 6 3 1 1 - - 11

-Staff dev. & training advisor 6 12 12 6 4 - 40

-Project manager 12 12 12 12 12 12 72

For National Training Council:

-Information technologist 6 6 1 1 - - 14

-Staff dev. & trainLng plan consultant 4 1 1 - - 6

-Management advlsor to NTC Secretariat 6 12 6 1.5 1.5 - 27

Subtotal 42 55 34.5 24 17.5 12 185

Deot. of Labor and Emnloyment

-Labor economist 6 12 - - - - 18

-System analyst/trainer - 12 6 3 3 - 24

-Organization development/management trainer 6 12 10 4 4 - 36

-Information specialLst/librarian - 12 12 - - - 24

Subtotal 12 48 28 7 7 0 102

II. Strenathenina of the Administrative

College

-Course Development Unit advisor 6 12 6 1.5 1.5 - 27

-Training of Trainers advisor - 12 1.5 1.5 - - 15

-Autonomy plan consultant 4 - - - - - 4

-Management advisor to administration 6 12 2 1.5 1.5 - 23

-Information technologist 6 12 6 1.5 1.5 - 27

-Short-term advisors - 5 5 5 5 - 20

Subtotal 22 53 20.5 11 9.5 0 116

TOTAL 76 156 83 42 34 12 403

________________________________________________________________________________________---_---------------

- 42 -ANNEXK 4

Page 2 of 2

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

TECHNICAL ASSISTANCE PROGRAM

Summarv of Overseas Fellovships by Year and Level

(study-year)

Total

No. of Study

ComponentlLevel Courses Years ic 1 1992 1993 1994 1995 1996

OVERSEAS FELLOWSHIP PROGRAM (OFP)

Strenathen Poliey and

Plannunm Canacity:

- Masters degrees (2-yrs) 40 80 8 16 16 16 16 8

- Graduate diplomas (1-yr) 30 30 5 5 5 5 5 5

- Short courses/job attachments NA 30 5 5 5 5 3 5

Subtotal 140 18 26 26 26 26 18

InDrove Soecialised Skills

- BA degrees (4-yrs) 20 80 8 16 20 20 12 4

- Short-term courses (1-yr) 20 20 4 4 4 4 4 0

Subtotal 100 12 20 24 24 16 4

Subtotal (OFP) 240 30 46 50 50 42 22

DEPARTMgT OF LABOR & EMPLOYMNT

- System analyst (2-yrs) 1 2 - 1 1 - - _

ADMINISTRATIVE COLLEGE

- Masters degrees (2-yrs) 13 26 3 6 6 6 4 1

- Short courses/job attacbments NA 25 - 5 5 5 5 5

Subtotal S1 3 11 11 11 9 6

TOTAL 293 33 58 62 61 51 28

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

PAPUA NEW GUINEAPUBUC SECTOR TRAINING PROJECT

Organizatlon Chart

DEPARTIENT OF LABOR AND EMPLOYMENT

SECETARYr________ -…FOR… __________

I IOUR AND IOCHIEF IL u . , ~~~~~~~~~~~~~~~~COMMISSIONER

: CONCIU^ O~~~~~~EPUTY l OFFIENUlOFT1L1]A SECRETARY CIP

ASISrDMT IS811ANT AI ECREAI ER ET O II LIC F-EEA-C LABOUR ADIITAlNAND TANN

AS8TANT AS T TANT ASlMATEI WTARY SECRETARY SECRETARY ATKL _ pj PE"T

l DUSTRAL (ELA B AE SERVICS ELLOYMENTSERV1CE SCHEME

L ~ ~ ~ ~ ~~~~~(9 _RV40A ML (Ml E RW8 ALT. SCHEME

SERICE

EKMNo3D

I9

- 44 -

ANNEX 6

IL

Z CC

It N i 'I g3it!4~~~~~~~~4

2 & ~~~~~~~~~~~~I IIi i

ILtWW

PAPUA NEW GUINEAPUBLIC SECTOR TRAINING PROJECT

Summaty Account by Project ComponentKina

DEPT.LAB Physical PrLce

DEPT.PER OR & STRENGTH OVERSEAS ContLngencies Cont ngencles

SONNEL EMPLOYME ENING OF FELLOWSH ---------------------------------

hANACT. NT ADCOL IP PROC. Total X Amount X Amount

I. INVESTMENT COSTS

A. CIVIL WORKS 0 0 2769 0 2769 5 138 12 329

B. FURNITURE 0 38 233 0 270 5 14 15 Al

C. EQUIPMENT 53S 294 1370 0 2200 5 110 9 201

D. TEACHING MATERIALS 100 0 413 0 S15 5 26 12 63

E. TECHNICAL ASSISTANCE1. PROJECT IMPLEMENTATION 617 0 0 0 617 10 62 13 78

2. ORGANIZATION IMPROVEMENT 1232 1244 1413 0 3888 10 389 9 355

3. FELLOWSHIPS £ TRAINING 750 43 1135 5570 7498 6 471 17 1255-------------------------------------------------------------------------------------------- Vl

Sub-total 2599 1286 2548 5570 12003 8 922 14 1688

TotaL INVESTMENT COSTS 3234 1618 7335 5570 17757 7 1209 13 2322

II. RECURRENT COSTS

A. CONSUMULLES I SUPPLIES 0 0 440 0 440 5 22 24 106

B. FAMILY ALLOWANCE OVERSEAS 0 0 0 376 376 5 19 18 66---------- _------------------------------------------------------------__----__-------------

Total RECURRENT COSTS 0 0 440 376 816 5 41 21 172

Total BASELINE COSTS 3234 1618 7775 5946 18572 7 1250 13 2494

Physlcal Contingencles 292 145 516 297 1250

Price Contingencies 378 145 974 996 2494 6 152

Total PROJECT COSTS 3903 1909 9265 7239 22316 6 1402 11 2494

Taxes 0 0 0 0 0 0 0

Forelgn Exchange 2841 1684 5931 6840 17296 6 1103

Values Scaled by 1000.0

PAPUA NEW GUINEAPUBLIC SECTOR TRAINING PROJECT

Rima

Suumary Accounts by Year

Base Costs Foreian Eebnange

1990191 1991192 1992193 1"93194 1994195 1995196 1996197 Total I Amount

I. INVESTMa3f COSTS

A. CIVIL WORKS 520 937 1141 171 0 0 0 2769 30 831D. PURJLITURB a 30 223 10 0 0 0 270 30 81C. EQUIPMENT 252 794 866 167 So 40 30 2200 90 19780. TEACHING KATERIALS 0 169 169 132 25 20 0 515 80 412E. TECHNICAL ASSISTANCE

1. PROJECT INPLW4ENTATION 46 149 149 149 103 1O 10 617 90 5552. ORGANIZATION IMPROVEMENT 415 1757 1llS 367 235 0 0 3888 90 34993. FELLOWSHIPS & TRAINING 1S5 946 1469 1511 1490 1258 669 7498 8S 6598

Sub-total 616 2852 2734 2027 1827 1268 679 12003 89 10653

Total INVESTMENT COSTS 1396 4791 5134 2506 1902 1328 709 17757 79 13954

II. RECURRENT COSTS

F. CONSUMABLES & SUPPLIES 0 40 80 80 80 80 80 440 50 2200. PAMILY ALLOWANCE OVERSEAS 0 52 61 61 61 61 80 376 95 357

Total RECURRENT COSTS 0 92 141 141 141 141 160 816 71 577

Total BASELINE COSTS 1396 4873 5274 2647 2043 1469 869 18572 78 14531Physlcal Continsencies 101 356 347 176 136 88 A7 1250 80 995Price ContLngencies 39 355 646 421 411 368 254 2494 71 1770

Total PROJECT COSTS 1536 5585 6267 3243 2590 1925 1171 22316 78 17296

Taxes ° o 0 o 0 0 0 0 0 0Foreign Exchange 920 4222 4508 2696 2259 1645 1046 17296 100 17296

Val_____________________e________________Sc________________le___________________________y___________1000.0____________________________

Values Scaled by 1000.0

00

* 47 -

PAPUA miw GUINEA Paea 1 of 3

PUILIC SECSOl TRAINING PROJECT

Imolemmntetlon schdubL

| aBank FY I 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998

| Calendar/PHG Fiscal Yosr 119901 1991 | 1992 1 1993 | 1994 | 1996 | 1996 | 1997 1981

| EPLfMlESnATION OP T28 WAT L TRAXUZNG POLICY <05191-gstlmsted Effecrivensss Cmpletjon Dtte-03/97) I II ---------------------------- -- i - I | | Closing Date-03198>l|Department of Pareann LMen^e.z nt | I I I I I I |

| Project Manaser ppointed c | * I I I I I II Project Coordinating Comittee **-I *------------------------------------------ I

r ablishad vill be mintained I I I .1 I I I I I| Dwelop & *stab. database system -n-1 I I I I I I| Implement the database system *----------------------------------------------------------------------

Set up & m oe apration.l the I 1RC------------------ I I I I I | mplemntatiLon I *----------------------------------------------------------I-------

Staff deovlopmnet-train SDO staff 1--------------------------------| to nalyso trainingnedssnd |

| improve trainingplans I | | | | |

Implesentation i ------------------------------------------------------------------------

I ~ ~ ~ ~~I I i I I I I II| Consultsnt servicee

|For DF II Information techmolog1st I 1------------- *

T Yraining. inlyt advisor | 1-------- I _ _

| Staff dv. & training dvisor j*----------------------------- ----

| Project manager *--------------------------------------------------------------------I-----------I-I-|

F Por National Trainlng Council:

I 1nformation tebhnolgoist 1------------ -

| Staff dovw.trng plan consultant | I *---I II -s I I Isngt advisor to NTC Secretariat 1------------------------- -- i

|Departmnt of Lobor nd Employment I I I I I I I I I

| Mnag.r for DLE componnt deLs. 4 I I | Develop & astab. database ystem -----------

L|opiemntation ------------------------------------------------------------------------

| Dev.&*st^b.iateg.microfichs ytem ------------ I I I I IImplementstion *-------------------------------------------------------------------

| D-e¶lop & estabish an info. unitt ------------ I IImnplementation ----------------------------------------------------------------

| Staff trainins (mangemnt) -1--- - - - - - ------------

I I ~ ~ ~ ~ ~ ~ ~~I I i I I I I I| Consultant services: |

| Labor econaomst --a---------- --

system sniyst/trainsr i ----------------

Orgn d.vlmnasemet trainer -I -------------- ----------- - I - -- I I Infoaiation upcialistllibrarti ------------------------ I

- - - - - - - - - - - - - - - - - - - - - - - - - - -I - - - - - -

. 48 -

Page 2 of 3

PAPUA NI GUnMA

PUBLIC SECSOR TAIHING PROJECT

Tmple0entatton Schedule

Bank FY | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998

------------------------------------------------------------------------------------------------------- -------------------------

CslendarIPNG Fiscal Year 119901 1991 1 1992 | 1993 1 1994 1 1995 1 1996 1 1997 1981

3TRENGiHENxNG OF TSE ADMINISTRATXVE CoLLEGE <05191-Estlmated Effectiveness C Cocpletion Date-03197> I t

------------------------------------------- __ I I I I I Closina Date-03/98>1Establish petm. GavrnLag Council | ------- I Appoint Adcol projectmanagar a I i t | | |t

EstablLsh Adcol impl. coamLttee I * I I 1 1 I I I|Eamine & prepare plan on autonomy| *----- - a* I I i

Implementation of utonomy plan I I *______________________----- - -- ------------

Dev.establish internal mnSt system 1--------a1 I I I I IImplementation of management plan --------------------------------------------------------------------

Strengthen Course Design Unit (CDU): I I I | I I I ITMNcapaoitY building ----------- ) iCurriculum dvelopment -----------a)

Course selection *-----------* ) on-going thereafter -----------------------------------------

Information network -----------* )

| onitortng evluation -1* I I I I I Staff developsent units 1 *--- - C) I t I I

Staff Dvelopment Planngng I I i I I I I i ICareer paths for Adcol staff *----------

In-hous etraining for st-ff I---------- Strengthening Research & Pub. Unitl *--------- - * - I t I I t

Consultant servicesI

CDU advisor -----------------------

Training of trainers' advisor I a---- - I t

Autonomy plan consultant I i*--- I I t I I I t

Management advtsor to admln. i------------------ - I Information technologist -----------------------

Short-term advisors I t *----t i I -- II-

|TE oVERSEAs ELLOWsEIPPROGRAmf I I I I I I I I

Selection of candtdatea I _ - I -_ ---- I --- i I t

Placement & program implementationj a---------------------------------------------------------------------------I

Monitoring, eval.& re-entry plans ----------------------------------------------------------------------------

I - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - --I t I I I - - - I

- 49

amPage 3 of 3

PAPUA NEW GUITEA

PUBLIC SECTOR TRAINUIr PROJECT

Imol.mentat-on Schedule

Bank pn 1991 | 1992 | 1993 | 1994 | 1995 1996 i 1997 | 1998

CalendarlPNG Fiscal Year |19901 1991 | 1992 1 1993 1 1994 | 1995 j 1996 | 1997 1981

I l <05191-Eattmted Effectiveness | Co*letn Date-03/97> I

| PHYSICAL FACILITIES I I I I I | | Closing Date-031986>1

- |CLtil vorks (Adcol) I I I I I I I I |

m'ain campusIIIIIIII II Design & drawings t II^| Bidding doc preparation I*__*| Bidding & bid "aluation -- *_______

I Contract wa rds a*n signing I h *__*

Construction - -*__________________

| Regional Tra ln-a Centers

Design & drawtngs a I---I| Bidding docs preparation | * | | | | |

| Bidding I bid evluation I a *_____*

| Contract awards and sIgning M | a--aConstruction - -a----------

I I I I I I I I i I|Equipmentt

E Bquipment ILsts, specifications | ------- II BIdding documents preparation | *- | | |

| Bidding & bid evaluation -I *-_____* |

I Contract avards ndLAns g | I I*-ngDelivery & installtton - -| *--- …------

------- - - - - - - - -l~~ I I I I I I I I

PAPUA NEW GUINEAPUBLIC SECTOR TRAINING PROJECT

Organization Chart

PROJECT MANAGEMENT AND CORDINATION

| SECRETARY SECRETARY

PROJECT COORDINATING COMMITTEECHAIRED BY: SECRETARY, OPM.

SEC'YS (OR NOMINEES) F ORLE, DFPAOCOL lIRECTOR, DIRECTOR,OIDA,

FASIMOTRD

I r~__ __IDEPT. OF LABOR DEPT. OF PERSONNEL AMNSRTEOP.O

MANAGEMENT COLLEGE WORKS

rTHE OVERSEASir|FELLOWSHIP RTCsPROGRAM

EKIW47668 o

- 51 -

ANNEX 11

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

Estimated Schedule of Disbursements

StandardAmount Cumulative Disbursement

IBRD Fiscal Year per ------------------ Profile for Semesterand Semester Semester Amount % PNG Projects

----(US$ million)---- ( % )

1992lst (Jul 91-Dec 91) 1.0 1.0 5 1 12nd (Jan 92-Jun 92) 0.6 1.6 8 4 2

19931st (Jul 92-Dec 92) 1.4 3.0 14 8 32nd (Jan 93-Jun 93) 1.4 4.4 21 14 4

19941st (Jul 93-Dec 93) 2.0 6.4 31 23 52nd (Jan 94-Jun 94) 2.0 8.4 41 33 6

19951st (Jul 94-Dec 94) 2.0 10.4 50 41 72nd (Jan 95-Jun 95) 2.0 12.4 60 50 8

19961st (Jul 95-Dec 95) 1.9 14.3 69 58 92nd (Jan 96-Jun 96) 1.9 16.2 78 69 10

19971st (Jul 96-Dec 96) 1.5 17.7 85 77 112nd (Jan 97-Jun 97) 1.5 19.2 92 84 12

19981st (Jul 97-Dec 97) 0.8 20.0 96 92 132nd (Jan 98-Jun 98) 0.8 20.8 100 98 14

100 15

Closing Date: March 31, 1998

52- ANNEX 12Page 1 of 2

PAPUA NEW GUINEA

PUBLIC SECTOR TRAINING PROJECT

Selected Documents Available in the Project File

A. Reports and Studies Related to the Sector/Subsector

A-1 National Training Policy, DPM, January 1989

A-2 Government Administrative Reform and Improvement Program, Department ofthe Prime Minister, undated

A-3 A Strategy for Employment Promotion and Manpower Development in Papua NewGuinea, ILO/ARTEP, September, 1989

A-4 Review of Manpower, Employment Demand and Training Needs in theAgricultural Sector, Papua New Guinea, UNDP/FAO, 1989

A-5 Advisory Technical Assistance Study on Higher Education in Papua NewGuinea, ADB/CHE, April 1987

A-6 Papua New Guinea Manpower and Training Review, Dennis and Townsend,January 1984

A-7 Papua New Guinea Policies and Proepects for Sustained and Broad-BasedGrowth, Vol 2, IBRD, April 19, 1988

A-8 Public Sector Management in Papua New Guinea: An AdministrativeOverview, IBRD, June 27, 1983

A-9 Management and Training for Development: The Hombe Thesis, Reilly,Public Administration and Development, Vol. 7, pp. 25-42, 1987

A-10 'Trainingismg Revisited in Papua New Guinea, Turner, PublicAdministration and Development, Vol. 9, pp. 17-28, 1989

B. Reports and Studies Related to the Project

B-i Efficiency and Effectiveness in Public Service Training: The Case of theAdministrative College of Papua New Guinea, Turner, Administration andDevelopment, No. 25, July 1985.

B-2 The Administrative College of Papua New Guinea: A Project for Upgradingand Development, Bray, July 26, 1989

B-3 Report of Mission to Papua New Guinea: Proposed Public Sector TrainingProject, Bray, February 9, 1990

B-4 Proposed Public Sector Training Project for Papua New Guinea: Departmentof Labor and Employment, Turner, October 1989

- 53 - ANNEX 12Page 2 of 2

B-5 Ditto, Turner, February 1990

B-6 Selection Criteria for Training Programs, DPM, October 1989

B-7 Working Paper on the Upgrading and Improvement of the AdministrativeCollege of Papua New Guinea, Dobunaba, January 1990

B-8 Adcol Reference Group: Report, Billings, January 1990

B-9 Upgrading the Administrative College of Papua New Guinea, Romer andZoubi, UNDTCD, February 1990

C. Selected Working Papers

C-1 IBRD Working Paper - Civil Works and Equipment

IBRD 2273141 144 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~147 4

M A N US I PAPUA NEW G U I N EAiANS T --- £3 jPUBLIC SECTOR TRAINING PROJECT! I { MANUS | N E W / ,,° f A N DN*A Regionol Training CentersI

N E 5 | ~~~_ fR i $ /z1 a t 1 5 J:/ <W I REL£DAND U Collegeim4

anno

MI IneRoa-

Il S F P I r--~J -;7_____1______________tv < .-Z PortsIf 1 Z t°p t SAs s arc k / S a t -International Airporti I-------1 .

w ILANO / CapitarlN

E W B I r A I N \ Iat__ _- IRELAND Towns5 F p ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-Mountoinous

AreasASTISLANDS REGIONALIj ~ ~ ~ ~ ~ I--~.ITRAINING

CENT, EIR Rivers------ I -S --- ---

K --- --- …- --- --- -- District BoundariesI / Robcsvt I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~neatoa Boundaries

I' /sIt/OS 11 1 E A S N E W d R I A N-' /'W ST NEWARINAI

-NORTHERN REGIONAL -…--- --- L TPAINING CENTER O BI fI E ng I

isohanQ

HIGH`L`ANS IR'eG/ONA

VV TRAINING CENT NEWdB

/ITAI N

o - I I

N Nil- I SOUTHERN ItA I9 NEW , M IA BOUGAINVILLE

OI… E 5,, PAPAS SETV RUINEA ' I A NEW NR I r N I N

NEA .N t t 0 20 4 e,o *oo i __,___B.olo

COI ISS

Moretreod Bereis~~~ ;": NK kor, RNW F 5 F E R N 041%~~~~~~~~~~~~~

ADMINISTRATIVE CLLEGE ~ ~ I

SOUTHER REGIONAL8 A TRAINING CENTER

1

Oi PAPUA NEWGUINEA /IC N R LSnuso

NEW

45Ib..nwr,. ~ ~ ~ 12ms..I

NOVEMBER 199