Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No. 16754

IMPLEMENTATION COMPLETION REPORT

ISLAMIC REPUBLIC OF PAKISTAN

FOR

SECOND VOCATIONAL TRAINING PROJECT

June 24, 1997

Social Sector UnitPAKISTAN RESIDENT MISSION&Population and Human Resource DivisionCountry Department ISouth Asia Region

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit = Pak Rupees (Rs)US$ 1.00 = Rs. 40.00 (1997)ECU 1.00 = Rs. 46.32 (1997)Can $ 1.00 = Rs. 29.25 (1997)

German Mark 1.00 = Rs. 23.90 (1997)

FISCAL YEAR (FY)

July I - June 30

PRINCIPAL ACRONYMS USED

ATC = Apprenticeship Training CenterCIDA = Canadian International Development AgencyCMC - Center Management CommitteeCTA = Chief Technical AdviserDCA = Development Credit AgreementDMT = Directorate of Manpower & Training (Provincial)EQUIPRO = Technical Co-operation Equipment and Subcontracting Branch, ILOEC = European Economic Community/European UnionECNEC = Executive Committee of the National Economic CouncilG-I, 11, HI1 Grades of Skilled WorkersGTZ = Gesellschaft fir Technische ZusammenarbeitGVI - Government Vocational Training InstituteICB = International Competitive BiddingICR - Implementation Completion ReportIDA I lnternational Development AssociationILO = International Labour OrganizationLCB = Local Competitive BiddingLIB = Limited International BiddingM&E = Monitoring & EvaluationNSTI = National Staff Training InstituteNTB = National Training BoardNTBu = National Training BureauNTDI = National Training Development InstituteNVTS = National Vocational Training SystemNWFP = North West Frontier ProvinceO&M = Operation and MaintenancePAKPWD = Pakistan Public Works DepartmentPCR = Project Completion ReportPTB = Provincial Training BoardSBDs = Standard Bidding Documents of World BankSDC = Skill Development CouncilSSU = Social Sector UnitSTI = Staff Training CenterTA = Technical AssistanceTTC = Technical Training CenterUNDP = United Nations Development ProgramVTC = Vocational Training InstituteWETU = Women Employment & Training UnitWTTC = Women Technical Training Center

Vice President: Mieko Nishimizu

Director (Acting): Fakhruddin Ahmed

Division Chief: Barbara Herz

Staff Member: Bashir Parvez

FOR OFFICIAL USE ONLY

TABLE OF CONTENTS

Paee No.

PREFACE

EVALUATION SUMMARY .................................... i

MAIN REPORT ............................................ I

Project Identity ......................................... IProject Background ....................................... IProject Objectives and Description ............................. 1Initial Project Design and Organization .......................... 2Implementation Experience Under the Original Project ................. 3Project Restructuring Exercise ................................ 3Implementation Experience Under the Restructured Project .............. 4Component-wise Project Performance ........................... 5

Other Project Aspects ................................... 8Civil Works Implementation ............................. 8Procurement of Equipment .............................. 9Skill Development Councils ............................ 9Center Management Committees .......................... 10Social Studies Module ................................. 10

Project Results ........................................ 10Achievement of Project Objectives ......................... 10Impact of Project .................................... 10Project Sustainability .............. 1................... 11Overall Assessment .1.1............................. 11IDA's Performance ................................... 12Borrower's Performance ............................... 12Lessons Learnt ............... 13

STATISTICAL TABLES:

Table 1: Summary of Assessments .............. I ............. 14Table 2: Related Bank Loans/Credits .......................... 15Table 3: Project Timetable ................................. 16Table 4: Credit Disbursements: Cumulative Estimated and Actual ... ..... 17Table 5: Key Indicators for Project Implementation ...... .......... 18Table 6: Key Indicators for Project Operation ..................... 22Table 7: Studies included in Project ........................... 24Table 8A: Project Costs ................................... 25Table 8B: Project Financing ................................ 26Table 9: Status of Legal Covenants ........................... 27Table 10: Compliance with Operational Manual Statements ............. 30Table 11: Bank Resources: Staff Inputs ......................... 31Table 12: Bank Resources: Missions .......................... 32

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

Appendixes:

A. Last Mission Aide-Memoire of January 1996 ....................... 34B. Borrower's Contribution to ICR ............................... 62C. Co-financiers Contribution to ICR (none received) ................... 67D. Features of National Training Policy ............................ 68E. Draft Amendment in NTB Legislation ........................... 70F. Draft Amendment in Apprenticeship Legislation ..................... 71G-a. Fellowships ............. 72G-b. Consultancies ............. 74H. Features of New Curricula .................................. 77

IMPLEMENTATION COMPLETION REPORT

PAKISTAN

SECOND VOCATIONAL TRAINING PROJECT (CR 1670-PAK)

Preface

This is the Implementation Completion Report (ICR) for the Second Vocational Training Project inPakistan for which Credit No. 1670-PAK in the amount of US$ 40.2 million/SDR 36.6 million equivalentwas approved on 03/25/1986 and made effective on 04/01/1987.

The Credit closed on December 31, 1996, instead of the original closing date of June 30, 1995. Therewas one full extension of 12 months in the closing date, to June 30, 1996, and a partial further extensionof six months to allow payment for equipment ordered whose delivery had been delayed. Finaldisbursement took place on May 14, 1997 at which time a balance of US$ 7.58 Million/SDR 5.45 Millionwas cancelled. Co-financing for the project was provided by UNDP, European EconomicCommunity/European Union (EC), CIDA of Canada and GTZ of Germany.

The ICR was prepared by Mr. Bashir Parvez (SSU of SA1PK) in collaboration with Mr. Paul Blay ofSAlPH of the South Asia Region. Messrs Z.R. Maribbay and Liam Owens (Consultants) joined theCompletion Mission and assisted in the preparation of ICR. The borrower provided comments andcontributed its own assessment which is included as an appendix to the ICR.

Preparation of this ICR was begun during the Bank's final supervision/completion mission (January,1996) and completed during a special mission (March 24 - April 11, 1997). It is based on material inthe project file.

IMPLEMENTATION COMPLETION REPORT

Islamic Republic of Pakistan

Second Vocational Training Proiect

(Credit 1670-PAK)

EVALUATION SUMMARY

Introduction

1. This was the second IDA project in the vocational training sector in the Islamic Republic of Pakistan.The project was designed to complement and supplement the First Vocational Training Project (Credit1109-PAK), which closed on December 31, 1987. The project became effective on April 1, 1987 andclosed on December 31, 1996. The project was restructured in 1993. When the closing date was firstextended, in May 1995, SDR 3.2 million (US$ 5.0 million) was cancelled. The project achieved mixedsuccess in achieving its objectives and the sustainability of sectoral and policy-related project gainsremains in doubt.

Project Objectives

2. The main objective of the project was to improve the quality and expand the capacity of the NationalVocational Training System (NVTS) to meet skilled and semi skilled manpower requirements for theindustrial and agricultural/rural sectors. The enabling objectives were to: (i) increase the capacity ofexisting Vocational Training Centers (VTCs) and establish new VTCs; (ii) expand the apprenticeship/in-plant training programs; (iii) strengthen instructor training program; (iv) strengthen the capacity of theNational Training Board (NTB) and the Provincial Training Boards (PTBs); (v) establish a pilot andexperimental component of Women Technical Training Centers (WTTCs); and (vi) assist the Governmentin establishing a clear policy for cost recovery.

Evaluation of Project Objectives

3. The project was designed to continue and build upon the work undertaken under the first project. Itwas timely, but its original objectives were too general, and they unwittingly led to the expansion ofsupply-driven, institutions-based training in the public sector. The project design was over-ambitious,and took insufficient account of limited implementation capacity. To overcome these problems, therestructured project rightly reduced the physical scope of institution-based training components, andencouraged the diversification of enterprise-based training. The restructured project, however, under-estimated the time and effort needed to develop the institutional base for implementing the reforms. Theestablishment of prototypes of women training programs in modern, income-generating skills was well-conceived in view of growing marginalization of women employability as a result of excessive relianceon traditional training in stichcraft. Finally in light of dwindling operation and maintenance resourcesthe objective of partial cost recovery addressed the need of the hour.

Implementation Experience

4. The project started slowly due to delayed acquisition of sites for new VTCs, centralized andinefficient construction management, continuing gaps among project management staff and lack ofcommnunication and coordination between federal and provincial implementation agencies. Because of poorimplementation record the project remained in the problem projects category for more than 4 years and wasupgraded only in 1994. Due to major changes in the requirement of the job market and keeping in view thelimitations of implementation capacity, the project was restructured in 1992-93 with focus on reduced physicalinfrastructure and greater induction of employers and provincial governments in project implementation. Theproject restructuring was based on a comprehensive training needs assessment study conducted by externalconsultants. The restructured project was approved formally by the Government in February 1994 and theDevelopment Credit Agreement was amended in March 1994. The post-restructuring implementation of theproject developed a relatively faster pace.

5. The Credit disbursements trailed the appraisal estimates by a wide margin for most of the project's life.Due to major deviations from IDA's Procurement Guidelines, construction of 3 new VTCs was excluded fromIDA's financing and further in line with the revised requirements of the restructured project an amount ofSDR 3.21 million (about 5 million dollars) was cancelled. At the close of the project an amount of aboutSDR 5.45 million out of the revised Credit Allocation of SDR 33.39 million remained un-utilized and wasaccordingly cancelled. The total project cost is estimated to be Rs. 2880 million (US$ 110.36 million),which corresponds closely to the revised PC-I cost of Rs. 2882 million.

Results

6. The project achieved mixed results. The new VTCs could not be operationalized by project closure dueto delayed construction, but the existing VTCs increased their enrolment capacity by almost 50% throughprovision of new equipment, introduction of additional trades and extension of second shift programs. Theinstructor training capacity quadrupled but the backlog of untrained instructors could be reduced by only40%. The apprenticeship training capacity doubled, but its full potential could not be achieved due to delayin the promulgation of revised legislation. The training boards were restructured but without legislatedempowerment they failed to deliver their full normative charter. A new national training policy and a broad-based training curriculum were developed, but their implementation remained slow. New employer-ledcouncils and committees were created to decentralize and diversify training provisions but their sustainabilityis unassured. Although women training pilot in income-generating skills commenced in only two of the fiveplanned WTTCs, its acceptance and success have enhanced the potential of its replicability. The plannedsupport to the informal sector through mobile training did not materialize, but in-service workers benefittedextensively through the trade testing and re-training facilities set up under the project. A monitoring andevaluation infrastructure was established, but it has yet to develop full capacity for assembling and updatinglabour market information. Short, market-oriented courses launched by the Skill Development Councils(SDCs) and Center Management Committees (CMCs) eminently established the potential for cost recovery,but this successful experience was not transferred to regular, full-time training programs. Substantialtechnical assistance resources were invested in management and staff development, but frequent changes intop decision-makers have inhibited adequate returns to the planning, policy-making and managerial processesof the NVTS. On balance, in addition to significant capacity building in physical and qualitative terms theproject has laid a foundation for sectoral reforms, but their full realization lies in the future.

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Achievement of pro*ect objectives

7. In physical terms the project achieved about 70% of the capacity expansion targets and about 60% ofquality improvement targets. A significant success of the project lies in creating elements of an enablingenvironment for sustained growth and development of the training sector. Whether this enabling environrmentwill add up and deliver will depend upon how the institutional gains of the project are sustained by theGovernment in the post-project period. Given that construction was still underway at the closing date, thenew participatory structures were being developed, and that funds remained in the Credit, a limited furtherextension of the Credit life could have enhanced the sustainability of project outcomes at a crucial stage inthe evolution of the training sector. However, the long project life spread over 10 years and its lack of fullysatisfactory implementation progress did not justify a departure from the current Bank policy on Creditclosure. A significant failure of the project was the non-mobilization of partial cost recovery from traineesof regular programs. Another failure was the non-mobilization of direct support to the informal sectorenvisaged under the restructured project.

Sustainability of the Project Gains

8. Increased budgetary constraints make it unlikely that adequate Operation & Maintenance (O&M) resourceswould be available to service the expanded infrastructure unless supported by a policy of partial costrecovery. Without empowering the NTB and the PTBs through amended legislation, their normative charteris likely to remain undelivered. Similarly unless the existing legislation on apprenticeship training is revisedto make it less coercive and more voluntary and incentive-based, these programs are unlikely to mobilize fullcapacity. The sustainability of the SDCs and the CMCs is also unassured without continued public sectorsupport for another 2-3 years and without a decisive move towards decentralized management. On the otherhand the instructor training infrastructure, the trade testing mechanisms and various national standingcommittees have developed the intrinsic strength to survive and remain productive. Women training in non-traditional trades is gradually developing firm roots and it possesses a good potential for replication.

Overall Assessment of Outcomes

9. On balance the Project outcomes were unsatisfactory, measured against the original targets. However,achievements since restructuring under the reoriented objectives gave partially satisfactory outcomes atclosing, with the promise of more satisfactory outcomes in the post-project period.

Summary of Findings and Major Lessons Learnt

10. If a Vocational Training project were to be designed today to meet the (laudable) objectives of thisoperation, it would take a very different form. The following are the major findings and the key lessonslearnt:

* Public sector interventions in the training sector should essentially be catalytic in nature to createa participative environment in which the training providers and the employers in tandem can plan anddeliver training programs in response to the market forces - the corollary being that public sectortraining monopolies lead to gross inefficiencies, rapid obsolescence and rampant unemployability oftrained manpower.

* Policy-makers and planners need a greater understanding of the dynamics of job creation and job-related training, if costly manpower shortages and surpluses are to be avoided.

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* The informal sector complemented by enterprise-based training will continue to remain amajor source of trained manpower in Pakistan for a long time to come. However, lack ofexperience and proven knowledge is a major constraint in developing appropriate support tothe informal sector.

* The expansion of training sector should not be governed by compulsions of social demand forvocational training opportunities but instead by the imperatives of economic demand.Vocational guidance services should be established to inform and educate the people for thepurpose of enabling them to make correct choices.

* Multi-sectoral policy-setting and coordinating bodies entrusted with a normative charter but withoutlegislated empowerment have little potential of coming to life.

*The recurrent operational budgets are likely to remain short-funded in the short and medium termswhich implies prudent investments in further expansion of the publically supported training sector.Further in this scenario, partial cost-recovery is an inescapable option.

*Full benefits of mid-term restructuring of a project can accrue only if sufficient time is allowed forthe restructured components to develop institutional strength.

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Islamic Republic of Pakistan

Second Vocational Training Project(Credit 1670-PAK)

IMPLEMENTATION COMPLETION REPORT

Project Implementation Assessment

Project IdentitvName: Second Vocational Training ProjectCredit: 1670-PAKUnit: South AsiaCountry: PakistanSector: Vocational Training

Project Background:

1. The project was the eighth in a series financed by IDA and designed to raise educational and skillstandards in Pakistan, but only the second project concerned uniquely with vocational training andwith focus on both industrial and agricultural-rural sectors. It was co-financed by EC, UNDP, CIDAand GTZ. It was prepared by the Ministry of Labour and Manpower with ILO assistance. Theproject was appraised in July 1985 and approved in March 1986 with a credit of US$ 40.2 million(SDR 36.6 million) over 8 years. The Development Credit Agreement was signed in May 1986 andbecame effective in April 1987. The project supported the government's Sixth Five Year Plan'sobjectives of further development of rural, industrial and women training sectors. The projectenvisaged an increase in the National Vocational Training System (NVTS) training output from 6500skilled/semi-skilled workers to 19400 annually. Under the apprenticeship training program in theindustrial sector, the project aimed to raise the output from 1100 trained workers annually to 2700.

Project Objectives and Descrintion

2. The main objective of the project was to improve the quality and expand the capacity of the NationalVocational Training System to meet skilled and semi-skilled manpower requirement for the industrialand agricultural/rural sector. The system expansion objective was to be achieved by:(a) increasingthe capacity of existing vocational training institutes through re-equipping them and introducingadditional courses; (b) developing new vocational training institutes in suburban and rural areas; and(c) expanding apprenticeship/in-plant training programs. The quality improvement objective was tobe achieved by: (a) strengthening instructor training programs and (b) further strengthening themanagement and project implementation capacity of the National Training Board (NTB) andProvincial Training Boards (PTBs). The project was to establish a pilot and experimental componentof women technical training centers. Another objective of the project was to assist the governmentin establishing a clear policy for cost recovery through the introduction of a realistic fee structure inthe training institutions.

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The components within the project comprised: (i) provision of equipment for upgrading of 20 existingVocational Training Centers (VTCs) and introduction of additional training courses in some of them;(ii) establishment of 31 new VTCs in suburban and rural areas; (iii) strengthening ofapprenticeship/in-plant training programs; (iv) conversion of the existing National TrainingDevelopment Institute (NTDI) into a National Staff Training Institute (NSTI); (v) establishment of5 Women Technical Training Centers (WTTCs) alongwith 5 women training and employment unitsin the provinces to administer courses in non-traditional fields; (vi) strengthening of the NationalTraining Bureau (NTBu) and the Directorates of Manpower & Training (DMTs) in four provinces;(vii) establishment of 5 monitoring and evaluation units; (viii) carrying out of 5 studies in relevantareas - these studies were expected to lead to new policies or a change of existing policies invocational training; (ix) technical assistance.

Initial Proiect Design and Orgagization

4. The design of the project was based on the recommendations of a report prepared by the governmentwith ILO assistance and financed under the First Vocational Training Project (Credit 1109-PAK of1981) The project supported the objectives of strengthening the NVTS created under the NationalVocational Training Ordinance of 1980.

5. The thrust of the project in seeking to feed the employment market in needy sectors was welldirected. Taking note of lack of organised, rural-based training programs resulting in growingmigration of rural workers to urban areas in search of better training and employment opportunities,the project aimed at creating a localized training infrastructure in selected rural districts. In theindustrial sector the shift from primary consumer goods to engineering goods and increasing use ofmodern technology required upgraded skills among the potential new workers as well as the existingworkers. Under the project these requirements were to be met through modernising the outdatedequipment in existing training centers, introduction of new trades in them, instructors upgrading andstrengthening in-plant training development. The proliferation of traditional women trainingprograms confined only to traditional stitchcraft and knitting courses had marginalised employmentopportunities for women. While a departure from these traditional programs was clearly indicated,the job market context for women was still amorphous and undefined. The project, therefore,adopted a cautious approach by initiating a pilot program of non-traditional trades in 5 major urbancities. To improve the management and implementation capacity, the project sought to strengthenthe NTBu and the DMTs through increased and upgraded staff, reinforced monitoring and evaluationservices and provision of a large package of technical assistance. To illuminate future policy paththe project envisaged commissioning of relevant studies.

6. In retrospect it seems that the project design over-projected the role of public sector in the provisionof vocational training opportunities and in doing so under-estimated the capacity constraints of thissector. Secondly and more importantly, apart from the mandatory but limited involvement of theemployers in the delivery of apprenticeship training, the project design made little attempt tocapitalize on the diversified training potential of the organized industrial sector or of the informalsector. In identifying the capacity constraints of the public sector the PCR of the first project hadnoted; (i) inadequate provision of consumable materials; (ii) non-mobilization of the NTB and thePTBs as autonomous bodies and low employers' participation in their infrequent meetings; (iii) delays

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in site acquisition and construction coupled with poor design; (iv) management weaknesses arisingfrom poor identity of project management, poor coordination and weak supervision; (v) staffingproblems arising from delayed appointments and poor quality performance and (vi) lack ofresponsiveness of the training system to labour market needs and the need for reviewing the lengthand content of training courses. Most of these deficiencies of the first project recurred during theinitial implementation of the second project. It was only when the project was restructured afteralmost 5 years of implementation that planned efforts were made to address these implementationconstraints with a mixed degree of success.

Implementation Experience under the Orieinal Project

7. Apart from the notable exception of timely procurement of equipment for the existing VTCs, theimplementation of the project ran into difficulties right from the start. Effectiveness took nearly oneyear due to delays in securing ECNEC's approval of the Project PC-I, signing of Co-FinancingAgreements and contract with an equipment procurement agency. To identify appropriate trade areasin line with the needs of the rural/agricultural job market, the project envisaged the carrying out ofsocio-economic surveys in the locations selected for new centers. These surveys were not conductedscientifically by government agencies and as a result they recommended the replication of largelyurban-based trades in the new rural-based centers. The acquisition of land for the new VTCs tookmore than 2 years. Due to continuing ban on fresh recruitment few new management positions couldbe filled. The project also suffered shortage of counterpart funding during its initial phase.Cumulatively these problems delayed project implementation by almost 3 years and the project wasdeclared a problem project.

nroject Restructuring Exercise

8. Meanwhile the employment market in Pakistan underwent major changes and the Government ofPakistan established in 1989 a National Manpower Commission to identify the country's manpowerneeds at all levels during the next 15 years and to recommend appropriate manpower developmentstrategies. The major findings of this Commission as relevant to the skill training sector were: (i)institution-based programs need to become responsive to the job market; (ii) there was an unmet needto induct the employers in training policy formulation and its implementation; (iii) the informal sectorneeded support; and (iv) the apprenticeship training system needed to be drastically revised. In lightof these findings, IDA in consultation with government identified the need for a country-wide trainingneeds survey. This survey was financed by UNDP and completed in 1991. The survey indicatedthat: (i) in the areas proposed for the new VTCs there is little evidence of an acute skill shortage; (ii)employers rely almost exclusively on the on-the-job training output; (iii) the proposed training designin the new VTCs does not cater to multi-skill and broad-based training; (iv) most training needs inthe rural areas can be met by providing 3 core activities in the new centers comprising electricalwork, metal working and fabrication and automobile work; (v) the building design and equipmentlevels of the new VTCs should be re-considered and costed at more economic levels; (vi) effectivesupport systems should be explored for the informal sector including mobile training units; and (vii)beauty-care, secretarial skills and dress making and dress design should form the core curricula forwomen training centers. Based on the findings of the National Manpower Commission and therecommendations of the Training Needs Survey, the project entities and IDA prepared a re-structureddesign of the project in 1992 which was approved by the government in 1993 and the DevelopmentCredit Agreement was accordingly revised. The re-structured project also took account of the

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implementation difficulties of the project. The new framework of the project included the followingdepartures:

a) The number of new centers to be reduced from 31 to 19 along with a reduced physical scope.

b) Construction management to be transferred to the provinces.

c) Broad-based, modular curricula to be introduced in 3 core areas to support 4 programs inMetal, Automotive and Electrical/Electronic trades to be introduced in the new centers.

d) NTB and PTBs to be restructured with greater induction of employer-members and traininglegislation for them to be amended to ensure their greater empowerment.

e) Re-legislation of the Apprenticeship Ordinance to make it less coercive and participatory.

f) Four employers-led Skill Development Councils to be established to conduct training needsstudies and to design and contract needs-based programs to the best training providers.

g) Mobile training mode to be explored in support of informal sector.

h) Provincial Staff Training Institutes to be established in 3 provinces.

i) Trade Testing Cells to be set up at the federal level and in the provinces.

j) Management of training centers to be selectively decentralized through the establishment ofCenter Management Committees in place of the sinecure advisory committees.

k) Additional technical assistance to be mobilized from the Credit.

ImDlementation ExDerience under the Restructured Project

9. The restructuring put a new life into the project and its implementation gradually improved. Withthe transfer of construction management to the provinces, the pace of construction accelerated andthe quality of supervision improved significantly. External technical assistance was mobilized todevelop the broad-based curricula and to assess the potential of support to the informal sector. Theoperational framework of the Skill Development Councils (SDCs) and the Center ManagementCommittees (CMCs) was developed and approved by the government speedily. The residualdifficulties on the mobilization of additional management staff were also largely resolved. The NSTIand the 3 Staff Training Institutes (STIs) started operations with the former focusing on the trainingof master trainers and holding of advanced modules of instructor training and the STIs concentratingon the basic module. Four Trade Testing Cells also started operating in testing and certifyingcandidates from both institution-based and informal sectors. The composition of the NTB and thePTBs was changed to enhance the participation of employers. Work was simultaneously taken inhand to propose amendments in the training legislation with a view to achieving greater empowermentof the NTB and participative implementation of the apprenticeship training programs. A ProjectSteering Committee was established with full representation from the provinces to meet regularly and

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oversee the implementation of various components. Standing National Committees were constitutedin such diverse areas as instructor training, apprenticeship training and monitoring and evaluation.Equipment lists were developed in line with the requirement of broad-based curricula and the processof international procurement of equipment started. On the other hand, the restructured project couldnot activate the NTB and PTBs and some residual problems persisted on the construction of federallymanaged new centers. By 1994, however, enough progress was visible to warrant the removal ofthe project from the problem category. Based on the continued momentum of work, IDA agreed inMay 1995 to extend the Credit by one year with a new closing date of June 30, 1996; SDR 3.2million (US$ 5.0 million) was cancelled from the Credit. A qualified extension for a further sixmonths enabled the project to disburse for delayed supply of equipment contracted before June 30,1996.

Component-wise prolect performance

10. Upgrading of existing centers: This component aimed to upgrade 20 existing VTCs throughprovision of new equipment, introduction of new trades and development of National Skill Standardsand Curricula for semi-skilled (G-III) and skilled (G-II) workers and additional enrolment of traineesin double shifts. The project succeeded in delivering all these inputs. Equipment worth US$ 14.29million was duly procured internationally and was installed and commissioned in 1991. Twenty fivenew trades were introduced in 12 existing centers. Second shift programs were introduced in theexisting VTCs. Additional instructor staff was provided to meet the requirements of the enhancedenrolment in existing and new trades. The enrolment capacity in existing VTCs rose from 8168 to12651. The actual enrolment rose from 7818 to 11162, thus substantively utilizing the additionalcapacity. This component is one of the success stories of the project.

11. Establishmnent of new centers: This component was addressed to meet the requirement ofskilled/semi-skilled manpower in rural/agricultural districts. Originally, 31 new VTCs were to bedeveloped under this component, but according to the market signals, the restructured project reducedthis number to 19. By the project closure, new buildings had been built for only 4 centers, while theremaining were in varying stages of progress. Three center buildings were excluded from IDA-financing due to infringement of IDA procurement guidelines and these were later completed bygovernment from its own resources. The scope of new centers was limited to 4 broad-based tradeswith modest, needs-based buildings and scaled-down complement of equipment. Each new VTC wasdesigned with a capacity of 16 trainees in each of the two shifts in each trade. A broad-basedcurriculum was developed and master trainers were trained to equip instructors with skills ofadministering broad-based, modular curriculum. The delayed construction of buildings andprocurement of equipment did not allow the incomplete centers to be operationalized before theproject closed. Even the 4 completed centers under EC's financing failed to operate by projectclosure. This component has remained problematic throughout the life of the project. It is nowexpected that all the new centers will be fully commissioned by early 1998.

12. Apprenticeship Training: To strengthen the apprenticeship services including oversight andprofessional help in the industrial sector, this component provided additional staff, raised their salarystatus, improved their mobility and created for them opportunities of formal training, seminars andworkshops. As a result of these inputs a steady increase was maintained in the number of apprenticesfrom 5624 at the start of the project to 9482 at its closure, thus meeting the capacity targets envisaged

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under the original project. However, the accent on legal enforcement of the apprenticeship lawprevented full mobilization of the capacity of this program. Accordingly, draft legislation wasprepared to introduce greater voluntariness into the program and to extend the net to larger numberof employers. However, till the closure of the project, proposed revisions in the legislation couldnot be legislated.

13. Instructor Training: This component had both quantitative and qualitative objectives and comprisedthe conversion of the existing NTDI into a NSTI and creating additional instructor training capacityin the provinces. Under the restructured project, the NTDI was kept intact and a separate NSTI wasestablished along with new buildings and provision of equipment. In operationalizing the NSTI, GTZprovided useful technical assistance. Three STIs were established in the provinces. Thus instructortraining capacity increased from 60 to 260, which is a commendable achievement. It was agreed thata modular structure would be implemented with the basic module being administered in the STIs andadvanced module in the NSTI. While this arrangement has accelerated the coverage of un-trainedinstructors, it is not problem-free. The main difficulty is the un-willingness of the provincial traineesto benefit from NSTI training because this dislocates their domestic life. Another possible difficultycould arise in the post-project period, if the Provincial Governments face budgetary constraints inadequately meeting the travelling and residential expenditures of the prospective instructor trainees.

14. Women Training: The women training component got a head-start when the provincial governmentsof NWFP and Balochistan agreed to provide the premises for WTTCs in Quetta and Peshawar. WithCIDA's assistance, these centers were operationalized respectively in 1990 and 1994. Non-traditionaltraining courses in Beauty Culture, Secretarial Trades including Computers, Draughtspersonship andDress-making were started in these centers and the response from female trainees continues to bepositive. Although the job market context for the trained output was not well defined initially,opportunities of both wage and self-employment have emerged with the passage of time. Adequateback-up support has been provided to these centers by the Women Employment and Training Units(WTEUs) established in Islamabad and the four provinces. Of the 5 WTTCs planned, new buildingsfor the remaining 3 got delayed deferring their operation to an uncertain date after the closure of theproject. Although the buildings of these three centers are likely to be completed by end 1997, thegovernment has yet to initiate procurement of equipment for them under its own financing. This mayfurther delay the commissioning of these centers. This component met with qualified success in thatit did establish the replicability potential of the experimental WTTCs, but did not achieve the plannedphysical target.

15. Management and Implementation: This has been the weakest aspect of the project due essentiallyto: (i) delayed recruitment of management staff abetted by further delays in staff development; (ii)delay in acquisition of sites; (iii) initial gaps in federal-provincial communication and coordination;(iv) continuing deficiencies in construction management and supervision; (v) resistance to decentralizemodes of operation; (vi) bureaucratic delays in re-legislation of existing training laws; and (vii)massive turn-over of top managers and policy makers with 82 staff chages at both the federal andprovincial levels. After a hiatus of 4 years, implementation difficulties eased under the restructuredproject. By this time positive movement had occurred in staff mobilization and decentralization ofconstruction management to the provinces. However, while the implementation of physicalcomponent improved in the post-restructuring period, the normative work of the training boardsremained largely stalled till the end of the project. Factors that contributed to the lack ofperformance by the boards included: (i) lack of empowerment; (ii) key staff changes; (iii) lack of

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interest on the part of employer and (iv) infrequent meetings of the boards.

16. Monitoring and Evaluation: Five Monitoring & Evaluation (M&E) units have been establishedunder this component and they have been staffed and equipped after some initial delay. Information-gathering formats have been developed to collect center census data annually. To assess externalefficiency of the training centers, tracer studies have occasionally been conducted, which reflect anemployment rate of 30 to 50%, depending on province, trade and the year of passing. The M&Eunits still lack staff expertise in assembling and updating reliable labour market information. Thegovernment would need to focus on this deficiency in the post-project period. In the short runexternally contracted tracer studies could bridge the competency gap of the concerned staff.

17. Studies: Of the 5 project studies, 2 have been completed in the following areas: (a) cost recoveryand the financing of the vocational training; and (b) financial compensation schemes and training inprivate enterprises. The study on Women Training remained un-commissioned. The remaining twostudies on rural apprenticeship program and survey of industrial sector needs and the demand ofadvanced (G-I) vocational training have been completed in draft and no effort has been made to revisethem in light of detailed IDA conmments. IDA financing was not sought for completing the studiesnor were the terms of reference of the first two studies cleared by IDA. As a result the quality ofthe findings and recommendations of these studies leave much to be desired. Moreover, thegovernment is in default on the covenanted actions that were to follow in using the results of thestudies. These actions constituted (i) introducing a system under which an increasing proportion oftraining cost could be recovered from the beneficiaries; (ii) implementing a pilot program of ruralapprenticeship training; and (iii) introducing advanced vocational training (G-1) courses in selectedinstitutions. Despite meeting success in realizing users charges under the training programs run byCMCs and SDCs, the full potential of partial cost recovery from the trainees of regular programsremains un-accomplished task. All in all, disappointing progress has been made on the completionof studies and no follow-up action has been initiated on the outcomes of the completed studies.

18. Technical Assistance: The Project was supported by a Technical Assistance Component of US$3,537,421 provided by the UNDP and US$ 1,158,356 provided by IDA and executed by the ILO.As reflected in the column-table, this component has met or exceeded its quantitative targets:

Type of TA SAR Provision | Actual Delivered

Expatriate Consultancy 16 person-years 17.5 person-years

Local Consultancy 18.5 person-years 17.1 person-yearsservice

International 10 person-years 21.3 person-yearsFellowships l

19. CIDA supplied assistance including training equipment to 2 new pilot centers for women's trainingprogram. In addition CIDA provided technical assistance to 5 Women Employment and TrainingCells. CIDA assistance is scheduled to close by end of June 1996.

- 8 -

20. The Government of Germany through GTZ provided TA to NSTI but temporarily pulled out in June1993 due to long delay in the construction of the proposed NSTI building and procurement ofequipment. GTZ resumed its assistance again for another 2-year period (Jan 1997 - Dec. 1998) usingthe unspent amount left in 1993.

21. EC provided financial assistance for equipment and civil works of 3 new VTCs in the NWFP and2 in Balochistan. In addition, EC supported provision of vehicles and consultancy assignments relatedto exploring the prospects of mobile training.

22. In terms of impact produced by this significant input of technical assistance, the picture is varied.CIDA's TA has greatly assisted staff development in the two operational WTTCs. The TA providedby EC in support of mobile training has produced useful reports, but pending the reformation of someaspects of the proposals contained in the reports and taking into account the financial implications ofsetting up a viable project, it was agreed that the restructured project would not cover thiscomponent. The NSTI has benefited immensely from the TA provided by GTZ. The UNDP-financed TA as complemented by the Credit focused on donor coordination, constructionmanagement, equipment procurement, curriculum development and staff development. All theseareas have benefited from it. The fellowship training numerically exceeded the initial targets by amargin of 100%, but the immediate return on this investment in terms of improved professionalismamong staff has been impeded by rapid staff changes particularly at the higher level. However, thisinvestment in human development will continue to exercise beneficial influence on management andsystem development in the long run, as the additional human capital remains within the system andin any case within the country.

Other Proiect Asets

23. Civil Works Implementation: The SAR envisaged a phased implementation of the civil works. Fullimplementation of all civil works was planned to be completed by 1991. The implementationschedule (Table 1.1) shows that by project closing, in June 1996, only four centers had beencompleted and handed over along with the completion of a small extension to an existing center.Most of the remaining thirteen VTC/WTTC buildings are at an advanced stage of completion. Thedelays in the construction of 10 VTCs included in the first phase were due to major inadequacies inthe performance of the federal agencies involved and included: (i) delays in acquisition of sites;(ii) delays in award of contracts; (iii) an inconsistent policy followed in making payments tocontractors; (iv) absence of adequate provision in construction contracts to provide equitablecompensation for escalation; (v) unsatisfactory performance by contractors; (vi) unprofessionalperformance by the construction design and supervision consultants; (vii) failure to employ therelevant contract procedures to deal with unresponsive or defaulting contractors; and (viii) amisinterpretation of the role of owner \ client under both construction and consultancy contracts.

24. The construction design and supervision consultants were required to work for several years withouta signed contract. Their contract was not signed until February 12, 1992. This situation wasreflected in the slow progress achieved in the completion of site surveys and in the development ofdesigns by the consultants. The first phase VTCs buildings were tendered only on June 23, 1988.

25. Project restructuring: Under the Restructured Project PC-I, the civil works on the centers already

-9-

contracted, were to be executed under the existing arrangements by the NTB. The remaining centerswere redesigned on a reduced scale to accommodate broad based training. Contract management wastransferred to the provinces. Top supervision was transferred to consultants engaged by the PTBs.An international architect was appointed under contract with ILO.

26. Designs: The initial designs were structurally sound but areas were over-provided. The revisedcenter designs involved reduction of the original areas by, of the order of 50%, and omitted hostelaccommodation and reduced the provision of staff accommodation.

27. Tendering procedures: Evaluation of bids for the first phase VTCs involved substantial delays beforeaward of contract. The contract documentation for the first phase also made no provision forescalation in prices. The VTCs decentralised to the provinces were tendered on the basis ofIDA-approved Standard Bidding Documents (SBDs), which were seen to be equitable, incorporatingboth provision for escalation and for ascertaining and applying damages for delays or other disputes.

28. Performance by Contractors: The completion of the federally managed centers of the first phase hascontinued to be a major constraint. Of the contracts for 10 centers awarded, three were eliminatedfrom the credit due to non-performance, two were re-tendered. All five center buildings have notyet been handed over and are in dispute. In the absence of strict enforcement of contractualprocedures, contractors have been in breach of contract and work has been suspended for longperiods in pursuit of claims. Direct intervention of federal officials in interpreting and deciding oncontractual disputes was itself a significant contributor to prolongation. Contractual overruns havevaried from 15 to 81 months, the average overrun up to April 1997 was 47 months. Cost overrunsin 7 IDA-financed VTCs of the first phase have averaged 43 %. In contrast, good progress has beenregistered with the projects entrusted to the PTBs and federal Ministry of Works followingrestructuring. It is anticipated that with the exception of one disputed VTC building, all other centerbuildings will have been completed within a two year construction period.

29. Procurement of Equipment: The project incorporated procurement of equipment as one of its majorcomponents. ILO EQUIPRO was contracted by the government as a sole source procurementagency. Based on its past experience under the first project, EQUIPRO executed its contractdiligently and efficiently by using ICB/LIB and other procurement guidelines of IDA, EEC andCIDA. In addition EQUIPRO provided training, technical assistance and hands-on experience to thestaff of the NTBu to enable them to develop procurement skills. As a result LCB procurement ofthe equipment was satisfactorily handled largely by the NTBu staff.

30. Skill Development Councils: To institutionalize employers' role, the restructured project envisagedthe establishment of pilot models of employers-led Skill Development Councils (SDCs). Two of themwere initially contracted by the federal government to operate for a period of 3 years. SDCs weremandated, among other objectives, to provide a productive link between employers and trainingproviders; identify training needs of the geographical area in which they work and to analyze andprioritize and meet such prioritized training needs through competitive contracted arrangements. BothSDCs were provided seed money from IDA Credit, with a view to making them financially self-sufficient in 2-3 years. Towards that end each SDC carried out through contracted training providersskills upgrading courses for supervisors and managers, in addition to pre-employment trainingprograms. However, the sustainability of SDCs in an interim period of 2 to 3 years undergovernment financing, before they develop the intrinsic strength to become self-sustainable, is un-

- 10 -

assured.

31. Center Management Committees: Another employers-led formal mechanism to partially decentralizethe management of training centers was the Center Management Committees (CMCs) which replacedthe previously ineffective center advisory committees. CMCs were designed to promote decentralizedoperation of the training centers and to ensure that training programs meet the labour market skillsrequirements. Twenty CMCs were established, but only 11 are functional. A specimen of theperformance assessment of the CMCs follows: (i) increased utilization of training capacity; (ii) on-the-job training and placement for trainees; (iii) collecting in-kind contribution from employers; and(iv) running short courses on full cost-sharing basis.

32. Social Studies Module: Using the funds provided by UNDP under the TA component, ILO hiredthe services of a national consultant to guide a committee of Chief Instructors in developing acurriculum on Social Studies. The curriculum focused on population welfare and life skills includingappropriate work attitudes. To date, 12 training centers (3 in each province) have implemented the30-hour Social Studies curriculum in their training programs.

Project's Results

33. Achievement of Project's Objectives: In terms of capacity expansion, by closure the projectachieved about 70% of the targeted growth in institution-based training, but fully met the target ofexpanded apprenticeship training. In terms of qualitative improvement, the project succeeded intraining 60% of instructional staff. A significant success of the project lies in creating elements ofan enabling environment for sustained progress in meeting the goals. Whether this enablingenvironment will add up and deliver will depend upon how the institutional gains of the project aresustained by the government in the post project period. While existing centers have fully installedand operationalized the new equipment through on-going and additional courses, the new centers werenot made operational during the project's life. The only exception were 2 women centers that werecommissioned in government-procured buildings. The planned expansion of apprenticeship trainingprogram has occurred but it still trails behind in realising its optimum capacity due to lack of revisedlegislation. For improving the quality of training delivery much headway has been made inestablishing appropriate instructor training infrastructure, but it would take much longer to providefull and comprehensive training coverage to the entire formation of instructors. A majordisappointment of the project is its lack of success in mobilizing the normative capacity of the trainingboards. Another disappointment is that little progress has been made in exploring and implementingpossible cost-recovery options. While the project has laid the foundation for greater participation ofemployers in training policy formulation and implementation, the results on the ground are far fromsatisfactory. Also the project did not succeed in initiating mobile training in support of the informalsector.

34. Impact of Project: The software developed under the project including a national training policyand a broad-based curriculum have yet to find a wide acceptance within and outside the NVTS.However, there is evidence to believe that internal and external demands on the useful instructortraining and trade testing infrastructure developed under the project are going to increase. Similarly,the project has met with some success in bringing the public sector training providers and employerscloser than before and the prognosis for an increased interaction between them in future is good. Onthe other hand the normative charter of the training boards remains unaccomplished and resultantly

- 11 -

there is little abatement in the supply-driven orientation of policy planners. In the short and mediumrun shortages and surpluses of trained manpower are going to co-exist unless training planners andproviders learn to establish and benefit from a continually updated labour market information system.The employers-led training structures created under the project do not constitute a critical mass forthe needed transformation in fostering a partnership between the public and the private sectors butnonetheless they provide an important beginning. In particular one of the two SDCs located inKarachi has a bright future in terms of sustainability, as it is currently reaching out to externalprofessional bodies and other donors to build on the sound foundation it has built by demonstratingthe potential of cost recovery and harnessing the full cooperation of the employers.

35. Project Sustainability: Increased budgetary constraints makes it unlikely that adequate O&Mresources would be available to service the expanded infrastructure unless supported by a policy ofpartial cost recovery. Without empowering the NTB and the PTBs through amended legislation, theircontinued existence as sinecure structures will be of questionable value. Unless the existinglegislation on apprenticeship training is revised to make it less coercive and more voluntary andincentive-based, this mode of training is unlikely to achieve its full potential. Similarly thesustainability of the SDCs and the CMCs is also unassured without continued public sector supportfor some more time and without a decisive move towards decentralized management. On the otherhand the instructor training infrastructure, the trade testing mechanisms and various national standingcommittees have developed the intrinsic strength to survive and remain productive. Women trainingin non-traditional trades is gradually developing firm roots and it possesses a good potential forreplication.

36. During the final supervision mission in 1996, Government agreed to a program for completing andoperating all project institutions, and for passing legislation. Draft legislation reached an advancedstage but was not passed before the change in Government. The new Government accords highpriority to developing the training sector and encouraging public-private-partnership; it is reviewingproposals for reform & strengthening training. The FY98 budget includes adequate developmentalprovisions for meeting the remaining needs of the new centers. However, recurrent budgetconstraints in the provinces are likely to affect the O&M provisions for the expanded traininginfrastructure.

37. Overall Assessment of Outcomes: Assessment of the overall achievements of the project is complex.On the one hand, Government has still not passed the legislation needed to make the training boardsproperly operational and the apprenticeship system more attractive to employers; only four of the 19training centers in the reduced target have been completed and none is yet operational and three ofthe five women training centers are still being built. On the other hand, employers are actively usingthe Karachi SDC and are involved in a number of Center Management Committees; the two women'scenters are extremely successful; existing training centers have been upgraded/expanded successfullyas planned; expansion of instructor training centers has exceeded targets; apprenticeship has expandedas planned; staff of training centers are demonstrating the value of the training they received; andanother 14 training centers should soon be completed. Compared with the original targets, onbalance the overall outcome is unsatisfactory. However, achievements since restructuring under thereoriented objectives gave partially satisfactory outcomes at closing, with the promise of moresatisfactory outcomes in the post-project period.

- 12 -

IDA's Rerformance

38. In the policy context of the period, the intensive identification and preparation work by IDA wassatisfactory. However, the appraisal should probably have questioned the project's complexity andforeseen the implementation problems that in fact arose immediately. Early supervision wassatisfactory, but could not improve inadequate project implementation. After noting initialimplementation constraints encountered in the construction of a large number of new centers in distantlocations and in bringing to life the national and provincial training boards, IDA successfullycatalyzed a major restructuring of the project which helped in reducing the number of new centersby 40%, decentralising construction management, preparing revised training legislation and layinga foundation for institutionalising employers' role in implementation. The restructuring exerciseaccelerated the pace of implementation and provided a rational basis for normative work. IDA'sstrategy to retain the project in the problem category for an extended period was instrumental inpersuading the government to accept the rationale for restructuring. The regular half-yearlysupervision missions fielded by IDA made a substantial contribution in identifying issues andproviding timely implementation assistance. IDA's decision to transfer the responsibility for taskmanagement to the Resident Mission mid-way through the project enhanced the efficacy of localsupervision through ready response to emerging problems and expeditious clearance of diverseprocurement actions. Throughout the project's life IDA maintained a cordial and constructiverelationship with the Borrower, the provincial project entities and the co-financiers. IDA alsosucceeded in fostering better federal - provincial relationship through the establishment of steeringcommittees and national standing committees. However, IDA, despite its strong advocacy, did notmeet with much success in curtailing the expansion of supply-driven training programs by variousministries, departments and organizations and in promoting policies of cost-recovery. Based onaccelerated implementation of the project during the post restructuring period and as a specialexception to its current policy on Credit closure, had IDA agreed to a further extension of the Credit,additional supervision inputs could have enhanced the sustainability of the project outcomes.However, the protracted life of the project spread over 10 years and the lack of fully satisfactoryimplementation progress precluded this possibility.

Borrower's Performance

39. Initial project implementation got delayed by almost 3 years due to the centralised control of projectimplementation by the Ministry of Labour and Manpower. Once the Ministry agreed to decentraliseaspects of project management, implementation difficulties eased considerably. The bureaucraticrigidities of the federal and provincial governments, frequent changes of key policy-level staff andlack of interest on the part of employer-members prevented the National and the Provincial TrainingBoards from fully assuming a normative charter in training policy formulation and overallcoordination of the training sector. Under the restructured project the Borrower agreed to revisetraining legislation towards mandated empowerment of the training boards but failed to legislate theamended law before the closure of the project. Similarly draft amendments in the apprenticeshipordinance also remained unlegislated. A long embargo placed by the Government on freshrecruitment delayed full mobilisation of project management staff and this delay was furthercompounded by a long period of time required to finalise service rules for the new positions.Frequent changes in key management positions disrupted the continuity of leadership and underminedsustained commitment to policy changes. Failure to allocate adequate O&M funds on the part of theprovincial governments continued to adversely effect the quality of training delivery in existing

- 13 -

centers but despite its efforts, the Ministry of Labour and Manpower was unable to persuade theprovinces to act otherwise. The federal government and the provinces never fully appreciated therationale for demand-responsive training provisions and as a result proliferation of supply-drivenprograms and centers continued throughout the project's life. Despite its being a covenanted action,cost recovery was never seriously considered by the Borrower or the provinces as a serious policyoption. On the positive side, the Borrower fully cooperated in restructuring the project and agreeingto its participative management. After some initial difficulties, the Borrower made adequateallocations for counterpart development funds.

Lessons Learnt:

40. If a Vocational Training project were to be designed today to meet the (laudable) objectives of thisoperation, it would take a very different form. The following are the key lessons learnt:

* Public sector interventions in the training sector should essentially be catalytic in nature to createa participative environment in which the training providers and the employers in tandem can plan anddeliver training programs in response to the market forces - the corollary being that public sectortraining monopolies lead to gross inefficiencies, rapid obsolescence and rampant unemployability oftrained manpower.

* Policy-makers and planners need a greater understanding of the dynamics of job creation and job-related training, if costly manpower shortages and surpluses are to be avoided.

* The informal sector complemented by enterprise-based training will continue to remain a majorsource of trained manpower in Pakistan for a long time to come. However, lack of experience andproven knowledge is a major constraint in developing appropriate support to the informal sector.

* The expansion of training sector should not be governed by compulsions of social demand forvocational training opportunities but instead by the imperatives of economic demand. Vocationalguidance services should, therefore, be established to inform and educate the people for the purposeof enabling them to make correct choices.

* Multi-sectoral policy-setting and coordinating bodies entrusted with a normative charter but withoutlegislated empowerment have little potential of coming to life.

*The recurrent operational budgets are likely to remain short-funded in the short and medium termswhich implies prudent investments in further expansion of the publically supported training sector.Further in this scenario, partial cost-recovery is an inescapable option.

*Full benefits of mid-term restructuring of a project can accrue only if sufficient time is allowed forthe restructured components to develop institutional strength.

14

IMPLEMENTATION COMPLETION REPORT

PAKISTAN SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670PIK

Table 1: Sunmttary of Assessments

A. Achievement of Obiectives Substantial Partial Negligible Not aDplicable

,fX) (X) (X) (X)

Macro Policies ()(X)Sector Policies ( ) (X) (Financial Objectives ( ) ( ) (X)Institutional Development ( ) (X) ( (Physical Objectives ( ) (X)Povertm Reduction C ) ( ) (X)Geneder Issues ( ) (X) t) (Other Social Objectives ( ) ( )X)Environmental Objectives ( ) ( ) (X)Public Sector management ( ) (X)Private Sector Development ( ) (X)Other (New Technology))

B. Proiect Sustainability Likelv Unlikelv Uncertain

( ) (X) ()

HighC Bank Performance satisfacto sfactorv Deficient

Identification ( ) (X) ( )

Preparation Assistance ( ) (X)

Appraisal ( ) ( )

Supervision ( ) (X) ()(Initial Periodi (Final Period)

llrnlvD. Borrower Performance salisfactory Satisfactory Deficient

Preparation () (X) ()

Implementation ( ) ( ) (X)

Covenant Compliance ( ) ( ) (X)

Operation (it applicable) ( ) ( ) (X)

Highly HighlyE Assessment of Outcome satisfactory Satisfactory Unsatisfactory unsaisfactory

() C) QC) C)

15

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 2: Related IDA Credits

Year oflCredit/title Purpose Approval Statuss Comments

Cr 1109-PAK Modernize the physical and institutional 1981 Closed Marginal. Out of the Credit of USSFirst Vocanional intrastructure of occupational training 19.7 million. USS 4.0 million was

|Training Project cancelled

Cr 1198-NEP Increase supply of skilled craftsmen and 1982 Closed Satisfactory. Out of USS 14.3Second Education technicians Aith basic engineering million. USS 3.5 million was(Technical and skills. improve trade skill training cancelledVocational Training) programs and career prospects forPrTojecI crahtsmen and technicians, and support(Nepal) the MOE in the subsector.

LII. 2171-EC Expand and diversify Ecuador's 1982 Closed Satisfactory.Sec(ond Vocational vocational training system. Project closed on June 30. 1990Training Project(Ecuadors)

Ln. 2200-PH Broaden and strengthen industrial 1983 Closed Satisfactory.Vocational Training training. Project closed on April 30, 1991.Project Out of total Loan of USS 24.4(Philippines) million USS 9.5 was cancelled.

Cr. 1698-CE Strengthen institutional framework for 1986 Closed Satisfactory.Second Vocational training for construction industry:Training Project expand supply of skilled manpower for(Sri Lanka) foreign and domestic markets.

16

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 3: Project Timetable

Date actual]

Steps in project cvcle Date planned latest estimate

Idertification (Executive Project Summary) 1/84 January 1984

Preparation 3/84 May 1984

Appraisal 2/85 March 1985

Nevotiations 1113/86 January 22. 1986

Letter ol development policy (if applicable) NA NA

Board presentation 2/86 March 25. 1986

Signing 5/86 May 15, 1986

Eftectiveness 7/31186 April 01. 1987

First tranche release (if applicable) NA NA

Midterm review (if applicable) NA NA

Project completion 12/31/94 December 1996

Credit closine 06/30/95 December 31. 1996

IMPLEMENTATION COMPLETION REPORT

SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PAK

Table 4: Credit Disbursements Cumulative Estimated and Actual(US$ Millions)

< Restructured PC-1 > < Extension >1986/87 1987/88 1988/89 1989/90 - 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97

Appraisal Estimate (USS) 0.54 5.52 16.78 25.78 32.64 35.78 37.081 38.58 40.2Restructured PC-1 (USS) _ 29.02 35.38 46.07 46.07 46.07Actual (U S$) 0.31 0.36 1.09 1.2 17.26 19.92 20.18 22.85 24.65 26.79 38.85Actual as % of estimate (rounded) 57%, 7% 60% 5% 53% 56%0_ _ ___

Actual as % of restructured (rounded) __70%I 65% 54% 58% 84%°Cancellation dated May 16, 1995 (USS) 5.0 millionor SDR 3,210,000.

Disbursement Pattern: Appraisal Estimate and Restructured PC-1 vs. ActualUS$ M

50 -

45

40 ,. I-.-. -.^ l

40~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-

35

30

25

20 .~ ~

10I I1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97

Year of Project

*Appraisal Estimate (USS) a Restructured PC-i (USS) .. Actual (US$)

18

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 5-a: Key Indicators for Project Implementation

Key Implementation Indicator Estimated Estimated in Actuals Remarksin SAR Restructured Project at Completion

A. Develop New Trainine Centers

* Centers-buildings 31 19 4 1 dropped, 3transferred to govtfinancing, beingcompleted.

* Supply Equipment 31 19 18 All equipmentsupplied.

B. Develop Women's Trainine Centers

* Centers-buildings 5 5 2 3 being completed.

* Equipment 5 5 2 Governnent toprocure equipment forother 3.

C. Develop Instructor Trainin2Institutions INSTI)

* tor Instructors I I new at national level All 4 completedconversion & 3 at provincial

D. Existing Centers : Equipment 20 centers 20 centers 20 centers All supplied.I SUINII

E. Consumable Materials Procurement 60% target met by end of Project.

F. TraininE Abroad 10 10 21Person Year Person Year Person year

(62 people)

G. Skill Development Councils (SDCs) 4 2

H. Center Management Committees , 20 1 119(CMCs)

1. Monitoring & Evaluation 5 5 5

J. Trade Testing Cells 4 4 4

19

INPLEWENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 5-b: Key Indicators for Project Implementation(Dates)

Key Implementation Indicators according to SAR Estimatrd Actual Remarks

A. DeveloninR New Centers

* Acquire sites in three phases 1986-89 1988-89

* Appointment consultants 1986 1986

* Develop designs and cost estimates 1987-88 1988

* Prepare tender documents 1987-88 1988 10 centers

* Tenders and award contracts 1987-88 1988,1989.1991. 10+9 centers1994, 1995

* Complete construction 1990-91 1996-97 19 centers

B. Developing Women Centers

* Acquire sites 1986-87 1988-89

* Appoint consultants 1986 1986

-0 Develop designs and cost estimates 1987-88 1988

* Prepare iender documents 1988 1993 3 centers

* Tender and avward contract 1989 1995 3 ceniers

* Complete constructior 1991 1996-97 3 centers

C. Developine N-STI

* Acquire site 1986 1986

* Appoint consultants 1986 1986

* Develop designs and cost estimates 1987-88 1993 Restructured

* Prepare tender documents 1988 1994

* Tender and award contracts 1988 1995

* Complete construction 1990 1997

D. Existing Centers (eQuipment supply)

* Prepare equipment list 1987 1987

* Prepare tender documents 1987 1987

* Tender and award contract 1988 1988

* Deliver and install 1988-89 1990

* Operationalize 1990 1991

20

E. New Centers (ecuipment suply)

* Prepare equipment list 1987-88 1994 Restructured

* Prepare tender documents 1988-90 1994 -do-

* Tender and award contract 1989-91 1995 -do-

* Deliver and install 1991-92 1996 -do-

* Operationalize 1993 1997-98 -do-

F. Commodities & Materials _

* Provide consumable materials 1988-95 1988-95 60% of norm met

* Purchase books 1988-95 1988-95 Full allocation not utilized.

* Procure vehicles 1987-90 1990

G. Additional Staff

* Additional NTBu staff 1986-87 1988-89 Recruitment ban: only 70% ofstaff has been regularized.

* Additional DMTs stafl 1986-87 1988-89 -do-

* Additional instructors (existing centers) 1989 1990-91 -do-

* Additional instructors mnew centers) 1990-91 1995-96 Restructured

H. Technical Assistance

* Appoint foreien consultants 1987-95 1987-96

* Appoint local co*sultants 1987-95 1988-94

* Implement fellowship training abroad 1987-95 1987-96

1. Studies

* Cost recover! and financing 1989 1991 Follow-up action not initiated.

* Financial compensation for private sector 1989 1992 -do-

* Rural apprenticeship training 1989 1994 Study incomplete

* Industrial sector needs for advanced training 1989 1995 -do-

* Women training and employment opportunities 1981 Not commissioned

J. Instructor Trainine (Restructured Proiect)

* Establish 3 provincial STIs 1994 1994-95

1;. Skill Development Councifs (SDCs)

* Establish 4 SDCs 1995 1995-96 Two SDCsestablished

* Establish 20 CMCs 1994-95 1995-96 Only I1 arefunctional

21

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECONTD VOCATIONAL TRAIING PROJECr'CREDIT 1670-PK

Table 5-c: Key Indicators of Project Implementation

PROJECT ASPECT PUNJAB SINDH NWFP BALOCHISTAN

No. of PTB meetings held during project's life 11 2 8

No. of times Labour Secys/Chairmen PTBs changed 10 8 7 121987/1997

No. of times DMTs/Secys PTBs changed 1987/1997 6 7 4 8

Additional Management Staft positions created!recruited 9/9 2121 119/19 21/21

Apprenticeship Training intake 1990/ 1996 3368/5762 1337/2558 720/1010 63/124

Enrolment progression in existine VTCs 1988/1996 5405/7696 861/639 1032/1823 520/882

Enrolment Capacity Utilization Percentage 1987/1995 71/87 33i'29 68/138 103/151

No. of Centres running broad-based curriculum 4 3 I 1

No. ot CMCs established/tunctional 4/4 9/5 4/3 3/3

No. of persons trade tested and certified including 10994/11608 7155/2692 980/1301 1011/843candidates from intormal sector 1993:1996

Implementation ot National Training Polic% Planning started Planning yet to Planning yet to Planning yet tostan start start

No ot SDCs established and tunctionin2 1/1 1/1 0 0

Percentave o0 untrained instructors 35 38 54 47

Average provision ot training materials budget against Rs. 70/- Rs 80/- Rs. 75 Rs. 175the norni of Rs. 150 per trainee per month

No. of new centies under establishment under provincial 2 12 3 6financing outside the project

Procurement ol turniture Tendered Tendered Utn-tendered Un-tendered

Revenue generated through short courses Rs. 0.105 M Rs 0.505 M Rs. 0.200 M Rs. 3.528 M(1996) (1996) (1996) (1997)

Rate of tees/funds/user's charges applied to trainees in Adm. Rs. 20 Adm. Rs. 30 Adm. Rs. 20 Adm. Rs. 50regular programmes Hostel Rs. 20 Hostel Rs. 20

Tuition Rs. 20per trainee/month

Award of stipends to trainees N.A N.A N.A. Generous awards,suspendedrecently.

No. of new trades started in existing centres/trainees 11/861 6/162 3/245 5/410enrolled (1993-96) (1996-97) (1996-97) (1995-96)

* Filled only on a contract basis and still awaiting regularisation.

22

IIMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 6-a: Key Indicators for Project Operation

SAR Restructured CurrentEnrolment

Existinm Centers 19400 17000 11162

New Centers 4950 3040 Not yet operational

Instructor Training 1500 2000 1180

Women Trainine 1500 1500 1126*-

SDC\ and CMCs - No target established 1579 persons trained in64 short courses.

Monitorine & Evaluation Units All units operatine

Tralde Testimin Cells Number Tested Number Certified50000 115629

*Includes Trainees in existing centers

TRADE TESTED INSTITUTIONAL TRAINEES & SKILLED PERSONSFROM INDUSTRIES AND INFORMAL SECTOR

_________ E _____18 1988 1989 1990 1991 - 1992 1993 1994 1995 (1996)J TOTAL

Federal 83 99 175 235 204 311 770 494 905 316 3592

Punjab 6486 6510 6774 7633 7849 11658 10994 8839 10706 11608 89057

Sinddh (1 715 780 3369 2692 7556

N W'FP 980 2184 3106 1301 7571

Balochista 520 580 686 580 504 686 lO11 703 1740 843 7853

TOTAL 7089 7189 7635 8448 8557 12655 14470 13000 19826 16760 115629

(1) DMT Sindh started trade testing in 1993(2) DMT NWFP started trade testing in 1993

(3)&(4) Trainees under the Prime Minister Special TrainingProgramme were also tradetested in 1995 and 1996.

23

IMPLEMENTATION CONIPLETION REPORT

PAKISTAN - SECON'D VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 6-b: Key Indicators for Project Operation

NATIONAL TRAINING BOARD (NTB)AND THE

FOUR PROVINCIAL TRANNG BOARDS (PTBs)

No. of meetings conducted

1987-1996 Dates of last 2 meetings

NTB 7 6dh meeting - 30 Aug 1994, Islamabad7th meeting - 08 Nov.1995, Lahore

PTB Punjab 11 10th meeting - 27 Dec 199511th meeting - 02 Sep 1996

PTB Sindh II 10th meeting - 25 May 199511th meeting - 07 Jan 1996

PTB NWFP 2 Ist meeting - 06 Jan 1987

2nd meeting - 17 Sep 1995

PTB Balochistan 8 7th meeting - 03 July 19958th meeting - 08 Jan. 1996

Data on turn-over of Chairmen/Secretaries of NTB/PBs

Post No ot changes

________ ________ _______ ________ ________ ________ . _________I_ 1987-1997

Federal Miniister of Labour. Manpower and Overseas Pakistanis Chairnan. NTB 7

Federal Secretary of Labour. Manpower and Overseas Pakistanis Alternate Chairman NTB in 7

the absence of tie Minister

of Labour

Director General, National Training Bureau Secreary, NTB 4

Secretai- of Labour. Punjab Chairnan. PTB Punjab 10

Director of Manpower & Training, Punjab Secretary. PTB Punjab 6

Secretarv of Labour. Sindh Chairnan, PTB Sindh 8

Director of Manpower & Training, Sindh Secretary, PTB Sundh 7

Secretary of Labour, NWFP Chairman, PTB NWFP 7

Director of Manpower & Training, NWFP Secreary, PTB NWFP 4

Secretar) of Labour. Balochistan Chairnan, PTB Balochistan 12

Director of Manpower & Trainmng, Balochistan Secreary, PTB Balochisvin t

Total changes 82

24

INIPLEMENTATION COMPLETION REPORT

PAKISTAN- SECOND VOCATIONAL TRAINING PROJECTCREDrr 1670-PK

Table 7: Studies Included in Project

Purpose as definedStudy at appraisal/redefined Status Impact of Study

Training Needs Study To identify needs of semi- Completed Served as a basis forskilled/skilled manpower in restructuring the projectselected rural/agriculturallocations

Cost Recoverv and the Financing of To serve as a basis for Completed Follow-up action notVocational Training partial cost recovery to initiated

._____________________ supplement O&M budgets.

Financial Compensation Schemes and To serve as a basis of Completed -do-Training in Private Enterprises possible public support to

the private sector.

Rural Apprenticeship Proaram To extend the Partially -do-apprenticeship training Completedthrough use of sparecapacity of public sectorinstitutions and programslocated in rural areas.

Sunrev of Industrial Secaor Needs and To identify needs for Partially -do-the Demand of Advanced (G-I) highly-skilled workers. CompletedVocational Training

Training of Women To identify employment Uncommissioned This study remainedprospects and skill-training uncommissioned atneeds in modem project completion.trades/techniques forwomen.

25

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table BA: Project Costs

Appraisal Estimate (USSM) Restructured Estimate (USSM) Actual (USIM)Components Local Foreign Total Local Foreign Total Local Foreign Total

Vocational Training 30.61 18.21 48.82 45.92 29.41 75.33 43.23 26.80 70.03

Apprenticeship Training 1.18 0.29 1.47 2.19 1.91 4.10 3.49 1.36 4.85

Women's Training 5.99 1.91 7.90 7.51 5.19 12.70 7.93 3.80 11.73

Instructor Training 2.07 1.14 3.21 4.63 5.84 10.47 6.51 3.43 9.94

Management/implementation 2.28 2.13 4.41 2.95 10.69 13.64 4.96 8.75 13.71

Studies 0.05 0.00 0.05 0.20 - 0.20 0.10 - 0.10

Baseline cost 42.18 23.68 65.86

Contingencies:Physical 3.76 2.21 5.97Price increase 13.55 7.95 21.50

Sub-total 17.31 10.16 27.47

Total 59.49 33.84 93.33 63.40 53.04 116.44 66.22 44.14 110.36

GTZ's Technical Assistance 0.95 3.85 4.80

Total project cost 60.44 37.69 98.13 63.40 53.04 116.44 66.22 44.14 110.36

GTZ's technical assistance was committed after appraisal and Credit negotiations.

26

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 88: Project Financing

Appraisal Estimate (US$M) Restructured Estimate (USSM) Actual (US$M)Components Local Foreign Total Local Foreign Total Local Foreign Total

IDACivil Works 10.97 1.53 12.50 3.95 0.56 4.51 2.74 0.40 3.14Furniture & Professional Fee 0.98 0.13 1.11 0.41 0.06 0.47 0.62 0.09 0.71Equipment 8.24 11.77 20.01 12.64 18.96 31.60 10.33 15.50 25.83Equipment Management 0.00 - 2.01 2.01 - 3.25 3.25Books 0.23 0.06 0.29 0.23 0.06 0.29 0.05 0.05 0.10Expert Services - - 0.00 0.34 0.44 0.78 0.34 0.44 0.78Fellowships - - 0.00 0.05 0.32 0.37 0.05 0.32 0.37Salaries of Additional Staff 4.19 0.00 4.19 4.21 - 4.21 2.40 - 2.40Consumable Materials 0.06 1.00 1.06 0.04 0.58 0.62 0.06 0.83 0.89Operation & Maintenance 0.89 0.15 1.04 0.99 0.11 1.10 1.21 0.16 1.37

Sub-total: 25.56 14.64 40.20 22.86 23.10 45.96 17.80 21.04 38.84

EECCivil Works & Professional Fee 6.25 0.88 7.13 6.25 0.88 7.13 2.05 0.29 2.34Equipment & Eqpt. Mgt. Fee 2.41 3.44 5.85 2.41 3.44 5.85 1.61 2.30 3.91Vehicles 0.15 0.18 0.33 0.15 0.18 0.33 0.84 1.01 1.85

Sub-total: 8.81 4.50 13.31 8.81 4.50 13.31 4.50 3.60 8.10

CIDAEquipment & Ept. Mgt. Fee 2.34 3.35 5.69 0.74 1.11 1.85 0.54 0.81 1.35Expert Services 0.14 0.36 0.50 1.02 2.82 3.84 1.53 2.35 3.B8Fellowships 0.20 0.12 0.32 0.22 0.60 0.82 0.26 0.35 0.61

Sub-total: 2.68 3.83 6.51 1.98 4.53 6.51 2.33 3.51 5.84

GTZ (Technical Assistance) 3.43 1.37 . 4.80 1.01 3.79 4.80 0.87 2.53 3.40

UNDP (Technical Assistance) 0.29 2.60 2.89 0.41 3.13 3.54 0.41 3.13 3.54

Domestic Government o0 PakistanCivil Works & Professional Fee 4.26 0.59 4.85 6.56 0.92 7.48 9.82 2.10 11.92Furniture 0.23 0.03 0.26 0.11 0.01 0.12 1.43 0.17 1.60Equipment & Management Fee 5.62 8.02 13.64 8.41 12.00 20.41 13.20 5.10 18.30Vehicles 0.12 0.14 0.26 - - 0.00 0.24 0.28 0.52Salaries ot Acditional Stall 7.14 - 7.14 11.38 - 11.38 12.17 - 12.17Stipends 0.69 - 0.69 - - 0.00 0.21 - 0.21Consumable Materials 0.10 1.71 1.81 0.26 0.79 1.05 0.25 2.17 2.42Operation & Maintenance 1.51 0.26 1.77 1.61 0.27 1.88 2.99 0.51 3.50

Sub-total: 19.67 10.75 30.42 28.33 13.99 42.32 40.31 10.33 50.64

Total Project Financing 60.44 37.69 98.13 63.40 53.04 116.44 66.22 44.14 110.36

27

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 9: Status of Legal Covenants

A l T StatusDescriptionoCovantCommentsPresent

Agreement Section Covenant Type Status Description of Covenant Comments

Credit 6.01(a) Institutional C ECNEC's approval of project PC-I Complied

6.01(b) Procurement C Signing of ILO/EQUIPRO contract Compliedfor equipment procurement ._|

6.01(c) Cofinancing C Signing of other bilateral Compliedagreements l

6.02 C Ratification of Project Agreement Compliedby Provinces

3.0 1(c) Project Transfer of Credit proceeds to the CompliedImplementation C Provinces

l___________ ____________ Program

4.01(b) Accounts/Audit CP Have accounts audited annually and Partiallyfurnish to IDA annual reports on complied with.project accounts by March 31 each Audit reportsyear with certificates

received up to1994-95.Qualified reportfor 1994/95under process.

Schedule 4. Project C Establishment of Women Compliedpara I Management Employment and Training Unit in(bifii the NTB

Schedule 4. Project C Employment of Civil Engineering Compliedpara I Management Advisor in the NTB(b)fiii)

Schedule 4, Project C Strengthening of M&E Unit in the Compliedpara I Management NTB(b)Wiv)

Schedule 4, Project C Establishment of Women Training Compliedpara I Management & Employment Unit in the PTBs

Schedule 4, Project C Establishment of M&E Units in Compliedpara I Management each PTB(d)(iv)

Schedule 4, Project CD Meeting of additional staff Complied withpara 5 Management requirements long delays,

additional staffin one provincestill to beregularized

28

Schedule 4. Project CD Acquisition of land for new centers Complied with apara 6 Implementation 2-year delay

l __________ ____________ Program

Schedule 4, Sectoral NC Completion of Policy Studies and Two studiespara 9 Policy/Institutional follow-up action completed, two(a).(b) & Action, Studies partially(cI completed, and

one studvrernaineduncommissioned.No follow-upaction on studiestook place

Amended Sectoral CP Establishment of Center 20 CMCsSchedule 2, Policy/Institutional Management Committees (CMCs) established inPart A(4) Action in selected existing and new training existing training

centers centers of whichII are functional

Amended Sectoral NC Establishment of mobile training Not complied,Schedule 2. Policy/institutional units in selected geographical areas for want of aPart A(5) Action viable proposal.

Amended Sectoral C Establishment of pilot Skill 2 SDCsSchedule 2, Policy/Institutional Development Councils (SDCs) in established atPart A(6) Action major industrial areas Karachi and

Lahore

Amended Sectoral C Establishment of Trade Testing CompliedSchedule 2. Policy/Institutional Units in NWFP and SindhPan A(7) Action

Amended Sectoral C Establishment of Staff Training CompliedSchedule 2, Policy/Institutional Institutes in Sindh, NWFP andPan C(3)(2) Action Balochistan

Amended Project C Appointment of an Equipment CompliedSchedule 2, Management Procurement Advisor in NTBPan E(5)

Amended Project C Transfer of construction CompliedSchedule 4. Management management to Provincespara l(c)

Amended Sectoral CP Introduction of broad-based New VTCs notSchedule 4, Policy/Institutional curricula in new VTCs operationalized.para IOa Action Broad-based

curriculadeveloped andimplemented in10 existing

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~V T C s.

29

Amended Sectoral CP Notification to be issued to remove NotificationSchedule 4, Policy/lnstitutional the distinction between ATCs, issued by NTB.para 10(b) Action TTCs, GVls and VTCs but remained

unimplementedin the Provinces

Amended Sectoral C Introduction of Social Studies CompliedSchedule 4, Policy/lnstitutional Module in the training programspara lOch Action

Amended Sectoral NC Enabling legislation for trade testing DraftSchedule 4, Policy/Institutional units in NWFP and Sindh amendmentspara 10(d) Action prepared but not

legislated

Amended Sectoral NC Revised legislation for Draft legislationSchedule 4, Policy/institutional apprenticeship training prepirod; notpara 10(c) Action legislated

30

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 10: Compliance with Operational Manual Statements

Relevant statements complied with.

31

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 11: Bank Resources: Staff Inputs

Stage of Planned Revised ActualProject Cycle

Weeks US$000 Weeks USSooo Weeks US$000

Through appraisal n.a. n.a. 55.7 112.1 55.7 112.1

Appraisal--Boaid n.a. n.a. 45.6 91.3 45.6 91.3

Boaid--ettecii%eiiene n.a. n.a. 1.6 3.0 4.0 3.9

Supervisiuor n.a. n.a. 184.8 316.4 189.2 348.4

Conmpletioin n.a. n.a. 8.0 14.7 8.0 14.7

TOTAL 0.0 0.0 295.7 537.5 302.5 570.4

Board date: 3 25 86Efteciveness: 4.1 87

32

IMPLEMENTATION CONfPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Table 12: Bank Resources: Missions

Performance ratingStage of Number Specialized

project cycle Month/ of Days in staff skills Impemen- Develp- Types ofyear persons field represented tation ment problems

status objectives

Identification 1184 7 21 Education SpecialistVocational EducatorTraining SpecialistWomen TrainingSpecialistApprenticeshipTraining SpecialistManagement ExpenArchitect

Preparation 5/84 6 24 Education Specialist l

ArchitectVocational Educator

Appraisal 4/85 8 21 Education Specialist .EconomistVocational EducatorArchitectApprenticeshipTrg.Sp.Women's Trg. Spec.

Post-Appraisal 12/86 3 14 Education Specialist l

Architect

Supervision 1 7/87 3 12 Educaiion SpecialistTechnical EducatorArchitect

Supervision 11 1/88 2 5 Education SpecialistTechnical Educator

Supervision Hi1 8/88 4 12 Education Specialist : -

Technical EducatorArchitect

Supervision IV 3/89 4 17 Education Specialist 2 2Technical Educator

Supervision V 9/89 3 20 Technical Educator 3 3 [P. DO, MArchitect

Supervision VI 5/90 3 12 Education Specialist 3 3 IP, DO, TA,Technical Educator CW, M. PR

______________________ ___________ __________ Architect (Cons.)

Supervision VI] 12/90 3 14 Education Specialist 3 3 IP, DO. TA,Technical Educator CW, M. PRArchitect (Cons.)Division Chief

33

Supen ision Vl1 6/91 4 12 Education Specialist 3 3 IP. DO. MTechnical EducatorArchitect (Cons.)Division Chief _

Super ision IX 11/91 5 23 Education Specialist 3 3 IPTechnical EducatorArchitect (Cons.)

Supern ision X 8/92 2 17 Education Specialist 3 2 IPTechnical EducatorArchitect (Cons.)

Supervision XI 2/93 2 1 1 Technical Educator 2 2 IPArchitect

Supervision XII 12/93 3 16 Education Specialist 2 2 IP, PRTechnical EducatorArchitect (Cons.)

Super ision XIII 8/94 3 27 Education Specialist S S CW, PRTechnical EducatorArchitect (Cons.)

Superviksion XIV 1/95 1 5 Education Specialist 2 2 Limited SPNArchitect (Cons.)

Supervision XV 6/95 3 27 Education Specialist S S CW. PRTechnical EducatorArchitect (Cons.)

Super\ ision XVI 1/96 2 9 Education Specialist S S PRArchitect

Completion 3/97 3 7 Education Specialist S SArchitect

34

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Appendix-A: Last Mission Aide-Memoire of Jan, 1996

PAKISTANSECOND VOCATIONAL TRAINNG PROJECT

SUPERVISION MISSION AIDE-MEMOIREJANUARY 07-24. 1996

Introduction

1. A joint donor mission comprising Messrs. Bashir Parvez (mission leader), Liam Owens and Pervaiz Vandel (IDAconsultants), Andrew Standlay (EU) and Zacarias Maribbay (CTA) reviewed progress on the Second Vocational Training Project(Cr 1670-PAK) during the period January 07-24, 1996. Mr. Sher Akbar, Director General, National Training Bureau (NTBu)and Project Director accompanied the mission during most of the provincial visits. The mission met senior federal and provincialofficials and other project entities, visited Vocational Training Centres ( VTCs) under construction, and held briefing sessionswith selected employers-chairpersons and employers-members of Centre Management Committees (CMCs) and Skill DevelopmenCouncils (SDCs). The draft Aide-Memoire was discussed and agreed in a federal wrap-up meeting chaired by Secretary, Ministryof Labour. Manpower and Overseas Pakistanis, Government of Pakistan and participated by provincial representatives and thoseof Ministry of Planning and Development and Economic Affairs Division.

2. The mission wishes to thankfully acknowledge the courtesies, cooperation and warm hospitality extended to it at the federallevel as well as in the provinces.

3. Being the last major mission before credit closure, it laid particular focus on collecting relevant basic data for theImplementation Completion Report (ICR) including current and likely expenditures upto closure and assessing the prospects ofcompletion of the unfinished agenda of work and of the sustainability of institutions. structures, staffing and other obligationscreated under the project. The project entities and officials were also alerted to the need for planning their contribution to thepreparation ol thL ICR.

4. In addition to reporting on the current status of implementation of the project vis-a-vis the ' next steps' indicated by the July,1995 mission, this Aide-Memoire presents:

i) a summary of lessons learnt from IDA's two interventions in Pakistan's vocational training sector over theperiod 1979-1996;

ii) an overall project performance review over the project's life upto December, 1995;

iii) major indicated actions during the period left to credit closing;

iv) a summary of actions mandated after credit closing; and

v) project cost tables, actual and anticipated disbursements and recommendations for a second partial creditcancellation.

5. Lessons Learnt:

i) A major lesson that stands out is that policy-makers and planners need a greater understanding of the dynamiczof job creation and job-related training , if ccstly manpower shortages and surpluses are to be avoided.

ii) Another, no less important, lesson is that public sector interventions in the training sector should essentially becatalystic in nature to create a participative environment in which the training providers and the employers in

35

tandem can plan and deliver training programs in response to the market forces - the corollary being that publicsector training monopolies alone lead to gross inefficiencies, rapid obsolescence and rampant unemployabilityof trained manpower.

iii) Multi-sectoral policy-setting, coordinating and normative bodies have a long gestation period before becomingproductive. The National and the Provincial Training Boards have yet to assume a recognizable and effectiveidentity after two decades of operation.

iv) The public sector continues to have major limitations in construction management.

v) The informal sector complemented by enterprise-based on-the-job training will continue to be the main sourceof trained manpower in Pakistan for a long time to come.

vi) Recurrent operational budgets are likely to remain short-funded in the short and medium terms, which implyprudent investments in further expansion of the training sector.

OVERALL PROJECT PERFORMANCE OVERVIEW OVER THE PROJECT'S LIFE

OBJECTIVE 1: To improve the quality of the National Vocational Training System (NVTS)

6. Ma or Achievements/ Likelv Achievements upto credit closure:

i) provision of new equipment worth about S 16 million to 20 existing vocational training centres (VTCs) andworth about $ 10 million to 11 new VTCs;

ii) establishing national and provincial training infrastructure for instructional staff with an increase in annualtraining capacity from 60 to 300 and an output of 1902 trained instructors during the project's life:

iii) preparation and initial implementation of a broad-based, multi-skill and modular training curriculum in 12VTCs;

iv) planning and deliverv of women technical training programs in 5 non-traditional, income-generation/wageeinployment skill trades on a successful, pilot basis:

vI setting up several formal mechanisms, forums and prototypes (CMCs, SDCs, trade testing cells, standingnational committees on instructor training and apprenticeship training) for employers' institutionalizedparticipation in demand-led training planning, delivery and evaluation;

VI) instituting monitoring and evaluation processes at the federal and the provincial levels to assess internal andexternal system efficiencies;

vii) shortening on a selective basis overall training duration and introduction of short, flexible and market-orientedtraining courses, based on training needs surveys;

viii) successfully undertaking and implementing a mid-project restructuring effort having system-wide implicationsincluding a 50% reduction in the number of new VTCs from 31 to 16;

ix) issuance of a rational and far-reaching national training policy;

x) reconstituting the National Training Board (NTB) and the Provincial Training Boards (PTBs) with 50%representation of employers;

xi) addition of 76 management and M&E staff in the National Training Bureau (NTBu) and the provincialDirectorates of Manpower & Training (DMTs);

xii) establishing women training and employment cells at the federal and provincial levels; and

36

xiii) provision of 66.5 man-years of consultancy services (including TA provided by CIDA & GTZ), 21.3 man-years of foreign fellowships and 426.5 man-years of local fellowship training compared respectively with SARprovisions of 34.6 staff years, 10 staff years and 416.5 staff years.

7. Under-achievements:

i) residual reluctance among provinces to fully accept and implement new curricula ( introduced/likely to beintroduced in only 12 existing VTCs out of a total of 86 VTCs) and in none of the still incomplete 16 newVTCs;

ii) only two out of the planned 4 SDCs established with only one of the two being fully functional;

iii) only 9 of the 20 established CMCs being fully functional;

iv) faltering use of M&E data in decision-making;

v) inadequate follow-up on the provisions of the national training policy among several training providers; and

is major delays in the completion of 2 out of 5 project studies and lack of action on related covenants.

v'ii} interminable delays in amending the current training legislation

8. Failures:

i) inadequate recurrent budget provisions for operation and maintenance expenditures. particularly on consumabletraining materials, with the provinces of Punjab and Sindh meeting no more than half the stipulated norm;

ii) persisting constraints in the effective decentralization of administrative and financial powers to the VTCs/CMCs,resulting in delayed or inappropriate recruitment of instructional staff, inflexibility in the use of resources,enduring rigidities in training programs and political intervensionism in day-to-day decision-making;

iii) non-maturation of the NTB and the PTBs as effective normative and training coordination bodies withindependent resources outside government control.

OBJECTIVE l1: To exnand the caiacitv of the NVTS to meet skilled and semi-skilled mannower requirements for theindustrial and apricultural/rural sectors

9. Achievements/Potential Achievements uDto credit closure:

i) gradual increase in enrolment capacity in VTCs from 9913 in 1989 to 15644 in 1995;

ii) provision of buildings and equipment to 11 new VTCs in agricultural/rural districts and 4 women technicaltraining centres (WTTCs) in major urban centres;

iii) full operationalization of 2 new WTTCs in government-donated buildings and graduation of 921 women traineesin 6 non-traditional, modern skilled trade areas;

iv) provision of buildings and equipment to National Staff Training Institute (NSTI) and 3 Provincial Staff TrainingInstitutes (STIs);

v) strengthening of apprenticeship and in-plant training services through provision of additional staff, vehicles andtechnical assistance; apprenticeship training capacity increased from 5601 in 1990 to 8709 in 1995;

vi) addition of 7 new trades in 20 existing VTCs with an additional capacity of 2592 trainees;

vii) operation of 64 short, intensive and market-oriented courses though CMCs and SDCs with an output of 1579trainees for wage employment/job upgradation;

37

viiii completion of a study on 'Financial Compensation Schemes and Training in Private Enterprises'.

10. Under-achievements:

i) long delays in the operationalization of new training curriculum in new VTCs with only 12 completed VTCslikely to run broad-based courses in the closing months of the project;

ii) non-operationalization of 3 new WTTCs during the project's life;

iii) delayed amendments in apprenticeship training legislation;

I. Failures:

i) non-mobilization of mobile training services in support of the informal sector during the project's life;

ii) continuing reluctance among PTBs to moderate rigid, overly-long and expensive training programmes;

iii) lack of success of the NTB/PTBs in mounting meaningful interventions towards moderating the proliferationof supply-driven vocational training programs and institutions among several public sector training providersled by the Ministry of Education;

iv) non-mobilization of public sector suppon to private sector training institutions;

v~ ) delays in the satisfactorv completion of a project study on 'Rural Apprenticeship Training", thus precluding anyfollow-up action in starting an experimental scheme.

OBJECTIVE III: To assist the Government in establishinn a clear policv for cost recovery

12. Achievement/Potential Achievement:

i) modest cost recovery through custom-built short courses run through CMCs and SDCs;

ii) imposition in some provinces of training materials and trade testing fees/funds to be charged to trainees:

iii) completion of a study on "Cost Recovery".

13. Failures:

i) non-enhancement of nominal fees charged to trainees in existing VTCs;

ii} very slow recognition by decision-makers of the need and rationale of cost recovery;

iii) continuing subsidies and stipends to trainees in some provinces to stimulate artificial social demand forvocational training.

Overview of vroiect verformance since Julv. 1995 mission

The mission welcomes follow-up actions on most 'next steps" identified by the July, 1995 mission. Individual status of progressis reflected as under:

14. ComWleted Actions: Major completed actions include reconstitution of all PTBs and inactive CMCs, further extension of TA,training of master trainers in the use of new curricula, satisfactory resolution of water supply issue in VTCs Hangu and Karak,finalization of tendering for all remaining VTCs except one, industrial attachment of instructors, introduction of new trade coursesand engagement of top supervision consultants by PTB Punjab.

15. Oneoinp Ations: Ongoing actions include regularization of ad-hoc appointments against a few management staff positionsin NTBU and provinces through notification of approved service rules, rationalization of instructional staff strength across VTCs,

38

introduction ot broad-based curricula in selected existing VTCs, procurement of new equipment for II new VTCs and 2 newWTTCs, commissioning of the project study on " Women Training", submission to IDA of reimbursement applications forincurred elioible expenditures, making arrangements for staring short courses in 4 completed VTCs, making prioritized actionplans for implementing the national training policy, enactment of amendments in existing training legislation and enhancementof cost recovery through short courses.

16. Under-addressed Actions: Only limited progress has been achieved on:

i > pavments of escalation claims to contractors on the construction of 4 new VTCs (NTBu);

ii} enhancement of trainine materials allocation (PTBs Sindh and Punjab);

iii) phasing out of scholarships to trainees (PTB Balochistan),

iv) rationalization of training programs and centres inherited from other departments (PTB Sindh); and

v) instituting greater cost recovery from trainees in regular training programs (All PTBs).

17. Under the compulsion of credit closure on June 30. 1996. not much time is left to complete the ongoing actions of tara 15and iniriatine under-addressed actions of tiara 16. The mission urees the NTBu/PTBs/DMTs to complete,' implement these actionsbefore closure and to report compliance to IDA by May 31. 1996.

18. New indicated actions upto credit closure:

i) Enact by March 31. 1996, revised training legislation;

ii) In view of the mandated depletion of IDA's Special Account Advance during the closing months of the project,make available upfront government funds to complete procurement of ongoig civil works, equipment andfurniture and to finance operating costs; (NTBu);

iii Transfer latest by February 29, 1996 necessary funds to PTBs to enable them to accomplish the precedingaction: (NTBu):

ivx Finalize furniture specifications and initiate LCB procurement of furniture for 11-13 VTCS/WTTCs likely toh. completed b! credit closure: (NTBu/PTBs);

Xi > Ensure that at least 3 existing VTCs in every province implement the broad-based curricula with effect fromthe session starting in February/March, 1996; (PTBs);

xi) Complete ICB procurement for 2 new WTTCs likely to be completed by credit closure; (NTBu);

vii) Submit disbursement applications for eligible expenditures regularly and promptly every month; (NTBu/PTBs);

v'iii) Provide additional funds to active CMCs, by divening the seed money from inactive CMCs, if necessary;(NTBuiPTBs):

ix) Ensure continued suppon to SDC Karachi. Activate SDC Lahore and if necessary, prepare a contingency plantor its reconstitution, re-staffing or eventual phase-out;

x) Submit bv March 31, 1996 annual audit reports for 1994-95; (NTBu/PTBs);

xi) In light of guidance provided by the mission, start planning the preparation of the Implementation CompletionReport (ICR); (NTBu);

xii) Procure a generator for VTC (iawadar; (NTBu/PTB Balochistan);

xiiil Introduce the Social Studies Module from the next session in all VTCs and all instructor training programs;(NTBu/PTBs/NSTI/STIs);

39

XIv) Take ov er the possesssion of the newiv completed buildings of VTCs Okara and DMJ. deploy staff and transfersurplus equipment from existing VTCs to them to enable them to start shon training programs pending thearrival of new equipment; (PTBs Punjab & Balochistan):

XV) Make assured arrangements for adequate supply of municipal water to VTCs DMJ and Gawadar; (PTBBalochistan);

xvi) Complete the external efficiency study of the ongoing training programs and based on its results, phase outinefficient programs; (NTBu/PTBs);

xvii) Re-visit PTB's earlier decision to forego the creation of the position of employer-vice chairman for the PTB;(PTB NWFP);

xviii) Resolve by January 31, 1996 the dispute on the possession of land for the construction of WTTC Rawalpindiand if it remains unresolved, scuttle construction plans. (NTBu/PTB Punjab);

xix) Scuttle construction plans for VTC Layyah;

XX) Complete the study on ' Rural Apprenticeship' and 'Level I Training' and commission the one on 'WomenTrainine" and implement the outcomes of the ' Cost Recovery Study' and 'Financial Compensation Schemesand Training in Private Enterprises'.

xxi) Implement the actions under "Next Steps' in the Annex on Civil Works;

xxii) Make viable arrangements to partially meet the salary expenditures of the CEOs of the viable SDC(s) and theirstaff:

19. Actions mandated after credit closure: After credit closure, the federal and the provincial governments are obligated toensure the sustainabilitx of the institutions, programs, structures, staffing and recurrent expenditures created under the project.This would involve the following separate sets of actions:

A. Provision of adequate budgets to meet the contracted obligations of incomplete buildings of VTCs and procurement ofequipment for them after the closing date of June 30, 1996.

B. Transfer of all incremental management and instructional staff positions to the regular recurrent budgets through SNE1996-97 tAnnex-V) iPTBs Balochistan and Punjab have already met this obligation);

C. Sustained budeetary and administrative support to 3 trade testing cells. 3 staff training institutes, 4 monitoring andevaluation units. I federal women training and employment unit. 4 provicial women employment cells and the nationalstaff training institute (NSTI).

D. Sustained support to the highly successful exemplars of SDC Karachi, CMC Hub, CMCs WTTCs Quetta, Peshawar andKarachi. CMC TTC Quetta along with qualified suppon to other CMCs and SDCs which assume palpable operationallife before credit closure. Over time plan the replication of the successful exemplars of SDCs/CMCs.

E. Assured allocation of adequate training materials budgets ( no less than Rs. 150 per trainee per month) to all existingand new VTCs

F. Provision of full financing to procure equipment for about 8 new VTCs, whose delayed completion precluded equipmentsupply before credit closure.

G. Gradual replacement of old training curricula with new broad-based, multi-skill modular curricula in all existing VTCsand the introduction of new curricula in all new VTCs.

H. Gradual enhancement of fees and user charges in all VTCs to cover at least 3540% of the unit expenditure per traineea'-ng with partial stipendary support to indigent and deserving trainees.

1. Provision of NSTI/STIs training to all instructors, with each instructor receiving a module of training at least cnce intwo years.

40i Preparation and submission to IDA by August 31, 1996 Part 11 of the ICR; and

K. Full implementation of revised and enacted training legislation.

Performance Overview of Successful Exemplars of Employers-led Structures created under the Project

20. The mission wishes to pav a glowing tribute to the outstanding work accomplished by the following project-ledcouncil;committees:

21 SDC Karachi: This Skill Development Council has lived upto its promise by completing/ initiating the following activitiesoutside the normal public sector programs:

i) training/retraining needs survey for Karachi-based industries;

ii) inventory of 50 training providers;

iii) constituting trade technical committees to incorporate market-oriented revisions in existing training courses;

iv) custom-tailored training of the first batch of 600 out of 2000 selected youth in employable skills started;

x > training of 12 first-line supervisors;

Xi plans made for the training of trainers and small entrepreneurs;

viii a training awareness program, recognition of outstanding employers and highly-skilled workers, vocational,guidance and career counselling, education and training of informal sector's young workers and augmentationof the SDC's resources to make it self-sustaining.

22 CMC TTC Hub: This Centre Management Committee has enriched the performance of an otherwise lack-lustre TTC throughthe following work:

i I introduction of cost recovery programs of varying duration for the benefit of 107 trainees;

ii) increasing of the TTC's enrolment from 6 to 84;

ij) traininm needs survey in process,

is industrial attachment of 3 instructors per week;

Xi execution of contracted assignment through trainees and instructors on income-sharing basis:

vii starting a trainees counselling service

-ii active assistance in placement of passed-out trainees in jobs;

Viii arranging on-the-job training for 21 trainees in 7 industries

ix) orientation program for employers on what the TTC is doing;

x) partial phasing-out of trainees' stipends through offsetting against training-related expenditures incurred by theTTC;

xi) positive and helpful interventions in the day-to-day life of the TTC;

xii) profitablie disposal of metal scrap collected as a by-product of training; and

xiii) enforcement of economy in power bills with a saving of 25%

41

23. C.MCs TTC Ouetta and WTTCs Peshawar. Ouetta and Karachi: These CMCs have demonstrated their active presencethrough the following activities

i) introduction of short custom-built training courses on cost recovery basis;

ii) starting of production function through internship of passed-out trainees in Dress-making and Beautician trades(WTTC Quetta);

iii) two new trades started in Commnercial Cooking and Food Processing and Preservation (WTTC Quetta).

24. Civil Works: (See Annex-i for details)Timely completion of buildings for new VTCs has remained a major constraint. Under the federal management, of the original10 VTCs only 4 are complete, 3 had to be excluded from the project financing due to major departures from IDA's procurementguidelines, 2 may be completed by June 1996 while I is likely to stretch beyond credit closure. The unresolved issue ofescalation payments to contractors is the major constraint to completion of work at Khairpur, Shikarpur and Muzaffargarh.Comparatively 10 centers under provincial construction management, starting in mnid-1995, have developed sufficient momentumto promise completion of 4 by June 1996, while the remaining 6 would finish variously between June and December 1996. Top-Supervision (TS) consultants have been engaged, however, with the exception of the firm supervising Gawadar, they need toimprove the quality of staff deployed and their format for monitoring and reporting. TS consultants in Punjab were engaged onlyon Jan 10, 1996. and have yet to start work. Tender for construction of the WTTC Rawalpindi was awarded for a site withdisputed ownership. Unless work starts on this site or an alternate by Jan. 31, 1996, IDA will have to withdraw the NOC givenearlier. Total expenditure on civil works to date (Dec 95) is Rs.242.62 m and the additional estimated expenditure up to June1996 is Rs. 141.91 m. After project closure an estimated amount of Rs.75.03 m will have to be borne by the GoP to completethe on-going works.

Status of construction of TTCs and WTTCs

Center Start Expected CompletionCompleted

By June 96 Oct-Dec_____________ ~96

Under federalmiana2ement Sept 94Hangu Nov 90 Sept 94 Jan'iarak Dec 91 96Okara Jun 89 Jan 96DMJamali Oct 92

Khairpur Dec 91 March 96Shikarpur Dec 91 June 96M uz.affargarhFirst contract Jun 89Second contract Jun 93 Aug 96

Under provincialmanaeementGawadar Jun 95 June 96Rahim yar Klhan Jun 93 June 96Multan Jun 95 June 96NSTI July 95 June 96

Abbottabad Jun 95 Aug 96Attock Oct 95 Sept 96Hyderabad Dec 95 Oct 96Naushero Feroze Sept 95 Sept 96Sanghar Aug 95 Oct 96Rawa ;;indi Sept 95 Dec 96

42

25. Equipment Procurement: IDA has issued its no-objection to the ICB procurement of new equipment worth aboutS 6.7million for 9 VTCs. either with completed buildings or with those likely to be completed by credit closure. Meanwhile theprospects of completion of 2-3 more under-construction VTCs have brightened and the mnission has agreed to considerNBTu's proposal to have the equipment being procured increased by about 20 %, in accordance with the provisions of IDAguidelines. A formal proposal with detailed justification will be submitted by NTBu for a formal clearance by IDA.

26. While IDA had agreed to the ICB procurement of new equipment for 3 new WTTCs, two of which are underconstruction, unless a solution is found to the land dispute for the third WTTC at Rawalpindi by January 31, 1996, the ICBprocurement will have to be confined to only two WTTCs. NTBu needs to alert their procurement agent (EQUIPRO)accordinglv.

27. Furniture Procurement: The mission notes with concern that so far no preparations have been made for the LCBprocurement of furniture for new VTCS. The PTBs need to receive the necessary signal from the NTBu along withsupporting resources to go ahead with drawing up specifications of the required furniture, prequalifying suppliers and invitingbids. No more time should be lost in initiating the procurement process. The mission wishes to note that any furniturecontract equivalent to or exceeding $ 100,000 shall need IDA's prior clearance.

28. Technical Assistance: The general utilization of TA, financed initially by UNDP and subsequently by the Credit itselfhas been satisfactory. The mission, however, perceives a critical need for additional TA during the period to closing of thecredit. The fledgling SDCslCMCs need short-term expatriate TA not exceeding 2 mannonths. Further, an extension in theCTA's contract for another 3-4 months beyond February 29, 1996 would be instrumental in holding the project togetherduring its closing months. An alternative could be to invite the CTA back for short visits. subject to his availability. Themission. however understands that except for an amount of $ 40,000 left out of the committed TA for fellowships, noresources are available for meeting the proposed additional TA needs. The mission recommends two options for theconsideration ot'hlie Nlinistrv of Labour, Manpower and Overseas Pakistanis. Government of Pakistan,

i I foregoing the remaining fellowship program and utilizing the saving for consultancies; and

ii) tapping additional credit money, to which IDA will have no objection.

During the wrap-up meeting. the mission would seek GOP's reactions to these options.

29. Studies: The mission notes with deep concern that the studies on" Rural Apprenticeship Training" and " Level ITrainine" still remain incomplete and the one on " Women Training" uncommissioned. The delays in the completion of thethese proleci studies has already precluded the possibility that GOP can meet the dated covenanted actions on their outcomes.Some action has already ensued on the "Cost Recovery" study, but GOP/GoProvinces have yet to institute sustainable modesof cost recovery- The results of the fifth study on " Financial Compensation and Training in Private Enterprises" also remainunutilized. All in all, the protect performance on timely completion of the studies and their use has remained unenviable. Themission regrets that thus far GOP/GoProvinces have been denied the benefits that were to accrue from these studies and urgesNTBu to salvage some of these benefits during the remaining life of the project by completing/commissioningincompleie/unconimissioned studies and implementing the recommendations of the completed studies.

30. Proiect Expenditures and Disbursement: (see Annex-Il for details)According to the information supplied by the National Training Bureau, the following expenditures have been incurred. Totalproject expenditures upto 12(95 amount to Rs. 1718.59 millions which register an increase of Rs. 41 millions with theexpenditure reflected in 06/95. The anticipated expenditures upto credit closing are estimated to be Rs. 2089 millions. Themission is concerned to note that not much disbursement has been claimed since the last mission. Monthly reimbursementsof the order of USS 2.5 - 3.0 millions would be necessary, if the remaining amount of US$ 18.5 millions is to be fully andproductively disbursed.

43

Project _xpenditures

Total Expenditure Credit Expenditure

Component l Disbursement incurred butJune 95 Dec 95 Projected to not claimed

une96

Civil Works 341.80 362.285 414.91 98.66 32.83

Equipment 784.358 793.856 1.018.44 704.22 |

Operatinu Cost 244.843 253.009 366.02 82.09 11.88

Technical Assistance 304.966 307.635 285.43 27.14 |

Studies 1.8 1.8 4.80 -

Total 1,677.767 1,718.59 2,089.61 912.11 44.71

Project Disbursements

Funds Funds Disbursed Eligible EstimatedAvailable Available Dec-95 Expenditure Disbursement

Component D up to 6/96 up to 6/96

SDRs US$ US5 US$ USS

1. Civil Works 4.100.000 6.022.121 1,659.524 3,804.680 2.555.545

2. FurniturerProfessional tee 1.000.000 t.468.810 344,448 826,825 600.413

3. Equipment 21.300.000 31.285,653 19.145.856 11.748.000 13.165.647

4. Equipment Managementtee (TiA. tellowships. trg and 3.700,000 5,434.597 3.850.173 1.074.000 1,298,421consultants services)

5 Books 100.000 146.881 2.231 1.471 1.500

6. Consumable trc materials 3,100,000 4.553.311 2.085.348 2.535,294 1.012.059Op. nl;intnieance

7 Unallocated 90,000 132,192 0 0 0

SA - All Categories 2.693.033

Total 33,390,000 49,043,565 29,780,614 19,990,270 18,633.584

31. Contn-ued Expansion of Suoolv-Driven Trainine Programs: The mission is profoundly disturbed over thecontinuing departures from the National Training Policy, as also from the strong and highly defensible recommendationsol the GOP's if n Manpower Commission Report of 1989. both of which discourage emphatically any furtherexpansion ot supply-driven programs of vocational training in the public sector. An evaluation of the crash trainingprogram launched two years ago indicates a high rate of unemployability among the trained persons. The Ministry ofEducation is cut rently sponsoring a huge program with an outlay of Rs I billion and comprising the establishment of70 new Model Vocational Training Centres and the introduction of vocational courses in 100 selected secondaryschools The mission notes that in its meeting of Nov 08. 1995 the National Training Board did discuss the feasibility ofinjecting a protessional advice on this project in the deliberations of the CDWP but for unclear reasons failed to pursueit. The mission suggests that another attempt be made by the NTB to have the approved scheme reviewed and its scopereduced siQn,ficantlv in accordance with market needs with emphasis on panicipatory programs, as mounted by someCMCs and SDC Karachi. The NTB also needs to assume a regulatory charter to guard against uninformed traininginvestments in the future.

32. Trainine Legislation: Although the pronosed amendments in the National Training Ordinance and theApprenticeship Training Ordinance have cu- ered some additional bureaucratic ground since the July mission, their finalenactment is still to materialize. The NTBu has assured the mission that these enactments will definitely happen byMarch. 1996. With all the emphasis at its command, the mission underscores the dire need for keeping to this schedule.without which the project would end with an unfinished task of the highest importance, as mandated by the NationalTraining Policy.

44

33. Annexes:

Annex-I Civil Works

Annex-Dl Cost Tables

Annex-i - VTCs Training Intake & output over the period 1989-95

Annex-lV - Apprenticeship Training Intake ovcr 1990- 95

Annex-V - Details of Incremental Staff to be regularised during 1996-97

Annex-VI - Current Schedule of Instructor-Trainee Ratio

Annex-VIl - Status of Womens Training Component

45 Annex-IPg 1

Centre-Wise Status of CivD Works

Construction progress and quality as observed during site visits.

Centers constructed under federal management.

1. _aK k and HangI: Completed and handed over to PTB.

2. Dera Murad JamaliThe construction work of the center is complete and is awaiting take over by

the PTB. The water supply connection allowed to the center by the municipalauthorities is of half an inch opening only which is insufficient. There being a generalshortage of water in the area the problem does not appear to have any immediatesolution. Temporarily, the center may have to share water with the labor colony builtnext door.

Next Steps

PTB should take over the center by February 1996 and prepare the listof works / rectification to be done.

3. Khairpur

The center is almost complete, work on the roads within the center is inprogress. The quality is good. The constraints to final finishing are (i) delays in thepayment of escalation due to the contractor under the contract, (ii) delay in givingdecisions in writing by the NTB regarding sewage connection and (iii) delay at theNTB in submitting the forms for getting electricity connection from the WAPDA.Work could be finished by March 1996.

Next Steps

* NTB should give the decisions regarding the left pending works inorder to enable the contractor to finish and hand over the building.

4. Shikarpur

The work is in state of suspension with small items of work being carried outfor the sake of formality. The amount of remaining work is substantial and being ofnature of finishing surfaces will take more time. If the main constraint, non paymentof due escalation, is removed by February at least 4 months more would be requiredto finish the works i.e. by July 1996.

46 Annex-INext Ste1p Pg 2

* Settle the issue of escalation payments.* Make the site supervision more effective by asking PEPAC to change

the RE at site.5. Okaa

After prolonged delays the remaining works at Okara were retendered at thecontractor's risk and cost. Works of value of about Rs.3.0 m (civil works) andRs.4.4 m (electrical) were awarded on June 30, 1995 with 3 months time forcompletion. While the electrical work is mostly completed (except where completionof civil works is a pre-requisite) civil works are not yet fully finished. Very smallitems (finshing of the gate, gate-house and pumphouse) are pending.

Next Step* After due warning, expel the contractor from the site, complete the remaining

items at the contractor's expense and hand over to PTB by February, 1996.

6. Muzaffargarh

Work is delayed due ostensibly to the unresolved issue of payment of escalation butthe contractor cannot be absolved from the charge of indifference and lack of interestto finish the work. There is also the issue of items (e.g. doors) supplied by thecontractor which do not conform to specifications for which the contractor insists forpayment. The mission iterates that no deviation from specifications be allowedwithout good reason and only on approval of the owner. The boundary wall to therear of the site has large openings (varying from 2 ft to 3 ft high) under thesupporting beam creating security problems. Also the rear portion of the site hasbeen filled with sand without regard to the behaviour of the sub-surface water. Thiscould lead to unstable conditions in the long run unless adequate drainagearrangements are made.

Next Steps

* Make the escaltion payment due to the contractor no later than Feb 15, 1996.* Exercise option under clause 17 (action against non performing contractor) of

contract if contractor continues to delay work.* Pepac should propose design solutions to the gaps in the boundary wall and the

drainage of the ground water.

Centers under provincial management

7. Abbottabad

Started in June 1995, the construction at the center is about 50% complete.The work done is estimated at about Rs. 9.0 million of the tender value of aboutRs. 17.6 million. Further progress depends upon the timely transfer of funds from the

Annex-I47 Pg 3

NTB to PTB. The provision of open courtyard, a feature of the dry and hot climates,in the mostly cold and wet climate of Abbottabad should be reconsidered and, fundspermitting, it could be roofed to provide additional space within the workshop areas.The supervision staff have been negligent to allow high ceilings (16 ft) for smallrooms (9 ft.9 ft) and extra-deep excavation for the sewer pipes. The drawingsprovided by PEPAC are ambiguous on these matters. The Top-Supervision (TS)consultants should have exercised vigilance in the review of drawings to remove allshortcomings. The quality of detailed site supervision by C&W, the top-supervisionand the reporting system needs to be improved through assigning better staff anddeveloping an efficient reporting format. (The representative of the TS consultant atthe time of the visit of the mission was ill-informed and admitted to being unaware ofthe issues this being his first visit. The C&W staff were all new to the site due totransfers.) The expected completion date is June 1996.

Next Steps

Prepare updated schedule of construction along with a schedule of fund-requirements for more effective monitoring.

C &W should ensure continuity of supervision avoiding too manytransfers.

-The TS consultants should develop a comprehensive reporting format (a requirement of their TORs) to show progress achieved in relation tothat planned.

8. Attock

Started in October 1995, the progress at site is about 30%. The work done isestimated at about Rs. 4.0 million of a tender value of Rs. 13.58 million. Theconcrete of roof slab of the residences showed honey combing and dripping concretedue to wide joints between shuttering planks. The C&W supervision needs to beimproved. Although two sub-engineers are appointed for the site none was available atthe time of the visit by the mission to the site. The construction of workshop buildingis delayed due to change in specifications of steel from TOR steel of 60,000 psi toDeformed bars of 40,000 psi by the C&W. The mission fails to see the need for thechange and iterates that the specification should not be changed. The delay inconstruction in view of the approaching project closing date is regrettable. Top-Supervision consultants had not been appointed at the time of visit (Jan. 8, 1996).The expected date of completion is August 1996.

Next Steps

* Immediately start construction of the workshop building according tothe original specifications for steel and complete it by June 1996.

* Ensure continuous on-site supervision by C&W staff.

Annex-I48 Pg 4

Appoint TS consultants and require an updated schedule of constructionand fund utilization.

9. WTTC Rawalpindi

The work was awarded and started on a site the ownership of which hasbecome controversial. The mission fails to appreciate why the ownership issue wasnot clarified before tendering. The PTB can attempt to get the land on lease from theArmy or find another site. Unless the issue of ownership is resolved by January 31,1996 IDA would have no option but to withdraw the NOC given.

Next Step

* Resolve the ownership issue and restart construction by January 31,1996.

10. Gawadar

The work done at site is estimated at about Rs 9.0 million of a tender value ofRs 17.3 million showing 45% progress. The quality of the work is satisfactory due toeffective supervision by the Engineering Cell, Department of Labour, Balochistan.Top-Supervision (TS) consultants are also on board and their format of reports issatisfactory. Review of the PEPAC design and drawings by the TS consultantrevealed inadequate reinforcement for beams and other short comings which havebeen duly modified. The power supply to the center from WAPDA is presentlyuncertain and insufficient and a generator will be needed till such time it improves.The PTB should procure a generator of the needed capacity. Water supply is alsouncertain and an underground water tank (not provided in the PEPAC design) isneeded. The approach road to the center also needs to be properly constructed.Proposals for the additional works (provision of a Generator, underground tank andthe approach road) have been prepared and submitted to the DG NTB. The missionhas no objection to the additional works required. The completion date is estimatedto be June 1996.

Next Steps

* Determine the power requirements in view of the proposed trainingprogram and initiate steps for the procurement of a generator.

* Ensure adequate supply of water for the center.

11. W<TC Hvderabad

The work was started in December 1995 and the progress on site is about 8%with estimate of work done being of about Rs 1.2 million of a tender value of Rs 16million. TS consultant have been appointed however they need to improve theirmonitoring and reporting format. The works can be completed by September 1996provided the flow of funds is not interrupted.

49 Annex-I

Next Steps Pg 5

* Shift priority to ensure completion of workshop buildings by June 1996and completion of the center by September 1996

* Prepare updated schedule of works and monitor progress in detail.

Require better reporting and monitoring formats from the TSconsultant.

12. Sangeh

The mission was unable to visit TIC Sanghar due to the law and ordersituation. The reported progress on the site is only about 10% in the five months ofconstruction. The contractor needs to accelerate the pace of construction. If thecontractor makes a special effort the work could be completed by October 1996.

Next Steps

Shift priority to ensure completion of workshop buildings by June 1996and completion of the center by September 1996.

* Prepare updated schedule of works and monitor progress in detail.

* Require better reporting and monitoring formats from the TSconsultant.

13. Naushero Feroze

Started in September 1995, the construction is estimated to be about Rs.2.5million of a tender value of Rs. 17.5 million giving progress of about 15 %. Theprogress is slow and the contractor will need to employ extra labor to ensurecompletion by the stipulated completion date of June 1996. The quality of bricks isnot satisfactory. The supervisors must ensure that the bricks meet the specificationsgiven in the contract documents. The mobilization and earnestness of the contractorlooks promising and the works may be complete by August 1996.

Next Steps

* Have the bricks tested in a building material laboratory to ensurecompliance with specifications.

* Shift priority to ensure completion of workshop buildings by June 1996and completion of the center by September 1996.

* Prepare updated schedule of works and monitor progress in detail.

50 Annex-IPg 6

Require better reporting and monitoring formats from the TSconsultant.

15. WlTC Multan

Work of value of more than Rs.7.0 m out of a tender value of about Rs.14.0 m hasbeen carried out giving a 50% progress. The work is of good quality and there isgood chance of completion by June 96. The PEPAC design has, unfortunately, notprovided for adequate shading of windows in the very hot climate of Multan. Themission has no objection to provision of window shades (conrete louvers orja)i work)for the work shops and multi purpose room windows.

Next Step

* PTB should ensure that there is no hindrance to flow of funds commensuratewith work requirements.

Under PWD, GoP Management

16. NSTI

Started in July 95, the work is proceeding apace with construction of aboutRs. 11.0 million of a tender value of Rs.24.0 million achieving a progress of about45%. Except for some beam and column joints the quality of construction issatisfactory. Shuttering supports had punctured the window shades on the first floor.The PWD supervisory staff should ensure that such or similar lapses do not occuragain. The design provides for a 14 ft long cantilever as a porch. In view of theseismic considerations, now a mandatory requirement in Islamabad, and the generallyprevalent uncertain construction quality, the design should be modified to providesupporting columns under the porch. It is part of the duties of the TS consultants,NESPAK, to review drawings and develop reporting formats. The staff deployed fortop-supervision need to be aware of their TORs.

Next Steps

* NESPAK should provide modified drawings for the porch withsupporting columns.

N%TP Pr.j.d Phase II

Latest t%penditures inclusive (of rcvised estimatesAnnex II. up to closu rt or IDA Credit on 30.06.199M.

?rcnd. Cos Work pstd (or E,d...t fr furt.~her r.iI.... of bl.I Balance requir.4 wAind3 FtJ wed IamPunI 4'ud Url toCost Tablex o Cosrwl VP toi. it 2. 1995 .14.nUmr by NMh *%p-.dlf,.,. untul credi3t I i.1 41..l,3 la et Awe w4 be dbw

Prrmeup ohi,t1 341.0639 ed.urt en 30066 3996 DCA bCA by09 39916Amended DCA

I. Cti, Wed rk_ _ _

(11.11) Cml * .tI.dI. ~~~~~'T( lange 932,13041 0 ~~~~~~~~~~~~~~~~~~~~~~932.0430 It 0a 2.VTC Kuruk 1.35.2.13041 0 ~~~~~~~~~~ ~ ~ ~ ~~~~~ ~~ ~ ~~1.152.01414 0 -0 a

4. vrcok~~~~~~~~~~~~~~~~ ~400.000 43 44141.000 II 0 0 05. VTCShIkarpar~~~~~~~~~~~~~~~0w 125,04110 2,141410 0 0 0

4. VIC Khalrpur ~~~~~~~~~ ~ ~~~~290.000 0 21141,000 it 0007. NT( DeraNlturad Jamall ___ 0 0 43 0 0 0 0

I. ~~~~~TCAdock 544,000 0 5.~~~~~~~~~~~~~~~~~~~~60.000 0 00009. VTCLAakyI - m..000 0 25.4.00 0 0 0 0 0I3S. VTC Nausheg, Fern. 3000,00 0 0 0,0 - 0 SII1. VTC Seaghar 500.000000 0 00 0 6 0 0 1 2. VTC Ahbbeuiahad 4,3o.00m 0 4,3430,000 4 -- 0 6 0 g J

13. VT( GZ.,.ador 32000 - 32,000 33 0 0 C4. F.ie. smIYrka - 003 0 0 6114. lWfC Mmltan400,0 0 000ooo o 0 0 o oI S WIT(' RaualPIndI 2,000,000 0 20000 0 0 0 0O16. WrrC lydetabed -5500.0 000,000 41 0 0 017. NSTIrIslongabod 0 0 0 41 0 ___ 0 0

33. WITC Que4lu ~~~~~~~~~~~ ~ ~ ~ ~ ~~~~~~~~~~~~11,000,01 11 .000,003 0 0 03,1 vrc ~~~~~~~'ehmrt __ ~~~~~~400.000 01 4043.04310 4 0 0 0

20. V1('s J.ruaw.ada T r Singh~ 30,0 00,9000 4 0 23. med mi fin. rapped rn4rrs 23,233.,000 60 23,233.410 330 00

Cost of tAnd - Sub-4.4al: 554,973.000 0 55.973.000 4 0 0 9

(3.1) cing 4'.,m ~11onl.cc uepp.ed to*" a I6

MAk eep.u.d 4Ow3io C4%

I. %_TC 33.nguA 1341.9 9,35,3,674 3.414)0.000 20,15.".674 41 300 20.153.674 19,13,6.74 3,4000,902. %~TC Kerak 17.5,92,00 _ 17,213.341 3.270.022 243,4$M.943 0 100 N2,48i0,ftj 17,2118.34 3,276.6223. 'VTC '..afgh (.rigInai & re-tender 24,33,945 33,099,66 5,000000O 23,099,660 2,930,340 - 49 I PI 3,933 8,8143,933 2,450400_f4. VTC Okgers 10,713.401 __17,120,016 3.37it914 3900004 9 9,316,49W 3.019 91 3

5. V1CSlelkargww 3~~~~~~9,474.219 __20,5.5.6.69 cw44j10 27,000.000 43 4i 34".2so 11.672.793 3,1572137 rbrt6. VIC Kbalrpur ~~~~~~23.07-5.570- 19._91'7.T79 6.1.2 600.0 14 746,1000 _9.759,565 2.900437. VTC 33ev. Muted JainalI ~15.75.0.760 12.6110.013 5-.339.917 1350000_ _ 100 10,500,000 iiso,i s,a0g3

i VTC AIted,1.8200k.1.5 7_5.0,00 9,430.450 _ 50 I9,550 49 4,6454211 970,421 3.475,009.V'TCMNegaleerwFets. - - 3740,6 3.3103,253 7.500.000 1130,23 ,093,-747 4-9 5434434,84 3.478930. VT(c 34moIahr' ____ 6.0377 i6.0143 7.500,000 10.036.015 _ 9.943.93 49 4,91 7, 447 3,42,441 347,0

II. '.T(' Abb.nab.d 3~~~~~7,630,235. 3 .504.000 9.50.000O 33.04=10100 4.0041.00 300 I 3.00.6110 n ai oelm f I a-

twrp P..j.d maw. ig

1I. % TC (,iwidiar 17,366.467 9.329,5211 14.4m30472 24.2666.000t to lOS 2.1260,000 __ .329.523 34.4.30.472IS. 1:cosIe I4jmln, or Ikhon- 1.1 .1 .44.03115).03 9 750007300

34. wirr'" Nluukon 13,970,104 4.6.9 703042.o.o 9 ,7160 2.333 33462

wr.'A I c RwaIItI1.4.0)0.06,00 601).WI3.06b,00 49 2,4000 02.400616. Wi(ltIIv-deruh.d I 595).1 63 2.9.757544.93. 725 1.2 0.106.27.9 49 4,047.92 332.2 365.17. NS3I IIsmhu 24.1122.517 in,7210.404343 20,77200 033)35603)6 49 14,00 5.2.56.720 16.17112116

33. PSIJIs of Pehwr Quoete. and Kntri 9.000n.1m10 .66.O6 a49 44 3000 .4000 019. wrrc 'e.ho-.r(lank- or )m,.. bId1 ) I 9.W01)000 Ii 19.00)0.00 0 49 9336.004 9.310,000 0

jO. kmas~tion to zimintI etrnr formefrades 5.0046.000 05,000.000 49 2,450,1000245.0 0

~TC ~ebrI (osgInol ad rwaedwc 22.2314.42S I3.323.075 5,676.925 2.0oO- - 0 - 49 33.7401.00W 3.973.37 213.9-%-T(,sJaron-walal/T*.baT ek4uS-Ingl 32,440.620 -21,326,911 7.500.000 29326,911 w 341.0911 49 34370.136 3,9,3 ,7.0

(ewl o rCuaerucihhm - Sub-total: 333,447.40f? 242.623.83J5 141,913.316 3314,537.651 75.032.916 243.130,794 1353235.273 04.30,52

13611. AN A.hedd by IDA (A71%

(2I.3.) FMrmi a" for ?u(T13 1113 (JA3B)_____ ___

1113- Punjab - 0 O000_0.0 77 636,060 0 63600 k1163- SImdh 300.000 0 300,000 0~~~~~~~~~~~~~~~~~~~~s'O 77 61 6,0001 616,06 0

119 - Noalerlusfn 145770 1.24!,77 0 -- 77 959202 959202 rrti- NWF? 0 000,000 300,000 ~~ ~~~ ~~~~~~~~~~~~~~~~~~~~~0 77 636,000 636.0W

I. VIC long. ~~~~~~~~~~~~~ ~~0 6,00,004 l,,08iomm 3.040.000) 77 770.6fte __ 7730400

2. vcrc mma_Tuk01.0.04 300064 300.)0 77 770,00 __ 0 770,0004. VW' NlMotrs aI ,0.0 .000060000 7 770,63 __ 0 770,04

4. VTC (Nine. 0 1.000,000 3~~~~~~~~ ~ ~ ~~~~ ~ ~~~~~~.000,000 10000 77 770,00 __ 0 ___ 770.SftS. ''TC)6hlinrur 0 1,000,00 .000 00 3.000.000 77 770,0W S __ 770,000

6. ViC Khalrrur 0 1,000,000 3.000.000 __~~~~~~~~~~~~~~~O 1.w6300.00 77 776,00 - __ 770.06407. vTc eto. Niuarad JA'uil 0 1.000.000s 1.00.0 .0,0 7 77,0 7.

3.V(A-blctlabod 0- 3.000.00 i,m,m _ .00,0 77 770,4000 I 77$gM

9. 'eTC Nagaliera Fermee 0 3,000,60~ ~ ~~0 1,000.000 3.000.0W 77 - 770,000 -- 0 770.4040I 0. WrC A6wark 0 6.".00000 3.000.000 1.000,000 -- 77 740t74e

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _1_ 7 7 0,0 0 007 7 0 01I. %%eTlCGadr 0 3nn.00,0 000 003,,100Wi .771 770.000 I 770,000

1S. 'AI ufa .0.0 600030000 77 770,40W 770,0W

35.1N511 IgIm.bad I ,50,00 -- 3,00000 6.0.0_ 7 7 ,550W03,50036. 3z3.46ng W9TC Peabawar 0 I,0W,000 6,000,000 3.000),0W _ 77 770,0W 0 7710109 o

"d SOL 8wh 0 77 I.IK"s 0~~~~~~~~~~__ (

vrc veha.4 06 .W06000VrelC Jramwuls I Tebs Tilk 30nglu- 4.9411.00 0 0 0

1Coa of ~l4utv- Sub-total: 2.4,3 1100023,145.717 24.000.000 17.321 179 I eO__-

MM PrPJe flnte 11

(LI) PIWI,Mh,.- -fen. ::."ma Top Mlapmnd-tC Cemmu!an4a.ICt 00%: ntA (h77%

PEPAC C.n-uliants fe" (Funding b2q 14,M41.0X2 21.195,446 3 ,000 24.195,446 0 77 9,932,261 _ ,300,555 1,551,712conOetr eum of *r. 10.3lJ3,I3J)TS Comsulws - NS'I ulljl -ng- _ _ s0o,oo- ' 2,Sne-J FiO^o sso,n-ee~- 0 n - 77 4233500 63.525 359.975

TS Cemu34s-NSi3 Building _ 550.000 32,500 - 461,504) 55~~~~~~6-so0,00 __77 _________-"TS eisua-h - PunJajb _6_50,000- -~ 650.000t 6si0,00o ____ _ _ so,oon So __

TS Consults - ndh 1,610,000 241,500 ,63,54s00 1,61 0,00 n 77 1,239.700 MM5,955 1,05,745TS Co. mu!Z."tan - NWt Fl' 425.0tv 63,750 343.393 40 6,943 0 _ 100 40K,94 63,750 343.193TS COFu"ts. RU lohuian 4_03,762 192.4394 357.906 5.",000 n3 5t50 3o 92.0194 3S7,90

Ceot of PrnfcwuInil Fe, - Sb -otal: 111,479,11U 21.775,290 6,137,104 27,962394 0 13,95 2,9s5 3,7 4,367,03

t3) T u Ctiwr ulgpm.-

(3 .)_uImn :had pr~Ie. ::O ._..-:

centres 4 PTIo end NTDI/ATr etc., _ ____ = _ _ JxJ,stso,oo e444.33,00 444,0.000 444,to000o _'0__

-uitpment rpv1ded In '94 tn NSI1 _ __

uIJss 450,500) under liii 13.500.0001 1i3,5o,00 0 0 13,500,O0 13,5N00,00 0._. _ s ....... __ ._ .................. ...._ _ . _ _ _ _.L

onmputers for N_il and I& F lnit_ 2913,570 293,570 0 - - -00 291,570 291,570 0(uss 97i9) under LCR

Nllillng n-rhlne *cceorleato Rn eltg centre. _ _- _ _,4,7 30 __487 _,.87 -_

(V.lUe Iss 333i,299) under dirwt etracrtIng 5.64J.970 5,6Jtt,970 n s, ,64 tt__ S.____970 o

k3.2) Tealug upseal under ICN

-NTII / NSTI - - - _ = _ 0_ -25000000o~ 25.000.000~ _ 0 300 25,00,0 25,00,00

(3S) Taag qp t end I CB _#__ __

(OtIg_y taled i Uf 5 pqt ftn) _________

3. VI(3 u (DOS) n 4030016,000 -403000000 0 -io30 40*0 0 40,,1. VTtC 3rck (DOS) 40,t0.000e 40,30.000 ° 1i00 40,30 0 4 ,3. VTC I'tluzaffargacla 0 2s,noo,000 25,000.000 0 300 2500,000 0 25,0 0J. vrc ali,c- 0 25,00000 25,000,00 0 1oO 25,0,0 2S,_0*. T1C 1;hm rpue 0~ _p Or 25,000,000 25,000,000 0 ioe 25,000 0'7. *eTC D7. mmu-d Jn.m.il (DDS) 0 40,3160,00 0O,W30,000 0 100 40Jo_ 0 4 tA.VTC S_lkrp - - 0 2s 000,0oo0 25,0(00.00 a t o00 25,M00 2S_ 15,09. VT<C-c dr C(DDs) 0 4011,300,KOO 40,3000o00 0 100 40,,0e o 40J,_000

. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ _ . _ _ _10. % CTTC llmk 0 25,000,0e0 25,000,000 0 300 2S1,00000 0 2 5, 0

IIVTIC V33,_ __b--- 0 - 25ee,000,00 25,000,tt0 o 0 - o0 25_,00,0 e --_ 5*0,00(AVTC %,o -h 0 25,000,0001 25,000.01011_ 0 I0 _SAo.o 5 210,000'eTC. J-=mnml 11olmTAbTkSteqIu 000.0 000.0 0 I" 000,0 0,0,0

32. -NSfl bImbdfii 1roi,-- i500 7,500.000 a 300 17.41ubm mae

N'.'T Pr.jnI I'ha. I1

(3.4) Op_rot lmhI II now __.______

(LCD US$ 0 00lc",) 0 37,400,000 37,400.ooo0 o 0 37.4t000 0 34 -,t-

3.B E4wlps 3 WPIdE bS (fk3A ______ ___ __ __

at I*% (Cs 24337,00,76.,.0J e0 6.76,J01 _ e0 iso 40,76a3,64 60.763,04_ 6

C.oo of hl_Oing .quIp.n.s Sub-1mewl s111.033,55.l, 1 o,110 93,1333.54 a 93s133,ss4 525s,3.5 46830,6

lst-o g--w I -O Kquipr.~ 10)-t-0% iS-2s57- _0 0 Sj,eee,eoo 0 e si,oee,etw ~ 0 tooAmeodowuut (5d94) hal U SI 0.2

76m J°300,00 0 3,300.100 o0 to0 3130,00 tt,30,60 0

Amendme,,ft (519)_ IJSS (0.1 44626M 0 5s.0.t0,0 5,00,00 to 300 5,060.000 6 5,,06

Equipment mansemenl fe - Sub-loeel 617.300.o0 5.060,001) 72,360.000 0 72,0. 67 5.

22.135.422 19,003.30 32.178,723 ) e00- 32,170.723 22.135,422 10.043,301- IijN3l' 1013,952 .5 o0 1011.952.567 0 t0o 16)3.952,567 10,52,567 S

(IDAv _ __ ___ _ _ _ 117.000.000 27,30,000 44,) n 13411100001100 44,301,01 117,0,611 27.31,11

Come of T.A. Induding Fellow,hlps - Sub -toal: 248,(07,"9 37,343,301 285,431.29e 0 235.431329 24,117, 37,3,301

U) ~~~mMoa ~~~1I~~% t4P61.00* _ ~~~~3.300.440

Ct.e of StudS.. Sub-4t.l 2.057.44o 1,743,000 3,300.440 0 3,,440 L*57.440 1.743._0

ift' 6 00 646I6 IMA ... :- 7:IU MpU

Cot of RAW&l - Sub- t.dh s o o .0eo 9400o 0 0 ",GA0."W t7 1 ,46

(4) C.omathMe ftrukig remot..4u1, .parubam(td klesXte_U "omi __tusIeo of ''ddIqI,,naI _

sta

NIB? NSTI J 6.15.210 4,to,00e 9.153.230 - 0 37 3,336,714 2,276,714 1.110.101,

r x n - PunJ ---- ,341414 3-5001,000 4.341,434 4) 37 1,791,323 4496,323 1,29540WI'I'3 - Slndh 2.0)6.391 241061000 4.036.393 e 37 1,511,"3 771,193 740,1101`I11 n 33gI.hl,6n 11,759.705 4.00o0.4)0 15.759,705 0 3i7 - 5,"33.6l 4,351,301 3i.4io,0W -Pill- N Fr -3762 4,soo,00 4.53.762 0 37 1,i93.232 33,212 1 A6.111

(6.2) (_eustouo6 _aloom* 4 )

NTO / NSTt 60,622,702 15,000,000 75,622,702 0 37 27,916,4t 22,430,466f S.16101 1P rIl - Punjmh_ _ _ ~ 20.235.731i- ~ t ot,-ene 3.0000 -21-1.2JS,7 jl - 0 _ _ 37 301,447,220 7.467,220 2.96,6

rrn - Slndh 3I,13S,7116 5 4140.000 36.334.736 0 37 S,969,373 4,339,S73 -btt

t-t itt t. . l._........6

Plt - NWFP 18336.703 7,00,6"0 25.336.70e 6 37 974,542 6,734,52 2,59.k6

NTI / NS-r 26.U*637 24.414160 23,310637 a 37 - A5.3 7,72S5, 3 92S3,srin - P_j.b 27.39.169 63439.169 a 37 13.445,493 10,36.493 3.14568PIis - Slndh 7.112.213 3,508.66 16.492.213 a 37 332.419 2,657.41i9 1t.29&Pill - ll.lucImblu. 34.901.-124 3860660 42.601.424 0 37 __35.37.27 12.913.S27 2.9-66rllR - NWz FP 163291 6,n06.00 22.796.36 * 37 .435.55 4a.5- - 2.45.6_

C_d rf Inaf _.lih .prlSuu umm.Iu,eeu.urr md uubr4eg - Smb-*.t.I: 273,089.459 3 . i.19.4"9 * 13US.427. 101.017.23 34.4t0.66

(71) EqImmi :pf.~.i~id. ,.'~ -

(I I.. r'. .. whh .dk.M fur- 9 ~ - -l.. - 3.5.0 -. 5.6 6- ---- 0,556.606 6, 6._ 6.60(7.2) Flusir Impedi_ I fuwrdlugchr fur 2.5_60 _. 0 6 1_ _.5.6 _ _ _ _ _6 W* T-Cs d NStI (3Or zju") A -2

Cud ur# f uakIpu.1. o.dkUre - Sub blE:0 1 l 0 I0.0 In,.3nn n 200 l6,36,66 6 16

GRMSS TOTASL I.i3I.416.282 75S,747.221 2.224.163,0s5 9.632.9% 1.772,9 f3" I .107.767.57 "5.355.254

3pm 4h6qur._ _ _ __ _. ___

.s1f. fro wdtk vh. V.IurI ._________

Tua. Tul Sh 0 Jm Im_ __ _

Pr.fmj..aI dc*ufm 0 229.133 77 176.433 176.433 -

*mwbrulu cu (ou u. 53J.3 .91 J9 2,.130,13 24,11 ,13 6VmuIlmr (s.f 0 .. .ohlol 77 4.620.066 0 *, 20,667

Truink, q elf (u. *.'') _6. . e 75.60,W6 300 75,006.066 73,6 e

FSTtIl A[Ii EDiN Al . T * r I s 7115,747,221 2.0n.667.461 9s.032..6 3.167.639,776 1.66.466.9159 60A31.a 115 1D

v Iemill

VTCs TRAINING INTAKE & OUTPUTOVER TIIE PERIOD 1989-95

PROVINCE ENROLMENT DAY/EVENING N EO SSION.I1989 990 1 193 1 1

PUNJAB 6747 5871 5852 6854, 7476 7526 10353

SINDH 1283' 539 869 852 1019 1117 2070ONNWFP 12101 14401 1531 1428 2071 2184 22721

BALUCHISTAN 581 580 580 846 1011 763 830

FEDERAL 928 98 98 160 134 138 119

TOTAL:- 9913 8528! 8930 10140 11711 11728 15644

( \I)A'l AVI H\1 1 )A IA\N91'15 \W K I

57 Annex-IY

APPRENTICESHIP TRAINING INTAKEOVER 1990-95

Enrolment per YearProvinces 1990 1 1991 1992[ 1993 [ 1994 | 1995 Remarks

Punjab 3368 5039 6564 5922 5491 6048

Sindh 1337 2678 2265 2057 2219 1535*

NWFP 720 768 775 849 744 945

Balochistan 63 93 93 198 187 153

Federal 136 44 60 34 40 28

Total 5624 8622 9757 9060 8681 8709

* Decreased due to privatisation schemeand law and order situation.

58 Annex-V

Details of lncremental Staff to beregularised durnng 1996-97

Peduuj I"njb sjb& N.W.P.P. Dalacigas Ta

CO)MPONENTIrYPE OP STAFF sps DCA PifedDcA Filw C PNd DA Pa DcArilia DcA illed DrA FWdw

MANAGE&CENT AND WMLJD.(~AT1ON CELL Joint Director 19 0 0 I I 0 0 I I I 1 3 3

Deputy Dirmctof 1I I I I 0 1 1 I I 1 1 s 4AusioulntDsrector 17 I I 2 2 2 2 I 1 2 I I 7Administrative Stuff 1 - 1 6 0 0 1 0 1 0 0 to 10

MONITORIG AND ErVALUATION UNITDy. Dimecior Geners(20% BPS) is I 0 0 0 0 0 I 1 0 0 2 1Programnner 17 I 0 0 0 0 0 1 0 0 02 0Resarch EcoeomistlOfficer 17 1 0 I 1 1 0 1 I I 1 5 3Statistacs Oflicer 17 0 0 I I I I I I I 1 4 4Data Entry Operstof 12 0 0 0 0 0 0 0 0 1 I I IAdrttnistrst,u Staff 1-16 I I I I

APPRJE2TiCESHIP TRAI4NINDirector 19 1 I 0 01 1 1 I 1 I I 4 4Depuft Director is I I 6 61 2 2 I 1 1 I II I

Ass,sIaeTD,re2r~~~~~~~~~r 17 I I 0 01 10 t0 2 2 2 2 15 15

Admi-nistral,,r Staff 1-161 II II II

N4STL'STI'sI

Chief Staff Trainer P,oerammcr 19I I I 0 0 I I1 I I I 1 4 4SenIOT 5!2ff Tramncr Depuly Director Is 6 6 0 0 2 2 2 2 2 2 12 12.Staff Trainr Auss DircctorChicf Drauehisman I? 14 7 0 0 4 4 7 7 4 4 29 22Asst StAff TmancrTech Officer Cameraman] 16 16 9 16 9

Te-chnic ianAdminislrailse itaff 1-16 0 0

TRADE TESTING BOARD

Depuf) D,recbor Is 0 0 0 0 I I I I I 1 3 3AssisuantDireior 17 0 0 0 0 I 2 2 2 2 2 5 6Adrnin,sirati-: Suaff 1-16 3 a a

EXISTING CENTRES

Chicf Instru:ior 1i 0 0 7 7I 0 0 0 0 3 3 10I 10Senior Instructor 16 0 0 42 61 0 0 0 0 6 6 45 12

Itsvtnjztoes ~~~ ~~ ~~~~~~14 0 0 70 26 0 0 0 0 20 20 90 46Admin,siran,c Staff 1-16 14 14 14 14

NEW CINTRBS - MORNINGIEVEN4NG

Principal la 0 0 0 0 0 01 0 0 2 2 2 2Chief Instruciors 17 0 0 0 0 0 01 0 0 2 2 2 2

Senior ______nstr_______o___ 16 1 0 0 01 0 0 0 0 0 6 6 6 6lnsimciors ~~~~~~14 0 0 0 0 0 0 0 0 20 2) 20 20

Adminisirati ________c__Staff___1-16 0 0 0 0 0 0 0 0 1 52 52 32 32

WOMEN TRAINING & EMPNT MNTESI

Chirefntoruc T19 I 0 0 0 0 02 0 0 0 10 ISDeorIutyDrector 16 i i 2I I I I I I I 1 50 9AIsisinxliror 17 2 0 I0 9 3 31 2 2 2 51 19

Admninstrattsc Staff 1-16 is is Is

Total 49 31 157 64 43 38 39 32 2D9 Mg 497 37

CURRELNT SCIIEDULE OFINSTRUCTOR-TRAINEE RATIO

Province j 1993 I 1994 1995Enrolled tNo. of Ratio Enrolled No. of Ratio Enrolled No. of Ratio Remarks{Trainees Instructors iTrainees Instructors Trainees Instructors --

Punjab 7476 1029 1:7.26 7526 1029 1:7.32 10353 1252 1:8.27 ImprovedSindh 1019 1661 1:6.1 1117 152 1:7.35 2070 152 1:13.62 ImprovedNWFP 2071 302 1:6.86 2184 339 1:6.44 2272 339 1:6.7 StaticBaluchisLan 1011 252 1:4 763 252 1:3 830 216 1:3.85 Slightly improvedFederal ! 134i 19 1:7.05 1381 18 1:7.66 119 18 1:6.6 Erratic

U N IDAI 'IN'1RAINI I WVK1

60 Annex-VIIPg 1

Annex-VIIPg 1

STATUS OF WOMEN TRAINING COMPONENT

1) 12 staff members have been sent to Canada for managementlevel training and skill up-grading from, WTTC's Quetta,Peshawar,Rawalpindi Karachi and WTEC's, Quetta, Peshawar,Karachi , Lahore.

2) 2 staff members of WTEC's Lahore have been sent to Canada for3 months management level training.

3) 7 staff members of WTTC's, Quetta, Peshawar and WTEC Karachihave been sent to attend the workshops on distance educationat Bangkok.

4) 3 Directors for PTBs Quetta,Karachi and Peshawar have beensent to Canada for Study Tour.

5) 3 trades at each WTTC's Quetta and Peshawar have been startedand new trades are scheduled to be started in coming months.

6) Equipment has been provided to WTEU, WTEC's ,WTTCs, Quetta,Peshawar, TTC. Multan, NSTI and WTEC's Karachi, Quetta, Lahoreand Peshawar.

7) 9 workshops have been conducted which were attended by morethan 500 participants all over the country to motivate femaletowards technical training and employment.

8) Programmes have been launched on Radio Pakistan to motivatefemales towards technical training and employment.

9) CMC,s have been established at WTTC, Karachi, Quetta andPeshawar and they are actively involved in the activities offemale training and employment as per their schedule.

10) The recruitment of female staff have been made in WTTC's andWTEC's and WTEU against positions available in the project.

11) Monitoring and evaluation workshop has been conducted atBhurbon to set the indicators to Monitor and evaluation theProject.

12) Steering and Project Review Committees have been establishedand meetings conducted to review the project activities.

61 Annex-VI IPg_ -2

13) 9 Skill Standards have been developed in English and Urdu forthe trades being offered in WTTC's.

14) WTTC Multan has been started in a rented building and WTTC'sHyderabad and Rawalpindi will be started in rented building incoming months.

15) Terms of Reference of the study on women employmentopportunities has been prepared.

16) Management Plan by CIDA has been finalized

17) Terms of Reference for the Base Line Study, Curriculum andInstructional Design Material, Media Promotion Specialist,Beauty Culture, National Policy Coordinator for WomenEmployment and Training have been prepared and finalized. Theyare scheduled to start their work in coming months.

18) CIDA has provided cooperant up to 1994 and recruited CEA whois in place since January,1995.

19) The CEA has provided two advisors at WTTC's Quetta andPeshawar and one at WTEU, Islamabad. Advisor for employmentactivities will be provided as soon as possible.

20) Video documentary has been prepared about the activities ofWTTC's and WTEc's.

21) 80% of the staff of WTEC, WTEC's have been locally trained intheir relevant fields.

22) Recruitment Rules of women component at WTEU have beenfinalized to make provision for the appointment of women inrecruiment policy of NTB.

23) Action Plans of WTEU, WTTC's Quetta, Peshawar and Karachi andWTEC's Quetta, Peshawar Karachi and Lahore have been preparedwith the assistance of Canadian Advisors.

62 Appendix-B

Pg 1IMPLEMENTATION COMIPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Appendix-B: Borrower's Comments and Contribution

a) Adeauacv and accuracv of the factual informnation contained in Part-M of the PCR

The facts and information contained in the Implementation Completion Report are reasonably well documented.Observations in the ICR have been mutually shared during various supervision missions which supervised the project on regularbasis.

b) Comments on the analysis contained in Part-I of the PCR.

The project has been adequately analysed. It has been rightly pointed out that the project design was overambitious, under estimating the constraint of the public sector institutions and difficulties in diversification. The Training Boardscould not play an effective role for the reason that these Boards have no resources to finance vocational training programme anddictate and implement changes in the National Vocational Training System to make it demand driven. The support to InformalSector through "Mobile Training" originally conceived and appraised was not available from the donors. It was opined by thedonor (EEC) that this may not form part of this project. Spade work was therefore undertaken during the currencv of the projectto look for other altematives viz: community based training etc. The importance was. however, never dropped from the sight.The training legislations are in final stages of introduction.

ICR rightly assess that the objectives of the project have satisfactory been achieved since restructuring. Thegovernment strongly feels to support the assessment of the Bank that little more time should have been given to the project, toenable to achieve the structural change in the system in the area of public-private partnership, de-centralization. instituting costreco-ery system introduction of market oriented short course and making the role of public sector institutions more effectivethrough employers participation. It is, however, to be underlined that structural changes cannot be brought in the public sectorinstitutions without adequate changes in the old age financial management system.This should have been given more closerattention during the design and appraisal stage of the project.

The concem of the Bank on allocation of O&M funds (recurring expenditure) and appointment of staff by theprovinces to man the new centres is shared as also the shift from supply driven system to demand driven system. Full benefitsof the re-structure project can only be achieved if sufficient time is allowed for the restructured component to develop institutionalstrength and the follow-up action and monitoring is continued after the project completion by the Provincial Training Boards andNational Training Board.

While there may be a number of reasons for the imbalances that exist between the skills, required and thesupply, the main problem is the non-availability of detailed information regarding sector/occupation/trade wise needs over a periodof time and the capability of the industrylprivate sector to meet these needs. The project has started playing catalytic role throughmainlv the SDCs and if the activities continued and scope extended may result in bridging the gap and bringing change in trainingculture.

c) Evaluate the Bank's performance durine the evolution and implementation of the proiect, with specialemphasis on lessons learned that may be relevant for the future.

This project was a complex one, having multi donor financing and spread over whole of the country. While theBank has been guiding and supporting the project yet the bank procedures to get approval with regard to works and equipmentprocurement at 4-5 different stages created a lot of extra work and resulted in delays specially in the projects of this nature wherethe four provincial governments and their departments are involved. It could be considered to reduce the stages with out harmingthe policy and contiol mechanism. The designation of Task Manager sitting at Islamabad facilitated decision making and mustcontinue.

63 Appendix-BPg 2

Creation of project assignment account and efficient handling of withdrawal applications by the World BankDisbursement Division facilitated financial management.

The original project was too ambitious. While the decision to restructure the whole project (in 1993) helped toaddress to more crucial issues. it resulted in delay in the project implementation. It would have been advisable to have stoppedand completed the already under implementation components and designed a fresh project with new approaches and targets.

d) Evaluate the Borrower's own performance during the evolution and implementation of the pro*ect, withspecial emphasis on lessons learned that mnay be relevant for the future.

This has been a multi donor project but with more dominant role of World Bank both from funding andmonitoring point of view. Although the project implementation was initiated in 1986-87 yet major restructuring of the project aswell as introduction of new concepts was undertaken during 1992-93. During this process the physical implementation oncomponents except Civil Works of those centres which were under way, were deferred. The project had, therefore, a new designand was re-initiated during 1993-94. This not only meant replanning/re-phasing the whole schedule of activities but alsowarranted new adjustment in financial planning.

The concepts introduced in the restructured project proved worth trying. These were steps in right directionspecially in the following areas:-

(i) Partnership with Employers. The piloting of Skill Development Councils proved a right experiment althougha number of difficulties were encountered at initial stages of its establishment and resource channelization. Theconcept of Centre Management Committees was well accepted by the employers but the objective could not befully achieved because of government procedure and inflexibilities in the system.

(ii) Training content/flexibilitv in trainine delivery. Designing of a comprehensive Broad Base Curricula was verywell undertaken and pilot tested. It is recommended that it should be introduced in the centres in a phasedmanner. For this purpose training of instructors and managers of the institutions is required to be undertakenon regular basis. The urgency of making the training flexible and broad based and receptive to the market needshave to be accepted by the respective training administrators.

iiib Introduction of social study (PoDulation Education) in the Vocational Training Centres. Although there was littleinvestment from UNDP for this activity but this component has been implemented very effectively. 20 Master trainersand 300 instructors have been trained and software developed. It is required that the implementation be closelymonitored.

IV) Management Information Svstem. The system has been made in place. Necessary instruments have beendeveloped. It is emphasised that the DMTs should gear up the monitoring units to undertake the exercises ofdata collection on continuous basis, process the data and guide the PTBs and NTB to improve upon theeffectiveness of training programmes. Annual Monitoring Reports have started pouring-in from PTBs. Studieson external efficiency have also been initiated by the PTBs which if continued on regular basis will help inassessing the relevance.

(v) Staff Training. The NSTI and four PSTIs have been established under the project. The project providedassistance not only for the establishment of the PSTIs but also trained master trainers. The details are as under:-

NSTI ISLAMABAD.

- Long duration 6 months skill upgradingcourses. 811

- Short duration courses 606

Total: 1417

For the future it is recommended that the government should allocate adequate resources to continue with thestaff training programmes. For the NSTI and PSTIs it is recommended that they should take stock of the staffin position, and staff training needs of not only the DMTs but also other departments and training managers of

64 Appendix-BPg 3

industrv and prepare long terms plan of 3-4 years for training instructors and other staff.

(vit Civil Work administration. After restructuring of the project, the transferring of the civil works administrationto the provincial governments has proved to be very successful and therefore, it is strongly recommended thatthe federal govemment should not in future engage itself in actual execution of civil work. This should be leftto the specialized agency like C&W departments and the provincial govermnents etc.The latest progess on Civil Works is as follows:

Percentage ComoletePuniab

i) VTC Okara 100%ii) VTC Muzaffargarh 90%iii) VTC Attock 98%iv) VTC Vehari 100% } Excludedv) VTC Jaranwala 72% from IDA

vi) VTC Toba Tek Singh 75% } financing.vii) WTTC Multan 100%

viii) WTTC Rawalpindi 92%

Sindh

i) VTC Khairpur 95%ii) VTC Shikarpur 100%iii) VTC Sanghar 86%iv) VTC Naushero Feroze 92%v) WTTC Hyderabad 100%

NWFP

jO VTC Karak 100%ii) VTC Hangu 100%iii) VTC Abbottabad 96%iv) WTTC Peshawar 100%

Baluchistan

ii VTC Dera Murad Jarnali 100%ii) VTC Gawadar 100%iii) WTTC Quetta 100%

Federal

iO NSTI.lslamabad 100%

(vii) Equipment procurement. The equipment was procured through ICB procedure and guidelines and the arrangement with-ILO Equipro has generally worked well. There had been no complaints on the quality and quantity of the equipmentprovided through ICB. Problems were, however, faced with few local suppliers/manufacturers who participated in theICB. This indicates that the local manufacturers need orientation on the ICB processes and requisite quality controlaspects.

Equipment for existing centres has already been installed and is operational. The equipment procured for thenew centres for VTCs in NWFP and Baluchsitan (funded by CEC) have reached the centres while the equipmentfor the rest of the centres (funded by IDA) is under custom clearance.

(viii) Quality Factor. The lesson learnt indicate that efforts should be made to cornsolidate the training programmes in theexisting centres, upgrade them if required, provide with staff training support and curricula. The employment of thepassed out are to be closely monitored to asses the employability rates and relevance of the training courses beingoffered. As far as possible the partnership with employers be encouraged, promoted and training made demand oriented.

65 Append ix-BPg 4

This will require major change in the policy, administrative and financial procedures for operation of the existing trainingcenmres

As for as possible establishment of new centres should be discouraged and if these are required to beestablished, should be modest with greater participation of community in administration of the centres and costrecovern be ensured.

(ix) Apprenticeship Trainint/on-job training: should be the main focus in future vocational training programmes.It is considered that on-job training capacity could be generated provided a proper scheme is designed. Theimponant aspect, however, is to change the approaches and system through which the ApprenticeshipDirectorate of the DMTs operate at the present.

(x) Trade Testing and Certification. Through this project Testing Boards have been established in the DMTs. It is,however, required that these boards should be made effective. "Trade Test Banks" be developed and the flexiblesystem of trade testing including 'vocational qualification system " introduced.

(XI) Technical Assistance

Technical Assistance provided through UNDP/ILO project PAK 86/017 under NVTP-11 has been successfullyimplemented during the project period. In view of the need and importance, the Government and World Bankagreed to allocate 1.158 Million US$ out of credit towards technical assistance.

Technical assistance was also provided by FRG and CIDA. Donor wise position of utilization by mm is asfollows:-

Fellowships International Experts ConsultantsDonor Utilized (MM) (MM)

(MM)

Expatriate Local

UNDP 97 144 25.5 108.5

FRG I l 191 - -

CIDA 141 164 07 -

IDA'World 21 41 - 57.5Ban),

Total 270 540 32.5 166

e. Assess the effectiveness of the relationship between the Bank and the Borrower during the evolution andimplementation of the project.

The relationship had generally been cordial. The exchange of information and decision making was facilitatedthroueh the local Task Manager and Disbursement Division. The recommendations of the various missions were well received,however. the implementation of the recommendation depended on the procedures through which federal and provincial governmentdepartments had to pass. While the private sector was more inclined towards bringing flexibility in the training administration,the recommendation of the missions in this regard were difficult to implement within the frame work of existing government rulesand financial regulations.

In order to make the relationship more effective it is recommended that the respective participants, provincialgovemments, the beneficiaries and the officials of ftnance and planning be actively involved, especially when structural changesare suggested, during the design of the project and no such approach included in project design which is not implementable atlater stage due to procedure difficulties.

f. Evaluate the performance of co-financiers, and assess the effectiveness of their relationship with theBorrower during the evolution and implenientation of the project.

It has been a multi donor project and was initiated enthusiastically by all donors. One of the reason for thedonors attitude to prefer bilateral approaches was the initial delay at start up stage of the project during 1986-87 to 1989-90. It

Appendix-B66 Pg 5

may be due Io the reason that the resources earmarked by each donor were for inter-related activities. The delay in one componentlike construction of centres and recruitment of staff etc resulted in delay in deliverv of inputs by the other donors. Neverthelessthe donor remained associated with the respective component of project and the desired benefits derived. The bottom line,however. is that the relationship between the co-financiers or and the Bank be given more attention.

The IDA financing has not been extended further, vet. the other co-financiers viz: CIDA. EEC and FRG arestill providing their inputs/assistance.

FINANCIAL

While the project activities are still continuing the position of investment by the terminal date of credit arecontained in the following table:

(Million)On IDA Credit/terminal date

IDA Credit SDR 27.939

GOP financing Rs. 864.225

EEC Grant ECU 5.434

FRG Grant DM 5.670

UNDP Grant US$ 3.543

CIDA Grant CDS 7.400

67 Appendix-C

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Appendix-C: Co-Financiers Contribution to the ICR

No contribution was received from co-financiers. Only EC provided commenis. which have been accommodated in thetext.

68Appendix-D

IMPLEMENTATION COMPLETION REPORT Pg 1

PAKISTAN - SECOND VOCATIONAL TRAINLNG PROJECTCREDIT 1670-PK

Appendix-D: Features of National Training Policy

FEATURES OF THE NATIONAL TRAUfING POLICY

A competent and flexible work force, which can acquire new skills, as economies change, is a necessary pre-requisite foreconomic and social development. Society benefits in the form of high productivity and individuals benefit through higherearnings and mobility in seeking better employment opportunities. Adequately trained skilled workers and technicians improvethe quality ol' production and maintenance, facilitate the adaptation and use of new technologies and training of co-workers withlesser skills.

Basic skills can be learnt in formal training institutions while middle and high level skills are acquired through experienceand training during employment. In Pakistan. basic skills are provided by the training institutions of Directorates of Manpowerand Training, Directorates of Technical Education, and institutions administered by Overseas Pakistanis Foundation, SmallIndustries Corporations/Boards, Departments of Social Welfare and other agencies. Due to involvement of many organizationsand departments the training standards for even the same type of programme are not uniform. On the other hand the institutionaltraining, except for few programmes'institutions. are not responsive to the changing needs of employment market.

Traininp is also being provided within the traditional/informal Ustad-Shagird system but it requires attention and suitableassistance. In addition, training is being imparted under the Apprenticeship Training Ordinance of 1962. The output throughthis training system has, however, been low and the situation calls for amendment in the ordinance to make it more viable,practical and acceptable to the employers.

This Policy has been framed to streanmline, expand and standardize the training activities in the country so that the skilledsxorkers are made available not only in adequate numbers but also with the requisite skills.

The aims and objectives of ihis training policy are to:

Improve the qualit\ and enhance the number of skilied workers being trained in the formal sector.

in ) Improve, standardize and enhance the quality and numbers of workers being trained under theApprenticeship,On-the-job training.

iii) Streamline and standardize training in private training institutions.

is ) Streamline and standardize training in the informal sector and enhance training opportunities through mobiletraining units and other training delivery systems.

Provide and enhance training facilities for women in non-traditional trades.

xi) Enhance the participation of private sector in training activities through, interalia, Skill Development Councils.

vii) Provide training facilities for instructional staff'.

viii) Establish Data Banks of skilled workers.

ix) Register skilled workers both public and private.

x) Study and propose changes in the existing training legislations.

69

Appendix-D

The Naiional Training Polic% has the followine chapters:

I National Training Board Functions

11 Forma) Training

III Apprenticeship,!On-job Training

IV Training in Private Sector/Participation of Private Sector in Training

V Informal Training

VI Women Training

VIl Training bv Non-Government Organizations (NGOs)

Vill Staff Training

IX Research Activities

X Registration of Skilled Workers

70

Appendix-E

IMPLEMENTATION COMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAING PROJECTCREDIT 1670-PK

Appendix-E: Draft Amendments in NTB Legislation

DRAFT AMENDMfENTSIN NTB LEGISLATION

National Training Board was constituted vide National Training Ordinance No. IX of 1980 to systematize, promote andreeulate vocational training in the country. It comprises of 39 members, with the Minister for Labour, Manpower andOverseas Pakistanis as its Chairman anid having 4 representatives each from Employers Federations, Workers Unionsand 30 Government representatives. Since 1980 the needs as well as approaches towards vocational training havechanged. The proposed amendments have been carried out for the reasons that:

- The Board comprises of 39 members which is not only unwieldy but also has only 8 non-official members. Theemployers and trade unions have been voicing their concern to increase their membership. Through theproposed amendment the membership of those Departments who could effectively be represented by the otherorganizations would be cunailed and participation of the private sector especially womenrepresentation/participation will be increased. The new membership will be 23 members with 10 representativesof Employers and trade Unions. This will make the National Training Board more effective.

- Moreover, the National Training Board/Provincial Training Boards will be given the authority of registrationand licensine of all establishments, organizations or institutions which are providing vocational or technicaltraining. They will also be authorized to register skilled workers according to the trade and level of skill andwill facilitate trade testing and certification of skilled workers who may have received training through any othersource or acquired skills through experience from the informal sector.

The amendments including the bill have been approved by the Cabinet in the meeting held on 10th Oct, 1996. The billwill be submitted to the Cabinet of the present Government for approval to process the bill or promulgate the ordinance.

7 1 Appendix-F

IMPLEMENTATION CONMPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINDNG PROJECTCREDIT 1670-PK

Appendix-F: Draft Amendments in Apprenticeship Legislation

DRAFT ANMENDMIENTSIN APPRENTICESHIP LEGISLATION

The Apprenticeship Ordinance 1962 was promulgated by the Federal Government in June 1962 with the objective ofpromotion. developing and regulating systematic apprenticeship programmes in the industries, and for securing certainminimum standards of skills. The Ordinance is applicable to the industrial establishments employing fifty or morepersons and having five workers in any specific apprenticeable trade. Such establishments are required to trainapprentices in the proponion of minimum of 20 per cent of the total number of skilled workers employed in anapprenticeable trade. The Provincial Labour Departments supervise the implementation of various provisions of theOrdinance.

The amendments aim to expand apprenticeship training by:

- Widening the definition of employers to whom its provisions apply.

- Allow%in employers to freely chose whether to train apprentices or not, but imposing a training levy onemployers uho do not train apprentices so as to equitably share the cost of training between employers.

Providing financial incentives to be paid to certain employers (those who have less than fifty workers and are,therefore, not covered under the Ordinance, but have the capacity to train workers), in order to encourage themto arrange apprentice training.

The amendments including the bill have been approved by the Cabinet in the meeting held on 10th Oct, 1996. The billwill be submitted to the Cabinet of the present Government for approval to process the bill or promulgate the ordinance.

72 Appendix-.-aPg 1

INIPLEMEN'ATION CONIPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINBTG PROJECTCREDIT 1670-PK

Appendix-G-a: Fellowships

FELLOWSHIPS IMPLEMENTED UNDER TECHNICAL ASSISTANCE PROGRAMME OFNATIONAL VOCATIONAL TRAINING PROJECT, PHASE-II

FUNDED BY UNDP

COURSE TITLE | INSTITUTION [ DURATION NAMES OF FELLOWS

I ) Equipment Procurement ILO EQUIPRO. Switzerland 6.9.S7 - 27.0.87 0

2) Mdonaecment of Vocational ILO Turin. Italy 7 5.90- 29 6.90 23) Trasming Instiutlions.j

4) \liji,rg, thc Traioiiii U.K. Industrial Training 3 9 90 - 27 1I 90 25 1 Function Services

6) MeJia Development& Production ILO Turin. Italy 1.3.91 - 30 4 91

71 Curriculum Dcvclopmeni. U.K. Huddersfield Polytechnic 19 9.91 - 183 92 6xi Sk,l1, Testine9)

11)1

12)

131 u elder Trai,iine Murex. U.K 4/92 - 7/92

14, M'A,vr,i & Evaluatiion Ireland FAS ILTS. UK'INEWI I0192 - 12192 81IS16,17)

19'

2)o,

- i) i Pol,c\ IreKand FASiosLTS. UKl NEWI 82 92 - 10 92333 ',miula TraiEmnme Systern

24,2526,

27)

Stud% T.r

30). Trjimne Design & Delivery U.K. vafious institutions 23.9.91 - 5.10.9131l Manpo-wer Services Commnission32, Scorvee. Employers Federation33,

34,35,36'

37, Nice: senior World Bank Olficials World Bank HQ, Washington 24.9.92 - 2939 92 24 7,) Trainine Instituttotis

38i Apprenhiccship/ln-PlantTraining Australia various insfiursons 6192 - 7~92 939)40))41))42i43)44)

46) Social Study & Population Wejlfare Cairo, Egypt 23.11.95 - 30.11.95 47, various instiuitionsa

Appendix-G-aPg 2

73

Appendix-G-aPage 2 of 2

FELLOWSHIPS INMPLEMENTED UNDER TECHNICAL ASSISTANCE PROGRAMME OFNATIONAL VOCATIONAL TRAINING PROJECT, PHASE-Il

FUNDED BY IDA CREDIT

COLIRSE TITLE INSTITUTION | DURATION | NAMES OF FELLOWS

4- Stud! To,ur (Group Ii TAFE. Australia 15-31 March96OrhiCsli IUIIiharizatwn is iththe institutional andapprenticeship irdining programmes. trainingmlaagerlient and poulcN formulation. assessment of-iccLds. tinancing ol progranime les) grant system.

cmplnsnent stratcres.

. Protect Minaoenrne AIT Bangkok. 29 Apr - 07 June 96Thal land

Prfoeur M ... oring & Evaluato.. AIT Bangkok 10 June-05 Julv 96ThfllanJ

_ S 'Sud, our on Apprenticeship Tranino NManila Philppines 10-21 June 96

h Irrl.graig Ciimuniui-basd Traino into NationalTrait, iii Ss,tcnl A RetLonal Pohl Scminar ILO Turin. Ilahi 27 Mav O' June 96

- Tih. ItT Frti,c & Manarcnmeo of Vocational Trainine - do - 23 Scpt - 8 Oct 96

- Lait.ur .Iarkei Inlormation Systems for Humai - do - 18 Non - 06 Dec 96 2Rc>-urLe'

Appendix-G-b74

INIPLENIEN'TATION COMIPLETION REPORT

PAKISTAN - SECON'D VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Appendix-G-b: Consultancies

LIST OF CONSULTANTSTA FUNDED BY UND?

Intemational Experts/Consultants Dates of assignment MM

Post 11.01 - Chief Technical Adviser:01.07.87-06.0887 1 mm03.01.88-10.02.94 73 mm

Post II .02 - Training Media Development:22.05.89-06.07.89; 1.5 mm05.02.90-19.06.90 4.5 mm

Post 11.03 - Assessment and Testing:01.04.87-31.12.88 20 mm01.03.94-30.06.94 4 mm

Post 11.05 - Monitoring and Evaluation:15.06.91-14.09.91 3 mm01.03.94-31.05.94 3 mm

Post 11.06 - In-Plant Training Development:27.07.89-15.05.90 10 mm

Post 11.07 - Radio and Television:06.11.91-05.11.92 12 mm

Post 11.08 - Consultants:01.06.89-30.06.89 1 mm31.07.90-30.08.90 1 mm19.09.91-06.12.91 3 mm15.11.90-14.02.91; 3 mm03.04.91-19.07.91 3.5 nm19.03.91-04.06.91; 2.5 mm09.11.91-10.12.91 I mm14.03.92-10.04.92; 1 mm22.02.93-21.05.93 3 mm05.04.94-19.09.94; 5.5 mm16-01-95-15-02-95 1 mm

Post 11.09 - Architect/Deputy CTA:31.08.92-30.08.93 12 mm

National Consultants/Extemal Collaborators

17.01 Curriculum Development:01.01.88-31.12.88 12 mm22.06.94-31.12.94 6 mm

75Appendix-G-b

Page 2

17.02 Assessment and Testing:

17.03 Civil Works:01.04.87-31.12.88; 20 mm01.01.92-30.06.92 6 mm

17.04 Vocational and Apprenticeship Training:12 mm

17.05 Technical Translator:01.07.87-31.12.87 6 mm

17.06 Consultants/External Collaborators:I mm9 mmI mm.5 mm6 mnm3 mm3 mm3 mm2 mm2 mm2 mm2 mm2 mm2 mmt mm2 mm4 mm

Administrative Support Staff 7

76

Appendix-G-bPage 3

LIST OF CONSULTANTSTA FUNDED BY IDA CREDIT

International Experts/Consultants Dates of assignment MM

Post 11.01 - Chief Technical Adviser16.07.94-30.06.96 23 mm

Post 11.02 - Project Architect/Engineering

16.07.94-31.12.95 18 mm

17.06 Consultants/External Collaborators:

2 5 mm4 rnm15 mm14 mm13 mm7 mm2 mm

Administrative Support Staff 5

7 7 Appendix-H

Pg 1

INIPLENIENTATION CONIPLETION REPORT

PAKISTAN - SECOND VOCATIONAL TRAINING PROJECTCREDIT 1670-PK

Appendix-H: Features of New Curricula

SPECIAL FEATURES OF THE BROAD-BASEDMULTI-SKILLS TRAINING PROGRAMME

1. Under the National Vocational Training Project Phase-I1, a "Training Needs Survey" was financed by the UNDP andwas carried out by ILO international consultants in 1990-91. TNS identified a programme of initial broad-based coreskills training followed by a specific, higher level skills training, as the most appropriate means of meeting the needsof the local labour market and private industry sector, including high potential for self-employment.

2. TNS identified the main skill areas in demand are in electrical/electronics, automotive, metal machining/metal fabricationand refrigeration/air conditioning.

3. Emphasis in the programme is on core knowledge and skills (basic concepts and manual skills) across the range of thefour above mentioned skill areas, taught cohesively to produce a basic "multi-skilled" worker capable of workingindependently. Further on-the-job exercise and off-the-job training will enable participants to improve their skill levelsas the need arises.

4. With high likelihood of self-employment post-training destination, the programme includes rudimentary training in theestablishment and operation of small business.

5. The programme is of two stages of six months each, with flexible entry and exit, and the curriculum is of modularformat. The curriculum has a strong practical orientation with the aim of quickly developing useable (employable) skills.

6. The training objectives for Stage One are that. on completion of training, trainees should be able to:

* identify and utilize common hand tools used in the occupational areas of machining, fabrication (that is fitting,welding, and sheetmetal), electrical, electronics and automotive.

* identify and use common measuring and marking tools.

* know about important properties of materials generally used and be able to identify them.

* read simple workshop drawings.

* perform simple machining and fabrication operations according to given drawings by using common tools andequipment.

* service basic electrical and electronic appliances.

* install basic domestic electrical wiring according to given requirements.

* carry out basic servicing of motorcycles and motor vehicles.

8. After successful completion of this initial basic training, trainees may:

i) join the labour market as semi-skilled workers (including self-employment),

ii) continue training on-the-job through Ustad/Shagird,

iii) continue training through formal apprenticeship,

78 Appendix-HPg 2

iv) continue formal training in Stage Two (immediately or at a later time).

9. In subsequent stages participants will develop higher level and more specialised skills. In Stage Two they will developadditional skills in specific skill areas of their choosing, subject to certain prerequisites based on achievement of therelevant skills in stage one.

10. Participants will be able to either progress directly from stage to stage, or exit at the end of a stage with scope for re-entrv to the next stage at a later time.

II. Flexibility in programme entry and exit will be enhanced by procedures to enable trainees who do not successfullycomplete an earlier stage to enter the subsequent stage after a period of relevant work experience if they meet certainother criteria. This will reduce wastage of the resources already invested in these trainees in the earlier stage(s).

12. The client groups for initial entry to the programme are school leavers, rural out-of-school youth and unemployed adults.The catchment areas for programme participants will include many remote villages and the education levels ofparticipants will be variable, but with grade 8 as the most likely.

13. Prerequisites for entry to the programme are:

* minimum age of 15 years,

° minimum grade 8 education,

* sufficient literacy in english and Urdu to read and understand technical instructions,

* basic numeracy to interpret technical data and perform basic technical computations, and

3 absence of colour blindness (because of the proposed electrical and electronic components of the programme)

however, where there is an unfilled place in the programme, a person not meeting this prerequisite maybe permitted to enter the programme to undertake the non-electrical and non-electronic skill areas.

14. The expected post-programme destinations from the programme are semi-skilled employment (including Ustad/Shagird)or self-employment in the informal sector, carrying out varied, but basic, activities (repair/service/installation) acrossthe metals, automotive and electrical areas.

IMAGING

Report No 16754Type .- ICR