Documen of

The World Bank

FOR OMCIAL USE ONLY

RhIsit No. P-4281-0C

REPORT AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN OF US$30.1 MILLION

TO THE

REPUBLIC OF CAMEROON

FOR AN

EDUCATIONAL AND VOCATIONAL TRAINING PROJECT

April 10, 1986

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CURRENCY EQUIVALENTS

Currency Unit = CFA Franc (CFAF)US$1.0 = CFAF 385

CFAF 1 million = US$2,595

WEIGHTS AND MEASURES

Metric British/US Equivalent1 meter = 3.28 feet (ft)1 kilometer (km) = 0.62 miles1 square kilometer (kM2) = 0.39 square miles

ABBREVIATIONS AND ACRONYMS

CENAFOP - National Center for Adult Vocational Training ("Centrenational de formation professionnelle continue")

CET - Lower Secondary Technical School ("Collage d'enseignementtechnique")

CETI - Industrial CET ("CET industriel")CETIC - Industrial and Commercial CET ("CET industriel et

commercial")CETIF - Female Occupations CET ("CET metiers feminins")CFPR - Accelerated Vocational Training Center ("Centre de Formation

Professionnelle Rapide")DEPM - Directorate of Primary and Maternal Education ("Direction de

1'enseignement primaire et maternel")DETP - Directorate of Technical and Professional Education

("Direction de l'enseignement technique et professionnel")DMOFP - Directorate of Manpower, Vocational Training and Projects

("Direction de la main-d'oeuvre, de la formationprofessionnelle et des Projets")

DPE - Education Projects Directorate ("Direction des projetsdducation")

DPFP - Vocational Training Project Directorate ("Direction duprojet de formation professionnelle")

DPOS - Educational Planning Division ("Division de laplanification et de l'orientation scolaires")

ENIA - Primary Teacher College ("Ecole normale d'instituteursadjoints")

ENS - Secondary Teacher College ("Ecole normale superieure")ENSET - Technical Teacher Training School ("Ecole normale

superieure de l'enseignement technique")FED - European Development Fund ("Fonds Europeen de

Developpement") f

IPAR - Curriculum Development Center ("Institut de pedagogieappliquee a vocation rurale")

KESRS - Ministry of Higher Education and Scientific Research("Ministere de l'enseignement superieur et de la recherchescientifique")

MINEDUC - Ministry of National Education ("Ministere de l'EducationNationale").

MTPS - Ministry of Labor and Social Welfare ("Ministare dutravail et de la prevoyance sociale")

FISCAL YEAR SCHOOL YEAR

July 1 - June 30 September - June

FOR OMCLCIL USE ONLY

CAMEROON

EDUCATIONAL AND VOCATIONAL TRAINING PROJECT

LOAN AND PROJECT SUMMARY

Borrower: Republic of Cameroon

Beneficiaries: Ministry of National EducationMinistry of Labor and Social Welfare

Loan Amount: US$30.1 million equivalent, of which US$22 million for theMinistry of Education, and US$8.1 million for the Ministry ofLabor.

Terms: 20 years, including 5 years grace, at the standard variable rate.

ProjectDescription: The major cbjectives of the project are to:

1. Improve the quality of primary and technical secondaryeducation through:

(a) Increasing the number of qualified primary schoolteachers by (i) constructing new facilities for threeexisting primary teachers colleges (total of 600 places)that would serve as regional centers for pre- andin-service training; and (ii) preparing proposals forimproving the efficiency and reducing the costs ofprimary teacher training;

(b) Upgrading the practical skills of lower and uppersecondary technical school graduates by rehabilitatingand reequipping training facilities at 10 secondarytechnical schools, as part of a strategy to improvetechnical education, including technical teachertraining;

(c) Improx'-g the management of education through assistanceto: (i the Educational Planning Division for improvedplan=ing and management of resources; (ii) theDirectorate of Technical and Professional Education tostrengthen planning capacity and techalcal schooladministratiLn, and to carry out pre-investment studiesfor the rehabilitation of three other secondary technicalschools and for development of a maintenance system fortechnical and science equipment; and (iii) the EducationProjects Directorate to strengthen its capacity forproject preparation and implementation.

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

2. Increase the relevance of the vocatlonal training system totbe-labor arket through:

(a) Sunporttng the-development of the National Center forAdult Vocational Training by improving existing courses,introducing ew courses, implementing a staff developmentprogram (training and upgrading); and equipping the*Center's new workshops;

(b) Improving the mBaagemnt of vocational training bystr ngthening the capablities of the Directorate ofManpower, Vocational Training and Projects for (1)manpower planning and the management of trainingresources, (ii) project preparation and implementation.and (iii) the carrying out of pre-investment studies forthe creation of eight vocational training centers.-development of an apprenticeship system, and creation ofan Office of Manpower and Continuous Training.

Su7mmary of Project Cost Estimate- (net of taxes and- duties) a/ --

% of.. .Local Foreign. Total Base Costs

-. : - .- US U Slin..

1. Improving the quality ofprimary and technicalsecondary education

(a) Primary Teachers Colleges> 12.4 .. 7.1 19.5. 41(b) Secondary Technical Schools 3.9 6.7 .-. 10.6 22(c) Management of Education 1.1 4.5 5.6 12

Subtotal 17.4 18.3 35.7 75

2. Improving the relevanceof vocational training

(a) National Center for Adult T

Vocational Training (CENAFOP) 3.8 5.3 9.1 19(b) Management of Vocational

Training 0.5 2.1 2.6 6Subtotal 4.3 7.4 11.7 25

Total Base Costs 21.7 25.7 47.4 100Physical ContIngencies 1.6 1.6 3.2 7Price Contingencies 5.3 5.3 10.6 22

Total Project Costs 28.6 32.6 61.2 129

Finencing PlanIBRD - 30.1 30.1 49Government 28.6 2.5 31.1 51

Total 28.6 32.6 61.2 100

Estimated Loan Disbursement:

IBRD Fiscal Year1987 1988 1989 1990 1991 1992 1993

-US$ milliono -

Annual 0.4 1.6 4.0 6.0 7.0 8.0 3.1Cumulative 0.4 2.0 6.0 12.0 19.0 27.0 30.1

a/ Of which the project would be exempted.

Economic Rateof Return: Not applicable

Benefits andRisks: By improving the quality of primary education, secondary

technical education, and vocational training, the projectwould help to meet some of the most urgent needs forqualified manpower of an expanding economy. For the longerterm, it would strengthen the planning, policymaking andmanagement capabilities of the Ministries of NationalEducation and of Labor and Social Welfare, and it wouldcontribute to reinforcing the links between education,training and employment. These measures would assist, inthe future, in the preparation of sound investment programsand in their efficient implementation-two considerationsthat will become increasingly critical as Ca-eroon's oilrevenues decline. The main risk of the project, in light ofpast Bank Group experience in the sector, is that ofimplementation difficulties resulting from veakinstitutions. To reduce this risk, special attention hasbeen given to the units, within the two involved technicalministries, charged with Implementing the project: theEducation Projects Directorate in MINEDUC would bestrengthened and the Directorate of Manpower, VocationalTraining and Projects in MIPS reinforced, and eachDirectorate would be provided with appropriate staff andtechnical assistance under the project. To ensure timelyposting of the technical assistance personnel, a conditionof loan effectiveness would be the signing of theircontracts. To ensure that the technical assistance willcreate a local capability rather than substitute for it, thestaff development program would be closely monitored. Thesecond risk-rapid deterioration of the new equipment forthe secondary technical schools-would be addressed throughthe development of a maintenance system.

Appraisal Report: No. 5519-CM

MAP: IBRD 18815WAZDC

March 1985

INTERNATIONAL BANK FOR RECOYSTRUCTION AND DEVELOPMENT

REPORT AND RECOMMENDATION OF THE PRESIDENTTO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN

TO THE REPUBLIC OF CAMEROONFOR AN EDUCATIONAL AND VOCATIONAL TRAINING PROJECT

1. *I submit the following report and recommendation on a proposed loanto the Republic of Cameroon for the equivalent of US$30.1 million to helpfinance an Educational and Vocational Training Project. The loan would have aterm of 20 years, including a 5-year grace period, at the standard variableinterest rate. US$22 million of its proceeds would be made available to theMinistry of National Education (MINEDUC) and US$8.1 million, to the Ministry ofLabor and Social Welfare (MTPS).

PART I. THE ECONOMY

2. A report entitled "United Republic of Cameroon-Economic Memorandum"(Report No. 2877-CM), was distributed to the Executive Directors on April 30,1980. Since then, several economic and sector missions have visited Cameroon,the most recent one in February, 1986. Their major findings, includingpreliminary work on the changed oil reserve situation, are incorporated in thefollowing paragraphs. Annex I provides basic country data.

BI^souE_nd

3. Cameroon is one of Africa's most diverse countries, with a widevariety of climatic and ecological zones, ethnic groups, languages, andtraditional cultures. It has an estimated population of 10 million (1985) andcovers an area of 475,000 kM2. The overall density is low, but there areseveral densely-populated regions in the west and the extreme north. The maincenters of population and economic activity are widely separated, making thedevelopment and maintenance of an adequate transportation network vital butalso costly. Cameroon's main opportunities for development lie in theexpansion of agricultural, livestock and forestry production; and theprocessing of agricultural and forestry products for domestic consumption andexport. Cameroon became an oil producer in 1978 and total production isestimated at 8 million tons for 1985. Most of the oil is exported as crude;only about 1.2 million tons are refined in Cameroon, to meet domestic demand.

4. Basically an agricultural economy at independence in 1960, Cameroonhas experienced rapid rural-urban migration; over one-third of the populationnow lives in the cities. Douala, the major industrial center and port, has anestimated population of about one million; Yaounde, the capital, is the secondlargest city, with an estimated 500,000 residents. Apart from these two largecities, several otner urban areas of significant size play important roles inthe economies of the various regions.

5. The stated development philosopy of the Government of Cameroon is"communitarian liberalism" , characterized by five-year indicative investmentplans and a mixture of private and public ownership. Market forces aretempered by extensive Government regulation in areas such as price control,

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investment, interest rates and credit allocation, the latter under theframework of the franc zone system for equatorial Africa. In general, theGovernment's macroeconomic policies have been prudent and Cameroon's GNP percapita (US$800 in 1983) is one of the highest in Sub-Saharan Africa. In linewith the Government's emphasis on balanced iLogional development and strongcentral authority, the country has enjoyed exceptional economic and socialstability and the surge in oil revenues coming at the beginning of the decadewas handled without major economic disruptions.

6. The past few years have been a period of transition. In November1982, after almost 25 years in power, President Ahmadou Ahidjo resigned and hisconstitutional successor, Prime Minister Paul Biya, becAme President.President Biya consolidated his power in September 1983 when he was electedpresident of the sole political party and in January 1984 when he was confirmedas President of Cameroon in a naticial election. However, the country wasshaken in April 1984 when a group of soldiers launched an unsuccessful coupattempt. Over the past two years, Mr. Biya has promised a more democraticstyle of government, more rigor in the management of public funds and greatersocial justice. The new Government is committed to economic liberalization,although still within the context of "communitarian liberalism". It has alsoendorsed the objectives of preserving a strong agricultural base, maintainingfood self-sufficiency, and building up social and transport infrastructure. Ithas expressed strong interest in improving the efficiency of state enterprises,including, in some cases, through privatization, and is planning substantialchanges in its financial system.

Economic and Social Developments

7. In recent years Cameroon has registered a remarkable overall economicand financial performance. Growth averaged 6.9 percent per annum in the secondhalf of the 1970s and is estimated at about 9.1 percent per annum for the firsthalf of the 1980s. Fixed investment, which was only 10 percent of GDP in theearly 1960s grew to an average of about 20 percent in the second half of the1970s and to an estimated 25 percent in 1985 while remaining in line with thecountry's absorptive capacity. Domestic savings have been more than sufficientto finance domestic investment since the end of the 1970s. While thisperformance has been attributable largely to the rapid expansion of crude oilproduction and exports which started in 1979/80, the fact that Cameroon managedto accumulate substantial overseas balances at the same time attests to aprudence, rare among oil-exporting countries, in keeping public spending withinreasonable bounds. Recourse to external borrowing has been limited and thedebt service ratio has consistently remained around the 10 percent level.

8. The good overall economic and financial performance of Cameroonhides, however, a number of structural problems. Export crops have notperformed particularly well over the past five years because of deterioratingterms of trade for the producers and the migration of the younger ruralpopulation to the cities. Manufacturing growth took place through the impetusof some protection and through the establishment of an inefficient publicenterprise sector accounting for about 7% of GDP which represents an increasingburden on the budget. The financial sector is relatively underdeveloped anddoes not have the capability to intermediate efficiently public savings toprivate investors or to mobilize private savings, especially in preparation for

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the post-oil era. Although part of the government oil revenue has been saved,an Increasing portion has been used to finance rapidly growing recurrentexpenditures, an expansion of agricultural support programs, including inputsubsidies, and increased assistance to ailing industrial public enterprises,including the servicing of their debts.

9. Steady progress has been made in the well-being of the populationover the past two decades; however, much remains to be done in the socialsectors. Enrollments increased considerably at all levels of the educationalsystem, but its quality and efficiency deteriorated. Health-related indicators -are on the low side, considering Cameroon's overall level of economicdevelopment. Life expectancy at birth is a low 53 years, the result of a highinfant mortality rate due to inadequate health coverage, poor access to watersupply, lack of sanitation services in crowded urban areas and poor nutritionand health practices.

10. In 1981, about 40 percent of the rural population was considered tolive in absolute poverty, i.e., with an annual per capita income of less thanUS$105. This may in part explain the heavy rural out-migration to Yaounde andDouala, where average incomes are considerably higher than in the countrysidein part fueled by the expenditure of increasing oil revenues giving rise toexpectations of formal sector employment under favorable conditions. In fact,conditions in these cities are not much more favorable: one quarter of theirpopulation is classified as absolutely poor.

Development Prospects and Issues

11. The basic problem to which Cameroon must address itself in the nearfuture is the recent sharp downturn in oil prices. Lower world prices havereduced the reserves which can be profitably exploited. Thus Cameroon mustface a situation where it must absorb, within a period of a few years, not onlya 15% cut in GDP, but a 45% drop in current revenues and a 50% cut in exportsof goods and services as well. Fortunately, because of its cautious behaviorin the past and large financial savings, Cameroon is relatively well-placed todeal with the new situation. Moreover, industry is dependent upon importedinputs so that a compression of imports will not meaningfully harm domesticindustry and employment. Per capita private consumption has been growingrapidly in real terms so that some reduction will not necessarily represent ahardship. However, while Cameroon is in a privileged situation with itspresently relatively small external debt, its borrowing capacity is in itselflimited by the prospects for declining export receipts.

12. Essentially, Cameroon's adjustment to the new situation will have tobe largely twofold: (a) measures aimed at reducing private and publicconsumption and, to a substantial extent, domestic investments, and (b)measures reorienting the economy toward exports. With respect to the first,private consumption growth should be slowed through fiscal and other measures.Simultaneously, current public expenditures, which considerably outstrippednominal GDP growth during the oil era, must be restrained, and non-essentialinvestments curtailed. While most of these measures would tend to offset thelosses to the budget of oil revenues, if they are well-designed they shouldalso bring about a lowering of real wages and a depreciation of the realexchange rate, which in turn will tend to redress the trade balance. However,

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far reaching actions for the stimulation of exports must also be undertaken.In particular, producer prices of export crops must be raised substantially inreal terms if the nearly stagnant sector is to revive sufficiently to play itsrole in offsetting the balance of payments impact of the drop of oil exports.Such measures would have to be associated with increased attention to theinstitutional support of the agriculture sector. Moreover, incentives willalso be required for the increased orientation of industrial incentives towardexports, among others through tax and tariff reform. Finally, financial sectorreforms in the longer run will be necessary if the financial system is tomobilize adequate private financial savings and intermediate their flow intomore productive investments than is now the case.

13. In the longer term, the major issue is to cope with a fast-expandingpopulation. Although its growth rate, currently estimated at 3.2 percent p.a.is not unco,mon in the regional context, it is accelerating, and Cameroon'spopulation is expected to nearly double in 22 years. The urban populationwould triple to 9 million. Providing meaningful employment opportunities to asharply expanding urban labor force is and will remain a major challenge forthe Cameroonian authorities. At present only 22 percent of the labor force isemployed outside agriculture, 9 percent in industry and 13 percent in services.If large-scale unemployment is to be avoided in cities, by the year 2000 about2 million jobs would have to be added to the existing 750,000 outsideagriculture.

External Borrowing and Creditworthiness

14. Total public external debt outstanding and disbursed rose from US$371million at the end of 1976 to US$1.7 billinn at the end of 1984. Debt servicepayments rose from US$39 million in 1976 to US$221 million in 1984, whileexports increased from US$700 million in 1976 to about US$2.5 billion in 1984.However, Cameroon's traditionally modest reliance on external financing hasbeen followed, during the oil era of increased financial independence, bydiminished recourse to external borrowing and some prepayment of foreign loans.Gross disbursements against public and publicly guaranteed external borrowinghave dropped from a peak of US$564 million in 1980 to US$182 million in 1984.Net transfers have fallen from a peak of US$389 million in 1979 to minus US$40million in 1984, when debt service payments exceeded gross disbursements.Rising interest rates, a hardening of average loan terms and the appreciationof the dollar increased Cameroon's debt service ratio somewhat in the early1980s. Increased borrowing will be required in the second half of the decadeto compensate for declining oil revenues. However, the debt service ratioappears likely to remain below 15 percent for the rest of the decade. Cameroonis fundamentally creditworthy.

PART II. BANK GROUP OPERATIONS IN CAMEROON

15. Bank and IDA commitments in Cameroon as of September 30, 1985,amounted to US$954 million equivalent and covered 47 projects: 22 in agri-culture, 15 in transportation, 3 in education, 3 in public utilities, 1 small-and medium-scale enterprise project, 2 technical assistance projects and 1

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urban project (Annex II). Transport and agriculture account respectively forabout 50 percent and 38 percent of these commitments. IFC had invested ineight enterprises, with total net loan/equity commitments of US$10.9 million.

16. Performance in project implementation is, on average, good in thetransport sector, mixed in agriculture and mediocre in other sectors. TheGovernment has generally shown wlllingness to collaborate with the Bank infinding solutions, but implementation delays and setbacks have occurred,notably over the last year in the wake of recent political changes. Inparticular, the overall disbursement rate, which used to compare favorablywith that of most other countries, has slowed down due to administrativebottlenecks, notably in the central procurement agency. Technical assistanceis being arranged to help streamline procurement procedures.

17. The Bank"s initial investment strategy in Cameroon was to support theGovernment's development effotts in three main directions: (a) strengtheningand extending the road and rail trunk systems and improving the port of Douala;(b) raising agricultural output and exports; and (c) improving education.Until 1975, apart from one water supply project, Bank lending was concentratedentirely in the transport, agriculture and education sectors. Since 1975, Banklending has diversified into forestry, small- and medium-scale industry, urbandevelopment, technical assistance and telecommunications. For the immediatefuture, projects are being prepared in agriculture to support Government'sobjectives of increasing smallholders' productivity and improving the qualityof rural life; in transport to upgrade, expand and maintain the network; inurban development to build up the local governments' capabilities to cope withfast growth; in education/manpower trainin to meet the rapidly increasingskill requirements of the economy; and in health, to promote services in ruralareas.

18. Faced with a decline of its oil revenues, the Government of Cameroonwould like the Bank to maintain an active assistance program as (a) a way ofensuring a smooth and continued flow of resources for development; (b) avehicle for technical assistance in project design and implementation; (c) aguarantee of impartiality in providing guidance; and (d) a source of advice forpolicy reform. The rationale underlying the Bank's program lies in the need tomeet the country's increased and more complex requirements for developmentassistance. To ensure productive use of its oil revenues and prepare for thepost-oil era, Government must make critical decisions concerning the size andcomposition of the domestic investment program and the removal of the majordevelopment bottlenecks. The Bank's major objectives are to strengthenGovernment policy making, investment planning and implementing capabilities;promote private intitiatives and reduce the role of the parapublic sector inthe economy; develop the country's human resource base; and Improve the livingconditions of low-income groups.

19. To reach its objectives the Bank will increasingly use sectoralapproaches combining lending, intensified economic and sector work andtechnical assistance to the central and technical ministries. The Bank is inthe process of discussing with Government several strategy papers for the majorsectors with a view to reaching broad agreement on a macroeconomic and sectoralpolicy framework. This dialogue should pave the way for a more sectoralapproach to lending in support of well-defined Government programs. Key topics

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for discussion will be the role of the public enterprise sector, tradeliberalization and pricing policies, the pace and pattern of resourcedevelopment, skilled manpower constraints and needs, and administrative reform.Although the Government is eager to move toward sectoral approaches,differences of opinion on their content might delay their formulation andimplementation; nevertheless, the nature of the Bank's involvement is expectedto shift toward fewer but larger sectoral operations.

20. Disbursements of official development assistance during the secondhalf of the 1960s amounted to about US$45 million a year, mostly in the form ofgrants. France provided most of the assistance. In the 1970s, foreign aidincreased to about US$90 million a year, with only one-fifth in the form ofgrants. Bank and IDA financing amounted to about 23 percent of totaldisbursements and the Bank Group became the major source of public assistance.Cofinancing has been featured in 25 of the 47 Bank-financed projects and isbeing actively sought for several projects under consideration to improve aidcoordination and support a gradual shift to private financing.

21. In 1984, disbursements from private sources accounted for 10 percentof total disbursements under public debt, down from 61 percent in 1982. Publicexternal debt outstanding and disbursed as of December 31, 1984, amounted toUS$1.7 billion, 15 percent of which was in the form of Bank loans and 13percent in IDA credits. Bank loans in 1984 accounted for 12.6 percent ofpublic external debt service and IDA credits for 0.1 percent. By end-1985,Bank loans and IDA credits were projected to account for about 26 percent ofdebt outstanding and about 14 percent of debt service.

PART III. THE EDUCATION AND TRAINING SECTOR

A. The Education and Training System

22. The inadequacy of the education system in providing basic literacyand numeracy, combined with limited opportunities for technical and vocationaltraining, has led to severe deficits in skilled manDower and to low laborproductivity. Especially severe are the shortages of technically trainedmanpower for the fast-growing industrial sector, with the secondary technicalschools' output providing only about 25 percent of that sector's estimatedannual requirements. Unless action is taken, this situation is likely todeteriorate further, since the population of 10 million (in 1985), growing at3.2 percent per annum, is expected to nearly double in 22 years.

23. This is uot due to a lack of Government's effort: at the primarylevel alone, between 1960 and 1984 the number of children attending schoolquadrupled to about 1.6 million, bringing the total net enrollment ratio to 78percent. The Government has made considerable progress in establishing anddelivering public school services, increasing their share from about 33 to 65percent of total enrollment at the primary level. As a result, Cameroon ranksvery high in quantitative terms as compared with other African countries.However, the effort has stretched the education system's capabilities beyondits limit and has adversely affected the quality of instruction. For reasonsexplained in paragraph 25, internal efficiency is low at all educational

levels, and the training provided does not adequately prepare students toeither meet the needs of the labor market or to move to higher levels.

24. Structure and organization. As a legacy of colonial times, thegeneral education structure in Cameroon follows the English pattern in the Westand Northwest Provinces, and the French pattern in the eight other provinces.The Ministry of National Education (MINEDUC) is responsible for all levels ofthe formal system except post-secondary education, which falls under therecently created Ministry of Higher Education and Scientific Research (MESRS).MINEDUC has centralized decisionmaking in Yaounde and delegated operationalresponsibilities to its directorates and its Educational Planning Division(DPOS). The latter, and the Directorate of Technical and ProfessionalEducation (DETP) have key roles in formulating the Government's sectoralpolicies, and planning and managing the development of education.Responsibility for vocational training and skill upgrading rests with theMinistry of Labor and Social Welfare (MTPS) and its Directorate of Manpower,Vocational Training and Projects (DMOFP).

B. Government Strategy for Educational Development

25. In the Fifth Development Plan (1981-86), the Government emphasizedhuman resource development, increasing the share of education in the nationalinvestment budget to 8.8 percent (from 5 percent in the Fourth Plan), for atotal of US$565 million. Although the Plan lacked a sound analysis ofinvestment and reform priorities as well as a comprehensive developmentstrategy for the sector, the Government's de facto sectoral priorities were to:(a) expand and improve the quality of technical education and vocationaltraining as rapidly as possible to alleviate the severe manpower constraintsthat are hampering the economy; (b) expand and improve the quality of primaryeducation to achieve universality by the end of the century; and (c) strengthenthe planning end management capabilities of the key sectoral institutions toimprove resource use and remove absorptive capacity bottlenecks. Thesepriorities have guided the design of the proposed project. While data andanalysis for supporting them are still limited, the social demand for educationis so strong, the shortages of qualified manpower so pervasive, and theconstraints on implementation so severe, that there is little doubt that thesesectoral objectives are sound from an equity as well as an efficiencyviewpoint. This has been confirmed by a recently completed survey of theEducation and Training sector, prepared by Government and the UNESCO/BankCooperative Program, under Bank financing. Beginning in April 1985, the surveyhas served as a basis for wide-ranging tripartite sectoral discussions,including Bank/UNESCO assistance to preparation of the Sixth Plan (1986-91).Early indications are that the emerging strategy will pursue the sameobjectives. However, under the Sixth Plan, special emphasis will be given tothe linkage between education and employment. To what extent these objectivescan be achieved will largely depend on the Government's ability to improve theplanning and implementing capabilities of the responsible institutions.

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C. The Issues

26. The survey just mentioned thoroughly analyzed a number of issues,including: (a) deficiencies in the quality and output of primary and technicalsecondary education; (b) the inadequacy of the vocational training system inmeeting the modern sector's requirements for skilled workers; and (c) the lackof a strong institutional framework for strategic thinking, policy analysis,investment planning and management of the sector. These three criticalconstraints would be the focus of this project; others, such as the costs andfinancing of education and manpower issues would also be partly tackled butrequire further study and would be addressed under subsequent projects.

L. Quality of Primary and Technical Secondary Education

27. Primary education. At the primary level, the low quality ofeducation is the major deficiency. Over the 1977-84 period, enrollments havegrown at an average rate of 4.5 percent p.a. to total about 1.6 million (45percent girls) with net ratios ranging from 70 percent to 100 percent (exceptin the northern provinces, with about 30 percent). However, this has not beenmatched by improvements in internal efficiency: about 50 percent of thestudents enrolled in Grade 1 drop out before completing primary education; ofthe remaining students, only 60 percent pass the primary certificationexamination. The low quality of primary education is attributable mainly tothe relatively small number of qualified teachers. According to officialestimates, in 1981/82 only 40 percent of the teaching force of 28.600 could beconsidered as qualified. This results from the low output of the primaryteacher training system. The present training capacity, providing an annualoutput of 1,500 teachers, would only meet about 60 percent of estimated needsbased on the projected primary enrollment growth (1989/90), with a 1:50teacher/student ratio. The capacity to provide pre- and in-service trainfng isseverely constrained by (a) inadequate physical facilities, largely in a stateof disrepair; (b) deficiencies in the teacher training programs, which havebeen too theoretical and lacking in software support (textbooks, teaching aidsand educational materials); and (c) weakness in the management of humanresources, as the administrative and teaching staff is adequate in numbers butcould be used more efficiently.

28. In order to address these constraints, the Government is undertakinga series of actions. On the institutional side, these include: (a)reorganization of the MINEDUC's Directorate of Primary and ?iaternal Education,with a new service in charge of primary teacher training; (b) the revision ofprimary school curricula; and (c) a comprehensive primary teacher developmentprogram covering pre- and in-service training, development of teachingmethodologies, a library system, teachers guides and other aids, curriculaimprovement, administrative restructuring of the primary teachers colleges(ENIAs), and a review of the system's organization and management. On thephysical facilities side, the Government's plans include: (a) therehabilitation of five traditional ENIAs in the North and Northwest Provinces;and (b) the construction/equipping of new facilities for three ENIAs, which arelocated in the provinces with the highest primary education enrollments andpresently are housed in very inadequate buildings. This program is expected toimprove the quality and efficiency of primary teacher training and increase thetotal capacity to about 70 percent of estimated requirements. Prepared by the

Bank and the United States Agency for International Development (USAID). it isbeing supported by a USAID loan-cum-grant of about US$29 million, approved inNovember 1984. The Bank would finance under the proposed project theconstruction and equipment of the three ENIAs ((b) above) and a study on waysto improve the efficiency and reduce the costs of the teacher training system.

29. Secondary technical schools do not produce practically trained gradu-ates in sufficient numbers, despite the rapid growth of enrollments (9.5percent p.a. on average between 1977 and 1984). In 1981/82, about 54,000students were enrolled, 45,000 in lower secondary technical schools (CETs) and9,000 in upper secondary technical schools ("Lycees techniques"). Industrialenrollments represent only about 39 percent of the total in the CETs and about12 percent in the Lycees. Although curricula provide for a reasonable balancebetween theoretical and practical courses, the teaching of the latter suffersfrom structural deficiencies in the school workshops, the scarcity and poorcondition of equipment and inadequate maintenance, and an insufficientlyqualified teaching cadre. As a result, dropout rates are high (about 32percent for the lower and 75 percent for the upper secondary level) and successrates in final examinations are low (about 18 and 26 percent). Consequently,the system has a consistently low output of qualified graduates: about 2,000for the CETs (75 percent in industrial disciplines) and about 500 for theLycees (20 percent, or about 100, in industrial disciplines). Moreover, theprofiles of graduates do not match the needs of the modern sector.

30. In order to address these constraints, the Government proposes anumber of measures, including: (a) the rehabilitation of the training facili-ties in the older schools; (b) the development of a purchase and maintenancesystem for technical and science equipment; (c) the strengthening of schooladministration and of the planning and management capabilities of the centralinstitutions responsible for technical education; and (d) the training andupgrading of the technical teaching cadre. This program is expected to improveefficiency, increase the output of graduates and better prepare them to meetthe demand for industrial skills; it would also contribute to reducing thewastage of resources. The first three measures would form part of the proposedproject (para. 42). Technical teacher training would be addressed under aseparate Bank project under preparation, which would support the TechnicalTeacher Training School (ENSET) in Douala.

31. Planning and management of education. The central institutionsresponsible for planning and managing the Government's educational developmenteffort need strengthening. The low quality of primary education stems largelyfrom management deficiencies and the lack of local capability to analyzeinvestment and reform priorities and prepare comprehensive plans to improveinternal efficiency. Similar deficiencies explain the inability of thesecondary technical schools to meet an expanding economy's qualitative andquantitative requirements for technically qualified personnel. The Ministry ofNational Education (MINEDUC) is handicapped by the unreliability of its database, a shortage of qualified educational planners and statisticians, and thelack of staff development opportunities. The functions of its EducationalPlanning Division (DPOS) are limited to administering an annual statisticalquestionnaire, compiling the data manually, and estimating recurrent budgets.Its Directorate for Technical and Professional Education (DETP) , alreadyoverburdened with the task of managing the existing schools, is also expected

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to plan and manage more efficiently the rapidly expanding and diversifyingtechnical education subsector. Finally, MINEDUC's Education ProjectsDirectorate (DPE) also needs to build up its capacity to prepare, implement andevaluate an increasing number of projects. The project would address theseweaknesses through an integrated training and technical assistance program(paras. 43-46).

32. Costs and financing. The financial implications of the Government'splanned expansion and improvement of primary and technical secondary educationhave not yet been fully analyzed. A number of problems are involved. First,appropriations for the sector, representing 8.2 percent of total investmentbudget and 15.6 percent of total recurrent budget, are insufficient in view ofthe economy's needs. In particular, the recurrent budget has not increased inline with investment and is overwhelmingly absorbed by salaries and fellowships(90 percent), while only about 2 percent is devoted to such essential inputs aslearning materials and school maintenance. This, combined with the employmentof unqualified teachers and the self-financing of the private schools(36 percent of primary and 54 percent of secondary school enrollments),explains the comparatively low per-student cost. However, cost efficiency islow, posing a second problem. Two other related problems are the weakabsorptive capacity of the system, as evidenced by the underutilization ofplanned expenditures in the past (43.4 percent under the Third Plan and47 percent under the Fourth Plan), and the upcoming exhaustion of oil revenues,(around 1995), which will sharpen the need for rigorous investment and currentexpenditure prioritization. These issues would be addressed, for the shortterm, by including in the Government's contribution, adequate provision forrecurrent costs, reflecting increased appropriations for non-salary inputs(para. 59); for the longer term, by: (a) introducing measures to improve thecost-efficiency of primary education (para. 40); (b) developing a financialplanning mechanism based on recommendations made in the sector survey(paras. 25 and 44); and (c) creating a permanent capacity for sound investmentplanning and analysis, and cost-efficient use of scarce resources (paras. 43-46and 48).

2. Relevance of the Vocational Training System to the Labor Market

33. The vocational training subsector faces the dual challenge of expand-ing its training and skill upgrading capacity and improving the quality of thetraining to make it more relevant to employers' needs. First, since some12,000 modern jobs are to be created annually during the 1980s, there is a needfor additional manpower in the form of well- qualified graduates of thetechnical schools. Second, since about two-thirds of the manpower employed inthe modern sector (totalling about 430,000 in 1981) did not attain the primarylevel certificate, training remains essential to upgrade the skills of presentlabor and keep those of future employees current. However, the inadequacy ofthe vocational training/skill upgrading system, combined with the inefficiencyand poor quality of the secondary technical education, is a major cause for thelow level of skills throughout the work force. The system, under the authorityof the Ministry of Labor and Social Welfare, comprises only the semi-autonomous National Center for Adult Vocational Training (CENAFOP), with 250student places, and the five accelerated vocational training centers (CFPRs),with a total capacity of about 300 trainees, of whom only 25 are enrolled inindustrial disciplines.

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34. The Government is giving high priority to remedying this shortfall inskilled workers, particularly by providing short vocational training programsfor the large number of young school leavers and by systematically upgradingthe skills of existing industrial labor. CENAFOP's role has becomeincreasingly important in light of the growing shortages of qualified lower-and middle manpower. Long before the center was fully operational (it wasestablished in 1981 under Credit 320-CM), it was recognized that its industrialtraining requirements had been underestimated. Therefore, the Government hasbegun to expand and reorganize CENAFOP's facilities and to diversify the courseofferings. But a staff development program is needed to enable the Center toimprove the relevance of existing courses and introduce new ones adapted to anincreasingly complex industrial sector. Moreover, CENAFOP has newly builtworkshops which are not yet adequately organized and equipped to providetraining in the most needed specializations (auto-mechanics, metal work, air-conditioning/refrigeration, electricity and electronics, general andmaintenance mechanics). For the CFPRs, a thorough study is called for toassess the needs for renovation and for expansion of the network. Theseactivities would be undertaken under the project (paras. 47-49).

35. Planning and management of vocational training. Within the Ministryof Labor and Social Welfare, the capacity of the recently reorganized Director-ate of Manpower, Vocational Training and Projects does not match its growingresponsibilities. Its Manpower Sub-Directorate is expected to monitor thelabor market and the economy's quantitative and qualitative manpower needs, andthe Vocational Training Sub-Directorate, to assess overall requirements fortraining and skill upgrading, or to plan, coordinate and manage the expansionand improvement of the vocational training network. However, both areunderstaffed and lack the data base, capability and training opportunities toperform efficiently. Therefore, the project would reinforce DMOFP's capacityfor evaluating investment priorities on the basis of the modern sector's man-power needs, and for planning and managing training resources, conductingmanpower surveys and pre-investment studies, and preparing and implementingprojects (para. 48).

D. The Bank Group's Role in Educational Development

36. The Bank group has financed three projects in the education sector inCameroon (totalling about US$38 million). The emphasis of these operations hasbeen on: (a) improving the quality of general education by supporting teachertraining, and (b) making the education and training system more responsive tothe needs of the modern sector by supporting the diversification of generalsecondary education and the establishment of employer-supported trainingprograms. The First Education Project (Cr. 161-CM for US$11.7 million, signedin September 1969 and closed on June 30, 1979; PPAR No. 2368 dated February 12,1979) and the Second Education Project (Cr. 320-CM for US$9.0 million, signedin June 1972 and closed on June 30, 1982; PPAR No. 4900 dated January 20, 1984)supported primary teacher training, general and technical secondary education,and skill upgrading for industry. The Third Education Project (Loan 1245T-CMfor US$17.0 million, signed in July 1976 and closed on December 31, 1984; PPARunder preparation) emphasized agricultural and technical education.Implementation of these three projects has been mediocre. They contributed toincreasing the capacity and regional distribution of primary and secondaryeducation. Physical targets generally were met, albeit with considerable

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delays and cost overruns, but at the expense of the pedagogical objectives,which as a result were largely not reached. Insufficient preparation of thetechnical assistance programs, recruitment delays and inadequate monitoringadversely affected the effectiveness of those programs. In light of thelessons learned from these operations, the proposed project emphasizesinstitution building, aiming at establishing a strong sectoral planningcapability, ensuring that the implementing directorates receive appropriatesupport and staff, and bringing the processing of architectural designs,engineering, and technical assistance contracts to an advanced stage prior toproject finalisation.

37. Human resource development is a key element in the Bank's strategyfor Cameroon and the proposed project represents an important step towardformulating and implementing a broad-based program in this area. The Bank'smajor concern is to help the country use its oil revenues productively and toprepare for the post-oil era. In line with Government's priorities (para. 24)Bank support to the sector focuses on the alleviation of critical manpowerbottlenecks, quality improvement of the education/training system at all levelsto raise labor productivity, and the strengthening of sectoral planning andimplementing institutions in order to prepare future sectoral development inthe context of a rapidly growing population. This new emphasis on institution-building constitutes the main rationale for Bank involvement in the proposedproject, a cornerstone for the Bank strategy in the sector. Another project isbeing prepared to improve technical teacher training, through assistance to theENSET (para. 29). A coherent strategy to further expand and strengthen thesystem, and to deal with its financing issues, is being developed on the basisof a comprehensive program of studies. Improved sector knowledge and policydialogue, as well as the strengthened institutional capacity, are expected tocreate adequate conditioxis for preparing a series of projects that will bebetter designed, organized and managed.

38. Donor coordination. Several donors actively support the Government'shuman resource development programs. USAID is principally involved in primaryeducation (para. 27); the Canadian International Development Agency (CIDA)focuses on technical secondary and vocational training, and the French "Fondsd'Aide et de Cooperation" (FAC) intervenes at various levels of the system.However, until recently, Government has tended to deal with each donorseparately. Therefore, in the absence of cofinancing arrangements, duringpreparation close contacts were maintained with these donors to avoidduplication of efforts, and implementation arrangements provide for systematiccoordination. For the future, the sector survey is becoming a referencedocument for various sources of assistance, and the definition of a long-termstrategy integrating investment, reform and training is expected to help theGovernment to coordinate and manage more efficiently donor interventions on thebasis of their comparative advantages.

PART IV. THE PROJECT

A. Project Objectives and Description

39. The project has two major objectives: to improve the quality ofprimary and technical secondary education; and to increase the relevance of the

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vocational training system to the labor market. In order to achieve the firstobjective, the project would: (a) Increase the number of qualified primaryschool teachers by constructing and equipping new facilities for three primaryteachers colleges (ENIAs) and by preparing proposals for improving theefficiency and reducing the costs of primary teacher training; (b) upgrade thepractical skills of lover and upper secondary technical school graduates byrehabilitating training facilities at 10 secondary technical schools; and (c)improve the planning and management of the education system throughstrengthening the capabilities of the key units in the Ministry of NationalEducation.

40. In order to achieve the second objective-increasing the relevance ofthe vocational training system to the labor market-the project would: (a)support the development of the CENAFOP by improving existing courses,introducing new courses, implementing a staff development program, andequipping the Center's new workshops; and (b) improve manpower planning and themanagement of vocational training by strengthening the Directorate of Manpower,Vocational Training and Projects (DMOFP) in the Ministry of Labor and SocialWelfare (NIPS). The project was appraised in May 1984. Negotiations were heldin Washington from January 27 to 31, 1986. The Cameroonian delegation was ledby Mr. Okouda, Deputy Director of Economic and Technical Cooperation in theMinistry of Plan. Details of the project are contained in the Staff AppraisalReport which is being circulated separately; its main features are highlightedin the Loan and Project Summary, supplemented by Annex III.

1. Improving the Quality of Primary and Technical Secondary Education

41. To improve the quality of primary education, the project would: (a)construct and equip new facilities for three ENIAs (no expansion involved) eachwith 200 places; their sites were chosen and the new facilities were designedto accommodate the more practical, rural-oriented training course to be offeredto selected junior secondary school certificate holders and to serve asregional resource centers for teacher training and upgrading; and (b) assistthe Directorate of Primary and Maternal Education (DEPH) in conducting a studyto prepare proposals for improving the efficiency and reducing the costs ofprimary teacher training. These proposals would be reviewed with the Bank,implemented initially at the three ENIAs and further developed nationally.Curricula would be gradually improved by regionally based Cameroonian-USAIDteams, with inputs from a Bank-financed education specialist in DPE. The USAIDprogram would also develop teacher training software, for which a doubling ofthe operating budget of the three Bank-financed ENIAs has been included in theproject (para. 59).

42. The project would finance (a) construction, architectural fees,furniture and equipment for the three ENIAs; and (b) 12 staffmonths ofconsultant services for assisting the DEPM in the primary teacher trainingstudy. To ensure that the new ENIA facilities will be operated with optimalefficiency, Government agreed to implement the study's agreed upon proposalswhen the three ENIAs open. To ensure close coordination with theUSAID-financed program, the Government also agreed to submit to the Bank anannual progress report on that program; this report would serve as a basis forexchange of views leading to an agreement on the proposed new teacher training

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programs by PY3 and their implementation in the Bank-financed facilities within12 months thereafter.

43. To improve the quality of instruction in secondary technicaleducation, the project would support the Government's plans to renovateand maintain existing workshops and equipment (para. 29). It wouldrehabilitate and reequip training facilities in 10 schools, totalling more than6,000 students. This program would be similar to one completed for sixtechnical colleges with the support of the European Development Fund (FED). Amaintenance program would be introduced. Since outputs in industrialdisciplines at the upper secondary technical level are especially limited,support to the largest industrial lycees, located in the most industrializedarea of Cameroon, would also be provided. The project would finance civilworks (minor repairs and utilities), the provision of new equipment in all 10schools, and structural extensions in two schools. The financial plan includesprovision by the Government of adequate recurrent funds (para. 59).

44. Management of education. To increase the overall efficiency of theeducation system, the project would strengthen MINEDUC's institutional capacitywith respect to: (a) data collection and analysis, policy formulation,educational planning and programming; (b) budgeting, planning and management(including maintenance) of the technical education subsector; and (c) projectpreparation, implementation and evaluation. To this end, MINEDUC's EducationalPlanning Division (DPOS), Directorate of Technical and Professional Education(DETP), and Education Projects Directorate (DPE) would be substantiallyreinforced, a capacity to carry out studies would be created, and a staffdeve'lopment program would be carried out by a team of national and expatriatespecialists (paras. 53-54). This would be achieved through a programintegrating specialist and consultant services, fellowships abroad and localseminars, as described below.

45. DPOS would follow-up on the sector survey (para. 25) with specificstudies and would develop a system to ensure the timely processing ofpedagogical, administrative and financial data. The surveys would serve as avehicle for the staff development program, which would involve all levels ofMINEDUC's planning staff. A specialist in education finance would developprocedures to improve budget preparation, with particular emphasis on recurrentexpenditures. The project would finance 96 staffmonths of specialist andconsultant services, 103 staffmonths of fellowships for professional staff, and128 staffmonths of local seminars for planning and statistical support staff,as well as furniture and equipment for DPOS.

46. The capabilities of DETP would be reinforced to provide (a) data ontechnical school facilities and staff; (b) a system for evaluating existingcourses and a methodology for continuous instructor training and upgrading; (c)mechanisms to strengthen the tehnical education-employment linkage; (d) acapacity for resource planning/management; (e) a preinvestment study for newtraining facilities in three secondary technical schools; (f) the effectiveoperation of a newly created maintenance unit with four local specialists toimplement a maintenance program; and (e) a preinvestment study for a permanentpurchasing/maintenance system for technical and science equipment. The projectwould finance equipment as well as 102 staffmonths of specialist and consultantservices and 102 staffmonths of fellowships. The appointment of four local

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specialists to constitute the core staff of the maintenance unit would be acondition of loan effectiveness.

47. DPE, which is responsible for the implementation of this componentand for the preparation of future education projects, would be reorganized andstrengthened with additional staff and technical assistance. To assist DPE incarrying out its nationwide responsibilities, the project would finance equip-ment as well as 180 staffmonths of specialist and consultant services and 6staffmonths of fellowships. To ensure the timely start-up of the project witha stronger DPE, effectiveness would be conditional upon signing of a decreestructuring and expanding the Directorate, and its staffing with qualified andexperienced personnel in sufficient numbers. A draft decree was reviewedduring negotiation and found satisfactory. Details on the technical assistancerecruitment procedures are given in paragraph 54. The following table gives asummary of the specialist services and fellowship training inputs to beprovided to MINEDUC.

Sumrzy of Specialist Services and FellashiptipTralnrgnirts for the Minzstry of Natiwal Fductikm Cm I)

(in staffmnths)

Prnmry andMatemal Tech. & Prof. Fduwatigal FuwaticmFdration Fdlcation pannng ProjectsDirectorate Directorate Divisi ae()DR (DEIP) am) Om

Specialists _a/ 72 60 1cciatants 13 36 24FetIn.shipis - 102 103 6Tlcal Seinars - 128

aJ Discusasd in para. 41.

2. Increasing the Relevance of the Vocational Training System

48. Support for development of CENAFOP. The project would supportthe National Center for Adult Vocational Training (CENAFOP) (paras. 32-33),helping it to: (a) make its training more relevant to the needs of localindustry and employers by improving the training staff's ability to ident-ify new skill requirements and to translate them into appropriate courses;(b) equip its new workshops; and (c) lead the development of a nationalnetwork of vocational training centers. This involves: (a) promoting acloser participation of employers in the management of CENAFOP and in thedesign and implementation of its programs; (b) assisting in the improvementof existing vocational training centers and in creating new ones; (c)

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proposing training programs for the trainers in other centers; and (d)contributing to the development of norms and regulations for the vocationaltraining subsector. In addition to equipment, the project would finance213 staffmonths of specialist and consultant services for staff trainingand the development of training programs and methodology, and 128staffmonths of fellowships for CENAFOP's staff development program (para.33).

49. Management of vocational training. The project would provideassistance to the Directorate of Manpower, Vocational Training and Projects(DMOFP) in the Ministry of Labor and Social Welfare (MTPS) to strengthenits planning capacity and the management of training resources. In orderto develop capabilities for assessing the country's skilled manpower needs,formulating a comprehensive strategy for the subsector, and improving itslinkages with the labor market, the project would concentrate on three keyareas: (a) DMOFP's Manpower Sub-Directorate would be reorganized andstaffed to undertake manpower surveys and establish a permanent data base;(b) the Vocational Training Sub-Directorate would be reinforced in theareas of planning, curricula and staff development, institutionalmanagement and performance evaluation; and (c) DMOFP would be reinforced tosupport these activities and to initiate and supervise a series ofpreinvestment studies, and to prepare and implement projects. The studieswould provide the rationale for the rehabilitation of existing CFPRs (para.32) and the establishment of eight additional CFPRs, the development of anapprenticeship system, and the creation and initial operation of anautonomous Office of Manpower and Continuous Training, with a view toeventually undertaking a free-standing vocational training project underBank financing.

50. The project would finance 144 staffmonths of specialist andconsultant services to conduct on-the-job training for DMOFP staff,organize surveys, and carry out preinvestment studies, as well as 137staffmonths of fellowships for DMOFP staff. Furniture and equipment wouldbe provided. The table below gives a summary of the specialist servicesand fellowship/training inputs to be provided for the MTPS component.

S&mrxy of Specialst Sendces and FeI=#bIp/Tra1n#g Inptsfor the MIistry of Labor and Social Wlfare OMES)

(in staffimoths)

National Ceoter for MnpNer. Vocatitcal TrafiingAdult Vocatimal Trainig and Projects Directorate

(CmNAE) O E)

Spec2iaist 174 9Caisultant 39 48FellUcvhips 128 137

51. To equip DMOFP to play an expanded role, in 1985, Governmentassigned full responsibility to the Directorate for implementing the MIPScomponent and reinforced it by the creation of a Project Unit. Details on

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the technical assistance recruitment procedures are given in paragraph 54.A condition of loan effectiveness would be the appointment of a competentlocal accountant for the financial section of the Project Unit.

B. Project Cost and Financing Plan

52. The total project cost (net of taxes and duties) is estimated atUS$61.2 million equivalent, with a foreign exchange component of US$32.6million equivalent, or 53 percent of the total cost. Base cost estimatesare in end-1985 prices. Government intends to exempt the project fromtaxes on construction, equipment and services; since the residual taxeswould be negligible, they have been excluded from cost calculations.Government did not opt for cofinancing of the project. Therefore, theproposed Bank loan of US$30.1 million equivalent would finance theestimated foreign costs (except for recurrent expenditures). It would befor 20 years, including a five-year grace period at the standard variablerate. The Government would finance the remaining US$31.1 millionequivalent.

C. Project Implementation

1. Management and Institution Building

53. Project management. To facilitate administrattive and financialprocedures and to build up strong project monitoring and evaluationcapabilities, the MINEDUC component would be managed by the existingEducation Projects Directorate (DPE) (strengthened to cope with thiscomponent's complexity), and the MTPS component would be managed by theDirectorate of Manpower, Vocational Training and Projects, also to bestrengthened.

54. Institution building. In order to build up a permanent nationalcapability in educational planning and management, the project features anintegrated staff development program, comprising 62.2 staffyears oftechnical assistance, 39.6 staffyears of fellowships and 10.7 staffyears oflocal seminars. Although large in absolute amounts, this program should beviewed in relative terms: the technical assistance would be deployedwithin six key institutions under two very large ministries and over afive-year period. It is deemed to represent the critical mass necessary toprovide the institutional momentum required if the Government is to achieveits ambitious but fully justified plans for the sector. The technicalassistance personnel would not substitute for local specialists; rather,they would work in integrated teams headed by Cameroonians, acting ascatalysts in a process combining on-the-job and formal training, developingmethodologies and procedures. It is expected that by the end of projectimplementation the institutions concerned could be largely self-reliant, asa dynamic process will have been generated. At the same time, implement-ation delays and cost overruns would be minimized, resulting in substantialsavings. To ensure that the technical assistance focuses on activitiesfully in line with the project staff development objectives: (a) DPE andDMOFP will submit to the Bank for its review and approval semi-annualtraining programs for their respective components; and (b) the candidates

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for the fellowship program will be approved by the Bank, and uponsuccessful completion of their studies will be employed for a minimum oftwo years in the positions for vhich they have been trained.

55. To create a synergy and ensure maximum impact from the start,selection procedures for internationally recruited personnel, and detailedarrangements for the fellowship program have been agreed. In order tosimplify and accelerate the process, a lm4ited number of consulting firmswere approached of the three; draft umbrella-contracts (one each forMINEDUC, MTPS and CENAFOP) two have already been reviewed by the Bank andfound acceptable. A condition of loan effectiveness would be theemployment of these firms and the selection of candidates for the thiee keyposts, i.e a project manager for the Education Projects Directorate inMINEDUC, one for the Directorate of Manpower, Vocational Training andProjects in MTPS, and a specialist in methodology for CENAFOP.

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2. Procurement

56. The procurement arrangeen8ts are summarized in the table below.

Amuts an! Mds of Prociuint

(US$ mlllS)X0~~~~~~~M d 1D

(Aim i In parentuses fxdicaft amot of lE rkie1i

t IB Othber tal COAs

civil wnio 19.6 ~ 3.4 - - 23.0(5.9) (1.0) (-) (6.9)

Ard2lftecturst Fees 0.7 C 0.7(-) (-) (-) (-)

*@d@-S09-ntase ~12.2 # 3.0/ l.0v/ 16.2(9.8) (2.4) (0.8) (13.0)

SpWsat Sevl -- 1 0 . 1 10.1(-) (-) (8.5) (8.5)

Traimidz 1.8 h 1.8-) (-) ~~~~~~(1.7) (1.7

PCZent costs 9.4 i/ 9.4

TotlI CAts 31.8 6.4 23.0 61.2(15.7) (3-.4) Q&. L&A

at LviL works for the aee tge vauld be oul thI bt-l ..i * ae ( wrd) gwrdl to Icrd Ek h .

b/ LIMmt LOM amaam 1 d dboeols s o mld be promwed thV00z IMAl C.pstite liMing I=CB) pM W A mactable to the Bsek, aim it is dmly that b t alzely In tbe cimtxywol b:d.

c/ Site tly of ys afrde in 198 ai 1984 after local-~~~~~~dd w* -part finm:d ui e ti sec)

d/ I bssact with a value in exs of M$10,000 ual Ibe3 accoriiBng toWoirld Bmk Qdddtnoe. QsFfyfyn dsmcnt s ul od riva preernce inbild emibntion,of 5 t or the hyxzt d,, uFbdoejr i8s^

el Catrats valed at betwnm $50,00 a!nd1 000 wud be mw&d di mogla 1LBfatmd acceptdble to the hlk, '4th a i6$3 ud1Um* =aum.

f/_Xs belaw i$,0 D in valse auuebeped y ;wt qetcfrom at instH rmenllible sumi-e sbeamm n olWm aU S$IilwemnLV

aelI ab 2apps atbe nEuiad Iimng the Qdde3lis for tbeE s! e Useof r-h*eltYms aWo rts ldnu.

b/ abrsi (akot 39.7 ul) w=d be pzed follouuingt ti

1 mioy salaries asormdM acquitd twuig replr Nervmemut pnxcmres.

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57. Bidding packages for civil works valued at more than US$1.0million equivalent and bidding packages for goods valued at more thanUS$100,000 equivalent would be subject to the Bank's prior review of theprocurement documents. This would result in the coverage of the threemajor contracts of the 13 civil works contracts (about 85 percent of theirtotal value), and of about 75 percent of the total value of the contractsfor goods. Smaller packages would be subject to random post-reviews by theBank after contract award.

3. Disbursements

58. The proposed Bank loan is expected to be disbursed over a periodof seven years as follows:

Alo3aticn and Disxrmeint Categries for Bank lom

% of Estimsted TotalPadplents Cost to be Disbursed

Item _M_EUC MIPS Total from the Bank lDm

Civil Wbrks 6.3 - 6.3 30Equip -t/9ZDirnluz 9.1 2.7 11.8 80Sp~fiaIsct Servces 4.0 3.8 7.8 85Training Abroad 0.7 0.9 1.6 100lnallocated 1.9 0.7 2.6

Total 22.0 8.1 30.1 49

59. All disbursements from the Bank Loan account would be fullydocumented, except for contracts valued at less than US$10,000 equivalent,for which expenses would be made against certified statements of expendi-tures. Documentation would be retained for review by Bank supervisionmissions and project auditors. In order to expedite disbursements. tworevolving funds, one for MINEDUC (US$0.3 million) and the other for MTPS(US$0.2 million) would be establisbed ia Special Accounts to be opened in acommercial bank authorized to deal in foreign transactions. They could beused for all categories of expenditures. Detailed description of methodsto be used in making payment out of the Special Accounts have been agreedupon. The Special Accounts would be replenished on a monthly basis, orwhen reduced by a third, whichever comes first. They would be audited inaccordance with provisions of the Loan Agreement. No direct paymentapplications for less than US$20,000 equivalent would be submitted to theBank. The disbursement profile has been estimated on the basis of thegeneral profile for Cameroon (IBRD and IDA), modified by the disbursementprofile of the Third Education Project.

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4. Recurrent Cost Implications

60. The project's annua? incremental recurrent costs would amount toabout US$7.3 million (without contingencies), with the following mainitems: (a) for the three primary teachers colleges, about US$0.3 million,representing more than a doubling of non-salary recurrent costs to about 7percent of total recurrent costs; there would be no other incrementalcosts, since administrative and teaching staff would be transferred fromexisting colleges; (b) for the secondary technical schools, about US$2million for operation and maintenance of the new facilities and equipmentfinanced under the preject; this would represent a 3.5 percent increaseover the total 1983/84 recurrent budget for the technical secondary schoolsnetwork; and (c) for CENAFOP, about US$3.6 million to ensure properoperation of the workshops and payment of additional salaries; this wouldrepresent a 65 percent increase over the center's 1984/85 recurrent budgetand is largely attributable to expansion in progress outside the proposedproject. The remaining recurrent costs (US$1.4 million) would concernmaintenance and planning. Adequate provision has beaen included in theGovernment's contribution to cover these costs.

5. Auditing and Reporting

61. For each component for which they are responsible, the EducationProjects Directorate (MINEDUC) and the Directorate of Manpower, VocationalTraining and Projects (MTPS) would maintain separate accounts for the Bankloan and for the Government's counterpart financing. During negotiations,the Government gave assurances that (a) all project accounts will beaudited annually by auditors acceptable to the Bank; (b) the Governmentwill submit the accounts and the auditors' reports to the Bank within sixmonths of the close of the Government's fiscal year; and (c) the reports ofthe auditors will be of such scope and in such detail as the Bank mightreasonab'y request. Audit fees would be f4tanced by the Government. Tofacilitate close monitoring of the prnject, the Education ProjectsDirectorate and the Directorate of Manpower, Vocational Training andProjects would submit to the Bank, for each component for which they areresponsible: (a) semi-annual progress reports; and (b) within six monthsof the Closing Date, a final report on the implementation experience andproject outcome.

D. Project Benefits and Risks

62. Benefits. The project is expected to produce both short- andlong-term benefits. By improving the quality of primary education,secondary technical education and vocational training, it would help tomeet some of the most urgent needs for qualified manpower of an expandingeconomy while raising the efficiency of existing institutions. It wouldalso contribute to increasing labor productiv±ty. For the longer term, theproject would strengthen the planning, policymaking and managementcapabilities of the two ministries concerned. While an improved capacityfor management is expected to minimize the risk of project implementariondelays and cost overruns, the strengthened planning capacity will help theGovernment to tackle and prioritize education needs arising from highpopulation growth, rising student expectations, and more complex manpower

- 22 -

requirements of employers. This has become all the more critical as thedecline in Cameroon's oil revenues will be limiting the prospects foradditional resources for education and training.

63. Risks. The project has two major risks. The first risk, inlight of past Bank Group experience in the sector, is that of implement-ation difficulties resulting from weak institutions. To reduce this risk,special attention has been given to strengthening the two directoratescharged with implementing the project; both would provide appropriate staffand technical assistance to ensure the timely implementation of eachcomponent. The technical assistance contracts already agreed upon would besigned as a condition of loan effectiveness. To ensure that the technicalassistance creates a local capability, rather than substitutes for it, thestaff development program would be closely monitored. The second riskconcerns a potential for rapid deterioration of the new equipment for thesecondary technical schools which could result from insufficientmaintenance. This risk would be addressed through the operation of amaintenance unit, recently created in MINEDUC, to initiate a maintenanceprogram and undertake a preinvestment study for the establishment of apurchasing and maintenance system.

PART V - RECOMMENDATION

64. I am satisfied that the proposed loan would comply with theArticles of Agreement of the Bank and recommend that the ExecutiveDirectors approve the proposed loan.

A. W. ClausenPresident

Washington, D.C.

-23- Annex I

Page 1 of 8T B A L FA PACE

CANEROON - SOCIAL INDICATORS DATA SHIRTCAIVICON REFERENCE CRGMPS (MEICETD AVERAGES) to

NOST (HOST RECCNT ETHATE) /bfECCCNT NIDDLE INCONE NIDDLE INCOME

1 96 0 /b 1970bk ESIMATEk

AFRJtCA S. OP sAHARA N. AFRIC & NID EAST

aU (im1N . MOTOTAL 475.4 475.4 415.6AGRICLTURAL 143.9 342.8 152.5

Qw PE CAWpIT (W) .. .. 620.0 1063.8 1134.9

w c <auom m cairn(KILG0ANS OP OIL EQUIVALENT) 61.0 64.0 122.0 Se1.5 623.9

PrULrIOu -M VITAL nmATSLaPOPUtATIONH,ID-TEAR (THOUSANDS) 5332.0 6506.0 9562.0URBN POPULATION (Z OF TOTAL) 13.9 20.3 34.2 32.0 49.1

POPULATION PROECTIONSPOPULATION IN YEAR 2000 (HILL) 16.6STATIONAT POPULATION (KILL) 52.0POPLIATION NIETUN 1.9

POPULATION DENSITYPER sq. EN. 11.2 13.7 20.1 65.1 37.8PER SQ. EM. AGE!. LAND 37.0 45.6 60.8 124.8 470.1

POPUlATION AGE STRUCTURE (C)0-14 IRS 38.8 40.4 44.7 45.6 43.5

15-64 YnS 57.0 55.4 51.2 51.5 53.065 AND ABOVE 4.1 4.0 3.9 2.7 3.3

POPULATION GROwTH RATE (S)TOTAL 1.5 2.0 3.0 2.9 2.8URBAN 5.0 5.8 7.9 5.1 6.4

CRUDE IRTH RATE (PER THOUS) 38.2 43.0 46.3 47.0 40.0CRUDE OATH RATE t(PE TNUS) 21.2 18.5 15.0 15.0 11.5GROSS REPRODUCTION RATE 2.4 2.8 3.2 3.2 2.8

FAMIU PLANNINGACCEPTOR AINNAL (TKOUS)USERS (2 OF HARILED WOmN) .. .. 3.0 Ic 6.6 21.4

INDEt OF FOOD PROD. PER CAPITA(1969-71-100) 69.0 101.0 100.0 82.9 95.1

PER CAPIrA SUPPLY OFCALORIS (2 OF REQUIREENTS) 94.0 97.0 87.0 98.5 118.2P801EINS (GRAMS PEE DAT) 51.0 54.0 48.0 55.4 77.8OF WHICH ANIMAL AND PULSE 12.0 15.0 16.0 Id 16.5 17.8

cHILD (AGES 1-4) DOATH RATE 38.2 29.8 19.0 16.6 12.8

BTII

LIFE ExPEcr. AT BIRTH (YEARSS) 3.2 48.5 53.5 52.0 57.8INFANT iRTr RATE (PER THOUS) 156.5 143.0 116.0 108.8 96.8

ACCESS To SAFE WATER (floP)TOTAL .. . 26.0 I. 42.4 67.2URBAN .. .. 35.0 7; 67.5 93.4RURAL .. .. 22.0 7; 35.8 45.8

ACCESS TO EXCRETA DISPOSALI OF POPULATIONi)

TOTAL .. .. .. 28.9 45.9URBAN .. . .. 57.7 63.0RURAL .. .. .. 20.7 28.6

POPULATION PER PHYSICIAN 45230.0 28920.0 13990.0 /f 11791.7 4313.0POP. PER IURSING PERSON 3080.0 Ih.b 2610.0 195o.0 7 2459.8 1845.0POP. PER HOSPITAL DED

TOTAL 500.0 560.0 /h 370.0 Id 981.1 621.8URBN 48O.0 jg. 300.0 7T; 2OO.O 7; 368.8 345.0RURAL 500.o7jji 650.0 7r 6i.T7;d 4371.9 2511.3

*765SIONS PFER HOSPITAL BED .. .Z .. 7.2 25.7

AVERAGE SIZE OF HOUSEHOLDTOTAL .. .. 5.2 ..URBAN .. .. T17RDRAL .. .. 5.2 7r

AVERAGE NO. OF PClSONS/RDOtlL .. ..

URBAN .. ..RURAL .. ..

PERCENTACE OF DWELLINGS WITH ELECT.TOTAL .. .. 6.7 /aURBAN .. .. 22.6 7;RURAL 0.5 7; -

- 24 - Annex IPage 2 of 8

T A I L C 3A PACE 2

CAEICION - SOCIAL INDICATORS DATA SHECTCAMEROON REFERENC GRPS (WEIGCITED AVERAGES) LA

MOST (MOST RECENT ESTIMATE) /bREMT MIDDLE iNCOmE ItDDLE INCOM

3960Lk 1 9 7 ,/b!! tSSIIIArE/T AFRICA S. OF SAHARA N. AFRICA & MID EAST

ADJUSTED ENRtOLLME RATIOS

FRIMARY: TOTAL 65.0 91.0 107.0 /1 95.7 89.8MALE 87.0 106.0 117.0-7 100.0 101.7FEMALE 43.0 77.0 97.0 7- 83.2 75.2

SECONDARY: TOTAL 2.0 8.0 19.0 /1 17.3 42.9MALE 4.0 11.0 25.0 71 25.0 50.9FOEALE 1.0 4.0 13.0 7? 14.8 34.6

VOCATIONAL (Z OF SECNDART) 23.0 22.8 26.8 Ai 5.9 10.0

PUPIL-TEACHER RATIOPRIMARY .. 46.0 52.0 11 41.1 29.7SECONDARY .. 21.0 25.07? 25.S 18.8

CONSUPIN-PASSENC CARS/THOUSAND POP 1.8 5.1 9.0 /c 20.8 17.8RADIO RECEIVERS/THOUSAND PFP 1.9 32.6 86.3 107.8 175.9TV RECEIVERS/T1H0USAND POP .. .. .. 20.8 51.2NEISPAPEI ("DAILY GENERAL

INTEREST") CXRCLUATIONPER THOUSAND POPULAnOTI 1.3 2.6 3.8 18.4 37.2

CINEIA ANNUAL ATIENDANCE/CAPITA 0.1 0.9 / .. 0.4 2.4

TOTAL LAOR FORCE (THwS) 2728.0 3165.0 4049.0PFEMALE (PERCENT) 43.0 42.7 41.3 36.2 11.0AGRICULTURE (PERCENT) 87.0 85.0 83.0 /1 54.5 42.4

NDUSmTR (PERCENT) 5.0 6.0 7.0 7r 18.3 Z7.9

PARTICIPATION RATE (PERCEUi)TIOTAL 51.2 48.7 42.3 36.8 26.2MALE 59.9 57.0 51.0 47.1 46.2FEMALE 42.9 40.6 35.0 27.2 5.8

ECONOMIC DEPENDENCT RATIO 0.8 0.9 3.1 1.3 1.8

uINC DIS71E1UTIOUPERCErN OF PRIVATE ISCISRECEIVED IY

HIGCEST 52 OF HOUSEHODS ..HIGHEST 202 OF HOUSEUDIS .. .LGEST 202 OF HOUhfOLDS ..LOuESr 40: OF HOUSENOLDS ..

ESTIMATED ABSOLUTE POVERTY INCOMELEVEL (US$ PER CAPITA)

URBlN .. .. 238.0 /c 590.7 226.3RtlRAL .. .. . ..... . .105.07W 275.3 134.0

ESrIMATED RELATIVE POVERTY INCOMELEVEL (U5$ PER CAPITA)

URBAN .. .. .. 545.6 431.5RURAL .. .. .. 201.1 326.0

ESTIMATED POP. EELOS ABSOLUTEPOVMETY INCO1E LEVEL (Z)

URBAN .. .. 15.0 /cRURAL .. .. 40.0 7 .. 2.

NOT AVAILABLENOT APPLICABLE

N 0 T E S

/s The group averages for each indicator era population-weighted arithmetic mans. Coverage of countrieamog the Indicators depnds on availability of data and La not uniform.

lb Unlese otbenhime noted. "Data for 1960" refer to any year between 1959 end 1961: "Data for 1970" between1969 and 1971; and data for "Mat Recent Estimtet" betwen 1981 and 1983.

/c 1978; /d 19?7; /e 1976; /f 1979; A 1962; /b Including ax-South Cmeroon under Britiabadmiciatration; T7 1980; fl 1972.

mNE. 1985

-25- Annex IPage 3 of 8

DEFINMONS OF SOCIAL INDICATORSNotec Although the data are drawn from sounr generaly judged the moat authoritative and reliable. it should also be noted that they may not be mntematmonallycomparable because of the lack of standardized definitiosm and concepts used by different countries in collecting the data. The data are, nonethess. useful todescribe orders of manitude. indicate trends. and characterize certin major differences between countries.The reference groups are (I) the same country group of the subject country and (21 a country group with somewhat higher aeramge income than the counlrygroup ofthc subject counttry (except or-High Incone Oil ExponerC group where 'Middle Income North Africa and Middle Ear" isosen becamse of strongersocio-cultural affinities). In the refercenc group data the avcrn are population weighted arithmheic amans ror cach indicator and shown only when majontyofthe countries in a group has data ror that indicator. Since the coverae ofcountnes among the indiators depends on the availkbility of dat and is not uniform.caution must be exercised in relating sverages of one indicator to another. ese averages are only useful in companng the value dronc indicator at a time amongthe country and refernce groups.

AREA (thousand sq.km.) Crude Birth Rote (per rhousand)-Number of live births in the year

Toral-Total surface area comprising land area and inland waters: per thousand of mid-year population; 1960. 1970. and 1983 data.1960. 1970 and 1983 data. Crude Death Rate (per thousend)--Number of deaths tn the year

Agirkicural--Estimate of agricultural area used temporarily or per thousand of mid-year populalion; 1960. 1970. and 1983 data.permanently for crops, pastures, market and kitchen gardens or to Gros Reprodtion Rate--Avcrage number ofdaughters a womanlie fallow. 1960. 1970 and 1982 data. will bear in her normal reproductive period ir she experiences

present age-specific fertility rates; usually five-year averages endingGNP PER CAPITA (USS)--GNP per capita estimates at current in 1960. 1970. and 1983.market prices. calculated by same conversion method as World Fauly Pluing-Acceprors. Anmal (thousands) - Annual num-

Ransk Atlasr 41981-83 basis); 1983 data. ber of acceptors of birth-control devices under auspices of nalional

ENERGY CONSUMPTION PER CAPITA-Annual apparent family planning program.consumption of commercial primary energy (coal and lignite. Farly Planning--Users (peremt ofninried womn n)- The perten-petroleum. natural gas and hydro- nuclear and geothermal elec- tage or married women of child-bearing age who are practiing ortricity) in kilograms of oil equivalent per capita; 1960. 1970. and whose husbands are practicing any form of contracption. Women1982 data ofchild-bearing age are generally women aged 15-49. although for

some countries contraceptive usage is measured for other age

POPULATION AND VITAL STATISTICS groups.

Total Popuation. Mid- Year f1housandsi--As of July 1:1960. 1970. FOOD AND NUTRITIONand 19813 data.Urban Population (percent of total) - Rato oOf urban to total *Indx of Food Productio PerCapia (I99-7lI) Indexof'perUrbanipdioffer erent definitiotal) -ORaiof urban area a ac tcompar- capita annual production of all food commodities Productionpopulation: different definitions of urban areas may afiet compar- excludes animal feed and seed for agriculture Food commoditiesability of data among countries; 1960. 1970. and 1983 data. include primary commodities (e.g. sugarcane instead of sugar)Popuion Projections which are edible and contain nutrients (e.g. coffee and tea arePopulation in year 2U00- The projection of population for 2000. excluded); they comprise cereals. root crops. pulses. oil seeds.made for each economv separately. Starting with information on vegetables. fruits. nuts. sugarcane and sugar beets. livestock. andtotal population by age and sex. fertility rates. mortality rates. and livestock products. Aggregate production of each country is basedinternational migration in the base year 1980. these parameters on national average producer price weights; 1961-65. 1970. andwere projecteJ at five-year intervals on the basis of generalized 1982 data.assumptions until the population became stationary. PerCapittaSupplyofcCalories(prent ofrequieents) Comput-Stationa-v population- -Is one in which age- and sex-specific mor- ed from calorie equivalent of net food supplies available in countrytality rates have not changed over a long period, while age-specific per capita per day. Available supplies comprise domestic produc-fertility rates have simultaneously remained at replacement level tion. imports less exports. and changes in stock. Net suppliesInet reproduction rate = I). In such a population. the birth rate is exclude animal feed. seeds for use in agriculture. quantities used inconstant and equal to the death rate. the age structure is also food processing. and losses in distribution- Requiremens wereconstant. and the growth rate is zero. The stationary population estimated by FAO based on physiological needs for normal activitvsize was estimated on the basis of the projected characteristics of and health considering environmental temperature. bodv weights.the population in the year 2000. and the rate of decline of fertility age and sex distribution of population. and allowing 10 pereent forrate to replacement level, waste at household level; 1961. 1970 and 19112 dataPopulation Momentum - Is the tendency for population growth to Per Capita SupplyofProtein (gras per day) Protein content olcontinue beyond the time that replacement-level fertility has been per capita net supply of food per dav. Net supply of Food is definedachieved; that is. even after the net reproduction rate has reached as above. Requirements for all countries established by USDAunity. The momentum of a population in the year : is measured as provide for minimum allowances of 60 grams of total protein pera ratio of the ultimate stationary population to the population in day and 20 grams of animal and pulse protein. of v hich IH gramsthe year T. given the assumption that fertility remains at replace- should be animal protein. These standards are lower than those ofment level from year r onward. 1985 data. 75 grams of total protein and 23 grams of animal protein as anPopularion Density average for the world, proposed by FAO in the Third World FoodPer sqkm.-Mid-year population per square kilometer (100 hec- Supply; 1961. 1970 and 1982 data.tares) of total area; 1960. 1970. and 1983 data. Per Capita Protein Supply from Animal and Pidse--Protein supplyPer sq.km. agricultural land- -Computed as above for agricultural of food derived from animals and pulses in grams per day: 1961-65.land only. 1960. 1970. and 1982 data. 1970 and 1977 data.Populraion Age Strcture (percent)-Children (0-14 years). work- Cil (ages 1-4) Death Rate (per thsanQd) - Number of deaths ofing age (15-64 years). and retired (65 years and over) as percentage children aged 1-4 years per thousand children in the same ageof mid-year population: 1960. 1970. and 1983 data. group in a given year. For most developing countries data derived

from life tables; 1960. 1970 and 1983 data.Popuation Growth Rate (percent)-toal-- -Annual growth rates oftotal mid-year population for 1950-60. i960-70. and 1970-83. HEALTH

Population Growth Rote (percent)---arha - Annual growth rates Lefe Expectancy at Birth (years) Number of years a newbomof urban population for 1950-60. 1960-70. and 1970-83 data. infant would live if prevailing patterns of mortality for all people

Annex I-26- Page 4 of 8

at the time of or its birth were to stay thc same throughout its life; Pup-reeacher Ratio - primary, and seondary-Total students en-1960, 1970 and 1983 data. rolled in primary and secondary level divided by numbers ofnfawt Mortaly Rate (per thsuand)-Nuinber of infants who die teachers in the corresponding levels.

befom reaching one year of age per thousand live births in a givenyear. 1960. 1970 and 1983 data. CONSUMPTIONACEss Safe Water (pferet of popiditIo)-total. mhim and Pasener Cars (per thousand populatiw)-Passenger cars com-rwal-Number of people (total, urban, and rural) with reasonable prise motor cars seating less than eight persons; excludes ambul-access to safe water supply (inrcudes treated surface waters or ances, hearses and military vehicles.untreated but uncontaminated water such as that from protected RAedo Receirs (per thousand popuAtion)-AIl types of receiversboehor e spings and nitary wells) as peracntagcs of their Iespecm for radio broadcasts to general public per thousand of population;tive populations In an urban area a public fountain or standpost .xdudes un-licensed receiver in ountries and in years whenlocated not more than 200 meters from a house may be considered reistration of radio ses was in effect; data for recent years mayas being within reasonable access of that house. In rural areas

rcasonablc access s wol._lytah hosewf or nxbsnot be comparable since most countrics abofished iccnsing.reasonable ac cess wmuld imply that the housewife or members of thehousdhold do not have to spend a disproportionate part of the day TVRecrs (per thasdp bx p liox)-TV reccivers for broadcastin fetching the family's water nceds to general public per thousand population; excludes unlicensed TVAccess to Excrete Disposr (pffcewgr ofpepabdonit-4oetd, vrbm. receivers in countries and in years when registration of TV sets wasand rura-Number of people (total. urban. and rural) seved by in ect.cxcreta disposal as percentages of their respective populations. Nerwpaper CGcultian (per thousad popmlaun)-Shows the aver-Excreta disposal may include the collection and disposal, with or age circulation of 'daily general interest newspaper." dcfined as awithout treatment. of human exereta and waste-water by water- periodical publication devoted primarily to recording geal news.borne systems or the use of pit privies and similar installations. It is considered to be -daily' if it appars at least four times a week.Pepsiain per PhysiPen-Pbpulation divided by number of prac- Cinma AnMnu Attendance per Capita per Year-Based on thetising physicians qualified from a medical school at university level, number of tickets sold during the year. including admissions toPopulan per Nursn Person-Population divided by number of drive-in cinemas and mobile units.practicing male and female graduate nurses, assistant nurses.practical nurses and nursing auxiliaries. LABOR FORCEPopulbao per Hosal &ed-Wo/, urban, and -ram-Population Total Labor Force (thofnds)-Economically active persons. in-(total. urban. and rural) divided by their respective number of duding armed forces and unemployed but excluding housewives.hospital beds available in public and private, general and students. etc.. coveTing population of all ages. Definitions inhospitals and rehabilitation centers. Hospitals a ablismmlt various countries are not comparable. 1960. 1970 and 1983 data.permanenty staffed by at least one physician. Establishments prov- Femak (percentl-Female labor force as percentage of total laboriding principally custodial care are not included. Rural hospitals. force.howver. include bealth and medical centers not permanently staffed Agricaltre (percent)-Labor force in farming, forestry, huntingby a physician (but by a medical assistant, nurse. midwife. etc.) and fishing as percentage of total labor force; 1960. 1970 and 1980which offer in-patient accommodation and provide a linited range data.of medical facilties. Indutry (percent)-Labor force in mining, construction. manu-Admissions per Hospital Ned-Total number of admissions to or facturing and electricity. water and gas as percentage of total labordischarges from hospitals divided by the number of beds. force; 1960, 1970 and 1980 data.

padoi Rate (percent)-t4oal, mae, andfema-ParticipationHOUSING nor activity rates are computed as total, male. and fiemale labor forceAvera Sie of Hoevhold (persos per househod)-total, uban. as percentages of total. male and female population of all agesandrural-A household consists of a group of individuals who share respectively, 1960. 1970. and 1983 data. These are based on ILO'sliving quarters and their main meals. A boarder or lodger may or paricipation rates reflecting age-sex structure ofthe population, andmay not be included in the household for statistical purposes. long time trend. A few estimates are from national sources.Arage Number of Persons per Room-raal, wba, and rural- Econou Dependecy Ratio-Ratio of population under 15. andAverage number or persons per room in alt urban, and rural 65 and over, to the working age population (those aged 15-64).occupied conventional dwellings, respectively. Dwellings exdudenon-permanent structures and unoccupied parts. INCOME DISTRIBUTiONPrcentage of Dwlligs with Electricity-total, arba, and rad- Percentage or Total Disposabl ino (both in cash and kind) - -

Conventional dwellings with electricity in living quarters as percen- Accruing to percentile groups of households ranked by total house-tage of total, urban. and rural dwellings respectively. hold income.

EDUCATION POVERTY TARGET GROUPSAdjusted Enroient Ratios The following estimates are very approximate measures of povertyPrbnary school - total male and femae-Gross total, male and levels, and should be interpreted with considerable caution.fenale enrollment of all ages at the primary level as percentages of Estimaed Abslwe Poverty Income Level (USS per capta)-arbanrespective primary school-a populations. While many countries and rura-Absolute poverty income level is that income levelconsider primary school age to be 6-1 1 years, others do not. The below which a minimal nutritionally adequate diet plus essentialdifferences in country practices in the ages and duration of school non-food requirements is not affordable.are reflected in the ratios given. For some countries with universal Estimated Reative Poverty Income Level (USS per capita)-arbaneducation. gross enrollment may exceed 100 percent since some and rural-Rurl relative poverty income level is one-third ofpupils are below or above the country's standard primary-school average per capita personal income of the country. Urban level isage. derived from the rural level with adjustment for higher cost orSecondary school - total. mafe and femal-Computed as above; living in urban areas.secondary education requires at least four years or approved pri- Estmated Populfion Blow Absolute Poverty Income Level (per-mary instruction; provides general, vocationaL or teacher training cent)-urban and rur- Plrcent of population (urban and ruralinstructions for pupils usuafly of 12 to 17 years of age. correspond- who are -absolute poor."ence courses are generally excluded.Vocation Enrollmeni (percent of secondary)-Vocational institu- Comparative Analysis and Data Divisiontions include technical, industriaL or other programs which operate Economic Analysis and Projections Departmentindependently or as departments of secondary institutions. iune 1985

- 27 -

Economic Indicators I Annex I-- -------------------------------- ----- Pa~ge5 of 8

1979 1980 1981 1902 1993 1984

NA10NRAL ACLOUNISIbillions current CFAF)

GOP at Market Prices 1410.2 1410.2 1796.5 2172.8 2618.0 3195.0Gross Domestic Savings 359. 1 359.1 439.1 541.1 751.4 1051.6Gross National Savings 250.1 323.4 357.9 467.0 640.0 925.0Current Account balance -66.6 -91.3 -109.5 -11.1 -39.u 96.1Exports GNFS 318.4 378.4 512.6 608.u 146.z 1014.2Imports 6NFS 354.2 424.0 501.9 605.0 675.2 i91.5

tas % oD GOP at market prices)

GDP at Market Prices 100.0 100.01 100.0 I I10 ui 100.01 100.06

Gross Domestic Savings 25.5% 25.5% 24.4% z4.9% 28.1X 3Z.9%Gross National Savings 22.9% 22.9% 21.1% Z1.5% 24.5% 29.0iCurrent Account Balance -5. 91 -5.8% -e.0% -3.3% -1.51 3. i.Exports GNFS 'b.8e 26.8i z8.5% zB.Bt 1Z.51 312.7Imports 6NFS 31.3% 30.1: 31.3% 27.B 25.9% 24.89

Annual Real Rate oi Growth

60P at Market Prices 9.9 9.9 10.8 2.5 o.l 6.2

Gross Value Added by SectorIbillions current CFhFi

Agriculture x1nc. Livestock, etc. 404.4 404.4 498.1 596.1 aoi.1 12.0

Mining 105.8 105.8 tO1.7 2o3.0 400.5 520.5Manufacturinq 124.1 1c4.1 1j3.1 i47.0 iv.9 358.5Construction 84.4 84.4 Iu3.; 125.u 145.0 l92.cEIectricity, 8a5, Water 16.8 la.b 1.5 f-.tZ 30.1 35. Transport and Lommunication 9i. 0 9.v 1ve03.6 119.3 128.8 141.3lrade 2u2.3 2u4.3 232.j 247.3 3it3./ 414.9

Public Admnirsstration 99.8 99.8 1IV.3 15. i 17L.8 zlz4 eOther Services 20lb.1 Oo.! 203.4 298.6 -385.5 438.2Import Duties i6.5 i1.5 1Ve.6 lla.4 146.8 Li.,

tas ' of total!

Agriculture inc. Livestock, etc. , : 8 Lb. ;f-zl 27.0U 2t 1. 0 z .eiaining i.51 S . 11 .; I1 12.1% 12 ISo. .

Manutacturing 8.8% tOt 9.7 11.41 11.1 i-l.i%Construction 6.0% b.o1 5.8% 5.8i 5.o 0i.9.

Electricity, bas, Hater i.aZ 1.4% 1.u.' I.U; 1.% 1.14Iransport and Lomounication z.4!. 6.4'a 5.8. 5.5 4.4% 4.6oIrdde i4.J% ±4.3% IZ.S% 11.5% 12.9%. I3.i:ZPublic administratior i ll 7.1% o. 1 6.t% 6.6ol o.rOther Services 14.o% i4.o% 14.4 13.4 !4.1. 13.9

lIport buties 5.4% 5.4% 5.7% 5.86 5.o% 5.4i

- 28 -

Annex IEconomic Indicators z Page 6 of 8

1990 1991 1982 1983 1984

SUMNARi GOVERNNENT FINANCE(billions of current CFAF)

Current Receipts uincl. all oili# t30.a 447.0 536.9 706.0 717.1Current Expenditure 151./ 217.5 260.6 359.5 446.1Current Surplus 18.9 429.5 276.3 347.5 271.0Capital Expenditure 73.2 z 26.2 233.7 24/.7 274.3External Borrowing 3.1 45.0 32.3 20.3 31.1

las 1 of GDP)

Current Receipts 16.4% 24.9% 14.7% 27.V% z2.4LCurrent Expenditure 10.9u 8i lZ 1Z.02 13.11 14.U0'Current Surplus 5.b% iU.8% 12.i1 13.3X 8.51Capital Expenditure 5.2% 12.61 10.6% 9.Id 8.61External Borrowinq 2.2% 2.5% 1.5% 0.82. 1.l.

HONEY, CREDII AND PRICES

tin millions CFAF, end of period)

Honey and Quasi-noney M88391 3b2100 445600 4WM2u0 63z462Bank Credit to bovernment 21149 2850ci 403 50ib/ 57124Bank Credit to Economy 3c1,4? 479400 0351t' 4&180 B01170Government Deposits with Banks 73320 12e180 1537010 19543i 1406i6

ifercentages or Inde: Numnersi

Honey ard vuasi-noney as X GDP .u.bx 51 zO.M5 li8.A 19. Staounde LPI 1I9o&luuv ;t.1 3ljt.e. 34b.i 393.e 45u.5

tinnual Percentaqe Lhanges)

iaounde LPI . . 13.1i 1i.5Z i4.4.Bank Credit to Governoent 2o.4% 34.9. 41.;f. 25.?7 l.5ZBank Credit to Economy Z1.4: 32.6oi i5.9l 13.01 7.42Government DepoEits with Banks 2t3: 2L.IL L.8. 2i.tL -2'.9.

Note: tkeceipts include oil revenues transiered to budget and Coapte Hors Budget

WAZIj 1ILiuo!tS

29 ~~~~~~~~Annez I-29- Page 7 of a

Economic Indicators 3

1979 1990 1991 1982 1983 1994

BALANCE OF PATYENTS

(in billion CFAF)

Exports of Sonds and VFS 300.9 379.4 512.6 609.0 746.2 1014.2Imports of Goads and NFS 354.2 424.0 561.9 605.0 675.2 791.5Resource Gap (deficit = -I -45.4 -45.6 -49.3 3.0 71.0 222.7

Payment Capital Services (net) -12.8 -27.1 -45.4 -57.0 -95.5 -110.0Payment Libor Services (net) -1.7 -2.0 -5.8 -8.7 -10.0 -11.0

Transfers (net) -6.7 -6.6 -8.0 -9.0 -5.1 -5.5

Current Account Balance -66.6 -81.3 -109.5 -71.7 -39.6 96.2

Short Term Capital mnetl -10.6 -9.0 -14.8 43.9 n.a n.j

Foreign Direct Investment (net) 9.6 14.2 29.2 29.2 n.a n.a

Medium and Long Term Borrowing (net) 35.9 49.6 94.6 50.2 n.j n.a

Other Capital n.e.c. (net) -u.2 -0.6 -0.9 -3.2 n.a n.j

Capital Account Balance 34.9 54.2 108.1 120.1 n.a n.a

Errors and Onissions 22.4 49.8 -25.9 -63.6 n.j n.a

Overall Balance -9.3 22.1 -26.2 -15.2 71.9 -51.4

gross International Reserves (at end FYI 19.9 44.7 19.4 12.6 79.4 29.5

1A23C 1210b195

- 30 -

Dopulation: 10 oillion 119II) UNITED REPUBLIC OF CAUEROI ANIEX ISiPper capita: US$100 11993) .m i=s u Page 9 of 8

EWNUIIC INDICATORS

(Nlillions US$ at current prices)CALENDAR YEARS

EXTERNAL PUBLIC MID PUBLiLY 1975 1976 1977 1978 1919 1990 1991 1992 1993 1994

GUARANTEED BORROWING AND DEBT ai

Gross disbursementsOfficial 6rants 20 24 23 If i1 n.a n.a n.a nan.aConcessiunal loans 44.7 55.0 151.7 135.2 174.4 126.9 120.1 87.5 70.3 55.4

DC 16.9 31.6 6B.9 53.0 83.3 68.4 66.7 54.4 29.7 37.7OPEC 6.0 3.2 13.4 5.7 20.2 23.6 2.1 0.6 13.2 7.3IDA 15.9 17.9 20.7 19.3 19.6 19.1 32.1 32.3 12.7 7.6Other 6.0 2.3 48.7 57.2 51.3 15.7 19.2 0.2 14.7 2.9

Non-concessioal loans 91.4 123.2 192.1 184.3 347.6 446.7 212.6 113.0 120.4 126.3Official export credits 0.7 9.0 19.3 11.8 74.6 85.0 102.3 31.9 39.9 36.3IBRD 21.5 B.2 14.8 37.3 30.4 29.3 19.9 19.3 43.8 46.3Other multilateral 3.6 1.3 2.6 20.9 10.6 19.5 11.3 12.7 6.3 25.5Private 55.6 104.7 155.4 114.3 232.0 314.9 80.1 49.2 30.4 19.2

External DebtDebt outstanding and disbursed 371.7 513.3 861.3 1184.8 1684.7 2048.6 2036.3 1945.3 1826.2 1737.9

official 292.5 345.3 537.5 753.6 1047.8 1218.0 1318.6 1351.1 1362.4 1365.1of which: lBRD 49.7 57.5 71.6 102.4 129.6 152.2 167.3 191.7 217.5 252.8

IDA 49.9 67.0 98.4 107.6 127.1 145.8 172.6 204.5 216.1 222.2Private

Bkdisbursed debt 322.3 531.7 561.9 795.6 14.3 591.4 559.1 697.9 674.3 706.6

Debt ServiceTotal service payments 35.9 39.1 57.3 106.9 135.9 196.2 205.8 269.3 203.6 221.5

Interest 15.1 18.8 28.2 43.4 61.3 104.1 116.8 123.5 92.8 106.9Paysents as I of exports bh 5.3 9.1 8.9 9.2 12.6 9.6 8.9

Average interest rate on new loans (X1 4.6 6.9 6.1 b.6 9.2 9.0 4.9official 2.6 4.4 5.0 5.3 9.3 9.0 4.1Private 9.2 10.3 14.9 9.2 0.5 10.0 0.8

Average maturity of new loans (years) 25.2 21.5 24.2 20.9 10.2 18.4 24.8Official 31.8 28.9 26.1 26.4 19.0 18.5 28.5Private 10.1 11.1 9.1 B.. 5.0 3.6 7.2

As I of Debt Outstandingat End of Host Recent

Year (1984)

Maturity structure of debt outstandingMaturities due within 5 years 35.9Maturities due within 10 years 60.4

Interest structure of debt outstandingInterest due within first year 5.5

n/ In-period or end-of-period figures are showmbi Export data on fiscal year basiscl Rise in debt service ratio partly reflects decline in the value of the French Franc

vis-a-vis the US dollar which depresses Caaeromns export earnings expressed in US dollars.WA2DCFebruary 16

Annex II- 31 - Page 1 of 2

1TE SAU C BANK GRIP CPEATMI THE REPLH OF CER

A. SEAW (F BNK UM AND MDA 0EDDS (as of Septaber 30. 1985t

Ion orCredit AmDzt (laes canre_atlm)Numer Yea Borrpoer m , DO Irisburad

US$ uL11m

Twy-ti Credits and azteenm I have been fully disbxs1 i82.42 215.28

1245T-4C 1976 Cann-am Bduation m 17.0 1.39673-Cl 1977 Camerom Technical Assistanoe 4.5 0.36

1494-W4 1977 Cameromon Feeder Roads 4.6 2.14776-0M 1978 Cameroon Zapi Fast Integrmted

Agriculture 8.5 1.051723-CM 1979 Canerocm Highay IV' 38.0 6.101734-04 1979 RegLfercan Railway IV 27.0 12.521753-0C 1979 Caurom Second er Supply 21.0 8.871791-CM 1980 Cameroon Hevecam I} 16.5 1.941010-M 1980 Canmroan Livestock II 16.0 8.391919-0C 1981 Camezo Northern Province Rural

DeveLopient 25.0 17.381168QCM 1981 Cbmenoon Technical. Cbqprticn II 10.00 a/ 6.44 bI2D73--CK 1982 Comeromn Pbst and Tlcruiai

Assistance 7.5 5.492092-0M 1982 Cameroon Forestry 7.0 5.662160-CM 1982 Camrom Oil. PaEW/Rbber Cnolidatimn 50.8 40.342180D-C 1982 Camerom HEWy V 70.0 41.302244-04 1983 Canexoo Urban De olqaMEt 20.0 18.672259-aM 1983 NPAC Third Douala Port 22.5 16.942406-CM 1984 Camrorm Western Province Rural 21.5 21.45

Delo_net la2485-CM 1985 Cameon Third Hevecan Rubber 8.3 8.282567-01 1985 Caeroon FSARfa 25.5 25.52584-CM cl 1985 Crmen Sixth HWi-wy Project 125.0 125.0

lutL 689.62 254.28 375.21of idch has been repaid 48.62 8.55

LUt ww n utstamling 641.00 245.73Amunt sold 12.72

of dich has been repaid 12.72 - _

MAL r held 4by Bk and MDA b/ 641.00 245.73

TUtL TJNDIS;ED 358.96 16.25 375.21

Cl C ted at the rate of the approval dates.bi Begl with Credit 1075-04, credits have been derad- in Spedal Draing Rgbts. The

dDllar aszumts in these cohius reresent the dollar equialent at the dtie of crdtnegotiatims for the IDA awuxts axd the dollar equivalent as of Septenber 30, 1985, for theuadisbursed m

c/ 1bs siIged an Nowmber 19. 1985.

WA2CE / doc: stat bkgnupops can / disk: WA2CE2

Annex II

- 32 - Page 2 ot

B. Smmwr CF IF 1 Th M4U (as of Septwber 30, 1985)

Investmet Fis,alNuber Year 0i1OK Type of &us1euss lan d Total

311-C4 1975 BATA Shoe Factory - 0.13 0.13355-CK 1977 SAFACAM I Rubber Plantatic - 0.81 0.8143D-W 1979 SAFACAPM II Rubber Plantam - 0.41 0.41452-0! 1979 ALUCAM Nor-Ferrous Metal 7.00 0.93 7.93551-0C 1981 sw Food & Food Promessig 1.12 0.19 1.31578-CQ 1981 SOCAVEPR Gl Bottle Factory - 0.12 0.12579-Cl 1981 SAFACM III Rubber Plentatim - 0.17 0.17633-01 1982 SOSUCAH4 Food & Food Processng 1.50 - 1.50681-Cl 1984 SAPICAM Food & Food Processing 0.87 0.34 1.21

1985 a/ SPFS Food & Food Processing 1.62 0.56 2.18

IUEAL gross cmmitmnits 12.11 3.66 15.77

Less caxc1.iatix=, temdmtinns repaynmts and sles -4.52 0.34 4.86

7UIAL cammwtts now held by 1I: 7.59 3.32 10.91

'fL UNDOTURSED 1.62 0.56 2.18

a/ In aditim, a Food and Food Processn invesflhnt in SPFS,tDtcaUlig $2.18 millimn, las approwed in ,uist 1984 buthas not ben sid yet.

1A2CE / doc: stat bUgpops cam J disk: MM2CE2

- 33 -Annex III

Page 1 of 2

Republic of CameroonEducational and Vocational Training Project

Supplementary Project Data Sheet

Section I. Timetable of Key Events:

(a) Time taken to prepare the project: 9 months.(b) Project prepared by: Government with assistance from UNESCO/Bank

Cooperative Program.(c) Date of first Bank mission to consider the Project: June 1980.(d) Date of appraisal mission: May 1984.(e) Date of post-appraisal mfssion: November 1984.(f) Date of negotiations: January 1986.(g) Planned date of effectiveness: July 1986.

Section II. Special Bank Implementation Action:

(None).

Section III. Special Conditions:

1. During negotiations, the Government gave assurances that:

(a) it will review with the Bank the study on the cost-efficiency ofprimary teacher training, and will begin implementing the agreedupon proposals when the three ENTAs open (para. 40);

(b) it will prepare and submit to the Bank an annual report on thestatus of the primary teacher development program being financedby USAID to serve as a basis for exchanges of views, leading toan agreement on the new programs by PY3 and their implementationin the Bank-financed facilities within 12 months thereafter(para. 41);

(c) the Education Projects Directorate and the Directorate ofManpower, Vocational Training and Projects will submit to theBank for its review and approval semi-annual training programsfor their respective components; and the candidates for thefellowship program will be approved by the Bank, and uponsuccessful completion of their studies they will be employed fora minimum of two years in the positions for which they have beentrained (para. 53);

(d) all project accounts will be audited annually by independentauditors acceptable to the Bank; the accounts and the auditors'reports will be submitted to the Bank within six months of theclose of the Government's fiscal year; and the reports of theauditors will be of such scope and in such detail as the Bankmight reasonably request (para. 60); and

- 34 -Annex IIIPage 2 of 2

2. Special Conditions of loan effectiveness would be that theGovernment has: (a) employed the specialized consulting firms or agenciesto provide assistance to DPE, DMOFP and CENAFOP, and selected thecandidates for the posts of project management specialists in DPE andDMOFP, and specialist in methodology for CENAFOP (para. 54); (b) appointeda competent local accountant for DMOFP (para 50) and four local specialistsfor the maintenance unit in MINEDUC (para. 45); and (c) taken all necessarymeasures to structure and staff its DPE to allow it to carry expandedresponsibilities (para. 46).

WA2DCFebruary 1986.

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