Document of

The World Bank

FOR OFFICIAL USE ONLY

R.won No. 7672-CHA

STAFF APPRAISAL REPORT

CHINA

VOCA"IONAL AND TECHNICAL EDUCATION PROJECT

MAY 15, 1989

Population, Human ResourcesUrban Development end Water Supply Operptions Division

Country Departmentt111Asia Regional Office

This document has a restricted clistribution and may be used by reipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorzation.

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CURRWNC

US$1.0 - Yuan (Y) 3.7Yl - us$ 0.27(May 1989)

January 1 - December 31

ACADEMIC YEAR

September 1 - August 31

ABBREVIATIONS

FILO - Foreign Investment and Loan OfficeFRG - Federal Republic of GermanyGSS - General Secondary SchoolMEdC - Municipal Education Commiss. -MOL - Ministry of LaborPEdC - Provincial Education CommissionPIO - Project Implementation OfficePPI - Proposed Project InstitutionR&D - Research and DevelopmentSEdC - State Education CommissionSOE - Statement of ExpenditureSTS - Secondary Technical SchoolSVS - Secondary Vocational SchoolSWS - Skilled Workers SchoolTA - Technical AssistanceTTC - Technical Teacher Training CollegeTTD - University Technical Teacher ':raining DepartmentUBE - Universal Basic EducationVTC - Vocational Training CenterVTE - Vocational and Technical Education

GLOSSARY

Key Provinces: Municipalities of Beijing, Shanghai and Tianjin, and Provincesof Jiangsu and Liaoning are called Key Provinces in thisreport.

aL _ t,, ,AL L UNILY

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECI

STAFF APPRAISAL REPORT

Table of Contents

Page No.

BASIC DATA ......................................................... . ...... iv

CREDIT AND PROJECTSUAY .......................................... v

I. VOCATIONAL AND TECHNICAL EDUCATION SYSTEM .................. 1

A. Overview ................................................ 1B. Secondary Vocational and Technical Education ............ 2

Secondary Technical Schools ............................. 3Skilled Workers Schools ................................. 3Secondary Vocational Schools ............................ 3Demand and Supply of VTE Graduates ...................... 3

C. Technical Teacher Training System ....................... 4D. Vocational and Technical Education Research ............. 4

E. Issues in the Vocational and TechnicalEducation System ...................................... 5

11tii7t4ninv rnf nA-il1i-4pq. 5Availability of Equipment .................... .......... 5Teacher Qualifications and Utilization .................. 5School Administration ................................... 6Curriculum. .......... 6Industrial Liaison. 7Manpower Forecasting. 7

F. Public Expenditure on Education. 7G. Government Strategy and Objectives. 8H. Bank Group Strategy. 8I. Rationale for Bank Group Involvement. 9J. Experience with Past Lending .. ......................... 10

This report is based on the findings of a preappraisal mission which visitedChina in October/November 1988 comprising M.H. You (mission leader and senioreconomist), R. Montague (architect), J. Stewart (technical educator andengineer-consultant), C. Yang (general educator-consultant), J.K. Lee(information system specialist-consultant), R. Ritchie (technical educator-consultant); and an appraisal mission which visited China in January/February1989 comprising M.H. You (mission leader), J. Steward, C. Yang, and J.K. Lee.

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

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PwN.

II. THE PROJECT ............................................... 10

A. Project Objectives .................... 10D. Project Component. 11

Vocational Training Cnters. 11Technical Teacher Training Colleges and University...Technical Teacher Training Departmnts .15

VTE Research and Development Centrs .17Training for Management of VTE System .18Project Concentration on the Key Provinces .19Project-Supported Improvements of VTE System 20

III. PROJECT COSTS. FINANCING. AND IMPLMENTAHION .23

A. Costs .23Summary of Costs .23Basis of Cost Estimates .24Foreign Exchange Component .25Contingency Allowances .25

B. Financing .25Capital Costs .25Operating Costs. 2

C. Implementationp. 2Project Monitoring and Evaluation. 28Status of Project Preparation .29

D. Procurement .29E. Disbursements .31F. Accounts ard Audits. 3

IV. BE_EFITS AND RISKS .. 33A. Benefits .33B. Risks .34

V. AGREEMENTS REACHED AND RECOMMENDATIONS .34

LISTS OF TABLES IN MAIN REPORT

2.1 Vocational Training Centers - Enrollment Expansion Under Different Modesof Training

2.2 TTCs and TTDs - Enrollment Expansion Under Different Modes of Training3.1 Summary of Project Costs by Component3.2 Summary of Project Costs by Category of Expenditure3.3 Overall Financing Plan by Category of Expenditure and Source of Funds3.4 Procurement Arrangements3.5 Disbursement Forecast

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ANNEXES

1. The System for ProvLding Technieal/Vocational Education at the SecondaryLevel

2 YVocational and Technical Education System3. basic Project Instit4tionx Data, VTCU, 19884. Technical Asistance Program5. Basic Project Institutions Data, TTCs and TTDs, 19886. Projections of Vocatlonal and Technical .ubject Teacher Demand by

Province, 1988-947. Plan for Establishing Research Centers8. Project Concentration on Five Key Provinces9. Project Costs by Component and Category of Expenditure10. Government Administrative Structure for Project Implementation11. Project Implementation Schedule12. Kay Implementation Dates13. Estimated Schedule of Project's First Year Activities14. Project Monitoring Indicators15. Selected Documents and Data Available in Project Files

MAP IBRD No. 21582 - Location of the Project Institutes

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CHIN

VOCATIONAL AND TECHNICAL EDUCTION PROJECT

Basic Data (1986)

Population 1.06 billionAdult Literacy rate 80% (1987)Per capita income US$300 JA

Education

Lower PostPrimaXy secondary URRer secondary secondary

Grades 1-5 or 6 7-9 10-12 13-16+Enrollment (million) 132 41 8 4Gross enrollment ratio (%) 107 52 16 4

Vocational and Technical Ecducation Subsector (1987)

No. ofTvpXe of institution institutions Enrollment

Teacher Training Schools

Technical Teacher TrainingCollege 12 16,400

Preservice Secondary Schools

Secondary Technical Schools (STSs) 2,854 1,222,000Skilled Workers Schools (SWSs) 3,548 1,040,000Secondary Vocational Schools (SVSs) 8,381 2,676,000

ExRenditure on Education (1986)

Total education expenditure as % of GNP: 2.8%Gov't education expenditure as % of total government expenditure: 11.4%Distribution of public recurrent exp. on education: Primary 33.0%

Secondary 46.0%Higher 21.0%

/a The 1988 World Bank Atlas.

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VOCAT OALAD EHNCL DCATION

Credit and ProietsGw_arvU

Borr,over: People's Republic of China

Ffletsrvsficiax: State Education Comission and Provincial/Municipal/Government

Amount: SDR 38.5 million (US$50.0 million)

ITems: Standard with 35 year maturity

Relending Terms: Annual interest rate of 2.5%, repayable over a period of20 years, including a 5 year grace period

Proiect Obiectivesand Description: Project objectives are to expand and upgrade the

secondary vocational and technical education (VTE) systemand the technical teacher training syscem that providesteachers to secondary VTE schools. Thc projectemphasizes improvements in the quality of the prLjectinstitutions and institution building in the VTE systemat all levels, concentrating on five highlyindustrialized provinces and municipalities. The projecthas four components: (a) assist 59 secondary VTE schoolsin 10 provinces and 3 municipalities to develop intovocational training centers (VTC) which would serve asmodels for further development of VTE; (b) assist 9technical teacher training colleges (TTCs) and 3university technical teacher training departments (TTDs)to expand enrollments and upgrade the quality oflaboratory and workshop instruction; (c) establish anational and 2 region VTE research and development(R&D) centers to resee zh and recommend policy measuresto improve the quality. efficiency, and cost-effectiveness of the VTE system and to developinexpensive teaching materials and equipment for the VTEschools; and (d) improve the management capability of theVTE system. The proposed project would provideconstruction, instructional equipment, books and teachingmaterials, and related technical assistance (TA).Parallel financing (approximately US$7.0 m) by theFederal Republic of Germany (FRG) would finance equipmentand TA required for the establishment of the R&D centers.

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Benefits and Risks: The principal aneafit4 of the proposed project would bean improvement in the quality of VTE in China through anexpansion in enrollment and improvement in quality andcost-effectiveness of the VTE schools selected to becomeMsCs; their subsequent wide demonstration effectthroughout the project provinces and muricpalities; andenhanced planning and management capability in the VTEsystem, particularly through development of a sorelyneeded R&D capability concerned only with VTE. Theproject would have an especially strong impact on fiveheavily industrialized key provinces by concentrating 58%of the proposed Credit and the contributions of theFederal Republic of Germany (FRG) in those provinces.The major risk of the project would lie in theinexperience of provincial and municipal VTE authoritiesin the implementation of a Bank Group-financed project.Project implementation risks would be reducedconsiderably by the participation of the State EducationCommission (SEdC) which is experienced in theimplementation of six Bank Group-financed educationprojects. There is also a risk that over the long-termnew project approaches may not be sufficiently replicatedbecause of financial constraints in some provinces.Prospects for new forms of financing from industry vouldbe studied under the project. The Bank Group wouldsupport this work by synthesizing relevant lessons oLinternational experience.

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Estimated Cost:

Local Foreign Total-- (US$ million) ------

Vocational Training C-nters (59) 28.6 20.0 48.6Technical Teacher Training Colleges (9)and Departmnts (3) 10.9 8.9 19.8

Training for Management of VTE System 0.1 0.3 0.4

base Cost 3LZ 68

Physical Contingencies 3.7 2.8 6.5Price Contingencies 7.4 1.3 8.7

Total IDA Financed Project Cost 0 7 AAA

VTE R&D Centers (3) - FRG financed 1.5 5.5 7.0

Total Proiect Cost 52.. 291

Financing Plan:

IDA 16.7 33.3 50.0Government 34.0 0.0 34.0FRC 1.5 5.5 7.0

Total 52.2 38.8 91.0

EstimatedDisbursements: Bank FY 1990 1991 1992 1993 1994 1995

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

Annual 2.5 25.5 14.0 6.0 1.6 0.4Cumulative 2.5 28.0 42.0 48.0 49.6 50.0

Economic Rate of Return: Not Applicable

Note: Figures in parenthesis deaote the number of project institutions.

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CHINA

VOCATIONAL. AND TECHNICAL EDUCATION PROJECT

I. VOCATIONAL AND TECHNICAL EDUCATION SYSTEM

A. Overview

1.1 The 'Compulsory Education Lawo of 1986 mandated universal basiceducation (UBE) through grade 9 in cities and coastal areas by 1990, in townsand villages with a medium level of develupment by 1995, and in more remoteareas at a rate commensurate with their economic development. The additionalimpetus thus given to rapid expansion of the lower secondary school system(grades 7-9) will subsequently generate increased pressure for admission toupper secondary schools (grades 10-12). If the bulk of these applicants toupper secondary schooling were to be accommodated in general secondary schools(GSS), which prepare students for the national college entrance examinationand do not equip students with specific skills useful for employment, theresult would be great numbers of upper secondary school leavers who would beunable to gain admission to any form of higher education and who mightexperience difficulty in gaining employment. Yet at the same time, thenational economy is experiencing serious shortages of manpower with technicalskills.

1.2 The Government therefore has increasingly emphasized the developmentof secondary vocational and technical education (VTE) to provide the technicalmanpower required by the rapidly expanding national economy. This emphasishas resulted in a 3.13 m increase in VTE annual enrollment during 1980-87 froma base of 2.46 m in 1980. The Government's increasing emphasis on VTE isfurther evidenced in the following objectives of the Education Reform of 1985(Annex 1):

(a) to attain a goal of 502 of all entrants to upper secondary schoolingin VTE by 1990 to meet the needs of social and economic development;

(b) to link general education with the specialized courses in VTE;

(c) to give "full play" to the initiatives of enterprises in developingVTE; and

(d) to develop programs to correct the serious shortage of specializedteachers in VTE.

1.3 A World Bank sector report 1/ questioned the rationale for theunl.form 50Z VTE enrollment and examined in detail the financial implicationsof enrolling 50? of all upper secondary school students in China in VTE and

l/ Technical/Vocational Education for China's Development, August 7, 1987(Report No. 6789-CHA).

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concluded that the costs would be prohibitively high. The Government hassince com to the same conclusion and is proceeding to increase the percentageof upper secondary school students enrolled in VTE at a more deliberate pacethan required by the 1990 target, consistent vith the financial capabilitiesof the provinces and municipalities to fund the incremental costs of VTE, theexisting differences in development of secondary education, and labor marketrequiremn ts among the various provinces and municipalities.

14 Human resource statistics available from the key industrial provincesindicate a serious shortage of technical manpower. For example, engineers andtechnicians comprise only 4.3Z of the five million employees in the machinebuilding industry. In addition, there are imbalances among levels oftechnical manpower. For example, the current ratio of engineers totechnicians in industry, 7:1, is almost the reverse of what is found inindustrialized nations. In general, the skill level of Chinese workers islow. Among 40 m technical workers in China in 1986, low level skilled workers(grades 1-3 in an eight-grade scale) accounted for 71Z; middle level (grades4-6), 26Z and high level (grades 7-8), only about 3!. This distribution istoo skewed to the lower end of the skills spectrum to constitute a labor forcecommensurate with the nation's economic development objectives.2/ TheGovernment has set the goal of training 8 m new technicians and skilledworkers during the Seventh Five-Year Plan period (1986-1990).

B. Secondary Vocational and Technical Education

1.5 The VTE system is designed to prepare secondary school students foremployment, and consists of three types of schools (Annex 2): secondarytechnical schools (STSs); skilled workers schools (SWSs); and secondaryvocational schools (SVSs). These schools accounted for about 40Z of theupper secondary school enrollment in i987. The VTE schools are operated andfunded by a variety of types and levels of Government agencies and stateenterprises. This diversity of sponsorship is due to the Government decisionthat individual provinces and municipalities and some larger enterp.,ises areprimarily responsible for operating their own schools as a means of obtainingthe required manpower.

1.6 The Central Government, however, plays no direct role in assuringthat the supply of VTE graduates is commensurate with labor market demands atthe local level. The SEdC, the Central Government's agency responsible foreducation and training, is concerned primarily with maintaining standards ofquality of the VTE system, as it is for all forms of primary and secondaryeducation. Because the responsibility for financing and operating VTE schoolsrests with the provincial and municipal governments, assisted in manyinstances by local enterprises, it is at these levels that decisions regardingincreasing or decreasing enrollments in various specializations are made.Economic forecasting data are, however, provided by the Central Government tothe provincial and municipal planning and education authorities as an aid inplanning economic and manpower development.

2/ By comparison, the skill levels are represented in the United Stateslabor force in the ratio of 10:57:33, respectively.

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1.7 Secondary Technical Schools (STSs). The STS was originally designedto enroll mainly upper secondary graduates to be trained as cadres andtechnicians. These schools have recently been instructed by the StateEducation Coission (SEdC) to enroll mostly lower secondary graduates. Uppersocondary programs are for two or three years, depending on thespecialization, and lower secondary schools programs are three _o four years.The longer length of the lower secondary school courses is intended to providea measure of the general education which the student would have received ifhe/she had enrolled in a GSS. Graduates of STSs are guaranteed employment andare assigned to jobs by the agency or enterprise that operates the school.Under the broad supervision of the SEdC, the schools are operated by thecentral technical ministries and their provincial and municipal bureaus, andprovincial or municipal education commissions (PEdCs or MEdCs). In 1987,1.22 m students were enrolled in 2,854 STSs.

1.8 Skilled Workers Schools (SWSs). The SWS is designed to producemiddle level skilled workers at entry level, which encompasses grades two tofour on an eight-grade scale. Applicants are generally lower secondary schoolgraduates. Course durations are three years for lower secondary graduates andtwo years for upper secondary graduates. Graduates are well qualified innarrow skills and are guaranteed employment by the Ministry of Labor (MOL)which regulates admissions to conform to sponsored positions and providesoverall supervision of the schools. The SWSs are managed by central technicalministries, provincial and municipal labor bureaus and large enterprises, withabout half of their resources coming from enterprises. The schools have closelinkages with employers and generally arrange substantial internships in thesponsoring industry for their students prior to graduation. In 1987, 1.04 mstudents were enrolled in 3,548 SWSs.

1.9 Secondary Vocational Schools (SVSs). The SVS is designed to producemiddle level technicians and skilled workers. The SVSs have developed intotwo distinct types of schools: agricultural schools, and predominantly urbanvocational schools. Most courses last three years, although some are for twoyears. Although graduates are not guaranteed employment, demand for admissionis high and in some cities the ratio of applicants to admissions is seven toone. local education authorities under the guidance of SEdC usually operatethese schools, but somie are operated by enterprises and some jointly by localtechnical bureaus and local education commissions. In 1987, 2.3 m uppersecondary and 0.4 m lower secondary students were enrolled in 8,381 SVSs, a16Z increase over the 1985 enrollment. The SVS system is expected to continueto be the fastest growing portion of the VTE program, as additional upper GSSswill be corverted into SVSs.

1.10 Demand and Supply of VTE Graduates. Labor market demands and thesupply of STS and SWS graduates are maintained in an apparent balance as aresult of the system of sponsorship and employment guarantees and the manpcwerforecasting methods employed. The numbers of students admitted to the STSsare determined on the basis of manpower estimates prepared through surveys oflocal enterprises or by industrial liaison committees, where they exist. TheMOL regulates admissions to the SWS to conform to the numbers and types ofpositions that enterprises have agreed to sponsor. Because course durationsrange from two to four years in the STS and two or three years in the SWS, oneyear forecasts of demand have obvious limitations. Moreover, as the STS and

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SWS graduates are guaranteed employment in their specializations, manpowerestimates that determine the volume of admissions to these schools tend to beconservative. This system protects against an over-supply, but evidences ofunder-supply abound.

1.11 The situation at the SVS level is dramatically different. Estimatesof the types of specialized skills most likely to be needed in the local labormarket are prepared in the same manner as above, but these estimates tend tobe more optimistic and influenced by the national objective of increasing thepercentages of secondary school students enrolled in VTE (para. ..2). As theSVS students are not given as intensive training in specializations as the STSand SWS students and many are in the service sectors, it is believed that thetraining in the SVS will make them adaptable to the labor market's needs and,although not guaranteed employment, they will be able to find employment inChina's rapidly developing economy either in, or closely allied with, theirfields of training.

C. Technical Teacher Training System

1.12 The technical teacher training system of China consists of 12technical teacher training colleges (TTCs) and technical teaciler trainingdepartments (TTDs) of various universities and normal colleges. The TTCs wereestablished and are operated by PEdC/MEdC with the approval of the SEdC.National direction and coordination are provided by the SEdC and, in the caseof the Tianjin TTC, also by the MOL. The TTC and TTD offer three types ofprograms: (a) training for specialized theory teachers in a four-year B.S.degree program; (b) two years of skill training leading to a certificate forlaboratory and workshop instructors; and (c) inservice training, typically twoyears, for VTE teachers. In 1988, the TTCs, TTDs, and other higherinstitutions produced about 10,000 new specialized teachers and workshopinstructors, corresponding to about 172 of the estimated annual requirementsof the VTE system for specialized teachers. The technical teacher trainingsystem is in need of upgrading. As much as 65? of the course work isconducted in classrooms or lecture halls, largely due to serious shortage oftrained teaching staff and appropriate instructional equipment and materials.

D. Vocational and Technical Education Research

1.13 Until the " Education Reform" of 1985 (para. 1.2), VTE research incurriculum and other important issues related to VTE (paras. 1.15-1.23) wasonly conducted on policy by government sectors. Since then, some measureshave been taken to develop VTE research, but the process is still in earlystages. A Division of VTE has been established within the Acaaemy forEducational Research in Beijing with a professional staff of 13. Theiractivities have been concentrated on theoretical issues in VTE, rather than onoperational research. The provinces and municipalities have established theirInstitutes for Educational Science, which thus far have displayed littleinterest in VTE and have not influenced VTE development in the provinces andmunicipalities. Consequently, at a time when the VTE system is beset Dy a

host of growing problems, (paras. 1.15-1.24) the research capability to assistin the development of appropriate solutions to these problems is woefullyinadequate.

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E. Issues in the Vocational and Technical Education System

1.14 The issues affecting the development of VTE in China were firstidentified by Bank staff in the VTE sector report (para. 1.3) and were laterconfirmed by the Bank preappraisal and appraisal missions. Discussions bythese latter missions with officials of the SEdC, PEdCs, MEdCs, and each ofthe proposed project institutions revealed a keen awareness of the problemsconfronting the VTE system. The understanding of issues by these keyofficials, together with their avowed intentions to correct theseshortcomings, constitutes a fertile environment for effective Bank Groupassistance.

1.15 Utilization of Facilities. In all three types of VTE schools and inthe TTCs and TTDs as well, a classroom is generally reserved for the exclusiveuse of one section of students, consistent with the present practice ofscheduling all classroom activity in the mornings and all workshop/laboratoryactivizies in the afternoons. This practice results in an uneconomical use ofspace, as classrooms are vacant in the afternoons and workshops andlaboratories are vacant in the mornings. Classroom, laboratory, and workshopperiods need to be rescheduled to ensure the most efficient utilization ofequipment and space. In some instances, if all rooms were fully utilized, thenumber of teaching spaces would be sufficient to accommodate planned increasesin enrollments.

1.16 Availability of Equipment. The shortage of equipment that exists inall three types of VTE schools, TTCs, and TTDs is a more serious problem inthe short-run than even the overall shortage of qualified teachers. Inschools fortunate enough to have qualified teachers in adequate numbers, theteachers are unable to work to full potential because they lack necessaryequipment. The percentage of required laboratory experiments and workshopexercises that can be performed with available equipment is reported to beabout 50 to 60Z across the provinces. The availability of relevant equipmentto enable students to conduct the full range of required laboratoryexperiments and to practice on workshop equipment is an absolute prerequisitefor the development of the quality VTE system that China requires.

1.17 Teacher Qualifications and UTtilization. Teachers of general subjectsare generally well-qualified, but many of the teachers of technical subjectsand workshop instructors are much less qualified. This is especially true cfteachers in the SVSs that have been recently converted from GSSs; many havebeen transformed into technical teachers without adequate preparation.Strenuous efforts are being made to upgrade the technical capabilities ofthese teachers through inservice training programs, but the number of teacherwho require such training far exceeds the capacity of existing programs.

1.18 The number of teachers, without regard to qualifications, employed inthe VTE system appears to be more than adequate. Student-teacher ratios inthe three types of VTE schools (paras. 1.7-1,9) are extremely low, rangingfrom 5:1 to 10:1, compared with international standards for these types ofschools of about 14:1. Such low student-teacher ratios and low average weeklyteaching hours result in uneconomical use -f teachers. Weekly teaching hoursper teacher average only 6 to 8 in the STSs and SWSs, 8 to 10 in the SVSs and4 to 6 in the TTCs and TTDs. In add4tion, the balance between general subject

teachers and specialized teachers is often not appropriate. The result isthat general subject teaching is increased (Annex 2) or teachers with generalsubject qualifications are required to teach specialized subjects. In eithercase, the technical standards of the graduates suffer.

1.19 School Administration. Although dedicated to the task of improvingthe standards of their respective VTE schools, many of those in chargn of therecently converted SVSs are former GSS principals or vice-principals with noprevious experience or training in VTE. These administrators requireconsiderable training and practical experience to be able to carry out newresponsibilities such as curriculum organization, selection of new technicalteachers, employn3nt of workshop technicians, efficient use of workshops andlaboratories, ,.nd liaison with industry. In particular, leadership is neededto generate and implement new ideas. The PEdC and MEdC therefore need toreview the credentials and performance of the VTE administrators within theirjurisdiction and to devise comprehensive training programs for thoseadministrators identified as not having the appropriate qualifications andtraining.

1.20 The number of non-teaching staff in many VTE schools is very large;in some cases, greater than the teaching staff. Overall, in 1987 non-teachingstaff comprised about 402-55Z of the total VTE staff, much higher thaninternational standards (about 25Z). Also, in many schools the average salaryof non-teaching staff is higher than that of teachers. The result is that thefunds being provided by provincial and municipal governments are notchannelled into the most important function of the schools: the teachingprogram itself.

1.21 Curriculum. In most countries, the foundation of all VTE is basictrade courses. Many of China's VTE schools place more emphasis on theservice sector of industry, rather than on basic trade courses. This is dueto the additional cost of basic trade courses and greater difficulty inrecruiting qualified teachers. Specialized theory and practice courses, whichtypically represent about 50-70Z of the VTE curriculum (Annex 2), are muchless uniform alxd standardized than the general education portion because theyare developed from a variety of sources. Greater consistency in the contentand interpretation of specialized courses would be achieved if teachers taughtboth the theory and related practical work or supervised practical workinstruction. This, together with better design of courses by te3chers trainedin methodology, would help to reduce the present variations in the standardsof graduates among the provinces and municipalities.

1.22 Job descriptions in industry are narrow, requiring proficiency in arelatively few tasks. Curricula in all types of VTE schools arecorrespondingly narrow and, in varying degrees, are both the cause and resultof the narrow job descriptions in industry. This narrow training reduces theflexibility of graduates to cope with innovation and technology changes andalso reduces their mobility from one kind of job to another. The narrowcurriculum also does not provide a sufficient base for the more advancedtraining which will be required as advanced technological processes areintroduced into the future industries of China.

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1.23 Industrial Liaison. Efforts are made in varying degrees by theprovincial and municipal authorities to determine the needs of localindustrial enterprises on a year to year basis in order to determine thenumber of students to be admitted to various fields of training offered by thelocal VTE school. A much broader effort is also required to ascertain whetherthe curriculum is appropriate to produce a graduate with all the skills thatfuture employers would require. The need for improved linkages with industryis especially critical because of the narrowness of the training provided intypical VTE schools. Industrial liaison committees, which exist in one formor another at the national, provincial/municipal, and institutional levels,need to be strengthened to ensure that the school's curriculum is well-targeted to the actual needs of industry. Properly designed tracer studies ofVTC graduates would produce the type and volume of data that would enable theVTE authorities to determine the degree to which their training matchedemployers' needs and would be of valuable assistance to the industrial liaisoncommittees' deliberations on desired curricula changes.

1.24 Manpower Forecasting. The Labor Contract System, which will allowemployment of workers on a contract basis, will have serious repercussions onthe present system of determining admissions to the STS and SWS if it gainswidespread adoption, as expected. The present sponsorship system would beundermined if sponsoring firms are not assured that STS and SWS graduateswould remain employed in the spcnsoring firms. The MOL, which regulatesadmissions to the SWS completely on the basis of sponsorship (para. 1.8),would be most seriously affected. Employers of STS and SWS graduates couldexperience shortages of skilled workers if the graduates should transfer toanother employer. This will produce a heightened demand for regional, longerterm manpower forecasting, as opposed to the present short term forecast basedupon individual firms' willingness to sponsor trainees. Such improvedmanpower forecasting will be possible only with the participation of broaderbased, more effective industrial liaison committees above, aided by theimproved long range forecasting techniques to be introduced through theproposed project and to be adapted to the Chinese environment by the projectR&D centers.

F. Public Expenditure on Education

1.25 From 1980 to 1986, China increased public recurrent and capitalexpenditures for education by 152 and 21? per year, respectively. During thesame period, the share of the total education expenditures (recurrent andcapital) as a percent of the total national budget 3/ averaged 11.62.Education expenditures at all levels comprised only 1.82 of GNP in 1986,(almost constant during 1980-86), which is much smaller than those in otherdeveloping countries (about 41 - 52) and developed countries (62 or higher).The State Council recently proposed increases in the level of educationexpenditures that would increase education's share of GDP as follows: 1988,3Z; 1990, 42; and 1995, 5Z. The People's Congress will review this proposalin March/April, 1989. In 1986, about 46Z of recurrent expenditures ineducation was allocated to secondary education. It is estimated that about10 of the total secondary recurrent expenditures was allocated to VTE.Recurrent expenditures per VTE student in 1987 averaged about Y 876 (Y 480 for

3/ The national budget includes expenditures by the central, provincial,municipal and prefecture governments.

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SVS, Y 1,000 for SWS, and Y 1,200 for STS). and about Y 2.200 for TTC.4/ Thecosts of the VTE schools are kept high by low student-teacher ratios and lowaverage weekly teaching hours (para. 1.18) and high proportion ofadministrative and support staff relative to teaching staff (para. 1.20).These issues will be futher explored in a seminar on education finance to beconducted in China in July, 1989, organized by the Bank Group and SEdC.

G. Government Strategy and Objectives

1.26 The Government recognizes that the VTE sector is the weakest link inChina's education system. The Seventh Five-Year Plan gives top priority tothe development of the VTE sector, and the next plan is also expected toaccord high priority to VTE. To alleviate the shortage of intermediary levelmanpower, the Education Reform of 1985 identified secondary VTE education asbearing a major burden in the preparation of technicians and skilled workers(para. 1.2). The Government has made several major policy changes to achieveits objectives in meeting the demand for technicians and skilled manpower.The policy changes include "training before empJoyment" as a principle whichshifts responsibility for training from the enterprises to schools andindividuals. In still another major policy change, the 1986 regulations onrecruitment by state enterprises established standards for employment ofpersons through the "Labor Contract System." These standards allow theemployment of workers, on a contract basis, using employment criteria basedsolely on the workers' skill levels. The reg lations are expected to createan upward spiral of demand for technical manpower, which will have a majorimpact on the development of VTE. The Government recognizes that success indevelopment of VTE will be crucial in provIsion of trained technical manpowerin quantities adequate to meet the requirements of China's growing economy.

H. Bank Group Strategy

1.27 To date, the Bank Group has focused much of its attention in theeducation sector on higher education, in accordance with the Government'searlier priorities. Since the announcement of the wEducation Reform' in 1985,the Bank Group's lending strategy has evolved around three principalGovernment objectives: (a) to universalize nine-year basic education; (b) toexpand upper secondary VTE enrollment; and (c) to improve the efficiency ofcurrent enrollment planning, job assignment, and management of highereducation. The Bank Group's involvement in basic education began with theeducation component of the Garnsu Provincial Development Project and a sectorreport on the production and distribution of textbooks and preparation of aproject in this area. The Bank Group has recently approved a Teacher TrainingProject (Credit 1908-CHA) to assist the Government in its effort to achieveUBE directed at the expansion and improvement of inservice training of lowersecondary school teachers (73Z of teachers are currently unqualified). Inaddition, in view of pressing needs for scientific and professional manpower,the Bank Group will continue its strategy of further strengthening highereducation through development of key research laboratories.

4/ Unit recurrent cost is average cost of 27 VTCs and 8 TTCs of theproject.

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1.28 The proposed first VTE project in China, as part of the Bank'slending strategy above, is designed to assist the Government in its efforts toexpand and upgrade the VTE system to meet the growing demands for technicalmanpower. Under the *Compulsory Education Law' of 1986, local governments areresponsible for achieving UBE and financing UBE and secondary VTE education.The Bank Group assistance is therefore directed at provincial and municipalgovernments, as in the teacher training project. However, as policies in VTEare decided and prescribed at the national level, planned actions leading togreater cost-efficiency and effective management would be instituted also atthe national level. Hajor planned improvements in vocational and technicalteacher qualifications and utilization, secondary VTE and technical teachertraining curriculum, equipment and facilities utilization, and VTE managementcapabilities will be critical to achievi1ig increased cost-efficiency andresponsiveness of the VTL system to changing needs in key economic sectors.

1.29 Accordingly, the Bank Group would focus its support on:

(a) conversion of selected VTE schools to serve as vocational trainingcenters (VTCs) which would become models for future development andinvestment in VTE;

(b) improvement and expansion of technical teacher training institutionsto help alleviate the shortage of trained technical teachers and toupgrade the level of teaching in VTE schools;

(c) establishment of research and development (R&D) capabilities in VTEat national and regional levels; and

(d) institution building, focusing on management, planning, pedagogy,curriculum development, student counseling, and coordination withindustries/employers.

I. Rationale for Bank Group Involvement

1.30 As part of its support to help China's success with its ongoingeconomic reforms, the Bank Group has identified the rapid growth andqualitative improvement of the VTE system as one of the critical elements forsmooth progress in implementating the reforms. The Bank Group's extensiveinternational experience in VTE, knowledge about the Chinese educationalsystem through six education projects under implementation, and its recentpolicy dialogue through the VTE sector work (paras. 1.3 and 1.14) puts it in aunique position to l;elp the Government in its efforts to expand and improvethe VTE system rapidly. Since VTE development is largely a provincial/municipal responsibility, the Bank Group involvement will allow strongercoordination among governmental bodies, particularly SEdC, provincial/municipal autnorities, and MOL, which will have their role to play inimproving the quality of the VTE system and its responsiveness to changingskill needs.

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1.31 Through this project, the Bank Group is beginning the development ofa new strategy for supporting education in China. Previous projectsimplemented by SEdC have typically spread resources relativaly equally amongprovinces and municipalities. In a departure from these practices, thepresent project would focus on five highly industrialized provinces andmunicipalities (Liaoning, Jiangsu, Beijing, Tianjin and Shanghai), hereafterreferred to as the key provinces, which will serve as models for VTE develop-ment and effective use of resources in the VTE system.

J. Experience with Past Lending

1.32 Nine Bank Group-financed projects in China have supported educationunder three ministries. Six are being implemented through the SEdC. Thefirst project, the University Development Project (Loan 2021/Credit 1167-CHA,US$200 m), assisted 28 major national universities in the fields of scienceand technology. It was approved in 1981 and was satisfactorily completed.The Project Completion Report (PCR) dated September 30, 1987 indicates thatthe project met its objectives of increasing enrollments and enhancing thequality of graduates in science and engineering, and helped to improve thequality of university management. Another project was approved in 1983 forthe development of polytechnic and television education (1411-CHA, US$85 m).The Second University Development Project (Credit 1551-CHA, US$145 m approvedin 1985) is helping to strengthen education in engineering, economics andfinance in 35 universities. In 1986, the Ptovincial Universities Project wasapproved (Credit 1671-CHA, US$120 m) to expand enrollmenits and improve thequality and management of provincial higher education programs with specialemphasis on teacher education programs in normal universities. Under theMinistry of Agriculture, Animal Husbandry and Fisheries, two loans/creditswere extended in 1982 and 1984 for the development of professionalagricultural manpower (Credit 1297-CHA, Loar 2444/Credit 1500-CHA, totalUS$144 m). A Rural Health and Medical Education Project approved in 1984(Credit 1472-CHA, US$85 m) included about US$43 m for support of medicaluniversities under the Ministry of Public Health. The Gansu ProvincialDevelopment Project approved in 1987 (Loan 2812/Credit 1793-CHA) has aneducation component (US$20 m) that will assist the province to meet cbjectivesfor the education reform. It is also the first operation specificallyfocussing on basic education, followed by a Teacher Training Project in 1988(Credit 1908-CHA, US$50 m) to support UBE in 14 selected provinces and threemunicipalities. Implementation of the projects is satisfactory. Policyinitiatives are being implemented as agreed and other quantitative andqualitative targets in ongoing projects are generally being achieved asscheduled by provincial and municipal education commissions.

II. THE PROJECT

A. Project Objectives

2.1 The objective of the proposed project is to assist the Government inits efforts tc expand and improve the secondary VTE system and thereby providequalified manpower required for key economic sectors. Emphasis is onimproving the quality of the VTE schools and teacher training systems and on

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institution building. The project would also focus on formulation andimplementation of measures to make the VTE system more efficient, costeffective and responsive to changing manpower needs of the economy. Thespecific project objectives are to:

(a) develop selected VTE schools to become 'centers of excellence" (VTCs)and to serve as models for other VTE schools in the provinces andmunicipalities in which they are located;

(b) increase the output of urgently needed middle level technicians andskilled workers and qualified technical teachers;

(c) upgrade the quality of the secondary VTE school system and relatedtechnical teacher training institutions;

(d) establish a research and development (R&D) capability in VTE; and

(e) strengthen the management capability of key VTE administrators inSEdC, PEdC, MEdC, and project institutions.

B. Proiect Components

2.2 The proposed project would comprise the following components:

(a) construction, laboratory and workshop equipment, library books andteaching materials, and related technical assistance (TA) for 59VTCs, 9 TTCs, 3 TTDs, and 3 VTE R&D centers; and

(b) TA to strengthen the management of the VTE system at all levels.

Vocational Training Centers (VTCs)

2.3 Fifty-nine VTE schools, selected from the key STSs, SWSs and SVSs in10 provinces and 3 municipalities (see Table 2.1), would be developed underthe proposed prcject into VTCs with the following objectives:

(a) to upgrade the q_ality of curricula, teaching, and laboratory andworkshop exercises while increasing the numbers of graduates;

(b) to serve as model for future development of the VTE institutionswithin the province or municipality where the VTCs would be locatedby demonstrating the effectiveness of the above improvements; and

(c) to multiply the benefits of the better equipped laboratories andworkshops by providing inservice training and extending facility useon a part-time basis to substantial numbers of students and theirinstructors in nearby VTE schools.

2.4 The VTCs would offer three types of training programs:

(a) three-or four-year programs for lower secondary schoolgraduates;

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(b) long-and short-term inservice training (one year or severalmonths or weeks) for enterprise employees to upgrade theirtechnical skills; and

(c) part-time training of students and teachers from nearby VTEschools.

2.5 The proposed project institutions were selected on the basis of twodistinctly different objectivest one was concerned with the long term; theother, the short term. Consequently, 31 VTCs would be concentrated in thefive heavily industrialized provinces (key provinces) where demand fortechnically trained personnel is acute. Efforts in these areas are expectedto produce an immediate impact upon the supply of skilled workers. One of the10 VTCs to bs established in Liaoning Province would serve as an audio-visualcenter for the five key provinces by producing and distributing VTE audio-visual teaching aids. Conversely, 28 VTCs are proposed to be located among 8provinces. While satisfying manpower needs within the area of the VTCs, theyare intended to provide a demonstration role of the VTC as a model for centerof excellence' and experience in VTC training to the provincial decisionmakers. Project provinces/municipalities were selected on the basis of thestage of development of their economies and education systems, their interestin and commitment to the VTC concept, commitment to project-supported measuresto improve VTE systems (para. 2.29), ability to defray the incrementalrecurrent costs of the VTCs and to repay in foreign exchange their share ofthe proposed Credit. Within these parameters and the limitation imposed bythe amount of the Credit, project institutions were selected by the SEdCs,PEdCs, and MEdCs on the basis of their ability to meet the followingrequirements:

(a) strong leadership dedicated to the improvement of VTE;

(b) sufficient development in terms of teaching staffs and facilities tobe able to benefit fully from the project;

(C) geographical location that would facilitate provision of inservicetraining to employees of enterprises and part-time training tostudents from nearby VTE schools; and

(d) curriculum of training programs that would have a direct impact onthe improvement of the labor force in the major economic sectors inthe province or municipality.

2.6 With the assistance to be provided by the proposed project, the 59VTE schools selected to become VTCs would be greatly improved over the typicalVTE schools. All VTCs, unlike many VTE schools, would possess all theclassrooms, laboratories, and workshops required by the curricula. Every VTCwould be provided with a sufficient quantity of up-to-date equipment to enablestudents to perform all the laboratory experiments and workshop exercisesprescribed by the curricula, as opposed to the low percentages in theseactivities in other VTE schools (para. 1.16). Because of the need for bettertrained teachers to utilize the more expensive and sophisticated equipment tobe provided by the project, priority would be given to the participation ofthe VTC technical teachers in the project's extensive teacher upgradingprograms (para. 2.11) and to the recruitment by VTCs of technical teachersfrom the expanded and upgraded technical teacher training (para. 2.12) to beprovided by the project. The curricula would be updated and made more

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relevant to the needs of industry through the efforts of the proposed R&Dcenters (para. 2.17) and through the increased effectiveness of provincial andmunicipal industrial liaison committees concerned with VTE (para. 2.29(f)).The combination of all of these improvements--better facilities and equipment,better teachers, and better curricula--would produce graduates better able toperform the tasks required at present and eventually able to perform a widervariety of tasks than now required.

2.7 Quantitative Expansion. The proposed project would enable the 59VTCs not only to improve the quality of their training programs but also toincrease greatly the number of students to whom they could offer cuch improvedtraining. Table 2.1 summarizes the present enrollments and planned expansionof the proposed VTCs under different modes of training (See Annex 3 for moredetails).

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Table 2 1 VOCATIONAL TRAINING CENTERS - ENROLLMENT EXPANSION UNDERDIFFERENT MODES OF TRAINING

1988 1994

province/ No. of Regular Inserv. Regular Inserv.municipality VTCr enroll- student enroll- student

ment annual ment annualtotal total

Beijing 8 5,294 5,989 8,890 13,985Tianjin 2 1,539 166 2,400 1,920Shanghai 2 862 0 2,000 440Liaoning /a 10 6,991 1,256 11,430 4,524Jiangsu 9 7,149 702 9,749 5,505

Key provincessubtotal 31 21,835 8,113 34.469 26.374

Annual increase 8.0% 22.02

Shandong 4 3,355 70 5,700 4,716Hubei 6 4,903 160 6,160 2,105Hunan 4 3,526 375 4,700 390Zhejiang 2 1,323 477 2,200 1,240Sichuan 6 3,785 1,599 6,620 2,765Shaanxi 2 2,543 414 3,100 300Fujian 2 1,227 0 1,770 300Guangdong 2 1,468 699 2,100 2,490

Subtotal 28 22,132 3,794 32,350 14,306Annual increase 7.02 25.02

Total 59 43,967 11,907 66,819 40,680Annual increase 7.0% 23.OZ

5 Key provincesas Z of total 53Z 502 68Z 522 65Z

La One of the 10 VTCs would serve the key provinces as an audio-visual center(para. 2.5).

2.8 The combined enrollments of students in the regular full-timeprograms of the 59 project VTCs would increase from 44,000 in 1988 to aplanned 66,800 in 1994, a 522 increase. Both the existing and plannedenrollments will be divided about equally between the key provinces and theother 8 provinces that comprise the network for future expansion of the VTCconcept.

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2.9 In addition, as part of the effort to utilize more fully the existingfacilities and the equipment to be provided under the proposed proiect, thesecenters would expand the number of part-time training programs that enrollworkers already employed in industry. The number of such inservice traineesis projected to increase from the present 11,900 to 40,700 annually in 1944.an increase of almost 2422. These programs would be mostly offered in theevenings.

2.10 Nearby VTE school students, together with their laboratory andworkshop instructors, would perform laboratory experiments and workshopexercises in the VTCs under the tutelage of VTC instructors on equipment thatis not available in their cwn schools. The program's objectives are toachieve a modest percentage increase, in the neighborhood of 202 to 602, inthe experiments and workshop practices required by the curriculum that thevisiting students wouid be able to perform. The experiments and workshopexercises would complement those performed in the visiting students' ownschools, but in most cases would not be sufficient to meet 100Z of thecurriculum requirements. Because of scheduling constraints VTCs are likely tohave difficulties in accommodating much more than about 50Z of their full-timestudents enrollments. This would translate into an average of about fivenearby VTE schools per VTC, with a total of about 21,200 students to receiveinstruction annuallly under this p.ogram in the VTCs. A detailed plan thatwould include daily schedules for the use of VTC laboratories and workshops bystudents from nearby schools would be prepared by each VTC principal by June1990. These would be reviewed by the SEdC and representative samples would beforwarded to the Association for comment.

2.11 Technical Assistance. TA (Annex 4) would be included in the projectto assist in upgrading the specialized knowledge, pedagogical and managementskills of the VTC staff. Sixteen staff-months of international expert serviceswould be provided to assist in the upgrading of the teaching staffs of allVTCs. Pedagogical experts in machine shop work, building construction trades,electrical technology, electronics, food processing, finance and accountingmanagement, audio-visual technology and computer application would conductweek-long or month-long seminars in four strategically-located centers. Withan average group size of 30 trainees, approximately 640 VTC staff are expectedto benefit from this program. The project would also include two months'pedagogical courses to be offered to 840 VTC teachers. These courses would betaught by 298 local experts. In addition, approximately 1600 VTC staff wouldb, enrolled in one-year programs in pedagogy, and vocational specialization inthe local TTCs, TTDs, and 330 and 55 supervisory staff (including TTC/TTDsupervisors) would be provided with one and three months of management train-ing, respectively. Three hundred and sixty VTC practice instructors would besent to factories and companies for two months for upgrading training in theirspecializations and practical knowledge. A substantial overseas trainingprogram would be included in the project to allow 86 teachers and supervisorystaff to study for one year as visiting scholars in overseas universities toupgrade knowledge of their fields and to become more familiar with vocationaltraining methodologies used in industrialized countries.

Technical Teacher Training Colleges (TTCs) and University Technical TeacherTraining DePartments (TTDs)

2.12 As the viability of the proposed VTC concept is heavily dependentupon an adequate supply of well-trained technical teachers, the proposed

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project would upgrade nine technical teacher training colleges (TTCs) andthree technical teacher training departments (TTDs) in parallel with theconversion of the 59 project VTE schools into VTCs. Through the provision ofadditional facilities, instructional equipment, teaching materials, and TA,the proposed project would enable these institutions to complete 1002 of alllabGratory experiments and workshop exercises prescribed by the curriculum,and to improve the quality of their instructional programs while greatlyincreasing their enrollments. Like the VTCs, the project TTCs and TTDs wouldaultiply the benefits of the better equipped institutions by extending theiruse to a substantial number of students under different modes of training.

2.13 Table 2.2 summarizes the present enrollments and planned expansion ofthe proposed TTCs and TTDs under different modes of training (see Annex 5 formore details).

Table 2.2: TTCs and TTDs - ENROLLMENT EXPANSION UNDER DIFFERENTMODES OF TRAINING

1988 1994Regular Inserv. Regular Inserv.enrollment student Enrollment student

TTCs and TTDs

Beijing United University, TTC 1,178 0 1,800 760Dandong Normal College, TTD 400 400 700 440Changzhou TTC 478 400 1.850 650Tianjin TTC 1,277 500 1,200 730Shanghai TTC 1,820 0 2,500 1,080

Key provinces Subtotal 5,153 1,300 8.050 3,660

Annual growth rate 82 192

Nanchang TTC 1,724 150 2,630 730Hebsi TTC 1,001 60 2,320 500Hunan TTC 445 50 1,500 500Henan TTC 1,333 180 3,000 2,500Jilin TTC 1,221 505 2,900 1,300Zhejiang Engineering College (TTD) 329 33 400 280Shandong Agr. Mech. College (TTD) 315 0 700 500

Subtotal 6,368 978 13,450 6 310

Annual Growth Rate 132 362

Total 11,521 2.278 21,500 9,970

112 282

Key Provinces as Z of total 45Z 57Z 372 372

2.14 Quantitative Expansion. With an annual growth rate of 8?, theregular student's enrollment in the TTD and TTCs in the five key provinceswill increase from 5,200 in 1988 to 8,000 in 1994. The regular student'senrollment in 1994 in the TTCs and TTDs in the other seven project provinceswill increase by 7,082 students with an annual growth rate of 13X. Bycompletion of the project, enrollments in all project TTCs and TTDs willincrease by 861 to a total enrollment of 21,500 in 1994. The capacity ofinservice teacher training programs in the project TTCs and TTDs would bedrastically increased. The TTCs in the fivs key provinces would expand theirinservice training by two folds. In the other seven provinces, inserviceteacher training would grow at a rate of 36Z annually and reach about 6,310trainees by 1994. By opening their facilities to non-project TTCs and TTDsand other secondary VTE institutions in the vicinity, the project TTCs andTTDs would offer the benefit of using their advanced equipment to a substan-tial number of students and VTE teachers in the 12 provinces. The 12 projectTTCs and TTDs would also provide training for the less developed provinces andminority regions by enrolling 'TE teacher trainees from those provinces andregions. The estimated such enrollment would be more than 5,000 annually by1994.

2.15 Technical assistance would include a large overseas and domesticstaff development program (Annex 4). The overseas program would comprise 7study tours of about 20 days each to enable 16 VTE administrators to becomefamiliar with the operation of similar institutio.as in industrializedcountries and 42 scholarships of one year duration for university studies inthe teachers' fields of specialization. The domestic training program wouldinclude participation by 314 teachiers in two months' pedagogical trainingcourses and 401 teachers in one year university pedagogical training courses.In addition, 66 workshop instructors would receive two months of training inlocal industries. Sixty local experts would conduct 3-month management andpedagogy training courses. Seventeen foreign experts would visit China inone-month terms to conduct weekly or monthly seminars in management andpedagogy.

VT! Research and Development (R&D) Centers

2.16 The objective of this project component is to develop an R&Dcapability that would address the problems besetting the VTE system(paras. 1.15-1.24), including uneconomical use of facilities and equipment,imbalances between teaching and ncn-teaching staff, and inadequate link withindustry, and narrow and flexible curriculum. The proposed project wouldassist in the establishment of a national center to be located in Beijing aspart of the Academy for Educational Research under the SEdC, a regional centeron the campus of the Tianjin TTC under the MOL, and a regional center inShanghai on a site to be determined. Each regional center would have readyaccess to the parent institution's laboratory and workshop equipment, butwould have its own office space, office and research equipment, and research,adminiAtrative, and support staff. No new construction would be required, asthe parent institutions would provide existing space to the centers. Theproject would provide the centers with office and specialized equipment, booksand international periodicals, and related TA.

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2.17 Roles and functions of the proposed national and regional R&Dcenters, areas of R&D activities, and division of specific responsibilitiesamong the three centers are detailed in Annex 7. Major activities of thecenters include reviewing with industry the desirability of broadening thecurricula to increase the versatility of VTE graduates, and proposing measuresand timing for accomplishing such revisions, where deemed desirable. TheSteering Committee would be established in the national R&D center to ensuresmooth and effective interagency coordination (Annex 7, page 3). The MOLwould be an important member of the Committee, as it will be responsible forthe administration of the regional R&D center in Tianjin. This center wouldprovide several important services including job analysis, development oftraining programs and materials, and equipment studies (Annex 7, page 4). Thedirectors of the three centers have been named. There are 13 and 35researchers at the national and Tianjin regional R&D centers, respectively,tat no researcher has yet been appointed at Shanghai Regional RED center. Therecruits are expected to come from university and college faculties, industry,ard fellows who have recent'y completed overseas training in some VTE special-izat'on.

2.18 The Federal Republic of Germany (FRG) has provided a commitment toprovide parallel financing for the costs of equipment, local and overseastraining, and foreign specialists required for the R&D centers to assume theroles and functions described in Annex 7. A FRG mission to China in April/Mayprepared terms of reference for the Steering Committee and detailed actionplans for each R&D center. The agreement on the action plans by theGovernment of China, the FRG and the Association, and the completion of allnecessary arrangements for the provision of the FRG grant would be the condi-tions for the Credit effectiveness. Detailed costing of the various elementsof the program has not yet been completed, but the program is expected toamount to approximately US$7 m.

Training for Management of VTE System

2.19 The primary objective of this proposed component is to improve themanagement capability of the VTE system at the national, provincial,municipal, and project institution levels. This component would concentrateon management principles and techniques applicable to the following functionsand aim exclusively at the top VTE echelons at all levels:

(a) VTE enrollment planning and statistical data processing and analysis;

(b) VTE financial and personnel management;

(c) evaluation of VTE curriculum in terms of changing skill requirements;

(d) evaluation of VTE institutions and monitoring standards of VTEgraduates; and

(e) planning for physical facility and instructional equipment andutilization.

2.20 This project component would provide extensive local and overseastraining programs for VTE administrators at all levels and specialistservices. Under the domestic training program, 25 SEdC and PEdC/MEdCadministrators, and 55 TTC/TTD administrators would be sent to selected local

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universities for three-month training courses covering various aspects of VTEmanagement. Another 90 administrators selected from SEdC and PLdC/MEdC, and330 administrators selected from the project institutions would participate inone-month seminars conducted by foreign management specialists (10 staff-months) on management skills at local universities. Fifty-four staff-monthsof local experts services would also be provided to SEdC, PEdCs/MEdCs, and theproject institutions to assist them in modernizing VTE management. Under theoverseas staff development program, month-long study tours would be organizedfor seven VTE managers in SEdC, 12 PEdC/MEdC administr-tors, and 16 selectedTTC presidents and VTC principals to learn experiences of similar type ofoverseas' institutions in administration, financing, and utilization offacilities and equipment. In addition, six TTC/TTD and VTC administratorswould be sent abroad for one-year study program to learn specifically modernmanagement including VTE management information system.

2.21 The SEdC, PEdCs, and MEdCs have prepared detailed action plansincluding implementation timetables and TORs for the proposed TA for the VTCs,TTCs!TTDs, and VrE management'. These were discussed during negotiations, andthe Govertment provided assurances that. it would carry out the TA programs(Annex 4) as agreed with the Association.

Proiect Concentration oa the Key Provinces

2.22 Previous Bank Group-financed education projects in China providedassistance to institutions in a large number of provinces and municipalitiesto achieve a wide geographic effect. In a departure from this practice, itwas decided to concentrate a major share of the proposed Credit in a limitednumber of provinces and municipalities to achieve a greater immediate impactthat would stimulate a duplication effect. To be selected as a key province,each province or municipality had to: (a) be already heavily industrializedwith an urgent need for greater numbers of trained technical personnel;(b) have a relatively well developed primary and secondary school system, and;(c) have the financial resources to make an early beginning in replicating theimprovements in VTE agreed between the Government and IDA for the proposedproject (para. 2.29), once these benefits have been demonstrated.

2.23 The selected key provinces satisfy the above criteria (Annex 8).They have greater percentages of their populations with higher educationalachievements and, most importantly, have higher proportions of students in thelower and upper secondary school levels at which the proposed project istargeted. In each key province, the industrial sector dominates all othereconomic activities, ranging from 52Z to 732 of the national income. Theircombined industrial output represents 33.8Z of China's gross value ofindustrial output. This level of industrial output helps to ensure that thekey provinces have the financial resources to replicate the projectimprovements in VTE.

2.24 Thirty-one VTE schools would be converted into VTCs in the five keyprovinces to produce a significant increase in enrollment. Their combinedenrollments in the regular programs are expected to rise from 21,800 in 1988to 34,500 in 1994, an increase of 58Z. Inservice student enrollments areplanned to increase about three fold during the same period. Of equalimportance would be the higher standards of training that would result fromthe project and which would have wide demonstration effects. The major

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specialties to be assisted in the five key provinLes are machining, electricalinstallation and repair, electronics, chemical engineering, printing, computertechnology, food processing, materials technology and accounting/financialmanagement.

2.25 One of the 31 VTCs in the key provinces would serve as an Audio-Visual Center and would be established in Dalian, Liaoning province. Thiscenter provided with appropriate equipment and TA would develop educationalaudio and visual tape. based on the curriculum developed and tested by the R&Dcenters (para. 2.17) and disseminate them to the project institutions withinthe key provinces.

2.26 Each of the key provinces has its own TTC or TTD which it canregulate to keep pace with the expansion of the VTE system. These areincluded in the proposed project. Regular enrollments in these institutionsare planned to increase from 5,200 in 1988 to 8,000 in 1994, a 56Z increase(Table 2.2). Enrollments in inservice study programs are expected to increasefrom 1,300 to 3,660, about twice more. Ifn addition to the provision of muchneeded instructional equipment, these institut`.ons would benefit from theupgrading of tha technical and pedagogical qualifications of their teachingstaff that would be made possible by the large local and overseas trainingprograms included in the TA portion of the proposed project (Annex 4).

2.27 The decision to locate the three proposed R&D centers in Beijing,Shanghai, and Tianjin lends further importance to these key provinces. Theinnovative concepts in VTE that would be conceived and developed in the R&Dcenters (Annex 7) would be tested in pilot projects in the 30 VTCs to beestablished and 5 TTCs/TTD to be upgraded in the key provinces. In addition,project-supported improvements in the VTE system, such as strengthening VTCties with industry and improving the effectiveness of industrial liaisoncommittees (para. 2.29(f)), would also be field tested in these industrial keyprovinces.

2.28 The concentration of such a large share of the proposed Credit andFRG contributions (about 592 of US$57.0 m equivalent in total externalfinancing) in these five key provinces is expected to result in a significantincrease in over a short period in the number of students enrolled in VTE.This allocation would direct resources where demand for better trainedpersonnel is greatest. Morever, such concentration would produce anintegrated package of relevant institutions and pilot projects - VTCs, TTCsand TTDs, R&D centers, and audio-visual center - that would result in acoordinated development of VTE in the key provinces. Expected success of theproposed project in the key provinces would generate wide demonstrationeffects not only for the key provinces but also other 12 project provinces.

Project-Supported Improvements of the VTE System

2.29 The SEdC, project PEdCs and MEdCs have agreed to undertake duringproject implementation period (1989-94) the following measures to make the VTEsystem at all levels more efficient, cost-effective and responsive to changingneeds:

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(a) to ensure that high utilization rates would be realized to make moreeffective use of facilities and instructional equipment, startingSeptember 1990 the VTCs, TTCs, and TTDs would abandon the presentpractice of scheduling classes only in the mornings and laboratoriesand workshop activities in the afternoons (para. 1.15). Instead, allthe activities would be scheduled in both mornings and afternoonsthroughout the school year. All non-project VTE schools would alsoimplement the above measure by 1997;

(b) the VTCs, TTCs and TTDs would be unable to fund from their presentbudget the additional recurrent costs incurred by participatingnearby secondary VTE schools (para. 2.10) and others (para. 2.14) formaintenance, repair, and spare parts for the newly equippedlaboratories and workshops. Arrangements to share these costs byassessing users' fees upon participating schools would be cumbersomeand could result in lower rates of participation because ofinsufficient funds in participatIng schools. The participatingprovincial and municipal governments would increase the recurrentbtudgets of VTCs, TTCs and TTDs to cover these additional costs,including foreign exchange as needed to purchase spare parts forimported equipment;

(c) the SEdC, project provinces and municipalities would increase theminimum weekly teaching hours (para. 1.18) per VTC teacher to 12-14hours (SWSs and STSs to 12 hours and for teachers in SVSs to 14hours) by 1995. The measure will cover 4,700 of the project VTCsteachers in 1988 and about 6,000 in 1994. Similar increases would beapplied to non-project VTE schools (338,300 teachers at 6,200schools) by 1997. Consequently, the average student-teacher ratio atthe project VTCs will be increased from the present 9:1 to 11:1 by1995 and will reduce the demands on the technical teacher trainingsystem. The number of VTCs teachers needed to cater for theenrollment expansion of 52Z in the project provinces andmunicipalities will be an increase of only 30Z. The TTCs and TTDswould also increase the minimum weekly teaching hours per teacherfrom the present low average of only four to six hours (para. 1.18)to a minimum of 10 hours per teacher. This would increase thestudent-teacher ratio from the present 5:1 to 6:1, 5/ and the planned862 increase in enrollments would require only a 482 increase in thenumber of teachers required;

(d) the SEdC would establish by December 31, 1989 teacher qualificationstandards against which teachers in the project institutions would beevaluated by the PEdCs and MEdCs. These commissions have agreed toupgrade by 1993 all teachers in project institutions who do not meetthe qualification criteria. Teachers in need of training in eitherpedagogy, technical specialization, or industrial experience, wouldbe sent to short-term or long-term training courses as appropriate;

(e) as an additional economy measure and to demonstrate to the other VTEschools the savingb that could be realized by a better balance

5/ This ratio dres not take into account the greatly increased inservicetraining (6.7 times) which is also taught by the VTC teachers.

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between the numbers of teaching and non-teachina personnel, the SEdC,project provinces and municipalities would reduce the current largenumber of non-teaching personnel in the VTCs, TTCs, and TTDs(para. 1.20). An experimental program to achieve this objective isunderway in Beijing and would be adopted by other project provinces/municipalities if proven to be effective. Other possible measuresinclude halting all recruitment of non-teaching personnel,redeployment of existing non-teaching personnel, and not replacingsuch staff when they retire;

(f) to ensure that the changing needs for skills would be reflected inthe development of the VTE curriculum, the provincial and municipalauthorities would increase the effectiveness of industry liaisoncommittees (para. 1.23) by improving the composition of thesecommittees to reflect better the major employers in the province ormunicipality and by improving operating procedures so that the viewsof such emplovers would be made effective. SEdC has agreed toprovide guidelines for the composition and operation of thesecoumnittees. As a further aid, tracer studies would be conducted byeach VTC yearly beginning 1990 (para. 1.23). In addition, regiona.long-term manpower forecasting techniques would be introduced throughthe proposed project and adapted to the Chinese environment by theproject R&D centers (para. 1.24).

(g) to adapt to the new job allocation policy and development of a marketeconomy, each project VTC would set up a Student Counseling Officestaffed by a trained counselor who would be familiar with placementissues and the job market. The SCOs would be responsible fororganizing pre-semester study/training orientations and pre-graduation seminars for career choice. The project TTCs and TTDswould add 'counseling" as a teaching subject in order to trainstudent counselors beginning 1991 school year;

(h) the project would help improve the opportunity for technical teachertraining for less developed non-project provinces and autonomousregions by setting aside student places each year in the project-sunported TTCs and TTDs (para. 2.14). Exact number of student placeswill be determined at the SEdC's June 1989 meeting on VTE projectimplementation;

(i) as an economy measure, the proposed project TTCs in Shanghai andJiangxi province and TTD in Beijing would gradually reduce the numberof students enrolled in the departments/sections that now trainteachers of general subiects such as languages and basic sciences byat least 50, in order to concentrate all of their resources andenergies solely on training technical teachers;

(j) as a measure to improve consistency in the content and interpretationof specialized course, VTC teachers would teach both the theory andrelated practical work or supervise the practical work instruction(para. 1.21) beginning 1990 school year; and

(k) each project provincial and municipal authorities would provideadditional funds each year starting 1991 specifically to upgradeequipment in non-project VTE schools progressively so that teachers

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completing the improved VTE teacher training programs in project TTCsand TTDs could teach the more advanced and modern practices tostudents of non-project schools.

2.30 An agreement to undertake the above actions by the provincial andmunicipal governments is a condition for inclusion in the proposed projectestablished by the SEdC. The Government has prepared detailed action plansincluding implementation timetables (1989-1995) for the above measures whichwere discussed at negotiations. The Government assured the Association thatit would ensure these measures are carried out, based on the understandingsreached.

II!. JECTCOSTS ING AN IMPLEMEhTAUT0O

A. Costs

Suamary o2Lf osts

3.1 The total cost of the project including contingencies is estimatedat Y 339 m or US$91 m equivalent. The estimated cost by major projectcomponents is summarized in Table 3.1 and by category of expenditure inTable 3.2. Detailed costs by component and category of expenditure are shownin Annex 9.

Table 3.1: SUMMARY OF PROJECT COSTS BY COMPONENT

ForeignLocal Foreign Total Local Foreign Total as % of---- (Y million) ---- --- (US$ million) --- total

VTCs (59) 106.1 74.0 180.1 28.6 20.0 48.6 41

TTCs (9) and TTDs (3) 40.8 33.1 73.9 10.9 8.9 19.8 45

Training for VTE Management 0.4 1.0 1.4 0.1 0.3 0.4 75

R&D Cen'ers (3)(financed by FRG) 5.5 20.5 26.0 1.5 5.5 7.0 79

Total base cost 152.8 1286 281.4 4 11 34.7 75.8 46

Contingencies:Physical 14.1 10.4 24.5 3.7 2.8 6.5 42Price increase 27.8 5.3 33.1 7.4 1.3 8.7 16

Total IDA financedproject costs 194.7 144.3 3390 5.2 2 8 91 0 43

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T-ble32a: SUMKARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE

ForeignLocal Foreign Total Local Foreign Total as s of---- (Y *llion) ---- --- (US$ *illion) --- total

Civil works 47.6 5.3 52.9 12.8 1.4 14.2 10Furniture 7.9 0.9 8.8 2.1 0.2 2.3 9Equipment 76.6 92.7 169.3 20.5 25.2 45.7 55Books and teachingmaterials 2.2 0.9 3.1 0.6 0.2 0.8 25

Overseas training 0.4 6.8 7.2 C.) 1.8 1.9 95Local training 11.8 0.0 11.8 3.2 0.0 3.2 0Foreigzl specialists 0.2 1.5 1,7 0.1 O. C . 90Local specialists 0.6 0.0 0.6 0.2 0.0 0,2 0

Totdl Base Cos Ji.3 1CL 1 55.4 3I9l 222 8 .42

Contingencies:Physical 14.1 10.4 24.5 3.7 2.8 6.5 42Price increase 27.8 5.3 33.1 7.4 1.3 8.7 16

Total IDA Funded 189.2 123.8 313.0 50Z LI 84.0 40Proiect Costs

R&D Centers (FRG-financed) 5.5 20.5 26.0 1.5 5.5 7.0 79Total Project Cost 339.0 "d.0

Basis of Cost Estimates

3.2 Base costs refer to actual costs or to estimated costs as of May 1989prices.i/ Costs of civil works have been estimated on the basis of unit costsper o2 in recent buildtng contracts awarded by the provincial and municipalgovernoents, taking Into account the types of building to be constructed andthe regional cost differences. Space requirements have been based on SEdCstandards.2/ Equipment costs are based on bid prices for recently importedsimilar equipment and on recent local prices for miscellaneous items includedin the equipment list for each type of institution. Local training costs arebased upon current costs at Chinese universities, appropriately adjusted forthe shorter lengths of the training sessions and for the travel and

I/ Date of negotiations.

2/ The Finance and Planning Department of SEdC sets standards for the unitarea per student for different levels of education. These standardsare reasonable and are used throughout China to allocate capitalexpenditures for enrollment increases.

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subsistence costs required to bring vocational and technical teaching staff tocentral locations for the pedagogical inservice and upgrading specializationcourses and for industrial experience. The visiting scholar program has beenestimated at US$12,000 per year, and overseas study tours at US$7,000 pertour. Costs of foreign specialists have been estimated at an average ofUS$8,000 per man-month for fees and per dies, plus US$600 for travel withinChina, and US$2,000 for travel to and from the home office.

Foreign Exchange Comonn

3.3 The foreign exchange component is estimated as follows: civil worksand furniture, 10%; instructional equipment, 55%; books and teachingmaterials, 30%; overseas training, 95%; specialists, 90%; and local trainingand local specialists, 0%. The foreign exchange component of instructionalequipment and books and teaching materials is based upon an assessment of theprobability of foreign suppliers winuiing equipment procurement contracts, andthe probable proportion of books and teaching materials that will be foreigrn-produced.

^°ttaDS£Dcy Allow-nees

3.4 Physical contingencies are escimated at 10% of the base costs ofcivil works, furniture, equipment, books and teaching materials, and 5% forall otner categories. Price contingencies have been calculated on the basisof expected international price increases of 5.3% for 1989 and 1990, and 4.1%for 1991 and subsequent years, and expected domestic price increases of 15%for 1989, 10% for 1990, 10% for 1991, and 8% for 1992 and subsequent years.Accordingly, aggregated price increases are estimated at about 12% of baselinecosts plus physical contingencies. Total contingencies are estimated to be22% of base costs.

3.5 The project cost includes the indirect cost of import duties andtaxes on building materials and materials for locally manufactured equipment,which have not been identified separately because the amount is negligible andis financed by the Government. Most of imported instructional equipment andtechnical assistance are exempt from import duties and taxes, respectively.

B. Financing

Capital Costs

3.6 The proposed IDA Credit would finance 55% of the estimated totalproject costs. The FRG government will parallel-finance US$7m grant for thethree R&D centers. The provincial and municipal governments would contributeUS$34.0 million equivalent (37% of total project costs) to finance 100% of thecosts of civil works j/ and furniture and about 25% of equipment. The IDACredit would finance about 75% of the costs of equipment and 100% of the costsof books and teaching materials, overseas fellowships, foreign specialists'services and local training within the IDA financed portion of the project.Agreement was reached at negotiations that the Central Government would makethe proceeds of the Credit funds available to the project provinces andmunicipalities on terms and conditions satisfactory to the Association. TheCredit funds would be onlent at an annual interest rate of 2.5%, repayableover a period of 20 years, including a 5 year grace period.

I/ The project costs do not include the approximately US$16.6 a inconstruction of VTE schools that is now underway.

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able 3.3: OVERALL FINANCING PLAN (JULY 1989 DECEMBER 1994)BY CATEGORY OF EXPENDITURE AND SOURCE OF FUNDS

Gov't FRG IDA Total * IDA------- (US$ million) ---------- financing

Civil works 17.5 0.0 17.5 0Furniture 2.8 0.0 2.8 0Equipml nt 13.7 41.6 55.3 75Books and material- 0.0 1.1 1.1 100Overseas training 0.0 2.0 2.0 100Local training 0.0 4.5 4.5 tooForeigrs srecialists 0D0 0.6 0.6 10Local t,pecialists 0.0 0.2 0.2 100R&?M centers - 7.0 - 7.0

Tpta li Lo OQ .0S Q1. .

Ooeratina Costs

3.7 If the present average weekly teaching hours per teacher and thestudent-teacher ratio were kept for the planned enrollment expansion duringthe project implementation period from 1989 to 1994, annual incremental recur-rent expenditures for the proposed VTCs, TTCs and TTDs generated by this proj-ect would increase to about Y 16 m in the five key provinces for which data oneducation budgets are available. This increase represents less than 1% of thepresent recurrent budget of the key provinces allocated to secondary educatiunwhich receives about 43% of the total recurrent budget of the key provinces.These additional expenditures, which do not include possible savings arisingfrom increasing teaching hours per teacher, could be accommodated withoutundue financial difficulties to the key provinces within the anticipatedgrowth of education budget. It is estimated that by increasing the minimumweekly teaching hours per teacher under the proposed project (para. 2.29(c)),teachers' salaries and subsidies would be saved by about 15% from estimated1994 operating costs.

C. Imnlementation

3.8 Similar to implementation arrangements for other Bank Group-financededucation projects, SEdC would be responsible for implementing the project andwould be the Government's interlocutor with the Association on projectmatters. Overall direction would be provided by a Steering CommiLtee com-prising the Vice-Minister of the SEdC and senior officers of the variousdepartments of the SEdC that would be involved in project implementation--theForeign Investment and Loan Office (FILO), the Planning and Finance Depart-ment, the VTE Department, and the International Cooperation Department. Suchcomprehensive representation would assure that any issues affecting projectimplementation that might arise and which would require either comment orapproval of such SEdC departments would be promptly brought to the attentionof the relevant department at a sufficiently high level for early resolution.

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A senior officer of the VTE Department, in cooperation with the FILO, would beresponsible for all pedagogical aspects of the project, including the enact-ment at the provincial and municipal level of agreements reached with theAssociation. FILO would be the coordinating and executing arm of the SEdC forday-to-day management of the project. FILO would directly manage domesticstaff training, overseas fellowship program, and recruitment of domesticspecialists, but would engage an agency to implement the recruitment offoreign specialists included in the technical assistance portion of the proj-ect. It would also be responsible for procuring the equipment through directpurchase or Local Competitive Bidding (LCB) and submitting withdrawal requestsand maintaining financial accounts. For the procurement of equipment throughInternational Competitive Bidding (ICB), FILO would contract the InternationalTendering Company of the China National Technology Import Corporation (CNTIC)under the Ministry of Foreign Econcmic Relations and Trade, which is res-ponsible for the international procurement of equipment.

3.9 Asthoug.h the SEdC would be the focal point of project impiementationand is responsible for maintaining naLional standards of education, includingVTE, considerable responsibility for the proposed project wouild be devolved tothe provinces and municips.lities included in the project. In essence, eachproject province and municipality would be responsible for the fin&rocing andsupervision of the civil works program in the proposed project, the approvalof the respective project institute's requests for additional equipment to beforwarded to SEdC for purchase under the proposed project, the review andfinancing of the project institute's staff development plans through localtraining programs to be forwarded to the SEdC, and the approval and forwardingto the SEdC of the project institutes' requests for overseas training of proj-ect institutes' staff and the services of foreign specialists. The specificresponsibilities of the project provinces and municipalities and the SEdC willbe formalized in Project Implementation Agreements acceptable to the Associa-tion which will be signed by the governors of the project provinces and mayorsof municipalities and the responsible vice-chairman of the SEdC. The Govern-ment would bring these agreements in draft form to negotiations for discus-sion. Assurances were provided at negotiations that the Project Implementa-tion Agreements would be concluded as a condition of Credit effectiveness.

3.10 To carry out these responsibilities, each project province and muni-cipality has established a Project Implementation Office (PIO), typicallystaffed as shown in Annex 10. A PIO has also been established in each projectinstitute (Annex 10). Either the president/principal or the deputy president/deputy principal of the project institutes has been named as the director otthe PIO. The director would forward periodic progress reports to the Head ofthe Provincial and Municipal PIO and all requests for assistance to thePEdC/MEdC and the SEdC. During negotiations, the Government agreed that -hePIOs would continue to function throughout the project implementation periodwith functions and responsibilities acceptable to the Association.

3.11 The SEdC officials would provide guidance and assistance to theprovincial and municipal and project institutes' officials, which would helpto overcome their lack of experience with Bank Group-financed projects.Implemencatio.a of the various project components is therefore likely to followthe implementation schedule shown in Annex 11. Key implementation dates areshown in Annex 12. The estimated schedule of activities in the first year is

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detailed in Annex 13. Most equipment, books and teaching materials areexpected to be purchased by the end of 1991. Staff development, both localand overseas, however, would not be completed until mid-1993 (see Annex 4 fordetails of TA component), and would require a Completion Date of December 31,1993. The Closing Date would be December 31, 1994.

Proiect Monitorina and Evaluation

3.12 Progress towards meeting project objectives would be monitored intwo broad areas and with three tools. The two areas would be: (a) achieve-ments in the VTCs, TTCs and TTDs and R&D centers; and (b) progress in imple-menting project components. The three tools would be: (i) annual progressreports using indicators to track progress; (ii) the Association's progressreview missions; and (iii) a mid-term review. IDA missions would review thestatus of progress towards the achievement of targets, but in addition wouldreview the overall progress of the project and would, when needed, focus onspecific issues. The mid-term reiriew would take place in the second half ofi991. Overail evaiation would be after project completion in December i993and the resuAlts wCould be included i.a the project cotepletion report (PC?,) dueir, June 1995. Responsibility for preparing the camptetion repors- would restwith the Steering Committee (para. 3.8), which would be assisted by theprovincial and municipal PIOs and departments/divisions involved in theproject.

3.13 In addition to the SEdC assistance to provincial, municipal, andproject institutes' officials on project implementation matters (para. 3.11),it would play an important role in the achievement of project-supportedimprovements in the VTE system (para. 2.29). The SEdC would bear primaryresponsibility for providing advice and guidelines to the PEdCs and MEdCs toensure a desirable degree of uniformity of approach and timing in the achieve-ment of the improvements for which the PEdCs and MEdCs bear responsibility.As most of the actions required to achieve project-supported improvementswould be either taken directly by the PEdCs and MEdCs or by institutionsimmediately under their supervision, the PEdCs and MEdCs would be theprincipal agents of change within the project. In addition to initiatingmeasures for which they would bear primary responsibility, the PEdCs and MEdCswould work closely with the project institutions' administrative staffs toassist them in taking the steps required to realize the desired improvements.The PEdCs and MEdCs are therefore the logical centers for monitoring progressin these areas.

3.14 Each project institution would prepare annual progress reportsdetailing the actions taken to-date and during the reporting period to achievethe project-supported improvements for which they would be responsible. ThePEdCs and MEdCs would evaluate each report and determine whether progress hadbeen satisfactory and, if not, the corrective measures that they would recom-mend to the institution's administrative staff. Each project PEdC and MEdCwould forward to the SEdC the project institutions' progress reports, togetherwith a brief summary that it would prepare on the status of the improvements,including those improvements for which the PEdCs or MEdCs would bear primaryresponsibility. The SEdC would forward its views on each annual report to therespective PEdC or MEdC. Assurancres were provided during negotiations that:

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(a) annual progress reports would be prepared and reviewed as describedabove;

(b) the SEdC would forward by September 1, 1990, and annually thereaftera summary of all PEdC and MEdC progress reports in a brief format tobe agreed between the Government and the Association during negotia-tions that would clearly indicate the progress in achieving each ofthe project supported improvements described in pars. 2.29; and

(c) the SEdC would hold a mid-term review of the implementation of thenew measures jointly with the Association not later than December 31,1991. Project monitoring indicators are shown in Annex 14.

Status of Proiect Prearation

3.15 The proposed project is at an advanced stage of preparation.ConstructiorL will be started in mnid-1589 and coz4pleted by eerly 1991. Equip-ment lists and TA implementation plans are being prepared by the SPdC vith a%roup of local exnerts in cooperation witr, the project provinces and

! municipalit.es and project institutes. The procurement of equipment isexpected to begin soon aftter Credit effectiveness. Efforts will be made tocomplete fellowship selection by mid-1990 for the first group of scholars andto place them in overseas institutions in September 1990. Local training isexpected to commence in September 1989.

D. Procurement

3.16 Procurement arrangements and procedures are summarized below:

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Table 3.4: PROCUflEYNT ARRANGEKENTS(US$ million)

--- aurmnt me. thod TotalICs LCB Other JA cost

Civil works 17.5 17.5(0.0) (0.0)

Furniture 2.8 2.8(0.0) (0.0)

Equipment 30.0 22.8 2.5 55.3(30.0) (9.1) (2.5) (41.6)

Books and materials 1.1 1.1(l1.1j) (1 .1)

Overseas training 2.0 2.0(2.0) (2.0)

Local training 4.5 4.5(4.5) (4.5)

Specialists 0.8 0.8(0.8) (0.8)

Iotal gf IDA 41 10.9 40(30.0) (9.1) (10.9) (50.0)

3 R&D Centers - Financed by FRG 7.0 7.0

Total 30.2 0kLI 43.2 210

LA Other includes direct purchase for proprietary items, or where justifiedby need for standardization, international and local shopping for goodsand services, and non-decided procurement methods for FRC - financeditems.

Note: Figures in parentheses denote the amount of the Association's financing.

3.17 All civil works and furniture would be procured using their ownprocedures and financed by the provincial and municipal Governments. TheCredit would finance about US$42.7 m equivalent of instructional equipment,including books, journals and teaching materials, and about US$2.6 mequivalent of TA. About 54% of the equipment would be procured through ICBand the remainder through LCB, international and local shopping or directcontracting.

3.18 Equipment requirements would be consolidated and divided intoprocurement groups of related items in terms of foreign and local marketplaceinterest and then advertised so as to assure the widest reasonable marketresponse for each group. All groupings and the choice of procurement methodwould be reviewed by the Association prior to release of bidding documents.ICB would be used for any tender with an anticipated value of US$200,000 ormore. Equipment groups with values under US$200,000 may be procured using LCBprovided procedures, provided there are adequate local sources which zan offercompetitive prices are pre-determined to be available. The LCB groups andprocedures would be reviewed and approved by the Association before further

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LCB action would be undertaken. Groups valued at less than US$200,000 forwhich local competition is concluded not to be available would be tenderedusing ICB procedures. Equipment groups with a value of less than US$50,000(up to an aggregate of US$1,500,000) may be procured by international shoppingon the basis of written quotations from three or more suppliers or by localshopping from three or more independent competitive local suppliers. Procure-ment by direct contracting of necessary proprietary items, or items from sole-source suppliers which must be standardized, may be purchased followingnegotiations with suppliers who either hold the proprietary interests or arethe sole manufacturers of the items requiring standardization. Each suchdirect purchase would be agreed to in advance by the Association and suchpurchases would be limited to an aggregate of US$500,000.

3.19 Books and printed teaching materials in the amount of US$1.6 m wouldbe obtained by direct negotiations with copyrighted publishers or suppliers.Such purchases would be subject to rtndom Bank review.

3.20 The Domestic Preference for Goods as set forth in the Guidelines forPro:urement may be used in ICB. In additicn to the foregoing, the priocreview of procurement decisions in accordance with the Guidelines for Procure-ment shall apply to all ICB transactions and to the first LCB transaction ofany PIO or FILO. Technical assistance would be procured in accordance withthe Association's Guidelines for Use of Consultants. During negotiations, theGovernment assured the Association that equipment procured under the proposedCredit would not be used for purely-commercial production in any projectschool affiliated factories.

E. Disbursements

3.21 The credit of US$50.0 m equivalent would be disbursed over a periodof 5 1/2 years (Table 3.5). Disbursements would be made on the basis of:

(a) 1002 of the c.i.f. cost of imported equipment, books and journals, orthe ex-factory cost of locally manufactured equipment and 752 oflocal expenditures for other items procured locally; 9/

(b) 1002 of total expenditures for specialists;

(c) 1002 of total expenditures for overseas fellowships and study tours;and

(d) 1002 of total expenditures for local training of the project schoolteachers.

The disbursement profile of the proposed project reflects an anticipated rateof withdrawal much higher than the average education project, because of anadvanced stage of project preparation.

9/ Exclusive of the US$13.5 m of equipment to be financed by theGovernment under its own procedures.

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Table 3.5: DISBURSEMENT FORECAST

DisbursementIDA Disbursement Cumulative profile (2)fiscal year Semester Cumulative as X of Chinaand semester ---- (US$ million) ---- total Ed. projects

FY901st 0.5 0.5 1.02nd 2.0 2.5 5.0 '.0

FY91lst 14.0 16.5 33.C2nd 11.5 28.0 56.0 16.0

FY92lst 8.0 36.0 72.02nd 6.0 42.0 84.0 49.0

FY931st 4.0 46.0 92.02nd 2.0 48.0 96.0 70.0

FY941st 1.0 49.0 98.02nd 0.6 49.6 99.2 83.0

FY951st 0.4 50.0 100.02nd 94.0

FY961st2nd 100.00

Closing Date: December 31, 1994

3.22 In order to facilitate the Association's processing of disbursementapplications, the minimum level of withdrawal would be US$500,000.Disbursement applications for contracts valued at US$200,000 or more would besubmitted to the Association with two copies of the contracts and, ifapplicable, other supporting documents. For goods and services contracts,each valued at less than US$200,000 equivalent, and study tours andfellowships, SOEs certified by authorized provincial and municipal governmentofficials would be used. Under SOE procedures, contracts and/or othersupporting documents would be retained by the provincial and municipal PIOsand FILO and, upon request, would be made available for review by visitingmissions from the Association. Disbursements against SOEs would be made onthe basis of a consolidated summary, each not less than US$500,000.

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Disbursements for other project expenditures would be made against fulldocumentation.

3.23 A Special Account would be opened and maintained in US dollars in abank acceptable to the Association to facilitate payment of all eligibleproject expenditures. An initial amount of US$4.0 m would be deposited intothe Special Account. This should be sufficient to cover all eligible projectexpenditures during any four months of the implementation period except forthe peak year of FY91. Applications for replenishment of the Special Accountwould be submitted monthly to the Association, or when amounts withdrawn areabout 5OZ of the initial deposit, whichever occurs first.

F. Accounts and Audits

3.24 Project accounts and details of the Special Account wo"ld bemaintained by FILO. The Audit Administration of the People's Republic ofChina would audit these cash flows accounts. During negotiations, agreementwas reached that:

(a) project accounts would be maintained by the FILO and all the PIOsaccording to normal and satisfactory accounting practices;

(b) annual audit reports prepared by the State Audit Administrationwould be submitted to the Association within eight months of the endof the Government's fiscal year; and

(c) a separate opinion on the SOEs would be submitted to the Associationtogether with the audit report.

Within six months of the Closing Date, the Steering Committee, assisted by thePIOs, would submit a PCR to the Association.

IV. BENEFITS AND RISKS

A. Benefits

4.1 The principal benefits of the proposed project would be:

(a) an expansion and improvement in the quality of 59 secondary VTEschools selected to become VTCs as 'centers of excellence';

(b) a wide demonstration effect throughout the provinces andmunicipalities in which the VTCs would be located;

(c) an expansion and quality improvement of nine TTCs and three TTDs;

(d) development of a sorely needed R&D capability to bring about thenecessary changes in curriculum, teaching methods, and coordinationwith labor market;

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(e) enhanced capability in planning, management, and evaluation in theVTE system; and

(f) rapid and coordinated development of the entire VTE system in fivekey provinces through the concentration of 58? of the total Creditand FRG funds to assist all segments of VTE in these provinces -VTCc, teacher training, research and development, and audio-visualand teaching materials production.

B. Risks

4.2 The major risk is del.' arising from the inexperience of provincialand municipal officials in the implementation of an IDA-financed project.This risk would be reduced considerably by involving in project implementationthe provincial and municipal officials who are responsible for implementationof the IDA-financed teacher training project (Credit 1908-CHA) and at thenational level by FILO (para. 3.8) which is experienced in the implementationof six Bank Group-financed education projects. Moreover, IDA staff wouldprovide assistance and training in project implementation through frequent andextended review missions.

4.3 An objective of the project is to improve the quality of VTE inChina. This operation aims to do so within financial constraints operating atthis time. While there are likely to be considerable gains in efficiency andcost-effectiveness of VTE through the project, there may be difficulty inspreading the use of the model, especially if China's labor market undergoesfurther change. There is a risk that over the long-term provincial govern-ments may not be able to continue providing the budgetary allocations requiredto improve VTE or to sustain new approaches. Prospects for new forms offinancing from industry and other sources would be studied as part of researchactivities of the proposed R&D centers (Annex 7, page 1). The Bank Groupcould support this work by synthesizing relevant lessons of internationalexperience.

V. AGREEMENTS REACHED AND RECOMMENDATION

5.1 During the negotiation the Government has agreed to the following:

(a) the Government would carry out the TA program as agreed with theAsso:iation (para. 2.21);

(b) the Central Government would make the proceeds of the Credit fundsavailable to the project provinces and municipalities on terms andconditions satisfactory to the Association (para. 3.6);

(c) PIOs would continue to function throughout the project implementationperiod with functions and responsibilities acceptable to theAssociation (para. 3.10);

(d) the SEdC would: (i) forward by September 1, 1990, and annuallythereafter a progress report that would indicate progress in

- 35 -

achieving each of the project-supported improvements described inpara. 2.29; and (ii) hold a mid-term review of the implementation ofthese new measures jointly with the Association not later thanDecember 31, 1991 (para. 3.14);

(e) equipment procured under the proposed Credit would not be used forpurely-commercial production in any project school-affiliatedfactories (para. 3.20); and

(f) (i) the FILO and PlO would maintain project accounts according tonormal and satisfactory accounting practices; (ii) annual auditreports prepared by the State Audit Administration would be submittedto the Association within eight months of the end of the Government'sfiscal year; and (iii) a separate opinion on the SOEs would besubmitted to the Association together with the audit reports(para. 3.24).

5.2 Conditions for Credit effectiveness would be:

(a) approval by the State Council of the Development Credit Agreement;

(b) agreements on action plans for the proposed R&D component by theGovernment, the FRG and the Association, and that all necessaryarrangements have been made for the provision of the FRG grant (para.2.18); and

(c) conclusion of Project Implementation Agreements acceptable to theAssociation, which will be signed by the governors of the projectprovinces and mayors of the municipalities and the responsible vice-chairman of the SEdC (para. 3.9).

5.3 Subject to the above conditions, the project would constitute asuitable basis for an IDA credit of SDR 38.5 m (US$50.0 m equivalent) onstandard IDA terms, with 35 years maturity, to the People's Republic of China.

- 36 - ANNEX 1

Page 1 of 2

CHINfA

RESTRUCTURE SECONDARY EDUCATION AND VIGOROUSLYPROMOTE VOCATIONAL AND TECHNICAL EDUCATION

Central Comuittee of the Comunist Party of ChinaMay 1985

1. Our socialist modernization not only requires senior scientific andtechnical experts but also urgently requires millions of intermediate andjunior engineers, managerial personnel and technicians who have receivedadequate vocational and technical education as well as urban and rural workerswho are well-trained vocationally. Without a huge contingent of such workersand engineers, advanced sciences and technologies and sophisticated equipmentcannot be translated into productive forces. Vocational and technical educat-ion constitute the weakest link in the whole chain of China's education.Therefore, it is imperative that we take effective measures to change thissituation and strive for a major step forward in this respect.

2. We have failed to make a genuine breakthrough in the development ofvocational and technical education, although we have stressed its need formany years. An important reason for this failure lies in the fact that for along time we have not set political, cultural and technical standards forthose to be employed and that the worn-out concept of belittling vocationaland technical education is deeply rooted. It is, therefore, necessary toconduct education for the purpose of fostering the concept inside and outsidethe Party that it is an honor to work in any trade or profession, that eachpromises brilliant careers for its best workers, and that anyone seeking a jobmust meet certain political, cultural and technical qualifications. Moreover,side by side with the restructuring of education we should carry out reform inrelevant rules and regulations of our labor and personnel system, putting intoeffect the principle of "training before employment." From now on, all unitsmust, first of all, employ graduates from vocational and technical schools.No one, particularly those to be engaged in highly specialized and technicalwork, shall be allowed to take up the job unless he has received his qualifi-cation certificate, just like a chauffeur who is not allowed to drive withoutobtaining a driving license through examination. In this connection, thedepartments concerned should work out rules and regulations for the gradualadherence to this practice.

3. To meet the rneed for vigorous development of vocational and technicaleducation, our young people, beginning at the middle school level, shouldgenerally be divided into two groups, with one group of jtnior middle schoolgraduates engineering regular senior middle schools and tle other receivingsenior middle vocational and technical education; one group of senior middleschool graduates entering regular colleges and universities; and the otherreceiving senior vocational and technical education. Those primary schoolgraduates who have received junior middle vocational and technical educationcan either start work or enter higher-level schools. Those students who arenot admitted to regular senior middle schools, regular colleges or universi-ties, or vocational and technical schools can get jobs after completing short-term vocational or technical training. We should take maximum advantage ofexisting specialized secondary schools and technical workers' schools by

-37-

Page 2 of 2

increasing their enrollment of new students and shou?d systematically trans-form a number of regular senior middle schools into vocational ones or set upvocational classes or start new schools of this type so that, within fiveyears, enrollment in senior middle vocational and technical schools will equalthat of regular senior middle schools in most places. This should put an endto the existing irrational structure of our secondary education.

4. In developing vocational and technical education we should focus onsecondary vocational and technical education and emnhasize the central role ofspecialized secondary schools. At the same time, we should make an Affort todevelop advanced vocational and technical institutions that will first enrollthose who have graduated from secondary vocational or technical schools withthe required specialized training as well as those employees who areexperienced in their special lines and have passed the entrance examinations.Thus, we shall gradually establish a system of vocational and technical educa-tion with a rational structure, ranging from elementary to advanced levels,embracing all trade and linking up with regular education.

5. Secondary vocational and technical education should be geared to theneeds of economic and social development. It should meet the need for improv-ing the technology and management of enterprises and expanding the tertiaryindustry in the cities, and the need for readjusting the set-up of productionin the countryside and the peasants' need for achieving prosperity throughhard work. We must stress the training of professional skills, which shouldcover a wide area and be coupled with an appropriate portion of general educa-tion so that it will provide long-term and wide options for jobs and meet therequirements of technical renovations and advanced studies. At the same time,we should pay more attention to education in professional ethics anddiscipline.

6. We should bring into full play the initiative of enterprises andestablishments as well as the departments concerned in developing vocationaland technical education. We should encourage individuals, collectives andother sectors to run schools and urge all units and departments to set upvocational and technical schools on their own or in cooperation with eachother or with educational departments. Apart from training personnel fortheir own units or departments, these schools can be entrusted with the taskof training personnel for other units and enroll self-supporting students.

7. The serious shortage of teachers poses an acute problem in developingsecondary vocational and technical education at present. Units and depart-ments that run vocational and technical schools should, first of all, recruitteachers from among their own personnel. In the meantime, they car, inviteteachers and scientists and engineers from other units to serve as part-timeteachers, and also specialized technicians and master craftsmen to imparttheir technical skills and expertise. Several vocational and technical normalschools and colleges must be established, and the colleges, universities andresearch institutions concerned should undertake the training of teachers forvocational and technical schools, so that there will be no lack of specializedteachers. The local authorities have the chief responsibility for runningsuch schools, and they are expected to assist and cooperate with the depart-ments of the central authorities in the undertaking.

38 ANNEX 2Page 1 of 4

CHINA

VOCATIONAL AND TECHNICAL EDUCATION SYSTEM

Secondary Technical Schools (STSs). The STS was originally designedto enroll mainly upper secondary graduates to be trained as cadres andtechnicians who were guaranteed employment after graduation through the laborassignment system. They have recently been instructed by the State EducationCommission (SEdC) to enroll mostly lower secondary graduates. The uppersecondary schools course lasts two or three years, depending upon thespecialization, and the lower secondary schools course, three to four years.The additional length of the lower secondary schools course is intended toprovide a measure of the general education the student would have received ifhe/she had enrolled in a upper GSS. Admission is highly competitive, with aratio of applicants to &dmissions of about three to one. Candidates identifythe specialization they wish to study, and sit far a national examinationprepared by the SEdC and administered by the Higher Education Department. AProvincial Higher Education Recruitment Commission assigns successfulcandidates to specific schools on the basis of examination scores and thestated preferences, within the overall enrollment quotas prescribed ay theschool's sponsor and the relevant government agency (central technicalministry, provincial or municipal technical bureau). Graduates are guaranteedemployment and are assigned to jobs by the agency or enterprise that operatesthe school. The schools are operated under the broad supervision of the SEdCby central technical ministries and their provincial and municipal bureaus,and provincial or municipal education commissions (PEdC or MEdC). Thegraduates are well qualified in narrow specializations. In 1987, 1.22 mstudents were enrolled in 2,854 STSs. The official curriculum consists ofgeneral education subjects (25Z), specialization theory (35Z) specializationpractical work (35Z), and mother" (5Z). In actual practice, however, due to ashortage of specialized teachers and equipment, the portions of the curriculumrelating to general subjects and "other" usually are increased by about 102and 5Z, respectively, at the expense of time for specialized theory andpractice. About five specializations directly related to local industrial orcommercial enterprises are taught in each STS. These vary considerably acrossthe vast regions of China, but for illustrative purposes may include suchfields as light industry automation, food technology, textile management,computer science, and financial accounting.

Skilled Workers Schools (SWSs). The SWS is designed to producemiddle level skilled workers at entry level, grades two to four on an eight-grade scale. Applicants are generally lower secondary school graduates.Course durations are three years for lower secondary graduates and two yearsfor upper secondary graduates. Admission is highly competiti-re, with a ratioof applicants to admissions of six to one in some cities. Graduates are wellqualified in narrow skills and are guaranteed employment by the Ministry ofLabor (MOL) which provides overall supervision of the schools. The SWSs underthe general administration of the MOL are managed by central technicalministries, provincial and municipal labor bureaus and large enterprises, withabout half their resources coming from enterprises. They have close linkages

39 Page 2 of 4

with employers and generally have substantial internships in industry fortheir students prior to graduation. In 1987, 1.04 m students were enrolled in3,548 SWSs. Because employment is guaranteed, the MOL regulates admissior1s toconform to sponsored positions. The official curriculum consists of generaleducation subjects (112), specialized theory (252 to 492, depending upon thespecialization), and specialized practical work (402 to 602). In actualpractice, however, due to a shortage of specialized teachers and equipment,general education content is increased by 20S at the expense of specializedtheory (262) and specialized practical work (411). 'Other' activities (2S)are added. About five or six specializations are taught in each SWS, and varygreatly from locality to locality. In aggregate, about 400 special subjectsare taught throughout the SWS system. They include such skills as lathe work,welding, iron smelting, machinery repair, and printing.

Secondary Vocational Schools (SVSs). The SVS is designed to producemiddle level technicians and skilled workers in agriculture, industry, andcommerce. Originally established to provide pre-vocational training toprimary school graduates in urban areas prior to assignment to the countrysideor factories, they have now developed into two distinct types of schools:agricultural schools and predominantly urban vocational schools. Host courseslast three years, some only two years. Although graduates are not guaranteedemployment, demand for admission is high and in some cities the ratio ofapplicants to admissions is seven to one. Local education authorities underthe guidance of SEdC usually operate these schools, although some are operatedby enterprises and some by local technical bureaus and local educationcommissions jointly. In 1987, 2.3 m upper secondary and 0.4 million lowersecondary students were enrolled in 8,381 SVSs, a 22Z increase over the 1985enrollment. The SVS system is expected to continue to be the fastest growingportion of the VTE program, as additional upper GSS will be converted intoSVSs to achieve the government's objective of enrolling 502 of the uppersecondary schools students in some form of VTE. To keep the capital andrecurrent costs of converting upper GSS within the financial capabilities ofthe respective provinces and municipalities, the majority of SVSs so far havehad to restrict their curricula to the less expensive training for the serviceand commercial sectors. The official curriculum consists of general educationsubjects (452), specialization theory (30Z-35Z), and specialized practicalwork (20Z-25Z). In practice, general education subjects are increased onlyslightly (42), which results in about half of the curriculum allocated togeneral education, and practical work is increased to 272. Due to a shortageof specialized teachers and equipment, instruction in the theory of thespecializations is reduced to only 222, a small fraction of the timeoriginally intended for practical work. An average of three or fourspecializations are taught in each SVS. Although some industrialspecializations (electrical equipment, pipework, chemical engineering) areoffered, most of the specializations ara in the commercial and services fields(accounting, tourism, pre-school teaching, art design). The SVSs have lessformal linkages with employers. The links between SVSs and employers must bebuilt in order to ensure a market for SVS graduates.

Other Forms of Vocational and Technical Education. In addition,about one million students were enrolled in apprenticeship programs in 1987and about 2.0 m were in various preservice training programs conducted by

40 ANNEX 2Page 3 of 4

labor service companies, which are under the administration of MOL and itslocal bureaus. Their financial resources come mainly from fees from employerswho contract with them for assignment of trained personnel. The SEdC providesgeneral leadership for inservice training programs which are substantial.Some major companies and factories also run inservice STS training whichenrolls workers from the factories in either three year full-time course orlonger term part-time programs. In 1987, 1.1 m workers were enrolled inemployees' skill training schools and 4.4 m were enrolled in adult skilltraining schools. In addition, 0.4 m were enrolled in over 2,000 inserviceSTSs and 1.5m were enrolled in 4,200 adult STSs.

CHINA

Vocationtl-Technical Education Project

The Vocational.-Technical Education Systm

Target Population Reporting AgencyTraining ---------------------------------------------- ------------------ -----------------

Training Institution Objectivw Junior Upper- Lower- Job- In-serv. Provinc. Sector Labor fn- Enter-Collelge Second. Second. Wtiting Workers/ or Munic.Ninistry/ istry/ priseStudents Graduates Graduates ouths Eqployee Ed.Com. Bureau Bureau

PRESERVICE 2/

STS Technician x y x x ySwS Skilled Worker y x y xSVS Technician/Sk.Worker y x x yLabor ComWpny Trng. Schl.Sk.Worker-Single Subj. x x y x yTTC/TTD VTE Teacher y x yPotytechnic/Jr.College Engineer/Technician y y x yEnterprise University Engineer/Technician y x y

IN-SERVICE

In-service STS Technician y yInst. of Education VTE Teacher VTE Tcher.

1/ my" - mjor role; x" - minor role.2/ All pre-service institutions do some sort of in-service training for state enployees and individuals,

but their mmin task is pre-service training for various techni:al personnel.

x

0

~c* isat- tcmcaLimai moc

VtlCAIOtbL-TECOtICAL EIIIUCAIIIS PWCF

isse Project IrstitutMia got - VICs

vEACumj/o. OF samw, ,a

PNECI VATUIOUla-IEClIIC1 *EAUA IllSEV.POJICTlED P.ECIfEO D0D oF s. 0F I0. O1 StMIII 01113 IAU- 11. U . U 5 3011 MA u

EOUCATI CENTERS GltEI0 ENI SlTD. 0.Ut IllSEIVICE FULL-IIIE 1INI0S- 01111 hITEAC STlfF TIN _ICtC Otl 1161 1F 6 1tAt

ALIAL ElSt. SIISEMIS TEACUPS TRA*OSt STAlF UF 10 RAT 10 tM MIMS 1*AFF OIle Milo 1TlO

191 TOT*A 19K CAM1_ tuM i4 ir iws 111 19 t_4 1_4 t_1 89 I, "FL

Is" 1994

mailJ'

1 EiiJIK 110.1 tlIaII IMIIDUI SC"tt 1,001 1,200 ISO 101 S2 Y9 10 1 121 S2 d Is 5 1

2 BEIJING V10.2 lIOlI lIUSIS SCOOOt S91 145 1,000 145 TI 40 iS C I 16 40 a t2 S I

3 KiJIiK IISIIIEIII AND WIENS li0USIEitA SCOO TI0 704 1,410 1,050 6I 35 127 tt S in as 12 6 1

4 BEIJING SCIODt Of 11CIIIE l'iUST 611 1,200 ISO 6 33 62 9 I 14S *S 9 5 I

S IEln.' 911II SclOm 493 360 1.000 560 71 11 46 r I U la A Is a 2 '

6 1*IJI*G ECtItS AiD FIIIE SCNIOOt 636 91.0 1,000 2,140 ?l 10 36 12 2 11 IS i 11 7 2

7 EIJIIUH A1tU VtAlIlMt SCUM 01Of CIVIl FtfCCRICAL AtlIAICES 370 aol 1.000 3,520 39 22 a 9 1 is 2* TS 1 I 2

1 E IJIKG I0.179 VOCAII IL AND IECVIICAL SCNIODL Of EtLICIICS 675 2.960 1,000 6,240 GS 9 14 10 3 le 12 42 1 a I

1.* total 5,29K 5.99 8,890 11,900 SSZ 212 415 10 1 12 23. 5" 11 * 1

I- :Z..

x

5S

o5

f ,ien n:t-,cdDl

VOCATIIIAL-TECNICAlI EOUCAIIOU ISaAC?

Sesic Project institutin Date - VICs

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

TEACI/IS. OF S$" II TcIKUhPROECI VCATIOAt-TFCN ICAL 6ECUAQ IlSweRv.PSJECIED PoJECIED do. OF 0a. OF 10. OF SltDEUiI 010 FUtL- WS. OF W. Of STOMu u.t ine

EDUCATION CEINIES f(WOINEII Slt. NFSU3ll IISImVICE FULL-TIlE MMINIS- OaIEJ IEJACES S Flt 11 0 silu- ST= STAFF STAFFAJIL EUJ L tt. Stt IS IECIIEmS ITUalS STap RATO tAlt 10 lUCAP SI l 1FF AtlMMISI S Mt UllO

19YI TOTAt 1998 (AML) IU INS Iva low If" 19111 119" 099 "PA "M tINS1986 199

9 SMEViNG .ICIPAL SCNWCt oF ACNIIIIV AO ELECTRONICS IWIStU 7111 170 1,800 700 97 68 141 a 6 1" to 112 * 4 1 4-10 LIUIeG PNWvIeCtA SCea Oa LIGII IUtSlit 964 222 1,400 304 128 70 ?1 a I In y e 7 9 $ I W11 LIA11ec PmIleCIAt SCNIO af EtEClmIIC IN IStm EtCIRmilCtmIuStm- 616 1, 20 600 78 34 77 9 1 142 63 163 9 4 I12TI E m 0 ISKlttED SMEh SCes tc1t PAaGG gUR IIAU 912 1. 30 120 75 16 119 IZ I 112 16 lie 12 A I1I SNmtSAe maICIPAt VOAcTiOat EOtUICAuIN CENTER 6t0 1,000 160 69 32 5 10 2 S 27 6 IS is 21. SMmut,aC MalMCPAt 10. I uIII WAKING VaAtIlN SCNMt 160 110 1.000 W0 SO 51 10 10 I 15 35 S U6 M 2IS II t. M tNI VOCAlIONat OUCATIIN CEITER 720 ISO 1l000 Soo a it 28 9 2 9 Is b 11 a 216 0StUrI VOCAICIAL AND tuClaCI. SCUOM OF EtEtSIMICS S000 94 1, 1 20 00 it 9 to 4 M Ist tO is IS 417 TRAINING MM IiEIMSmwIP CENTER OF llatIM VCAllOMAt SC1110 0 *20 1m 820 81 a 7 O 3 6s a i r S SIS LIAONING PaIKi%CI P 0IICEICAl EA IifEIlUlG KS1101t 891 90 1260 2M0 90 6 136 9 5 116 11 me 3 3 I

Sqk-tot.t 6,991 1,256 Il,30 4,78 a0" 381 199 9 I 1.m go itS II S I

*eelZ

0MiXCp

CNI.A

VOCATIONAL - FCMiCAt EDUCATION PnOJIC

S.ITC Project Instjtt.tn Dte - VICs

------- ~~~~~~ ~~~~~ ~~~~~ ~ ~~ ~ ~ -- - . - -- - - - - - - - - - - -- - - - - - - - - - - - - - ... ... . -- - - -- - - .... .. .... ....... .. ...... ................ _.......... .............. _........ ........... ....

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P90JECI V1ICIOAI TIECiSICEt IAULAA INMERVPIOJFCIlD POJECtIO IO. OF nO. Of IO. OF SIISUI OIDED fi*Ut- NO. 6 W. OF SPdUtI ML all"EOUC*rA1 CEIIIES E*us1Imi SILDO. NEUWI IuSFRVICE hUA.ti1m% ADINIS- OlIIE IIACIER SIAFF I*lE a_Ises- aim "M UIT SAF

AMIAL ENNOtt. STtgENtS IEACNIES 11AtO1S SIAFF RATIO A0*10 IEiCII IRAI* L SlIMf M1I1 mile M1Tl

1968 1OAL 1996 IALt) 1966 1968 1966 1966 1901 19 _ 1199 "e 96 99 1114198a 1996 ~~~~. .. ... .. ........ ..... .. .. .. . ... ............ .............. .. .. . . .

19 ICIII WHiiE UlDIING SCIIOt 891 IS2 1,640 670 10t *2 122 a 1 1X 42 in

20 I83I VOCATuOINAL SOI OF (tECTlRNIC nO 160 1,0C0 940 9iS 2 10 2 me iS 42 ltl 3 221 SIIZIIIU SLii VOCAIO3 t SCIIO0lt 6SS 127 960 0 I s a 10 u is 2S 6 222 MOlau I=TIONII s5C0D 0F ECIbOiIIcs 749 1.060 1.170 as3 I n 26 9 2 IS S 12 * 223 MAIJItG OAICIPAL IO. 13 lIGN SC110t 891 1.129 UV 0 20 is II 2 2a 2S iS 9 224 XU6 I IIO*. IVOC6A I ALsCaM 700 900 650 n a U 9 I n I 46s r I25 TANCEW. CUIQIGIA VOCAIli(L SCN0 6.1 1,0I 0 405 66 3 36 13 2 s I IF I? 1 226 ZHEmJIAUG SKILttFONIEPS SCNmL 706 263 1,000 680 6 11 67 le I 1 23 lit s * 127 LiAlUlSlAMG LONOXEG VOCAlCillAt SCl( t 836 1.160 30 75 1 4*5 I I lo 1i 46 ¶2 1 2

S1.-tOtaI 7, 19 702 9,769 S,505 711 1" 617 10 I I" "1 S05 II 6 1

TI IAJIW

28 tiaJIn SuN Of IIEIEII AO V3 DO I100DSIVt 6a9 166 1,200 320 III 62 1Us a 1 lt as is IH 16 29 I lJIiN SICmt' VOCATIONAL 8 IECt4ICAJt SilCO Of CVPUlfV 680 1.200 1.600 96 26 Is 7 2 120 n U le 2

S3b-tets 1,559 166 2.600 1,920 20s 68 160 a 1 23t 9s Ss 6 2

SNA8UGN8I .~

wt0 SWAGAI Fl IEll VOCATIONlAL AND FFCNcat SCHoo 5IS ,D000 440 So 9 4r 12 1 1*0 9 ffr 2 eol :g31 SlF4GHZ ECOllIC IEIIIN SC:IIOO Soot 1.00 Ssa 13 So 9 1 1S, 13 is a5 to1*

s.h 101.3 -86 0 2,D00 6*.0 8a 22 97 ¶0 I 215 22 12 9 S I

0P%,

45 ANNEX 3Page 4 of 6

~~~~~.X*v6* * ... 4 *~~N P. Nr *

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+. ;l,.N s'4 a - ^ Nas

: >, : ~- - ,*O 0 _44 _

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WV*lSATIU-1lCNUIC*L. IOUICATII0 PIOJCI

Basic Project institution Daet - VICs

IFACIE6/b. w $"WISUJ NOJECI VMIC*ltUM-IECICAt i1GCAAR IIURV.POOJICIF0 PIt)JIC1IE NO. OF go. Do s. of s1io6MTi 01163 hALI. M. W0 *. u 516.11. E.

ESMAIC*m0 C001161 5160116 S1111. *5116L* IMUENVICE FUut-II. MMWE5S- OIm.R TuACNs. STAFF IMm MORRS OM 11110191611 0 5160fANUL 13001. 511"NI(UI IEACERES IMICOIS STAFF RATIO "fie0 ll ama IumU notU Wm mlme Ms

1966 1O5*1 1994 (AJAL) 19m t9M tI$ tIm "aK 193 19106 iK 11101111,9941966 1991.

2lmJ lANE

46 Z16flAMm 9106134* SCNOO OF CG6MOICATIOIS 716 350 1.20 6W40 128 39 113 6 I 146. 42 is0 7 6 14? ZEMJIANG PIOVIKIAL SCNOOL OF fACEIME ImusIN 607 12? 1.000 600 a0 Ss Po II I 133 is a3 S 4 I

Sub-totat 1.323 4?? 7.200 1.240 206 94 192 6 I M9 112 la 7 4 I

'.8OENCOIU601CNI30IU1ILDING SCNOOI 632 659 1.600 193 130 36 112? 6 I ID3 n a U 6 I

49 CUOKOGiEG VOCAIIOfAs W IECIUICAL EOUICAIIOU Clifli 450 210 920 ?20 4 26 42 IS I 163 II ST 9 3 ISO CMUM ISUICIPAI VOCATIOIAL SCNOf Of A*CNIIVCTUAE 52* 310 1.060 1.200 '.0 is is 13 I 3 Si 3 191 la 2Si CNIUUI UMICIPAI Mll"mi VOXAlIOAt SCNGOL 71.9 1.060 26 SI 24 41 9 I to6 16 is Is 7 332 25903 lull VOCAIIofAI SCHO1 S80 940 190 74 Is 41 a I 532 is 7 7 3 333 1153N* 30.1 VOCATIONAL SCNOO 646 200 1.00)0 IsO M0 7 20 IF I 96 12 6 M6 a I

Sup- totill 3.735 1.599 6.620 Z.76S 40? 131 261 9 I 631 547 21s is 7 2

54 16N6*11 NACNIUI WJItDING SCNODL 1.11.1 414 1,600 196 140 76 A S 142 46 M Iso a 0SS 56N611X1 PROVINCIAL TS4C1 37 CONHSIATIONCS 1.1.00 1.500 300 120 250 230 12 0 lie M M 12% 3 0

Sibh- total 2.5465 'I4 5.100 300 316 390 1.017 8 292 1141 an II 2 6 to

56 FWNrJj IIICIPAt 70(61191A1 fOtiCATIOf CEtIll 571 690 95 12 21 4 3 so 6 34 14 a I l.A .57 ElIONE VO(A1103A1 S(6IU OfF 5fCj*0slj(5 656 1.060 300 56 3? 7 12 I IN6 N9 2 z 3 0

Sth- total 1,?2? 0 1.170 S00 151 1.1 2o a 2 ISO 16 16 12 I 2 co

47 ANNEX 3Page 6 of 6

Iis~

* o %* !

* oii *: We t e b ;~~~

o Z -

a - jj§°

a ~ ~~ * -

o - o -

ANNEX 4Page 1 of 5

48

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Technical Assist.ance Proaram

1. The technical assistance (TA) component of the proposed project assummarized in the attached Table 1 is designed to accomplish the following:

(a) improve the skills of key administrators of the 59 VTCs, the 12TTCs/TTDs, the 17 provincial/municipal education commissions(PEdCs/MEdCs), and the SEdC; and increase the efficiency and qualityof school management;

(b) upgrade the specialized teaching staffs of the VTCs and TTCs/TTDs interms of : (i) their training in pedagogy and basic teaching skills;(ii) their knowledge of the most advanced teaching methodologiesemp'oyed in VTE courses in the classrooms, laboratories andworkshops; and (iii) updating and broadening the subject matter ofthe specialization that they teach;

(c) develop a capability in VTE research fo.used in creating one nationaland two regional VTE research and development (R&D) centers to equipthe centers and staff them with training, particularly overseas inthe methodology of VTE research and the operation of such centers;and

(d) develop expertise in particular areas of the operation of VTE systemssuch as curriculum development, educational planning, facilitiesplanning, audio-visual/teaching materials production and distributionand the computer application in VTE management in the SEdC and the 3R&D centers that will be responsible for disseminating developmentsin these areas to the PEdCs/MEdCs, the TTCs/TTDs, and VTCs.

Vocational Training Centers (VTCs)

2. Overseas Proaram. The focus of this program would be on thedevelopment of expertise by the VTCs in operating an efficient, cost-effectiveand up-to-date system of training in the specializations offered in theirschools. It would consist of the following elements:

(a) Visiting Scholars. Eighty-six selected staff members (60 (70Z) fromthe five key provinces) from the teaching posts of key specializa-tions such as machinery, electronic, chemical engineering, computertechnology and food processing technology would participate in one-year visiting scholar programs to study in the universities abroad toupgrade their knowledge of the fields and to familiarize with thcvocational training methodology popularly used in the industrializedcountries. This element is designed to allow the study of subjectsto suit the individual needs of each faculty; and

ANNEX 4Pace 2 of 5

49

(b) International Expert Services. Sixteen staff-2onths of internationalspecialist services would provide one-month seminars on VTE pedagogy,computer-assisted education, and teaching methods of various subjectmatters. Faculty members from PPIs of all project provinces/municipalities would be organized in groups of 30 to attend theeminars. In addition, the foreign consultants would provideindividual and group consultation to the seminar participants on theissues they run into in teaching.

3. Domestic Proram. This component would enable specialized teachers,practice instructors and lab technicians in the specialties to be upgraded inthe following aspects of their qualifications:

(a) Pedanogical Inservice Courses. One thousand five hundred ninety-ninestaff members who have not previously had formal teacher training ortraining in the specializations they presently teach would undertakecourses of one year full-time study in the higher institutionsapproved by the SEdC. This program over the period of six yearswould concentrate more in the beginning years and is estimated toreach over 34Z of the full-time teachers and lab instructors of thePPIs. Another 840 teachers and instructors from PPIs and PPIattending VTE schools, who have limited or out-of-date teachertraining and specialized knowledge, would be offered intensivepedagogical and specialized training of two months in di'ration;

(b) Industrial Experience. Three hundred sixty specialized teachers andlab/workshop instructors who lack experience in industry wouldparticipate in the work experience programs averaging two months induration. Initiated by the project, the practice of requiring VTEteachers to have and to update their industrial/factory experienceswould be formalized by the SEdC guidelines (to be drafted); and

(c) Domestic Export Services. Two hundred n:nety-eight domesticuniversity professors, lecturers and industrial engineers will beinvited to lecture in three-month courses offered for VTC and non-PPIteachers, instructors and lab technicians.

4. The above program should be reviewed every two years in line withgrowth in the VTE sector to see that it enables a continuing program to beestablished that will enable teachers of VTE to be kept up-to-date on aregular basis with both developments in thoir specialties and VTE teachingtechnology.

VTE Teacher Training Institutions

5. Overseas Training Program (TTCs and TTDs). The overseas trainingprogram would provide 42 one-year scholarship for 42 TTC/TTD teachers in eightmajor specializations (namely, machinery, electronics, computers, chemicalengineering, food processing, garment making, automobile and printing) to goabroad and study the pedagogy and the specialization they are going to teach.The fellowship recipients are also expected to disseminate the new knowledgeand skills that they have learned abroad upon return. Eleven of the 42faculty members would be from the five TTCs/TTDs of the key provinces. These

ANNEX 4Page 3 of 5

50

programs would have the flexibility to study a combination of subjects thatwould best suit the particular needs of each area. The selected staff wouldbe required to come back to resume their teaching posts in the TTCs/TTDs.

6. International ExDert Services. Seventeen man-months of internationalservices would be provided to the faculty groups from the TTCs and TTDs,organized by major specializations.

7. Domestic Proaram. This component would consist of the following:

(a) Pedagogical and Specialization Inservice Training Courses. 401faculty members would undertake one year full time courses inpedagogy, teaching methodologies and specialization pertaining toVTE. These members would be selected because: (i) they have enteredVTE teaching directly from industry and have not had the opportunityfor pedagogical training; (_i) they were originally general subjectteachers and became technical-subject teachers only when theirschools were converted from general teacher training colleges toTTCs/TTDs; and (iii) some of them have been teaching for a longperiod and need to upgrade their knowledge to the state of art.Among these teachers, there would be a certain portion of labinstructors who would be responsible for the use of the new equipmentproduced under this project. Another 314 staff members from the TTCsand TTDs as well as the non-project higher institutions which wouldprovide teacher training for the project institutions, will attendtwo-month seminars or courses offered by domestic experts oruniversity departments of advanced technology;

(b) Industrial Experience. Sixty-six specialized teachers and lab/workshop instructors who have not had or have limited experience inindustry would be sent to the relevant industries and enterprises toacquire work experience for two months; and

(c) Domestic Expert Services. 180 man-months (60 experts in 3 months ofduration each) domestic expert service would be spent on training andconsultancy for TTC/TTD teachers and administrators.

Trainins for Hanagement of VTE System

8. This program would consist of:

Overseas Proaram

(a) Seven study tours would be organized for seven SEdC managers, 12PEdC/MEdC officials and 16 selected TTC and VTC presidents andprincipals. Of the 12 PEdC/MEdC officials, there would be one fromeach of the 5 key provinces and 2 would be from the other two majorprovinces which have relatively larger numbers of VTCs. Theparticipants of the study tours are expected to spend about 20 daysof each trip and learn the VTE administration, financing, andinstructional management;

Page 4 of 551

(b) Six TTC and VTC managers would be sent abroad for one-year studyprograms to learn specifically how to operate VTE institutions. SEdCwould salect these 6 managers on the basis of the ability of themanagers and that their institutions can surely have exemplary rolesamon; all project institutions;

(c) Ten staff-months of international expert services in VTE managementwould enable one month seminars on specific topics to be provided togroups of SEdC and PEdC/MEdC managers averaging 30 persons per group.When the consultants come to China, they would also be expected toprovide consultation to the SEdC and PEdC/MdEC administrators on VTEpolicies, management and rules and regulations.

9. Domestic Program

(a) Twenty-five SEdC and PEdC/MEdC administrators, and 55 TTC/TTDsmanagers would be sent to the higher institutions designated by SEdCand PEdCs/MEdCs to join the 3-month training programs for upgradingmanagement skills. Another 10 SEdC administrators, 80 PEdC/MEdCsmanagers and 330 institution managers would participate in one-monthseminars either in the colleges and universities or lectured byforeign experts to learn managerial skills such as using manpowerprojection to plan VTE expansion and to use a cost-effectivenessmethod to evaluate the training programs, and they would aiso beexpected to share their experiences in the seminars. Of the 100PEdC/MEdC managers receiving domestic training, 54 (54Z) would befrom the five key provinces, and of the 385 proposed projectinstitutions (PPI) managers receiving management training, 252 (652)would be selected from the PPIs in the five key provinces in order tohave major impact with concentrated effort for the key provinces.

(b) Thirty staff-months of domestic consultants and VTE experts serviceswould be provided at the earlier stage of the project to the SEdC andPEdCs/MEdCs. There would also be 24 staff-months of domestic expertservices offered to assist the project institution presidents andprincipals on school-based administration and modernizing theadministration means and methods.

ANQNEX4

52 Table 1Page 5 of 5

CHINA

VOCATIONAL-TECHNICAL EDUCATION PROJECT

Su.mary of Technical Assistance Proaram

2. knages nt

Domestic Training Ov.ro o Trainina DOmetic Exe .rt Forelsn ExpertAdministration 8-month I-month 1-year 20-day --month 1-month

tour

SEdC 6 1i 9 7 S 0PEdCn 29 80 0 12 6 4

PPIs 65 830 6 16 8 6

I2. TTCs and TTDo

Dometic Training Oversoox Training Domestic Expert Foreign Expert>1-year 2-month 1-year 3-month 1-month

491 380 42 69 17Of which:in school 314in factory 68

III. VTCo

Domstic Training Overseas Training Domestic Export Foreign Expert

>1-year 2-month 1-year 3-month 1-month

1,699 1,200 es 298 16Of which:in school 640In factory 85

files: ITCbes 'c

SOCAT 1011- TECEAICAL EMACAT IO PIOACI

Basic Projeet Institutio Pe ATa - TTCs/ TThO

1906 1/ 9

((SPAAB 1N134*. SIUD. HO. OF ma. Of HO. OF STUDENT/ TEACMIE/ STUDENTh POOACYIEO PeOJCT(D PQOJIC- H.09 10. Of W.O 60. Of £11531/ T(AC/ 1113661 a. a ao. of

PROJECI TTCs AND (TOo EStLEN STIm. FBS FUAL-f AD0I3IS OGINS ((EACnE ADMI113 MNIIN I KAM IUSASWIU ISo STI.PULL-I WINISS 0DIM TEM MITI.& SKIS L IMUS MCILIfTI

*WA0IAL P TEACIiES IRsTIIS*~ STAFf RAT10 O15 SlAF 0TH STAP (NIOLL. S11k(15 PUS lO= IEKES (MISSt SWAIN Mf10 OW6SIN 0ff owTAN MIm MsIS

TOTAL POM. RATIO RATIIO (455? 9011ff SIlO SAIO C316 STUISI

I 1990) NECIL II,

I 0(125 UNITED UNIVERSITY TIC 1.113 0 66 Ism 11I 34 7 I 4 1,330 760 49? 300 ISO so 4 4 4 1,53

2 mANma 1OWAk COLL(GAE, TTO 400 400 60 Ia? 126 12 2 1 I 700 440 491 299 1(6 12 a 2 9 40~

3aGZwomITC 4137 400 40 127 51 119 4 I 2 TUGr 610 491 261 inI 265 1 I S a I.53

4 TIABJIM Tic 1,21'? SW0 46 22 149 91 6 I 3 1.200 no 491 100 IS10 126 4 I 2 I M1

11SSa*AI TIC 1,62 0 60 319 92 232 6 1 5 2,100 I.,oo 491 129 114 Mi S I I a fl

6 NAMKG JIAINUI VIC 1,7?24 ISO 60k 149 6? 134 (2 1 2,630 no0 491 358 (0 152 1 2 4 is 1.111 M

F LUA TIC 1.133 TOO Al0 251 6 340 S I 2 3,000 2,300 491 462 lieO M 6 I 3 A we

SEOKI TIC 1.001 60 be 206 94 210 $ I 2 2,.2 so 491 3(6 U pie 6 I 3 a 1.31

9Uson TIC 441 10 be 60 3 41 7 I 3 1,100 so0 49T 2M 90 29 0 I 3 TW I.53

Is JILIN IIc 1,221 10o 64 20 129 131 6 I 3 2,900 1,300 491 307 III meS 9 I 6 I2 403

It1MJ1*66(EUGIKERIWUCOLLEGE.,TTO 329 33 66 A? 6 I 4 12 4 400 M0 491 I0 3 4 9 4 S M

12sng"AT AISA L If CENOTERUD 3iI S 65 41 20 20 7 I . M0 s00 491 so Go Go 0 I 4 a 81

21 2/

TOTAL 11.S71 2,213 616 2.032 994 1,4.07 6 1 3 23100O 9,913 1,06 3,405 1,53 1,033 3 91 6,81

Annual Growth nate: 11.0£L 21.91 61.91

I (xcope lTralnlng far the Poor Prowixesr calaory whmch ndheat.. 1990 ligise.21 SCK providgi, at the rlgetiMtiew withi the total figures u.( (reining Io. the poor provinmos for eti T2 TICs MO1N6 l1e. retaom wetI

be submitted to the I"6 after the Jew ameting on project ipmttinprapaatiet Otwiiiasd by (SOC.

I, tnaens-I Cheic

f i tron t I if

llt-lEtalm t (wU3gts taUCt

*rOjC ticnu Of VcatigulWid lgcfnica.l Ihject l I r Saiw VPr e

GAPPtltt 1o01L itECw 63s 3xisvits 8 t1c3n IEA ------ tOtAL 11 E W*C ED 3E13ST15 I3IERS cCmS W 301a8 I3E*tC la" ElI1 I SI I Z I

19a I_9 1/ 1,11 199e 1990 1911 19SW 1ow t1w. . . . ............. ..... -- - - - - - - - - - - - - -I ... .. ... .. ... .. ............... ................. ... .... .......... .. .............. .................

4E3IVINA ICIClA. GEtta SPCIAL. 6EtAL SPECIAL. 0tt6 SPECIAL. 0EtU3 SKCIAL. GEttEU SPECIAL. CRIMUIN, CIAL. CEtlE U IAL. SEtlK _ SCIAL.

lEIJltl 4,307 8,614 6,816 7,416 2,509) 1.196 4,767 9,414 6,203 0.616 (1,496) P" S,50? 11,014 5,35 11( in (2)LItlC t.792 17.,SO 135S9f 14. 73 (4.604) 2.97 9S,050 16.116 12,7S2 16.26 (3.314) 1,5 I .592 19.16 11._3 9.26 (1,19,) (451

JIlWm 9.U t9,656 10.923 13.016 (1,106) 6.620 1.49 26.91 9 6.f252 16.576 245 4,413 11.23 23.66 8,9_ n. 2.93 6

IIAJIN 2.724 S.449 6.59" 36 (3.615) (1.139) 299" 5,96 6.191 6.6 (,20) (926) 3,524 7,39 5.3?4 ?7.6, (1,) I£6am1 4. 59 9.s19 6.64 9.I" (7e662) 3t1 4,959 9,919 SS1.6" 9.6* S (3.14? 231 S,359 la,9 7.U37 .? .1 (1.6m1) (9)61i_tC4 10.192 0z.335 14.650 16.206 (4.08) 4.135 10,s92 21.13f 13744 16.394 (3S2 2.7M1 11.392 22.n 11.961 n.M ( S)*AEI 9,402 11,64 12413 14,225 (1,016) (2,4211 16,069 20,133 11,650 I7.0TI (I.Sa61 3.66? 11.462 22n,6 14.114 a. 762 I, 41

_AM &6436 12,672 F.761 926 (1.325 3.664 Y.103 14,205 m r,261 11,132 (17IT 2.03 3.436 16.32 6.321 116.3W 2.15 2

2ttEJ16 S32 710,F" 6.26 7, S2S (876) 3.239 5,915 11,331 ¶s'n 9,671 4 216 6" .2 13.96 5s."? 13S."s 1is I

sicu 165,372 20,744 13,S31 15,491 (3,1S9) S,S2 11,039 22.077 12,64 1655 S ,6SS) 3,S52 12,312 24,74 T" 'il 2it73.3 (.32 SNAXI 4,1480 3,261 5$S 6,639 0(1,11) 1,642 4,47`4 8,947 S489 7,353 (1,015) 1.694 5,166 16,21 4.115 *,131l 3 '

Wilm 4,64, 9,297 9 ,1S 6,416 (1SS) 2,861 S,248 10,497 4,873 ,Siu 376 1,60 6,446 12,21r 4,236 12,9u2 2.214 5

_13 1,26 23.41. 9,66? l,9r 002 ,441 10,876 21,1SZ 9,013 16,125 I.& S,42 12.2 23,416 7.66 36,41s 4.35 5

Kai3 7,4115 14,63 19,307 11,426 (2.622) 3,543 7,635 15.369 9,670 13,026 (.1195) 2.343 3.93 16,169 6.93 16,36 (3(9) (Sril Y.7133 14,36S 9,62 11,116 (2.679) 3,2S5 .So3 IS,f165 9.252 lW,99, (I,69) 2.169 3.333 16,3 5 6*l2 (6,3 131 (3)JINSug 5 754 11,56 6.666 7,46 (2) 4,066111 6,207 12,515 5,637 9,642 6S0 2,733 73Sr4 14.M 4,3M3 14,3M 2.461 2

JILIN 7,O1U 1S,626 9,136 10,S35 (1.323) 5,09 3,013 16,l10 iO *,571 12,767 (491) S3.3 6.3 1T,221 7.441 i,n1 *1R7 (S)

I? PROJECT 3

P63IES TO0AL 119,426 231,5 IS7,166 179,46 (7,2 52.366 127,161 254,321 147,262 214,762 (20.121) 39539 142,62 215,24 112,33 23.3114 14,33 (6 6)

M3IO6AL 1Oa1 11,S99 3s51,91 12,491 293,39 (76,49s) s50sw i9,32r 39e,.6S 236,73 359,594 (37,S546 390,05 24S,96 491,97 2M5,r63' 491,96 6436 I

I/ EXISTING ISEACltS: t1.es in the syste plus 1ft of dnum. nri,w teacher suppy tr I the existing tcwher trainingcoIllgn md other unemrssty *rw.ates; Me mmmus 31 of annual *ttrittesn

55

Page 1 of 6

C}iINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Plan for Establishing Research Centers

Roles and Functions of Research Centers

National Center

1. Identify research and development needs2. Plan research and development activities3. Supervise ongoing R&D activities4. Evaluate R&D results5. Disseminate R&D results6. Coordinate research centers and relevant ministries7. Distribute research funds and personnel8. Conduct policy researches and manpower planning9. Collect, analyze and disseminate information

Regional Centers

1. Conduct researches assigned by the National Research Centei2. Collect, analyze and synthesize research findings in the field3. Provide technical assistance to schools, governments and industries4. Organize meetings, seminars, workshops and conferences5. Promote R&D activities in schools

Areas of Research and DeveloRment

1. Policy researches2. Manpower demand and supply plans3. Job analysis of major occupations4. Vocational program development (courses and curricula)5. Instructional material development (textbook, workbook, teacher's guide)6. National testing and certification7. Vocational guidance and counseling8. Equipment study, teaching aids development, and operating mobile

maintenance unit9. Computer-based training and interactive video program development10. Management and leadership development11. Preservice and inservice teacher training (staff development)12. Information service13. VTE laws and regulations14. VTE financing

56

ANNEX 7Page 2 of 6

Division of Research and Development Activities

National Tianjin ShanghaiR&D area center center center

1. Policy research **

2. Manpower planning **

3. Job analysis o ** *

4. Program development o ** *

5. Material development o * **

6. Testing and certification o ** *

7. Vocational guidance o * **

8. Equipment study o ** *

9g Computer-based training o * **

10. Management development o * **

11. Staff development ** * *

12. Information service ** * *

Legend: ** Major responsibility* Supporting functiono Coordinating function

57

ANNE 7Page 3 of 6

Organization of the National Research Center for VTR

Planning and R&D DivisionSupervision Budget & Personnel DivisionBureau Supervision Division

Steeri"| Deputy Evaluation School Evaluation DivisionCo ait e Director Bureau Research Evaluation Division

for Planning Development Evaluation Division

Dissemination Editing Division8 Bureau t Printing Division

Distribution Division

Division of VTE SystemsPolicy Division of Laws & RegulationsResearch Division of VTE FinancingBureau Division of Cooperative Education

Division for Special Tasks

|Manpower |Planning DivisionlPlanning Supply Division

Bureau Forecasting Division (Demand)Director_

_'for ResearchStaff Performance-Based Teacher Ed.Div.

_Development Micro-Teaching DivisionBureau Video-tape Production Division

|Information| |Acquisition Division|l~~~~~~~~~~Cne Circulation Division|

IData Base Division

AdmzinistrationI|Bureaul

58

AEX 7Page 4 of 6

Organization of the Tianjin Regional Rasearch Center

Technologist DivisionI Job Analysis Technician DivisionBureau Craftsoan Division

Service Sector Division

|Program l STS DivisionDevelopment SVS DivisionBureau SWS Division

Polytechnic Division

Testing Standard DivisionTesting and Test Item Development DivisionCertification Testing DivisionBureau Registration and Certification

Division

Mobile Maintenance UnitlEquipment Facility Planning Division

_ Study Bureau Prototype Design DivisionPrototype Production Workshop

DcMentatio & Puliato Divsio

-[dmini-stration Office

59

AQNNE 7Page 5 of 6

Oraization of th haaa Regional esearch Cant=

Material Mechanical Engineering DivisionDevelopment Electrical and Electronic DivisionBureau Cheoical Engineering Division

Light Industry DivisionAccounting and Finance Division

Vocational Career Information Division- Guidance Psychological Testing Division

Bureau Counseling Division

Computer- Instructional Systems DivisionBased Graphics DivisionTraining Programming Division

Director -Bureau Input Division

Management Management Research Division= Development Management Training Division

Bureau

|Documentation & Publication Division|

60

ANNEX 7Page 6 of 6

MINIMUM FULL-TIME STAFF RJEQUI&RJME

National Tianjin Shanghaicenter c-nterIL center_ Total

Titlce 1989 1995 1989 1995 1989 1995 1989 1995

Director 1 1 1 1 1 1 3 3

Deputy Director 2 2 - - - - 2 2

Senior Researcher 8 30 4 22 4 19 16 71

Researcher 23 23 18 18 16 16 57 57

Research Assistant 31 24 23 18 19 14 73 56

Administrative staff 15 20 12 15 10 12 37 47

Total 80 100 58 74 50 62 18 236

Notes: (1) Part-time researchers are excluded.(2) Support staff are excluded.

MINIMUM OUALIFICATIONS OF RESEARCH STAFF

Research/Teaching industrial

Education experience experience StatusTitle level ------- (years) ------- (equivalent to)

Director PhD 3 3College president

Deputy Director MS 6 4

Senior researcher PhD 1 1 ) Full profbaoi:MS 4 2

Researcher MS 1 1 ) Associate professorBS 3 2

Research assistant BS 1 1 Lecturer

01ANNE! 8Page 1 of 2

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Proiect Concentration on Five Key Provinces

1. Five provinces/municipalities have been singled out for specialattention in the proposed project. They include the provinces of Liaoning andJiangsu and the municipalities of Beijing, Shanghai, Tianjin. They arehereafter referred to as key provinces. The key provinces merit such specialattention because their relatively more advanced education systems (bothquantitatively and qualitatively) and the predominant role of industry inthese provinces combine to make them an attractive possibility for achieving adramatic impact with a concentration of project funds. A comparison of theeducational attainment of their popul&tions with the national average belowmakes clear that the key provinces have greater percentages of theirpopulations with higher educational achievements and, most importantly, havegreater proportions in the lower and upper secondary school levels ir. whichthe project is targeted.

Table 1: EDUCATIONAL LEVELS OF POPULATION. 1986(in 2)

University University Secondary Lower Primary TotalGraduate Under- Graduate Secondary School

Graduate Graduate Graduate

National 0.45 0.16 6.63 17.75 35.38 60.37

Beijing 3.61 1.25 17.63 29.02 26.24 77.75

Tianjin 1.54 0.68 13.57 28.52 30.42 74.73

Shanghai 2.44 1.06 20.41 28.03 25.10 77.04

Jiangsu 0.47 0.17 6.90 20.06 32.63 60.23

Liaoning 0.74 0.29 9.38 27.63 35.62 73.66

Key Provinces

AveraRe 2 1.76 0.69 13.58 26.65 30.00 72.68

Source - China's Statistical Yearbook, 1987

Page 2 of 2

2. In each key province, the industrial sector dominates all othereconomic activities, ranging from 522 to 731 of the gross national income ofthe key provinces and as illustrated in the table 2 below.

TABLE 2: NATIONAL INCOME AND INDUSTRY GENERATED INCOME, 1985 (RMB100M)

Ke- Provinces Gross Income Industry X of Industry

Beijing 194.50 122.10 62.8Tianjin 150.91 97.76 64.8Shanghai 409.73 299.53 73.1Jiangsu 578.46 299.17 51.7Liaoning 425.72 280.46 65.9

Total 1,759.32 1,099.02 62.5

Source - China's Statistical Yearbook, 1987

3. The industrial sector in the key provinces also is large relative toChina's total industrial production, as shown in Table 3 below. The combinedindustrial output of the key provinces represent an impressive 33.8? ofChina's GNP.

TABLE 3: GROSS INDUSTRIAL OUTPUT VALUE, 1986(RMB 100 H)

Valute of as Z ofInd. output all China

All China 11,194.23 100.0?Beijing 371.76 3.3ZTianjin 351.13 3.12Shanghai 952.21 8.5?Jiangsu 1,235.22 11.0?Liaonins 872.47 7.8?

Total 3,782.79 33.8?

Source - China's Statistical Yearbook, 1987

- 63 -

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

PROJECT COSTS BY COMPONENT AND CATEGORY OF EXPENDITURE

(Y million)

VTCs TTCs E Mgt TotalTTDs

Civil Works 37.7 15.2 0.0 52.9

Furniture 7.6 1.2 0.0 8.8

Equipment 118.6 50.5 0.0 169.1

Books & Materials 1.4 1.7 0.0 3.1

Overseas Training 4.5 2.1 0.6 7.2

Local Training 9.2 2.4 0.4 12.0

Foreign Specialists 0.6 0.7 0.4 1.7

Local Specialists 0.5 0.1 0.0 0.6

Total Base Cost 180.1 73.9 1.4 255.4

Physical Contingency 17.2 7.1 0.1 24.4

Price Contingency 23.6 9.4 0.2 33.2

Total Proiect Cost 220.9 90.4 1.7 313.0

Foreign ExchangeComponent 84.6 38.1 1.1 123.8

- o4 -

ANNEX 10CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Government Administrative Structure for Proiect Implementation

- |TWO VICz-CHAIRMEN orSEC F

VOCATIONAL/TECHNICAL FOREIGN INVESTMENT ANDEDUCATION DEPARTMENT LOAN OFFICE (FILO)

Project Coordination DivisionProcurement DivisionTechnical Assistance DivisionFinance DivisionAdminictrative Su-,port Division

PROVINCIAL PROJECT IMPLEMEN ATION OFFICE

Project Director - Deputy Director ofProvincial Education Commission

Deputy Project Director - Chief ofPlanning and Finance Division ofProvincial Education Commission

Chief of VTE Division of ProvincialEducation Commission

Equipment SectionConstruction SectionFinance Section

PROJECT SCHOOL IMPLEMENTATION OFFICE

Project Director - President/Principal or VicePresident/Vice Principal ofProject School

Deputy Project Director - Dean of StudiesEquipment Section - Chief of Equipment SectionConstruction Section - Chief of Construction SectionFinance Section - Chief of Planning and Finance

SectionAccountant Clerks

PROJECT SCHOOL PROJECT SCHOOL PROJECT SCHOOL PROJECT SCHOOLDEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENTChairman Chairman Chairman Chairman

ARM 11

VOCATIOA AND TECHNICAL EDUCATION PROJECT

Pro iect 1.,21e.ntation Schedule

FY 1989 1990 1991 1992 1993 1994CY 89 90 91 92 93 94

Loan ProcessingNegotiations XBoard presentation XCredit signing XEffectiveness XProject closing X

Civil WorksBidding & contract awards XConstruction not yet started IUUUDUUDOLUXULL>XConstruction warranty IX5UUXIUU00U02OULXDUXUUUUU

FurnitureProcurement XXXXDelivery XXXXXXXXiXXXXXX

EguiRmentPreparation of equipment lists XXXXPreparation of bidding documents XXXXXXXXXXDelivery xIUXUU ULUUUUDUUUUU UEXXXWarranty

Technical AssistanceIdentification and processing ofcandidates XXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Study tours XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXFellowships xxJxOOODOOOOOL:CuLrxYJ xKJxxxxxxForeign specialists IEIUDUUUUUDUUUUUUUUDUODUUEIUUUUUUU

Monitoring and EvaluationAnnual progress report X X X XMid-term reviews XProject completion report XAudit report X

2=.

VOCATIONAL AND TECHNIA DUAION PROJECT

KE I m taion Dates

Activity Start Completion

Civil Works

Buildings now under construction - Dec 1989Buildings to be constructed Jul 1989 Dec 1991

Preparation of equipment lists Sep 1988 Mar 1989Government and Associationagreement on equipment lists - May 1989

Preparation of biddingdocuments Sep 1989 Mar 1991

Tendering Jan 1990 Jun 1991Contract signing Mar 1990 Aug 1991Delivery April/May 1990 Mar 1992

Technical Assistance

Local training of project schoolstaff Sep 1990

Foreign specialists visit projectschools Sep 1990

Fellowship program Sep 1990Study tours Oct 1990

67 AM=X 13Page 1 of 3

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Estimated Schedule of Proiect's First-Year Activities

Month/Year Activity

Eouivment. Books andTeaching Materials

Jun/Jul 1989 Complete the disaggregation of equipment lists intoappropriate groupings for procurement purposes. Thiswill determine the size and numbers of groups to beprocure', both locally and abroad.

Jul 1989 Initiation of procurement of books and teaching materi-als by either competitive price quotations from localand foreign suppliers or, where appropriate, by directpurchase from publishers.

Sep 1989 Begin preparation of equipment specifications and bid-ding documents for LCB procurement of instructionalequipment. The time required for completion of eachgroup of equipment will depend on the size and complex-ity of each group, but will range from two to fourmonths.

Dec 1989/Jan 1990 Advertise locally for LCB procurement of first groups ofequipment.

Jan 1990 Begin preparation of equipment specifications and biddocuments for ICB procurement.

Feb 1990 Evaluate LCB bids.

Mar 1990 Award LCB contracts.

Apr/May 1990 Receive first groups of equipment procured through LCB.

Publish bid documents for equipment to be procuredthrough ICB and advertise internationally.

68 ANKII 13Page 2 of 3

Month/Year Activity

TA Program

Jun 1989 Continuation of SEdC's efforts to contract an agency tohelp execute the TA program. This will involve solici-tation of proposals from some or all of the followingtnonprofit organizations, and universities experienced inproviding TA.

Continuation of selection process to identify candidatesfrom the project school administrators and teachingstaff for the 2 months and 12 months training programsat local normal universities.

Continuation of negotiations with local universitiesinvolved in the above program to provide the desiredtraining to the selected trainees.

Work is started on the creation of an executive body tomanage the pedagogy and management training programs.This group, chaired by SEdC, would includerepresentation from selected PEdCs and MEdCs. It wouldbe responsible for: (a) selecting the sites at whichthe one week seminars would be conducted; (b) atimetable of training sessions that would be agreeableto PEdC and MEdC staff and to the project schools'administrative staff and the expert teachers;(c) procedures to ensure adequate logistical support tothe trainees (transportation, housing, subsistence); and(d) selection procedures to ensure early identificationof all trainees.

Jul 1989 Agreement between PRC and FRG under which FRG willprovide equipment, overseas training, and foreignspecialists is declared effective.

Sep 1989 First group of German specialists arrive in China toconduct short training sessions and first group ofChinese VTE specialists depart for Germany for trainingin VTE and research methodology.

69 ANNEX 13Page 3 of 3

Month/Year Activity

May 1990 All above arrangements for the implementation of thelocal pedagogy and management training programs havebeen completed and all candidates for the first year ofthe program have been identified, vith the approval oftheir principals, department heads, or supervisors.

Aug 1989 All candidates for the 1990/91 local university trainingprogram have been identified, and accepted by localuniversities.

Jun 1990 Contract with TA consulting agency is signed by theSEdC.

Civil Works and Furniture

Jul 1989 Balance of project construction is started

Continuation of construction now underway

Continuation of furniture procurement by means of localshopping for buildings under construction

Dec 1989 Completion of buildings now under construction

*lI.inguuItmr

CNINA

VOUTIONAL-TECmICAL EUCATIO PitECT

Projet Omntitative Nonitoring indicatorg 11

ACTUAL T*EAC / II. OF ACTIMI f ACIUPCJIW ACTUMI ME CES ACUTE NO. OF ACTUAL STUEMI/ STUhfTI OTStR 1ILS M. OW FACILITY FACILITY

Proj et lItltutlen Mg" ELL. IUERVICE IERV. FULL-TIME FULL-T TEACNER TEACER STAFF US161U WC J TILIL. UIILIE.tEIEL. Of TNE STUDENS STMOTS TEACNERS TEACHERS RATIO RATIO RATIO COTO ISIU CM iTE ! iTE

19t TEA (NMLI STWENTlS 1994 TEA 19 YEDR 19t FACILITY FACILITYc I 1991 C ) ( ) ( 1999t , ) 19_

EIJIIISIll.t 1?INT It_RWT 1.211 150 lOl 10 1 Tcbe WIKIJIW 10.2 LIMt I1l 7pTW Kok 1l6 11.5 71 10 I lwidd on*IJIU ISlIE MNU - TIL WIE111. 11.10 1.050 6 12 1 "aKIJIII WISE. OF MainEIMYRY 1,26M 180 66 9 2 onOEIJtlTS 1,l3otllW SE. 1.006 560 71 13 2

EIJIIIII ~hXIIWIICS P1101W W 1.000 21 10 71 10 2ZEIJIII M IEW ICIITI1 WSC . OF CIVIL ELNIC?TIU. APLIACES 1 .06 3,520 39 13 2

EIJIIV 10.126 ICATIOUL TECCOICAL r t OF LECTTOICS 1,000 6.240 65 14 1

*b-tote! 8896 13S98s 552 11 1.5 1 O

LIAWIMU

$NIM= UICIPAL WNSE. OF UShfINY AM mEECTSlnc I1UWST 1,40 780 97 9 1LIMInS PIIWIAL WISEC OF LINT IMIT 1.00 301. 128 9 1LIAUUS PRoKIAL WSE. OF ELECtEIC Im_h 1,20 600 74 9 I1tHE 66.1 SlUM IISRKE4 WISE. USER 855616 LMU* URINE 1,320 120 7S 12 I 1o$KWA Y ICIPAL vUrtCioCUL nUICil cow1 IO 160 69 1S 2 95SIAIE IUCIPAL 1 I IIA I= WCTIUKM WUNM 1 s,m 5140 S8 14 2 gmSALIIT ti lOCTIOIL umAiU CT 1,6 200 80 11 2 901

ALIM l IIUTItL AsM CEUICIAL WUsCm OF EtCTIOICS 1,450 520 00 18 4 90TMIUII AM IOE0luh1P CEIITE OF ALIAM MWATIOIAL rIn 300 420 O 45 7 3 gmLIAOMING PWIUCIAL PETRCENICAL ENGIUEERIU; sCIloL 1,260 280 96 8 1 91

Su-total 11430 4.524 804 11 1 9tt

I/ This Is M @.e of the <untitative hnd cetorc. At project spetrvlhsin. ech project institution would provide the sam inforation an tle. ImndiCtor..JIAl ERR

------- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ERRElt\t~~~S

S_O

W-

71

ft 11nem:monltor2Arnex 14Pag 2 of 3

CNINA

VOCATIOSAL AD TICNMICAL EDUCATION POJECT

Project Dualitative Nitoring Inalcators

Apct Nethod of Tim Length Report Issues to MonitorNonitoring of Report Due Date

Effectiveness of VTC's periodic Arnually Jure of The report should exmine wnd report the followingSchool Mnagemnt report to the Year aspects:

PEDC/SEDC; 1. whether the open-schooL policy (1/) has affectedSEDC periodic the overaLl acadmic performnce of the perticips-report to the ting students frm other schools (show evidence ofWorLd Bank isprovemnt);supervision 2. whether the VTC school mnagement is effective inmissions - adequtely scheduling the exercise by utilizing

aLL originaLly-veicant hours of the labs andpractice grounds;maximizing the teacher/instructor's contacthours by giving them full sssigneent incLudinginstructing students from other schools;fully engaging the school facilities andequipent in use;eliminating the non-teaching staff byredeploymnt and other methods;condckting a reasonable cost-sharing schmewith the participating schools;

- adequately keeping a mintennce budet, andhow well is It helping assist the project-provided facilities and equipment?

- student counseling end job allocation.

Improvinnt of VTC's periodic Anually June of Along with the quantitative informtion providedthe Quality of report to the Year in p.1 of the Annex, the Report should describeVTC nd non-project PEDC/SEDC; - the process of VTC teacher/instructor trainingSchool Teachers SEDC periodic and re-training arragemnt;and Instructors report to the - how well are the upgraded teachers allocated

World Bank and whether the training has made differencesupervision In their teaching performnce;missions - teacher performnce ude,r the project-specified

higher teaching loads;- the process of raising teaching load In the

non-project schools.

72

Anvwx UPage 3 of 3

CHINA

VOCATIONAL AMD TECNHICAL EDUCATION PROJECT

Project Qulitative Monitoring

Aspect Method of Time Length Report Issues to Monitoronitoring of Report Due Date

Improvement of PEDC's periodic Annuilly June of The report should exmine wnd describeVTE-Industry report to the year - when the liason committee was estabtishedLiuson SEDC; (first year after the project is effective);

SEDC's periodic - how frequentLy the meetings between the PEDCreport to the and industrial representatives are heLd;World Bank - how the liason comittee's discussions aresupervision affecting VTE schooL curriculum improvement?missions - how the lioson committee has assisted the

students practice and allocation in industry.

leprovement of PEDCs report Annually June of PEDC to report their staff strangthening progressHigh LeveL to SEDC; the Year throughVTE Management SEDC periodic - Staff training;

report to the - visiting tours;WorLd Bank - VTE management conferances and seminars andsupervision experience exchange meetings, etc.missionr

ArNNi.A L73

CHINA

VOCATIONAL AND TECHNICAL EDUCATION PROJECT

Selected Documents and Data Available in Project Files

A. Selected Documents and Data Available in Proiect Files

1. Sector Report, Technical/Vocational Education in China'sDevelopment, August 7, 1987

2. Education Sector Strategy paper, ASW3 peper, June 1, 1988.3. Vocational Training in the People's Republic of China, Structures,

Problems and Recommendations, study by German experts

B. Selected Reports and Studies Related to the Project

4. China's Vocational-Technical Education in year 20000, SEdC document5. Training and Upgrading of Skilled Workers in Shanghai, study

conducted for SEdC and Shanghai Municipal Government by Germanexperts

C. Working Papers

6. Public Education Expenditure in China, 1983-1985, Keun Huh(consultant), August 1987

7. Budgetary Expenditure of VTE Institutions and Cost Savings by the~Project, Keun Huh (consultant), December 15, 1988

8. Plan for Establishing Research Centers in Vocational and TechnicalEducation, Jeoung-Keun Lee (consultant', November 10, 1988

9. Computerization Plan for Vocational and Technical Education inChina, Jeoung-Keun Lee (consultant), January 23, 1989

10. Project Brief, August 1, 198811. Appraisal Mission Aide-Memoire12. Detailed Project Institutions' Cost Tables provided by SEdC13. Sino-German Minutes of Discussions signed by Mr. Wang Ming-Da, Vice-

Chairman of SEdC and Mr. Lengl, State Secretary of the Ministry ofEconomic Cooperation, FRG