World Bank Document€¦ · Production of Teaching Materials and Professional Service. 14,800,000 352 (2) Equipment 14,500,000 lO2 o' 262 L (3) Salaries of Project Unit and Technical

Document of

The World Bank

FOR OFFICIAL USE ONLY

Repot No. 7750

PROJECT CONPJ8ETION REPORT

BRAZIL

VOCATIONAL TRAINING PROJECT(LOAN 1452-BR)

MAY 12, 1989

Latin America and the Caribbean Regional Office

Thi doument has a resticed distibution and may be used by redpletb oly In the perfnnae oftheir offic dudes. Its contents way not otherse be didosed whhout Wouid Bank ardwrzxdn.

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FOR OFFNIL UI OILYTHE WORtLD SANK

Washnton. O.C. 20433USA.

MEet d Of4etla.eawa

may 12, 1989

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECTs Project Completion Reports Brazil - Vocational TrainingPro1ect (Loan 1452-BR)

Attached, for information, is a copy of a report entitledProject Completion Reportt Brazil - Vocational Training Project

(Loan 1452-BR)" prepared by the Latin America and the Caribbean AegionalOffice. Full evaluation of this projec. by the Operations EvaluationDepartment has not been made.

Attachment

This document has a std distuibstlon and may be usod by rcipnts only in the performanceof their offcial duties. Its contents may s oftrwie be disclosedwithout Wad Sank autbodiut

-ROET COMPLETION REPORT MRi OFMCIAL USE ONLY,,

BRAZIL

VOCATIONAL TRAINING PROJECT (LOAN 1452-BR)

TABLE OF CONTENTS

'ta&e No.

Preface *..OOO.*...... . ... ... ; ****O***---****** ..e. .- OBasic Data ............. . ' ..*Evaluation Suzmary ................. viii

OVERVIEW *..*.....e........*eC*.*......e........I.

I. PROJECT OBJECTIVES AND GENERATION ........................ 1

IS. PROJECT IMPLEMENTATION ................ . 5Project Management .................. .. ee.....&., 5Implementation Schedule ................................... 6Location of Centers ... .......................... ....... 6Equipmant ............ ..... * ... ..... O ......... ...... *s.t 6Mobile Units................................... 6Technical Assistance and Personnel Training... .......... 7Compliance with Covenants. ...... ............. ............ 7Borrower Performance .........P .. O...... 0***..C c. .*. 7Bank Performance .....o.o.o.... ... 8

TII. PROJECT COST, FINANCING AND DISBURSEMENTS ................ 8

IV. PROJEST BENEFITS - CONCLUSIONS AND LESSONS LEARNED ....... 11

FPlODEKO - MANPOWER DEVELOPMENT PROGRA1 FINAL PROJECT REPORT

I. INTRODUCTION .............. * 15

A. Vocational Training i , .

B. Employment Services ........ 8C. Occupational Safety and Medicine 19D. Secretariat of Manpower 19

II. IDENTIFICATION OF THE PROJECT, PREPARATION AND APPRAISAL ... 21

A. General Objectives ...... 21B. Construction and Equipment .............................. 22C. Equipping or Reequipping and Furnishing . . . .. 22D. New Subprojects Included ...... 22

III* IMPLEMENTATION ......... -24

A* Amendments * ............................................. 26B. Physical and Operational Results ........................ 28C. Highlights of Project Execution ......................... 29D. Educational and Physical Aspects ... ... .................. 33

This document has a restricted distdibution and may be tnsed by rocipients only in the petformanceof their offlicial duties. Its contents may not otherwise be disclosed without World Bankc euthotE - on.

TABLE OF CONTENTS (cont' d)

Page No.

E. Training of Instructors, Specialists,and Administrative Staff ......... .......... * ....... 35

F. Research and Studies on ManpowerIssues and Methodology .................... .. 36

G. Technical Assistance 37

IV* OT ............................... 40

A* Unit Area and Cost . 42B. Operating Costs 44

V. INSTITUTIONAL PERFORMANCE ............. ...... 44

A* SENAI ........................... 44............... ****** 44BC SENAC .o....,............ooo ..*.**................ 45C. S ENA R ...**.. ....*................ .............. 45D. F6flDACENTRO 46E. Secretariat of Manpower 47F. SINE (National Empioyment System) ............. 47

VI. CONCLUSIONS AND RECOMMENDATIONS ........................... 47

Ao Conclusions 47B. Experience Acquired .................... ................ 51C. Recomendations .5.. ...... 52

I. Implementation and Disbursement SchedulesPlanned and Actual ......... ............... ........... 55

II. SMO - Research and Studies on Manpower Issues andMethodology 56

III. SINE - Staff Training ........................ . .. 57IV. Technical Assitance - Specialists Services 58V. Technical Assitance - Fellowhaips o............*.. ,. 59VI. Procurement - No. and Type of Bidding Procedures ........ 60VII. Building Areas and Student PVacess

Planned and Actual. SENAI#SENAC 61VIII. Construction Costs and Cost per m2s

Planned and Actual. SENAIISENAC ...................... 63IX. Civil Works - Costs per m2 per Student Place -

SENAIISENACIFUNDACENTRO ............ 65X. Cost of Civil Works - SENAI/SENAC ....................... 68XI. Annual Enrollments - Trainees. SENAI/SENAC .............. 70XII. Implem_ntation Schedule by Component 72

CaINS ROF THE BORROWE

ATTACHMENT It Federal Civil Service 75ATTACHMENT II: Ministry of Labor (FUNDACENTRO) 77ATTACHMENT III: The National Service for Industrial

Apprenticeship (National Department) e*o.... 79

PROJECT COMPLETION REPORT

BRAZIL


PREFACE

This Is a completion report on the First Vocational Trainingfroject In Brazil, for which a Loan of US$32.0 million (Ln. 1452-BR) wasapproved in June 1977. The project was closed in June 1985, disbursementscontinued through January 6, 1986, reaching 97Z of the loan. The undis-bursead amount was cancelled as of February 12, 1986.

The report consists of a Project Completion Report dated December1985, (hereafter referred to as PCR) prepared by PRODEMO, the Project Unitlocated within the Brazilian Ninistry of Labor, and an Overview proposed bythe Bank's Education Division for the Latin America and Caribbean Region(LCPED). This overview suumarizes the Borrower's PCR, and adds comuenta onsome important aspects.

This PCR was read by, the Operations Evaluation Department (OED).The draft report was sent to the Borrower and its agencies for comments inJanuary 1989. Comments received were incorporated in the report, andEnglish translations of the three letters received are reproduced asAttachments I-III.

a ~~~~- ii -

PROJECt COMPLETION REPOR*T

BRAZIL

VOCiTIONAL TRAINING PROAECT(LOAN 1452-BR)

BASIC DATA

Borrower Federative Republic of BrasilExecuting Agency Ministry of Labor - General Secretariet

PRODEMO - Manpower Development ProgramFiscal Year of Borrower January 1 - December 31Name of Currency Cruseiro (Cr$)Exchange Rates a/Appraisal Year Average US$1.00 - Cr$ 13.651978-1982 Average US$1.00 - Cr$ 74.101983-1984 Average US$1.00 - Cr$ 1,212.50Completior, Year Average US$1.00 - Cr$ 6,200.40

A. The Loan

AppraisalEst4mate Actual

Total Project Cost (US$ million) 92.5 73.9Underrun (2) -- 20.O0Loan Amount (US$ million) 32.0 32.0Disbursed by December 31, 1982 32.0 9.6Disbursed by January 7, 19t.. 32.0 30.9Cancelled by February 12, 1986 -- 1.1Cofinancings UNDP/ILO (US$ million) 1.5 1.5Months Since Loan Signing 64.0 94.0Time Overruns(Signing to Closing Date - Z) O.O 47.6Z

B. Chronologv of Events

First Mention in Files January 1976Government's Application July 1976Negotiations May 1977Board Approval Juno 9, 1977Loan Signaturo Date September 7, 1977Effectiveness Date December 1977 April 5, 1978Completion Date June 30, 1982 December 31, 1984Closing Date December 31, 1982 June 30, 1985 bI

O/ Intebnatonal Flinned StatobtJac, yIM.E,f Diebueu.m.at contInued through Janu.r1 198O.

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C. Cualatiwv Oisburont

FY78 FY79 mFo Ffll FY62 FYE Y F FY66

Appraisal Estimtes (I 1) 2.2 14.16 26.0 J6.4 81.9 32.0 82.0 32.0 32.0Actual (USS 1) 0.0 1.J 4.0 6.0 9.6 14.2 18.2 28.0 J0.9Actual as S of Estilt .S 8.9J 18.211 26.83 80.9 44.5 60.6 69.43 98.6XDate of Flnal Disburseo nt January 0, 1906

e. Staff Input (Staff ek.)

FY 74-70 77 78 79 eo 61 62 63 64 a6 so 67 Total

Pro-appraisal 16.4 43.8 - - 62.7Appraisal - 86.4 - - -86.4

Noeotlation - 18.8 - - - - - - - - - - 18.8

Supervision - 0.2 12.9 12.2 6.9 10. 16.1 *.8 17.5 16.1 82.7 14.6 144.1Other - - - - - 0.1 - 6.1 - - - 0.2

Total 16.4 145.2 12.9 12.2 8.9 10.8 16.2 0.8 17.7 10.1 82.7 14.6 16.7

I. Mission oat,

fotP Moatjl.ar N. of Days Staff *Waks Mission Co_Ittton

Reconnaiaos Bank Fob/76 12 4.7 2 (E,T.Ed(C))Identification Bank Ma1/76 a 2.0 2 (E,T.Ed)Pr"partion Sank Au"/76 1C 27.6 9 (T.Ed,E(2),A,C(S))Appraisl Sank Nov/76 20 21.6 5 (T.Ed(2),A,A.Ed,E(C-)Post-Appraisal Bank Apr/7 30 6.6 a (T.Ed,A,E)

Supervision I Paink Jul/77 I 6. 8 (E,A,A.Ed)Supervision It Bank Feb/76 4 6.8 1 (A)Supervoiion III Sank Oat/76 6 1.0 1 (A)Supervision IV Sank Nov/78 9 1.9 1 (T.Ed)Supervision V Sank Jan/66 a 1.6 1 (A)Superviston VI ak OCt/" a 2.1 2 (A,T.Ed)Supervision VII anok Jul/f1 6 8.0 a (Ed,A,E)Supervision VIII Sank Nov/l i0 4.6 8 (Ed,C,Proe)Suervislon IX Sank Jun/82 J 1.8 8 (Ed,T.Ed,V.Ed)Superviston X Bank Nov/82 8 0.6 1 (E)Suprvislor! XI Sank Feb/ft t 1.0 1 (A)Supervision XII BSank Fb/64 31 2.1 1 (A)Supervision XIII Sang Apr/84 9 8,4 2 (T.Ed,A)Supervision XXV Sank Jul/64 4 I,6 I (V.Ed)Supervinion XV Rank Nov/64 6 2.1 2 (Ed,A)

Total 47

Copletion Sank OCt/6" 30 8.0 V.Ed,O.A.,V.E4J(),A(U)

Ed a Educator; A a Architect; E a Econmist; frogs Progra Staff;T.Ed a TechnicaI Educator; V.Ed a Vocational Educator; A.Ed a Agricultural Educator;O.A. a Operations Assistant; (C) a Consultant; (U) a WUESCO

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E. Loan ARreement anA Its Amendments

AGREEMENT OF SEPTEMBE 7. 1977

Percent ofAmount Allocated Expenditure

CateRorV USS Eouivalent To Be Ftnanced

(1) Site Development, Construction,Furniture, Staff Training, Studies,Production of Teaching Materialsand Professional Services 13,300,005 35Z

(2) Equipment 11,900,000 1OOS F262 L

(3) Salarics of Project Unit andTechnical Assistance 2,100,000 1002

(4) Unallocated 4.700.000

Total 32,000,000

AMENMENT OF J.ANUARY 21. 1981


Catetorv USS Eauivalent To Be Financed

(1) Site Development, Construction,Furnltre, Staff Training., Studies,Production of Teaching Materialsand Professional Service. 14,800,000 352

(2) Equipment 14,500,000 lO2 o'262 L

(3) Salaries of Project Unit andTechnical Assist.nce 2,500,000 1002

(4) Unallocated 200.000

Total 32,000,000

Construction, Furniture and Equipment - Increase from 15 to 34 vocationaltraining centers (SENAI and SENAC); reduction from three to two botel-schools (SENAC).

Equipment - Increase from one to three SENAI industrial training centers$addition of 86 SENAt mobile units.

Tratuing - Increase from 600 to 1,430 trainees for SENAI and SENAC;addition of 1,100 trainees for SWNAR.

Instruction Materials - Addition of a project for SENAR.Technical Assistance - Increase specialists from 446 man/months to 589

men/months.

AMENDMENT OF MARCH 26. 1982

Construction, Furniture and Equipment - Reduction from 34 to 33 SENAI andSENAC vocational training centers; reduction from two to one hotel-school (SENAC) and addition of five FUNDACENTRO regional centers.

Equipment - Increase from three to five SENAI and SENAC centers, reductionfrom eight to three FUNDACENTRO regional centers.

Instruction Materials - Inclusion of FUNDACENTRO project.Closing Date Extension - From December 31, 1982 to June 30, 1985.

AMENDMENT OF DECEMBER 14. 1982

Special Account - Established at the Central Bank in the amount ofUS$1,000,000.

Disbursement Procedures - Modified to calculate reimbursement at theexchange rate in effect on the date payment was made; and reimbursementrequests in e t2seiros to be routed to the Central Bank.

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AMENDI4ENT OF OCTOBER 4. 1983


Category US$ Eauivalent To Be Financed

(1) Site Development, Construction,Furniture, Staff Training, Studies,Production of Teaching Materialsand Professional Services 14,346,700 572

(2) Equipment 13,535,800 1002 F73Z L

(3) Salaries of Project Unit andTechnical Assistance 3,117,500 s002

(4) Initial Deposit SA 1.000.000

Total 32,000,000

Construction, Furniture and Equipment - Reduction from 33 to 32 SENAI andSENAC vocational training centers, elimination of remaining SENAChotel- school and elimination of five FUNDACENTRO regional centers.

Equipment - Increase from five to six SENAI aad SENAC vocational trainingcenters, increase from three to eight FUNDACENTRO regional centers,Increase SENAI mobile units from 86 to 101 and SENAR's from 180 to 182.

Staff Training - Inorease SENAI 4nd SOM&C trainees, from 1,430 to 1,635,decrease SENAR trainees from 1,100 to 693.

Technical Assistance - Reduce snpecialists froa 589 man/months to566 manjmonths, increase fellowships abroad from 327 to 340 man/months.

Disbursement Percentage - Increase reimbursement of Category 1 from 352 to572, local portior. of Category 2 from 262 to 732. Overall Bankfinancing of tha project Increased from 352 to 412, with a reduction intotal costs.

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AMENDMENT OF APRIL 4. 1985

Percent ofAm'unt Allocated Expenditure

Cate&orM USA Equivalent To Be Financed

(1) Site Development, Construction,Furniture, Staff Training, Studies,Production of Teaching Materialsand Professional Services 13,346,700 57S

(2) Equipment 13,035,800 100S F732 L

(3) Salaries of Project Unit andTechnical Assistance 3,117,500 100S

(4) Initial Deposit SA 2.500.000

Total 32,000,000

- Coiling on 'package' bidding increased from US$50,000 to US$100,000.- Maximum of Special Account Increased from US$1,000,000 to US$2,500,000.- Consolidation of all previous changes into a revised Loan Agreement dated

April 4, 1985.

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PROJECT C10iLETION REPORT

BRAZIL.


EVALUATION SUMMARY

Introduction

This project, the third Bank-financed loan for the development ofeducation and training in Brasil, was the first to directly address nationalmanpower needs across a broad spectrum. It was designed to complement thefirst two operations in the formal system with asnistance to nonformalvocational training at the middle, skilled and semi-skilled levwls. It wasprepared with Bank and ILO assistance, appraised in November 1976, andapproved the eollowing June. Total costs were estimated at US$ 92.5 millionequivalent, of which 36Z were to be covered through a Bank loan of US$ 32.0million equivalent and UNDPIILO financing of technical assistance equivalentto USS 1.5 million. The Federal Government and the training agencies were tofinance the balance of project costs. The project took nearly 8 years tocomplete, two and a half years longer than expected, and was closed in June1985. Largely because of successive devaluations of the local currency,actual project costs at completion were US$ 73.9 million equivalentt anunderrun of 20S. Disbursements continued through January 1986, at vhich tim-a balance of USS 1.09 million equivalent was cancelled.

Obiectives and Prolect Content

Following the massive reorganisation of the national vcatilonaltraining system in the middle 1970., the project was intended to Assist theMinistry of Labor in coordinating the major public and private vocationaltraining agencies and enhancing information on training .and employmentopportunities and job placement. The specific objectives, were tos alleviatemanpower shortages by Increasing vo4"tional training opportunities In selectedsub-sectors and geographic areas; expand the national employment informationand placement system; and reduce the Incidence of industrial accidents byimproving occupacional health and safety programs. The agencies supportedunder the project Included the National Service for Industrial Apprenticeship(SENAI), the National Service for Comercial Apprenticeship (SEMAC), theNational Service for Rural Training (SENAR), and the National Foundation forOccupational Safety, Hygiene and Medicine (FUNDACENTRO). The content of theapproved project included: construction, furnishing and equipping of 19training centers; equipping of an additional 9 centers; provision of 180mobile training units; training of instructors and administrators; executionof studies on the labor market; and specialist assistance for the variousparticipating agencies. A project implementation unit was establisheddirectly under the Secretary General of the Mnilstry of Labor, and some of itsadministrative costs were to be covered under the project as well.

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Implementation Experience

Of the five agencies involved, implementation proceeded according tcschedule for only the SENAI sub-project. FUNDACENTRO a"d SENAC experiencedserlous revenue shortfalls and consequent delays to implementation of theirsub-projects, while SENAR's weak organizational infrastructure caused a three-year delay in the start-up of that component. The most effective agencieswere SENAI and SENAC, those with considerable financial and administrativeindependence.

The financial crisis and devaluation of the local currency, whichparadoxically allowed for an increase in project scope, also brought laggingdisbursements and caused the Bank to agree to increase its share of projectcosts to 42Z and to open a Special Account to expedite disbursements. Thesetwo measures essentially allowed the project to proceed as planned. TheSpecial Account procedure has been incorporated into the subsequent project aswell (La. 2810, approved May 12, 1987).

While by no means problem-free, implementation can be judged asquite successful given the complexity of the project, the number of agenciesinvolved, the newness of the implementing unit and its inexperience with Bank-financed projects, and the declining economic conditions under vhich theproject was executed. The project unit was staffed with compstentprofessionals throughout the execution phase. The stability of staffingwithin the project unit was crucial to the successful implementation of theproject. The close and cooperative relationship with Bank staff encouragedthe flexibility and foresight needed to effect the changes in the project withminimal sacrifice to project objectives. Furthermore, the high degree ofindependence of the project unit allowed it to interact directly with theparticipating agencies at the regional level and move implementation along ina fairly expeditious manner.

Results

There were successive and fairly significant changes to projectscope. These revisions, which were crafted with full concurrence of theBank, occurred over the course of five amendments and are detailed inparagraphs 1.6 of the Overview and 3.4 - 3.9 of the main text. Aside from thedeletion of the SENAC hotel training centers, most changes involved Increasesin the numbers of centers built and equipped, mobile units provided, and stafftrained.

Thus, despite delays and changes, the project achieved and evensurpassed many of its objectives, especially with regard to expanding andimproving the capacities of the individual training agencies. The projectwas particularly successful in meeting its physical targets, the buildingareas constructed and studeat pz.aces provided often exceeding appraisalestimates by a wide margin. Together, SENAI and SENAC trained three times thenumber of instructors projected. Enrollment targets were also fully met. ForSENAI, significant improvements in vocational training standards were achievedby introducing new teaching techniques, providing modern equipment andupgrading instructors. The addition of the mobile units for SENAI proved

-x

especially serendipitous, and the agency's experience in developing, producingand marketing these units is worthy of replication. Expansion of trainingopportunities, particularly in the agricultural (SENAR) and commercial andservices (SENAC) sectors, took place in the poorer regions of the North,Northeast and Centerwest, as anticipated. FUNDACENTRO's staff was upgraded,its headquarters were established with modern laboratories, and interactionwith similar institutions worldwide has been strengthened. The number ofindustry-related accidents has also been reduced.

The major shortfalls involved achievement of the project'sinstitutional deve'lopment objectives. The project had only marginal impact onstrengthening the planning and coordination capacities of the individualagencies and the Ministry of Labor. The objective of transforming SENAR intoa more autonomous agency, with a separate budget and personnel structure,consisten:ly eluded Bank supervision missions, despite repeated discussionswith the Government. Such shortcomings can be attributed partly to theproject management arrangements, which allowed for the creation of an enclaveimplementation unit existing outside the normal bureaucratic structure, andpartly to project design, which had neglected to define and incorporate theactions necessary to effect institutional improvements.

Sustainability

Prospects for the sustainability of project benefits are generallygood, particularly in light of the follow-on project, which addresses many ofthe weakness of its predecessor. Structurally, the reorganised vocationaltraining system appears to be functioning more efficiently, even though muehremains to be done to improve planning, coordination and management at thefederal level. The individual training agencies, and particularly SENAI andSENAC, currently meet perceived needs for vocational training, as witnessed bythe high demand for their courses. Moreover, both have a high degree ofinstitutional autonomy vis-a-vis the government, maintain close linkages tolabor markets and employers, and have various self-financing mechanisms, allof which bode well for their continued vitality and relevance.

Findings and Lessons

The project demonstrated that semi-autonomous, nonformal educationinstitutions are a viable solutiozi for meeting certain manpower training needsin Brazil. The importance of devising cost-effective and sustainable trainingschemes was highlighted by the experience with the costly, and ultimatelyabandoned, hotel training centers planned for SENAC, as well as the highlysuccessful, if unanticipated, mobile training centers for SENAI.

The project also demonstrated lessons regarding the organizationalaspects of such projects and the institutional autonomy of the agenciesinvolved. Where the issue is the relationship of the training agency to thegovernment, independence should be maximized. This was seen most clearly withSENAR, a nAscent agency which lacked the necessary organizationalinfrastructure and administrative and financial autonomy to undertake itsobligations under the project. In the future, projects should strive tosecure requisite legal status prior to implementation. They should also

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clearly define the implementation responsibilities of each agency, givingincreased responsibility to more established, autonomous agencies.l/

Where the issue is the relationship of the implementing agency tothe regular government structure, institutional autonomy may have drawbacks inthe longer term. In this case, while the autonomy of the project unitundoubtedly facilitated project execution and may have enhanced managementcapabilities at the regional level, it did so at the cost of strengtheningthese crucial functions at the federal level. The follow-on project hasaddressed both of these organizational issues by restructuring managementresponsibilities, giving more authority to both the Manpower Secretariat andthe individual agencies, and elaborating specific measures to enhanccoordination and managiment at all levels, including establishing a detailedinstitutional staffing and development plan for each agency.

1/ The Borrower notes that many of the suggestions appearing in the summaryhave been incorporated in the follow-on project. See Attachment I.

VOCATIONAL TRAINING PROJECT

LOAN 1452-BR

PROJECT COMPLETION REPORT

Overview

I. PROJECT OBJECTIVES AND GENERATION

1.1 Between 1970 and 1975, Brazil experienced high rates of economicgrowth, which were accompanied by rapid expansion of employment opportuni-ties (3.7 percev; annually), such that by the end of the period supply ofskilled manpowes could hardly meet demand. Employment increased at anannual rate of 5.5 percent in industry, ana 4.9 percent in commerce andservices. Agricultural employment was much less buoyant, growing at anannual rate of only 1.6 percent; and throughout the period there was sub-stantial migration of labor from rural to urban areas. While the absolutenumber of new entrants to the labor force was deemed adequate, their lowskills level placed increasingly serious constraints on economic growth.

1.2 In terms of human resources development, the following actionsassumed first priority: (a) improving the skills of new workers enteringthe labor force, estimated at about 1.2 million annually, one-third in theNorth, Northeast and Centerwest regions and two thirds in the South andSoutheast re6ions; (b) increasing the productivity of Brazilian workers;(c) training industrial workers t.< meet industrial employment growthdemands, estimated at about 220,000 persons per year through 1985;(d) training tourism, commerce and services personnel to meet tertiarysector employment growth demands, estimated at about 750,000 new jobs peryear; (e) raising the productivity of farmers by training about 650,000rural workers per year from 1975 to 1985; (f) expanding the network of theMinistry of Labor employment agencies; and (g) reducing industrial acci-dents by implementing compulsory occupational safety training schemes.

1.3 At the time of project appraisal the following key issues andproblems were identified as being the constraints to achieving the abovehuman resources development goals:

(a) for the Ministry of Labor: weak capacity of the ManpowerSecretariat to coordinate the overall training system and toidentify vocational training needs;

(b) For industrial training: (i) mismatch in the relationshipbetween SENAI's output and the market's8 manpower requirements;(ii) lack of standardization of course content and instruc-tional methodology; (iii) absence of systematic assessment ofthe labor market's changing conditions; and (iv) lack ofevaluation of the quality of the training systems output;

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(c) Yor commercial and services training: (i) lack of assessmentof the labor market before courses were planned; (ii) littleinnovation in training methodology except for pedagogicalenterprises; (iii) lack of systematic follow-up or tracerstudies of graduates; and (iv) limited capacity for trainingin hotel and tourism trades;

(d) for rural training: (i) very limited capacity for trainingfarmers, and (ii) emerging structure for training ruralworkers through SENAR (established on March 31, 1976 by Decree77354) which needed strong support to be able to establishitself;

(e) for occupational safety and training: (i) high proportion(about 15 percent or two million persons) of the insuredindustrial work force involved in 1975 in occupationalaccidents; and (ii) loss of time due to accidents of all kindsamounting to 254 million hours;

(f) for employment services: (i) lack of comparable statistics onjob seekers, vacancies and employment levels; and (ii) lack ofsystematlc analysis prior to policy setting with reference toinformation and recruitment services to employers as well asinformation on trends with regard to training needs, jobcreatlon needs and migration.

1.4 These issues determined the objectives of the project, which wereto: (i) develop the capacity of the Ministry of Labor to perform its func-tion of guiding the expansion of ;he major public and private vocationaltraining agencies in the country; (ii) increase vocational training oppor-tunities in selected subsectors and geographical areas; and (iii) expandthe national employment information and placement system and occupationalsafety and health programs.

1.5 To achieve these objectives financial assistance was provided for:

(a) construction, furnishing and equipping of vocational trainingcenters, as follows:

Number of CentersComplete Equipping

TraininR Centers Facilities Only

Industrial (SENAI) 12 1Commercial (SENAC) 3 _Hotel School (SENAC) 3 -Occupational Safety andHealth (FUNDACENTRO)IL 1 8

Totals 19 9

1; Partial replacement of temporary facilitiesrented by FUNDACENTRO in Sao Paulo.

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(b) provision of 180 mobile units (vehicles and equXpment) forthe expansion of SENAR rural training programs, to provideannual training opportunities to abut 250,000 persons;

(c) provision of staff training for about 600 instructors ofSENAI industrial, SENAC commercial and SENAC hotel schooltraining centers, and for about 2,525 administrators andother staff of the SINE employment information and placementsystem;

(d) execution of studies on the labor market and follow-up ofstudents by the Ministry of Labor and preparation of pro-grammed instructional materials for SENAC hotel, catering andrelated services courses;

(e) provision of technical assistance to SENAI, FUNDACENTRO,SENAR, SINE and the Ministry of Labor, including 36-2/3 man-years of specialists' employment information and placementservices; and

(f) coverage of selected project administration costs including100 percent of the salaries of six Project Unit staff duringproject implementation and consulting services to the ProjectUnit.

1.6 The accumulated revisions to the project which occurred throughfive amendments were as follow:s

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Planned Amended

(a) Construction, Equipping andFurnishing of Training Centers(number of units)

- SENAI 12 15- SENAC

Commercial Centers 3 17Hotel Schools 3 0

- FUNDACENTRO 1 1

(b) Equipping only(number of units)

- SENAI 1 4- SENAC 0 2- FUNDACENTRO 8 7

(c) Mobile Units(number of units)

- SENAI 0 102- SENAR 108 182

(d) Staff Training(number of trainees)

- SENAI and SENAC instructors 600 1,430- SENAR Instructors 0 693

(e) Technical Assistance (ranlmos.) 446 566

(f) Fellowships Abroad (man/mos.) 327 340

(g) Special Account at theCentral Bank 0 US$2.5 million

(h) Instructional Materials forSENAR and FUNDACENTRO None Included

Original AmendedAmount % of Z ofUS$ Expenditures US$ Expenditures

Million Financed Million Financed

(i) Project AmountCategories

Category 1 11 13.3 35 13.4 57

Category 2 21 11.9 26 local 13.0 73 local100 foreign 100 foreign

Category 3 31 2.1 100 3.1 100

Category 4 4/ 4.7 2.5

Total 32.0

1/ Site development, construction, furniture, staff training, studies,production of teaching materials and professional services.

IL Equipment.

31 Salaries of project unit and technical assistance.

4/ Original: Unallocated; Amended: Special Account.

II. PROJECT IMPLEMENTATION

Proiect Management

2.1 PRODEHO was established in accordance with paragraphs 5.01 and5.02 of the SAR. PRODEMO's Director was directly responsible to theSecretary General of the Ministry of Labor. He was authorized to signcorrespondence and checks, approve personnel hiring/firing, etc., indepen-dently. (See PCR para. 3.11.) The high degree of independence of PRODEMOallowed it to interact directly with the agencies at the regional level,bypassing the central authorities of each. PRODEMO's management maintainedexcellent coordination with Bank staff and fulfilled most of its responsi-bilities adequately. It did an excellent job following appropriate proce-dures in preparing the documentation for bids and awards (PCR para 3.14 andAnnex VI). It could have reduced the volume of bids substantially, had itcoordinated work schedules and packaged groups of items by regions.

2.2 The main drawback to PRODEMO's modus operandi was that by general-ly bypassing the headquarters staff of the institutions participating inthe project, it achieved immediate project goals at the expense of

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institutional development, in that the agencies were offered little oppor-tunity to improve their man&gement capacity. As an example, SENAI'sNational Directorate had to contact PRODEMO when it needed information onoperational progress of any of its regional centers. Also, FUNDACENTROhad innumerable problems in preparing its disbursement requests, because oflack of adequate communication with PRODEMO.

Implementation Schedule

2.3 The planned and actual implementation schedule (PCR, Annex 1),shows that 7 years and 9 months (from the date of loan signature) wererequired to complete the project, two-and-a-half years or almost 502 moretime than estimated at appraisal. The causes of delays are explained inthe PCR, paras. 3.2 and 3.3. One additional major delay was in SENAC'scivil works component due to local funds shortages and lack of adequateplanning capacity.

Location of Centers

2.4 Most centers are well located. An example of the very few excep-tions is the Camacari center (SENAI), which lacks adequate transportation.

2.5 Hotel Training Schools. The shortage of counterpart funds and therecession in Tourism activities determined the need to find a less costlysolution to the training program for catering, hotel and tourism sectors.The Borrower, in agreement with the Bank, decided to delete the three hotelschools (which were supposed to become self-financed operations) in favorof building more modest training centres, with reduced operational costs.

Equipment

2.6 Equipment selection was asaisted by consultants and in globalterms was very good (see para 3.21(g) of the PCR), allowing the transfer oftechnology to firms. In some cases the equipment is still underutilized,as at FUNDACENTRO's video-cassette production unit.

Mobile Units

2.7 The concept of mobile units refers to mobile training capacity;that is, to various means of bringing training capacity to large numbers ofsmall concentrations of demand. To do so effectively, also requires agreat deal of flexibility in the training conferred. The concept wasapplied quite differently in the SENAI and SENAR components of the loan.SENAI's mobile units are of the conventional sort, where instructors andcomplete training equipment move around together in vehicles designed to bethe training milieu; they are explained in paras. 3-17.-3.18 of the PCR.The Units were designed by SENAI in a pilot stage, and built in Brazil atcompetitive prices, they provide a flexible operating modality according tothe needs of local firms. In addition, SENAI established within the organ-ization, a specific structure to plan, organize and manage the use of themobile units, at both central and decentralized levels. Planning of acti-vities was done in close collaboration with industries. They are a successstory worthy of replication.

7

2.8 SENAR's mobile activity was not conventional ("mobile actions");it involved the creotion of Manpower Training Centers/Agenciesland mobileunits (PCR, para. 3.25). SENAR is organized into Delegacias which super-vise Training Centers and Agencies from which training sessions areorganized at local farms, trainers and equipment are transported to thesecenters and farms in pick-up trucks. Though the concept is valid, politic-al interference, lack of trained staff, lack of funds for purchases ofessential items (fuel) or to provide per diems for trainers, have all con-tributed to poor results in this component. In addition, the failure tovary training materials and equipment according to the very different needsof agricultural areas has hindered even further the ability of the coordi-nators, instructors and other staff to provide adequate training to thelocal farming communities. A specific structure to manage the use of themobile units, as was the case for SEN&I, would have significantly improvedtheir implementation.

Technical Assistance and Personnel Training

2.9 This component was funded in part by UNDPIILO for a total ofUS$1,500,000. The various components are described in detail in PCRparas. 3.30 through 3.36 and Annexes IV and V. Training of Instructors,Specialists and Administracive Staff is described in PCR para. 3.26 andAnnex III.

Compliance with Covenants

2.10 SENAR was in non-compliance with dated covenants for severalyears. OED's Report of 1982 (Ope.ational Policy Review-Compliance withLoan Covenants) leading the change towards fewer and less specificcovenants, utilized this project as a case stuay. The expectations for theSENAR component were overly optimistic specifically with reference to datedcovenants on detailed training programs and recruitment of qualified staff.However, in the context of the overall project major changes requested bythe Government were successfully incorporated into the revisions introducedperiodically in the Loan Agreement. (PCR para. 6.4 and Overview's basicdata sheets iv, v, and vi.)

Borrower Performance

2.11 The agencies' performance was uneven, varying according to theirinternal structure, and also according to the current severity of theeconomic crisis and the resulting shortfall in Government counterpartfunds. PRODEMO's stability of staff from inception through completion ofthe project greatly enhanced continuity and communications with the Bank.See PCR paras. 5.1 through 5.7.

2.12 Major restrtctturing of the Ministry of Labor, aimed at moreeffective coordinatioa of the several manpower training agencies, wasachieved in the following areas: (a) participation of representatives ofother ministries, in the discussions leading to major decisions in theareat of planning, finance, vocational training and technical education,contributed to delineate areas of responsibility and reduce overlapping of

training programs; (b) participation and intervention of representatives ofother public and private agencies through the Federal Council of Manpower;and (c) establishment of procedures to stimulate private financing oftraining (deduction of training costs from income tax, partial exemption oflevy payment).

2.13 PRODEMO's progress reporting was comprehensive. Because of theaccuracy and re3lability of data in these reports, reporting requirementswere reduced from a quarterly to a semi-annual basis.

Bank Performance

2.14 The appraisal team modified the originally proposed scope and costof the Project (PCR para 2.2 through 2.12) because of financial constraintsas then perceived. Yet the full extent of the financial problem whichBrazil would experience during the implementation period could not havebeen anticipated. The Bank's performance on the whole may be consideredsatisfactory. Good communication with PRODEMO and well planned supervisionmissions were the key factors in resolving difficulties as they arose.

2.15 Flexibility was stressed in the assessment and approval of majorchanges in project components: i.e., replacement of SENAC's hotel trainingschools with cheaper training centers and replacement of SENAR's mobileunits with the mobile action concept. The fifteen supervision missionsprovided considerable technical assistance, particularly on bidding proce-dures, planning, costing, project management and staffing, coordination,instructors' training, organization of the fellowship programs, terms ofreference for and follow-up on the diffarent studies, equipment lists andspecifications, and mobile unit design and utilization.

2.16 The main weakness i1 the Bank's performance was the overly opti-mistic assessment of SENAR's capacity to implement large scale activitiesgiven its newness, lack of staff and infsppropriate structure. These short-comings were compounded by the fact that insufficient annual budgets wereallocated to this entity. The Bank was not able to gain aemi-autonomousstatus for the agency during the life of the project, a prerequisite to itseffectiveness.

2.17 The inclusion of this project in the Special Action Program during1983 allowed for an increase in Bank financing of Category 1 expendituresfrom 351 to 57%, which was a decisive factor in the achievement of projectobjectives during the time remaining for its execution (from October 4,1983 to June 30, 1985). In addition, the opening of the special account(amendment of December 4, 1982) expedited reimbursements, though, if it hadbeen activated mcre expeditiously, disbursements during the last two yearsof execution could have progressed even faster.

III. PROJECT COST. FINANCING AND DISBURSEMENTS

3.1 Total project costs were estimated at appraisal at US$92.5million. Actual project costs expressed in US Dollars amounted to US$ 73.9million, which is 201 below the appraisal estimate. Most physical objec-tives of the project were, however, attained at this lower than expected

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cost in US$ terms. (See table No. 1 below). In the case of SENAC, the veryexpensive hotel schools (US$600/square meter), with lower enrollment capa-city, were dropped in favor of lower cost training centers (US$250/squaremeter), with higher enrollment capacity; therefore comparisons of cost orenrollment data are not applicable. On the other hand the actual costs fortechnical assistance, research, teaching materials, and administrationexceeded appraisal estimates by a wide margin.

3.2 Total area constructed exceeds appraisal estimates by about 342,and in US$ equivalent terms at about 322 less cost. The main cause of thereduction in costs in US Dollar terms is the devaluation of the Cruzeiro,which proceeded faster than inflation in the construction industry. Anadditional factor is SENAI's two year delay in requesting reimbursement o£its expenditures, which were reimbursed at the Cruzeiro rate in effect atthe time of reimbursement. On the other hand, technical assistance costspayable in US$ increased due to the expansion of the component and byvirtue of being unaffected by the local currency fluctuations.

Table No. 1. ESTIMATED AND ACTUAL PROJECT COSTS - INCLUDING CONTINGENCIES(In USS Million)

Appraisal Actual asCateRorv Estimate Actual % of SAR

Construction 39.0 22.7 58

Furniture 4.5 1.7 38

Equipment 31.0 24.5 79

Technical Assistance 2.8 3.8 136

Training 3.2 2.1 66

Teaching Materials

and Research 1.5 4.1 273

Professional Services 2.7 2.8 104

Administration 7.8 12.2 156

Total 92.5 73.9 80

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3.3 Overall costs were also influenced by the delays in execution ofthe project, and subsequent loan amendments that provided for replacementof some components ani inclusion of additional school units, mobile units,fellowships, research projects (PCR para 3.3). Contingencies were over-estimated at appraisal and never fully utilized, which compounded with theaccelerated devaluations of the local currency during implementation, hadthe overall effect of lowering project costs considerably in US Dollarterms (PCR paras. 4.2-4.3)

3.4 At appraisal, the Bank loan of US$32 million was expected tofinance 35K of total project costs (US$92.5 million). In early 1983 itbecame clear that the severe shortage of counterpart funds due to thecountry's economic difficulties *->uld seriously jeopardize the completionof the project. As part of the Special Action Program, with the Amendmentof October 4, 1983, World Bank financing increased for Category 1 (civilworks, furniture, staff training, research, teaching materials and profes-sional services) from 35X to 572; and for Category 2 (equipment) locallymanufactured goods only, from 26X to 73Z. Within the same amendment thetotal project cost was revised to US$76.4 million and the Bank's portionremained unchanged, thus increasing Bank financing to 42X. Actual projectcosts were slightly lower than the revised estimate at US$73.9 million, butthe participation rates remained unchanged as shown in table 2 below (PCRpara 4.4 through 4.6).

Table No. 2: FINANCING AND DISBURSEMENTS(in US$ Million)

ApDraisal ActualFinancina Sources Amount K of Total Amount K of Total

Government 60.5 65.0 43.0 58.0

World Bank 32.0 35.0 30.9 42.0

Total 92.5 100.0 73.9 100.0

3.5 The changes in the levels of Bank financing coupled with theopening of the Special Account expedited disbursements and were the keyelements in the achievement of project objectives before the revisedclosing date. It must be noted that during the first six years of imple-mentation 502 of the loan was disbursed, while in the remaining two years48Z of the loan was disbursed. The remaining balance of US$1.1 million wascancelled on February 12, 1986.

3.6 Disbursements were slower than anticipated mainly due tos(a) adelay of seven months between signing and effectiveness; (b) tho economiccrisis and reduction in the availability of counterpart funds requiring thereplacement and/or modification of several project components; and (c)SENAI having completed a large portion of its construction program withoutrequesting reimbursement for any of the expenditures incurred. The timelag on average was about t':o years in the early years of implementation.

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Had the Bank activated the Special Account sooner, it could have beenfeasible for disbursements to proceed at a faster pace. The Borrower PCRpara. 6.13(b) also considers the ceiling of the Special Account a factor inthe delay. Estimated and actual disbursements are shown graphically In PCRAnnex 1 and in tabular form in 'Basic Data."

IV. PROJECT BENEFITS - CONCLUSIONS AND LESSONS LEARNED

4.1 Most project benefits were expected to result from (i) developingthe capacity of the Ministry of Labor; (i) increasing vocational trainingopportunities in selected subsectors and geographical areas; and (Wii)expanding the nationa£ employment information anlA placement system andoccupational safety and health programs.

4.2 The project had only a marginal impact on strengthening the plan-ning and coordination capability of the Ministry of Labor, and much remainsto be done in this area. A subsystem to collect statistical data was setup in the Manpower Secretariat of the Ministry of Labor. Based On thisdata the training agencies carried out several follow-up studies whichprovided instruction for setting policies and formulation of annual plans.But this subsystem still needs to be strengthened.The main achievement ofthis project was the construction of a number of training centers both forSENAI and SENAC, covering a wide geographical area. The availability ofstudent places increased accordingly and annual enrollment targets estab-lished at appraisal were fully met (PCR, para. 3.10, Table 2). Expansionof capacity, particularly in the agricultural (SENAR), and commercial andservices fields (SENAC) took place mainly in the poorer states (in theNorth, Northeast, and Centerwest) (PCR para. 6.6). On the qualitativeside, the project contributed significantly to Improvement of vocationaltraining standards by introducing now teaching techniques, providing moretechnologically up-to-date equipment and upgrading instructors' skills(PCR, paras. 3.21, 3.26 and 3.31).

4.3 FUNDACENTRO's staff were successfully upgraded (PCR, para. 3.35).The fellowships program enabled stsff to receive advanced training inoccupational safety and medicine, thus greatly improving the content.1

Quality and effectiveness of the training programs designed by the institu-tions. Its headquarters wers established in Sao Paulo, and equipped withmodern laboratories (PCR, para 3.13). In addition, FUNDACENTRO plans tocontinue upgrading its personnel through interaetion with other sm4ilarinstitutions in Latin America and Europe (PCR, part. 3.24).

4.4 Some important lessons were learned during the implementation ofthis project (PCR, para 6.13 and 6.14):

(a) the Implementation schedule was optimistically forecasted over aperiod of 5 years. The experience showed a much longer period(para. 2.3), thus showing the need to be more realistic atappraisal. However, in this particular case it would have been

I/ The Borrower notes that this was one of the basic goals of the Project.See Attachment II.

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impossible to predict the ensuing economic recession of thecountry, affecting se7erely the availability of counterpart funds.In addition, this project was the first of its kind in Brazil,thus there was no previous comparable experience.

(b) the semi-autonomous agencies (SENAI and SENAC) were much betterable to implement their components than those depending on theGovernment for their budget (SENAR, FUNDACENTRO, SINE, SMO).SENAI was the most successful in absolute terms, and its experi-ence in developing, producing and marketing mobile units should bedisseminated as an example in other Latin American countries (PCR,paras. 3.17 and 3.18);

(c) SENAR, a government agency, which was at an embryonic stage ofdevelopment at the time of project preparation, was unable toinitiate operations as expeditiously as was planned. Its lack ofautonomy crippled its development from inception. Unless itbecomes a semi-autonomous agency, with a separate budget andpersonnel structure, it cannot achieve the operational outcomesexpected at the time of appraisal for this project (and which werenot achieved under this project) (PCR, para. 5.4); and

(d) continuity of staff within t Project Unit was very important forthe successful implementation of the project (PCR, paras. 3.11through 3.15). At the time of appraisal PRODEMO was set -up withthe sole aim of ensuring good project implementation. This itdid, very well, in difficult circumstances. one cost is that itdid not become much involved with the headquarters of the execut-ing agencies and thus did not help them strengthen their imple-mentation capacity.

4.5 Based on tha above lessons and because the agencies are moremature, a different implementation system was introduced in the new proj-ect. To assist the implementing agencies to develop their managerialskills a major shift of implementation responsibilities has been includedin project design. Project Management Teams have been set-up in eachagency to implement subproject execution. Monitoring and evaluation of thevarious components pertaining to each agency is to be executed in adecentralized fashion. The Project coordination Unit within SMO has over-all responsibility for coordinating project execution through the NationalDirectorate of each agency. A Special Account has been set-up to facili-tate disbursements; SEMAI, SEN&C and SMO have direct access to it.

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BRAZIL


FINAL PROJECT REPORT

(Portuguese Originals December 1985)(Translations July 1986)

Borrower Completion Report

Prepared bys PRODEMO - NANPOWER DEVELOPMENT PROGRAMGeneral Secretariat - Ministry of Labor

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BRAZIL - VOCATIONAL TRAINING PROJECT(LOAN 1452-BR)

PRODEMO - MANPOWER DEVELOPHENT PROGRAM FINAL PROJECT REPORT

I. INTRODUCTION

1.1 The structure of vocational training in Brazil underwent signifi-cant changes beginning in 1974. The Ministry of Labor and Social Welfarewas divided into two ministries; the Ministry of Labor was given responsi-bility for meeting the requirements of the country's labor market, espe-cially as concerns manpower training, employment and wage policies, andemployment protection. In the area of vocational training the need arosefor planning and coordination of training activities throughout thecountry.

.1.2 At the time the main agencies with vocational training programs inBrazil were SENAI (National Service for Industrial Apprenticeship) andSENAC (National Service for Commercial Apprenticeship), affiliated with theMinistry of Education and Culture; PIPMO (Intensive Program for ManpowerTraining), also in the Ministry of Education and Culture; and a few reli-gious agencies and private firms which were providing training primarilyfor the purposes of administration and management. Also about 350 indus-trial and commercial enterprises were involved in training programs.

1.3 The legal document providing for the establishment of the Ministryof Labor (Decree 6036 of May 1, 1974) stipulated that SENAI and SENACwould be attached to the new ministry. With its new functional organiza-tion, the Secretariats of Manpower, Employment and Wages, and LaborRelations were created within the Ministry of Labor. The Secretariat ofManpower was made responsible for the coordination of vocational trainingactivities in the country. On December 12 of the same year, PIPMO(Intensive Maipower Training Program) of the Ministry of Education andCulture was transferred to the Ministry of Labor (Decree 75081 of December12, 1974), within the purview of the Secretariat of Manpower.

1.4 In 1975 studies and research were undertaken by the ManpowerSecretariat of the Ministry of Labor to identify the capacity of Brazilianfirms to participate in the national training program with the objective ofupgrading manpower resources. The studies identified the firms, activitiesin vocat4.onal training and training needs. This provided an adequate basisfor subm; Aion to the National Congress of a draft law authorizing enter-prises financing their own training activities a deduction from taxableprofit, for income tax purposes, of twice their expenditure on trainingpreviously approved by the Ministry of Labor. The draft bill, approved bythe National Congress, was ratified by the President of the Republicthrough Law 6297 of December 15, 1975.

1.5 During 1975 several studies were undertaken to analyze theproblems of rural training (approximately 20 million workers). As a result,SENAR (National Service for Rural Training) was established on March 31,1976 by Decree 77354. It was intended to support the implementation of

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large-scale projects in agriculture and livestock, especially in the Northand Northeast; the modernization of agriculture with the development ofinr.nsive crops (soybeans, sorghum, wheat etc.); the establishment ofPROALCOOL; the improvement of traditional crops (coffee, cotton, cereals,etc.); and the implementation of the Land Statute with the distribution ofland by INCRA and consequently the number of rural properties, which wasgiven the following functionsi

(a) To organize and administer programs of rural vocational trainingthroughout the country, directly or in collaboration with publicbodies and agencies or with the private sector;

(b) To establish suitable methodologies for rural vocational training;

(c) To produce and disseminate instructional materialssuitable for the training of rural workers;

(d) To organize and publish documentation relating torural vocational craining;

(f) To assist agricultural enterprises in the preparation andimplementation of vocational training programs for their employeesat all levels; and

(g) To cooperate with Brazilian and international agencies inactivities related to rural vocational training.

1.6 The administrative actions indicated and defined by the BrazilianGovernment through the Ministry of Labor, it connection with vocationaltraining, brought about the need for the coordination of such activitieswith the establishment of mechanisms for setting priorities and goals, inline with the objectives of the Second National Development Plan. Decree77362 of April 1, 1976 set up the National Manpower Training System withinthe Ministry of Labor, as the coordinating and supervising body for voca-tional training activities in Brazil. Article 3 of the same Decree trans-formed the Advisory Council on Manpower, a body attached to the formerNational Manpower Department (DNMO), into the Federal Manpower Councilwhich was given "the functions of inter alia, formulating regulations andguidelines on the national policy of vocational education, approving theprojects referred to in Article 1 of Law 6297 of December 15, 1975, andproposing incentive and development measures aimed at the professionaladvancement of workers.'

1.7 The Federal Manpower Council was established by order of theMinistry of Labor, comprising representatives of the Ministry itself, withthe Secretary of Manpower serving as chairman; representatives of theMinistries of Education, Planning, and Finance; representatives ofemployers, workers, SENAI, SENAC and SENAR; and three recognized expertsin vocational training selected by the Minister of Labor.

1.8 However the Ministry of Labor encountered difficulties in themanagement of employment and wage programs due to the lack of cohesion ofexisting units within the new structure of the Ministry. These units wererestructured and organized within the Secretariat of Employment and Wageswhich had been established in October 1974.

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1.9 Plans for the establishment of an employment organization InBrazil date back to 1953 when some activities were handled through theUnemployment Assistance Fund. Later some of those activities were carriedout sporadically by the Regional Labor Offices in some states. In its 1975reorganization, the Ministry of Labor set up the National EmploymentSystem (SINE) under the Secretariat of Employment and WageR, with responsi-bility for formulating general policy, providing technical guidance andfinancial assistance to the system, developing ope.ating standards andprocedures, and implementing the staff training program. Each statewishing to participate in SINE had to present a plan to the Secretariat ofEmployment and Wages in accordance with the program guidelines, and signan agreement with the Ministry of Labor specifying the terms, conUtionsand financial assistance to be provided. In 1976 there were 17 SINEoffices providing placement services in the states of Sao Paulo, RioGrande do Sul, Bahia, Santa Catarina and Piau, with a total of 656 techni-cal and administrative staff. As a complement to the government employ-ment system, nearly 500 small private agencies are registered with theMinistry of Labor. In 1975, the National Council on Wage Policy (CNPS)and the Council on Employment Policy (CNPE) were established to coordinatethe activities of the Ministry of Labor in the area of employment andwages; comprising representatives of the ministries concerned, employeesand employers, and other institutious.

1.10 Problens relating to the occupational safety and health ofBrazilian workers were addressed by specialized units within the Ministryof Labor, through appropriate legislation and mechanisms for supervisionby the Regional Labor Offices. In 1968 FUNDACENTRO (National Foundationfor Occupational Safety Hygiene and Medicine) was established in Sao Paulounder the Ministry of Labor. Its functions are to conduct studies andrelated research, provide specialized services, and train doctors,engineers, supervisors, nurses, and other specialists. The creation ofFUNDACENTRO was prompted mainly by the Government's aim of responding tothe increase in occupational accidents and work-related diseases inBrazil, which at that time had rates far exceeding world averages, withadverse effects on the labor force and the economy.

1.11 At the time project: preparation was initiated in 1976, conditionsin Brazil with respect to the various components to be covered by the proj-ect objectives were as described in the following sections.

A. Vocational Training

1.12 Primary sector. The training of rural workers, virtually non-existent in Brazil, was conducted through the rural extension system butit was focused on technical assistance to farmers and small-scale producersthrough EMBRAPA, the EMBRATER system and to a lesser extent INCRA. In 1976PIPMO (Intensive Program for Manpower Training), associated with theMinistry of Labor, carried out limited activities in rural vocationaltraining under agreements with rural extension services and other agenciesoperating in the rural sector (agricultural cooperatives, rural laborunions, religious bodies, etc.). The Ministry of Education and Culture

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also undertook training of rural workers on a very small scale through itsnetwork of Agricultural Technical Schools. To take care of the training ofrural workers the Brazilian Government established SENAR (National Servicefor Rural Training) on March 31, 1976. When the studies for preparation ofthe project commenced, SENAR organization and structure was emerging.

1.13 Secondary sector. The training of industrial workers has beenhandled by SENAI (National Service for Industrial Apprenticeship) since1942. SENAI is a semi-autonomoui agency under the responsibility of theNational Confederation of Industry. With a highly decentralized adminis-tration exercised by the National Directorate and within states by theState Councils of the Confederation, SENAI has operated through its networkof 316 branches composed by technical schools, vocational training centers,training centers and training agencies. It has also been involved inindustrial firms, through special programs for young and adult training.PIPMO also has been concerned with the training of industrial workersthrough programs of occupational upgrading under agreements with SENAI,industrial firms, trade unions, religious agencies and others, givingpriority to areas not served by the vocational training agencies. Someindustrial firms (327) -- especi&lly the large national and multinationalcomp&nies -- have developed special vocational training programs underexemption agreements with SENAI (32) or with their own resources. TheMinistry of Education and Culture, through its network of tecanicalschools, other state agencies and certain religious institutions, has alsocarried out separate activities for the training %! industrial workers, Intraining for administration and management, a reasonable number of privatefirms and organizations had specific programs in 1976. But despite all theactivities of the different agencies providing vocational training forindustrid1 workers in Brazil, more was needed to meet the country's demandfor skilled workers. It was clear, moreover, that the contributions of thefirms -- and of the Government -- were insufficient to allow expansion ofthe activities of SENAI and other institutions.

1.14 Tertiary sector. The training of workers for trade and serviceshas been provided mainly through SENAC (National Service for CommercialApprenticeship), a semi-autonomous agency established in 1946 and placed bythe Government under the responsibility of the National Confederation ofCommerce. PIPMO has also undertaken manpower training programs in theareas ofcommerce, general services, hotel and tourism services, andhealth, in cooperation with SENAC and other agencies. The Ministry ofEducation and Culture, the state governments, and particularly the networkof private schools have afforded opportunities for training in the fieldsof accounting, administration and health. It should be noted that thetertiary sector already pointed to major changes in the country's laborforce, especially in the sectors of hotels and tourism, transportation,communications, and -- at an early stage -- data processing.

B. Employment Services

1.15 Prior to the division of the Ministry of Labor and SocialSecurity and upon the establishment of the Ministry of Labor (1974),employment issues in Brazil were handled by the Department of Labor

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Relations, which operated through units within the Regional Labor Offices.In 1974 the Secretariat of Employment and Wages was established, followedby the National Employment System (SINE). By 1976 SINE had established alimited network of employment agencies in some states, providing placementservices.

1.16 At the time of preparation of the project SINE was new and func-tioning inefficiently due mainly to regional disparities in operationalstandards and procedures. There was a serious shortage of specialists, alack of organizational structure in several states, as well as issues withnational office.

C. Occupational Safety and Medicine

1.17 In 1975 some 2 million workers (about 15% of the insured indus-trial labor force) were involved in occupational accidents. In 1968 theGovernment had set up the National Foundation for Occupational Safety,Hygiene and Medicine (FUNDACENTRO), affiliated with the Ministry of Laborand Social Security and located in Sao Paulo. Its function was to dealwith the issues related to the prevention of occupational accidents. In1972, with the technical cooperation of FUNDACENTRO, the Government hadmade it compulsory for firms with over 100 employees to establish special-ized occupational safety, hygiene and health services. FUNDACENTRO wouldbe responsible for the postgraduate training of safety engineers, medicalofficers and nurses. It was also to train safety supervisor and foremen;conduct studies and research and provide technical as3sistance to enter-prises in the fields of industrial hygiene and occupational safety. At thetime of preparation of the project FUNDACENTRO did not have adequatephysical facilities; its technical offices and some rudimentary labora-tories were located in different places. It also had three regionalcenters in Rio de Janeiro, Brasilia and Recife. Its technical-administra-tive structure showed serious deficiencies attributable to the lack ofqualified personnel and of an administrative infrastructure compatible withits objectives.

D. Secretariat of Mannower

1.18 The Secretariat of Manpower in the Ministry of Labor was estab-lished in October 1974 following reorganization of the Ministry, after thedivision of the Ministry of Labor and Social Welfare. Since January 1975the Secretariat of Manpower was made responsible for the administration ofPIPMO, transferred from the Ministry of Education and Culture. With thepromulgation of Law 6297 authorizing tax incentives for enterprises finan-cing their own training activities, the establishment of the NationalVocational Training System and the Federal Council of Manpower (whoseex officio chairman is the Secretary of Manpower), the Secretariat ofManpower, which was in its early stages of implementation, encountered somedifficulties in meeting its objectives. The extent of its responsibili-ties, coupled with the impossibility of augmenting its staff because ofinadequate budgetary resources, and issues in recruiting qualified techni-cal personnel because of the Government's wage policy, seriously hinderedthe fulfillment of its tasks and objectives. Furthermore, the lack ofresearch and studies on the characteristics and cenditions of theBrazilian labor market -- except some sectoral studies done by SENAI andCNRH (National Human Resources Center), among others -- made it difficult

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to implement decisions concerning identification of the country's voca-tional training requirements. The well-known situation of the Ministry ofLabor in June 1976 was the. basis for the Minister of Labor, ArnaldoPrieto's decision, to send a request to the Planning Secretariat of theOffice of the President of the Republic for analysis of a proposed loanpackage to be presented to the Intern.4tional Bank for Reconstruction andDevelopment (IBRD), on arrival of a Bank mission expected to carry out theinitial analysis of the project.

1.19 The initial work of the mission together with specialists from theMinistry of Labor, SENAI, SENAC, SENAR, FUNDACENTRO, Secretariat ofEmployment and Wages and SINE established the broad guidelines for prepara-tion. Project objectives, scope and content were defined with the assis-tance of successive IBRD missions to Brazilian Government agencies, partic-ularly the Ministry of Labor, the process begun in June 1976 and wascompleted with the appraisal in May 1977 (11 months).

1.20 The project was conceived as a means of strengthening the NationalVocational Training System and the National Employment System and improvingand expanding training programs for occupational safety, hygiene andmedicine. It was decided, as the strategy for achieving those goals, tostrengthen the infrastructure of the Ministry of Labor through specificinvestments in agencies under its direct control and those affilia,:d withit. The agencies participating in the project and directly administered bythe Ministry are: Secretariat of Manpower (SMO), Secretariat of Employmentand Wages (SES) and National Services for Rural Training (SENAR). Theaffiliated agencies ares National Service for Industrial Apprenticeship(SENAI), National Service for Commercial Apprenticeship (SENAC), and JorgeDuprat Figuereido National Foundation for Occupational Safety Hygiene andMedicine (FUNDACENTRO).

1.21 The project as formulated had the following objectives:

(a) to expand opportunities for vocational training in the varioussectors of the economy;

(b) to relieve the shortage of skilled workers;

(c) to upgrade the quality of instructors and technicians in theagencies taking part in the Program through training and technicalassistance (fellowships for study abroad);

(d) to update an information base relating to the existing stock ofskilled manpower in the various sectors of the economy throughstudies and research;

(e) to prepare and d-stribute instructional materials for thehotel catering services and general administration areas.

1.22 The project as formulated had the following operational goalst

(a) establishment of vocational training centers in the secondary andtertiary sectors of the economy, and of hotel training schools;

(b) introduction of mobile units for rural training;

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(c) technical assintance and training for supervisors, administratorsand instructors of the agencies participating in the program;

(d) research and instructional and methodological resources to improvevocational training coordination and planning at the nationallevel;

(e) establishment of a National Headquarters/Training Center andregional centers to train specialists in occupational safety andhealth training.

The formulation of the project, in consonance with the needsexisting at the time in the Ministry of Labor and in its affiliatedagencies, res-2onded to the objectives emerging from the reorganization andchanges that were then affecting the various units of the Ministry andthose agencies.

1.23 The proposed project would enhance the capability of the Ministryof Labor to perform its functions within the recently establishad NationalManpower Training System. Basically, those functions would be to coordi-nate and rationalize the expansion of the country's puhlic and privatevocational training institutions so as to alleviate the shortage ofskilled and semi-skilled workers in all sectors of the economy, in accor-dance with established development priorities. Besides this institutionbuilding effect, the project would provide for a substantial increase invocational training for selected subsectors and geographic areas, throughthe physical facilities to be financed. Finally, the project would comple-ment the aforementioned vocational training activities through the expan-sion of nationwide employment information and placement system and anoccupational safety and health program.

II. IDENTIFICATION OF THE PROJECT. PREPARATION AND APPRAISAL

A. General Obiectives

2.1 The project, as described in the introduction to this report, wasdesigned to support the activities of the Ministry of Labor relating to thevarious systems affiliated with it and under its responsibility. In itsfirst version, described in Notice G01380/76 of May 31, 1976, the Ministerof Labor proposed the following cmponents to the Chief Minister of thePlanning Secretariat of the Office of the President of the Republic:

(a) construction and equipping oft

(i) a national center for vocational training;

(ii) 15 industrial training centers of SENAI and groups of similarfirms;

(iii) five SENAC hotel training schools;

(b) equipping or re-equipping and furnishing of:

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($l SENAI industrial training centers;

(ii) 180 rural mobile training units for SENAR;

(iii) lQcal offices of the National Employment System for placementof trained workers; and

(iv) nine regional occupational safety and health trainingcenters.

(c) technical assistance for set:ing up the Rational Manpower TrainingSystem;

(d) research;

(e) project administration costs.

This project proposal was the subject of lengthy discussions among expertsfrom the World Bank, the Ministry of Labor, SENAI, SENAC, SINE, SMO andFUNDACENTRO, with the direct participation of SUBIN of the PlanningSecretariat of the Office of the President of the Republic. The followingchanges were made to the original proposal during the final projectpreparation.

B. Construction and Eauipment

2.2 The construction and equipping of the national center for trainingof personnel involved in vocational training activities was eliminated,inasmuch as the country already has an agency with similar objectives:CENAFOR (National Center for Vocational Training) located in Sao Paulo andaffiliated with the Ministry of Education and Culture.

2.3 The construction and equipping of SENAI industrial trainingcenters was reduced to 12 units because of the lack of counterpart funds.

2.4 The number of hotel training schools was reduced to three andthree SENAC commercial training centers were added, also due to theagency's financial problems.

C. EaulD2ina or Reeouipvins and Purnishins

2.5 The number of SENALI vocational training centers was reduced to onebecause of financial problems.

(a) the local offices of SINE were eliminated;

(b) technical assistance to advise in the organization of the NationalVocational Training System was transferred to the ILO-UNDPproject.

D. New Subproiects Included

2.6 The SENAI projects were expanded to include subprojects for stafftraining of instructors and an evaluation study to assess the results ofexperimental individualized instruction techniques being utilized at DR-SENAI-Rio de Janeiro;

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2.7 The SENAC projects were expanded to include subprojects for stafftraining and preparation of instructional materilds for the areas of hoteland tourism services;

2.8 The SINE project was substantially modified. Due to the agency'sshort period of operation, the lack of adequate staffing and the inexperi-ence and inefficiency of implementation of SINE prompted the inclusion ofsubprojects focusing on staff improvement within SINE (internationalseminar, external consulting services, fellowships for study in Brazil andabroad, initial staff training and upgrading courses).

2.9 Initial discussions with the Brazilian Government on a possiblethird education project began in February 1976 during a World Bank mission.It was decided that while further assistance to the formal educationalsystem was appropriate and would be supported in future IBRD projects, themore immediate priority was to complement those efforts by assistance tonon-formal vocational training to meet the short and medium-term manpowerrequirements of the economy, for which the Ministry of Labor is respon-sible. In May 1976 a Bank identification mission reached a tentativeagreement with the Government on the possible content of the third project,which was being prepared locally. In August 1976 another Bank mission,assisted by ILO specialists in the training of industrial workers. ruraltraining, hotel trainings, occupational safety and health training andemployment services, p:eappraised the project and provided technical assis-tance to the Government in completing its preparation. Bank appraisal ofthe project took place in November-December 1976 by an IBRD mission com-posed of Mr. R. Hemingway (education specialist), Mr. A. Tobelen(economist), Mr. J. Levine (economist, consultant), Mr. Y. Tencalla(agriculture specialist) and Mr. R. Corradine (architect).

2.10 After the modifications that were made during appraisal, the proj-ect was set up to finance:

(a) construction, furniture and equipment for:

- twelve industrial training centers;

- three hotel training schools;

- three commercial training centers;

- a national headquarters/training center for occupational safetyand health training;

(b) equipment for:

- one existing industrial training center;

- eight regional training centers in the areas of occupationalsafety and health with the Government being responsible forproviding the buildings;

- 180 mobile units for rural training.

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(c) staff training fort

- 600 supervisors for the industrial, comercial and hoteltraining schools;

- 2,525 administrative and technical personnel of the NationalEmployment System.

(d) the costs of:

- studies on the labor market and follow-up of former trainees;

- preparation of instructional materials for training inhotel and commercial services.

(e) technical assistance in the form of:

- 36-2/3 man/years of specialists' services;

- 27-1/4 manlyears of fellowships;

- a seminar on employment information and placement services.

(f) the costs of administering the project, including:

- 100l of the salaries of the six specialists of the ptoject unitduring Implementation;

- consulting services for the project unit.

2.11 The chaiges made in the project, differing from the initialproposal presented by the Government, were accepted by the participatingagencies on the basis of the projects they had prepared with the assistanceand supexvision of Ministry of Labor specialists. The participatingagencies prepared detailed studies of each subproject, with analyses ofsites, preliminary designs, equipment and furniture basic lists, localmanpower requirements, etc.

2.12 The differences between the original Government request to theBank and the final project proposal were due mainly to financial con-straints in the case of SEN&I and SENAC, agencies which were to furnishtheir own councerpart funds. At the time when the project was prepared theBrazilian economy already was showing tangible signs of the economic andfinancial recession that was intensified during the period of its execu-tion. The changes made in the SINE project were due to the structuralweaknesses of the agency, lack of manitgement capacity because of itstechnical level, and the shortcomings associated with its recentestablishment.

III. IMPLEMENTATION

3.1 Loan Agreement 14521BR, signed on September 7, 1977 by theFederative Republic of Brazil and the nternational Bank forReconstruction and Development (IBRD), had the general purpose of

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supporting the Ministry of Labor in the expansion of the major vocationaltraining institutions, the National Employment System, and the upgrading ofoperational projects ir. the areas of occupational safety, hygiene andmedicine. Project implementation commenced on February 16, 1978 with theappointment by the Ministry of Labor of the members of the ExecutiveDirectorate of the project, pursuant to Decree 80.930 of December 5, 1977and Explanatory Statement 055 of October 25, 1977. The delay in initiatingthe project was due to difficulties that arose at the time in allocatingbudgetary resources for the operation of the Project Unit and the counter-part funds required for the 1978 budget year, since the budget proposal hadalready been approved by the National Congress. Although the Project Unithad not been set up, in that same year of 1977 the CFP Varzea Grande (item03) and the CFP Sao Jose dos Campos (item 10) projects were begun; the Bankprovided retroactive financing of the expenditures made during that periodby those projects.

3.2 The implementation schedule (Annex I) shows that project had aduration of seven years and nine months from the date of signing of theLoan Agreement, which means that the delay was two years and six monvhsfrom the date originally indicated. The delay can be explained and justi-fied on the following grounds:

(a) the economic crisis that beset the country caused SENAC to cancelthe construction of the hotel training schools in 1981, 1982 and1983. To replace the hotel training schools, given the need forsmaller appropriation of counterpart funds, in addition to thethree centers originally envisaged, 14 new cencers were builtand/or remodelad (construction, and equipment) and two additionalreceived equipment and furniture. Due to the replacement of thehotel training schools, all projects for construction, equipmentand furniture were revised to reflect the changes with additionaltime required to prepare designs, draw up equipment and furniturelists, prepare bidding documents, etc.

(b) The waiver of Import licenses by CACEX, and later by SEI, turnedout to be a lengthy and significantly delayed process.

(c) The delay in the waiver by the Planning Secretariat of the Officeof the President of the Republic in respect of the special sche-dules for allowing recruitment of SENAR personnel held up thestart of that project by nearly three years.

(d) Delays in starting several projects were due to the Bank's slow-ness in approving the pertinent amendments t, Loan Agreement14521BR, and were also largely responsible for the failure toimplement the program within the periods envisaged.

(e) The execution of the SENAI projects within the planned periods, atcosts notably lower than those indicated in the appraisal (about57% of the estimates), prompted the inclusion in the project ofadditional school units (3 built and equipped, 3 equipped only);102 fully equipped mobile units and 89 man/months of fellowshipsfor study abroad. The new projects approved by the Bank in theamendment of January 21, 1981 justified the extension of theimplerAntation period of the project.

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3.3 However, the delays in project execution had the following posi-tive featuress

(a) SENAI had a 512 increase in building areas; 702 increase in tisenumber of training (including the mobile units)J inclusion offellowships for study abroad in the fields of new technologies,educational guidance and new vocational training methods, seekingthe adjustment of technical personnel to the new requirements ofthe Brazilian labor market;

(b) in SENAC, despite a 511 reduction in the total cost of the proje-ct, the number of training places was increased by 472Z, withpriority given to the poorest areas (North and Northeast); intro-duction of courses to train personnel ln data processing byequipping with microcomputers a national canter and the regionalcommercial training centers; establishment and installation of anational center for the preparation of instructional materials(video tapes, slides, etc.), with a 9661 increase in the numberof instructional unlts compared to the figure in the appraisal;3431 increase in the number of fellowships abroad envisaged atappraisal.;

(c) FUNDACENTROs included a project for 'Preparation ofInstructional Materials for Agriculture"; and

3d) SECRETARIAT OF MANPOWER: increased the number of research proj-ects and studies on manpower issues from 1 to 11 projects, in areas ofhigh priority for the Ministry of Labor and the National VocationalTraining System (Annex III).

A. Amendments

3.4 During its execution the project underwent the following changesas a result of amendments approved by the Bank after discussion, ofPRODEMO with the agencies concerned and Bank missions:

3.5 Amendment of Januarv 21. 1981

(a) construction, furniture and equipment: from 15 vocational trainingcenters for SENAI and SENAC were increased to 34; hotel training schoolswere reduced to two and the National headquarters/training center foroccupational safety and training of FUNDACENTRO remained unchanged;

- equiPment: increased from one to three the industrialtraining centers of SENAI, the eight regional centers ofFUNDACENTRO remained unchanged and added 86 mobile train-ing units for SENAI.

- trainine of instructors and snecialists: the number ofSENAI and SENAC trainees was increased to 1,430, with1,100 additional instructors trained for SENAR;

- instructional materials: the SENAC component remainedunchanged; SENAR project was added; and

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- technical assistance: specialists' services wereincreased to 589 man/months and fellowships remainedunchanged at 327 man/months.

3.6 Amendment of March 26. 1982

- construction. furniture and eauipment: SENAI and SENACvocational training centers were reduced to 33; the hoteltraining schools were reduced to one; five FUNDACENTROregional centers were added, and the national head-quarters training center remained unchanged;

- equi4ment: increased to five the vocational trainingcenters for SENAI and SEXAC; reduced to three theregional centers for FUNDACENTRO;

- instructional materials: inclusion of the project forpreparation of instructional materials for FUNDACENTRO;

- extension: the completion date of the project wasextended to June 30, 1985;

3.7 Amendment of December 14. 1982

- Special account: a special account is established at theCentral Bank of Brazil in the amount of US$1 million;

- System of Disbursements Procedures: reimbursement proce-dures are modified, beginning to be calculated at therate in effect on the date of payment of expenditures;

- Routing of Requests for Reimbursement: requests for re-imbursement of expenditures incurred within Brazil incruzeiros are to be route6 to the Central Bank.

3.8 Amendment of October 14. 1983:

Construction. furniture and eouivment: SENAI and SENACvocational training centers were reduced to 32; theremaining hotel training school was deleted from theproject as well as the five regional canters,FUNDACENTRO's national headquarters training centerremained unchanged;

- Eouipment: increased to six the vocational trainingcenters for SENAI and SENAC; increased to eightFUNDACENTRO regional centers; increased the number ofSENAI mobile training units to 101 and SENAR's to 182;

- Training of instructors and specialists: increased to1,635 the number of SENAI and SENAC trainees; decreaseto 693 the number of SENAR trainees;

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- Technical assistance: reduced the project forcontracting of specialists' services to 566 man/months;increased the number of fellowships to 340 manimonths;and

- Disbursement PercentaRes. Disbursements under category 1inereased from 352 to 572; category two (domesticequipment) increased from 262 to 732. Total projectcosts were reduced; and the overall financing of theproject increased to 422.

3.9 Amendment of October 4. 1985 (First revision of Loan Atreement1452/BR:

- The ceiling on bidding procedures for 'packagesincreased to US$100,000;

- The limit of the Special Account increased fromUS$1,000,000 to US$2,500,000; and

- All the changes made by the previous amendments areconsolidated In the revised loan agreement.

3. Physical and Operational Results

3.10 The following table compares the appraisal estimates and the finalresults for the physical and educational aspects

Table 1. Vocational Training Centers andMobile Units

Construction, Equipment,Furniture Equipment

(%) (X)Participating Actual/ Actual/Agencies Planned Actual Planned Planned Actual Planned

SENAICFPs 12 15 125 1 4 400Mobile Units - - - 0 102

SENACCFPs 3 17 566 0 2Hotel TrainingSchool 3 0 0 0 0 0

FUNDACENTRO 1 1 100 8 7 87.5SENAR

Mobile Units _ 180 182 101

Total 19 33 174 189 297 157

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Table 2: Operational Outcomes

Student Places Annual Enrollment(2) (X)

Participating Actual/ ActuallAgencies Planned Actual Planned Planned Actual Planned

SERAICFPs/Mobile Units 4,768 8,100 170 25,700 34,201 133 a/SENACCFPs/HotelTraining School 1,290 6,092 472 14,500 66,084 455FUNDACENT-.O 2,985 1,594 76 24,300 6,961 30SENARMobile Units 30.133 34,398 114 251.378 186,307 74 bI

Total 38,264 50,184 131 315,878 293,553 95

Notes:I/ ncluding 1,224 places In mobile units

/ The SENAR unite were in th, final phase of being estab lshed,with a consequent reduction in enrollmnts.

C. HiRhliahts of Project Executioai

3.11 The project was administered by the Manpower Development SupportProgram (PRODEMO), a newly established unit affiliated with the GeneralSecretariat of the Ministry of Labor, with technical, administrative andfinancial autonomy. The autonomy of PRODEHO had important consequencesfor the administration of the project: it permitted the flexible and effi-cient implementation of the various projects included under Loan Agreement14521BR. It is worth noting, also, that PRODEMO was able to operateeffectively because of its autonomy, despite the legal And administrativediversity of the participating agencies, two of which (SEMAI and SENAC) aresemi-autonomous agencies arM four (SENAR, SMO, SINE and FUNDACENTRO) aregovernment agencies.

3.12 As part of its activities, PRODEMO drew up normative and indica-tive documents to guide the agencies in the preparation of specificationsand basic lists of furniture and equipment, including indication of theestimated costs.

3.13 The architectural design specifications contained in the appraisalwere the reference point for the preparation of projects within the insti-tutions themselves (SENAI and SENAC). FUNDACENTRO obtained assistance fromoutside consultants and from PRODEMO engineers, which was fundamental formaximizing the use and functional relevance of designed facilities, partic-ularly the specialized laboratories. PRODEMO drew up uniform guidelinesand instructions for bidding procedures on civil works, equipment andfurniture. The standards established, pursuant to Brazilian legislationand IBRD guidelines, were defined specifically for international competi-tive bidding (civil works and equipment) competitive bidding advertisedlocally and regular Government procurement procedures (local shopping),having been submitted for prior approval by the Bank, and were utilized by

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all participating agencies during the execution of the project. Competi-tive bidding results, in accordance with their maximum amounts, were in allcases submitted to the Bank for review, following specific models. Exceptfor construction of the Vila Leopoldina Vocational Training Center of SENAIand the CTN of FUNDACENTRO, for which international competitive biddingprocedures were held, all works were awarded through competitive biddingadvertised locally. Four local competitive bidding for construction (twofor SENAI, one for SENAC and one for FUNDACENTRO) had contract prices abovethe limits stipulated in the invitations to tender and were canceled. Newlocal competitive biddings were opened and the prices offered were withinthe stipulated limits.

3.14 The general bidding criteria for civil works, equipment and furni-ture provided for a prequalification phase prior to the presentation ofbids, in accordance with Brazilian legislation. In the case of civil worksthe procedures were established for a system of point scoring for the pre-qualification of bidders. Bids were evaluated with reference to baseprices previously established and submitted to the Bank for review, forfirms whose bids fell within the range of 10% above and 202 below the baseprices. The criteria for basic qualification in the case of equipment andfurniture were fulfilled applied by verification of the technical andfinancial capacity of the different bidders in accordance with Brazilianlegislation. In their evaluation, PRODEMO drew up individual comparativetables of execution, to permit an adequate comparison between the technic-al specifications in the invitations to tender and the bids presented,item by item. In the majority of cases the lowest purchase price pre-vailed, technical conditions being equal. As for the procurement of equip-ment and furniture, in a total of 14 public international competitive bids,38 local competitive bids and 316 local shopping bids, there was only oneproblem, concerning interuational competitive bidding DN-02181, in whichRecrusul S.A. sought an injunction from the federal courts against thedecision of the SENAI bidding commission. The final decision was com-pletely favorable to the position of SENAI.

3.15 The subprojects added as a consequence of the amendments to LoanAgreement 1452/BR were appraised by PRODEMO following a methodologyapproved by the Bank. Supervision of the works was the responsibility ofthe agencies themselves in the case of SENAI and SENAC, with monitoring byPRODEMO. In the case of FUNDACENTROt PRODEMO was involved in the supervi-sion and direct monitoring of implementation.

3.16 The research done by the Secretariat of Manpower, with its scopesignificantly enlarged, was intended to identify the requirements andcharacteristics of the Brazilian labor market, the implications of techno-logical changes due to automation and computerization, the systematicalautomation of documentation and communications systems, among other aspects(Annex III).

3.17 One of the most important facets of the project is the subprojectfor SENAI mobile units. It was an innovative move, broadly and firmlybacked by the Ministry of Labor-PRODEMO, to see the mobile units as aplausible response to the challenge of expanding and diversifying ways ofmeeting industry's vocational training needs, despite the financial con-straints that the continuous loss of purchasing power of tax revenue wasalready =mposing on SENAI. The conjunction of SENAI-Ministry of Labor-IBRD

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efforts permitted a concurrent and significant physical expansion of thesystem as well as the enhancement of its capability to capture, evaluateand adapt international educational technology to the specific features ofthe system's clientele, the scope of its objectives, and the characteris-tics of the environment in which it must operate. In this case, thanks tothe good sense and competence that prevailed in the negotiation of loanamendments on the part of the Ministry of Labor-PRODEMO and IBRD, SENAIwas able to design, test and develop its prototype mobile units with a highpercentage of local content, in the units themselvAs as well as in theequipment, implements and tools that they require. SEAAI now has 102 addi-tional mobile units, covering different trades and enabling it to respondmore effectively to the growing need for improved training of industrialworkers. During 1981/82, 102 mobile units were built for various occupa-tions, to meet the demand identified, namely:

- 14 refrigeration- 12 hydraulic controls- 21 electrical controls- 12 pneumatic controls- 18 diesel machinery- 8 industrial sewing- 11 breadmaking- 6 sanitation

The start-up operation of these units was a real step forward in theactivities of SENAI. The impact on industry was felt later, as trainingservices were provided to firms more expeditiously and rapidl; because ofthe flexibility that this mode of operation offers. Considering that eachunit can accommodate 12 persons, the 102 units represented 1,224 new placesfor training of the firms' workers. If, at a minimum, these trainee placeswere used in three shifts, it means 3,060 new opportunities. We may addthat in general the courses are of short duration, which makes firmsconsider even further their vast potential use. The design of the units wasstudied carefully in order to reflect the true circumstances of the firms.Fully equipped for that purpose, they are mobile mini-firms.

3.18 Maintenance of the mobile units is performed by the agenciesthemselves, with resources earmarked for that purpose. Outlays for therepair of equipment and furnishings are all but negligible, since anyissues are corrected by the instructors, trainees, and sometimes the firmsthat receive the units. In some cases (Sao Paulo, Minas Gerais, Alagoasand Sergipe, among others) operational support centers have been set up,to handle the programming, maintenance and operational supply of theunits. The mobile units built under the IBRD project are currently dis-tributed among the regional departments (states) as follows:

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Regional TYPES OF MOBILE UNITS TOTALDepartment FR R CH CE D CP CI PA SA

Alagoas 01 -- 01 01 01 -- 01 05

Amazonas 01 -- 01 01 -- 01 -- 04

Bahia 01 01 01 01 01 01 -- 01 07

Ceari 01 01 01 01 01 01 01 -- 07

Federal District -- -- 01 01 -- -- -- -- 02

Espirito Santo 01 01 01 01 01 01 -- 01 07

Go±is Oi 01 01 01 01 01 01 -- 07

Maranhao 01 01 01 01 01 -- - 01 06

Nato Grosso 01 -- 01 01 -- 01 -- 04

Mato Grosso du Sul 01 -- 01 01 -- -- 03

Minas Gerais 01 01 01 01 01 01 01 -- 07

Para 01 -- 01 -- -- -- 02

Paran-- -- 01 01

Paraiba -- -- 01 -- -- 01 01 -- 03

Pernambuco -- 01 01 01 01 -- -- 04

Piaui 01 -- 01 01 -- 01 01 -- 05

Rio de Janeiro -- 01 01 01 01 01 -- -- 05

Rio Grande do Norte 01 -- 01 01 -- -- 01 -- 04

Rio Grande do Sul -- 01 01 01 01 01 -- 05

Santa Catarina -- 01 01 -- 01 -- 01 04

Sao Paulo -- 01 01 01 01 01 -- 05

Sergipe 01 01 01 01 -- -- -- 01 05

T O T A L 14 12 21 18 12 08 11 06 102

R - Refrigeration CP - Pneumatic ControlsCH - Hydraulic Controls CI - Industrial SewingCE - Electrical Controls PA - BreadmakingD - Diesel SA - Sanitation

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3.19 With regard to the 'progress reports,' it should be pointed outthat PRODEMO, following IBRD instructions, prepared special forms tofacilitate monitoring of the various projects, despite their complexityand diversity as already noted. The periodicity of reporting to theEducation Division, which was originally on a quarterly basis was changedto semi-annually, based on the quality, accuracy and reliability shown byPRODEMO. In addition to the 'progress reports' just mentioned, a number ofdocuments 'rere prepared by PRODEMO and the participating agencies withrespect to terms of reference, methodology, regulations and guidelines,specific projects, and appraisal reports. All of these were submitted tothe World Bank for review.

D. Educational and Physical Aspects

3.20 We can assert that the results obtained by the participatingagencies have been excellent at all centers that were built and equipped,mobile units, and mobile actions already under way. Some recently com-pleted units are operating with only two shifts, the night shift havingbeen suspended temporarily because of the economic crisis; nevertheless,annual enrollment stands at approximately 10OZ of the projected figure.Once the country's economic difficulties have been overcome, it isexpected that within on. year annual enrollment will substantially exceedthe number estimated in the appraisal.

3.21 The following contributions of the SENAI project to thatinstitution are worthy of note:

(a) its physical netwcrk acquired a new dimension because of thecenters built or expanded;

(b) new possibilities were opened for better service to firms.Already in 1984, despite the financial constraints of severalregional departments which could operate with only two shifts,SENAI handled 25,461 new enrollments with these new centers;

(c) centers were established in regions where demand for vocationaltraining had been needed the most;

(d) equipment was allocated to centers with more pressing needs;

(e) the acquisition of modern equipment allowed the introduction ofnew technologies in its training courses. This factor, coupledwith the suitable preparation of instructors, prompted a substan-tial improvement in the productivity of the firms that were servedby SEMAI;

(f) according to information gathered in the regional units whichregularly monitor their trainees, nearly all were placed in thelabor market after completing their training programs; and

(g) the noteworthy improvements in the equipment furnished to thecenters have permitted the transfer of technology to firms. Thishas been happening in Goias, Rio Grande do Sul, Mato Grosso, MatoGrosso do Sul and other states with great success.

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3.22 The SENAC project has produced the following benefits for thatagoncy?

(a) construction of multipurpose coumercial training centers locatedin strategically defined cities based on labor market needs;

(b) better utilization of resources through the expansion of othervocational training units located in the country's North andNortheast regions.

(c) Equipment and furniture for the vocational training centers built,and establishment in all DRS and DES of training centers for thearea of data processing, as well as installation of a videocassette production unit;

(d) the positive impact of the changes in the project can be seen inthe increase in annual enrollment, projected at 14,500 traineesbut actually reaching 66,084, i.e. 4552 greater (1984).

(e) as to the benefits obtained by the agency through the developmentof manpower resources in the form of training and technical assis-tance, the following are worthy of note:

- implementation of an appropriate methodology for servingneedy populations;

- establishment in DRS and DES of occupational guidancecenters;

- preparation of the 'curriculum planning guide' for the areasof hotel services, health, office work and tourism;.

- preparation of the hotel and tourism master plant

- revision of manuals, forms and administrative procedures;

- adjustment of the program-budget to the situation of SENAC;and

(f) with regard to the experience of study tours abroad, the fellowsnot only established contacts in regard to future technical co-operation agreements, but also learned about trends and prospectsin the development of vocational training techniques and methodsthat enhance the value of our programs, with a direct impact ons

- redefinition of the areas of activity of the institution;

- introduction of curriculum modules;

- Introduction of individualized instruction;

- preparation of Instructional materials following the "CBC"and 'instructional module" methods;

- planning of 'audiovisual resource' units (Laval Laboratory).

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3.23 Both SENAI and SENAC entered a new field with the inauguration ofdata processing courses. SENAI is engaged chiefly in equipment repair(hardware) while SENAC is concerned with the use of equipment and program-ming (software). The labor market for these occupations at the presenttime is promising, with Brazilian firms expanding rapidly and generatingmany direct and indirect jobs.

3.24 FUNDACENTRO, lacking previous experience in many of itsspecialized laboratories, made a great effort to fulfill the originalobjectives of its varied and sophisticated courses. As the equipment --all of it imported -- arrived at the centers, it was installed and thecourses were begunl the laboratories were not completely installed untilthe end of the project, due to the imporc issues already mentioned. Annualenrollment reached 30S of the projected number in 1984. It is expectedthat within not more than one year the National Headquarters/TrainingCenter and the regional centers will be able to meet the country's needs,serving the enrollment envisaged in the project. FUNDACENTRO plans toenter into agreements with South American countries to upgrade its staff inoccupational safety and medicine through seminars, internships, courses,etc., using the facilities of the National Technical Center in Sao Paulo.A Technical Cooperation Agreement was signed with ILO for this purpose.

3.25 At the initiation of the project SENAR had problems in setting upits mobile units because of administrative red tape in the approval ofschedules for hiring technical and administrative staff. The issues wereovercome and studies were implemented with the direct participation of theBank; the mobile units became mobile operations with a nearly 152 increasein the number of places to be filled. The third stage of the SENARproject was implemented toward the end of 1984. Present enrollment is 74Xof the original projection, with satisfactory results. This permits us toconclude that the improved training of rural workers is beginning to bereflected in the increased production and greater productivity of Brazilianagriculture. Full operation of the mobile actions is expected in one year,reaching the annual enrollment of about 500,000 trainees indicated in therevised plan.

E. Trainina of Instructors. Specialists, and Administrative Staff

3.26 SENAI and SENAC together trained 1,964 instructors -- three timesthe number projected -- in courses averaging three months, either at theagencies themselves or under agreements with training institutions. Thetraining programs, with the prerequisite of at least the equivalent of asecondary education, have as course content pedagogical aspects andtechnical upgrading or adaptation, depending on the type of activity andthe area of study. The results of this training were so significant thatSENAT and SENAC have been setting up medium-term programs to recycle itsstaff instruc:ors. In the specific case of SENAI, a special methodologywas developec by the agency with the advisory support of PRODEMO, to traininstructors in r4urses at training centers. They consisted of 240 hours inthe first phase on methodological aspects, and 870 hours of off-sitecourses in the areas of technological content, technical design and mathe-matics with monitoring and supervision by specialist staff.

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3.27 SENAR trained 2,931 instructors in manpower training programs,this project was included in the amendment of January 21, 1981. Thequality of the instruction provided by the agencies participating in theprogram has been very good because of the excellence of the physical faci-lities, equipment, and level of their instructors. SINE trained 2,525professional staff, the number determined in accordance with its presentneeds. Agreements were made witni specialized institutions to provide theinitial training necessary and sufficient to carry on its activities. Thenumber trained was 100% of the number planned, meeting all of the agency'straining requirements for its technical and administrative structure.

F. Research and Studies on NanMower Issues and Methodology

3.28 This subproject, partially financed under the loan agreement, wasimplemented through various agencies whereby they signed agreements toconduct a variety of research to identify problems in meeting the objec-tives of the Secretariat and the National Vocational Training System.The appraisal originally called for research responding to the needs andcharacteristics of the Brazilian labor market in the three main economicsectors. Besides the studies originally contemplated, another sevenresearch projects were done on such aspects ass social impact of techno-logy; information system on the outputs of the National Vocational TrainingSystem; statistical data for the Vocational Training System; documentationlnd communication subsystems; employment, unemployment and vocationaltraining; fiscal incentives for vocational training; and labor market andvocational training.

3.29 Based on the ongoing interest of the agency in conducting studiesand research in the technical and administrative areas relevant to itsneeds, the SENAI/IBRD/Ministry of Labor agreement included the project for"Evaluation of Tndividualized Instructional Methodology' adopted by theRegional Department of Rio de Janeiro. The study was undertaken by SENAItechnical staff with the assistance of Brazilian consultants (48 manlmonths). The main objectives achieved through the new strategy may besammrized as follows:

- Consideration of the individual characteristics of trainees;

- Disassociation of the individual's rate of learning from thegroup's rate;

- Acceleration of training as each trainee develops his own rateof learning;

- Improvement of training, chiefly through effective indivi'ualevaluation in the teaching-learning process;

- Better use of time and space allocated for training;

- Increase in the number of enrollments and completions, in partthrough a reduction in drop-outs;

- A continuous flow of trained individuals to the labor market;

- Reduction of training costs (Annex III).

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G. Technical Assistance

3.30 The technical assistance program included the services ofBrazilian and foreign consultants specialists, fellowships for studyabroad, an international seminar on employment, and an assessment of theindividualized instructional methodology. The technical assistance programwas funded in part by UNDP/ILO for a total of US$1,500,000, paying the costof consultants for the Secretariat of Manpower, SENAR, FUNDACENTRO andSENAI. The technical assistance project carried out by the agenciesparticipating in PRODEMO exceeded the appraisal estitmates by 21S.The agencies achieved the following results:

SENAI

3.31 The SENAI project for fellowships abroad was included in theprogram by the amendment of October 4, 1983, with a total of 89 manimonths.The objectives of these fellowships were:

(a) upgrading of educational guidance personnel;

(b) program for t.aining of specialists in the food processing sectorfor production of canned foods and quality control;

(c) advanced training of specialists in educational technology anddata processing;

(d) advanced training of specialists in industrial instrumentation.

The fellowships for objectives (a) and (c) were carried out at the SanDiego University Foundation (USA) and those for objectives (b) and (d) atthe Association Francaise uour le Develogpment International des FormationsTechnoloRigues (IUT) (France). Besides the fellowships, SENAI performedthe research nentioned in paragraph 3.29 and Annex III.

SENAC

3.32 The SENAC project for fellowships abroad was expanded significant-ly (3432) in response to the need for training of high-level staff with avie6 to the adaptation of SENAC to new technologies and methodology. TheSENAC international fellowships were conducted in nine countries (UnitedStates, Europe and Latin America) in the following areas:

- Vocational training and employment policies

- Planning of vocational training

- Methodology of vocational training

- Occupational placement

- Training of trainers.

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SENAR

3.33 Originally set at 95 man/months, the scope of fellowships abroadwas reduced to 30 man/months by the amendment of October 1983; 49 manlmonths were carried out. Tne types of fellowships originally envisaged inthe project were study tours and intensive courses. On the basis ofinformation obtained from the study tours undertaken during 1980 and 1981,SENAR decided for the second stage of project execution to provide forinternships that would permit the observation of concrete situations,discussion of them, and controlled applications with a view to the deve-lopment of ideas and general principles concerning what had been observed.The fellowships were carried out in 13 countriess Costa Rica, Honduras,Guatemala, Mexico, Venezuela, Colombia, Peru, Chile, Ecuador, Italy,Switzerland, Israel and Ivory Coast.

SINE

3.34 The original goal of 82 man/months was decreased to 56 man/monthsin October 1983, and the amended objective was exceeded. Implementation,which began on a small scale in 1980, was stopped up in 1983 and completedin 1985, thanks to the October 1982 contract for technical assistancebetween SES/Ministry of Labor ane the Industrial Relations ResearchInstitute of the University of Wisconsin (USA). This contract coveredfellowships for study a6road as well as carrying out courses and seminarswith foreign specialists. The implementation of this last sub-projectreached its greatest intensity in 1983. The original goal of 48 manlmonths was changed to 25 man/months in October 1983 and was met in full.

FUNDACENTRO

3.35 FUNDACENTRO's program for fellowships abroad was one of the mostimportant accomplishments of the project, enabling staff to receiveadvanced training in the critical areas of occupational e&fety andmedicine.21 All of the fellowships were directly related to the work ofthe fellows in FUNDACENTRO and were carried out at institutions in variouscountries and at the plants of the manufacturers who equippedFUNDACENTRO's laboratories. The overall results for the agency can besuarized as follows:

- Exchange of experience with other agencies facing similarissues in the development of their activities.

- Study of similar legislation to identify aspects that can beapplied in Brazil.

2/ The Borrower notes that the training of of FUNDACENTRO's professionalstaff and the equipping of their facilities enabled them to conduct1,700 courses and reach 34,000 workers directly between 1980 and 1985.See Attachment II.

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- Contracts with international agencies operating in the fieldof accident prevention, both in direct interactions with

firms and through training, facilitating the future exchangesof information.

| _ Updating of technical know-how.

- Consolidation of a team of high-level professionals respond-ing to the objectives of the agency.

! Acquisition of bibliographical materials of great value anddifficult by any other means.

Secretariat of Manpower - SMO

3.36 The original goal was 30 manimonths, but was increased by the*fi amendment of Octobor 1983 to 34 manlmonths. Implementation was very slow

in the beginning, the program was carried out almost entirely in the yearsthrough 1985. The fellowships were Implemented in seven countries (Italy,Switzerland, France, Spain, England, Germany and the United States) andconcerned the following areas of studys

- Research and planning of vocational training

- Organization and performance of vocational training systems.

Table 3. Technical Assistance

Aaencv Planned Actual 2

SENAIMethodological evaluation 48 h/m 48 hlm 100Fellowships abroad -- 89 him

SENACFellowships abroad 30 hIm 103 h/m 343

FUNDACENTROFellowships abroad 93 hIm 78 h/m 84

SENARFellowships abroad 95 h/m 49 h/m 52

SMOFellowships abroad 30 h/m 26 h/m 87

SINESpecialists 48 him 25 h/m 52.nternational seminar 6 h/m 6 h/m 100Fellowships abroad 82 hlm 99 h/m 121

TOTALs 432 523 121

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IV. COSTS

4.1 In order to supervise and monitor project costs, PRODEMO estab-lished Its own prograsmmed control system, using its own equipment and datacards. The process proved efficient, so that PRODEMO was able to exercisestrict and accurate control over subproject costs, both in cruzeiros and USdollars, in each of the participating agencies. Table 4 compares actualcosts of the various components (projected up to December 31, 1985) withthe appraisal estimates.

4.2 Table 4 also shows that the total project cost was 17X less thanthe original estimate. In fact, most physical objectives were attained atlower than expected cost. The components with negative balances can beexplained on the basis of reimbursement procedures (which at the beginningof implementation, used a repayment rate based on the exchange rate currentat the time of repayment instead of the exchange rate current on the dayexpenses were made); and exchange rate fluctuations. Expenditures forteaching materials, research and technical assistance increased as a resultof analyses of new programs undertaken jointly with World Bank missions foradding further studies on employment and vocational training and expandingthe program of external fellowships. Technical assistance costs also roseas a result of increases in international travel expenses and allowances.Two non-reimbursable categories (Professional Services and Administration)were considerably higher because of SENAR's inclusion in these components,not anticipated in the original project; and also due to proportionallyhigher expenditures of SENAI, SENAC and FUNDACENTRO.

Table 4. Proiect Costs(in VAillions of US$)

Estimated Cost Actual Cost DifferenceItem Total Z Total % 2

Construction 39.0 42 22.7 30 - 42Furniture 4.5 5 2.2 3 - 51Equipment 31.0 34 25.2 33 - 19Technical Assistance 2.8 3 3.75 5 + 32Training- 3.2 3 2.8 4 - 12Teaching Materials

and Studies 1.5 2 4.9 6 +226Professional Services 2.7 3 2.8 4 + 4Administration 7.8 8 12.1 15 + 50

TOTALt 92.5 100 76.4 100 - 17

(i) Includes contingencle.

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4.3 Contingencies were calculated to be LS$26.1 M at appraisal, andare included in Table 4. The table shows the difference between actualcosts (projected up to December 31, 1985) and estimated costs to beUS$16.1 M, therefore only 622 of contingencies were sufficient to completethe project, in spite of the significant increase in physical ob4ectives.

Counterpart Funds and World Bank Financinz

4.4 Pt appraisal, the US$32 M loan was intended to .inance 352 of thetotal project cost (US$92.5 4). The amendment approved on October 4, 1983lowered the total project cost to US$76.4 M, so that Bank financingincreased to 422 (see Table 5).

Table 5. Counterpart Funds and World Bank Financing

* Estimated/Estimated Cost Actual Cost

Source Total 2 Total %

Counterpart Funds 60.5 65 44.4 58

World Bank Financing 32.0 35 32.0 42

TOTAL: 92.5 100 76.4 100

4.5 With the October 4, 1983 amendment, World Bank financing forCategory 1 (civil works, furniture, staff training, research, teachingxmaterials and professional services) rose from 352 to 57X. For Category 2(equipment), it rose from 262 to 732 for domestically manufactured goods,remaining unchanged for imported goods (1001). The percentage forCategory 3 (Project Unit salaries and technical assistance) also remainedunchanged. The changes in the levels of World Bank financing were a deci-sive factor in the achievement of project objectives during the timeremaining for its execution (from October 4, 1983 to June 30, 1985). Inparticular, it should be noted that in practically six years (from April 5,1978 to December 31, 1983) 502 of the loan was disbursed. In the remainingtwo years, 482 of the loan was disbursed. The measure enabled totalcounterpart funds to be reduced and adjusted to match the fall in the valueof the cruseiro.

4.6 In addition, the opening of the Special Account (amendment ofDecember 14, 1982) expedited reimbursements, improving dash flows in SENAIand SENAC and budget execution in organizations directly administered bythe Government. Repayments also became more regular because the exchangerate applied was that current on the day bills were paid, whereas theprevious system used the exchange rate of the day funds were transferred bythe World Bank.

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A. Unit Area and Cost

4.7 Table 6 shows that unit area for SENAI remained practicallyunchanged from that planned (+111). For SENAC it differed by -251 becauseof the features of the new CFPs (Commercial Training Centers) with othertypes of vocational training courses requiring less area per student.The area of the FUNDACENTRO project was increased in its final versionbecause of the construction of garages (in compliance with municipalregulations) and an increase in administrative facilities (+77S), thelatter being financed entirely by the organization itself.

4.8 Actual unit costs were all lower, for the reasons already given;i.e. the progressive devaluation of the currency, and the initial system ofreimbursement, which used conversion rates much higher than those applic-able on the days that payments were made. It should be po:5nted out thatunit costs in the column headed 'Appraisal' in Table 6 include physicaland price contingencies, and that these were overestimated, especially forSirHAR, where the cost of equipment per student was also overestimated. Asregards SENAC, the costs of civil works, furniture and equipment were over-estimated. On average, unit costs are about 37X lower than at appraisal.

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| j1 ] - - i~~~~~I. .4 a a

g {- p | | B~-

ii .4^'

~I -

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B. Overating Costs

4.9 Operating expenditures differed from one participating agency toanother:

4.10 SENAI: This is a semi-autonomous entity with a separate budgetfor each regional department. It faced special problems because someRegional Departmenats -- as a result of the economic crisis -- were forcedto reduce the number of evening courses offered. This affected actualenrollment levels compared with the appraisal estimates for each project.However, the increases resulting from amendments to the project (affectingmobile units and CFPs constructed and equipped, or oniy equipped) caused anadjustment of the appraisal objectives, with actual performance 33Z higherthan projected.

4.11 SENAC: This is a semi-autonomous entity with a separate budgetfor each regional department. Its position was quite different from thatof SENAI. The replacement of the very high-cost hotel training schools,with their low enrollments, by low-cost and high-enrollment CRPs meant thatin spite of the economic crisis, appraisal objectives were exceeded by4552.

4.12 SENARt This agency is administered directly by the Government,and affiliated with the Ministry of Labor, from which it receives Itsbudgetary allocations. The funds provided over the period were reasonablysufficient to cover operating costs. The reduction in enrollments (74Z ofthe estimate) was mainly due to the Government's restrictions on hiring(which applied throughout the civil service) and the delay in preparing themobile units and making them operational.

4.13 FUNDACENTROt This is a legally constituted semi-autonomousfoundation, with a budget funded from industrial accident Insurancepremiums and contributions from the Ministry of Social Security and othersources. Enrollments were much lower than forecast (301 because thenational financial crisis reduced the agency's revenue. Over the periodresources were adequate to cover personnel costs and overheads, but itsoperations had to be reduced.

V. INSTITUTIONAL PERFORMANCE

5.1 The performance of the participating agencies varied according totheir different operational and structural characteristicst

A. SENAI

5.2 Management of this organization is completely decentralized, andthe results achieved in its subprojects were exceptional, as follows:

(a) planning of the various units with respect to architecture,engineering, equipment specifications and furniture was imple-mented according to the revised schedule;

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(b) instructor training programs employed the agency's own methodo-logy, which is up to par with international standards acceptablefor vocational training;

(c) criteria governing competitive bidding procedures for civil works,equipment and furniture were sound and precise;

(d) the Director General and Regional Directors were cooperative andreadily complied with PRODEMO guidelines and regulations; and

(e) there were delays in the submission to PRODEMO of documentationrelating to expenditures incurred (i.e., for equipment, furnitureand civil works), necessary to process reimbursement requests.

B. SENAC

5.3 This is an administratively centralized organization. Its perfor-mance in implementing the various subprojects was average.

(a) difficulties and delays affected planning of its units with regardto architectural and engineering designs, equipment specificationsand furniture;

(b) projects for instructor and technician training were implementedadequately although execution schedules suffered substantial over-runs;

(c) although appropriate bidding criteria were applied for civilworks, equipment and furniture procurement, the lack of experienceon the part of administrative staff caused extraordinary delays inthe dispatch of documentation to PRODEMO, in most cases; and,

(d) submission to PRODEMO of documentation on payments (for civilworks, furniture and equipment) necessary to process reimbursementrequests, was excessively delayed, except in the final months.

C. SENAR

5.4 SENAR is an agency administered directly by the Government throughthe Ministry of Labor. The following serious problems affected implementa-tion of the subprojects:

(a) delays in appointirZ technical and teaching staff caused a three-year overrun in project execution;

(b) changes of Director General (six different appointees duringproject implementation) produced delays and a lack of administra-tive continuity;

(c) because of these delays, budgetary allocation for FY78179, FY80181and FY82 were not utilized;

(d) administrative, bureaucratic problems typical of governmentagencies, aggravated by partisan political considerations, delayedidentification of site location for the centers and agencies, andtheir installation;

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(e) excessively cent-alized decision-making processes hampered projectImplementation;

(f) the lack of adequately trained technical staff (particularly as itaffected the instructional resources subproject) led to delays andunsatisfactory execution;

(g) although appropriate criteria were applied to bidding proceduresfor equipment and service, the lack of experience of technical andadministrative staff in procurement matters caused delays in theforwarding of documentation to PRODEKO in most cases;

(h) the lack of experience of the staff of the centers and agenciescaused problems in the receipt and utilization of equipment; and

(i) instructor and technician training projects were implem-.tedaccording to the revised schedule.

D. FUNDACENTRO

5.5 FUNDACENTRO is a semi-autonomous foundation whose performance inproject implementation was average because:

(a) the planning of the National Headquarters/Training Centerencountered difficulties and substantial delays due to the lack ofexperience and uncertainties faced by the staff, particularly withreference to the preparation of equipment lists;

(b) in spite of the technical and administrative staff's lack ofexperience, appropriate criteria were followed in the biddingprocesses for civil works, equipment and furniture;

(c) the level of accounting staff was low, causing problems in reim-bursements procedures;

(d) PRODEKO's regulation and guidelines were not observed adequatelywith exceptions and most difficulties were due to the lack ofexperience of the staff;

(f) three different Superintendents were appointed during projectexecution, and these changes caused implementation problems;

(g) there were delays in requests for reimbursements (especially forimported equipment) because of the staff's technical and adminis-trative inadequacies, and this adversely affected the success oxthe subprojects.

(h) the fellowships subproject vas exceptionally well executed, havingbeen perfectly tailored to the agency's technical needs. Thetechnical problems were solved and the technical standards of thespecialist staff were appreciably improved.

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E. Secretariat of Manpower

5.6 The Secretariat of Manpower is a government agency, linked to theMinistry of Labor which achieved above-average results in projectimplementationt

(a) the subprojects were implemented on time, and terms of referenceand research methodology were well prepared;

(b) the subproject relating to fellowships abroad was efficientlyimplemented, and in accordance with the appraisal estimate;

(c) the Secretary and Undersecretary showed themselves most willing tocomply with PRODEHO guidelines and regulations; and

(d) reimbursement procedures followed Bank guidelines and regulations.

F. SINE (National Employment System)

5.7 SINE is linked to the Secretariat of Employment and Wages of theMinistry of Labor. Implementation was affected because of the followingproblems:

(a) due to the low level of technical and administrative staff in thefirst phase, the project had to be administratively and technical-ly reformulated during subsequent administrations;

(b) certain subprojects were unsatisfactorily executed, and theirfinancial performance was below standard. As a result, unusedresources were transferred to other projects in the Ministry ofLabor;

(c) the lack of sufficient tachnical and administrative staffprevented carrying out certain subprojects, particularly withregards to staff training. Although physical execution wascomplete, the scope for a better result was prevented; and

(d) compliance with PRODEMO guidelines and regulations wa-satisfactory.

VI. CONCLUSIONS A-D RECOMMENDATIONS

A. Conclusions

Gen ral Conclusions

6.1 The annual enrollment objectives established at appraisal werefully met (see Table 2). However, during project implementation there hasbeen a 31Z increase in the number of student places built. They will befully utilized in the short term, which means a total increase in enroll-ments of 1271.

6.2 The Covenants established in the Loan Agreement 1452-BR were ful-filled, except as regards the follow-up of students.

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6.3 Physical facilities (i.e., buildings, mobile units, equipment andfurniture) are entirely satisfactory for the units' needs, both in economicterms and appropriateness for the utilization envisaged.

6.4 The five amendments to the Loan Agreement considerably improvedthe project by expanding and modifying some of its components (SENAI mobileunits, SENAR projects, increases in research and fellowships, etc.).

6.5 The project had a significant impact on the implementation of newadministrative and operational polhcies affecting both establishment of theNational Vocational Training System and also the participating agencies.

6.6 The project enabled the participating agencies's vocationaltraining activities to be expanded, especially in the poorer regions(North, Northeast, and Center/West), and particularly in the cases of SENACand SENAR.

6.7 The project contributed significantly toward improved vocationaltraining standards by introducing new teaching methodologies, providingmore technologically up-to-date equipment, improved technical qualifica-tions of instructors and experts through specialized training and fellow-ships for study abroad.

6.8 The physical and prices contingencies estimated at appraisal forcertain categories of expenditure were overstated (by 39.22, but thissurplus enabled project objectives to be achieved and expanded.

6.9 Because of constant devaluation of the cruzeiro, serious problemsarose with the administration of the annual budget allocations, which areset eight months in advance and calculated in US dollars converted tocruzeiros at a single average rate (the 'fiscal' dollar). The averagereimbursements rate was at all times higher than forecast in the budgets,producing lower expenditures in term of US dollars.

6.10 The Special Account held by the Central Bank enabled reimbursementfor expenditures up to the US$1 M limit to be more flexible and expedi-tious. When disbursement requests speeded up and their volume increased atthe end of 1984 and beginning of 1985, there were substantial processingdelays because the amounts requested often exceeded the balances in theaccount.

Specific Conclusions

6.11 The following conclusions can be drawn from the performance of theparticipating agencies in executing their projects:

SENAI

(a) the secondary-level vocational training system was expanded by65,183 m2 of new construction, representing the 15 new centersbuilt, covering 11 states. This represents an increase of 8,100student places, including the mobile units;

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(b) services were improved in those regions lacking CFTs by thedeployment of 102 mobile units consisting of appropriate vehiclescarrying up-to-date equipment, furnishings and instructionalmaterials;

(c) at the secondary level, there was an expansion in certain types ofvocational training already being provided by the agency andimprovement of other types of instruction as a result of theintroduction of new and modern equipment. Examples of these areinstrumentation, breadmaking, basic sanitation, computers (bothhardware and software), and others;

(d) instructors were properly trained not only in te_;ching methods butalso in technological aspects of their work;

(e) the new mobile units extended the range of available forms ofvocational training;

(f) properly trained instructors substantially raised the standardsamong trainees completing the courses;

(g) subsidies in the form of international fellowships obtained by theagency's staff enabled them to develop new t$chnologies in thefields of nutrition, information systems, educational guidance andinstrumentation; and

(h) the know-how acquired while constructing mobile units of the mostup-to-date kind has provided an opportunity for the transfer ofthis technology to other organizations in Brazil and abroad.

SENAC

(a) the vocational training system serving the tertiary sector wasexpanded by 28,098 m2 with the construction of nine new CFPs andalterations and extensions to eight existing CFPs, thus creating6,092 new student places;

(b) human resources training centers, providing instruction ininformation systems, were established in all Regional Departments.The teaching and learning process was improved thanks to theinstallation of a videocassette production unit attached to theNational Department;

(c) the implementation of subprojects for training technicians andinstructors and those providing international fellowships producedthe following results:

- the agency's area of activity was redefined- a modular form of curriculum was introduced- individualized instruction was introduced- teaching materials were prepared following the CBC and

"instructional module" methods- audiovisual resource units were established (Laval

Laboratory)

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an appropriate methodology was introduced to attend the needsof marginal and poor communitiesemployment guidance centers were established in regionaldepartments and districts (delegacias)the Curriculum Planning Guide was prepared for hotel andcatering, health, office services and tourism tradesthe master plan for the hotel and catering trades and tourismwas preparedmanuals, forms and administrative procedures were revisedthe program-budget was adjusted in line with SENAC's presentsituationthe replacement of the hotel training schools by theconstruction of new centers ard the alterationlextension ofexisting centers (14), together with the introduction of newmethodologies, improved the development plans for the hotel,catering and tourism programs.

SENAR

(a) the revised approach to training by means of mobile actions on thepart of centers and offices located within all the Federation'sConstituent Units will permit annual enrollments to be increasedin the short term to 125% of the appraisal estimates;

(b) the specific methodology for rural vocational training wssimproved through the training of instructors, preparation ofinstructional materials, and purchase of appropriate equipment;

(c) the establishment of centers and offices to provide logisticssupport made vocational training more flexible by increasing themobility of instructors, equipment and instructional materialsgand

(d) the delays in the implementation of the SENAR project arediscussed in para. 5.4 above.

FUNDACENTRO31

(a) the establishment of the National Headquarters/Training Center(11,650 m2) and the regional centers was a decisive factor inreducing the number of occupational accidents in the country,11.6% in 1976 to 3.84% in 1984;

(b) with the construction of the national headquarters/trainingcenter, the project provided FUNDACENTRO with its physical facili-ties. It also revised its technical and administrative structure,greatly assisting it in carrying out its activities by providingit with laboratories, classrooms, lecture halls and otherfacilities;

(c) the international fellowships program which was drawn up to servethe specific needs of the agency's technical staff, providedsolutions to the problems of utilization of laboratories,

3t Relevant Borrower comments appear as Attachment I.

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maintenance, and operations concerned with heslth care and safetyin the workplace; and

(d) the technical quality of the agency's laboratory equipment, itslibrary and other resources, have fostered close cooperation withuniversities throughout Brazil in the joint study of problemrelated to health and occupational safety in the workplace, one ofits functions is to certify the quality of protective equipment.

SINE (National Employment System)

6.12 The technical and administrative staff of SINE, both at head-quarters and in the states, was upgraded by means of training programs,international fellowships and the use of external consultants.

SMO (Secretariat of Nanaower)

(a) the National Vocational Training System now has available anextensive body of research and studies to guide its policy-makingprocess and allow it to make its decisions more systematic andreliable. Particularly note worthy is its research of"Employment, Unemployment and Vocational Training," which could beput into permanent use through the annual processing of data inRAIS (Annual Social Data Report);

(b) the subproject of international fellowships enhanced theSecretariat staff's technical and supervisory capability;

(c) the technical assistance project providing specialists andconsultants through UNDP-ILO strengthened activities in thefollowing areass

- manpower training policies- system organization- vocational training in firms- social development- occupational certification- vocational information and guidance

costing and financing

B. Experience Acquired

6.13 The experience acquired during project execution should bemaintained and applied to future projects:

(a) a determining factor in the project's success was the administra-tive and technical continuity maintained within the PRODEMOExecutive Directorate: most of the personnel that began operationsin 1978 remained in their positions;

(b) the Special Account (opened in accordance with the December 15,1982 amendment) should have been established when reimbursementsbegan to be claimed, and its ceiling adjusted to match changes inthe project;

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(c) the agencies participating in the project and possessingtechnical, teaching and financial autonomy were better able toimplement subprojects than the Government agencies dependent onreooeiving their allocations from public budgets;

(d) if loan agreements include provision for technical assistance frominternational organizations, project units should be more involvedin monitoring and supervisiAg such activities;

(e) construction plans and plans for furniture and equipment procure-ment should be more closely coordinated, so that bidding proce-dures can provide for the simultaneous purchase of items withidentical specifications;

(f) the ceiling originally approved by the World Bank for packages(US$50,000) was inadequate and prevented a more agile implements-tion of the project, consequently it had to be raised (althoughthis was uot approved until April 4, 1985);

(g) organizations in process of being established (e.g.,SENAR) cannotbe expected to carry out large-scale projects since they lack thenecessary infrastructure;

(h) agreements should not contain conditions that cannot be fulfilledduring the implementation period (e.g. the follow-up of students);

(i) the requirement of international competitive bidding for civilworks should be eliminated from future loan agreements. However,local bidding for vehicles and furniture should be retained.

C. Recommendations

6.14 The project implemented in accordance with the appraisal plan,only partially strengthened the agencies participating in the NationalVocational Training System, and should be continued through projects toincrease opportunities for manpower training, in line with Brazil's currenttechnological level and its likely development. To this end, the followingrecommendations are made:

(a) new SENAC vocational training centers 'CFRs) should be built,together with SENAR centers and agencies and FUNDACENTRO regionalcenters;

(b) the SENAI centers should be equipped and re-equipped with state-of-the-art technology. SENAI, SENAC and SENAR should be providedwith mobile units, in light of SENAI's successful experience.SENAR1s vehicle fleet should be renovated;

(c) the teaching and technical staffs of SENAI, SENAC and SENAR andthe Secretariat of Manpower should be upgraded and strengthened bycontinued training. Resources must be increased considerably inorder to satisfy the need for training in advanced technologies;

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(d) the international fellowships program should be continued withsubstantial increases in financing for short course, longer(graduate) courses and others;

(e) study and researches subprojects should be continued, and thefindings continuously updated;

(f) the executing agencies should establish their own superviworyunits to coordinate and execute subprojects in-house, keepingclose and regular contact with the central Project Unit;

(g) the exchange of information between the Project Unit and IBRDshould be facilitated with visits to IBRD headquarters at leasttwice a year;

(b) IBRD should agree to amendments to agreements within a reasonabletime period in order to avoid delays in the start of projectsprepared by the participating agencies;

(i) price contingencies in new projects should be reduced to reason-able limits;

(j) proposals should be made to 'he Government for SENAR to beofficially granted financial, administrative and technical auto-nomy, detaching it from direct administration;

(k) IBRD comments and suggestions on project implementation be basedon a more thorough analysis of the Progress Reports; And

(1) the composition of the technical staff in the Supervisory Unitshould be modified, adding more emphasis to vocational training.

als Lui: Gonzaga FerreiraExecutive Director

PRODEMO

Btazil - Loan 1452-BR - Irplementation and DisbursementSchedulet Planned And Actual

(in millons of US$)

1. Construction - I I u

Landt -------Selection and Studies I

Design and Biutdifnf 4_ _ 7

Execution n

2. Equipment and VI I

Furniture

Basic List and Bidding ~ I _

Delivery and InstallationI

3. Technical Assistance I

Execution ______I

4. Training, Teachin,g I g

Mater$als and Studies

Execution I .I

SML y WE 1 I

-miiiieplanaed (Rupl_nmtloe sarne,*a ca.sFcAl! CLOSI AEIa..'.77.1977RQ4 LD DT M AL

- ActUal (W1_.wttIeA ,. 1*. loft

-n Plannnd (DO1buwe.int) WTIW OAT5

-AXct|ul (DlbUiS_UAt) ArIB r.17S

- 56 -

ANNEX II

Brazil - Loan 1452-BR - Secretariat of Manpower (SMO)Research and Studies on Manpower Issues

and Methodology

Execting hoginning End BudgetResearch ~~Agency (Crsl,e)

01- Demnd for Manpower OndVocational Training Nedc In SEcAI

the Secondary Sector ON 24.10.78 23.10.79 14.233

02- Deound for Manp*owr OndVocational Training Heods in sow

tho TeOrtiar Sector ON 24.10.78 23.10.79 10.504

gS- Vocational Training In thePrincy SectorP Assesment F6N 30.11.79 30.04.81 6.063

Of Needb and Opportunties-4- The Social Impact of

Technology UFPE I5.07.83 30.09.84 34.00005- Production of SoftwOre for

the Information SubsystmRelating to the Esablishment FURNAD

of SNPMO (the National Voca- USP 31.08.83 31.12.83 80.000

tional Training Sy etm. FUINA8a- SHFMO Statistical Doat USP 28.06.84 15.12.84 272.000

Subsystemioan o"IeSEA

08- 5,Doument.Uemtyen F 29.06.84 30.03.85 146.250

and Vocatitonal Training OATANEC 20.08.84 31.12.84 1.548.994

09- Fiscal Ineontives for VoCs- FUIAOtional Training USP 28.06.84 31.12.84 42.000

W1 The Formal Lalior Mhrket and FUNADVocational Training USP 30.07.84 28.02.85 902.530

11- Appropriate MIechanis forBringing the Doumentationand Counications Subsystem SENIU

into Operation OF 20.06.85 10.12.85 292.000

SENAI __

a1- Asse^ssent of indi,idualied 1 +Instruction Meodologynulnt 01.04.78 01W04.79 USS 1S4.000

In US11.3/ In USI.

- 57 -

ANNEX III

Brazil - Loan 1452-BREmployment Services - SINE

Staff Training

Duration

Number (in bou)

Position Planne Actual Venue Ttio± Av nlad

25 62 Brasilia 30 30Program Chief

Promoter 25 63 grasilis 30 30

Research and AnalysisAssistant 100 357 Regional 30 is

Administrative Assistant 25 192 Brasilia 18 16

Agency Chief 25a 263 State 30 18

Social Assistant 250 183 States 30 18

Training Specialist 250 364 States 30 18

Placement Specialist 900 534 States 30 18

Accountant 700 410 States is 12

Other --- 120

T 0 T A L 2.525 2.s48 --- --

Brazil - Loan 1452-BR - Technical AssistanceSpecialists Services

TOTAL 197? 1978 1979 1980 1901 1982 1983 1904 19"5

AGENCY YA - - -- - - -

ii~ C. Aa n- | . t - n. |C. MT-. - _. #a. K. A- | f. tn. | AC.

.SEIAR 1)0 14 09 _ 44 12 35 02 21 01 - - - . . . . . .

2.SIUE 48 31 03 24 6 21 - - - - - - 04 . 19 02--

3. FUNDACENTAO 66 13 )2 - 42 00 12 OS - , . . . . . . . .

4. SBCRETAtIT OF 168 141 12 - 48 06 48 28 39 48 12 25 09 34

MANPOWER

$. SCAN 48 48 46-82 4 -24 -24- - - - - - -

MNF i~ .aa .a a

Brazil - Loan 1452-BR - Technical Assistance

Fellowships

TOTAL i 1977 1 19 79 1980 I91 198? 5983 1964 1965

AGENCY PL-. n... A PL. ACT. PL. ACT . AO. n. AM. n. A. F. AC L.T P * .M

49 -- 24 - 33 19-- - - - - -06 06

INTENTIONAL 10 12 - ln --- 08 . . . . . . . o 03

*egloma1 (LATN RICA) 47 37 - 14 . 33 11 18 - - --- OS . 03

2. Sint

INTERNATIOMAL 82 99 12 - 40.- 30- 02 . . 20 - 1- 06

3. FUBSACEUTRO

INTERNATIONAL 126 7867 - 59 - 12 - - - - - 22 - IS - 40 - 01

4. SNO

S TERNATIONAL 30 26 06 -06- 06 03 06 03 06 02 -- - 10- 04 - 04

S. SEKAC

INrStRNuTIOU 30 103 06 - 06 - 06 15 06 - 05 15 - - - - - 51 - 22

6. SINAI

INTERNATIONAL - -9 - - - . . . . . . . . 39 . _

TOTAL 37444 61 SI- 3S I 87 11 12[ 24 121 35 - 22 - 145 - 1251 3

-60 -ANNEX VI

Brazil - Loan 1452-BR - ProcurementNumber and Type of Bidding Procedures

TYPE CIVIL WORKS FURNITURE EQUIPMENT

1) INTERNATIONALCOMPETITIVEBIDDING

SENAI 01 04SENAC - 02

fUNDACENTRO (1) 02 - 02

SENAR - 03

SUBToTl. 03 - f 1 -

:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2) LOCAL COMPETMTIVE'

BIDDING

SENAI (i) 16SENAC iis) 16 -

FUNDACENTRO - -

SENAR - 04

SUBTOTL 34 j - 04

3) LOCAL PROCURT;PROCEDURES I

SENAI 06 26 96

SENAC 04 19 81FUNDACENTRO - *2 10

SENAR 72

SUBTOTAL 10 47 I 259

MOTAL 47 47 274

GRAND T0T A L 368

(1I) - 1 CANCELLED (NTC- FUNDACENTRO)

( ) - 2 CANCELLED (Petrolia and Cmcari)

( I ') 2 CANCELLED (Both Rio Branco)

- 61 -

AN=] VIlPage 1 of 2

Brazil - Loan 1452-BR - SE&Is Building Areas andStudent Placess Planned and Actual

_o4 ~~~~~~Bulding S Itudent M1ITEM A-(2)a Plae-

PLAN=| ACTUAL PL^AMMI ACTUAL M C

SENAi

I -Cama;ri 2 355 3 795 240 261 10 142 -Pctrolina 2 000 1 816 150 165 13 113 -Gwa 2 365 MA 180 NA 13 NA3 -Culabi A 2 973 MA 230 NA 134 -Golania 2 479 2 640 210 212 12 13S -Serra 2707 2440 340 243 08 106 -Contagem 3 112 3 200 286 350 11 098 -Nova Jgua;u 4 751 5 640 360 327 13 179 -Barra Mansa 2 020 3 210 160 207 13 IS10 -Santos Oumnt 7070 7080 1 058 196 07 0611 -Vile Leopoldins 10 84S 11 877 1 372 1 698 08 0712 -Sapuacaia do Sul 1 800 2 11S 135 158 13 1313 -Porto Alegre 1 629 2 479 111 170 15 14113-Arac&Ju NA 4 360 NA 1500 NA 0913,4-Oourados NA 2 912 NA 288 NA 1013.5-Cerztex NA 8 646 NA 350 NA 2S

T o T A L (1) 43.133. 65.183 4 602 6 355 09 10

FUIOACENTOD

20 -NATI OA S 347 11.6SO 405 499 :13 23

TOTAL (2) 5 347 11.650 40S 499 13 23

- 62 -

ARME VIZPa- 2 of 2

Brazil - Loan 1452-BR - SENACs Building Areas andStudent Placest Planned and Actual

ITEM ARE (M ) _C

_ SENAC PPLANNED, ACTUAL PLANNED ACTUAL CT;

HOTRL-SCNOOLS:

14 -Brasilia 9.809 KA 265 KA 37 NA

15 -Florianapolis 7.809 NA 265 NA 29 NA

16 -Rio de Janeiro 7.809 MA 265 NA 39 NA

SUBTOTAL 25.427 - 795 - 32 -

EXTESIONS:

14.01-Sio Luiz - 757 - 140 - 05

14.02-Fortaleza - 1.562 - 560 - 03

14.03-Joio Pessoa - 687 140 - 05

14.04-Natal - 795 - 135 - 06

14.06-Manaus - 940 - 295 - 03

14.07-Florian6polis - 1 000 - 407 03

14.08-Aracaju - 860 - 187 - OS

14.09-Recife - 2.810 - 723 - 04

SUBTOTAL - 9.411 - 2.587 - 04

14.05-MUceor - 2.759 - 390 - 07

15.02-Uberaba - 1.984 - 340 - 06

15.03-Rio Branco - 1.403 - 195 - 07

15.04-Goiania - 3.31 - 89S - 04

15.07-Montus Claros . - 1.984 - 400 - 45

15.08-Itajubi - 1.660 - 180 - 09

17 -Porto Velho 1.404 2.026 165 195 08 10

18 a Macapi 1.404 2.026 s65 19S 08 10

19 -Campo Grande 1.404 1.462 165 165 08 09

SUBTOTAL 4.212 18.687 495 2.955 08 06

tOTAL (3) 29.639 28.098 1.290 5.542 23 OS

GlUAD TOTAL (1)(2)(3) 78.119 104.931 6.297 12.39 12 08

- 63 -

ANMgg VtiIPage 1 of 2

Brazi1l - Loan 1452-BR - SENAlt Construction Costs andCoats pe* t Planned and Actual

I ~~us$ 1000 us IITEM

PLAND ACTA PLtED l; A

SENA I1- Camnari 711.2 796.6 302.0 209.9

2- Petrolina 588.2 470.6 294.1 259.1

3- Gma 658.8 NA NA NA

3- Cu1abi NA 668.% NA 224.8

4- Vila Can&i 690.5 454.S 27?.5 172.2

5- Serra -774.3 781.5 286.9 3204

6- Contagem 890.2 556.0 286.0 173.8

8- Nova Igua;u 1,3S9.0 1,250.7 286.0 - 221.6

9- Barra Manse 577.8 778.7 286.0 242.6

10- Santos Oumont 1,853.8 2,167.7 262.2 306.2

11- Vila LeopolMin 3.021.2 2,595.8 278.6 218.6

12- Sapuacia do Sul 514.9 293.3 286.1 138.7

13- Porto Alegre 465.9 456.4 286.0 184.1

13.3-Arwcaju 1,001.4 NA 2W9.7

13.4-Gouradol 528.8 NA 181.6

13.5-Certtox 1,694.5 NA 196.0

T ° T A L (1) 12,105.8 14,494.7 280.7 222.4

FUNOACENTRO

20- C.t.t. 2,177.3 3,025.4 407.2 259.7

T 0 T A L (2) 2,177.) 3,025.4 407.2 259.7

- 64 -

ANE ItI

Page 2 of 2

Brasil - Loan 1452 - BR - SENACC..-Construction Costs and Costs Per m

Plam.. i and Actual

_ .. ~~~~~~~US$ 1000 1Us$meITEM § .

SENAC PLANIED ATLALAN ACTUAL

HOTEL-SCROOLS:

14 -BrasTlia 4,057.8 NA 413.7 NA15 -Florianipolis 3,902.4 NA 499.7 NA16 -Rio de Jan.lro 3,902.4 NA 499.7 NA

SUBTOTAL 11,862.6 - 466.5 -

EXTENSIONS:

14.01-Sio Luiz - 162.0 - 214.0

14.02-Fortaleza - 2.9 164.414.03-Joio Pessoa - 150.0 218.3

14.04-Natal - 2s3.1 305.814.06-Manaus - 240.5 255.9

14.07-Florianipolis - 262.3 - 262.314.08-Aracaju - 138.7 161.214.09-Reeife - 692.0 246.2

SUBTOTAL - 2,145.5 227.9

NEWl:

14.05-Macei6 - 38.2 -195.1

15.02-Uberaba - 322.2 162.415.03-Rio Branco - 284.1 - 202.4

15.04-Goiania - 552.4 - 163.3

IS.07-Montes Claros - 125.6 - 63.3

15.08-Itajubi - 195.4 - 117.7

17 -Porto Velho 419.8 477.2 299.0 235.518 -Macapi 335.8 296.8 239.2 146.519 -Cuapo Grande 419.8 243.8. 299.0 166.8

SUBTOTAL 1,175.4 3,035.7 279 162.4

TO T a L (3) 13,038.0 5,181.2 440 184.4

GRAND T O T A L(l)(2)(3) 30,809.0 22,701.3 394 216.3

BUAZIL: LOAN 1452-BR: VOCATIONAL TRAININM PROJECT

CIVIL WORKS: SENAI

COST PER m2 PER STUDEIT PLACE

BUILDING m2 STUDENT PLACES CONSTRUCTION COST (US $19000)

*WeIs.8, AREA A~oi~a5 ACTUAL L ACTUAL us$ 1US$/STUDENT PIACE- wtosol AM IFF AWrisal ACT-UL | Appri ACTUAL % ,ACTUAL

.~~~~~~~~~~~~IF _ . 'ee A_L%AaseoC

01 2.355 3.795 61 240 261 9 618.4 796.6 29 0.26 0.21 20 2.56 3.05 16

02 2.000 1.816 '09 150 165 10 525.2 470.6 0 0.26 0.26 0 3.50 2.85 19

03 2.365 2.973 26 180 230 28 588.2 668.2 14 0.25 0.22 12 3.27 2.90 IIl

of 2.479 2.640 06 210 212 01 616.6 454.5 k6 0.25 0.17 '32 2.94 2.14 2t

05 2.707 2.440 1'0 340 243 29 673.3 781.5 16 0.25 0.32 28 1.98 3.21 62

06. 3.112 3.200 03 286 350 22 714.1 556.0 ? 0 0.25 0.17 '32 2.11 1.60 '411

Q2 -. .. .. 144 14 -149 .. .. .. .. .. .. .

03 4.751 5.640 19 360 321 109 1 181.1 1 250.7 06 0.25 0.22 12 3.28 3.82 01

09 2.020 3.210 59 160 20t 29 502.4 .778.7 55 0.25 0.24 04 3.14 3.76 20

10 7.070 7.060 01 *1 058 1 196 13 1 614.4 2 161.7 29 0.24 0.31 29 1.S8 1.61 IS

11 10.845 11.871 10 1 372 1 698 24 2 697.4 2 595.8 b4 0.25 0.22 '12 1.96 1.53 '2

12 1.800 2.115 18 135 158 17 447.7 293.3 34 0.25 0.14 444 3.31 1.86 '4

13 1.629 2.479 52 111 170 53 o05.2 456.4 13 0.25 0.18 '28 3.65 2.68 '21

13.1 _. _. _. _. 232 . . _ . .. .. . ..

13.2 . --. 175 _ ._ . . .. .

13.3 .. 4.360 . .. 500 .. .. 1 001.4 .. 0.23 .. .. 2.00 .-

13.4 _. 2.912 _. ,_ 288 . .. 528.8 -. .. 0.18 .. .. 1.84

13.5 .. 8.646 .. ._ 350 I -. 1 694.5 . 0.20 .. .. 4.84 ..

13.6 -_ _. -- . 1 224 .- .. .. -- ._ .. .. .. ..

13.7 .. .. 40 .. .. .. . _. ._ .. .. .. ..

TOTAL 43.133 6S.183 S 4.746 8.100 71 10.704. ? 4 494.7 35 _. .. I. .- - - .

BRAZILL: LOAN 1452-BR: VOCATIONAL TRATINING PROJECT

CIVIL WORKS: SENAC

COST PER 22 Mu STUDiTT PIACE

STM BUILDING AREA 21 STUDENT pLACE.S CONSTRUCTION COST (US $?OOO)

arcs. ATUL CTALA,r sI US$ US TUEN

pines.. ACTUAL IATUA Apfo a,S$STDETPLACEACTUA4~~~~4 I AP~~~~IUSS@I ~~ACTUAL J,,f~jjj~ ,prjo % APPOisof ACTUAL

14.1. *- 757 -IS? 140 -- - 62.0 j - 02 - -1.8 -

14.2 -- 15 - - 60 - 2S6.9- ~ ~0.16 -. -- 0.45

3 4 . 3 -- 6 0 1 - - ~~~~~~~~ 1 4 0 - 1 5 0 .0 . : f0 .2 2 - - 1 . 7 - -

14.4 its9 - - 135S - - 243.1- 0.31 - 1.80 -

14.6 - 2 759 -- - 20 - 530.2- -- 0.20 - -13

14.6 -- ~~~940 - 295 - 240.5 * -0.26 -- .382

14.1 I- 000 - 407 .. - 262.3- -0.6 - 0.64 -

14.8 860 la?-18 1- - 38.7- -- 0.26 - -0.14 .a

14.9 ~~~281 -- - 723 - - 692.0 -- - .5 - -0.94

15.1 - -. 30 0- - - -- 0.96 -

35.2 I-18 -- 324 - 322.2- -0. 16 - 1.00

11.3 -- 1403 -- , - 95- 284.1- *0.20 - 1.46-

IS.4 -- 3 383 -- - 9 - - 524 -- - .6 -- - .2 -

15.6 - - - -- 320 -- ---- -- --- OM---

11.1 -- ~~1984 - 400 - -125.6 - -0.06 - 0.31 -

3S1.8 - 1660 - 180 -- -- 19S.4.- - .1 - -30 .'

37 404 2 026 44 165 195 18 365 477'.2 31 0.26 02 e 22 .5 i

18 1 404 ~2 026 44 165 195 )8 292 296.8 02 0.21 0.1 Is Id. 17 1.52 14 t

19 1 404 1 462 04 165 165 00 365 243.8 -13 0.26, 0.17 SS 21 48 A

T0TA14L" "4,212 28o 0ow 4. f % 6,092 j- 2 5181. 2:I.. - I -.. L .ij.REIIAII: APPRAISAL ITEMS 14, 15 AND 16 FOM THIE APPRAISAL REPORT WERE CANCELLED.

BRAZIL: LOAN 1452-BR: VOCATIONAL TRAINING PROJECT

CIVIL WORKS: PUNDACENTRO

COSTS m2 PER STUDMNT PLACE

BUILDING AREA M2 STUDENT PLACES CONSTRUCTION COST (US$OOO)

ITEC US8 / mu _ S$/STUDENT PLA

Awake$IO ACTUAL Dir Axwgisol ACTUAL o"Approisol ACTUAL unAposIA~JL%A mi CUl neho = Dm ^osl ACllAL DInurohd M AlffaCsof.O ACAL __proslAMA

20

and '6 46 .6 3

S.aub 5.347 11.650 I 1 40S 499 23 1 893. 3.025.4 60 0.3S 0. 26 '26 4.67 6.0 30

r A 40 0 0IS 0.2 -'2 4.6 3

TOge,.34 160 ,I - 2 .2. .0

BRAZIL: LOANX 1452-BR: VOCATIONAL TRAIIG PROJECT

COST OF CIVIL WORKS: SENAI

MOUT--OUC ",y ADD-ITIONAL PRICElKFINALITEMT mUfCL ADJUSIMENTS COST A1IMSALA MIf4APPRI ACEI F s JR;ECr,$1,000 AHm JLM% .svr

ITEM000Pk CT $1Cr4 C.000 .00 T$,

01 618.4 39.800.0 1.100.4 2.7 31.0OS.0 78.0 71.958.4 80.8 118.2 28.8

at 525.2 11.734.0 -- -. 3.991.8 -- 1S.725.8 34.0 54.6 10.3

03 S88.2 12.565.5 .. __ .. ._ 12.556.S 0.0 80.0 13.6

04 616.6 1S.068.0 .. . 4.198.4 ,. 19.866.4 79.6 162.1 26.2

0O 673.3 25.378.S 2.028.6 7.9 16.074.3 63.4 43.481.4 71.3 106.2 11.0

06 774.1 16.453.2 2.639.9 16.0 6.616.9 40.2 2S.710.9 S6.2 218.1 28.2

0O 1 181.8 29.971.9 4.237.3 14.1 31.952.5 06.6 66.161.? 120.7 '068.9 00.6

09 502.4 21. 187.4 715.6 3.0 11.241.7 48.5 3S.144.7 S1.S 26.3 S4.9

10 1 674.4 33.733.2 6.839.6 20.3 12.382.0 36.7 S2.9S4.9 S.0 493.3 29.§

11 2 697.4 63.510.7 15.300.3 24.0 42.102.5 66.3 120.913.5 90.3 ,.,101.6 3.6

12 471.7 11.958.2 62.1 -. 4.913.9 41.0 16.961.4 41.0 154.4 34.5

13 40S.2 16.1OS.6 482.2 3.0 9.628.0 59.8 26.21S.9 62.8 51.2 12 6

13.03 ._ 149.867.1 17.790.9 11.8 125.553.9 83.8 293.211.9 95.6 .. .

13-04 .. S16.408.9 753.9 0.4 119.887 76.6 277.049.9 77.0 . _F

13.05 . 213.800.0 102.651.0, 48.0 356.719.9 66.8 673.170.9 14.8 .

+ 1nss Surplus US$ Shortfall

BRAZIL: 'LOAN 1452-BR: VOCATIONAL TRAINING PROJECT

COST OF CML WonKS: SENAC

AMD=U %lrsT Q I eoo z1b PRI,WC|#EAT QUOTO IN ~~~~ADJUSTMENTS APASLOS

ITEM A TPAIA ADDTINA PICus$1,000 cc . _ _ __ _________AM_ __

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~~~ ~~ ~~cc $1.000 a e us $i.ooo

14.01 . 54.613.1 29.534.9 54. 51.fi68e0 94.0 135.816,0 48. .. _.

14.02 .. 97.852.0 50.843.8 51. 272.759.1 278.7 42).455.0 30..6

14.03 __ 49.518.0 31.091.0 62. 187.678.0 379.0 268.287.0 441. .. .

14.04 5. 0.392.0 64.682.0 128. 528.851.0 049. 643.925.0 171. .. ..

14.05 .. 718.196.0 153.255.0 19. 57).327.0 73.4 1.502.775.0 (83. .

14.06 .. 63.166.0 ?2.742." 36. 160.62t.0 254.3 246.535.0 90. .. .

14.07 76.573.0 71.315.0 93.1 376.658.0 491.9 524.547.0 585.

14.08 _ 64.311.0 10.8(n.0 16. 83.280.0 129.5 158.392.0 146. .. ..

14.09 _. 125.859.0 161.767.0 128. 816.293.0 648.5 1.103.918.0 777. .

IS.02 .. SS.567. 4.572.0 8. [email protected] 71.9 100.088.0 60. .

15.03 .. 742.95.4 )18 0.00 19.9 852,594.1 114.7 1,743,551.5 13i.7 .. .

15.04 .. 117.040.0 4.118.0 3. 151.281,0 129.2 272,439.0 132. .. ..

15.07 . 153.268.0 .. . I1.098.0 . 324.367.0 III. .

15.0O 68.480.0 2.165.0 3. t5.814.0 110.7 146.460.0 113 .

17 365.0 60.026.0 8.565.0 14. 52.949.0 688.2 121.540.0 102. 0-1112.2 30.7

18 292.0 12.484.0 1.49fof 12. 4.927.0 39.5 18.907.0 S. 4- 4.8 1.6

19 3%5.0 1.9.605.0 7.0250 2 1. 3.39?.Q 35.4 15.028.0 1.21.1 i

+ US$ surplus . - US$ Shortfall

- 70 -

ANNEX XIPage 1 of 2

BRAZIL - Loan 1452-BRSENAW: Annual Enrollments - Trainees

DATE ITEM COURSES YEAR

BEGN it I o _I@ | s _ 4 " ISENAI

l-CamSri O1.82 - - 493 724 942-Petrolina 01.80 - 255 539 537 619 5903-Culabi 03.79 603 691 1135 1798 784 6544-Golania 04.81 - - 232 221 238 2125-Serra. 02.81. - - 55 194 320D 2436-Contages 08.80 - 161 338 345 344 2t8-Nova Iguau 03.81 - 1291 18 1280 8189-=arra Mansa 08.80 - 879 1206 1415 1072 719lo-Santos Ounmnt 08.79 2117 2461 7474 7832 8351 792811-Vile Leopoldins 08.80 - 1985 11300 10368 11284 931212-Sapuacais d Sul 09.80 - 5S 440 327 "44 65613-Porto Alegr 04.81 - - 153 157 337 46413.3-Aracaju 02.84 - 110513.4-Omurados 03.84 -- - 21413. 5-Corttax 07.83 - - - 278 300

T ST A L (1) _ 2720 6487 24252 25585 26078 24450

20-NTC 03.83 - - - - 1300 2080

TOTAL (2) _ _ _ _ - 1300 2080

- 71 -

ANNEX XT

Page 2 of 2

BRAZIL: Loan 1452-BRSENAC: Annual Enr' bents - Trainees

Date -i rITEM Courses _I X -T § -

SenacExtensions:

14.01-Sio Luiz - - - - -

14.02-Fortaleza - - - - - 7,15514.03-Joio Pessoa - - ,29114.04-Natal - - - - - - 8,501

14.06-Manaus - - - - - - 2,15814.07-Flor,anapolis - - - - - - 3.55014.08-Aracaju - - - - 3 _

14.09-Recife - - - - 6,04j

Subtotal - 33- - -62

New:

14.05-4dceio - - - - - -

15.02-Uberaba 07.83 - - - 138 7,415.03-Rio Branco -- - - - -

15.04-Goiani a 3,46lS.07-Hontes Claros - - - - - -

15.08-ltajubi 07.84 - - _ _ _ 3.10017 -Porto Vetho 07.83 - - - 2 155 4,63718 -Macapi 10.80 - 169 1 832 2 165 2 100 3,10419 -Campo Grandt 10.80 - 278 6 844 6 420 5 000 7,984

SUBTOTAL - - 447 8 676 8 585 15 393 27,724TOT AL (3) - - 447 8 676 8 S85 15 393 66,084

GRAND T O T A L (1)(2)(3) - 2 720 6 934 32 928 34 170 42 771 92,614

Note: Annual enrollMts at _onatructed and equippe centers.

- 72 - ANNEM XII

Brazil - Loan 1452-BR Page 1 of 2Inplem ntation Schodule by Component

.Lite,E IbthWLMK is"? Omi love 108 Om sea Is" le" gggId.ved l.ltst IeMm 1 Siege1

£elfte.m 6 swi0mommtoo.

*. dlimi a * *,* * A. aoo

^_b~~~~. 00 * 06* e

c. r"_ ts0 a

3. lev,le li ieS

A. leas ss* . .ee * ...C.

c. Vmdegmhd e afdwf

A. laud~

A. le_st 5555 88.0 @66s 00a0 @00 S 5. aim*

j;gsemm s 5* **ooose.oe

C. Vmidumswea.l.uu 8 33

Botel-5die*a as als ls~* a a

c. Fqneomt m Us| | * *0 |****

A. lie wd

B-Sinel a a a a Ia aa ea e 0a oe oeseeC. r,mgmesg,. s I

c. Vuautuss n. S.M. ! u

A. Sent I

I. o i . * 6S (s501e060 Xee ,e

of let.l-~ls sassg , a s. .

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- 75 -

CMM !S FRDM THE BORROWER (l) ATTA¢MM&T I(Page 1 of 2)

Federal Civil Service

OF/SMO/MTb/No. 081 Brasilia, February 27, 1989

Graham DonaldsonChief, Agriculture, Infrastructure and Human Resources

DivisionOperations Evaluation DepartmentThe World BankWashington, D.C.

Dear Sir:

We have received your letter of January 17, 1989 and its enclosedSuuwary from the Project Completion Repert on the Vocational Training Projectunder Loan 1452-BR.

As stated in the Summary, despite delays and changes, the projectachieved and even surpassed many of its objectives, especially with regard tomaintaining the quality of vocational training, upgrading the level of trainedstaff and modernizing physical conditions.

The most significant changes to the Loan were: within SENAC, thereplacement of the hotel training centers with vocational training centers fortraining in the hotel and tourism trades at lower cost and with greatergeographical coverage; and within SENAI, the addition of mobile units in allregions of the country using prototypes developed by the agency and built inBrazil at competitive prices.

It was possible to raise targets. requiring less funds thanoriginally envisaged. owing to lower costs than expected for certain projectcomponents,-the devaluation of the cruzeiro in relation to the dollar and therepayment mechanism used at the time.

SENAR had recruitment and budget difficulties at the start ofproject execution, causing appreciable delays. It is suggested that, likeSENAI and SENAC, the agency become more autonomous. It would then be moreflexible, responsive and capable of keeping to timetables.

A major accomplishment of the project unit, which was establishedunder the Secretary General but has technical, administrative and finanslalautonomy, was the preparation of the normative documents for Projectimplementation, in particular the lists of equipment [for] the biddingprocess, in accordance with Brazilian and Bank guidelines. In most cases,close coordination of Project implementation with the central offices of thebeneficiary agencies enabled the targets to be met.

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COMMENTS FROM THE BORROWER (1) AACIMKNT I(Page 2 of 2)

The Special Account opened with the Central Bank of Brazilconsiderably expedited the reimbursement of expenditures.

Some of the suggestions in the Summary are already being implementedin the follow-on Vocational Training Project; the project unit was establishedunder the Secretari&t of Manpower and, like the unit in the first Project,were established within each agency.*

In accordance with the Constitution of the Federative Republic ofBra2iil, the National Service for Rural Training (Servigo Nacional deAprendizagem Rural - SENAR) will be established by law along the lines of theNational Service for Industri31 Apprenticeship (Servigo Nacional deAprendisagem Industrial - SENAI) and the National Service for CommercialApprenticeship Office (Servigo Nacional de Aprendizagem do Com6rcio - SENAC),without prejudice to the functions of the public entities involved in the area.

Lastly, many Project benefits, already anticipated by allbeneficiary agencies, and a number of positive experiences have beenincorporated in the new Vocational Training Project.

Yours truly,

/s/Joao da Rocha Gomes, ManagerMinistry of Labor/IBRD Vocational Training Project

* T.N.: Sentence defective in original; translated literally.

- 77 -

CONM3UTS mlEE MM BOiRiRWER 2) AlT.AARO II

(Page 1 of 2)

Ministry of LaborFUNDACENTRO

Mr. Graham Donaldson Sao Paulo, February 28, 1989Chief, Agriculture, Infrastructure

and Human Resources DivisionOperations Evaluation Department Ref: PRESI/l3/89

Subiect: Brazil: Vocational Training Project (Loan 1452-BR)Draft Project Completion Report

Dear Mr. Donaldson:

With reference to the draft Final Report on Loan Agreement 1452-BR,transmitted via memorandum of January 17, 1989 for opinion, we have to informyou as follows:

1. the Project Management System was modified to avoid setting up aspecific section for that purpose. These activities are currentlycarried out through a Management Group (G.-UPO GESZOR), comprisingseconded representatives of the areas involved, without prejudice totheir normal responsibilities, avoiding duality of functions.

2. Project monitoring will have to be effected by outside auditors,allowing us better control of activities and any necessarycorrective action.

We also point out that the Final Report omitted to mention thecomplete achievement of one of the basic goals of the Project, namely thetraining of specialist workers in Occupational Safety, Hygiene and Medicine.

The advanced technical training of our professional staff, togetherwith the construction and equipping of our Centers, particularly the NationalTechnical Center (Centro Tecnico Nacional--CTN), made it possible to conductapprotniately 1,700 courses on the various aspects of the subject, reaching

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CO1HENTS PEOX De RIAU (2) TAIBAKE(T II(Page 2 of 2)

34,000 workers directly, between 1980 and 1985, in addition to the coursesdeveloped by extension agents, especially in 1st and 2nd grade schools(Preventive Awareness Project), with the training of 1,558 teachers and 80,410students in the rudiments of occupational safety, hygiene and medicine. Thisinformation is set forth in Volume I, DESCRIPTION OF FUNDACENTRO, which wassent to IBRD for authorization of Loan Agreement 2810-BR, approved in 1987.

We shall be happy to furnish any further information you may require.

Yours sincerely,

/a/ Leon AlexandrPresidentFUIDACENTRO

- 79 -

CONIZKTS FREB ThE MBRRORWR (3) ATiEUT III

The National Servicefor Industrial ApprenticeshipNational DepartmentAv. Nilo Pecanha, 50 - 290 FloorRio de Janeiro

March 17, 1989

Graham DonaldsonDivision Chief, OEDDIWorld Bank1818 H Street, N.W.Washington, D.C. 20433USA

Dear Sir:

We have received the Project Completion Report on Loan 1452-BR forthe vocational training project in Brazil, in effect from 1977 to 1985, andinvolving SENAI, SENAC, SENAR, FUNDACENTRO, SMO-MTb and SINE.

All the observations therein appear tonUs quite valid, morespecifically those relating to SEMAI as regards the objectives sought, resultsachieved and resources assigned and disbursed to maintain and equip thetraining centers and the 102 mobile training units and finance themethodological training of instructors a-ad the fellowships in the areas ofeducational orientatlon, food technology, educational technology, andindustrial instrumentation.

Convinced of the usefulness of this experience, we will be carefulto apply it to enhance and guarantee the efficiency of the new projects andpertinent activities that we are in the process of developing.

Yours, etc.,

/8/ Arivaldo Silveira FontesDirector General

Documents

World Bank Document€¦ · Production of Teaching Materials and Professional Service. 14,800,000 352 (2) Equipment 14,500,000 lO2 o' 262 L (3) Salaries of Project Unit and Technical