Journal Issue
Finance & Development, March 1979

Bank activity: Latest evaluation of completed Bank projects; sixth education credit to Tanzania; Development Committee reports on LDC access to capital markets; first loan to Barbados; Bank and IDA loans and credits

International Monetary Fund. External Relations Dept.
Published Date:
March 1979
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Fourth Annual Review of Project Performance Audit Results is issued

The World Bank’s independent Operations Evaluation Department finds that 91 per cent of the 109 World Bank-assisted development projects examined during 1977 have been completed successfully and have been worthwhile investments for its borrowers. (The success is notwithstanding time and cost overruns and other problems experienced by many projects during implementation.) These findings are contained in the Annual Review of Project Performance Audit Results issued toward the end of 1978. The purpose of the Review is to provide lessons of experience relevant to the Bank’s current practices that can be applied to the design and implementation of future projects.

The projects encompassed by this latest Review include: 38 in transportation, 20 in the field of public utilities, 17 in agriculture, 16 in development finance companies and industry, 11 in education, and 7 “nonproject” or program loans. The total investment involved in these projects amounts to $8.5 billion, of which the Bank and IDA financed $2.2 billion. Because the Review covers projects which are audited after disbursements have been completed (in this case between 1974 and 1977), no “new-style” project in the rural and urban development field, or for population planning and nutrition, is examined. Most new-style projects have yet to be completed.

The Review underscores the need for the World Bank to:

• understand better the local conditions in which it operates;

• ensure that its institution-building efforts do not lead local institutions to be dependent on donors;

• approach more systematically and thoroughly training needs and institutional development, with the borrower playing a progressively larger role in all stages of a project’s life;

• remain alert to the possibilities of pilot, rather than full-scale projects, especially where new borrowers or new-style projects are involved.

Of the projects included in this Review, 43 per cent were first projects of their kind in a country or a sector. In the previous Review (see Finance & Development, Bank Activity, June 1978) 30 per cent of the projects that were evaluated were the first of their kind. However, despite the diversity and complexity of the problems of development, the review of the projects—almost half of which were located in Africa—shows:

• the cost of 46 per cent of all project for which estimates were made were less than appraisal estimates, or did not exceed the estimate by more than 10 per cent;

• about half of the projects were either completed on time or did not exceed estimates by more than 25 per cent; and

• of the 58 projects for which economic rates of return were estimated at the appraisal stage, 52 proved to offer re-estimated rates of return of 10 per cent or more at audit.

The Annual Review of Project Performance Audit Results, 1978 is available free of charge from the World Bank, Publications Unit, Washington, D.C. 20433, U.S.A., or from the World Bank European Office, 66 Avenue d’lena, 75116 Paris, France.

Improving education in Tanzania Sixth IDA proiect in sector approved

The International Development Association (IDA), the soft loan affiliate of the World Bank, approved in December 1978 a $12 million credit for a sixth education project in Tanzania, which is expected to be completed by 1982.

This project will help to increase the supply of middle-level managers and to develop training for skills critically needed in the modern sector. It will strengthen vocational and technical education, improve accountancy training, and set up a program for management training for educational personnel. It will also provide women with greater access to technical education.

Vocational and technical education will be strengthened by increasing the capacity of the Mwanza and Tanga Vocational Centers. They will be provided with additional equipment, boarding facilities for 150 more students from distant rural areas at each center, and staff housing which will help to attract and retain qualified instructional staff.

A new Instructor Training Center (ITC) is to be developed at Morogoro where extensive future industrial development is planned. It will provide teachers for Tanzania’s National Vocational Training Program, which administers and operates all vocational training and trade testing programs in the country, including the three vocational training centers. The project will help to finance equipment and vehicles for the ITC, instruction and boarding facilities for 160 students, and staff housing. Additional staff houses will be constructed by the trainees.

One of the goals of the Tanzanian Government is to improve opportunities for women. This project helps to increase women’s access to technical education by adding 160 hostel places for women at four existing technical secondary schools. It is expected that the potential for female enrollment will increase from the present 3 per cent of the total to 25 per cent by 1983.

The Dar es Salaam School of Accountancy, established in 1973 by the Ministry of Finance and Planning to provide training for technical and subprofessional personnel, will be expanded to accommodate 215 additional students, increasing total enrollment to 1,015. The project will finance the construction and equipment needed for additional teaching and administrative facilities, boarding, and staff housing.

The existing administrative program for the education sector in Tanzania will be consolidated and expanded. The College of National Education in Bagamoyo will provide in-service management training for 2,800 people during the first five years, at various educational levels, from regional education officers to head teachers. They will be given induction courses, ranging from one to four months, in such subjects as evaluation; report writing; methods of teacher, school, and curricula appraisal; local educational planning; methods of instruction; and scheduling.

The Institute of Education at the University of Dar es Salaam, which is responsible for educational planning, evaluation and research, assistance in curricula development, and in-service training, will be reassessed. The Institute’s future role will be defined, its staffing needs assessed, and phvsical expansion planned.

The sixth education project also provides for an improved monitoring and evaluation system to follow up the implementation of this project. The Projection Planning section of the Ministry of Education will carry out the necessary activities in cooperation with the Ministry of Finance and Planning and the Ministry of Labor and Social Welfare.

The objectives of the sixth education project are in line with Tanzania’s Third Five-Year Development Plan (1976–80), which emphasizes the teaching of skills that are in short supply in the country and the equality of opportunity for women. The First and Second Five-Year Development Plans (1964–69 and 1969–74) had placed emphasis on expanding secondary, higher, and adult education, including nonformal education. Specific goals were to end illiteracy by 1975 and achieve universal primary education by 1977 and to devise a program of work experience to develop practical skills and self-reliance. By 1975, almost 90 per cent of the adult illiterate population was enrolled in adult education classes, and by 1978 primary school enrollment included over 90 per cent of the eligible student population.

IDA has helped Tanzania to realize its educational objectives by supporting five previous education projects. Two projects financed in 1963 and 1969 assisted in the expansion of secondary education and were completed by 1967 and 1976. A third project, financed in 1971 and completed in 1977, assisted the Ministry of Agriculture’s training institutes and rural training centers. The fourth project, which was approved in 1973 and is expected to be completed by the end of 1979, is helping to develop multipurpose community education centers in rural areas, improving primary school teacher training, and providing facilities for medical education. The fifth project, which was approved late in 1975 and will be completed in 1982, is financing a program for the training of village management technicians and the diversification of secondary education. The Bank and IDA have also cooperated with the Tanzanian Government in identifying the country’s educational and skill needs by making a study of agricultural education, an inventory of secondary school facilities, and two education sector surveys, executing an evaluation and monitoring exercise, and preparing a study of the fiscal implications of Tanzania’s goal to achieve universal primary education.

First loan to Barbados

The World Bank made its first loan to Barbados for an education project in December 1978. Barbados has a population of about 247,000 and its per capita income in 1977 was $1,760. It became a member of the Bank in 1974.

The $9 million World Bank loan will be used to improve the effectiveness and efficiency of Barbados’ education system, make possible the effective application of modern and relevant curricula, and provide a more equitable distribution of educational opportunities. Under the project, 10 primary schools will be constructed, furnished, and equipped to replace 5,880 existing student places in obsolescent schools; six secondary schools will be expanded, furnished, and equipped to provide teaching facilities for practical courses to 2,600 students, of which 1,500 will be new places and 1,100 replacements; another secondary school under construction will be equipped and furnished; the Erdiston Teacher Training College will be expanded, furnished, and equipped to function as a teacher training resource center that will provide continuing education to teachers; the Barbados Institute of Management and Productivity (BIMAP) will be expanded, furnished, and equipped to establish an in-plant training program and advisory services to small-scale enterprises; and technical assistance will be provided to the Ministry of Education for project implementation and to BIMAP to initiate the in-plant training program.

World Bank loans approved during second quarter of fiscal year 1979(Ended December 31, 1978)
Country aPurposeAmount

(in millions

of U.S. dollars)
Colombia (2)Airports, hydroelectric power145.0
EcuadorRural development18.0
Guyana (2)Forestry, program loan b15.0
HondurasElectric power30.5
Ivory CoastSmallholder rubber7.6
Kenya (3)Geothermal power, rural water supply, sugar101.0
Korea, Republic ofDevelopment finance company, highways243.0
MalaysiaIntegrated, smallholder agricultural development26.5
MexicoSmall-scale agriculture60.0
MoroccoPhosphate fertilizer production50.0
PanamaDevelopment finance company15.0
PeruWater and power engineering8.8
PhilippinesAgricultural extension, irrigation, small farmer
development, urban development104.5
RomaniaChemical industry40.0
SyriaOilseed processing21.0
ThailandIrrigation, urban traffic management33.5
TurkeyProgram loan, oil recovery engineering study152.5
YugoslaviaAgriculture and agro-industry55.0

Figures in parentheses are the number of loans approved for the respective country.

With a $5 million IDA credit.

Figures in parentheses are the number of loans approved for the respective country.

With a $5 million IDA credit.

Pushpa Nand Schwartz

IDA credits approved during second quarter of fiscal year 1979(Ended December 31, 1978)
Country aPurposeAmount

(In millionsb

of U.S. dollars)
Bangladesh (3)Drainage and flood control, program credit, technical assistance104.0
Egypt (2)Population, education65.0
Guinea (2)Power engineering and repair, water supply and sanitation13.6
GuyanaProgram credit b5.0
India (3)Agricultural research, agricultural extension, village cooperatives82.0
IndonesiaTechnical education49.0
KenyaAgriculture and rural infrastructure13.0
LiberiaWater supply8.0
MalawiAgricultural development22.0
MaliTechnical assistance and engineering4.5
PakistanOil and gas production30.0
Tanzania (2)Tourism, education26.0
Yemen, People’s Dem. Rep. ofVocational training4.0
Zambia (2)Technical assistance, coffee production11.0

Figures in parentheses are the number of credits approved for the respective country.

With a $5 million World Bank loan.

Figures in parentheses are the number of credits approved for the respective country.

With a $5 million World Bank loan.

Update: Development Committee reports on LDC access to capital markets

“The developing countries and access to capital markets” by M.M. Ahmad inFinance & Development, December 1976 explained the work of the Development Committee with particular emphasis on one subject that was under review. This item reports on the results of that effort.

The Development Committee (Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries) issued its report Developing Country Access to Capital Markets in November 1978.

This monograph (134 pages) assembles the substance of several papers presented for discussion by the Working Group on Access to Capital Markets of the Development Committee during the period since its inception in mid-1975. The various papers were prepared by the Executive Secretariat with the assistance of the staffs of the International Monetary Fund, the World Bank, and some regional development banks. They also reflect the consultations with representatives of private financial institutions during the period.

The report begins with a summary of the tasks performed by the Working Group during the period, followed by a statistical overview of the access of developing countries to private international capital markets in recent years and ending with a description of the legal and institutional frameworks in important capital market countries as they relate to developing country bond issues/placements in those countries. The data cover the period through 1975 for bond issues and through 1976 for international bank financing. They provide a useful perspective of the role of private financial markets in the financing of developing countries in recent years. The descriptive materials on legal/institutional arrangements affecting access to individual financial markets are informative and remain generally valid.

There is also a discussion of various specific topics considered by the Working Group in their deliberations on the subject of developing country access to private capital markets. The subjects covered include the possibilities for promoting access through: (1) technical assistance to developing country borrowers; (2) the use of guarantees of multilateral or regional development finance institutions; (3) cofinancing operations by the latter; (4) possible development of an underwriting (and liquidity) fund; and (5) development of an international investmenl trust. The report concludes with a description of existing reporting systems on international financing stocks and flows and how they are being or might be extended or improved to provide the private financial community with additional information against which to judge lending to borrowers in individual countries.

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