AFRICAN DEVELOPMENT FUND Language : English Original : English

FEDERAL REPUBLIC OF NIGERIA

SKILLS TRAINING AND VOCATIONAL EDUCATION PROJECT

APPRAISAL REPORT

DEPARTMENT OF SOCIAL DEVELOPMENT OCSD CENTRE AND WEST REGION APRIL 2005

TABLE OF CONTENTS Page PROJECT INFORMATION SHEET, CURRENCY AND MEASURES, LIST OF ABBREVIATIONS (i-x) AND ACRONYMS, BASIC DATA SHEET, PROJECT MATRIX, EXECUTIVE SUMMARY 1. ORIGIN AND HISTORY OF THE PROJECT 1 2. THE EDUCATION SECTOR 2 2.1 The Education System 2 2.2 The Education Policy 3 2.3 Financing of Education 4 2.4 Education and Employment 5 2.5 Labour Market Profile 6 2.6 Women in the Labour Market 6 2.7 The Informal Sector 7 2.8 Demand for Skilled Workers 7 3. THE VOCATIONAL EDUCATION SUB-SECTOR 7 3.1 Background 7 3.2 Constraints in Vocational and Technical Education 8 4. THE PROJECT 11 4.1 Project Concept and Rationale 11 4.2 Project Areas and Project Beneficiaries 12 4.3 Strategic Context 13 4.4 Sector Goal and Project Objectives 13 4.5 Project Description 14 4.6 Environmental Impact 18 4.7 Project Costs 18 4.8 Sources of Financing and Expenditure Schedule 19 5. PROJECT IMPLEMENTATION 21 5.1 Executing Agency 21 5.2 Institutional Arrangements 21 5.3 Implementation Schedule 23 5.4 Procurement Arrangements 23 5.5 Disbursement Arrangements 26 5.6 Monitoring and Evaluation 27 5.7 Financial Reporting and Auditing 28 5.8 Aid Co-ordination 28

TABLE OF CONTENTS (cont’d) Page 6. PROJECT SUSTAINABILITY AND RISKS 29 6.1 Recurrent Costs 29 6.2 Project Sustainability 29 6.3 Critical Risks and Mitigating Measures 30 7. PROJECT BENEFITS 31

7.1 Social Impact Analysis 31 7.2 Economic Impact Analysis 33

8. CONCLUSIONS AND RECOMMENDATIONS 33 8.1 Conclusions 33 8.2 Recommendations and Conditions for Loan Approval 34 LIST OF BOXES AND TABLES 2.1 Education Sector Allocation within total Social and

Community Services 1999-2003 5 4.1 Estimated Project Cost by Component 19 4.2 Estimated Project Cost by Category of Expenditure 19 4.3 Estimated Cost by Source of Finance 20 4.4 Estimated Cost by Source of Finance and Components 20 4.5 Estimated Cost by Source of Finance and Category of Expenditure 20 4.6. Expenditure Schedule by Category of Expenditure 21 4.7 Expenditure Schedule by Source of Finance 21 5.1 Implementation Schedule 23 5.2 Procurement Arrangements 25 6.1 Federal Government Allocation to Education Sector 29 LIST OF ANNEXES 1. Map of the Federal Republic of Nigeria 2. Donor Support to Education Sector 3. Bank Group Operations in Nigeria 4. Summary of Cost for Goods and Services 5. Environmental and Social Management Plan Summary 6. Organogram for the Technical & Science Department with the Project Coordination Unit 7. Table of Contents of the Project Implementation Document 8. TORS for Project Manager This report was prepared on the basis of the findings of an Appraisal Mission that visited Nigeria from February 3 - 23, 2005. The mission included the following OCSD staff: Ms. Yeshiareg Dejene, Senior Gender Specialist, and Messrs. Jason Mochache, Senior Implementation Specialist, Benedict Kunene, Senior Education Analyst and Frank Boahene, Principal Education Analyst. Enquiries relating to this report may be directed to Mr. Mohamed Youssouf, Division Manager, OCSD.1 (Ext. 2110, Tunis) or Mr. N. Safir, Acting Director OCSD (Ext. 2141, Tunis)

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AFRICAN DEVELOPMENT FUND

HEADQUARTERS TEMPORARY RELOCATION AGENCY 01 BP 1387 BP 323 - 1002 Abidjan 01 Tunis Belvédère Côte d’Ivoire Tunisia Tel: 20 20 44 44; 20 20 48 48 Tel: (216) 71 333 511 Fax (225) 20 21 65 45 Fax. (216) 71 351 933

PROJECT INFORMATION SHEET Date: March 2005

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for the projects approved by the Board of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency and the Borrower.

1. Country and name of project: Federal Republic of Nigeria. Skills Training and Vocation Education Project

2. Location: Nationwide

3. Borrower: Federal Republic of Nigeria

4. Executing Agency: Federal Ministry of Education Federal Secretariat Complex Abuja, Nigeria

5. Project Description: This is a 5-yr project and consists of the following four components: (i) improved access to skills training and vocational education (ii) enhanced quality and efficiency of skills training and vocational education, (iii) strengthening public-private partnership, and (iv) project management.

6. Total Cost UA 33.71 million Foreign UA 23.70 million Local UA 10.01 million

7. Bank Group Financing ADF Loan UA 30.00 million 8. Other Sources of Financing: Government contribution UA 3.71million

9. Date of Approval: June 2005

10. Estimated starting date of work and duration January 2006 for 5 years.

11. Procurement: Goods International Competitive Bidding (ICB): Civil Works for 10 training centres; Equipment/tools for 10 training centres; Equipment for 10 Outreach/ Resource Centres.

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National Competitive Bidding (NCB): Furniture for 10 training centres, 10 Outreach / Resource Centres Production of Training and Learning Materials. Furniture for classrooms, vocational workshop blocks, administration and library blocks for selected training centres; furniture and equipment for PCU; Handouts/reference and printed training materials, updated manuals and printed forms for maintenance toolkits for selected centres.

National Shopping (NS):

Equipment for Project Implementation & Coordination Units, and Operating Costs; Other miscellaneous goods, such as stationery/consumable office supplies.

Civil Works NCB:

Rehabilitation and expansion of 10 training centres. Fitting up of the PCU offices.

Services Short List (SHL):

Consultancy Services and Technical Assistance will be hired through short listing of qualified firms and/or individuals in accordance with Bank’s “Rules of procedure for the use of Consultants” for audit services; design, technical studies and supervision of civil works.

Direct Negotiation

In-service training of FME/TSD/PCU staff procured through direct negotiation with local firms/consultants.

Rules of procedure for the use of individual consultants of ADF

Short-term consultancy services needed for in-service training and workshop activities; consultancy services for the maintenance of training centres. CONSULTANCY SERVICES REQUIRED Consultants will be required for architectural and engineering designs, quantity surveying services and preparation of tender documents for the construction of the facilities, audit as well as for post contract services including supervision of construction works. Consultancy services will also be utilized in the following areas: training for capacity building among managers, trainers, instructors/teachers; resource centers, outreach training system; development of new curricula and training materials; procurement of equipment, tools and materials; decentralized management of training; promotion and marketing of training programs. All such services will be subject to the Bank’s Rules of Procedure for the Use of Consultants.

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CURRENCY AND MEASURES (March 2005)

1 Unit of Account (UA) = 201.828 Naira = 1.53199 US Dollar

Fiscal Year: 1 January - 31 December School Year: September – June Units of Measurement: Metric System

LIST OF ABBREVIATIONS AND ACRONYMS

ADB ADF CSP DFID DPRS EFA ETF FGN FME GDP GER ICT ILO JICA JSS LGA LMIS MDGs NABTEB NBTE NCE NCNE NEEDS PCU PIU PPMS PPP PSC PRSP PTA QPPR SA SMC STM SSS TSD STVE TA TVE TVET UBE UNESCO UNICEF USAID VTE WB

African Development Bank African Development Fund Country Strategy Paper Department for International Development Assistance Department of Planning, Research and Statistics Education for All Education Trust Fund Federal Government of Nigeria Federal Ministry of Education Gross Domestic Product Gross Enrolment Ratio Information and Communication Technology International Labour Organization Japan International Cooperation Agency Junior Secondary School Local Government Area Labour Market Information System Millennium Development Goals National Business & Technical Examinations Board National Board for Technical Education National Council on Education National Council on Nomadic Education National Economic Empowerment Development Strategy Project Coordinating Unit Project Implementation Unit Project Performance Monitoring System Public-Private Partnerships Project Steering Committee Poverty Reduction Strategy Program Parent-Teacher Association Quarterly Project Progress Report Special Account School Management Council Science, Technology and Mathematics Senior Secondary School Technology and Science Department Skills Training and Vocational Education Technical Assistance Technical and Vocational Education Technical & Vocational Education and Training Universal Basic Education United Nation’s Education, Scientific and Cultural Organization United Nation’s Children Fund United States Agency for International Development Vocational and Technical Education World Bank

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Year Nigeria AfricaDevelo-

pingCountries

Develo-ped

CountriesBasic Indicators Area ( '000 Km²) 924 30 061 80 976 54 658Total Population (millions) 2002 120.9 831.0 5,024.6 1,200.3Urban Population (% of Total) 2002 44.2 38.6 43.1 78.0Population Density (per Km²) 2002 130.9 27.6 60.6 22.9GNI per Capita (US $) 2002 300 650 1 154 26 214Labor Force Participation - Total (%) 2002 39.9 43.1 45.6 54.6Labor Force Participation - Female (%) 2002 35.8 33.8 39.7 44.9Gender -Related Development Index Value 2001 0.450 0.484 0.655 0.905Human Develop. Index (Rank among 174 countries) 2001 152 n.a. n.a. n.a.Popul. Living Below $ 1 a Day (% of Population) 1997 70.2 46.7 23.0 20.0

Demographic IndicatorsPopulation Growth Rate - Total (%) 2002 2.6 2.2 1.7 0.6Population Growth Rate - Urban (%) 2002 4.3 3.9 2.9 0.5Population < 15 years (%) 2002 45.7 43.2 32.4 18.0Population >= 65 years (%) 2002 3.2 3.3 5.1 14.3Dependency Ratio (%) 2002 91.4 86.6 61.1 48.3Sex Ratio (per 100 female) 2002 101.4 98.9 103.3 94.7Female Population 15-49 years (% of total population) 2000 … 24.0 26.9 25.4Life Expectancy at Birth - Total (years) 2002 51.5 50.6 62.0 78.0Life Expectancy at Birth - Female (years) 2002 51.8 51.7 66.3 79.3Crude Birth Rate (per 1,000) 2002 39.1 37.3 24.0 12.0Crude Death Rate (per 1,000) 2002 13.7 15.3 8.4 10.3Infant Mortality Rate (per 1,000) 2002 78.8 81.9 60.9 7.5Child Mortality Rate (per 1,000) 2002 133.0 135.6 79.8 10.2Maternal Mortality Rate (per 100,000) 1992 1,000 641 440 13Total Fertility Rate (per woman) 2002 5.4 4.9 2.8 1.7Women Using Contraception (%) 1995 6.0 40.0 59.0 74.0

Health & Nutrition IndicatorsPhysicians (per 100,000 people) 1993 21.2 57.6 78.0 287.0Nurses (per 100,000 people) 1989 76.1 105.8 98.0 782.0Births attended by Trained Health Personnel (%) 1998 15.0 38.0 56.0 99.0Access to Safe Water (% of Population) 2000 57.0 60.3 78.0 100.0Access to Health Services (% of Population) 1991 67.0 61.7 80.0 100.0Access to Sanitation (% of Population) 2000 63.0 60.5 52.0 100.0Percent. of Adults (aged 15-49) Living with HIV/AIDS 2001 6.0 5.7 1.3 0.3Incidence of Tuberculosis (per 100,000) 2000 22.7 198.0 144.0 11.0Child Immunization Against Tuberculosis (%) 2002 63.0 76.4 82.0 93.0Child Immunization Against Measles (%) 2000 30.0 67.7 73.0 90.0Underweight Children (% of children under 5 years) 1999 27.3 25.9 31.0 …Daily Calorie Supply per Capita 2001 2 747 2 444 2 675 3 285Public Expenditure on Health (as % of GDP) 1998 0.8 3.3 1.8 6.3

Education Indicators* Gross Enrolment Ratio (%) Primary School - Total 2002 78.5 89.2 91.0 102.3 Primary School - Female 2001 69.7 83.7 105.0 102.0 Secondary School - Total 2002 21.5 40.8 88.0 99.5 Secondary School - Female 2002 19.5 38.2 45.8 100.8Primary School Female Teaching Staff (% of Total) 2002 50.6 49.9 51.0 82.0Adult Illiteracy Rate - Total (%) 2002 33.3 37.9 26.6 1.2Adult Illiteracy Rate - Male (%) 2002 25.6 29.2 19.0 0.8Adult Illiteracy Rate - Female (%) 2002 40.7 46.4 34.2 1.6Percentage of GDP Spent on Education 2000 2.4 5.1 3.9 5.9

Environmental IndicatorsLand Use (Arable Land as % of Total Land Area) 2002 31.0 6.2 9.9 11.6

Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division.Notes: n.a. Not Applicable ; … Data Not Available; * Data updated by OCSD.1 March 2005.

COMPARATIVE SOCIO-ECONOMIC INDICATORSNigeria

Infant Mortality Rate ( Per 1000 )

727476788082848688909294

1994

1995

1996

1997

1998

1999

2000

2001

2002

Nigeria Africa

GNI per capita US $

0

200

400

600

800

1994

1995

1996

1997

1998

1999

2000

2001

2002

Nigeria Africa

Population Growth Rate (%)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1994

1995

1996

1997

1998

1999

2000

2001

2002

Nigeria Africa

111213141516171

1994

1995

1996

1997

1998

1999

2000

2001

2002

Nigeria Africa

Life Expectancy at Birth (Years)

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NIGERIA: SKILLS TRAINING AND VOCATIONAL EDUCATION PROJECT MATRIX

Narrative Summary Objectively Verifiable Indicators Means of Verification Key Assumptions and Risks 1. Sector Goal To contribute to poverty reduction through human resources development.

1.1 Create about 7.0 million jobs by 2010 (NEEDS); 1.2 Eliminate gender disparity at all levels of education by 2015 (MDG3).

- Ministry of Labour Statistics; - Labour Market Survey Reports; - PRSP Monitoring Reports;

2. Project Objective To improve access to quality Vocational Technical Education in formal and non-formal training institutions in Nigeria.

By the year 2008 2.1 Increased enrolments in beneficiary institutions by 7% 2.2 Female beneficiaries participation increased by 10% 2.3 Number of qualified vocational teachers increased by 15% 2.4 Half the required and appropriate teaching/learning materials

available in each beneficiary institution. By the year 2010 2.1.1 Increased enrollments in beneficiary VTE institutions by 15% 2.1.2 Improved ratio of females to beneficiary population by20% 2.1.3 Number of qualified vocational teachers increased by 30% 2.1.4 Availability of adequate and appropriate teaching/learning materials

- Physical site visits - Quarterly Progress Reports - Supervision Reports - Mid-Term Review report - FME/TSD annual reports

- Strong and continued political support to education sector reforms and to improved governance - Government provides adequate budget for VTE - Inadequate Implementation Capacity

3. Outputs 3.1. Access to STVE Improved 3.2. Quality & efficiency of STVE enhanced

By the year 2008* 3.1 10 VTE institutions 70% rehabilitated 3.2 10 VTE institutions 30% equipped with training & teaching/leaning

materials 3.3 250 teacher instructors trained 3.4 2000 pre-services teachers trained 3.5 7 TSD officials trained 3.6 5 Assessors Trained 3.7 5 Test Item Writers trained 3.8 13 VTE institutions managers/administrators trained 3.9 8 Key partners trained 3.10 5 career counselors trained and 2 Labour market analysts trained 3.11 Teachers, VTE managers, key partners, counselors trained in gender

and education (quantity as 3.1 - .3.10). 3.12 Gender and education strategy developed and operational 3.13 Strategic plan for Women’s Center developed and operational By the year 2010* 3.2.1 10 VTE institutions rehabilitated 3.2.2 10 VTE institutions fully equipped with training equipment &

teaching and learning materials 3.2.3 500 in-service teachers/instructors trained 3.2.4 4,000 pre-services teachers trained 3.2.5 14 TSD officials trained 3.2.6 10 Assessors Trained 3.2.7 10 Test Item Writers trained

- Physical site visits - Quarterly Progress Reports - Supervision Reports - Mid-Term Review report - FME/TSD annual reports - Physical site visits - Quarterly Progress Reports - Supervision Reports - Mid-Term Review report

- Geographic spread - Inadequate Implementation Capacity - Financial Mismanagement

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Narrative Summary Objectively Verifiable Indicators Means of Verification Key Assumptions and Risks 3.3 Public-Private Partnership

Strengthened

3.2.8 26 VTE institutions managers/administrators trained 3.2.9 16 Key partners trained 3.2.10 10 career counselors trained 3.2.11 2 Labour market analysts trained 3.2.12 30 PTA/SMC members trained 3.2.13 50 Maintenance unit staff trained 3.2.14 LMIS fully operational 3.2.15 2 Policy studies completed 3.2.16 Teachers, VTE managers, key partners, counselors trained in gender

and education (quantity as 3.2.3 - .3..2.12). 3.2.17 Gender and education strategy developed and operational 3.2.18 Vocational training program of NCWD revitalized & operational 3.3.1 8 Business Development Centres operational 3.3.2 8 Production centres operational 3.3.3 96 consultancies/outreach initiated 3.3.4 Community/public perception of VTE

- FME/TSD annual reports

Activities (1) Access to STVE Improved

• Infrastructure rehabilitation & reconstruction

• Equipment and textbooks procurement

(2) Quality and efficiency of STVE

Enhanced • Curriculum development • Staff development • Capacity building of FME/key

beneficiaries • Gender strategy development • Gender integration into curriculum

development & teacher training • Studies • Entrepreneurship promotion

(3) Strengthening 3Ps • BDCs • Consultancy/Production Centres • Outreach/Exhibition Facility

(4) Project Management

Inputs ADF Loan of UA 30 million and FGN contribution equivalent to UA3 .71 million. Project Budget (UA million) 1 Goods: 8.98 2. Works: 15.46 3. Services: 5.73 4. Operating Costs: 1.06 4. Misc: 2.48 TOTAL: 33.71

ADF Disbursement Records Govt. Disbursement Records Annual Audit Reports Quarterly Progress Reports Bank monitoring of tenders and construction processes

Timely fulfilment of the conditions precedent to entry into force Timely Govt. counterpart fund provision Adherence to Bank procedures in procurement activities Timely availability of goods Good performance of contractors

* Baseline Study to provide baseline data.

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EXECUTIVE SUMMARY Project Background 1. The Nigeria Skills Training and Vocational Education (STVE) Project is based on the Federal Government of Nigeria’s poverty reduction initiatives which, among others, seek to expand access to basic, non-formal and vocational skills education. As a follow up to a request from the FGN, the Bank fielded identification and preparation missions in July and November 2004 respectively. An appraisal mission was conducted in February 2005 that discussed in detail with the Government the main objectives, design and institutional arrangements for the successful implementation of the proposed project. 2. Nigeria is a country undergoing economic reform. A productive, competent, and flexible workforce is a prerequisite for furthering economic development. The demand for skilled workers and technicians is already acute and will become ever more intense as the industrial sector becomes the dominant provider of employment; yet the Vocational and Technical Education (VTE) sub-sector is unable to respond to the changing labour market requirements because of its present supply-driven orientation. Its curricula, instructional equipment, teaching methods, and evaluation techniques are outdated, leading to inappropriately low internal and external efficiencies. The management capacity of the Technology and Science Department (TSD) is inadequate to improve the low-performing vocational and technical schools. Without intervention, the mismatch between school graduates and employer requirements (indicated above) will continue, and private sector-led economic growth, as espoused in the country’s National Economic Empowerment Development Strategy (NEEDS) will be compromised. The mismatch is due to vocational and technical education teaching outdated skills, with outdated curriculum, machinery and equipment and the lack of consultation with and the involvement of the private sector in VTE. 3. The proposed project will contribute to the development of a VTE policy, train staff, revise/develop curricula, and enhance equipment to improve internal efficiency. It will monitor labor market requirements and involve the private sector in training program development, accreditation, testing and certification to improve system-wide external efficiency. Provision will be made for encouraging more women, disadvantaged and marginalized groups to access VTE opportunities. The project will contribute to the Government’s achievement of the Millennium Development Goals (eradicate extreme poverty and hunger; promote gender equality and empower women; and combat HIV/AIDS, malaria and other diseases). Purpose of the Loan The ADF loan of UA 30 million, amounting to 89% of total project costs, will be used to finance 97.89% of the foreign exchange (UA 23.20 million) and 67.93% of the local costs (UA 6.80 million). Sector Goal and Project Objectives The sector goal of the proposed project is to contribute to poverty reduction through human resource development. The objective of the proposed project is to improve access to quality VTE in formal and non-formal training institutions in Nigeria. Project Description The proposed project comprises four (4) components: (i) improve access to skills training and vocational education; (ii) enhanced quality and efficiency of skills training and vocational

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education; (iii) Strengthening Public-Private Partnership; and (iv) project management. Each of the components includes several sets of activities. Project Cost The total cost of the proposed project is estimated at UA 33.71 million, of which 23.70 % is in foreign exchange (70.30%) and the equivalent of UA 10.01 million (29.69%) is in local currency. Sources of Finance The proposed project will be jointly financed by the ADF loan (UA 30.0 million) and the Federal Government of Nigeria (UA 3.71 million). The government’s contribution represents 11 % of the project cost. Project Implementation The proposed project will be implemented in 5 years, from January 2006 to December 2010. The Science and Technology Department of the Federal Ministry of Education will coordinate project implementation. The FGN will establish a Project Coordination Unit (PCU) before loan effectiveness to manage daily implementation activities - procurement of goods and services, monitoring of activities, accounting activities, and supervision of civil works. Technical assistance will be resourced to support the procurement of equipment and resource materials, as well as in the management of site activities. Conclusions and Recommendations 1. With the publication of the revised National Policy on Education (2004) and the Master Plan for Technical and Vocational Education Development (2000), the FGN marked its commitment to improve the relevance, quality and delivery systems for vocational education and training. The Education Sector Analysis (2003) and the Education Sector Status Report (2003) developed for the purposes of better designing policies, programs and management arrangements, are all concrete manifestations of commitment. 2. The conception and design of the proposed project took into consideration the foregoing issues. It is therefore expected to constitute a major contribution to the FGN’s commitments to the revitalisation and improvement of vocational and technical education and training as part of the discussions on the education sector reform. 3. The proposed project will benefit young girls and boys between the ages of 15 and 25 in 10 formal and non-formal vocational training and Technical Teacher Training centres in the six geopolitical zones in Nigeria. The proposed project is socially and economically desirable, as well as being technically feasible. It will offer increasing opportunities for training to young men and women, reduce regional disparities in access to training centres and contribute to the development of a range of skills needed by the economy. With its demand-driven principle, its chances of contributing to the reduction of poverty, under-employment and unemployment are very high. Recommendations It is recommended that an ADF loan not exceeding UA 30.0 million be extended to the Federal Republic of Nigeria for the purpose of implementing the proposed project.

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1. ORIGIN AND HISTORY OF THE PROJECT 1.1 Nigeria is a country undergoing economic reform. A productive, competent, and flexible workforce is a prerequisite for furthering economic development. The demand for skilled workers and qualified technicians is already acute and will become ever more intense as the industrial sector becomes the dominant provider of employment. Unfortunately, the vocational and technical education (VTE) sub-sector is unable to respond to the changing labour market requirements because of its present supply-driven orientation. Its curricula, instructional equipment, teaching methods, and evaluation techniques are outdated, leading to inappropriately low internal and external efficiencies. The management capacity of the Technology and Science Department (TSD), Federal Ministry of Education, is inadequate to improve the low-performing vocational and technical schools. Achievement of the goals of the National Economic Empowerment Development Strategy (NEEDS), the country’s equivalent Poverty Reduction Strategy Paper (PRSP) will be compromised without timely intervention to address the mismatch between training and the labour market requirements. This mismatch is due to vocational and technical institutes teaching outdated skills, with outdated curriculum, machines and equipment and the lack of consultation with and involvement of the private sector in VTE. This leads to a supply-driven system that does not respond to actual labour market needs and requirements. 1.2 The Skills Training and Vocational Education Project (STVE) has its origin in the determination of the Federal Government of Nigeria to reduce poverty and enhance human resource development by expanding access to basic, non-formal and vocational skills education. The proposed project is in line with the Federal Government of Nigeria’s (FGN) poverty reduction strategy embodied in the NEEDS. It recognizes education as the vital transformational tool and a formidable instrument for socioeconomic empowerment. It also seeks to create seven million jobs by 2007 through empowerment of the citizens to acquire skills, entrepreneurship and knowledge. 1.3 As a follow up to a request from the FGN, the Bank fielded identification and preparation missions in July and November 2004 respectively. An appraisal mission was conducted in February 2005 that discussed in detail with the Government the main objectives, design and institutional arrangements for the successful implementation of the proposed project. 1.4 With the publication of the revised National Policy on Education (2004) and the Master Plan for Technical and Vocational Education Development (2000), the FGN marked its commitment to improve the relevance, quality and delivery systems for vocational education and training. The Education Sector Analysis (2003) and the Education Sector Status Report (2003) are concrete manifestations of commitment. 1.5 The proposed project will be the first Bank Group operation in the sector in Nigeria. Its objective is to improve access to quality VTE in formal and non-formal training institutions in Nigeria. It is in line with the Government’s priorities as stated in the NEEDS, the National Policy on Education (2004), and the Master Plan for Technical and Vocational Education Development (2000) documents. It is also in line with the Bank’s Education Policy, the Gender Policy and the Country Strategy for Nigeria, in that it will contribute to human resources development and strive to attain gender equity in education. The proposed project will contribute to the Government’s achievement of the Millennium Development Goals (eradicate extreme poverty and hunger; promote gender equality and empower women; and combat HIV/AIDS, malaria and other diseases).

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2. THE EDUCATION SECTOR 2.1 The Education System 2.1.1 Nigeria’s formal education system follows a 6-3-3-4 structure introduced in 1982, following the adoption of the National Policy on Education (1977). Primary education begins at six years of age and lasts for six years. Secondary education begins at 12 years of age and for a further six years, comprising two three-year cycles. Technical and vocational education is now offered at the secondary level. Tertiary education is for an average of four years. Pre-primary education is predominantly private and starts at 3 years. 2.1.2 Responsibility of primary and secondary educational institutions is shared between Federal, State, local government, communities and private organizations. Local Government Authorities (LGAs) have responsibilities for primary school management, under the guidance of higher levels of government. State governments control most secondary schools and a considerable proportion of the tertiary institutions. Entrance from lower to higher educational levels is determined by competitive examinations organized by federal and state educational agencies. Since 1992, the Nigerian Government introduced the nine-year schooling program, as the universal basic education, from six to 15 years of age, which is to be free and compulsory. This policy is designed to ensure 100% transition from primary to junior secondary level in order to widen access to basic education and eliminate present gender, social and geographic inequalities in enrolment. 2.1.3 The tertiary level is covered by four national commissions that monitor both federal and state level institutions. The National Universities Commission (NUC) is for universities, the National Board for Technical Education (NBTE) for polytechnics, the National Commission of Colleges of Education (NCCE) for colleges of education, and the National Open Universities of Nigeria (NOUN) for National Open University. Educational research is the responsibility of National Education and Research Council (NERC), while the National Institute for Educational Planning and Administration (NIEPA) and the National Teachers Institute (NTI) are for improvement of education planning and administration, and development of in-service teachers respectively. 2.1.4 State Governments have their own education commissions and control most of the secondary schools and a considerable number of the tertiary institutions. Primary schools are the responsibility of local governments (LGAs), under the guidance of the state governments. 2.1.5 In 2000, primary school enrolment stood at 19 million; secondary level (JSS & SSS combined) enrolment was 17.7 million and tertiary level enrolment was 17 million. These figures are projected to increase in 2005 to 22.2 million at the primary level, 21 million at the secondary level (JSS & SSS combined) and 18.8 million at the tertiary level. The Federal Ministry of Education owns and funds 66 Secondary Schools, 19 Technical Colleges (secondary vocational schools), 19 Colleges of Education, 25 Universities and 17 Polytechnics, which are located in every state in the country. 2.1.6 Entry into the teaching profession is provided by different kinds of institutions. Pre-service teacher education is provided in university faculties of education and schools of education in polytechnics and colleges of education (COEs). University institutes of education and the National Training Institute (NTI) provide in-service training. A 2003 survey indicates that there are serious gaps between demand and supply of teachers, resulting in over-size

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classes. This situation is explained by low and poor quality enrolment in university faculties of education. 2.1.7 The National Commission for Nomadic Education (NCNE) is charged with the responsibility of providing relevant and functional education for nomads. Nomadic education is an arm of primary education provided for the pastoral nomads and migrant fishing communities in a formal setting. The pastoral nomads (6.5 million) and the migrant fishing communities (2.8 million) constitute the most disadvantaged groups in the country, with literacy levels of 0.2% for pastoralists and 2.0% for fishing communities. There are 4,907 teachers to 203,845 pupils, giving a pupil/teacher ratio of 1:42. Of the 4,907 teachers, more than 40% are unqualified and upgraded teachers. Nomadic teacher training is undertaken at universities of Maiduguri, Port Harcourt and the Federal College of Education, Yola. The Usman Danfodiyo University produces curriculum material used for teaching/learning. 2.1.8 Civil society organizations play an important role in education development in Nigera, most of them concentrated in basic education. Prior to April 2000, there were limited civil society organizations addressing issues in the education system. However, as part of the preparation leading to the world summit on Education for All in Dakar in 2000 gained momentum, there was need to mobilize civil society for a coordinated voice. This led to the formation of Civil Society Action Coalition on Education for All (CSACEFA). With a current membership of one hundred and sixty civil society organizations, the Coalitions’ mandate is to mobilize, coordinate, facilitate and advocate on education issues from a civil society perspective. It also seeks to provide mechanisms to increase civil society involvement in policy formulation and decision making as well as in implementing, monitoring and evaluation of educational delivery in Nigeria. 2.1.9 HIV/AIDS is increasingly becoming a serious concern in Nigeria. Available statistics from the National AIDS Coordinating Agency (NACA) of Nigeria indicate that currently about 5.6% of the population aged 15 to 49 have already been infected with the virus. According to the World Education Report (February 2003), HIV infection rates in the education sector are increasing rapidly. The Ministry of Education has introduced HIV/AIDS education in the school curriculum as a move to curb the spread of the communicable disease among the youth, and to control and co-ordinate all HIV/AIDS preventive programs in educational institutions. 2.2 The Education Policy 2.2.1 The nation’s education goals are to provide equal access to educational opportunities for all the citizens of the country at all levels both inside and outside the formal school system; and to provide trained manpower for all sectors including the provision of technical knowledge and vocational skills to enable the country to be economically self reliant (National Policy on Education (revised 2004)). 2.2.2 The Federal Ministry of Education is structured into eight departments, three of which are common services: Planning, Research and Statistics; Administration; and Finance and Accounts) and five are operational departments- Primary and Secondary Education; Higher Education; Technology and Science Education; Educational Support Services; and the Federal Inspectorate whose foci are defined by the statutory mandate of the Ministry. There are also three statutory units; Press, Legal and Audit Units. The state ministries of education have similar structures to those of the federal Ministry of Education.

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2.2.3 The federal level is responsible for policy formulation, harmonization/co-ordination and monitoring quality service delivery in the education sector. The Federal Ministry of Education (FME) has the major responsibility for education but other Ministries also play an important role. The National Council on Education (NCE) is the highest policy making body for educational matters and advises the FME on educational policies. It also controls a large proportion of universities and other tertiary institutions as well as some secondary schools. 2.2.4 Current major policy initiatives are the Universal Basic Education (UBE) and Education for All (EFA) programmes. The UBE aims to increase access to basic education and seeks to make formal primary and junior secondary education universal, free and compulsory. It embraces skills acquisition programmes for out of school youth, adult literacy and education for disadvantaged groups such as nomads. To achieve the Education for All goals, the Federal Government has adopted a participatory approach to ensure that the programme responds to the needs of the people and has also embarked on public enlightenment as well as social mobilization to ensure full participation. Technical and vocational education is being repositioned for greater advantage in the national education scheme, including the review of policy and mandates, integration of entrepreneurial skill, establishment of at least one federal technical college as a model in every state. 2.3 Financing of Education 2.3.1 Nigeria was estimated to spend 2.4 per cent of its GDP on education in 2000. According to 2001 data, the total education budget on average represented 7.0 percent of the Federal Government annual budget. Education offered in public institutions is predominantly tuition free through out the system. However, there are subject fees and other expenditures like uniform that parents have to pay for. Table 2.1 below shows the allocation to education as against health and others within the social and community services functional classification from 1999 to 2003. The table indicates that the percentage allocations to education remained constant at 57% in 1999 and 2000, declined to 45% in 2001 then increased to 47% and 50% in 2002 and 2003, respectively. Like in many other developing countries, within education most of the resources go to pay salaries leaving very little for teaching and learning material. For example out of the total appropriation 7,367,584,030 Naira approved for unity schools in 2003, about 80% was for personnel cost, the balance being shared between overhead cost 16.5 % and meal subsidy. Although the table shows that education receives a bigger share within social and community services, due to the huge section of the population needing educational services (about 46%), the allocation is still not sufficient to address existing problems as well as cater for new needs. The implications are that new sources of funding are necessary to complement Government resources in order to assist the country meet the challenges of providing education to Nigerians. 2.3.2 Since 1990, various initiatives have been undertaken by the Federal Government to finance education. The FGN/IDA Nigeria Community Education Program introduced in 1996 was aimed at addressing the needs of rural communities in some three states and to meet the needs of the nomadic communities in the North Eastern part of the country. The objectives were to increase equality and access for women and girls in the targeted communities.

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Table 2.1 Education Sector Allocation within Total Social and Community Services 1999-2003

(Billion Naira) Detail/Year 1999 % 2000 % 2001 % 2002 % 2003 % Education 31,563.80 57 49,563.20 57 59,744.60 45 109,455.20 49 79,436.10 50 Health 16,179.80 30 20,445.20 24 44,651.60 34 63,171.20 29 39,685.50 25 Others 7,258 13 16,758.80 19 28,574.3 21 49,272.50 22 39,180.60 25 Total 55,001.60 100 86,767.20 100 132,970.50 100 221,272.50 100 158,302.20 100 Source: The Nigerian Statistical Fact Sheet on Economic Social Development, Federal Office of Statistics, April 2004. 2.3.3 The Federal Government funding formula for schools was revised in 1994 so that states would share 50% equally, educationally disadvantaged states 25%, pupil enrolment 25%, and population of the states 10%. In August 1999, the new administration abolished the National Primary Education Fund (NPEF) and reconstituted it under another name (the National Primary Education Commission). This action was taken in recognition of the states’ and local governments’ responsibility for financing and managing primary education. 2.3.4 In 1995, the government established the Education Tax Fund (now Education Trust Fund) in which companies with more than 100 employees contribute 2% of their pre-tax earnings to the Fund. Primary education receives 40% of these funds, secondary education gets 10%, and higher education receives 50%. Primary education has in the past also received funds from the Petroleum Trust Fund for capital expenditure and provision of instructional materials. Additional funds for primary education are allocated through the National Commission for Nomadic Education. 2.4 Education and Employment 2.4.1 Recognizing that today’s technological inventions require formal education to produce a knowledge-based workforce for national development, the National Policy on Education prescribed one major goal: To equip every individual with the skills and job competencies for gainful employment. 2.4.2 Consequently, curriculum at each stage of formal education, from primary to tertiary, is geared towards participation as well as competencies. At the primary level, elements of work are included. Labour laws do not permit children less than 15 years to join the labour market directly. Child labour is prohibited but apprenticeship training is allowed and encouraged. 2.4.3 In the labour market, opportunities for apprenticeship training include distributive trade, traditional medical practice, house help, farming, local crafts, in-plant industrial training and on-the-job training. Regular employment is available in the public service for persons with a minimum of primary education and above 15 years. 2.4.4 According to the National Poverty Eradication Program (NAPEP), the national unemployment rate is 60 percent. An average of 120,000 graduates are produced annually from the universities and other tertiary institutions in Nigeria while the secondary and primary schools (including VTE graduates) produce 500,000 school leavers annually. NAPEP statistics indicate 80 percent (about 1.2 million graduates) remain unemployed in the last 10 years, and about 50 percent of secondary and primary school leavers (approx. 2.5 million) remain unemployed during the same period. Together with retrenched workers, an estimated 5 million youths are unemployed in Nigeria.

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2.4.5 The unemployment situation is likely to rise significantly if measures are not put in place to accelerate job creation and improve the mismatch in training and the labour market requirements. The mismatch between the qualifications of job seekers and the skill requirements of employers is due to vocational and technical institutes teaching outdated skills, with outdated curriculum and machinery, and the lack of consultation with and participation of the private sector in VTE. This leads to a supply-driven system that does not respond to actual labour market needs and requirements. 2.4.6 Economic growth, vital for a country’s development and for combating poverty, is impossible without private sector participation. Public-Private Partnership is a combination of the respective strengths of public and private partners. Private enterprises play an essential role in creating jobs and income for society and individuals. In vocational and technical education, the private sector contributes technology, capital and expertise through participation in curriculum development, training, networks, qualified staff and access to production equipment and know-how. According to the Education Sector Status Report (2003), private sources account for about 20% of total national expenditure on education in Nigeria. It would appear this comparative advantage of the private sector is not being strategically harnessed for VTE in Nigeria. 2.5 Labour Market Profile 2.5.1 Labour supply in Nigeria is characterized by an abundance of unemployed and underemployed workers, mostly in the agriculture and informal sectors, low productivity, and by a serious shortage of skilled workers and technicians in the industrial and service sectors. Over 60 percent of the labour force is classified as unskilled and untrained. Of the 120,000 graduates produced annually from the tertiary institutions in Nigeria, only 10 percent find jobs in the formal sector. The inactivity rate (1995) for the age group from 25 to 54 years was 24.9%. 2.5.2 According to ILO (2001-2002) Key Indicators of The Labour Market for Nigeria, the labour force participation rate (i.e. the measure of the extent of an economy’s working-age population that is economically active) was 66.8%, with a marked difference between men (86.7%) and women (47.6%). Figures showed that 48.8% were self-employed workers, with 41.9% wage and salaried workers. Most employment in the same year was found in the services sector (75.1%) followed by industry (22.0%) with agriculture (2.9%). Agriculture accounts for 30.1% of Nigeria’s GDP, offers informal employment to over 65% of the population force, and accounts for 70 percent of non-oil exports. 2.5.3 Youth unemployment is estimated to be around 1.2% among the 15-19 year age group. Many school leavers have difficulty finding employment in urban areas because they lack adequate job skills, while employers experience difficulties in recruiting skilled workers and production technicians. 2.6 Women in the Labour Market 2.6.1 It is estimated that half of the population of Nigeria are women, and they head about 14 percent of the households. Female workers aged 15 and above accounted for 47.6 percent of the labour force in 1995. Women’s share in the formal employment is only 19 percent. They constituted well over 40 percent in certain occupational categories (i.e. nursing and midwifery; primary school level teachers, secretaries; telephone operators; receptionists; clerks; etc.); and carry out about two-thirds of the informal sector activities (trading, handicraft making, catering

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service, hairdressing, laundry, dressmaking, etc.). Although women are increasingly being appointed as ministers and directors (currently 6 cabinet ministers, 14.29 % and 27% permanent secretaries are women), the majority of them are concentrated in the low rungs of the occupational ladder and non-managerial positions. Women’s participation in most scientific and technical occupations (architects, engineers, and others) is estimated to be less than 10 percent. 2.6.2 In 1997, about 48 percent of women were engaged in subsistence agriculture, mainly working on family farms. A large number of rural women combine subsistence faming with petty trading in the informal sector. About 70 % of the economically active women are self-employed while, 17 percent are employed by relatives. In urban areas, most women are engaged in trading, handicraft making, catering services, hairdressing, laundry, dressmaking and other similar jobs. Women’s ability to acquire marketable skills that lead to better paying jobs is handicapped due to their low access to education, quality skills development training and their low literacy rate (41 percent in 1999 with regional variation as low as 21 percent in the North). 2.7 The Informal Sector In Nigeria, the informal sector is typified by (a) dispersed production, (b) subsistence level of production and, (c) rural-urban dispersion. Although data is not readily available on the contribution of the sector to employment in Nigeria, it is likely to be equal or higher than the informal sector contribution in the other West African countries: Benin (47.9%), Cote d’Ivoire (52.7%), Gambia (72.4%), Ghana (78.5%), Mali (71.0%). Data from the Federal Office of Statistics revealed that less than 30% of primary and secondary school leavers combined proceed to the next level of education. This leaves 70% looking for work, largely in the informal sector. The informal sector represents an important part of the economy and certainly of the labour market and thus plays a major role in employment creation, production and income generation in Nigeria. Its significance to the economy is a challenge to policy makers faced with the goals of increasing the productivity of the informal sector activities; developing training and skills; and developing appropriate regulatory frameworks, and governmental reforms, amongst others. 2.8 Demand for Skilled Workers Rapidly changing economic and employment circumstances make it difficult to predict future demands for workers. The National Manpower Board (2003) estimated that during the Rolling Plan period, 2003-2005, the labour force will grow from 48.4 million to 50.2 million in 2005, i.e., by about 900,000 per year. The absorptive capacity of the economy is expected to rise from 42.15 million in 2003 to 44.28 million in 2005. In other words, 2.03 million employment opportunities are to be generated to reduce unemployment rate from 12.70 percent in 2003 to 11.79 percent in 2005. The projected sources for jobs creation are in petroleum, construction, food processing, tourism and recreation, ICT, health care, skilled office work and marketing. 3. THE VOCATIONAL EDUCATION SUB-SECTOR 3.1 Background 3.1.1 Skills acquisition is vital for an economy to compete and grow, particularly in an era of economic integration and technological change. Skill needs are widespread in Nigeria – they

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are not only demanded by the modern wage sector but also by the agricultural and informal sectors. Vocational and technical education and training is a direct means of providing workers with the skills more relevant to the evolving needs of employers and the economy. In Nigeria, the FGN increasingly views skills development as an important factor in the drive to enhance productivity, stimulate economic competitiveness and raise people out of poverty. 3.1.2 Vocational education is offered at junior and senior secondary level in the Technical Colleges, its primary role being the training of lower/middle-level manpower (i.e. skilled workers, craftsmen and women) for industry, commerce, agriculture, and services. In addition to the formal vocational education provided by the Technical Colleges, vocational training centers also provide training of artisans and operatives. At the equivalent of Secondary Education level, the National Business and Technical Examinations Board (NABTEB) conducts national examinations for candidates presented by Technical Colleges and awards the National Technical Certificate (NTC); National Business Certificate (NBC); Advanced National Technical Certificate (ANTC); and Advanced National Business Certificate (ANBC). These qualifications enable a graduate to enter into the labour market and/or proceed to higher vocational/technical education. 3.1.3 A Master Plan for 2001-2010 for the Development of the National Vocational Education system prepared by the Federal Ministry of Education (December 2000), aims at rehabilitating, expanding and revitalizing the national vocational education system. In particular, the Plan aims at reformulating national policy on vocational education, implementing the immediate and considerable expansion of vocational and technical education (VTE), developing a national system for technical teacher training, and instituting a national system of vocational qualifications. 3.1.4 These will be achieved through: a) revitalizing TVE in Nigeria by 2010; b) rehabilitation, modernization and expansion of structures and facilities to enhance technology, vocational and science teaching and learning at all levels of education; c) review and enrichment of TVE curricula for relevance and functionality; d) staff development, adequate recruitment and incentives for TVE teachers and instructors; and e) provision of information technology to all educational institutions. 3.2 Constraints in Vocational and Technical Education 3.2.1 Five major issues emerge as challenges to vocational and technical education in Nigeria. These are: (i) the external efficiency of VTE programs is extremely low due to labour market information not informing the design of the curricula; (ii) the quality of VTE programs is also extremely low due to lack of appropriate and adequate facilities, equipment, and staff; (iii) gender inequity, (iv) shortage of vocational education teachers, and (v) the institutional capacity of the Federal Ministry of Education and the Technology and Science Department for planning and administration of the VTE system is weak.

Low External Efficiency 3.2.2 A precondition for an effective VTE system is the availability of reliable labour market information. Reliable employment-related data are almost nonexistent. Available statistics depict only a small part of the total picture. The absence of valid and reliable labour market data and information means that vocational and technical schools have to plan their programs

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and curricula with insufficient information on the types and numbers of craftsmen and women, skilled workers and technicians that are in demand in the country. 3.2.3 Presently, Nigeria has no comprehensive labour market information system (LMIS). This leads to (i) difficulty in finding suitable workers for modern enterprises; (ii) increasing unemployment of school graduates, especially from the general secondary schools; and (iii) unmonitored frequent migration of workers. It is therefore necessary to systematically collect labour market information and share it with relevant agencies in the country. ILO and the National Manpower Board have been collecting some information on the labour market situation in Nigeria. These efforts will be complemented by the current project through the establishment of a labour market information system. 3.2.4 There is mismatch in training and labour market requirements because outdated curriculum continues to be used in training and preparing the needed qualified human resources. Even the curriculum that have been revised do not adequately reflect instructional materials, equipment, or in-service training needs. Neither is the private sector’s participation solicited. Textbooks, reference materials, computer courseware, multimedia packages, or other aids to teaching and learning are in short supply or nonexistent. Thus, few benefits from the revised curricula have occurred. Individual schools also need greater flexibility to adjust their programs to local demand, as the process of modifying centrally controlled curricula is bureaucratic and time consuming.

Low Quality Training Programs 3.2.5 There is a serious mismatch between the qualifications of job seekers and the skill requirements of employers, mainly because vocational and technical schools teach skills not relevant to market needs. As most students learned very narrow skills on old machines at schools, they often find themselves unemployed or working as unskilled workers. Most machines in factories, especially those in joint venture companies are new to the students. Therefore, employers have to retrain them to operate these machines. If unemployment and underemployment pose a serious long-term development challenge to the nation, the shortage of skilled labour caused by these mismatches is an immediate problem to be tackled in order to bring about economic growth. 3.2.6 The size of vocational and technical schools differs from one school to the other. Average school enrolment is about 700 students with high teacher-student ratios of up to 1:40 as against the federal government prescribed ratio of 1:20. A Federal Government policy which indicated 50 percent of graduates from secondary schools are to be admitted into universities, 20 percent in general secondary education, 20 percent in vocational and technical programs and 10 percent in apprenticeship schemes was recently abolished as a result of pressure from practitioners and the general population. The large number of students and small size of vocational and technical schools are a direct outcome of poor education policy and planning. Gender Inequity 3.2.7 With only 19 percent girls’ enrolment rate during the academic year 2001-2002, female participation in Nigerian Technical Colleges is strikingly low. The majority of girls in technical colleges are enrolled in vocational programs that lead to professions traditionally held by women (catering, secretarial, home economics and others). Although national data are

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unavailable to determine the sex disaggregated enrollment trend by subject, it is estimated that girls are underrepresented in vocational and technical educational programs such as mechanics, electronics, woodwork, and other technical areas. As the job market is requiring more and more technical and vocational skills, women can no longer afford to rely on the traditional narrow stream of professional options. Unless women have increased access to TVE and training that build diverse technical and vocational skills, their vulnerability to unemployment and poverty will be on the rise. Preliminary assessment suggests that the less enabling environment within technical colleges (gender biased curricula, lack of role models –limited number of female teachers, absence of quality guidance and counseling services, and others), lack of job prospects), and societal negative perception about women’s engagement in scientific and technical fields1 are contributories to the gender disparity in TVE in Nigeria. 3.2.8 The Nigerian Master Plan for Vocational Education (December 2000) recognizes this gender disparity as a problem, and recommends TVE respond with gender inclusive learning program both in content and delivery. Moreover, the plan recommends making the learning and working environment more suitable for the participation of girls and women. It further emphasizes the need to enhance teachers’ gender sensitivity in technical colleges through training and provisions of adequate materials. It also recommends enhancing women’s access to ICT. Assistance should be provided to materialize the various activities articulated in this Plan and support the achievement of its goal of increasing girls’ access to quality technical vocational education, and expanding women’s employment opportunities. Shortage of Vocational Education Teachers 3.2.9 A teacher gap analysis was conducted as part of the Education Sector Status Review (2003). A total of 1058 teachers are needed for all the federal science and technical colleges to meet current demand. The analysis shows that all the colleges lack adequate numbers of teachers, some do not have vocational teachers at all. The Master Plan for Technical and Vocational Education recognizes this challenge and has indicated in its action plan the training of 20,000 teachers (4,000 annually) for technical and vocational education by 2010.

Poor Planning and Administration

3.2.10 The planning and administration of VTE suffers from a series of problems that constrain the operation of existing programs and the development of new ones. The potential employers of VTE graduates are not sufficiently involved in planning, formulating, and evaluating training programs, as the VTE system was developed without adequate attention to labour market requirements. The administration of vocational and technical schools is also constrained by budgeting and accounting systems that do not permit planners to (i) determine the total costs or unit costs of specific training programs; (ii) estimate the most cost-effective means of meeting identified training needs; and (iii) make medium-term plans on the basis of available resources.

3.2.11 VTE programs lack clear priorities and are not developed on the basis of the market viability. VTE programs presently being offered or in the planning stage have not been evaluated relative to their ability to meet community, LGA, state, and national priority 1 National Commission for Colleges of Education : Dealing with Diversity: Gender Issues in Nigerian Colleges of Education (2003). UNESCO: Scientific, Technical and Vocational Education for Girls in Africa (1999) Working document.

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requirements. Program formulation, monitoring, and evaluation do not take into consideration the needs of employers and the labour market. Administrators are not trained in modern administration techniques with due emphasis on utilizing resources effectively. A system-wide policy reform is needed to effectively plan and manage the VTE system. 3.2.12 Under a UNESCO-Nigeria Project to support the Revitalisation of Technical and Vocational Education in Nigeria, efforts were made to revitalize VTE education. The main activities to be undertaken were: continuing staff development and training for VTE personnel; curriculum development for existing and new VTE disciplines; introduction of ICT education into VTE training; and support for initiating feasibility studies for new VTE project. The project has come to a halt as a result of the inability of UNESCO to raise the needed resources. 3.2.13 Resources will be required to restructure the current supply-driven vocational and technical education (VTE) system into a demand-driven system that responds to the country’s expanding private sector by rehabilitating and upgrading Federal Science and Technical Colleges, Teacher Training (Technical) Institutes, nomadic non-formal vocational training centres, and Women’s vocational training centre. In addition, the Technology and Science Department, Federal Ministry of Education as well as the National Commission for Colleges of Education (NCCE), the National Commission for Nomadic Education (NCNE), and the Africa Bilateral Relations Unit (ABER) of the Federal Ministry of Finance will need support to improve effectiveness and efficiency.

Donor Support to the Sub-Sector 3.2.14 In VTE, Nigeria has benefited from targeted support from a number of organizations (Annex 2). The International Bank for Reconstruction and Development (IBRD) of the World Bank Group supported the Technical Education Project (1989-1996) aimed at improving the quality of middle-level technical institutions and the strengthening of planning, management and coordination of Technical and Vocational Education at the NBTE and the FME. The DFID initiated a number of interventions including the Four Polytechnic Project (1981-1995) aimed at enhancing management and teaching capacity at some designated polytechnics and the Equipment Maintenance Program Project (1984-1995), which was aimed at establishing a methodology for the achievement of routine maintenance strategy in Nigerian polytechnics. UNESCO has also supported TVE Revitalization Project (2000-2002) to assist the Federal and States education authorities in their efforts to revitalize, reform and expand technical and vocational education. Japanese assistance to the Technical and Vocational Education sub-sector included a $858,800 Japan-UNESCO Trust Fund from 2000-2003. The Bank’s intervention is the first support to the Master Plan (see 3.1.3 & 3.1.4). JICA and the World Bank are considering further interventions in the sub-sector. The Bank’s support has been designed based on the need expressed by FGN, the NEEDS document and the absence of other players in the vocational education sub-sector. 4. THE PROJECT 4.1 Project Concept and Rationale 4.1.1 Nigeria recognizes that a productive, competent, and flexible workforce is a prerequisite for furthering its economic development. The demand for skilled workers and technicians is high and will become ever more intense as the private industrial sector becomes the dominant provider of employment. The mismatch between the qualifications of job seekers (trainees) and the skill requirements of employers (labour market) is due to vocational and technical education teaching

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outdated skills, with outdated curriculum, machinery and equipment and the lack of consultation with and the involvement of the private sector in VTE. This leads to a supply-driven system that does not respond to actual labour market needs and requirements. 4.1.2 The preparation and appraisal of the project is thus a direct response to address the mismatch in training, labour market requirements and employer involvement in VTE. The design was based on intensive consultations and full participation of Government officials, key stakeholders and development partners. 4.1.3 The project rationale and design also considered VTE’s significant contribution to poverty reduction as it will provide an opportunity for thousands of Nigerian youth to access quality vocational and technical education. Within the framework of EFA goals, the project will contribute to equitable access to appropriate learning and life-skills programs, basic and continuing education and reducing gender disparity by ensuring girl’s full and equal access to good quality vocational and technical education 4.1.4 This project is the first education sector initiative for the Bank in Nigeria. However, some lessons are worth noting from the recent project portfolio review and the Bank-supported social sector projects (Kwara State Health Project, Multi-State health Project, Health Systems Development Project, and Community-based Poverty Reduction Project) in Nigeria. The major conclusions are that these projects are under-performing for the following reasons: (i) the decentralized form of the federal government results in inadequate coordination and monitoring at the federal and state levels and is further complicated by the absence of formal agreed upon channels of communication between the Bank, the coordinating agency (ABER), the state Ministries of Finance and the executing agency; (ii) weaknesses in technical and managerial capabilities at the executing agencies level; (iii) having to deal with a large multiplicity of stakeholders and partners at different levels; (iv) inadequate planning of supervision missions by the Bank in terms of mission duration and skill mix; and (v) non-adherence to procurement and disbursement procedures, and non-compliance with the Bank’s general conditions in respect of quarterly progress reporting and audit. The lessons identified above are factored into the project design. Consequently, this intervention will be limited to the federal level and working with federal institutions. By strengthening capacities at the federal level, it is anticipated that a cascading effect will ensue, enabling the central government to assume greater leadership vis-à-vis the states and local governments. 4.2 Project Areas and Beneficiaries 4.2.1 The scope of the project will be limited to the facilities at the federal level. The activities envisaged cover all the six (6) geo-political zones of Nigeria. Of the 19 Federal Science and Technical Colleges in Nigeria, five (5) will benefit from the project activities. The colleges are: Ikare-Akoko (Ondo State), Lassa (Borno State), Ohanso (Abia State), Orozo (Abuja, FCT), and Uyo (Akwa Ibom State). The project will also cover 2 teacher- training institutions – Federal College of Education, Akoka, Yaba (Lagos State) and Faculty of Education, University of Nigeria, Nsuka Campus (Enugu State), to enhance quality teaching and learning. These institutions were identified by the Federal Ministry of Education based on geopolitical and gender equity concerns.

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4.2.2 The project will improve access to training for disadvantaged and underemployed young women and men, including basic education cycle school leavers. It will contribute to increasing female participation rates in VTE from its current 19% to 30%. The VTE centres will provide skills and expertise that should facilitate the integration of young Nigerian women and men into the mainstream of the economy. They will also provide them with skills in entrepreneurship and guide them in starting their own businesses. It will provide better training to a large number of full time and part-time trainees per year in the following range of fields: Civil Trades, Automotive, Mechanical, Electrical, Electronics, Hospitality and Tourism, Commerce and Business Support, Agriculture and Agro-Processing, Printing, Mining, Fish Processing and Modelling. 4.2.3 The beneficiaries will include students (boys and girls) in technical and vocational education; teachers/instructors, the five Federal Science and Technical Colleges; two teacher training institutions; pre-service teacher training students; two (2) nomadic non-formal vocational training centres (Ludduga Kachia and Kilometre 26 entres); women participants and senior staff of the National Centre for Women’s Development. The project will also benefit officials of the FME/TSD (including inspectors, assessors, principals/heads of colleges, support staff, test item writers, career counsellors and job placement officers); NCCE; NCNE, ABER; NBTE; and PTA/SMC members. 4.3 Strategic Context 4.3.1 The Government’s efforts to improve the socioeconomic conditions and living standards of the people through economic reforms and measures are constrained by the lack of skilled human resources. The large numbers of school dropouts who lack employment skills flood the unemployment market each year, with attendant social problems. The project is thus designed to respond to identified needs as spelled out in the homegrown NEEDS (PRSP), which is being linked to individual state government’s State Economic Empowerment and Development Strategy (SEEDS). The SEEDS document is the equivalent of the federal NEEDS (PRSP) document dealing with identical issues but at the state level. 4.3.2 The project will contribute to the achievement of the Bank Group’s overall goal of poverty reduction. It contributes to the goals of the Bank’s Education Sector Policy on the provision of middle- and high-level skills to enhance human resources for economic development in the RMCs. Further, the project supports the Country Strategy Paper for Nigeria by contributing to improved governance in the FME/TSD, and the Gender Policy by incorporating gender concerns and promoting gender equity and poverty reduction in the project activities. 4.3.3 The project is also in line with the achievement of the Millennium Development Goals (MDGs 1,3,6 and 8) in that it will contribute to poverty reduction through the improvement of skills, expertise and the competitiveness of the project beneficiaries. In addition, it fosters progress towards gender equality and women’s independence through the targeting of women’s institutions and skills training opportunities. It also contributes to the fight against HIV/AIDS through the project’s sensitisation initiatives and enhances cooperation with the private sector. 4.4 Sector Goal and Project Objectives The sector goal of the proposed project is to contribute to poverty reduction through human resources development. The objective of the project is to improve access to quality VTE in formal and non-formal training institutions in Nigeria. Attainment of this objective will contribute

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to the enhancement of employment-oriented skills training for Nigerian youth and women to access employment and income generating opportunities. 4.5 Project Description 4.5.1 The project will assist the Federal Government of Nigeria to restructure its present supply-driven vocational and technical education (VTE) system into a demand-driven system that responds to the country’s growing private sector. It will upgrade 5 Federal Science and Technical Colleges, 2 Teacher Training (Technical) Institutes, 2 nomadic non-formal vocational training centres, and 1 Women’s vocational training centre to improve their effectiveness and efficiency. These institutions will serve as demonstration centres to promote nationwide education reforms in the VTE sub-sector. The project comprises four components: (i) improving access to skills training and vocational education; (ii) enhancing quality and efficiency of skills training and vocational education; (iii) strengthening public-private partnership; and (iv) project management. The realisation of the above mentioned project outputs includes a range of activities/inputs as explained below: COMPONENT I: Improved Access to Skills Training and Vocational Education 4.5.2 This component will up-grade and improve five (5) participating Federal Technical Colleges. These are: Ikare-Akoko, Lassa, Ohanso, Orozo, and Uyo (Girls only). Two technical teacher- training institutions will receive upgrading, equipment and training. The Nigerian Centre for Women’s Development in Abuja, a federal non-formal vocational training centre for women, will also benefit from targeted interventions to enhance training. Two (2) existing nomadic vocational training centres will also be rehabilitated to act as models for post-primary level education. The project will provide interventions that are key to enhancing efficiency of the training centres, mainly workshops, training rooms, libraries, accommodation, teaching and learning materials, equipment and ICT development. The rehabilitations and improvements will provide appropriate quality training facilities to increase admission capacities at the training centres. 4.5.3 Rehabilitation works: This component includes the rehabilitation/expansion and equipping of existing buildings and construction of additional facilities at the 10 training centres. Fixed furniture items for workshops and other special purpose rooms in the centres will be integrated into the civil works contracts with special packages for the subcontracts. Rehabilitation works will include the provision of solar/generator powered electrical supply, water supply and water reticulation, KVP latrines, improved waste disposal systems, sanitary and recreational facilities and external works. Civil works will adhere to the building standards of Nigeria, as adopted by the FME. The old and non-functional furniture and equipment will be replaced in accordance with FME’s standard list of equipment. The appraisal mission visited some of the sites and carried out needs assessment. The works to be carried out and the costs are in consonance with the mission findings. Annex 4a-f (included in the PID) provides rehabilitation and equipment needs assessments as well as cost estimates. 4.5.4 The project will fund the services of consultants covering the disciplines of surveying, civil and structural engineering, architecture, mechanical and electrical engineering and quantity surveying to carry out the design and supervision of the rehabilitation and improvement of the participating training centres. An estimated amount of 12% of the civil works cost will be spent on the design and supervision consultancies. Full architectural and engineering designs will be developed and Bills of Quantities prepared for tenders. The consultants will also be involved in the

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construction supervision to final completion and handover, and would maintain full time clerk of works on site through the active contract period. 4.5.5 All the rehabilitated institutions will be provided with appropriate teaching and learning equipment, furniture, computers and accessories, curriculum-related teaching/learning resources (including appropriate textbooks, guides, reference manuals, library books, etc.) centre dining/kitchen, internet connectivity (where this is appropriate) and other essential items to enhance teaching and learning. 4.5.6 The project will finance, through counterpart funds, the procurement of 5 ordinary double-cabin pickups, and 7 tractors to be allocated to some of the FSTCs with a greater potential for their use in practical field training, production, and outreach activities. COMPONENT II: ENHANCED QUALITY AND EFFICIENCY OF STVE 4.5.7 This component aims to increase the provision of quality, competency-based skills training, with a particular focus on preparing in- and out-of school youth for entry-level employment and/or income-generating opportunities. The project will; (i) work with the private sector and employment training programs to determine curriculum content and market needs, (ii) strengthen the capacity to deliver competency-based skills training, and (iii) deliver coordinated training programs, to make training programs relevant to market and employer needs. 4.5.8 Curriculum review/development. The project will build on the UNESCO-Nigeria TVE Revitalization Project, re-appraise vocational education curriculum as well as training centre programs for skills/trades training and evolve a consolidated, flexible curriculum that responds to both learner and labor market needs. The revision will make the content of TVE curriculum more relevant to the needs and experiences of both female and male students. The project will support local capacity to design and develop competency-based skills training programs through workshops and training for 3 instructional program designers, 2 program developers, 2 trainers. All textbook writers and educators will be sensitized to develop gender sensitive teaching/learning materials. The project will also support an awareness raising and mobilization workshop for key actors (TSD, NCCE, NBTE, NCNE, and NCWD) on demand responsive and competency-based skills training. The project will finance the cost of a consultant, 7 workshops and training sessions. 4.5.9 Training. This activity will improve the supply and skills of formal and non-formal vocational/technical education teachers/instructors to improve the quality of teaching and learning in the beneficiary institutions. The project will support pre- and in-service training of teachers and instructors in their areas of specialization provide relevant teaching materials and reference materials and equipment for the libraries, resource centres and workshops. The project will support the training of pre-service nomadic teachers through scholarship/bursary. Open/distance learning will complement all teacher training activities under the project. 4.5.10 The project will further support training activities (short courses, seminars, workshops and study tours at national and/or regional levels) for 500 in-service teachers/instructors; 14 officers of the FME/TSD; 26 VTE training centre managers/administrators; 20 key participating partners managers/administrators (FME/TSD, NBTE, NCCE, NCNE, ABER, NCWD); 20 Assessors and Test Item Writers; 2 labour market analysts; 10 career counsellors and job placement officers; and 75 PTAs/SMCs members to enhance staff and organizational capacity in

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the provision of quality and cost-effective training in their specific areas of competence and responsibility. With the assistance of the gender officers from the FME, special emphasis will be given to skills for gender-focused promotional and marketing approaches. 4.5.11 Three person-months of technical assistance will be required for the development of the manual of procedures and for further development of site-based management for each of the 10 sites of the project. A total of 4 person-months will be used for the Promotion and Marketing of centre training programs to the private sector, civil society, parents and communities. 4.5.12 Studies. The project will fund a baseline study and participatory rapid assessment covering gender, teacher/instructor gap analysis, labour market and informal sector profiles. Based on the outcomes, the project will develop appropriate interventions to respond to specific issues. On girls’ education and access to VTE, a rapid institutional appraisal of the capacity of the Science, Technology and Mathematics (STM) Unit within TSD will be undertaken. The Unit is currently charged with the responsibility to enhance girls’ access, participation and retention in SMT subjects and VTE. The study will propose appropriate intervention strategies to strengthen the unit to provide policy direction, coordination and strategic leadership to enable gender mainstreaming and the development of the social capital of women. This will contribute to the achievement of the FGN’s gender objectives, EFA goals, and the MDGs. Technical assistance will also be extended to the NCWD to design a strategic plan for revitalizing training program and entrepreneurship development to respond to labour market demands and increase access to and quality training for women. A gender and education specialist (consultant) will be recruited to implement gender-related activities, and a total of 12 person-months will be required for these tasks. 4.5.13 The institutional appraisal will extend to Parent-Teacher Associations (PTAs) and/or School Management Committees (SMCs) to gain better understanding of the constraints that impede their meaningful involvement. Based on the conclusion of this assessment, the project will support the capacity development of PTAs/SMCs to create a girl-friendly environment within technical colleges and to be active participants in effective school management. 4.5.14 Equipment Maintenance Units. Maintenance units will be established in each of the project centre to be responsible for the maintenance of infrastructure, equipment, tools and vehicles. As a pilot initiative, 50 trainee technicians (5 from each participating institution) will be recruited and given 9-months training in the servicing, maintenance, repair and upkeep of all the equipment used in the centres. Each centre will be required to set aside a budget dedicated to maintenance every year, fixed according to the maintenance needs of each centre. An initial seed maintenance fund of UA 5,000 per annum per centre for the 10 project centres would be funded by the project over the project period. 4.5.15 As part of the capacity strengthening program administrators, managers, instructors, trainers, curriculum developers, heads of resource centres, assessors and maintenance technicians will be trained. COMPONENT III: STRENGTHENING PUBLIC-PRIVATE PARTNERSHIP 4.5.16 In line with the National Policy on Education’s requirement for ‘every technical college to establish and operate a production unit for on-the-job training of students and for commercial activities to sustain college operation’, and to improve practical training skills, and

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support the retention of skilled manpower as teachers/instructors, the project will expand the production units into business development centers in each of the participating institutions. The aim is to integrate existing production units into an outfit that would strengthen public-private-community partnerships through innovation, production and outreach while providing opportunities for entrepreneurship and hands-on experience. Business Development Centres 4.5.17 The Business Development Centres (BDCs) will include production units, and outreach and marketing outfits. The centres will provide services (for a fee) to small and medium enterprises (such as fishmongers, traders, small-scale farmers, commercial traders, etc.) and the private sector in the communities, and to government institutions. The centres will seek and execute small-size/manageable contracts such as radio and T.V. repairs, refrigerator repairs, vehicle repairs, furniture production and repairs, steel fabrication, painting and decoration, electrical wiring and installation, horticulture and animal husbandry production, tree planting, plumbing works, electrical works, and the rehabilitation of farming equipments. The centres will promote entrepreneurship amongst students and provide advice on self-employment and set up of small and medium enterprises. The centres will also serve as laboratories for innovation and market outlets for the VTEs. As a new approach, the BDCs will be closely monitored and the results shared with the FGN for adoption and scale up. 4.5.18 The project will rehabilitate/renovate 8 centres in the participating institutions. Consultancy will be provided to draw up the guidelines and an operations manual. The centre in each training institution will be partly equipped with essential production enhancing equipment to enable the trainees spend time working on marketable concepts and products. The private sector benefits from human resources and knowledge and the school benefits from additional revenue and access to modern equipment and industry practices. The project will fund workshops, model agro-production/processing units, appropriate technology showrooms, logistics, study visits, and the procurement of necessary inputs. It is anticipated that each participating institution would undertake at least 3 outreach activities annually from the second year of project implementation. 4.5.19 The project will support the conceptualization, design, and organization of and/or participation in 1 exhibition per year (nationally and regionally) per training center to showcase technological/scientific inventions/innovations, entrepreneurship activities/ideas, and processed/transformed goods or service. Through training, site visits, and demonstrations VTE centres will work with community women groups, youth and business/industry to enhance good practices, productivity, service provision, environmental practices, empowerment and civic action. COMPONENT IV: PROJECT MANAGEMENT 4.5.20 The project management and coordination component aims at organizing and anchoring the project components by assigning them to a responsible and effective organ that will facilitate and carry out project implementation including monitoring and evaluation. The FME, through its Technology and Science Department (TSD), will be the main unit to implement the project. Annex 6 shows the organigram for the TSD in relation to the PCU. 4.5.21 The FGN shall establish and provide office space to the Project Coordination Unit (PCU). The project will provide support by upgrading its office, providing office furniture and equipment,

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computer equipment, and consumables and supplies, and operating costs. It will also finance workshops and seminars on project activities programming, audit and evaluations costs. 4.5.22 The project will support the development of the capacities of the Technology and Science Department (TSD), to progressively take full responsibility for the project management function. This function involves coordinating all activities to be funded under the project including conducting supervision, monitoring and evaluating activities, liaising with the Bank on implementation matters, preparing quarterly project reports or other relevant reports, and provide leadership to support project implementation. Technical assistance will be provided to TSD to enable it carry out its obligations effectively. 4.5.23 An accounting/finance expert will be recruited to sensitise project staff on the manual of procedure (on the accounting system and procurement procedures). An audit firm will be recruited according to Bank’s rule of procedure for procurement of services for annual project funds audit according to the Bank rules. To augment the external audit services, two Bank audit supervision missions will be conducted during the project life. 4.5.24 The operational costs of the PCU in carrying out the administration; co-ordination and procurement activities, office equipment, and technical assistance staff travel allowance, will be met by the ADF funds for the 60 months of implementation. All other operational costs: - vehicle procurement and their operation and maintenance, office space costs, and local staff travel and allowances will be met by FGN counterpart funds. 4.6 Environmental Impact The project is classified as Category 2. No adverse effects to the environment are anticipated in the implementation of the project. The proposed sites are not likely to affect national parks, natural reserves and national monuments nor will they involve displacement of population, because the schools are already in existence and there are no new schools that will be constructed afresh. These centres are in conformity with the local development plans. The project’s impacts will involve landscaping, creation of open pits, production of construction waste materials, and dust emitted during construction. The project design ensures that all activities with potentially adverse environmental effects, especially as they relate to civil works, are clearly identified and mitigating measures built into them. The project will have beneficial effects on the environment as the educational facilities to be constructed under the project will include such environment-enhancing facilities such as water-borne waste disposal system with sewage disposal fields located at an appropriate distance from the main facilities. In addition the project design includes the planting of both fruit and non-fruit trees in strategic places of each centres’ surroundings. Finally, the inclusion of environment awareness and management courses in the teacher training modules will contribute to the dissemination of environment-friendly behaviors on the part of both the school administration and the students. Annex 5 shows the environmental mitigation plan for the project. 4.7 Project Costs The above description and parameters of the project are based on a total cost excluding taxes and customs duty of UA 33.71 million, out of which UA 23.70 million will be in foreign currency and UA 10.01 million in local currency. Costs have been estimated on the basis of information obtained from the Federal Ministries of Education, the Ministry of Finance, the Education Trust Fund, UNDP, the construction industry, and various stakeholders in the

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development sector. Incorporated in the cost estimates are a 6.76 % physical contingency factor and 8.68% for price escalation on local and foreign currency, which is a cumulative five-year inflation rate, starting 2006. Table 4.1 and 4.2 show the estimated project cost by component and by category of expenditure respectively.

Table 4.1 Estimated Project Cost by Component

UA million NGN million

COMPONENTS F.E. L.C. Total (UA) F.E. L.C. Total (NGN) %of TOTAL

I Improving Access to STVE 13.07 5.32 18.39 2637.98 1072.77 3710.75 54.54%II Enhancing the Quality & Efficiency of STVE

5.38 1.74 7.13 1086.83 351.44 1438.28 21.14%

III Public-Private Partnership 1.28 0.82 2.10 258.20 164.66 422.86 6.22%IV Project Management 0.30 0.60 0.90 59.63 121.02 180.65 2.66%Base Cost 20.04 8.47 28.50 4044.53 1708.57 5753.11 84.56%Physical Contingency 1.60 0.68 2.28 323.56 136.69 460.25 6.76%Price Contingency 2.06 0.87 2.92 414.97 175.30 590.27 8.68%TOTAL 23.70 10.01 33.71 4,783.06 2,020.56 6,803.62 100.00%

Table 4.2 Estimated Project Cost by Category of Expenditure

UA millions NGN (Naira millions)

CATEGORY F.E. L.C. Total F.E. L.C. Total % of Total cost

001 GOODS 5.73 1.86 7.59 1,157.09 375.48 1,532.57 22.53%002 WORKS 9.15 3.92 13.07 1,846.93 791.54 2,638.48 38.78%003 SERVICES 3.39 1.45 4.85 684.54 293.37 977.91 14.37%004 OPERATING COSTS 0.30 0.60 0.90 59.70 121.21 180.90 2.66%005 MISCELLANEOUS (Business Dev. Centres).

1.47 0.63 2.10 296.27 126.97 423.25 6.22%

Base Cost 20.04 8.47 28.50 4044.53 1708.57 5753.11 84.56%Physical Contingency 1.60 0.68 2.28 323.56 136.69 460.25 6.76%Price Contingency 2.06 0.87 2.92 414.97 175.30 490.27 8.68%TOTAL PROJECT COSTS 23.70 10.01 33.71 4,783.06 2,020.56 6,803.62 100.00%1 UA = 201.828.Naira (NGN)

4.8 Sources of Financing and Expenditure Schedule 4.8.1 The overall project will be jointly financed by an ADF Loan, and the FGN counterpart funds. The ADF loan will be UA 30.00 million comprising 89% of the total project cost of UA 33.71 million. The ADF loan will finance 97.89% of the project foreign costs and 67.93% of the local costs. The Federal Government of Nigeria will contribute UA3.71 million, representing 11.00% of the overall project cost of which 13.21% will be in foreign currency and 86.52% will be in local cost. The sources of finance are summarized in Tables 4.3, 4.4 and 4.5 below. 4.8.2 The total ADF contribution is allocated as follows: 66.53% for the Improvement of Access to STVE; 24.97% for the Enhancement of the Quality and Efficiency of STVE; 7.33% for the Strengthening of Public-Private Partnership through the development of Business Development Centres; and 1.17% for Project Management (Table 4.4). The ADF loan will finance costs relating to (i) the rehabilitation and expansion of core academic facilities of the

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selected ten (10) training centres; (ii) the provision of furniture and equipment for the rehabilitated and expanded core academic facilities; and practical training infrastructures of training centres, (iii) the setting up and operations of the business development centres; and, (iv) key monitoring and evaluation aspects of the management of the project.

Table 4.3 Estimated Cost by Source of Finance (UA million)

SOURCE F.E. L.C. Total % of TotalADF Loan 23.20 6.80 30.00 89.00%FEDERAL GOVERNMENT OF NIGERIA 0.49 3.21 3.71 11.00%TOTAL 23.70 10.01 33.71 100.00%% F.E. and L.C. 70.30% 29.70% 100.00%

Table 4.4

Estimated Cost by Source of Finance and Components

ADF (UA million) FGN (UA million) COMPONENTS FE LC TOTAL

(ADF) FE LC TOTAL

(FGN) TOTAL

I Improving Access to STVE 14.97 4.99 19.96 0.49 1.30 1.783 21.74 64.50%II Enhancing the Quality & Efficiency of STVE

6.37 1.12 7.49 0.00 0.94 0.935 8.43 25.00%

III Public-Private Partnership 1.51 0.68 2.20 0.00 0.28 0.28 2.48 7.35%IV Project Management 0.35 0.00 0.35 0.00 0.71 0.71 1.06 3.14%TOTAL 23.20 6.80 30.00 0.49 3.21 3.71 33.71 100.00%% of TOTAL 68.84% 20.16% 89.00% 1.47% 9.53% 11.00% 100.00%

Table 4.5 Estimated Cost by Source of Finance and Category of Expenditure

ADF (million UA) FGN (million UA) Total % of Total

CATEGORY FE LC ADF Total FE LC FGN Total 001 Goods 6.29 1.72 8.00 0.49 0.48 0.98 8.98 26.64%002 Works 10.82 3.53 14.35 0.00 1.11 1.11 15.46 45.86%003 Services 4.01 1.09 5.10 0.00 0.63 0.63 5.73 17.00%004 Operating Costs 0.35 0.00 0.35 0.00 0.71 0.71 1.06 3.14%005 Miscellaneous (Business Dev. Centres)

1.74 0.46 2.20 0.00 0.28 0.28 2.48 7.36%

Total 23.20 6.80 30.00 0.49 3.21 3.71 33.71 100.00%% of Total 68.84% 20.16% 89.00% 1.47% 9.53% 11.00% 100.00%

4.8.3 The planned expenditure pattern for the project by category and by source of finance during the 5-yr period is presented in Table 4.6 and Table 4.7. Annex 4 provides the summary of the list of goods and services and the expenditure per project center. Details for each center are presented in the Project Implementation Document, the Table of Contents of which is appended as Annex 7.

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Table 4.6

Expenditure Schedule by Category of Expenditure (UA Million)

CATEGORY OF EXPENDITURE 2006 2007 2008 2009 2010 Total Cost Total% 001 Goods 0.90 0.90 5.39 1.80 0.00 8.98 26.64% 002 Works 1.55 3.09 6.18 3.09 1.55 15.46 45.86% 003 Services 1.15 2.29 1.15 0.57 0.57 5.73 17.00% 004 Operating Cost 0.32 0.21 0.21 0.21 0.11 1.06 3.14% 005 Miscellaneous 0.25 0.50 0.99 0.50 0.25 2.48 7.36% TOTAL 4.16 6.99 13.92 6.17 2.47 33.71 100.00% % Total 12.33% 20.74% 41.30% 18.30% 7.34% 100.00%

Table 4.7 Expenditure Schedule by Source of Finance (UA Million)

SOURCES OF FINANCE 2006 2007 2008 2009 2010 Total Cost Total% ADF Loan 3.70 6.22 12.39 5.49 2.20 30.00 88.99% FGN 0.46 0.77 1.53 0.68 0.27 3.71 11.01% Total 4.16 6.99 13.92 6.17 2.47 33.71 100.00% % Total 12.33% 20.74% 41.30% 18.30% 7.34% 100.00% 5. PROJECT IMPLEMENTATION 5.1 Executing Agency The Executing Agency for the project will be the Technology and Science Department (TSD) of the Federal Ministry of Education (FME). The TSD shall be responsible for the planning, organization, management, supervision, and coordination of the project, as well as monitoring the progress achieved. It shall coordinate project activities with the relevant technical departments of FME, the education commissions, beneficiary institutions, civil society and stakeholder groups promoting gender equality. To strengthen its capacity and complement its staff a Project Coordination Unit will be established in the TSD to undertake the day-to-day activities of the project. The PCU will coordinate the project activities with the following key stakeholders: (i) Project Steering Committee, (ii) International Labour Organization (ILO); and, (iii) National Board for Technical Education (NBTE). The ADB’s Nigeria Country Office (NGCO) will provide assistance to the coordination of the project. 5.2 Institutional Arrangements

Project Coordination Unit (PCU) 5.2.1 The Technology and Science Department (TSD) has no past project management experience. However, in order to avoid the establishment of a parallel structure and to enhance project sustainability, a PCU will be set up in the TSD to ensure coordination and project implementation. The organization chart of the PCU is shown in Annex 6. The PCU will be headed by a Project Manager who will report to the director of TSD. The project manager will have the overall responsibility for the coordination, management and supervision of the project The project manager will sign a performance-based contract. The job description of the project manager is provided in Annex 8. A senior officer at the TSD will assume project management responsibilities until a substantive project manager is recruited through a shortlist. The PCU will require the services of technical assistance in the form of: a Procurement Officer

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(Procurement Unit); an Accountant (Finance Unit); a Monitoring and Evaluation Officer (M&E Unit); a Training Specialist to oversee all training activities; and an Architect (Civil Works Unit). The Accountant will be responsible for the management of all financial matters related to the project and will ensure implementation and monitoring of sound financial systems and procedures in accordance with ADF rules and regulations. The Monitoring and Evaluation Specialist will ensure that project outcomes are delivered on track and on time in accordance with agreed and approved work plans and ADF rules and regulations. All the positions will be filled through competitive recruitment acceptable to ADF rules and procedures. 5.2.2 The PCU will be responsible for the day-to-day administration and implementation of the project and liaison with ADF. The PCU will be responsible for ensuring (i) detailed project planning and scheduling, (ii) procurement of all goods and services, (iii) project accounting including arranging necessary audits, (iv) disbursement of funds including timely submission of withdrawal applications, (v) management of project account, (vi) monitoring of activities in the field, (vii) reporting to the Bank on project progress, and (viii) ensure skills to TSD. 5.2.3 The operational costs associated with the administration, co-ordination and procurement activities of the PCU for the successful implementation of project activities will be met by the project throughout the 5-year implementation period. Project Steering Committee 5.2.4 A Project Steering Committee (PSC) will be established to provide policy guidance on project issues. The PSC will, amongst others, a) undertake periodic reviews of all project activities and review all monitoring and evaluation reports; b) review problems emanating from credit disbursement and Government counterpart funds and flow of funds mechanisms; provide strategic direction to project management; c) approve annual work plans including financial plans and procurement; and d) contribute to resolving implementation constraints and propose remedial actions. The PSC, which will meet at least once every quarter, will be chaired by the Federal Minister of Education or her/his representative and members (of up to 9) will include representatives from the Federal Ministry of Finance (FMF), Ministry of Women’s Affairs, Ministry of Labour and Productivity, National Employers Consultative Assembly (NECO), Ministry of Youth, the private sector, civil society, and International Development Partners. The Project Director is secretary to the PSC. International Labour Organization (ILO) 5.2.5 The role of ILO will include the provision of specialized technical assistance (entrepreneurship education, labour market studies, etc.), textbook design, training and coordination. The choice of an experienced institution such as ILO is justified by: a) its leadership role and experience in skills training and vocational education worldwide; b) its strong comparative advantage in the provision of technical assistance and training of STVE personnel; c) its active country experience with the National Directorate of Employment (NDE) and the Manpower Board; d) its regional experience in Africa, especially in Kenya where it has established a strong and enviable record in vocational and technical education. National Board for Technical Education (NBTE) 5.2.6 NBTE will provide specialized technical assistance in curriculum review and design, accreditation, textbook development, and capacity building. It will coordinate with the

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National Colleges of Education (NCCE) and the Technical Teacher Training Program (TTTP) being managed by FME for teacher training. Through its past experience and the UNESCO-Nigeria TVE Revitalization Project, NBTE has acquired thorough knowledge and experience in this sub-sector and has build up good reputation with international development partners. It is also the only national education commission with expertise in this area. 5.3 Implementation Schedule It is envisaged that the loan will be approved in June 2005. Fulfillment of loan conditions and procurement will start thereafter. The project will be implemented over a period of 5 years from effectiveness of the loan, assumed to be in the fourth quarter of 2005. The key implementation target dates are summarized in Table 5.1 below.

Table 5.1 - Implementation Schedule ITEM ACTIVITY TARGET

DATE ACTION BY

A. ADMINISTRATION A.1 Board presentation 06-2005 ADF A.2 Loan signature 09-2005 ADF/FMOF A.3 Effectiveness 12-2005 ADF/FMOF A.4 Launching Mission 01-2006 ADF A.5 Mid-term review 01-2008 ADF/FMOE/FMOF A.6 Project Completion Report 12-2010 ADF/FMOE/FMOF B. WORKS B.1 Bidding documents approved (initial contracts) 12-2005 ADF/FMOE/FMOF B.2 Bids invited and received 02-2006 ADF/FMOE/FMOF B.3 Bids evaluated 02-2006 ADF/FMOE/FMOF B.4 Bid evaluation report approved 03-2006 ADF/FMOE/FMOF B.5 Contracts awarded 03-2006 ADF/FMOE/FMOF B.6 Construction completed (all contracts) 12-2009 ADF/FMOE/FMOF B.7 Defects Liability Periods Completed (all contracts) 06-2010 ADF/FMOE/FMOF C. PROCUREMENT OF GOODS C.1 Equipment for Project Management supplied 12-2005 ADF/FMOE/FMOF C.2 Equipment/furniture for project facilities supplied 12-2009 ADF/FMOE/FMOF D. TRAINING ACTIVITIES D.1 Approval of training programs 02-2006 ADF/FMOE/FMOF D.2 Training programs completed 12-2009 ADF/FMOE/FMOF E. CONSULTANCY SERVICES E.1 Shortlists approved 09-2005 ADF/FMOE/FMOF E.2 Bids invited and received 10-2005 ADF/FMOE/FMOF E.3 Bids evaluated 11-2005 ADF/FMOE/FMOF E.4 Bid evaluation reports approved 11-2005 ADF/FMOE/FMOF E.5 Consultants appointed 12-2005 ADF/FMOE/FMOF E.6 Auditors approved and appointed 03-2006 ADF/FMOE/FMOF

5.4 Procurement Arrangements

5.4.1 Procurement of goods, works and services financed by the ADF will be in accordance with the Bank’s Rules of Procedure for Procurement of Goods and Works or Rules of Procedure for the Use of Consultants, using the relevant Bank Standard Bidding Documents as

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appropriate. Procurement arrangements are summarized in Table 5.2 below and described in detail in the Project Operations Manual.

Goods 5.4.2 Goods amounting to UA 8.98million will be procured as described in Table 5.2. ADF amount of UA 8.0million will be used in this category. Learning equipment of UA 4.36million, computers and accessories of UA 1.12million, books and learning materials of UA 1.67million and dining hall and kitchen equipment of UA 0.49million will be procured through International Competition mode. Students’ hostels furniture including appropriate mosquito nets valued at UA 0.44 will be procured through National Competition mode, because of the small amount, and the dispersed periods the institutions will require the furniture. Five double cabin vehicles valued at (UA0.16m) and seven ordinary farm tractors with accessories to be used under the Business Development Centres, valued at UA 0.50million will be procured through National Shopping. This will enable selection of specialized dealers with service to be involved. Furniture and equipment for the PCU, which are required in the initial stage, will be procured through National Shopping, and direct purchase under the Post- Review consideration.

Works 5.4.3 Civil works contracts amounting to UA 15.46million for the rehabilitation and new works will be procured through International Competition Mode. Civil works contract will include the electrical, mechanical, structural and environmental engineering works. The civil works contracts for the learning areas will include built-in furniture, all essential furnishing and appropriate purposely designed fixtures to make the spaces suitable for the intended use. Civil works for staff housing will include built cupboards but no loose fitting furniture will be procured under the project. Services 5.4.4 The services of consultancy firms to carry out the work under Component I, related to the design and supervision of the rehabilitation and construction in the centers, valued at UA 1.47million, will be procured through Shortlist mode. 5.4.5 Technical Assistance and consultancy for various components of the project, valued at UA 2.43 million will be procured through Shortlist. These includes technical assistance on labour and vocational training advisory, curriculum development and VTE strategy, teacher training arrangements, Nomadic VTE advisory and nomadic activities implementation and will be procured through Memoranda of Understanding arrangement with ILO, NBTE, NCCE and NCNE, as they are the leading agencies specialized in the fields. Consultancy from PCU staff (5.2.1) will total UA 300,000 and comprising six contracts each (Project Manager, Training Specialist, Procurement Specialist, M & E Specialist, Architect, Accountant,) of value not exceeding UA 60,000 will be procured through shortlist of individual consultants. Since the contract amounts are below UA 100,000, the Borrower will place advertisement in the national press. Training costs covering resource persons; hiring of venues, per diems, stipends, transportation costs, purchase of stationery, and production of training manuals will be procured according to Government procedures. PCU will submit training schedules and budgets for Bank approval two months before the start of each training year. Annual external financial audits valued at UA 0.10 million will also be procured through Shortlist.

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Operating Costs 5.4.6 Local technical support to project management, recurrent expenditure, maintenance, travel costs, resource person costs, per diems, and allowances will be through the Revolving Fund based on Government procedures and ADF disbursement rules. Miscellaneous (Business Development Centres) 5.4.7 Business development activities, entrepreneurship support, innovation support, income generating ventures at the STVEs and outreach activities will be procured or funded through direct purchase arrangement, based on Bank approved work programme. PCU will provide programs of activities as presented through the STVEs, 2 months prior to commencement. Income generated from the Business Development Centres will be credited to the revolving fund at college level and will be declared for external financial audit.

National Procedures and Regulations 5.4.8 Tender Procedures and Regulations of the Federal Government of Nigeria have been reviewed and do not contradict the Bank’s Rules and Procedures.

General Procurement Notice 5.4.9 The text of a General Procurement Notice (GPN) has been agreed with FGN and it will be issued for publication in Development Business, upon the approval by the Board of Directors of the Loan Proposal.

Table 5.2 Procurement Arrangements

(UA millions)

CATEGORY ICB NCB SHORT LIST OTHER* TOTAL 001 Goods 8.98 [8.00]

Learning equipment (workshops and Labs)

4.36 [3.88]

Hostels furniture 0.44 [0.39] Computers and accessories 1.12 [1.00] Dining hall/ kitchen furniture and equipment

0.49 [0.44]

Books and learning materials 1.67 [1.49] All other equipment 0.9 [0.8]

002 Works 15.46 [14.36] 15.46 [14.36]003 Services 5.73 [5.1]

Design and supervision (civil works, electrical, mechanical, environmental management)

1.47 [1.31]

Technical Assistance 2.43 [2.16] Teacher Training 1.37 [1.22] Technical Studies 0.36 [0.32] External Audit 0.1 [0.09]

004 Operating Cost 1.06 [0.35] 1.06 [0.35]005 Miscellaneous (Business Development

Centers) 2.48 [2.20] 2.48 [2.20]

TOTAL 23.1[21.16] 0.44[0.39] 5.73 [5.10] 4.44 [3.35] 33.71[30.00]

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** OTHER MODES OF PROCUREMENT ITEM MODE AMOUNT (UA millions)

and ADF Loose Furniture Office furniture and

equipment. National Shopping (NSH)

0.17[0.14]

Other equipment 5No. Double Cabin pick-up utility motor vehicles

National Shopping 0.16[0.08]

7 No. Farm Tractors and accessories.

NSH 0.50 [0.44]

Solar Power Equipment

Limited International Competition (LIC)

0.28 [0.25]

Internet system LIC 0.17 [0.17] Business Development centers services and local training.

Entrepreneurship development activities, Public-Private sector partnerships, seminar facilities, transport hire, equipment hire, small-scale services hire etc.

Direct negotiation by MOU, NSH, SH, LIC Prevailing Government Procurement regulations.

2.48 [2.20]

Electric Power generators

NSH 0.80 [0.71]

TOTAL 4.56 [3.99] Review Procedures 5.4.10 The following documents are subject to review and approval by the Fund before

promulgation: - Specific Procurement Notices; - Shortlists and Requests for Proposals (RFP) for consultancy services and training

institutions; - Shortlists and Requests for Proposals (RFP) for project accounts auditors;

- Tender Evaluation Reports, or Reports on Evaluation of Consultants’ Proposals, including Recommendations for Contract Award;

- Draft Procurement Contracts, if these have been amended from the drafts included in the tender documents, and draft contracts for consultancy services and training.

- Where both technical and price proposals are a factor for selection in the RFPs, evaluation of technical and price proposals will be undertaken by Executing Agency as per rules of the Bank before the no objection is sought from the Bank.

- Lists, Designs, Specifications, Tender Documents, with Draft Contract Agreements for Civil Works, Furniture and Equipment.

5.5 Disbursement Arrangements 5.5.1 To ensure easy access to project resources, transparency of resource use and quick disbursement of funds for approved activities, project management will operate a Special Account (SA) to deposit ADF loan proceeds and a local currency account (LCA) to receive the counterpart funds designated for use by the project. The opening of the SA and of the LCA will be a condition precedent to first disbursement. As described in paragraph 5.4.1 above, the Bank will examine all procurement activities for approval before funds are released from the special accounts. The direct payment method will apply to consultancy services for: (i) Civil works consultancy services; (ii) Civil works contracts; (iii) Supply of equipment and furniture (iv) technical assistance and, v) external auditing. Procurement of these services will be initiated by the Project Coordinating Unit and are subject to the same review and approval procedures as

27

described above. All procurement deemed to fall short of ADF’s rules during post review will be paid for from counterpart funds. 5.5.2 An initial deposit for an amount corresponding to 4 months of activities as justified by a work program approved by the Bank will be made in the SA. Subsequent replenishments of the SA will be subject to the PCU having provided sufficient justifications for the use of at least 50% of the previous deposit and upon production of agreed work program for the following four (4) months. The opening of the two special accounts will be a condition precedent to the first disbursement. 5.5.3 To ensure adherence to agreed financial regulations, the special accounts will be monitored to ensure compliance with the FPM by the ADF financial supervision missions. Funds from the special accounts will only be released when the Bank has cleared disbursement and procurement requests. The ADF will replenish the SAs on receipt of valid justifications for at least 50% of the previous deposit. 5.6 Monitoring and Evaluation

5.6.1 In light of past experiences and the challenges of doing business in Nigeria, ADF will devote special attention to guiding, monitoring and evaluating project performance. ADF will review project implementation through quarterly reports and close supervision during the first 18 months of project take off, and supervision missions twice a year thereafter. The PCU will establish a project performance and monitoring system (PPMS), further detailing the qualitative and quantitative indicators specified in the framework in order to measure, assess, and monitor project outputs and impact in terms enrolments, skills training efficiency improvements, increased training and employment opportunities for women and the youth, lowered dropout rates, improved institutional capabilities, and improved equity. Project monitoring procedures will be refined and agreed with ADF. The PPMS will be an integral part of TSD’s management information system (MIS) to ensure continued monitoring and evaluation of the project performance after completion. 5.6.2 Quarterly Project Progress Reports (QPPRs) will cover progress measured against indicators in the project matrix. As part of the preparation of the QPPR, the M & E Specialist will ensure the development of a Project Progress Chart, indicating percentage of disbursement against the implementation status of each component of the project. At the end of the project the PCU will collate and submit a Project Completion Report (PCR) in accordance with the format recommended by the Bank. Additional reports and clarifications will be submitted to the Bank as and when required. 5.6.3 Project supervision will be especially demanding and time-consuming given the geographic spread. In addition to the necessary controls of implementation, procurement and financial management, there is a need to provide the project beneficiaries with implementation support. To monitor implementation and provide timely assistance, joint supervision missions including the Bank and representatives of the PCU will be effected twice a year. All the project sites will be covered at least once a year. 5.6.4 The Bank and the Borrower will also undertake a mid-term project review in the first quarter of 2008 to assess project performance of the beneficiaries, performance of intermediaries, cost-effectiveness, quality and probity of financial, procurement and accounting practices and implementation issues. This evaluation will use the interim indicators in the

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matrix and will recommend any necessary modifications to the operations manual or institutional arrangements and will be conducted in close co-ordination with all stakeholders. 5.7 Financial Reporting and Auditing

5.7.1 The Project Accounting Section in the PCU will maintain accounts in accordance with international accounting standards. It will ensure that accounting and financial management systems, acceptable to ADF, will include internal controls and procedures, and a set of records (general ledger, balance sheet, income statement, and loan tracking system and portfolio management reports). In order to ensure efficient monitoring of project expenditure, the PCU will maintain separate project accounts, which should correspond to the project budget. Detailed accounts concerning expenditure financed by the Fund and the Government should facilitate the identification of expenditure by project component, category of expenditure and source of finance. The accounts should clearly document disbursed amounts from the Fund by category of expenditure and the status of any special account. The accounts and ledgers will be kept separately from other projects under implementation. 5.7.2 Reputable and qualified external auditors will be appointed by the FME on terms of reference (TORs) acceptable to the ADF. This will be a loan condition. The auditors will audit the project accounts and financial statements in accordance with International Standards on Auditing (ISAs). The External Auditors will prepare and submit to ADF Audited Project Financial Statements (Consolidated) within six months after year end as well as audit reports which will include opinion paragraphs on the Audited Project Financial Statements (Consolidated); the accuracy and propriety of expenditures made under the accounting procedures; and the extent to which these can be relied upon as a basis for loan disbursements. Regarding each Special Account, the auditors will also be expected to form an opinion on the degree of compliance with ADF procedures and the balance at the year-end for each individual special account. 5.8 Aid Co-ordination 5.8.1 The FGN and development partners consider the National Policy on Education (revised 2004) and the education component of the NEEDS document as useful instruments for harmonising donor and development assistance inputs with government planning processes. The documents articulate the priorities of the FGN as well as strategies to achieve them. All the major donors operating in the education sector have committed finance, on a parallel basis, to the education component embodied in the NEEDS document to improve educational infrastructure, institutions, systems and services. Under the coordination of FME, the partners undertake periodic consultation meetings to monitor progress in the education sector. Some of the major donors operating in the sub-sector are contemplating interventions in vocational and technical education in the future (i.e. World Bank, JICA). Nevertheless, the partners undertake periodic consultation meetings to determine effective and efficient ways of supporting the FGN reform initiatives as they relate to the sub-sector. 5.8.2 The appraised project is based on wide consultations with development partners represented in the country. The funding of the project will complement the support of other donors in similar activities in the sector and sub-sector. The Technology and Science Department (TSD), under the Federal Ministry of Education, will ensure coordination of the proposed intervention with partners.

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6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs

6.1.1 The project is an integral part of Nigeria's National Policy on Education (NPE) and the Master Plan for 2001 – 2010 for the Development of the National Vocational System. The NPE stipulates clearly that FGN will ‘provide adequate funds for vocational/technical education’ (see Table 6.1). The table indicates an incremental allocation to recurrent expenditure for FME from 2000 to 2004, with only the exception of 2003. The average annual increase is estimated at 7.78%. The FGN, key partners, stakeholders and development partners endorsed all the interventions proposed within the project with the aim that the recurrent cost should be minimal. To do this, the project will improve the efficiency and effectiveness of existing facilities with appropriate equipment and supplies. Table 6.1: Federal Government Allocation to Education Sector 2000-2004 (billions of Naira) Year Capital Recurrent Total 2000 12.40 37.20 49.6 2001 15.00 45.00 60.0 2002 27.38 82.13 109.5 2003 19.85 59.55 79.4 2004 22.58 67.73 90.3 Source: Extrapolated from The Nigerian Statistical Fact Sheet on Economic Development, FOS (2004) and ESSR (2003). 6.1.2. The business development centres at the training centres will be able to generate 10% of the institution’s revenue by Year 5 through production and marketing of goods and services. Improvements in access and quality of facilities and the pedagogical environs will result in increased student enrolment ratio by 2010. The student increase will translate into more parental and community involvement and commitment which will contribute to increase in financial support, amongst others. Other cost savings initiatives will be undertaken such as energy-saving equipment/alternative energy source for powering/running tools and equipment. The baseline study will establish the level of participation of and contributions from the private sector. This will help to formulate action plans to optimize this window of opportunity. The project will also strengthen the maintenance unit (qualitatively and quantitatively) and support oversight functions to reduce costs. It is anticipated that all these efforts, coupled with increase in funding from the FGN will result in increased enrolments and maximum usage of the beneficiary institutions’ capacities that will contribute to minimum recurrent cost. 6.2 Project Sustainability 6.2.1 The sustainability of the project will be determined by increased private sector participation, ownership by key stakeholders, the implementation capacity of TSD, and the timely availability of adequate financial resources, including counterpart funds. A concerted effort has been made to build into the project design appropriate interventions such as stakeholder participation, income-generating activities, competency-based and demand-driven skills training, policy dialogue, and women’s participation, all of which will strengthen local ownership and contribute to sustainability. 6.2.2 In addition, capacity-building interventions have been incorporated in the design. Consequently, project funds are targeted for strengthening institutional and systems capacities at the TSD and VTE centres. Institutional sustainability will also be enhanced through training and

30

the establishment of staffing norms and enabling the availability of trained personnel to continue delivery of quality VTE. It will also ensure technical sustainability by building sufficient safeguards against dependency through the promotion of active transfer of skills (through training of trainers) at all levels. 6.2.3 The revenue to be generated through service provision and production activities together with the improvement in the management of the VTE centres is expected to produce the synergy needed for the training activities to be sustainable. Accordingly, all the VTE centres in the project will be expected to implement the conditionality of drawing up plans for effectively promoting and marketing training programs, run production and service activities with a view to incrementally increasing revenue that will contribute to recurrent and developmental costs. The concept of a demand-driven VTE in Nigeria is new. Consequently, the initiative will be monitored closely, and emerging lessons and practices carefully analysed to inform policy and decision-making. 6.3 Critical Risks and Mitigating Measures

6.3.1 Inadequate Implementation Capacity. The main risk of the project is related to delays in implementation due to institutional capacity, as TSD has no past experience in project implementation. To minimize the risk, advisory/backstopping TA to strengthen the management and institutional capacity of TSD will be provided before the start of the project implementation. A PCU will be set up within TSD to oversee project implementation. The Unit will ensure the progressive transfer of skills and know-how to TSD. In addition, the Bank will organize a training workshop on project management, procurement, and consultant recruitment for staff. Supervision will be intense during the first 18 months of project implementation. The project will include substantial complement of reputable consultants to upgrade the capacity of TSD in labour market monitoring, public-private partnerships, financial management, monitoring and evaluation, procurement, and coordination with private industries. The NGCO has recently hired a social sector program officer and she/he will be required to provide oversight functions of the project implementation. 6.3.2 Shortage of trained teachers: Well-trained teachers and instructors for the new vocation and skills curricula will not be readily available. The project will address this problem through the staff development program whereby sufficient numbers of teachers and administrators will be trained. The project will support the fast tracking of the Technical Teacher Training Program (TTTP) currently run by the FME/TSD as well provide financial support to bridge the gap in teacher supply to the beneficiary training centres. In addition, in-service training for vocational teachers and instructors will be conducted under the project. 6.3.3 Project size and scale: The geographic coverage of the project (six geopolitical zones) and the distance between project sites/locations makes it difficult for frequent supervision by the PCU. To minimize this risk, TSD/FME capacity in monitoring will be greatly enhanced. In addition, ‘Project coordinators’ will be identified at each beneficiary institution who will have oversight functions and liaise on regular basis with the M&E and Training officers at the PCU to provide regular feedback and update on project progress. PTAs/SMCs will also be involved in monitoring and providing oversight functions. The Bank will also undertake supervision mission at least twice a year and to be able to intense supervision (1 mission per quarter) during the first 18 months will be undertaken by the Bank.

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6.3.4 Financial Mismanagement: Poor financial management and lack of accountability pose a great challenge to donors and all levels of government in Nigeria and to project sustainability. To mitigate this, the project interventions are limited to only federal institutions and will include substantial complement of reputable consultants to monitor procurement, disbursement flows, and project implementation. The Bank will also provide intense supervision through field visits, request for project progress reports, and active involvement of stakeholders and civil society. The NGCO has recently hired a social sector program officer and she/he will be required to provide oversight functions to project implementation. 7. PROJECT BENEFITS 7.0.1 Better-trained skilled workers from an improved and articulated delivery system with upgraded training facilities, instructors, curriculum, skill standards, and certification will provide skilled workers and craftsmen and women for industry and the private sector. At the same time, income generating mechanisms will be provided and incomes of vulnerable groups especially women, will be enhanced and will have beneficial effects on health and quality of life. The number of school dropouts will be reduced and their wasted potential harnessed through skills training centres. 7.0.2 The integrated and certification system of training will allow for greater articulation within the training sector and afford trainees the opportunity for horizontal and vertical mobility within the training system. The dropout problem and attendant social ills will be reduced. The benefits of rationalized and integrated national system will be reflected in improved quality and relevance of training and the qualitative expansion of the skilled worker pool. The private sector will have a wider choice of qualified workers with consequent gain in productivity. 7.0.3 Coordinated and integrated training will increase trainee enrolment and the sharing of facilities and other resources among training centres will result in more cost effective delivery. The efficiency of management too will improve. With TSD taking the pivotal advisory and regulatory role, an articulated curriculum will emerge. This together with better-trained teachers and managers, upgraded workshops, equipment, standardized tests, certification, and curricula relevant to labour market needs will significantly improve the quality of training. 7.1 Social Impact Analysis

7.1.1 The project was designed with two groups in mind. The first and largest of the target groups comprises young people between the ages of 15 to 25. More than two-thirds of this group is currently either unemployed or underemployed. This large and important segment of the population represents Nigeria’s greatest potential for future economic growth and societal well being. Failure to develop their job skills relative to the expectations of business and industry will render years of effort at the vocational and technical school irrelevant. On the other hand, strengthening the job-readiness of this age group will be an advantage to the economic and social prospects of these individuals, their families and the country. 7.1.2 The second group is young women who need to develop knowledge, skills, and work experience commensurate with their potential. The project will take active measures to correct gender-related disadvantages, such as campaigns to recruit young women as VTE students, the strengthening of the capacity of the National Centre for Women Development, the designing of special teacher training courses to reduce gender biases in VTE, and targeted career guidance and job placement services. During the project period, 50% of direct beneficiaries will be women. One

32

of the important task will be to sensitize other units and to the many no-cost opportunities to serve the needs of women. Affirmative action will also be encouraged on behalf of other target groups: members of ethnic minorities such as the nomadic population, handicapped persons, and the poor. 7.1.3 Social impacts of the project will be monitored by examining: (i) enrolment patterns in VTE centres; (ii) employment rates of youth, women, handicapped persons, the poor, and minorities; (iii) average salaries and starting employment positions of the target groups. Technical assistance will be extended to TSD in implementing this portion of the project. 7.1.4 Benefits will also accrue to up to 500 teachers/instructors and administrators involved in VTE in the 10 training centres and 20,000 trainees whose schools will have access to improved curricula and instructional resources. These teachers/instructors and administrators will build new knowledge, skills, and attitudes as a result of professional career development programs. Qualitative benefits to the programs, schools, staff, students, graduates, and employers will soon be felt with the establishment of a Labour Market Information System, as well as program career counselling, accreditation, and the technical certification systems. 7.1.5 The project also promotes self-reliance and empowerment among beneficiaries. For trainees who become employable, this will mean increased financial independence and freedom from chronic dependency on families and society. Impact on gender

7.1.6 The project will have direct impact on increasing girls’ and women’s access to quality skills development training at both the Technical Colleges and the National Centre for Women Development. Through the development of strategic frameworks on gender and education and a VTE strategic policy, together with the training of staff and teachers on gender sensitive teaching methods, the project will assist in creating a more enabling environment for equal participation of girls and boys in VTE. Moreover, the outreach and sensitisation components of this project will aim to bring about positive attitudinal changes about girls’ involvement in among parents, VTE educators, employers and the community at large. This in turn will increase girls’ demand for VTE. It will also contribute to building women’s competence in professions where women are underrepresented. Girls’ assertiveness and leadership skills will be enhanced through various activities including the strengthening of school clubs around socially relevant areas at beneficiary institutes. By addressing the gender stereotyping of professions, through various means, including the provision of appropriate guidance and counselling services, interested boys will be encourage to broaden their career options and specialize in professions traditionally held by women.

7.1.7 The project will support the rehabilitation and retooling of specific women’s VTE centres such as the National Centre for Women’s Development in Abuja and the Women’s Technical College in Akwa Ibom State. 7.1.8 The AIDS pandemic is slowing down growth in the West African sub-region, including Nigeria. The inclusion of life skills in the curriculum will assist in combating HIV/AIDS. The availability of the facilities of multi-media and access to the Internet can be exploited to further sensitise people on the ill effects of AIDS and the different measures to combat it. The range of information for potential trainers and trainees will have both an orientation and educational purpose. The promotion/marketing of training to be carried out under the project will offer an increasing number of youths with information for making informed choices on training and

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employment options. Likewise, effective information packages will be made available to all with regard to healthy living, with emphasis on HIV/AIDS and Sexually-transmitted Diseases (STDs). 7.2 Economic Impact Analysis

7.2.1 Increased employment and self-employment opportunities will contribute to improved earnings and reduction in poverty. With increased awareness of the benefits of skills and entrepreneurial training through fairs, exhibitions, and publicity awareness campaigns, local community members will be motivated to experiment with, for instance, farming, animal husbandry, fish management, and processing to augment their incomes. The establishment of business development centres will promote increased economic activity. 7.2.2 Through the project’s various components, the matching of labour supply with labour demand will improve. The involvement of the private sector, the Government, and skills practitioners in determining the human resource needs in the selected sectors and in developing needed programs will yield good quality labour market information and more appropriate training programs. Up to 20,000 youths will receive employment-oriented skills training over the project life that meet employer requirements. The direct benefits to the families of the 20,000 trainees will improve the lives of about 60,000 people (each trainee contributing to at least 3 family members). The local economies will benefit from the infusion of new skills and trained people, leading to job creation from entrepreneurial ventures. 7.2.3 The continuing growth of the Nigeria economy calls for commensurate human resource development at all levels, including relevant intermediate skills and entrepreneurship qualities. Such a growth will require better quality human resources for production. The beneficiaries are not only the number of trainees who will annually benefit from the acquisition of competencies relevant to their jobs but the economy and the country at large. The relationship developed with the private sector will strengthen the link between the two and lead to increase productivity. The improved availability of a trained work force is also an asset in attracting foreign direct investment. 7.2.4 In sum, the benefits to be derived from the project are: (i) the improvement in the management of the system will reduce the cost of training; (ii) the trainers will be better qualified and motivated to perform their jobs and increase productivity levels; (iii) the trainees will spend less time in mastering the different skills; (iv) the parents and the community will spend less resources to produce a skilled graduate. 8. CONCLUSIONS AND RECOMMENDATIONS

8.1 Conclusions

8.1.1 With the publication of the National Policy on Education (revised 2004)and the Master-Plan for Technical and Vocational Education Development, the FGN marked its commitment to improve the relevance, quality and delivery systems for vocational education and training. The Education Sector Review and the Education Sector Status Report developed for the purposes of better formulating policies, designing programs and deciding on suitable management arrangements, facilitating coordinated donor interventions, and for dialoguing with stakeholders, are all concrete manifestations of commitment.

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8.1.2 The conception and design of the project takes into consideration the foregoing issues. It is therefore expected to constitute a major contribution to the realization of FGN’s commitments to the revitalisation and improvement of TVE as part of the implementation of the education sector reform.

8.1.3 The project is socially and economically desirable, as well as being technically feasible. It will offer increasing opportunities for training to significant numbers of young men and women, reduce regional disparities in training centres availability, contribute to the development of an important range of skills needed by the economy. With its demand-driven principle, its chances of contributing to the reduction of under-employment and unemployment are very high.

8.2 Recommendations and Conditions for Loan Approval

8.2.1 It is recommended that an ADF loan not exceeding UA 30.0 million be extended to the Federal Republic of Nigeria for the purpose of implementing the project as described in this report. The loan will be subject to the following conditions: Conditions Precedent to Entry into Force 8.2.2 The entry into force of the present Loan, under the terms of Section 5.01 of the General Conditions, is also subject to the fulfilment of the following specific conditions.

Conditions Precedent to First Disbursement of Loan 8.2.3 The obligations of the Fund to make the first disbursement of the loan shall be conditional upon entry into force of the Agreement and the fulfilment by the Borrower of the following conditions: The Borrower shall have:

i) provided evidence that a Special Account for ADF resources and a Project Account (for Government contribution) have been opened in a financial institution acceptable to the Fund, into which the proceeds of the project will be deposited. (para 5.5.1).

ii) provided proof of the establishment of the Project Steering Committee (PSC) to

undertake periodic reviews of all project activities and review all monitoring and evaluation reports and approve annual project and financial work plans. The PSC will be chaired by the Federal Minister of Education or her/his representative and will include representatives from the Federal Ministry of Finance (FMF), Ministry of Women’s Affairs, Ministry of Labour and Productivity, National Employers Consultative Assembly (NECO), Ministry of Youth, the private sector, civil society and International Development Partners.

iii) provided evidence of the designation of a senior staff of TSD as interim project

manager, whose CV is acceptable to ADF (para. 5.2.1)

iv) provided evidence of allocation of office space to the PCU (para. 4.5.21)

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Other conditions :

The Borrower shall have:

i) four months after loan effectiveness prepare and submit a training program for the training activities under the project (para. 4.5.8 – 4.5.10).

LASSA FSTC

AKOKA FCE NSUKA CE

UYO FSTC

IKARE FSTC

OROZO FSTC

OHANSO FSTC

LUDDIGA-KACHIA

KM-KADUNA NC

Annex 2

Federal Government of Nigeria

Donor Support to Education Sector in Nigeria- 1997-2006 Donor Program/Project Amount Period DfID Four Polytechnic

Project £1,592,000

1989-1995 DfID Equipment

Maintenance Project £1,200,000

1989-1995 DfID National Board for

Technical Education £588,000 1988-1992

DfID Federal Technical College

£574,000 1988-1992

DfID NBTE Phase 2, 4 polytechnics consolidation

£840,000 1992-1997

DfID NBTE2 & 4 polytechnics evaluation

£15,000 1993- 1998

World Bank (IBRD) Technical Education Project

US$23.3 million

1989-1996

World Bank 1. Fist Primary Education Project

USD 65.0 million

1992-2000

2. Second Primary Education Project

USD 55.0 million

2000-2003

3. Universal Basic Education I

USD 101 million

2003-2006

4. Universal Basic Education II

*USD 300.0 million

2006-2010

UNESCO Education Sector Analysis

USD 1.2 million

2000-2003

UNICEF 1. Support for School Learning and Girls Education

USD 3.0 million

2000-2003

DfID Community Education Project

USD 5.0 million

1997-2002

USID Universal Basic Education

USD 13 million

2001-2004

USID/DfID Basic Education *UDS 25.0 million 2005-2010 Japanese Embassy Basic Education

through Grass Roots UDS 0.47 million 1999-2002

Key: * At design stage/budgeted.

Annex 3 Bank Group Operations in Nigeria (March 2005)

Source of Finance Sector Project title Approval date Signature date Approved UA Signed UA Cancelled UA Net Commitments

UA Cumulative

Disbursements in UAUndisbursed Balance UA Disbursement ratio

ADB Agriculture BACITA SUGAR EXPANSION 21-Nov-89 21-Oct-90 67,480.00 67,480.00 7,203.40 60,276.60 60,276.60 - 100.00 percent

ADB Agriculture SUGAR EXPANSION PROGRAMME 22-Mar-71 24-Mar-72 1,600.00 1,600.00 170.56 1,429.44 1,429.44 - 100.00 percent

ADB Agriculture FORESTRY DEVELOPMENT 28-Oct-86 23-Oct-87 69,550.00 69,550.00 26,240.32 43,309.68 43,309.68 - 100.00 percent

ADB Agriculture SAVANNAH SUGAR REHABILITATION 23-Sep-91 20-Jun-94 45,800.00 45,800.00 154.25 45,645.75 45,645.75 - 100.00 percent

Agriculture Total 184,430.00 184,430.00 33,768.54 150,661.46 150,661.46 - 100.00 percent

ADB Finance NACB LINE OF CREDIT II 18-Dec-90 11-Jul-91 100,000.00 100,000.00 176.23 99,823.77 99,823.77 - 100.00 percent

ADB Finance AGRICULTURAL LINE OF CREDIT 24-Mar-87 23-Oct-87 73,000.00 73,000.00 359.91 72,640.09 72,640.09 - 100.00 percent

ADB Finance NBCI LINE OF CREDIT 23-Sep-86 4-May-87 40,000.00 40,000.00 5,215.72 34,784.28 34,784.28 - 100.00 percent

ADB Finance SMALL AND MEDIUM ENTERPRISES 29-Jan-91 11-Jul-91 100,000.00 100,000.00 - 100,000.00 100,000.00 - 100.00 percent

ADB Finance NIDB LINE OF CREDIT 23-Mar-89 30-May-89 80,000.00 80,000.00 10,355.33 69,644.67 69,644.67 - 100.00 percent

Finance Total 393,000.00 393,000.00 16,107.20 376,892.80 376,892.80 - 100.00 percent

ADB Ind/Mini/Quar INDUSTRIAL EXPORTS SUPPORT PROJECT 3-Mar-93 20-Jun-94 150,000.00 150,000.00 150,000.00 - - - 0.00 percent

ADB Ind/Mini/Quar BANKNOTE AND SECURITY PAPER PROJECT 24-Aug-94 57,060.00 - 57,060.00 - - - 0.00 percent

Ind/Mini/Quar Total 207,060.00 150,000.00 207,060.00 - - - 0.00 percent

ADB Multi-Sector EXPORT STIMULATION PROJECT 26-Jun-87 30-May-89 180,000.00 180,000.00 68.85 179,931.15 179,931.15 - 100.00 percent

ADB Multi-Sector ANAMBRA STATE RURAL INFRASTRUCTURE 21-Apr-89 18-Dec-89 81,700.00 81,700.00 20,295.96 61,404.04 61,404.04 - 100.00 percent

Multi-Sector Total 261,700.00 261,700.00 20,364.80 241,335.20 241,335.20 - 100.00 percent

ADB Transport ENUGU AIRPORT RECONSTRUCTION 26-Jan-72 24-Mar-72 3,400.00 3,400.00 244.20 3,155.80 3,155.80 - 100.00 percent

ADB Transport CALABAR AIRPORT RECONSTRUCTION 27-Jun-74 6-Nov-74 4,750.00 4,750.00 2,403.93 2,346.07 2,346.07 - 100.00 percent

ADB Transport RECONSTRUCTION OF IBADAN-ILORIN ROAD 15-Dec-94 107,800.00 - 107,800.00 - - - 0.00 percent

Transport Total 115,950.00 8,150.00 110,448.13 5,501.87 5,501.87 - 100.00 percent

ADB Water Sup/Sanit IBADAN WATER SUPPLY II 2-May-91 19-Dec-91 74,140.00 74,140.00 3,502.15 70,637.85 70,637.85 - 100.00 percent

ADB Water Sup/Sanit NIGER STATE WATER SUPPLY 17-Apr-90 27-Nov-90 61,690.00 61,690.00 2.90 61,687.10 61,687.10 - 100.00 percent

ADB Water Sup/Sanit BENDEL STATE WATER SUPPLY 12-Jun-90 18-Jan-91 78,740.00 78,740.00 - 78,740.00 78,740.00 - 100.00 percent

ADB Water Sup/Sanit PLATEAU STATE WATER SUPPLY 2-May-91 19-Dec-91 90,170.00 90,170.00 - 90,170.00 89,948.39 221.61 99.75 percent

ADB Water Sup/Sanit BAUCHI TOWNSHIP WATER SUPPLY PROJECT 18-Oct-88 30-May-89 44,950.00 44,950.00 (0.84) 44,950.84 44,950.84 - 100.00 percent

ADB Water Sup/Sanit IBADAN WATER SUPPLY 23-Dec-86 4-May-87 26,000.00 26,000.00 - 26,000.00 16,180.48 9,819.52 62.23 percent

ADB Water Sup/Sanit FIRST MULTI-STATE WATER SUPPLY PROJECT 2-Oct-92 29-Jun-94 119,100.00 119,100.00 - 119,100.00 111,268.77 7,831.24 93.42 percent

ADB Water Sup/Sanit GOMBE WATER SUPPLY 24-Aug-94 51,100.00 - 51,100.00 - - - 0.00 percent

Water Sup/Sanit Total 545,890.00 494,790.00 54,604.21 491,285.79 473,413.42 17,872.36 96.36 percent ADB Total 1,708,030.00 1,492,070.00 442,352.88 1,265,677.12 1,247,804.75 17,872.36 98.59 percent

2

Source of Finance Sector Project title Approval date Signature date Approved UA Signed UA Cancelled UA Net Signed UA Cumulative

Disbursements in UAUndisbursed Balance UA Disbursement ratio

ADF Agriculture AGRO-CLIMAT.AND ECOLOGICAL ZONES STUDY 23-Mar-92 11-Sep-92 782,894.00 782,894.00 1,002.21 781,891.79 781,891.79 - 100.00 percent

ADF Agriculture ANIMAL VACCINE AND DRUG PRODUCTION STUDY 18-Dec-92 13-May-94 520,000.00 520,000.00 520,000.00 - - -

ADF Agriculture COMMUNITY-BASED AGR. & RURAL DEVELOPMENT 11-Sep-03 12-Dec-03 13,000,000.00 13,000,000.00 - 13,000,000.00 - 13,000,000.00 0.00 percent

ADF Agriculture ENYONG CREEK SWAP RICE STUDY 28-Aug-91 8-May-92 1,418,420.00 1,418,420.00 83,488.33 1,334,931.67 1,334,931.67 - 100.00 percent

ADF Agriculture FORESTRY RESOURCES STUDY 21-Oct-93 13-May-94 2,717,000.00 2,717,000.00 122.21 2,716,877.79 2,716,877.79 - 100.00 percent

ADF Agriculture HADEJIA VALLEY IRRIGATION 25-Nov-91 36,842,080.00 - 36,842,080.00 - - -

ADF Agriculture INSTITUTIONAL STRENGTH. PROJECT TO NACB 21-Apr-92 9-Oct-92 4,605,260.00 4,605,260.00 1,521,352.86 3,083,907.14 3,083,907.14 - 100.00 percent

ADF Agriculture MIDDLE RIMA VALLEY STUDY (GRANT) 21-May-91 19-Dec-91 1,722,367.00 1,722,367.00 65,219.29 1,657,147.71 1,657,147.71 - 100.00 percent

ADF Agriculture National Fadama Development Project 10-Dec-03 12-Dec-03 22,000,000.00 22,000,000.00 - 22,000,000.00 - 22,000,000.00 0.00 percent

ADF Agriculture RIVER BASINS IRRIGATION PLANNING STUDY 24-Jun-92 4-Nov-92 3,684,208.00 3,684,208.00 3,684,208.00 - - -

ADF Agriculture RIVERS STATE RICE DEVELOPMENT (GRANT) 25-Feb-91 4-Dec-91 1,381,578.00 1,381,578.00 719.29 1,380,858.71 1,380,858.71 - 100.00 percent

ADF Agriculture SAVANNAH SUGAR REHABILITATION 23-Sep-91 4-Nov-92 6,447,364.00 6,447,364.00 46,132.82 6,401,231.18 6,401,231.18 - 100.00 percent

Agriculture Total 95,121,171.00 58,279,091.00 42,764,325.01 52,356,845.99 17,356,845.99 35,000,000.00 33.15 percent

ADF Environment NIGER DELTA SOCIAL AND ENVIRONMENT STUDY 30-Jun-04 29-Jul-04 1,700,000.00 1,700,000.00 - 1,700,000.00 - 1,700,000.00 0.00 percent

Environment Total 1,700,000.00 1,700,000.00 - 1,700,000.00 - 1,700,000.00 0.00 percent

ADF Multi-Sector INST. SUPPORT FOR GOVERNANCE, CAPACITY 18-Oct-01 7-Dec-01 4,000,000.00 4,000,000.00 - 4,000,000.00 1,026,024.21 2,973,975.79 25.65 percent

Multi-Sector Total 4,000,000.00 4,000,000.00 - 4,000,000.00 1,026,024.21 2,973,975.79 25.65 percent

ADF Social BAUCHI STATE HEALTH 16-Jan-90 4-Jul-90 22,547,353.00 22,547,353.00 - 22,547,353.00 22,547,353.00 - 100.00 percent

ADF Social COMMUNITY-BASED POVERTY REDUCTION PROJECT 3-Nov-00 2-Feb-01 20,000,000.00 20,000,000.00 - 20,000,000.00 103,688.45 19,896,311.55 0.52 percent

ADF Social HEALTH SERVICES REHABILITATION PROJECT 29-Oct-92 12-May-93 55,263,120.00 55,263,120.00 7,088,769.78 48,174,350.22 48,174,350.22 - 100.00 percent

ADF Social HEALTH SYSTEMS DEVELOPEMENT PROJ.(IV) 11-Sep-02 15-Oct-02 34,740,000.00 34,740,000.00 - 34,740,000.00 2,044,275.28 32,695,724.72 5.88 percent

ADF Social KWARA STATE HEALTH PROJECT 18-Dec-90 11-Jul-91 13,078,938.00 13,078,938.00 800,000.00 12,278,938.00 12,221,899.36 57,038.64 99.54 percent

Social Total 145,629,411.00 145,629,411.00 7,888,769.78 137,740,641.22 85,091,566.31 52,649,074.91 61.78 percent

ADF Water Sup/Sanit FIRST MULTI-STATE WATER SUPPLY 2-Oct-92 29-Jun-94 14,921,042.00 14,920,000.00 - 14,920,000.00 8,984,782.39 5,935,217.61 60.22 percent

ADF Water Sup/Sanit IBADAN WATER SUPPLY II 2-May-91 19-Dec-91 3,205,261.00 3,205,261.00 25,602.26 3,179,658.74 3,179,658.74 - 100.00 percent

ADF Water Sup/Sanit NIGER STATE WATER SUPPLY 17-Apr-90 27-Nov-90 1,961,841.00 1,961,841.00 (3,424.49) 1,965,265.49 1,965,265.49 - 100.00 percent

ADF Water Sup/Sanit PLATEAU STATE WATER SUPPLY 2-May-91 19-Dec-91 3,831,576.00 3,831,576.00 - 3,831,576.00 3,777,377.35 54,198.65 98.59 percent

ADF Water Sup/Sanit THE BENDEL STATE WATER SUPPLY(GRANT) 12-Jun-90 18-Jan-91 2,413,156.00 2,413,156.00 138,192.03 2,274,963.97 2,274,963.97 - 100.00 percent

Water Sup/Sanit Total 26,332,876.00 26,331,834.00 160,369.80 26,171,464.20 20,182,047.94 5,989,416.26 77.11 percent ADF Total 272,783,458.00 235,940,336.00 50,813,464.59 221,968,951.41 123,656,484.45 98,312,466.96 55.71 percent

Grand Total 1,980,813,458.00 1,728,010,336.00 493,166,342.35 1,487,646,073.65 1,371,461,239.93 116,184,833.72 92.19 percent

Annex 4

ANNEX 4: LIST OF GOODS AND SERVICES AND SUMMARY COSTS FOR THE VARIOUS PROJECT CENTRES (UA)

ITEM Orozo Fcst Uyo Fcst Ikare Fcst Lassa Fcst Ohanso Fcst Akoka Fcst Nsuka Fcst “KM-26” Nomadic

Centre-

Ludigga Kachia

Nomadic

Sub-Totals

ADMINISTRATION BLOCK 203,313 215,683 204,330 190,706 190,706

114,476 - 94,442 96,252 1,309,907

Admin Offices and stationary stores 19,158 24,125 12,772 12,772 12,772

- - 12,063 9,047 102,709

Faculty offices 30,653 28,950 28,950 15,326 15,326

24,125 - 9,650 14,475 167,456

Multi-purpose Hall/ and furniture 130,086 157,286 157,286 157,286 157,286

63,860 - 67,408 67,408

957,906

Support spaces to the hall 23,415 5,322 5,322 5,322 5,322

26,490 - 5,322 5,322 81,836

LEARNING AREAS 536,191 521,231 374,116 374,116 371,159

593,665 623,703 183,658 203,171 3,781,009

Classrooms and furniture 153,265 127,721 85,147 85,147 85,147

113,530 143,804 42,574 31,930 868,265

Laboratories and furniture 76,632 96,500 48,250 48,250 48,250

60,313 49,669 40,208 32,167 500,240

Workshops and furniture 191,581 225,167 168,875 168,875 168,875

40,208 44,939 48,250 96,500 1,153,272

Library and furniture 60,313 30,156 30,156 30,156 30,156

337,041 337,041 40,208 30,156 925,385

Support spaces 11,826 13,304 13,304 13,304 10,348

21,287 21,287 5,322 5,322 115,304

Wet areas (toilets and ablution areas) 42,574 28,382 28,382 28,382 28,382

21,287 26,963 7,096 7,096 218,544

STUDENT ACCOMMODATION 596,740 694,659 439,850 496,574 496,574

1,429,763 1,061,384 216,416 270,224 5,702,184

Hostels for students with open cubicles 159,651 319,302 212,868 212,868 212,868

1,011,123 808,898 75,686 113,530 3,126,794

Furniture, mattresses and mosquito nets 59,130 59,130 44,348 44,348 44,348

118,260 44,348 11,826 11,826 437,562

Dining and kitchen 104,069 179,755 78,052 134,816 134,816

134,816 85,147 44,939 67,408 963,819

Dining hall furniture 47,304 23,652 23,652 23,652 23,652

29,565 29,565 11,826 11,826 224,694

Cooking equipment -appropriate tech gas & wood fuel 35,478 23,652 23,652 23,652 23,652

29,565 29,565 11,826 11,826 212,868

Kitchen hygienic serving equipment and utensils 9,461 5,913 5,913 5,913 5,913

5,913 5,913 11,826 3,548 60,313

External covered spaces covering/ paving 10,643 3,548 3,548 3,548 3,548

7,096 7,096 5,913 1,774 46,713

2

Quiet room /Worship space and furniture 49,196 12,299 12,299 12,299 12,299 42,574 - - 10,643 151,609 Recreation facilities (open air courts and sports equipment)

70,956 28,382 17,739 17,739 17,739

23,652 23,652 23,652 23,652 247,163 Landscape/environmental improvement 42,574 18,922 11,826 11,826 11,826

18,922 18,922 9,461 4,730 149,008

Hostels security systems/ fences/janitor office 8,278 5,913 5,913 5,913 5,913

8,278 8,278 3,548 3,548

55,582

Clinic, sick bay and furniture - 14,191 11,826 11,826 11,826

- - 5,913 5,913 61,495

BUSINESS DEVELOPMENT CENTRES 94,608 47,067 47,067 47,067 47,067

70,246 70,246 19,395 19,395 462,160

BDC unit offices 15,137 12,299 12,299 12,299 12,299

17,029 17,029 6,150 6,150 110,691

Show room 79,471 34,768 34,768 34,768 34,768

53,217 53,217 13,245 13,245 351,469

WATER SUPPLY 167,929 115,895 56,765 115,895 115,895

- 167,929 47,304 47,304 834,916

Borehole with 6cu.m overhead storage tank 141,912 94,608 35,478 94,608 94,608

- 141,912 35,478 35,478 674,082

Water reticulation and treatment unit 26,017 21,287 21,287 21,287 21,287

- 26,017 11,826 11,826 160,834

WASTE MANAGEMENT 46,121 39,026 39,026 39,026 39,026

76,869 76,869 14,191 14,191 384,345

Septic tanks and soak away lagoons 41,391 35,478 35,478 35,478 35,478

70,956 70,956 11,826 11,826 348,867

Incinerator and waste disposal pits 4,730 3,548 3,548 3,548 3,548

5,913 5,913 2,365 2,365 35,478

TELECOMMUNICATION 27,200 23,652 23,652 23,652 23,652

30,748 30,748 23,652 23,652 230,607

Telephone with 24 extensions exchange 5,913 5,913 5,913 5,913 5,913

9,461 9,461 5,913 5,913 60,313

Internet system and satellite TV connection 21,287 17,739 17,739 17,739 17,739

21,287 21,287 17,739 17,739 170,294

POWER SUPPLY 118,260 73,321 73,321 73,321 73,321

130,086 130,086 73,321 61,495 806,533

Mains power supply connection & stabilizers 11,826 8,278 8,278 8,278 8,278

11,826 11,826 8,278 8,278 85,147

Standby generators 500KVA/250KVA /75 KVA 70,956 35,478 35,478 35,478 35,478

82,782 82,782 35,478 23,652 437,562

Solar power supply for critical departments 35,478 29,565 29,565 29,565 29,565

35,478 35,478 29,565 29,565 283,824

LEARNING EQUIPMENT 860,933 849,107 614,952 614,952 614,952

613,769 613,769 390,258 311,024 5,483,716

Workshop machines, equipment and furniture 473,040 473,040 354,780 354,780 354,780

354,780 354,780 118,260 118,260

2,956,500

Laboratory equipment 53,217 47,304 29,565 29,565 29,565

29,565 29,565 29,565 29,565 307,476

Office equipment and furniture 41,391 35,478 17,739 17,739 17,739

11,826 11,826 5,913 5,913 165,564

3

Computers and accessories 165,564 165,564 118,260 118,260 118,260

170,294 170,294 47,304 47,304 1,121,105

Air-conditioning and refrigeration 23,652 23,652 23,652 23,652 23,652

23,652 23,652 23,652 23,652 212,868

BDC unit equipment includes 7 No. Farm tractors 70,956 70,956 70,956 70,956 70,956

23,652 23,652 53,217 53,217 508,518

Double cabin pick-up motor vehicle (4No.) 33,113 33,113 - - -

- - 33,113 33,113 132,451

EXTERNAL/ PERIMETER FENECING 29,565 23,652 17,739 17,739 17,739

17,739 17,739 17,739 17,739 177,390

ROADS, WALKWAYS AND EXT. DRAINAGE 43,756 35,478 35,478 35,478 35,478

34,295 34,295 46,121 17,739 318,119

Roads surfacing with dust resisting murram 21,287 17,739 17,739 17,739 17,739

11,826 11,826 23,652 11,826 151,373

Walkways and footpaths hard surface 8,278 5,913 5,913 5,913 5,913

8,278 8,278 10,643 2,365 61,495

External storm water drainage system 14,191 11,826 11,826 11,826 11,826

14,191 14,191 11,826 3,548 105,251

BOOKS AND LEARNING MATERIALS 277,911 212,868 118,260 236,520 118,260

277,911 254,259 94,608 82,782 1,673,379

Reference and technical and text books 141,912 94,608 47,304 47,304 47,304

141,912 118,260 23,652 11,826 674,082

Teaching manuals acquisition 53,217 47,304 23,652 23,652 23,652

53,217 53,217 23,652 23,652 325,215

Operations and Do-it- yourself manuals 41,391 35,478 23,652 23,652 23,652

41,391 41,391 23,652 23,652 277,911

Soft copies manuals 41,391 35,478 23,652 23,652 23,652

41,391 41,391 23,652 23,652 277,911

STAFF HOUSING 645,700 645,700 499,530 499,530 499,530

- - 101,704 92,243 2,983,936

Teaching staff housing 447,023 447,023 357,618 357,618 357,618

- - 63,860 63,860 2,094,621

Support staff 198,677 198,677 141,912 141,912 141,912

- - 37,843 28,382 889,315

Design/supervision consultancies (civil works) 218,894 209,840 152,645 188,722 158,602

203,374 184,862 79,369 75,433 1,471,740

MISCELLENEOUS (BDCs) 2,483,460 CONSULTANCY & TECHNICAL ASSISTANCE 2,436,038

STUDIES 354,780 TEACHER TRAINING 1,371,816 PROJECT MANAGEMENT 1,064,340 TOTAL COST PER CENTRE 3,867,120 3,707,179 2,696,731 3,334,095 2,801,961

3,592,942 3,265,889 1,402,178 1,332,643 33,711,172

Orozo Fcst Uyo Fcst Ikare Fcst Lassa Fcst Ohanso Fcst

Akoka Fcst Nsuka Fcst “KM-26” LudiggaKachia Sub-Totals

** Costs include 8% Physical Contingency and 9.5 Price Contingency.

Annex 5

Federal Republic of Nigeria

Skills Training and Vocational Education Project

Environmental and Social Management Plan Summary

Project Title: Skills Training and Vocational Education Project (Education I) Project No.: Country: Nigeria Department: Social Development Division: OCSD.1 a) Brief description of the project and key environmental and social components: • Rehabilitation and upgrading of existing Federal Technical Colleges including two Teacher Training centres and a National Women Development Centre and two Nomadic Centres (provide high quality new and rehabilitated education facilities, whilst maintaining historical buildings and grounds). • VIP latrines will be constructed, springs protected, safe water schemes supplied and safe waste management regimes instituted at the ten locations. • Comprehensive in-service training will be conducted for students, education professionals and communities (improved skills training and vocational education in the ten project sites). • Empowerment of education centres management through decentralisation. b) Major environmental and social impacts: • Renovation and construction at the existing sites will affect high quality historic education facility structures. • Also potentially affected will be the existing grounds, with existing plant material. • Improved hygiene and health in education centres through safer water and waste management. • Renovated Federal Technical Colleges and other centres workshops functions will generate waste. c) Enhancement and mitigation programme: • The construction programme at the education centres exploits the opportunity to restore historic buildings to a high standard. • Since all construction is at existing sites, there is no concern regarding incursion into natural woodlands or waterways. The tender documents governing construction will stipulate the maintenance and enhancement of the vegetation in the existing green areas, making them more accessible and useful to students, staff and visitors that which separate waste for proper disposal or recycling. d) Monitoring programme and complementary initiatives: • The Project Coordination Unit (PCU) will ensure that construction tender documents safeguard all historical buildings at the existing sites, and that the existing landscaped grounds are protected and enhanced.

2

e) Institutional arrangements and capacity building requirements: • The PCU, guided by a broad-based Project Steering Committee, will direct all consultants to adhere to guidelines designed to safeguard and improve physical environments. • VIP construction and safe water and waste management will be largely enhanced by students, staff and communities of the education centres after training. f) Public consultations and disclosure requirements: • The PCU will from time to time, at the behest of the Steering Committee, offer public forums to publicise the project activities. This will include especially a presentation of the proposal for the rehabilitated facilities to ensure community support. g) Estimated costs: Project environmental components: • The major environmental improvement falls under the civil works for construction of pit latrines, spring water protection, safe water supply and safe waste management. • Notably, workshops’ waste management will be improved through the construction of pits as part of the education facilities rehabilitation. h) Implementation schedule and reporting:

• Any items pertinent to environmental and social management planning adhere to the overall implementation schedule provided in Table 5.1.

Annex 6

FEDERAL REPUBLIC OF NIGERIA

SKILLS TRAINING AND VOCATIONAL EDUCATION PROJECT

ORGANIGRAM FOR THE TECHNICAL AND SCIENCE DEPARTMENT AND THE PROJECT COORDINATION UNIT (PCU)

Hon. Minister-FME Permanent Secretary-FME PSC

Director-TSD

Techn. Educ. Techn. Teacher Educ. Science Educ. PCU Civil Works Procurement Finance Monitoring & Eval

Training Specialist Administration

Annex 7

Table of Contents of the Project Implementation Document (PID) 1. THE PROJECT 1.1 Project scope and objectives 1.2 Project outputs 2. PROJECT DESCRIPTION 2.1 Project cost and financing 3. PROJECT IMPLEMENTATION 3.1 Executing agency 3.2 Institutional arrangements 3.3 Implementation plan 3.4 Procurement arrangements 3.5 National procedures and regulations 3.6 General procurement notice 3.7 Review procedures 3.8 Disbursement arrangements 4. MONITORING AND EVALUATION 4.1 Project reporting 4.2 Financial reporting and auditing OTHER ANNEXES Implementation Schedule Structure of FME Job Description on Key Staff Recurrent Project Cost Environmental and Social Management Summary Procurement of Consultancies and Training

Annex 8

FEDERAL REPUBLIC OF NIGERIA VOCATIONAL AND TECHNICAL EDUCATION SUB-SECTOR

SUPPORT PROJECT

JOB DESCRIPTIONS FOR PROJECT MANAGER Qualifications and Experience • The Project Manager shall hold at least a masters degree in education, educational

administration, social sciences, international development, sociology or related areas.

• At least 5 years experience in the management of projects similar to the proposed one.

• She/He shall have an aptitude for maintaining good working relationship with professionals from different backgrounds and professions.

• Well versed in group/community mobilization, institutional capacity building and participatory decision-making.

• Proven advocacy skills • Excellent communication and report writing skills • Demonstrated computer skills including spreadsheet Duties

The Project Manager shall: • Be responsible for the overall management and co-ordination of all activities related

to the practical implementation of the project; • Liaise with ADF through the appropriate government channels and inform the

government and ADF on matters concerning the execution of the project; • Liaise with the Permanent Secretary of the FME to ensure that senior management

in the FME are kept up to date on the progress of the project so that they may provide valuable input and contribute to successful implementation;

• Develop detailed daily, monthly and annual work plans and project implementation schedules and ensure that they are adhered to;

• Ensure that the project budget is adhered to and that project accounts are maintained to acceptable standards and audited each year;

• Prepare quarterly progress reports (QPRs) and all other project reports for review by the government and ADF;

• Ensure that all project documents requiring review and approval are approved by the appropriate authorities;

• Respond to all comments and queries from government and ADF in consultation with the director, TSD;

• Ensure proper documentation, storage retrieval and dissemination of all project reports and activities;

2

General • Carry out such other activities in line with the overall goal of the project as may be

required. Working Conditions

• The Project Manager may be required to live and work in Abuja or directed by FGN

or ADF. Administrative Procedures • Participate in the recruitment and coaching of other project staff and properly

manage their performance; • Ensure proper procurement of all project materials and equipment.

Monitoring and Evaluation • Actively participate in the design, review and testing of all M&E instruments; • Oversee the conduct of the baseline study and final evaluation of the project • Ensure proper data gathering and analysis procedures;

Together with the M&E Specialist, undertake action research where appropriate and propose strategies to implement findings.

Supervision

• The Project Manager will be supervised by the Director, Technology and Science Department, Federal Ministry of Education.

Duration of contract

• The Skills Training and Vocational Education (STVE) project is a 5-yr initiative.

The contract for the project manager shall be for the duration of the project and subject to renewal from year to year based on the favorable performance of the project manager against the established criteria regarding progress of the project, reporting, etc.