ASIAN DEVELOPMENT BANK PCR: THA 27479

PROJECT COMPLETION REPORT

ON THE

SKILLS DEVELOPMENT PROJECT (Loan 1494-THA)

IN

THAILAND

October 2003

CURRENCY EQUIVALENTS

Currency Unit – baht (B)

At Appraisal At Project Completion (April 1996) (December 2002) B1.00 = $0.0392 $0.00025 $1.00 = B25.496 B43.004

ABBREVIATIONS BME – benefit monitoring and evaluation CBST – competency-based skill training CISD – Central Institute for Skill Development CMI – computer-managed instruction COS – country operational strategy DSD – Department of Skill Development GDP – gross domestic product MOLSW – Ministry of Labor and Social Welfare NESDP – National Economic and Social Development Plan OEU – operations evaluation unit PCSD – Provincial Center for Skill Development PCU – production-cum-training unit PIU – project implementation unit PPP – public-private partnership RISD – Regional Institute for Skill Development SDP – skill-development master plan TA – technical assistance VTPA – Vocational Training Promotion Act

NOTES

(i) The Government’s fiscal year (FY) ends on 30 September. (ii) In this report, “$” refers to US dollars.

CONTENTS

Page BASIC DATA ii MAP vii

I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 7 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Efficacy in Achievement of Purpose 10 C. Efficiency in Achievement of Outputs and Purpose 11 D. Preliminary Assessment of Sustainability 12 E. Institutional, Sociocultural, and Environmental Impacts 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons Learned 14 C. Recommendations 14 APPENDIXES 1 Project Framework 15 2 National Skills Standards 18 3 Skill Training Packages 20 4 Staff Training Under the Project 22 5 Training Equipment 24 6 Total Training Enrollment 25 7 Project Cost and Financing by Source: Appraised vs. Actual 27 8 Breakdown of Annual Disbursements 28 9 Project Implementation Progress: Planned vs. Actual 29 10 Status of Compliance with Loan Covenants 31 11 Requirements for Consultants 36 12 Procurement under the Loan 37

ii BASIC DATA A. Loan Identification

1. Country Thailand 2. Loan Number 1494-THA 3. Project Title Skills Development Project 4. Borrower Kingdom of Thailand 5. Executing Agency Ministry of Labor and Social Welfare 6. Amount of Loan US$80 million 7. Project Completion Report Number PCR:THA 760

B. Loan Data

1. Appraisal - Date Started 18 March 1996 - Date Completed 4 April 1996 2. Loan Negotiations - Date Started 21 October 1996 - Date Completed 22 October 1996 3. Date of Board Approval 28 November 1996 4. Date of Loan Agreement

- Original 26 March 1997 - Revised1 5 December 2002

5. Date of Loan Effectiveness - In Loan Agreement 24 June 1997 - Actual 23 June 1997 - Number of Extensions Nil 6. Closing Date - In Loan Agreement 30 June 2002 - Actual 29 April 20032 - Number of Extensions 1 7. Terms of Loan - Interest Rate Variable lending rate system for US$ loans - Maturity 25 years - Grace Period 5 years

1 The original loan agreement was amended and restated based on the London interbank offered rate at the request

of the Borrower. 2 This indicates the effective date of loan closing, including a 3-month grace period and necessary adjustment for

closing as per Project Administration Instruction No. 4.05. The loan closing date after the extension was 31 December 2002.

iii8. Disbursements

a. Dates

Initial Disbursement Final Disbursement Time Interval 26 Nov 1997 29 April 2003 65 months

Effective Date Original Closing Date Time Interval 23 June 1997 30 June 2002 60 months

b. Amount ($’000)

Category

Original

Allocation

Last Revised

Allocation

Amount

Cancelled

Net Amount

Available

Net Amount

Disbursed

Undisbursed Balance

01 Equipment 62,800.0 61,732.4 1,067.6 61,576.4 61,576.4 156.0 02 Training Materials

Development 3,000.0 1,195.1 1,804.9 1,195.1 1,195.1 0.0

03 Consulting Services

3,000.0 3,566.6 0.0 3,566.6 3,566.6 0.0

04 Unallocated 11,200.0 - 566.6 10,633.4 0.0 0.0 0.0 Total 80,000.0 66,494.1 13,505.9 66,338.1 66,338.1 156.0

9. Local Costs (Financed by the Asian Development Bank) - Amount ($) 0.0 C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual Foreign Local Total Foreign Local Total A. Base Cost

1. Equipment 2. Training Materials 3. Consulting Services 4. Fellowships and Training 5. Special Inputsa 6. Operation and Maintenance 7. Project Implementation 8. Taxes and Duties

Subtotal (A)

B. Contingencies C. Interest and Other Charges Total

62.83.03.05.00.00.00.00.0

73.8

11.3

11.6

96.7

16.24.06.50.50.8

12.51.36.5

48.3

8.0

0.0

56.3

79.07.09.55.50.8

12.51.36.5

122.1

19.3

11.6

153.0

61.6 1.2 3.6 3.0 0.0 0.0 0.0 0.0

69.3

0.0

1.5

70.8

13.61.66.51.11.02.31.52.5

30.1

0.0

0.0

30.1

75.22.8

10.14.11.02.31.52.5

99.4

0.0

1.5

100.9

a Includes research and development, as well as public information campaigns.

iv2. Financing Plan ($ million)

Appraisal Estimate Actual Item Foreign Local Total Foreign Local Total Implementation Costs Bank Government Total

80.0 16.7

96.7

0.0

56.3

56.3

80.0 73.0

153.0

66.3

4.5

70.8

0.0

30.1

30.1

66.3 34.6

100.9

3. Cost Breakdown by project component ($ million)

Appraisal Estimate Actual Item Component

1 Component

2 Component

3 Component

1 Component

2 Component

3 A. Equipment B. Training Material

Development C. Specialist Services D. Staff Development E. Special Inputs F. Operation &

Maintenance Total

2.0

1.0 1.6 0.6

0.3

5.8

77.0

6.04.72.6

0

12.2

102.5

0

03.22.30.5

0

6.0

2.1

0.42.30.80.0

0.1

5.7

73.1

2.4 3.1 0.5

0

2.2

81.3

0

04.72.81.0

0

8.5Component 1 = efficiency improvements in skills development programs, component 2 = expansion of training capacity, component 3 = strengthening the Department of Skills Development’s institutional capacity Note: Costs are net of taxes and duties, project implementation costs, contingencies, and interest and other charges.

4. Project Schedule

Item Appraisal Estimate Actual Date of Contract with Consultants Equipment and Supplies First Procurement Last Procurement Completion of Equipment Installation

Quarter III 1997 Quarter I 1998

Dec 2001 Jun 2002

12 Sep 1997

16 Mar 1999 28 Jun 2002

Dec 2002

5. Project Performance Report Ratings

Ratings

Implementation Period Development Objectives

Implementation Progress

(i) From 1 June 1997 To 31 Dec 1997 Satisfactory Satisfactory (ii) From 1 Jan 1998 To 31 Dec 1998 Satisfactory Satisfactory (iii) From 1 Jan 1999 To 31 Dec 1999 Satisfactory Satisfactory (iv) From 1 Jan 2000 To 31 Dec 2000 Satisfactory Satisfactory (v) From 1 Jan 2001 To 31 Dec 2001 Satisfactory Satisfactory (vi) From 1 Jan 2002 To 31 Dec 2002 Satisfactory Satisfactory

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D. Data on Asian Development Bank Missions

Name of Mission Date No. of

PersonsNo. of

Person-Days Specializationof Membersa

Fact-Finding 4 - 22 Sep 1995 5 95 a, b, d, g, h Appraisal 18 Mar - 3 Apr 1996 6 72 a, b, c, d, f, e Inception Review 24 - 28 Nov 1997 2 10 a, j Review 1 15 - 21 Jul 1998 1 7 a Review 2 12 - 16 Oct 1998 1 5 a Review 3 22 - 26 Feb 1999 3 15 a, b, i Review 4 27 Sep - 4 Oct 1999 2 16 a, b Review 5 11 - 18 Feb 2000 2 16 a, b Review 6 14 - 18 Sep 2000 2 10 a, i Review 7 (Midterm) 20 - 29 Jun 2001 2 20 d, i Review 8 8 - 12 Nov 2001 2 10 d, i Review 9 28 Feb – 6 Mar 2002 1 7 a Review 10 16 - 20 Sep 2002 2 10 a, i Project Completion Reviewb 21 Apr - 2 May 2003 2 26 a, i

a a - education/project specialist, b - senior project specialist, c - senior counsel, d - project economist, e - senior economist, f - senior programs officer, g - programs officer, h - consultant specialist, I - assistant project analyst, j - senior assistant.

b The mission comprised Y. Ikeda, mission leader/project specialist; and V. N. Cabio, assistant project analyst.

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I. PROJECT DESCRIPTION

1. The project aimed to produce skilled and semiskilled workers to promote Thailand’s long-term competitiveness. The immediate objectives were (i) to improve the quality and relevance of skill development, so that workers could keep pace with rapid industrialization; (ii) to strengthen facilities for pre-employment training for underprivileged youth, as well as upgrade training for workers, farmers, and women; (iv) to help the Ministry of Labor and Social Welfare’s (MOLSW) Department of Skill Development (DSD) develop its institutional capacity to plan and manage skills training programs, and coordinate them with the private sector and relevant government ministries. To achieve these goals, the project included three components: (i) improving efficiency of skill-development programs, (ii) expanding facilities for skills upgrading and pre-employment training, and (iii) strengthening DSD’s institutional capacity. The project framework is in Appendix 1.

II. EVALUATION OF DESIGN AND IMPLEMENTATION A. Relevance of Design and Formulation 2. In the 1980s, Thailand’s economy saw a sharp rise in manufactured exports. The industry sector accounted for 42% of gross domestic product (GDP) in 1994, compared with 31% in 1980. Exports, mainly of industrial products, had reached 53% of GDP growth by 1994. Annual GDP growth averaging 10.5%, in real terms, from 1987 to 1991 rapidly changed the employment structure. Industry employed 8% of the total work force in 1980 but 19% in 1995, while employment in agriculture declined from 71% of employment in 1980 to 56% in 1995.1 Industrialization was shifting the job market needs from unskilled, cheap labor to skilled workers, particularly in manufacturing. A wave of untrained and potentially unemployable workers who entered in the labor market during industrialization’s infancy needed to be retrained to ensure continued economic growth and job opportunities. 3. To ensure sustainable and equitable economic growth, the Government placed high priority on human resource development, including skill development, in the 7th and 8th National Economic and Social Development Plans (NESDPs) for 1992–1996 and 1997–2001 respectively. The Government established MOLSW in 1993 to carry out the NESDP’s top objectives. It did so by upgrading DSD, which had been under the Ministry of Interior, with a view to strengthening administration of the labor market and skill development. MOLSW prepared a skill-development master plan (SDP) for 1995–2001, and in 1994 invited the Asian Development Bank (ADB) to assist in implementation. ADB focused on renovating and expanding the skills development and qualification systems, to restore their relevance and boost their capacity to provide the workforce that industry demands. The skill-development and qualification systems at the time of appraisal had not been updated since their original development in 1971. 4. While the Government was taking steps to rebuild skill development, the country operational strategy (COS) in 1993 also addressed the effects of rapid industrialization as

1 ADB. 1996. Report and Recommendations of the President to the Board of Directors on a Proposed Loan to the

Kingdom of Thailand for the Skill Development Project. Manila.

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constraints to sustainable development. These included the rising labor costs associated with a shortage of skilled workers, and concerns as to whether rapid growth was being distributed equitably. The COS concluded, in support of the NESDP, that raising workers’ skill levels was key to sustaining long-term competitiveness and mitigating income inequalities. ADB has maintained this operational priority. The COS in 1999 reiterated ADB’s interest in overcoming skill shortage and updating the technology base, and advocated that the private sector participate in planning and implementing skill training programs to ensure they were relevant to the market. 5. In the above context, ADB provided a project preparatory technical assistance2 (TA) in 1994–1995 to conduct a joint review of the SDP for 1995 to 2001 and hold dialogues with the Government and industry. It also conducted surveys and analyses of primary and secondary labor market data, and analyzed the Government’s financing capacity. The review identified the part of the master plan that the project would implement: (i) building institutions, (ii) establishing and coordinating a skills training framework, (iii) incorporating provisions for private-sector participation and income-generating activities, and (iv) providing training equipment for 21 key training centers. The Government took over all civil works and developed 41 other training institutes and centers under the SDP. The TA added value by anticipating the need to institutionalize private-sector participation in planning, designing, and implementing training provisions prior to the COS in 1999. The TA’s output and recommendations ensured proper project design. The TA was highly successful. 6. Policy dialogue during appraisal in 1995 was carried out based on TA findings and recommendations. The dialogue complemented the SDP by highlighting the policy direction (i) to ensure a skills development framework to enable the current workforce to constantly acquire new skills and improve existing ones (upgrade training), and new workers to acquire adequate skills before seeking a job (pre-employment training); (ii) to strengthen the capacity to establish and monitor skills standards; (iii) to encourage private-sector participation; and (iv) to introduce income-generating activities. These key policy dimensions were also incorporated in the ADB’s education policy when it was reformulated in 2002.3 Targets for key determinants of external and internal efficiencies such as improved job placement and pass/fail rates, and cost recovery measures, social dimensions, and the role of the private sector were also agreed to (Appendix 1). Project design and loan covenants reflect the results of the dialogue and provide a basis for government policy commitment to skill development both during and after the project. These design and formulation processes made the project relevant at appraisal. 7. During implementation, ADB approved a change of scope to include the Women Friendly Center in Chiang Mai to provide women with employable skills (para. 15). Furthermore, DSD incorporated the recommendations of industry and of project consultants throughout the process of developing the skills standards and training programs to enhance market relevance. ADB assisted by providing timely review and approval of design changes by communicating well with the Borrower. The project was completed with relevance, as envisaged at appraisal, having kept itself abreast of socioeconomic change during the implementation period.

2 ADB. 1994. Technical Assistance to the Kingdom of Thailand for the Skill Development Project. Manila. 3 ADB. 2002. Policy on Education. Manila

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B. Project Outputs

1. Efficiency Improvements in Skill-Development Programs

a. Preparing Skills Standards and Modularized Training Packages 8. Skills Standards. There were only 31 skills standards for 51 occupations at appraisal in 1995. Under the project, DSD had categorized occupations by seven industrial sectors—electrical, textiles, electronics, automotive, welding, machining, and construction and carpentry. DSD revised some standards and prepared 80 sets of occupational skills standards, compared with 51 sets anticipated at appraisal. The National Committee for Occupational Skills Standards, chaired by the labor minister, adopted all 80 sets of skills standards during the project (Appendix 2). The standards provided a solid basis for developing and upgrading training packages, conducting skill tests, and awarding certificates. Through contact with consultants and training sessions, DSD’s occupational skills standards division has enhanced its capacity to develop, update, and validate skills standards and certification tests. Skill testing was delegated to a Central Institute for Skill Development (CISD), 11 Regional Institutes for Skill Development (RISD), and 64 Provincial Centers for Skill Development (PCSD). DSD also qualified 72 agencies, including 58 private enterprises, to conduct skill tests under the public-private partnership (PPP) policy. A total of 37,975 workers participated in skill tests in 2002, compared to the 37,250 workers estimated at appraisal. 9. Training Packages. DSD developed competency-based skill training (CBST) programs for teaching and learning, administration of skill-development activities, and instructor training (Appendix 3). As outlined at appraisal, the programs were packaged in seven categories: (i) career orientation, (ii) skills literacy, (iii) job preparation, (iv) job experience and enrichment, (v) entrepreneurship training, (vi) management and leadership in skill development, and (vii) instructor training. Job preparation programs originally proposed at appraisal were reviewed during implementation to incorporate feedback from employment opportunity surveys conducted under the project and dialogue with ADB on women-friendly programs. For example, a package for electrical and electronics trades originally envisaged was divided in two following the rapid growth of the electronics industry. 10. CBST programs were developed and implemented by modular curriculum. Each CBST program module, prepared for a specific skill competency at a specific level, (i) helped trainees understand what they would be able to do after training; (ii) informed recruiters or employers about what applicants could do in their workplace; (iii) helped career counselors form training plans for individual trainees; and (iv) allowed the program developer to review and update programs flexibly, specific to each skill and based on technological changes in individual occupations. The modular curriculum facilitates flexible training plans, and particularly helped project beneficiaries: workers already employed could continue training without quitting or taking leaves of absence, trainees from poor families could continue to work through ad-hoc jobs, and female trainees could attend to housework and child care. These trainees are traditionally isolated from the conventional time-based training system, which requires regular classroom attendance for a fixed time period. 11. Under the pre-project training system, many trainees were only primary school graduates, and they often acquired skills without theoretical understanding. This resulted in a very low pass rate (15-62%) in skill tests, followed by a low job placement rate (a peak of 42% in FY1994). Many workers were not prepared to adapt to the industrialization process, or to pay attention to safety, hygiene, or the environment in the workplace. To address this weakness, the

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new training program emphasized technical literacy and increased academic content in each training program by preparing a set of technical literacy programs. Training packages were available in both CD-ROM versions and hard copies to facilitate different modes of learning. CD-ROM packages are being uploaded to a computer-managed instruction (CMI) system, which is already connected to all 22 project institutes and centers via a dedicated high-speed network.

b. Developing a Career Development System 12. DSD developed and operated a career guidance system in all project institutes and centers to help plan individual careers and training programs and to provide job placements. Beneficiaries included prospective trainees and secondary school students, trainees in training institutes and centers, training graduates, participants in skill tests, and private and public enterprises. The career guidance system was implemented in mobile units to provide information and guidance to rural youth and women, who often do not access skills training because they lack information on what is available. DSD is also putting the guidance system on the CMI network. Access to the CMI network by prospective employers and trainees is expected to (i) mitigate the information divide between rural and urban trainees, (ii) promote job placement activities, and (iii) strengthen feedback with employers. DSD developed 33 career guidance packages, compared to 26 anticipated at appraisal. The Government financed 154 person-months of training—63 person-months overseas and 91 person-months within the country—for implementation. Training under the project is summarized in Appendix 4.

2. Expansion of Training Capacity

a. Upgrading Skills of Minimum Wage Earners

13. Upgrade Training. This subcomponent intended to expand opportunities for skill upgrades in the CISD and 11 RISDs, to allow in-service workers to catch up with the industrialization process. The RISDs were located in Lampang, Phitsanulok, Khon Kaen, Nakhon Sawan, Ubon Ratchathani, Nakhon Ratchasima, Suphan Buri, Ratchaburi, Chon Buri, Surat Thani, and Songkhla. Under the project, DSD (i) developed curriculum and training materials, (ii) upgraded equipment, and (iii) piloted seven production-cum-training units (PCU, para. 14). The training packages and equipment that the project provided are described in Appendixes 3 and 5. Enrollment in upgrade training in the CISD and 11 RISDs increased from 7,000 in 1995 to 51,674 in FY2002, compared to the 15,000 envisaged at appraisal. A total of 71,074 people sought upgrade training in FY2002, including all 22 institutes and centers (Appendix 6). Trainees and their employers pay 50-100% of upgrade training costs, in cash or in-kind contributions, according to individual arrangements and training contents. 14. Production Units. Pilot PCUs were introduced to 6 RISDs: Surat Thani, Songkhla, Chon Buri, Khon Kaen, Phitsanulok, and Suphan Buri. A PCU in the Udon Thani PCSD was also completed as planned at appraisal. They operate under the regular training budgets allocated for procuring materials. Production activities are prioritized by incoming orders, including overseas orders. Areas of activities cover both goods and services, and include made-to-order niche goods such as motorized wheelchairs.

b. Job Training for Youth, Women, and Farmers 15. Pre-employment Training. This subcomponent was to expand opportunities for pre-employment training in 9 PCSDs in Pattani, Chaiyaphum, Chumphorn, Udon Thani, Chachoensao, Rayong, Chiang Rai, Satun, and Nongkhai. ADB approved financing for training

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equipment in the Women Friendly Center at the Chiang Mai PCSD in March 1999 through a minor change of scope, anticipating a component of women-friendly training under the project. The project’s pre-employment training would provide earning skills for primary school leavers, particularly females and rural youth. Pre-employment training was free of charge under the Vocational Training Promotion Act (VTPA) promulgated in 1994. Appendix 5 summarizes equipment provisions to the 9 PCSDs under the project. DSD also strengthened pre-employment training in other project institutes. As a result, total enrolment in 10 PCSDs in FY2002 reached 7,376, or 74 percent of the 10,000 anticipated at appraisal. A total of 1,232 women trained at the Women Friendly Center in Chiang Mai. Enrollment was lower than appraisal estimates because the SDP required the Government to establish another 41 PCSDs. 16. Female Focus. As planned at appraisal, more than two women-friendly training programs were introduced in each institute and center. DSD developed a training package for women in development, comprising seven women-friendly programs (Appendix 3). The enrollment of women in pre-employment training from FY1998 to 2002 is summarized in Appendix 6. It indicates that 20,631 women enrolled in 10 PCSDs, including the Chiang Mai center, and 48,556 enrolled in all 22 institutes and centers. The total enrollment in both pre-employment and upgrade training during the period from FY1998 to 2002 was 227,319, compared to the appraisal target of 44,000. Women formed 40.6% of the total enrollment of 89,531 in FY2002, compared to 15% of all enrollment in FY1994.

3. Strengthening DSD’s Institutional Capacity

a. Staff Development 17. The Government completely financed staff development training under the project. Training totaled 2,198 person-months, as compared to 2,250 person-months planned at appraisal (Appendix 4). More than 1,700 managerial staff, compared to 324 at appraisal, participated in training for human resource development, planning and policy making, and management and administration of training institutions. Participants returned to work at DSD after training. A key issue pointed out during appraisal was the large number of administrative staff working in training institutes and centers, many of whom were also teaching without formal training. Out-dated knowledge and skills likely prevented training contents from staying up to date. More than 860 instructors, compared to 980 anticipated at appraisal, were retrained in teaching techniques and new technologies. About 1,550 managerial staff received domestic training for conversion to trainers, compared to 250 planned at appraisal. Of those 1,550, 673 became full-time instructors, with the rest doing both administrative and teaching work. Managerial efficiency improved: administrative staff at the 22 project institutes and centers were reduced to 18.5% of total employees in FY2001 from 42.6% at appraisal. 18. The appraisal envisioned overseas fellowships for 50 instructors. However, this would take longer than originally imagined, and the Government, which fully financed staff training, limited the number of people sent for overseas fellowships each year. DSD introduced a “master trainer system” instead. Under this system, 23 key master trainers were awarded the overseas fellowships, and 460 managerial staff and senior instructors received training from them when they returned. The Government devised incentives to retain competent instructors, including (i) salary increases, which ranged from B4,000 to B14,000 per month in 1994 and B6,300 to B29,810 in 2001; and (ii) bonuses for PCU instructors financed by the sales of their products.

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b. Supporting Project Implementation 19. DSD developed the CMI system, which supports on-line delivery of DSD’s training programs. CMI consists of six subsystems: record keeping, trainer feedback, training planning, career guidance, a test bank, and benefit monitoring and evaluation. Each training institute was connected to DSD via high-speed dedicated data lines. The system is functional and DSD has conducted additional training for system maintenance. By end of the project, most project outputs had been turned over to their respective units at DSD and project institutes and centers. Following a recommendation from the ADB, DSD designated an operation evaluation unit (OEU) to carry out results-based monitoring and evaluation of benefits using CMI’s subsystems. OEU is a separate office for post-project monitoring and evaluation, and it reports directly to the DSD’s director-general on project-specific development impacts and benefits. Appendix 1 shows the project’s physical achievements, with target figures set at appraisal. Appendix 6 summarizes enrollment figures. 20. Overall, the project components did not deviate from project design in terms of cost, time, expected benefits, or other measures of efficiency. C. Project Costs 21. Total cost at appraisal was estimated at $153.0 million equivalent, of which $96.6 million was denominated in foreign exchange and $56.3 million equivalent in local currency. ADB provided a loan of $80.0 million from ordinary capital resources to finance 82.7% of the foreign exchange cost or 52.3% of the total project cost. The Government agreed to provide $73.0 million equivalent, of which $16.6 million would go toward the foreign exchange cost and $56.3 million equivalent for the entire local currency cost. There was no co-financing involved. 22. The midterm review in 2001 estimated savings from the unallocated portion of the loan at about $10.0 million. The Borrower requested cancellation of $13.5 million in June 2001, citing (i) appraisal cost estimates higher than actual ones; (ii) a preference to contain foreign debt after the Asian financial crisis of 1997-1998 (the Crisis), and (iii) the use of DSD resources to develop training materials, incorporating Thailand’s sociocultural background. After the cancellation, the ADB loan was fully utilized and the project was completed without cost overruns or reallocation of loan proceeds between foreign exchange and the local currency. 23. The actual project cost was $100.9 million, $70.8 million equivalent of which was in foreign exchange and $30.1 million equivalent in local currency. ADB financed $66.3 million, and the Government financed $34.6 million equivalent. When the Government cancelled $13.5 million of the ADB loan, it also cancelled $8.0 million and $10.0 million equivalent, respectively, from contingencies and the fund allocated for commitment charges. The Government also transferred provisions in the counterpart funds for operation and maintenance to the regular budget so that it would be consolidated with provisions for other training institutes and centers. Individual local currency expenses have substantially decreased because the baht has depreciated since the crisis 4 Project costs are detailed in Appendix 7.

4 The annual exchange rates the Government used during implementation were: B31.37/$ (1997), B41.37/$ (1998),

B37.84/$ (1999), B40.16/$ (2000), B44.48/$ (2001), and B43.00/$ (2002). The exchange rate at appraisal was B25.5/$.

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D. Disbursements 24. The first disbursement of $0.95 million was made on 26 November 1997 to mobilize consultants, and the final disbursement of $0.02 million was made on 29 April 2003 for the final withdrawal application dated 31 March 2003 (Appendix 8). Funds disbursed for each category were generally within original allocations. Total disbursements amounted to $66.3 million, and the undisbursed balance of about $0.2 million was canceled on 29 April 2003, the effective loan closing date.5 The project did not use the imprest account. E. Project Schedule 25. The loan was approved on 28 November 1996 and took effect on 23 June 1997. The project was completed by 31 December 2002, after a 6-month extension to recover delays in procuring training equipment and implementing overseas training.6 Individual activities were well coordinated. The Government carried out civil works, as scheduled, allowing the project’s training equipment to be installed and programs to start. Except for initial delays, the project implementation unit (PIU) initiated, planned, and carried out procurement of training equipment within the revised loan period. Developing instructional materials (CD-ROM titles) took more time than originally anticipated (para. 31). Appendix 9 summarizes implementation. F. Implementation Arrangements 26. The implementation arrangements at appraisal were generally appropriate to deliver project outputs and achieve the project purpose. MOLSW was the executing agency for the project. The PIU, which was under DSD, included procurement officers, a finance officer, an accountant, administrative and technical officers, and a project manager. The PIU had 23 full-time staff, and DSD assigned 75 of its staff members to work with consultants through implementation. These staff members had ample experience and skills after project completion. The DSD director-general was the project director, but he later delegated this responsibility to his deputy after the project gained momentum. G. Conditions and Covenants 27. The loan agreement included 31 covenants: (i) 16 general covenants under Article IV, which include covenants for financial audits and project accounts, progress reporting, and the Borrower’s project completion report; and (ii) 15 under Schedule 6 for project-specific assurances, including recovery of recurrent costs of least 50%, introduction of women-friendly training programs, and using private-sector facilities for skill-development activities. Audited financial statements for previous years, progress reports, and the project completion report were submitted on time, except for audited financial statements for FY2001. All other general and project-specific covenants had been complied with (Appendix 10). No covenants were modified, suspended, or waived, but the deadline for submitting audited financial statements was extended from 6 to 12 months after the end of the fiscal year.7

5 This indicates the effective date of loan account close, including a 3-month grace period and adjustments for

closing as per Project Administration Instructions No. 4.05. The loan closing date, after the extension, was 31 December 2002.

6 Procurement was delayed because staff at the newly established MOLSW were not familiar with ADB procedures. Overseas training was delayed when Government financing was suspended during the Asian financial crisis.

7 ADB suggested relaxing the deadline for submitting audited financial statements in 1998 to harmonize with other projects, but the Government had complied with the original requirement.

8

H. Related Technical Assistance 28. ADB provided an advisory technical assistance8 to help DSD establish a PPP framework for skill development. The TA was implemented in 1996 and complemented the project with policy studies on five topics: (i) an SDP update for 1997-2001, (ii) skill promotion funds, (iii) career management for skilled workers, (iv) private-sector participation in skill development, and (v) changes in the labor market. The TA also trained more than 100 MOLSW staff in labor market administration, skills training administration, and authoring and publishing training materials. The TA was generally successful.9 I. Consultant Recruitment and Procurement 29. Consultant Recruitment. Selection and engagement of international and domestic consultants were carried out according to ADB’s Guidelines on the Use of Consulting Services. No major difficulties were encountered, and a contract was successfully negotiated with the international consulting firm that submitted the top-ranked proposal. The contract was negotiated on a cost plus fee basis because of the long-term engagement and the nature of services to assist institutional development process, where the direct output of the consultants was difficult to measure. The consultants were mobilized within the agreed period and provided services by annual work plans agreed upon with the PIU. In 1999, ADB agreed to finance additional procurement specialists for 11.95 person-months to assist the PIU. The project utilized a team of international and domestic consultants for 188 person-months and 828 person-months, respectively, as planned at appraisal. Input from experts and representatives contracted from industry totaled 1,044 person-months. A detailed breakdown of consulting services is in Appendix 11. 30. Procurement Process. At appraisal, procurement included equipment and machinery worth $79.0 million and training materials worth $7.0 million, of which ADB would finance $62.8 million and $3.0 million, respectively. The PIU carried out procurement in six phases with 114 contract awards, all according to ADB guidelines. Purchases included 54 contracts, awarded through international competitive bidding, for heavy training equipment; 40 contracts for light equipment through international shopping; and 20 contracts for vehicles, spare parts, and extensions bought through direct purchase or repeat order. The loan financed $62.8 million in procurement, including $61.6 million for training equipment and $1.2 million for training materials. The PIU was unfamiliar with ADB procedures, but eventually handled bidding, evaluation, contract awards, delivery, and testing of a large number of procurement contracts with reasonable efficiency and accuracy. There were no significant problems during implementation. Appendix 12 describes procurement. J. Performance of Consultants, Contractors, and Suppliers 31. The consultants’ performance was highly satisfactory, helped by the Government’s commitment to implementation. The consultants’ work organization, timeliness, output, and working relationships with counterpart staff facilitated effective technical transfer, as well as timely and accurate billings. Contract variations were kept to a minimum. The PIU contracted out part of training materials development to overseas contractors. However, some contractors

8 ADB. 1996. Technical Assistance to the Kingdom of Thailand for Coordination and Private Sector Participation in

Skill Development. Manila. 9 ADB. 1997. Technical Assistance Completion Report for TA No. 2523-THA: Coordination and Private Sector

Participation in Skill Development. Manila.

9

did not comply with terms of reference because they were not familiar with Thailand’s language and socioeconomic context and interpreted work requirements differently. This created unnecessary duplication of work and some delays in completing the training packages. There were no significant problems in the performance of equipment providers. K. Performance of the Borrower and the Executing Agency 32. The executing agency met its responsibility in implementing the project in a timely manner, without reduction of scope and despite early delays and an adverse environment during the crisis (para. 25). Compliance with loan covenants, including submission of progress reports and audited financial statements, was satisfactory (para. 27). The PIU—in collaboration with the executing agency, the borrower, and private industries—was able to utilize project resources efficiently and effectively. The PIU (i) made the best possible use of consulting services, (ii) effectively involved the private sector in developing skills standards and training programs, and (iii) carried out large amounts of procurement by awarding 114 contracts, including contracts by international competitive bidding, within the agreed timeframe and budget. The executing agency and the borrower demonstrated their commitment and administrative efficiencies as assessed at appraisal. Overall performance of the borrower and the executing agency, including the PIU, was highly satisfactory. L. Performance of the Asian Development Bank 33. ADB dispatched 12 review missions during implementation from June 1997 to December 2002, including inception and midterm review missions and two review missions annually. The project completion review mission was advised that review missions were effective in resolving various issues at their early stages. ADB’s performance was generally satisfactory. ADB invited the project manager and concerned officials to project implementation and administration seminars during the project.

III. EVALUATION OF PERFORMANCE A. Relevance 34. The design and formulation process conformed to the NESDP, the SDP, the COS, and ADB’s education policy (paras. 3-6 and 35). Project design, formulation, and implementation took participatory approach by involving government officials, instructors, trainees, and representatives from private and public enterprises to establish a demand-driven skill-development framework. During implementation, ADB approved the Women Friendly Center in Chiang Mai to ensure the impact of the project on employable skill development for women (para. 15). ADB provided timely review and approvals of proposed changes in the original design to keep the project abreast with socioeconomic change during implementation (para. 7). The project was relevant, as envisaged at appraisal.

35. The project design, formulation, and implementation already incorporated basic dimensions of skill development addressed in ADB’s education policy prepared in 2002. These were (i) pre-employment and upgrade training; (ii) coordination to avoid duplication or direct/indirect competition with private-sector or other public agencies managing their training programs; (iii) PPP, with a conductive policy environment, to encourage implementing training and skill tests by private facilities; and (iv) use of innovative technologies such as computer networking technologies and CBST with a modular system. Having well anticipated the above

10

key dimensions, the project actually provided essential input to ADB’s education policy when it was reformulated in 2002. 36. The project was highly relevant. B. Efficacy in Achievement of Purpose 37. To meet the immediate objective of improving the quality and importance of the skill-development system, 80 sets of skills standards were developed and updated, compared to 51 sets envisaged at appraisal. These new standards incorporated market demand after close collaboration with private and public enterprises (paras. 8 and 29). Incorporating market-based competency requirements, the 14 training program packages (compared to 12 at appraisal) were developed with CBST modular curriculum, including a special training package for women in development that comprised seven female-friendly skills-training programs (para. 16 and Appendix 3). Modular curriculum effectively enhanced access to training of anticipated beneficiaries with its facility to customize training plans (para. 10). 38. To meet the second objective of increasing the physical capacity of DSD’s training facility, training equipment and school buildings were fully updated (paras. 13, 15 and Appendix 5). More than 2,400 staff were trained as instructors, compared to 1,230 staff expected at appraisal. The third objective, to support the new system with increased physical capacity, was met when DSD trained more than 1,700 managerial staff, compared to 324 expected at appraisal. Most training was provided on the job, to maximize relevance to daily work. Through the staff conversion training, 673 administrative staff members were converted to instructors, filling a shortage of quality trainers and eliminating staff inefficiency (para. 17). 39. Enrollment in upgrade training at the CISD and the 11 RISDs increased from 7,000 in 1995 to 51,674 in FY2002, compared to the appraisal target of 15,000. Female enrollment reached 227,319 from FY1998 to FY2002, compared to 44,000 estimated at appraisal, thanks to curriculum that targeted specifically. By 2002, women already accounted for 40.6% of total enrollment, compared with less than 15% at appraisal. The pass rate on skills tests made a remarkable improvement from 58.6% of enrollment in FY1994, to about 70% in FY2002.10 Enrollment rose because of greater physical capacity and modular and/or short-term programs. The graduate placement rate rose to 70-80% in FY2001 from 42% in FY1994. With PPP policy for developing a market driven skill training system, DSD delegated administration of skills tests to selected private enterprises. DSD is considering involving industry more closely in regular review and updating of the skill-development system. The project achieved its immediate objectives (para. 1). High enrollment numbers attained by the innovative modular curriculum has substantially improved the facility utilization rate. 40. In addition to the project’s immediate objectives, DSD’s CMI for on-line program delivery and administration has the potential to change the current skills-training system. It will deliver on-line quality training programs and instructor updates to public and private training institutes and centers, as well as to enterprises for in-house training throughout Thailand. CMI will help DSD to focus more on coordination of skill development activities and enhancement of training content for implementation by independent accredited training providers or individual

10 Figures represent an average of 80 skills standards. The 62% pass rate indicated in the report and

recommendation of the President was the maximum pass rate, as compared to 40% in other skill areas. The pass rate for participants at project institutes exceeded 80%.

11

enterprises. With the CMI, the project attained a strong possibility to have a wider development impact on the skills-development sector. 41. The project was highly efficacious. C. Efficiency in Achievement of Outputs and Purpose 42. Investment Efficiency. Coordination, market orientation, and financing mechanisms are the essential dimensions in establishing cost-effective skill development system. Unlike other sectors, skill development involves several ministries, public agencies, and private enterprises for training and certification. However, traditional investment decisions were inclined to provide an executing agency with facilities without enough attention to the need of coordination with other training providers. Such decisions risk investment duplications and competition with public and private training providers. Therefore, coordination is one of the essential dimensions for the investment efficiency. 43. Market orientation and financing mechanism are also key issues to ensure an efficient and cost-effective training system. Trainees were the main project beneficiaries when the private sector was still small and most training graduates worked in the public sector or were self-employed. At that time, training programs and facilities were considered the products of skill-development projects, and the cost of training was recovered from trainees based on the benefit principal. Training provisions could be supply-driven because the Government was both dominant employer and training provider. However, industrialization and the rise of the private sector have opened up a new array of jobs, while the public sector has shrunk in relative terms. Traditional investments in skill development were losing relevance with this change in the job market, and revealing a mismatch with industry demands. Skill development projects had to be reviewed so that they would be more demand-driven for producing a skilled employable workforce. Private-sector employers, who utilize skilled workforce as an essential input to their business, have become a major project beneficiary who should also share the cost of training. 44. In financial terms, technological changes under rapid industrialization have shortened the life expectancy of training equipment and increased the financial burden on the Government to meet market needs that vary rapidly. More involvement from private sector in skill training activities and at the same time an enhanced role of the Government as a coordinator to promote the PPP in skill development have become imperative. 45. The project fully incorporated these issues and changes to ensure a cost-effective training system. For coordination, DSD has established a coherent skill-development framework through agreements with 12 line ministries and/or their departments so that (i) DSD’s National Vocational Training Coordination Committee would carry out coordination; (ii) duplications of skills standards or training programs would be avoided; and (ii) the project’s skills standards and certification system would be incorporated in or linked to the existing national qualification framework. For market orientation, DSD also reached agreements with key industry associations under the PPP policy to jointly develop and implement skill training. Cooperation would include private-sector input in skills standards and training programs, and assigning private training institutes and enterprises to conduct skill testing (para. 8). 46. For financing, DSD took a cost-sharing approach by delegating skill tests to private enterprises. This greatly contributed to saving costs for expensive, up-to-date equipment to test

12

skills in more than 80 areas.11 DSD is considering delegating more responsibility to public and private training providers—including contracting out program delivery (implementation of individual training programs) to private training providers—so DSD can focus on coordination and quality control. The Government supported efforts toward a cost-effective system by promulgating the VTPA with provisions for financial backup such as favorable tax arrangements for private training business and a basic framework for fee collection and cost-sharing (para. 51). At the end of the project, a practical cost-sharing mechanism was established. The Government allocates budget, mainly for pre-employment training. Participants in upgrade training pay tuition. Private enterprises and public agencies bear the cost of in-house or upgrade training for their employees, as well as for skill tests that use their own staff, venues, and equipment. They also contribute to updating and maintaining the training program and occupational skills standards. 47. Process Efficiency. Achievements in managerial efficiency, as well as pass rates and other key parameters shown in Appendix 1, are evidence of the improved internal efficiency of the skill-development system. The increased job placement rate—helped through partnership with the private sector in developing, implementing, and updating skills standards and training programs, as well as providing career development services—supports the improved external efficiencies as anticipated at appraisal (para. 39). The operational evaluation unit provides regular feedback activities by monitoring employment data. 48. The project successfully established a cost-effective skill-development framework, which the ADB’s education policy envisaged in 2002. The project was therefore very efficient. D. Preliminary Assessment of Sustainability 49. The project is most likely sustainable. This is supported by the relevance, efficacy, and efficiency of the project but also by the following factors: market demand; the Government’s policy, legal, and financial commitments; and institutional arrangements. 50. Employers’ Demands. The project addressed the needs of two client groups: trainees and employers. Employers, who form market demand, primarily determine project success through their willingness to employ graduates. Trainees choose training programs based on job placement rates at training institutes or centers and the effectiveness of a skill certificate in getting a job. To meet the employers’ demands, the project promoted participation of public and private industries (paras. 8 and 9). DSD also recognized that job market needs are linked to the Government’s industrial policy, which promotes manufacturing for both export and jobs. DSD anticipated the mid- to long-term relevance of the skills standard and training system to the industrial policy when it developed the skill-training system. 51. At project completion, 70-80% of trainees who graduated in FY2001 found a job within a year12, compared to 42% in 1994 (Appendix 1). The project effectively met market demand. 52. Trainees’ Demands. The project focused on training in-service workers, underprivileged youth and women in provincial areas who lack access to traditional training. The project

11 The numerical comparison of the unit cost of training before and after the Project was difficult to perform with

accuracy at the time of the PCR because the Project document did not provide assumptions or formulas for calculations and comparison. The operations evaluation unit under the DSD will review the framework for monitoring training costs.

12 Staff estimate. Exact figures are difficult to obtain because it is hard to distinguish between graduates of the old system and the new system. Modular programs require continuous monitoring of placements, compared with the old system, which followed a fixed academic year.

13

provided (i) modular curriculum for flexible learning; (ii) training programs linked to the employment opportunities for women; and (iii) career guidance and job placement services in provincial areas. To promote job opportunities for women and ethnic minorities in provincial areas, the project established the Women Friendly Center in Chiang Mai. These efforts boosted enrollment in skills training to 89,531 by project completion, more than double the original target. The project successfully attracted the target client group. 53. Government Commitment. The Government established a legal framework for supporting skill development by promulgating the VTPA in 1994. VTPA provided policies to promote private-sector involvement across the country. Its provisions include tax breaks and financial assistance for those establishing training institutes outside Bangkok. Although the Government’s budget was tight during the crisis and its aftermath, government counterpart funds were disbursed smoothly during implementation (Appendix 7). Because the Government has been financing full recurrent costs, including salaries and operating expenses of project institutes and centers since the project commencement, there has been no problem in transferring the administration of project facilities from the project budget to the regular budget. 54. The Government’s financial commitment and capacity during implementation, together with recovery of more than 50% of recurrent costs (para. 27) through fees (paras. 13 and 15) and sales from production units, indicates little financing risk at project completion. Nevertheless the Government’s commitment to skill development and the level of cost recovery depends on whether training continues to provide workers with marketable skills. To ensure the relevance of skill training, DSD established the OEU in February 2003 for regular monitoring and evaluation of post-project skill development activities (para. 22). 55. Policy and Institutional Arrangement. Issues for sustainable operation include (i) an appropriate mechanism for coordinating training; (ii) a demand-driven mechanism to assure the client (i.e. employers and recruiters from public and private enterprises) of the effectiveness of training and skill certification; (iii) a mechanism to deliver training to enhance the access by the beneficiaries; and (iv) a cost-sharing mechanism. DSD promoted participation of employers under the PPP policy; established a coordination framework with relevant public and private agencies, which operated their training programs; and incorporated modern policies on curriculum, pedagogies, and service delivery with a modular CBST approach and an open network system. The Government provided policy support for the new framework with a cost-sharing mechanism (para. 46) through the VTPA, favorable tax arrangements, and a basic fee collection framework. E. Institutional, Sociocultural, and Environmental Impacts 56. The PPP approach made a substantial contribution to establishing demand-driven skill development. The project incorporated women and indigenous people to maximize the equity of project benefits. Women-friendly training content and a modular curriculum broadened opportunities for in-service workers, underprivileged youth, and women. The Women Friendly Center in Chiang Mai has become a hub to help ethnic minorities and deliver women-friendly training programs. The project also introduced environmental subjects in the training program. Institutional and sociocultural impacts are substantial.

14

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 57. The project was highly successful and implemented as conceived at appraisal. Key criteria in ADB guidelines—including project relevance, efficacy, efficiency, sustainability, and institutional development—, other impacts as discussed above, and the indicators summarized in the logical framework (Appendix 1) support the rating. B. Lessons Learned 58. Initial procurement delays were caused by (i) the PIU’s interpretation of ADB procurement procedures for conformity with government regulations; and (ii) the lack of a focal person who had ample experience in different procurement styles and was proficient in English to handle the bidding process (para. 28). ADB approved additional procurement specialists during implementation to help carry out procurement for 22 project institutes and centers (para. 32). During preparation, it is useful to assess potential risks of procedural conflict in procurement. Procurement specialists could be considered, particularly in countries where English is less commonly spoken. C. Recommendations

1. Project-Related 59. OEU should monitor enrollment, the pass rate on skills tests, and the placement rate of certificate holders and separate the results according to gender. It should also monitor demand-driven PPP through its annual evaluation report to supplement quantitative statistics on persons trained. Based on such monitoring, a mission for the project performance audit review could be fielded around 2005 if relevant ADB departments consider it necessary.

2. General 60. It is very useful to establish a coherent framework under which the Government and ADB share achievement targets, particularly among staff in charge of the loan and project implementation. ADB’s ongoing efforts to strengthen links between the project framework, the project performance monitoring system, the review mission’s aide memoire, and the project completion review are very important and need continued support.

Appendix 1 15

PROJECT FRAMEWORK

Design Summary Performance Indicators Monitoring

Mechanisms Project Achievements

Goal Provision of human resources for continued economic growth

• Coherent policies maintained in

the national development framework

• Government statistics • National Economic

and Social Development Plan (7th, 8th, and 9th)

Purpose Skill-development system strengthened for turning youth, women, and farmers into employable skilled workers

• Employment-oriented system

institutionalized to meet the demand of market and trainees

• Department of Skill

Development (DSD) prepares annual skill development statistics

• Placement increased from at

most 42% in 1994 to 70-80% in FY2001

Outputs

1. Improved efficiencies in skill-development activities

• Pass rate in skill testing improved from 58.6% in 1994 to 80% by the end of the project

• Placement rate improved from 42% to 80% by end of the project

• Annual skill-development statistics prepared by DSD

• Pass rate in FY2002 was estimated at approximately 70%

a. Skill standards and training packages

• New skill standards prepared for 51 occupations

• Training packages prepared for 12 training areas

• Training programs for each package prepared on competency basis

• Training programs for each package prepared for modular curriculum

• Theory and technical literacy addressed in each program

• Training programs prepared in 50 CD-ROM titles

• National skill standards

• Training packages: materials and programs for both teaching and learning

• CD-ROMs • Quarterly progress

report • Loan review mission

• New skill standards prepared for 80 occupations

• Training packages prepared for 14 training areas

• Training programs for each package prepared on competency basis

• Training programs for each package prepared for modular curriculum

• Theory and technical literacy addressed in each program

• Training program prepared in 64 CD-ROM titles

• Computer-managed instruction (CMI) net work developed for on-line program delivery

b. Career development • Career development and job

placement services strengthened in each Regional Institute for Skill Development (RISD) and Provincial Center for Skill Development (PCSD)

• Improved publicity through outreach services

• Career guidance materials prepared for 26 courses

• Staff trained domestically and by international fellowships

• Quarterly progress report

• Loan review mission • Career guidance

materials

• Career development and job placement services strengthened in each RISD and PCSD by providing staff training of 154 person-months

• Improved publicity through outreach services and CMI network

• Career guidance materials prepared for 33 courses.

• Staff trained overseas for 63 person-months and within the

16 Appendix 1

Design Summary Performance Indicators Monitoring

Mechanisms Project Achievements

country for 91 person-months

2. Expanded Training Capacity

a. Expand capacity to provide training for skill upgrades

• Enrollment increased from 7,000 in 1995 to 15,000 by the end of the project

• Buildings and training equipment updated at the Central Institute for Skill Development (CISD) and 11 RISDs

• Production units established in 7 RISDs

• Enrollment record • Quarterly progress

report • Loan review mission • Procurement review

• Enrollment in CISD and 11 RISDs increased from 7,000 in 1995 to 51,674 in FY2002

• Civil work completed and training equipment installed in Central Institute for Skill Development and 11 RISDs

• Production unit established in 6 RISDs and a PCSD

b. Expand capacity to provide pre-employment training

• Enrollment increased from 5,000 in 1995 to 10,000 by end of the project

• Building and training equipment of 9 PCSDs updated

• Administrative staff ratio reduced from 50% in 1995 to 35% by end of the project

• Facility utilization rate improved from 20% in 1995 to 35% by the end of the project

• Female enrollment tripled • At least 2 women-friendly

programs introduced at each PCSD

• International Skill Training Center for Women established in Chiang Mai

• 44,000 women trained • Mobile enrollment increased

from 7,500 in 1995 to 12,000 by the end of the project

• Enrollment record • Quarterly progress

report • Loan review mission • Procurement review

• Enrollment in 10 PCSDs increased from 5,000 in 1995 to 7,376 in FY2002

• Civil work completed and equipment installed in 9 PCSDs

• Administrative staff ratio in 22 project institutes and centers reduced to 18.5% by the end of the project

• Facility utilization rate improved to about 60% by the end of the project

• Women comprised 40.6% of all students in FY2002 up from 15% in 1994

• At least 2 women-friendly programs introduced to each PCSD

• International Skill Training Center for Women established in Chiang Mai

• In total 227,319 women trained from FY1998-2002

• Mobile enrollment increased from 7,500 in 1995 to 11,092 in FY2002

3. Enhanced institutional capacity in DSD

a. Planning and management capacity improved

• Organizational capacity to formulate midterm and annual plans strengthened

• A system developed for continuous target stetting, performance evaluation, and benefit monitoring of DSD’s training institutes and centers

• Domestic training implemented for 1,760 person-months

• Overseas fellowships

• Quarterly progress report

• Loan review mission

• On-the-job training provided to strengthen organizational capacity to formulate midterm and annual plans. Annual work plans and achievements during implementation support increased capacity

• Benefit monitoring and evaluation system developed, and linked to the CMI network

• Operation evaluation unit

Appendix 1 17

Design Summary Performance Indicators Monitoring

Mechanisms Project Achievements

implemented for 50 person-months

• Overseas study visits implemented for 440 person-months

established for continuous target stetting, performance evaluation, and benefit monitoring

• Domestic training implemented for 1,224 person-months

• Overseas fellowships implemented for 276 person-months

• Overseas study visits implemented for 823 person-months

b. Instructors trained • Training for 980 instructors

implemented in CISD • 250 administrative staff trained

as instructors • Overseas fellowships awarded

for 50 key instructors • Incentive systems introduced to

retain instructors

• Quarterly progress report

• Loan review mission

• Training for 860 instructors implemented in CISD

• 1,550 administrative staff trained as instructors (673 full-time instructors)

• Overseas fellowships awarded for 25 key instructors

• Incentive systems introduced to retain instructors; salary range fully upgraded

c. Enhanced project implementation capacity

• Project benefit monitoring and evaluation system developed

• Quarterly progress report

• Loan review mission

• Benefit monitoring and evaluation system developed, linked to CMI network

• Operation evaluation unit established for continuous target stetting, performance evaluation, and benefit monitoring

Note: Staff reproduced the project framework from the original project document, which did not include a project framework in the standard format.

18 Appendix 2 NATIONAL SKILLS STANDARDS

Skill Standard Areas New = 0 Rev = 1 Level 1 Level 2 Level 3

Electrical 1. Electrician (Building) 1 1 1 1 2. Air-Conditioning Mechanic 1 1 1 1 3. Electrician (Industrial) 1 1 1 1 4. Automotive Air-Conditioning Mechanic 1 1 1 1 5. Electrician (Outdoor) 1 1 1 1 6. Electrician (Industrial Controls) 1 1 1 1 7. Instrument and Process Control 1 1 1 1

Textile 1. Weft Knitting Machine Operator 0 1 2. Warp Knitting Machine Operator 0 1 3. Warp Operator 0 1 4. Drawing-In Operator 0 1 5. Sizing Operator 0 1 6. Weaving Section Operator 0 1 7. Preparation for Spinning Section Operator 0 1 8. Spinning Section Operator 0 1 9. Textile Dyer 0 1 1 1

10. Textile Printer 0 1 1 1 11. Textile Finisher 0 1 1 1 12. Textile Chemistry Designer (Withdrawn) 0 1 1 1 13. Cutting Section Operator 0 1 1 14. Pattern Maker 0 1 1 1 15. Sewing Section Operator 0 1 1 1 16. Finishing Section Operator 0 1 1 17. Garment Designer 0 1 1 1 18. Dressmaker 1 1 1 1 Electronics

1. Radio & Television (Television) 1 1 1 2. Radio & Television (Video) 0 1 1 3. Radio & Television (CD Player) 0 1 1 4. Industrial Electronics 1 1 1 1 5. Industrial Electronics (Power Electronics) 0 1 1 1 6. Telecommunications Mechanic (Radio Communication) 1 1 1 1 7. Telecommunications Mechanic (Switching System) 1 1 1 1 8. Telecommunications Mechanic (Data Communication) 1 1 1 1

9. Telecommunications Mechanic (Microwave and Satellite Communications) 1 1 1 1

10. Computer Repair 0 1 1 1 11. Microprocessor 0 1 1 1 12. Computer-Multimedia (Authorware) 0 1 1 13. Telecommunications Mechanic (Outside Plant) 1 1 1 1 Automotive

1. Automobile Mechanic 1 1 1 1 2. Heavy Equipment Mechanic 1 1 1 1 3. Auto-Body Repair Mechanic 1 1 1 1 4. Car Painting 1 1 1 1 5. Motorcycle Mechanic 1 1 1 1 6. Motor Vehicle Electrician/Electronics 1 1 1 1

Appendix 2 19 7. Gasoline Engine Mechanic 1 1 1 1 8. General-Purpose Engine Mechanic (Diesel Engine) 1 1 9. Diesel Engine Mechanic 1 1 1 1

10. Suspension & Chassis Mechanic 1 1 1 1 11. Automotive Transmission Mechanic 1 1 1 1 12. Small Gasoline Engine Mechanic 1 1 1 Welding

1. MIG/MAG Welding 0 1 1 1 2. TIG Welding 0 1 1 1 3. Flux Core Wire Welding 0 1 1 1 4. Manual Arc Welding 1 1 1 1 5. Oxy-Acetylene Welding 1 1 1 1 6. Thermal Cutting 1 1 1 1

Machining 1. Lathe Operator 1 1 1 1 2. CNC Lathe Operator (Withdrawn) 0 1 1 3. Milling Machine Operator 0 1 1 1 4. CNC Milling Operator 0 1 1 5. Grinding Operator 0 1 1 1 6. Tool Maker 0 1 1 7. Die Maker 0 1 1 8. Mold Maker 0 1 1 9. Pattern Maker 1 1 1

10. Machine Tool Fitter 1 1 11. Machining Inspector 1 1 Construction and Carpentry

1. Furniture Maker 1 1 1 1 2. Plumber 1 1 1 1 3. Bricklayer 1 1 1 1 4. Upholsterer 1 1 1 1 5. Building Painter 1 1 1 1 6. Plasterer 1 1 1 1 7. Furniture Finisher 1 1 1 1 8. Wall and Floor Tiler 1 1 1 1 9. Synthetic Material Tiler 1 1 1 1

10. Carpenter 1 1 1 1 11. Concrete-Reinforcing Steel Worker 1 1 1 1 12. Aluminum Building Fabricator 1 1 1 1 13. Painter and Decorator 0 1 1 1 14. Joinery 0 1 1 1 15. Architectural and Construction Drafting/CAD 0 1 1 1

Total 80 74 73 66

New standards 36 Revised standards 44

CAD = computer aided design; CNC = computerized numeric control; MAG = metal active gas welding; MIG = metal inert gas welding; TIG = tungsten inert gas welding. Note: For columns Level 1, 2, and 3, "1" indicates a skill standard was prepared. A blank space means a skill standard has not yet been prepared. The Welding Society also prepared skills standards for certifying welding instructors, authorized welding inspectors and designated examiners, as well as national training standards for welding and cutting. Skills standards for textile chemistry designer and CNC lathe operator were prepared but the Government did not adopt them.

Appendix 3 20

SKILL TRAINING PACKAGES

Training Package Program 1 Welding 1 MIG/MAG welding

2 Manual Arc Welding 3 TIG Welding 2 Automotive 4 Gasoline Engines 5 Automotive Transmission

6 Suspension and Chassis 7 Automotive Electrical 8 Principles of an Automobile's Fuel System 9 Principles of an Automobile's Fuel System 10 Function, Components, and Principles of an Electronic Control System 3 Construction 11 Reading Blueprints 12 Wooden Furniture Materials 13 Using Measurements 14 Using Hand and Power Tools

15 Building Wooden Furniture 16 Applying Finish 17 Introduction to 3D Modeling 18 Learning Concepts and Tools 19 3D Modeling Techniques 20 Editing Commands and Techniques 21 Rendering 22 Create 3D Images for Construction Drafting Projects 4 Machining 23 Measurements Using a Micrometer 24 Measurements Using a Vernier Caliper 25 Measurements using a Dial Caliper 26 Measurements Using an Electronic Caliper.

27 Fundamentals of CNC Programming 28 Planning the Program 29 Program Tooling 30 Programming Speeds and Feeds 31 Program M-Codes 32 Programming Linear Tool Paths 33 Programming Circular Tool Paths 5 Textile 34 Basic Operation of a Sewing Machine

35 Sewing a Simple Pattern 36 Computerized Sewing Machines 37 Using a Computerized Sewing Machine to Sew Basic and Complicated Patterns 6 Electrical 38 Residential Wiring Methods 39 Commercial Wiring Methods

40 Electrical Safety 41 Fundamentals of Programmable Logic Controllers 42 Analog Systems and Controls 43 Sequential Function Charts 44 Arithmetic, Files, Logic, and Sequences

Appendix 3 21 7 Electronic 45 Computer Repair I 46 Computer Repair II

47 Computer Repair III 48 Telecommunications Mechanic (Data Communication) Grade 1 49 Telecommunications Mechanic (Data Communication) Grade 2 50 Telecommunications Mechanic (Data Communication) Grade 3

8 Job Experience, 51 Job Experience

Preparation, and 52 Qualities of a Good Employee Enrichment 53 Gender Sensitivity Training

9 Career Orientation 54 Career Guidance

10 Entrepreneurship 55 Entrepreneurship

11 Management 56 Management

12 Literacy Skills 57 Technical Literacy

13 Instructor Training 58 Instructor Training 14 Women in Development 59 Thai Cooking 60 Commercial Cooking

61 Food and Beverage 62 Housekeeping 63 Health Care for the Elderly and Children 64 Staff Management 3D = three dimensional, CNC = computerized numeric control, MIG = metal inert gas, MAG = metal active gas, TIG = tungsten inert gas.

Note: The electronics and electrical package was split in two. The package for women in development was added during implementation.

22 Appendix 4

STAFF TRAINING UNDER THE PROJECT (persons)

Overseas Study

Tours Overseas

Fellowships Domestic Short-term

Training

Total Title of Training

Program RRP Actual In

service RRP Actual In

service RRP Actual In

service RRP Actual In

service Human Resource Development: Planning and Policy Making

30

30

30

2

2

2

140

953

953

172

985

985

Women in Development

10 10 10 2 1 1 120 307 307 132 318 318

Management and Administration of Training Institutions

30

46

46

2

1

1

120

714

714

152

761

761

Development of Training Standards and Curriculum

50

45

45

5

5

5

240

849

849

295

899

899

Development of Instructional Materials

50

18

18

5

2

2

240

108

108

295

128

128

Computer-based Training

20

18

18

5

2

2

60

356

356

85

376

376

Career Guidance and Job Placement

20

21

21

5

-

-

240

487

487

265

508

508

Technical Specialty Training

200

124

124

20

10

10

400

852

852

620

987

987

Maintenance and Repair of Equipment

10

-

-

2

1

1

150

-

-

162

-

-

Project Implementation and Evaluation

20

29

29

2

1

1

50

487

487

72

517

517

Total

440

347

347

50

25

25

1,760

5,115

5,115

2,250

5,479

5,479

RRP = report and recommendation of the President. Note: “In service” denotes training participants who returned to and work for the Department of Skills Development.

Appendix 4 23

STAFF TRAINING UNDER THE PROJECT (person–months)

Overseas Study

Tours Overseas

Fellowships Domestic Short-term

Training

Total Title of Training

Program RRP Actual RRP Actual RRP Actual RRP Actual

Human Resource Development: Planning and Policy Making

30

36

2

24

140

176

172

236

Women in Development

10

22

2

12

120

87

132

121

Management and Administration of Training Institutions

30

32

2

12

120

112

152

156

Development of Training Standards and Curriculum

50

72

5

60

240

185

295

473

Development of Instructional Materials

50

36

5

-

240

108

295

144

Computer-Based Training

20

34

5

24

60

77

85

135

Career Guidance and Job Placement

20

63

5

-

240

91

265

154

Technical Specialty Training

200

480

20

132

400

281

620

612

Maintenance and Repair of Equipment

10

-

2

-

150

-

162

-

Project Implementation and Evaluation

20

48

2

12

50

107

72

167

Total

440

823

50

276

1,760

1,224

2,250

2,198

RRP = report and recommendation of the President.

24 Appendix 5

TRAINING EQUIPMENT

($ million)

Trades CISD RISD PCSD Total

1 Welding and Sheet Metal 1.63 5.29 1.08 8.00 2 Automotive 1.06 3.85 0.65 5.57 3 Construction and Carpentry 0.55 0.97 1.26 2.78 4 Machining 3.28 13.74 0.00 17.02 5 Textile 0.48 0.83 1.26 2.57 6 Electrical (including Air Conditioning) 0.43 1.13 0.28 1.84

6.5 Electronics and Electrical 1.61 0.00 1.26 2.86 7 Electronics 0.19 1.56 0.00 1.75

7.5 Mechatronics 0.44 2.01 0.00 2.45 11 Computers 1.69 2.78 1.99 6.46 12 Libraries and Laboratories 0.21 1.85 0.66 2.72 14 Homemaking and Cooking 0.27 0.66 0.93 1.86

Subtotal 11.84 34.66 9.37 55.87 DSD 4.71 Vans 0.45 0.45 0.90 Vehicles 0.04 0.04 Component Work Sample Equipment 0.01 0.07 0.08 Total 61.58 CISD = Central Institute for Skill Development, DSD = Department of Skills Development, PCSD = provincial centers for skill development, RISD = regional institutes for skill development.

Table A6.1: TOTAL TRAINING ENROLLMENT

Vocational Training

Institute/Center Total FY1998 FY1999 FY2000 FY2001 FY2002 Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual %

CISD 38,171 46,299 121 7,195 9,240 128 11,050 14,477 131 8,701 10,128 116 8,085 8,330 103 3,140 4,135 132 RISDs 1. Ratchaburi 33,743 37,587 111 9,540 12,721 133 7,020 7,971 114 5,958 5,744 96 5,625 5,412 96 5,600 6,400 114 2. Chonburi 28,700 38,722 135 9,465 11,599 123 6,370 10,866 171 4,700 7,155 152 4,315 4,572 106 3,850 3,165 82 3. Lampang 28,125 29,505 105 9,040 7,405 82 6,670 7,969 119 6,700 6,692 100 2,965 3,750 126 2,750 3,995 145 4. Khonkaen 27,665 33,541 121 7,900 9,593 121 6,258 7,866 126 4,982 5,676 114 4,050 5,529 137 4,475 5,293 118 5. Nakhon Sawan 25,179 31,709 126 8,525 9,799 115 5,430 9,439 174 4,205 5,272 125 3,419 3,726 109 3,600 4,287 119 6. Ubon Ratchathani 25,870 28,875 112 7,410 7,459 101 4,890 6,274 128 4,270 5,071 119 4,075 4,574 112 5,225 5,914 113 7. Songkhla 29,651 25,128 85 8,093 5,979 74 6,215 7,145 115 4,568 3,968 87 4,700 4,335 92 6,075 5,600 92 8. Phitsanulok 46,339 46,098 99 9,912 10,249 103 8,020 8,442 105 10,222 10,549 103 9,835 8,662 88 8,350 8,657 104 9. Nakhon Ratchasima 33,868 44,648 132 8,303 10,445 126 6,180 10,434 169 6,650 7,557 114 5,800 9,849 170 6,935 8,351 120 10. Surat Thani 23,445 24,316 104 6,850 8,405 123 6,020 7,225 120 4,570 3,777 83 3,305 3,014 91 2,700 2,387 88 11. Suphanburi 34,055 46,781 137 9,389 17,696 188 7,859 11,315 144 7,542 8,408 111 5,015 5,654 113 4,250 4,571 108 Subtotal 336,640 386,910 115 94,427 111,350 118 70,932 94,946 134 64,367 69,869 109 53,104 59,077 111 53,810 58,620 109 PCSDs 1. Pattani 22,793 22,606 99 5,713 6,804 119 6,480 5,958 92 5,125 4,118 80 2,825 3,154 112 2,650 2,512 95 2. Chaiyaphum 11,908 14,821 124 4,583 5,017 109 2,405 4,128 172 1,650 1,945 118 1,570 1,622 103 1,700 2,654 156 3. Chumphorn 12,123 16,110 133 4,148 5,592 135 2,480 5,030 203 2,175 2,322 107 1,645 1,702 103 1,675 1,727 103 4. Udon Thani 13,668 24,281 178 3,353 6,642 198 2,965 6,059 204 2,200 4,395 200 2,450 4,607 188 2,700 2,647 98 5. Chachoensao 10,653 12,847 121 2,638 3,337 126 2,110 3,808 180 1,825 2,233 122 2,080 1,841 89 2,000 2,019 101 6. Rayong 13,993 17,503 125 3,803 3,936 103 2,790 4,675 168 2,375 2,619 110 2,900 3,044 105 2,125 3,891 183 7. Chiang Rai 9,998 11,783 118 3,183 3,814 120 1,690 2,122 126 1,350 1,527 113 1,800 2,320 129 1,975 2,175 110 8. Satun 13,518 16,901 125 3,478 4,273 123 1,973 3,695 187 2,767 3,064 111 2,625 2,912 111 2,675 3,726 139 9. Nongkhai 7,686 10,178 132 1,611 2,014 125 1,775 2,870 162 1,375 1,819 132 1,550 1,968 127 1,375 1,436 104 10. Chiang Mai 5,970 5,805 97 - - - - - - - - - 1,870 2,632 141 4,100 3,989 97 Subtotal 122,310 152,835 125 32,510 41,429 127 24,668 38,345 155 20,842 24,042 115 21,315 25,802 121 22,975 26,776 117

Total 497,121 586,044 118 134,132 162,019 121 106,650 147,768 139 93,910 104,039 111 82,504 93,209 113 79,925 89,531 112 CISD = Central Institute for Skill Development, PCSD = Provincial Center for Skill Development, RISD = Regional Institutes for Skill Development. Source: Technical Studies and Planning Division, Department of Skill Development

Appendix 6 25

Table A6.2: ENROLLMENT IN UPGRADE TRAINING 26 Appendix 6

(persons)

Upgrade Training

Institute/Center Total FY1998 FY1999 FY2000 FY2001 FY2002 Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual %

CISD 31,151 39,751 128 4,726 7,202 152 8,425 12,250 145 7,800 8,972 115 7,400 7,582 102 2,800 3,719 133 RISDs 1. Ratchaburi 24,326 27,609 113 5,401 8,042 149 5,000 6,093 122 4,800 4,445 93 4,475 4,249 95 4,650 5,441 117 2. Chonburi 20,946 26,196 125 5,851 6,688 114 4,800 6,700 140 3,425 4,761 139 3,520 3,931 112 3,350 2,863 85 3. Lampang 18,851 18,794 100 5,551 4,494 81 4,600 5,509 120 4,800 3,922 82 2,025 2,434 120 1,875 2,718 145 4. Khonkaen 19,929 23,848 120 4,276 5,029 118 4,878 6,099 125 3,875 4,163 107 3,150 4,571 145 3,750 4,355 116 5. Nakhon Sawan 16,670 21,336 128 4,351 5,216 120 3,600 7,207 200 3,350 3,992 119 2,569 2,552 99 2,800 3,345 119 6. Ubon Ratchathani 16,151 19,322 120 4,101 4,529 110 3,100 4,284 138 3,050 3,550 116 2,600 3,229 124 3,300 3,977 121 7. Songkhla 22,081 18,912 86 4,136 4,059 98 4,770 5,104 107 3,850 3,131 81 4,100 3,556 87 5,225 4,936 94 8. Phitsanulok 34,718 33,471 96 5,158 5,058 98 5,600 5,357 96 7,750 8,292 107 8,735 7,494 86 7,475 7,668 103 9. Nakhon Ratchasima 26,126 33,084 127 4,601 6,328 138 4,675 6,780 145 5,800 5,906 102 5,050 8,511 169 6,000 7,369 123 10. Surat Thani 16,126 15,930 99 3,801 4,360 115 3,750 5,214 139 3,500 2,734 78 2,850 2,291 80 2,225 1,827 82 11. Suphanburi 24,401 34,507 141 4,976 13,313 268 5,425 7,867 145 6,300 6,327 100 4,200 4,222 101 3,500 3,456 99 Subtotal 240,325 273,009 114 52,203 67,116 129 50,198 66,214 132 50,500 51,223 101 43,274 47,040 109 44,150 47,955 109 PCSDs 1. Pattani 16,906 14,474 86 2,531 3,554 140 5,000 2,736 55 4,600 3,345 73 2,450 2,668 109 2,325 2,175 94 2. Chaiyaphum 7,141 7,235 101 2,441 1,990 82 1,275 1,751 137 1,200 1,153 96 1,100 1,142 104 1,125 1,634 145 3. Chumphorn 9,261 11,739 127 2,596 3,412 131 1,840 3,491 190 1,800 2,002 111 1,500 1,527 102 1,525 1,572 103 4. Udon Thani 9,626 15,901 165 2,076 4,836 233 2,000 4,121 206 1,650 2,681 162 1,950 2,928 150 1,950 1,511 77 5. Chachoensao 8,036 10,510 131 1,471 2,490 169 1,590 3,210 202 1,475 1,788 121 1,725 1,530 89 1,775 1,772 100 6. Rayong 9,876 12,360 125 1,926 2,723 141 2,350 3,376 144 2,150 1,589 74 2,000 2,098 105 1,450 3,032 209 7. Chiang Rai 6,371 7,018 110 1,696 1,933 114 1,025 1,229 120 925 981 106 1,225 1,532 125 1,500 1,508 101 8. Satun 7,996 9,695 121 1,771 2,569 145 1,500 2,000 133 1,475 1,499 102 1,350 1,548 115 1,900 2,847 150 9. Nongkhai 4,701 5,621 120 801 1,152 144 1,000 1,187 119 975 1,013 104 1,000 1,226 123 925 979 106 10. Chiang Mai 4,050 3,492 86 - - - - - - - - - 1,500 1,758 117 2,550 2,370 93 Subtotal 83,964 98,045 117 17,309 24,659 142 17,580 23,101 131 16,250 16,051 99 15,800 17,957 114 17,025 19,400 114

Total 355,440 410,805 116 74,238 98,977 133 76,203 101,565 133 74,550 76,246 102 66,474 72,579 109 63,975 71,074 111 CISD = Central Institute for Skill Development, PCSD = Provincial Center for Skill Development, RISD = Regional Institutes for Skill Development. Source: Technical Studies and Planning Division, Department of Skill Development

Table A6.3: ENROLLMENT IN PRE-EMPLOYMENT TRAINING

(persons)

Pre-employment Training

Institute/Center Total FY1998 FY1999 FY2000 FY2001 FY2002 Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned Actual %

CISD 7,020

6,548 93 2,469 2,038 83 2,625

2,227 85 901

1,156 128 685 748 109 340 416 122

RISDs 1. Ratchaburi 9,417 9,978 106 4,139 4,679 113 2,020 1,878 93 1,158 1,299 112 1,150 1,163 101 950 959 101 2. Chonburi 7,754 12,526 162 3,614 4,911 136 1,570 4,166 265 1,275 2,394 188 795 641 81 500 302 60 3. Lampang 9,274 10,711 115 3,489 2,911 83 2,070 2,460 119 1,900 2,770 146 940 1,316 140 875 1,277 146 4. Khonkaen 7,736 9,693 125 3,624 4,564 126 1,380 1,767 128 1,107 1,513 137 900 958 106 725 938 129 5. Nakhon Sawan 8,509 10,373 122 4,174 4,583 110 1,830 2,232 122 855 1,280 150 850 1,174 138 800 942 118 6. Ubon Ratchathani 9,719 9,553 98 3,309 2,930 89 1,790 1,990 111 1,220 1,521 125 1,475 1,345 91 1,925 1,937 101 7. Songkhla 7,570 6,216 82 3,957 1,920 49 1,445 2,041 141 718 837 117 600 779 130 850 664 78 8. Phitsanulok 11,621 12,627 109 4,754 5,191 109 2,420 3,085 127 2,472 2,257 91 1,100 1,168 106 875 989 113 9. Nakhon Ratchasima 7,742 11,564 149 3,702 4,117 111 1,505 3,654 243 850 1,651 194 750 1,338 178 935 982 105 10. Surat Thani 7,319 8,386 115 3,049 4,045 133 2,270 2,011 89 1,070 1,043 97 455 723 159 475 560 118 11. Suphanburi 9,654 12,274 127 4,413 4,383 99 2,434 3,448 142 1,242 2,081 168 815 1,432 176 750 1,115 149 Subtotal 96,315 113,901 118 42,224 44,234 105 20,734 28,732 139 13,867 18,646 134 9,830 12,037 122 9,660 10,665 110 PCSDs 1. Pattani 5,887 8,132 138 3,182 3,250 102 1,480 3,222 218 525 773 147 375 486 130 325 337 104 2. Chaiyaphum 4,767 7,586 159 2,142 3,027 141 1,130 2,377 210 450 792 176 470 480 102 575 1,020 177 3. Chumphorn 2,862 4,371 153 1,552 2,180 140 640 1,539 240 375 320 85 145 175 121 150 155 103 4. Udon Thani 4,042 8,380 207 1,277 1,806 141 965 1,938 201 550 1,714 312 500 1,679 336 750 1,136 151 5. Chachoensao 2,617 2,337 89 1,167 847 73 520 598 115 350 445 127 355 311 88 225 247 110 6. Rayong 4,117 5,143 125 1,877 1,213 65 440 1,299 295 225 1,030 458 900 946 105 675 859 127 7. Chiang Rai 3,627 4,765 131 1,487 1,881 126 665 893 134 425 546 128 575 788 137 475 667 140 8. Satun 5,522 7,206 130 1,707 1,704 100 473 1,695 358 1,292 1,565 121 1,275 1,364 107 775 879 113 9. Nongkhai 2,985 4,557 153 810 862 106 775 1,683 217 400 806 202 550 742 135 450 457 102 10.Chiang Mai 1,920 2,313 120 - - - - - - - - - 370 874 236 1,550 1,619 104 Subtotal 38,346 54,790 143 15,201 16,770 110 7,088 15,244 215 4,592 7,991 174 5,515 7,845 142 5,950 7,376 124

Total 141,681 175,239 124 59,894 63,042 105 30,447 46,203 152 19,360 27,793 144 16,030 20,630 129 15,950 18,457 116 CISD = Central Institute for Skill Development, PCSD = Provincial Center for Skill Development, RISD = Regional Institutes for Skill Development. Source: Technical Studies and Planning Division, Department of Skill Development

Appendix 6 27

Table A6.4: ENROLLMENT IN SKILLS TRAINING

(persons)

Total Pre-Employment Training Upgrade Training

Institute/Center

Total FY1998-2002 Total FY1998-2001

1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

CISD 11,953 789 278 159 200 106 46 11,164 2,006 4,267 2,447 1,609 835RISDs

1. Ratchaburi

13,256 928 631 43 49 83 122 12,328 3,384 2,331 1,667 2,216 2,7302. Chonburi 9,197 2,491 1,074 1,030 282 99 6 6,706 1,885 2,098 1,247 1,040 4363. Lampang 10,866 3,092 1,029 624 954 277 208 7,774 1,757 2,004 2,022 910 1,0814. Khonkaen 13,333 2,372 1,446 332 287 173 134 10,961 1,812 3,217 2,000 1,966 1,9665. Nakhon Sawan 10,150 2,227 1,439 349 193 114 132 7,923 1,645 2,745 1,658 679 1,1966. Ubon Ratchathani

7,605 1,798 533 140 161 254 710 5,807 792 994 1,104 1,312 1,605

7. Songkhla 9,529 1,103 416 265 183 170 69 8,426 1,182 2,324 1,336 1,328 2,2568. Phitsanulok 21,317 4,579 2,083 851 1,217 198 230 16,738 1,979 2,796 4,814 3,514 3,6359. Nakhon Ratchasima

12,761 2,019 966 431 149 327 146 10,742 1,589 1,408 1,332 3,363 3,050

10. Surat Thani 10,451 2,565 1,434 662 210 181 78 7,886 1,681 2,683 1,511 1,014 99711.

Suphanburi 23,769 3,962 1,181 1,176 486 574 545 19,807 6,759 5,220 3,985 2,359 1,484 Subtotal 142,234 27,136 12,232 5,903 4,171 2,450 2,380 115,098 24,465 27,820 22,676 19,701 20,436

PCSDs

1. Pattani 13,366 4,214 1,708 1,946 235 147 178 9,152 2,423 1,534 2,129 1,749 1,3172. Chaiyaphum 6,745 2,785 1,004 789 224 230 538 3,960 893 767 809 597 8943. Chumphorn 7,430 1,110 391 396 117 102 104 6,320 1,340 1,819 1,224 831 1,1064. Udon Thani 11,865 3,547 916 871 722 793 245 8,318 2,578 1,933 1,551 1,707

549

5. Chachoensao

6,532 905 281 301 127 106 90 5,627 1,271 1,822 1,108

709 7176. Rayong 5,766 268 94 - 42 31 101 5,498 1,015 1,789 585 762 1,3477. Chiang Rai

6,104 2,438 1,430 281 92 394 241 3,666 1,196 598 309 844 719

8. Satun 8,633 3,026 363 703 888 664 408 5,607 722 1,176 927 962 1,8209. Nongkhai 3,944 1,687 229 625 342 183 308 2,257 295 668 536 364 39410.

Chiang Mai 2,747 651 - - - 323 328 2,096 - - - 864 1,232 Subtotal

73,132 20,631 6,416 5,912 2,789 2,973 2,541 52,501 11,733 12,106 9,178 9,389 10,095

Total 227,319 48,556 18,926 11,974 7,160 5,529 4,967 78,763 38,204 44,193 34,301 30,699 31366

28 Appendix 6

CISD = Central Institute for Skill Development, PCSD = Provincial Center for Skill Development, RISD = Regional Institute for Skill Development. Source: Technical Studies and Planning Division, Department of Skill Development

PROJECT COST AND FINANCING BY SOURCE: APPRAISED VS. ACTUAL ($’000)

Financing Source Total Project Cost Component ADB Government RRP At Completion RRP At Completion RRP At Completion

FX

LC

Total FX

LC

Total

FX

LC

Total FX

LC

Total

FX

LC

Total

FX

LC

Total 1. Equipment

Equipment

62.8 0.0 62.8

61.6 0.0 61.6 0.0 16.2 16.2 0.0 0.0 0.0 62.8 16.2 79.0 0.0 0.0 0.0Service Vehicles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal 62.8 62.80.0 61.6 0.0 61.6 0.0 16.2 16.2 0.0 13.6 13.6 62.8 16.2 79.0 61.6 13.6 75.2

2. Training Materials Development Training Package Development

0.4 0.0 0.4 0.0 0.0 0.0 0.0 0.6 0.6 0.0 0.0 0.0 0.4 0.6 1.0 0.0 0.0 0.0

CD-ROM Title Development

1.4 0.0 1.4 0.0 0.0 0.0 0.0 1.6 1.6 0.0 0.0 0.0 1.4 1.6 3.0 0.0 0.0 0.0Technical Libraries 1.2 0.0 1.2 0.0 0.0 0.0 0.0 1.8 1.8 0.0 0.0 0.0 1.2 1.8 3.0 0.0 0.0 0.0 Subtotal

3.0 0.0 3.0

1.2 0.0 1.2 0.0 4.0 4.0

0.0 1.6 1.6 3.0 4.0 7.0 1.2 1.6 2.8

3.

Consulting Services International Consultants

3.0 0.0 3.0 0.0 0.0 0.0 0.0 1.2 1.2 0.0 0.0 0.0 3.0 1.2 4.2 0.0 0.0 0.0

Domestic Consultants

0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 5.0 0.0 0.0 0.0 0.0 5.0 5.0 0.0 0.0 0.0Contracted Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0 Subtotal

3.0 0.0 3.0

3.6 0.0 3.6 0.0 6.5 6.5

0.0 6.5 6.5 3.0 6.5 9.5 3.6 6.5 10.1

4.

Staff Development Domestic Short-Term Training

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0

Overseas Fellowships 0.0 0.0 0.0 0.0 0.0 0.0 2.3 0.1 2.4 0.0 0.0 0.0 2.3 0.1 2.4 0.0 0.0 0.0Overseas Study Tours 0.0 0.0 0.0 0.0 0.0 0.0 2.7 0.1 2.8 0.0 0.0 0.0 2.7 0.1 2.8 0.0 0.0 0.0 Subtotal 0.0 0.0 0.0

0.0 0.0 0.0 5.0 0.5 5.5 3.0 1.1 4.1 5.0 0.5 5.5 3.0 1.1 4.1

5. Others Research and Development Funds

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0 0.0 0.3 0.3 0.0 0.0 0.0

Publicity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.5 0.0 0.0 0.0 0.0 0.5 0.5 0.0 0.0 0.0 Subtotal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.8 0.0 1.0 1.0 0.0 0.8 0.8 0.0 1.0 1.0

6. Operations and Maintenance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12.5

12.5 0.0 2.3 2.3 0.0 12.5 12.5 0.0 2.3 2.37. Project Implementation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3 1.3 0.0 1.5 1.5 0.0 1.3 1.3 0.0 1.5 1.5 Project Base Cost 68.8 0.0 68.8 66.3 0.0 66.3 5.0 41.8 46.8 3.0 27.6 30.6 73.8 41.8 115.6 69.3 27.6 96.9 (excluding taxes and duties) Tax and Duties 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.5 6.5 0.0 2.5 2.5 0.0 6.5 6.5 0.0 2.5 2.5 Project Base Cost 68.8 0.0 68.8 66.3 0.0 66.3 5.0 48.3 53.3 3.0 30.1 33.1 73.8 48.3 122.1 69.3 30.1 99.4 (including taxes and duties)

8.

Contingencies Physical

7.4 0.0 7.4 0.0 0.0 0.0 0.0 4.8 4.8 0.0 0.0 0.0 7.4 4.8 12.2 0.0 0.0 0.0

Price 3.8 0.0 3.8 0.0 0.0 0.0 0.0 3.2 3.2 0.0 0.0 0.0 3.8 3.2 7.0 0.0 0.0 0.09. Commitment Charge 0.0 0.0 0.0 0.0 0.0 0.0 11.6 0.0 11.6 1.5 0.0 1.5 11.6 0.0 11.6 1.5 0.0 1.5

Total Project Cost 80.0 0.0 80.0 66.3 0.0 66.3 16.6 56.3 72.9 4.5 30.1 34.6 96.6 56.3 152.9 70.8 30.1 100.9

Percentage (%) 83 520 94 0 66 10017 48 1006 34 100100 100 100 100 100

Appendix 7 29ADB = Asian Development Bank, FX = foreign exchange, LC = local currency, RRP = report and recommendation of the President.

Note: Baht had depreciated from about B25.5 at appraisal to about B43.0 at completion.

30 Appendix 8

BREAKDOWN OF ANNUAL DISBURSEMENTS ($'000)

ADB

Year Quarter Amount Cumulative

1997 I 0.00 0.00

II 0.00 0.00 III 0.00 0.00 IV 0.95 0.95

1998 I 0.00 0.95 II 2.20 3.15 III 0.00 3.15 IV 0.42 3.57

1999 I 0.00 3.57 II 0.00 3.57 III 0.21 3.78 IV 3.50 7.27

2000 I 1.55 8.82 II 1.71 10.54 III 2.80 13.34 IV 3.75 17.09

2001 I 5.83 22.92 II 8.15 31.07 III 5.37 36.44 IV 3.10 39.54

2002 I 4.16 43.70 II 7.82 51.52 III 7.49 59.01 IV 5.83 64.84

2003 I 0.61 65.44 II 0.89 66.34

Total 66.34 66.34

Appendix 9 31

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IVA. Efficiency Improvements in Skills Development

1. Preparing Standardsa. Analyzing Occupations

b. Developing Training Standards

c. Developing Certification Standards

d. Developing Testing Items

e. Pilot Testing

f. Application of the System

2. Developing Multimedia Training Packagesa. Review of Training Standards

and Certification

b. Design of Instructional Systems

c. Selection of Content and Media

d. Fabrication of Draft Packages

e. Pilot Testing

f. Production of Packages

g. Use of Packages

3. Developing a Career Development Systema. Establishing Career Ladders

b. Training Career Guidance Officers

c. Developing Career Guidance Materials

d. Testing Guidance Materials

e. Providing Career Guidance Services

2002

PROJECT IMPLEMENTATION PROGRESS: PLANNED VS. ACTUAL

200120001996 1997 1998 1999Component

32 Appendix 9

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IVB. Expansion of Training Capacity

a. Specification of Equipment

b. Tender/Contract of Equipment

c. Supply and Installation

d. Use and Maintenance

2. Job Training for Youth, Women and Farmersa. Specification of Equipment

b. Tender/Contract of Equipment

c. Supply and Installation

d. Use and Maintenance

C. Strengthening DSD's Institutional Capacity

a. Design Management Information System

b. Staff Training

c. Research and Development

d. Planning and Monitoring

2. Providing Training to Instructorsa. Course Design

b. Selection of Instructors

c. Actual Training

d. Evaluation and Follow-Up

3. Supporting Project Implementationa. Staff Training

b. Collection of Indicators

c. Monitoring and Evaluation

DSD = Department of Skills DevelopmentPlanned

Actual

1. Improving Planning and Management

Component

1. Upgrade Training for Minimum Wage

20021996 1997 1998 1999 2000 2001

Appendix 10 33

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Covenants Reference Status of Compliance

1. The Borrower shall cause the Project to be carried out with due

diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental, and educational practices.

Loan Agreement Section 4.01(a)

Complied

2. In carrying out the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 of the Loan Agreement.

Loan Agreement Section 4.01(b)

Complied

3. The Borrower shall make available, as promptly as needed, the funds, facilities, services, land, and other resources required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of Project facilities.

Loan Agreement Section 4.02

Complied

4. In carrying out the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to the Borrower and the Bank, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank.

Loan Agreement Section 4.03(a)

Complied

5. The Borrower shall cause the Project to be carried out in accordance with plans, specifications, work schedules, and construction methods acceptable to the Borrower and the Bank. The Borrower shall furnish, or cause to be furnished, to the Bank, promptly after their preparation, such plans, specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request.

Loan Agreement Section 4.03(b)

Complied

6. The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

Loan Agreement Section 4.04

Complied

7. The Borrower shall make arrangements satisfactory to the Bank for insurance of Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Loan Agreement Section 4.05(a)

Complied

8. Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation, and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Loan Agreement Section 4.05(b)

Complied

9. The Borrower shall maintain, or cause to be maintained, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of

Loan Agreement Section 4.06(a)

Complied

34 Appendix 10

Covenants Reference Status of Compliance

the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof.

10. The Borrower shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by auditors acceptable to the Bank; (iii) furnish to the Bank, as soon as available but in any event not later than twelve (12) months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and compliance with the covenants of this Loan Agreement), all in the English language; and (iv) furnish to the Bank such other information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request.

Loan Agreement Section 4.06(b)

Being complied (ongoing)

11. The Borrower shall furnish, or cause to be furnished, to the Bank all such reports and information as the Bank shall reasonably request concerning (i) the Loan, and expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) to the extent relevant to the Project, the administration, operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (v) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan.

Loan Agreement Section 4.07(a)

Complied

12. Without limiting the generality of the foregoing, the Borrower shall furnish, or cause to be furnished, to the Bank quarterly reports on the carrying out of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Loan Agreement Section 4.07(b)

Complied

13. Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under the Loan Agreement and the accomplishment of the Loan’s purposes.

Loan Agreement Section 4.07(c)

Complied

14. The Borrower shall enable the Bank’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan,

Loan Agreement Section 4.08

Complied

Appendix 10 35

Covenants Reference Status of Compliance

and any relevant records and documents.

15. The Borrower shall ensure that the Project facilities are operated, maintained and repaired in accordance with sound administrative, financial, engineering, environmental, vocational education and skills training, and maintenance and operational practices.

Loan Agreement Section 4.09

Complied

16.

It is the mutual intention of the Borrower and the Bank that no other external debt owed a creditor other than the Bank shall have any priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (I) that, except as the Bank may otherwise agree, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and interest and other charges on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect.

Loan Agreement Section 4.10(a)

Complied

17.

The Ministry of Labor and Social Welfare (MOLSW) shall be the Executing Agency with overall responsibility for the Project. The Department of Skills Development shall be the Implementing Agency responsible for Project planning, organization, and implementation.

Loan Agreement Schedule 6 (para 1)

Complied

18. A Project Coordination Committee (PCC) shall established by MOLSW within one month of the Effective Date to be responsible for: (i) coordinating Project activities between MOLSW and other agencies and organizations of the Borrower involved in the Project; (ii) reviewing and providing policy adjustments; (iii) monitoring the general process of the Project; and (iv) reviewing and approving annual Project implementation plans.

Loan Agreement Schedule 6 (para 2)

Complied

19. PCC shall be chaired by the Permanent Secretary of MOLSW and composed of the Assistant Secretary of MOLSW, the Director General of DSD, representatives of the Ministry of Finance, National Economic and Social Development Board, the Ministry of Education and Department of Employment of MOLSW.

Loan Agreement Schedule 6 (para 3)

Complied

20. The project implementation unit (PIU) established by DSD shall be responsible for management of the Project. The director-general of DSD shall act as the Secretary of PCC, and shall appoint a full-time Project Manager as the head of PIU. An adequate number of senior officers shall be designated to the PIU on a full-time basis. A total of not less than seven support staff shall compliment senior officers in the PIU.

Loan Agreement Schedule 6 (para 4)

Complied

21. MOLSW shall ensure that close coordination between the PIU and the functional operation units of DSD be maintained throughout the implementation of the Project.

Loan Agreement Schedule 6 (para 5)

Complied

22. DSD and the Bank shall undertake a comprehensive midterm review of the Project during the third year of Project implementation. The midterm review shall (i) review the Project scope, design, implementation arrangements and other relevant

Loan Agreement Schedule 6 (para 6)

Complied

36 Appendix 10

Covenants Reference Status of Compliance

issues; (ii) identify changes in the Borrower’s policies and re-assess their impacts on the future Project implementation and sustainability; (iii) review and establish compliance with the provisions of this Loan Agreement; (iv) identify problems and constraints; and (v) if necessary, recommend changes in the design or implementation of the Project.

23. DSD shall, through periodic benefit monitoring and evaluation (BME) activities, monitor and evaluate Project benefits with respect to (i) the internal efficiency of the Project institutions and centers (including input, processes, and output) to be measured with the target described in paragraph 15 below; (ii) meeting the industry’s demand for skills development; (iii) cost effectiveness of training programs; (iv) employment placement of trainees in general (external efficiency); and (v) social impacts, including gender related aspects, access to skills training by trainees from the lower income profiles and those living in the rural areas, and the change in social mobility of the trainees as a result of their acquiring the basic level of skills training.

Loan Agreement Schedule 6 (para 7)

Complied

24.

The PIU shall be responsible for the administration of the fellowships and training, both in the country and overseas. The Borrower shall cause DSD to submit detailed criteria and procedures for selecting candidates for overseas fellowships and short-term training programs, together with the details of the training programs, including course content, venue, duration of course and financial terms and conditions, for Banks review and comment. The Borrower shall ensure that a strict system of selection and bonding is adopted in connection with the overseas fellowships and training programs under the Project to ensure that the recipients of overseas training will continue their services with DSD after their return for a period in accordance with the present regulations of the Borrower.

Loan Agreement Schedule 6 (para 8)

Complied

25.

The site selection, design, construction, and operation of the Project-funded buildings shall follow the Bank’s Environmental Guidelines for Selected Infrastructure Projects to ensure that appropriate mitigation measures, if required, are followed.

Loan Agreement Schedule 6 (para 9)

Complied

26.

Environmental aspects shall be included in the training programs, wherever appropriate, with the view to enhancing environmental awareness.

Loan Agreement Schedule 6 (para 10)

Complied

27. Each PCSD shall be required to offer one or two courses suitable for women in the province and increase the number of women’s courses in consultation with DSD’s Women and Children’s Skills Development Coordination Division. DSD shall disseminate through its institutes and centers information on women’s training programs to increase public awareness. The Borrower shall monitor enrollment of female trainees at DSD training institutes and centers during the Project period and report the results to National Vocational Training Coordination Committee (NVTCC) and the Bank twice a year during Project implementation.

Loan Agreement Schedule 6 (para 11)

Complied

Appendix 10 37

Covenants Reference Status of Compliance

28. In implementation of the Project the Borrower shall cause

particular attention to be paid to safety features such as clear marking of passages and emergency exits, proper ventilation, protective guards for machines, automatic switch-offs, and safety goggles.

Loan Agreement Schedule 6 (para 12)

Complied

29. The Borrower shall cause DSD to prepare, in consultation with the Bank, an action plan within one (1) year of the Loan Effective Date to recover at least 50% of the recurrent training costs by end of the Project period and shall report to NVTCC and the Bank the implementation status of such action plan twice a year during Project implementation.

Loan Agreement Schedule 6 (para 13)

Complied

30.

The Borrower shall cause DSD to prepare, in consultation with the Bank, a strategic plan to involve the private sector in skills training within one (1) year of the Loan Effective Date and report to NVCC and the Bank the implementation status of such strategic plan every six months during Project implementation.

Loan Agreement Schedule 6 (para 14)

Complied

31. The Borrower shall cause DSD to prepare, in consultation with the Bank, an action plan within one year of the Loan Effective Date to increase the internal efficiency of its training programs by increasing the passing rate in skills testing from 62% to 80% and report its progress to the Bank every six months during Project implementation.

Loan Agreement Schedule 6 (para 15)

Complied

38 Appendix 11

REQUIREMENTS FOR CONSULTANTS (person-months)

International Domestic Contracted Specialty Area Consultants Consultants Staff Plan Actual Plan Actual Plan Actual 1. Chief Technical Advisor 42 42.00 0 0.00 0 0.00

2. Program Planning and Development Specialist 9 7.03 24 24.00 48 48.00

3. Career Guidance Specialist 9 9.00 36 36.00 48 48.00

4. Specialist on Women in Development 6 6.00 24 24.00 48 48.00

5. Instructional Systems Designer 9 8.80 36 36.00 0 0.00

6. Computer-Based Training Specialist 12 9.80 48 48.00 48 48.00

7. Testing and Evaluation Specialist 9 6.96 36 36.00 60 60.00

8. Automotive Training Specialist 6 3.93 48 48.00 60 60.00

9. Construction and Carpentry Specialist 6 6.00 48 48.00 60 60.00

10. Welding Specialist 6 6.00 48 48.00 48 48.00

11. Machining Specialist 6 6.00 48 48.00 60 60.00

12. Textile Designer 6 6.00 48 48.00 60 60.00

13. Electrical Training Specialist 6 6.00 48 48.00 60 60.00

14. Electronics Training Specialist 6 6.00 48 48.00 60 60.00

15. Technical Literacy Training Specialist 9 9.00 60 60.00 120 120.00

16. Skill-Demand Analyst 0 0.00 60 60.00 120 120.00

17. Management Training Specialist 9 6.82 60 60.00 72 72.00

18. Instructor Training Specialist 12 10.71 36 36.00 48 48.00

19. Financial Analyst 6 6.00 12 12.00 0 0.00

20. Public Information and Marketing Specialist 6 6.00 24 24.00 0 0.00

21. Industrial Partnership Development Specialist 0 0.00 24 24.00 0 0.00

22. Benefit Monitoring and Evaluation Specialist 6 6.00 12 12.00 24 24.00

23. Procurement Specialist 0 11.95 0 0.00 0 0.00

Total 186 186.00 828 828.00 1,044 1,044.00

Appendix 12 39

PROCUREMENT UNDER THE LOAN

($ million)

Item

Procurement Mode

Number of Contracts

Amount Financed by ADB

A. Equipment 1. Training Equipment ICB 42 52.24 IS 33 8.17 DP 19 1.13 LCB 0 0.00 2. Vehicles DP 1 0.03 Subtotal 95 61.58 B. Training Materials Development 1. Training Package Development ICB 0 0.00 IS 0 0.00 DP 0 0.00 LCB 0 0.00 2. CD-ROM Title Development ICB 12 0.98 IS 7 0.22 DP 0 0.00 LCB 0 0.00 Subtotal 19 1.20 3. Technical Libraries ICB 0 0.00 IS 0 0.00 DP 0 0.00 LCB 0 0.00 Subtotal 19 1.20 Total (A+B) ICB 54 53.22 IS 40 8.42 DP 20 1.13 LCB 0 0.00 114 62.77 DP = direct purchase, ICB = international competitive bidding, IS = international shopping, and LCB = local competitive bidding.