Document of

The World Bank

Report No.13691-GH

STAFF APPRAISAL REPORT

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

MARCH 9, 1995

Population and Human Resources DivisionWest Central Africa DepartmentAfrica Region

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CURRENCY EOUIVALENTS(October 1994)

Currency Unit = CedisUS$1.00 = 1,000 Cedis

ACRONYMS AND ABBREVIATIONS

BECE Basic Education Certificate ExaminationCAS Country Assistance StrategyCFC ChloroflurocarbonCIBA Council of Indligenous Business AssociationsCIDA Canadian International Development AgencyDEO District Education OfficeEdSAC I Education Sector Adjustment Credit I (Cr. 1744-GH)EdSAC 11 Education Sector Adjustment Credit 11 (Cr. 2140-GH)GES Ghana Education ServiceGLSS Ghana Living Standards SurveyICB International Competitive BiddingIDA International Development AssociationILO International Labor OrganizationITTU/GRATIS Intermediate Technology Transfer Unit/Ghana Regional Appropriate Technology

Industrial ServiceiSS Junior Secondary SchoolKATTC Kumasi Advanced Technical Teachers' CollegeMDPI Management D)evelopment and Productivity InstituteMOE Ministry of EclucationMESW Ministry of Ernployment and Social WelfareNIC Newly Industrialized CountryNVTI National Vocational Training InstitutesNACVET National Council for Technical and Vocational Education and TrainingNGO Non-Governmental OrganizationPBME Planning, Budgeting, Monitoring, and Evaluation Unit of MOEPPF Project Preparation FacilityPMU Projects Management UnitODA Overseas Development AdministrationOIC Opportunities Industrialization CenterPNDC Provisional National Defence CouncilPY Project YearSDR Special Drawing RightsSSS Senior Secondary SchoolUSAID United States Agenicy for International Development

FISCAL YEAR SCHOOL YEAR

January 1 - December 31 September - June (Basic and Tertiary)January - December (Senior Secondary)

STRUCT'URE OF EDUCATION IN GHANA

Years 1-6 Primary7-9 Junior Secondary10-12 Senior Secondary13-16 University

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT'

Table of ContentsPage No.

CREDIT AND PROJECT SUMMARY..i-i

1. INTRODUCTION.1

11. THIE EDUCATION AND SKILL TRAINING SECTOR I

A. Overview I13. Previous Bank Operations in the Education Sector .. 4C. Future Bank Strategy in the Education Sector 51). Other Donor Support for Government's Education Reform Program . .5

Ill. VOCATIONAL SKILLS TRAINING AND INFORMAL APPRENTICESHIP PROGRAMS . . 6

A. Background ................................................. 6B. The Urban Informal Sector ...................................... . 7C. Iornnal Education and Skill Training ................................ . 9D. rhe Role of the Private Sector in Vocational Skill Training ....... .. .......... 11E. Shlort Training Programs to Support the Informal Sector. .......... ........... 11F. Key Issues ........................ .............. .......... 12G. Rationale for World Bank Involvement .............. .. ................ 13Ft. Country Assistance Strategy (CAS) .............. .................... 13

IV. TIE PROJECT ................................................. 14

A. Project Objectives ............................................. 143. Project Description ............................................ 15

C. ProJect Components ............................................ 161. Apprentice Training .162. Training of Masters .173. Financing the Training .184. Support to Apprentices and Masters .185. Training Program Development .196. Training of Instructors .197. Institutional Strengthening of NACVET .198. Tracer Studies .209. Labor Market Data Base .20

D. Project Costs and Financing ................. ..................... 21

fl ris report is based upon the findings of an appraisal mission which visited Ghana in July 1994. The mission members consistedof Messrs./Mmes. Nicholas Bennett (Mission Leader/Principal Planner, AF4GA), P. Stephens (Project Officer, AF4GA), J.Angers (Operations Analyst, AF4PH), S. Berkman (Technical Training Specialist, AFTHR), A. Komenan (Labor MarketSpecialist. AFTHR), and J. Cresswell (Technical Training Specialist-Consultant); and a post-appraisal mission composed ofMessrs. Nicholas Bennett (Mission Leader/Principal Planner, AF4GA), S. Berkman (Technical Training Specialist, AFTCB),and Tsri Apronti (Project Officer, AF4GA). Messrs. Ian Morris (SA3PH), John Middleton (SA2PH), and Joseph Bredie(AFTHR), are the Peer Reviewers for the project. The report was written by Mr. Bennett, with contributions submitted by therifissiloi memilbers and processed by Mss. Sheila Eghan and Rebekah Kirubaidoss. Messrs. Ian Porter and Olivier Lafourcadeare the managing Division Chief and Department Director, respectively, for the operation.

Table of Contents (Cont'd)

V. PROJECT IMPLEMENTATION ..................................... 22

A. Project Preparation ............................................ 22B. Project Managcment and Coordination ....... . . . . . . . . . . . . . . . . . . . . . . . . . 23C. Project Sustainability and Recurrent Cost Implications ..... . . . . . . . . . . . . . . . . . . 23D. Project Monitoring. Reporting, and Evaluation ...... . . . . . . . . . . . . . . . . . . . . . 23E. Mid-Term Review ......... . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . 24F. Environmental Aspects .................. ........................ . 25G. Procurement .......... ...................................... . 25H. Disbursement .......... . .. . .. . .. . .. .. . .. . .. . .. . .. .. . .. . .. . . . 271. Accounting, Auditing, and Reporting ....... . . . . . . . . . . . . . . . . . . . . . . . . . . 29

VI. PROJECT BENEFITS AND RISKS ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

A. Project Benefits ......... .. . .. . ... I. . .. . .. . .. . .. . .. . . .. . .. . .. . . 29B. Project Risks .......... .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . 29

VII. AGREEMENTS TO BE REACHED AND RECOMMENDATION 30

ANNEXES

1-1 Social Indicators

2-1 MOE 1994 Summary of Recurrent Expenditures by Programs and Objects, and 1994 Public Investment Program2-2 Structure of the Ministry of Education, Projects Management Unit, Ministry of Employment and Social Welfare,

and National Council for Technical and Vocational Education and Training2-3 Draft Letter of Informal Sector Training Development Policy

3-1 Employment Statistics from the Ghana Living Standard Survey (GLSS)3-2 Results of Minimum Wage Survey3-3 Statistics on Other Government Skill Training Institutes and on Private Technical Institutions3-4 Statistics on GES Technical Institutes3-5 Enrollment in 1994 in the National Vocational Training Institutes (NVTI)

4-1 Draft Contracts for Participating Institutions4-2 Eligibility Criteria for Institutions to be Supported4-3 Institutions Selected to Provide Training (GES and Private)4-4 Required Number of Training Hours per Trade4-5 Description of the Training Program (Course Content for Carpentry and Joinery as Sample)4-6 Implementation Plan - Targets of Numbers of Trainees by Trade4-7 Opportunity Costs of Training of Apprentices and Masters4-8 Proposed Equipment Kit Content for Apprentices and Masters, and Optional Items4-9 Detailed Project Cost Estimates

5-1 Project Performance Indicators5-2 Supervision Plan and Mid-Term Evaluation Criteria5-3 Procurement and Disbursement Schedules5-4 Implementation Schedule of the Physical Infrastructure Component

DOCUMENTS IN THE PROJECT FILE

MAP: IBRD 26746

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Republic of Ghana

Beneficiaries: Informal Sector Mastercraftsmen and Apprentices

Credit Amount: SDR 6.6 million (US$9.6 million equivalent)

Terms: Standard, with 40 years maturity

Proiect Description: The project aims to improve informal sector productivity in selected occupational areas,and to reorient the vocational skill training system away from a supply-driven to ademand-driven system. In particular, the project would focus on: (a) strengthening thecapacity of NACVET to respond to the short-term training needs of those employed inthe informal sector; (b) involving indigenous trade associations in designing competencybased training programmes, in selecting participants for training, and in choosing thetools to be included in equipment kits; (c) creating closer links between tradeassociations, public and private training institutions, and the Government; and (d)re-orienting the focus of private and public training institutions away from the provisionof long pre-employment training to the provision of short post-employmentcompetency-based training for those in the informal sector. To achieve this, the projectwould include the following basic components: (a) practical skill training of 20,400informal apprentices in five skill areas; (b) practical skill training and entrepreneurshiptraining of 4,500 informal sector master craftsmen and women in five skill areas; (c)ensuring that trainees have access to essential high-quality tools; (d) support to 40public and private training institutions; and (e) training program development,evaluation, and monitoring. The project is targeted at informal sector workers who areamong the poorest urban dwellers.

Proiect Benefitsand Risks: An awareness will be created of the inefficiencies of long, largely theoretical vocational

skill training for a modern sector employment that does not exist. Government willbegin to redirect a part of the resources it currently devotes to this long durationtraining to more effective, short, competency-based training for those already ininformal sector employment or apprenticeship programs. Both public and privatetraining providers will become more responsive to labor market realities. Trainingbeneficiaries, represented by the informal sector trade associations will play anincreasing role in determining training course content and trainee and equipmentselection as well as program monitoring. The quality of goods and services producedby the informal sector will improve and productivity and earnings will increase, whichwill in turn lead to an expansion in informal sector employment. The institutionalstructures for managing an effective vocational training system will be strengthened,and eventually only those institutions that offer meaningful training will be accredited.Finally, donors will redirect some of their support for vocational and skill trainingtowards short demand driven programmes.

The project has four main risks. First, the key implementation agency, NACVET,though created in 1990, has up to now played almost no role in the technical andmonitoring aspects of managing the vocational skill training system in Ghana. Second,public and private training providers are not yet fully committed to the provision ofpractical competency-based training for masters and apprentices who might have very

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low academic qualifications. Third, participants in the new short courses might notalways be drawn from apprentices or others who are already employed, but from theunemployed who are ready to grasp at any low-cost training that might lead to theireventual employment. Fourth, the unclear division of responsibility between theMinistry of Education and the Ministry of Employment and Social Welfare in the areaof vocational and skill training might lead to a dissipation of energies by these agencieson matters not directly relating to project implementation. The first risk has beenmitigated by a tranisfer of key management and professional staff to NACVET. Thesecond risk will take some time to be reduced, as only when the institutions haveexperience in providing new short, competency-based training will they be able to makea judgment as to how they might manage such training in the long run. The third riskwill be minimized by distributing "intake vouchers" to trade associations for onwarddistribution to their members. As far as the final risk is concerned Government is hiringan independent consultant to make recommendations to cabinet as to the delineation ofresponsibility in skill training between the two Ministries.

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ESTIMATED PROJECT COSTS BY COMPONENTS(INCLUDING TAXES AND DUTIES)

Local Foreign Total(US$ million)

1. Provision of TrainingA. Provision of Training for Apprentices 2.2 3.6 5.8B. Provision of Training for Mastercraftmen/

Women 1.0 1.5 2.5

2. Institutional FrameworkA. Technical Implementation (NACVET) 0.6 0.2 0.8B. Strengthening of the PBME 0.2 0.1 0.3C. Project Management and Coordination 0.5 0.1 0.6

3. Labor Force Database 0.5 0.1 0.6

Total Base Costs 5.0 5.6 10.6Physical Contingencies 0.4 0.6 1.0Price Contingencies 0.4 0.4 0.8

TOTAL PROJECT COSTS 5.8 6.6 12.4

(Totals may not add up due to rounding)

PROJECT FINANCING PLAN(US$ million)

Taxesand

Local Foreign Duties Total

IDA 3.4 6.2 - 9.6Government of Ghana 0.3 - 0.6 0.9Trainees 1.5 0.4 - 1.9

TOTAL PROJECT COSTS 5.2 6.6 0.6 12.4

ESTIMATED CREDIT DISBURSEMENTS (US$ MILLION)

IDA Fiscal Years FY96 FY97 FY98 FY99 FY00 FY01

Annual 2.4 1.8 2.0 1.3 1.2 0.9Cumulative 2.4 4.2 6.2 7.5 8.7 9.6

Economic Rate of Return: Not applicable

Map: IBRD 26746

I

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

1. INTRODUCTION

1. 1 The Government of Ghana, in its efforts to re-orient the vocational skill training systemin order to increase the productivity of those already in informal sector employment and apprenticeshipprograms, has requested IDA assistance of SDR 6.6 million (US$9.6 million equivalent) to finance aproject to support short, competency-based training and related activities.

II. THE EDUCATION AND SKILL TRAINING SECTOR

A. Overview

2.1 For there to be productivity gains, it is not only essential that labor is trained in modernskills but also that new entrants to the labor force have passed through a quality basic education. In thedecade preceding the 1987 educational reform the effectiveness of public basic education sank to such alow level that it is likely that the majority of children completing six years of primary education learnednothing. Most were leaving primary school illiterate. Only now, seven years into the reform, are thefirst signs of a resuscitation of primary education becoming apparent, and only now is Ghana beginningto reclaim its 1960s position of having one of the most effective educational systems in Sub-SaharanAfrica. The educational reforms have not only strengthened primary education, but extended basiceducation to include three years of Junior Secondary Education, where, in addition to normal academicsubjects, there are practical subjects in agriculture, technical drawing, and prevocational training, alldesigned to create a familiarity in the use of hand tools.

2.2 Despite a reform of the formal education system--involving a shortening of pre-universityeducation from 17 to 12 years; a lengthening of the school day and year; the implementation of a new,more relevant curriculum; and an increasing level of cost sharing--the formal skill training system inspecialized vocational and technical training institutes has remained virtually unchanged for 20 or moreyears. Almost all of the 155 public institutions and the 250 private and NGO institutions offer three,four, or even five-year courses to transmit the most rudimentary basic vocational skills, with hardly anyattempts being made to find out whether or not the graduates of these programs are finding appropriateemployment.

2.3 Since the introduction of the Economic Recovery Program in 1983, the people andGovernment of Ghana have been engaged in a far-reaching program of economic recovery and structuraladjustment. The Ghanaian program has always placed great emphasis on the social sectors, and hassucceeded in reversing the precipitous fall in the provision of education and health services that precededits introduction. As the adjustment program has deepened, Government has placed increasing emphasison poverty alleviation, launching the Program of Actions to Mitigate the Social Costs of Adjustment in1988, and by choosing the theme "Accelerated Growth and Poverty Reduction" for its medium termdevelopment strategy. There is thus an awareness that only through increases in labor productivity willformal and informal sector employment increase and poverty be alleviated.

2.4 The Bank carried out its first sector study and analysis of the Ghanaian educational systemin 1985, and the need for urgent reform and rehabilitation of the entire system became apparent. At thattime, in the majority of primary and secondary schools there were no textbooks, no chalk, no equipment,and no materials. Teachers were conspicuous by their absence. The majority of primary school teacherswere untrained and many had been employed through under-handed methods. Most schools were over-staffed not only with unqualified teachers, but also with huge numbers of non-teaching personnel. Insome secondary schools the number of staff outnumbered the students, while all the universities hadconsiderably more staff than students. At the same time as this general education sector study was carriedout, the Bank commissioned International Labour Organization (ILO) to carry out a sub-sector study ofVocational and Technical Education which drew attention to the poorly qualified staff; the broken downor inappropriate equipment; and the lack of any agency responsible for curriculum development andquality control. In 1989, the Bank completed a further sub-sector study on "Basic Education for SelfEmployment and Rural Development" (Report No. 7593-GH) which, among other things, emphasizedthe importance of providing short courses from existing Technical and Vocational Training Institutes tomaster craftsmen and their apprentices to help increase the earnings and productivity of informal sectorworkers.

2.5 The education reform had four main objectives corresponding to some of the key problemsof the system namely:

(a) To reduce the previous inordinate length of pre-university education. This was taking upto 17 years, against an international norm of 12 years, and consisted of short school daysand years. As a result of this reform, there is an increase in access to secondaryeducation as well as a release of public resources to be used for basic education.

(b) To improve pedagogic efficiency and raise the quality and relevance of educationaloutcomes. The old curriculum emphasized rote recall; textbooks and other instructionalmaterials were scarce; buildings were poorly maintained; the proportion of untrainedteachers was high; and school leavers received an academic training which prepared themonly for a modern sector clerical wage employment, which did not exist;

(c) To contain and partially recover costs. Over-staffing was significant, especially of non-teaching staff and untrained teachers; feeding and lodging costs of secondary and tertiarystudents accounted for a significant proportion of Government expenditures; cost recoveryfor textbooks was derisory; and funds were often misappropriated; and

(d) To enhance sector management and budgeting procedures. Physical and financial normsdid not exist or were not enforced; planning and budgeting were separated; budgetuncertainties hindered planning; management decisions responded only to crises; andmonitoring was insufficient, especially at the school level.

2.6 Under the Educational Reform the structure of the educational system has been changedto six years of primary, three years of junior secondary (JSS), three years of senior secondary (SSS), andfour years of tertiary education. The implementation of the reform program was divided into phases; JSSfrom 1987 to 1990; SSS from 1991 to 1993; while the tertiary reform program was started in 1994, andcovers the next four years. Reform and improvements at the primary level have taken place continuouslysince 1987, and have intensified since 1994.

2.7 Enrollment increases have been substantial at all levels of education after a long periodof stagnation. The gross primary enrollment ratio reached a peak of 82 percent in 1990/91, with the

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more rapid increases taking place among girls (44 percent of total enrollment) and in previously under-served areas. Grade 1 intake fell by 4 percent in 1991/92, and 1 percent in 1992/93 leading to a fall inthe enrollment ratio to 80 percent in 1992/93. JSS enrollments are 51 percent of the 12-14 age-group,while around one-third of JSS students have been progressing to SSS. Tertiary enrollments are increasingsignificantly, but still only a little under 1 percent of the 20-24 age-group is enrolled at that level. Sincethe beginning of the reform in 1987, full-time enrollments in MOE Technical and Vocational Institutionshave increased by 5.0 percent per annum, and part-time enrollment by 4.2 percent per annum.

2.8 The curriculum has been reformed at both primary and secondary levels to be lesstheoretical and more relevant to Ghanaian development problems and prospects. Ghanaian languages andagriculture have been made compulsory. SSS offer both a common core and some of five areas of focusfor elective program options. Most SSS offer general arts and science and vocational options, half ofthem agriculture, and one-third technical options. The elective program options being offered aim atpreparing children for both a wide range of occupations and post-secondary education and training. Newtextbooks have been written for all school levels. Equipment has been provided for prevocational andscience teaching in JSS and SSS. A major effort in both pre-service and in-service teacher training, alongwith new curricula, has reduced the proportion of untrained teachers to below 30 percent at primary, 20percent at JSS, and only 10 percent at SSS.

2.9 Costs have been contained in several ways. The proportion of boarding students insecondary school is being reduced through concentrating all new expansion on day schools. Staffing ofGES was regulated by a freeze on hiring between 1987 and 1992. This has resulted in significantincreases in pupil: teacher ratios. About 13,000 non-teaching staff were laid off at the secondary andtertiary levels. Many temporary untrained teachers with low academic qualifications were also laid off.Costs have been partially recovered in a number of areas. Food subsidies have been eliminated at bothsecondary and tertiary levels. School supplies are now sold at cost. There is partial cost recovery fortextbooks in basic education, and full cost recovery at SSS. At the tertiary level, an innovative studentloan scheme was introduced in 1988 which, though highly subsidized as in other countries, provides foran element of cost recovery. In public Technical and Vocational Institutes up to now, few consciousefforts have been made either to recover or contain costs in the full-time regular program, though theexpansion of enrollments in the face of constrained budgets have led to a reduction in unit costs. Inaddition, significant fees are now charged for part-time afternoon and evening classes. In privatevocational schools students have to pay fees of C20 - C30,000 per term (US$20 - US$30).

2.10 The Government has dramatically increased its budgetary allocation to the educationsector, from 1.4 percent of GDP in 1983 to 3.8 percent of GDP in 1993 (Annex 2-1). Education's shareof the national recurrent budget (excluding debt servicing) has risen from 27 percent in 1984 to 40.7percent in 1994. However, only 1.3 percent of MOE budgets in 1993 went to Technical and VocationalInstitutes. Of the amount devoted to directly running these institutes, 72 percent is for staff salaries andonly 11.4 percent for supplies and stores. This is a better proportion than found in other types of schoolsand colleges run by the Ministry of Education. Whereas in 1990, 22 percent of the education budget wasdevoted to non-salary items, this had fallen to less than 12 percent in 1994, the lowest level since 19864(Annex 2-1). The increasing predominance of salaries in the education budget is one of the key issuesof sustainability that has to be resolved in the near future if the education system is to avoid entering afurther period of decline.

2.11 Despite the impressive progress being made in formal education, two-thirds of thepopulation remain functionally illiterate. Even of those who have completed primary school, more than40 percent are illiterate largely due to the poor quality of instruction in primary schools. The

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Government therefore launched a mass literacy program in 1991 to significantly reduce illiteracy by theyear 2000.

B. Previous Bank Operations in the Education Sector

2.12 Though the Bank started supporting Ghana's development activities in 1962, it was notuntil 1986 that the first credit was provided to the educational sector. This came after 50 loans or creditshad been granted to Ghana in most other sectors for a total of more than US$1.0 billion. Since thenseven credits in the educational sector have been approved for a total of over US$230.0 million.

2.13 The first credit for an emergency Health and Education Rehabilitation Project withUS$5 million allocated to education (Cr. 1653-GH, closed on December 31, 1991) was approved earlyin 1986, and was designed merely to get text and library books, writing materials, and other essentialsupplies into the school system as quickly as possible. The Project Completion Report (Report No.1 1080-GH) concludes that the project met its objective in getting the necessary materials into the schoolsystem in a short time. The project was followed by a series of programs and projects to support theGovernment's 1987 education reform program. In 1987, the First Educational Sector Adjustment Credit(Cr. 1744-GH, closed on December 31, 1991) for US$34.5 million was approved. This was a broad,policy-based Sector Adjustment Credit, covering the whole of the educational system, but with theresources generated from the credit being concentrated on the JSS level (grades 7-9). The ProjectCompletion Report (Report No. 12622-GHI) concludes that the impact of the project was positive and laida strong foundation for further reforms in the education system. It also emphasizes the importance ofproject implementation activities falling under the direct and day-to-day leadership of a high level politicalappointee. In 1990 the Second Education Sector Adjustment Credit (EdSAC II) (Cr. 2140-GH) forUS$50.0 million was approved, based on the model of Cr. 1744-GH described above, but with the policyframework dealing only with school education, and resources generated from the credit beingconcentrated on the SSS and primary levels. All three tranches of this credit have been released, and theprogram closed on December 31, 1994. In 1992, EdSAC II funds were used to finance a small pilot forthis project in 16 public and private vocational institutes and two subject clusters.

2.14 In 1991, the Community Secondary School Construction Project (Cr. 2278-GH) forUS$14.7 million was approved. This involved supporting 150 rural communities in the construction offacilities needed for new Senior Secondary Schools. By early 1995, over half the schools have been fullycompleted, and over 90 percent of the credit has been disbursed. According to the Ghana LivingStandards Survey, in 1987/88, only 32.5 percent of the population aged 8 and above were functionallyliterate, even though 55 percent had been or were in school. Thus in 1992, the Literacy and FunctionalSkills Project (Cr. 2349-GH) was approved for approximately US$17.4 million, designed to support theGovernment's mass literacy program in fifteen of the most widely used languages. Already a secondgroup of 165,00)0 participants is studying in its own language in 9,000 classes. Beneficiary evaluationshows that a high proportion of learners are becoming functionally literate. In 1993, the TertiaryEducation Project (Cr. 2428-GH) for US$45 million was approved, designed to help extend the reformprocess into the universities and other tertiary institutions and rehabilitate their facilities. Also in 1993,the Primary School Development Project (Cr. 2508-GH) for US$65.1 million was approved. This wasdesigned to increase the involvement of the local communities in the management of the school, theconstruction of almost 11,000 classrooms with community involvement, giving the headteacher primeresponsibility for school supervision, and the construction of 2,000 headteachers' houses.

C. Future Bank Strategv in the Education Sector

2.15 The Government announced during the 1991 Consultative Group meeting its resolve toattempt to increase the GDP growth rate from its current levels of 4-5 percent per annum to at least 7-8percent by the year 2000. To support this strategy, the Bank carried out jointly with the Government andpublished (February 1993) a study "Ghana 2000 and Beyond--Setting the Stagefor Accelerated Growthand Poverty Reduction". As outlined in the CAS (see para. 3.39), all future Bank lending to Ghana isbeing evaluated against this strategy. In the education sector, the highest priority is given to theexpansion of enrollments at the basic education level, as "the Asian NICs (New Industrializing Country),as well as Thailand and Malaysia, had all achieved universal primary education by the time they begantheir industrialization. Today Ghana has lower primary enrollment and literacy rates than the NICs hadwhen their economic growth began to accelerate." The accelerated growth strategy also emphasizesimprovement in educational quality. "Besides expanding enrollments, improvements in quality remaina major goal. If Ghana is to achieve some of the dynamic growth of the East Asian NICs, the qualityof instruction and completion rates must rise." In addition, the report emphasized the importance of"short skill specific training courses and in-service training programs which provide a quick route forraising the skills of the labor force. With these programs, mobilization and effective use of private sectoreducation training resources for technological capacity building is essential." This is the aim of thisproject.

2.16 It is proving considerably more difficult to improve the quality of basic education thanwas originally anticipated at the start of the educational reform in 1987. Despite the fact that there hasbeen a very significant improvement in the qualification of the teaching force, and all teachers havebenefitted from in-service training; that all students now have access to textbooks; that all teachers haverudimentary teaching aids; and that external supervision has been strengthened and supervision made moremobile, the quality of public basic education remains very poor. Despite some progress over recentyears, there are also very wide differences in both access to schooling and educational achievements indifferent parts of the country. Children in the districts with the lowest enrollment rates (in the Northernregion) have about one-quarter the chance of going to school as children in the better endowed districts.Results from the examinations at the end of JSS, show that in one region many children from urbanschools had the highest possible marks-while in the rural areas of the same region the scores weresignificantly lower. The Government of Ghana is thus faced with a huge challenge in uncharted waters -how to resuscitate an educational system that had largely died during an earlier period of severe economicdecline. Teachers got out of the habit of teaching, or even turning up at school at all, and the school wasclosed more often than it was open. Key donors, including the Bank, are currently assisting theGovernment in developing a comprehensive basic education development program. This program, whichis likely to be supported by the Bank through a Basic Education Sector Investment Credit, is designedto assist in tackling a number of outstanding issues in basic education, especially those dealing withschool-based management; planning, evaluation and monitoring systems; supervision; curriculumsimplification and development; teacher education, training and placement; and the regional inequalitiesin access to schooling and educational achievements. The Basic Education Sector Investment Credit islikely to be followed by second phases of the ongoing Functional Literacy and the Tertiary EducationProjects.

D. Other Donor Support for Government's Education Reform Program

2.17 Since the start of the Education Reform Program there has been a revival of donor interestin the educational system in Ghana, with the focus being on primary education, tertiary education, andvocational and technical training. The most significant donors apart from IDA have been United StatesAgency for International Development (USAID), which has allocated US$35.0 million to primary

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education; African Development Bank with US$20.0 million for tertiary education; Canadian InternationalDevelopment Agency (CIDA) with US$14.0 million for basic and technical education; British ODA withUS$8.0 million for literacy and teacher education for basic education; Norway with over US$8.0 millionfor literacy and school pavilions for basic education; and the Organization of Petroleum ExportingCountries Fund with US$4.4 million for school pavilions and school sanitation. Other donors includethe World Food Program for school feeding, United Nations Children's Fund for primary and pre-schooleducation; Switzerland for secondary school equipment; and the Saudi Fund for secondary schooldevelopment.

2.18 In the area of Technical and Vocational training there have been a number of donors whohave been supporting a few institutions for many years leading to concern over the long-termsustainability of these institutions. CIDA is currently supporting two technical institutions, one low-levelpolytechnic and five Intermediate Technology Transfer Unit/Ghana Regional Appropriate TechnologyIndustrial Service (ITTU/GRATIS) centers; Kreditanstalt fur Wiedreaufban (Germany) is supporting oneTechnical Institute; German Agency for Technical Cooperation and German Agro Action are financingvirtually all recurrent and capital costs at 8 National Vocational Training Institutes (NVTI); Japan isproviding equipment to a further 6 NVTIs; and the European Union is supporting 8 ITTU/GRATIScenters; and various christian organizations are supporting a number of private vocational traininginstitutes. Finally United Nations Development Programme/ILO is providing curriculum developmentassistance to NACVET; and assistance in developing policies for informal sector employment.

2.19 In order to sensitize other donors to the benefit of delivering the competency-based,short-term training for informal sector financed under this project, and to eventually agree on a commonapproach for the informal sector, it is essential that dialogue between the Government, the Bank and theother donors be strengthened. Part of this dialogue is already taking place at the monthly education donorcoordination meetings held in Accra. The progress and results of the program once they can bedemonstrated will be presented to the donors interested in this area and requests for funds to support theexpansion of the program will be made. In addition, a Government/Donor conference to establish newcriteria for assistance in the sub-sector would be held near the mid-term review of the project.Furthermore, the Government has developed and signed a Letter of Informal Sector TrainingDevelopment Policy (Annex 2-3) which lays out the principles of Government's overall strategy forvocational and technical education with special emphasis to the development of the informal sector. Thispolicy provides a clear signal to donors of the Government's change in policy towards skill training.

III. VOCATIONAL SKILLS TRAINING AND INFORMAL APPRENTICESHIP PROGRAMS

A. Background

3.1 Food processing and other agro-based industries are the most important small-scale andinformal industrial activities, followed by tailoring, bakeries, wood-related industries, shoe making andrepair, construction-related trades, motor repair and body works, and electrical fitting and repairs.

3.2 According to the 1991/92 Ghana Living Standards Survey (GLSS), 28.2 percent ofinformal sector workers are in the Greater Accra Region, 14.6 percent in Ashanti Region 11 percent ineach of Western, Central, and Eastern Regions; 7.5 percent each in and Volta, Brong Ahafo, andNorthern Regions; and negligible numbers in the upper regions (Annex 3-1).

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3.3 Manufacturing enterprises are concentrated in the Greater Accra Region and to a lesserextent in Takoradi and Kumasi. Greater Accra accounts for over 50 percent of manufacturingemployment and about 60 percent of value added; the Western Region about 14 percent and 20 percent;Ashanti Region about 15 percent and 10 percent; and Eastern Region, about 10 percent and 3 percentrespectively.

3.4 The 1987 industrial census showed that state-owned firms or those with governmentparticipation still dominate the medium and large-scale manufacturing sector, i.e. 28 percent by number,63 percent in terms of gross output and 53 percent in terms of employment. Although privately ownedGhanaian companies represent some 41 percent of the total number of firms, their share of output, value-added and employment is relatively small. Private joint Ghanaian-foreign enterprises, are considerablylarger than wholly owned Ghanaian ones. Output, value added, and employment are roughly inproportion to their 33 percent share of all firms. This census identified 6,213 small-scale establishmentsemploying 1 to 5 people compared with 665 enterprises employing more than 30 people. Earlier, morecomprehensive surveys suggested that there were 28,230 urban small-scale and informal enterprises, and98,000 small scale rural enterprises.

3.5 Formal training for productive employment takes place in government and private (forprofit) institutions. Informal apprenticeship plays a far more important role in skills training forproductive employment. According to most estimates, master craftsmen provide at least 90 percent ofall skill training in Ghana. According to the 1991/92 GLSS, 25.7 percent of all employed workers(skilled or unskilled) had participated in some apprenticeship training program. Given the growingimportance of training in the informal sector and its contribution to the economy of Ghana, it is strangethat this type of skills development has never received support from existing formal skill trainingestablishments.

B. The Urban Informal Sector

3.6 Little comprehensive and reliable data are available on the informal sector. However,the GLSS has shown that in 1991/92 about 32 percent of urban employment was in the infortnal sectorwhile according to the Job and Skill Program for Africa (JASPA) in 1989, 38.3 percent of the urbanlabor force, or 911,000 people were employed in the urban informal sector, excluding those involved inthe informal sector on a part time basis. The same report estimated that urban informal sectoremployment was growing at about 5.6 percent per annum, while employment growth in the formal sectorwas less than 1.0 percent per annum. The JASPA report also estimated that the urban informal sectorin Ghana was contributing about 22 percent of GDP. Trade and commerce make the largest contributionof total informal sector earnings (52 percent), industry (28 percent), services (12 percent) and transport(8 percent). Despite the crucial role that the urban informal sector plays in employment, employmentcreation, and GDP, virtually no training schemes exist that are tailor-made to upgrade the skills of thoseworking in the informal sector. For example, only 6 percent of the skilled and semi-skilled informalsector workers had ever attended a Vocational or Technical Training Institute.

3.7 Another indication of the increasing importance of the informal sector is the fact that themajority of informal sector enterprises have been recently established. For example, in 1990/91, aspecial survey in Accra showed that 41 percent of all informal sector enterprises were less than five yearsold.

3.8 Of the informal sector workers, 14 percent are unpaid family members, 58 percent arepaid employees, and 26 percent are unpaid apprentices. All available evidence suggests that paidemployment as opposed to apprenticeship is becoming increasingly important in the informal sector. For

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example, in 1979, 66 percent of informal sector employees were apprentices, in 1985 this had fallen to39 percent, and had again fallen to 26 percent in 1990. Young people are now less willing to becomeunpaid apprentices in informal sector workshops than they were in the past. A special survey of earningsin micro enterprises commissioned as a part of project preparation showed that 30 percent of theseenterprises were paying their workers less than the minimum wage of C790.00 (US$0.75) per day withonly 35 percent of enterprises in Accra paying this level (Annex 3-2).

3.9 Most informal sector workers have learned their skills from informal apprenticeshipprograms (55 percent), with very significant proportions being self-taught (35 percent). Currently, 19percent of informal sector entrepreneurs in Accra have less than a full primary education, and 36 percenthave completed grade 10. Surprisingly 10 percent had completed 1-5 years of tertiary education. Forty-eight percent of informal sector entrepreneurs have gained their skills through informal channels.

3.10 The informal apprenticeship system operates in roughly the same way as do similarsystems in other parts of the world. The apprentice makes a one-time payment to a master craftsman foran agreed length of training. Depending on the skill required, and the reputation of the master craftsmana fee of US$50 to US$200, bottles of alcohol, and sometimes a goat is charged for training for anapprenticeship of between two and a half and five years. In some cases the apprentices also have toprovide their own tools, eg. sewing machines for dressmaking. The apprentice, who is usually unpaid,is taught a few simple tasks at a time, and repeats these over and over again in the master's workshop.Often the apprentice will even sleep on the floor of the workshop. In male-dominated trades the masteroften provides C200 - C500 per day for food. The master is in no hurry to teach all the skills neededto his apprentice as he might then loose a useful unpaid worker. The apprentice receives noentrepreneurship training and, normally, the technical training given lags behind any changes intechnology, and thus provides incomplete skills for the apprentice.

3.11 Currently, the majority of informal sector employees and enterprises do not pay taxes orsocial security contributions. This was one of the main reasons why the establishment of the Council ofIndigenous Business Associations (CIBA) has been supported by the Government. Eventually it is hopedthat each trade association will be responsible for collecting taxes from its members. The centralorganization, CIBA now represents 2.4 million informal sector employees in 35 indigenous associations,including those from the Ghana National Association of Garages (which was supported under TransportRehabilitation Project I and II), the National Association of Refrigeration Mechanics, the Ghana NationalTailors and Dressmakers Associations and others directly related to the trades covered in this project.The Trade Associations have now expanded their activities considerably beyond tax collection. Forexample the Refrigeration Mechanics have already run training in the technology for replacingchloroflurocarbon (CFC) with ozone-friendly alternatives, and the Garagists have been involved inselecting items to be included in tool kits for newly trained apprentices.

3.12 Master craftsmen and informal sector operators welcome the establishment of CIBA andproposals to provide training for them and their apprentices; however, they insist that this is not enough.They feel that they are often harassed by government officials and ejected from lucrative sites as a partof urban beautification programs; they face continuous difficulties in finding suitable places from whichthey can operate; they often lack a familiarity with simple and basic tools such as electric drills; and theyfind it almost impossible to obtain credit. The Government is responding to these concerns. Forexample, the National Advisory Committee on Labor, with the assistance of ILO, is developing policiesto support and encourage the informal sector. Government is establishing light industrial areas wheresome informal sector operators can locate. Finally, Government has established the National Board forSmall-Scale Industries which has started making small loans to informal sector operators under theframework of the Program of Action to Mitigate the Social Costs of Adjustment.

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C. Formal Vocational and Skill Training

3.13 There are 156 government vocational training institutions run by nine different agenciesthroughout the country; as can be seen in Annex 3-3, there is also a fluctuating number of privateinstitutions currently estimated at a minimum of 250. The majority of people who are presently beingtrained in vocational skills are enrolled in the twenty Technical Institutes under the Ministry of Education,with a significant but smaller number in the nineteen (NVTI) in the Ministry of Employment and SocialWelfare. In 1991/92, the Technical Institutes enrolled 12,000 full-time and 5,800 part-time students (seeAnnex 3-4 for details of current enrollments by institution and year), while in 1994 the NVTls enrolled3,800 students (see Annex 3-5 for details of enrollments by institute).

3.14 Both the Technical Institutes and the NVTls run long duration training courses lastingbetween 3 and 5 years. The three-year program involves continuous training towards a certificate, thefour-year program is used in the rare cases where a one-year block release in industry is possible, andthe five-year sandwich program (NVTI only) in the even rarer cases where there is a modern sectorformal apprenticeship program. All courses are much too long, with far too much attention paid totheory, and not nearly enough to appropriate practice. Many participants in the training actually leaveafter two years, as they do not feel that the additional time will give them additional marketable skills.The quality of instruction is variable ranging from good to very poor, depending largely on the extentto which external aid agencies or religious institutions have been involved.

3.15 Many of the centers operated by NGOs are offering useful and innovative training. Forexample, the Opportunities Industrialization Center (OIC) runs vocational training courses in three centersfor youth between sixteen and twenty years old. Training is offered in blockmaking, carpentry,electricity, plumbing, secretarial skills, catering, textiles, ceramics, and graphic arts. The duration oftraining is from 12 to 15 months. OIC places emphasis on job counselling and placement as well as onregular micro labor market surveys in order to adjust training courses according to the labor marketneeds, especially in the informal sector. Due to this flexibility, OIC has been successful in job placementof trainees. As no fee is charged, the OIC programs are very popular, especially since assistance is alsoprovided in obtaining suitable employment for the graduates of the program. OIC in Accraaccommodates 300 trainees. The other two centers in Kumasi and Takoradi have about 120 trainees each.OIC shows that effective pre-employment training can be completed in 15 months. It also shows howimportant it is to continuously adapt the training offered to meet current labor force skill requirements.

3.16 The National Youth Organization Commission operates four centers in Greater Accra,Ashanti, Volta, and Eastern Regions. The main objective of their courses is to train JSS school leaversand drop-outs for productive employment in the informal sector. In addition to skills training, thecurricula also include basic business administration, accounting, and leadership training. The courses areof two years duration and their effectiveness is variable.

3.17 The Department of Social Welfare has 10 training centers offering training forapproximately 2,000 boys in carpentry, blockmaking, welding, tailoring, crafts, and agriculture. Thereare also four training centers for girls with a total intake of 300 trainees. The centers are largelyunderstaffed and unequipped.

3.18 The Department of Community Development offers training for women in 15 institutionswith a total capacity of about 1,000 trainees. The courses offered are in catering, dressmaking,hairdressing, child care, primary health care, and home science and are of two years duration. Thereare also four training centers for rural industries for male JSS leavers and drop-outs, offering a two-year

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course in farming combined with one non-farming skill. Again, these centers are understaffed,unequipped and ineffective.

3.19 The Ghana Regional Appropriate Technology Industrial Service (GRATIS) has started atraining program to assist the JSS leavers with some apprenticeship experience to be engaged in selfemployment. Presently it has two training centers, each for 20 students, in Tema and Tamale with a planto establish one center per region in the near future. The training course of one-year duration ends byassisting graduates in securing bank loans and purchasing equipment to set up their own businiess. TheGRATIS centers also provide some training for master craftsmen in the informal sector. The training.though on a very small scale, is effective.

3.20 The majority of the private training institutions concentrate training on secretarial andaccounting skills. Those that deal with other artisanal skills often have no workshop of their own andcarry out the required practical work in neighboring informal sector workshops. Such institutions oftencharge high (by Ghanaian standards) fees on the order of US$20-US$30 per term. In theory, any privatevocational institution must be approved by the GES, and sometimes also by NVTI before they can beestablished. Some institutions are of such low quality that is difficult to see how they received approval.A few do manage to provide effective training, especially in the area of catering and dressmaking.Similar to the public sector institutes almost all courses in private institutions are of long duration, namely3 or 4 years. There is an Association of Proprietors of Private Vocational Training Institutes whiicl isinvolved in improving the quality of private sector training.

3.21 There are two pre-service teacher training institutions for training technical and vocationalteachers - the Kumasi Advanced Technical Teachers' College (KATTC) and Technical Teachers' Collegeat Mampong. Because of the lack of previous industrial experience of trainees, the colleges operate bothlas Technical Training Centers and as a Teacher Training Centers. The KATTC is well equipped witlha large number of power tools which are rarely found in the technical training institutions or formal orinformal workshops. The college is in the process of being integrated as a University College undler theUniversity of Science and Technology in Kumasi.

3.22 The majority of instructors in public and private institutions are drawn directly ftrom]graduates of Technical Institutes and Polytechnics and have rarely had industrial experience or pedagogictraining. From time to time NVTI offers short, in-service training programs for both public and privateinstructors. There are many difficulties in obtaining participation of private school instructors, as theowners of the private institutions are often unwilling to provide the necessary night and transportallowances for their staff.

3.23 Currently there are two competing examination/certification systems in operation. Firstly,the GES Technical Institutes use localized City and Guilds examinations; while NVTI and niuclh of theprivate sector use specially developed NVTI trade tests. Few small-scale and informal sector employerspay any attention to the certificates a person has, but insist on seeing the competencies and skills he canshow. Ghana like many other countries will have to move away from formal examinations in the skilltraining area towards a process of continuous assessment of specific competencies gained in anid out oftraining institutions.

3.24 In 1990, the Government established the National Council for Technical an d VocationalEducation and Training (NACVET) which is jointly under the Ministry of Education and the Ministryof Employment and Social Welfare and whose structure is shown in Annex 2-2. Eventually it will beresponsible for school accreditation, curriculum development, testing, statistics, and industrial relations.It will also be responsible for monitoring and evaluation, policy analysis, and for assessing the quality

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of the training programs carried out by the institutions supported by the project as well as those financedby other donors. An Executive Director and his Deputy have been formally appointed and are in postand NACVET has recently been allocated adequate professional staff to carry out its project-relatedmandiate.

D. The Role of the Private Sector in Vocational Skill Training

3.25 Apart from the 250 private training institutions discussed in para. 3.13 and 3.20 above,there are a number of larger or well established employers which run their own training centers. Forexamiiple, both Mercedez Benz and Mechanical Lloyd (for BMW) run training schools for mechanics fortheir vehicles. Other large private companies have formal apprenticeship programs for their staff.

3.26 NVTI has, as a major part of its original mandate, the running of in-plant trainingprograms for private enterprises which are ready to pay the full costs of the training. Because in manyareas NVTI does not have suitably qualified and experienced staff, the demand for such training islimited. More significant are the informal linkages that exist between various Technical Institutes andthe largest private and parastatal organizations. For example, a significant proportion of the output ofSt. Joseph's Technical Institute, Kukurantumi, is absorbed by the Volta River Authority. However, thereis currently no contract training done for private companies by technical institutes.

E. Short Training Programs to Support the Informal Sector

3.27 In recent years, the Government has designed and run three different types of shorttraining programs to support the informal sector which have provided some guidance in the preparationof this project. The first of these involved training redeployees, using master craftsmen; the secondinvolved training master craftsmen and apprentices in the garage business; while the third was a pilot forthis project in which informal sector apprentices were trained in public and private training institutions.

3.28 Redeployment Training Program--Structural Adiustment Program. As a part of adownsizing exercise of the public service, about 50,000 persons have been redeployed since 1987. Ofthese, 16,000 indicated an interest in being retrained in vocational skills. Short training programs (from3 weeks to 6 months) were designed to be implemented in 43 existing government training institutionsbut were poorly patronized. An innovative approach was then developed using local master craftsmenwho were selected and contracted to train the redeployees, 50 percent of the contract fee was paid up-front, and the remaining 50 percent on completion of the training. A limited number of small equipmentkits were also provided to the redeployees at half the cost of their procurement. To date, no evidenceis available in terms of the number of trainees that were working productively in the field of their trainingon co[impletion of their training. However, the demand for the equipment kits was less than anticipatedas the tools wvere not of high quality.

3.29 Master Mechanics and Apprentices Training Program--Transport Rehabilitation Projects(TRP). A pilot program was carried out under IDA's First and Second Transport Rehabilitation Projectswhich provided short-term training for master mechanics (6 weeks) and apprentices (12 weeks) at theKumasi Technical Institute. A competency-based learning approach was used throughout the program.This method made it possible to teach both literates and illiterates in the same classroom. A key elementof the traininig program were the incentives provided through allowances given to the instructors, mastercraftsmiien, and even apprentices attending the program. The institute was also supplied with trainingequipmenit while small tool kits were given to the participants at the end of the training. The averageclass size was about 10 for master mechanics and 20 for apprentices. The subject areas covered underthe program included autobody works and repairs, auto mechanics and auto electrical repairs. This

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program was expanded to Accra Technical Training Center and Ho Polytechnic. An additional 2-weekcomponent covering a management and entrepreneurship for master craftsmen was run by theManagement, Development, and Productivity Institute (MDPI).

3.30 This program was important as it was the first training program in Ghana that wasdesigned and implemented with the full involvement of a trade association (the Ghanaian Association ofGarages); was entirely competency based., trained both master craftsmen and apprentices; and only trainedthose who were already in employment. The program was very popular, especially with the apprenticeswho were provided with an allowance of US$1 per day which was higher than their normal earnings, andat the end of their training were also provided with tool kits costing about US$75 at no cost. Apprenticesin other trade areas are well aware of the generosity of the TRP supported training and hope that theywill receive the same benefits. A survey of those who passed through the training showed that aboutone-fourth of apprentices trained had established their own business within a year of completing thetraining and that the masters wanted more frequent training and would be willing to attend without anyallowances or equipment kits if necessary. However, wanted only half-day training, so they would havetime to look after their workshops while they were in training.

3.31 Post-JSS Apprentices Training Pilot Program--EdSAC II. The third of these short trainingprograms was designed specifically to upgrade the skills of young apprentices, most of whom weregraduates of JSS and had spent at least 18 months either as apprentices or employees in informal sectorworkshops. Training took place between September 1992 and March 1993 in 16 private and publicinstitutions in two areas, namely, electrical wiring and appliance repair; and arts and crafts (carving,leather work, and weaving).

3.32 The program was organized and run by an ad hoc task force which was responsible forthe selection of the institutions, the training of trainers, and for developing the necessary instructionalmaterials. The heads of the institutions were in turn responsible for selecting the instructors andapprentices. These institutions were responsible for promoting the program using mass media, churchesand other local media. The trainees were then selected through a competency assessment and interviews.There was an average class size of 20. The instructors were paid daily allowances while heads andproprietors were given a lump sum payment at the end of the three-month term. The institutions werealso supplied with training materials and equipment. An evaluation at the end of the training showed thattrainers were satisfied with the training given. Again, there is no information on whether or notgraduates increased their productivity or established their own businesses.

F. Key Issues

3.33 The visits to dozens of public and private training institutions which took place duringpreparation and appraisal identified a number of key issues that will have to be addressed in any projectthat is designed to provide high-quality, competency-based training, namely, obsolete trainingfacilities/workshops, inadequate equipment and tools, lack of up-dated modules of employable skills, lackof a comprehensive system of national examinations, testing and certification; and inadequate trainingprograms for instructors. As far as staffing of the institutions is concerned, there is poor job definition,inadequate delegation of roles and responsibilities, inadequate supervision of staff, poor staff appraisalprocedures, and few staff development opportunities. Even the better staffed and equipped centers areusing curricula and methods more than 20 years out-of-date and are hardly helping graduates findproductive employment. The duration of training is universally too long, and the training too theoretical.

3.34 The traditional apprenticesDhip system also has deficiencies. In this period of technologicaladvancement, it still relies on very basic techniques of production and out-of-date technologies.

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Normally, only the crudest of tools are used. The apprentice tends to learn through repetition of a limitedof number or tasks, without seeing how any one task fits into a total system. Entrepreneurship,estimating, and marketing are not dealt with at all.

3.35 The findings of the appraisal mission are consistent with the Bank's Skills for Productionpaper namely "the high opportunity and direct costs of long formal programs, combined withcomparatively low earning in the informal sector are likely to lead to low (social) rates of return." Theemployment potential and the huge training need in micro-enterprises suggests that existing vocationaland educational training institutions should indeed be encouraged to provide short, appropriate, andproductivity-enhancing training to informal sector workers in a flexible way at convenient times.

3.36 Successful training for the informal sector is dependent on getting a number of vocationalinstitutions to move from a supply-driven to a demand-driven approach, getting institutions to respondto the needs of formal and informal sector employers, rather than merely turning out large numbers ofyouths with inappropriate formal qualifications. It is thus considered crucial for these institutions tobecome involved in training those already in employment, so that the reality of the Ghanaian employmentsituation can be brought into the classroom. This raises two further issues - how to attract those alreadyin employment to attend vocational training institutions; and how to persuade some of the moreestablished training institutions to take such people in, given the complications they will face in dealingwith trainees of differing background and needs.

G. Rationale for World Bank Involvement

3.37 Data from the 1991/92 GLSS and recent government macro-economic policies have shownthat the modern wage sector in Ghana cannot absorb more than a small fraction of those who enter thelabor market. This is attributable to the relatively small size of the wage economy, the downsizing ofthe public sector, the divestiture of state enterprises, the closing of inefficient industries, and increasedcapacity utilization of private enterprises, combined with the rapid growth in the number of newlyeducated entrants to the labor force.

3.38 According to recent labor market analysis, the total number of jobs in the activities towhich basic school leavers might aspire is only twice as high as the annual number of school leavers.A modern labor force attrition rate of 3 percent per year and 5 percent growth rate would provide only30,000 jobs per year. The analysis rightly concludes that even if all jobs were taken by JSS leavers, onlyabout 15 percent would find regular paid employment. It is thus only the agricultural sector, and therural and urban informal sector which has major potential for employment growth over the next fewyears. Despite this, very little attention is devoted to training for the informal sector. Only if themajority of Ghanaians can be productively employed can the Government's and the Bank's objectives ofpoverty reduction and accelerated growth have a chance of being achieved. This support to enhance theproductivity of the informal sector must be an integral part of the Government's longer-term developmentstrategy.

H. Country Assistance Strategy (CAS)

3.39 The project is specifically mentioned in the CAS that was discussed by the Board on April14, 1994. Specifically, it aims to reduce poverty (para. 40 of the CAS); support the provision of trainingservices through private sector institutions (para. 42 of CAS); increase the capacity of local institutionsto manage the economy (para. 43 of the CAS); and assist in technology diffusion (para. 31 of the CAS).

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3.40 A comparison of the 1987/88 and the 1991/92 GLSS shows that an increasing percentageof the population in Accra and other large cities are classified as poor. Informal sector apprentices areamong the urban poor and this project, by increasing the productivity and eventual earnings of theseinformal sector workers, will help reduce urban poverty. The project will support a total of about 40training institutions, of which 26 will be private. This is the first Bank education project in Ghana thatwill provide direct assistance to private sector education and training institutions. To date, there has beenan almost complete lack of labor force, employment, and earning statistics. The project will support boththe Ghana Statistical Service and the Labor Department of MESW in developing a capacity to providesuch data on a regular basis. It will also enhance the capacity of the MOE to carry out tracer studies tofind out what is happening to graduates of various programs run by the Ministry.

3.41 This project has taken a long time to develop in order to ensure that the quality at entry(para. 50 of CAS) is high. According to the CAS, projects should have shorter life spans - this projectis to be implemented over five and a half years. The CAS also emphasized that there should be greaterGovernment involvement in project preparation - the project was entirely developed by a Government taskforce. There should be involvement of implementing agencies in the project design stage - not only werethere four workshops involving beneficiaries, but also the leader of the Government task force has sincebeen appointed as the Project Manager for all vocational projects under the MOE.

3.42 Given the paucity of reliable data on the informal sector and its training needs, it is feltthat the first project in this area should be relatively small, dealing with a limited number of trades andinstitutions. The effectiveness of this approach and the degree of resistance from institutions as theymove away from time-based to competency-based training will be carefully monitored. In addition, laborforce data will be collected and used to identify skill areas that should be dealt with in any futureprograms.

IV. THE PROJECT

A. Project Obiectives

4.1 The project has three main objectives. First, to redirect the focus of both public andprivate vocational training institutions towards the provision of short, focused, practical,competency-based, demand-driven training for people already in employment. Second, to improveinformal sector product quality and productivity in five selected occupational areas. Third, to ensure thatan institutional capacity is created that will ensure that Government has access to regular labor force,employment, and earnings data that will enable it to make rational decisions as to the types of trainingthat should be supported.

4.2 To achieve the above objectives, a number of secondary objectives have been defined to(a) strengthen the linkages between trade associations, and public and private training institutions; (b)improve the content and relevance of training activities including entrepreneurial training; (c) ensure thatgraduating trainees have the necessary tools to productively apply what they have learned; and (d)establish a viable system for monitoring and analyzing the labor market on a continual basis. The successof these activities will be measured by (a) improved quality of products and services in the selectedoccupational areas; (b) a more efficient transition by workers from apprenticeship to master levels; (c)increased numbers of small business start-ups as more apprentices become fully qualified; and (d) anincreased concentration of training resources on short-term, clearly-focused programs for those alreadyemployment.

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B. Project Description

4.3 The project is comprised of the following basic components designed to achieve theobjectives noted above: (a) apprentice training; (b) mastercraftsman training; (c) support to public andprivate training institutions; (d) the provision of: workplace, tools, and equipment for trainees; (e)training program development; (f) the strengthening of NACVET, including for curriculum and materialsdevelopment, monitoring and evaluation; (g) the establishment of a dynamic labor market data basesystem; and (h) support for project management and coordination. As a result of surveys carried outduring project preparation, the occupational areas selected for inclusion in the project are the following:

(a) Electrical Installation based upon the anticipated expansion of employment in thisoccupational field as a result of the national electrification program;

(b) Refrigeration and Air Conditioning as an extension of electrical installation and theanticipated expansion of the electric power network, and also to meet the environmentalneeds to introduce non-CFC technologies;

(c) Carpentry and Joinery based upon the potential for expansion of these occupationsfollowing new export regulations designed to increase the value added of timber exports;

(d) Dressmaking and Tailoring to improve quality, productivity, and efficiency in theseoccupations, and to increase the earning power of women; and

(e) Blockmaking and Concreting to improve the quality and durability of housing and publicinfrastructure, and increase the efficiency of the construction industry.

4.4 Support in the above occupational areas will focus on (a) short duration courses forapprentices and master craftsmen and women; (b) assistance in obtaining tools and equipment to improvethe quality of their production when they return to the workplace; and (c) through an accreditationprocess, and tracer studies to enable the program to be continuously improved. As the project isprimarily designed to assist persons already employed, extensive participation of the relevant tradeassociations in (a) training program content; (b) tool and equipment specification; (c) trainee selection;and (d) program evaluation will be an essential aspect of project implementation. The trade associationshave reached different stages of development in different trade areas. The most highly developed are inthe fields of refrigeration and air conditioning, and dressmaking and tailoring, where there are nationalexecutives, and branches throughout the country. The least developed is in the area of blockmaking andconcreting where there are only highly localized small-scale associations. The other two trades aresomewhere in between. The differing state of development of the associations is one of the variables thatwill be looked at during program evaluation.

4.5 The delivery of training services to the target population will be carried out by at least14 Government and 26 privately-owned training institutions who are expected to conduct an average ofthree training cycles per year in each trade for approximately 5,000 apprentices and 1,000 masters. Overthe four years of full-scale project implementation, it is anticipated that roughly 25,000 persons will beupgraded in the various occupational areas.

4.6 These institutions have been selected after an extensive survey of a much larger number,including an analysis of the facilities, equipment, and staffing at each center and the geographicaldistribution of training places compared with the distribution of informal sector employees from the1991/92 GLSS; and from the membership of the trade associations. This can be seen in Table 1.

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Table 1. Regional Distribution of Training Places and Informal Sector Employment

GlAccra Ashanti Eastern Western Central Volta B/A Northern Upper/E Upper WcstRegion Region Region Region Region Region Region Region Region

TradeAssociationMembers 42.6 20.5 8.1 8.0 7.4 5.2 4.6 2.0 1.6 1.6

GLSSInformalSector 31.8 19.3 8.6 9.6 10.3 6.8 9.3 3.9 0.4 0.4Employees

Training 31.4 15.1 14.0 2.3 7.0 8.1 7.0 9.8 9.3 9.3Places

4.7 Support for the various training institutions will be given once a contract agreement hasbeen signed by the MOE and the institutions (Annex 4-1) and will encompass (a) rehabilitation of thephysical infrastructure; (b) the provision of tools and equipment; (c) staff training; (d) the developmentof course content; and (e) tuition fees. As part of the training program, apprentices and masters will beassisted in obtaining relevant tools and equipment at subsidized prices, which will be provided to thosewho successfully complete the training.

Training of Master Craftsmen and Women

4.8 Although there will be some imbalances in the provision of training places due togeographic and demographic considerations, attempts will be made to ensure some degree of equitythrough the use of "intake vouchers" (see para. 4.10 below). In addition, training institutions may beadded to the program if they meet the predetermined eligibility criteria (although this will be somewhatrestricted to those schools that require little or no rehabilitation works), while others may be dropped ifthey do not maintain acceptable instructional delivery standards (Annex 4-2).

C. Proiect Components

1. Apprentice Training

4.9 This component is the heart of the project and will provide short-term, competency-basedpractical courses to be conducted by selected government and private training institutions. A list of theinstitutions and the courses that they will offer is found in Annex 4-3. These courses will focus entirelyupon the development of occupational skills and will center around demonstrations by the instructors tobe followed with practical exercises carried out by the trainees. Depending upon the competencies to becovered, course duration will vary from 12 to 24 weeks, with trainees attending some form of block ortime release arrangements that have already been mutually agreed between representatives of the tradeassociations and the training institutions Annex 4-4. All instruction will be evaluated according to thetrainees' ability to perform clearly defined tasks Annex 4-5. Course duration will be based upon actualcourse content and not upon pre-determined or arbitrary time frames. As shown in Annex 4-6, 20,400apprentices and 4,500 masters will be trained.

4.10 Only apprentices or those working under masters who are members of the tradeassociations will be eligible for admittance into these short training programs. At the beginning of eachyear, NACVET will distribute a number of "intake vouchers" to local or national executives of the tradeassociations, the number of these vouchers being dependent on the number of available training places

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in that subject area. The association will distribute these to their member mastercraftsmen, who will thendistribute to deserving apprentices or workers. The voucher will include the name and address of themaster, and the name of the selected apprentice. The apprentice will then be responsible for finding hisown training center in a public or private institution near his place of work. The institution will only beallowed to accept trainees who have the intake vouchers, as fees from Government will be paid againstvalidated intake vouchers. The institutions with the better reputation will also be able to administer a skilltest to potential candidates, and select these with the highest skill levels.

4.11 Public Training Institutions. Fourteen public training institutions have been selected andare willing to carry out this short competency-based training. Ten of these are Technical Institutes beingrun by GES, and four by NVTI, providing in total 53 percent of training places under this project. Twoof the institutes will be providing training in all five areas, and a further six in four areas (Annex 4-3).In each area there will be three courses per year. Funds for building rehabilitation and maintenance notexceeding CIO million (US$10,000 equivalent) will be provided for each subject area in each school, andin addition equipment and tools not exceeding US$12,000 will be provided for each subject. Twoinstructors per subject area will be retrained, and fees of between C30,000 and C60,000 (US$30 andUS$60) per apprentice per course will be charged. C 10,000 (US$10) of those fees will be paid up-frontby the apprentice and used to defray the initial investment in works and equipment.

4.12 Private and NGO Training Institutions. Eleven NGO and fifteen private for-profitinstitutions have been selected and are willing to run short, competency-based courses. Only two of theseinstitutions are competent to carry out training in four subject areas, with the rest only able to run coursesin one or two areas. The private institutions will be provided with the same level and type of supportas the public institutions, except that private institutions will only be provided with a buildingrehabilitation and maintenance allocation of C3 million (US$3,000) per subject. Again, fees will becharged and used to defray the initial investment in works and equipment.

2. Training of Masters

4.13 The mastercraftsman or woman is the key trainer of all informal sector workers. It is thusimportant that he/she is kept abreast of new appropriate technologies. During the preparation of thisproject there were frequent discussions of the precise skills in which the masters would like to be trained.In addition to technical skills, there was an almost universal demand for training in entrepreneurial, costestimation and accounting skills.

4.14 When possible the training of masters should precede that of the apprentices, so that itcan reinforce the apprentice training. As with apprentice training, "intake vouchers" for master trainingwill be distributed by NACVET to the trade associations for onward transmission to their members. Thetraining of masters is considerably more complex than that of apprentices for several reasons. First, thereare only about 9 public and no private institutions that are suitably staffed to run the higher level oftraining required by masters, and for some masters there will be no nearby institutions. Second, mastersrequire both technical and entrepreneurship training; the former will be run by technical institutes, thelatter will be run by the (MDPI) in Accra, Kumasi, and four other regional centers. Third, the mastercannot be absent from his workshop or business for any length of time. Thus, in general, courses haveto be provided in a more flexible way than is the case with apprentices. In some trades, masters requiretraining every other week, in others three hours a day, and yet others three days per week. Masters willalso be expected to pay a fee of C20,000 (US$20) for participation in the training. However, wheremanagement training is far from their workshops they will be provided with rudimentary accommodationand meals.

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3. Financin,e the Training

4.15 All institutions participating in this program will sign a contract agreement, committingthemselves to provide a given number of courses (in a limited number of subjects) for a given numberof students in return for receiving facility rehabilitation funds, equipment, and staff training. Privateschools that fail to deliver the specified training will be committed to (a) return the tools and equipmentto the MOE or pay the full or prorated cost of these items; and (b) pay the full or prorated cost of facilityrepairs and renovation. A draft framework contract agreement to be used with the selected institutionshas been presented to IDA and is included in Annex 4-1.

4.16 All trainees, both masters or apprentices will normally pay a fee of C20,000 or C 10,000(US$10 to US$20), respectively, to the institutions where the training will take place. This fee will beused by the institutions to purchase the necessary consumable materials needed for the training. Uponsuccessful completion of the training, certification of the trainees, inclusion of their names for potentialtracer study follow-up, and presentation of the validated "intake voucher" to the Government, theinstitution will be provided with an additional fee to defray the incremental cost of training provided,ranging from C20,000 and C50,000 (US$20 and US$50) per trainee, depending on the length and levelof the training. Approximately C5,000 (US$5) of this will be paid directly by the Government from itsown matching funds, and the remainder drawn from the proceeds from the sale of tool and equipmentkits, deposited in the revolving fund as described in para. 4.19 below.

4.17 For entrepreneurship training, proposals were invited from a shortlist of four local traininginstitutions. MDPI submitted the most appropriate proposal which will last for two weeks. MDPI'sproposed training will last for two weeks. MDPI will be paid a fixed fee of C60,000 (US$60) pertrainee for courses run in Accra and Kumasi (where they have training centers), and C150,000 (US$15)per trainee elsewhere, the additional C90,000 (US$90) to cover the boarding and lodging of the mastersand their staff, and the hiring of a training venue.

4. Support to Apprentices and Masters

4.18 Experience has shown that a skill not used is easily forgotten. Trained workers soon loseacquired skills and have difficulty in improving their productivity when they lack the tools and equipmentin the work place needed to practice the new skills. For this reason, an important component of theproject will provide tools and equipment to the apprentices and masters participating in the trainingprogram. Following recommendations by the trade associations on the types of tools and equipment mostneeded in the selected occupations, the project will procure basic tool kits for the apprentices and mastertrainees. These tool kits will be available for purchase by the trainees at a subsidized cost at the end oftheir training. During the series of workshops held with beneficiary groups the ability of apprentices topay for the tools was investigated. This varied from C25,000 (US$25) for masons to C100,000 (US$100)for refrigeration technicians and is combined with the opportunity cost of the training (Annex 4-7) whichestablishes the maximum cost of the tool kit in any area. The content of each of these tool kits withinthe cost parameters has been decided in consultation with the trade associations. A similar process hasbeen followed in determining the size and composition of the tool kits for masters (Annex 4-8). Theactual ability to pay for the kits by apprentices and masters will be closely monitored during the earlyyears of the project and, if necessary, the size of the kits will be adjusted to ensure that they areaffordable.

4.19 The tool kits will be sent to the institutions as soon as NACVET is informed of the actualenrollment in a particular course. Each kit will be numbered and accompanied by a numbered waybilland a numbered receipt. The C10,000-C20,000 (US$10-US$20) fee that the apprentice or master pays

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at the beginning of training will be considered as a down payment for the kit. At the end of training,in order to obtain the kit, the trainee will deposit in a designated bank account the balance that he/sheowes, and present to the school this deposit pay-in slip and a copy of a certificate of full-time attendancefrom the school, endorsed by the local trade association. The amount deposited will go into a revolvingfund which will be used for future purchases of tool kits and to pay the training fees. This revolvingfund and the accounting for the distribution of the tool and equipment kits will be audited annually.During the first training cycles there will also be very closing monitoring by NACVET. Each apprenticeand master will also receive a training record card with a photo at the end of training. The compositionof the tool kits is found in Annex 4-8.

4.20 The actual tools that the trade associations claimed were needed by apprentices andmasters were considerably more than could be provided taking into account the opportunity cost and theability of the trainee to pay. Thus, a small quantity of higher cost supplementary items will be availablefor sale through NACVET and the trade associations to masters and apprentices who have completed thetraining at cost (Annex 4-8). The project will only finance such items for 5 percent of the masters andapprentices to be trained through the project. If demand is greater, the proceeds from the sales will beput into the revolving fund as discussed above (managed by NACVET) and additional items procured.In purchasing these items, masters and apprentices must make a direct deposit into a specified bankaccount and obtain the item of equipment on presentation of the deposit pay-in slip.

5. Training Program Development

4.21 In a departure from previous curriculum development exercises carried out in thevocational and technical education sub-sector, course content for the five occupational areas supportedby this project will be developed by NACVET in close cooperation with the beneficiary groupsrepresented by the trade associations. Since the instruction delivered under this project will be of directpractical use on the job, the trade associations will play a key role in defining those occupational skillsmost needed by apprentices and masters. Working through NACVET and the training institutionssupported by the project, course content will be defined in detail and will be based primarily upon (a)the use of tools and equipment; (b) production techniques; and (c) quality control. In addition, masterswill be given instruction in small business management. In all cases, the content, emphasis and durationof training will be consistent with trade association recommendations, and the associations will beconsulted on a periodic basis to obtain feedback on the effectiveness of the training and the use of theskills gained. The development of these new courses is currently underway using PPF resources.

6. Training of Instructors

4.22 KATTC will be responsible for training the instructors for this program. The instructorsfor each trade will be trained for two weeks at the start of the project, and for a further week after twoyears. Separate courses will be run for instructors of each trade, some at KATTC in Kumasi and somethrough polytechnics or their participating institutions elsewhere in the country. The training will beentirely practical and project-based. Annex 4-5 outlines the instructional methodology that will beimparted.

7. Institutional Strengthening of NACVET

4.23 NACVET will be the organization responsible for all technical aspects of projectimplementation. Its role will include (a) servicing the council, participating in terms of policy analysis,(b) determining and directing all foreign assistance in the area of vocational and technical training, (c)curriculum and materials development, (d) contracting with public and private technical institutes to be

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supported by the project, (e) monitoring and assessing the quality of the training provided, (f) checkingthe extent to which institutions are meeting the established eligibility criteria, (g) developing accreditationcriteria for selected disciplines, and carrying out accreditation, (h) maintaining regular contacts with tradeassociations, and (i) monitoring the adherence of the training institutions to their contracts. In order tocarry out these tasks the staffing of NACVET has been substantially increased; but staff still needs to betrained; and short-term consultants recruited. NACVET will also be provided with office space, essentialvehicles, equipment, and operational support. Recently the Minister of Education assigned 21professional and administrative staff to NACVET and a qualified executive director and his deputy havebeen appointed.

8. Tracer Studies

4.24 Despite the fact that over 400 public and private skill training institutions have beentraining thousands of young people over the past four decades, except for the OIC centers described inpara. 3.14, there is no evidence as to whether or not this training is leading to employment, and whetherthe skills learned are used. The project will thus support the strengthening of the capacity of PBME tocarry out tracer studies, which will not only follow-up and evaluate the effectiveness of the training underthis project, but also of longer term formal technical and vocational training. By following up graduatesthe comparative effectiveness of each of the two systems can be analyzed, and a decision made as towhere resources should be concentrated. Additional staff will be appointed to PBME, and in the 9training institutes offering courses in four or more trades a full-time institutional tracer studies officer willalso be employed. In other institutions national service personnel will be assigned or regular instructorsgiven responsibility for follow-up on a part-time basis. The full and part-time institutional representativeswill be trained early in the project and closely monitored by PBME staff. They will attempt to follow-upa 20 percent sample of master and apprentice trainees over a year, and also a smaller sample of regularlong-term students in the same trades and institution.

9. Labor Market Data Base

4.25 There is a lack of comprehensive labor force, employment, and wage earnings dataavailable in Ghana. For this reason, a baseline labor force survey is being financed through the ongoingEconomic Management Support Project (Cr. 2224-GH) but managed by this project. This work is beingconducted by the Ghana Statistical Service with regular updating to be done by the Labor Department ofMESW. It is planned that NACVET will interface with these two agencies so that relevant informationcan be used in the design and implementation of future training strategies. Work on this comprehensivelabor force survey has already started with the hiring and training of the field surveyors. First resultsshould be available by mid-1996.

4.26 Labor Force Survey. This comprehensive labor force survey is the first such surveycarried out over the past two decades. It will be an in-depth inquiry into the structure and distributionof wages and working conditions of the country's labor force. It will provide comprehensive bench-markdata for use in the compilation of current statistics on average earnings, hours of work, and rates ofwages and salaries so as to indicate wage/salary differentials between branches of industry, geographicregions, occupations, and sexes. Also to be compiled are statistics on: establishments by size and typeof labor employed; educational background and skills of the labor force; time use; job characteristics,hours of work, activity status and employment search, and employment history. For the purpose offormulating and monitoring employment policies and programs, income-generating and maintenanceschemes, vocational training and other similar programs, the Labor Force Survey will also collectinformation regarding the measurement of the relationship between employment, income, training and

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other social and economic characteristics. It will gather information on establishment practices withrespect to wage/salary, payment schedules, shift operations, payments of overtime, and incentive bonuses.

4.27 The Labor Force Survey has been planned in such a way as to provide the framework forthe collection and compilation of mutually consistent data on employment, unemployment, and wagestatistics in both the formal sector (using the establishment survey approach), and the informal urban andrural and small-scale non-agricultural industrial sector (using the household survey approach). Thedecision to integrate these two approaches has been conditioned by a number of factors, including therelevance of the information to current users and the availability of a good statistical sampling for bothhousehold-based and establishment-based surveys. The survey will be managed through this project, butfinanced through the ongoing Economic Management Support Project (Cr. 2224-GH).

4.28 Labor Department (MESW) The labor department has staff in the 62 most urbanizeddistricts in the country. These staff are currently collecting data for the project on the location of allinformal sector workshops in the five trades in their area, and will soon be collecting employment andearnings data on a regular basis which will be sent for processing to the Employment Information Branchin the Department. They will be provided with information from the Statistical Service of the samplehouseholds and industries they used for the labor force survey, and carry out twice yearly surveys of thesame household and industries. This information will be passed on to one of five preliminary dataprocessing centers in the larger district centers, and then on to the Employment Information Branch forfurther processing and publication. The project will support computers, bicycles, motorcycles and othervehicles, staff training, field allowances and consultancies for this work. However, currently thebackground and qualification of the staff in the Employment Information Branch and the five preliminaryprocessing centers is too low for there to be reliable data processing. Thus, as a condition ofdisbursement of funds to MESW, at least one qualified computer programmner must be employed in eachof the five preliminary processing centers and two in the Employment Infornation Branch.

D. Project Costs and Financing

4.29 Proiect Costs. The following table summarizes the costs of the project.

Table 2. Project Costs

Total Costs Percentage ofUS$ millions Total Costs

Training Of Masters and ApprenticesStrengthening of Training Institutions 1.6 12.9Training Fees 1.1 8.9Entrepreneurship Training for Masters 0.7 5.7

Subtotal 3.4 27.5Tools and Equipment for Masters and Apprentices

Tools Kits for Apprentices 3.9 31.5Tool Kits for Masters 2.2 17.7Distribution of Tool Kits 0.3 2.4

Subtotal 6.4 51.6Institutional Stren2thening

NACVET 0.9 7.2MOE PBME 0.7 5.7MOE PMU 0.6 4.8MESW Labor Force 0.4 3.2

Subtotal 2.6 20.9GRAND TOTAL 12.4 100.0

Of Which Contingencies (1.6) (12.9)

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4.30 Physical contingencies were estimated at 10 percent for goods and works. Pricecontingencies have been derived from the implementation schedule and the following expected priceincreases: foreign prices 2.2 percent per annum throughout; local prices 20 percent in 1994, 15 percentin 1995, 12 percent in 1996, 8 percent in 1997, and 5 percent per annum thereafter. The project willbe implemented over a five and a half year period, with an expected completion date of December 31,2000. Detailed project cost estimates are shown in Annex 4-9.

4.31 Financing Plan. The following table summarizes the financing of the project.

Table 3. Financing Plan

Local Foreign Taxes and Duties Total Percentages

IDA Credit 3.4 6.2 - 9.6 77.4

Government Matching Funds 0.3 - 0.6 0.9 7.3

Beneficiary Trainees 1.5 0.4 - 1.9 15.3

Total Project Costs 5.2 6.6 0.6 12.4 100.0

Percentages 41.9 53.3 4.8 100.0

4.32 The Government's allocation of US$0.9 will be used to pay part of the training fees forthe training of apprentices and masters: to cover 10% of the costs of works, local purchases, andoperating costs, and to pay taxes and duties. The project will require annual budgetary allocations fromGovernment of around US$150,000 per year over the life of the project. The beneficiary trainees'contribution will be used to pay fees to training institutions, and to pay for the cost of the tool kits lessthe opportunity costs of the training.

V. PROJECT IMPLEMENTATION

A. Project Preparation

5.1 The preparation of this project has been notable in two respects. First, it was developedby a team of local officials and consultants with little input from the Bank or other donor agencies. Thesepreparation and consensus building activities took a long period of time. The first Government committeestarted work in 1991, and a draft project proposal was not produced until February 1994, with the finalproposal officially submitted to the Bank in September 1994. Second, there was a high level ofparticipating institutions and client involvement in project preparation. Government organized fourworkshops of training providers and trade association representatives during its preparation activities; theappraisal mission organized a further workshop with involvement of all stakeholders. Government alsoattempted to pilot the concepts in 1992/93, but devoted insufficient attention to evaluation of theoutcomes.

5.2 During pre-appraisal (February/March 1994), appraisal (July 1994), and post appraisal(October 1994), task force and mission members visited most of the proposed training institutions andalso visited workshops and trade associations in different parts of the country to assess (a) the feasibilityfor public and private institutions to carry out short-term training courses; (b) the level of response from

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mastercraftsmen and apprentices towards attending short-term training and their willingness to pay forthe courses; (c) past experiences of short-term training programs carried out by some institutions; and(d) the willingness of selected trade associations to participate in the elaboration and implementation ofkey elements of the project.

B. Projects Management and Coordination

5.3 In September 1993, the Government established a Projects Management Unit (PMU) asan integral part of the Ministry of Education responsible for managing all externally-funded projects inthe education sector. The core of this PMU has been drawn from the EdSAC Projects Management Unitwhich was created in 1987, and has been functioning successfully with responsibility for the IDA-financedEdSAC I, EdSAC II, Community Secondary Schools, Primary School Development, and USAID-financedPrimary Education Project managed by the School Education Division. The Unit also includes staffworking on the IDA-financed Literacy and Functional Skills project managed by the Non-FormalEducation Division; and the Tertiary Education project managed by the Higher Education Division. ThePMU, which is headed by a Director General, falls under the overall responsibility of the Minister ofEducation. It has an efficient accounting and disbursement system and has demonstrated considerableexperience in procurement and civil works administration. In order to effectively manage the project,the PMU will be strengthened with the addition of a dedicated project manager, and three project officersto be added to existing units. In addition, part-time accounting and evaluation consultants will berecruited. The organizational structures of the Ministry of Education and the PMU are found inAnnex 2-2. A Project Manager for this Vocational Skills Project, with qualifications and experienceacceptable to IDA, has already been appointed.

C. Proiect Sustainability and Recurrent Cost Implications

5.4 It is expected that the project's long-term sustainability will be achieved through (a)forging links between training institutions, the trade associations, and the informal sector in general; (b)establishing competency-based training as an effective and viable approach to improve workerproductivity; (c) strengthening labor market data collection and analysis; (d) creating incentives fortraining providers to shorten traditional long-term training programs; (e) the existence of the revolvingfund for equipment kit purchases and future training provision; (f) the Government providing a fee to theinstitutions of around C5,000 (US$5) for each master or apprentice being trained; and (g) creating anawareness that training must be complemented by improvements in equipping the work place if it is tobe effective. Through the nurturing and acceptance of these concepts, it is hoped that they will becomepart of the education and training system and will remain as such beyond the life of the project.

5.5 It is expected that the impact on the Government's recurrent budget of carrying out thisshort training in 14 public institutions included in the project will be minimal since each public institutionwill be asked to reduce their current total regular enrollment to free space for the short-term training.Apart from the normal incremental creep in salaries, various overtime and other allowances, andadditional allocations for recurring materials due to the practical nature of the training, little increase inrecurrent costs is unexpected in the project institutions. Details on the 1994 total recurrent budgetapproved for the Ministry of Education is found in Annex 2-1.

D. Project Monitoring. Reporting, and Evaluation

5.6 The process of technical evaluation has been discussed in paras. 2.4 and 4.23 above. Inaddition, the PMU will prepare and submit to IDA annual progress reports on project implementation bythe end of September each year, covering the period up to June of the same year. These annual reviews

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will concentrate on the ability and willingness of participants in training to pay fees for training and tools.On the basis of this annual evaluation the budgetary allocations for the following year will be prepared.The Project Manager will liaise with the other implementing agencies to ensure that they submit timelywritten progress reports on the components for which they are responsible. A draft ImplementationManual and Plan containing details on the physical and technical aspects of the project as well as keyperformance indicators has been discussed in detail with IDA. The manual will be updated annually toreflect delays or progress in project implementation. The MOE will also provide its own evaluationreport on the project which will be part of the Implementation Completion Report to be completed withinsix months of the closing date. Some project performance indicators are found in Annex 5-1.

E. Mid-Term Review

5.7 A joint Government/IDA mid-term review will be carried out at an appropriate timebetween July and December 1997 to assess the overall progress made in implementing projectdevelopment and performance objectives; and to verify the validity of the project design in the light ofimplementation experience. At least two months prior to the review the Government will prepare andpresent to IDA a report in sufficient detail to form the basis of the review. In particular this report willconsider a separate analysis of tracer study results from a sample both of long-term skill traininggraduates, and from the first two cycles of short competency training completed under the project. It willalso note schools that have not maintained implementation standards and for which IDA support mightbe withdrawn.

5.8 During the mid-term review IDA and the Government will attempt to answer thefollowing questions in order to determine the extent to which there should be any significant change inthe focus of the project:

(a) How many masters and apprentices are enrolled in training courses by trade, and school?Are the schools maintaining acceptable standards of instruction? What actions are beingtaken with below standard schools?

(b) How effective has the short-term training been? Have the skills learned by the traineesbeen used in the workshops?

(c) Are the tool kits being purchased and used by the trainees? What is the distribution oftool kits by trade? Are there any items which are not being used? Why not? Are theoptional items being purchased by the trainees?

(d) Have the trade associations been involved in all aspects of designing and implementingthe training programs? Are there significant differences in participation by trade?

(e) Is the labor force data system being used? By whom? Is it being regularly updated?

5.9 Based on the outcome of the review, the Government will promptly prepare andimplement an action plan, acceptable to ID)A, to improve the project's implementation. The Governmentwill also organize a conference with other donors to examine progress on this and other projects in thesubsector and develop an overall sector program that all donors can support.

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F. Environmental Aspects

5.10 The project, designed to offer short-term competency-based training to mastercraftsmenand apprentices, is classified as category C and will have no impact on the environment.

G. Procurement

5.11 The following table summarizes the project components, their estimated costs andproposed methods of procurement. The Procurement and Disbursement Schedules, which allow sufficienttime for all the key procurement steps, are presented in Annex 5-3.

Table 4. Summary of Proposed Procurement Arrangements(USS million equivalent, including taxes and contingencies)

Procurement Method TOTALProject Element ICB LCB OTHER N.I.F. COST

1. Works

1.1 Rehabilitation 1.041 1.041(0.937) (0.937)

2. Goods

2.1 Workshop Equipment forTraining Institutions 0.855 0.855

(0.855) (0.855)2.2 Office Equipment

and Furniture 0.171 0.171(0.153) (0.153)

2.3 Toot Kits for Trainees 5.008 1.118 6.126(5.008) (5.008)

2.4 Vehicles, Motorcycles 0.217 0.037 0.254and Bicycles (0.217) (0.037) (0.254)

3. Consultancies

3.1 Project Supervision,ImpLementation and 0.599 0.599Monitoring support (0.599) (0.599)

3.2 Institutional Development 0.121 0.121(0.121) (0.121)

4. Training

4.1 LocaL Training/Workshops 2.242 2.242(0.746) (0.746)

4.4 Training Abroad 0.021 (0.021)(0.021) (0.021)

5. MisceLlaneous

5.1 Field ALLowances 0.079 0.079(0.079) (0.079)

5.2 Honorarium 0.058 0.058(0.058) (0.058)

6. IncrementaL Recurrent Costs 0.735 0.081 0.816(0.735) (0.735)

TOTAL 6.080 1.212 3.892 1.199 12.383IDA Financing (6.080) (1.090) (2.396) (0.000) (9.566)

Note: Totals may not add up due to rounding.Figures in parentheses are the respective amounts financed by the IDA credit.N.I.F. = Not IDA-Financed. Includes contribution by trainees, taxes and duties and Goverrnment financing ofequipment distribution.

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5.12 Civil Works. The civil works included under the project are for the construction ot officesfor NACVET, and for the rehabilitation of the selected public and private institutions. A survey has bee ncarried out by a team of quantity surveyors out to assess the physical facilities and rehabilitation needs ot thefirst ten public schools and fifteen private training institutions. From this survey it was decided to restrictrehabilitation work to C3 million (US$3,000) per subject per school in private schools and CO() i[illion(US$10,000) per subject in public schools. For these small works LCB advertised locally accordinig toprocedures acceptable to IDA will be used. These contracts, each estimated to cost less than US$100,0R)(will total a maximum of US$0.5 million for 14 public institutions, and US$0.1 million for 26 privateinstitutions. The office block for NACVET (US$0.35 million), and various small rehabilitation works willbe awarded on the basis of normal competitive bidding advertised locally in accordance with procedutresacceptable to IDA. The phasing of civil works procurement is included in the implementation plan andsummarized in Annex 5-4.

5.13 Goods. Goods financed under the project would include: computers, vehicles, motorcycles.furniture, tools, equipment, training, and operational materials for a total value of US$6.4 tnillion equivalentincluding contingencies. Goods valued at US$100,000 or more per contract would be procured througlh ICBusing Bank's standard bidding documents. Contracts for goods procured through ICB would total abhoutUS$6.1 million, representing 96 percent of the total value of goods financed by IDA. Office equipmiienit andfurniture which can be competitively procured locally and which cannot be grouped into bid packages olf atleast US$100,000 equivalent each will be procured through local competitive bidding (LCB) under procedur-esacceptable to IDA. In aggregate these will not exceed US$0.2 million equivalent and would represenli 3percent of the total value of goods financed by IDA. The remaining 1 percent of the total value of goo(ds,for items such as motorcycles and bicycles as well as materials used in training and in project managenentwhich cannot be grouped into bid packages of at least US$50,000 equivalent will be procured on the basisof price quotations obtained from at least three reliable suppliers, provided that the aggregate amount of suclprocurement does not exceed a total of US$0.25 million equivalent. LCB procedures will include: (a) explicitstatement to bidders of the evaluation and award criteria; (b) local advertising with public bid opening; (c)award to lowest bidder; and (d) foreign bidders would not be precluded from participating in [.C(13.Government has confirmed the above LCB principles.

5.14 Services. Consultants financed by IDA, totalling US$0.7 million equivalent would becontracted in accordance with IDA's "Guidielinesfor the Use of Consultants " (August 1981). The consultancyservices required under the project would be mostly for project management, supervision and implementatioin,surveys and research and for architectural and engineering services. They would include, specifically, theservices of locally recruited consultants and training institutions to carry out activities suchl as: (a)development of tracer studies; (b) training of trainers, mastercraftsmen, and apprentices; and (c) annualproject audits. Terms of reference for major consulting services and details on consultancies are availablein the project file. Details on the training program are found in paras. 4.8-4.21.

5.15 Procurement Arrangements. The procurement activities of this project will be straightforwardfor civil works. The rehabilitation work will be supervised by project engineers and payment will be miadeto contractors only when the work is complete according to specifications. Only for the office block willmobilization advance be given and this will not exceed 20 percent. Goods procurement will be carried outby the staff of the Procurement Section of the PMU. To facilitate procurement, tool and equipment kits willbe procured for the first four training cycles (one year and four months) with an option to buy up to twiceas many kits over the following three years. The Project Manager will liaise closely with the ProcurementSection for handling all matters related to the preparation, implementation and monitoring of work plans forthe smooth execution of procurement of all works, goods, and services, including the preparation of biddingdocuments, launching of tenders, evaluation, and reporting the results to the Government and to IDA for

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review. During negotiations, Government agreed, that in order to expedite project implementation, it wouldendeavor to maintain the following times for key procurement steps:

Table 5. Timetable for Key Procurement Steps

From Bid Opening to Completion From Government Approval oror Official Submission of IDA's No Objection of Bid

Bid Evaluation Reports to IDA Evaluation to Contract Signing

Goods under US$100,000 30 days 30 daysGoods over US$100,000 60 days 30 daysWorks under US$100,000 45 days 30 daysWorks over US$100,000 90 days 30 daysConsulting services 30 days 30 days

5.16 In addition, adequate records on procurement progress, including staff reports on site visits,the timing of works and goods procurement; and compliance with agreed methods of procurement will bemaintained by the office of the Project Manager. These will be used in MOEs project monitoring system.The Project Manager will update the project cost estimates annually, including his best estimates ofallowances for physical and price contingencies and report these to IDA not later than October 31, each yearfor the succeeding year.

5.17 A project launch workshop will be organized by the Government and IDA shortly afterBoard presentation with the assistance of the PMU staff as soon as all key project staff are in post. Thisworkshop will be attended by staff from all project entities and deal with all aspects of projectimplementation, and will especially concentrate on procurement, disbursement, monitoring, and reporting.A final version of the Implementation Manual will be circulated at the launch workshop. This will befollowed by training in competency-based instruction of teaching staff of the selected institutions.

5. 18 Bank Review. Prior review by IDA would be required for procurement of packages of worksand goods which exceed US$100,000, of consultant services to firms of US$50,000, and to individuals ofUS$10,000. All consultancy service terms of reference and standard contract forms will be subject to IDA'sprior review. The review process would cover over 68 percent of the value of the amount contracted forworks, goods and services financed by IDA. All bidding documents will be based on the Bank's StandardBidding Documents for each type of ICB procurement have been prepared and presented to IDA.

H. Disbursements

5.19 The project is expected to be completed within five and a half years by December 31, 2000,with all disbursements made by June 30, 2001. The estimated disbursement schedule is given in Annex 5-3.

5.20 The following table gives the categories and amounts to be financed out of the IDA credit,and the percentage to be financed in each category.

- 28 -

Table 6. Summary Disbursement Schedule

Amount of the CreditAllocated Percent of Expenditures

Category of Expenditures (US$ Million) to be Financed by IDA

I. Civil Works .86 90%

2. Equipment. Vehiclesand Furniture 5.55 100% foreign expenditures

90% local expenditures

3. Training .74 100%

4. Consultant's Services .65 100%

5. Operating Costs .58 90%

6. Refunding of PPF .23

7. Unallocated 95

Total Credit Amount 9.56

Note: As a condition of disbursement for the release of operating costs to the Ministry of Employment and Social Welfare torits Labor Force Data System, the Govermment will have appointed qualified staff to the Employment Information Branchand the five preliminary processing centers.

5.21 Disbursements of the IDA credit will be fully documented except for: payments undercontracts of goods of less than US$50,000 equivalent and works of US$100,000 equivalent, which may bedisbursed against Statement of Expenditures (SOEs). Documentation for withdrawals under SOEs would beretained at the PMU for review by IDA staff during supervision missions and by auditors during annualaudits. Disbursement and withdrawal procedures are detailed in The World Bank Disbursement Handbook(1992 edition). All disbursements are subject to the conditions of the Development Credit Agreement andthe procedures defined in the Disbursement Letter.

5.22 Special Account. To facilitate disbursements of eligible expenditures for works, goods andservices, the Government will open a Special Account in a commercial bank to cover part of IDA's share ofeligible expenditures to be managed and administered by the PMU. The authorized allocation for the SpecialAccount would be US$0.5 million; IDA will make an initial deposit of 50 percent of that amount from theproposed credit immediately upon credit effectiveness and the remaining balance will be made available whenthe project implementation has fully taken off. IDA would replenish the Special Account on a monthly basisupon receipt of satisfactory proof of incurred eligible expenditures. Replenishment requests would beaccompanied by up-to-date bank statements and reconciliations of the Special Account. All payments underUS$50,000 equivalent must be made through the Special Account; payments above that amount may be madethrough direct payment or special commitment procedures. According to the procedures set out in The WorldBank Disbursement Handbook (1992 edition). Funds in the Special Account cannot be mixed with otherfunds (such as matching funds or funds fromn other donors); nor can they be advanced to project entities priorto expenditures taking place. Any special account for which no replenishment requests have been receivedby IDA for six months becomes inactive, and may have to be repaid.

- 29 -

5.23 Project Account. The Government will establish a Project Account in cedis in a commercialbank for local matching funds. It will be required to make quarterly deposits in advance on the basis of anagreed budget for the project, proposed by Government, and accepted by IDA by October 31 of each year.All local matching funds and most IDA eligible expenditures paid in local currency would be disbursed fromthe Project Account. Any advances to project entities will be from this account. IDA eligible expendituresdisbursed in local currency from the Project Account would be replenished from the Special Account asrequired.

I. Accounting, Auditing, and Reporting

5.24 Overall responsibility for the project's financial management would rest with the PMU, whichwould maintain the consolidated project accounts for the entire project. The accounting for all SpecialAccount and Project Account transactions would be maintained in accordance with international accountingstandards. Annual financial statements of IDA-financed components would be prepared and audited inaccordance with auditing guidelines by suitably qualified independent auditors acceptable to IDA. This auditwould cover all activities of the revolving fund; of the distribution of, and payment for, the equipment andtool kits; and the use participating training institutions make of fees from participants, and from Governmentand the revolving fund. By June 30th of each year, PMU would submit to IDA an auditor's report,management report and audited financial statements for the Special Account, Project Account and forpayments made through Statement of Expenditures procedures for the preceding fiscal year. Audits ofCredits 2140-GH, 2278-GH, 2349-GH, 2428-GH, 2508-GH implemented by the MOE are current.

VI. PROJECT BENEFITS AND RISKS

A. Proiect Benefits

6.1 An awareness will be created of the inefficiencies of long, largely theoretical vocational skilltraining for stagnant modern sector employment. Government will redirect a part of the resources it currentlydevotes to this long duration training to more effective, short competency-based training for those alreadyin informal sector employment or apprenticeship programs. Both public and private training providers willbecome more responsive to labor market realities. Training beneficiaries, represented by the informal sectortrade associations will play an increasing role in determining training course content and trainee andequipment selection. The quality of goods and services produced by the informal sector will improve andproductivity and earnings will increase, which will, in turn, lead to an expansion in informal sectoremployment.

6.2 The institutional structures for managing an effective vocational training system will bestrengthened, and eventually only those institutions that offer meaningful training will be accredited andsupported. A system will be developed and put in place that will provide the Government with a regularsource of up-to-date labor force data, including data on changes in employment and earnings in different skillareas. Finally, donors will redirect their support for vocational and skill training towards shortdemand-driven programs.

B. Project Risks

6.3 The project has four main risks. First, the key implementing agency, NACVET, thoughcreated in 1990 has, up to now, played little role in the technical and monitoring aspects of managing thevocational skill training system in Ghana. Second, public and private training providers are not yet fully

- 30 -

committed to the provision of practical competency-based training for masters and apprentices who mighthave very low academic qualifications. Third, participants in the new short courses might not always bedrawn from apprentices or others who are already employed, but from the unemployed who are ready tograsp at any low-cost training that might lead to eventual employment. Fourth, the unclear division ofresponsibility between the Ministry of Education and the Ministry of Employment and Social Welfare in thearea of vocational and skill training might lead to a dissipation of energies by these agencies on matters notdirectly relating to project implementation.

6.4 The first risk has been mitigated by a transfer of key management and professional staff toNACVET. The second risk will take some time to be reduced, as only when the institutions have experiencein providing new short competency based training will they be able to make a judgement as to how they mightmanage such training in the long run. The third risk will be minimized by distributing "intake vouchers" totrade associations for onward distribution to their members. As far as the final risk is concerned, theGovernment is hiring an independent consultant to make recommendations to cabinet as to the delineation ofresponsibility in skill training between the two Ministries.

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.1 During negotiations, the Government provided assurances that it will:

(a) submit by September 30 of each year, the budget for the project for the following year,which will show the needed Government matching fund contributions to project activities byquarter, and thereafter implement such budget (paras. 5.6 and 5.23);

(b) carry out a mid-term review between July and December, 1997 focusing on overall progressmade in implementing project development and performance objectives; the effectiveness ofthe training programs; and the quantitative deliveries. The MOE will prepare, two monthsbefore the review, the report in sufficient detail for a comprehensive review. Based on thereview, an Action Plan, acceptable to IDA will be prepared by MOE for the furtherimplementation of the project (paras. 5.7 - 5.8);

(c) in addition to the mid-term review, carry out annual reviews to be held no later than October31 of each implementation year to assess progress and evaluate performance during the pastyear and review and agree on the work program and budgetary allocations for the followingyear (para. 5.6).

(d) use standard bidding documents as approved by IDA for all LCB and ICB procurement;

(e) ensure that the Government shall maintain qualified and experienced management personnel,assisted by competent staff in adequate numbers in NACVET; and

(t) complete the comprehensive labor force survey not later than August 31, 1996.

7.2 As a Disbursement Condition, for the release of operating costs to the MESW for its LaborForce Data system the Government will have appointed qualified staff to the Employment Information Branchand the five preliminary processing centers (para. 5.20).

- 31 -

7.3 Audit Agreement. After credit effectiveness, by June 30 of each year, the MOE will submitto the IDA an auditor's report, management report and audited financial statements of the Special Accounts,Project Accounts, tool equipment distribution and sales and SOEs for the preceding calendar year, auditedby an independent accountant acceptable to IDA (para. 5.24).

7.4 Recommendation. Subject to the above agreements, the proposed project is suitable for anIDA credit of SDR 6.6 million (US$9.6 million equivalent) to the Republic of Ghana on standard IDA termswith a maturity of 40 years.

Population and Human Resources Operations DivisionWest Central Africa DepartmentAfrica Region

- 32 -

AN?NEX 1-t

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

SOCIAL INDICATORS

,Name (year) Measure Indicator Source

Total area km2 239,000 (a)

GNP per capita (1993) USS 430 OP 3. 10

Total population (mid-1992) ('(00) 15,788 (b)

Urban population (1992) (as % of total pop.) 34.9 (b)

Total fertilitv rate (1992) (av. number of live births per woman) 6.1 (a)

Crude birth rate (1992) (per 1.000 pop.) 41 (a)

Crude death rate (1992) (per 1,000 pop.) 12 (a)

Infant mortalitv rate (1992) (per 1,000 live births) 81 (a)

Life expectancy at birth (1992) (years) 56 (a)

Annual Population GrowNth Rate(1987-92) (%) 3.0 (b)

Gross Enrollment Ratios (1990): (%,o of relevent pop.) (c)Primarv: Total 77

Female 69Secondary Total 37.8

Female 28.8

Pupil-Teacher Ratio (1990) (tot. pupils/tot. teachers) (c)Pnnmarv 29Secondary 19

Adult Literacy Rate (1992) (% of relevent pop.) (d)Total 63Women 54

Source: (a) World Development Report 1994, World Bank(b) Social Indicators of Development 1994, World Bank(c) UVESCO, 1994td) Human Development Report 1994, United Nations Development Programme

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

MOE 1994 Summary of Recurrent Expenditure by Programs and Objects

IISUB I i TOTAL M B II II AINTENANCEHEAD IPHEAD I PiOGRAuMES 1I RECURRENT 11 PERSONAL 1J TRAVELUNG 11 GENERAL I REPAIRS & SUPPLIES 11 SUBVENTION H

I II f11 EXPENDITURE 11 EMOLUMENTS 11 EXPEN,,TURE 11 EXPENDITURE II RENEWALS I & STORES-11 .l-Il - … -- … -…11 ____________'I---**- --11-------*--*----------------- ------- -- I_--1_______ _--

140 fl aINISTRYOF EDUCATION i 12.454,607,000 558.281,000 II 253.000.000 11 138,000000 II 126.600,C00 II 555.54,000 11 l0,823,172,000O tI UGOENERALADIMNISTRATION 1I I1.224.926.000 i 35.600,000 II 40.000.000 II 40.000,000 II 85.600.000 if 200,554.00011 10.823,172,00011

11 02 II0UREAN.OF GHANALANGUAGES il _ ii _ -_ -_ -_ -_I11 03 JIPON-FORMALEDUCATION DIYSION i 932,481,000 II 512.481.000 II 50,000.o0o II 50,000.0o0 II 20,000,0D0 II 30,00.0003 || i)I 04 IIPLANNINO, UDGEThNO, MONITORNO & EVALUATION 182.000.000 D - it 155,000.000 || 15,000,C00 7.000t000 i 5.000.000 tl11 05 JISUPPLJES AND LOGISTICS II - D - II - II - I _ I _

06 IINACVE1 li 115,200.000 II 10.200,0D0 I 8.000,0D0 || 33.000.000 if 140000,0D0 50,000,00 if i11 11 111i1f11 1 l1

141 1 fl GES - HEADGUARTEmS SERMCES II 12.534.368,000 II 2.835.092.000 II 352.674.000 II 1,341252.000 II 3.2as5.s9.000 II 4,719,451.00011 01 1IOENERALADMLNISTRATON II 4.598,893.000 II 1,955.985,000 II 198,774.000 II 902,685,000 II 1,005.725.000 II 535,724.00011 02 JIMANPOWERnANDTRFNING DIYISION II 477.588,000 fl 117.798.000 11 662.000 11 344,804.000 - if 14,324.O0D0 fif 03 IIC.RD.D. 122,812.000 II 64.148.O000 1 8.468.00O 11 - if - if 50000.000 0 f Il11 04 JINSPECTORATEDIIASION II 79.016.000 11 57.437,000 11 12,571,000 11 4.808.000 4. - II 4.200,000li 06 [ISECONDARY EDUCATION DIMSION 11 3.064256,000 il 108.164.000 il 662.000 11 - 11 2.255.430.000 il 700,0000 Ii 11 08 IfTEACHEREDUCATION 1 101,820.000 11 44.964,000 D 1.450,000 it 15.400.000 40.000.00 - * oli 12 JISUPPLYAND LOGISTCS i 445.509.000 il 105.509.000 il 100.000.000 il - il _ II 240,000.000 II II

t1 13 IlBASIC EDUCATION D 3.024.820.000 il 23.232.0D0 il 1.58t,000 i - It - if 3.000.000.000 if i11 16 IS PECIAL EDUCATION D4YISION il 125.965.000 li 40.680.000 li 1.985.00 I 3,300.000 1 J i _ 8°0.000,000 il il1117 )JACCRATEC-4ICALTRANINO CENTRE If a68.118.000 it 120.224,000 II 13.447,000 11 20,078.000 11 7,478,000 11 26.0893.000 11

a1 18 IIIOJMASITECHNICALINSTITUTE il 305,771.00011 196,953.000 II 13.063.000 i 50.179,000 il 17.260.000 il 20,310,0O0 11 i

II 11 11 11 11 It 11 11 11 11142 II B GES SCHOOLS AND RECIONALSER'dCES II 139.979,780,000 11 136.6.09780,000 11 1.270,0.000 if 1.200.000,000 11 400.000,000 if 500.000.000 if

11 01 JIIENERALADIINISTRATION if 10,501,60.000 II 9,891.451,000 11 267,454.000 if 335,075.000 11 45,903,000 if 21.777,0ODO 111 02 IiPfIMARY EDUCATION II 71,425.131.00011 71.095.124,000 11 155,124.00011 127,380,000 11 1.393.000 Oj 31.1Io,0 i11 03 IIAJJNIORSECONDARYEDUCAnON II 28.683.157.000 II 2a,206,n3,000 11 173,845,000 if 117.344,000 11 154,084,000 31,111.00-011 04 IPECONDARYEDUCATION il 20.051.26a.000 11 t8.875.309.000 if 438.248,000 i 395.568,000 11 137,703,000 II 204,440.00011 05 IfTEACHEREDUCATION II 6,581,985,000 11 6,240,420,000 11 141.720.000 II 100.577.000 11 24,597,000 if 74,671.00 if if

06 IIMANAOEMENTAND SUPERYISION I 1.032,516,000 li 954.016,000 li 26,745.000 il 41,918,000 II 9,837po0 li - il iloa 0 JIVocATIONALEDUCATIbN II 1,644.063,00011 1.346,.57,000 11 66,864.000|| 82,13d.000 11,483.000 11 130,891.000 ||

143 if if GES - SPECIALSERIACES II 671.024,000 II 55a,024.000 11 45,000,0D0 11 30.000.000 II 5,000,000 if 35,000,0)0II 02 IFNSTITUflONS OF THE HANDICAPPED il 671,024,000 II 556.024.000 il 45,000,000 It 30,000,000 il 5,000,000 II 35,000,0D0 I i p)11 11 11 11 11 11 11 11 11 11 O'q

ll ll ll ll ll ll ll ll ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(D -145 || II TERARY EDUCATION DIMSION il 21,349.511.000 2. 2554,623,000 if 80.240,000 || 104,080,000 11 85,000.O0D II 152,000.000 II 18,373.388.000 11

°' 01 IGIENERALADIANISTRATION I 18,476,668.000 if - II 16,240.000 11 30,080,000 11 7,000,000 11 50,000.000 11 18,373.36a,000 1111 02 IIPOLYTECHNICS II 940,303.000 II 780.303.000 11 30.000.000 || 40,000,000 11 30,000,OO 60,000,0DO - II O11 03 IplPLOUACOLLEGES 384.501.000 i 331,501.000 i 14,000,000 il 9,000.000 11 18,000,000 li 12,000,0D0 if - il|| 04 IpISTANCE EDUCATION il 1,548,019,000 il 1.443.019.000 i 20,000,000 il 25.0C0,0D0 II 30,000,000 il 30,000,0D0 0i - i

_-11__ -- --- -…-_ -… __-------------------------i------------------------------ …---------- --------- 11-- --------- T11 IITOTALINISTRYOF EDUCATION li 1B6,989290,.000 143.114,000,000 2,000,914,00011 2,813,332,000 3,902,499,000 58.982,005,00011 29,190.540,000 11

-..…~ …-.. ..... . ....... … .-...... U.- ..... . . . . . . . ...... -.- ............... - . ....

- 34 -ANNEX 2-1Page 2 Of 5

GOVERNMENT RECURRENT BUDGET FOR EDUCATION (1988-1993)

TOTAL GOVERNUENT RCJUEWT WUDGET FOR EDUCATION Y LEVE1l/lYPES OF EDUCATION, 1988 - 1 93

AMOUNT IN MILUONS (C4EVEIlTYPE OF EDUCATION

1988 1989 1990 1991 1992 1993

PRIVARY EDUCATION 8,616.20 14,045.90 15,650.20 22,531.60 28,341.00 51,6.47.00/MIDOLE EDUJCATION 6,906.50 8,501.50 8,536.50 11,522.40 11,37S.80 20,836.50

SECONGAY EDUCATION 3,500.20 4,596.20 5,552.00 7,870.00 8,079.50 15,000.40TEAO-ER EDUCATION 598.00 670.30 1,682.00 1,195.50 1,186.90 4,846.00VOCATiONALEDUCATKON 398.90 282.00 1,200.30 776.10 668.20 1,269.40TECHJCAL EDUCATION 215.80SPEaALIST TRAIING EDUCATION 442.80 558.60 620.20NsTTilnoN OFT1E HAIC.APPED 149.60 174.80 183.10 260.80 268.80 516.30HIGlfR EDUCATION 2.320.30 A,759.00 5,387.00 6,834.80 12,910.60 13,159.80POLYTEQ14NI5 & OUDLOMA AWARDIG NT. 1,370.60 1,S41.60 1,085.00MANAGEMENT AND SUPERVSION 167.10 246.60 276.30 420.60 398.50 767.10

ADMNSTRAnON

MTRY OF EDUCATION (IIIADOLARTS 1,602.90 1,817.20 3,370.40 5,430.20 5,681.80 8,860.508UR1EAJ OF GK14A LANGUA4ES (MOE 28.40NON-FORMAL EDUCATION SMOEI 520.00 751.40 801.30PB9E DMVSION (MOE) 30.00 18.60 52.00SUPPES AMD LOGLSTICS CMOE 100.00 82.60 130.00GiQtA EDUCATION SERVICE FEADOUATERS) 4,648.40 5,157.90 5,669.40 8,960.90 6,857.50 10,733.80GC4W1A EDUCATION SEVa (REGIONE 1,279.20 1,791.10 3,114.70 4,153.60 4,203.40 7,810.00NATIONA ARCHIVES 39.50 - 69.10 113.00

TOTAL 30,913.80 A2,601.10 51,242.10 71,977.10 82,435.30 137,628.10

ALLOCATION OF EDUCATION RECURRENT BUDGET BY LEVELS/TYPES OF EDUCATION

LEVEL/TYPE OFEDUCATION 1988 1989 1990 1991 1992 1993

P4AURY 27.87 32.97 30.54 31.30. 34.38 37.5322.34 19.96 16.66 16.02 13.80 15.14

SSS 11.32 10.79 10.83 10.93 9.80 10.90TEACHER 1.93 1.57 3.28 1.66 1.44 3.52VOC/TECH 1.99 0.66 2.34 1.08 .0.81 0.92SPECIAL 0.48 0.41 0.36 0.36 0.33 0.38TERTARY 8.94 12.48 1I.72 11.40 17.53 10.35ADNVN.' 24.90 21.16 24.26 27.25 21.83 21.18*OTHER 0.22 0.00 0.00 0.00 0.08 0.08

TOTAL 100.00 100.00 100.00 100.00 100.00 100.00

- 35 - ANNEX 2-1

REPUBLIC OF GHANA Page 3 of 5

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

MOE 1994 Summary of Recurrent Expenditure for NACVET

| a , , jEACTUAL E I tUALSUt ' XSUS, PROGRAMME It ACCOtJNT EXPWN01TURE | EXPENDITURE ESTItATES ESTIMATES

NEADIITEM:ITEM' NUIBER 1992 IJA-Jum, 1993 , 1993 1m994 t t l t | ~~~~~~~~~~~(CEDIS) I (CEDlS) I CCEDIS) (CED IS)....................................................................................................... -- -- -- -- -- -....................................................................

06 tACET II I I I I ~~~ ~ ~~~~~~I I a

Et PEA SONAL EMOLLUMENTS 1140-061-000: i II OESTAtLI RED POSTS ,140-061-001t2 ICON & NON-EST POST 1140-061-0021

M3 1ONTHLY PAID & CASUAL LAB 1140-061-0031 a a4. ItSCE ALLOWANCES ,140-061-0041 t 8,000,000, 10,200,000S 1HaUSING ALLOWANCE |140-061-0051 t - It6 ILEAVE ALLOWANCE :140-061.006, t I7 :TRANSPORT ALLOWANCE 1140-061-007:|8 :LUCH ALLOWANCE 1140-061-008O9 :VEHICLE MTCE ALLOWANCE 1140.061-009,

--------------------------- --------------- ------ t------- I........--------------I--|----------------- ------- ---- lI I , TOTAL PERSONAL EMOLUMENTS I I 3,114,000 4U3,000 I 8,000,000 * 10,200,000

--------------------------------------------------------- .............. ---- ---------- 1--------------- - -------------2 I TRAVELLING & TRANSPORT EXP :140-062-0001 1 t t a

I l TRAVELLING ALLOWANCE .140-062-0011 I t 612,000 1 1,000,000 I2 :RUNHING COST (OFF. VEHICLES) :140-062-002: a 2,500,000, 4,000,000o

1 3 HMTCE OFFICIAL VEHICLES :140.062-003: t 1 1,500,000 ' 2,000,000 I 4 OTHER T & T EXPENDITURE 1140-062-0041 t t 1,000,000' 1,000,000:

.. ....... . .. .................. i-1-1-- 1-#-i --------- ,----- -------- t------------ ------- ---I I , TOTAL T & T EXPENDITURE I i 628,610 1 3,820,300 t 5,612,000 I 8,000,000 1

------------ ---------------------------- - -- --- --- t..----- -------- --------------- ----------------- -- ----------3 I I GENERAL EXPENDITURE 1140-063-000, i

1 aELECTRICITY CHARGES 1140-63-001 i 2 :WATER CHARGES '140-063-002: I - I -

3 IPOSTAL CAARGES '140-063-003: a - -4 ITELEPHONE & TELECOM CHARGES 1140-063.0041 a a

5 :CLEANING, CLOTH!NG MATER!ALC : I I .:SANITATION & OFFICE FACILITIES:140-063 005,O,| 232,000 331,000,

6 'STATIONERY ,140.063-0061 I a 926,000, 1,320,0007 ,PRINTING & PUBLICATION :140-063-007: 1 1,157,000 ' 1,649,000 oe8 RENT (OFFICE EOUIPMENT) 1140-063-008, 1 1 1,157,000 I 1,649,000 I9 :DEPARTMENTAL TRAINING 1140-063-009: , I 11,343,000 I 16,169 000 1

I 10 :LIBRARY 1140-063-010, 1 1 5,787,000 I 8,249,000 II 11 1ACCOtMODATION :140-063-011: a : 1,389,000 | 1,980,000

12 :INSURANCE (BANK CHARGES) ,140-063-0121 : 232,0oo, 331, ooo13 :REFUND OF MEDICAL EXPENSES 1140-063-013, 1 232,000 ' 331,000 '14 ,FUEL, LIGHT & WATER :140-063-014, , ' 695,000 ' 991,000

a , a a I a ,a

.................... .................................... ....... --------------. ......................... ..... .. . ... ,.... ... ------------- ------------------------

a , a TOTAL GENERAL EXPENDITURE I 1 32,045,623 ' 15,679,585 23,150,000 a 33,000,000-- --------- --------------------------.....-------------- ---------------- t--- ---- --:--------------- - --- ---- -a a

- 36 -

ANNEX 2-1Page 4 of 5

I I , l ACTUAL ACTUALSUB SUa PROGRAMME ACCOUNT EXPENDITURE EXPENDITURE ESTIMATES ESTIMATES IHEAD,ITEMIITEM: NUMBER 1992 IJAN-JUN 1993 1 1993 1994

(CEDIS) (CEDIS) , (CEDIS) , (CEDIS)

06 NACVET , I 9 ,

| 4 | :'MAINTENANCE, REPAIRS & RENEWAL,140-064-000: , I 9

1 'ROADS & GRO2NDS :140-064-001,, 2,553,460 3,640,0002 :MINOR REPAIRS OF RES. BUILDING:140-064-OOZ: 2,553,460, 3,640,0003 'MINOR REPAIRS OF OFF. BUILDINWG140-064-003: 1,374,940 1,960 000,4 :MINOR REPAIRS OF HOSP\CLINICS ,140-064-004: , -, S MINOR REPAIRS OF SCHS. & COLs.'140-064-005 , 1,571,360 2,240,0006 ;MINOR REPAIRS OF HOUSES & FARM:140-064-006,7 'MTCE OF FURNITURE & FIXTURES '140-064-007' 883,890 1,260,0008 a MTCE OF ECUIPHENT, : ,

:MACHINERY & PLANT 1140-064-008, 883,890 1,260,000

;TOTAL MTCE, REPAIRS & RENEWALS: 10,176,275 1 6,610,440 1 9,821,000 1 14,000,000.... ... . . .. .. ............ ................... ....... ......... -- - - -- - - -- - - -- - - ..----..--------------------.-..----- .., .. ... .. .... ...

5 : SUPPLIES & STORES 140-065-0001 '1 ,SCHOOLS TEXTBOOKS :140-065-001: 1,753,750, 2,500,0002 CHEMS & CONSUMABLE FOR SCH LA9,140-065-002, 5,962,750 8,500,000 3 'LA3 INSTRUMENTS & STORES :140-065-003: 5,962,750 8,500,0004 ,OTHER TEACHING\LEARNING MATS :140-065-004: 10,171,750 14,500,0005 :SPORTS & RECREATIONAL MATS ,140-065-0051 : 8,768,750 12,500,000,6 :FEEDtIG :140-065-006j 2,455,250 3,500,000,

...... --.-.-. --..-.-.-.-.-...-.................................. -------------- -------------- ------------ -- , ;

TOTAL SUPPLIES AND STORES , 1,611,209, 12,037,905, 35,075,000 1 50,000,000,...... T RCRE EPER......E......... .............. ...................... - 7,5--,--7 --- 3---3...... ---- -81,6. 15,2 0 .

, ,TOTAL RECURRENT EXPENOITURE ,' 47,5 75, 717, 38,631,230, 81,65a,ooo ; 115,200,000,==z=zS ===--===-=::======a=====S==S== == =====s==s== ===== =..............................t X t:B3s=

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

PUBLIC INVESTMENT PROGRAM, 1994(in million Cedis)

......................................................................................................................................... ................................................................................................... .....................

I I I I ODA Il EtARTY RESOURCES 1 OTHEu 5URCES Of FNDIN I II I I . . . . . . . . ..- ------------------------- li II I I I I |E I | IET | fOREIGN CGERCIAL OWN DOMESTIC I I| EDUCATION I IPLANNED I SECURED I FTB N IC'PART FUIDS I LENDING SECRED I FTSH | FUNDS | RRMIW1 |t TOTAL| | PROJECT IEXPENDI- I-.------------------------- | --------------------------- ------------------------------------------------------- FIlN-| Exchage Rote USS925.00 Cdls I REt iTURE 19941 FC I LC I FC I LC || FC I LC I FC I LC |L FC I LC I FC I LC I FC I LC I FC I LC || CING I

I I I I I I I 1I I I I 11 I I I I . 1 I 11 1RERAS OF ILD * INFRA OF 2ND |ED 002/86 1 1 I 1 I 1I I I I II I I I I I I IPROV. OF EUIP, FURM. VEHN. ED 003/U | 20001 20001 I 1 II I I I 1I I I I I I I I 11 20001

| INST. DEV. JHR. SEC. SCHOOL |ED 004/UI | 1 1 I II I I I 11 I I I I ICCIL. OF 2D CYCLE SLDGS. ED 005/UI I I I I II I I I 1I I I I I I I I IRENU OF 15T CYCE EDLICINST IED 006/U | 62311 55831 | "US 11 I I I II I I I I I I I 11 62311LOG SLD PtJS OF OTNER INSTS |ED 007/88 2201 I 1 I II | 2201 I 11 I I I I I I I 11 2201

| LOGSSIDG PROJS OF DIP INSTS. ED 008/a I Sol I I I 11 I 801 I 11 I I I I I I I |I 80I| RENA OF INSTS FOM NDICAED IED 009/8 I 2601 I I I 1I | 2601 1 11 I I I I I I I 11 2601

LOGS UrT FtO GW. EDUC SERV |ED Oi/U88 20g1 20351 I I II | 291 I II I I I I I I I 1I 20641| INST. STRENTNEHING OF OE |ED 011/U | 691 I 1 1 1I | 691 1 If I I I I I I I II 691| UNIVERSITY OF GHAMA |ED 013/ I | 4061 I I I II 1 4061 I 11 I I I I I I I II 4061

U IVERSITY OF SCIENCE &TECN |ED 014/U | 2051 I 1 I II | 2051 I II I I I I I I I I 2051| LOIVERSITY OF CAPE COAST |ED 015/U | 3081 I 1 1 II | 3081 I II I I I I I I I II 3061| REHA CONST OF OE CENT.ADMIN lED 016/90 1 2731 I I 1 II | 2731 1 1I I I I I I I I I I 2731

DEV. R TECH. & VOC.EDUCATION |ED 017/90 | 16611 IM9I I I 1I | 3661 1 1I I I I I I I I I 16611| UIVERSITY OF DEV. STUDIES |ED 018/90 I 8641 I I I II I 864 I II I I I I I I I I I 8"4

C ONSTR. OF CW SEC. SCOLS |ED 019/92 | 23401 19401 I I 11 | 4001 I II I I I I I I I 11 23401tUIV. COLLEGE OF ED. - VINNEBA lED 020/93 | 2631 I 1 I II | 2631 I I1 I I I I I I I 1l 2631TERTIARY EDUCATION PROJECT lED 021/93 | 72021 60021 I I II | 12001 j II I I I I I I I II 72021PRIMARY ED. DEV. PROJECT |ED 022/94 | 102421 97421 I I II | 5001 I II I I I I I I I | | 102421

S WSECTOR TOTAL I 20 | 346881 285971 | 6481 II | 54431 I II I I I I I I I || 34688l

|SECTOR TOTAL | 20 | 346881 265971 | 648 1 I | 54431 I I I I I I I I 1| 346881* - ------- ~.........---------. -...................................... Sa-$--s-s ........ x ....... la........... ms---e"-----------------s.-- ... --------------.-.-.-.--

OPc :r-

O>C

210It

U,l

- 38 -ANNEX 2-2Page 1 of 4

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

MINISTRY OF EDUCATION

MINISTRY OF EDUCATION

|MINISTERIAL ADVISORY COMMITTEE|

DEPUTY MINISDM TEPUTY MINISTER

FCIFDIRECTOR

INTERNAL AUDIT|

_ _ _ _ _l I

DIRECTOR PBME DIRECTOR DIRECTOR, STATISTICS DIRECTORDIVISION GENERAL ADM. AND PR. INFORMATION MGT. MANPOWER DEV.

FINANCE DIVISION RESEARCH PERSONNEL POLICY& MGT. DIVISION

DIRECTOR GENERAL SECRETARY GENERAL NATIONAL CO-ORDINATOR OTHER SUBVENTEDSCHOOL EDUCATION HIGHER EDUCATION NON-FORMAL EDUCATION ORGANISATIONSGES) (NCHE) (NFED)

DIRECTION GENERALEPROJECT MANAGEMENT 1. GHANA ACADEMY OFUNIT ARTS & SCIENCES

2. NATIONAL SERVICESECRETARIAT

3. GHANA INSTITUTEOF LANGUAGES

4. GHANA LIBRARYBOARD

5. GHANA NATIONALCOMMISSION FORUNESCO

6. GHANA BOOKDEVELOPMENTCOUNCIL

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

MINISTRY OF EDUCATION PROJECTS MANAGEMENT UNIT

[IISTM IOR BDUCATION

CHIEF DIRECTGR

DIRECTOR GEmRAL

IDIRECTOR OF FIrnUCE

| WCT _R | | PROJECT NY%GR. PRJC X_UM | | CT | |AGE PROJEC MANAGEiSCHO DOCATI0 PF TJIA EWC="On I I..jCY PS OJC=IO1AL SKILLS

~xwusm I lacu lw lox

* Pr-pos-l

e s

REPUBUC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

ORGANIZATIONAL STRUCTUREMINISTRY OF EMPLOYMENT AND SOCIAL WELFARE

| MINISTER National Netskork onEmpioi nieni Capacity

Building

|Deput) Ntjistr | Puty Nf h | NNECB f

Sctor Department [ 1& Statutory Bodie ISector Specialist

Chief Director Committees

-4i

Director Finance/ Director PPARicAdministration I

IDep.Drco Dep. Director |D|tDector Poljr D|p DSlo ior

@X-X~~~~~~~~ LAOR LPOTR

Dtireco *MNSeRLctor ITEEBLMI IAorAnInsru

PAr t Dirxecto RErEr A| UI

ollS)~~~~~~~~~~~A.d PLsru I ' I

MPINIII$IULA1flOOR PORD(lAD) |Dstrict La bofrO ce r | x

ST8ATVITORf BOARlDS 0) Q z~* UE~~~~~AOUR INI$PECTORkTt (D m

Dau Entr Dsta Enrl I * DP} w r X

sarr ~~staff MINlI8ERUALCOOMMITEE8 F LJl t vors rbesor 0

l * ~~PRGIOECTO UIIDERTHE M111111R I hrINDEP DEffTORAMNIAT1OWe S

* DEPUTY DIRECTOR (1NTEIAL AUDRrOI}G OEltERAL COUN1SEL

- 41 - ANNEX 2-2

Page 4 of 4

STRUCTURE, STAFFING, AND FUNCTIONS OFNACVET SECRETARIAT

DIRECTOR(M.V.O. Ceasar)

S ROCT MANAER--------------- -C/UNDP UMBRELLA PROG. T STAEF DR. R. GICHIRA L PROJE(CT

|(r WWlliam Ahadze) DEPUTY DIRECTOR SAFF.(K.A Teye)

-------------------INTERN&L AtMIT

ADMIN SERVICES PROF SERVICES(Sam Aggrey) (R.K. Oguaah)

] ADMINISR^TION| FINANCE MONITORING L CUkRICULUM F | lZXAMINATIONS 7NI TION _ JN_ZVALUAT:N SI-SEARCH |

A.L. Boye John Bamiebo Dr. D. PeAlore a. D.aHmmond F.A. SaidenDavid Sam Albert Menuah James K. Glover Paul Odro J.S. TRcafoH.K. Agyei B.Antwi-Boaiako B. Sigme G.Y.K. YevuViviin AiloLey R-eySylvia Welbeck-Quaye RYvonne Mallet

Functionr

1. Admin of Council 1. Budgeting 1. Planning & 1. Curriculum l. Test AdminMeetincas Programming DevelopmcnC

2. Human Resource 2. DZibursernnt 2. Distribution 2, Research 2.Cmtt EitionDevelopment of Expenditure of Intake

3. Public F_lationj. 3. Expenditure VoucherB 3. Test Dev. 3.A.XreditaLJ.:n4. Personnel Matters 4. Financial 3. Moni.toring L A. ini 4.L1vCen,csL

D. becurity Statement Evaluation 5. Entrepreneurial6. mIt. Cooperatlon 4. Career Gui- Skills Dev.7. Project Admin. dance & CouI1se- 6. Functional8. Loyt6ics lling Skills Dev,9. Transpor. 5. Teacher Edu. &

Instructor Trg.6. Statisticn7. Apprenticeship &

In-plant Trg.

- 42 -ANNEX 2-3

Page 1 of 3

MR. LEWIS T. PRESTONPRESIDENTTHE WORLD BANKWASHINGTON, D.C. 20433

Dear Mr. Preston:

GHANA: Vocational Skills and Informal Sector Support ProjectLetter of Informal Sector Training Development Policy

I write to confirm our determination and commitment to pursuing those policies which withyour assistance, have resulted in positive macro economic changes in our country.

I wish to share with you, govermunent's perspectives on the proposed Vocational Skills andInformal Sector Support Project - a project that is targeted at increasing employment and earnings ofthe large number of educated youth who are dependent on the informal sector for their sustenance.

You should recall that, out of a desire to arrest the decline in the educational system and toimprove the stock of qualified human resources needed for accelerated economic growth, thegovernment of the Provisional National Defence Council (PNDC) launched a system wide programmeof educational reforms. To finance this programme, we have steadily raised education's share ofGovernment's total annual recurrent budget from 35.12% in 1987 to 40.7% in 1994. Donor,including World Bank assistance has also been important.

As a result of this programme, we have made significant improvements in the structure andcontent of education. Pre-university education has been reduced from 17 to 12 years. Nine years of"basic education" consisting of six years primary plus three years of Junior Secondary is beingoffered to all school age children. This is followed by three years of Senior Secondary SchoolEducation. Extensive reform have also been made at the tertiary level.

The Ministry of Education revised the Primary School curriculum and developed a newcurricula for the JSS level. In this new JSS curriculum, theory has been de-emphasized and in itsplace, new practical learning activities responsive to the skill needs of the local environment havebeen introduced. In addition to furnishing a strong base for literacy skills, the new system also seeksto make graduates familiar with using tools and gaining better numeracy skills as well as inculcatingpositive attitudes to hard work and national development.

The reform is making an impact on all sub-sectors of education, as borne out by statisticaldata gathered by the Ministry of Education. Enrollment in primary schools has increased from1,625,137 in 1987/88 to 2,047,293 in 1992/93 - an increase of 26%. The gross enrollment rate at theprimary school level has also grown from 72.6% in 1987/88 to 80.6% in 1992/93; whilst enrollmentin JSS I has increased from 193,079 in 1988/89 to 225,825 in 1992/93 an increase of 16.95%. Dataalso shows that enrollments in JSS 1 to JSS 3 grew at a faster rate in the educationally deprived areasof the country. Ghana Education Service data reveal a steady increase in the absolute numbers ofcandidates who participated in the Basic Education Certificate Examinations between 1990 and 1994.In 1990 a total of 127,522 candidates took the examination. This increased to 149,038 in 1991,165,359 in 1992, 181,824 in 1993 and 198,782 in 1994.

- 43 -ANNEX 2-3Page 2 of 3

While we are making some gains in terms of expanding access especially in the disadvantagedareas, our efforts are being challenged by demographic pressures. Like many other Africancountries, we in Ghana, face an increasingly complex structural employment problem. A growingnumber of young people, especially school leavers, who enter the labour market every year aresearching for modern sector wage employment while all available data show that modern wage sectorsin Ghana cannot absorb more than a small fraction of the youth who enter the labour market.

Government has for some time now devoted increasing attention to the need to reduce the rateof underemployment and unemployment in the towns currently estimated at 13.5 % through theadoption of enabling policy interventions to encourage the rapid growth of the micro- and small-scalesector.

It needs to be further noted that, unlike previous years, government decision to permit privatesector industries to alter the composition of the labour force to reflect the performance of theirestablishment has further reduced the levels and the prospects for wage employment. The expecteddemand for labour in the formal sector over the coming years is likely to be low due to overmanning, coupled with under utilization of capacity.

The Ministry of Education and the Ministry of Employment and Social Welfare have for along time now been involved in preparing youth for the world of work through the provision of pre-employment technical and vocational training. An assessment has however, revealed that forgovernment training institutions to reach larger numbers and adequately prepare youth for self-employment, there is the need to try out new approaches to training.

The traditional informal apprenticeship system has been identified as an effective and marketdriven system by which craftsmen and entrepreneurs acquire skills. Recent evidence has shown thatentrepreneurs, especially in the informal sector, value informal sector apprenticeships above all otherforms of skill acquisition and they consider skill transmission to their apprentices as an integral partof their business. However, these traditional apprenticeship systems are saddled with many problems.For example, in this period of rapid technological advancements, the system still relies on techniquesof production common one or two decades ago.

As the source of over 95% of the skill training in Ghana, the traditional apprenticeship systemneeds to be supported. More so when our estimates show that the informal sector in Ghana mustgenerate 80% of all jobs between now and the year 2020.

Consequently we have, through inter-sectoral consultation, developed a policy to fosterinformal sector growth by up-grading the skills in the traditional apprenticeship system. Under theseproposals a selected number of formal technical and vocational institutions will have their focusredirected so that they are able to offer short (up to 12 weeks) competency based training for mastersand for apprentices with at least 18 months of experience. Trade associations will play a central rolein the new programme by selecting participants for training, identifying the competencies covered inthe short courses, and selecting items to be included in tool and equipment kits sold to masters andapprentices at subsidized prices.

Government will over the coming five years ensure that:

- Some selected public institutions will be directed to reduce their regularenrollments to free facilities and staff time to work on the proposed competency-basedtraining for the informal sector and to re-arrange time-tables to allow for the

- 44 - ANNEX 2-3

Page 3 of 3

simultaneous conduct of the new and the old training programs during the normalschool hours.

Incentives will be provided to private institutions to guarantee that staff and facilitatorswill be made available for the new competency-based courses over the life of theproject and a re-ordering of time-tables to accommodate the new programme alongsidethe old. Training to be provided by private institutions is to be financed partly on afee basis and partly through contractual arrangements with the institutions.

To ensure high levels of participation and sustainability, the project will use the tradeassociations in the implementation and monitoring of the project. Areas in which thetrade associations will be of immense help include selection of master craftsmen andapprentices for training, information dissemination on the labour force needs to thebusiness community, and acting as vehicles of support the development of the microand small enterprise sector.

To ensure sustainability of project concepts Government will promote that activeinvolvement of a number of key institutions in project implementation namely; thePlanning, Budgeting, Monitoring and Evaluation Division of the MOE; the LabourDepartment of the MESW; and the Ghana Statistical Service.

Government will ensure that detailed labour force statistics are collected analyzed, andused, and that there is follow-up of the impact, both of the new short courses and thelong term regular courses.

Government is committed to adapt intakes into regular long-term vocational trainingso that it is more in line with labour force realities. Government is also committed toexpand the short competency based courses being supported by the proposed project ifthese prove to be more effective than the long term courses. A series of meetingswould then be organized to encourage donors and private providers to redirect theirefforts to the short courses.

Government is currently concerned in developing a range of focused competency-based training. New outlines based on existing curricula will be developed through aninterface with master craftsmen, apprentices and some instructors. Before trainingcommences, these outlines will be further reviewed by trade panels to be constitutedunder NACVET and circulated for further comments.

We are hopeful that the proposed project will set in motion a sustainable programme ofInformal Sector growth and an improvement in artisanal skills in the country.

Yours sincerely,

Dr. Kwesi BotchweyMinister of Finance

- 45 -

ANNEX 3-1Page 1 of 4

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

EMPLOYMENT STATISTICS FROM THE GHANA LIVING STANDARD SURVEY

OCCUPATIONAL DISTRIBUTION OF EMPLOYED PERSONSAGE 15+ IN SAMPLE POPULATION, 1992

OCCUPATION NUMBER PLRCENTAGE

PROFESSIONAL, TECHNICAL 357 4.1AND RELATED WORKERS

ADMINISTRATIVE AND 18 0.2

MANAGERIAL WORKERS

CLERICAL AND RELATED 202 2.3

WORKERS

SALES AND RELATED 1284 14.7WORKERS

SERVICE AND RELATED 228 2.6

WORKERS

AGRICULTURAL AND OTHER 5452 62.6

RELATED WORKERS

PRODUCTION AND 1172 13.5

RELATED WORKERS

ALL OCCUPATIONS 8,713 100.0

Prequerncy Migling 6

TOTAL 8, 719

- 46 -

ANNEX 3-1Page 2 of 4

PERCENTAGE DISTRIBUTION OF SAMPLE POPULATION OFINFORMAL/PRIVATE SECTOR WORKERS BY OCCUPATION AND AREA, 1992

Rural Urban All

Occupation

Miner 3.39 2.33 2.80

Metal processor 0.26 0.21 0.23

Wood & paper worker 0.52 1.90 1.29

Chemical processor 0.26 0,12

Textile worker 8.09 1.27 4.32

Tanner 052 1.06 0.52

Food processor 49.61 39.11 43.81

Tobacco worker 0.21 0.12

Tallor 12.27 16.49 14.60

Shoe & leather 0.78 1.69 1.29

Cabinet mkr.woodwk. 2,87 4.02 3.50

Stone cutter 0.52 0.21 0.35

Blacksmith tools 3.39 1.90 2.57

Mechanics 2.61 11.42 7.48

Electrician 2.09 7.61 5.14

Plumber, welder 1.04 2.54 1.87

Jeweller 0.85 0.47

Potter, glazier 1.83 0.82

Rubber, plastic wkr. 0.65 0.47

Construct worker 9.92 0.34 7.94

ALL OCCUPATIONS 100 100 100

Source: GLS, G88

- 47 -

ANNEX 3-1Page 3 of 4

PERCENTAGE DISTRIBUTION OF INFORMAL/PRIVATE SECTOR WORKERSBY REGION AND OCCUPATION, 1992

Western Central a reoter Eastern Volta Aoha'n 0rong Ahefc Nornemn Upper UpperAccra Weot E"t

Oocupsefn

Minor 10.31 105 0.63 2 25 1.48 6.40

Metal proceseot 0.41 1,4a

Wood& paper workor 1.03 1.05 0.41 4.60 3.03

Chemical proceosor 1.03

Textile worker 0.41 2.25 18,84 8.00 7.88 10.17

Tanner 1.86 1.12 1.45 1869

Food processor 44.33 57.89 4481 82.81 42.03 2880 31.82 50.85 50.00 20.00

Tobecco workat 1.12

Tailor 6.19 13.l8 15.77 17.98 13.04 18.15 13.88

Shoe & leather 1.05 0.41 1.12 1.45 4.00 3.03

Cabinet mky.woodwkl. 12.37 1.05 3.73 2.25 4.35 3.03 10.00

Slone cutler 1 .03 0.83

Blacksmith lools 1.03 2.11 0.83 85.2 1 45 0 80 7.51 5.08 20.00

Mechanics 13.40 7.37 9.13 8.82 2.90 O.0 7.58 5t08

ileotrlclen 2.06 4.21 8.71 3.37 2.90 6.40 6.0o

Plumber, weldot 1.03 2.07 1.60 3.03 0.47 10.00

Jeweller 0.63 1.12 1.48

Potter, glazIer 1.0e 10.00 80.00

Rubber, plaste wkr. 1.e8

Coneiruatworker 8.19 10.53 7.47 3.37 7.25 12.00 12.12 5.08

ALLOCCUPATIONS 100.00 100.00 100.00 10000 100.00 100.00 100.00 100.00 100.00 100.00

oruce: 0L86, 066

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

EMPLOYMENT STATISTICS FROM THE GHANA LIVING STANDARD SURVEY

NUMBER OF PAST AND CURRENT APPRENTICES BY TRADE

BEFORE 1992 ANDTRADE 1992 AFTER TOTAL

CARPENTRY 109 44 153MASONRY 80 25 105TAILORING 569 191 760BLACKSMITHING 28 16 44MECHANICS 170 87 257ELECTRONICS 100 24 124SPRAYING 33 7 40OTHER 551 136 687ALL 1640 530 2170 xs

Source: Ghana Living Standard Survey

NUMBER OF APPRENTICES BY TRADE AND BY LENGTH OF TRAINING

- - MONTHS-- ----- YEARS----------------TRADE 3 6 1 2 3 4 5 6 7+ ALL

CARPENTRY 26 5 1 1 1 1 2 7 44MASONRY 13 4 3 2 3 25TRAILORING 102 4 3 6 13 7 5 13 38 191BLACK SMITHING 3 3 4 1 2 1 1 1 16MECHANICS 44 17 3 6 3 1 5 8 87ELECTRONICS 12 3 1 2 1 4 1 24SPRAYING 2 2 1 2 7 OTHER 64 9 5 5 11 3 3 11 25 136 o wALL 266 45 16 16 36 17 11 38 85 530 "

- 49 -

ANNEX 3-2

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

RESULTS OF THE MINIMUMI WAGE SURVEY(May/June 1994)

Region No. of Establishments No. of Establishmentssampled paying 790 Cedis

Greater Accra 37 13

Bron Ahafo 45 37

Ashanti 28 23

Western 28 28

Upper West 9 4

Eastern 13 8

Central 8 4

Upper East 10 8

Volta 2 1

9 Regions 180 126

Coverage: Enterprises involved in this survey employ between 1-5 employees.

- 50 - ANNEX 3-3

Page I of 2REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Statistics of Other Government Skills Training Institutes and Private Technical Institutions

Government and Private Institutes

REGION NUMBER OF NUMBER OF TOTALGOVERNMENT PRIVATEINSTITUTES INSTITUTES

ASHANTI 11 45 56

BRONG-AHAFO 13 9 22

CENTRAL 22 40 62

EASTERN 22 45 67

GREATER ACCRA 21 58 79

NORTHERN 7 1 8

UPPER EAST 10 1 11

UPPER WEST 7 2 9

VOLTA 27 33 60

WESTERN 16 16 32

ALL REGIONS 156 250 406

Government Institutes

REGION GES ICCES NVTI DCD YOUTH & TRANSPORT DSW RATIS/ITTU NST. OF MOA TOTALII_ SPORTS ADULT ED.

ASHANTI 1 4 2 _ 3 _ _ 1 _ - 11BRONG-AHAFO 1 5 2 2 - | 1 13CENTRAL 2 13 3 1 l _ 1 _ I 1 22EASTERN 5 10 1 2 2 l 1 1 - I _ 22GT. ACCRA 3 6 2 2 3 1 2 1 1 - 21NORTEHRN 1 2 1 1 - - - 7UPPER EAST 2 3 - 2 _ 2 1 _ - 10UPPER WEST - Ti 5 1- - - 7

!VOLTA 3 T 17 3 ! 1 2 °_. 27IWESTERN 2 I 6 1 3 1 | 1 l __ 1 _ I 1 16ALL REGIONS 20 1 67 20 i 14 11 i 1 _| 8= 101 j I 4 156

KEY:

GES: GHANA EDUCATION SERVICE Ln

ICCES: INTEGRATED COMMUNITY CENTRES FOR EMPLOYABLE SKILLSNVTI: NATIONAL VOCATIONAL TRAINING INSTITUTEDCD: DEPARTMENT OF COMMUNITY DEVELOPMENTYOUTH AND SPORTS: MINISTRY OF YOUTH AND SPORTSTRANSPORT: MINISTRY OF TRANSPORT AND COMMUNICATIONSDSW: DEPARTMENT OF SOCIAL WELFAREGRATIS/ITTU: 3HANA REGIONAL APPROPRIATE TECHNOLOGY INDUSTRIAL SERVICE/INTERMEDIATE TECHNOLOGY TRANSFER UNITSINST. OF ADULT ED.: INSTITUTE OF ADULT EDUCATIONMOA: MINISTRY OF AGRICULTURE

o

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Statistics on GES Technical Institutes

ist ~YEAR' TOTAL 12ND YEAR ITOTAL 3RD YEAR ~TOTAL ~4TH YEAR TOTAL --PAT- TIME_STUDENT GRAND TOTAL

INSTITUTE - m F m F T M F T M F T M F T

KUMASI 4 14 6 420 342. 2 34 4 338 3 -341 0_ __O 0 0___ I¶214 -3 12 2,322

SUNYANI 38 17 45 25 46 ~271 163 27 19 -16 I0 26 -189 259781.0

ASUANSI 243 0 243 329 0 329 245 0 24 5 0 6 -- 0 081

CAPE-COA -ST ~ 150 0 150 150 0 150 150 0 150- 0 0 0 -I 0 6 - 1685

ABETIFI 55 13 68 40 6 46 34 a 42 0-- 3 o -- 6_____

AKWANA ____ 116 1 17 9 4 96 0 68 6 - 26-028657

ST. JOSEPH 48 14 62 _23 6 29 20 0 20 14 0 ¶4 0 00 125

KOFORiDUA 164 0 1 64 135 0 13 0 0 7 0 4 1 518 _ _96 ¶

ST. PAUL S - .. 1~ 0 161 159 0 159 143 0 4 3 284 0 28-4 531 0 531 1,278

ACCRA ____ 192 1 193 158 1 159- 170 o- ¶f70' 98 0 08 - 858 4 _862 1,482

ACA 90 22 112 72 9 81 52 7 59 ____ 0 ~ 5

TEWA 341_ 30 371 -325 -12 337_7 1- 22 0 0 - 0 6 0 0_ _ 730

SABOBA 47 0 47 28 0- 28 2 0 ~ 27 0 0 0 ___010

BAWKU -- 17 2 10 96 1 97 _80 0__ a( 0 0 0 0-53

BOLGA 1~~~~33 '104 27 94 0 4 65 30 O cO -6 o 0653

HAVE 2iS -- 50. 266 -54 27 81 16 __2 - 28- ¶¶ ¶0 0 039

ANLO0 121 26 147 76 Ti3 91 74 6 80 0 0 _ 0 0 0 0O 318

KPANDO 4 79 51 30 20 45 25 24 3 3 62 29 46- 0 6 3

TAKORADI ~~3 7 0 37 3 0 31 30 0 3003 3' - 0 0

19 0 169 150~ 0-- -150 131 030 0 0 0 04

- 53 -

ANNEX 3-5REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Enrollment in 1994 in the National Vocational Training Institutes

No. Training Centers M F Total

1. KVTC Kumasi 171 3 1742. Titus Glover 56 3 593. Chirapatre - - -4. VTC Domaa 99 5 1045. VTC Yamfo 122 2 1246. VFRC Biriwa 420 83 5037. VTC Gomoa Ada 76 2 788. VTC Winneba 87 2 899. VTC Abetifi 32 181 21310. PTC. Accra 990 4 99411. Pilot Training Center 77 1 7812. VTC, Tamale 113 1 11413. Anglican VTC Zuarungu 88 38 12614. St. Anne VTC Nandom - 256 25615. Nandom PVTC 88 - 8816. St. Basilides VTC, Kaleo 96 3 9917. St. Clares VTC, Tumu 1 87 8818. Canboni, Sogakope 251 124 37519. St. Theresa Vic Abor 38 23 6120. EPTTC, Alavanyo 91 32 12321. Twiga, Tarkwa 26 45 71

Total 3817

a:nvti (ja9O-b)

- 54 -

ANNEX 4-1Page 1 of 5

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Draft Contract Agreement between Ministry of Educationand Trainin, Institutions for the Provision of

Training for Selected Institutions

This Agreement is made the ........... day of .. month and ... ... year,between the Republic of Ghana, through its authorized representative, the Ministry of Education,P.O. Box M45 Accra, (herein after referred to as MOE), and the ......... ............. (herein referredto as institution), represented by its principal, Mr./Mrs ....................... and, if applicable, itsowner, Mr./Mrs .......... whose registered address is:

Whereas the MOE has entered into an agreement with the International Development Association(IDA) to extend a credit to the Republic of Ghana (Vocational Skills and Informal Sector SupportProject), a part of which will be used to finance the costs for the introduction of short-termcompetency based training in selected public and private training institutions throughout the country.

Whereas the MOE has agreed to enter into contract with this training institution represented jointly bythe principal, and, where applicable, its owner.

Whereas the training institution is ready and willing to commit itself to providing the servicerequested by the MOE on the said terms and conditions, non therefore the parties hereto hereby agreeas follows:

Whereas the MOE requests the services of qualified teaching staff and the use of the physical facilitiesof the training institution in the context of the Vocational Skills and Informal Sector Support Project,and on the terms and conditions hereinafter set forth, and

1. OBJECTIVES OF THE AGREEMENT

The primary objective of this short-term training is to improve the skills and competencies of informalsector apprentices and of mastercraftsmen/women in the following selected occupational areas of theinformal sector, namely:

a) electrical installation;b) refrigeration and air conditioning;c) carpentry and joinery;d) dressmaking and tailoring;e) blockmaking and concreting.

- 55 -

ANNEX 4-1Page 2 of 5

Support from the training institution will focus on (a) the provision of short term competency basedtraining programs; and (b) assistance in the provision of tool kits to trainees at the end of eachtraining cycle.

2. OBLIGATIONS OF THE INSTITUTION

The institution shall:

(a) assist in the selection of trainees for the new short-term competency based courses atthe said institution. Any apprentices covered by this project must be in possession ofa NACVET intake voucher printed out in his/her name, and countersigned by his/hermaster. On admittance this voucher should be given to the institution.

(b) undertake short-term competency based training for periods that have been deterninedin consultation with MOE and the respective Trade Associations. These are:

(i) weeks for (course),(ii) weeks for (course),(iii) weeks for (course),

(iv) weeks for (course),

(v) weeks for (course).

Each course shall be open to a maximum of twenty (20) trainees and shall beconducted three times per year beginning _ _ (date). The institution willensure that necessary rehabilitation works will be completed, and that the necessarytraining equipment and materials will be on site prior to the start of the trainingprogram.

(c) make available at all times the services of qualified teaching staff for each course forthe purpose of providing the training described in 2 (a) above, whereby two staff areeach assigned a group of 20 trainees per trade per cycle.

(d) allocate _ hours per day, days per week during each training cycle forcourse instruction.

(e) collect a training fee of 10,000 cedis or any other amount as determined by MOEfrom each trainee and deposit such funds in a dedicated account to cover the cost oftraining materials, and allow the trainees to keep any goods produced with thesematerials.

(f) Store tool kits provided by MOE, in a safe place, and only issue to apprentices whenthey have deposited amounts fixed by MOE from time to time in account -and presented the bank pay slip to the institution.

(g) have the account mentioned in sections (e) and (f) above inspected annually by theMOE.

(h) provide at all times adequate care, servicing, and maintenance of the facilities andequipment provided by the MOE to the institution for the purpose of carrying out thetraining described in 2 (b) above.

- 56 -

ANNEX 4-1Page 3 of 5

(i) provide the training specified in 2 (b) above to those that have been selected by thesaid institution.

(j) deliver the training in accordance with the training course curriculum (and any othertraining support material) provided by MOE.

(k) repay the true and fair value of the support provided by the MOE to the saidinstitution for the rehabilitation and/or extension and equipping of the facilities.Credit towards repayment shall be made on presentation or intake vouchers and otherevidence determined from time to time that will show that a certain number ofapprentices have been trained. Such credit will be determined on the basis of fixedrates established by MOE from time to time. Once repayment has been made in full.MOE will reimburse the cost of training according to the same schedule. Repaymentcan be made through the running of short-courses for apprentices as specified insection (b) above.

(I) allow MOE to inspect without prior notice the training facility, equipment, tools, andtraining materials and to observe the instructional process during workshop hours.

(m) repay the MOE the true and fair value of the total support received by the institutionless the credit earned through the provision of apprentice training should the MOEdeem that this contract is not being fulfilled, or only partly fulfilled, or should theinstitution choose not to continue the said training program under the terms andconditions of this contract.

3. OBLIGATIONS OF MOE

MOE shall:

(a) rehabilitate workshop facilities related to training in any of the five selected tradeswhich the institution has opted to train in the amount of per trade.

(b) provide sets of appropriate equipment to the institutions for the conduct of training.

(c) design and develop short-focussed competency-based curriculum and theaccompanying training materials for the training programmes and have them revisedperiodically in response to changing needs of the direct beneficiaries of training.

(d) train selected staff of the training institutions for the purpose of carrying out the short-term training programme.

(e) maintain and manage the revolving funds generated by each training institutions to beused solely for replenishing tool and equipment kits and for paying for trainingbeyond project life.

(f) monitor and evaluate the work of the training institutions to ensure they maintain thestandard of training.

(g) Carryout tracer studies on a sample of both the apprentices passing through theinstitutes, as well as of graduates of more regular training programmes from the sameinstitutes.

- 57 -ANNEX 4-1Page 4 of 5

(g) undertake any other activity which will promote the efficient achievement of projectobjectives.

4. DURATION OF CONTRACT

This contract is effective from the date of signature by both parties for a period of five years in thefirst instance.

5. RIGHTS AND OBLIGATIONS OF THE TRAINING INSTITUTION

The rights and obligations of the said institution are limited strictly to the terms and conditions of thiscontract.

6. CONFIDENTIALITY

The training institution shall not, either during the term or within two (2) years after the expiration ofthis Contract, disclose to any person, Government or other entity external to the MOE, confidentialinformation relating to the Programme, or any unpublished information made known to the institutionby reason of performing the functions under the terms of this Contract except as required by theassignment or upon authorization by the Ministry of Education. This provision shall survive theexpiration or rescission of the Contract.

7. STANDARDS OF CONDUCT

The training institution shall conduct training at all times with the fullest regard for the purposes andprinciples of the MOE, and in a manner benefitting its relationship with the MOE under this Contract.

8. FAIRNESS AND GOOD FAITH

8.1 Good Faith

The Parties undertake to act in good faith with respect to each other's rights under this Contract andto adopt all reasonable measures to ensure the realization of the objectives of this Contract.

The Parties shall use their best effort to settle amicably all disputes arising out of or in connectionwith this Contract or the interpretation thereof.

9. SETTLEMENT OF DISPUTES

9.1 Amicable Settlement

The Parties shall use the best effort to settle amicably all disputes arising out of, or in connectionwith, this Contract or the interpretation thereof.

9.2 Right to Arbitration

Any dispute between the Parties as to matters arising pursuant to this Contract which cannot be settledamicably within thirty (30) days after receipt by one Party of the other Party's request for suchamicable settlement may be submitted by either Party to arbitration in accordance with the ArbitrationAct of 1960.

- 58 -

ANNEX 4-1Page 5 of 5

10. TERMINATION OF CONTRACT

This Contract may be terminated before the proposed date of termination after giving ninety (90) daysnotice from either party in writing. When the contract is terminated, the conditions specified insection 2 (e,f,k,l, and m) of the Obligations of the Institution shall prevail.

IN WITNESS WHEREOF, the Parties confirm to adhere to all details of this Contract, and to causethis Contract to be signed in their respective names as of the day, month and year first above written.

11. AMENDMENT

Amendments to the agreement shall be in writing and signed by both parties.

12. NOTICES

All correspondence relating to the execution of the agreement shall be sent to the addressesindicated in the preamble to this agreement.

For and on behalf of the Institution For and on behalf of theMOE

Name:

Address:

In the presence of In the presence of

Name: ..................................

Title:Address: ..........................

a:contract (ja9O-b)

- 59 -ANNEX 4-2Page 1 of 2

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

ELIGIBILITY CRITERIA FOR INSTITUTIONS TO BE SUPPORTED

The following conditions must exist before a public or private institution can beconsidered for participation within the project.

- The existence of an appropriate number of informal sector workshopswithin the locality of the institution to ensure demand for apprenticetraining for at least four years.

- Evidence of staff experienced in teaching practical sills.

- Ability to dedicate an appropriate workshop for each type of trade trainingto be provided to apprentices sponsored by the project.

- Ability to rehabilitate, where necessary, any or all dedicated workshops toappropriate standards for no more than 10,000,000 cedis for public schoolsand 3,000,000 cedis for private schools in each trade offered, for whichcredit will be available from the project, excepting that institution's ownfunds shall be used beyond this amount to achieve appropriate standards.

lThe ability to provide utilities and secure storage for any equipment thatmay be provided within the project.

Willingness to participate fully in the project and to comply withprocedures and requirements of the project, including the inspection of theinstitute and its staff at any time before or during the period of participationwithin the project, including the inspection of the instructional process.

An institution will be accepted to take part in the project and will be authorized tobegin providing training when it has:

- signed a contract agreement with the MOE;

demonstrated a willingness to comply with procedures and requirements ofthe project,

provided evidence of staff able to teach practical skills within each trade tobe offered;

- 60 -ANNEX 4-2Page 2 of 2

rehabilitated dedicated training workshop(s) to an appropriate standard;

installed and commissioned equipment and provided secure storage and asecure lending system for tools provided within the project,

only distributed tool kits to the trainees on completion of their courses andpresentation of evidence that they have paid the due amount in full.

collaborated with local master craftsmen and their associations to identifygroups of approximately twenty apprentices or twenty master craftsmen tobe trained during the first cycle of training; and only admitted those withintake vouchers.

An institution will maintain its participation within the project so long as itcontinues to:

provide quality practical training in keeping with the curriculum provided inthe quality specified in the contract;

- maintain the dedicated workshop at an appropriate standard,

- maintain equipment and tools in good working condition;

- maintain secure storage and a secure lending system for tools,

- kept good and reliable records of the tool and equipment kits and onlyreleased such kits when full evidence of payment of all outstandingamounts is made;

provide appropriate consumable for each cycle of each trade course;

only accept apprentices and/or master craftsmen with intake vouchers fortraining in the particular field;

allow comprehensive inspection of the dedicated training space(s),equipment, tools, systems, and instruction with or without notice.

The continuing participation of an institution may be denied if inspection revealsthat any of the conditions described above are not maintained. Participation may bediscontinued for an entire institution or for a single trade training program, and may berestored when deficiencies are corrected.

AF4A:\NICHOLA5.DOCMarch 7, 1995 5:20 PM

- 61 -

ANNEX 4-3

Page 1 of 3

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

INSTITUTIONS SELECTED TO PROVIDE TRAINING

Introduction. During project preparation, a number of training institutions wereevaluated for their ability to meet project objectives. These institutions were grouped by ownership(Government, NGO, and private) and occupational area. In addition, KATTC was selected toprovide technical teacher training, and MDPI was selected to conduct the business managementportion of the Masters Training Program.

Government Institutions. Fourteen Government institutions were selected toprovide training in each of the five trades representing approximately 53% of the anticipatedapprentice enrollment. Of these schools, the Technical Institutes were selected to also providetechnical training for the master craftsmen and women. Although for the most part, schools wereselected on the basis of existing faculty expertise in the subject areas and the condition of existingfacilities and equipment, these criteria could not be applied in all cases for refrigeration and airconditioning. For this reason, four schools will be teaching this subject for the first time withassistance from NACVET, GES and the Trade Associations.

NGO and Private Institutions. Twenty-six NGO and private institutions were alsoselected to provide training in each of the five trades based upon the same criteria used to select theGovernment institutions. These institutions will conduct courses for the remaining 47% of theanticipated apprentice enrollment. Also due to lack of prior experience with refrigeration and airconditioning courses, four of these schools will be teaching this subject for the first time withassistance from NACVET, GES and the Trade Associations.

KATTC. Because of its unique status as a technical teacher training institution,KATTC was selected to conduct short training courses for all instructors in the program. Themain facility in Kumasi will be used for those instructors living within a reasonable travelingdistance, with the remaining instructors being served at various locations around the country. Inthis regard, off-campus instruction will be led by KATTC staff at training institutions that havebeen selected to participate in the program.

MDPI. Due in part to its experience with similar training under the TRP 1 andTRP2 projects, business management training will be conducted by MDPI at its Aecra and Kumasilocations. Off-campus instruction will also be conducted at selected sites around the country whenit is deemed more efficient and cost effective.

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

INSTITUTIONS SELECTED TO PROVIDE TRAINING

NO. TRA._G____T_TUT__ El RAC CJ DT BC

*non 1: GovefwnmentI TechnW Institute, Terru x R x x x2 kofoidua Technical Institute. K'djm x x x3 St.Padl's Tech. bt., Kukurantu x R x x4 KpanduTech. inst.. Kpwndu x R x x5 Coast Toch. nst., C Coast x R x R x6 r.adiTech. hst.. Takac x x7 Tec. i.Suy x x x8 Tedncal situts, awku x . x x9 lPit Trinmg Came, Accra x x x x C10 r Voc. Trmbn Centre, Tarrie x x11 tre for Rural Industry, S& - s12 Tech. Trg. Cenr.Accra x x x x13 siTch. hist., Kuwna x x x x14 btiIomen s Trg Centre. adinh AR . x

ColBon2:PtjySt wn NGOsis dCml c-, Tedhrical hstut, Surnyaif x A16 nbWomns VocCsnresor -. x17 IMCA Voc Trg hst., Cape Coast . x18 Technl nstiute, Kuan x x19 Rgs rVoc IrW., Kursi .x x

20 Pacal Voc kst., Nandom . x . x21 StA's Voc bst., Nndomn . . x .22 Girls' Voc. hst., Accra . . x .-23 CAVoc.Trg. Cere, Accra . x K .24 BetmB ette's Voc. Int. Nd.wongo x R .25 onboniVoc. Tro. Centre, Soy _ -_ -_ I

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

INSTITUTIONS SELECTED TO PROVIDE TRAINING(continued)

NO. [ TRAINING INSTITUTION El RAC |SCJ DT BC

26 oyal Technical Irstitute, Nungua x R R x27 Son Technical Insktte, Somanya x R x x28 hstinut o1 Technology, Hohoo x . x29 nst Adv Radio & Tdecotn, Kuuasi x x .30 Gom and Sons Ltd., Taniale x R .31 of Dom Sc & Cateing, Ktotbabi, Accra x -

32 ity Educ. Conmlex. Kufuemsi x a33 Gids' Voc. Inst., Kurms . . x34 Sp.citCawing and Voc. lnt., Tom x35 War. Girls' Voc hnst., Kuma" x36 Vocatioral Inst., Twls

- x37 sewige Centr, Accra - x38 Gis' Voc. Sch., Achiota AR - x39 Voc. 3, Tech. Trg Coe.n Accra . x x,40 vc Sc., Tesh:_. ., A x_

dswW: 0 -T Dresurin and TJ lringEl -Eberii 4 Cotaiation BC - mloclaying end ConcretirgR4AC Rdri*'estion and Air Conditonirlg x - on-going, 20 trames per class for projectCJ - Carp try and Join" WoodwoIk Ft 'recornmmnded, 20 tranees pw clas for pfoject

(rtTI

- 64 -

ANNEX 4-4

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

REQUIRED NUMBER OF TRAINING HOURS PER TRADE

Course TitLe Duration ScheduLe by WeeksHours 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Apprentices:

Refrigeration/ 360 x - x - x - x - x - x - x - x - x - x - x - x -Air Conditioning

Electricat Installation 360 x x x x x x x x x x x x x x xCarpentry/Joinery 360 x - x - x - x - x - A - x - - A x - x - x -Blocktaying/Concrete 180 x x x x x x x x x x x xDressmaking/TaiLoring 360 x x x x x x x x x x x x

Masters:Refrigeration/ 120 x x x x x x

Air ConditioningElectricaL Installation 72 x x x x x xCarpentry/Joinery 180 x - x - x - x - x - x -

BLockLaying/Concrete 120 x x x x x x x xDressmaking/TaiLoring 144 x x x x x x x x x x x x

Instructors:AUl Courses 60 x x

WEEKLY SCHEDULES

Apprentices:Refrigeration/Air Conditioning 6 hours per day x 5 days per week a 30 hoursELectricaL Installation 6 hours per day x 4 days per week a 24 hoursCarpentry/Joinery 6 hours per day x 5 days per week z 30 hoursBLockLaying/Concrete 3 hours per day x 5 days per week = 15 hoursDressmaking/TaiLoring 6 hours per day x 5 days per week - 30 hours

Masters:Refrigeration/Air Conditioning 5 hours per day x 4 days per week - 20 hoursElectricaL InstaLLation 3 hours per day x 4 days per week - 12 hoursCarpentry/Joinery 6 hours per day x 5 days per week - 30 hoursBLocklaying/Concrete 3 hours per day x 5 days per week = 15 hoursDressmaking/Tailoring 4 hours per day x 3 days per week a 12 hours

Instructors:All Courses 6 hours per day x 5 days per week * 30 hours

- 65 -ANNEX 4-5

Page 1 of 3

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

DESCRIPTION OF THE TRAINING PROGRAM

Introduction. The apprenticeship system has played a historic role in thedevelopment of the industrialized nations. In earlier times, this process of passing skills andknowledge from one generation to another occurred solely in the workplace as master craftsmenand women taught their apprentices on the job. During this century however, with the increasingcomplexity of technology and greater market demand for quality and cost efficiencies, thedeveloped countries have sought to improve the apprenticeship process by combining it with formalinstruction conducted at vocational training institutions. Thus today, it is quite common indeveloped countries for apprentices to attend training programs on a released time basis duringworking or non-working hours in order to focus on skills and knowledge which may be difficult toobtain on the job.

In parallel with the apprenticeship trends noted above, the advances in technologyand increasing global competition have placed additional strains upon the ability of mastercraftsmen and women to keep up with the latest techniques of their trade and modem businesspractices. For this reason, the developed countries have for many years encouraged short coursesfor masters in support of the various trades and small scale enterprises. The successful experiencewith the above types of training assistance to apprentices and masters has formed the basis for thetraining program supported by this project.

Apprenticeship Training. As shown by the example of the Carpentry and JoineryProgram the five apprenticeship training courses supported by this project will focus entirely uponthe strengthening and development of everyday skills needed in the workplace. To accomplish this,the following guidelines will be applied:

a. Course Content. Course content will be determined through joint consultationbetween the trade associations, the training providers, and NACVET. Coursemodules will focus upon the explanation and demonstration of specific skilldevelopment exercises that will, through their sequential integration with otherexercises, lead to greater productivity, quality and efficiency in the apprentices'work outputs. Depending upon the trade, it is expected that at least 60% to 75%of the course will be devoted to practical work performed by the apprentices underthe supervision of their instructors. Wherever possible, the practical exercises willbe centered around the design, planning, and completion of a work projectencompassing most of the skills required in the course, thus simulating theproduction process as it is found in the workplace. Theory, written exercises, andtraditional lecture presentations will only be applied when and where they aredirectly related to the acquisition of skills needed on the job. In addition,instruction will be given on the basic principles of small scale business operations.

- 66 -

ANNEX 4-5Page 2 of 3

b. Instructional Methodoloy. At the beginning of each course, the trainees will begiven a series of practical exercises to determine their individual skill levels. Thiswill permit better grouping for instructional purposes, and will provide abenchmark to measure progress during the course. The primary method ofinstruction will encompass (i) an explanation of the work process, (ii) presentationof any directly related theory, (iii) presentation of all necessary tools andequipment, (iv) planning and design, and (v) demonstration of the process. Theapprentices will proceed to carry out the various work processes under thesupervision of the instructor. Throughout these exercises, the instructor willemphasize work quality, accuracy, and the efficient use of time and materials.

c. Trainee Evaluation. While there will be no pass or fail requirements for thesecourses, apprentices will be assessed by the quality of their project work. At theend of the course, instructors will review individual progress made during thecourse and advise the apprentices on areas of skill strengths and/or weaknesses.The instructors will also provide guidance and counseling for follow up skilldevelopment when the apprentices return to their employers.

d. Course Scheduling. Courses will vary in scheduling and duration according to thereleased time requirements of the apprentices' employers and the ability of thetraining providers to adapt their schedules. These courses will vary from 180 to360 hours of instruction over periods ranging from 12 to 24 weeks. Thisscheduling represents an initial agreement between all parties, but may be subjectto modifications as required by changing conditions and/or experience.

Master Training. As shown in the example of the Carpentry and Joinery Programfor Masters the five masters training courses supported by this project will focus upon (i) the betteruse of existing technologies, (ii) new technologies, and (iii) business management operations.Thus, skill development will be a lesser part of these programs, with greater emphasis onproduction systems and techniques, and entrepreneurial principles. To accomplish this, thefollowing guidelines will be applied:

a. Course Content. Course content will be determined through joint consultationbetween the trade associations, the training institutions, and NACVET. Thetraining will be divided into two sessions. The technical sessions will beconducted at the Government owned Technical Institutes, while the businessmanagement sessions will be conducted by MDPI in Accra and at other locationsaround the country. Technical course content will focus on the explanation anddemonstration of new and existing technologies with emphasis upon betterproduction techniques, quality control, cost estimates, and overall workshopefficiency. Business management course content will focus upon basicaccounting, domestic and export marketing, contract management, workshopsupervision, and relevant laws and regulations.

b. Instructional Methodology. The method of instruction for the technical sessionswill encompass (i) the explanation of various technologies and productiontechniques, (ii) prevention of relevant theory, (iii) presentation of the necessary

- 67 -

ANNEX 4-5Page 3 of 3

tools and equipment, (iv) design, planning and estimation of work, and (v)demonstration of the processes. The masters will then perform practice exercisesto become acquainted with the various processes, but due to time constraints, willnot necessarily become proficient at them. The method of instruction for thebusiness management sessions will encompass (i) lecture presentations, (ii)seminar discussions, (iii) practice exercises, (iv) case studies, and (v) field visits tolocal enterprises.

c. Trainee Evaluation. As with the Apprentice Training Program, there will be nopass or fail requirements for these courses. At the end of the course, theinstructors will conduct evaluation sessions with each group to determine keyareas of interest and future business plans and/or changes that the masters intendto carry out as a result of the program.

d. Course Scheduling. The courses will vary in scheduling and duration according tothe time the masters can spare from their businesses and the ability of the trainingproviders to adapt their schedules. These courses will vary from 72 to 180 hoursof instruction over periods ranging from 6 to 12 weeks. This schedulingrepresents an initial agreement between all parties, but may be subject tomodifications as required by changing conditions and/or experience.

e. Instructor Training. In order to improve and standardize the delivery of thevarious courses, instructor training will be supported by the project, and carriedout by KATTC. The content of this training will be determined through jointconsultations between the Trade Associations, the training providers, NACVET,and KATTC, and will focus solely upon the content and methodology of trainingfor the apprentices and masters. The instructor trainees will work in groups todevelop the instructional materials and practice the delivery of the course modules.Because of their various backgrounds (ie; technical instructors and masters), it isanticipated that a good mix of technical concepts and practical applications will beintegrated into the program. This training will be conducted at KATTC and atother locations around the country during two week sessions.

f. Enrollment Targets. The enrollment breakdown for the various trades and theinstructor training. During the first year of the project, 5 10 instructors will betrained. During the second through the sixth years of the project, 20,400apprentices and 4,500 masters are expected to be trained.

- 68 -

ANNEX 4-6

GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

IMPLEMENTATION PLANS - TARGETS OF NUMBERS OF TRAINEES BY TRADE

TRAINING ACTIVITIES ENROLLMENT

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 TotalA. Apprentices:Electrical Installation - 340 1020 1020 1020 680 4080Refrigeration and Air Cond. - 260 780 780 780 520 3120Carpentry and Joinery - 360 1080 1080 1080 720 4320Dressmaking and Tailoring - 400 1200 1200 1200 800 4800Blockmaking and Masonry - 340 1020 1020 1020 680 4080Total - 1700 5100 5100 5100 3400 20400

B. Mastercraftsmen & women:Electrical Installation - 200 200 200 200 100 900Refrigeration and Air Cond. - 170 170 170 120 70 700Carpentry and Joinery - 210 210 210 210 110 950Dressmaking and Tailoring - 230 230 23C 230 130 1050Blockmaking and Masonry - 200 200 200 200 100 900Total - 1010 1010 1010 960 510 4500

C. Instructor training:Electrical Installation 68 - 34 - - - 102Refrigeration and Air Cond. 52 - 26 - - - 78Carpentry and Joinery 64 - 44 - - - 108Dressmaking and Tailoring 80 - 40 - - - 120Blockmaking and Masonry 68 - 34 - - - 102Total 332 - 178 - - - 510

GRAND TOTAL (A+B+CI 664 2710 6110 6110 6060 3910 25564

- 69 -

ANNEX 4-7

Page I of 2

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

OPPORTUNITY COSTS OF TRAINING OF APPRENTICES AND MASTERS

Successful improvements in workplace productivity can only occur when skilled workersare provided with the necessary tools and equipment to perform their jobs. For this reason, theproject will provide apprentices and masters with certain basic tools and equipment which will bedistributed by the schools upon completion of the training. In order to keep costs within affordablelimits, the composition of the trainee tool kits has been designed in such a way that total costs willnot exceed the trainees' ability to pav plus the opportunity costs of their time away from work.These costs have been determined in consultation with the Trade Associations and as shown in thefollowing tables, they will vary between the trades. In addition to the basic tool kits, apprenticesand masters will have the opportunity to obtain optional tools and equipment at full cost.

- 70 -

ANNEX 4-7Page 2 of 2

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

OPPORTUNITY COSTS OF TRAINING OF APPRENTICES AND MASTERS

Table A.: Basic KiU (amount In C)

Apprentice Muster

WilliSgnwa Opportunity Total Wiliingnwa Opportunity Totalto Pay co" to Pay cost

R.fngeritlon 100,000 120,00 220,000 2S0,000 144,000 394,000and Air Cood. _

Blectrical 75,000 108,000 183,000 200,000 64,100 264,800Installation

Carpentry and 75,000 120,000 195.000 200,000 180,000 380,000Joinery

Block and 25,000 45,000 70,000 100,000 90,000 190,000Cannting _ _ .______

Dreuawking 7S,000 60,000 135,000 300,000 109,000 408,000In Tailorn__

Table B.: Optional Higher Cost Items (amount in C)

Apprentic Mastcri

100,000 500,000Refrigeration and Air Cond.

75,000 400,000Electrical Installation

75,000 400,000Carpentry and Jolnery _

25,000 200,000Block and Cementing

75,000 600,000Dresmaking and Tailoring

- 71 -

ANNEX 4-8

Page 1 of 4

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR PROJECT

ProDosed Equipment Kit Content for Agmrentices and Mastersand Optional Items

1 CARPENTRY AND JOINERY1.1 Apprentices1.1.1 Standard List

Tape Measure 16,000.00Handsaw with Blades 30,000.00Oilstone 15,000.00Folding Rule 15,000.00Nail Punch (set) 15,000.00Rebate Plane (set) 50,000.00Try Square 15,000.00Chisel (set) 30,000.00Plumb Line 6,000.00

192,000.00

1.1.2 Optional ToolsTenon Saw 25,000.00Claw Hammer 20,000.00Frames Square 25,000.00Jack Plane (set) 50,000.00Smooth Plane (set) 50,000.00Brace and Bits 50,000.00Portable Spray Gun 80,000.00

300,000.00

1.2 Mastercraftsmen1.21 Standard Kit

Rebate Plane (set) 50,000.00Smooth Plane (set) 50,000.00Jack Plane (set) 50,000.00Claw Hammer 20,000.00Chisel (set) 30,000.00Brace and Bits 50,000.00Portable Spray Gun 80,000.00Portable Drill 30,000.00Clamps 20,000.00

380,000.00

1.2.2 Optional ToolsPortable Circular Saw 260,000.00Portable Router 240,000.00Portable Orbital Sander 280,000.00Portable Belt Sander 275,000.00Portable Jig Saw 240,000.00

1,295,000.00

- 72 -

ANNEX 4-8Page 2 of 4

2 DRESSMAKING AND TAILORING2.1 Apprentices2.2.1 Standard Kit

Sewing Maching (hand) 50,000.00Tracing Wheel 2,000.00Electric Iron 10,000.00Ironing Board 10,000.00Cutting out Scissors 10,000.00Pinking Shears 10,000.00Trimming Scissors 2,000.00Tape Measure 4,000.00Thimble 2,000.00Button Hole Punch 30,000.00Needles 5,000.00

135,000.00

2.2 Mastercraftsmen2.21 Standard Kit

Knitting Machine 250,000.00Button Cover Machine 125,000.00

375,000.00

2.2.2 Optional ToolsOverlook Machine 380,000.00

3 REFRIGERATION AND AIRCONDITIONING3.1 Apprentices3.1.1 Standard Kit

Tube Cutter 25,000.00Flaring Tool 35,000.00Tube Bender 35,000.00Dial Thermometer 20,000.00Spanner (set) 30,000.00Nut Driver (set) 40,000.00Tin Snipes 25,000.00Voltage Tester 10,000.00

220,000.003.1.2 Optional Tools

Pop Rivet Gun 50,000.00Brazing Torch 30,000.00Tape Measure 16,000.00

96,000.00

3.2 Mastercraftsmen3.21 Standard Kit

Pop Rivet Gun 50,000.00Tube Cutter 25,000.00Flaring Tool 35,000.00Tube Bender 35,000.00Spanner (set) 30,000.00

- 73 -ANNEX 4-8Page 3 of 4

Nut Driver (set) 40,000.00

Tin Snipes 25,000.00

Brazing Torch 30,000.00Service Manifold 125,000.00

395,000.00

3.2.2 Optional ToolsGas Welding Equipment 500,000.00Refrigeration Gas Repair Kit 160,000.00Refrigeration Service Socket 200,000.00Blue Bottle 200,000.00Air Compressor 450,000.00

1,510,000.00

4 ELECTRICAL INSTALLATION

4.1 Apprentices4.1.1 Standard Kit

Hacksaw and Blade 30,000.00Cold Chisel 15,000.00Screw Driver (set) 25,000.00Neon Tester 5,000.00Side Cutter 10,000.00

Long Nose Plier 20,000.00

Combination Plier 20,000.00Ballpein Hammer 20,000.00

Gimlet 10,000.00Soldering Iron 25,000.00

180,000.00

4.1.2 Optional ToolsTube Cutter 25,000.00

Blow Lamp 25,000.00Smouldering Iron (65m) 25,000.00

Rawl Plug (set) 20,000.00Avometer 75,000.00Polarity Tester 75,000.00

Insulation Tester 75,000.00Twist Drill (set) 50,000.00

370,000.00

4.2 Mastercraftsmen4.2.1 Standard Kit

Pipe Bender (manual) 100,000.00Extension Ladder 100,000.00Twist Drill (set) 50,000.00

Side Cutter 10,000.00Neon Tester 5,000.00

265,000.00

4.2.2 Optional ToolsHand Drill (Electric) 100,000.00Insulation Tester 75,000.00

- 74 -

ANNEX 4-8Page 4 of 4

Polarity Tester 75,000.00Avometer 75,000.00Megger Tester 500,000.00Digital Multi-Tester 100,000.00Clamp Multi-Tester 100,000.00

1,025,000.00

5 BLOCKMAKING AND CONCRETING5.1 Apprentices5.1.1 Standard Kits

Builders Square 6,000.00Claw Hammer 15,000.00Brick Hammer 20,000.00Brick Trowel 8,000.00Float 5,000.00Steel Tape 10,000.00Plugging Chisel 6,000.00

70,000.00

5.1.2 Optional ToolsWire Cutter 25,000.00Bricklayers' Line Pins 20,000.00Pointing Trowel 10,000,00Sledge Hammer 20,000.00Pickaxe 6,000.00Shovel 6,000.00Spade 6,000.00

93,000.00

5.2 Mastercraftsmen5.2.1 Standard Kit

Builders' Square 8,000.00Brick Hammer 20,000.00Pickaxe 6,000.00Shovel 6,000.00Spade 6,000.00Plugging Chisel 6,000.00Brick Trowel 10,000.00Pointing Trowel 10,000.00Float 5,000.00Bricklayers' Line Pins 20,000.00Plumb Bulb 6,000.00Steel Tape 10,000.00Wheelbarrow 35,000.00Builder's Sieve 45,000.00

193,000.00

5.2.2 Optional ToolsWater Tank 100,000.00Steel Block Mould 100,000.00

200,000.00

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Expenditure Accounts by Financiers(USS)

LocaLThe Government IDA TRAINEES Total For. (ExcL. Duties &

Amount % Amount % Amount % Amount % Exch. Taxes) Taxes

I. Investment CostsA. Civil Works

1. RehabiLitation 95,196.4 10.0 856,767.3 90.0 - 951,963.6 7.7 380,785.5 543,931.7 27,246.52. Extension 8,896.8 10.0 80,071.2 90.0 - - 88968.0 0.7 35,587.2 48,932. 4.448.4Subtotal Civil Works 104,093.2 10.0 936,838.5 90.0 - - 1,040,932 8.4 416,372.7 592,864.1 31,694.9

B. Equipment, Vehicles and Furniture1. Workshops Equipment - - 854,568.8 100.0 - - 854,568.8 6.9 854,568.8 - -2. Office Equipment 17,068.4 10.0 153,615.7 90.0 - - 170,684.1 1.4 102,410.5 51,205.2 17,068.43. Tool Kits for Trainees 612,664.9 10.0 3,908,512 63.8 1,605,473 26.2 6,126,649 49.5 4,901,319 612,664.9 612,664.94. VehicLes - - 254515.6 100.0 - - 254,5156 2.1 254,515.6 - -Subtotal Equipment, Vehicles and Furniture 629,733.3 8.5 5,171,212 69.8 1,605,473 21.7 7,406,418 59 .8 6,112,814 663,870.1 629,733.3C. Training and Materials1. Training Fees for Trainees (Apprentices) 122,487.8 11.0 768,963.5 69.2 219,634.2 19.8 1,111,085 9.0 - 1,111,085 -2. Training of Mastercraftsmen/Women 27,148.7 3.7 677,580.6 92.6 26,823.6 3.7 731,552.9 5.9 - 731,552.9 -3. Staff Training - - 420,405.9 100.0 - - 420,405.9 3.4 - 420405.9-SubtotaL Training and Materials 149,636.5 6.6 1,866,950 82.5 246,457.8 10.9 2,263,044 18.3 - 2,263,044

D. Field AlLowances - - 79,071.8 100.0 - - 79,071.8 0.6 - 79,071.8 -E. Honorarium - - 57,795.7 100.0 - - 57,795.7 0.5 - 57,795.7 -F. Technical Assistance, Studies and Surveys1. Technical Assistance

Local Consultants - - 421,976.0 100.0 - - 421,976.0 3.4 - 421,976.0 -SaLary of Contract Staff - - 30,377.0 100.0 - - 30,377.0 0.2 - 30,377.0 -Foreign ConsuLtants - - 146,806.2 100.0 - - 146806.2 1.2 46,717.2 100,089.0 -Subtotal TechnicaL Assistance - - 599,159.2 100.0 - - 599,159.2 4.8 46,717.2 552,442.1

2. Studies and Surveys - - 121407.4 100.0 - - 121,407.4 1.0 - 121,407.4 -_ISubtotal TechnicaL Assistance, Studies and Surveys - - 720566.7 100.0 - - 720,566. 5.86 .2 673849.5 -TotaL Investment Costs 883,463.0 7.6 8,832,434 76.4 1,851,930 16.0 11,567,828 93.4 6,575,904 4,330,495 661,428.211. Recurrent CostsA. IncrementaL Recurrent Costs

1. Vehicles Maintenance and Operating Costs 29,286.0 10.0 263,574.1 90.0 - - 292,860.1 2.4 - 292,860.1 -2. Equipment Maintenance and Operating Costs 10,749.6 10.0 96,746.0 90.0 - - 107,495.6 0.9 - 107,495.6 -3. Office SuppLies 11,669.0 10.0 105,021.3 90.0 - - 116,690.3 0.9 - 116,690.3 -4. Distribution of Tool Kits 29,888.5 10.0 268.996.4 90.0 - - 8884.9 2.4 - 298884.-TotaL Recurrent Costs 81,593.1 10.0 734,337.8 90.0 - - 815930.9 6.6 - 815930.9 -TotaL Disbursement 965,056.1 7.8 9,566,772 77.3 1,851,930 15.0 12,383,758 100.0 6,575,904 5,146,426 661,428.2

Fri Feb 17 16:12:24 1995

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1-1 Expenditure Accounts by Financiers

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Project Cost Surmary

% % Total(Cedis) (USS) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

A. PROVISION OF TRAINING1. PROVISION OF TRAINING FOR APPRENTICES 2,189,178,000 3,618,140,000 5,807,318,000 2,189,178 3,618,140 5,807,318 62 552. PROVISION OF TRAINING FOR MASTERCRAFTSMEN/WOMEN 1,023.404,000 1,483.616,000 2,507,020,000 1.023,404 1,483.616 2.507,020 59 24

Subtotal PROVISION OF TRAINING 3,212,582,000 5,101,756,000 8,314,338,000 3,212,582 5,101,756 8,314,338 61 78B. INSTITUTIONAL FRAMEWORK

1. TECHNICAL IMPLEMENTATION (NACVET) 577,010,000 234,760,000 811,770,000 577,010.0 234,760.0 811,770.0 29 82. STRENGTHENING OF PLANNING, BUDGETING, MONITORING & EVALUATION (PBME) 251,690,000 63,200,000 314,890,000 251,690.0 63,200.0 314,890.0 20 33. PROJECTS MANAGEMENT UNIT 489,905.000 78,200,000 568,105,000 489,905.0 78,200.0 568,105.0 14 5

Subtotal INSTITUTIONAL FRAMEWORK 1,318,605,000 376,160,000 1,694,765,000 1,318,605 376,160.0 1,694,765 22 16C. LABOR FORCE DATA BASE 466,780,000 131,780.000 598,560.000 466,780.0 131,780.0 598,560.0 22 6Total BASELINE COSTS 4,997,967,000 5,609,696,000 10,607,663,000 4,997,967 5,609,696 10,607,663 53 100Physical Contingencies 410,471,950 556,569,600 967,041,550 410,472.0 556,569.6 967,041.5 58 9Price Contingencies 1,388,752,360 1,448,463,092 2,837.215,451 399.415.6 409,638.3 809.053.9 51 8

Total PROJECT COSTS 6,797,191,310 7,614,728,692 14,411,920,001 5,807,855 6,575,904 12,383,758 53 117

Wed Jan 18 13:29:53 1995

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41

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REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Project Cost Summary

% X Total(Cedis) (USS) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

1. Investment CostsA. Civil Works

1. Rehabilitation 510,000,000 340,000,000 850,000,000 510,000.0 340,000.0 850,000.0 40 82. Extension 48.000.000 32000.000 80.000.000 48,000.0 32,000.0 80 000.0 40 1Subtotal Civil Works 558,000,000 372,000,000 930,000,000 558,000.0 372,000.0 930,000.0 40 9B. Equipment, Vehicles and Furniture

1. Workshops Equipment - 768,428,000 768,428,000 - 768,428.0 768,428.0 100 72. Office Equipment 60,960,000 91,440,000 152,400,000 60,960.0 91,440.0 152,400.0 60 13. Tool Kits for Trainees 1,026,332,000 4,105,328,000 5,131,660,000 1,026,332 4,105,328 5,131,660 80 484. Vehictes - 228.500.000 228.500.000 - 228,500.0 228.500.0 100 2Subtotal Equipment, Vehicles and Furniture 1,087,292,000 5,193,696,000 6,280,988,000 1,087,292 5,193,696 6,280,988 83 59C. Training and Materiats1. Training Fees for Trainees (Apprentices) 924,000,000 - 924,000,000 924,000.0 - 924,000.0 - 92. Training of Mastercraftsmen/Women 607,500,000 - 607,500,000 607,500.0 607,500.0 - 63. Staff Training 363.450.000 - 363.450.000 363450.0 - 363450.0 - 3Subtotal Training and Materials 1,894,950,000 - 1,894,950,000 1,894,950 - 1,894,950 - 18D. Field Allowances 69,555,000 - 69,555,000 69,555.0 - 69,555.0 - 1E. Honorarium 53,670,000 - 53,670,000 53,670.0 53,670.0 - 1

F. Technical Assistance, Studies and Surveys1. Technical Assistance

Local Consultants 396,900,000 - 396,900,000 396,900.0 - 396,900.0 - 4Salary of Contract Staff 28,200,000 - 28,200,000 28,200.0 - 28,200.0 -Foreign Consultants 99.000,000 44,000.000 143.000.000 99.000.0 44.000.0 143.000.0 31 1Subtotal Technical Assistance 524,100,000 44,000,000 568,100,000 524,100.0 44,000.0 568,100.0 8 52. Studies and Surveys 106.000.000 - 106.000,000 106 000.0 - 106 000.0 - 1Subtotal TechnicaL Assistance, Studies and Surveys 630.100,000 44,000,000 674.100,000 630 100.0 44,000.0 674.100.0 7 6Total Investment Costs 4,293,567,000 5,609,696,000 9,903,263,000 4,293,567 5,609,696 9,903,263 57 93II. Recurrent Costs

A. Incremental Recurrent Costs1. Vehicles Maintenance and Operating Costs 257,600,000 - 257,600,000 257,600.0 - 257,600.0 - 22. Equipment Maintenance and Operating Costs 94,800,000 - 94,800,000 94,800.0 - 94,800.0 - 13. Office Supplies 103,000,000 - 103,000,000 103,000.0 - 103,000.0 - 14. Distribution of Tool Kits 249.000,000 - 249.000.000 249000.0 - 49,000.0 - 2Total Recurrent Costs 704.400.000 - 704.400,000 704,400.0 - 704,400.0 - 7Total BASELINE COSTS 4,997,967,000 5,609,696,000 10,607,663,000 4,997,967 5,609,696 10,607,663 53 100Physical Contingencies 410,471,950 556,569,600 967,041,550 410,472.0 556,569.6 967,041.6 58 9Price Contingencies 1,388.752.360 1,448,463.092 2.837,215,451 399,415.6 409638.3 809.053. 51 8Total PROJECT COSTS 6,797,191,310 7,614,728,692 14,411,920,001 5,807,855 6,575,904 12,383,758 53 117

Wed Jan 18 13:30:03 1995

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REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Expenditure Accounts by Components - Totals Including Contingencies(USS)

INSTITUTIONAL FRAMEWORKSTRENGTHENINGOF PLANNING,

PROVISION OF TRAINING BUDGETING,PROVISION OF PROVISION OF TECHNICAL MONITORING & PROJECTS LABORTRAINING FOR TRAINING FOR IMPLEMENTATION EVALUATION MANAGEMENT FORCEAPPRENTICES MASTERCRAFTSMEN/WOMEN (NACVET) (PBME) UNIT DATA BASE Total

I. Investment CostsA. Civil Works

1. Rehabilitation 544,929.0 - 338,972.9 - - 68,061.7 951,963.62. Extension 88.968.0 - - - 88968.0

Subtotal Civil Works 633,897.0 - 338,972.9 - - 68,061.7 1,040,932B. Equipment, Vehicles and Furniture

1. Workshops Equipment 854,568.8 - - - - - 854,568.82. Office Equipment - - 33,895.2 24,466.2 24,689.2 87,633.5 170,684.13. Tool Kits for Trainees 3,938,316 2,188,334 - - - - 6,126,6494. Vehicles -__ - 58.941.3 55.605.0 72.687.2 67 282.0 254,515.6

Subtotal Equipment, Vehicles and Furniture 4,792,884 2,188,334 92,836.5 80,071.2 97,376.4 154,915.5 7,406,418C. Training and Materials

1. Training Fees for Trainees (Apprentices) 1,111,085 - - - - - 1,111,0852. Training of Mastercraftsmien/Women - 731,552.9 - - - - 731,552.93. Staff Training 72.136.7 - 158.681.7 42.509.7 61.663.4 85.414.3 420.405.9

Subtotal Training and Materials 1,183,222 731,552.9 158,681.7 42,509.7 61,663.4 85,414.3 2,263,044D. Field Allowances - 41,120.9 15,808.2 11,233.0 10,909.7 79,071.8E. Honorarium - 43,764.4 14,031.3 - - 57,795.7F. Technical Assistance, Studies and Surveys

1. Technical AssistanceLocal Consultants 53,587.0 76,827.0 219,546.2 72,015.8 421,976.0Salary of Contract Staff - - - 23,237.7 7,139.3 30,377.0Foreign Consultants - - 46.717.2 33.363.0 - 66 726.0 146.806.2

Subtotal Technical Assistance - 100,304.2 110,190.0 242,783.9 145,881.1 599,159.22. Studies and Surveys - - - - 64.246.2 57,161.2 121.407.4

Subtotal Technical Assistance, Studies and Surveys - - 100.304.2 110.190.0 307.030.1 203,042.4 720.566.Total Investment Costs 6,610,004 2,919,886 775,680.7 262,610.3 477,303.0 522,343.6 11,567,82811. Recurrent Costs

A. Incremental Recurrent Costs1. Vehicles Maintenance and Operating Costs - 66,535.6 57,161.2 94,853.8 74,309.6 292,860.12. Equipment Maintenance and Operating Costs - 33,888.4 13,637.0 20,333.0 39,637.2 107,495.63. Office Supplies - 33,888.4 13,555.3 40,666.0 28,580.6 116,690.34. Distribution of Tool Kits 245.304.6 53.580.3 - - - - 298.884.

Total Recurrent Costs 245.304.6 53.580.3 134,312.3 84,353.6 155.852.8 14815930.9Total PROJECT COSTS 6,855,308 2,973,467 909,992.9 346,963.9 633,155.8 664,871.0 12,383, 758

Taxes 425,526.4 218,833.4 20,338.2 2,446.6 2,468.9 12,166.4 681,779.9Foreign Exchange 4,258,780 1,750,667 261,584.8 70,284.7 87,500.7 147,086.8 6,575,904

Wed Jan 18 13:30:50 1995

01

REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

PROJECT PERFORMANCE INDICATORSPROJECT OBJECTIVES

Narrativo Statemont - Objectvely Venfiable Indicators Means d Venfication Assumptions

F'ROJECT OBJECTrVES

1. To improve the capacity of private and 1 Existence of training programnes in Monitoring Reports 1. lnstitLuions wiN remain committed to thepublic training institutions to run short the seleced training institutions programrmescompetency-bored training prograrnres Field visits

2 Well-run andwell-patronised short MOE issues policy on TVET reonentationcourses in the training insttutiofs being implenented

MOE Polcy on Peorien on of Trade Assocaionswillcontinueto showTVET toNards short competenc nteres in the programmebased programmes

2. To improve the level of technical/ 1. Improved product quality 1 Inforrmal s9ctor market survey 1 The right type of equpnnent and toolswvilIentreprneurneL skits of nmslercraftsmen be usedand apprentices in the IS Divertfcation of prcudct types ExhibitionslFars

on the market Good qLaity baining materils wil be used

3. To help create new businesses and improwe 1 Number of new busnessse created 1 Tracer Studies 1. Effective monitoring and tracoer studesexisting micro and sranl inorrrial sector by beneficianes of trainees wil be doneenterprises 2. Monitoring Reports

I Icrea sng returns on investment to Mastercraftsrnen will be wilting to dierloseMastercratarren 3. Supervsion Missins financial returns

4. Firancil Peports of MSEs

4. To improve the teaching or practical sklos 1 Teachers attending orientation and 1. Review of records of orientabot 1. Teacherawil b ewiling to teach practical Skilsin the Technical & Voca tor-rt Institutions upgrading programrres orgrnised courses in which they have competnce

under this Project2. Monhoring Reports . Curricukum ofbred Iapproprkb for leaching

Improved qualfty of teaching of pracbcal skillspractcal skills 3. Products o tainees and

mastercraftsn|n|

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REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

PROJECT PERFORMANCE INDICATORSPROJECT GOALS

Narraiw Stalvrtement Obgecbvivy Venfhable Iricators eans d Vnlicaton Asmjrrntho__

PROJECT GOALS

1. To prcmcte the dopyner of the winormal 1 Gradal growh d the informral Moritoring Reports The gorrrnnet wgl tormnaLt pdcis

sector Ihrough tr ining coriribution to national dowelopmnent that will f obr the grwth d the2 Mid-Term Proecd Evwlustion inoransl sectrr

2. hnped emporrenl sector Iswith 2. Gownmsnt wil rerrain corenitted tobetter emplyment pos and 3. Proqect Caorwtion Peport reoarenlng technical tIining toArds amnagasd arnings through comstncy - brd and darnsnd drlwn ni- imrowwd product qualily . Tracer Studiesand "

I- imrproed e9taepmneurship skils o

2. To provrd an enabling *envrorimnt for 1 . LwIs of go-mrmrn firnchI AnalysI of gawrnnurt budgetenlonrrent creaton and incrome geneatio for inforrrel sector traiing and and other statemensInhth microndrsdrallonrpies sector job a.A4ornacUllas

2. Overall nprtongt in efriancyprdirability sad productiMty ofMSE opraorm

Cli D

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REPUBLIC OF GHANAVOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

PROJECT PERFORMANCE INDICATORSPROJECT OUTPUTS

Narrative Summary Implementation Schedule Means of Verification Assumptions

TRAINING ACTIVITIESEnrollment

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 TotalA. Apprentices:Electrical Installation - 340 1020 1020 1020 680 4080 1. Training records in 1. A class size of 20 apprentices per trade area

Refrigeration and Air Cond. - 260 780 780 780 520 3120 selected institutions. is maintained.

Carpentry and Joinery - 360 1080 1080 1080 720 4320Dressmaking and Tailoring - 400 1200 1200 1200 800 4800 2. Supervision mission 2. Three training cycles per year are conducted in each

Blockmaking and Masonry - 340 1020 1020 1020 680 4080 reports. trade area, except in year 2.

Total - 1700 5100 5100 5100 3400 204003. Training is conducted in accordance with the

B. Mastercraftsmen & women: specified time.

Electrical Installation - 200 200 200 200 100 900Refrigeration and Air Cond. - 170 170 170 120 70 700 4. Both technical and managerial courses will be

Carpentry and Joinery - 210 210 210 210 110 950 mounted for Master Craftsmen.

Dressmaking and Tailoring - 230 230 230 230 130 1050Blockmaking and Masonry - 200 200 200 200 100 900Total - 1010 1010 1010 960 510 4500

C. Instructor training:Electrical Installation 68 - 34 - - - 102 1. Training data from Kumasi 1. An orientation course of 3 weeks duration will be

Refrigeration and Air Cond. 52 - 26 - - - 78 Advanced Technical organized for instructors.

Carpentry and Joinery 64 - 44 - - - 108 Teachers Center.

Dressmaking and Tailoring 80 - 40 - - - 120 2. Training evaluation reports. 2. An upgrading course will be run for one-half of

Blockmaking and Masonry 68 - 34 - - - 102 instructors in the 3rd year of proect.

Total 332 - 178 - - - 510 3. Monitoring reports.

GRANDTOTAL(A+B+C) 664 2710 6110 6110 6060 3910 25564 a

Lno l0h

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ANNEX 5-2Page 1 of 2

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Supervision Plan and Mid-Term Evaluation Criteria

1. Bank Supervision Input into Key Activities

The table in this annex describes regular supervision. In addition, specific tasks suchas the review of progress reports, terms of reference, annual plans, audits, procurement anddisbursement actions, correspondence, etc. are estimated to require 12 staffweeks during the first yearand 8 staffweeks of various specialists per subsequent year. The supervision of each component,including the review of procurement decisions and of progress reports, will be carried out by the taskmanager and procurement specialist under the responsibility of AF4PH.

2. Borrower's Contribution to Supervision

(a) Semi-annual Progress reports would be submitted [dates to be filled in] of each projectyear by the Projects Management Unit of the Ministry of Education. They wouldinclude a summary of implementation under each project component, financialstatements on project expenditures, updated project implementation and records ofcontract advertising, bidding, and awards with indications of methods of procurement.

(b) An implementation review workshop, convened by the Director General, PMU/MOE,with the participation of the various technical units (NACVET, PBME, MESW,public and private institutions, Trade Associations), including IDA, will be heldannually of each project year. The workshop would be based on: (i) the progress inproject implementation which for the purpose of the annual review, would alsoinclude an annual work program and estimated budget for the next period; (ii) thestatus of performance indicators; and (iii) will update the Implementation Manual toreflect status of project implementation.

(c) A joint Government/IDA mid-term review will be carried out at an appropriate timebetween July and December 1997 to (i) assess overall progress made in implementingproject development and performance objectives; (ii) assess the effectiveness of theimplementing agencies and other key players (see para. 2 (b) above) in executing thephysical and technical implementation of the project; (iii) verify the continued validityof the project design and assumptions in the light of implementation experience andresponse to the training programs (demand-driven training programs); and (iv) decideand commit to necessary adjustments in project objectives, design or performance.This interim evaluation of the project will also decide on the quantity and nature ofthe inputs that remain to be financed under the project. The Government willprepare, two months ahead of time, a report required for a comprehensive mid-termreview.

(d) The Director General of the PMUIMOE, in collaboration with the NACVETexecutive director, will be responsible for coordinating arrangements for IDA supervision

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ANNEX 5-2Page 2 of 2

missions and participating in the mission with them. Each mission will consist of abriefing and a wrap-up meetings hosted by the Minister of Education that will includeheads of the project implementing agencies, and other relevant services.

(e) Imlplementation Completion Report. Within six months of the Credit closing date, anevaluation report on the project prepared in accordance with terms of referencesatisfactory to IDA, would be transmitted to IDA.

- 84 -

REPUIBLIC OF GHANA ANNEX 5-3

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT Page 1 of 2

Procurement and Disbursement Schedules

Procurement Implementation Schedule/Estimated Annual Contractual and Other Payments

Project YearPre- -------------------------- - - - - Total

Project Element Project FY96 FY97 FY98 FY99 FY00 FY01 Payment Remarks

- ------ -(US5$ Million Equivalent)---------Credit Timing

Sign/Effec/Close* 1***

1. Works

Prequal/Bid/Award xxxxxx xxxxxx1.1 Rehabilitation 0.756 0.285 1.041 LCB

xxxxxxxxxxxxxxxxxxSubtotal 1 0.756 0.285 1.041

2. Goods

2.1 Workshops Equipment for 0.855 0.855 ICBTraining Institutions xxxxxxxnx

2.2 Office Equipment and Furniture 0.133 0.031 0.004 0.003 0.171 LCBxXxxxx)uucxxxxxxxxxXxxx)uaxxxxxxxxxxx

2.3 Tool Kits for Trainees 1.114 1.403 1.357 1.367 0.884 6.125 ICBxxxxxxxxxxxxxxxJcxxxxxxxxxxxxxxxxxxx,o*xxxnxxxx

2.4 Vehicles, Motorcycles 0.237 0.017 0.254 ICE/and Bicycles xxxxxxxxxxxxxxxxxx Local Shopping

Subtotal 2 1.225 1.162 1.407 1.36 1.367 0.884 7.405

3. Consultancies

3.1 Project Supervision andImplementation andMonitoring support 0.207 0.106 0.072 0.097 0.059 0.058 0.599 Other

xxxx,xxxxxxxxxxCxxxxXxxxxx,oxxxxxnxxxxxxxxxx,oooocjooooa3.2 Institutional Development 0.006 0.012 0.035 0.012 0.019 0.037 0.121 Other

,ucxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxnxxxx,ocxxx,ouax

Subtotal 3 0.213 0 118 0.107 0.109 0.078 0.095 0.720

4. Training

4.1 Local Training/Workshops 0.142 0.209 0.543 0.458 0.511 0.379 2.242 Otherxxxxxx)xxxxxxxXucxxxxx,uuxxx,ucxxxxxxxxnxx,ucxxxxxxxxxxxx

4.2 Training Abroad 0.00 0.014 0.007 0.021 Otherxxxxxxxxxxxxxxxxxxxx,xxxxxxxx,axxxx,cxxx,uoooo

Subtotal 4 0.142 0.223 0.550 0.458 0.511 0.379 2.263

5. Miscellaneous

5.1 Field Allowances 0.008 0.012 0.014 0.015 0.015 0.015 0.060 Otherxxxxxxxxxxxxxxx,oxxxxxxxxxxxxxxxxx

5.2 Honorarium 0.008 0.010 0.010 0.009 0.010 0.010 0.057 Otherx~xxnuucxxxxxxx,uxxxxxxxxxxxxxxxxxxxxxjooooXXcxxnooouonc

Subtotal 5 0.016 0.022 0.024 0.024 0.025 0.025 0.137 0.000

6. Incremental Recurrent CoSts 0.038 0.126 0.167 0.172 0.175 0.138 0.816 Local

------------------------ xxxxxxxxxxxxxxxxxxxxxxxxxucxxxxxx~xxxxaxxx)x,ouooooooox Shopping

Subtotal 6 0.038 0.126 0.167 0.172 0.175 0.138 0.816

TOTAL 2 .3 90 1.936 2 .2 55 2 .12 3 2 .156 1.521 12 .3 84IDA-financing (2.4) (1.8) (2.0) (1.3) (1.2) (0.9) (9.6)

Note: Totals may not add up due to rounding.

a:procvoc (rk-5)

_ _ b_ _ __WA Fro m

CA FcM SectoAIDA sorYewa NW eV Semese CamuiutI Plejmc p.u0

_ MS N S d (Us tMOIV%

19e6 1 1.2 1.2 12.5% 0.0%2 1.2 2.4 25.0% 6.0% 10

1997 1 0.9 3.3 34.4% 10.0% 8- 42 0.9 4.2 43.8% 14.0% EX

1996 1 1.0 5.2 54.2% 22.0% 62 1.0 6.2 64.6% 30.0% 1

19" 1 0.7 6.9 71.9% 38.0% 42 0.6 7.5 78.1% 58.0% 2

2000 1 0.6 6.1 94.4% 50.0%2 0.6 8.7 90.6% 66.0% 0

X r-. 0 0a_ 2001 1 0.5 9.2 95.8% 74.0% CD 0 00 0 8 Q Q2 0.4 9.6 100.0% 86.0% _2002 1

90.0% Fiscal Yews2 94.0%

2003 1 98.0% | Project Profile -4-Regional Profile2

100.0%

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REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Implementation Schedule of the Physical Infrastructure Component

(Month/Year)

A. Civil Works (LCB)

Bank's

Draft Bidding Response Contract

Bidding Documents Bid on Eval. Awards Contract Rehabilitation Rehabilitation

_Typ-e -of _______ itie-s-- Documents Completed Openinq Report Completed Siqned Started Completed

Apr. Est. Mar. 95 Apr. 95 Jun. 95 Aug. 95 Aug. 95 Oct. 95 Nov. 95 Apr. 96

Rehabilitation ------- --- ------------------------------- ----------------- … -------------------------------------- -- … -…-------------------------------------

of Training

Institutions Actual

Apr. Est. Jun. 95 Jul. 95 Sept. 95 Nov. 95 Dec. 95 Jan. 96 Mar. 96 Oct. 96

Office Block for

NACVET Actual X

Rehabilitation of Apr. Est. Mar. 95 Apr. 95 Jun. 95 Aug. 95 Aug. 95 Oct. 95 Nov. 95 Jan. 96

Employment --- -- -- - -- -- -- --- -- -- __ _ _ _ _ __ _ _ t _ __ _ _ _ _ ---------------- -- ------------ ----- ------------------ ----------------- ------------------ -----------------

Information

Bureau (EIB) Actual

Rehabilitation of Apr. Est. Aug. 95 Sept. 95 Nov. 95 Jan. 96 Jan. 96 Feb. 96 Mar. 96 May 96

Five Central Pre- …-- ----- --- - ------------------------------------------------------------------------------------------------------------- …--------------------

liminary and

Processing Centers Actual

a: a6 (ja9O-b) 18-Nov-94

oQz

Ln0 lF" 41

Implementation Schedule of the Physical Infrastructure Component(Month/Year)

B. Goods

o '"'"""""'"""""''''""""''''-'".. .. .. ......... '"'

..~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ ....''' '' .....-SL .

-T-Y- f: Dd-: t: C I: : . -.

Workshops Apr. Est. Mar. 95 Apr. 95 Jun. 95 Oct. 95 Nov. 95 Dec. 95 Mar. 96Equipment for- ------------TrainingInstitutions (ICB) Actual

Apr. Est. May. 95 'Jun. 95 Jul. 95 Aug. 95 Sept. 95 Oct. 95 Dec. 95….-- --------- ----------------------- -------------------- ------------------- ----------------- ----------------- ----------------- --------------------------

OfficeEquipment (LCB) Actual

(first batch) Apr. 95 May. 95 Jul. 95 Sept. 95 Oct. 95 Nov. 95 Starting 03/1996Apr. Est. Ending 11/2000

Tool Kits forTrainees a/ (ICB) Actual

Apr. Est. Dec. 94 Jan. 95 May 95 Jun. 95 Jul. 95 Sept. 95

Vehicles (ICB) Actual Nov. 94 _

>P z

a/ This procurement will be repeated annually over a four-year period.

: g

a: goods (ja90-b) 03-Mar-95

- 88 -

REPUBLIC OF GHANA

VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT

Documents in Project File

1. Government of Ghana Proposal for a Vocational and Informal Sector Support Project-August 1994

2. List of Equipment Available in Participatory Institutions and their Status by selectedTrades

3. Fully Elaborated and Costed Labor Force Database System Proposal

4. Draft Law Establishing NACVET

5. Report on Seminar With Beneficiaries

6. Report on the Pilot Program for the Training of Post JSS Apprentices in Technicaland Vocational Courses for self employment

7. Skill Acquisition and work in Micro Enterprises - Recent Evidence from West Africa

8. Development Policies and Institutional Environment for Employment Promotion in theInformal Sector in Ghana, JASPA, ILO

9. Strategies for Achieving Economic Growth through Micro and small EnterpriseDevelopment in Ghana, MESW

10. Government of Ghana. Survey of the Existing Physical Infrastructure of SelectedVocational and Technical Institutes of (a) Southern Sector and (b) Northern Sector

11. Republic of Ghana. Vocational Skills and Informal Sector Support Project. ProjectImplementation Manual

a:doc (ja9O-b)

MAP SECTION

IBRD 2674

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