Document of The World Bank FOR OFFICIAL USE ONLY Report No. 16180 IMPLEMENTATION COMPLETION REPORT DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A SECOND VOCATIONAL TRAINING PROJECT (Credit 1698-CE) December 19, 1996 Population and Human Resources Division Country Department 1 South Asia Region This document has a restricted distribution and may be used by recipients only in the perfornance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 16180
IMPLEMENTATION COMPLETION REPORT
DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA
FOR A
SECOND VOCATIONAL TRAINING PROJECT(Credit 1698-CE)
December 19, 1996
Population and Human Resources DivisionCountry Department 1South Asia Region
This document has a restricted distribution and may be used by recipients only in the perfornance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
Currency Unit = SLRupees (Rs)US$1.00 = Rs 50.0 (January 1996)
FISCAL YEAR (FY) and ACADEMIC YEAR(Govermnent of Sri Lanka )
January 1 - December 31
PRINCIPAL ACRONYMS USED
CITP Construction Industry Training ProjectDCA Development Credit AgreementGTZ Deutsche Gesellschaft fuer Technische
ZusammenarbeitGDP Gross domestic productGNP Gross national productGOSL Government of Sri LankaICTAD Institute for Construction Training and
DevelopmentICB International Competitive BiddingIDA International Development AssociationILO International Labor OrganizationMEHE Ministry of Education and Higher EducationMOFP = Ministry of Finance and PlanningNCCASL National Construction Contractors Association of
Sri LankaNAITA National Apprenticeship and Industrial Training
AuthorityNCB National Competitive BiddingOUSL Open University of Sri LankaPCU Project Coordination UnitSDR = Special Drawing RightsSEC = State Engineering CorporationUNDP = United Nations Development ProgramUDA Urban Development Authority
Vice President J. WoodDirector M. NishimizuDivision Chief B. HerzTask Managers A. Aime and M. Allak
FOR OFFICIAL USE ONLY
TABLE OF CONTENTS
PREFACE jage
EVALUATION SUMMARY
Introduction iProject Objectives iImplementation Experience and Results iOther Donor Inputs ivOther Project Features ivCost Recovery vSustainablity of the Project and Future Operations vKey Lessons Learned vi
Part I- Project Implementation Assessment
A. Background 1B. Project Objectives and Description 2C. Linkages to the First Vocational Project 3D. Achievement of Objectives and Factors Affecting the Project 4
Component 1: Institutional Development 5Component 2: Skill Training 5Component 3: Management Training 7Component 4: Instructor Training 7Component 5: Monitoring and Evaluation 7
E. Other Donor Inputs 8F. Studies 8G Other Activities 9H. Cost Recovery 9I. Project Sustainability 10J. Evaluation of Program Objectives 11K. Bank Performance 12L. Borrower Performance 12M. Future Operations 13N. Key Lessons Learned 13
Part II- Statistical and Data Tables
Table I Summary of AssessmentTable 2 IDA Credits Relevant to the ProjectTable 3 Project TimetableTable 4 Credit Disbursements: Cumulative, Estimated and Actual
This document has a restricted distribution and may be used by recipients only in the performance of theirofficial duties. Its contents may not otherwise be disclosed without World Bank authorization.
Table 5 Key Indicators for Project ImplementationTable 6 Project Targets and AchievementsTable 7 Studies Included in the ProjectTable 8-A Project CostsTable 8-B Project FinancingTable 9 Status of Legal CovenantsTable 10 Bank Resources: Staff InputsTable 11 Bank Resources: MissionsTable 12 Summary of Technical Assistance and Consultants Used
Annexes
1. Mission's Aide-Memoire (with Operation Plan)2. Borrower's Contribution to ICR
Miscellaneous Attachments
A List of Institutions where Tools Equipment were SuppliedB List of National and Provincial Seminars Used to Disseminate New
TechnologyC Overview of the Role of the National Association of Construction
Contractors of Sri LankaD Summary of Construction Norms and Tendering
Procedures/documentation Standardized Through ICTADE List of Fellowships Awarded by the ProjectF Construction and Rehabilitation Works Carried Out by ICTAD
Map: No. 28407
IMPLEMENTATION COMPLETION REPORT
Democratic Socialist Reiublic of Sri Lanka
Second Vocational Trainin2 Proiect(Credit 1698-CE)
PREFACE
This is the Implementation Completion Report (ICR) for the Second Vocational TrainingProject in the Democratic Socialist Republic of Sri Lanka for which a credit in the amountof SDR 10.0 million (US$ 15.0 equivalent) was a approved on May 5, 1986 and madeeffective on April 4, 1987.
The Credit was closed on June 30, 1996 with one year extension of the project closingdate with SDR 10.0 million (US$ 15.0 equivalent) disbursed. The project was cofinancedby a UNDP/ILO technical assistance component for US$3.5 million from 1987 to 1992.The final disbursement was approved on November 21, 1996 and all the Credit funds wereexpended with an undisbursed balance of zero.
The ICR was prepared by Messrs. M. Allak, A. Aime and Ms. S. Vedamuthu with theassistance from Ms. R. Serrano (SAIPH) of South Asia Region. Peer reviewers wereMessrs. G. Sinclair, B. Parvez, and J. Bregman. The report was reviewed by Ms. L.Lowenstein (SAl CO), Ms. V. Abraham (LOAAS), Messrs. Singh/Litvak (SASVP), J.Socknat (ASTHR), and by the Environmental Division (ASTEN). The report was alsoreviewed by Mr. P. Blay, Acting Division Chief, and Mr. H. Gassner, Acting ProjectAdvisor. The borrower provided comments on the draft ICR and its own evaluation ofthe project is included in Annex 2 of the ICR.
The preparation of this ICR was begun during the Bank's final supervision mission in May1996 and is based, inter alia, on the Staff Appraisal Report (Report No.5958-CE), theCredit Agreement, supervision reports, correspondence between IDA and the Borrower,and internal IDA memoranda.
IMPLEMENTATION COMPLETION REPORT
Democratic Socialist Republic of Sri Lanka
Second Vocational Training Proiect(Credit 1698-CE)
EVALUATION SUMMARY
Introduction
1. This was the second project financed by International Development Association(IDA) in the vocational training sector in the Democratic Socialist Republic of Sri Lanka.The project was designed to complement the first vocational training project (Credit 1130-CE) and to address the increasing local and foreign demand of skilled manpower in theconstruction industry. The aims of the project were to: (i) create and upgrade aninstitutional framework to sustain training and industry development efforts started underCredit 1130-CE; (ii) increase the supply of semi-skilled, skilled, and managerial personnelto the industry; and (iii) improve the quality of manpower supplied to the sector. Theproject implementation was successful and achievements met and surpassed the targets setduring preparation
Proiect Obiectives
2. Project objectives were to:
(i) establish the Institute for Construction Industry Training and Development(ICTAD) and support an intensive management training program;(ii) increase the supply of skilled and semi-skilled workers for constructionindustry through training in construction related trades and workers certification;(iii) support an extensive training programs for managers and supervisors of allgrades in the public and private sectors;(iv) increase the number of qualified skill trades and management instructors inorder to improve the quality of construction training;(v) support the establishment of a system for monitoring project inputs (financialand material) and outputs (trainees) in a an up-to-date and timely manner throughconducting training needs assessment studies and tracer studies.(vi) institute a cost recovery system in vocational training for the constructiontrades through the fees, the sale of trainee products and services and other incomegenerating activities.
Imiplementation Experience and Results
3. The project objectives were complementary to the first vocational training projectand in line with the evolving sector's needs. The project took advantage of initial capacity
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building and lessons learned from the first project. The project was designed for eightyears. Its effectiveness was delayed by one year. The delay in effectiveness was due to thelengthy process it took to clear the UNDP financed technical assistance component. Theclosing date was extended by one year, based on the delay in project effectiveness andsome interruptions due to political disturbances. The credit amount was reduced in 1994from SDR 13 million to SDR 10 million due to large currency fluctuation of the Rupeecombined with accrued SDR and lower training costs. The provisions of the DevelopmentCredit Agreement have been complied with, with only minor amendments. Theimplementation reports show an impressive achievements over the project period in theareas of institutional development, training activities, training links to industry needs, costrecovery, and sustainability that has met or surpassed the project targets. Theimplementation results of each project component are outlined below:
Component 1 - Institutional Development
4. ICTAD was established in the first year as a semi autonomous authority. Itsheadquarters and workshops at the training centers were built and fully equipped withmodem facilities. ICTAD's organizational chart and cadre were finalized and qualifiedstaff was appointed. During the project period, ICTAD's embarked on an intensive staffdevelopment program that involved 28 foreign and 194 local experts and 106 foreign and255 local training fellowships. Such an investment had considerable returns as it upgradedthe staff and management skills and provided them with wide exposure on latesttechnology and operation techniques that were applied during project implementation.Such training and international exposures increased the staff horizons enabling them toundertake important cost recovery measures and to prepare ICTAD's sustainablity planfor 1996-2000.
Component 2 - Skill Training
5. To increase the supply of semi-skilled, skilled and managerial personnel to theconstruction industry, ICTAD trained over 71,000 new and 51,000 existing workers inconstruction related crafts (142 percent and 196 percent of the project targetrespectively). ICTAD used updated training modules, with 70 percent of the coursesoffered in existing government training centers and 30 percent in NGO and private sectorcenters. That flexible approach allowed training to be undertaken at lower costs withcoverage in all parts of the country. The delivery of courses was based on annualconstruction industry surveys and special regional needs identified by the constructionindustry. Tracer studies showed that 80 percent of the trainees usually found employmentcontrary to a range of 20 to 60 percent in other national vocational/technical programs. Inaddition, workers' salary increased substantially after training, for example, the salary ofthe heavy machinery operator increases by 166 percent after training. ICTAD providedcareer counseling and facilitated workers integration in the labor market.
6. As for trade testing and upgrading, the appraisal target of 40,000 workers wasreviewed in 1994 by IDA and the Government and was found to be unrealistic in respectto the type and level of trade testing. ICTAD and its partner agency (NAITA) has
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managed to test only 23,900 workers representing 60% of the original target. Mainproblems were insufficient incentives for domestic construction workers to seekcertification and the low passing rate of those who were tested (50%). Emphasis wasmade on "bridge" training of employed craftsmen to upgrade the skills required in thetrade testing in order to improve the pass rate. ICTAD established an outreach programwith NCCASL to provide trade test awareness programs, on site bridge courses, and selfassessment instruments to help workers determine their strengths and weaknesses in theskills required.
Component 3 - Management Training
7. Substantial progress was achieved in management training. The total trained inupper, middle and lower levels of management was over 6,500 managers (125 percent ofappraisal estimate). In relation to the original targets, training was more heavilyconcentrated among the upper and middle management. Within the managementprogram, ICTAD conducted open management programs for over 300 construction plantmanagers. The delivery of ICTAD management training programs has resulted inimproved preparation of bid documents, introduction of modernized constructionmanagement techniques and record keeping, better use of skilled and unskilled workersand equipment/technology at construction sites, and increased contractor willingness touse more suitable construction materials. These measures resulted in better constructedbuildings. An important contribution has been the establishment of the NationalConstruction Contractor Association of Sri Lanka (NCCASL) which established a code ofethics for their members to follow.
Component 4 - Instructor Training
8. The instructors' training and updating in skill trades, introduction of heavyequipment operator training and upgrading of mechanics, and introduction of managementcourses were given priority attention. About 1,200 instructors were trained (233 percentof the target). The instructors were upgraded to teach training modules (with ILOassistance in preparation and initial training) and as a result improved the quality ofconstruction training in the institutions and increased program responsiveness. It also leadto the establishment of fee generation activities supported by the construction industry.
Component 5 - Monitoring and Evaluation
9. The establishment of ICTAD as a semi-autonomous entity, overviewed by a Boardof Directors which met monthly, greatly facilitated project implementation and monitoringactivities. The monitoring process was improved annually and resulted in well-preparedprogress reports that enabled management to address, with occasional delays, most of thearising issues identified by the Government, construction industry, contractors and theIDA missions.
10. ICTAD has taken pioneering actions to establish and update the links betweentraining activities and construction industry needs. Industry was asked to identify its
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training needs and give feedback on the various training programs to increaseresponsiveness of the training programs and their content. ICTAD has conducted fourtraining needs assessment surveys for the construction industry and four tracer studiesbased on sample surveys covering up to 17 percent of the graduates. The monitoringprocess was frequently examined to increase response. The final supervision mission metwith the ICTAD's Board of Directors and the NCCASL and they praised ICTAD for itsresponsiveness to training needs in the construction industry and their assistance with theintroduction of new technology. NCCASL indicated that if ICTAD had not beenestablished as a semi-autonomous entity, the above progress would have been nearlyimpossible within the national bureaucratic structures.
11. The project financed studies of different aspects of employment and training in theconstruction industry, which were useful in shaping policies and industry practices. AnUNDP co-financed (ILO executed) technical assistance component provided much of thetechnical support for the studies.
Other Donor Inputs
12. A UNDP/ILO technical assistance and fellowship project (US$3.5 million)supported the institutional and staff development and strengthening at ICTAD from 1987to 1992, followed by IDA funded technical assistance. ILO experts made some importantcontributing towards the development of management skills and training modules.However, ICTAD felt that during the initial period of the project, the rigid pattern oftechnical assistance recruitment reduced the benefits of that component. The process ofrecruiting LO experts was lengthy, their recruitment was for long duration, and theirqualifications were not always responsive to training needs. When the ILO contract wasended, ICTAD started managing the component under the IDA credit in a more flexibleway, i.e. recruiting specialists faster, mostly for shorter duration and according to thesector's emerging requirements.
Other Proiect Features:
13. The eight years allocated for project implementation allowed the project to fullyassess its activities and due to the favorable SDR rate enabled ICTAD to carry out someadditional related activities (all falling within the original project description), all of whichhave had and will continue to have great impact on the construction industry. Theseactivities are: (i) registration and training of construction contractors and organization of acontractors guarantee fund; (ii) development of standardized bidding documents for theconstruction industry which have now become the standard National Competitive Biddingdocuments (NCB) accepted by the Government and the Bank; (iii) development of guidesfor contractors and alternative construction materials and bringing new technology andequipment to the country; (iv) updating and improvement of construction statistics andinformation dissemination; (v) building a permanent supervisory and management trainingcenter to assist with the introduction of new training programs and technology; (vi) as aresult of the ICTAD staff and some industry representative training and participation inexternal seminars, Sri Lanka construction industry has established strong permanent links
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to construction industry, labor organization and training centers in Asian countries; and(vii) building a permanent residential complex for the staff and trainees at the OperatorsTraining Center at Anuradhapura.
Cost Recovery
14. The only provision of cost recovery under the project, as originally approved, wasto recover the cost of materials from the trainees to ensure the availability of essential andbetter quality training materials. ICTAD, however, went much further. It embarked onaggressive ways of income generating and greatly exceeded the cost recovery target. Thetotal revenue produced increased more than six times during 1989-1995, reaching Rs 32million (US$800,000); as a share of operating costs, revenue increased from 6 to 30percent during the same period. ICTAD's success in income generating comparesfavorably with that in other countries for comparable projects. However, we were pleasedthat ICTAD is working on plans to increase recovery further to 42% by 2000 and it needsto continue efforts to maximize revenue so as to ensure sustainability in a difficult fiscalenvironment.
15. ICTAD's close involvement with industry and trade associations has yielded betterquality training and employability of graduates; it has used these contacts to make morerelevant the courses offered by the training institutions through which it works. Theexample of close links with employers is one that needs to be followed by other vocationaland technical training institutions in Sri Lanka. It should be noted that in effect ICTADhas taken over from the ministries concerned part of the work of coordinating publicsector training institutions, so reducing costs to those ministries.
Sustainabiltity of the Project and Future Operations
16. The Government has strong commitment to the future of ICTAD following projectclosing date (June 30, 1996). A draft Cabinet Memorandum, outlining the ConstructionAct and ICTAD's functions and activities, was approved by the Cabinet in March 1996.The bill is scheduled to receive final approval by the Parliament in early 1997. Continuingthe practice established under the project, ICTAD has prepared a detailed Business Planfor 1996-2000 and a summarized Financing Plan. According to these plans, ICTAD isexpected to receive Rs 30 million annually to cover salaries and overhead expenditureduring 1996-2000; meanwhile, ICTAD's income generating activities were expected toincrease substantially and reach Rs 29.5 million by 2000 and would cover 42 percent oftotal costs.
17. Furthermore, plans for ICTAD to audit Government and foreign contracts inconstruction industry for a 0.25 percent fee of the total contract value are under way and aprovision has been made in the draft construction bill for ICTAD to undertake technicalauditing on consultancy basis as needed. Such an activity is expected to generatesignificant income estimated at Rs 38 million (more than operational costs in 1995).
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ICTAD is currently revising its business plan to reflect these additional activities andexpect further increase in income generation by 2000.
18. The Bank does not plan a future operation with ICTAD at this stage. It believesthat the two projects have enabled that institution to be solidly established and sustained.ICTAD is expected to continue to play an important role in the strengthened constructionindustry.
Key Lessons Learned
19. The following are the key lessons learned from the project implementationexperience:
* Project implementation was enhanced by ICTAD and IDA staff taking intoconsideration the experience and lessons learned during the first vocational project;
* The establishment of ICTAD as a semi autonomous institution with policy andimplementation authority enabled the institution to be staffed by younger and trainedofficers. Much of ICTAD's success can be linked to the hiring practices that weremore flexible than public service practice;
* The delegation of authority to a Board of Directors facilitated the addressing ofemerging problems and enabled the institution to implement the project in a moreresponsive manner;
* ICTAD was able to acquire the construction industry's support and become a majorcatalyst in the construction sector as a result of the institution's good performance andcontinued Government support.
* The training assessments, tracer and impact studies facilitated responsive managementdecisions and more responsive training programs;
* ICTAD reached a more favorable employment rate of graduates by the introduction ofa timely career counseling system and by facilitating entry to employment;
* The offering of responsive programs allowed ICTAD to gradually introduce costrecovery. The contractors supported the fee system as they experienced good skilltransfer;
* The combination of regional staff visits to similar training institutions enabled ICTADto adapt international training courses/modules and develop a core of local expertiseexposed to the latest technology and management practices;
* ICTAD's practice of using existing Government, NGO and private sector facilities forits training activities was more economical and increased the use of training facilitiesand allowed courses to be given in more skills and in all regions of the country;
* ICTAD's utilization of primarily short-term and skill focused technical assistance wasmore economical and facilitated capacity building in the construction industry;
* The close collaboration between ICTAD and the related professional organizationssuch as Sri Lanka Institute for Engineers, Sri Lanka Institute of Architects, and theNCCASL (through representation in ICTAD Board of Directors), and thecoordination of their activities, has facilitated implementation and addressed evolvingneeds;
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* The carrying out of the eight training needs assessment surveys for the constructionindustry and tracer studies over the project period has lead to changes in trainingcurriculum and has achieved substantial results in establishing the links betweentraining programs and labor market needs;
* ICTAD piloting income generation was a bold step within a society which advocatesfree services. This approach demonstrated a clear vision and strengthened thesustainability of ICTAD;
* ICTAD's close involvement with industry and trade associations has yielded betterquality training and employability of graduates; it has used these contacts to makemore relevant the courses offered by the training institutions through which it works.The example of close links with employers is one that needs to be followed by othervocational and technical training institutions in Sri Lanka.
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Democratic Socialist Republic of Sri Lanka
Second Vocational Trainine Proiect(Credit 1698-CE)
IMPLEMENTATION COMPLETION REPORT
Part I: Project ImDlementation Assessment
Project IdentitvName: Second Vocational Training ProjectCredit: 1698-CEUnit: South AsiaCountry: Sri LankaSector: Education
A. Backaround:
1. The Government has invested in training programs as a necessary part of itsstrategy to successfully implement its industrialization and modernization program. Theincreased demand for skilled workers especially in engineering and construction tradeswithin the country, and the migration of workers to the Middle East increased the demandfor technical education and vocational training. The relative neglect of this field wasrecognized and the need to provide increased financing was also accepted. The provisionfor technical and vocational training increased from Rs 26 million in 1972 to Rs 348million in 1983. The other major decision taken by the Government was not to restrict theoutflow of skilled workers from the country, but to introduce more training programswhich would produce skilled workers in sufficient numbers to meet the local and foreigndemand.
2. The Government adopted an ambitious development program during the mid1970s which committed a large share of public revenues to irrigation, power generation,and housing and urban development. These investments created substantial demands onthe construction industry and created about 100,000 new jobs. In addition to theincreased domestic demand on skilled workers, the outflow of skilled workers to theMiddle East also grew significantly during this period. A large percentage of these wereskilled and semi skilled workers in the construction industry, with drivers, mechanics,carpenters and masons accounting for nearly two-thirds of the total. This growth trendwas slowed in the early 1980s as the Government was compelled to cut public expenditureto reduce the budget deficit and as a result, investment in construction was either reducedor maintained at the 1980 levels except in the case of foreign-funded constructionactivities.
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3. Government projections for the construction sector for the period 1985-89 showedan annual growth rate of 8 percent for the investment and 3 percent for labor productivity.On this basis it was estimated that there was a total need for 120,000 workers inconstruction related trades in the economic sectors during that period. To assist with thereduction of that skill gap, introduce new technology and strengthen the constructionindustry and contractor development, the GOSL sought World Bank assistance. Based onGovernment data and Bank mission projections it was estimated that the total trainingneeds for the project period 1987-1996 would be about 50,000 new entrants and theupgrading of about 26,000 existing workers for a total of about 76,000 persons (averageof 8,400 per year). The training capacity developed under the project was calculated atabout 6,000 workers per year and it was expected that these estimates would further berefined and updated through training needs assessment studies to be under taken duringthe project period.
4. Policy Context and Linkages to the Sector Policies: The project's directlinkages and response to national policies were very strong. National policies stressedwere mainly related to meeting the local and foreign demand for skilled manpower,consolidate, coordinate, and certify different skilled training programs, increase thecontent of curricula and relevance to labor market needs, and ease the complete reliance oftraining programs on public financing and introducing cost recovery measures and userfees. The project's conceptual base and preparation was shared and well understood bythe Government and IDA and was appropriate as a second IDA financed project invocational training. The roles and responsibilities of the PIU and the implementingagency, the Institute for Construction Industry Training and Development (ICTAD), werewell defined at the start of the project and were flexible enough to allow adjustmentsduring implementation. The project has successfully addressed the national policies inconstruction industry training and achievement has surpassed t.ne SAR targets for most ofits components as outlined below.
B. Proiect Obiectives and Description:
5. The main objectives of the project were to: (i) create an institutional teamwork tosustain training and construction industry development efforts started under Credit 1130-CE; (ii) increase the supply of semi-skilled, skilled, and managerial personnel to theindustry; and (iii) improve the quality of manpower supplied to the sector. Theinstitutional development objective would be achieved by establishing and developingICTAD. The manpower supply objective would be achieved by training about 50,000new and upgrading about 26,000 existing semi-skilled, skilled, and managerial workers inthe construction industry. The quality improvement objective would be achieved by (a)instituting an instructor training and upgrading program; (b) strengthening monitoring andevaluation of training and industry development; and (c) trade testing and certifying about40,000 skilled workers and supervisors.
6. Another objective of the project was to institute a cost recovery system invocational training for the construction trades through the fees, the sale of traineeproducts and services, and other generating activities. The cost recovery system would be
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on the basis of a detailed study of the financial and economic costs and benefits of publiclyfinanced construction industry training, the impact on the Government budget, and theproportions of costs to be shared by trainee, Government, and private sector. Duringnegotiations, the Government provided an assurance that by December 31, 1989 the totalcost of stipends and trainees tool kits would be supplied; and by December 1994, about 50percent of the cost of consumable materials, would be financed from sources other thanthe general revenues of the Government.
7. The project components to achieve the above goals were:
* institutional development: establishing the Institute for Construction IndustryTraining and Development (ICTAD) and supporting 11 staff years of expatriate expertservices and 96 staff years of local expert services for the management training and19.6 staff years of international and regional fellowships and 121.5 staff years of localtraining;
* skill training: to increase the supply of skilled and semi-skilled workers forconstruction industry through; (i) extending training to construction trades notcovered by existing programs, (ii) increasing the range of competencies of semi-skilledworkers, and (iii) certifying the quality of skill training by testing workers to Nationalskill Standards. During the project period, 72,000 skilled and semi skilled workerswould be trained and/or upgraded in various trades, and of these 40,000 would betrade-tested and certified;
* management training: during the project period, 5,700 new and existing managersand supervisors of all grades in the ministries and authorities related to constructionand the private sector will be trained. Specific training would be provided to all levelsof management (upper, middle and supervisory). Government provided an assurancethat by January 1, 1990, all upper level management courses would be financed by thetrainees or their employers;
v instructor training: 500 instructors in skill trades, equipment operators andmechanics, and in management subjects were targeted to be trained to increase thenumber of qualified skill trades and management instructors;
* monitoring and evaluation: the project supports the establishment of a system formonitoring project inputs (financial and material) and outputs (trainees) in an up-to-date and timely manner with quarterly progress reports. Support was also given toconduct four training needs assessment studies and four tracer studies.
C. Linkaees to the First Vocational Proiect
8. The project objectives were enhanced by the lessons learned from the firstvocational project and were complementary to the first vocational training project and inline with the evolving sector's needs. The project took advantage of initial capacitybuilding and lessons learned from the first project. The following table illustrates theselinkages.
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First Vocational Project (Credit 1130-CE) Second Vocational Proiect (Credit 1698-CE)Projed mangemnt within Govement stt lacked flxibility A senu-autonomous mangeent structure (ICTAD) managed by ato be responsive board of directors with inter-ninisterial representation was
establishedLimited training of staff in existing insituions ICTAD embarked on extensive training program thtu included
intemational exposure for ICTAD staff and institutiots' trainersThe goal of using exstang instutions for traiiing encountered ICTAD benefited from procedures clarified during the first projectadninistrative difficuliesInitiated construction indsry skill training ICTAD benefited from the experience ofthe first project and wasand experienced major institutional / organizational problenms able to surpass appraisal training targets (130 to 160 peroent) andreaching less thmn 60 percent oftraining goals increased graduates' employability (average of 80 percent versus
20-60 percent in other programs)Encountered difficulties intritdicing heavy equipment training ICTAD was able to build on the heavy equipment training pilot(started only at the end ofthe project) program and set up the first national training center. Graduates
were all employed and their salaries increased by an average of 166
Experienced major problems with developing training modules due The project included a UNDPIILO technical assistance componentto attempting to create rather than adaptexisting modules. for the adaptation of existing ILO modulesExperienced problem with implementation of needs assessmnit ICTAD successfully carried out eight needs asemett and tracerand tracer studies studies, increasing progran responsivenes to tndustry needs,
building on the experience of the first project Availability of datafrom these studies facilitated the development of ICTAD'ssustainability plan
The development of linkages with the contractors was slow ICTAD increased its dialogue with the contrctors which rsltdin the developmtent of the NACCSL This enhanced the contactorsand ICTAD interactions and in tum improved the responsivenes ofthe traning prograns
D. Achievements of Obiectives and Factors Affecting the Project
9. The implementation reports show impressive achievements over the project periodin the areas of institutional development, training activities, training links to industryneeds, cost recovery and sustainability that has met or surpassed the project targets. Dueto large currency fluctuation of the Rupee combined with accrued SDR value and lowertraining costs, the project financing was revised in 1994 and the total credit adjusted fromSDR 13.0 million to SDR 10.0 million. The project was prepared for eight years and wasextended once for one year (closing date was June 30, 1996). An overview of projectdisbursement pattern can be found in Table 4.
10. The project experienced several amendments to the Development CreditAgreement: (i) in August 31, 1989, changing the implementing agency from the Ministryof Local Government Housing and Construction to Ministry of Policy Planning andImplementation; (ii) in November 1990 adjustments were made to maintain reimbursementat 80 percent (category 4) to calendar year 1992 and declining afterwards (based on delayof project effectiveness and political turmoil); (iii) December 16, 1993: Threeamendments--(a) the addition of a new Category "Agency Training Programs" at adisbursement rate of 80 percent--reallocation (SDR 2.0m) of funds from Category 4 tomeet estimated expenditures; (b) the deletion of paragraph 4 of Schedule 4 regarding thetransfer of contractor registration activities from the ICTAD the NACCSL; and (c) inSection 3.01 (a) substituting "the Ministry of Housing and Construction" for "the Ministryof Policy Planning and Implementation"; and (iv) in November 2, 1994, it was agreed toextend the project closing date to June 30, 1996. Overall the project objectives wereachieved or exceeded, and the project components and their status are outlined below.
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Component 1 - Institutional Development
11. The objectives were to establish the Institute for Construction Industry Trainingand Development (ICTAD) and support an extensive national and international trainingand upgrading program for its staff. The targets listed in the SAR were: 19.6 staff years ofinternational and regional fellowships, 121.1 staff years of local training, 11 staff years ofexpatriate expert services and 96 staff years of local expert services for the managementtraining.
12. The results were that ICTAD was established as a unit of Urban DevelopmentAuthority immediately after project effectiveness (1986) to act as coordinator, enabler,facilitator, and policy formulator in training and other industry related activities. In June1992, the institution became a statutory authority attached to the Ministry of Housing andConstruction under State Industrial Corporation Act. Its headquarter was built and fullyequipped with up-to-date equipment and facilities. Simultaneously, ICTAD'sorganizational chart and cadre were finalized, and qualified staff was appointed (many ascounterpart to the UNDP/ILO experts who were assisting with the management andorganization of training modules. When UNDP/ILO technical assistance support ended in1992, the DCA was amended to include that support using primarily short-termed focusedspecialists. In addition to specialist training given by the technical assistance, ICTADundertook an intensive staff development program that included 28 foreign and 194 localexperts and 106 foreign and 255 local training fellowships.
13. The above staff capacity has been very positive as demonstrated by the effectivemanagement of ICTAD and it being sought-out by the public and private sectors tomanage large construction sites, such as the Oberoi Hotel. All the work program ofsupplying workshops, studies, mechanic operator training center and heavy equipmenttraining center were completed as scheduled by ICTAD staff and their use conforms withthe goals established during appraisal.
Component 2 - Skill Training
14. The Objective was to increase the supply of skilled and semi-skilled workers bytraining about 50,000 new construction workers and craftsmen, and upgrading another26,000 exiting semi-skilled, skilled, and managerial workers in the construction industry(76,000 in total) and finally to test and certify about 40,000 workers.
15. The results were that the number of workers trained have surpassed the targetnumbers set in the project SAR by a wide margin (Figure 1). A total of 70,484 newentrants 142 percent of goal was achieved (59,829 craftsmen, 4,286 mechanics, 2,972operators, 1,132 supervisors). To improve quality, another 1,765 were upgraded.About 50,814 of existing semi-skilled, skilled, and managerial workers (28,649 existingcraftsmen, 311 mechanics, 592 operators and 4,869 managers and supervisors and 16, 459other training) were trained, achieving 196 percent of the appraisal goal.
5
Figure 1: Percentage of Number of Workers Trained to the SARTarget for Three Components
22S
200 31a
Skre Skrx Mag Tr Intco Irz
17n tn ce n g ct n a
private sectorcenterss . Th cobnto of goenetadN_cnesalwdtann
126 ...........l.0 _ , 1 _
coverage_ in al pat of th conr.Ti:apoca gral assse aA opeat atSkTrNew SkTrExt Mang. Tr Instuctor Tr
16. ICTAD trained and upgraded about 70 percent ofthe new workers in existinggovernment technical colleges and training centers and about 30 percent in NGO andprivate sector centers. The combination of govevment and NGO centers allowed trainingcoverage in all parts of the country. This approach has greatly assisted ICTAD operate atlower costs and to expand the use of its up-to-date training modules. However, due toICTAD's requirement that all instructors be trained, prior to offering courses some initialdelays occurred. Once staff1was trained and the necessary equipment supplied, theinstitutions ran timely and responsive training programs. The courses taught were basedon annual construction industry surveys or special regional needs. The use of simplesurveys contrary to complex mechanisms, often devised for projects, proved to be verysuitable. This joint effort assisted the training centers improve their curriculum, providedthem with training materials and in a few case physical facilities were upgraded. FinallyICTAD supplied the trainees with tool kits at subsidized prices and provided them withcareer counseling facilitating the sigh integration in the labor market.
l17. As for trade testing and upgrading, the appraisal target of 40,000 workerssupervisors was reviewed by the 1994 IDA mission and the Govert nent and was found tobe unrealistic in respect to the type and level of trade testing. ICTAD and its partneragency (NAITA) has managed to test only 52% of the 1993 target and the challenge ofmeeting the target has been problematic throughout the project period. The total workerstested at the end of the project was 23,900 representing 60% of the original target. Mainproblems were insufficient incentives for domestic construction workers to seekcertification and the low passing rate of those who were tested, averaging 50%. Emphasiswas made on "bridge" training of employed craftsmen to upgrade the skills required in thetrade test in order to improve the pass rate. ICTAD established an outreach program withNCCASL to provide trade test awareness program, on site bridge courses, and selfassessment instruments to help workers determnine their strengths and weaknesses in theskills required.
18. To achieve the above skill training objectives, ICTAD built / rehabilitatedworkshops and supplied them with equipment in Government and NCTOs and private
6
institutions. In addition, ICTAD improved the first national heavy equipment operatortraining center where training and testing are carried out.
Component 3 - Management Training
19. The objective was to train about 5,200 new and existing managers and supervisorsof all grades in the ministries and authorities related to construction and the private sectorcovering all levels of management (upper, middle, and supervisory).
20. The results were impressive. The project trained 6,500 upper, middle and lowerlevels managers in the construction sector management reaching 125 percent of the SARtarget (Figure 1). In relation to the original targets, training was more heavilyconcentrated among the upper and middle management. The numbers of trained seniormanagers was more than three times the target and the middle management number wasmore than double the target. Within the management program, ICTAD conducted openmanagement programs for over 300 construction plant managers. The delivery of ICTADmanagement training programs has resulted in improved preparation of bid documents,introduction of modernized construction management techniques and record keeping,better use of skilled and unskilled workers and equipment/technology at construction sites,and increased contractor willingness to use more suitable construction materials. Thesemeasures resulted in better constructed buildings. An important contribution has been theestablishment of the National Construction Contractor Association of Sri Lanka(NCCASL) which established the code of ethics for their members to follow.
Component 4 - Instructor Training
21. The objective was to increase the number of qualified skill trades and managementinstructors through training 500 supervisors in skill trades, equipment operators andmechanics, and in management subjects.
22. The results were that instructors training in these categories were given a priorityin the project implementation. The number trained reached almost 1164 instructors i.e.233 percent of the target set in the SAR (Figure 1). This accomplishment enabled theinstructors to teach update training modules and has improved the quality of constructiontraining in the institutions. The result is that many of the training activities were able toestablish more responsive programs and institute fee generation.
Component 5 - Monitoring and Evaluation
23. The Objective was to asses the outcome of the training activities and to linktraining to industry needs by conducting four training needs assessment studies and fourtracer studies.
24. The results were that ICTAD has taken pioneering actions to establish and updatethe links between training activities and construction industry needs. Industry is asked toidentify its training needs and give feedback on the vari_u training programs. Their
7
inputs were used for business planning and to reform the training methods and curriculum.ICTAD has conducted four training needs assessment surveys for the constructionindustry and four tracer studies based on sample surveys covering 7 to 17 percent of thegraduates. The monitoring process was well organized. Through the combination ofprogress reports examined by the ICTAD Board of Directors, tracer studies and impactstudies, the project activities were suitably scrutinized and adjusted frequently to increaseresponse. The final supervision met with the ICTAD Board of Directors, which wasattended by the NCCASL, and were impressed by their keen desire to have training whichleads to employment or improves the industries' performance. They praised ICTAD for itsresponsiveness to industry needs and for its assistance with the introduction of newtechnology. It was also observed that if ICTAD had not been established as a semiautonomous entity, the above would not have been possible.
25. These tracer studies and impact studies have provided a better understanding ofthe construction sector needs that have lead to changing and updating training programsand improving the external efficiency. The recent tracer study showed that 80 percent ofthe trainees have found employment, mostly in the private sector. In comparison,graduates from training centers not affiliated with ICTAD have a much lower employmentrate that ranges from 40 to 65 percent depending on the level and quality of the center. Inaddition, the workers' salary in certain training programs increases substantially aftertraining, for example, the salary of the heavy machinery operator increases by 166 percentafter training.
E. Other Donor Inputs
26. A UNDP/ILO technical assistance and fellowship project (SR 86/001) of US$ 3.5million supported the institutional and staff development and strengthening at ICTADfrom 1987 to 1992 followed by IDA funded technical assistance. Support accounted forabout 11 staff years of technical assistance for primarily short-term consultants. Theratification of this support unfortunately delayed project effectiveness for a year afterboard approval and later in the project period increased costs forced ICTAD to depend onthe credit funds to complete these activities. ILO experts made some importantcontribution towards the development of management skills and training modules.However, ICTAD felt that during the initial period of the project, the rigid pattern oftechnical assistance recruitment reduced the benefits of that component. The process ofrecruiting ILO experts was lengthy, their recruitment was for long duration, and theirqualifications was not always responsive to training needs. When the ILO contract wasended, ICTAD started managing the component under the IDA credit in a more flexibleway i.e. recruiting specialists faster, mostly for shorter duration and according to thesector's emerging requirements.
F. Studies
27. Studies included in the project are outlined in Table 7. The key studies supportedby the project included: financing study for ICTAD, employment study, training needsassessments, tracer surveys, analysis of outstanding claims of contractors, aggregate
8
production, sub-contractual services in the construction industry, approaches to attainGovernment objectives in quality of work, assessment of construction industry trainingrequirements, study on the quality and durability of imported timber, employment patternsof ex-trainees/impact study, labor market information study and finally the sustainabilitystudy for ICTAD. All of these have contributed to ICTAD and the country's knowledgeand improved the responsiveness of the construction industry in Sri Lanka. These studiesmade substantial impact on policy formulation, type and quality of timber utilized, trainingprograms content and duration, trade testing, contract disputes, and revenue generation.
28. Although a high percentage of the study recommendations have been implemented,many still need follow-up. The sustainability study has allowed ICTAD to plan its postproject activities and to find a permanent attachment with the Ministry of Housing.
G. Other activities
29. ICTAD has carried out numerous activities, beyond the project objectives, all ofwhich will have had and will continue to have great impact on the construction industry.These activities are: (i) registration and training of construction contractors; (ii)introduction of construction excellence awards for contractors; (iii) organization of acontractors guarantee fund; (iv) development of standardized bidding documents for theconstruction industry which have now become the standard National Competitive Biddingdocuments (NCB) accepted by the Government and the Bank; (v) development of guidesfor consultants and contractors; (vi) taking a lead in the development of alternativeconstruction materials (roof tiles, bricks, etc.); (vii) bringing new technology andequipment to the country along with specialists from other countries to train in their use;(viii) updating and improvement of construction statistics and information dissemination;(ix) updating ICTAD staff and private sector representatives in the constructionmethodology through staff participation in international seminars/workshops andtechnology symposiums; (x) building a permanent supervisory and management trainingcenter to assist with the introduction of new training programs and technology; (xi)building a permanent residential complex for the staff and trainees at the OperatorsTraining Center (OTC) at Anuradhapura; and (xii) purchasing construction equipment tostrengthen the training and revenue generating capacity of OTC. As a result of the ICTADstaff and some industry representative training and participation in external seminars, SriLanka construction industry has established strong permanent links to constructionindustry, labor organization and training centers in Japan, S. Korea, Singapore, Australia,UK, USA, India, Hong Kong, and the Philippine. ICTAD staff is now being asked topresent some of the knowledge and know-how it has applied/adapted to Sri Lanka inneighboring countries.
H. Cost Recovery
30. The main provision for cost recovery under the project, as originally approved,was to recover the cost of materials from the trainees to ensure the availability of essentialand better 'quality training materials. This measure was an important step in the rightdirection in a system that otherwise provides vocational and technical education and
9
training free of charge. ICTAD, however, went much further. It embarked on aggressiveways of income generating and greatly exceeded the cost recovery target. Revenue isderived from almost twenty activities: from hiring equipment, registration of contractors,sale of publications, fees on courses, workers' testing, and renting building facilities. Thetotal revenue produced increased more than six times during 1989-1995, reaching Rs 32million (US$800,000); as a share of operating costs, revenue increased from 6 to 30percent during the same period (Figure 2). While ICTAD's success in income generatingcompares favorably with that in other countries for comparable projects, we were pleasedthat ICTAD is working on plans to increase recovery further to 42% by 2000. Progress inincreasing cost recovery will assist in strengthening ICTAD's autonomy and sustainability.ICTAD needs to continue efforts to maximize revenue so as to ensure sustainability in adifficult fiscal environment.
Figure 2: Revenue Generated and its Ratio to Operational Costs,1989-1996
36 30_ Revenue
30 -- % Rev to Costd 25
,g 26-/ 20 .20~~~~~~~~~~~~~~~2
S f * * 3 3 156315
* 16- _ _ _ _ e1010
e 6 _
0 0
1989 1990 1991 1992 1993 1994 1996
31. ICTAD's close involvement with industry and trade associations has yielded betterquality training and employability of graduates; it has used these contacts to make morerelevant the courses offered by the training institutions through which it works. Theexample of close links with employers is one that needs to be followed by other vocationaland technical training institutions in Sri Lanka. It should be noted that in effect ICTADhas taken over from the ministries concerned part of the work of coordinating publicsector training institutions, so reducing costs to those ministries.
L Proiect Sustainability
32. The Government has strong commitment to the future of ICTAD following theproject closing date (June 30, 1996). A draft Cabinet Memorandum, outlining theConstruction Act and ICTAD's functions and activities, was approved by the Cabinet inMarch 1996. The bill is expected to be approved by the Parliament in early 1997.Continuing the practice established under the project, ICTAD has prepared a detailedBusiness Plan for 1996-2000 and a summarized Financing Plan. According to these plans,ICTAD is expected to receive Rs 30 million annually to cover salaries and overhead
10
expenditure during 1996-2000, meanwhile, ICTAD's income generating activities areexpected to increase substantially and reach Rs 29.5 million by 2000 and would cover 42percent of total costs.
33. Furthermore, plans for ICTAD to audit Government and foreign contracts inconstruction industry for a 0.25 percent fee of the total contract value are under way and aprovision has been made in the draft construction bill for ICTAD to undertake technicalauditing on consultancy basis as needed. This will involve streamlining the processes oftendering, award, and monitoring implementation. Such an activity is expected togenerate significant income estimated at Rs 38 million (more than operational costs in1995) and at the same time, it will require additional expenditure for creating a technicaldivision with specialized staff. ICTAD is currently revising its business plan to reflectthese additional activities and expect further increase in income generation by 2000.
34. In addition to the above, the project outcomes, as listed above, affecting theconstruction industry have been formalized and permanent improvement of that sector'soperation is expected. The project, although lengthy in time, has been able to achievesubstantial goals that a shorter operation would clearly not have achieved. The durationof the project has allowed most of the activities to be fully integrated into the system andthus sustained.
J. Evaluation of Proaram Obiectives
35. The project was designed to complement the first vocational training and toaddress the increasing local and foreign demand of skilled manpower. The projectimplementation was successful and achievements surpassed the targets set duringpreparation. The overall project objectives fall within four major categories: (i)institutional building to sustain training and industry development efforts; (ii) increase thesupply of semi-skilled, skilled and managerial personnel to the industry to improve thequality of manpower supplied to the sector, (iii) establish linkages with the labor marketand make training more demand driven; and (iv) intensify cost recovery activities toenhance project sustainability . These objective categories and their activities and resultsare summarized in the following table:
Objective Activity / Component ResultInstitutional building * Establishment of ICTAD Very successfiul imnplementatiorL ICTAD was
* Intensive training progran for the staff established in the first year as a semi-autonomousand management of ICTAD authority and fully equipped with modern facilities
and qualified cadre. ICTAD's managementimplemented an extsive staff development programthat involved 28 foreign and 194 local experts and
________________ 106 foreign and 255 local training fellowshipsIncrease the resources for the * Train workers in construction related Very successfully implemented ICTAD trainigsupply of semi-skilled, skilled crafts reacded 142 percent for new workers and 196and managerial personnel and * Trade testing and upgrading percetm of the targets set for existing workerL Theimprove manpower quality * M ganaent trajg number of trained managers and instrutors also
* suistructortainig -rpassed the target (125 percent and 233 perent* supply of workshops and training centers respectively). As for trade testing the appraisal target
of 40,000 workers was reviewed and was found to beunrealistic. ICTAD and NAITA has managed to testonly 23,900 workers representing 60% of theoriginai target
11
Objective Activity / Component ResultLinkages with the labor market * Conduct eight needs assessment and ICTAD has taken pioneeing actions to establish and
tracer studies update the links between trining activities and* Conduct part of the training in industries construction industry needs. It has conducted four* Adjust training programs curriculum training needs assessment surveys for the
construction industry and four tracer studies based onsample surveys covering 7 to 17 percent of thegraduates. Part of the training is conducted in theindustries and industry feedback are used to reformthe training mnethods and curriculum.
Cost recovery and generating revenue and cost recovery from ICTAD's revenue generating activities reached Rssustainability hiring equipment and building facilities and 32 million by 1995 and covered 30 percent the
from fees on courses, testing, and subscription operation costs. Plans for ICTAD to auditGovernment and foreign contrts in constructionindustry is expected to generate significant incomeestimated at Rs 38 million. ICTAD prepared asustainability plan for 1995-2000 where generatedincome is expected to cover 42 percent of costs
K. Bank Performance
36. Strengths and weakness: The Bank staff has contributed substantially to theproject success through building supportive working relationship and providing effectiveprofessional advice and guidance during the project period. The project benefited from adetailed and upfront review of sector issues that led to an effective dialogue and facilitatedconsensus. The experience of first vocational training project implementation was utilizedin designing this project and prepare feasible implementation steps with emphasis on theproject's sustainability. IDA's supervision missions often helped to adopt creative andinnovative alternatives in implementing the project such as the adoption of capacitybuilding and delivery quality improvement of partner training agencies and theestablishment of successful links through twinning arrangement with similar agencies.IDA's performance was satisfactory, and it assisted in setting a framework for thesuccessful implementation that followed. However, the Bank during the last year and ahalf of the project implementation devoted very little time to this project. Field visitstotaled only about 5 days, and increased monitoring would have reduced the major rush ofactivities during the last three months of project implementation. Other than the latter, theBank assisted this project and its guidance enhanced its results. One advantage of thisoperation was that the Bank deployed primarily specialists in the field to supervise theproject, facilitating communication and review of issues with the well trained nationalstaff.
L. Borrower Performance
37. Strengths and weakness: In general, the Government's performance in the projectimplementation is quite satisfactory. The Government played an important role during thepreparation and appraisal of the project in addressing policy issues and needs in theconstruction industry. The establishment of ICTAD as a semi autonomous entity and thecontinuous Government support to that institution has helped make implementationsuccessful. There has been some periods of work disruption and delay of project activitiesduring the early years as a result of political disturbances and instability in 1988 and 1989.In 1994, there was another work disiuption and delay when ICTAD's Board of Directors
12
was dissolved. However, a new board and chairman were assigned after about fourmonths and implementation resumed with the same level of efficiency. The procurementof equipment, goods, and materials, training activities and technical assistance, and studieswere well managed and efficiently implemented. The Government made substantial effortsto utilize all the credit proceeds before the end of the project and ICTAD's managementembarked on an aggressive program of procurement of needed equipment and trainingactivities during the last few months of the project period. Government, particularlyICTAD staff, organized good mission agenda, prepared excellent progress reports,reduced the duplication of meetings, and facilitated the combination of the ongoing projectreviews with discussions of the project's sustainablity plan. Overall, the Governmentfacilitated throughout the project constructive dialogue and undertook timelycommunications with IDA. Government performance was highly satisfactory during theproject.
M. Future Operations
38. The Bank does not plan a future operation with ICTAD at this stage. It believesthat the two projects have enabled that institution to be solidly established and sustained asindicated above. ICTAD is expected to continue to play an important role in theconstruction industry, and its model could be used by Government to address some of theother technical education needs. ICTAD, as a semi-autonomous agency, intends tocontinue to bid and contract its staff for both public and private sector managementconsultancies and assist with future training assessments. ICTAD is also expected tocontinue to play a role in the national competitive bidding process. ICTAD's ability toremain sustainable will continue to be linked to its semi-autonomous stature. If thatstature was to be changed, ICTAD's sustainability would be more difficult to maintain.
N. Key Lessons Learned
39. The following are the key lessons learned from the project implementationexperience:* Project implementation was enhanced by ICTAD and IDA staff taking into
consideration the experience and lessons learned during the first vocational project;* The establishment of ICTAD as a semi autonomous institution with policy and
implementation authority enabled the institution to be staffed by younger and trainedofficers. Much of ICTAD's success can be linked to the hiring practices of staff thatwere more flexible than public service practice;
* The delegation of authority to a Board of Directors facilitated the addressing ofemerging problems and enabled the institution to implement the project in a moreresponsive manner;
* ICTAD was able to acquire the construction industry's support and become a majorcatalyst in the construction sector as a result of the institution's good perforrnance andcontinued Government support.
* The training assessments, tracer and impact studies facilitated responsive managementdecisions and more responsive training programs;
13
* ICTAD reached a more favorable employment rate of graduates by the introduction ofa timely career counseling system and by facilitating entry to employment;
* The offering of responsive programs allowed ICTAD to gradually introduce costrecovery. The contractors supported the fee system as they experienced good skilltransfer;
* The combination of regional staff visits to similar training institutions enabled ICTADto adapt international training courses/modules and develop a core of local expertiseexposed to the latest technology and management practices;
* ICTAD's practice of using existing Government, NGO and private sector facilities forits training activities was more economical and increased the use of training facilitiesand allowed courses to be given in more skills and in all regions of the country;
* ICTAD's utilization of primarily short-term and skill focused technical assistance wasmore economical and facilitated capacity building in the construction industry;
* The close collaboration between ICTAD and the related professional organizationssuch as Sri Lanka Institute for Engineers, Sri Lanka Institute of Architects, and theNCCASL (through representation in ICTAD Board of Directors), and thecoordination of their activities, has facilitated implementation and addressed evolvingneeds;
* The carrying out of the eight training needs assessment surveys for the constructionindustry and tracer studies over the project period has lead to changes in trainingcurriculum and has achieved substantial results in establishing the links betweentraining programs and labor market needs;
* ICTAD piloting income generation was a bold step within a society which advocatesfree services. This approach demonstrated a clear vision and has led to thesustainability of ICTAD.
* ICTAD's close involvement with industry and trade associations has yielded betterquality training and employability of graduates; it has used these contacts to makemore relevant the courses offered by the training institutions through which it works.The example of close links with employers is one that needs to be followed by othervocational and technical training institutions in Sri Lanka.
14
PART II STATISTICAL AND DATA TABLES
Table 1: Summary of Assessments
Sri LankaSecond Vocational Training Project
(Credit 1698 - CE)
A. Achievement of Objectives Substantial Partial Negligible Not applicable
0,') (VI) (V) )
Macro Policies O O O3 0Sector Policies 0 0 O 0Financial Objectives Oe 0 0 0Institutional Development 0 0 0 0
Physical Objectives 0 RI 0 0Poverty Reduction 0 0 0 0Gender Issues O E 0 0Other Social Objectives O 0 O O
Environmental Objectives O 0 Oe 0Public Sector Management O El O 0
Private Sector Development Oe 0 0 0
Other (New Technology)) 0 El O 0
B. Project SuSinabil Like Unlike Uncertain
0 El E
C. Bank Performance satisfactorv Satisfactorv Deficient
Iiighly HiJhlE. Assessment of Outcome satisfactorv Satisfactorv Unsatisfactoiy unsatisfactorv
O 0 O E
15
IMPLEMENTATION COMPLETION REPORT
SECOND VOCATIONAL TRAINING PROJECTCREDIT 1698-CE
Table 2: IDA Credit Relevant to the Project
Credit Number Purpose of Year ofProject Title Project Approval Status Comments
Cr. 1130-CE, Increase the supply of trained 1981 Good Project closed onConstruction Industry manpower and to improve the December 31, 1986. OutTraining Project level of technical of the Credit of US$13.5
management expertise so million, US$.97 wasthat the construction industry cancelled.can better meet the demandsof Sri Lanka's investmentprogram.
Cr. 91 2-BAN, To strengthen management 1979 Marginal Project closed on JuneVocabonal Training of vocatonal training, 30, 1987.Project increase the output of the
training system and improvethe productivity of existingworkers.
Ln. 2171 -EC, Expansion and diversification 1982 Good Project closed on JuneSecond Vocabonal of Ecuador's vocational 30, 1990.Training Project training system.
Cr. 1109-PAK, To modernize the physical 1981 Marginal Project closed onFirst Vocabonal Training and institutional infrastructure December 31, 1987.Project of occupational training.
Ln. 1 252-PR, In addition to strengthening 1976 Good Project closed onVocational Training the regional infrastructure and December 31, 1980.Project extending the mobile
approach, the project wasexpected to reinforce theadvisory services toenterprises and to introducemanagement training.
Ln. 2200-PH, To broaden and strengthen 1983 Good Project closed on AprilVocabonal Training industrial training. 30, 1991.Project
Relevant Activties by Other Donors
Organizabon Activity PerodlYear Status Comments
United Nations 1. Expert Services (foreign) 1987-1992 Completed USS3.5m cost sharing,Development Program 2. Fellowships, both foreign UNDP, GOSUIDA.(UNDP) & local The technical assistance
3. Equipment requirements for the skill4. Local consultants and instructor training
components was financedby UNDP, andimplemented by ILO.Project terminated onDecember 31, 1992.
16
PROJECT COMPLETION REPORT
SECOND VOCATIONAL TRAINING PROJECTCREDIT 1698-CE
Table 3: Project Timetable
Date actual/Steps in project cycle | Date planned | latest estimate
Identification (Executive Project Summary) 03/83 06/23/83Preparation 09/06/84Appraisal 08/85 08/06/85Negotiations Mar/Apr 86 03/18/86Letter of development policy (if applicable) NA NABoard presentation 06/86 05/13/86Signing - 11/07/86
Table 5: Key Indicators for Project Implementation
KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUALSAR/PRESIDENTS REPORTS
1. Institutional Development Objective - create an During the project period of 1.1.1 ICTAD established as a unit of Urban Developmentinstitutional framework to sustain training and 09 years. (from 1 986 - Authority (UDA) in 1986.industry development efforts started under credit 1995) 1.1 .2 ICTAD's Headquarters Building with 48,500 sq.ft.1130 - CE Estimated project cost 13
million SDR constructed & fully equipped with modern facilities.1.1 Establishing and developing the Institute for 1.1.3 ICTAD's organizational chart & cadre finalized and staff
Construction Training and Development (ICTAD) appointed.
1.1.4 UNDP/ILO Technical Assistance project SR 86/001 (US$3.5M) implemented to develop & strengthen institutionalcapacities of ICTAD from 1987 to 1995.
1.1.5 Corporate planning process introduced and utilized toformulate strategies and operations of ICTAD; continuedfrom 1988.
1.1.6 Staff development of ICTAD and partner agencies throughprovision of 106 foreign training fellowships & 255 localtraining fellowships.
1.1.7 Appointment of 28 Foreign Experts for 282 manmonths &1 94 local consultants to provide specialized inputs toICTAD activities.
1.1.8 Provision of equipment such as vehicles, computers &heavy equipment to ICTAD & machinery & equipment toPartner Agencies
1.1.9 Construction of buildings for Operator Training Center ofICTAD & 18 Storages & extensions to workshops ofTechnical Colleges (Partner Agencies)
1.1.1 0 ICTAD acted as coordinator, enabler, facilitator & policyformulator both in training and industry related activitiesand was accepted by constituents of construction industrythrough formal & informal links and operations.
1.1.11 Establishment of links with similar agencies abroad andensuring regional
1.1.12 Establishment of ICTAD as a statutory Authority in June1992 under State Industrial Corporation Act.
19
KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACUALSARI PRESIDENTS REPORTS
1.1.13 Preparation of Business Plan 1995 - 2000 which includesmeasures to increase cost recovery from the present 18%to 40% by the year 2000 to make ICTAD's operationssustainable.
1.1.14 ICTAD undertook income generation activities to meetidentified training of persons. The revenue generatedamounted to 18% of the operating cost.
1.1.15 ICTAD's role as coordinator/facilitator and policy formulatorboth in training and industry related activities are acceptedby constituents of Construction industry through formaland informal links and operations
2. Manpower supply objective - increase the supply of 50,000 new entrantsemi-skilled, skilled and managerial personnel to the construction workersindustry.
2.1 Training about 50,000 new entrant construction 2.1.1 A total of 70,484 new entrants trained by June'96workers Craftsmen (achievement 124%)
- Improve the quality of manpower suppliedto the sector
3.1 Institute an instructor training and upgrading 500 instructors 3.1.1 A total of 1164 instructors trained by June'96.program for 500 instructors (achievement 233%)
a) 968 crafts, operator and mechanic traininginstructors and management training
b) 196 construction management and other trainers
3.2 Training of about 26,000 existing semi-skilled, 26,000 existing semi- 3.2.1 A total of 50,814 existing personnel in the constructionskilled and managerial workers in the construction skilled and managerial industry provided further training by June'96 (achievementindustry workers in the construction 195%)
industry - 28,649 Existing craftsmen- 311 Mechanics- 529 Operators- 4,869 Construction Managers & Supervisors- 16,456 Other training program
20
KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUALSAR/PRESIDENTS REPORTS
(awareness & bridging courses)
3.3 Strengthen monitoring and evaluation of training 3.3 a)1 Conduct of Manpower Surveys Training NeedsAssessments.
a) monitoring training aspects 1. Mar. '89 Craft, operative levels - completed2. Dec. '89 (Management level)- completed3. 1993 completed4. Nov.'96 to Apr. '96 (completed)
3.3 a)2 Conduct of Tracer Surveys (TS)TS 1 - June 1988 - completedS 2 - July 1988 - completedTS 3 - Oct. 1990 - completedTS 4 - 1995 - completed
3.3 a)3 Publishing the Directory of ConstructionTraining Agencies
1991 - (English)1995 - (English version)1 996 - (Sinhala version
3.4 Trade testing about 40,000 skilled workers and (World Bank review 3.4.1supervisors missions have (a) Trade testing of 23,900 construction workers and
acknowledged that the supervisors. (60%).original SAR target is b) Establishment of a net work of trade testing centers.unrealistic)
c) Formulation of National Skill Standards and Trade Tests
40,000 persons d) Assisting the National Apprentice and Training Authority
(NAITA) to establish a through put capacity to test 2500applicants annually.
4.0 Improvement of the operating environment 4.0.1 Establishment of mechanisms for monitoring of theconstruction industry development.
li) Conduct of the competition "ICTAD Award forConstruction Excellence" among construction contractors;conducted annually from 1991 to 1995.
(ii) Establishment and operation of ProvincialConstruction Industry coordination-ordination Committeewith the participation of Provincial Administration and theProvincial branch of the National of ConstructionContractors Association of Sri Lanka (NCCASL); carried outfrom Nov. 1992 onwards.
(iii) conduct of regular meetings with professional
21
KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUALSAR/PRESIDENTS REPORTS
associations on the initiative of ICTAD to improveinteraction; continued from 1 994.
(iv) Setting up of a "Information Center and Issue ofquarterly ICTAD bulletin of construction statistics -indicating cost indices;
(v) Information on Price indices for materials, Labor Wages, dryhire rates for plant and equipment and composite indicesfor single story non-residential buildings etc issued.
(vi) Introduction of alternative building materials suchas the Micro Concrete Roofing (MCR) tiles
(vii) Development of the local building industry
(viii) Upgrading of Consultancy Services
(ix) Standardization of a bidding documents
(x) Preparation of manual on Fire prevention inbuildings (Fire Code)
(xi) Allocation of Construction Industry SectoralInformation as specific sector in the National Accountsfacilitating provision of sector related information.
5.0 Development of Contractors 5.0.1 Promotion of the formation of the National Association ofConstruction Contractors of Sri Lanka (NACCSL) andassisting it with loans and other facilities for expansion.
5.0.2 Implementation of a system of registration andgrading of contractors'
5.0.3 NICKELS membership being made a condition fortendering for government contracts
5.0.4 Development of small contractors through seminars,workshops and other awareness programs
22
SECOND VOCATIONAL TRAINING PROJECT - IDA -1698 CE TABLE 6
DIVISION: Training SECTION: Research & Development
SAR TARGETS VS. ACHIEVEMENTS
NO TYPE OF ACTIVITY SAR TARGET ACHIEVEMENT % ACHIEVED1.0 TRADE TESTING1.1 Overall (Gr. l1l, ll & I) 40000 23900 601.2 Grade III 24000 18747 781.3 Grade II 10000 5101 511.4 Grade I 6000 52 1
2.0 TRACER SURVEYS (T/S)2.1 T/S#1: ICTAD Graduate of '81 to '85 sample population of 8.3% of 30,000 Sept '87 to Jun '88 Jun '882.2 T/S#2: ICTAD Graduate of '85 to '89 sample population of 8.9% of 27,500 Jul '89 to Jun '90 Oct '902.3 T/S#3: NATIONAL Graduates of '91 & '92 sample population of 17% of 15,660 Dec '91 to Jul '92 Mar '942.4 T/S#4: ICTAD Basic Training Graduates of '81 to '92 sample population of 7.3% Dec '93 to Jun '94 June '96
of 40,923 _
3.0 TRAINING NEEDS ASSESSMENT (TNA)3.1 TNA#1: Craftsmen, Operators and Mechanics Jan '88 to Sept '90 Mar '963.2 TNA#2: Construction Supervisors and Managers Jan '90 to Sept '90 Dec '963.3 TNA#3: All Construction Industry Persons Jan '92 to Jul '92 May '93 to Nov '933.4 TNA#4: All Construction Industry Persons Dec '93 to Jun '94 Jun '96
23
TABLE 7: STUDIES INCLUDED IN PROJECT
STUDY PURPOSE STATUS IMPACT OF STUDY
Study on financing of ICTAD to ascertain possibility of cost recovery relating to June 1987 - by Peoples Bank Recommendations considered butsupported training programmes training Research Group found most recommendations not
Cost (Rs.590,000) feasible. However ICTAD re-directed itsactivities to generate income fromalternative sources in order to defraydirect operational costs of training
Tracer Survey - Ascertain affiliation rates & employment pattern of Tracer Survey conducted by Dept Remedial action taken particularly inEmployment Status of past trainees (81 - 86) of Census & Statistics. Completed regard to on-site training as perICTAD Trainees in January'88 recommendations
Cost Rs.300,000
Training Needs Assessment for Ascertain training requirements of these Consultancy by Teams Ltd Results utilised for training policyCraftsmen, Mechanics in the categories of construction manpower Completed in March'88 formulationConstruction Industry Cost Rs. 742,000
Training Needs Assessment of Ascertain training requirements of Supervisory & Consultancy by Teams Ltd. -do-Supervisory and Management Management personnel in construction industry Completed in December'88Personnel in the Construction Cost Rs.712,000Industry
Tracer Survey (No 2) Ascertain affiliation of graduates of ICTAD Survey by Dept of Census & Remedial action taken as persponsored training programmes and study their Statistics. Completed in June'90 recommendation - particularly withemployment status since 1985 Cost - Rs.300,000 reference to National Trade TestsCost Rs.235,000
24
STUDY PURPOSE STATUS IMPACT OF STUDY
Study on Employment Generation Ascertain employment generation potential in Completed in 1991 Sensitised Ministry of Policy Planning,in Construction Industry of Sri construction industry Rs. 108,000 Housing Construction regardingLanka employment potential and policy
formulation
Assist in settlement of outstanding claims of Completed in 1991 All disputed outstanding claims ofOutstanding claims of Contractors contractors Consultants M/S Mudalige & contractors settled through mediation -for Construction Work carried out Nagalingam Ensured healthy relationships betweenfor State Agencies Cost Rs.40,000 clients & contractors
Ascertain actual situation of aggregate production Consultant Devenko (Sri Lanka) Created awareness. Action taken toStudy on Aggregate Production in the country and to make appropriate 1991 structure aggregate industry
recommendations Cost Rs. 500,000
Assessment of potential for sub-contracting in Sri February 1991 Results utilised for policy formulationStudy on Subcontractual Services Lanka Cost Rs. 250,000in the Construction Industry
Ascertain strengths & weaknesses of Gramodaya Completed in 1992 Results utilised for policy formulationStudy of Gramodaya Mandalaya Mandalayas relating to their undertaking of rural Cost Rs. 150,000financial Ability, Quality of Work, construction contractsAttainment of GovernmentObjectives and recommendmeasures for improvement
25
STUDY PURPOSE STATUS IMPACT OF STUDY
Study on Training Needs to a) ascertain availability of manpower in Completed in 1993 Results utilised for policy formulationAssessment Manpower Survey construction industry and to b) assess their Consultant Devenko (Lanka)
training requirements Ltd. Cost Rs. 1.5 Million
Training needs assessment in the to ascertain training requirements of construction Completed in 1993 Results utilised for policy formulationconstruction industry workers Consultant Devenko (Lanka) LTD.
National Tracer Survey (No 3) of to ascertain affiliation rates, employment patterns Completed in 1993 Results utilised for policy formulationex. ICTAD trainees social status mobility Dept. of Census & Statistics
Study on Kempas Timber to examine use of imported Kempas timber and Completed in 1993 Created an awareness of improvingjustification for its use Consultant Mrs Jayathilaka quality of timber through treatment
Moratuwa UniversityCost Rs.150,000
Tracer Survey (no 4) Covering to ascertain affiliation - employment patterns of Completed in 1995- 96 Results utilised for policy formulationICTAD trainees from 1982 - 1994 ICTAD ex-trainees
Study on Labour Market to ascertain availability, utilisation demand/supply, Completed in 1996 Results expected to be used for policyinformation system (LMIS) training input/output and manpower trends of Consultant - Moratuwa University formulation
construction personnel Cost Rs.900,000
26
PROJECT COMPLETION REPORT
SECOND VOCATIONAL TRAINING PROJECTCREDIT 1698-CE
Table 8A: Project Costs
Appraisal estimate (US$M) Actual (US$M)*
Local Foreign Local ForeignComponents Costs Costs Total Costs Costs Total
Domestic: Government of Sri LankaCivil Works & Professional Fees 0.23 0.23 0.09 0.09Furniture 0.04 0.04 0.23 0.23Equipment 0.37 0.37 0.33 0.33Vehicles 0.13 0.13 0.21 0.21Salaries 1.09 1.09 6.54 6.54Tool Kits 0.63 0.63 0.06 0.06Stipends 2.14 2.14 0.63 0.63Consumable Materials 3.47 3.47 0.68 0.68Operation & Maintenance 0.36 0.36 5.85 5.85
Subtotal 8.46 0.00 8.46 14.62 14.62
Total project financing 8.46 16.02 24.48 16.38 13.44 28.50
23
PROJECT COMPLETION REPORT
SECOND VOCATIONAL TRAINING PROJECTCREDIT 169B-CE
Table 9: Status of Legal Covenants
Original Rsedlcovenat Present Fuiiment Fu llmt
Agremnt Secuon Type Stats Dae Date Descriptionof Cvenant Comments
Credit 3.01, S 4, 1 Project C 08/30/87 Carry out a study on the financing of In compliance.(a) implementation vocational training in the construction
program industry and review findings with IDA.
3.01, S 4, Project C 12131189 The cost of stipends and trainee tool kits to In compliance.1 (b) (i) implementation be financed by sources other than general
program budget revenues.
3.01, S 4, Project C 12/31/94 50% of cost of consumable materials (or In compliance.1 (b) (ii) implementation some other percentage to be agreed with
program IDA) to be financed by sources other thangeneral budget revenues.
3.01, S 4,2 Project C Appoint all additional staff in ICTAD and In compliance.implementation CHPB at lvels and in accordance withprogram schedule agreed with IDA.
3.01, S 4, 3 Project C 06/30/80 Ensure that aN instructor training functions In compliance.implementation are transferred from ICTAD to the Nationalprogram Technical Teachers Training College
(NMC).
3.01, S4, 5 Project C 01109/90 Ensure that all upper-vel management In compliance.implementation training courses are financed by theprogram trainees or their employers.
3.01, S4,6 Project C 01131/88 Conduct four training needs assessments In compliance.implementation and review findings with IDA.program
3.01, S 4,7 Project C 01/31/88 Conduct four tracer studies and review In compliance ancimplementation findings with IDA exceeded. The fourtlprogram study is beins
completed, and iraddition, a projecimpact study and
sustainability planwere prepared
3.01, S 4, 8 Project C Undertake a mid-term review and In compliance.implementation evaluation of the project with IDA to makeprogram adjustment in program based on
implementation experlence.
Article I, Financial C 04/15187 Open Special Account in the Central Bank. In compliance.1.02Article IV, Financial C Maintain records and accounts according to In compliance.4.01 sound accounting practices.
Article IV, Accounts C Have accounts, including the Special In compliance4.01 (b) Account, audited annually by independent
auditors.
Article IV, Accounts C Fumish the audit report to the Association In compliance.4.01 (b) within 9 months of end of year.
Article IV, FinancialV C Maintain separate records and accounts for In compliance.4.01 (c) Accounts statement of expenditure.
In-terms of this programme a sum of US$ 3.5 M was identified for this purpose and the
project commenced in February 1987.
The Project provided technical assistance to
a) strengthen the institutional framework of ICTAD
b) improve the quality of training for construction personnel
c) train different types and levels of skilled construction personnel
d) upgrade ICTAD's management and supervisory training programmes; and
e) increase the efficiency of the construction industry.
Project Development Objectives
The project contributed to achieving two of the national development objectives described
in the GOSU UNDP fourth Country Programme for Sri Lanka.
a) Rehabilitation and development of the physical infrastructure by enhancing the
productivity and output of the construction industry; and
b) Employment generation and increasing incomes by upgrading the skills of various
levels of construction workers and hence their employability.
Project Immediate Objectives
The primary objective of this project was to provide technical assistance required to
achieve the implementation of the overall project. Its immediate objectives were to
a) Strengthen the institutional framework of the ICTAD through development of its
organisational structure and staff capability in financial and general management
and in monitoring and evaluation of project operations and training programmes.
32
b) Improve the quality of training of skilled construction workers, mecha,r-cs arc
operators, and trainers, through training needs assessments, the cesign anr
development of training programmes, improvement of learning materials, Cesign
and development of skill standards and trade tests and the introduction of modern
methods and procedures for the management of training programmes
c) Assist in increasing and regulating the national pool of different tvpes arc !evels
of skilled construction workers, operators, mechanics and trair,ers throucn
national, regional and international fellowships, regular national training
programmes and trade testing.
d) Increase the efficiency of the construction industry through the introcucticn of new
technologies and methods, provision of supporting services ;n manpower/ labour
force analysis, construction statistics, survey data analysis and data processing
and through strengthening the role and institutional capacity of the Association of
Construction Contractors and other organisations.
The project which commenced in 1987 terminated on 31st December 1992
Interms of the activities of the project the following inputs were provided during the
project period.
a) Foreign Experts
The Services of 36 Foreign Experts were provided
b) Fellowships
70 fellowships for 79.95 months costing US$ 838,115.00 were provided to staff of
I ICTAD and its partner agencies.
C) Local Training Programmes
47 local training programmes involving 77 ICTAD staff and costing approximately
Rs. 273,675 were provided during the project period.
33
d) Local Consultants
The services of local consultants were obtained on 41 external collaborator
contracts costing Rs. 9,109,194.00
d) Equipment
Equipment such as audio-visula aids, vehicles, computers, office equipment etc.
costing US$ 851,542.00 were provided.
The project which was managed by an expatriate Chief Techical Advisers from
1987 was taken over by an ICTAD officer who managed the project as National
Project Director from June 1992 till the end of the project.
Although the UNDP/ILO TA project terminated in December 1992 both the IDA
and ICTAD felt the need for the continuation of Technical Assistance. Which
was carried out from January 1993 to the end of the project. Under this
programme 16 Foreign Experts were used (some on repeated assignments)
During this period 83 officers were sent on fellowships with costing the project
Rs. 26,437,280.55. Rs. 293,250/= was spent on local training of ICTAD
Officers.
The lists of Foreign experts engagea oy the Project both under the UNDPIILO TA
Project and under the IDA TA Project from 1993 to the end of thie project are
attached hereto.
34
Annex 1SRI LANKA
SECOND VOCATIONAL TRANNG PROJECTLAST SUPERVISION MISSION (MARCH 1996)
AIDE MEMOIRE
A. Introduction:1. During the last mission of Messrs. Aime and Allak to Sri Lanka (March 4 -22, 1996), andaccording to the terms of reference dated February 13, 1996, Mr. Allak visited the Second VocationalTraining Project (Cr. 1698-CE) for one week to carry out the final supervision before the project closingdate in June 30, 1996. The supervision was focusing on assessing the progress of the projectscomponents and its procurement and disbursement activities. Mr. A. Aime joined Mr. Allak in the lastday and both attended the wrap-up meeting on March 22, 1996 which was chaired by the Secretary of theMinistry of Housing, Construction and Public Utilities and attended by the members of the board ofdirectors and senior staff of the Institute for Construction Industry Training and Development (ICTAD).
2. During the visit, the mission attended a seminar on national vocational competence qualificationssystem (NVCQ) that was carried out by national and international experts. The NVCQ is a system ofupgrading and testing that opens opportunities to construction workers to be promoted to higher skill andmanagement levels.
3. The mission discussed the detailed final review progress report prepared by the five divisions ofICTAD and carried out with them a summary report of the divisions' activities. The summary report(attached) contains the project objectives and targets included in the SAR and the output achieved by thefive divisions of ICTAD up to the end of 1995. The achievements were compared with the targets in theareas of institutional development, trade training, and research and development (surveys and studies).The report also includes ICTAD's achievement in cost recovery compared to the operational costs and theinstitute's disbursement pattern during the project period (see project progress summary below).
B. Proiect Obiectives:4. The project objectives were: to create an institutional frame work to sustain training andindustrial development efforts started under the first construction project, to increase the supply of semi-skilled, skilled and managerial personnel to the industry, to improve the quality of manpower going intothe construction sector. The project was revised and the total credit adjusted from SDR13.0 million toSDR 10.0 million (the projects' disbursement pattern is found in annex 1). The project is eight years oldand has been extended once for one year (closing date is June 30, 1996).
C. Proiect Prozress Summary:5. The summary report of ICTAD's activities shows an impressive achievements over the projectperiod in the areas of institutional development, training activities, training links to industry needs, costrecovery and sustainability that has met or surpassed the project targets.
a. Institutional development. ICTAD was established as a unit of Urban Development Authorityimmediately after project effectiveness (1986) to acted as coordinator, enabler, facilitator and policyformulator in training and other industry related activities. In June 1992 the institution became a statutoryauthority attached to the Ministry of Housing and Construction under State Industrial Corporation Act. Itsheadquarters was built and was fully equipped with modern facilities and its organizational chart andcadre were finalized and qualified staff was appointed. During the last eight years, ICTAD's managementembarked on an intensive staff development program that involved over 350 foreign and local fellowships.
b. Training activities. ICTAD trains new workers and upgrade others directly in their own centersand indirectly through assisting other training centers in training the trainers, improving the curriculum,and providing training materials and physical facilities and by providing the trainees with equipment (e.g.
35
tool kits) at subsidized prices and career counseling. The number of workers trained have surpassed thetarget numbers set in the project SAR by a wide margin. ICTAD trained over 96,000 workers in craftssuch as masons, carpenters, electricians, and senior and middle managers (130% of target). In addition,the Operator and Mechanic Training Division within ICTAD provided training on constructionequipment mechanics and operators to 8,100 workers (131% of the project target).
c. Training links to industry needs. ICTAD has carried out a pioneering actions to establish andupdate the links between training activities and construction industry needs. Part of the training isconducted in the industries for different duration depending on the type of training and usually industryfeedback are used to reform the training methods and curriculum. ICTAD has conducted four tracerstudies based on sample surveys covering 7 to 17% of the graduates and four training needs assessmentsurveys for the construction industry workers.
d. Cost recovery: ICTAD's aggressive ways in generating revenue consist of almost twentyactivities and most of the revenue comes from hiring equipment and building facilities and from fees oncourses, testing, and subscription. The total revenue produced increased more than six times during 1989-1994 and reached Rs32 million and its share to the operation costs increased from 6% to 30% during thesame period. ICTAD has prepared a business plan called "Beyond 2000" that shows that cost recoverywill be increased further to reach 42% of the operating costs by 2000. Furthermore, ICTAD is planning toaudit Government and foreign contracts in construction industry for a 0.25% fee of the total contract valueare under way. Such an activity is expected to generate significant income estimated at Rs38 million(more than operational costs in 1995) and in the same time, it will require additional expenditure forcreating a technical division with specialized staff. ICTAD is currently revising its business plan toreflect these additional activities and expect further increase in income generation by 2000.
D. Issues:6. The current main issues are related to the disburement and the Supervision and ManagementTraining building:* Disbursement up to the end of March 1996 reached SDR8.5 million out of the total credit of SDR10.0
million. The remaining balance of SDR1.5 is not likely to be disbursed by the project closing date(June 30, 1996). If all committed activities would be implemented, it is estimated that one millionSDR will be spend by the closing date with the remaining balance likely to be canceled.
* Construction of the Supervision and Management Training (SMT) building (total cost Rs54 million)started in December 1994 and was scheduled to be finish by February 1996. However,implementation delay occurred due to soil piling, roof selection, and cement shortages. During thefield visit, the mission found out that the SMT building is over 60% finished and the contractor ispaid about 50% of the total. Most likely the building will not be completed by the project closing dateand the mission informed ICTAD that the project will only cover expenditures incurred prior to or atthe latest by the projects' closing date.
E. Actions:7. The followings are the main actions that need to be undertaken by ICTAD:* The mission discussed with ICTAD management the ICR guidelines and what needs to be done by
ICTAD and by the Bank after project closing date (copies of the ICR guidelines were left with them),and urged them to start preparing their part soon and complete it by September 1996.
* The mission urged ICTAD to increase efforts to accelerate the implementation of the currentactivities such as the SMT building, and speed up disbursement of project activities before the projectclosing date.
* The mission discussed ICTAD's sustainablity plan and its revision according to the institute'sexpanding activities in the construction industry, such as auditing Government and foreignconstruction contracts, and requested ICTAD to send the revised plan.
36
F. Summary and Recommendations:8. The project is operating and progressing very well, has no overdue audit reports (1995 report isdue in June 1996), and has received highest rating in achieving its development objectives,implementation progress, compliance with covenants, and its management performance. ICTAD is beenmanaged by qualified and experience staff with good planning capacities and vision, who have beenbehind the project implementation success.
9. The mission recommends, when preparing the ICR, that more attention should be given to theproject as an example of a project well designed, prepared and implemented. Efforts should be made toincrease the visibility and profile of such a successful experience and to study key elements of success anddraw lessons for similar or other activities especially with regards to project management and costrecovery and sustainability factors.
G. Sustainability Plan by Government:10. The Government has strong commitment to the future of ICTAD following project closing date(June 30, 1996). A draft Cabinet Memorandum, outlining the Construction Act and ICTAD's functionsand activities, was approved by the Cabinet in March 1996. The bill is expected to be approved by theParliament by early 1997. Continuing the practice established under the project, ICTAD has prepared adetailed Business Plan for 1996-2000 and a summarized Financing Plan. According to these plans,ICTAD is expected to receive Rs 30 million annually to cover salaries and overhead expenditure during1996-2000, meanwhile, ICTAD's income generating activities is expected to increase substantially andreach Rs 29.5 million by 2000 and would cover 42 percent of total costs.
11. Furthermore, plans for ICTAD to audit Government and foreign contracts in constructionindustry for a 0.25 percent fee of the total contract value are under way and a provision has been made inthe draft construction bill for ICTAD to undertake technical auditing. This will involve streamlining theprocesses of tendering, award, and monitoring implementation. Such an activity is expected to generatesignificant income estimated at Rs 38 million (more than operational costs in 1995) and at the same time,it will require additional expenditure for creating a technical division with specialized staff. ICTAD iscurrently revising its business plan to reflect these additional activities and expect further increase inincome generation by 2000.
37
Annex 2SRI LANKA
SECOND VOCATIONAL TRAINING PROJECT(Cr. 1698-CE)
EVALUATION SUMMARY
1.0 INTRODUCTION
In 1981 the government of Sri Lanka established the Construction Industry Training Project (CITP) as a three year"Crash Programme" to meet shortage of manpower in the construction sector. The project which had an initial outlayof US$ 2.54 M concentrated mainly on manpower training.
Although attention was given to such subjects as tender procedures, contractors grading systems, contract specifications,quantity surveying and quality control and strategic planning in construction sector etc. the accent was as theaccelerated training of construction manpower.
In order to affect the necessary changes in the industry and to provide continuity the temporary project (CITP) wastransforned into the Institute for Construction Training and Development (ICTAD) which was established as a unitunder the Urban Development Authority (UDA). ICTAD under took two major functions - training and industrydevelopment. ICTAD's training activities were centered around craft, supervisory and management, operator andmechanic training while industry development was handled by the industry development division which had threemajor functions
a) technology developmentb) improvement of the operating environment of the construction industryc) contractor development
The Project estimated to cost 13 M SDR and was spread over a period of nine years (from 1986 to 1995). The projectalso provided for a UNDP grant of US$ One Million to assist in the financing of the Technical Assistance component ofthe project.
The goal of the project was to improve the efficiency and effectiveness of the construction industry in Sri Lanka.
There were no major risks involved in this project.
2.0 PROJECT OBJECTIVES AND DESCRIPTION
" The project objectives were to create an institutional frame work to sustain training and industrial development effortsstarted under the first construction project, to increase the supply of semi-skilled, skilled and managerial personnel tothe industry, and to improve the quality of manpower going into the construction sector. The project was revised andthe total credit adjusted from SDR 13.0 million to SDR 10.0 million. The project is nine years old and has beenextended once for one year with the present project closing date being June 30, 1996."
3.0 IMPLEMENTATION EXPERIENCE AND RESULTS
The Project duration was for a period of nine years (from 1985 to 1996) and is in accordance with the standard profilefor education and training projects, in Sri Lanka. In view of domestic civil disturbances which affected projectimplementation from time to time the project was extended by one year with the project closing date fixed as 31stDecember 1995 and the credit closing being 30th June 1996.
The project objectives were in line with construction sector needs & implementation was good and timely consideringthe complex nature of the project.
38
4.0 PROJECT PROGRESS
The project achievements have been impressive over the project period in the areas of institutional development,training activities and industry development, Cost recovery and sustainability has met or surpassed the expected targets.The status of each activity is given below.
a) Institutional developmentICTAD was first established as a unit of the Urban Development Authority (UDA) in 1986 following the successfulcompletion of its first IDA project, the Construction Industry Training Project (CITP) to act as enabler, facilitator, co-ordinator and policy formulator both in training and construction industry related activities. Immediately thereafter itmoved into its headquarters building which was built and equipped by IDA. Its organisation chart and cadre wasfinalised and qualified staff appointed thereafter. During the project period ICTAD's management implemented amassive staff development programme/ which involved over 350 foreign and local fellowships.
b) Training activities"ICTAD trained new workers and upgraded others using a variety of approaches - viz.(i) directly in their own centers;(ii) indirectly by assisting other training centers improving the curriculum and programs;(iii) training the trainers;(iv) providing training materials, equipment and physical facilities (some new and rehabilitation of others);(v) providing the trainees with equipment (e.g. tool kits) at subsidized prices;(vi) doing career counseling.
"The majority of the training centers supported by ICTAD (70%/o) are sponsored by the Government and the rest are runby the NGOs and private sector. The number of workers trained have surpassed the SAR target numbers. To increasethe supply of semi-skilled, skilled and managerial personnel to the construction industry, ICTAD trained over 96,000workers as masons, carpenters, electricians, various construction skills and senior and middle managers reaching 130%of the project target. In addition, the Operator and Mechanic Training Division within ICTAD provided training onconstruction equipment mechanics and operators to 8,100 workers achieving 131% of the project target In respondingto the emerging industry needs, the same division expanded its operations to train an additional 3,000 supervisors anddrivers".
c) Construction industry developmentICTAD is recognised as a focal point for the development of construction industry in Sri Lanka. Its play a vital role inidentifying shortcomings and initiating remedial action as far as construction industry is concerned. A considerableamount of work have been done and its impact on the construction industry is already felt. Industry is deeplyappreciative of ICTAD's substantial contribution to strengthen the construction industry as a whole.
ICTAD's significant contribution is identified below.
(i) technology development
Conducts studies on alternative construction materials such as compressed soil blocks, micro concrete roofing tiles(MCR), use of kempas and commonly used local timber etc. have been undertaken. Information on constructionmethods, materials, and equipment available in the other countries and relevant to local conditions have also beenprovided. Studies on appropriate technology have been carried out and information dessiminated, information onappropriate specifications, standard and building regulations have also been provided.
(ii) improvement of the operating environment
Construction statistics and price indices are published quarterly and the "Information Center" which has been set-upwithin ICTAD provides upto date information on construction statistics, cost analysis, price data, etc., available fromthe date base set-up in ICATD. A Construction Economics Unit which works very closely with the Dept of Censes andStatistics has been set up. The study on "up-grading of consultancy services" has been made and its recommendations
39
are now being implemented. A 'Directory of Consultants" have been published and a system of registration has beeninitiated. A manual on fire prevention in buildings has been prepared and publications of bidding procedures, contractconditions, pre-qualification requirements etc. have been made.
(iii) development of private contractorsICTAD assisted the establishment of the National Association of Construction Contractors of Sri Lanka (NACCSL)with loans and accommodation within its premises. The association has now over 4000 members and several outstation branches.
A system of registration and grading of contractors has also been introduced and is working statisfactorily.Government contracts are awarded only to those who are registered contractors. A scheme for "National ConstructionExcellency Awards" have been introduced in 1990 and annual presentations are made with a view to achieving qualityassurance at construction sites. A small contractor development programme was conducted through seminars andworkshops and is expected to benefit the construction industry as a whole since the bulk of the construction work ishandled by small contractors.
(d) Cost recovery and sustainablity
"'ICTAD's aggressive ways in generating revenue consist of almost twenty activities and most of the revenue comes fromhiring equipment and building facilities and from fees on courses, testing, and subscription. The total revenue (costrecovery) increased more than six times during 1989 - 1994 period and reached Rs.32 million and the share ofoperation costs increased from 6% to 30% during the same period. ICTAD has prepared a business plan titled"Beyond 2000" that shows that cost recovery could be increased further to reach 42% of the operating costs by 2000.
Furthermore, plans for ICTAD to audit Government and foreign contracts in construction industry for 0.25% fee of thetotal contract value are under way. This will involve streamlining the processes of tendering, award and monitoringimplementation. Such an activity is expected to generate significant income estimated at Rs.38 Million (more thanoperational costs in 1995) and in the same time, it will require additional expenditure for creating a technical divisionwith specialized staff. ICTAD has revised its business plan to reflect these additional activities and expect furtherincrease in income generation by 2000.
40
PART I - PROJECT IMPLEMENTATION ASSESSMENT
(A) BACKGROUND
The intense economic activity and the buoyant trend in the construction industry following the implementation ofan open economy policy of the new government in 1977, created a high demand for manpower skills in theconstruction industry. It also created the need for systems and procedures and sophistication in technology andimprovement of the operating framework for the construction industry.
In this background the Government of Sri Lanka (GOSL) with the assistance of the World Bank established andfunded the Construction Industry Training Project (CITP) in 1981 (Project Credit 1130-CE), the main objective ofwhich was to establish a unified modular system of training in construction related trades for large numbers ofpersons - who were to be trained to limited but employable skill levels.The project was successful in achieving all its objectives. Following the success of the CITP Project, the emphasisof which was training of manpower, both the World Bank and Government of Sri Lanka agreed to institutionalisethe project to facilitate the development of the construction industry as a whole through which the improvement ofthe operating system of the construction industry would be given priority.
It was in this background that the ICTAD was established in 1986 and World Bank funding under a project titledthe Second Vocational Training Project amounting to 13 Million SDR was initiated. The project period was nineyears. A Technical Assistance programme jointly funded by the UNDP and GOSL was also identified in terms ofwhich the Technical Assistance programme was executed by the ILO.
(B) PROJECT OBJECTIVES AND COMPONENTS
1) to create and institutionalise the frame-work to sustain training and industry development efforts.2) increase the supply of semi-skilled and managerial personnel to the industry by training about 50,000 new
entrants construction workers.3) improve quality of manpower going into the sector by up grading about 26,000 existing semi-skilled and
managerial works to the construction industry4) qualitative improvement objective to be achieved by instituting an industry training programme to train
around 500 instructors, up grading curricula monitoring and evaluating skilled training and trade testingabout 40,000 skilled workers and supervisors.
5) improvement of the operating environment of the construction industry6) development of domestic construction contractors7) initiating a system of cost recovery of training of expenditure
(C) PROJECT SUSTAINABILITY
A number of income generating measures designed to increase revenue (cost recovery) were adopted which yieldedan income of approx. Rs. 32 Million.ICTAD plans to undertake Technical Auditing of large government and foreign funded construction consultantsfor a 0.25% fee of the total contract which is expected to yield an income of Rs. 38 Million per year what will bemore than the operational costs of the last year of the project. ICTAD has drawn up a Business Plan for itsactivities till year 2000 in terms of which ICTAD would be getting a limited government grant till year 2000 andfrom year 2000 ICTAD would generate sufficient income to be self financing.
(D) BANK PERFORMANCE
The staff of the World Bank made a significant contribution towards the success of the project trough verysupportive working relationships and effective professional advice given throughout the project period. At crucial
41
stages of the operation of the project the Task Managers and review mission staff advised and at times coerced theproject staff to think in terms of creative and innovative options/alternatives in implementing the project. Theadoption of such concepts as "capacity building and delivery quality improvement of partner training agencies" andestablishing successful links through twinning arrangements with similar regional agencies are just a few examplesof such initiatives.
The bank recognised the need for staff development particularly the senior staff to ensure effective inputs to projectimplementation through such exposure. To achieve this objective it ensured that fellowships were properlytargetted in terms of project needs. One important reason for the success of the project has been the success of thefellowship programme which ensured that the project was always manned by trained personnel.
The IDA also recognised the need for the continuation of the Technical assistance programme after te UNDP/ILOTA project terminated. This ensured that expert inputs both foreign and local were available while fellowships forstaff not yet trained were also available.
The Bank facilitated speedy resolution of issues by responding quickly (particularly towards the latter stages of theproject) in all matters referred to it by the project.
The review missions were timely, adequate and extremely effective and fruitful in monitoring project progress andin assisting project implementation activities.
(E) ASSESSMENT OF OUTCOMES
1. Project relationshipThe success of te project was the result of the very cordial relationship which existed between the Bank and theproject staff and between the Project and other participating groups such as the UNDP, ILO DER and other partneragencies. Another contributing factor was the high level of professionalism of all parties involved with the project.
2. Technical Assistance & Consultancy ServicesTechnical Assistance was provided through the UNDP/ILO Project till Dec'92 and through a separate TA budgetprovided by IDA. TA was adequate and useful. However, the quality of the ELO experts made available wasbelow expectations; while the quality of those obtained after Dec'92 through direct negotiations and approval ofthe IDA has been fairly high. While the fellowship programme was well targeted was extremely useful, theexternal collaborator program under which specialised services were made available to supplement in-house staffensured that project activities did not suffer on account of non- availability of in-house staff.
(F) PROJECT IMPLEMENTATION DATA
The Staff Appraisal Report and the working paper supplied very useful information which was consideredadequate. Communications between the GOSL and IDA was timely and will focussed. The project staffmaintained good records which supplied upto date information on civil works, procurement, feliowships,disbursements and other matters which were made available to visiting review mission in time.
(G) LESSONS LEARNT
The Institute for Construction Training and Development (ICTAD) which was created through the SecondVocational Training Project had no physical facilities such as workshops for the training of large number ofconstruction workers. ICTAD therefore had either to establish such physical facilities itself or utilize the facilitiesof institutions belonging to other state agencies. Although the successful utilisation of spare capacities ofworkshops of competing state agencies was a challenging exercise, ICTAD (the project) chose this alternative andensured that the assistance and participation of host agencies was obtained through a well planned and coordinated
42
programme. For instance the technical training centers and workshop equipment and technical staff of the Ministryof Higher Education were utilized to conduct both the new entrant and further training programmes of the project.Through persuasion and successful relationships about 123,000 construction workers were trained utilising thespare capacities of these institutions. Likewise the facilities of the National Apprenticeship and Industrial TrainingInstitute (NAITA), the Center for Housing Planning and Building (CHPB), the Department of Labour and StateEngineering Corporation (SEC) and several other state agencies were obtained for this challenging exercise.
The Project ensured that this exercise was successfully coordinated through a Steering Comnmittee of theSecretaries of the relevant Ministries which was chaired by the Secretary of the Ministry to which the projectbelonged.
Since the Ministries involved were competing agencies each resisting any encroachment of its own area ofoperations, such an exercise would not normally be devoid of problems. All operational problems and issues weresettled through this Steering committee which met regularly. This is a classic example of a successfulimplementation of a project with the active involvement, participation, and cooperation of competing agenciescarefully monitored and coordinated by a Steering Comnmittee consisting of the executive heads of all theparticipating agencies. Tlherefore this has been a very challenging exercise where effective co-ordination hasensured its success.
In a departure from the traditional project design practice where the technical assistance component includes aheavy share of foreign experts provision was available for the engagement of local expert staff as "externalcollaborators" to supplement the available in-house staff. Accordingly a large number of local consultants wererecruited under the UNDP/ILO TA project and thereafter with IDA funds on the termination of the UNDPIILOproject. The engagement of a multitude of local consultants in specialised areas has facilitated capacity building inthe industry. There was also a considerable cost saving from this arrangement. The facility of engaging a largenumber of local consultants whenever needed to supplement in-house staff ensured its smooth operation andtherefore has been one of the major contributing factors for the success of the project.
The availability of sufficient technical assistance both through the UNDP/ILO TA Project and from IDA under thespecial TA budget on termination of UNDP ILO project has greatly facilitated the training of in-house staffthrough fellowships both foreign and local. The fellowship programme was well targetted in termns of projectneeds. The project therefore had the benefit of a team of qualified and well trained personnel who were exposed tothe latest technology and methods practiced elsewhere. The exposure of senior professionals through fellowshipsgranted for participation in seminars/ workshops and short study visits was of particular benefit to the project.Each officer returning on completion of a fellowship was expected to submit a report and make a presentation tothe rest of the project staff so that some of their knowledge and experience was passed down to the others in theproject.
An important feature of this project has been the commitment of the government right throughout the project. Allrelevant state agencies and personnel from the highest to the lowest have acted with commitment and a sense ofurgency in regard to the project activities. There has been a ready response to project needs particularly in respectof requests for amendment of the development credit agreement (DCA). The Board of Directors and the highermanagement always responded positively in regard to project related matters. The mechanism of monitoringproject progress by the higher management through monthly progress and review meetings ensured achievement ofproject targets as scheduled.
The establishment of the institution as a semi autonomous statutory body where policy formulation was through aBoard of Directors which met every month greatly facilitated project implementation activities.
The achievement of project objectives particularly relating to the improvement in the operating environment wasmade possible in view of the close collaboration and active corporation of the project with the different professional
43
bodies such as the Institute for Engineers, Institute of Architects, the National Association of ConstructionContractors of Sri Lanka (NACCSL) etc. Apart from these bodies being represented in the Board of Directors,there was constant rapport and dialogue between them which facilitated industry development. The functioning ofthe Consultative Committees for training and Consultative Committee for industry development for sometime wasalso helpful to the project.
ICTAD has taken some significant steps to ensure cost recovery and sustainability.
ICTAD's aggressive ways in generating revenue consist of almost twenty activities and most of the revenue comefrom hiring equipment and building facilities and from fees of courses, testing, and subscriptions. The totalrevenue (cost recovery) increased more than six times during 1989 - 1994 period and reached Rs. 32 million andthe share of operation costs increased from 6% to 30% during the same period. ICTAD has prepared a businessplan titled "Beyond 2000" that shows that cost recovery could be increased further to reach 42% of the operatingcosts by 2000.
Furthermore, plans for ICTAD to audit Govermment and foreign contacts in construction industry for 0.25% fee ofthe total contract values are under way. This will involve streamlining the processes of tendering, award andmonitoring implementation. Such an activity is expected to generate significant income estimated at Rs. 38Million (more than operational costs in 1995) and in the same time, it will require additional expenditure forcreating a technical division with specialized staff. ICTAD has revised its business plan to reflect these additionalactivities and expect further increase in income generation by 2000.
44
Attachment A
TOOLS & EQUIPMENT SUPPLIED TO TRAINING CENTRES I INSTITUTIONS
EQUIPMENtT TYPES .TRAINING CENTRE I INSTITUTION WORKSHOP
Hend Tool Portle Fixed A.V. Training Aldo Training ManualoEquipment EquIp mnt Equipment & Models Tool Kits
* Use of ICTAD Formula for price variation - 1993 onwards
* Consultancy Practices - 1994
* National Conference on Project Management - 1994
* Shortage of Construction materials - 1994
* Cement - 1995
* Introduction of Standard Bidding Documents - 1995 and 1996
* Bricks - 1996
* Structural and reinforcement steel - 1996
* ISO 9000 for construction - 1996
49
Attachment C
NATIONAL CONSTRUCTION CONTRACTOR'S ASSOCIATION(NCCASL)
With the beginning of the first project (CITP credit 1130 CE) the NCCASL was established with
project assistance in the year 1981. Form the year 1986 ICTAD with the assistance of IDA
initiated a programme to upgrade the domestic contractors which in tum helped the Association.
The Association grew in strength over the years and its membership now exceeds 3500. Today,
it has nine branches operating throughout the island including the North nd East. All the branches
are operating under the umbrella of the parent office housed in the ICTAD building itself. In
addition to the Council of the parent office each branch has its own directorate to manage the
operations and affairs within its purview. The Chairman of each branch also flunctions as one of
the Directors of the parent body. Each branch has employed technical personnel (mainly
Engineers) to advise and assist specially the small scale contractors.
The Govemment of Srn Lanka, recogneed the Association by making the membership of the
NCCASL a mandatory requirement for contractors to be eligible to tender for GOSL funded
projects.
Some of the noteworthy features of the NCCASL are;
* Every member of NCCASL requires to adhere to the Code of ethics developed by it whiletendering and executing construction contracts.
* The professionalism of contractors has increased remarkably since the formation of theAssociation.
* Many small scale contractors have benefited from the technical services provided by theAssociation.
* NCCASL is represented on the Board of Directors of ICTAD.
* It has taken a leading role in the establishment of a company (Construction Industry GuaranteeFund) to issue bonds and guarantees for construction works and in the formulation of theproposed Construction Act.
* It makes representations to the policy makers for the development of the construction industryin general and issues related to contractors specifically.
* NCCASL is a fulltime member of the Intemational Federation of Asia & Western PacificContractors Association (IFAWPCA) and plays leading role in its activities.
* It conducts training programmes and related activities for the advancement of the contractors.
50
Attachment D
Summary of Construction Norms and Tendering Procedures/DocumentationStandardized through ICTAD
ICTAD DOCUMENTS
In addition to the training materials ICTAD's publications could be categorized as
a) Contact Docunents
b) Specifications for works
c) General
CONDITIONS OF CONTRACT
* Conditions of contract developed by ICTAD are used as standard conditions ofcontract in all the state sector projects. The use of this document by the private sectorin their projects is increasing.
* ICTAD Conditions of Contract for small works is used by all the Provincial Councilsand other state sector agencies in smaller works.
3 ICTAD has recently revised its contract conditions in line with the Standard BiddingDocuments of the World Bank The World Bank has also accepted the use of ICTADConditions of Contract for Bank fimded National Competitive Bidding projects.
* ICTAD Formula is used for reimbursement of price variation.* Consultancy service documents of ICTAD are used in all state sector projects.
SPECIFICATION FOR WORKS
ICTAD has developed the standard specification for works in the following areas and isbeing used widely right throughout the country.
* Building Construction* Water Supply Works* Irrigation works* Land reclamation works* Coastal Works* Aluminium works* Floor Finishes
GENERAL PUBLICATIONS
ICTAD has also published the following documents
* Construction statistics and indices* Tender procedure* Standard Forms used in Construction Management* Guide lines for registration of contractors* Series of documents on use of some important construction materials
51
Attachment E
LIST OF FELLOWSHIPS - 1993UNDER WORLD BANKfTA BUDGET
NAME OF OFFICER FIELD COUNTRY PERIOD COST
01 Mr W D K Femando Study VisKts to establish links, USA, HongkonG 06-Mar-93 to 528,492.00and attend seminars in USA on Philippines 10-Apr-93Construction equipment
02 Mr K M D Perera Study Visits to Human Resource Bangkok 14-Mar-93 to 309,297.00Management InstUtutions & Manag. 10-Apr-93of Change & Conflict in Organi.
03 Mr G A K Gajaweera -do- Bangkok 19-Mar-93 to 303,395.0010-Apr-93
04 Mr G T R Basnayake Mainteance Management of Plar UK 01-Apr-93 to 444,126.86Equipment 31-May-93
05 Mr J S S Weerasinghe -do- UK 01-Apr-93 to 444,626.8331-May-93
06 Mr R K A W Ratnayake -do- UK 01-Apr-93 to 444,126.8631 -May-93
07 Mr B S Amarasinghe -do- UK 01-Apr-93 to 444,626.8331-May-93
08 Mr D Jinasena Computer system for Accountane UK 17-Apr-93 to 703.761.70& Auditors 1 1-Jul-93
09 Mr U L Perera -do- UK 17-Apr-93 to 703,761.701 1-Jul-93
10 Mr B D P De Silva Human Resource Management UK 17-Apr-93 to 703,761.7011-Jul-93
11 Mr A B Punchi Banda Training In ATS Software Singapore 27-May-93 to 84,582.0005-Jun-93
12 Mr L P C Llyanarachchi -do- Singapore 27-May-93 47,675.5505-Jun-93
13 Mrs R G Nanayakkara Training Managers course) U.K. 27-May-93 to 691,896.5014 Mr S Jayanetti -do- ) 28-Aug-93 691,896.5015 MrS Neelaratne JICA- Training Programme on Japan 31-May-93 to 37,582.00
Maintenancee of Const. Machinery 03-Aug-9316 Mr A S Munasinha Analysis of Labour Statistics for U.S.A 27-Sep-93 to 696,703.60
Policy formulation in the 12-Nov-93Human Resources Sector
17 Mr M N M Zafar Project Management - DOL U.K. 06-Jun-93 to 822,998.28Seminar on Labourforce Statistic Ireland 01-Aug-93
18 Mr N S Abeywardene Purchasing & Materials U.K. 05-Jun-93 to 1,134,929.61Management 09-Sep-93
19 Mrs C Kulathilake Contractor Development U.K. 11-Sep-93 to 425,354.25Enviommental, Impact 10-Dec-93Assessment
20 Mr H H E Dharmapala Procurement & Stores Mgnmt Canada 18-Sep-93 to 429,765.2510-Dec-93
21 Mr E I Munasinha Visit to Construction Industry Hongkong 07-Oct-93 to 399,997.0022 Dr S M A Perera (Board) Training & Development Korea, Tokyo to 400,997.0023 Dr M E Joachim Agencies In South Korea Singapore 31-Oct-93 422,091.00
(Ministry) IFAWPCA Convention24 Mr W J R de Mel Study on information service Singapore 22-Oct-93 544,422.60
& Publicity programme, HongkongVisit & Study development of SanFransisco toindices & other cost Pilippinesinformation, 17-Nov-93VisA to PCA, IFAWPCA. ACEL &CMDF on Project Management &Cost information activities.
25 Mrs S M D F Siriwardhane JiCA - 3rd Country Training Philippines 25-Oct-93 to 37,158.00(Dept of Buildings) Programme 04-Dec-93
JICA FUNDEDTotal 11,898,025.62
52
LIST OF FELLOWSHIP - 1994UNDER WORLD BANK TA BUDGET
NAME OF OFFICER FIELD COUNTRY PERIOD COST
01. Mr P P Mahharachchi Organisation & Development for Australia 21-Jan-94 to 449,947.50ICTAD Supervisors Training Singapore 08-Apr-94
02. Mr Zafar - ICTAD ) National Skill Standards & Trade Australia 12-Feb-94 360.936.0003. Mr P D Dharmawardana) Testing Philippines to
(NAITA) Singapore 201,929.0004. Mr G 0 D Ekanayake I -do- 06-Mar-94 201,929.00
(NAITA)05 Mr T G Weerasinghe Supervisory & Management Trainir Hongkong 16-Feb-94 291.010.00
(ICTAD) Pttiippines06. Mr A G P Herath -do- Singapore to 128,704.00
(MOHE)07. Mrs P M Kodikara -do- 128,704.00
(OUSL)08. Mr K G Piyadasa -do- 06-Mar-94 128,704 00
(MOHE)09. Mr G Neelaratna Industry Board Training Programmi Singapore 19-Feb-94 400.107.00
(ICTAC) Australia10. tvMr G A M Sumanasekera -do- 209,127.00
(RCDC)I 1. Mr G A Makavita -do- to 239,901.00
(W A Perera & Co.)12. Mr U L G A Perera -do- 232.260.00
ICOE)13. Mr K G N Dharmapriya -do- 13-vlar-94 203.706.00
(CMOC)i4. Mr S G V A Gunasekera Const. Craft Training & Allied Australia 18-Mar-94 383,358.00
(ICTAD) Matters Singaporei5. Mr Daye Senaratna -do- Philipoines to 206.049.00
(DOL)16 Mr K Kaluarachchi -do- 206.049 00
(MOHE) 1 0-Apr-9417 Mr W P Somapala - NYSC -do- 206,049.0018 Mr L P C Liyanarachchl 3rd intemational conference Malaysia 20-Mar-94 to 145.186 45
on "The Concrete Fulure and Singapore 28-Mar-94post-seminar follow up
19 MrE I Munasinha & Study Visit Australia 06-Mar-94 to 435,880.0020. K M D Perera -do- Melboume 01-Jun-94 435,880.00
SydneySingapore
21 Mr K Wijaya Guna ardena Certificate/Diplonia in UK 09-Jun-94 to 437.016 00Professional Studies 09-Oct-94
22 Dr M E Joachirr 22-May-94 to 115,933.0028-May-94
23. Mis A B Punchi Benda & Study Tour China 09-Jul-94 to 572.037.5024. W D K Femando South Aust 08-Aug-94 572.357.5025. Mr A R W M M C Amarakoon U.K 16-Aug-94 tc 840.40J.25
USA Ph.i 20-Sep-9426 Mi G A K Gaja-weera Study Tou. U K 27 -AUg-94 to 4-9U bO0 50
17-Oct-94
27. Mr D L Dharmastlr JlC'A Japan I 6-Aug-94 to 431 3 7507-Nov-94
28 tMr K W D Suchantherstne HCA Japan la-Auo-94 to 431 13 7.¶07-Nov-94
TOTAL 8.318.406.20
53
LIST OF FELLOWSHIPS - 1995UNDER WORLD BANK TA BUDGET
NAME OF OFFICER FIELD COUNTRY PERIOD COST(RS)
01. Mr D R N Femando ) Workshop on engineering of Madras 03-Jan-95 to 43,205.00structures for mitigating damage 07-Jan-95
02. Mr D F Waudagedara ) due to cyclones Madras 03-Jan-95 to 43,205.0007-Jan-95
03. Mr Kodikara Conference on Construction Singapore 11-Jan-95 to 49,442.40(Open University of S.L)] Project Management 12-Jan-95
04. Mr L P C Liyanarachchy Conference on the Concrete Future New Delhi 08-Mar-95 to 89,226.00of Malaysia 1 8-Mar-95
05. Mr W J R de Met I F A W P C A Indonesia 1 6-Apr-95 to 116,840.0020-Apr-95
06. Mr S S T Sumanasekera Seminar on Advance Technology of Japan 11-May-95 to 37,405.35Construction(JICA) 25-Jun-95
07. Mr P D Dias Conference Japan 20,000.00
08. Mr Wanasingha ) Australia & 16-Jun-95 to 438,951.2309. Mr Kocrituwakku j Singapore 29-Jul-9510. Mr A B J Wimaladasa ) Site Supervision programme -do- -do- 438,951.23l1. Mr K M S Bandara ) -do- -do- 438,951.2312. Mr K A T Kumarasinghe ) -do- -do- 438,951.23
17. Dr Ruwan Weerasekera Conference on "Our World in 23-Aug-95 to 57,285.93Concrete & structures 25-Aug-95
18. Mr K Illangaratna ) 145,640.3619. Mr R M Ranatunga ) 145,640.3620. Mr H M U B Herath ) Training in Construction Plant Singapore 20-Nov-95 to 145,640.3621. Mr I P S K Hemachandra) Diagnostics 1 5-Dec-95 145,640.3622. Mr R P P Perera ) 145,640.3623.. Mr R M S Bandara ) 146,140.33
TOTAL 3,595,972.73
54
LIST OF FELLOWSHIPS - 1996UNDER WORLD BANK TA BUDGET
NAME OF OFFICER FIELD COUNTRY PERIOD COST
01. Mr K A D S Senaratna ConstructiQn Trades Singapore & 01-Jan-96 to 420,744.00Philippines 04-Mar-96
02. Mr B M G J Bandara -do- -do- -do- 420,744.0003. Mr H P Kulatunga . -do- -do- -do- 420,744.00
04. Mrs. Sriyani de Silva Contract Disputes Hongkong 01-Mar-96 to 27,555.00Singapore 17-Mar-96
05. Mrs S M D T Nishani Construction Trades Philippines 24-Feb-96 to 396,727.00Singapore 28-Apr-96
06. Mr K D N de Silva -do- . -do- 392,798.00
07. Mrs Shanthini Rajathdurai Singapore 28-Jun-96 to 42,000.0028-Jul-96
08. Mr Anura Nanayakkara Singapore 23-Jun-96 to. 63,140.0030-Jun-96
Ministry
09. Mr H P W Premadasa ) Italy 05-May-96 to 120,212.00-10. Mr Y G Amaradasa ) 31-May-96 120,212.00
TOTAL 2,424,876.00
55
Attachment F
CONSTRUCTION AND REHABILITATION WORKS DONEBY ICTAD
NATURE OF WORK . APPROXIMATE AMOUNT YEAR OF COMPLETIONINVOLVED
1. Construction of Savsiripaya Building Rs. 43.3 M 1987(Head Quarters Building)
2. Construction of a training centre for Rs. 56 M 1996supervisory and Management Training
3. Improvements to the training centre for Rs. 7.2 M 1988Operator and Mechanic Training atGalkulama.
4. Construction of Workshop and Stores Rs. 5,706,784. 00 1994Buildings for Technical Colleges underMinistry of Higher Education.
5. Construction of Workshops for Rs. 334,810. 00 1996Non- Government Organisations
6. Improvements, Repairs & Maintenance of Rs. 2 M 1996Savsiripaya Building.
DETAILS OF WORK DONE (GOVERNMENT AND NON-GOVERNMENT ORGANISATIONSAPPEAR IN THE ANNEXURES - I & 11)
56
1ANNEXURE- I
GOVERNMENT ORGANISATIONS - (TECHNICAL COLLEGES OFMINISTRY OF HIGHER EDUCATION)
CONSTRUCTION OF WORKSHOPS & STORES BUILDINGS
LOCATION OF T/C AMOUNT SPENT DATE OF COMPLETION(Rs.) STAGE - I STAGE - II
WORKSHOPS - 03 NOS.
1. Badulla 1,149,409.00 26.10.1988 May 1993
2. Balapitiya 1,100,000.00 Dec. 1988 Jan. 1994
3. Anuradhapura 1,200,000.00 Dec. 1987 Dec. 1994
TOTAL 3,449,409.00
STORES - 08 NOS.
1. Homagama 250,000.00 July 1988 Feb.1993
2. Matara 350,000.00 March 1988 Jan. 1994
3. Balapitiya 300,000.00 March 1988 Jan. 1994
4. Galle 278,395.00 July 1988 March 1994
5. Kurunegala 170,000.00 April 1988 Jan. 1994
6. Hasalaka 304,800.00 October 1988 Jan. 1994
7. Ratmalana 400,000.00 January 1988 Dec. 1993
8. Kalutara 204,180.00 February 1989 Feb.1993
TOTAL (Rs.) 2,257,375.00
GRAND TOTAL 5,706,784.00
57
ANNEXURE -II
NON-GOVERNMENT ORGANISATIONS
CONSTRUCTION OF WORKSHOPS
CENTRE AMOUNT SPENT YEAR_Rs.) COMPLETION
WORKS HOPS
1. Youth Enterprise Imformation Centre 100,000.00 1996Ambalanthota (New Workshop)
2. Dehaml Comunity Service FoundationHakmana (Completion of Workshop) 50,000.00 1996
3. Sri Sonuththara Vocational Training 9,810.00 1995Centre - Alawwa(Completion ofworkshop).
4. Sri Ariyajothi FoundationThuthiripitigama (New Workshop) 75,000.00 1996
5. Vajirasri Childrens Home 100,000.00 1996Pita kotte (New Workshop)
TOTAL (Rs.) 334,810.00
58
MAP SECTION
IBRD 28407
80' 81' SRI LANKA 82' I
nt Pedro SECOND VOCATIONAL TRAINING PROJECTIMPLEMENTATION COMPLETION REPORT
PROJECT COMPONENTS:
GCAD HEADQUARTERS
TECHNICAL COLLEGES:
* WORKSHOPS
o STORES
> / -- uloicitivu 6; MECHANIC/OPERATORTRAINING CENTER (WORKSHOPS)
/ { \p HEAVY EQUIPMENT OPERATORTraloimann /) o*naku6m; )2- 9 TRAINING CENTER (STAFF HOUSING)
o SELECTED CmES
_9. DISTRICT CAPITALS 9°-
Toll NATIONAL CAPITAL
SECONDARY ROADS
MAhIN ROADS
G u l f o f Por k \ RAILROADSMaznnar j \ || \ DISTRICT BOUNDARIES
S T,MeRvEdRiyt;Y ( Trincomalee
j . ~~~Anurcd hpig nlale
Koipiti 9
1; ys fi St G N > teraint s \\ locchena
-80~~~~ Arlo ro \nwil
p As Wa / | t. h~~~~~~Dhi t i'-a alb'
Munnessorama _,.o- ' - / 'K fh O
Madam ttne Mo
INDIAEAN / Thi Korodiuc
- 7u ll;^ nto I / < s \_ + > ( Eodullo co 1ots _
7I I MIrd In a I I Iduoup,Too odtoto e
Wodduia X }P
Kaluboro M ; dompe s
Emeilo hlst of oo tt oby
Balopihye t \ \ , W lb-d ubin,
KILOMETERS Guil N b cD/ o oyasostsoto0 801a; 2 3I Tbnoot.p, h rB-
