The PEBIMO project was designed to determine whether bilingual education could improve the quality of primary education in Mozambique, recognizing that Portuguese is not the native language of the majority of Mozambican students. The project began in 1992 with 8 cohorts of first grade in 2 provinces; during this investigation, students were in fourth grade. For this program evaluation, data were gathered using both qualitative and quantitative methods. Results were mixed, due primarily to difficulties in applying an appropriate bilingual education model. Teachers, administrators, and parents were pleased because use of the first language has facilitated teaching and learning in all subject areas, and students have learned to read and write in both languages, and parents reported their children are more motivated, take initiative at home, and help others with homework, indicating increased prestige of native languages. The principal short-term program recommendation is to continue developing students' first- language skills while working intensively on Portuguese as a second language, concentrating on oral skills to facilitate transition to all-Portuguese instruction in sixth grade. The ministry of education is encouraged to expand bilingual education gradually. Appendixes contain materials used in study. (Contains 38 references.) (Author/MSE)