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Competencies has been added as a feature for the 3.1 release. This specification is very old - a more up-to-date specification can be found here: https://docs.moodle.org/dev/index.php?title=Competency_Based_Education
For the API see: https://docs.moodle.org/dev/index.php?title=Competency_API
Thankyou to the people who contributed to this earlier specification. This page has now been removed to prevent confusion with the newer specification/feature. You can view older versions of this page in the history.