Tanzania - Primary Education Development Program

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 32071 IMPLEMENTATION COMPLETION REPORT (IDA-35700 TF-50588) ON A CREDIT IN THE AMOUNT OF SDR 119.1 MILLION (US$150 EQUIVALENT) AND A GRANT IN THE AMOUNT OF US$50 MILLION TO THE UNITED REPUBLIC OF TANZANIA FOR THE PRIMARY EDUCATION DEVELOPMENT PROGRAM June 23, 2005 Human Development 1 Country Department 4 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective July 30, 2001) Currency Unit = Tanzania Shillings (TSh.) 1 TSh = US$ 0.001124 US$ = TSh 890 FISCAL YEAR 2002 2004 ABBREVIATIONS AND ACRONYMS BEDC Basic Education Development Committee CAS Country Assistance Strategy COBET Complementary Basic Education and Training CSO Civil Society Organizations DFID Department for International Development (UK) DG Development Grant EFA Education for All ESDP Education Sector Development Program ETP Education and Training Policy GER Gross Enrollment Ratio GNP Gross National Product GoT Government of Tanzania ICR Implementation Completion Report IDA International Development Association LGAs Local Government Authorities LGRP Local Government Reform Program MDA Ministry, Department, Agency M&E Monitoring and Evaluation MLYD Ministry of Labor and Youth Development MoEC Ministry of Education and Culture MoF Ministry of Finance MoU Memorundum of Understanding MTEF Medium-Term Expenditure Framework NECTA National Examination Council of Tanzania NER Net Enrollment Ratio NGO Non-Governmental Organization NMB National Micro-finance Bank MKUKUTA National Strategy for Growth and Reduction of Poverty PEDP Primary Education Development Program PEFR Public Expenditure and Financial Review PER Public Expenditure Review PFP Pooled Fund Partners PMO Prime Minister's Office PO-RALG President's Office- Regional Administration and Local Government PRSC Poverty Reduction Support Credit PSLE Primary School Leaving Examination  PSRP Public Service Reform Program PTR Pupil Teacher Ratio SEDP Secondary Education Development Program TIE Tanzania Institute of Education TRCs Teacher Resources Centers UPE Universal Primary Education URT United Republic of Tanzania WDC Ward Development Committees Vice President: Gobind Nankani Country Director Judy M. O'Connor Sector Manager Dzingai B. Mutumbuka Task Team Leader/Task Manager: Rest Barnabas Lasway  TANZANIA Primary Education Development Program CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 6 5. Major Factors Affecting Implementation and Outcome 16 6. Sustainability 18 7. Bank and Borrower Performance 19 8. Lessons Learned 22 9. Partner Comments 23 10. Additional Information 25 Annex 1. Key Performance Indicators/Log Frame Matrix 26 Annex 2. Project Costs and Financing 28 Annex 3. Economic Costs and Benefits 29 Annex 4. Bank Inputs 30 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 32 Annex 6. Ratings of Bank and Borrower Performance 33 Annex 7. List of Supporting Documents 34 Annex 8. Policy Matrix and Tranche Release Conditions. 36 Annex 9. Letter of Primary Education Sub-Sector Policy from the Minister of Finance 38 Annex 10. Borrower Implementation Completion Report 42 Annex 11. Cofinancier Commments 51 Annex MAP of Tanzania IBRD 33494 55  Project ID: P071012 Project Name: Primary Education Development Program Team Leader: Rest Barnabas Lasway TL Unit: AFTH1 ICR Type: Core ICR Report Date: June 23, 2005 1. Project Data Name: Primary Education Development Program L/C/TF Number: IDA-35700; TF-50588 Country/Department: TANZANIA Region: Africa Regional Office Sector/subsector: Primary education (97%); Adult literacy/non-formal education (3%) Theme: Education for all (P); Decentralization (S) KEY DATES Original Revised/Actual PCD: 02/28/2001 Effective: 01/02/2002 01/02/2002 Appraisal: 07/16/2001 MTR: Approval: 10/09/2001 Closing: 10/31/2004 10/31/2004 Borrower/Implementing Agency: GOVERNMENT OF TANZANIA/PRIME MINISTER'S OFFICE Other Partners: STAFF Current At Appraisal Vice President: Gobind Nankani Callisto E. Madavo Country Director: Judy M. O'Connor James W. Adams Sector Manager: Dzingai B. Mutumbuka Dzingai B. Mutumbuka Team Leader at ICR: Rest Barnabas Lasway Donald B. Hamilton ICR Primary Author: Hongyu Yang 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: HL Institutional Development Impact: SU Bank Performance: S Borrower Performance: HS QAG (if available) ICR Quality at Entry: HS Project at Risk at Any Time: No  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: Background At the time of preparation of the Primary Education Development Program (PEDP), the overall performance of the education system in Tanzania was far below what would be required to meet its human resources development needs. The country was critically faced with issues related to poor education quality, low access and retention in primary education. The issues were primarily due to insufficient education and school inputs, resulting in inefficiencies in the system. These issues were further linked to the insufficient public funding of the sector, thus imposing high unaffordable costs on households. In 1995, the Ministry of Education and Culture (MoEC) prepared an Education and Training Policy (ETP) that emphasized liberalization of the education sector in step with the rest of the economy, and increasing the accountability of services provided to clients. At the time the ETP was prepared, various donors, including the International Development Association (IDA), were supporting the Government through different individual projects with small geographical and program coverage. Support provided to the sector by IDA was through the Human Resources Development Project (HRDP), designed as a pilot project to cover 5 districts for the Community Education Fund, and 8 districts for the Girls Secondary Education Scholarship components respectively. Around the mid 90s, the Government embarked on a process towards developing a sector program to cover all the education and training subsectors in collaboration with donors. External consultants financed by various donors were used to facilitate the process by conducting different studies. This was time consuming, and by 1999, a sector wide program was still not in place. In 2000, the Government, through its own initiative, produced the Education Sector Development Program (ESDP) framework. The framework provides a structure and guidance through which sector dialogue between the Government, Development Partners, and the Civil Society Organizations (CSOs) could be enhanced. This would, therefore, help to bring to an end confined projects and ad hoc sector dialogue between the Government and individual external Agencies. The framework provided further guidance towards developing sector programs to include primary, secondary, vocational, tertiary, and non-formal education. The ESDP has different Development Committees for each subsector as follows: (i) The Basic Education Development Committee (BEDC), responsible for secondary and primary education under the leadership of the Permanent Secretary(s) of the Ministry of Education and Culture (MoEC), and the Presidents Office Regional Administration and Local Government (PORALG); (ii) the Vocational and Folk Education Development Committee (VFEDC), under the leadership of the Permanent Secretary(s) of the Ministry of Community Development Gender and Children (MCDGC), and the Ministry of Labor and Youth Development (MLYD); and (iii) the Tertiary and Higher Education Development Committee (THEDC), under the leadership of the Permanent Secretary of the Ministry of Science Technology and Higher Education (MSTHE). The Prime Minister's Office (PMO) is responsible for coordinating overall ESDP by bringing and linking the BEDC, VFEDC and THEDC policies and interventions through the Inter-ministerial Advisory Committee (supposed to bring together Directors of Policy Planning and Donor representatives) and the Inter-ministerial Steering Committee (members of the committee are the Permanent Secretaries). Because of the sizable nature of the required investment in the overall ESDP, as well as the national and global priority to embark and implement strategies to achieve Education for All (EFA), the Government - 2 -  decided to address first, the issues in the primary education subsector. This led to the formulation of the PEDP, which is a Government program to reform delivery of primary education covering the entire country. The design of the program was finalized in July 2001. The process involved broader consultations of stakeholders across Government ministries, Donor Partners, the Bank and the CSOs. Besides the ESDP context, the PEDP design was within the Poverty Reduction Strategy (PRS), Vision 2025, Local Government Reform Program (LGRP), Public Service Reform Program (PSRP), Public Expenditure Review (PER) and the Medium Term Expenditure Framework (MTEF). The Government's PEDP was approved by the Parliament in July 2001. Implementation of the program started shortly thereafter in 2001, financed by Government's own funds. In line with the PRS, in July 2001, the Government abolished school fees and other levies for primary education. It was expected during the PEDP design that the abolition of fees would lead to an enrollment surge. The design therefore, had included options through which an enrolment surge could be managed. One of the adopted options was to use a phasing approach to the enrollment expansion to enroll 7-10 year olds between 2002 and 2006. This would help eliminate the backlog of 8-10 year olds, while establishing the capacity to admit all 7-year olds in Grade 1 from 2006 onwards. As expected, primary enrollment increased sharply in 2001 and 2002. Although age 7 is the enrollment age in primary education in Tanzania as stipulated in the Education Act of 1978, studies had indicated that majority of the children started school at a later age before the PEDP implementation started. This was the reason for the 8-10 year old backlog in addition to inadequate resources for a Universal Primary Education (UPE). 3.1 Original Objective The objective of IDA financing of the PEDP was to support the Government of Tanzania to reform the delivery of primary education. Specifically, the objectives of the PEDP were to expand school access; improve education quality; and increase school retention at the primary level. These objectives would be achieved through improved resource allocation and utilization; improved educational inputs; and strengthened institutional arrangements for effective primary education delivery. The PEDP included the following: (a) introduction of Capitation and Development Grants for direct disbursement to primary schools; (b) further development of educational inputs to improve quality; and (c) institutional capacity building at central, district, and school levels for efficient operation of the primary education system. In order to support the Government of Tanzania in achieving its primary education objectives, IDA financed the PEDP through Structural Adjustment Credit Lending (IDA Credit No. 3570 TA) operation. The lending instrument was considered appropriate given the broader reforms that would be implemented with a national coverage involving different institutions and multi-stakeholders. The instrument would also help to further strengthen the Government's own system at the center and the LGA levels, through various interventions such as on financial management, procurement, and overall management and implementation of the program. Therefore, an IDA Credit in the amount of 119 million Special Drawing Rights (SDR), or US$ 150 million equivalent, was approved by the Board on October 9, 2001 and became effective on January 2, 2002. The Credit was structured in three-tranche disbursements of SDR39.7 million each. The Netherlands also requested IDA to act as Administrator of a Grant in the amount of US$50 million in support of the PEDP. Consequently, IDA entered into a Grant Agreement with the United Republic of Tanzania (URT) dated October 4, 2002. Disbursements of the Grant were also structured in three tranches of US$10 million in the first tranche and US$20 million in the two subsequent tranches to match the IDA tranche releases. The funds were disbursed after the Government met the Policy Matrix and Tranche Release Conditions described in the Development Credit Agreement (DCA). The Conditions/Agreed Actions helped to re-enforce the Governments' reforms and strengthening of the various systems. The operation closed as scheduled on October 31, 2004. - 3 -  In addition to the IDA Credit of SDR 119 million and the Netherlands Grant of US$50 million, further support was provided by other Donor Partners using pooled fund mechanisms, totaling US$154 million during the Government fiscal years 2001/2002 and 2004/2005. The Pooled Fund Partners (PFP) include the Netherlands, Canada, Sweden, Finland, the European Union, Belgium, France, Norway and Ireland. While IDA and Netherlands Grant tranches were disbursed almost annually, the agreement of the PFP was to disburse their financial support quarterly. The PEDP, being a Government program, continues to be implemented even after the closing of the IDA Credit and the Grant. The PFP are still supporting the program. Continued support to primary education by IDA is planned through the next Poverty Reduction Support Credit (PRSC III), which is expected to be approved in July 2005. In addition, there is ongoing dialogue through the ESDP involving Donor Partners, the Government and the World Bank towards harmonizing support to the overall sector within the ESDP using a SWAp approach and budget support modalities. 3.2 Revised Objective: The objectives were not revised during implementation. 3.3 Original Components: The PEDP had four major components: Component I