Somalia - Education Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-5180-SO MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 19.7 MILLION TO THE SOMALI DEMOCRATIC REPUBLIC FOR THE EDUCATION REHABILITATION PROJECT MARCH 9, 1990 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 Official Exchange Rate US$1.00 880 Somali Shillings (SoSh) SoSh 1.00 = US$ 0.0011 (as of January 1990) Government Fiscal Year January 1 - December 31 Academic 'ear For primary and secondary level: September to June For University level: October to July Abbreviations and Acronyms CEA Community Education Associations EEC European Economic Community EFS Educational Facilities Section IDA International Development Association MOE Ministry of Education and Culture NEB National Examination Board OPEC Organization for Petroleum Exporting Countries PER Public Expenditure Review PFP Policy Framework Paper PMU Project Management Unit UNCDF United Nations Capital Development Fund  FOR OFFICIAL USE ONLY SOMALIA EDUCATION REHABILITATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Somali Democratic Republic Beneficiara: Ministry of Education and Culture Amount: SDR 19.7 million (US$26.1 million equivalent) Terms: Standard, with 40 years maturity Financing Plan: IDA US$26.1 miillion UNCDF US$ 3.2 million Government US$ 3.2 million TOTAL US$32.5 million Economic Rate of Return: Not applicable Staff Appraisal Report: Report No. 8180-SO MapR: IBRD No. 21789 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.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE SOMALI DEMOCRATIC REPUBLIC FOR AN EDUCATION REHABILITATION PROJECT 1. The following memorandum and recommendation on a proposed development credit to the Somali Democratic Republic for SDR 19.7 million (US$26.1 million equivalent) is submitted for approval. The proposed credit, on standard IDA terms with 40 years maturity, would help finance the rehabilitation of primary education and of the education cector's institutions. 2. Background: Education in Somalia is in a state of crisis: education's share of Government's recurrent expenditures has declined dramatically from an already low 112 in FY80 to only 1.57 in FY88, endangering the continued existence of public education. School enrollmenits are down (in 1988, only 10 percent of primary age children were in school) and the quality of instruction is low. Factors which have contributed to this decline at the primary level include: (a) low teacher salaries. which at about US$70 yearly amount to only one quarter of per capita GDP, compared to an average in Eastern Africa of live times per capita GDP; (b) the inexperience and lack of training of many primary teachers, whose average stay on the job is only 4.3 years; (c) severe shortage of textbooks and instructional materials; (d) dilapidated state of school buildings and furniture; (e) lack of educational supervision and school inspection; and (f) absence of a sound examination and achievement testing system. Similar problems exist throughout the education sector except at the National University or Somalia which receives considerable budgetary and technical assistance from Italy. The average annual rates of decline for primary, secondary and technical and vocational education from their peak levels in the 1980s were, respectively, 7.4 percent, 9.1 percent and 11.1 percent. In contrast, enrollments in higher education increased steadily and consistently with an average annual increase of 24.7 percent. 3. The decline of public education, especially at primary level, inhibits Somalia's ability to build a literate and numerate labor force and thut. jeopardizes its long-term development prospects. The Ministry of Education and Culture (MOE), aware of the long term consequences of past and present neglect of education, has initiated actions to address these problems: In 1990 the education budget was increased by about 82% in real terms over the 1989 budget, compared to an increase of about 25% in real terms between 1988 and 1989. In addition, following IDA's advice, MOE is in the process of: (a) introducing policy and institutional changes in order to improve the operational efficiency of the system; (b) dismissing non-working primary teachers from the civil service; (c) strengthening the communities' involvement in and support for the operation and maintenance of their primary schools; and (d) reducing the financial burden on the population by adjusting the school calendar to the agricultural seasons and by waiving requirements for school uniforms. These last measures will be on an experimental basis in four administrative regions and will be closely monitored and evaluated.  - 2 - 4. Rationale for IDA Involvement: To prevent a collapse of the education system, Somalia urgently needs both a restructuring of its public expenditures to increase the share of education, as well as support from the donor community. At the same time, it needs to establish an orderly strategy for the full recovery of the education system, starting with primary education as the building block. This is why government approached IDA as the agency best placed to coordinate a multidonor analytical and financial effort. In the context of recent discussions on resource allocations through the Bank Public Expenditure Review (PER), agreement has been reached that the share of education s#ill be raised significantly over the life of the proposed project. The proposed project is intended to make an initial contribution to the longer term process of rehabilitating primary education. Further investments in education would be required in the future. The project, anticipating that improvements will occur, therefore also focuses on strengthening the institutional capacity of the MOE and on laying the foundation for further investments in education by IDA and other donors, including OPEC and EEC. 5. Project Objectives: The central objective of the proposed project is to revitalize the education system through sustainable measures designed to restore teaching quality and to reverse the decline in enrollments. To achieve this objective the project will: (a) improve the quality of primary education nationwide through teacher and headmaster training and provision of textbooks and teachers' guides; (b) strengthen the uOEis institutional capacity for planning and managing the education system and for implementing investment projects; and (c) increase access to primary education in 4 of the country's 18 administrative regions through the construction and/or rehabilitation of primary schoo'.s. 6. Project Description: The proposed project would provide support for: (a) Teacher Upgrading: Development and delivery of (i) in-service upgrading programs for about 1,500 primary teachers (about one- quarter of the current teaching force); and (ii) professional development programs for about 300 headmasters, school inspectors, regional and district education officers. (b) Textbooks: (i) printing of about 1.6 million locally-developed textbooks and 100,000 teachers' guides and their distribution to all primary schools; (ii) establishing a pilot cost recovery scheme in the Benadir region; and (iii) further strengthening the textbook writing and manuscript preparation programs of the Curriculum Development Center (CDC). (c) Institutional Development: Strengthening of the MOE with support for: (i) the Departments of Planning, Finance, Personnel and Primary Education to improve data collection and analysis, strengthen budget preparation, improve personnel management, strengthen management of primary education and community mobilization, and streamline operational systems and procedures; (ii) the School Inspectorate for effective school inspection on a regular basis; (iii) the National Examinations Board (NEB) to  - 3 - improve its competence in test construction, measurement and evaluation; and (iv) the Office of the Minister to establish monitoring and evaluation functions. (d) Physical Facilities: Rehabilitation or construction of about 120 primary schools in four regions (Lower Shebelle, Middle Shebelle, Bay and Gedo), benefiting about 48,000 students; provision of school furniture, book storage space, community meeting space, water supplies and latrine blocks; construction and furnishing of about 120 staff houses for headmasters, and office space for district education officers and school inspectors; and establishment of in-service training facilities for 600 teachers per annum in three locations. (e) Project Management: Strengthening the existing project implementation unit (PMU) for effective implementation of the rehabilitation program and for coordinating and monitoring all educational activities financed by the project. 7. The project would be implemented by the Ministry of Education and Culture over a seven year period. The project would finance civil works, furniture, equipment, materials, training programs, specialist services and selected operational costs. The total cost of the project is estimated at US$32.5 million equivalent, with a foreign exchange component of US$25.2 million (77Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements are shown in Schedule B. A timetable of key project processing events and the status of Bank group operations in Somalia are given in Schedules C and D, respectively. A Map and the Staff Appraisal Report No. 8180-SO dated March 9, 1990 are also attached. 8. Agreed Actions: The government has submitted to the Association (a) a letter of educational policy intent; (b) a plan of action on policy and institutional development identifying specific measures for implementing the policies; (c) a five year education sector financing plan for FY90-94; and (d) evidence indicating that the 1990 budget has allocated to MOE the agreed minimum amount required for financing of the education sector. The 1990 budget includes provisions for 130 percent increase in basic salaries for teachers and a raise between 200 percent to 400 percent in professional teaching allowances for different categories of teachers. 9. During negotiations, the government gave assurance regarding: (a) preservice teacher training capacity; (b) timing of teacher career incentives; (c) policy measures for primary teacher caLedr development; (d) conditions of service for Somali teachers and headmasters; (e) pilot cost recovery schemes for textbooks in the Benadir region; (f) conclusion of contractual arrangements between MOE and Community Education Associations (CEA) before funding of school rehabilitation; (g) joint annual reviews of the implementation of policy measures, budget allocations, expenditures, and project components; (h) institutional arrangements for the proposed PMU, including its Educational Facilities Section (EFS); (i) the establishment of NEB; (j) and conduct of monitoring and evaluation  - 4 - functions. As a condition of effectiveness, the PMU within MOE would have been established, and the Director of the PMU and the Advisor on Evaluation and Monitoring would have been appointed. Conditions of disbursement for the primary school reconstruction component would be: (a) satisfactory progress in establishment and operation of CEAs (b) satisfactory operation of the EFS. 10. Benefits: The project will concentrate on the rehabilitation of primary education, which plays a seminal role in the development of Somalia's human resources. It will provide resources needed for quality improvements and increased access to education, and restore the financial, institutional and human basis for long-term sustainable sector development. The project will also support community participation on an experimental basis. The project will directly benefit about 480,000 students and 8,000 teachers country-wide by providing textbo ks and teaching materials over the project period. 11. Risks: The major risks associated with this project are: (a) that the Government may not provide an adequate budget for education for the years 1991-199i,; (b) that teachers and officials of the Ministry of Education and Culture will leave the education system for more lucrative employment; (c) that rural communities may not be able to provide sustained support for their schools; and (d) that the civil unrest may spread, drawing more resources away from the social sectors and undermining the developmental goals of the project. The problems of under-financing will be reviewed annually at the macro-level through Policy Framework Paper (PFP) discussions and PER process and at the project level through annual implementation reviews. The risk at (b) will be addressed by establishing a more attractive career structure for teachers and introducing incentives linked to teacher training. With respect to the risk at,(c) project- financed community education officers will assist communities in developing viable and sustainable mechanisms of support. This aspect of the project is of a pilot nature, and it is understood that community support may only be realized in the form of services, not financing. To cover the risk at (d) the design of the project allows for flexibility in implementation, such as relocation of construction activities to more secure administrative regions and adjustments to the number of textbooks to be provided. 12. Recommendations: I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President by Moeen A. Qureshi Attachments Washington D.C. March 9, 1990  Schedule A SOMALIA EDUCATION REHABILITATION PROJECT ESTIMATED COSTS AND FINANCING PLAN USS million Local Foreign Total ESTIMATED COSTS a/ 1. Upgrading Teaching Staff 2.50 0.86 3.36 2. Textbookst Development, Procurement Distribution 0.20 4.99 5.19 3. Institutional Development 0.62 2.77 3.39 4. Rehabilitation of Physical Facilities 2.24 9.66 11.90 5. Project Management 0.49 1.84 2.33 Total Base line Costs 6.05 20.12 26.17 Physical contingencies 0.25 2.00 2.25 Price contingencies 1.05 3.03 4.08 TOTAL PROJECT COSTS 7.35 25.15 32.50 Financing Plan Local Foreign Total IDA 4.15 21.95 26.1 UNCDF - 3.20 3.2 Government 3.20 - 3.2 7.35 25.15 32.5 a/ Project costs have been calculated net of taxes  Schedule B Page 1 of 2 SOMILIA EDUCATION REHABILITATION PROJECT Procurement Method and Disbursements Procurement Method Total* ICB LCB Other N.A. Cost Civil Works Civil Works 11.3 2.4 13.7 (10.3) (10.3) Goods Vehicles 0.7 0.1 0.8 (0.7) (0.7) Furniture 1.2 0.1 0.1 0.4 1.8 (1.2) (0.1) (0.1) (1.4) Instructional Materials 4.8 0.1 4.9 (4.8) (0.1) (4.9) Equipment 0.7 0.1 0.1 0.1 1.0 (0.7) (0.1) (0.1) (0.9) Services Technical Assistance 2.2 2.2 (2.2) (2.2) Project Management 0.4 0.4 (0.4) (0.4) Training 3.1 3.1 (2.4) (2.4) Overseas Training 1.0 1.0 (1.0) (1.0) Monitoring/Research/ 0.9 0.9 Evaluation (0.7) (0.7) Incremental Operating Costs Materials/Supplies 0.2 0.2 (-) (-) Fuel/Oil/Lubricants 0.5 0.5 (0.2) (0.2) Vehicles Operation and 0.4 0.4 Maintenance (-) (-) Equipment Maintenance 0.2 0.2 (-) (-) Building Maintenance 1.0 1.0 (0.7) (0.7) Furniture Maintenance 0.4 0.4 (0.3) (0.3) Total 7.4 14.3 2.4 8.4 32.5 (7.4) (11.8) (2.4) (4.5) (26.1) Numbers in parenthesis are the respective amounts to be financed by IDA. *Includes amounts to be financed by UNCDF, and procured under its own procedures.  -7- Schedule B Page 2 of 2 Disbursements Amount Category (US$ Million) 2 1. Civil works 6.9 902 of total expenditures. 2. Furniture, equipment and 5.9 1002 of foreign instructional materials expenditures and 90% of local expenditures. 3. Vehicles 0.6 10OZ of foreign expenditures and 90% of loc&l expenditures. 4. Technical Assistance 2.0 1002 of total expenditures. 5. Projtrct Management 0.3 9O0 of local expenditu-s. 6. Training 3.5 10OZ of total expenditures. 7. Monitoring and Evaluation 0.7 1002 of total expenditures. 8. Incremental Operating Costs 1.1 1002 through December 31, 1991; 8.0Z from January 1, 1992 to December 31, 1993; 50% from January 1, 1994 to December 31, 1995; 202 from January 1, 1996 to December 31, 1997. 9. Unallocated 5.1 Total Credit Amount 26.1 Estimated IDA Disbursements (US$ million) IDA Fiscal Year FY91 FY92 FY93 FY94 FY95 PY96 FY97 FY98 Annual: 0.80 2.94 5.03 6.66 4.78 4.54 1.10 0.25 Cumulative: 0.80 3.74 8.77 15.43 20.21 24.75 25.85 26.10  -8- Schedule C SOMALIA EDUCATION REHABILITATION PROJECT Timetable of Key Project Processing Events (a) Time taken to prepares 7 months (b) Prepared byt Government with UNDP/IDA Assistance (C) First IDA missiont February 1988 (d) Appraisal missions June 1989 (e) Negotiations: February 1990 Cf) Planned Date of Effectivenesst June 1990 (g) List of Relevan.t PCR and PPAR No. 1789 dated 11/77 PPARs: First Education Project - Cr. 247-SO. PCR No. 4573 dated 06/83 Second Education Project - Cr. 511-SO. PPAR No. 7137 dated 03188 Third Education Project - Cr. 738-SO.  -9- Schedule D Page 1 of 2 STATUS OF BANK GROUP OPERATIONS IN SOMALIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of September 80, 1989) -------(USS Mlillon)