Papua New Guinea - Primary Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 10820 PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) JUNE 3C, 1992 MI CROF IHE COPS eport No. 108Type: CHAI, HC / X3 Operations Evaluation Department 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 Currency Unit = Kina (K) at Appraisal 1980 K 1.00 - US$1.50 US$1.00 - K 0.67 US$1.00 = SDR 0.78 Annual Average 1982 1983 1984 1985 1986 1987 1988 Kina 0.86 0.87 0.94 1.00 0.98 0.89 0.87 FISCAL YEAR OF BORROWER January - December ABBREVIATIONS CDC Curriculum Development Center CDD Curriculum Development Division DESP Diploma in Educational Studies (Planning) ERC Education Resource Center GPNG Government of Papua New Guinea INSET In-Service Training ISBEd In-Service Bachelor of Education MPU Management and Planning Unit MSU Measurement Services Unit NDF National Department of Finance NDOE National Department of Education NPEP National Public Expenditure Plan NPO National Planning Office NWS National Department of Works and Supply PDOE Provincial Division of Education PIP Public Investment Program PMC Project Management Committee PMSO Provincial Materials and Supply Officer POMITC Port Moresby In-Service Teachers College PPEF Provincial Primary Education Fund PTTC Primary Teacher Training College REU Research and Evaluation Unit RMS Resource Management System RPA Regional Planning Adviser SAR Staff Appraisal Report SDU Staff Development Unit SPA Senior Professional Assistant SSDO Senior Staff Development Officer TA Technical Assistance TTC Teacher Training College, also known as PTTC UPE Universal Primary Education UPNG University of Papua New Guinea THE WORLD BANK FOR OFFICIAL USE ONLY Washington, D.C 20433 U.S.A. Office of Director-General Operateons Evaluation June 30, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Performance Audit Report on Papua New Guinea Primary Education Project (Credit 1087/Loan 1934-PNG) Attached, for information, is a copy of a report entitled "Project Performance Audit Report on Papua New Guinea Primary Education Project (Credit 1087/Loan 1934-PNG)" prepared by the Operations Evaluacion Department. Yves Rovani by H. Eberhard K6pp 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. FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) TABLE OF CONTENTS Page No. PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . i BASIC DATA SHEET . . . . . . . . . . . . . . . . . . . . .iii EVALUATION SUMMARY . . . . . . . . . . . . . . . . . . . . vii I. PROJECT BACKGROUND . . . . . . . .. . . . ..1 Introduction................ . . . . I Project Objectives and Scope . . . . . . . . . .. 2 Project Cost and Financing. . .... . . . . 3 Implementation Plan . . . . . . . . . . 4 II. PROJECT IMPLEMENTATION AND OUTCOME .. .o... . . .. 4 Project Management and Implementation Experience . . . 4 Project Changes . . . . . . . . . . . . . . . . . . . 5 Provision of Physical Facilities . . . . . . . . . . 5 Technical Assistance . . . . . . . ... . . . . . . 5 Implementation of the Main Project Components . . . . . 6 Strengthening Administration . . . . . . . . . . . . 6 Strengthening Curriculum and Textbook Development, Examinations and Testing . . . . . . . 6 Teacher Training . . . . . . . . . . . . . . . . . . 6 The Provincial Primary Education Fund . . . . . . . . 7 Project Evaluation and Management . . . . . . . . . . 7 Studies . . . . . . . . . . . . . . . . . . . . . . . 7 Project Costs . . . . . . . . . . . . . . . . . . . . . 8 Sustainability . . . . . . . . . . . . . . . . . . . . 8 Bank Group and Borrower Performance . . . . . . . . . . 9 III. FINDINGS AND ISSUES . . . . . . . . . . . . . . 10 Overview . . . .......... . . . . . . . 10 Findings and Lessons . . . . . . . . . . . . . 10 Project Design and Management . . . . . . . . . 10 Use of Project Funds for Public Administration . Improvement in the Management of Educational Resources. .......... . . . 11 Improvement of Educational Quality..... . . . .12 Improvement of Access and Efficiency..... . . . 12 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. TABLE OF CONTENTS (Continued) Issues . . . . .. . . . . . . . . . . . 13 Curriculum Development, Teacher Training and School Inspection . . . . . . . . . . . . . . 13 Planning at NDOE and PDOE . . . . . . . . . . . . . 13 The Provincial Primary Education Fnnd . . . . . . . 14 Annex 1 . . ...-........ . . . . . . . .17 PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) PREFACE This is a Project Performance Audit Report (PPAR) on the Papua New Guinea Primary Education Project, for which a Credit of SDR 9.40 million, and a Loan of US$6.0 million, were approved on December 23, 1980. The Closing Date was changed from December 31, 1987 to December 31, 1988. The Credit/Loan proceeds were fully disbursed. The PPAR is based on the Project Completion Report (PCR) prepared by the Asia Regional Office and the Government, and issued in August, 1991;!/ the Stafi Appraisal and President's Reports; the Loan and Credit Agreements; the transcript of the Executive Directors' meeting at which thk project was presented aad approved; a study of project files; and discussions with Bank and Borrower staff. An OED mission was in Papua New Guinea in May 1991 to visit selected project sites and discuss implementation experience and project outcomes with Borrower staff. Their cooperation and assistance in the preparation of this report is gratefully acknowledged. The PPAR supplements the information in the PCR, highlights implementation experience and project achievements, and discusses findinge and lessons, and issues arising in regard to the integration of curriculum development, teacher training and school inspection; national and provincial planning; and the .Provincial Primary Education Fund. The draft PPAR was sent to the Borrower for comments. The comments received are reproduced as Annex 1 to the PPAR. 1/ Project Completion Report, Papua New Guinea--Primary Education Project (Credit 1U87/Loan 1937-PNG), Report No. 8968, August 21, 1990. - iii - PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) BASIC DATA SHEET Key Project Data Appraisal Item Estimate Actual Total Project Cost (US$ million) 37.7 42.3 Overrun (%) 12.2 Credit/Loan Amount (SDRIUS$ million) Disbursed: SDR 9.4 9.4 'JS$ 6.0 6.0 Date Physical Components Completed 06/30/87 Goj30/88 No. of months since Credit/Loan Signature (weighted average) 73 85 Propertion Completed by the Above Date (Z) 85 100 Proportion of Time Overrun (2) 16 Institutional Performance Satisfactory Cumulative Estimated and Actual Disbursements (SDR and US$ million) Bank FY 1982 1983 1984 1985 1986 1987 1988 1989 Appraisal Estimate (US$) 0.2 1.8 6.2 10.6 15.0 17.G 18.0 Actualsda SDR 0.8 6.5 9.4 US$ 0.2 3.4 4.5 5.5 6.0 Actual as % of estimateL 55 134 115 103 97 97 100 Date of Final Disbursement: August 24, 1988 /a This translated into US$9.7 million due to changes in the SDR/US$ exchanga rates over the life of the project. The combined total realized was only US$15.7 million equivalent, instead of US$18.0 million expected at appraisal. Lb For comparison purposes only, the SDR amounts were converted to US$ at the exchange rate prevailing at appraisal. - iv - Mission Data No. of Staffweeks Performance Mission Month/Year Persons/L in Field Status by Activity /d Reconnaissance I 03/77 1(GE) 0.4 Reconnaissance II 07/79 3(E,GE,GE)/e 9.0 Preparation 10-11/79 5(E,GE,A,AVC,S) 20.0 Preappraisal I 11-12/79 3(A,GE,E) 9.0 Preappraisal II 04/80 5(GE,GE,A,A.E) 66.0 Appraisal 07-08/80 2(A,E) 10.2 Sub-Total 114.6 Supervision: I 03/81 1(GE) 1.0 1 II 02/82 1(GE) 1.0 1 III 06-07/82 1(GE) 1.4 1 IV 04/83 2(GE,A) 0.8 1 - M V 07/84 1(A) 0.6 1 - M VI 03-04/85 3(GE,GE,E) 3.0 1 - M VII 10-11/85 3(GE,E,A) 2.4 n.a. VIII 03/86 1(E) 0.6 n.a. IX 10-11/86 1(E) 0.8 1 - F X 03/88 1(E) 1.0 1 - F Sub-Total 12.6 Project Completion 05/89 1(GE) 2.8 TOTAL /c GE = General Educator; E - Economist; A - Architect; AVC - Audio-Visual Consultant; S - Secretary; TextC - TextboGc Consultant /d 1 - problem-free or minor problems; 2 - moderate problems; 3 - major problems. M - Management problems; F - Financial problems. I Excluding sector study by Unesco carried out during February-March 1979 by an economist and a general educator who spent 40 days in the field. Staff Inputs (staff weeks) FY 79 80 81 82 83 84 85 86 87 88 89 90 Appraisal 1.2 66.0 10.2 -- -- -- -- -- -- -- -- Negotiations -- -- 1.9 -- -- -- Supeevision -- -- 2.6 4.2 2.9 1.8 3.2 1.7 2.9 2.2 0.4 1.9 Total 1.2 66.0 14.6 4.2 2.9 1.8 3.2 1.7 2.9 2.2 0.4 1.9 -v - Other Proiect Data Item Planned Date Actual Date Reconnaissance I - - - March 1977 Subsector Study Feb/Mar. 1979 Feb.11-March 10, 1979 Reconnaissance II July 1979 July 2-12, 1979 Preparation October 1979 Oct.7-Nov.4, 1979 Preappraisal I Nov/Dec. 1979 Nov. 21 - Dec. 14, 1979 Preappraisal II - - - April 18-22, 1980 Appraisal June 1980 July 25-Aug. 8, 1980 Negotiations November 1980 November 6-7, 1980 Board Approval January 1981 December 23, 1980 Credit/Loan Signature - - - May 11, 1q1 Credit/Loan Effectiveness August 11, 1981 August 28, 1981 Project Completion June 30, 1987 June 30, 1988 Closing Date December 31, 1987 ecember 31. 1988 Allocation of uredit/Loan Proceeds (SDR and US$ million) Category Original Allocation Actual Allocation SDR % US$ Z SDR Z US$ % (1) Civil Works 1.19 12.8 0.20 3.3 1.927 20.5 .084 1.4 (2) Equipment 0.73 7.8 0.70 11.7 .591 6.3 .189 3.1 (3) Printing Services 0.06 0.1 0.10 1.7 .004 -- .688 11.5 (4) Technical Assistance & Training 2.57 27.5 2.50 41.7 2.350 25.0 3.203 53.4 (5) Part D: (Provincial sub-projents) 4.30 45.8 2.00 33.3 4.528 48.2 1.836 30.6 (6) Unallocated 0.55 6.0 0.50 8.3 ---- -- --- -- TOTAL 9.40 100.0 6.00 100.0 9.400 100.0 6.000 100.0 With the final disbursement on August 24, 1988, Loan 1934-PNG was closed. Credit 1087-PNG had been completely disbursed in 1985. - vii - PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) EVALUATION SUMMARY 1. Introduction 3. IMDlementation Experience The Papua New Guinea Primary Education Project was identified Project management of this jointly by the Bank and Unesco in complex and ambitious project was one April 1979, prepared by the of the best in the region, due Government with Unesco assistance in largely to the effectiveness of the September 1979, and appraised in two Project Management Committee, which stages by the Bank in was responsible for coordinating and November/December 1979, and overseeing all project activities. July/August 1980. The project, Despite some initial delays, most of estimated to cost US$37.7 million, the key personnel for project was to be assisted by an IDA credit implementation were appointed about of US$12.0 million and a Bank loan of six months after Credit/Loan US$6.0 million. The original Closing effectiveness. Implementation, Date of December 31, 1987 was carried out more or less as planned, postponed by a year, and the project was facilitated by a basically sound was essentially completed in August project design. Although the 1988, and the revised Closing Date of appraisal underestimated the December 31, 1988 was observed. resources actually required for the textbook and the regional educational 2. Obiectives and Proiect Content planning components, the expert services were effectively utilized to In line with the Government mitigate implementation problems. development strategy for primary There were three amendments to the education, the main objectives were Credit/Loan Agreement, of %iich two to (a) improve the management of were routine reallocation of funds. educational resources, and (b) assist One amendment, totally unrelated to the National Department of Education the project due to an administrative (NDOE) and the provincial authorities error, deprived the project of in improving educational access and US$600,000 which was used to fund a quality. To achieve these public administration expert to objectives, the project was to advise the PNG Government. The finance administrative development; project was essentially completed in development of curriculum, textbooks, August 1988, three months before the and examinations; teacher training; revised Closing Date of December 31, project evaluation and management; 1988. The major objectives were and, through the Provincial Primary generally achieved, and all covenants Education Fund (PDEF), the were satisfactorily met. improvement of educational access and quality in community schools. - viii - 4. Results Government commitment to fund a textbook and teaching materials Institutional development was resupply progr.m, although problems variable, due to a mixed outcome of related to book distribution remain the staff training program (which to be colved; and (b) the Research retained slightly more than 50 and Evaluation Unit, a Bank percent of trainees). However, as initiative but supportel by the NDOE, the brain-drain was to other is expected to exert an enduring government and private sectors, it influence on management of the was not a total loss to the country. education sector. Sustaining On the other hand, the project monitoring and evaluation, and provided the impetus for the student achievement testing, will establishment of the Research and require continuous staff development Evaluation Unit, the Management and and adequate recurrent funding, for Planning Unit, a Curriculum both of which the Government has Implementation Office in the provided support. Curriculum Development Division, and the position of Provincial Materials 6. Findings and Lessons and Supply Officers with responsibility for overseeing the The generally successful supply of textbooks and other implementation of this complex and materials to schools. The project ambitious project was due to the provided 1.4 million books (45 effective coordination and overseeing titles), compared with the appraisal of project activities by the Project target of 467,000 (18 titles), Management Committee (PMC). The sufficient to supply a set of core experience suggests that subject textbooks for every two multicomponent projects should children in school. Standardized establish a body similar to the PMC test scores showed a statistically in composition and responsibility. significant increase in student Institutional development has been learning achievement between 1982 and uneven, in part because of the lack 1986, although the gains could not be of a re-entry program for trainees, directly attributed to the project. about half of whom eventually left The enrollment ratio improved from 58 the sector. Experience in this percent (1978) to 71.5 percent project confirms the observation (1988), but the average teacher-pupil drawn from experience elsewhere that ratio remained static at 1:31 during staff re-entry schemes should be an 1980-88. Average student dropout integral part of training programs, rates, however, appeared to have first to motivate staff in their worsened, from 30 percent in 1979 to training, subsequently to attract 38 percent in 1988. This was them back to the institutions for explained by the fact that increased which they were trained. Finally, enrollments, especially in the first improvement in access to schools will two grades, also led to increased not necessarily also result in dropouts, particularly in greater efficiency, unless specific disadvantaged areas. measures are taken to ensure that the increased intake of students in the 5. Sustainability. first two or three grades will remain through the primary cycle. The prospects for project sustainability appear reasonably good, as evidenced by (a) the PROJECT PERFORMANCE AUDIT REPORT PAPUA NEW GUINEA PRIMARY EDUCATION PROJECT (CREDIT 1087/LOAN 1934-PNG) I. PROJECT BACKGROUND Introduction 1.1 The development strategy of Papua New Guinea in the 1980s placed high priority on improving the quality of life of its citizens, most of whom were rural. While recognizing that the agricultural sector would remain, for the foreseeable future, the main source of income generation and employment, the Government of Papua New Guinea (GPNG) considered it necessary to develop a resource base which comprised mainly foreign capital and expertise to implement national development programs. To carry out its development strategy, the GPNG established the annual National Public Expenditure Plan (NPEP), a rolling four- year plan for the public sector. Implementation of the NPEP, however, was affected by the decentralization process: while the provincial governments would have greater control over spending, they also faced the serious problem of shortage of trained, experienced staff to implement their own development plans. The provincial governmentb needed the assistance of the GPNG as well as external aid agencies to develop the capability for planning, budgeting, and project identification, preparation, and implementation.I/ The problem of balancing provincial and central government financial responsibility for education had a direct bearing on the implementation of the primary education project. 1.2 Although Papua New Guinea succeeded in building a complete four-tier (primary, lower and upper secondary, and higher) education system within a generation, there were weaknesses in the system. Inadequacies in primary education restricted the output of high quality secondary school graduates who could proceed to higher education. Thus, the chronic shortage of skilled people could be traced to a weak primary education system which the Bank appraisal mission found was suffering from ineffective educational management, poor quality, enrollment stagnation, and financial constraints. 1.3 The project was identified by a joint Bank/Unesco mission in April 1979 and prepared by the Governmedt with Unesco assistance in September 1979. Project pre-appraisal and appraisal were carried out by the Bank in November/December 1979 and July/August 1980, respectively. The project cost, estimated at US$37.7 million, was to be assisted by ar. iDA credit of US$12.0 million and a Bank loan of US$6.0 million. 1/ Given the geographic configuration of the country and the lack of a sense of national identity and unity, political decentralization was thought to be a necessary response to secessionist pressures from tribal groups. Thus, provincial governments were gradually assuming regulatory and financial control in some areas, while sharing power with the GPNG in others. President's Report, No. P-2912-PNG, dated December 1, 1980, paras. 8-11. -2- Project Objectives and ScoRe 1.4 In line with the GPNG development strategy for primary education, the main project objectives were to (a) improve the management of educational resources, and (b) assist the National Department of Education (NDOE) and the provincial authorities through the Provincial Department of Education (PDOE) in improving access and quality in primary education. 1.5 In accord with the above objectives, the project was to implement a three-pronged strategy aimed at achieving the following (Staff Appraisal Report, No. 3027b-PNG, dated November 18, 1980, paras. 3.01-3.04): (a) Improvement of educational resource management through training administrators, planners and teachers to make better use of human resources and help implement the GPNG decentralization policy; accelerating the localization of the Primary Teacher Training Colleges (PTTCs) by raising the proportion of local instructors/lecturers from 28 percent to 50 percent; and retarding the growth of recurrent costs through an average 15 percent increase in class size and systematic school location planning. (b) Improvement of educational quality through a reduction of the dropout rate of 30 percent to 25 percent; raising the pupil learning achievement score from 40-50 percent to about 60 percent; and raising teaching efficiency. (c) Expansion of enrollments by extending educational opportunities to underserved areas so that the enrollment ratio would rise from 50 percent to 68 percent. 1.6 The project had six main components, designed as follows: Administration (US$1.1 million, excluding contingencies). The focus was on local and overseas training of about 40 provincial and 10 national staff to strengthen local planning and administrative capacity, especially the ability to prepare provincial education plans. The local residential training would be conducted at the University of Papua New Guinea (UPNG) and the Port Moresby In- Service Teachers' College (POMITC). Overseas training would consist of 10 weeks' study tours for 20 provincial superintendents and about 10 NDOE staff, and 12-month fellowships for five NDOE staff and provincial superintendents. Curriculum, Textbooks, Examinations and Testing (US$5.4 million, excluding cox,tingencies). This group of activities, aimed at improving primary education, would be carried out by the Curriculum Development Center (CDC) which would be strengthened by adding a textbook development unit, an examination unit, and an audiovisual unit to be provided with the appropriate physical facilities and equipment. -3- Teacher Training (US$2.3 million, excluding contingencies). The existing facilities of the POMITC, complementing the new, contiguous CDC facilities, would be improved and expanded, including new hostel facilities for 80 students, to increase its in-service training capacity. About 63 staffyears of local/overseas training of teacher trainers would be provided to increase the number of local staff in the eight pre-service PTTCs from 36 to 70, with a corresponding reduction of the dependence on expatriate staff and thus a deceleration of the growth of recurrent education costs. Provincial Primary Education Fund (PPEF, US$20.7 million of which US$7.5 million would be Bank financing). Aimed at assisting the provinces improve educational quality and access to schools, the PPEF would finance additional teaching posts for new or enlarged schools; building materials (a) to erect new or extend existing schools, and (b) to erect or improve teacher housing at existing schools which had experienced difficulties in attracting teachers because of the lack of housing; equipment and materials for new or expanded schools; and experiments/studies to improve quality and access. All provinces would receive a share of the PPEF, based on agreed eligibility criteria (SAR, Annex 2). Over 50 percent of the items to be financed by the PPEF was expected to be incremental operating costs because the greatest constraint to increased access was the lack of funding for new teaching posts (SAR, para. 3.17). Project Evaluation and Management (US$1.8 million excluding contingencies). This would finance 20 staffyears of (expatriate) specialist services for the initial staffing of an evaluation unit, and 4.5 staff years of fellowships for degree training of three local staff who would eventually replace the expatriate staff. Project management would also be strengthened with 10 staffyears for a project manager and project accountant. Other Components (US$0.8 million, excluding contingencies). These would comprise financing the construction of 20 staff houses (US$600,000) for project specialists, and the preparation of future projects (US$100,000), including a special intensive study of quantitative and qualitative problems of secondary education (US$100,000). The study, to be completed by December 1983, was expected to provide recommendations on necessary national and provincial policy and educational changes required to increase enrollment, reduce wastage, and improve educational achievement. Project Cost and Financing 1.7 The total project cost was estimated at US$37.7 million, comprising the following: US$16.9 million, including contingencies, for the identifiable project items; US$16.1 million for the incremental cost over the 1981 allocation of NPEP sectoral projects in provincial primary education during the 1983-85 period (the PPEF); and US$4.7 million, as a matching contribution to the PPEF, for the estimated cost of school construction financed by local communities -4- during the 1981-83 period (SAR, para. 5.01). Of the total cost, the Bank Group was to finance US$18.0 million; the GPNG, US$13.9 million; and the local communities, US$5.8 million equivalent (SAR, 5.08). Implementation Plan 1.8 The project combined elements of a conventional loan with those of a sector loan, the latter characterized by provincial subprojects to be designed and carried out by the provincial authorities on approval by the central authorities which would administer the PPEF. Thus, the project was to be implemented by the existing national and provincial line agencies, and coordinated by NDOE staff. Overall responsibility for project coordination was vested in a Project Management Committee (PMC), a policy-implementing and decision-making body responsible to the Budget Priorities Committee. The PMC was to comprise the Secretaries for Finance and for National Department of Works and Supply (NWS), or their representatives, and chaired by the Secretary for Education. The executive office of the PMC was to be the NDOE Assistant Secretary, Planning Services, assisted by a project manager, procurement officer, an accountant, and a part-time senior architect from NWS. The NDOE, together with the National Planning Office (NPO) and the National Department of Finance (NDF), was to ensure that the PPEF would be used in accordance with the implementation procedures agreed between the Bank Group and the GPNG. II. PROJECT IMPLEMENTATION AND OUTCOME Proiect Management and Implementation Experience 2.1 The management of this project can be said to have been one of the best in the region. Although there were initial delays in staffing the PIU, especially in recruiting an accountant, 14 technical assistance positions for the project were filled by early 1982, about six months after Loan/Credit effectiveness. Arrangements for project management were carried out more or less as planned, i.e., with the PMC coordinating and overseeing project activities, which were reviewed and recorded at regular meetings. The minutes of these meetings served as quarterly reports to the Bank, which was thus kept informed of implementation problems as well as pr-Rress. 2.2 Implementation was facilitated to a large extent by a basically sound project design. The approach adopted for meeting the project objectives were tried and tested strategies: training local staff to strengthen national and provincial institutional capability in managing the sector and improving educational access and efficiency; and combining teacher training with curriculum development and provision of educational materials to improve quality. The project design, however, underestimated the resources required to achieve some of the main objectives, particularly in regard to textbook development, printing and distribution, and technical assistance in the form of Regional Planning Advisors for drawing up provincial education development plans. Nevertheless, expert services were effectively utilized within the resource constraints of the project to mitigate, if not entirely resolve, implementation problems. The project was essentially completed, and the Credit/Loan proceeds fully disbursed, -5- three months before the revised Closing Date of December 1988. The main objectives were generally achieved, and all the covenants were satisfactorily met. 2.3 Proiect Changes. There were three amendments to the Credit/Loan Agreement effected in January 1984, September 1984, and April 1987. The second and third amendments were routine reallocation of Credit/Loan proceeds. The first amendment, however, was not related to the project itself, but was apparently the result of an error by the Bank loan officer who mistakenly listed "Credit 1087/Loan 1934-PNG", instead of the Southern Highlands Project, Credit 841-PNG, which had some project savings, for funding a public administration expert to assist the PNG Government. As a result, the US$600,000 disbursed under technical assistance for public administration effectively deprived the project of a sizeable proportion of the Credit/Loan funds which could have been used for much needed expert services in the textbook component and provincial educational planning and implementation. Further details are presented in paras. 3.3. - 3.6. The project therefore appeared to have utilized more funds for technical assistance than it actually did (PCR, page 33, and para. 1.14). 2.4 Provision of Physical Facilities. Civil works implemented under the purview of the PMC, as distinct from those carried out by the provincial authorities for school construction, etc., were completed by early 1987. They included a four-block building of about 6,100 square meters for the CDC and the Measurement Services Unit (MSU) to provide staff offices, a fully equipped print shop and an audio-visual studio, communal facilities, classrooms, a meeting hall, hostels for the POMITC, and staff houses for 20 project specialists. As the site was an old swamp, cracks have appeared around various parts of the complex, noticeably the textbook storage area and the recording studio, which also was inadequately sound-proofed (PCR, p. 39). At the time of the audit, the cracks appeared to have stabilized, but there were no immediate plans to repair the building, in case the foundation continued to shift. 2.5 Technical Assistance. Technical assistance (TA), the largest component in terms of cost, utilized 93.4 staffyears of expert services and 165 staffyears of fellowships, exceeding by about 8.6 percent in both cases the appraisal estimates of 86 staffyears and 152 staffyears, respectively. Overall, the experts hired were highly competent and performed satisfactorily, although there appeared to have been some initial difficulty in their professional integration with the established local bureaucracy. The appraisal estimates of TA for the textbook component and Regional Planning Advisors (RPAs) fell short of actual needs. In the former, the project would have benefitted from the provision of a publishing manager, a book distribution expert, and a specialist to coordinate textbook use and teacher training (PCR, paras. 1.10-1.11). In the case of the latter, the insufficient funding for the experts (para. 2.3) was compounded by their delayed appointment, with the result that there was only enough time for drafting, but not implementing, provincial plans (PCR. p. 24). The major portion of fellowships consisted of local training of planners and TTC lecturers. Overall, only three percent of trainees were women. -6- Implementation of the Main Project Components 2.6 Strengthening Administration. This was to be achieved mainly through staff training and expert services. Among the 67 staff enrolled for the Diploma in Educational Studies (Planning), or DESP, course, only 32 (48 percent) completed it; and of the five officers who enrolled in the In-Service Bachelor of Education (ISBEd) (Planning) program, two graduated. In addition, 34 officers were sent on overseas study tours to broaden their planning outlook, of whom only six had enrolled in the DESP, and only two had actually completed it. Of the DESP graduates, only eight were reported employed as Senior Professional Assistant (SPA), and four as Assistant Secretary, while 13 national or provincial officers trained on overseas study tours remained in the same or equivalent positions. This left 12 of the PDOEs without trained planners (PCR, p. 46). 2.7 To promote library development, the project trained nine staff, of whom two remained to carry out training and provide technical assistance to the provinces, while the rest were posted as librarians to various Education Resource Centers (ERCs) which had been established in eight provinces during 1980-86, with proposals for five more provinces in 1989. To organize and manage the ERCs, 36 officers were trained (PCR, p. 45). In 1981 four experts were recruited on two- year contracts as Regional Planning Advisers, of whom two left before the end of their contract, and one extended his contract for another two years. Another adviser on low-cost school construction, who prepared a booklet of designs and plans for various types of classrooms and teachers' houses, resigned four months before the end of his two-year contract on grounds that the subproject was not viable because of the constraints on transport, construction supervision and the preparation of prefabricated parts (PCR, p. 35). 2.8 Strengthening Curriculum and Textbook Development, Examinations and Testing. Twenty-three officers were trained in curriculum and textbooks, and two in examinations. Specialist services used totalled 36.1 staffyears, exceeding by 29 percent the 28 staffyears allocated. A total of 45 book titles (pupils' books and teachers' guides) in 1.4 million copies and 5,500 kits were produced. The textbook production process suffered a year's delay in implementation due to difficulties in coordinating curriculum development, script preparation and production design. Book distribution encountered a variety of problems, including transportation, liaison between the Provincial Materials and Supply Officers (PMSOs) and schools, and incomplete and changing student enrollment/attendance statistics on which book distribution was based. About 55 percent of primary teachers received some, presumably ad hoe, training in the use of the new materials. 2.9 The Measurement Services Unit, which was functioning well in the new offices provided under the project, was reported to have successfully achieved its main objectives. They were: the reform of the National Grade Six Examination, the Standards Monitoring Project (which standardized test scores for year-to-year comparison), the development of test materials in the four core subjects, and the redevelopment of the National Examinations System to reflect educational aims. Further details are presented in the PCR, p. 46. 2.10 Teacher Training. With expanded and improved facilities, the POMITC provided educational/professional upgrading courses for about 1,500 teachers, -7- representing about 38 percent of unqualified teachers, and 795 principals, equivalent to 40 percent of the total number of principals. In 1989, the NDOE decided, as a staff development policy, that the in-service training program for serving teachers would be decentralized to the provinces, and the oversight responsibility delegated to the newly created Field-Based Services Unit of the Staff Development Unit. Consequently, POMITC's role as the leader in direct in- service teacher training was made redundant. Instead, it began training the trainers who would carry out the training of rank and file teachers in the provinces. To date, however, information is inconclusive on the number of teachers trained and the effectiveness of the decentralized in-service teacher training program. 2.11 To hasten the localization of PTTC staff, 38 trainees were reported to have completed, or were in the process of completing, their academic/professional upgrading courses, of whom 20 stayed with one of the PTTCs. Altogether, 89 lecturers had their academic qualifications upgraded, reflecting a dramatic improvement: in 1987, 37 percent of staff in all the PTTCs possessed a degree, compared with only 8.5 percent in 1979. The proportion of local staff doubled from 28 percent in 1979 to 57 percent in 1987 (PCR, p. 45). 2.12 The Provincial Primary Education Fund. A total of 20 million Kina was spent for school enrollment expansion projects. Nineteen of the 20 provinces submitted plans as the required basis for allocating PPEF money, but the annual rolling of plans was not done in most provinces. The principle on which the PPEF was to operate was to a large extent circumvented by the 1982 decision to sub- appropriate the PPEF money to provincial budget votes. Consequently, funds were released directly to the provinces by the National Department of Finance without any control by NDOE, which nevertheless was technically accountable for the expenditure. About 85 percent of the funds was spent on teachers' salaric*s, with the balance on primary education quality improvements (PCR, p. 38, and SAR, para. 3.17). 2.13 Project Evaluation and Management. Four officers were trained, but two eventually left the Research and Evaluation Unit. Nevertheless, with the assistance of experienced contract officers, the REU carried out high quality monitoring and evaluation through its progress reporting during the implementation of this project. The REU has become the policy research and program evaluation arm of the NDOE Secretary, but localization of staff is severely limited by shortage of candidates and high attrition rates of trained staff (PCR, p. 47). 2.14 Studies. The project earmarked US$100,000 for a special "intensive study" of quantitative and qualitative problems of lower and upper secondary education. The results were expected to provide recommendations on necessary national and provincial policy concerning enrollments, efficiency and quality (SAR, Primary Education Project, Report No. 3027b-PNG, dated November 18, 1980, para. 3.20). Although the study was reported to have been completed in December 1983, no information is available in the project files on the results which, however, were reported to have been incorporated in the design for the Secondary Education Project, Loan 2395-PNG. Judging from the discussion on issues in secondary education in the SAR on Loan 2395-PNG, one of the study findings appeared to be the existence of significant inequities in the distribution of - 8 - provincial high school (PHS) places among the country's 20 provinces. Enrollment ratios ranged from 8 percent in the Eastern Highlands and Enga to about 30 percent in New Ireland and the National Capital provinces. Inequities were alao found in enrollment composition between male and female students, the latter representing only about 36 percent of total PHS students. The Secondary Education Project would address the enrollment inequities by providing more student places in PHSs which would be located primarily in provinces with below average enrollment ratios (SAR, Secondary Education Project, Report NO. 4713-PNG, dated February 15, 1984, paras. 1.18, 1.19 and 2.02). 2.15 Included in the above study was an evaluation of the secondary schools curriculum extension pilot project. The evaluation found that there was, on the average, no significant difference in student achievement between regular provincial high schools and those which used a community-based combination academic-practical curriculum. While the communities, with which the students worked on practical subjects, and the teachers involved, were satisfied with the program, the students were concerned that the curriculum's practical bias would handicap them in their competition for post-grade 10 places in the national high schools (PCR, p. 42). Proiect Costs 2.16 The total project cost amounted to US$42.3 million, an overrun by 12.2 percent of the appraisal estimate of US$37.7 million. The foreign costs fell by 16 percent, from US$18.0 million to US$15.1 million. Local costs, which refer only to GPNG expenditures and do not include community contributions for which there are no records, amounted to US$27.2 million equivalent, exceeding the appraisal estimate of US$19.6 million by 38.8 percent. The Credit proceeds were fully disbursed as of June 30, 1985, and the Loan proceeds as of August, 1988. The original Closing Date of December 31, 1987 was postponed to December 31, 1988 to allow more time for the completion of writing, piloting, and publishing the remaining textbooks and other instructional materials. Further details are provided by the PCR, Table 3.5. Sustainability 2.17 The prospects for overall project sustainability appear reasonably good. In regard to sustaining the achievements in quality improvement, the GPNG has made a firm commitment to funding a textbook and teaching materials resupply program. The effectiveness of a resupply program, however, would depend on whether the textbook development, production, and distribution system can be further strengthened, if overall responsibility is to continue to rest with NDOE. An alternative is to leave it to the private sector, with suitable safeguards, to print and distribute the textbooks developed under the project. Evidently, this is already taking place as demon&trated by the commercial editions of those textbooks, which the provincial authorities and local community school boards could buy as necessary. Apart from working out an appropriate policy in respect of textbook printing and distribution, following the 1987 Denning Report recommendations, a related issue is provincial responsibility for recurrent education costs which, however, is not expected to take effect until the mid- 1990s. -9- 2.18 Regarding the sustainability of improvements in managing sector resources, the most significant development has been the establishment of the Research and Evaluation Unit (REU), a Bank initiative which is expected to have an enduring influence on overall management of the education sector. Sustaining a strong system of monitoring and evaluation and testing of student achievement, however, will require continuous staff development and adequate funding of recurrent expenditures. Another critical test of project sustainability is the ability of the provincial authorities to institutionalize educational planning and implementation initiated under the project in conjunction with the PPEF to improve school retention and completion. Finally, there is the nagging question of the ability of the PNG educational system to stand on its own feet if the expatriates in all the key positions were to leave. The fundamental issue is whether staff development itself can be sustained at a sufficiently high level over a reasonable time span to allow a progressive reduction of the present heavy reliance on expatriates without adversely affecting the efficiency of the system. Given the rapid expansion of PNG's economy and the consequent demand for high level manpower, it may not be possible - indeed, it may not be desirable - to replace expatriates completely, particularly in the educational system which depends for its vitality and dynamism on the continuous infusion of new ideas and practices. Bank Group and Borrower Performance 2.19 This project is notable for the fact that the national goals of PNG coincided with the emerging Bank philosophy as enunciated in the official policy paper issued in 1980, in which basic education would be the central goal of Bank education lending. By the early 1980s, the Bank was softening its earlier tendency towards formulating project objectives from its own perspective and starting to acknowledge the importance of balancing Bank concerns with indigenous plans and programs. This trend happened to match the national PNG movement to nurture an indigenous capability in sector planning and development. Thus, planning and designing of this project became a collaborative effort by the Bank and the Government; there was no question of the Bank imposing its ideas on the Government. The Government, on its part, acknowledged that one of the strongest assets of the primary education project was "the quality of professional advice the Bank provided during implementation through regular project advisory missions," which served not only the need for accountability but also "stimulated the NDOE to analyze issues, sort out options and set priorities." The supervision missions in effect were "staff development exercises that provided fresh insights and new perspectives" (PCR, Part II, para. 2.68). 2.20 Nevertheless, more could have been done by the Bank in regard to the textbook component, which did not have the benefit of a textbook expert on any of the ten supervision missions over the seven-year implementation period. Many of the implementation problems for this component might have been avoided, or at least overcome at an early stage, if there had been continuous expert advice by the Bank. While it could be taken as a compliment to the capability of the NDOE and PDOEs, the Bank assumption that the PPEF with all its administrative implications could be implemented without too much Bank supervision should hive been augmented by closer monitoring and assistance. Adjustments should have been made to the funding of RPAs to assist the provincial planning bodies in preparing - 10 - and implementing educational development, when it became clear that the original resources allocated to this project activity were inadequate. 2.21 One reason why this project would quality as one of the best-managed in the Region is that it was one of the best monitored education projects financed by the Bank. Under the project, the NDOE created several key institutions, including the PMC (para. 2.1); the REU (para. 2.18); a Management and Planning Unit (MPU) to assist the PDOEs in planning and management; and a Curriculum Implementation Office in the Curriculum Development Division (CDD), which was responsible for integrating in-service teacher training and the introduction of new instructional materials, including textbooks. In addition, the NDOE also established the position of Provincial Materials and Supply Officers (PMSOs), and carried out research on basic policy issues relating to examinations and the impact of textbooks on student achievement (PCR, para. 1.36). The kay to the successful implementation of this project, however, was the PMC, which was highly effective with the support of the PIU in carrying out its assigned tasks, especially in managing project finances. III. FINDINGS AND ISSUES Overview 3.1 The audit is in agreement with the PCR finding that the project, on the whole, has been satisfactory. The audit's assessment is based on the project's overall results in meeting the following major objectives: (a) improvement in the management of educational resources; (b) assistance to the NDOE in improving the quality of primary education; and (c) helping the provinces increase quality of and access to primary education. While there are shortfalls in reaching the specific objectives in regard to training administrative staff, increasing class size, and the dropout rate, they should not detract from the overall advance achieved on the above major objectives for primary education in PNG. As the PCR has provided, in tabular form, a good detailed account of project implementation experience and project results (PCR, pp. 35-39 and 43-47), the following sections complement the PCR findings and highlight achievements and shortcomings in other aspects of the project. Findings and Lessons 3.2 Proleat Desipn and Management. The projectwas complexand ambitious considering the limited manpower resources and relative inexperience of the NDOE in managing what was in many respects a sector development program. The basically well designed project, however, depended for its successful implementation on the speedy appointment of expatriate expert services for the PIU, provincial educational planning, and other major project entities. This was largely accomplished six months after Credit/Loan effectiveness, except the Regional Planning Advisers, whose appointment came later. Implementation was facilitated, to a large extent, by the adoption of tried and tested strategies to address the identified sector issues (para. 2.2). The experience suggests that multi-component projects dealing with separate agencies and requiring financial as well as logistical coordination should establish a body similar to the PMC i. composition and responsibility. - 11 - 3.3 Use of Proiect Funds for Public Administration. This was a Bank- approved use of project funds, as a result of an administrative error, for public administration which had no direct connection with the primary education project. Two years after implementation started, the Bank approved a Government request for assistance in financing a public administration expert for two or three years to help the Ministry of Finance reorganize public administration in PNG. To pay for this expert, the Bank was to allocate funds out of "savings" from the Southern Highlands Project (Credit 841-PNG), which was mistakenly identified as "Credit 1934/1087) [Credit 1087/Loan 1934-PNG]. In the formal agreement between the Bank and the Government, US$300,000 was specified as the total amount of assistance to be drawn from the "unallocated" category under "Credit 1934/1087". Disbursements, which began in early 1984, were expected to be completed two years later. But disbursements continued beyond early 1986 and ultimately exceeded the original US$300,000 by 100 percent. Thus, as a result of poor communication between the former Programs and Projects departments, Credit 1087/Loan 1934 was deprived of US$600,000, money that could and should have been used for the purposes of the Primary Education Project. The restructured Bank administration, combining the functions of the former departments, has facilitated closer coordination of program/project activities, but the need for vigilance during implementation has not diminished. 3.4 Improvement in the Management of Educational Resources. The extent to which the project has been successful in meeting this objective may be gauged from its experience in institutional development in the key project activities in educational planning and management, monitoring and evaluation, and textbook development. Project achievements in these areas have been mixed. The project has been successful in meeting the need for trained staff, but the success has been mitigated by the lack of a systematic program to use such staff effectively in those areas of responsibilities for which they were trained (PCR, p. 35). This has resulted in a substantial brain drain from the education sector, though not necessarily a total lose to the country. Evidently, the experience of Senior Professional Assistants (SPAs) in preparing provincial five-year plans did not result in the effective institutionalization of the capacity to plan and to monitor and evaluate development programs. This was attributed to the lack of trained planners in SPA positions and inadequate support given to planning by the NDOE. Project support in this area was also inadequate: four expatriate specialists, who had to work within a total of eight staffyears to cover 20 provinces where they were to train and assist 20 Senior Professional Assistance with no previous planning experience. Regarding the textbook component, the project apparently did not take sufficient account of the complexity of meshing the book development/publication schedule with book distribution and teacher training (para. 3.11 below). The project had notable success in strengthening the Measurement Services Unit through provision of improved office accommodation and a trained cadre of four examination officers (para. 2.9). 3.5 Apparently, there would have been an even higher rate of localization had the attrition rate among trained lecturers been lower than the 44 percent recorded, i.e. only 66 percent remained as PTTC lecturers after their training. Part of the problem, it appears, stems from dissatisfaction with working conditions and career development prospects in the public sector a context where the private sector offers more attractive rewards. Notwithstanding these drawbacks, the average unit salary costs for 135 lecturers in all PTTCs in 1986 - 12 were about 25 percent lower than at appraisal in1 1979, when there were many more expatriate lecturers (PCR, p. 45). However, the ultimate test of the success of this localization program would be the ability of the PTTCs to meet the demand for better quality trained primary school teachers. 3.6 Improvement of Educational Quality. The project met its overall objective of establishing new, or strengthening existing, provisions or procedures for improving the quality of primary education. The program to advance the localization of staff in the PTTCs also raised their academic/professional qualifications, and this is expected to translate into more effective teacher training to produce better quality primary school teachers. In another critical area, the project provided 1.4 million books, comprising 45 titles of textbooks and teachers' guides, compared with the appraisal estimate of 18 titles and about 467,000 books. These books, covering core subjects for Grades 4-6 which were first distributed only in 1987, were sufficient to provide a complete set for every two children in school. There were problems, however, with the timely distribution of books: many schools failed to receive the books and teachers' guides in time for the school year. There were also problems in synchronizing book publication and distribution with in-service training of teachers in the ure of the new instructional materials (PCR, p. 46). These problems stemmed in part from the fact that the NDOE Curriculum Development Division, to which the responsibility of developing and publishing textbooks was assigned, had no experience or capability in handling book distribution. The audit supports the PCR's plea for a separate, distinct and appropriately staffed unit for textbook distribution within the Materials Office of the Curriculum Development Division to ensure an effective book distribution system (PCR, para. 1.32). 3.7 The project had set a target of improving student achievement in mathematics and English at Grade 6 from about 40-50 percent to 60 percent. Average student scores in the national Grade 6 examination increased consistently during 1982-86, with the increase between 1982 and 1986 statistically significant at the 0.2 level. This was true in all provinces. However, seeing that the new textbooks and other teaching materials were not delivered to the primary schools until 1987, the gains cannot be attributed to the project. Nevertheless, the new materials, coupled with better trained teachers through the project-financed in- service training programs, should reinforce the trends in the improvement of student performance. Systematic monitoring and evaluation by the NDOE Research and Evaluation Unit would be necessary to assess the impact of the project in improving the quality of primary education (PCR, para. 1.20 and p. 44). 3.8 Improvement of Access and Efficiency. The enrollment ratio improved from 58 percent (1978) to 71.5 percent (1988), bringing PNG closer to its target of universal primary education by 1996, but the static average teacher-pupil ratio of 1:31 during 1980-88, and the worsening of the dropout rate from 30 percent in 1979 to 38 percent in 1988, suggest that the systom's efficiency as a whole did not improve. One explanation is that, with increased enrollments, especially in the first two grades, dropouts also increased, especially among children from disadvantaged areas where parents have few incentives to keep their children in school. However, through the system of allocating more resources from the PPEF to disadvantaged regions, the project helped to reduce enrollment ratio disparities among provinces (PCR, para. 1.19). - 13 - Issues 3.9 Curriculum Development, Teacher Training and School Inspection.The original plan was to forge an operational linkage among curriculum development, school inspection, and teacher training, with the aim of improving the development of curriculum materials and the ability of teachers to use them effectively in the classroom. The first step of physically "integrating" the CDC, including the Measurement Services Unit (MSU), with POMITC was achieved, but the effective professional interaction among CDC staff, POMITC lecturers, and school inspectors did not take place. The reason appeared to be the lack of clear procedures for integrating in-service teacher training with the use of new instructional materials, including textbooks. The result was that the majority of teachers were not exposed to the new books to improve learning and evaluation techniques to monitor the quality of classroom instruction, so that their effectiveness has yet to be proven. Furthermore, the process of decentralizing in-service teacher training to the provinces has changed the role of the POMITC, which now is responsible for training provincial trainers, principals, and senior teachers who in turn train the classroom teachers at the local level. These changes resulted in the underutilization of the POMITC facilities which had been expanded under the project (PCR, paras. 1.25-1.26). In view of these changes, NDOE needs to establish a clear policy and appropriate procedures for integrating curriculum/textbook development, teacher training and school inspection. 3.10 Planning at NDOE and PDOE. Although the project made a significant contribution, through staff training, towards improving educational resource management, the impact of the DESP and ISBEd courses appeared to have been minimal. This was due in part to the apparent low esteem accorded to the position of "planning officer" which in turn was the result of the lack of clear career prospects in the field of planning. In varying degrees, the apparently relaxed approach to the implementation of the provincial development program (without insistence on a rigorously prepared educational plan as the basis of allocating funds from the PPEF), seemed to have contributed to the low regard for planning as a tool of managing the sector. The problem appears to be two-fold: the lack of a strong institutional base for educational planning at the NDOE, and the weak linkage between planning at the national and the provincial levels. The crux of the issue would seem to be the tension between control of financial resources by the national government and the desire for increasing financial autonomy by the provincial authorities. The national government had been unwilling to allocate funds to provincial governments that did not have written plans to show how they would spend the money, while the provincial governments appeared reluctant to write such plans that might circumscribe their freedom of action. Indeed, they were unwilling, at one point, to employ planners as such.2/ It is clear, however, that without planning and coordination of NDOE and PDOE sectoral plans and programs, based on school mapping, assessment of needs of physical facilities, enrollment increases, requirements for teachers and teaching materials, it would be impossible to develop education in a rational way. In many respects, the levelopment of an effective planning system between 2/ Vin McNamara, "Whose Project Is It? Some Impressions of the Origins of Education II", Journal of Education, Papua New Guinea, Vol. 20, No. 1, April 1984, p. 9. - 14 - NDOE and PDOE will depend on the clarification of the relationship between the national and the provincial governments, and redefining their respective responsibilities for education and human resource development. 3.11 The Provincial Primary Education Fund. With an allocation of US$7.5 million, this component, the largest in the project, was aimed at improving management and facilitating educational development in the provinces. Planning was to be the basis of funds allocation, and provinces were requ-.*red to submit five-year development plans by the end of 1982 for sectoral funding in 1983. One province (out of a total of 20) was reported to have lost its 1983 allocation because it failed to produce a plan. The projects proposed had to be consistent with plan priorities, and fund allocations would be based on enrollments and a "disadvantage" index, while sub-projects had to meet the criteria of relevance, feasibility, and efficiency. 3.12 The initial draft plans were expected to be updated annually, to reflect school statistics, policy changes, funding, and strategies. In practice, however, many provinces were unable to roll their plans, as required, because of the lack of accurate data, absence or confusion of policies, poor administration organization, and, most important of all, shortage of trained, experienced educational planners who could make optimum use of the three Regional Planning Advisers. The fact that plans were not updated suggests that the provinces were unprepared to develop projects and use their PPEF allocation to address issues of educational access and efficiency when the pressure was on enrollment expansion and quality improvement. Implementation of provincial development plans was carried out during 1983-85. Some 85 percent of the PPEF supported teacher salaries, while the remainder was presumed to have financed quality improvement, such as equipment, materials, other expenditures.3/ 3.13 Given the way the money was spent, the central question is, to what extent has the PPEF assisted the provinces in improving educational access and quality? The PCR reported that the PPEF records did not include a classification of projects by program. Furthermore, the NDOE from the outset had no direct. control of how the PPEF funds were spent. This was because of a 1982 decision to sub-allocate to provincial budget votes the PPEF funds which were therefore released directly to the provinces by the National Department of Finance. The result was that the NDOE could not record and audit fund releases for non-salary items or determine actual expenditures. Thus, without an effective procedure for screening sub-project proposals, monitoring implementation, and cost accounting, the conditionalities set for the commitment and utilization of PPEF funds -- the essence of a sector development program -- were "largely reduced to theory" (PCR, p. 38). The experience suggests that the national and provincial governments, specifically the NDOE and PDOE, missed the opportunity to develop an institutional capability in planning, implementing, monitoring and evaluating small, "grass-roots" projects with direct impact on beneficiaries at the community level. This is particularly regrettable in view of the fact that the 1/ Expenditures on teacher salaries were made under the Conounity Schools Sectoral Program; the Quality Support Program financed the salaries of additional Inspectors, in-service training of various officers, travel costs, and acquisition of curriculum materials; and the National Function Support Program supported the Ministera* Conference, curriculum research, POKITC, the TTCs, and support staff in the Inspectorate Division. PCR, p. 38. - 15 - proposed second primary education project never materialized. A follow-on project in the sub-sector might have provided a chance to build on the initial attempt at planning and developing education at the provincial level and further test the efficacy of a sector program approach. The lesson seems to be that for a sector program to succeed, it requires strong institutional and policy support, backed up by experienced and well-staffed implementing agencies. - 17 - I4WB 1171 248423 UORLDBANV Government Conments Annex 1 EDUCOFF NE22193 GPAHAM DONALDSON CHIEF AGRIC/HLIMAN DEV. DIVISION, UPERATIONS EVALUATION DEPT. 1818H ST NW QASHINGTON7 U.S.A. THANK YOU FOR PRIMARY EDUCATION PROJECT AUDIT REPORT ACCEPTED IN PRIN -CIPAL QITH COMMENTS ON TWO AREAS: 1. PROVINCIAL EDUCATION FUND THE PPEF NOT INTENDED TO ERECT NEW OR EXPAND EXISTING BUILDING NOP ERECT OR fMPROVE TEACHER HOUSING IN EYISTING SCHOOLS (PS) 1/ 2. TEACHER TRAINING NO INFORMATION ONNUMBER OF TEACHERS TRAINED AT PORT MORESBY INSERVICE COLLEGE IS INCORRECT ACTUAL DATA ON NUMBER AND TYPE OF TJAINING UNDERGONE WAS PROVIDED PROJECT COMFLETION REPORT 2/ TLX NO 368/92 PALA WAR! RESEARCH 'N' EVALUATION EDUCOFF WAIGANI (PNG) 248423 WORLDBANK EDUCOFF NE22193#### =05072220 RCA120 OED Notes on Government Coe Ica I/ Under the national education policy, the local communities were responsible for financing the construction of new schools. To assist the local comounities, the PPEF was to finance various items that constrained enrollment expansion or adversely affected educi -on quality. These items included taterle needed for erecting new schools or extending existing ones and for erecting or Improving teacher housing at an existing school where teacher posting had proven difficult, or in a community school which lacked teachers because of housing difficulties (Staff Appraisal Report No. 3027b-PNG, dated November 18, 1980, para. 3.17). See audit report, p. 5. 1/ The numbers of teachers trained given by the Project Complecion Report referred to the years 1983-85, 1987 and 1988. The audit (para. 2.10) refers to the decentralized (provincial) in- service training since 1989, an unanticipated change in teacher training strategy for which there is little information on numbers of teachers trained.