Nepal - Basic and Primary Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 10130-NEP MICROFICHE COPY Report No. 10130-NEP Type: (SAR) SCHMIDT, T/ X80370 / D-9015/ ASlPH STAFF APPRAISAL REPORT NEPAL BASIC AND PRIMARY EDUCATION PROJECT MARCH 27, 1992 Population and Human Resources Division Country Department I South Asia Region 7Tis document has a restIcted distribution and may be used by recpients only In the performance of their official dudes. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Nepalese Rupees (NRs) US$ = NRs 42.7 (September 1991) FISCAL YEAR July 16 - July 15 PRINCIPAL ABBREVIATIONS AND ACRONYMS USED ADB - Asian Development Bank CTSDC - Curriculum, Textbook, Supervision and Development Center DANIDA - Danish International Development Agency DEO - District Education Officer GDP - Gross Domestic Product HMG - His Majesty's Government ICB - International Competitive Bidding IDA - International Development Association JICA - Japanese International Cooperation Agency LCB - Local Competitive Bidding MHPP - Ministry of Housing and Physical Planning MOEC - Ministry of Education and Culture MOF - Ministry of Finance NFE - Non-Formal Education NGO - Non-Governmental Organization NORAD - Royal Norwegian Development Cooperation PEP - Primary Education Project PIU - Project Implementation Unit SETI - Education for Rural Development Project SLC - School Leaving Certificate SMC - School Management Committee SRCU - Schools Rehabilitation and Construction Unit UNDP - United Nations Development Programme UNICEF - United Nations Children's Fund UPE - Universal Primary Education USAID - United States Agency for International Development  FOR OFFICIAL USE ONLY NEPAL BASIC AND PRIMARY EDUCATION PROJECT Credit and Project Summary Borrowers The Kingdom of Nepal Amounts SDR 21.8 million (US$30.6 million) Termos Standard with 40 years maturity Cofinancieras Grant financing on a parallel basis will be provided bys the United Nations Children's Fund (UNICEF) approximately US$10.8 million; the United Nations Development Programme (UNDP) approximately US$7.0 million, the Danish Agency for International Aid (DANIDA) approximately US$10.0 million, and the Japanese International Cooperation Agency (JICA) approximately US$15.0 million. The Asian Development Bank (ADB) has provided parallel financing equivalent to US$20.2 million. Each will administer its portion of the project, and follow its own guidelines for procurement and employment of consultants. Prolect Description: The seven-year project will continue the work begun in the first Primary Education Project, Credit 1463-NEP, expanding its scope from six of 75 districts to the entire Kingdom. The project will improve the quality of basic and primary education by simplifying the primary curriculum, rewriting textbooks and training teachers. The project will increase access to primary schooling by increasing non-fommal primary education clauses, and by refurbishing existing schools and constructing now ones. The implementation capacity of the subsector will be improved by strengthening the Ministry of Education's management, planning and monitoring activities. Benefits and Riskos The major benefit of the project will be the creation of a more efficient delivery system to provide higher quality instruction in basic education at the primary level. However, because of the time it takes to institutionalize significant change in the education sector, most of the direct and visible benefits will occur after completion of the project. The cost of educating a primary school graduate will begin to be c.duced because of lower dropout and higher retention rates. The curriculum will be simplified, and textbooks revised. Teaching skills and teacher morale will be improved. Girls, the very poor and those in remote areae will have increased opportunity to receive a basic education. The proportion of female primary school teachers will rise from 12.5 of the work force to approximately 19? by the year 2000. A second, and more immediate, benefit of the project will be increased effectiveness in the utilization of domestic and foreign resources. The process of planning the project for the 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.  - ii - subsector has already resulted in the integration of inputs financed by six foreign donors. The project will integrate the grade-by-grade improvements in curriculum and textbooks with the teacher training program. The major risks to the project would be inadequate management and delays in counterpart funding. MOEC is mitigating the first risk by strengthening its management (the Division of Program Management) and administrative (the National Center for Educational Development) units. While the delays in the release of funds are, for the most part, the result of HHG financial control mechanisms outside MOEC's management, the risk will be somewhat mitigated by the strengthened program management enabling MOEC to anticipate funding delays and possibly head them off. Project Costs: Local Foreign Total -(US$ million)--- Improved Quality of Primary Education 37.9 16.9 54.8 Access to Basic and Primary Education 35.4 15.5 50.9 Institutional Development 6.9 5.8 12.7 Base.Cost 80.2 38.2 118.4 Physical Contingencies 3.5 2.7 6.2 Price Contingencies 7.8 4.1 11.9 Total Project Cost &JAI a/ !I o45.0 a/ Includes duties and taxes estimated at US$2.9 million.  - ii Financing Plan: (Estimated) Local Foreign Total