Madagascar - Education Sector Development Project

Document of The World Bank Report No. 16666 MAG PROJECT APPRAISAL DOCUMENT ON A PROPOSED INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT TO THE REPUBLIC OF MADAGASCAR FOR AN EDUCATION SECTOR DEVELOPMENT PROJECT February 13, 1998 Human Development 2 and Country Department 8 Africa Region  CURRENCY EQUIVALENT Currency Unit = Malagasy Franc (FMG) U.S. $ 1 FMG 5,500 SDR 1 FMG 7,500 MEASURES Metric System FISCAL YEAR January I - December 31 ABBREVIATIONS AND ACRONYMS BPE Project Implementation Unit established under the on-going CRESED (Cr. 2394- MAG) (Bureau Projet Education) CiSco District Education Office (Circonscription Scolaire) CEG Lower Secondary School (College d'Enseignement General) CNTEMAD National Distance Education Center (Centre National de Tele-enseignement de Madagascar) CRESED Education Sector Reinforcement Credit (Credit de Renforcement du Secteur de l'Education) DIRESEB Provincial Directorate of Education (Direction R6gionale de l'Enseignement Secondaire et de I'Aducation de Base),. EPM Permanent Household Survey (Enquete Permanente aupres des Menages) FDES Fund for the Development of Higher Education (Fonds de Developpement de l'Enseignement Superieur) FID Regional Development Fund (Fonds d'Intervention pour le Developpement) IM Implementation Manual (Manuel d 'Operation) IST Higher Institute of Technology (Institut Superieur de Technologie) MINESEB Ministry of Secondary and Basic Education (Ministere de l'Enseignement Secondaire et de l'Education de Base) MINESUP Ministry of Higher Education (Ministere de l'Enseignement Superieur) MOF Ministry of Finance (Ministere des Finances et du Budget) ONEP National Bureau for Private Education (Office National de l'Enseignement Prive) PMU Project Management Unit (Bureau de Coordination du Projet) PNAE National Education Improvement Program (Programme National dAmelioration de l'Education) PRAGAP Program for the Reinforcement and Strengthening of Administrative and Pedagogic Management (Programme de Renforcement et dAmelioration de la Gestion Administrative et PMdagogique) PREFTEC Vocational Training Reinforcement Project (Projet de Renforcement de la Formation Technique) UERP Curriculum and Research Development Unit (Unite d'Etudes et de Recherches Pedagogiques) UNICEF United Nations International Children's Emergency Fund ZAP Sub-district Office (for primary education) (Zone Administrative et Pedagogique) Vice President Callisto Madavo Country Director Michael Sarris Technical Manager Nicholas Burnett Task Team Leader Daniel Viens  REPUBLIC OF MADAGASCAR EDUCATION SECTOR DEVELOPMENT PROJECT (CRESED II) TABLE OF CONTENTS Project Financing Data 1 1. Project Description 2 Background 2 Project Development Objectives 2 Project Components 2 Benefits and Target Population 3 Institutional and Implementation Arrangements 4 2. Project Rationale 4 CAS Objectives Supported by the Project 4 Main Sector Issues and Government Strategy 5 Sector Issues to Be Addressed by the Project and Strategic Choices 5 Project Alternatives Considered and Reasons for Rejection 6 Major Related Projects Financed by the Bank and/or Other Development 7 Agencies Lessons Learned and Reflected in the Project Design 8 Indications of Borrower Commitment and Ownership 8 Value Added of Bank Support 9 3. Summary Project Assessments 9 Economic Assessment 9 Financial Assessment 9 Technical Assessment 9 Institutional Assessment 10 Executing Agencies 10 Project Management 10 Social Assessment 10 Environmental Assessment 10 Participatory Approach 10 Sustainability 11 Critical Risks 11 Possible Controversial Aspects 11 4. Main Loan Conditions 12 Board Presentation Condition 12 Effectiveness Conditions 12 Other 12 5. Readiness for Implementation 12 6. Compliance with Bank Policies 13  Annexes Annex 1: Project Design Summary and Policy Matrix Annex 2: Detailed Program and Project Description Annex 3: Total Estimated Costs and Sources of Finance Annex 4: Economic Analysis Annex 5: Financial Summary for the Education Sector Annex 6: Procurement and Disbursement Arrangements Annex 7: Project Processing and Budget Schedule Annex 8: Documents in the Project File Annex 9: Status of Bank Group Operations in Madagascar Annex 10: Madagascar at a Glance Annex 11: Technical Note of the Methodology for Ministry of Education - Community Collaboration for School Improvement Annex 12: Program and Project Implementation Arrangements Map: IBRD Reference Number 29353  INTERNATnONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATONAL DEVELOPMENT ASSOCIATnoN Africa Regional Office AFC08 Project Appraisal Document Madagascar Education Sector Development Project (CRESED II) Date: January 29, 1998 [I Draft IX] Final Task Manager: Daniel Viens Country Manager: Michael Sarris Project ID: MG-PE-1559 Sector: Education Lending Instrument: Sector Investment and Maintenance Loan PTI: PXl Yes [ I No Project Financing Data [] Loan [X1 Credit I Guarantee [ Other [Specify] For Loans/Credits/Others: Amount (US$m/SDRm): 65.0/47.7 Proposed Terms: [XI Multicurrency [ Single currency Grace period (years): 40 [ Standard Variable [ Fixed 1] LIBOR-based Years to maturity: 10 Commitment fee: N/A Service charge: 0.75% Financing plan (US$m): Source Local Foreign Total Program 67.0 116.0 183.0 Government 23.0 0.0 23.0 Communities/Beneficiaries 10.0 0.0 10.0 Cofinanciers (proposals to date): IBRD/IDA 25.0 40.0 65.0 World Food Program 0.0 2.4 2.4 France (CooperationfranVaise) 1.0 5.0 6.0 Germany 0.1 0.2 0.3 UEK 0.1 0.2 0.3 Cofinanciers (expressed interest): AfDB (under preparation) 3.0 17.0 20.0 European Union (under preparation) 1.8 10.2 12.0 Japan (JICA) (appraisal completed) 1.0 11.0 12.0 OPEC (under preparation) 1.0 9.0 10.0 UNICEF (including NORAD and ILO participation) 1.0 9.0 10.0 Others (to be determined) 0.0 12.0 12.0 Borrower: Republic of Madagascar Guarantor: N/A Responsible agency(ies): Ministries of Primary and Secondary Education (MINESEB) and of Higher Education (MINESUP) Estimated disbursements (Bank FY/US$M): 1998 1999 2000 2001 2002 2003 Annual 6.0 9.0 11.0 13.0 15.0 11.0 Cumulative 6.0 15.0 26.0 39.0 54.0 65.0 For Guarantees: NA [] Partial Credit [ ] Partial risk Expected effctiveness date: June 26, 1998 Closing date: October 31, 2003  Project Appraisal Document Pap 2 Country: Madagascar Project Title: Education Sector Development Project Block 1: Project Description 0. Background: Madagascar is at a watershed in its development. After a long period in the 1970's and 1980's during which the economy and standard of living have declined, compounded by a decline in education from the early 1980s, Madagascar is now at the point where, with international support, it could begin to achieve a fundamental turnaround. Since the early 1990's, the commencement of democratization in society at large has prepared the groundwork for reform. From an emphasis on state-controlled, top-down approaches, Government has begun to enlist the efforts of a diversity of partners in the reform of its economy and its education system, recognizing the contribution of the private sector, local communities and non-goverrunental organizations (NGOs) as indispensable to economic, social and educational progress. With the signature of the agreements with the IMF, the World Bank and the Paris Club in late 1996 and early 1997, an appropriate macroeconomic framework has been forged which has the commitment of a govermment with an increasing capacity to carry through the necessary reforms. Its priorities are firmly locked onto those of the Country Assistance Strategy (CAS), emphasizing growth and human resource development as key to poverty reduction. To strengthen human resources, the Government has formulated detailed plans for each of the sub-sectors of education and training, as well an integrated master plan (PNAE II) (December 1997), building on the experience of the PNAE I (initiated in 1989 and supported in part by an IDA-financed Credit, CRESED Cr. 2094-MAG; see Annex 11 for details) and extensive consultation over the last two years. An inter-ministerial committee and an inter-sectoral working group have been established in order to ensure the coherence of the commitments of all partners in the sector. The objectives of PNAE II shared by all sub-sectors and donors are: (a) to achieve as rapidly as possible universal access to a quality primary education, (b) to support a gradual expansion and improvement of secondary education, (c) to modernize and diversify higher education and (d) to continue the reforms in vocational training initiated in 1992 and supported by PREFTEC (Cr. 2382- MAG) which is expected to close on June 30, 1998. The proposed Credit (US$65 million) would assist the Govermnent of Madagascar in financing its Program (total cost estimated at US$183 million) in the education sector, over a five-year period. A separate follow-up operation to PREFTEC to continue reforms in manpower training is envisaged in the second half of 1998. While several other donors are expected to cofinance the Program, the operations planned under the proposed Credit are designed to achieve results even if cofinancing does not fully materialize. 1. Project development objectives (see Annex 1 for key performance indicators): The project supports the development objective of the Education Sector Program to produce more and better trained students at all levels of education at sustainable cost. The impact of the Program would be measured through improvements in learning outcomes, in internal and external efficiency of education, and in access to primary and secondary education, particularly in rural areas. The strategic orientation adopted is centered on the devolution of responsibility to local and institutional levels, supported by a set of coherent policies at the national level. 2. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): Component Categorv Cost Incl. Contingencies % of Total (US$M) A. Universalize quality primary education by 37.0 57% supporting community- and school-based projects aimed at improving access and learning outcomes in about 4,100 public schools (out of 12,500) through provision of: * support services to prepare, sign, monitor Institutional and professional (3.0) implementation and evaluate about 4,100 school- development; based contracts; * quality inputs to improve school management, Professional development; (4.5) teaching processes and staff development for about 9,400 teachers and 4,100 school heads; * adequate infrastructure, furniture and equipment Physical (29.5) of about 9,400 classrooms, of which 8,000 to be rehabilitated and an additional 1,400 to be constructed. Form  Projct Apprisal Document Pge 3 Counby: Madagascar Project Title: Educaton Sctor Devlopmt Projed B. Improve quality of and access to secondary 3.5 5% education, in particular in rural areas, through support to school-based pilot programs in about 40 public lower secondary schools (CEG) and 10 public upper secondary schools (Lycees). Similar to Component A, this component would provide: Institutional and professional (0.6) support services to pilot school-based projects in development; 5 schools in Year 1, evaluate results, and extend the approach to an additional 45 schools; Professional development; (0.9) a quality inputs to improve school management, teaching processes and staff development for about 600 teachers and 50 school heads; Physical (2.0) * adequate infrastructure, furniture and equipment to about 375 classrooms, of which 188 to be rehabilitated and an additional 187 to be constructed. C. Imnprove access to quality textbooks and 14.0 21% teaching-learning materials to all primary schools in the country through: * production, design and testing of 20 new titles, Capacity development; (1.8) including teaching guides; Institutional development; * printing and distribution to all primary schools (9.5) of about 7.2 million textbooks and 0.4 million Physical; teaching guides; * distribution of basic teaching-learning materials Physical; (1.7) (e.g. reference books, maps, and charts) to all primary schools; and * in-service training of teachers on use of Professional development. (1.0) textbooks and educational materials. D. Institutional development for key functions Institutional and professional 3.0 5% in the Ministry of Secondary and Primary development. Education (MINESEB) at central and deconcentrated levels, including strengthening of educational planning, bi-annual learning assessments at primary and secondary levels, workshops and networking of school administrators, human resources development and financial management strengthening, and pre- investments studies. E. Support reform of higher education in Capacity development; 5.0 8% assisting institutions to modernize and to diversify Institution building through financing sub-projects under a Fund for the Development of Higher Education (FDES). F. Project management at central, provincial / Capacity development; 2.5 4% regional and local levels, including support to a Institution building small team of local staff at central level, regional teams (6) and local teams (in about 41 school districts). Total 65.0 100% 3. Benefits and target population: Benefits: * Higher enrollment at primary level, from a current level of 62% (net, e.g. excluding over-aged children) to about 80% by the year 2003. (This is the Program target; the project would contribute to an increase of about 10 percentage points in net enrollment). * Private and social benefits associated with a literate population and an educated labor force: potential for higher income streams; adaptability to changing economic and technological environment; effect on productivity of skilled workers; effects on fertility, Form  Projet Appraisal Docurment Pae 4 Counry: Madascar Project rT: Education Sector Deveopmet Project adaptability to changing economic and technological environment, effect on productivity of skilled workers; effects on fertility, nutrition and poverty reduction. * Increased efficiency and responsiveness of education system to labor market needs. . Enhanced partnership and ownership by local communities, private sector, and beneficiaries. . Greater efficiency in utilization of Government funding and reduction in burden on state expenditures. * Improved management ability of Ministries (MINESEB and MINESUP) to manage education system. * Greater integration between the outputs of higher education and the demands of the world market. * Broad-based support, both financial and institutional, from donor community and stakeholders in the sector. Target Populations: * School-age children in the poorest, mostly rural areas of the countly.