Argentina - Second Buenos Aires Secondary Education Project

Document of The World Bank Report No: 21010 PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN IN THE AMOUNT OF US$56.990 TO THE PROVINCE OF BUENOS AIRES WITH THE GUARANTEE OF THE ARGENTINE REPUBLIC FOR A BUENOS AIRES SECOND SECONDARY EDUCATION PROJECT November 7, 2000 Human and Social Development Group Argentina, Chile, Paraguay and Uruguay CMU Latin America and Caribbean Region  CURRENCY EQUIVALENTS (Exchange Rate Effective) Currency Unit = Peso 1.00 PESO = US$1.00 US$1.00 = 1.00 PESO FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS AIJE Student Projects for Youth at School (Proyectos Escolares Innovativos y Programas para Jovenes) BASSEP Buenos aires Segundo Proyecto de Educacion Secundary (Buenos Aires Second Secondary Education Project) EGB3 Educacion General Basica (Grados 7-9) (Basic Education) DGCyE Direcci6n General de Cultura y Educaci6n GDP Gross Domestic Product (Producto Interno) IDB Inter-American Development Bank (Banco Inter-Americano de Desarrollo) OP Bank Operational Policy (Poliza Operacional del Banco) PBA Provincia de Buenos Aires (province of Buenos Aires) PEI Plan Educativo Institucional (School Development Plan) ProFEI Proyecto de Fortalecimiento Eduativo Institucional SIS Sistema de Informacion Socio-Educativa (Socio-Educative Information System) TTI Teacher Training Institute (Institutos de Formaci6n de Profesores) UEP Unidad Ejecutora de Proyecto (Project Coordinating Unit) PISA Program for International Student Assessment TIMSS Third International Mathematics and Science Study OECD Organization for Economic Cooperation Study and Development Vice President: David De Ferranti Country Manager/Director: Myrna Alexander Sector Manager/Director: Jamil Salni Task Tean Leader/Task Manager: Jacob Bregman  ARGENTINA BUENOS AIRES SECOND SECONDARY EDUCATION PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 4 2. Main sector issues and Government strategy 4 3. Sector issues to be addressed by the project and strategic choices 10 C. Project Description Summary 1. Project components 12 2. Key policy and institutional reforms supported by the project 12 3. Benefits and target population 13 4. Institutional and implementation arrangements 17 D. Project Rationale 1. Project alternatives considered and reasons for rejection 18 2. Major related projects financed by the Bank and other development agencies 20 3. Lessons learned and reflected in proposed project design 20 4. Indications of borrower commitment and ownership 23 5. Value added of Bank support in this project 24 E. Summary Project Analysis I. Economic 25 2. Financial 25 3. Technical 25 4. Institutional 26 5. Environmental 27 6. Social 28 7. Safeguard Policies 30 F. Sustainability and Risks 1. Sustainability 30 2. Critical risks 31 3. Possible controversial aspects 32  G. Main Conditions 1. Effectiveness Condition 33 2. Other 33 H. Readiness for Implementation 35 I. Compliance with Bank Policies 36 Annexes Annex 1: Project Design Summary 37 Annex 2: Detailed Project Description 46 Annex 3: Estimated Project Costs 51 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 54 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Suumary 59 Annex 6: Procurement and Disbursement Arrangements 66 Annex 7: Project Processing Schedule 75 Annex 8: Documents in the Project File 76 Annex 9: Statement of Loans and Credits 77 Annex 10: Country at a Glance 80 Annex 11: Social Assessment 82 MAP(S)  ARGENTINA Buenos Aires Second Secondary Education Project Project Appraisal Document Latin America and Caribbean Region LCSHE Date: November 7, 2000 Team Leader: Jacob H. Bregman Country Manager/Director: Myma L. Alexander Sector Manager/Director: Jamil Salrni Project ID: P064614 Sector(s): ES - Secondary Education Lending Instrument: Specific Investment Loan (SIL) Theme(s): Education Poverty Targeted Intervention: Y Project Financing Data Z Loan FI Credit E Grant El Guarantee C: Other (Specify) For Loans/CreditslOthers: Amount (US$m): 56.99 Proposed Terms: Variable Spread & Rate Single Currency Loan (VSCL) Grace period (years): 5 Years to maturity: Commitment fee: 0.75% Front end fee on Bank loan: 1.00% !Financing Plan: Source Local Foreign Total GOVERNMENT 114.70 2.10 116.80 IBRD 48.69 8.30 56.99 Total: 163.39 10.40 173.79 Borrower: PROVINCE OF BUENOS AIRES, ARGENTINA Responsible agency: DIRECCION GENERAL DE CULTURA Y EDUCACION (DGCYE) Directorate General of Culture and Education - DGCyE Address: Avda. 13 entre 56 y 57, La Plata, Buenos Aires Contact Person: Dr. Mario Oporto, Subsecretario Educaci6n Basica, DGCyE, Province of Buenos Aires Tel: (54-221) 421-4535 Fax: (54-221) 427-3007 Email: secsedu@ed.gba.gov.ar Other Agency(ies): Project Implementation Unit (Unidad de Ejecicion de Proyecto --UEP) Address: Avda. 13 entre 56 y 57, La Plata, Buenos Aires Contact Person: Dr. Ricardo Casal (Coordinator) and Dardo Becerra (Implementation Director) Tel: 54-(0)221-424-0335 Fax: 54-(0)221-424-0863 Email: rcasal@netverk.com.ar Estimated disbursements ( Bank FYIUS$M): FY 2001 2002 2003 2004 2005 Annual 9.0 17.3 18.6 10.0 2.0 Cumulative 9.0 26.3 44.9 54.9 56.9 Project implementation period: 4 years Expected effectiveness date: 02/05/2001 Expected closing date: 01/31/2005 OCS PAD I..n Rev M.-A, 200  A. Project Development Objective 1. Project development objective: (see Ainex 1) This project is a continuation of Bank support for the secondary education reform process in the Province of Buenos Aires (PBA), and therefore follows in the footsteps of the ongoing PBA Secondary Education Sector Reform Project (also known as Prodymes III). The proposed Buenos Aires Second Secondary Education Project (BASSEP) is a small project, focused on improving equity, quality and access of secondary education services. The PBA government's strategy for its education sector aims to improve quality, equity and effectiveness at secondary school level. To support these objectives the Provincial Ministry of Education ("Direccion General de Cultura y de Educacion -- DGCyE") proposes to introduce a new pedagogic program and a "Full Day Schedule" (extending school hours from an annual average of about 750 hours to up to 1,200 hours) in its lower secondary schools (grades 7 through 9 -- or EGB3 -- of the mandatory education cycle of grades 1 through 9 or "Educacion General Basica"). This is known as the "Jomada Completa" Program or "Full Day Schedule". The DGCyE would implement the "Jomada Completa" Program initially as a program for about 200 EGB3 priority schools through the proposed "Buenos Aires Second Secondary Education Project (BASSEP)". The agreed school selection criteria (see section C3) will target those urban EGB3 schools where most student enrolment comes from households which are considered socially and economically disadvantaged and among the poorest. The BASSEP will be implemented in four years and on the basis of its results the DGCyE intends to gradually extend the "Jomada Completa" at EGB3 level to all those secondary schools where students face problems of inequity due to poverty and socio-economic disadvantages. The proposed BASSEP has the following development objectives: 1. Increase access to quality education and improve equity by supporting the implementation of a Full Day Schedule (known as the "Jornada Completa") in selected EGB3 schools serving students from the poorest households; 2. Improve school management as a necessary complement to the introduction of a "Full Day Schedule" in the selected EGB3 schools. The new pedagogic model targets "at-risk" students in the age group of 12-16 years old who currently attend EGB3 schools with two or three daily shifts. Improved access and equity, combined with better teaching and learning conditions would: (i) reduce overcrowding in existing EGB 1+2+3 school buildings where the need is greatest and improve the school environment; (ii) increase students' time in school (and time-on-task in the classroom) from the current four hours to seven or eight hours per day in a 5-day schoolweek; (iii) allow teachers as much as possible to be reassigned to teach in the same school to create better continuity in learning and more communication with parents; (iv) allow more focus on and attention to at-risk students and their learning problems, and promote better retention rates for the 12-15 year age group; and (v) enable the school to offer better support services for students and teachers, and improve school management. The new extended teaching hours in the selected EGB3 schools will allow the DGCyE in some cases to reduce the number of "taxi-profesores" (teachers who teach at more than 3-4 different schools with work weeks of up to 60 teaching contact hours). - 2 -  The BASSEP would target about 60,000 students (11% of the total EGB3 student PBA enrollment), about 3,200 teachers and about 400 school administrators in about 200 EGB3 schools (8% of the total number of EGB3 schools in the PBA). 2. Key performance indicators: (see Annex 1) Progress made toward the objectives of the proposed Buenos Aires Second Secondary Education Project (BASSEP) development objectives will be measured using the following main performance indicators with agreed baseline values and targets: Project Development Objectives Outcome/Impact Indicators I. Increase access to quality a. EGB3 level student completion rates (grade 9) in the selected education and improve equity by EGB3 schools are equal or exceed the provincial average EGB3 supporting the implementation of a Full completion rate specified separately for girls and boys. Day Schedule (known as the "Jornada Completa") in selected EGB3 schools b. Student transition rates from EGB3 to the first year of Polimodal serving students from the poorest level in the selected EGB3 schools will be equal or exceed the households provincial average for EGB3 transfer to "Polimodal" level (grade 10) as specified per gender). c. Decrease in repetition rate for the EGB3 level in the selected EGB3 schools to at least equal or better than the average repetition rate at provincial EGB 3 level (average provincial repetition rate for EGB3 in 1999 was 15% per grade) d. Pupil learning performance results in the selected EGB3 schools are equal to or exceed the learning performance of provincial averages in the same subjects as in the the national achievements test ("Operativo Nacional"). Pupil learning performance will be tested by specially designed sample-based pupil tests in each grade of the EGB 3 level for the selected schools and an equal representative sample of EGB3 pupils in schools without the "Jornada Completa" model. The assessment test will be designed and applied with technical assistance from international consultants (PISA and TIMSS). - 3 -  2. Improve school management as e. All school directors in the selected EGB3 schools have been trained a necessary complement to the and the majority is satisfied with the quality, relevance and introduction of a "Full Day Schedule" effectiveness of the training (based on annual random sample in the selected EGB3 schools surveys and personal interviews). f. All school directors in the selected EGB3 schools have been trained and the majority is satisfied with the quality, relevance and effectiveness of the training (based on annual random sample surveys and personal interviews) g. Student, parents and community attitudes toward secondary schooling in districts of selected EGB3 schools have improved (based on representative annual surveys and a number of follow up interviews with parents, students and community leaders). h. Secondary school and classroom management criteria and best practices have been evaluated and the results have been produced in a coherent booklet and disseminated to all EGB schools in the PBA, based on the best practices learned from this project and from similar international best practices (notably with examples from Chile and at least two other OECD countries) i. All EGB3 school have improved management autonomy regarding financial, administrative and pedagogic matters (schools have a budget for learning materials and small maintenance, maintain an adequate administration, and can define and implement innovative school projects); this will be measured by representative sample-based surveys and audits of schools, and personal interviews with school directors, teachers and parents from the selected EGB3 schools and from an equal sample of EGB schools not included in the project. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 20354 Date of latest CAS discussion: 27/06/2000 2. Main sector issues and Government strategy: Socio-economic performance. While many social indicators have improved in the past ten years, povertv levels have stubbornly stayed high despite rapid economic growth: The Bank's latest estimates put poverty at about 30-35 percent in the "Conurbano", an urbanized ring around the "City of Buenos Aires". The City of Buenos Aires has an independent education system, while the "Conurbano" is administered by the Province of Buenos Aires. See the Bank's most recent Poverty Assessment for Argentina, entitled Poor People in a Rich Country, report number 19992-AR, dated March 23, 2000. This situation is compounded by rising income inequality and high unemployment, especially for the unskilled, indicating that the benefits - 4 -  of growth have not been widely shared. Argentina's education system has been one of the most advanced in the region and can still boast of a literacy rate of 97 percent for the adult population, universal primary enrollment, and about 20 percent of the population between the ages of 20 to 25 enrolled in higher education. For a country of its wealth, Argentina under-performs in certain key education indicators. The secondary graduation rate in Argentina is only 52 percent, compared to an average rate for the OECD countries of 80 percent. Of 100 students entering primary school, only 84 will enter the seventh grade, 76 will enter the ninth grade, 40 will enter the last year of secondary school, 35 will enroll in university and only 7 will graduate. Changing labor market demand and returns to education. With reduced protection and lower cost of capital in the early 1990's, the historic comparative advantage of labor over capital shifted in capital's favor. This led to demand for more highly skilled workers and increased the wages of those with secondary and university level education: As a result, 40 percent of the recent change in the Argentine Gini coefficient is due to differences in returns to education. The incomes of professionals has grown on average by about 5.6 percent per year over the 1990-98 period, while skilled wages have risen at a rate of only 3.6 percent, and wages for unskilled workers have stayed flat or decreased. Federal Government Education Strategy. With World Bank support, for the last seven years, Argentina has undertaken an ambitious prograrn to transform the education system: new system structure and more relevant curricula, increased access at preschool and secondary levels, improved quality and equity, more autonomy to the provinces who implement education policies, more investments to improve infrastructure and pedagogic materials, especially targeting the poorest populations. The provinces of Buenos Aires and Cordoba are the most advanced with implementing their secondary education reform. In the PBA, with about 40 percent of the total Argentine enrollment, this consists of a restructuring of the old five year secondary education cycle into two three year cycles: educacion general basica 3 (EGB3) and upper secondary ("Polimodal"). The EGB3 level reinforces core knowledge and prepares the children for further secondary education or labor market entry. In this context, in support of the ongoing reform in the PBA, the BASSEP addresses the CAS objectives by promoting improvement in quality and equity of lower secondary education (EGB3). The project's focus on the socially and economically disadvantaged population, with children in the 12-16 year age group aims, to remedy inequalities in the type of education to which the poor have access, and consequently in labor market entry and working life. The project's support for the "Jomada Completa" will in the longer term boost demand for Polimodal level, reduce drop out and repetition rates for the EGB3 level and improve the relevance of what is taught. These benefits will enable students to successfully complete lower secondary education, improving their chances of entering the labor market and leading productive lives out of poverty. Province of Buenos Aires sector issues and strategy With an estimated population of 15 million (about 38% of the country's total), the Province of Buenos Aires (PBA) is the largest province in Argentina. It contains 134 municipalities, 29 of which are located in the area surrounding the Capital Federal, known as the "Conurbano" which contains 70% of the provincial population. In total almost 95% of the provincial population lives in urban areas. The PBA contributes about 35% to Argentina's GDP, with an income per capita of about US$8,200. The growth of the province's economy is closely linked the national economy. Provincial GDP declined by close to 3% in 1999 due to Brazil's devaluation of its currency. The PBA has the largest provincial education system in Argentina. -5-  Table I Public Schools Private Schools Education Level Number of Enrollment Teachers Number Enrollment Teachers schools 1999 of 1999 schools Initial 2,439 331,000 19,000 2,057 206,000 12,700 EGB 4,456 1,755,000 85,000 1,632 684,000 41,600 Polimodal 1,076 170,000 50,000 1,156 174,000 24,900 Secondary 187,600 School I_I Teacher Training 185 54,200 8,100 280 49,800 5,500 Institutes Total 8,156 2,497,800 162,100 5,125 1,113,800 84,700 Source DGCyE (March 2000) Table 2 Total Number Enrollment Education Level of 1999 Teachers schools Initial 4,496 537,000 31,700 EGB 6,088 2,439,000 126,600 Polimodal 2,232 531,600 74,900 Secondary School Teacher Training 465 104,000 13,600 Institutes I Total 13,281 3,611,600 246,800 Source DGCyE (March 2000) Provincial Education Expenditure and Financing (see also annex 4). The province of Buenos Aires (PBA) was the first province to widely implement the education reform and allocated a significant amount of additional resources to its education sector, The PBA's public spending in education increased significantly since the Decentralization Law was put into effect in 1993, indicating the Provincial Government's commitment to the reform and a break in the pattem of low spending that predominated during the 1980's. Total PBA education expenditure increased from US$1,860 million in 1993 to US$3,345 million in 1998 (based on 1998 pesos): an increase of 81.5% in real terms and an annual average growth rate of 13% (see table). These increases were especially high in 1997, when the EGB3 reform was started, mainly due to: (i) increased student enrollment (>17% over 1994-98), creating a need for more teachers (more teacher work units -- cargos/horas catedras); (ii) application of a 15% average salary increase in February 1998; and (iii) a significant increase in investment in infrastructure (from UJS$69 million in 1995 to US$623 million in 1997 and US$280 million in 1998). Table 3: Evolution expenditures in education by Jurisdiction (Source) (millions of 1998 pesos) 1,993 1994 1995 1996 1997 increase 1993-1997 Prov. of Buenos Aires 1,868 2,099 2,265 2,464 3,192 71% Provinces (excl. PBA) 5,933 6,409 6,100 5,972 6,140 3.5% All Provinces 7,801 8,508 8,365 8,436 9,332 19.6% PBA / Total Prov's 24% 24.7% 27.1% 29.2% 34.2% Nat. Educ. Ministry 1,835 1,835 1,835 1,835 1,835 0.0% Municipalities 206 206 206 206 206 0.0% Total Nat. Educ. 9,842 10,549 10,406 10,477 11,373 15.6% PBA / Total Educ. 19% 20% 21.8% 23.5% 28.1% -6 -  Source: Province of Buenos Aires; Provincial Ministry of Economy and DGCyE From the total PBA education budget almost 93% is recurrent spending (almost entirely salaries), distributed as follows: 76% for salaries of public teachers and administrative staff (non-teaching staff represents about 15% of the total), and about 15% subsidizes a proportion of private school teacher salaries. Only 3% finance non-salary recurrent costs. Infrastructure and equipment investment has increased from about 6% in 1993 to 8% in 1998. For the whole 1993-1998 period more than US$1 billion was spent on building new schools and classrooms to accommodate the increasing students numbers. Tranfers to private schools make up almost 14% of the recurrent budget in 1998. Over 1993-98 total teaching staff expenditures increased by 73.2% ($915 million). Expenditures in substitute staff, despite scarce available data, show a decreasing trend: a 14.7% ratio in 1993 (expenditures on substitutes compared to regular and provisional staff) and 13.7% in 1998. In terms of total education expenditures, 36% went to public primary level (EGB1+2) in 1998, 22% to public secondary level, 7% to pre-school level, 3.5% to public tertiary level (Teacher Training Institutes) and 15% to transfers to private schools (at all levels). The remaining was spent on physical education, artistic education, special education, psychology and social assistance and administration. It is important to mention that even though EGB3 is included in primary level budgetary's classification, its structure of cost corresponds to secondary level (lower secondary level). The distribution of spending across levels of education corresponds more or less to OECD means, taking into account that the university level is financed entirely by the federal government. Table 4: PBA composition of spending per education level (1998; percentages) Category 1994 1995 196 1997 1998 * Psychology 5.4 4.7 4.3 4.1 3.8 ! Special Education (handicapped) 5.1 4.3 4.2 4.0 3.8 * Pre-School 7.8 7.1 6.9 7.1 6.8 * Primary (EGBI+2+3) 29.5 28.7 32.3 30.9 36.4 * Secondary (composed of old 5-year phasing out and new 26.0 24.5 23.4 25.8 22.3 Polimodal) _ Sub-Total Public Primary + Secondary 55.5 53.2 55.7 56.7 58.7 * Adults Education 2.5 2.0 1.9 1.8 2.8 * Physical Education 3.0 2.6 2.5 2.6 2.1 * Teacher Training 3.4 4.0 3.6 3.4 3.2 * Arts Education 3.2 3.0 2.6 2.4 2.2 * Private Schools Subsidies 14.1 19.1 18.2 17.9 16.5 To schools a % of Total Education 87.5 84.8 85.3 72.8 81.5 Education sector management. The PBA's management of its education sector is still inefficient, which is illustrated by the high number of central level adminisrative staff in the DGCyE and, in spite of this, the lack of specialist skills in areas such as financial management, pedagogy and curriculum, and monitoring of performance. Compared to similar systems in industrial OECD countries, there appears also to be a lack of structural and institutional capacity in the form of more autonomous institutions for learning assessment, inspection, and teacher training. However, the new DGCyE Administration, which came in December 1999, started immediately to plan for significant and system-wide changes in the aforementioned areas. The diagnosis of the system's performance is well underway, and the re-organization of the central Ministry has begun. This is a sensitive, difficult and complex program of system-change, which can only be gradually phased in, since it would otherwise risk the disruption of schooling. The design and introduction of improved performance and efficiency monitoring through the "legajo unico electronico" and the "Sistema de Informacion Socio-Educativa", which the DGCyE is currently undertaking, are important milestones on the way to improved management and performance. The current PBA education system suffers from (i) lack of a coherent and accessible information system in order to better plan, monitor, and -7 -  supervise the sector; (ii) slow staff paying system; (iii) inefficient assignment and management of human resources; and (iv) inefficient management of financial resources and high administrative cost. The new teacher and staff monitoring system ("'Iegajo unico electronico '9 will allow the DGCyE to: (i) eliminate the ghost teachers in the system and have better control over teacher work-loads ("cargos" allocated and actually worked per teacher linked to salary pay out) at school level; and (ii) get a better control system in place for teacher and staff absentism and the use of teacher substitutes. At the end of 2001 this monitoring system will have been fully implemented, and will lead to significant recurrent salary savings. The "Sistema de Informacion Socijo-Educativa" will allow the DGCyE to introduce District and School-based monitoring of student performnance, linked to socio-economic status of the students. this will assist the DGCyE to better focus its Polimodal scholarship program ("Programa de Becas"), and target the delivery of additional support services. The ongoing Bank-fuianced secondary education projects also finance an administrative reform, which support better and more effective management practices and promotes decentralization of services. Progress of the secondary education reform. The PBA's strategy is to keep students in school after completing the EGB3 level. The introduction of the EGB3 level was completed by 1998, and the second year of the "Polimodal" level started in school year 2000 (school years run from March to December). The first "Polimodal" graduates will come out of the system by December 2001. "Polimodal" is a mixture of specialized vocational and general academic courses, with specific timetables, and as much as possible interaction with the local labor market and enterprises. The "Polimodal" curricula in the PBA are composed of five "specialized learning tracks', with links to the world of work and the local labor market. Each Polimodal school in the PBA can select two "specialization tracks", for which teacher training and new pedagogic materials will be provided by the DGCyE. The DGCyE uses the national learning assessment system ("Operativo nacional"), which annually test pupils of grades 6, 9 and 12 in two or three subject matters, and the DGCyE is also developing its own targeted learning evaluation system. Both EGB3 and Polimodal curricula also include an emphasis on social and cultural community values in order to help poorer children to better succeed and combat youth crimne and violence. Secondary school coverage. In the PBA coverage at the old five-year secondary level (1998) was close to 65 percent and the graduation rate was about 25 percent, while in OECD countries, secondary completion rates average 78-80 percent. In Korea, this rate reaches 92 percent. Net enrollment at EGB3 level jumped by more than 17 percent over 1996-98, compared to enrollment of the age group in the old secondary system. Net enrollment at the new upper secondary structure ("Polimodal") jumped by more than 40 percent in 1999, and this trend appears to continue in the current school year (2000). Quality of education. Despite progress as a result of federal and provincial efforts, the quality of education in the Province of Buenos Aires needs to be improved, especially for the students from the poorer households. The new EGB3 and Polimodal curricula are being implemented, but teachers need more in-service training and better learning materials to teach their courses. The PBA results in the national assessment tests are reasonable, compared to the results of other provinces (the PBA ranks on average in the top-five). To make the reform effective and respond to its qualitative goals, the PBA needs to reinforce the training and support of its teachers and school directors. It will also need to strengthen the support mechanisms for pupils, especially at the EGB3 level for the 12-16 year old age group. These children, as demonstrated also in other OECD countries, need school-based support mechanisms in "learning how to leamn" and "information about social and cultural values and behavior". One of the important objectives of EGB33 level education is to deliver pupils who can be effective citizens and productive workers. In mnost countries in the world, reform of this level of education is ongoing and the problems faced in teaching this age group are the more difficult ones. There is general consensus among PBA educators that, compared to OECD countries, the quality and relevance of secondary education must be improved, and that school - 8-  should be given the means to that. However, the PBA government wants to do more and increase the learning and teaching time for "at risk" pupils in the poorer schools. Through the proposed BASSEP the "Jomada Completa" will offer a full school day to "youth-at-risk" in the 200 EGB3 schools. This will not only improve learning outcomes, but also strengthen the school- and classroom environment (lower incidences of violence, better information, more contact with the parents and communities, less street crime by "out-of-school" youth). This will also attract more students to stay in school and increase enrollment and graduation results significantly, thereby improving equity. Additionally, programs and inputs for student communities in the schools will be offered to prevent and reduce youth violence and criminality. These Youth programs (Student Projects at School for Youth -- "AIJE") will be similar to those financed under the First Buenos Aires Secondary Education Project (also known as Prodymes III). Equity in Secondary Education Performance indicators, such as average annual dropout and repetition rates, are sharply differentiated by income groups; dropout rates increase significantly for the poor after seven years of education. Only 24 percent of students in the lowest quintile complete secondary school compared to 76 percent for the upper quintile (measured on the basis of data for the old five-year secondary structure; since then Polimodal has increased enrollment in upper-secondary). However, significant inequities continue to exist. About 35 percent of youth aged between 14 to 18 years were out of school in 1998, and these are mostly pupils coming from poorer households. In addition, children from low-income families are more likely to be older than other primary school children due to late entrance and relatively higher repetition among poorer children. About 32 percent of children from the poorest income quintile are delayed in primary level compared to 9 percent for the richest quintile. Repetition and drop-out rates for socially disadvantaged students at the EGB3 level are significantly higher than those for students from the upper quintile (annual averages of about 20-25% and 10-12% percent respectively). The DGCyE strategy aims to offer better in-school student support services, and to create an improved school- and classroom environment by (i) reducing overcrowded school facilities; (ii) provide more and better learning materials; and (iii) make what is being taught more relevant for the community and the job market. National standardized tests results (1999) for the students in the last year of EGB3 point to a continuous significant gap in student performance of low-income "socially at risk" students compared to students from households with higher incomes. This situation has several negative consequences, such as: more children and youth on the street; early entrance into the informal labor market; violence; drug consumption, and increasing teenage pregnancies. The Gran Buenos Aires area concentrates some 40% of the unemployed in Argentina, many of whom are young workers with incomplete secondary education. Gender. In the area of education, there are little differences between the genders, with female students outperforming male students in tenns of lower repetition, but losing ground at secondary school in terms of educational outcomes. However, in the poorest areas there are severely restricting school environments for adolescent youth, notably girls or young women, due to violence, criminality and lack of learning materials and equipment. This causes increased repetition and drop out for the lower income quintiles. The Jornada Completa program. One of the PBA government strategies for education is to introduce a new program of Jomada Completa at EGB3 level, aimed at addressing quality and equity issues. Initially the DGCyE will implement the "Jomada Completa" in 200 EGB3 schools and then gradually expand the program to all EGB3 schools in the poorest districts of the province where it would be feasible and cost-effective to implement. Education authorities hope that the schools will develop an innovative institutional pedagogical model which can represent an incentive for other communities and institutions. The Jomada Completa program has two main objectives: -9-  a. Improve the quality and relevance of learning and teaching in EGB3 schools and b. Improve equity by targeting students from socio-economically disadvantaged areas To achieve these objectives Jomada Completa will: (i) increase the number of hours of instruction per year that students receive from about 750 to up to 1,200 hours; (ii) promote leaming of the mother tongue, a foreign language and improve skills in Information and Communication Technology (ICT); (iii) diversify the supply of educational services through variety in quantity and quality of instruction; (iv) teach skills relevant to multiple labor market demands; (v) support values and principles that promote collective well-being; (vi) strengthen new forms of institutional organizational and management that encourage collective action; and (vii) support ongoing teacher training to improve teaching performance and teachers' role in the classroom. In addition, implementation of a better and more focused school environment will help the decentralization of school services in favor of more autonomous administration and a more participatory approach that involves school administrators, teachers, supervisors and other members of the education community, empowered to become the implementers of the very same changes they are supporting. 3. Sector issues to be addressed by the project and strategic choices: The proposed BASSEP supports the new DGCyE Administration's actions to target secondary schools serving students from poorer households with innovative and qualitative inputs embodied in the program for the "Jornada Completa". In order to create the conditions to confront broader sector issues of inequality, low quality and school management, the BASSEP project will address, in the selected (about 200) EGB3 schools (with about 60,000 students) the following issues: a. Providing more equitable access in education: by improving retention rates at EGB3 level in selected schools and increasing the transition rate between EGB3 (grade 9) and the new Polimodal, and increasing retention rates at the Polimodal level, providing new infrastructure for about 35 additional secondary schools, and rehabilitation of about 400 classrooms in up to about 165 existing secondary schools in the poorest areas; the targeted secondary schools will be selected on the basis of poverty criteria and implement a program of "Jomada Completa". b. Improved quality and relevance of learning. by supporting the implementation of increased leaming and teaching hours from annually about 750 up to about 1,200 hours in the selected EGB3 schools; providing support for the continued implementation of the Polimodal reforn (up-to-date equipment, laboratories, school libraries and technical assistance from local experts and institutions); providing teacher training and support services, including competitive scholarships for the best performing teachers; and providing support for improving the PBA assessment and examination system. c. Making school management more effective and more autonomous: by improving training and providing additional resources for secondary school management and teaching, supporting ongoing administrative reform activities at central and district provincial levels, which will lead to cost-efficient and effective monitoring and reporting; providing support for decentralization of decision-making and better accountability in the secondary schools and their districts, and providing incentives for evaluation of school performance, based on school development plans. Strategic choices. Reinforcing the Bank's assistance for secondary education in the Province of Buenos Aires is considered critical for the following reasons: - 1 0 -  a. The Province of Buenos Aires is more advanced than almost all other provinces of Argentina in the implementation of the secondary education reform. The increase in public spending on education over the last nine years, and the current drive of the PBA government to make the education system more equitable and cost-efficient, justify the Bank's support. b. Progress made by the reform is fragile and the PBA needs to keep the reform in its education sector on track. The PBA has the single largest educational system in the country and is leading other provinces in implementing education reforms. The outcome of these efforts are crucial in determining the willingness of other provinces to make changes and this potential multiplier effect would benefit the country as a whole. c. The proposed "Jornada Completa" Program for selected EGB3 schools, is part of the wider provincial strategy to give more resources and responsibility to the schools, and to improve the teaching and learning for the students in households from the lowest income quintiles. The BASSEP will be used to select best practices and to gain more experience in implementing the upper-secondary reform across the PBA and possibly other provinces. In order to accelerate implementation of the secondary education reform Argentina, BASSEP has been designed to complement and reinforce the activities financed under the following ongoing projects: a. The Federal Secondary Education I project (Prodymes I) (to be completed by December 2000): in the PBA this project finances: (i) education sector administration and management; (ii) education quality; and (iii) school access. b. The Federal Secondary Education II project (Prodymes II) (to be completed by December 2001) : in the PBA this project finances: (i) essential educational resources (e.g., library, computer and science laboratories); and (ii) school-based improvement projects in targeted secondary schools serving low achieving students in disadvantaged areas. c The PBA Secondary Education III project (Prodymes III) (to be completed by December 2001) : this is the first secondary education project loan directly to the Province of Buenos Aires and finances: (i) expanding school access in EGB and Polimodal levels due to the extension of mandatory secondary education; (ii) assisting priority schools with the transition to the Polimodal cycle (including pedagogic support for school development plans and youth projects -- ProFEI and AIJE), (iii) improving school management, providing educational materials, and training for 42 technical secondary schools. - 11 -  C. Project Description Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): Indicative Bank- % of Component Sector Costs % of financing Bank- ._______.___._ (US$M} Total (US$M) financing 1. Creation of additional EGB3 Secondary 59.69 34.3 36.69 64.4 school spaces in the poorest urban Education districts and rehabilitation of classrooms in about 165 existing EGB 3 schools to develop and apply a new pedagogical model of the "Jomada Completa" 2. Provide pedagogic equipment Secondary 102.50 59.0 14.80 26.0 (school libraries, science and language Education laboratories, and learning materials) and other pedagogical services and innovations for implementation of the" Jomada Completa" in the selected (about 200) EGB3 schools 3. Provide support for more 9.00 5.2 3.50 6.1 autonomous school management and innovative school projects in the selected (about 200) EGB3 schools and their districts; 4. Provide support for project 2.00 1.2 1.40 2.5 administration and management Total Project Costs 173.19 99.7 56.39 98.9 Front-end fee 0.60 0.3 0.60 1.1 Total Financing Required 173.79 100.0 56.99 100.0 2. Key policy and institutional reforms supported by the project: The project supports the implementation in the Province of the Federal Education Law (Ley Federal de Educaci6n) passed in 1993. This Law established (i) the change in education structure and curriculum; (ii) the extension of mandatory education from 7 to 10 years; (iii) the responsibilities of the administrative bodies of the sector as well as of the school community; (iv) the increase of total public education financing 20% annually. - 12 -  The project will provide direct support for implementation of the PBA secondary education reform, which aims to: (i) construct and rehabilitate school infrastructure necessary for the extension of mandatory secondary education; (ii) provide teacher training for the implementation of the education transformation; (iii) expand access to education at all levels, especially for the students from the poorest households; (iv) improve education quality, equity, and efficiency; and (v) provide computer, library and other pedagogic resources to the schools. The Province of Buenos Aires has already made progress in all these accounts. The project directly supports the provincial program to apply a new pedagogical program of the Full Day Schedule ("Jornada Completa") in selected (about 200) EGB3 schools, where the majority of the school population comes from the most socio-economically disadvantaged households (see school selection criteria below). 3. Benefits and target population: Quality, equity and efficiency a. Try out the Full day Schedule ("Jomada Completa"), with an increase in hours of instruction, and in the near future, utilize the lessons from this experience to implement the Full day Schedule in all provincial EGB3 schools in poorer districts; b. Increase equity, since the selected (about 200) EGB3 schools targeted are selected among the schools with highest NBIs levels and at-risk students. c. Work in schools where the existence of liasic educational resources will help to increase the motivation of school actors and facilitate the successful implementation of the Polimodal transformation. d. Support school Directors, teachers and administrative staff at provincial, district and school levels to innovative and international school/learning experiences, and provide them with better access to information, and improve the school and classroom management regarding pedagogic practices e. Decrease repetition and dropout rates in the selected (about 200) EGB3 schools and increase the transition rate to the Polymodal level. School Management a. Link to the improvement in education administration, partially financed by the BA Secondary Education Project. School directors and administrative staff will receive technical assistance and training to improve the schools' leaming environment and its management. b. Provide the basis for a decentralization reform of administrative school procedures that will transfer responsibility from the central level to districts and school levels. Target Population. The BASSEP will be implemented in selected (about 200) EGB3 schools providing education services to socio-economically-disadvantaged youth in urban areas. The project will target about 60,000 students (11% of the total EGB3 student PBA enrollment), about 3,200 teachers and about 400 school administrators in the selected schools (about 8% of the total number of EGB3 schools in the PBA). Poverty and equity considerations: a. Socio-economically disadvantaged youth. The Gran Buenos Aires urbanized area concentrates some 40% of the unemployed in Argentina, a segment of the population vulnerable to be afflicted by other social ills. In the province unemployment is high among young people (about 450,000) and young workers with incomplete secondary education, especially for those looking for their first job. - 13 -  Recent studies, show that workers with completed high school earned 30% more than those with incomplete high school. b. EGB3 level schools that precede Polimodal level. Concurrent with the PBA's efforts to implement education reform from the Federal level and it's own obligatory Polimodal, the PBA has at stake a high investment in education reform. Therefore, it must ensure an effective transition from EGB to Polimodal level. c. Urban areas. The PBA has 134 municipalities, 29 of which are located in the area surrounding the Capital Federal known as Conurbano, which concentrates most of the urban population in the PBA and close to 95% of the population in the province lives in urban areas. In addition, about 1,800 schools --predominantly in rural areas-- of a total 4,425 public EGB schools in the province have less than 20 students rendering the implementation of Jomada Completa not cost-effective and difficult to implement. d Public and Private schools. Private schools in the PBA already enjoy on a general level some of the pedagogical benefits of "Jornada Completa" such as the large number of hours of instruction and relative school autonomy. Unlike students in public schools, students in private institutions have the socio-economic means to complement school services with extracurricular activities such as sports, classes, travel and tutors. e. School institutionalfactors. These include repetition and drop-out rates, transfer rates from EGB3 (grade 9) to Polimodal (grade 10), total pupil enrolment (per gender and per section), degree of overcrowding, school population age distribution, extent of support services, complexity of articulation (linkage) in schools between EGB 1-2 and 3, if a school facility is shared with Polimodal and the average distance between an EGB3 school facility and its corresponding Polimodal school facility, composition of the school teacher force, and the average hours taught per individual teacher per school in the selected (about 200) EGB3 schools, and factors related to teacher and school director qualifications and inservice training. f Innovative School Education Projects (PE] or ProFEI). This project will be closely linked with the ongoing School projects and Youth programs in the ongoing Prodymes III project. The selected (about 200) EGB3 schools will receive technical assistance and staff training to develop innovative school projects and to agree on an Institutional Education Project (PEI) for each school (similar to those defined under Prodymes III). The selected (about 200) EGB3 schools can also use funds for Youth programs (similar to the AIJE programs as defined under the Prodymes III project) and apply the best practices from these experiences. Success will depend on the involvement of all members of the education community (students, parents, local enterprises, and community leaders). The definition and quality of the Schools' PETs or ProFEIs will be used as one of the selection criteria for the application of the "Jomada Completa". This larger margin of institutional autonomy means that proposals presented will go through a process of permanent review that will contribute to the creation of a school model with improved quality and equity. In order to target more effectively the varied circumstances surrounding the schools and the most disadvantaged population, different "Jomada Completa" models that are flexible enough to allow the schools to define their own institutional options will be proposed during the implementation of the in the selected EGB3 schools. - 14 -  COMPONENT INPUTS and INSTITUTIONS BENEFICIARIES Infrastructure for the 35 new schools 26,000 students (new schools) implementation of "Jomada 400 classroom expansions 35,000 students (expansion) Completa" in selected EGB3 Rehabilitate existing school facilities About 60,000 total students schools in the urban poorest about 200 EGB3 schools 400 School Directors and Deputies districts in the PBA About 3,200 school teachers Related non-teaching staff and parents Equipment and Learning Equiping about 200 priority EGB3 schools About 60,000 students Materials with labs, furniture, PCs, learning About 400 School Directors and materials and libraries Deputies About 3,200 school teachers Related non-teaching staff and parents School Development Plans Institutional and pedagogical and About 3,200 teachers will have ("Programa Educativo improvement plans for the selected (about received relevant training Institucional -- PEI)"or 200) EGB3 schools (School Development About 400 School Directors and "Programa de Plans and performance monitoring Deputies will have received relevant Fortalicimiento Educativo indicators developed by school clusters) training Institucional --ProFEI") Parents and Local Communities will have improved communication and coordination with the schools of their children Innovative School projects Innovation school-based projects developed About 60,000 students and 3,200 and training for teachers, and proposed by the selected (about 200) teachers will have formulated a school directors and EGB3 schools and application of Youth school project and improved their administrative staff; programs by students in the schools (AIJE) school environment application of school-based About 400 School Directors and Youth programs (AIJE) Deputies will have improved their school-based management and improved communications with their local communities (related non-teaching staff and parents) Selection criteria for the (about) 200 EGB3 schools financed by the project Criteria for selection of the (about 200) EGB3 schools in the Prodymes IILA project are as follows: 1. The selection will be based on the socio-economic profile of the school population, measured by various characteristics prepared by schools directors in cooperation with teachers and the school community (see below); 2. All the education Regions (16) should be included in the sample of the selected EGB3 schools; 3. Land availability for access expansion should be legally ensured for all the schools; 4. Ownership of the Jornada Completa" program and its implementation should be shown through a "Programa Educativo Institucional (PEI)" or "Programa de Fortalicimiento Educativo Institucional (ProFEI)" in each of the selected (about 200) EGB3 schools; this is - 15-  equivalent to a School Development Plan (complying with DGCyE guidelines) and the selected schools (through their Directors and Teacher-Parent Association) must agree to establish such a School Development Plan, with the related school performance indicators, during the first year of project implementation. Socio-economic profile of the school population. Selection criteria under item 1. have been determined on the basis of the schools' student population living in socio-economic disadvantaged conditions. These conditions are measured against various characteristics of the household and / or the student. The family information data are determined by the school director in cooperation with teachers, and the parents or children's supervisors (community). The data are available per school and are comparable with district averages. Methodology. The DGCyE will compile the basic statistical database for at least 400 poor EGB schools, in order to select about 200 EGB schools which will not implement the Full School Day as a control group, and the selected (about 200) EGB3 schools which will implement the "Jornada Completa". This tentative list of EGB3 schools must show their location, and comparative "socio-economic" school population data at district and regional level. The data will be supplied as outputs from the SIS and legajo unico information systems; if necessary it will be complemented by data resulting from specific baseline surveys and studies. The results from the database for the 400+ EGB3 schools will be presented in an organized way and will be analyzed according to the project objectives and components. The schools in the PBA include normally three cycles (EGBI+2+3) in one building. In the poorer urban areas the schools are for the most part over-populated, and there is a severe shortage of space to (i) accommodate the transfer enrollment into the EGB3 level (grades 7-9) in agreement with the new curricular requirements and (ii) respond to the increased demand for further education from the communities, which often live in poor conditions (housing, sanitation and other public services). The project will finance 3 extensions to existing buildings (construction of additional classrooms for EGB3 students (including laboratories and libraries) for implementation of the "Jomada Completa" (about 165 schools); and 3 in some areas the construction of new buildings to respond to the increasing demand for EGB3 school places in Jornada Completa.(around 35) A school can be selected into the project if the percentage of its student population at EGB level "living in disadvantaged socio-economic conditions" is higher than District's average for its student population. This "poverty-composite" indicator is based on the following socio-economic data from student and their households. For a student to be categorized as "living in disadvantaged sociao-economic conditions", he/she needs to fall into one of the following categories ("matricula en dificultad"): 1. Pupils from "villas de emergencia" (recognized slums) or pupils with similar problems 2. Pupils from families who occupy land illegally 3. Orphans or pupils who have been abandoned by their parents 4. Pupils who go to a neighborhood "care center" during the day ("Centros Complementarios") 5. Pupils from families with at least 4 of the following characteristics: 5.1. Families with more than 4 children below 18 years old; 5.2. Single-parent households with the head of the household unemployed; 5.3. Children from households in extremely poor conditions; - 16 -  5.4. Children with one parent who is illiterate; 5.5. One or more of the siblings have dropped out of school prematurely; 5.6. Students from households which receive social assistance. 4. Institutional and implementation arrangements: Implementation period: 4 years a. Project coordination. All education projects co-funded through external means in the PBA, are managed by the project Coordination Unit (UEP), which is part of the management and administrative structure of the PBA's DGCyE (provincial Ministry of Education). The BASSEP project will also be managed by the UEP, but it will be supervised by the "Project Supervisory Council", which will ensure coordinate and integration with ongoing projects, and with the DGCyE's reform sector strategy. The UEP also coordinates the IDB-funded PRISE project for Basic Education. UEP operations are managed by a General Coordinator, who is a member of the Director General's Cabinet. The UEP's project coordinator reports to and works under supervision of the General Coordinator. The project coordinator is responsible for (i) superving all adrninistrative staff in both the central and local offices, (ii) selecting and contracting of goods and services, (iii) implementing all project activities, (iv) managing project performance monitoring and auditing, and (v) producing regular project reports and the agreed studies' reports. The UEP has a team of about 40 professionals providing services for: (a) procurement and contracting, (b) accounting administration, (c) auditing and legal activities, (d) monitoring of project activities at district level and in the schools, and (e) keeping the education and pedagogical administration. The proposed project will finance about 50 percent of all UEP staff involved in the management of the BASSEP. b. Financial Management. The Province of Buenos Aires would maintain adequate financial management systems --including accounting, financial reporting, and auditing systems-- to ensure that they can provide the Bank accurate and timely information regarding project resources and expenditures, in accordance with: (i) the Financial Accounting, Reporting, and Auditing Handbook (Washington, D.C.;World Bank, 1995), and (ii) the Bank's Operational Policy (OP) and Best Practice (BP) 10.02, dated July 1996. Efforts are being made on a country basis to discuss with the Government the revised Bank financial management standards to comply with OP and BP 10.02, dated August 1997. With respect to auditing the Bank confirmed that the audit firm "Estudio Llanos y Asociados" (presently residing at in LaPlata, Province of Buenos Aires) is eligible to provide audit preparation services as long as it meets criteria of independence, quality, capacity and timeliness in the opinion of the Bank. This auditing firmn has already audited the ongoing Prodymes III project (L43 13-AR), and up to now the financial management of Education Sector projects has been satisfactory. The Bank's Resident Mission financial management specialist reviewed the procedures and found that they are consistent with Bank procedures and regulations. During project implementation, the Bank will provide assistance to improve and update a financial management practices and reporting. c. Executing agencies. The provincial DGCyE will be the responsible party and the main executing agency of the project. Managed by the DGCyE's Sub-Secretariat for Administration, several depending local executing agencies and main stakeholders (Cooperadoras and school communities) will be responsible for various aspects of project implementation. The UEP will be responsible for daily coordination and management of the implementation of the project, and the UEP's General Coordinator will report to the DGCyE Sub-Secretariat of Education and the - 17 -  Sub-Secretariat for Administration. The Secretariat for Education will be responsible for the implementation of the "Jornada Completa", the school-based pedagogic and innovative programs, and the supply of related equipment and learning materials. The infrastructure Coordinator of the UEP, under supervision of the UEP General Coordinator, will manage all contracting and supervision of civil works and rehabilitation of classrooms for the "Jomada Completa" in the selected EGB3 schools. The DGCyE's Public Works Office will oversee planning, budgeting, management and quality ensurance of the proposed civil works and classroom rehabilitation. d. Education Stakeholders. There will be an active involvement of school communities composed mainly of teachers, students, parents and school administrators who are beneficiaries and participants of this project. These stakeholders will: (i) administer and monitor the public works and supply of learning materials and equipment in their school through their "Cooperadoras"; (ii) benefit from technical assistance and training; (iii) develop school development plans and provide regular feedback to the UEP and DGCyE Secretariats about the quality and effectiveness of the goods and services supplied, and (iv) run extracurricular programs such as the Youth program (AIJE) at the school level. D. Project Rationale 1. Project alternatives considered and reasons for rejection: a. Quality and equity intervention in all secondary schools. It was decided to target the quality interventions to the 200 EGB3 schools in order to: (i) test the "Jomada Completa" and its corresponding pedagogical models with the accompanying increase in instructional hours (increased "time-on-task") on a basis. This will allow the "Jornada Completa" to be tested, before it will be applied on a wider scale in the PBA system. This will allow the DGCyE to improve the model, and prevent costly mistakes. The complexity of the "Jornada Completa" in terms of teacher and staff management and its additional costs at the school level also need to be analyzed, before it can be applied on a wider scale. In the near future, the lessons from this experience will be used to implement the best practices and principles of the "Jornada Completa" in the other secondary schools of the PBA in the poorest districts. The implementation of the "Jornada Completa" in the selected EGB3 schools will (i) increase equity, since the schools are selected with highest NBIs levels and serving at-risk student populations; (ii) help to increase the motivation of school actors and facilitate successful implementation of the EGB3 curriculum by providing additional educational resources; and (iii) provide access to national and international school/learning experiences for school principals and teachers. b. An innovative School Fund to finance school environment improvements. The original idea of a special fund for teacher training institutes was rejected because: (i) the current TTI structure is not well-prepared for implementing this bottom-up approach; and (ii) TTIs' quality-of-output and cost-efficiency need to be assessed, and they need to have clear guidelines and criteria for accreditation in order to quality for public financing before targeted interventions in TTIs can be adequately determined. Instead, this project provides incentives for improved learning and management at the school-level for a selected number of EGB3 schools in the poorest districts based on agreed and transparent eligibility criteria This can provide valuable insight in the mechanics of the necessary pedagogic change and the cost-impact of the "Jornada Completa". Selected TTIs will be involved in assisting and guiding the 200 EGB3 school in planning and implementing the "Jomada Completa" and the necessary staff and teacher training. This can have a two-way positive effect on - 18 -  the quality of learning and teaching. c. Institutional strengthening. It was decided not to include a specific component on institutional strengthening, because extensive technical assistance for this purpose is already being provided under the Prodymes I, II, and III. Instead, by targeting EGB3 school in the urban poorest districts with transparent, management-related criteria and setting performance indicators for the main project interventions, the effort will have an impact on the selected EGB3 schools and their communities. Lessons from this will then be applied on a wider scale. d. Funding TTIs to offer in-service training: The BASSEP will not directly fund TTIs and universities to provide pre-packaged teacher in-service and upgrading training. Instead, the project will support the preparation of comprehensive plans at the school level to contract training services from qualified suppliers of teacher training such as universities and accredited TTIs, according to the management and pedagogical needs of the schools. In addition, school teachers can apply for distance learning programs. - 19 -  2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). Latest Supervision Sector Issue Project (PSR) Ratings _________________________ _ |__ (Bank-financed projects only) Implementation Development Bank-financed Progress (IP) Objective (DO) Need to strengthen the institutional Federal Secondary Education I S S capacity of the provincial ministries of (P005992-Ln. 3794-AR) education and to increase the coverage and quality of secondary education. Need to improve the quality of Federal Secondary Education II S S secondary education. (P006057-Ln. 3971-AR) Need to improve coverage, efficiency, Buenos Aires Secondary S S quality, relevance and equity Education (P050714-Ln. 4313-AR) Need to promote greater equity, quality El Salvador Education Reform S and efficiency in the provision of Project (P050612-Ln 43200) education services. Need to improve the internal and Chile Secondary Education S S external efficiency, quality, and equity Project (P06673 - Ln3883) of all the municipal and government-subsidized private secondary schools (about 1,600), and to strengthen sectoral managerial capacity. Other development agencies Need to improve quality and coverage PRISE - Programa de of primary education in targeted areas. Reformas e Inversiones en Educaci6n, IDB (AR-0122) IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: Chile education reform lessons. The Chilean experience of education reform during the 1990 teaches several policy making and implementation lessons. The proposed BASSEP is a small poverty-focused secondary education investment project, executed by the PBA government in the context of a larger national secondary education reform. Therefore the following lessons from the Chilean experience - 20 -  are applicable. A comprehensive reform effort to transform and upgrade the education opportunities offered by a national schooling system can be best undertaken when four conditions, existing in Chile in the 1990s, are present: * Social consensus about the need for changes * Political support at the highest level within the government * Sufficient financial resources to fund the changes in the system * A time horizon that is longer than the term of the government Chile initiated the frill school-day concept (or "Jomada Completa" --JC) in 1996 in primary and secondary education as a modality to be applied progressively system-wide. To date (October 2000) the JC involves about 5,000 schools representing 50% of the total system and 22% of total enrollment in primary and secondary education. Primary school teaching increased from 30 pedagogical hours (45 minutes) to 38 pedagogical hour weekly and secondary school teaching increased from 36 pedagogical hours to 42 pedagogical hours weekly. The reasons for establishing the Jornada Completa in Chile were: (i) the need for more students' learning time devoted to basic skills (languages, information and communication technologies (ICT), mathematics, sciences, and teamwork) in the framework of the new curriculum; (ii) to allow teachers to spend more time in getting information for preparation of their classes as well as participate actively in the development of pedagogical projects in line with the objectives of the Education Reform; and (iii) to provide additional time especially "at-risk-students" attending schools located in poor rural and urban areas to improve their learning achievements. The Jomada Completa was financed by increasing about 30% the subsidy paid by the government to public (municipalities) and private providers. An additional fund was created to finance the infrastructure (new schools and remodeling) and equipment required for implementation of the Jomada Completa. Since the inception of the Jornada Completa the Chile Ministry of Education (MINEDUC) carried out three studies: two internal and one external developed by the Center of Research and Educational Development (CIDE) dated April 2000. The main conclusions are as follows: ? 80 % of the teachers indicate that the Jomada Completa has allowed them to improve significantly their pedagogical practices. O 90 % of the teachers are convinced that their working relationship with students is much better now as a result of more and regular interaction and problem solving discussions. * 67 % of the teachers consider that the Jornada Completa is helping them to improve the quality of education. * Over 55% of the students indicate a positive attitude toward the Jornada Completa as a good way to improve their performance * 78% of the parents say they are fully in favor of the Jomada Completa because their children are learning more and different things, are more motivated and it is better to have them in the school rather than in the street. * 62% of the School Principals indicate that teachers have more time for class preparation and that this is also expressed in less conflicts and a better school and classroom environment. * the general perception of school Principals and teachers is that students under the Jomada Unica are improving significantly their learning and that at the end of the school cycles they will have better results (which is indicated in the 1998 and 1999 National Assessment Tests where schools under the Jornada Completa shown a clear tendency of improvement in comparison with schools that are still in the "Jornada Simple"). * 60% of the teachers indicate that the Jornada Completa has positive effects on: (i) the reorganization of the school management; (ii) the effectiveness of the team work approach among teachers and pupils; and (iii) the commitment of the school to education reform. - 21 -  Lessons learned from the Chile experience that were taken into consideration in the design of BASSEP are: * The Jornada Completa is a modality with an high social and equity content; therefore the implementation should target with priority schools where a majority of the students population are socially and economically vulnerable. * The Jornada Completa is most successful when it is linked to a School Improvement Project (PEI) where the schools' main actors (directors, teachers, parents and students) have the opportunity to rethink the school environment and design their own proposals for improvements within transparent and flexible criteria. * The Jomada Completa will bring more benefits when it is related to pedagogic and administrative decentralization processes, because these facilitate the decision making process at school level. * The Jornada Completa must include special provisions and regulations concerning time limits spent by teachers in class preparation and in extra-curricular activities. * An increase of the number of school hours is not a solution by itself to improve quality and equity in education; to have a real impact the Jornada Completa concept should apply at the same time to a new pedagogic and curricular model as well as to concurrent training for teachers and Principals and to timely provision of education inputs (libraries, laboratories for sciences, languages, and additional teaching and learning materials). * To avoid frustration, parents, students and communities must be informed timely about objectives, expected outcomes, new procedures, and additional pedagogic modalities which are to be applied in the schools and class rooms, especially concerning home work (amount, organization, support for pupils), recreation possibilities within the school, and procedures for work shops and group work. 3 Given the intrinsic complexity of the application of Jornada Completa, close monitoring of the implementation, monitoring of additional costs, periodic assessment of learning improvement, evaluation of the schools' Development Plans (PEI), and the overall pedagogic concept of the Jornada Completa must be carried out; therefore the project design and the impact indicators reflect special provisions for: (i) student performance evaluation and motivation; (ii) the opinion of the teachers, school director, parents and pupils regarding the improvement of the school environment and implementation of the "Jornada Completa"; (iii) the use of time during the longer school day; (iv) changes in pedagogical practices; and (iv) effectiveness of the school PEI in managing the schools and making the school more autonomous. The PBA has a large consensus in the education community regarding the need for change. It has also demonstrated strong ownership for its secondary education reform process and corresponding projects co-financed by international agencies. The political will to support and move forward is strong and extends to the highest levels. The financial resources to fund the change are made available, but this happens in a time of considerable budget constraints. This hampers the reform process to a certain extent. So far, the support and a scaled-down budget continue to support the transformation process, but additional resources at the school level remain scarce. The time horizon of this reform is longer (a decade) than the term of government, and this PBA government, which took over in December 1999, has endorsed the reform agenda completely. Simple project design. Simplicity in the design of a project helps assure successful implementation. This lesson stems from the difficulties faced during the first stages of the implementation of Secondary Education I due to its complexity. Simple projects are less vulnerable to changes stemming from budgetary constrains because they are flexible enough to adjust their implementation. The proposed project has few components and simple implementation mechanisms. Synchronization with government policies. Experience in Argentina Secondary Education Projects I, II - 22 -  and III shows that synchronizing the implementation of the project with government policy andlor different stages of the reform is crucial to avoid administrative and implementation delays or obstacles. Projects linked to long-term reform policies maintain their viability despite political and management changes. The implementation activities of this project are designed to coincide with the timetable of the implementation of the Polimodal transformation in the PBA. Articulation with ongoing secondary education projects. Bank operational experience indicates that, especially in countries as large as Argentina, not one single project can work on all sector issues (e.g., sector management, education quality) at all levels (e.g., federal, provincial, school levels). In some cases, the most effective alternative is to articulate the components of several projects working at different levels. This is the approach that we have adopted for the Secondary Education I, II and III. The proposed BASSEP is a small project, but it will deliver important data and lessons on: (i) pedagogic improvements and bottlenecks for reform at school level; (ii) the costs of the introduction of the Jomada Completa; and the changes that need to be made in the schools and classrooms to get a better link with the local communities. These results and information are complementary to the ongoing projects, and together they will support the comprehensive and complex secondary education reformn in the Province of Buenos Aires. School community participation. Experience in other Latin American countries such as Brazil, Chile and El Salvador, demonstrates that strong school community participation in the education process has advantages such as increased accountability, greater communication, and improved school management. In the proposed BASSEP the Jomada Completa concept encourages and promotes more participation by and better information to parents and local communities. These elements are also expressed in the project impact indicators. Institutional strengthening. Experience shows that an adequate institutional capacity at the central level is crucial to the success of the project. Projects that support reform do not produce immediate outputs; therefore, they require participation at several levels, an implementation strategy, well-defined goals, and clear procedures and responsibilities. Since the project is linked to the Secondary Education I project, which focuses on administrative reform, the proposed project does not necessary to include an ample institutional strengthening component at the provincial level. 4. Indications of borrower commitment and ownership: The legal framework and provincial commitment are conducive to the implementation of the reform. The PBA passed the Provincial Education Law in 1995, which endorsed the transformation launched by the Decentralization Law (1992) and Federal Education law (1993). Additionally, the PBA and the Federal Government signed the Federal Education Pact in which, among other things, the Province agrees on the phasing of the reform between 1994 and 1999. Currently, a provincial draft law to extend mandatory education to the Polimodal has been submitted to the provincial legislation. In addition, the PBA is more advanced, in comparison to most other provinces, in the implementation of the reform. It has shown commitment to the reform by completing the EGB transformation one year in advance (1997), and by continuing to provide substantial support and resources to the ongoing Polimodal transformation. The proposed BASSEP will be financed for over 67% by the DGCyE, and preparatory actions have already begun. Some important actions that demonstrate provincial commitment are: a. Secondary education reform. The DGCyE's Administration Secretariat and Basic Education - 23 -  Secretariat have taken the lead in the Polimodal transformnation by preparing extensive quantitative and qualitative diagnostic studies of the secondary education transformation. Based on the findings of these studies, the DGCyE will implement the proposed project. b. Decentralization. The DGCyE team, in charge of the Administrative Reform in the education sector, has confirmed the current and near-future implementation of five institutional reforms necessary for the feasibility and sustainability of the quality improvements financed under the proposed project. These reforms are: (i) decentralized school budgets for learning materials and small maintenance, particularly in technical schools; (ii) incentives for concentration of teaching hours in the same school (keeping teachers together as much as possible in one school; currently most teachers in urban areas have a timetable in 3-5 different schools: "taxi-profesores") ; (iii) incentives for teachers tied to training and career development; (iv) availability of paid staff hours and school facilities for the development of extracurricular activities; and (v) decentralized decision-making to the districts and an effective MIS. In addition, the PBA is implementing an effective staff- and teacher MIS (legajo unico informatizado) which will deliver significant savings in the medium term. c. Quality. The PBA is implementing a structure to measure quality in education while supporting annual assessments carried out nationally by the Federal Ministry of Education. d Teacher training. The PBA is carrying out: (i) a reorganization of the supply of teacher training careers according to curricular reform requirements; (ii) an assessment of teacher training in the public and private sectors in the framework of PRISE; and (iii) in-service training for school directors (principals) and inspectors. e. Private Sector. The PBA has institutionalized policies geared to: (i) strengthen the private institutions' supervision and (reconocirniento) tools and mechanisms; (ii) improving targeting criteria to define and quantify subsidies to the private schools and institutions; and (iii) defining internal efficiency variables in subsidized private schools, non-subsidized private schools and public schools. 5. Value added of Bank support in this project: The Bank's financial and technical assistance will provide valuable contribution to the project's design and implementation, particularly because the Bank has substantial experience with Argentina's education system. In the ongoing Federal Secondary Education I project, the Bank is working with seven provinces, the Federal Secondary Education II project is financing secondary schools in all provinces and the PBA Secondary Education (III) project is finalizing the expansion and rehabilitation of EGB3 and Polimodal schools and supporting the transition from the traditional secoindary structure to Polimodal. Furthermore, Provincial Reform Loans (PRLs) are also working directly or in preparation with other provincial governments (Catamarca, Tucuman, Cordoba, Salta, Santa Fe). In addition, the Bank provides a balanced expert opinion in project design and implementation. Particular to this project, the Bank's team offers expertise and familiarity with the latest international developments on secondary education and implementation of the Jornada Completa and pedagogical decentralization programs (school-based programs for youth) particularly in Chile and El Salvador. - 24 -  E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Economic (see Annex 4): * Cost benefit NPV=US$195 million; ERR = N/A % (see Annex 4) o Cost effectiveness O Other (specify) 1. Economic Analysis (see Annex -4): Cost-Benefit Analysis: NPV=US$195 million The Economic Analysis indicates that the project is justifiable on economic grounds. The analysis considers both the direct project costs as well as the future recurrent costs. It also takes into account the combined effect of the reduction of repetition and drop-out rates on enrollment and incremental costs. The main benefit of the project derives from the increase in students' expected income due to an increase in the EGB3 completion rate (grade 9 completion) that can be expected from the reduction in drop-out rates produced by the implementation of the "Jomada Completa" in the selected (about 200) EGB3 schools. Various simulations were done to assess the sensitivity of the calculations to different assumptions concerning the impact of the project on drop-out and repetition rates (50%, 33%, or 25% decrease in both rates). The NPV reaches a maximum of US$195 million under the most favorable assumption and a minimum of US$23.6 million under the least favorable one. 2. Financial (see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see Annex 4) 2. Financial Analysis (see Annex 4): The Financial Analysis indicates that the project has a slightly positive NPV which derives, basically, from two counteracting effects on personnel costs: an increase produced by the implementation of the "Jomada Completa" and a decrease associated with a reduction in pupil repetition rates, an improvement in the efficiency of teacher deployment and a reduction in the number of substitute teachers. Fiscal Impact: Additionally, a financial analysis was performed to evaluate the recent fiscal performance of the Province of Buenos Aires and the fiscal impact of the proposed BASSEP. The project would have a relatively minor fiscal impact, with a total cost of US$173 million over four years. It would represent only approximately 0.5 percent of projected provincial revenues over that period. However, it should be pointed out that the Province of Buenos Aires faces a serious fiscal imbalance (representing around 20 percent of its current revenues) and an increasing debt to revenue ratio (projected to reach 65-70 percent at the end of this fiscal year). This will require a future fiscal adjustment which might make it difficult for the Province to expand, or continue the implementation of the "Jomada Completa" on a larger scale. 3. Technical: The project is technically justified on the basis of the public nature of the education problem it addresses: improving quality and equity of education service delivery and learning for socially and economically disadvantaged students from the poorest urban areas in selected (about 200) EGB3 schools, which are part of the PBA effort to transfonn its secondary education sector. The BASSEP will respond to this problem - 25 -  in a cost effective and appropriate manner by: a. Supporting the reform process in the PBA education for the mandatory Basic Education cycle (EGB3); the PBA has taken the lead in implementing the national education reform; the PBA serves almost half of all pupils in basic education in Argentina; b. Addressing the problems related to the lack of motivation for schooling among youth by providing more attractive educational services, involving students in extracurricular activities and raising chances of successful graduation. c. Introducing the Full Day Schedule and innovative pedagogic programs for EGB3 schools in the poorer districts. d. Promoting a better exchange of education performance and experiences between PBA schools and districts. e. promoting more decentralized education management in Districts and EGB3 schools, with increased school autonomy in using financial resources. f. Improving the efficiency of learning and the management within the EGB3 schools. 4. Institutional: Executing agencies. The Provincial government is committed and institutionally ready to implement the project. The PBA's Directorate General of Culture and Education (DGCyE) will be the responsible party and the main executing agency of the project. The project will be implemented by the Administration and Basic Education Secretariats, several executing agencies and main stakeholders (Cooperadoras and school communities). There will be an active involvement of school communities, composed of teachers, students, parents and school administrators, who will all be beneficiaries of the project implementation. They will: (i) supervise and administrate public works in their school; (ii) be provided with technical assistance and training for the implementation of the "Jomada Completa; and (iii) run the extracurricular programs for students (innovative school projects, and Youth programs -- AIJE) at the school level. 4.1 Executing agencies: The Provincial government is committed and institutionally ready to implement the project (see Indications of Client commitment and ownership, above). The PBA's Directorate General of Culture and Education (DGCyE) will be the responsible party and the main executing agency of the project. Within the DGCyE: the Subsecretariat for Education, the Subsecretariat for Administration, and the Project Implementation Unit (Unidad Ejecutora de Proyecto -- UEP) will be the main implementing and managing units. Education Stakeholders (school administrations, teachers, and local school communities) will be also be involved in planning and implementation at the local level. 4.2 Project management: For the technical pedagogic aspects of the "Jornada Completa", their related teacher and school director training and consultant services, and the innovative school and youth projects the project will be supervised by a "Project Supervisory Council", which will be appointed by the Director General of the DGCyE. The "Project Supervisory Council" means the council referred to in Section 3.06 (e) of the Loan Agreement, composed by: (i) the administrative sub-secretary; (ii) the sub-secretary of education, assisted by: (A) the provincial director for planning; (B) the provincial director of higher education and teacher training; and (C) pedagogic specialists; and (iii) the Project Coordinator of the UEP. The "Project Supervisory Council" will meet at least twice per year, and will be responsible for: (i) monitoring and evaluation of the implementation of the "Jomada Completa"; (ii) designing and monitoring the required specific studies and surveys related to the project impact and project implementation indicators; (iii) -26 -  delivery of the bi-annual project progress reports to the World Bank in accordance with a pre-agreed format. The UEP is satisfactorily coordinating three Bank education projects and one IDB project at the provincial level. In order to manage the BASSEP as well, the UEP was appropriately reorganized and provided with additional staff. The UEP's dynamic working relations and open communication with the EGB3 schools and other primary executing agencies established during project preparation will facilitate project management. The UEP will be responsible for: (i) daily project management; (ii) all administrative project requirements under supervision of the "Project Supervisory Council"; (iii) preparation and production of the bi-annual project progress reports in close coordination with the relevant pedagogic departments in the DGCyE; and (iv) implementing and monitoring all civil works and procurement of goods and services. 4.3 Procurement issues: An assessment of the agency in charge of implementing procurement actions for the project has been carried out identifying the organizational structure of the proposed PCU, the capacity and experience to implement procurement and interaction between the project's unit and the Ministry of Education and other provincial authorities (Tribunal de Cuentas de la Provincia de Buenos Aires, Auditoria Interna de la Direcci6n General de Cultura y Educaci6n -DGCyE-, etc.). The Bank's task team and the Borrower's representatives agreed on a specific action plan to address the weaknesses and potential risks identified in the Agency Capacity Assessment, defining a time table for implementing the corresponding activities. A satisfactory action plan and the implementation of the early activities is a condition of loan effectiveness. The project's risk factor has been determined as "AVERAGE". 4.4 Financial management issues: The project satisfies the Bank's minimnum financial management requirements. However, the project does not yet have in place an adequate project financial management system that can provide, with reasonable assurance, accurate and timely information on the status of the project (PMR) as required by the Bank/IDA for PMR-Based Disbursements. It has been established that the PCU/UEP maintains: (i) adequately trained and qualified staff; and (ii) separation of functions and responsibilities, which ensure adequate intemal management control and which prevents conflicts of interest. It was agreed that there will be SOE-based disbursement for transition period of six-month (6) from the effectiveness. An action plan by the borrower to remedy the situation has been agreed (see Annex 6). 5. Environmental: Environmental Category: C (Not Required) 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. The proposed project has been rated category "C" based on information provided at the appraisal stage. Currently the Bank has three secondary education projects and one higher education project under supervision with similar construction and rehabilitation components. The Bank has ample experience in supervising these projects, and all have followed the normal provincial and federal practices for school construction and rehabilitation, which require: (i) adequate student and staff sanitation facilities; (ii) use of approved building materials for school environments; and (iii) adequate facilities for waste disposal from science laboratories. School sites for new construction are located in areas where there is no risk of flooding, or archeological and cultural importance. All these ongoing projects were categorized as environmental category "C". All Bank supervision reports have rated project performance as satisfactory or above. All new school buildings have been approved by the local authorities and are currently in use without any complaints or defects. -27 -  In the past 3-4 years of education project supervision the Bank and the project authorities have not received any complaints from the local population (parents, students, communities), nor from other representatives (local, provincial or federal authorities) about any environmental aspects of the education projects. This is a small scale project, with the major objective being a new pedagogic model in 200 secondary schools. There are no indigenous people involved, nor will any population or group be displaced. The Bank's supervision task teams ensure careful selection of new school sites in order to avoid issues related to resettlement and to negative impacts on natural habitats and on cultural property. a. Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis: N/A b. What are the main features of the EMIP and are they adequate? N/A c. For Category A and B projects, timeline and status of EA and date of receipt of final draft: N/A How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environmental management plan? Describe mechanisms of consultation that were used, and which groups were 5.2 What are the main features of the EMP and are they adequate? N/A 5.3 For Category A and B projects, timeline and status of EA: Date of receipt of final draft: N/A N/A 5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted? N/A 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? N/A 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. Background To date, considerable information about the social sectors in Argentina has been gathered: (i) in 1998 and 1999 the Bank carried out a poverty study in Argentina that focused on poverty data by province and the link between this variable and the educational level achievement and labor market participation in the provinces; (ii) in 1999 the Bank carried out a study on the management of social risk that focuses on social risks by age group and the type of coverage available through social programs, including educational services; and (iii) a study on institutions which provide services to the socially-excluded, focusing on the city of Buenos Aires. As part of the preparation of BASAL project ( Buenos Aires Social Adjustment Loan) the PBA, with the support of the Bank, carried out a survey on the social sectors. A Social Assessment (SA) was carried out to determine the impact of education reform in areas of high incidence of - 28 -  poverty and to identify obstacles to be considered in its implementation. The SA has two phases; Phase I was completed during project preparation, and Phase II will be completed during the first year of project implementation. Methodology Phase I Focus groups of parents, youth from the community (including those who attend and those who do not attend school), teachers, and school administrators in the five pre-selected priority schools in socio-economic disadvantaged communities were organized to act as control group to the schools selected for the implementation of Jomada Completa. The focus groups were interviewed on a range of issues pertaining to (i) the concept of Jomada Completa and its usefulness; (ii) perception of the quality of education provided in public schools; (iii) perception of the relationship between secondary education and access to the labor market; (iv) factors that will improve the quality of education; (v) perception of the scholarship program and its relation to Jomada Completa; and (vi) opinion on the implementation of education reform in the PBA. Phase II. A review of the interviews carried out for the AIJE study and the selection of beneficiary groups under first BA Secondary Education Project (Prodymes III) will be used to determine the impact of the proposed project. Other outputs include (i) a summary report on the poverty situation in the PBA; (ii) the impact of the scholarship program among the poorest and in academic performnance; and (iii) control groups in schools for future comparison. Conclusions. The assessment concluded that the proposed project will adequately respond to the social issues raised by the stakeholders by including the following: * Increased psychological and pedagogic assistance to youth in schools at risk * Determine the impact of the scholarship program on youth attending Jomada Completa schools * Increased communication campaign to encourage parents to send their children to school * Determine if consensus (through school development programs, PEIs) to transform education in Jomada Completa schools is the most efficient/effective agent of school reform 6.2 Participatory Approach: How are key stakeholders participating in the project? The focus groups included teachers, supervisors, students, parents , and community based organizations (basically Cooperatives or "Cooperadoras") . 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? The project design received inputs of "Conciencia" one of the biggest NGO's in the education area and, especially the consultations with "Cooperadoras Escolares" (parents organization at each school) and students centers in the Social Assessment. OIM (International Migration Organization) carried out the Social Assessment. CEB (Centro de Estudios Bonaerenses) carried out the BASAL Survey. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? The eligibility criteria of the selected (about 200) EGB3 schools, are based on social assessment conclusions and will be monitored before and during project implementation. During supervision the World Bank will supervise the following agreements to respond to the social issues raised by the stakeholders: - 29 -  * Increased and improved psychological and pedagogic assistance to Youth in schools at risk (Youth Programs in schools or AIJE) * Determine the impact of the scholarship program on Youth attending "Jomada Completa" selected EGB3 schools (also using a control group) * Increased communication campaign to encourage parents to sent their children to school * Specially designed training program for teachers in the selected "Jomada Completa" schools, including training in dealing with social problems such as teenage pregnancy, adolescent sexuality; and problems related to how to deal with Youth from socio-economically disadvantaged backgrounds, their legal guardians and their parents. 6.5 How will the project monitor performance in terms of social development outcomes? At least 200 EGB3 schools selected on the same eligibility criteria (in the poorer urban areas and with a majority of pupils enrollment categorized as "matricula en dificultad") will act as control group to check if the "Jomada Completa" will accomplish its objectives of improving quality and attendance among the poorer Youth. 7. Safeguard Policies: 7.1 Do anv of the following safeguard policies apply to the project? Policy Applicability Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) 0 Yes * No Natural habitats (OP 4.04, BP 4.04, GP 4.04) 0 Yes 0 No Forestry (OP 4.36, GP 4.36) 0 Yes * No Pest Management (OP 4.09) 0 Yes * No Cultural Property (OPN 11.03) 0 Yes * No Indigenous Peoples (OD 4.20) 0 Yes * No Involuntary Resettlement (OD 4.30) 0 Yes * No Safety of Dams (OP 4.37, BP 4.37) 0 Yes 0 No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes * No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) 0 Yes 0 No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. N/A F. Sustainability and Risks 1. Sustainability: Given its size, the project would have relatively minor fiscal impact, and will be sustainable because the additional cost of: (i) extending the school day in the 200 schools targeted by the project; and (ii) maintaining the pedagogical equipment and the pedagogical services will be offset by a reduction of current expenditures in the following two main areas: (1) raising of the pupil teacher ratio together with a reduction in the repetition rate; and (2) cutting the number of substitute teachers (see financial summary in annex 5). The project will carefully monitor during its implementation the cost effectiveness of the "Jornada - 30 -  Completa"in the 200 targeted schools before applying it on the wider scale in the PBA Education System. Because of the difficult fiscal situation of the province, a decision will have to be made whether or not this extension would be financially sustainable. Part of the answer lies in the capacity of the provincial governnent to carry out the envisioned improvement of the management of teaching staff, as well as its effective redeployment among the school system. 2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1): Risk Risk Rating Risk Mitigation Measure From Outputs to Objective Continuity of the Federal policy for N The project is part of an overall reform, which is education; and Stability in the Provincial almost completed (EGB and Polimodal). This Administration and in higher level staff in project will support 200 selected EGB3 schools charge of the education policy. during a three year implementation period and includes a participatory approach to involve all key stakeholders. The new PBA government has declared that ongoing education reform is one of its main priorities. Weak commitment by the PBA to take M The Province of Buenos Aires is installing the actions regarding teacher and staff "legajo unico" staff monitoring system in all absentisms, staff reductions resulting schools, and it will be operative before the new from the application of the "legajo unico" 2001 school- year starts. It will be applied with and implement the Administrative Reform priority for the selected (about 200) EGB3 agenda agreed with the Federal schools. Government. Cooperation from teachers and school M The training and consultant services, combined directors to implement the "Jomada with close cooperation with the parents, and Completa" is important for success. This with annual surveys of these groups in the will involve changing the working selected (about 200) EGB3 schools and in an conditions of school teachers and staff. equivalent "control group of schools, will ensure that the Jomada Completa will be implemented and at the same time remain flexible enough to address upcoming problems and issues Fiscal constraints in the PBA public H The overall estimated additional costs for the budget may limit the available resources "Jomada Completa" in the selected (about 200) for education EGB3 schools represent less than I percent of the DGCyE's annual budget. In addition, the PBA has reached a formal agreement with the Federal Government to eliminate the provincial budget shortfalls by the year 2003 From Components to Outputs - 31 -  Resistance from private secondary M The selected (about 200) EGB3 schools will be schools to participate and apply the selected according to agreed criteria related to lessons and standardized norms for poverty, school director and teachers' interest in performance in their schools participation, and interest from the community, students and parents Reluctance from the staff and teachers in S The selected (about 200) EGB3 schools have the schools and at district level to been selected in a process of full participation participate and apply the new pedagogical from the schools, and teachers and staff in the model. selected schools will need to express their interest. Training programs have also been set up to explain the benefits and motivate the teachers and school directors. Inefficient administration, monitoring and M Progress in implementing the ongoing Buenos performance evaluation could affect the Aires Secondary Education project (Prodymes timely and synchronized school level III) has laid the foundations for sound implementation of the various educational administration and effective monitoring and inputs necessary to improve quality and performance evaluation. In addition, the equity. DGCyE cabinet is involved in bi-annual project evaluation meetings, which will allow timely corrective action. In most of the selected EGB3 schools H Two components will make the school more considered for participation in the project, attractive to teenagers: (i) participatory the teenagers feel alienated from their extra-curricular activities; (ii) laboratories, ICT school and have dropped out. The student equipment and the multi-media libraries, motivation for the new "Jomada financed under the project. In addition, the Completa" may not be sufficient to get student programs, focused on extra student-led them back in school and get successful activities, have been successful in the Polimodal graduation and EGB3 schools financed under the ongoing Prodymes III project. Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk) 3. Possible Controversial Aspects: The selection of the limited number of EGB3 schools (about 200) in the poorest urban districts may lead to problems in the relationship of DGCyE with other schools in the same districts, which will also want to benefit from the project. However, the DGCyE has started an intensive campaign of public awareness and has developed criteria to allow more EGB3 and Polimodal schools to apply the "Jomada Completa" in the coming years. - 32 -  G. Main Loan Conditions 1. Effectiveness Condition Project Operational Manual (Section 3.03 of the Loan Agreement). A project operational manual, satisfactory to the Bank, will be submitted before the Loan effectiveness, including, inter alia: (a) scheduled local workshops and training sessions at Selected EGB3 Schools; (b) the terms of reference, functions and responsibilities for PCU staff; (c) the administrative rules and procedures for planning, preparing, proposing, financing, supervising, and carrying out the Innovative School Subprojects; (d) the standard outline terns of reference for consultants' services to be procured under the Project; (e) the criteria and procedures for the review and approval of loan withdrawal applications to the Bank, in conformity with the instructions that the Bank may give to the Borrower in this respect; (f) the environmental criteria for selection of the sites for construction of new schools, as well as mandatory safeguards for any action which could possibly have a negative impact on natural habitats and cultural property; and (g) the schedule for construction, rehabilitation and equipment of the Selected EGB3 Schools, including the external evaluation report for equipment bid specifications through (an) independent consultant(s) satisfactory to the Bank. Financial Procedures Manual. Within the meaning of Section 12.01 (c) of the General Conditions the following was agreed as a condition of Loan effectiveness: the Financial Procedures Manual has been adopted by the PCU. The School and Parents Project Information Guide (Section 3.07 of the Loan Agreement) will be submitted to the Bank before Loan effectiveness. The Borrower, through DGCyE, shall prepare a pedagogical and technical information guide on the Full Day Schedule (the School and Parents Guide) for the selected EGB3 Schools, satisfactory to the Bank, said guide to include, inter alia: (a) objectives of the Full Day Schedule; (b) action plans for the implementation of the Full Day Schedule; (c) methodology of teachers and school directors' training and evaluation of the results of such schedule in teaching and management; (d) guidelines for curricular changes; (e) school level monitoring indicators; and (f) available resources and schedule of approximate delivery to Selected EGB3 Schools. Student and School Performance database (Section 3.08 of the Loan Agreement). The Borrower, through DGCyE, shall prepare and submit to the Bank before Loan effectiveness, within SIS, the baseline data for school and student performance. The baseline data, satisfactory to the Bank, shall include evaluative comparisons of student and school performance for (i) the selected (about 200) EGB3 schools; and (ii) a "control" group of at least 200 EGB3 schools (with a socially comparable student population) which do NOT apply the "Jomada Completa". The "SIS" means Sistema de Informaci6n Socio-Educativa, the Borrower's social and educative information database, created pursuant Provincial Resolution No. 13252, dated December 7, 1999. 2. Other [classify according to covenant types used in the Legal Agreements.] Project Management and Project Supervisory Council. Section 3.06 of the Loan Agreement: The Borrower, through DGCyE shall: (a) maintain within the DGCyE, during the execution of the Project, a unit (the PCU) for the overall management, coordination and monitoring and evaluation of the Project with functions and responsibilities acceptable to the Bank; - 33 -  (b) ensure that the PCU is headed, at all times during the execution of the Project, by a project coordinator (the Project Coordinator) with qualifications and experience acceptable to the Bank; (c) cause the PCU to have key staff with functions, experience, responsibilities, and qualifications acceptable to the Bank, in adequate numbers; (d) ensure that the PCU prepare, under terms of reference acceptable to the Bank, adopt, and update on a regular basis a manual for the implementation of financial procedures; and (e) appoint and maintain during the execution of the Project a "Project Supervisory Council", with membership satisfactory to the Bank, to be responsible for: (i) the monitoring and evaluation of the implementation of the Full Day Schedule; and (ii) the delivery of the semi-annual progress reports referred to in Section 3.05 of the Loan Agreement. The "Project Supervisory Council" means the Council referred to in Section 3.06 (e) of the Loan Agreement, composed by: (i) the Administrative Sub-secretary; (ii) the Sub-secretary of Education, assisted by: (A) the Provincial Director for Planning; (B) the Provincial Director of Higher Education and Teacher Training; and (C) pedagogic specialists; and (iii) the Project Coordinator of the UEP. Performance Monitoring Indicators and Midterm Review. Section 3.05 of the Loan Agreement: The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Monitoring Indicators, the carrying out of the Project, and the achievement of the objectives thereof, and shall by February 28 and August 31 of each year of Project execution, provide the Bank with semi-annual progress reports on the execution of the Project, in a format acceptable to the Bank, and including the Monitoring Indicators referred to above; and (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank by not later than February 28, 2003, a mid-term implementation review report, on the progress achieved in the carrying out of the Project, during the period preceding the date of said report, and setting out the measures recommended to ensure the efficient carrying out of the Project, and the achievement of the objectives thereof during the period following such date. Project Closure Report. Section 3.04 of the Loan Agreement. The Borrower shall (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan designed to ensure the continued achievement of the Project's objectives; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan. Project Completion and Closure dates. The Project is expected to be completed by July 31, 2004, and the closure date is established as January 31, 2005. The following items will be agreed in a Supplementary Letter to the Loan Agreement: Student and School Performance database. Section 3.08 of the Loan Agreement: The Borrower, through DGCyE, shall prepare and maintain, within SIS, a database, satisfactory to the Bank, in order to provide statistical, management and pedagogic information on improvement of school performance of Selected EGB3 Schools located in poor areas of the Borrower's territory. The "SIS" means Sistema de Informaci6n Socio-Educativa, the Borrower's social and educative information database, created pursuant Provincial Resolution No. 13252, dated December 7, 1999. The data submitted to the World Bank will be: * analyzed regarding comparable student and school performance; - 34 -  * effectiveness of "Jomada Completa" program in the selected (about 200) EGB3 schools, * analytically compared with a "control" group of at least 200 EGB3 schools which do NOT apply the "Jornada Completa" but also have a majority of their student population coming from poorer households. The analytical reports will be submitted once per year as part of the semi-annual progress report before February 28. Learning Achievement Assessment. DGCyE will design and implement annual learning achievement tests for the last two years of the EGB3 cycle (grades 8 and 9) in at least three academic subjects which are covered by the "Jomada Completa" curricula for (i) the total pupil enrollment of grades 8 and 9 in the selected (about 200) EGB3 schools; (ii) total pupil enrollment of grades 8 and 9 in a "control group" of at least 200 EGB3 schools with comparable student enrollment from poorer households; and (iii) a representative sample of grades 8 and 9 pupils in EGB3 in the Province of Buenos Aires. The leaming achievement test results will be analyzed (a) per district, per school, per subject and per gender; and (b) compared with the leaming results for the Province of Buenos Aires from the annual national achievement tests ("Operativo Nacional") for the two most recent years for which these results are available. The first achievement tests will be executed at the end of the school-year 2001 and each year thereafter. Staff and Teacher Monitoring System ("Legajo Unico Electronico"). The staff and teacher monitoring system ("Legajo Unico Electronico") will be fully operational in the 200 selected EGB3 schools before the end of school-year 2001. The DGCyE will submit a comprehensive monitoring report to the Bank before February 28, 2002, based on the "Legajo Unico" monitoring results and include strategic staff and teacher deployment recommendations. Project Social Assessment. The second part of the project "social assessment", according to the agreed termns of reference, will be executed in a timely manner in the first year of project implementation by an organization independent from the DGCyE, under a contract issued by the project implementation unit (UEP). H. Readiness for Implementation 1 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. El 1. b) Not applicable. C 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation. 1 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. 1 4. The following items are lacking and are discussed under loan conditions (Section G): The Financial Procedures Manual (within the meaning of Section 12.01 (c) of the General Conditions) needs to be adopted by the PCU. The Project Operational Manual (Section 3.03 of the Loan Agreement) Student and School Performance database (Section 3.08 of the Loan Agreement). The School and Parents Project Information Guide (Section 3.07 of the Loan Agreement) Baseline data for project performance impact indicators (see Annex 1) will be established during the first school year of project implementation. - 35 -  1. Compliance with Bank Policies Z 1. This project complies with all applicable Bank policies. C 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. N (y Jacob H-I. B an Jamil Sakmi Myrna L. Alexander Team Leader Sector Manager Country Manager - 36 -  Annex 1: Project Design Summary ARGENTINA: Buenos Aires Second Secondary Education Project Key Performance Hierachy of Oblecives Indicators Monitoring & Evaiuation Critical Assumptions Sector-related CAS Goal: Sector Indicators: Sectorl country reports: (from Goal to Bank Mission) Improve the quality and equity elncrease in Province of *Project Monitoring Reports *Continuity of the Federal of secondary education Buenos Aires test scores of *Household and poverty education policy the "Operativo Nacional' (the surveys *Argentina's and the PBA's national assessment tests) for *Specific surveys and sample economies improve grade 9 (EGB3 level) testing *The PBA recovers from its *Increase in Transition and *DGCyE's Social and budget deficit Retention rates at EGB and Educative Information *Stable Provincial Polimodal levels System ("Sistema de government relations with *Increase in access to Informacion Socio-Educativa education stakeholders schooling for students from -- SIS") (teachers and Unions) socio-economically disadvantaged households Project Development Outcome I Impact Project reports: (from Objective to Goal) Objective: Indicators: 1. Increase access to quality *EGB3 level student *Project bi-annual *Education stakeholders education and improve completion rates (grade 9) in Implementation Monitoring participate and support the equity by supporting the the selected EGB3 schools Reports (PIMR) EGB3 schools and the implementation of a Full are equal or exceed the *Midterm Project Review "Jornada Completa" program Day Schedule (known as the provincial average EGB3 (MPR) *Budget allocation for the "Jornada Completa") in completion rate specified *Specific consultancy reports implementation of "Jornada selected EGB3 schools separately for girls and boys. *Individual School statistics Completa" is provided serving students from the and monitoring reports * EGB3 schools' have the poorest households *Student transition rate from *DGCyE's Social and capacity to manage and EGB3 to the first year of Educative Information monitor the schools' Polimodal level in the System ("Sistema de pedagogic improvement selected EGB3 schools will Informacion Socio-Educativa programs (PEIs) be equal or exceed the -- SIS") and other DGCyE eContinued demand for EGB3 provincial average for EGB3 reports and statistics and Polimodal education transfer to "Polimodal" level *Operativo Nacional de (grade 10) as specified per Educaci6n results gender) *Household and poverty *Decrease in repetition rate surveys for the EGB3 level in the selected EGB3 schools to at least equal or better than the average repetition rate at provincial EGB 3 level (average provincial repetition rate for EGB3 in _1999 was 15% per grade) I - 37 -  *Pupil learning performance *Accurate targeting of EGB3 results in the selected EGB3 schools' beneficiaries based schools are equal to or on verifiable and realistic exceed the learning social assessment criteria performance of provincial averages in the same subjects as in the t national achievements test ("Operativo Nacional"). Pupil learning performance will be tested by specially designed sample-based pupil tests in each grade of the EGB 3 level for the selected schools and an equal representative sample of EGB3 pupils in schools without the "Jornada Completa" model. The assessment test will be designed and applied with technical assistance from international consultants (PISA and TIMSS) Improve school *EGB3 level student *PIMR * schools' capacity is management as a completion rates (grade 9) adequate to manage the necessary complement to in the selected EGB3 *MPR increased administrative and the introduction of a "Full schools are equal or financial resources Day Schedule" in the exceed the provincial eSpecific school performance DaylSctedule in schools exceraged the prom tio reports (PEI and AIJE) *School Directors, teachers selected EGB3 schools average EGB3 completion results and community leaders rate specified separately accept and support the for girls and boys. *School and community "jomada completa" model *Student transition rate surveys and interviews with from EGB3 to the first parents, students and year of Polimodal level in community leaders the selected EGB3 schools will be equal or exceed *Ministry of Economics the provincial average for financial reports and DGCyE EG133 transfer to annual statistics and the EPoimoal trnsere to ad "Legajo Unico" system "Polirnodal" level (grade *DGCyE's Social and 10) as specified per Educative Information gender) System ("Sistema de Informacion Socio-Educativa -- SIS") - 38 -  *Decrease in repetition rate for the EGB3 level in the selected EGB3 schools to at least equal or better than the average repetition rate at provincial EGB 3 level (average provincial repetition rate for EGB3 in 1999 was 15% per grade) *Pupil learning performance results in the selected EGB3 schools are equal to or exceed the learning performance of provincial averages in the same subjects as in the the national achievements test ("Operativo Nacional"). Pupil learning performance will be tested by specially designed sample-based pupil tests in each grade of the EGB 3 level for the selected schools and an equal representative sample of EGB3 pupils in schools without the "Jomada Completa" model. The assessment test will be designed and applied with technical assistance from international consultants (PISA and TIMSS) *All school directors in the selected EGB3 schools have been trained and the majority is satisfied with the quality, relevance and effectiveness of the training (based on annual random sample surveys and personal interviews) - 39 -  *AII school directors in the selected EGB3 schools have been trained and the majority is satisfied with the quality, relevance and effectiveness of the training (based on annual random sample surveys and personal interviews) *Student, parents and community attitude toward secondary schooling in districts of targeted selected EGB3 schools has improved (based on representative annual surveys and a number of follow up interviews with parents, students and community leaders) eSecondary school and classroom management criteria and best practices have been evaluated and the results have been produced in a coherent booklet and disseminated to all EGB schools in the PBA, based on the best practices learned from this project and from similar international best practices (notably with examples from Chile) _ -40 -  *All EGB3 school have improved management autonomy regarding financial, administrative and pedagogic matters (schools have a budget for leaming materials and small maintenance, maintain an adequate administration, and can define and implement innovative school projects); this will be measured by representative sample-based surveys and audits of schools, and personal interviews with school directors, teachers and parents from the selected EGB3 schools and from an equal sample of EGB schools not included in the project. - 41 -  Key Perforance Hiearchy of Obives : lnkators Monitoring & Evaluation Critical Assumptions Output from each Output Indicators: Project reports: (from Outputs to Objective) Component: 1. ACCESS AND EQUITY *60,000 youth enrolled in PIMR *Accurate targeting of 200+ EGB3 schools of DGCyE annual reports and schools' beneficiaries based EGB3 youth from the most Jomada Completa statistics; and DGCyE's Social on poverty and social socio-economically and Educative Information assessment disadvantaged households in *200+ EGB3 schools with System ("Sistema de *PBA is able to construct, the urban areas enrolled in adequate spaces (classrooms, Inforrnacion Socio-Educativa expand and rehabilitate Jomada Completa schools dining rooms, labs and -- SIS') infrastructure as scheduled library) for the implementation of Jomada Completa *Construction of 30+ EGB3 schools, 400 classrooms and 20 dining rooms 2. QUALITY, RELEVANCE *All teachers and school PIMR *Efficient administration for AND SCHOOL administrators in the Specific consultant reports timely school level MANAGEMENT schools are adequately Specific surveys and implementation of various trained, provided with interviews with parents, educational inputs to All School Development Plans guidance, and adequately teachers, community leaders improve education (Programa Educativo supervised on their outputs and students; and DGCyE's Institucional) in the schools linked to the Schools' PEIs Social and Educative *The PBA economy grows contain clear school during the development and Information System ("Sistema sufficiently to allow an objectives, have formulated a implementation of the PEI de Informacion adequate budget allocation to strategy how to achieve them, *Teaching loads (cargos) of Socio-Educativa -- SIS") the education sector and have been provided with all teachers in the selected the adequate resources. EGB3 schools are *Availability of resources to concentrated in one or two allocate to schools and Innovative and relevant schools to optimize the districts and the political curricula taught at Jomada school community culture approval to decentralize Completa schools *Schools have established fund management institutional links with local All teachers in Jornada enterprise networks and are *Adequate management Completa schools are qualified informed about local labor capacity and financial and teach only at a single market demands controls will be established school *AIl teachers and school and approved to allow more administrators in the selected school autonomy School decentralization EGB3 schools adequately *Teachers, Parents and (autonomy) trained in school Community leaders will management and cooperate with and support administration, pedagogical the proposed reform supervision and performance measures in the selected monitoring linked to EGB3 schools as well as on a increased school autonomy I_wider scale -42 -  *Adequate financial resources are transferred each year from DGCyE to the selected EGB3 schools and the selected EGB3 schools are autonomous in managing their allocated recurrent non-salary budget -43 -  00: 0 X Key Perforance f 0 0 ' Hierarchy of Obectives i ndlcators Monitoring& Evaluation Critical Assumptions Project Components / Inputs: (budget for each Project reports: (from Components to Sub-components: component) Outputs) 1. Creation of additional 59.6 Bi-annual Project DGCyE institutional capacity EGB3 school spaces in the Implementation Monitoring and the UEP (Project poorest urban districts and Reports (PIMR) Management Unit) capacity rehabilitation of Consultant and Architect are sufficient to prepare, classrooms in about 165 Survey Reports complete and deliver the new existing EGB3 schools to Specific Studies construction, rehabilitation and learning materials and develop and apply a new equipment on time (within pedagogical model of the the first implementation "Jornada Completa" year) There is adequate coordination within the DGCyE and between its various departments and the UEP 1. I Construction of new 47.4 All selected EGB3 schools school facilities will have an approved School development Plan within the first project implementation year, and the technical assistance and training activities have been designed and scheduled 1.2 Expansion of existing 11.9 school facilities and rehabilitation 1.3 Consultants (design, .3 supervision and evaluation 2. Provide pedagogic 102.5 Studies and specific pedagogic DGCyE institutional capacity equipment (school surveys; and the UEP (Project libraries, science and DGCyE's Social and Management Unit) capacity language laboratories, and Educative Information System are sufficient to prepare, learning materials) and ("Sistema de Informacion complete and deliver the new Socio-Educativa -- SIS') and construction, rehabilitation other pedagogical services other DGCyE Monitoring and learning materials and and innovations for Information Systems (MIS) equipment on time (within implementation of the" Project Midterm the first implementation Jornada Completa" in the Implementation review (PMR) year); selected (about 200) EGB3 schools There is adequate coordination within the DGCyE and between its various departments and the UEP -44 -  2.1 Human Resources 81.4 PIMR and PMR All selected EGB3 schools Required for Jornada Provincial Ministries of will have an approved School Completa Economy and Education development Plan within the statistics first project implementation Education District and EGB3 year, and the technical School statistics assistance and training activities have been designed and scheduled 2.2 Rehabilitation of labs, 7.0 School Directors, teachers and libraries & facilities in EGB3 parents in the selected EGB3 schools schools have been adequate;ly informed about the project and suppport the proposed reform 2.3 Equipment and teaching 11.4 aids 2.4 Technical assistance 1.3 2.5 Training and internships 1.4 3. Provide support for 9.0 DGCyE's Social and DGCyE institutional capacity more autonomous school Educative Information System and the UEP (Project management and ("Sistema de Informacion Management Unit) capacity innovative school projects Socio-Educativa -- SIS"); are sufficient to prepare, in the selected (about 200) Surveys among School complete and deliver the new inthe sehoolec d (bth2) Directors, Teachers and construction, rehabilitation EGB3 schools and their Parents; and learning materials and districts; equipment on time (within the first implementation year) 3.1 Seminars and workshops 0.5 PIMR and PMR for school principals and administrators 3.2 Computer equipment 2.0 3.3 School operating 4.8 expenses 3.4. Incentives for school 0.7 performance 3.5 Innovative projects fund 1.0 4. Provide support for 2.0 PIMR and PMR DGCyE institutional capacity project administration and and the UEP (Project management Management Unit) capacity is adequately strengthened and capable of completing and monitoring all project acitivities in a timely manner -45 -  Annex 2: Detailed Project Description ARGENTINA: Buenos Aires Second Secondary Education Project The Buenos Aires Second Secondary Education Project has the following Development Objectives: a. Increase access to quality education and improve equity by supporting the implementation of a "Full Day Schedule" (known as the "jomada Completa") in the selected EGB3 schools serving students from the poorest households. b. Improve school management as a necessary complement to the introduction of a full school-day in the selected EGB3 schools. In order to accomplish these objectives the project has four components: 1. Creation of additional EGB3 school spaces in the poorest urban districts and rehabilitation of classrooms in about 165 existing EGB 3 schools to develop and apply a new pedagogical model of the "Jomada Completa" 2. Provide pedagogic equipment (school libraries, science and language laboratories, and learning materials) and other pedagogical services and innovations for implementation of the "Jornada Completa" in the selected EGB3 schools 3. Provide support for more autonomous school management and innovative school projects in the selected EGB3 schools and their districts; 4. Provide support for project administration and management By Component: Project Component 1 - US$59.69 million Creation of additional EGB3 school spaces in the poorest urban districts and rehabilitation of classrooms in about 165 existing EGB 3 schools to develop and apply a new pedagogical model of the "Jornada Completa Jomada Completa's new curriculum and pedagogical inputs require adequate and innovative school facilities to develop the new methodologies and reap their benefits by reducing a persistent overcrowding in many urban school facilities. The Project of Jornada Completa (PPJC) will provide facilities to expand the number of hours spent by EGB3 students. Where feasible -- given school demand for EGB3 and space to build -- new especially designed school facilities would be built. Where constrains make it impossible to build new facilities, school spaces in existing facilities will be especially adapted to the needs of Jornada Completa. About 35 new EGB3 schools and about 400 new classrooms in existing 165 EGB3 schools would be built. These schools will be selected following social, poverty and educational criteria as described in section E and Annex 11 of this document. Civil work will be carried out according to a master plan designed by UEP following DGCyE standards and regulations. Each of the new schools will have a single civil work project which include all the facilities to develop the new pedagogic model and curricular for Jomada Completa. School rehabilitation will be done according to specific school's needs in the framework of Jomada Completa which should include facilities, such as libraries, labs, dining rooms, classrooms, etc. In both cases, the School "Cooperadoras" will select companies to take on the construction and rehabilitation works. However, the final selection, award, contracting, and supervision will be made by UEP. - 46 -  Project Component 2 - US$102.50 million Provide pedagogic equipment (school libraries, science and language laboratories, and learning materials) and other pedagogical services and innovations for implementation of the "Jornada Completa" in the selected (about 200) EGB3 schools This component will include (i) incremental human resources and operating costs of schools to be financed by the DGCyE annual budget. This will allow to concentrate in one place teachers working today in several schools, provide new teachers, principals and support staff for "Jornada Completa' s" new schools; (ii) rehabilitation of labs, supply of labs, libraries, and technical facilities in the 200 EGB3 schools such as about 200 ICT and technology labs, 200 Language labs, 110 School libraries; (iii) Learning materials and teaching aids, laboratory equipment for the sciences and Information and Communication Technology (ICT) for the implementation of the new "Jornada Completa" curricula including audiovisual materials, libraries with at least 300 volumes, and specific hardware and educational software; (iv) technical assistance to schools for laboratory equipment installation and use in the form of in-service teacher training and tutorial support to link this instruccional resource with the curricula to ensure the disemination and application of best practices; (v) training for teachers linked to the development and management of innovative school projects for quality improvement as part of the "Jomada Completa" implementation. Project Component 3 - US$ 9.00 million Provide support for more autonomous school management and innovative school projects in the selected (about 200) EGB3 schools and their districts; This component will include (i) local and international seminars and workshops for school directors and administrators which should include school management, crossfertilization activities and study tours in other provinces and nearby countries; (ii) supply of Information and Communication teaching and learning equipment to the 200 EGB3 schools composed by computers, infornation network, and distance learning websites; (iii) increased School operating expenses made by the provision of petit cash for incidental expenses, such as payment of school repairing and small services; (iv) funding competitive and innovative EGB3 school project proposals, which will include the financing of small project identified and prepared by the school community based on their diagnosis of the school situation and aiming to solve learning and teaching problems; (v) providing annual incentives to about 50% of the selected EGB3 schools, based on improvements of school performance indicators. Project Component 4 - US$2.00 million Provide support for project administration and management This component will complement the financing of the current UEP which is already implementing Secondary Education I, II and III and PRICE (BID). For the purpose the project will finance: 8 higher and lower level staff for civil work, accounting, procurement, supervision and monitoring; technical assistance and training in administration, mangement and information technology; utilitary vehicles; and office material and operating expenses. -47 -  Definition and Description of Jornada Completa The "Jornada Completa" aims to develop a new culture of learning in the classroom by applying a new pedagogical model in the third cycle of General Basic Education (EGB3) which will allow increase quality, retention and graduation as well as facilitate the access and success of the studentes to Polimodal by augmenting the real time of the students in front of the teachers from about 750 hours to up to 1200 hour per year to: The implemention of improved school facilities for the "Jornada Completa" students will * Allow more focus on and attention to at-risk students and their learning problems, and promote better retention rates for the 12-15 age group in the selected (about 200) EGB schools * Facilitate the application of better support services for students and teachers, and improve the school management * Allow the use of different teaching and leaming strategies, by using the new spaces and facilities in different ways (laboratories, seminars, student projects and workshops, teacher projects) * Reduce overcrowding in EGB1+2+3 schools, in the school catchment areas of the districts where the new and rehabilitated EGB3 schools will be situated v Allow the teachers to concentrate more teaching hours in one EGB3 school, and so improve their performnance and working conditions, and reduce their stress; this will allow the DGCyE in some cases to an reduce the number of "taxi-profesores"(teachers who teach at more than 3-4 different schools with working weeks of up to 70 teaching contact hours * Strengthen the management and knowledge base of the school director and allow school directors to promote teamwork in their schools (equipos de conduccion and school administration teams). * Allow the selected EGB3 schools to develop school plans The curricular changes by subject and time on task increase to be implemented are shown in the following table: Modulo / Discipline Current New Model Time Increase Model Additional (%) Languae 4 3 75 Mathematic 4 3 75 Social Science 4 1 25 Natural Science 4 1 25 Sport and Recreation 2 1 50 Artistic Education 2 1 50 Foreign Language 2 1 50 Informatics 2 2 100 Total 22 13 59 - 48 -  Teachers and school directors professional training. The objectives of the teachers training are as follows: * Reinforce the pedagogic skills of the teachers * Promote more teamwork amnong teachers within the school and among pupils * Promote the use of modem leatrming and taching materials conform the needs of the new curricula The training will take place using prepared courses by pedagogic experts, trainers from teacher training institutes near the selected schools and classroom work with tutors. Each teacher in the selected (about 200) EGB3 schools will receive about 150 hours of training, divided over five modules: * Pedagogical organization of the " Jomada Completa" * Problems in teaching at EGB3 level * Working in teams to prepare action plans * Evaluation and assessment in the classroom * Innovative school project and pedagogical and technical suppor The total number of teachers benefitting from the training in the 200 EGB3 schools is about 2,000. Thre modules will be offered during the school vacation (February), and two modules during the school year. About 250 trainers will be contrcted from the teacher training instituts. These trainers will be trained by specialists of the DGCyE. The project will finance (i) the hiring of trainers, (ii) the transport and subsistance costs for teachers; and (iii) course and training materials and equipment. The outcomes of the training will be measured by evaluating (i) the irnproved learning of pupils in the classroom in specific subjects (an annual sample-based assessment test will be prepared by the Evaluation and Monitoring Department of the DGCyE); (ii) the reduction the repetition and drop-out rates in the selected (about 200) EGB schools; and (iii) the annual surveys among teachers , school directors and parents (communities) regarding the school and classroom environment. School Directors: The objective of the school directors' training are as follows: * Change the role of the schoool director from an administrator to a better pedagogical advisor and school manager The training will take place using prepared courses by experienced school directors and pedagogic school experts, trainers from teacher training institutes and the national university located in the province. Training for the trainers will take place before March 2001, the start of the new schoolyear. The training will consist of four modules: * Pedagogical organization of the " Jomada Completa" * Supervision of pedagogical practices and interventions in the classroom * Evaluation and assessment at school level * Innovative school projects and pedagogical and technical support Each school director will receive about 100 hours of training. About 60 trainers will implement the training. The project will finance (i) the training contracts with the teacher training institruts and the university, and (ii) subsistence and transport costs for the school directors. - 49 -  PROVINCE of BUENOS AIRES, ARGENTINA Second Secondary Education Project Project Articulation Graph Secondary Education I Administrative reforn US$8.2 Improving Rehabilitation of classrooms US$7.6 management of the 2nd Phase of Polimodal US$1.7 education sector transformation Loan Total US$17.5 Secondary Education II andingaccess Basic Education. resources mandatory Basic School-based improvement Education (EGB) projects (PEI) Loan Total US$47.C Secondary Education III Build 9th grade classrooms US$94.0 Improvmg qua n and rehabilitation of sec. Schools 200 Polimodal Improve quality and relevance US$23.7o Project implementation US$1.3 Loan Total US$119.C 2nd Secondary Education (BASSEP) Jornada Completa Infrastructure US$35. I Improving quality an Quality and relevance of learning Ieqpo in selected (aout 200) in EGB3 ussO.'/ equity ho in slce(aoth200 Support Decentralizacion US$10.5 G s i t Project implementation US$0.4 poorest urban district Loan Total LIS$56.99 Notes: Secondary Education I and II loan totals correspond to the portion of the loan directed to the Province of Buenos Aires; all dollar figures are in millionsof US$. - 50 -  Annex 3: Estimated Project Costs ARGENTINA: Buenos Aires Second Secondary Education Project Local Foreign Total Project Cost By Component US $ million 1. Creation of additional EGB3 school spaces in the poorest 53.6 1.7 55.4 urban districts and rehabilitation of classrooms in about 165 existing EGB 3 schools to develop and apply a new pedagogical model of the "Jomada Completa" 2. Provide pedagogic equipment (school libraries, science and 96.3 5.5 101.8 language laboratories, and learning materials) and other pedagogical services and innovations for implementation of the "Jomada Completa" in the 200 EGB3 schools 3. Provide support for more autonomous school management 6.9 2.1 9.0 and innovative school projects in the 200 EGB3 schools and their districts; 4. Provide support for project administration and management 1.6 0.4 2.0 Total Baseline Cost 158.5 9.6 168.1 Physical Contingencies 4.5 0.1 4.7 Price Contingencies 0.4 0.1 0.5 Total Project Costs 163.4 9.8 173.2 N/A N/A N/A Front-end fee 0.0 0.6 0.6 Total Financing Required 163.4 10.4 173.8 -51 -  Estimated Project Costs Total Cost % of Total Bank % of w/Conting. Project Financing Bank Project Component (US$ millior Cost (US$M) Financing 1. New Schools and Remodeling for Application of 59.74 34 36.69 64 Classroom Based Pedagogical Model 1.1. EGB3 schools (35) 47.48 27 29.06 51 1.2. Remodeling & Expansion for EGB3 "Jomada Completa" (165) 11.92 7 7.29 13 1.3. Consultants (design,supervision,evaluation) 0.34 0 0.34 1 2. Pedagogical Improvement & Innovation 102.51 59 14.84 26 in EGB3 Schools 2.1. Human Resources Required for "Jomada Completa" 81.37 47 0.00 0 2.2. Rehabilitation of Labs.,Librares & Facilities in EGB3 schools 7.02 4 4.29 8 2.3. Equipment and Teaching Aids 11.38 7 7.96 14 2.4. Technical Assistance 1.31 1 1.31 2 2.5. Training and lntemships 1.44 1 1.27 2 3. Decentralization of School Management 8.97 5 3.52 6 3.1. Seminars and Workshops for Principals & Administrators 0.47 0 0.42 1 3.2. Informatics Equipment 2.00 1 1.40 2 3.3. School Operating Expenses 4.80 3 0.00 0 3.4. Incentives for Schools Performance 0.70 0 0.70 1 3.5. Innovative Projects Fund 1.00 1 1.00 2 4. ProjectAdministration and Management 2.02 1 1.38 2 4.1. Personnel 0.94 1 0.94 2 4.2. Technical Assistance 0.29 0 0.29 1 4.3. Office Equipment and Vehicles 0.21 0 0.15 0 4.4. Operating Expenses 0.57 0 0.00 0 TOTAL PROJECT 173.24 100 56.44 99 Front-end fee 0.56 0.56 1 Grand Total 173.79 56.99 100 - 52 -  PROPSED RNAMNG LOCAL FOREIGN TOTAL TOTAL DGCYE DGCyE DGCyE DGCYE DGCyE PRGIECT PFETCOST MGET PROECT B4WK PROECT BRNK PRESUP. PFIET BA4W CATEGCRYlf LOCL FOC TOTAL % % % % % EJ 1Uj CK VAR 64,423.9 1,9B25 66,416.4 0.4 0.6 0 1 25,769.6 40,646.9 66,416.4 TRANING 1,357.6 334.6 1,692.2 1 0 1 0 1,6922 1,692.2 CONSULTANT SER?ACES (CM Vuts eiab 2B9.7 67.4 337.1 1 0 1 0 337.1 337.1 C0NSULTANT SRVICES (t SdW eLe0) 930.3 66&7 1,599.0 1 0 1 0 1,599.0 1,599.0 NCREMENTALHLN RESOURCES 86,170.0 - 86,170.0 1 0 0 1 86170 0 0 86170 AND CENTRALDSCFOOLS OPERATION EUIPMENTANDWHICLES 6,911.9 6,6821 13,594.0 0.3 0.7 0.3 0.7 4,078.2 9,515.8 13,594.0 INIWATE PRIJBETS RND & INCENTNES 1,700.0 - 1,700.0 1 0 1 - 1,700.0 1,700.0 TEAS4HGMATERI,SAANDS.UPRES 121.9 54.6 176.5 1 0 1 0 176.5 - 176.5 UEPCCONSULTANTS FOR A AT IN 944.6 - 944.6 1 0 1 - 944.6 944.6 PFCIECT CERATNGD7:ENSES 614.8 - 614.8 1 0 1 0 614.8 - 614.8 FRONTENDFEE - 564.3 564.3 1 0 1 0 - 564.3 564.3 TOTAL 163,444.7 10,354.2 173.799 86170 30,639.0 56,990.0 173,799.0 Total Projed id. Reajrrent i 0.4957742 0.2 0.3 1.0 Toda Prcped e,d. Reamert ats 0.3 0.7 1.0 - 53 -  Annex 4: Cost Benefit Analysis Summary ARGENTINA: Buenos Aires Second Secondary Education Project Economic Analysis: Summary of Benefits and Costs: On the benefit side, the main benefits of the project will consist in (a) an increase in future earnings related to the decrease in drop-out rates and (b) cost savings related to the decrease in the repetition rate. A decrease in drop-out rates will lead to higher completion rates and, thus, to higher productivity and future labour earnings. Repetition increases the average number of years a student takes to complete a certain school level, which in this particular case corresponds to the three EGB levels. Consequently, it increases both the cost per graduated student and the total cost of the corresponding school level. A decrease in the repetition rate will bring to a decrease in both the unit and total costs. On the cost side, two main categories of costs can be detected: (a) the direct costs of the project and (b) the future recurrent costs. The implementation of the jornada completa, the central aspect of the project, is necessarily associated with a significant increase in recurrent incremental costs, that is, those project-related expenses which will be maintained even after the project implementation process, or, even, permanently. Future recurrent costs were precisely estimated differentiating the ones generated by the building of new schools from those related to the expansion of existing facilities. Calculation of Benefits: Benefits associated with lower drop-out rates The economic value of labor market insertion after completion of the EGB has been evaluated in terms of the income differential between the groups with 6 schooling years and 9 schooling years over the whole working life of the individuals. The opportunity cost of staying longer in school has been supposed null considering the young age of the children attending the third cycle of EGB (from 12 to 14 years). The calculation of the income differential was carried out on the basis of the Informe sobre la pobreza en la Argentina. As can be seen in Table 1, the difference in the average monthly wage associated with 6 and 9 schooling years is US$ 123,70, representing US$ 1,484 annually. Considering income streams over a working life of 48 years, from EGB completion to retirement, the present value of the annual wage difference reaches US$ 11,034 at a 10% discount rate (see Table 2). In a second stage, this value was multiplied by the number of children who would complete EGB under three different assumptions in the decrease of the drop-out rate: decrease of 50%, 33% and 25%, leading respectively to approximately 30,000, 20,000 and 15,000 new students completing EGB (see Table 2). - 54 -  Benefits associated with the lower repetition rate The combined effect of the decrease in drop-out rates and repetition rate leads to a slight decrease in the number of students enrolled in EGB in the 200 schools with jornada completa producing some cost saving expressed as the product between the unit cost of EGB in the 200 schools and the reduced enrollment in these same schools (see Table 3). Three different alternatives were considered in calculating this cost saving: an immediate and constant 50% decrease in both the drop-out and repetition rates, a decrease of 33% and one of 25% (this last one is the one assumed in Table 3). Main Assumptions: .It is assumed that the pupil/teacher ratio remains constant leading to an unmodified cost per student in the "without project" scenario. .The incremental unit costs in the 200 schools with jornada completa were calculated on the basis of a precise estimation in the increase of personnel expenses in 165 existing schools and 35 new ones. It is assumed that in all case the schools are second category ones with 12 third level sections of EGB distributed as following: 4 sections for each of the grades of the third cycle (7, 8 and 9th), and an average number of 30 students per section. In the case of the implementation of the jornada completa in existing schools, one third of the costs is imputed to directors, librarians and counselors, the cost for 4 instructors is added and the number of modules is increased by 50%. For new schools, only the variation strictly related to the implementation of the jornada conipletaa was considered. This variation consisted in the allocation of a director of 3ra, 4 instructors and 50% new modules. .Between 1996 and 1999 total EGB enrollment expanded at an annual rate of 10.3% from 1,306,717 total students to a total of 1,782,188 students. This evolution does not offer an adequate basis for projections since it expresses the progressive incorporation of new cohorts. The projections were elaborated on the basis of a cohort analysis, which, on average, shows a growth of 2% annually. .The initial number of students in the 200 schools was extrapolated from the enrollment of 147 schools with characteristics similar to the ones in the project. It was then assumed that this initial value increases at the same rate that total enrollment (2% annually). .Finally, it should be pointed out that the lack of reliable data on drop-outs has made it necessary to base the estimations on the proportion of "difficult cases" enrolled out of a total sample of 147 schools with characteristics similar to the schools included in the project, even if these data tend to overestimate drop-out rates. Cost-Benefit Analysis: As shown in Table 3, the total fiscal benefits of the project were worked out as the difference between cost - 55 -  savings and the incremental costs associated with the implementation of the jornada completa. To these benefits, estimated in present values terms through the application of a 10% discount rate, was then rested the present value of the investment costs (assuming that investment costs are executed in 4 years) producing an NPV initially negative. However, the NPV turns positive when we add the present value of the income differential associated with the completion of the EGB. Sensitivity analysis / Switching values of critical items: Tlhree different assumptions were made concerning the impact of the project on drop-out and repetition rates. A first alternative assumed a decrease of 50% in both rates, a second one a decrease of 33% and a third one a decrease of 25%. The NPV remains positive under the three different assumptions. It is found to reach a maximum of US$195 million under the most favourable assumption and a minimum of US$23.6 million under the least favourable one (shown in the table). According to these results, the project appears to be justifiable on economic grounds. TABLE 1 Monthly income expected with 6 vears of schooling 455.40 Monthly income expected with 9 years of schooling 579.10 Monthly difference 123.70 Annual difference 1,484.40 - 56 -  TABLE 2 Projections of expected annual incomes Year Base value Discount rate Expected income 1 1.48 1.1 2 1.484 1.21 3 1.484 1.331 4 1.484 1.4641 1.013.59 5 1.484 1.61051 921.45 6 1.484 1.771561 837.68 7 1.484 1.9487171 761. 53 8 1.484 2.14358881 692.30 9 1.484 2.357947691 629.36 1 0 1.484 2.59374246 572.15 11 1.484 2.853116706 520.13 12 1 484 3.1 38428377 472.85 13 1.484 3452271214 429.86 14 1A484 3,797498336 39078 15 1.484 4,177248169 35526 16 1.484 4.594972986 322.96 17 1.484 5054470285 293.60 18 1.484 5.559917313 61 19 1.484 6.115909045 24265 20 1.484 6.727499949 220,59 21 1.484 7.400249944 20053 22 1.484 88140274939 182.30 23 1.484 8.954302433 165.73 24 1.484 9.849732676 150.66 25 1.484 10.83470594 136.97 26 1.484 11.91817654 124.52 27 1.484 1310999419 113.20 28 1.484 14.42099361 102.91 29 , 1484 15.86309297 9355 30 1.484 17,44940227 85.05 31 1.484 19.1943425 77.31 32 1.484 21.11377675 70.29 33 1.484 23.22515442 63,90 34 1.484 25.54766986 58.09 35 1.484 28.10243685 52.81 36 1,484 48.01 t = 37 [ J1,484 34 00394859 43.64 38 A.484 37.40434344 39.67 39 1 1,484 41.14477779 36.07 40 . 1.484 45.25925557 32.79 41 1.484 49,78518112 29.81 42 1,484 54.76369924 27.10 43 1.484 60.24006916 24.63 44 1,484 66.26407608 22.40 45 1.484 72.89048369 20.36 46 1.484 80.17953205 18.51 47 1.484 88.19748526 16.83 48 I484 97.01723378 15.30 49 1.484 106.7189572 13.91 50 1,484 117.3908529 12.64 51 1.484 129.1299382 11.49 PV difference In Individual income 11.034.59 Decrease In drop-out rate by 50% 31.058 PV difference in total income 50 % 342712.254 12 Decrease In dropnout by 33%0/ 20.705 PV difference in total Income 33 _L 228.471 15788 Decrease In drol-out rate b 25by 15.529 PV difference in total Income 25%