Senegal - Quality Education for All Project

Document of The World Bank ReportNo: 19610-SE PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 36.7 MILLION (US$50 MILLION EQUIVALENT) TO THE REPUBLIC OF SENEGAL FORA QUALITY EDUCATION FOR ALL PROGRAM IN SUPPORT OF THE FIRST PHASE OF THE TEN-YEAR EDUCATION AND TRAINING PROGRAM (PDEF) MARCH 20, 2000 Human Development II Country Department 14 Africa Region  CURRENCY EQUIVALENTS (Exchange Rate Effective as of February 10, 2000) Currency Unit = CFA Franc (CFAF) CFAF 650= US$ 1.00 US$ 1.00 = CFAF 650 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS ADB African Development Bank EFI 'Ecole de Formation des Instituteurs A4:FD fAgence Fran:aise de Developpement ENS Ecole Normale Superieure AGETIP Agence d'Execution des Travaux dInteret Public FAC Fonds d'Aide et de Cooperation gCIDA Canadian International Development Agency FDS Fonds de Developpement Scolaire CMA Construction Management Agency HiPC Highly Indebted Poor Countries CNCS Comite National de Coordination et du Suiv IA iI spection.dA.cademie CONSEF Conseil Supmrieur de I'Education et de la .DB Islarnic Development Bank Formation 'CPAR Country Procurement Assessment Review 'EC 'Information, Education, Communicailon -CREA iCenire de Recherche en Economie Apoliqude .IDEN> Inspeciion Departementale de lI'Education Nationale CTR Coordinateur Technique Reigional INEADE Inst National d'Etudes et d'Action pour le Developpement de l'Educalion CUR ACentre Universitaire Regional LACI Loan Administration Change Initiative iDAEB gDirection de l'4lphabitisation et de lI'Education de -MCC Management and Coordination Committee Base DAGE Direction de lAdministration Generale et de MEN Ministere de I'Educatiion Vaionale 'IEquipement DCES Direction des Constructions et Equipements NGO Non-Governmental Organization . Scolaires DDJ n Direction de la Dette et de lInvestissemeni PA Project Account iDEMSG -Direction de l'Enseignement Moyen et Secondaire P.DDE Plan Departemental de Developpement de i'Education -General DEPEE -Direction de 1'Education Prescolaire et de PDEF Programme Decennal de I'Education et de la l'Enseignement Eldmentaire Formation DES 'Direction de I'EnseignementSuperieur POBA Plan d'Opiration et Budget Annuel' DET Direction de .'Enseignement Technique W. FRDE Plan RPg_ional de Dbeeloppemeni de PEducation SDFP Direction de ia Formation Professionnelle QEFA .uaiiy Education For Al.I SDRH Direction des Ressources Humaines SA .Special Account DPRE Direction de la Planification et de laReforme de SNE .Special Needs Education I Education ECD Early Childhoo d Development UPE Universal Primary Education Vice President: Jean-Louis Sarbib Country Director: Mahmood A. Ayub Sector Manager: Nicholas R. Burnett Task Team Leader: Robert S. Prouty  SENEGAL QUALITY EDUCATION FOR ALL PROGRAM CONTENTS A. Program Purpose and Project Development Objective Page 1. Program purpose and program phasing 3 2. Project development objective 4 3. Key performance indicators 4 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 5 2. Main sector issues and Government strategy 5 3. Sector issues to be addressed by the project and strategic choices 8 4. Program description and performance triggers for subsequent loans 8 C. Program and Project Description Summary 1. Project components 9 2. Key policy and institutional reforms supported by the project 10 3. Benefits and target population 12 4. Institutional and implementation arrangements 12 D. Project Rationale I. Project alternatives considered and reasons for rejection 17 2. Major related projects financed by the Bank and other development agencies 18 3. Lessons leamed and reflected in proposed project design 18 4. Indications of borrower commitment and ownership 20 5. Value added of Bank support in this project 20 E. Summary Project Analysis 1. Economic 20 2. Financial 22 3. Technical 22 4. Institutional 23 5. Environmental 28 6. Social 28 7. Safeguard Policies 29 F. Sustainability and Risks 1. Sustainability 30 2. Critical risks 30  3. Possible controversial aspects 31 G. Main Loan Conditions 1. Effectiveness Condition 32 2. Other 32 H. Readiness for Implementation 33 I. Compliance with Bank Policies 33 Annexes Annex 1: Project Design Summary 34 Annex 2: Project Description 41 Annex 3: Estimated Project Costs 61 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 62 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 84 Annex 6: Procurement and Disbursement Arrangements 85 Annex 7: Project Processing Schedule 98 Annex 8: Documents in the Project File 99 Annex 9: Statement of Loans and Credits 102 Annex 10: Country at a Glance 104 Annex 11: Financial Management Arrangements 106 Annex 12: Primary School Construction Arrangements 112 Annex 13: Triggers for Phases 2 and 3 of the Adaptable Program Loan 125 Annex 14: Letter of Sector Policy 132 MAP(S) IBRD 25934  SENEGAL Quality Education For All Program Project Appraisal Document Africa Regional Office AFTH2 Date: March 20, 2000 Team Leader: Robert S. Prouty Country Manager/Director: Mahmood A. Ayub Sector Manager/Director: Nicholas R. Burnett Project ID: P047319 Sector(s): EE - Education Adjustment Lending Instrument: Adaptable Program Loan (APL) Theme(s): EDUCATION Poverty Targeted Intervention: Y [Proam Ffiancing Data. 'E,imaftd APL Indicativ FinancingPlan . - me e: :-Ped Borrower _ _ _ _ _ _ _ _~ ~ ~ - _ _ _ _ - . - F Y ): IDA Others Total Commitment Closing US$ m % US$ m US$ m Date Date APLI1 50.00 5.4 876.00 926.00 06/01/2000 06/30/2003 Government of Senegal Loan/ Credit, APL2 85.00 7.5 1053.00 1138.00 07/01/2003 06/30/2007 Government of Senegal Loan/ Credit __ AP-l3 75.00 5.5 1290.00 1365.00 07/01/2007 06/30/2010 Goverment of Senegal Loan/ Credit __ _ _ APL 4 Loan! Credit __ _ _ _ __ _ _ _ _ _ _ _ Total 210.00 ____13219.00 3429.00 Project Financing Data C Loan [Z Credit O Grant El Guarantee D Other (Specify) For Loans/Credits/Others: Amount (US$m): 50.0 Proposed Terms: Standard Credit Grace period (years): 10 Years to maturity: 40 Commitment fee: Standard Service charge: 0.75% financing Plan: Source Local Foign Total Government 670.14 117.86 788.00 IBRD IDA 30.40 19.60 50.00 AGENCE FRANCAISE DE DEVELOPMENT 4.80 7.20 12.00 AFRICAN DEVELOPMENT BANK 6.69 10.03 16.72 CANADIAN INTERNATIONAL DEVELOPMENT AGENCY 8.12 12.18 20.30 FONDS D'AIDE ET DE COOPERATION 0.72 1.08 1.80 ISLAMIC DEVELOPMENT BANK 4.28 6.42 10.70  NORDIC DEVELOPMENT FUND 2.74 4.11 6.85 OPEC FUND 1.56 2.34 3.90 OTHER 6.29 9.44 15.73 Total: 735.74 190.26 926.00 Borrower: GOVERNMENT OF THE REPUBLIC OF SENEGAL Responsible agency: MINISTRY OF EDUCATION Address: 2 Rue Calmette, B.P. 4025, Dakar, Senegal Contact Person: Pape Momar Sow Tel: (221) 821 1376 Fax: (221) 821-13-76 Email: mendpre(sentoo.sn Estimated disbursements ( Bank FYIUS$M): Annual 0.7 9.3 15.5 16.5 8.0| Cumulative 0.7 10025.5 42.0 50.0| Project implementation period: Expected effectiveness date: 06/15/2000 Expected closing date: 12/31/2003 OcAPL PAD Fo.- 2 - -2-  A. Program Purpose and Project Development Objective 1. Program purpose and program phasing: Background and Introduction. The last four years have witnessed a remarkable turnaround in the implementation of economic reforms in Senegal, reversing two decades of poor economic management and lackluster growth performance. The impact of the policy reforms adopted since early 1994 is already evident in terms of reduced fiscal and balance of payments deficits, a return of inflation to pre-devaluation levels, and an average growth rate of 5 percent during the past five years. Senegal's social and economic indicators - poor by the standards of countries with comparable levels of income- have started to improve, reflecting the increased attention and resources the Government is allocating to social development. In addition, the current increase in foreign investment offers a window of opportunity. In spite of these favorable circumstances, Senegal remains one of the poorest countries in the world (estimated per capita GNP for 1998 was US$550), and long-term economic growth is threatened by the low level of education and skills. This is recognized in Senegal, and the government is giving priority to the development of education. Progress is being achieved in terms of enrollment in primary education, education of girls and women, and reforms in higher education. However, the gains are fragile and the sector has been prone to strikes and disruption. Recent modest advances in primary enrollment ratios were achieved through recruitment of contractual volunteer teachers, who now comprise about 25 percent of the teaching force. Higher education reforms implemented in 1995 to economize on student support services and scholarship budgets were partially reversed after a strike by teachers and students during 1997. The Government's strategy for education is to address the above issues, to encourage the involvement of the private sector and NGOs, and to shift decision-making closer to the school level. In 1998 the Government translated its broad goals into a ten-year framework (Programme Decennal de l'Education et de la Formation--PDEF), which sets forth objectives, activities and resource requirements for the sector. This program was prepared by the Government in collaboration with donors, civil society and agencies/institutions in the education sector. During the appraisal of the program in October 1999, Government and donors agreed to commit future funds for the education sector within the context of the PDEF. The proposed program will cover a ten-year period with the goal of moving Senegal's gross primary enrollment from 65% in 1998-99 to 100% in 2008-09, while improving learning levels. Over this period, Senegal's education system will be decentralized. The first three-year phase from 2000-2003 will be organized thematically: (i) to improve quality, (ii) to expand access, and (iii) to decentralize financial and budgetary management. Girls' education issues will be integrated across the range of program interventions. This will be a period to test and reach consensus on reforms dealing with decentralization, privatization of textbook functions, introduction of national languages in the lower levels of schooling, implementation of a school reading strategy, Early Childhood Development, and school health programs. The second phase (2003-2007) will take the various initiatives to scale and help the system move to full enrollment in Grades 1-4. This phase will be managed at the Inspection dA'cademie (IA) (regional) level with significant Inspection Departementale de l'Education Nationale (IDEN) involvement. The third phase (2007-2010) will consolidate the gains of the first two periods and further strengthen local financial and administrative management capacity, while preparing the way for universal middle schooling. The third phase will be managed at the IDEN level (departmental) with LI support. Cost figures given are for the first phase only, unless otherwise specified. - 3 -  2. Project development objective: (see Annex 1) The Quality Education For All (QEFA) Program represents the World Bank's support for the PDEF. Its objective is to ensure that the framework for quality universal basic education is in place, that it is effective and ready for national implementation. The program places an emphasis on changes in teaching and reading linked to student learning outcomes. It deals with all levels of the education system, from pre-school to university, as well as adult literacy, and seeks to put in place sustainable approaches to improving quality and ensuring sufficient numbers of teachers and classrooms. 3. Key performance indicators: (see Annex 1) Program outcome indicators agreed with the Ministry of Education to be achieved between 2000-01 and 2002-03 include the following: Access (i) Percentage of Ministere de l'Education Nationale (MEN) operating budget going to primary schooling to increase from 40% to 44%, with an increased amount for per student expenditures for quality improvement. (ii) Primary school gross enrollment to reach 75% by 2002-03 school year from 65% in 1998/1999 with Grade One admission rate to increase from 68% to 80%; the percentage of girls will increase from 44% to 46% of overall enrollments. (iii) Implementation of a model that will allow the enrollment of 1% of 3- to 5-year-old children in Early Childhood Development (ECD) centers. (iv) Provision of literacy sessions to 120,000 individuals aged 15 through 49, of whom 75% are female. Quality (v) At least 2% annual increase in national student achievement scores compared to existing baseline in French and math for Grade 4. (vi) Reaching a textbook ratio of three books per primary and middle school student. (vii) Grade repetition reduced to a maximum of ten percent annually. (viii) The Vocational Training Fund will disburse at least $150,000 annually. Decentralized management (ix) Implementing a minimum norm of 20 teaching hours per teacher per week at middle and secondary school. (x) The percentage of children enrolled in schools offering a full six-grade cycle increases from 64% to 80%. (xi) Reduction by 25% in the number of classes outside the minimum and maximum class size norms. These indicators were selected based on the availability of relevant data to promote a common approach among donors (including Government). The internal efficiency targets are ambitious given current conditions in Senegal. However, many of the reasons for low internal efficiency, such as incomplete schools, poor physical facilities, inadequate teacher support, and limited community involvement in management of schools, can be improved rapidly by the proposed program interventions. These in turn will help change the attitudes of teachers and parents with respect to repetition and drop-out. -4 -  Program Performance Monitoring will be carried out using a Program Management Reporting (PMR) system to be introduced during the first 12 months of program implementation. This system will link expenditures, outputs, and schedule of implementation, including procurement, for each component at quarterly intervals. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex I) Document number: 17269-SE Date of latest CAS discussion: 01/29/98 The Country Assistance Strategy sets the goals of poverty reduction and economic development, and calls for greater attention to primary education and to the education of girls and women as a means to reach this goal. It also calls for the "active involvement of the private sector and NGOs in education". As a contribution to reaching the CAS goal of "capacity building and developing human resources," the proposed program will support the expansion of basic education services while improving quality. The program will increase access to learning for Senegalese children, including those from the most vulnerable groups and under-served regions. It will also enhance productivity, income and capacity in later life by providing the basis for further education and training. Bringing education closer to parents and the conmuunity means that management skills of local education officials and communities will be upgraded, and that accountability and relevance will be enhanced. By raising educational levels of children and families, the program will improve their quality of life and help decrease child morbidity, child mortality, and fertility rates. 2. Main sector issues and Government strategy: Senegal is seeking to move beyond the period of massive disruption in regular school activities. The Government aims to energize communities by helping them to organize and coordinate their efforts in establishing schools and improving education services. In this changing environment, the Government will need to address the following major issues of the sector: (a) The gross enrollment rate (GER) for primary school increased from 54 % to 65% over the past five years; and for middle and secondary school from 15% to 21%. About I million children are enrolled in primary education (grades 1-6), 175,000 in secondary education (grade 10-12), and about 30,000 students in tertiary education institutions. The gross primary education enrollment rate in Dakar is about 91.5% while the average for the other provinces is 55.4%. The following issues are related to equitable access: (i) There is an inadequate number of school places and they are poorly distributed. This prevents many children from entering into the school system; about 36% of children are enrolled in "incomplete schools" offering five grades or less. (ii) Government is shifting from a centrally-managed teaching force to one that is locally managed. Lower salaries will permit more rapid expansion, but may increase instability. Teacher training programs for EFI graduates and contractual teachers will need to be harmonized. Average pupil-teacher ratios are high--49: 1 in primary school. (iii) Girls are less likely to attend and finish school than boys. In 1997, girls accounted for about 44% of pupils enrolled in primary schools and 25% in secondary. - 5 -  (iv) Only 10% of poor rural populations can read and write. (v) Students with special needs and learning disabilities are largely left out of the system. Gifted children also require special attention. (vi) Private provision of schooling is underdeveloped, with no consistent government strategy for financial and pedagogic support. (b) Low levels of learning continue to constrain the efficiency of the system and limit the number of well-qualified students graduating from each level. Only about 30% and 50% of students pass the grade 6 and grade 9 examinations, respectively. Internal efficiency remains low, as demonstrated by high repetition and dropout rates and low completion rates. The number of learning hours per pupil per year has decreased by about 21% (from 980 to 675 hours) in many primary schools in recent years because of the way double shifts are implemented. Key issues are as follows: (i) expenditures are heavily skewed to higher levels of the system, leaving primary education receiving only 40% of public education resources; (ii) the unit cost of teachers is unsustainably high, thereby crowding out expenditures for inputs such as books, learning materials, teacher supervision and in-service training; (iii) a lack of effective management and accountability systems; (iv) backtracking on higher education reforms; (v) weak research capacity. (c) The centrally-managed system is not capable of efficiently delivering education to the whole country. The Government is therefore decentralizing functions and has made capacity building in strategic planning and management at all levels a national priority. There are four main issues related to the Ministry's institutional capacity: (i) MEN's organizational structure and management system are weak. The central Ministry of Education units, regional and decentralized authorities, schools and communities are not yet ready to fully assume new responsibilities; roles and responsibilities are not clearly defined; (ii) Capacity for information management and planning is still centralized and little expertise has been developed in the regions and collectivities. Decentralized collectivities and individual schools lack the capacity to efficiently collect and use data; (iii) MEN does not have an adequate system of monitoring and evaluation to track the progress of its massive effort to improve education; (iv) The system of financial management needs to be upgraded. Staff at all levels need training in program budgeting, accounting, computerized information systems, and procurement. A training program must be prepared for staff who will be deployed to carry out administrative and financial functions in the regions. -6 -  Government Strategy Government's objectives and strategies for dealing with these issues are set out in four source documents: (a) the orientation plan 1996-200 1; (b) the 10-Year Education and Training Policy Document 1999-2009; (b) the 1999-2009 Master Plan for Investments; (c) the 1997 Review of Public Expenditures; and (d) the series of Regional and Departmental Master Plans for Education. A bibliography of documents is provided in Annex 8. Essentially, these documents set the objective of universal primary enrollment by 2008 and progressive increases in access to middle and secondary schooling, significant improvements in the amount of learning that occurs at all levels of the system including higher education, increased adult literacy, and development of a more market-relevant vocational training program. The strategies proposed for achieving these objectives include: (a) greatly reducing unit costs of teachers by: (i) moving to a contract-based hiring system at all levels; (ii) increasing the number of hours of teaching per week at the middle school, secondary and higher education levels, and the number of effective teaching hours per year at all levels. (iii) training teachers at the middle school level to be able to teach two major disciplinary areas; (iv) reducing the numbers of substitute teachers; (v) redeploying non-teaching staff to the classroom. (b) shifting public financing to primary education, while increasing cost recovery at higher levels of the system and providing incentives for more private sector involvement. (c) creating a ten-year basic education cycle. (d) strengthening partnerships with NGOs, private sector and communities. (e) decentralizing management and pedagogic support. (f) basic education programs for out-of-school adolescents (aged 9 to 15) and adults. (g) improving quality and increasing students' throughput by: (i) a focus on the teaching of reading; (ii) use of national languages as the transition to French; (iii) support for school improvement plans; (iv) a textbook and reading materials' loan program; and (v) individualized education plans and after-shool programs for students with failing grades. -7 -  3. Sector issues to be addressed by the project and strategic choices: This Program addresses issues of access, quality and management. Government has already made many strategic choices linked to these issues, and will need to make additional choices in the coming months and years: (i) local management and recruitment of contract teachers vs. central management within the civil service. Government has already reached agreement with the teachers' unions on a locally managed approach. This option will almost certainly aggravate the risk of teacher strikes and continuing instability; (ii) textbook sales vs. textbook rental vs. free distribution system. Government has decided to drop the current subsidized sales system, which has not proven effective, and to adopt a system whereby books will be free at the primary school level, and rented to students at the secondary level; (iii) in-house vs. delegated responsibility for managing classroom construction. Construction is currently managed by the Direction des Constructions et Equipements Scolaires (DCES), but with difficulty. Government has already decided to delegate construction oversight to Agence d'Ex&cution des Travaux d'Interet Public (AGETIP) and/or other private sector entities, and to create an AGETIP-like construction agency within the MEN in the coming years; (iv) status quo vs. cost recovery at secondary and higher education. This is politically sensitive--the ongoing Higher Education Project has resulted in only modest reforms to date. Government intends to accelerate this process but will need extensive discussions with teachers unions and students; (v) use of French vs. use of national languages in the lower levels of primary schooling; (vi) transfer of responsibilities to local collectivities vs. transfer of management from MEN central offices to L4 and IDEN. Many decisions will be required to complete this process. Functional management information systems and capacity-building will need to be developed to ensure the ability at the local level to plan, budget and implement activities such as construction, maintenance and teacher management. In the context of the QEFA, government, donors and communities have agreed on a program, performance indicators and a process to monitor these indicators. 4. Program description and performance triggers for subsequent loans: The Program approaches Education For All from three complementary perspectives: (i) helping the system build more schools and hire more teachers, (ii) improving quality in such a way that student learning increases, and (iii) improving overall system management, in part through decentralizing most responsibility and authority for service delivery. The first phase of the Program is designed to put the framework for this approach solidly into place. There are 3 performance triggers for each of the follow-up loans linked to these 3 components. For the second phase,which is to be largely managed at the regional level, these are as follows: (i) access: agreement between MEN and local government officials regarding the details of the school mapping exercise, (ii) quality: evaluation of the various pilot testing initiatives conducted during Phase 1, and (iii) management: existence of capacity to manage the education system at the regional level. For the third phase, which is to be largely managed at the departmental level, the triggers are as follows: (i) access: agreement between MEN and local government officials regarding procedures to eliminate disparities in access among regions, departments, towns, urban and rural settings, and boys and girls, (ii) quality: evaluation of initiatives taken to scale during the second phase and related decisions taken for preparing the third phase, and (iii) management: existence of capacity to manage the education system at the departmental level, including the preparation and approval of a sustainable action plan and budget for each IDEN. These triggers are presented in detail, along with evaluation criteria, in Annex 13. -8 -  C. Program and 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 WSeco s % of financing Bank- ____________ (US$ ) Total (US$10L financing 1. Increasing access to education 637.00 68.8 29.60 59.2 2. Improving the quality of education 243.00 26.2 12.75 25.5 3. Strengthening capacity for 45.35 4.9 7.00 14.0 decentralized management 4. PPF 0.65 0.1 0.65 1.3 Total Project Costs 926.00 100.0 50.00 100.0 Total Financing Required 926.00 100.0 50.00 100.0 The components of the entire QEFA program, funded by the Government and donors, are described below. Sub-components that IDA will fund are noted in the summary cost table. (a) To increase access and improve equity in the distribution of school places, the QEFA will support the following sub-components: 1. Basic education-Access. (i) Construction of early childhood development centers. (ii) Construction of primary school classrooms. (iii) Retrofitting of primary schools with latrines and wells, rehabilitation, and maintenance. (iv) Development of neighborhood middle schools. (v) Multigrade teaching strategies. (vi) Special needs education (SNE). 2. Secondary General, Technical and Professional-Access. (i) Construction and rehabilitation of classrooms, and development of small-scale rural secondary schools. (ii) Technical and vocational training. 3. Higher Education-Access. (i) Creation of a network of community colleges (Centre Universitaire Regional -- CUR) (ii) Greater support for private provision of higher education. (b) To improve the quality of education, the QEFA will support: 1. Basic Education-Quality. (i) Early childhood development. -9-  (ii) A school-based small grants program for primary and lower secondary school improvement and staff development. (iii) Dakar peri-urban initiatives. (iv) School/family reading initiatives. (v) Introduction of national languages for initial literacy training and transition to French. (vi) Development of a school-level textbook and reading materials loan program. (vii) Increased student learning capacity through a school-based health and nutrition program. (viii)Providing special needs education. (ix) Special initiatives targeting repetition and dropout. (x) Adult basic education. (xi) Assessment of students' learning. (xii) Development of a unified teacher training strategy. 2. Secondary General, Technical and Professional-Quality. (i) Textbooks. (ii) Science education and technology development. (iii) Vocational training support fund. 3. Higher Education-Quality. (i) Development of a contract-based relationship between the MEN and the university-level Faculties and Institutes. (c) To strengthen the capacity for decentralized management QEFA will support: (i) Personnel management. (ii) Decentralized planning. (iii) Community Participation. (iv) Policy, monitoring and program evaluation. (v) Management of financial flows and physical investment. 2. Key policy and institutional reforms supported by the project: Access to education (a) To ensure the availability of sufficient numbers of new teachers: (i) financing of new primary teachers will be on a contract rather than civil service basis; (ii) all new primary teachers will first serve as volunteer teachers; (iii) a contract teacher career path will provide stability, benefits and promotion criteria, along with the possibility of merit-based entry into the civil service; (iv) teachers will receive an annual packet of minimum supplementary materials. (b) The Government will test a package of measures to bring gender-sensitivity into the mainstream and to increase the participation and achievement of girls in the education system; - 1 0 -  (c) The management of classroom construction will be contracted out to specialized agencies (AGETIP, NGOs, the future construction agency to be developed in the MEN); (d) A low-cost school construction, rehabilitation and maintenance strategy will be introduced to permit construction of durable schools and extend the life of education assets. Quality of education MEN will pursue: (a) With regards to textbooks: (i) support for development of local publishers; (ii) privatization of textbook publishing and distribution; (iii) introduction of universal access to textbooks, with books free of charge for basic education; (iv) a shift from single to multiple titles for each subject area, with decentralized choice; (b) Lengthening of the school year to match international norms; (c) Decrease in number of secondary school courses offered in order to improve quality and focus, and to reduce teacher costs; (d) National languages will be tested as a medium of instruction in lower primary and will serve as a transition to French; (e ) Govermment will provide school inputs such as training for educational personnel for schools built and operated by communities and, as much as possible, for the private sector. Strengthening of decentralized management (a) A new decentralized structure for the management of education will be adopted to increase the involvement of local collectivities, regions, beneficiaries and schools in the management of the system-these partners will take significant responsibility for managing elementary schools; secondary and higher education institutions will become increasingly autonomous and responsible for results; (b) The Departmental Education Plans and the Regional Education Plans will be implemented on a contract basis committing both the MEN and the local collectivities; (c) A financial management system will be developed to support the process of decentralization; (d) A contracting basis for school construction will be introduced between the MEN, the local collectivities and a specialized Contract Management Agency (CMA); (e) Donor procedures for monitoring, financial management and auditing will be harmonized; (f) Greater cost recovery will be introduced for secondary and higher education. - 1 1 -  3. Benefits and target population: Basic education provides a high rate of return on investments, particularly for girls, and can contribute to rapid and sustainable economic growth, poverty reduction and increases in productivity and equity. Estimates for Senegal show private rates of return of 14% for primary education, 97% for secondary education, and 134% for higher education. In addition, there are a number of substantial externalities, including greater use of health care facilities--particularly for girls, better nutrition and child care, and lower fertility rates. The various target populations are as follows: pre-school children age five and under, school-aged children, young illiterate adolescents and women between 15 and 49 years of age, the urban and rural poor, teachers, school directors, unemployed high school graduates. The components and activities supported by the program will also be directed to staff and managers of the MEN at the central, regional and local levels; and to schools and decentralized collectivities. 4. Institutional and implementation arrangements: The Ten-Year Education and Training Program (PDEF) will be implemented from 2000 to 2010 within an institutional context transformed by the recent decentralization law. The PDEF will be organized in three phases, using an Adaptable Program Loan (APL). For the first phase of the PDEF, the institutional framework revolves around the MEN, which will hold primary responsibility for program implementation and general coordination of partners. Local governments will be responsible for the application of public funds transferred by the Government, as well as matching funds provided by MEN for maintenance. The local governments will delegate to contract management agencies the authority for school construction vested in them by the Law of 1996. Many services in addition to school construction and rehabilitation will be subcontracted to the private sector and NGOs. The small grants component will help primary, middle and secondary schools develop greater financial management and administrative capacity. For the adult literacy component that will be the follow-up to the Programme Alphabetisation Priorite Femmes (PAPF) project, the Government has decided to continue using AGETIP as the implementing agency. Steering committees. The High Council for Education and Training (Conseil superieur de l 'education et de laformation -- CONSEF) will supervise implementation of the PDEF and, during the first phase, the QEFA program. CONSEF will be chaired by the Minister of Education or, if the Minister so instructs, by the Minister Delegate for Basic Education, and will include MEN directors, the regional inspectors (IA), the departmental inspectors (IDEN), officers of autonomous institutions such as Institut National d'Etudes et d'Action pour le Dejveloppement de l'Education (INEADE) and the universities, and representatives from the Offices of the President and the Prime Minister. There will also be representatives from other ministries, from local collectivities, the private sector, the main NGOs, AGETIP and civil society, e.g. unions and employer representatives, as well as the Federation of Parents' Associations. The CONSEF will meet twice yearly and will invite all development partners to participate in approving annual operating plans and budgets (POBA) for the coming year. Under the authority of the CONSEF to which it will report, the National Coordinating and Monitoring Committee (Comite National pour la Coordination et le Suivi -- CNCS) will provide impetus and leadership to the QEFA program and will coordinate and monitor the program. General coordination of the PDEF program. This will fall to CNCS, which will have the following responsibilities: (a) coordinate the actions of public and private partners at both the central and decentralized levels; (b) assist component managers in implementation; (c) coordinate the preparation of annual operating plans and budgets; (d) ensure that the operating plans and budgets are implemented in accordance with commitments made to development partners (specifically credit agreements) and monitor their implementation based on predetermined performance indicators; and (e) prepare and submit to - 12 -  partners and decision-making bodies progress reports on the program, ensure that timely audit reports are produced and that their recommendations are taken into account, prepare CONSEF sessions and ensure that the operating plans and budgets for the coming year are drafted for the annual CONSEF session to which development partners are invited. The CNCS will be composed of officials from the five line directorates (Direction de l'Alphabegtisation et de l'Education de Base -- DAEB, Direction de l'Education Prescolaire et de l'Enseignement Elementaire -- DEPEE; Direction de l'Enseignement Moyen et Secondaire General -- DEMSG; Direction de l'Enseignement Technique -- DET; Direction de l'Enseignement Sup&rieur -- DES), the three lateral directorates (Direction de la Planification et de la Reforme de l'Education -- DPRE; Direction de l'Administration Generale et de l'Equipement -- DAGE; Direction des Constructions et Equipements Scolaiares -- DCES), INEADE and, on a rotating basis, two lAs and two IDENs. It will meet at least twice monthly and will be chaired by the Director of the DPRE or his designated representative. At the regional and departmental levels, MEN plans to create Regional Coordinating and Monitoring Committees (Comite Regional pour la Coordination et le Suivi -- CRCS) and Departmental Coordinating and Monitoring Committees (Comite Departemental pour la Coordination et le Suivi -- CDCS), chaired respectively by the President of the Regional Council and the Mayor (or the President of the Rural Community). These local bodies charged with coordinating the QEFA program will comprise various stakeholders (MEN, local collectivities, civil society and parents). Responsibility for implementing the components. Responsibility for implementing each of the components of the QEFA program falls to the relevant MEN directorate. Each directorate is accountable for component results, as measured by performance indicators defined in the Manual of Procedures. Given the objectives of universal primary enrollment and of all the reforms planned to ensure quality, the Directorate of Preschool and Elementary Education (DEPEE) will play a key role in the success of the QEFA program. At the same time, given the sector approach adopted by MEN, lateral directorates such as DAGE, DPRE and DCES will play a new and critical role. Lastly, as a result of decentralization, the IA and the IDEN, as well as local governments, will play a central role in implementing the program. Assuring the quality of the PDEF and the QEFA program. The DEPEE plays a central role in defining and monitoring performance norms and factors for the quality sub-components, particularly those that pertain to learning. Assessment of learning is an essential sub-component that makes it possible to measure student achievement attributable to program implementation (particularly the testing of basic education curriculum, the introduction of a school-based reading strategy, national languages and strategies to lower repetition and dropout rates). The purpose of efforts to assess learning is to improve the internal efficiency of each school. In collaboration with INEADE, ENS (Ecole normale superieure) and the sub-component technical team, the DEPEE will set up a monitoring and evaluation mechanism that relies on the direct involvement of the schools, the departments and the regions. The DEPEE is responsible for training, supervision, and consistency of procedures. The strategy will be to empower teachers and the IDENs, through training, to carry out evaluations in classrooms, schools and districts and to develop their own evaluation tools. This strategy will produce local expertise, and data bases at the departmental and school district levels that will feed into a national data bank. Role of the DPRE. The Directorate of Educational Planning and Reform (DPRE) plays a central role in the QEFA program. It will: (a) serve as the CNCS secretariat, including coordination of development partners; (b) define school mapping norms and negotiate these norms with local governments; (c) organize bottom-up, contract-based planning of the PDDEs and PRDEs; (d) set up and operate the information system to be developed during the QEFA program; and (e) coordinate development partners. - 13 -  Bottom-up, contract-based planning of the PDDEs and PRDEs. Allocation of resources for educational development will be governed by the 41 Departmental Educational Development Plans (PDDEs). These will be prepared within the CDCS framework and jointly signed by the IDEN, the mayor of the municipality or municipalities and the presidents of the rural communities within the department. Their signatures will signify the "contractualized" adherence of partners to the Departmental Educational Development Plans. Before they are submitted for signature, the PDDEs will be arbitrated at the regional level and consolidated into ten Regional Educational Development Plans (PRDEs). This arbitration will be based on criteria reflecting, on the one hand, national priorities and, on the other, regional and local priorities. All the criteria will be designed in such a way as to place special emphasis on reducing inequities and disparities (geographic, economic, rural/urban, gender-based). Each PRDE will be signed by the president of the Regional Council and the IA. The ten PRDEs will be consolidated to form, in conjunction with central directorate development plans, the QEFA program. The PDDEs and PRDEs will include detailed school construction plans; they will guide the preparation of annual operating plans and budgets and will also assist local collectivities in preparing their annual budgets. Preparation of the PDDEs and PRDEs for the period 2000-2002 was begun during the PDEF preparatory phase. Successful preparation of the PDDEs and PRDEs for the period 2003-2007 will be one of the triggers for the second IDA credit through the APL. Coordination of development partners. The DPRE, in collaboration with the DEPEE. will be responsible for partner coordination. The French Ministry of Cooperation will handle internal coordination among partners, through the mechanism of regular meetings and information sharing. The partners have made a commitment to strengthen the coordination already initiated under the PDRH2 project and to harmonize their procedures for supporting the QEFA program as much as possible. They have already agreed to the following points: (a) carry out joint supervision missions; (b) annual and midterm reviews will be organized in collaborative fashion by MEN, IDA and other key donors, particularly ADB, CIDA, FAC, AFD, the Nordic Development Fund and KfW; (c) use of a single Manual of General Procedures for the QEFA program that describes common procedures; (d) preparation of joint manuals for specific components; (e) adherence to standard classroom designs and equipment norms defined by MEN; (f) adoption of similar institutional arrangements for the school construction program (IDA, AFD). Financial management, information management and audit - role of theDAGE. Under the QEFA program, the function of the MEN Directorate of General Administration and Equipment (DAGE) is being significantly altered and expanded to allow MEN to monitor the resources and expenditures of the entire education sector. The existing coordinating units for the PDRH and PAES projects will be dissolved and their staff will be absorbed by DAGE and DPRE based on their skills. The computerized financial management system instituted at QEFA start-up will be refined to reflect the new methods of programming that the annual operating plans and budgets (POBA) represent; it will be integrated into the general information system covering the entire educational system; and it will support gradual decentralization of financial management, beginning with pilot regions. The financial management system will be gradually decentralized. During the first phase, the goal will be to reinforce the decentralized management capacity of lAs. During the second phase of the APL, IDEN capacity will be reinforced. During the first phase, financial management of the literacy component will be handled by AGETIP as for Credit 2873-SE (PAPF ). The DAGE will manage this component in the second phase of the APL. General responsibilities of theDAGE: (a) perform education sector budget planning for presentation to the Ministry of the Economy, Finance and Planning (MEFP) and development partners; (b) in collaboration with the DPRE, coordinate the preparation of budgets associated with the annual operating plans (POBA), regardless of the source of financing, the nature of the expenditures (investment or recurrent costs) and the body charged with implementing the expenditures, i.e. including funds earmarked for autonomous - 14 -  institutions such as universities and local collectivities; (c) ensure the initial deposit of funds and monthly replenishments by the DDI from the IDA special account, of the central advance account held by the DAGE and of the regional advance accounts held by the L; (d) ensure the functioning of similar mechanisms for special accounts of other donors; (e) ensure the initial deposit and annual replenishment of Project Accounts from the BCI for financing national counterpart funds for donor-financed projects, including IDA; (f) execute expenditures from the central advance account; (g) oversee expenditures made on the authority of MEN (advance accounts) by the LI and other MEN structures from their own advance accounts; (h) monitor the execution of the investment and operating budgets (with the exception of funds allocated through advance accounts) at the decentralized level, and the execution of expenditures by the DDI from foreign investment credits; (i) monitor expenditures of autonomous institutions such as the universities, the local governments, and the donors; (j) assure the reimbursement of advance accounts from the IDA Special Account held by the Directorate of Debt and Investment (DDJ) and other special accounts; (k) oversee AGETIP management of the second special account for literacy subprojects; (1) maintain and consolidate all QEFA program accounts, including the IDA Special Accounts for all the components, as well as the special accounts of other donors; (m) ensure that all partners adhere to the Manual of Accounting and Financial Procedures; (n) ensure that timely audits are submitted, three months prior to annual reviews; and (o) prepare a quarterly Program Management Report (PMR); and (p) prepare the overall financial report for the QEFA Program (including expenditures of all donors, by component and category), verify its consistency with the initial financial framework for the PDEF, identify gaps and proposed remedies. DAGE responsibility for decentralization. By the end of the QEFA program, the following objectives should be achieved: (a) there will be adequate financial management capacities in place at the LAs/IDENs and schools); (b) the Manual of Procedures will define financial flows, accounting responsibilities and mechanisms for circulating financial information among the DAGE, the MAs and lower levels (IDENs, schools, etc.); (c) the lAs will: (i) coordinate preparation of the education budget at the regional level; (ii) monitor budget implementation; (iii) maintain MEN accounts for all expenditures made at the regional level; (iv) report to the DAGE all the financial information necessary for consolidating QEFA statements and prepare quarterly regional PMRs; (v) help comptrollers conduct annual project audits. Disbursements for local expenses will be made from accounts opened in commercial banks acceptable to IDA at the regional level. Achieving these objectives will be one of the triggers for the second IDA credit through the APL. Management of the school construction program - role of the DCES. The role of the Directorate of School Construction and Equipment (DCES) will reflect the provisions of the decentralization law - which transferred authority for classroom construction to local collectivities. The DCES will: (a) define, in collaboration with the DPRE, minimum standards for school sites, construction, equipment and furniture, as well as technical criteria for school mapping; (b) negotiate memoranda of agreement with the three associations of representatives of local collectivities; adherence to these obligations by the latter will allow MEN to fulfill its responsibility to supply teachers and, when appropriate, financing. In the memoranda of agreement, local governments agree to respect the criteria for school mapping, provide the necessary sites, contribute their financial share of the initial investment and provide financing for regular maintenance of buildings and furniture; (c) help local collectivities assume their new authority over classroom construction by contracting the services of contract management agencies (CMA); (d) help local collectivities monitor construction programs managed by CMAs; (e) monitor implementation of local government commitments related to the financing of maintenance activities; and (f) monitor and evaluate all construction programs in the country, whatever their source of financing, collect and analyze information on the status of tangible property and provide relevant information to the DPRE for planning investments. - 15 -  The CMA with primary responsibility for managing contracts on behalf of local governments in the case of elementary school construction or rehabilitation or secondary school rehabilitation, as well as for managing contracts on behalf of MEN when other educational institutions are concerned, will be AGETIP (construction financed by IDA and AFD). MEN and the local collectivities will sign agreements with this agency, patterned on those used by the Ministry of Health. As per this model, MEN will sign an agreement with AGETIP to manage government financing of school construction (up to 95%) including: (i) the construction program receiving this subsidy and (ii) an agreement template for contract management to be signed by each local collectivity eligible for governement financing. In the agreement template, the local collectivity guarantees to pay at least 5% of the initial financing, as well as the recurrent maintenance costs, and to respect the regulations established in the memorandum of agreement between the MEN and the 3 Associations of Representatives of the local collectivities. MEN intends to create a School Construction Agency and has undertaken a study to define such an agency, whose status and operating methods would be similar to those of the Agency for Road Work being created by the Ministry of Transport. The MEN has indicated its interest in transferring management of school construction programs from AGETIP to the future agency as soon as it becomes operational. IDA has no objection to this proposal, provided that the operating criteria for the new agency are similar to those for AGETIP (operation in line with private sector regulations, competitive recruitment of personnel). Monitoring and evaluation of the QEFA program. MEN will monitor and evaluate the program on the basis of detailed terms of reference for each key unit (generally Divisions) within the ministerial structure (Directorates). The terms of reference were developed during project preparation at the same time that institutional capacity was evaluated. They will provide the basis for the new flow chart of MEN to be adopted when the QEFA program is launched. In addition to general performance indicators for the QEFA program, results-based indicators will be developed for each unit. Together they will form the basis for joint supervision by development partners. Each unit will develop different ways to monitor its components, while the planning unit and the DAGE will gather and analyze statistical, financial and physical data on the rate of program implementation. The new PMR system of financial reports will provide information on results-based indicators such as expenditures, units built and number of teachers trained. The capacity to gather, format, transmit and process the data necessary for monitoring the program will be upgraded at both the central and regional levels. The group of development partners will coordinate and direct the compilation of information held by partners, such as the amount of expenditures made directly by them, and will provide this information to the DAGE so that it will not need to approach each partner individually. A program implementation completion report (ICR) will be prepared within six months after the closing of the IDA credit. MEN will contribute to the ICR with its own program evaluation. MEN will commission special studies on problems that are particularly difficult or specific to certain regions, and on the results of the main changes in the educational system targeted by the QEFA program, such as the costs and financing of education, strategies for upgrading capacities, the strategy for developing technical and vocational education, and improvement of the quality and efficiency of secondary and higher education. The various departments within MEN will be responsible for these studies, to be carried out with the assistance of a consultant if necessary. Independent consultants will also conduct technical audits of the program, starting in the second year, to assess the quality of implementation and make recommendations on ways to improve strategies related to technical issues. Manuals of procedures. A Manual of General Procedures describing the responsibilities of each partner with respect to QEFA program implementation was developed during program preparation. The PAPF Manual of Procedures will be used for the financing of the QEFA literacy component, a follow-up to the - 16 -  PAPF project; and the Manual of Procedures of the University Research Fund (FRU), developed during the PAES project, will be used for all QEFA financing that is a follow-up to PAES. Two other manuals are being developed: the manual for School Projects (IDA, AFD, FAC, CIDA, ADB) and the manual for the Vocational Education Support Fund (IDA, FAC, EU). Approval by IDA of these two latter manuals will be a prerequisite for disbursing funds from the IDA credit for the categories of expenditures involved. The manuals of procedures will be revised if necessary at the joint annual meetings, with the agreement of development partners whose funds are to be managed in accordance with these procedures. D. Project Rationale 1. Project alternatives considered and reasons for rejection: The education sector portfolio in Senegal currently includes a basic education project, a literacy project, and a higher education project. The option of using a separate standard investment project was considered. The advantages of maintaining separate operations (greater focus, less complex coordination among different ministry units and departments) were considered to be outweighed by the advantages of a sector expenditure program (greater scope for needed budget and financial management reform, better linkages between primary and secondary, and between secondary and higher education, more efficient use of procurement-proficient personnel within the ministry, greater potential for donor coordination). Within the context of a sector expenditure program, the APL provides the flexibility needed over the ten-year program, given the uncertainties associated with decentralization and the various pilot initiatives (notably textbooks and national languages). Lending instrument. The lending approach for financing the QEFA is the sector expenditure program. The lending instrument is the Adaptable Program Loan (APL). This instrument has been considered the most appropriate from the beginning of program preparation, given the ten-year time frame and the need for policy and program decisions at several stages well beyond program start-up. A Sector Expenditures Program (SEP) approach will normally require that the policy and investment program covers the entire sector from the start. In this case, although a broad policy framework has been defined for the sector, it was decided that the investment program will be carried out in phases, starting with primary and secondary education, ECD and literacy, to be followed by Vocational and Technical Education (VET) and higher education. Primary education is the highest priority; strategies for investment at that level are well defined and there is common agreement on how to proceed. Options for the other two sub-sectors require more careful reflection, given the choices yet to be made regarding design of training programs, and the roles of the public and private sectors. Discussions are ongoing as to how these issues should be resolved. Donors have agreed to channel their support to the education sector in the context of the PDEF and to agree on revision and further development of the PDEF through joint annual reviews and a mid-term review. - 17 -  2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). SectorIssue Project Latest Supervision Implementation Development Bank-financed Progress (IP) Objective (DO) Quality of basic education: textbooks Human Resource Development S S Project II Higher education quality, efficiency, Higher Education Improvement S S resource allocations Project NGO-led adult literacy Female Literacy Project S S Elementary Education Development Project Other development agencies Literacy CIDA, KfW, AfDB Access to basic and secondary CIDA, AFD, JICA, OPEC, education AfDB, IDB, KfW, Saoudi Arabia, NGOs Quality of basic and secondary FAC, CIDA education Textbooks and Special Education NDF, KfW Vocational Training EU, CIDA, FAC IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: (a) Textbooks: The sales-based approach used in the past leaves too many children without textbooks, particularly the poor. The absence of books, in turn, leads teachers to rely on rote memory approaches, copying, lower order learning styles. Further the absence of choice leads to mediocre books and diminished local sense of responsibility for student learning outcomes. Past experience has also shown the importance of a clear technical support role for INEADE, with the elementary and secondary directorates given full authority for ensuring that the books and the book distribution system meet.the students' needs. This component is designed to ensure that all children receive books, that schools have the power of choice to ensure that the books chosen fit their overall curriculum and learning objectives, that teachers receive sufficient training to be able to develop new ways of individualizing instruction, that INEADE, DEPEE, and DEMSG roles are clearly defined and agreed, and that there be sustainable local capacity for developing textbooks and other learning materials. (b) Construction: The effectiveness of a contracting approach, by which Government will delegate responsibility for managing construction to private sector entities such as AGETIP, has been well demonstrated. Government will then be able to establish norms and standards and to ensure quality control. This program will give support to the construction unit (DCES) in the Ministry of Education in developing such a role. It is important that the philosophy underpinning the development of the proposed construction agency be consistent with this approach. - 18 -  (c) School improvement: If teaching and learning are to improve, the school must be the locus of change, and the system as a whole must be organized in ways that support that change. Under the previous project, the School Development Fund (Fonds de Developpement Scolaire -- FDS) initiative correctly recognized the importance of empowering teachers and school directors, but this was treated as a marginal activity. Insufficient support was provided to teacher teams; insufficient attention was given to exchanges of information based on these teacher-defined activities, and no attempt was made to ensure the long-term impact and sustainability of school-level planning and budgeting. The current program design builds on experiences of the FDS, NGOs such as Paul Gerin-Lajoie Foundation and Action Aid, but it also draws lessons from regional experiences such as the successful PPSE program in Guinea. It seeks to redefine the roles of the inspectorate and the in-service training centers in order to enable them to respond to teacher-driven initiatives, and to prepare the way for decentralization of school improvement and budget management initiatives. . (d) National languages: The research demonstrates clearly that children acquire basic literacy and comprehension skills more easily when classes are taught in their own language, particularly in a context where family and community do not speak the second language. This also facilitates second-language acquisition and community involvement with the life of the school. The program will include a pilot experiment with bilingual education curriculum that is designed to be taken to scale in the second phase of the PDEF. (e) Decentralization: Considerable experience has been gained in recent years from other projects. Key elements incorporated in this program are the need for developing a strong information system, reliable accountability system and for a functional monitoring capacity at all levels of the system. The school improvement (projets d'ecole) initiative will be the key tool used to develop decentralized planning and budget capacity. (f) Sectoral approach: The ongoing Health Sector SIP shows the importance of strengthening existing structures and developing early and genuine donor coordination (including government as the primary donor) on approaches to construction, support for decentralization, agreement on policy issues and priorities. (g) Adult literacy: The effectiveness of the policy to involve the private sector and NGOs in provision of adult literacy courses has been seen in the increasing number and quality of these providers and in the sharply increasing public demand for courses. Phase I of the PDEF will build on the successful strategy of the PAPA (CIDA program) and the PAPF (I995-99) and support the second phase of the National Literacy Program with some management changes aiming at: (i) adjusting the program to the increase in both demand and supply; (ii) integrating post-literacy and functional literacy; (iii) decentralizing program management; (iv) harmonizing donor support through a program approach. Successive phases of the PDEF will shift from a project basis to continuous adult education. The content and goals of the adult literacy program will be revisited in order to give more prominent attention to the skills parents need to support the school achievement of their children as Senegal moves toward universal primary education. - 19 -  4. Indications of borrower commitment and ownership: Government's commitment and ownership has been very strong, as demonstrated by: (a) the process of program preparation by which the ministry has included a range of stakeholders, including local authorities, parents, and teachers; (b) the preparation of numerous technical documents by teams and commissions set up by the Government; (c) the increasing support given under government budget funds for hiring contract teachers and volunteers, and for building classrooms (financing has been provided for construction of over 1000 primary school classrooms); and (d) Government's decision to prepare the PDEF and to commit to universal primary enrollment. 5. Value added of Bank support in this project: During program preparation, the Bank has been instrumental in three main areas: (a) technical advice on education, financing and management issues, (b) strategic advice for mobilizing donor support and facilitating consensus, and (c) providing a predictable and flexible source of funds to ensure that the core program will be financed while other donors firm up their contribution to QEFA. The Bank has also produced background documents to support the MEN's analysis of constraints and alternative solutions (including cost-benefit and effectiveness analyses, and an education sector expenditure review). The team working for the Bank on Senegal education issues represents a range of technical and disciplinary backgrounds and has been associated with successful implementation of education reform in the region, including teacher financing, textbook rental and use, curriculum enrichment and school improvement initiatives, low-cost primary school construction, gender equity, adult literacy, and school health, etc. During program implementation, the Bank will fund key elements of the core program and will provide technical advice in program implementation. E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Economic (see Annex 4): O Cost benefit NPV=-US$ million; ERR = % (see Annex 4) * Cost effectiveness O Other (specify) Cost-effectiveness. The Government's decision to only hire volontaire and contract teachers, grand-fathering civil servant teachers through attrition and retirement is the single most cost-effective policy that will be implemented under the QEFA. The increasing share of salaries in the recurrent budget over the 1 990s effectively crowded out the capacity to finance inputs such as books, maintenance and supervision needed to ensure education quality. In primary education the expansion of double shifting and the recruitment of "voluntaries" after 1995 have permitted the Government to reduce the unit salary costs per student in real terms and thereby increase the number of teachers and the GER. The ratio between the salary of a volontaire and a certified teacher (enseignant titulaire) is 1 to 5.4 and 1 to 6.8 for teaching a double shift class. By 1998 volontaires teachers accounted for 9% of salary unit cost for primary although they provided about 20% of teachers. Studies carried out during preparation show that teacher status has no bearing on the quality of teaching. The opportunity cost of not following through with this change in recruitment policy under the QEFA would represent on average FCFA 2.3 billion limiting primary GER to less than 80% in 2010. Other approaches which will improve the cost-effectiveness of the program are reducing in half the training period for new teachers to 6 months for primary teachers one year for secondary teachers, and instead of the traditional 1 to 2 years for primary teachers. While detailed economic analysis was not done for the - 20 -  construction program, donors and government have agreed to adopt low-cost construction standards and local governrments will be responsible for maintenance which will prolong the life of school buildings minimizing future rehabilitation and replacement costs. Finally, the policies aiming at improving the quality of education in secondary and middle schools were validated by a study done in preparation which concluded that improving the management of schools, improving the provision of books and increasing the proportion of mandatory hours that teachers taught were the most cost-effective policies. In addition, under the QEFA, a various initiatives will be evaluated for their cost-effectiveness, including early childhood development programs, adult literacy, community schools, national language teaching, various textbook provision schemes and private sector delivery of middle and secondary education services in order to guide future policy decisions. Another potential source of savings is the redeployment of administrative positions filled by non-teaching teachers and supplementary teachers who receive full-time salaries but work only occasionally and other civil servants who erroneously receive teaching benefits. These reforms will result in significant savings of FCFA 3 billion and reduce the net recruitment of teachers by 3000 over the course of QEFA. Although the QEFA covers the entire education system quite comprehensively, the proposed policies for basic education are likely to have the most direct impact upon poverty reduction. Increasing primary education's share of recurrent expenditures to 44% by 2003 coupled with the adoption of a recruitment policy of hiring volontaire and contracted teachers will benefit children in rural areas and from the poorest households, where the GER is the lowest. Using multi-grade schools in rural areas more extensively, targeting school construction to poor areas and the construction of small rural middle schools will respond to factors contributing to low demand for education by poor families. The provision of free textbooks will reverse a policy that deterred in the past children from the lowest quintiles from attending school. Special attention to the needs of educating girls will aim to reduce the gap between girls' and boys' enrollment, drop-out, repetition and completion rates. Partial cost-recovery could have a negative impact on the demand for education, particularly at middle school level. The Government has decided to allow local school associations some say in determining school fees. This issue will be monitored in the first phase and hopefully will lead to a criteria based school subsidy system. A trigger for the second phase will be the development of a adequate fee schedule. Government Expenditures. Detailed projections and a three-year budget integrating recurrent and investment expenditures by level of education and by source of financing for the 10 year program were produced by the Government and are found in the project files. Providing 80% of QEFA resources and with approximately 90% of these resources financing recurrent expenditures, Government plays a deciding role in improving the efficiency and cost-effectiveness of expenditures. With respect to intra-sectoral allocations, the proposed program should improve the quality of public recurrent expenditures. The share allocated to primary will increase to 44% by 2003 (and to 50% by the end of the program in 2010) up from 36% in 1996 due to hiring 2000 new teachers annually and increasing expenditures on other inputs related to improving learning at school level. The share to higher education will decline from 24.9% in 1998 to 20% by 2003 and 18% by 2010, primarily as a result of reducing enrolments (from 27,300 to 23,500) rationalizing staff and limiting scholarship to FCFA 3.5 billion annually. Administrative expenditures will decline from 6% of total recurrent expenditure to 4.2% by 2003 primarily by improving efficiency of headquarters staff and freezing allocations to this function. Regarding the economic composition of government expenditures, wages' declining share (as a result of recruitment policies) to 70% of recurrent expenditures on education will allow for more expenditures on quality inputs - in particular supervision, training and other pedagogic materials. - 21 -  2. Financial (see Annex 5): NPV=US$ million; FRR = % (see Annex 4) Fiscal Impact: The persistence of inefficiencies in sector expenditure management has greatly influenced Governrment's decision to not increase education's share of public resources. Nevertheless, it is committed to providing 33% of its national budget and 8% of the investment budget for the QEFA. Resource projections for the education sector based on assumptions (on an annual basis) that GDP (and household's incomes) will grow at 5%, GDP deflator at 2%, population at 3%, household expenditures on education will increase from 0.8% to 2% of household expenditures and local government's expenditure on education will also increase from 5% of local budgets to 10% over the next 10 years. The total cost of the first phase of QEFA is estimated to be US$926 million; of which 69% is for increasing access, 26% for improving the quality of education and 5% is allocated for improving the management of the system and rendering it more decentralized. Government is the largest financier of the education sector, providing 79.7% of total resources followed by donors with 15%, households and local governments with 4% and 1.3% respectively. Donors will finance 62.3% of all investment expenditures; 95% of external financing needs have been identified at the time of negotiations. Central and local government will provide 37.5% of investment resources, mainly for construction services and counterpart financing. For recurrent expenditures, donors and households will each provide about 4% of recurrent expenditures for training, services and materials. Household participation represents fees which will be used to finance quality inputs at the post-primary levels. Central government is the main source of financing for recurrent expenditures, financing 90.1% of expenditures - mainly for salaries and other operating costs. 3. Technical: The sector faces three key technical challenges. First, it must quickly develop the capacity to identify and respond to lack of demand for schooling among various marginalized groups. A well-functioning EMIS is a necessary if not sufficient condition to this effect. The active engagement of each IDEN-level education team will be crucial to success in this area. The Special Needs Initiative should help sensitize personnel at all levels of the system to the existence of marginalized groups and to the collective responsibility for finding ways to respond. A second technical challenge will be to develop a viable model for school improvement, that leads to a consensus regarding purpose of schooling, content, relevance. These issues will be informed by the school projects initiative, as well as the pilot experimentation in the areas of reading, textbooks and national languages. A third central technical issue has to do with the decentralized management of schooling. Local authorities and school officials will require support in helping to ensure that the move to decentralization leads to faster response times and greater sensitivity to supply and demand issues. The government's Statement of Education Sector Policy recognizes these issues and makes important moves away from the strictly supply-oriented policies of the past. The education team working on QEFA agrees with government that the learning process built into the APL should significantly advance technical standards in the sector. The pilot program, along with the school projects, will require careful monitoring and evaluation in order to create the feedback loops that will lead to stronger technical performance on a sustainable basis. - 22 -  4. Institutional: The Ministry of National Education (AMEN) will be the executing agency for the Quality Education for All (QEFA) program, except for its adult literacy component, for which, at MEN's request, the executing agency will remain A GETIP, in continuation of the PAPF project. For all the other components, the DAGE will be responsible for financial execution and procurement. Each directorate will be responsible for executing its own component, while the DPRE will play a special part in overall coordination and the DCES will be central with respect to the construction program. An evaluation of MEN's institutional ability to carry out QEFA was conducted by MEN during project preparation. The process included a self-assessment by each responsible unit, followed by group sessions organized by the DPRE and DAGE. The DAGE also carried out an evaluation of capacity with respect to procurement by using the model questionnaire supplied by the World Bank. World Bank missions have played a catalytic and critical role in this process, which has helped the national team to identify strongly with the QEFA program. The breakdown of evaluation outcomes is provided in Annex 12. The conclusions of the evaluation of institutional capacities may be summarized as follows: 4.1 Executing agencies: (i) DAGE will be responsible for executing the new mandates described in Chapter C4 with respect to financial management and procurement. These responsibilities imply a radical change in the role of DAGE and therefore call for new institutional skills. Organizationally, the idea is for DAGE to give up its personnel management role, which will be looked after by a new directorate (HRD) to be created specifically for that purpose, in order to be able to focus on its financial management and procurement functions, which in QEFA will be considerably wider than in the past. A new organizational chart has been prepared for DAGE and is due to be approved in 2000. The Directorate is fully capable of providing leadership. It has accumulated considerable experience and has already successfully decentralized the operating budgets of the MEN. In 1997 it directed the public expenditure review. It also has a clear grasp of what is involved in the decentralization of investment program management to be undertaken in QEFA. DAGE human resources, which are of high quality but too few, will be greatly reinforced, on the one hand by the transfer in early 2000 of all the accounting and procurement expertise hitherto located in the two PCUs of the PDRH2 and PAES projects, which are to be disbanded, and, on the other, by additional recruitment of civil servants under a reinforcement plan to be submitted to IDA during negotiations. The transfer of skills from contractual personnel to permanent staff formed part of the terms of reference of the former, and will be accompanied by training courses for the latter. Material resources will be strengthened above all by the transfer to the DA GE of those currently available to the PCU of PDRH2, as well as by the installation of a computerized financial management system connected to the MEN global Information System. The latter will make it possible to monitor all sector expenditure regardless of the sources of funding and it will be designed to keep track of the gradual decentralization of financial management. DAGE working methods will be radically altered to allow: (i) financial management to shift from an administrative to a managerial mode, which requires personnel to be proactive and accountable for delays and results; (ii) systematic use of outsourcing; (iii) systematic dissemination of information on QEFA resources, expenditure, and procurement. These changes in working methods which DAGE wishes to introduce will be sustained by providing special training courses for its staff. (ii) DPRE. The Planning Unit's coordination function has been boosted with regard to programming, monitoring/evaluation, regulation, information, and support for decentralization. These new DPRE mandates, which are described in detail in Chapter C4, imply a considerable strengthening of its capacity, much of which got underway during project preparation. The way the DPRE is currently organized is inadequate and will be replaced by a new organizational chart and the new terms of reference that were devised in the course of project preparation and are due to be approved in early 2000. They are - 23 -  rightly organized around three Departments -- Information, Statistics and Outlook, Education Plans -- and a General Secretariat. In this scheme, SIMEN, the unit responsible for electronic data processing in MEN that today forms part of the Minister's departmental staff, is to be incorporated into DPRE. Leadership: Working with the Director, the current DPRE team provided very effective leadership in 1998 during preparation of QEFA, coordinating the work of all the directorates, the regional and departmental inspectors (IA and IDEN), foreign financial partners, and local collectivities as preparations for regional and departmental plans (PRDE and PDDE) got underway. The team has a clear grasp of the project and of its ow-n mission and its competence is acknowledged by both domestic and external partners. Human resources: Since 1998, about a dozen competent and experienced executives from MEN and other ministries have been seconded to DPRE to prepare QEFA and they constitute a solid core. The human resources development plan devised by DPRE to support QEFA has begun to be executed with: (i) the creation of two budget posts that were recently filled (one for a planner, the other for an economist/statistician) and (ii) the transfer (now taking place) of the PCU of PDRH2's education expert and the PCU of PAES administrator to DPRE. The other staff needed will be obtained by transferring personnel within MEN and/or secondment from other ministries. Training courses in management and planning will be provided to staff that need them. Computer equipment will be installed as well as the global Information System for the education sector. Inspired by work initiated by DPRE in February 1999, this system will be decentralized in order to help the regions and departments prepare a decentralized annual report and complete their own development plans (PRDE and PDDE) and annual operation plans (OP). The information system will cover: (i) school-level data, (ii) student characteristics, (iii) personnel issues, (iv) financial and expenditure data supplied automatically by the DAGE information subsystem, and (v) student learning outcomes. It will also provide data for tracking project-related performance indicators. Gradually declining financial support for project operations is contemplated in the program. DPRE practices have already begun to change as a result of making personnel accountable for results rather than activities. This shift will be reinforced by appropriate training. Even so, it will be necessary to improve dialogue with local collectivities and the private sector through implementation and regular use of contracting-out mechanisms in connection with the PDDE and PRDE. (iii) Local governments (LGs). The LGs have very little ability to fulfill the mandates restored by the decentralization law in the field of education. The project contemplates support for the LGs in the form of information and training, which will complement a plethora of already existing projects financed by numerous donors and designed to support the LGs as examples of decentralization. Given their weak capacity, the idea is for them to delegate their school building contractor functions to one or several contract management agencies (CMAs), receive technical assistance from the DCES, particularly for local construction planning, and evaluate the performance of the CMAs. The contract-based approach expressed in the signing by MEN and the LGs of draft agreements and (PDDE and PRDE) development plans will allow: (i) acceptance of a uniform arrangement for all LGs and (ii) decentralized negotiations, on a case by case basis, regarding the implementation of that arrangement, which should make it possible to avoid the difficulties associated with the marked differences in the technical and financial capacities of individual LGs. The Information System run by DPRE will be organized in such a way as to furnish the LGs with the appropriate data needed for any decisions they need to take. (iv) AGETIP. In the QEFA program, AGETIP plays two distinct roles: on the one hand, it is the Executing Agency for the adult literacy component financed by IDA and, on the other, it is the main contract management agency (CMA) of the local collectivities for the construction, rehabilitation, and equipping of classrooms financed by IDA and CFD. Since these functions are a continuation of the mandates successfully carried out by AGETIP in the PAPF project (as execution agency) and the PDRH2 project (as CMA), the Agency's ability to perform both functions has been evaluated and deemed to be adequate. - 24 -  4.2 Project management: (i) Organization. MEN's organizational chart and directorate manuals were largely obsolete well before preparation of the PDEF/QEFA program got underway. A number of responsibilities were split among numerous decision centers that were themselves poorly defined and coordinated. Development interventions took place in connection with "projects" that were either inconsistent or barely coordinated with other projects in terms of objectives, strategies, or activities. Under the QEFA program, the MEN organizational chart will be redesigned to bring the mandates of the different directorates in line with the program's objectives. It will also accommodate new directorates, such as the Human Resources Directorate. New manuals defining the functions of each directorate will be introduced to reflect the major shifts in functions brought about by: (i) the new objectives and reforms in the QEFA program, (ii) the decentralization law, which transfers a large number of MEN tasks to the local collectivities, (iii) the MEN decentralization process, which transfers a number of central directorate responsibilities to the IA and IDEN, (iv) the delegation of responsibilities to the schools and grassroots school communities and (v) the outsourcing strategy and contracting out of numerous services previously provided by the Administration. These manuals will reflect the new way the sector is to be run, with the Ministry focusing on guidance, coordination, monitoring, and evaluation, while execution functions shall be delegated to the partners in education, particularly the private sector, using a contract-based hiring system. The new sector policy letter (2000-2010) is the instrument used to get the new "program" approach, to which the partners in development also subscribe, off the ground, along with the new outsourcing strategies. (ii) Leadership. Despite the individual qualities of those currently in charge, leadership effectiveness (the management system) in MEN was until recently undermined by the compartmentalization of decision-makers. One of the major outcomes of the PDEF/QEFA preparation process has been the development of a team spirit, which has made it possible to exploit synergies among managers/leaders throughout the central and decentralized education system. As the program gets underway, the group of directors, L4 and IDEN: (i) share a common, clear, and determined approach to the set of reforms to be undertaken, (ii) are fully committed to the new strategies that have been developed, especially decentralization, outsourcing, and privatization, (iii) are gradually eliminating the previous compartmentalization among directorates, (iv) fully accept the change in paradigm implied by decentralization, v) are highly familiar with the Manual of Procedures and Action Plans, and (vi) grasp the need to shift from an administrative to a managerial approach. Generally speaking, the directors and IA possess the necessary academic qualifications, experience, and leadership skills to direct this program. However, with a few exceptions, they still have to improve their ability to delegate responsibilities to their colleagues. The program preparation team will be transformed painlessly, without disruption or major changes, into the National Committee for Coordination and Follow-up. Apart from the ability to delegate, senior MEN officials will also have to learn how to co-manage the educational system with locally elected LG representatives. The participatory, decentralized, and contract-based planning mechanisms developed under the QEFA program since 1998 will serve that purpose, although it will also require specific training in modern management techniques for elected officials and education managers. Such training is contemplated in the program. (iii) Human resources. The major problem to be solved was, and largely still is, the very weak initial capabilities of the professional teams working with the directors. Nevertheless, in the course of program preparation, DPRE has tackled and largely succeeded in raising its human resource capabilities by acquiring the services of an initial nucleus of qualified professionals. Similarly, although to a lesser extent, a core unit of sufficiently qualified professionals has also been formed in DAGE by transferring personnel with the required expertise from the 2 PCUs (PDRH2 and PAES) that are to be gradually disbanded. This initial expertise will suffice to begin program management. DPRE and DAGE human - 25 -  resources will be further strengthened in the course of the program itself in order to allow it to take responsibility for putting in place decentralized management capabilities in the educational system. For all other directorates in MEN, the QEFA program includes implementation of a human resource reinforcement plan, which will be completed prior to negotiations. Some of the professional staff coming from the two PCUs will be redeployed in the various directorates, particularly the PCU administrative support personnel in order to ensure that staff are trained in modern ways of handling files and records. The terms of reference for those in charge will be completed before the Credit enters into force. Use of Technical Assistance (TA) is envisaged whenever necessary, but particular emphasis has been placed on implementing the intemal redeployment process and on training staff in the directorates, in order to make it possible eventually to do without TA. (iv) Material resources. MEN suffers from a chronic shortage of material resources not just because of a lack of funds, but also, and to a large extent, due to weak material resource management. Replacement and upkeep of material purchased have been neglected, leading to widespread deterioration of the already inadequate stock of material resources and a negative impact on the effectiveness of teaching. The need to determine the costs of the QEFA program provided an opportunity to establish the ability to plan and estimate requirements, in terms of both infrastructure and recurrent expenditure. A MEN (DAGE-DPRE) team was successfully trained in the use of the World Bank's Costab software and it prepared the cost estimates for the QEFA program, including all sources of financing. MEN thus had at its disposal a tool for arbitration among components and partners. This approach has strengthened MEN's identification with the program. During execution, the "program" approach will be put to good advantage to establish, for each type of good to be purchased, a consolidated inventory of what there is and what is needed in the sector, together with a transparent distribution of purchases among interested partners, all of which will enable needs to be adequately covered, while avoiding duplication and the risk of duplicated requests for funding. The Procurement Plan that MEN is to submit for negotiation will taken into account all the program's requirements and it will identify all sources of financing. Materials needed to strengthen institutional capabilities will be dealt with under this framework. The PP will be updated during the annual program reviews, to which financial partners are invited. The question of renewal of equipment and infrastructure maintenance has largely been incorporated into the sector financing model developed by the Applied Economics Research Center (Centre de Recherche en Economie Appliquee -- CREA) in order to estimate the long-term sustainability of the PDEF. The Ministry of Finance has provided assurances that it will use the financing framework established by the CREA financing model adopted at the end of QEFA program preparation. School building maintenance is central in the draft agreements between MlEN and local governments (LGs), because they reflect the LGs' newly restored role in this area. Training and an incentive for LGs (in the form of a matching fund) are envisaged in QEFA in order to reverse the previous situation. (v) Practices. Past practice was characterized by numerous ad-hoc interventions, spurred by availability of funds and implemented in a compartmentalized and intermittent fashion by officials who may have been accountable for their activities on an administrative level but who were not -- or only barely - responsible for results. The program preparation process provided an opportunity to radically alter such practices, especially through: (i) the successful development of the program approach, which will be consolidated with the use of the Annual Operation Plans (OP) tool, (ii) the shift from responsibility for activities to responsibility for results, a change that will be consolidated by introducing performance indicators in the OP in order to accustom those in charge to measuring their performance regularly and taking corrective steps where necessary, and (iii) the change in attitude in the education sector directorates (DPRE, DAGE, INEADE), which are gradually developing a "service" approach to the operational directorates, which helps eliminate compartmentalization among the directorates. The Manual of Procedures will help to consolidate a decompartmentalized approach and encourage proactive behavior on - 26 -  the part of the different partners, while clarifying the responsibilities of each of them, the sequences to be followed, their modus-operandi, and the inter-relations between the responsibilities of the different partners. The contracting out of regional and departmental development plans (PDDE and PRDE) between MEN and locally elected representatives, as well as the draft agreements between MEN and associations of locally elected representatives likewise constitute crucial changes in behavior, which facilitate the process of making partners responsible for the results each of them expects from voluntary implementation of a mutually accepted program. 4.3 Procurement issues: A Country Procurement Assessment Review (CPAR) was conducted in July 1994. The findings of this review remain valid. In general, Senegal's procurement laws and regulations do not conflict with IDA guidelines. No special exceptions, permits or licenses need to be specified in Credit documents since Senegal's procurement practices allow IDA procedures to take precedence over any contrary provisions in local regulations. IDA-financed Works and Goods will be purchased in accordance with World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits (January 1995, revised in January and August 1996, September 1997, and January 1999). World Bank's Standard Bidding Documents will be used for all International Competitive Bidding procedure. National Competitive Bidding (NCB) advertised locally would be carried out in accordance with Senegal's procurement laws and regulations, acceptable to IDA provided that: (i) any bidder is given sufficient time to submit bids (four weeks); (ii) bid evaluation and bidder qualifications are clearly specified in the bidding documents; (iii) no preference margin is granted to domestic manufacturers; (iv) eligible foreign firms are not precluded from the competition; and (v) prior to issuing the first call for bids, a draft standard bidding document is submitted to IDA and deemed acceptable by it. The standard bidding document for NCB will be based on the World Bank's Standard Bidding Documents, with appropriate modifications for advertisement of the Invitation For Bids (which may be limited to the major national daily newspaper), the currency of the bid price and payment, applicable laws, etc. IDA-financed Consultant Services will be procured in accordance with the World Bank's Guidelines for the Selection and Employment of Consultants by World bank Borrowers, published in January 1997, revised in September 1997 and January 1999. See detailed information on the procurement arrangements by category of expenditure in Annex 6. 4.4 Financial management issues: The financial management of the program would be centered around DAGE at the central level, the lAs at the regional level and AGETIP for the adult literacy sub component. DAGE would have overall responsibility including:(a) education sector budget planning; (b) coordination with DEPRE of the preparation of budgets associated with the annual operating plans regardless sources of financing, nature of expenditure and body in charge with implementing the expenditures; (c) make initial deposits from Public Treasury resources and advance accounts at the central and decentralized levels; (d) implement the Government's investment budget and recurrent budget (except for funds allocated through advance accounts) at the decentralized levels and expenditures from external investment credits; (e) oversee expenditures made on the authority of MEN (advance accounts) and monitor expenditures made by autonomous entities such as universities, local governments and development partners; (f) reimburse advance accounts from the IDA special accounts held by DDI and other special accounts; (g) oversee AGETIP management of the second special account for literacy education subprojects, (h) maintain and consolidate all QEFA program accounts in accordance with international accounting standards; including the IDA special account for all components, as well as the special accounts of other donors; (i) ensure that all partners adhere to the Manual of Accounting and Financial Procedures; 6) ensure that audits of acceptable detail and scope are performed in a timely fashion and submitted on the specified dates to MEN, MEFP, IDA and other development partners; and (k) prepare quarterly Program Management Reports (PMRs (i) Project Sources and Uses of Funds; (ii)Uses of Funds by Project Activities; (iii) Special Account - 27 -  Statement; (iv) Procurement Process Monitoring (Goods & Works); (v) Procurement Process Monitoring (Consultants' Services); (vi) Contract Expenditure Report (Goods & Works); and (vii) Contract Expenditure Report (Consultants' Services)). AGETIP that will manage the second special account for literacy education subprojects, would have to keep separate accounts for this sub component. Due to the decentralized approach of the program, the 10 L4 located at the regional level are also expected to play a key role in the program's financial management. See Annex 11 for more information on the financial management mechanisms and arrangements. 5. Environmental: Environmental Category: C 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. Schools with inadequate sanitary facilities can have a significant impact on the immediate school environment and nearby water supplies. Under this component, a number of existing schools will be retrofitted with latrines and a latrine maintenance program will be instituted. All new school construction will use methods and materials chosen to minimize negative environmental impact. Sanitation facilities will be built at a number of schools, and these will be sited to avoid contaminating water supplies. Boreholes, etc., will only be drilled after environmental review. The program will also promote environmental awareness through the curriculum and education materials. 5.2 What are the main features of the EMP and are they adequate? Not applicable 5.3 For Category A and B projects, timeline and status of EA: Date of receipt of final draft: Not applicable 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? Not applicable 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? Not applicable 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. Gender. The QEFA will help implement MEN's plan of action for gender initiatives. The 1996/97 national Household Survey found that education for women in rural areas was associated not only with higher household consumption but also with benefits related to the health, nutritional status and schooling of their children. Girls' share of total enrollment in primary, middle school and secondary education is only 47.1%, 40.4% and 37.6% respectively. Repetition rates are significantly higher for girls in every grade and every region. MEN statistics show similar dropout rates for boys and girls, but these will need to be revisited, given the increasing gender disparities observed in higher levels of the system. The DPRE will monitor the gender dimension of all policy and planning initiatives. Regional gender units will monitor such initiatives as providing scholarships for girls, providing safe boarding facilities for female students and incorporating gender issues into the curriculum and teacher training. Of particular concern is the extraordinary gender disparity observed in eastern and southern Africa regarding HIV/AIDS incidence - 28 -  among 15-19 year-olds (80-85% of those infected in this age group are female). Aggressive action including school-based behavior-change programs can help prevent these figures from being repeated in Senegal, which has one of Africa's lowest rates of HIV infection. Vulnerable groups. The program targets activities to rural areas and to under-served regions where the incidence of poverty is substantially above average. Activities specifically emphasize the needs of poorer regions and households. Most of the construction and rehabilitation program will concentrate on rural areas. The decentralization of management responsibility and resources, along with accompanying skills development, will give rural communities greater control. 6.2 Participatory Approach: How are key stakeholders participating in the project? The primary beneficiaries are the children of Senegal. Their perspective has been learned through extensive classroom visits, and results of the national household survey. An incidence analysis was conducted to determine the impact of various initiatives on selected group of children. The PDEF was developed with the participation of a full range of stakeholders including teachers, parents, local communities, development partners, NGOs, and religious organizations. This was achieved through: (a) bringing teachers and staff into the decision-making process, through the various working groups, (b) increasing representation of actors at the regional, local and school levels in the planning process; (c) training school directors to interact more effectively with communities; and (d) holding consultative sessions with civil society. The school grants program provides for ongoing participation of teachers and parents in defining school improvement activities. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? For projects expected to receive authorization to appraise/negotiate (in principle) prior to April 30, 2000, this section may be left blank. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? For projects expected to receive authorization to appraise/negotiate (in principle) prior to April 30, 2000, this section may be left blank. 6.5 How will the project monitor performance in terms of social development outcomes? For projects expected to receive authorization to appraise/negotiate (in principle) prior to April 30, 2000, this section may be left blank. 7. Safeguard Policies 7.1 Do any of the following safeguard policies apply to the project? Po.ic. Appiitability Li Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) El Yes Zi No E Natural habitats (OP 4.04, BP 4.04. GP 4.04) Ci Yes X No C:Forestry (OP 4.36_ GP 4.36) L Yes Li No Pest Management (OP4.09 El Yes _L No ECultural Property (OPN 11.03) EL Yes X No Indigenous Peoples (D 4.20) 1 Yes Zi No El Involuntary Resettlement (OD 4.30) LI Yes Li No Li Safety of Dams (OP 4.37. BP 4.37) Li Yes Li No El Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) El Yes Li No LI Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) L Yes Li No - 29 -  7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. F. Sustainability and Risks 1. Sustainability: Government, the largest financier of the QEFA providing about 80% of total resources, is committed to providing 33% of government recurrent expenditures and 8% of public investment expenditures for the first phase of the education sector program. Donors are providing 15% of resources while other sources of domestic financing will contribute a small but growing share of financing - primarily for operating expenditures. The Government will provide 90% of financing for recurrent expenditures for the program which seems reasonable and sustainable. Implementing successfully the policy reforms related to financing of education will provide the basis for the continued expansion of the system to the poorest sections of society and improving learning in schools. The involvement of beneficiaries in the financing of education at the post-primary will require greater accountability of government to improving the quality and cost-effectiveness of education services and will facilitate the decentralization of decision-making, thereby contributing to the sustainability of the QEFA objectives. 2. Critical Risks (reflecting assumptions in the fourth column of Annex 1): Risk Ratinhg Risk Minimization Measure From Outputs to Objective Insufficient demand for schooling, school M Communications strategy to be developed, improvement initiatives, ECD model. special education programs for marginalized groups. There will be a continued supply of volunteer and contract teachers for new Government will re-deploy under-employed positions. teachers to minimize demand for new teachers. Government increases recurrent M Financial simulations modeling used for wide expenditures to allow expansion in discussions within government, up-front and teacher numbers agreements will be sought on cost recovery measures for higher levels of system. Teachers' unions will continue to agree Extensive up-front discussion and agreements with new recruitment and financing with all teacher unions. provisions. Adequate reporting and financial control M Technical Assistance financial management mechanisms can be put in place in a procedures developed. timely fashion. Stakeholders (including teachers, Communications strategy put in place. directors, and parents) accept and Teachers will prepare individual plans for implement the curriculum reforms. failing students, remedial classes and school grants used and free books used. - 30 -  Government is able to collaborate with S Manual of Procedures developed in private sector and NGOs to develop a collaboration with NGOs. demand-based strategy for vocational training. Post-literacy materials will be available to M School reading corners and other material adults having completed the literacy developed, involvement of parents in school training. management. Textbook choice mechanisms are Communication strategy and training programs accepted . developed. There is not backtracking on measures to H Progress report included in annual expenditure assign responsibility to assign teacher review. management to local entities. Decentralization will move forward as M Communities involved in preparation of annual scheduled in Senegal and budget funds regional budgets in annual reviews. will be available in a timely fashion. Policy makers and implementers M Study program developed and formal discussion incorporate the findings of M& E to at time of annual meeting. adjust QEFA implementation. From Components to Outputs Implementing agencies: (DAGE and M Technical Assistance will be hired to help in DPRE) within MEN quickly master Bank developing financial management information and donor procedures. system and evaluation capacity. Regions and departments have sufficient M QEFA builds planning, budgeting capacity. personnel to prepare implementation of Simulation model has been decentralized and subsequent phases of program. financial management capacity will be strengthened. Donors coordinate inputs. M Reporting protocols will be established and joint annual review meetings. Overall Risk Rating M Extensive ongoing evaluation, communications Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk) 3. Possible Controversial Aspects: (i) The creation by MEN of a school construction agency and MEN's intention to transfer the management of school constructions contracted to AGETIP to this agency is acceptable to IDA as long as the operation criteria of the new agency comply with those of AGETIP (operation in accordance with private sector procedures, competitive recruitment of personnel according to labor market needs). MEN has not specified this plan clearly yet. (ii) Management of the PDEF from within the Ministry instead of PCU. - 31 -  (iii) Increased cost recovery for secondary and higher education. (iv) Use of national languages in lower levels of primary education. G. Main Loan Conditions 1. Effectiveness Condition (a) the Borrower has, in accordance with the provisions of Section II of Schedule 3 to the Development Credit Agreement, appointed an auditor for purposes of Article IV of this Agreement; (b) the Borrower has adopted a Program Implementation Manual, in form and substance acceptable to the Association; (c) MEN has entered into (i) an agreement with the Maitre d 'ouvrage delegue, and (ii) a Protocole d' Accord with the Associations des Elus Locaux, both in form and substance satisfactory to the Association; (d) the Borrower has (i) established a financial management and accounting system, satisfactory to the Association; and (ii) adopted a Financial Procedures Manual, in form and substance acceptable to the Association; (e) the Borrower has completed the procurement plan for the first two years of the Project; (f) the Borrower has approved the POBA for the first year of the Project, in accordance with, and subject to, the provisions of paragraph 6 of Schedule 4 to the Development Credit Agreement; (g) the Subsidiary Agreement has been executed on behalf of the Borrower and AGETIP; and (h) the Borrower has opened the Project Account and deposited therein the amount of the Initial Deposit. 2. Other [classify according to covenant types used in the Legal Agreements.] (a) Submission by the end of the first and third quarters of each year, of a progress report including information on agreed outcome and performance indicators based on data from the program monitoring reporting system. The report will include, a summary statement on the status of implementation of each component, including compliance with project covenants and progress in meeting agreed policy objectives. (b) Submission by December 31, 2001, of a mid-term report showing progress achieved since program effectiveness, and a work program covering the period until project completion. (c) Submission by June 30, 2001, of a policy strategy and work program for privatization of textbook publication and distribution. (d) Submission by December 31, 2000, of an action plan for the improvement of internal efficiency (drop-out, repetition, length of school year and teaching hours). (e) Submission by December 31, 2000, of a methodological guideline and a manual of procedures for school improvement grants to be acceptable to IDA. - 32 -  (f) Submission of a report on maintenance. (g) Annual review of the financial model. (h) Implementation by October 31, 2000 of an action plan to rationalize teachers' management (benefits, etc.) 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. O 1. b) Not applicable. 1 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation. El 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 manual of general procedures and the financial procedures' manual were reviewed at negotiations and will be finalized before credit effectiveness. 1. Compliance with Bank Policies Z 1. This project complies with all applicable Bank policies. L 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Robert S. Prouty JNilas R. Burnett Mahmood A. Ayub Team Leader Sector ManagerlDirector Country Manager/Director - 33 -  Annex 1: Project Design Summary SENEGAL: Quality Education For All Program Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission) Broad-based, equitable Economic growth rate Ministry of Finance annual Increased access to quality economic development and report; Poverty Assessment education will lead to poverty reduction economic development and poverty reduction Program Purpose: End-of-Program Indicators: Program reports: (from Purpose to Goal) To achieve universal basic *10% of 3 to 5 year-old MEN statistical records and eAdequate financing will be education. children will benefit from Program Monitoring available to cover the ECD program (1% by end of Reporting (PMR) increases in recurrent first phase) expenditures for primary education associated with this program .100% gross primary enrollment (75% by end of the first phase) *Girls represent 50% of primary enrollment (46% by end of the first phase) *50% gross middle school enrollment (35% by end of first phase -34 -  Key Pefomiand. Hierarchy of Qbj*ctives Jindicators Monitoring & Ealu.ation Critical Assumptions Project Development Outcome I Impact Project reports: (from Objective to Purpose) Objective: Indicators: The framework for quality *Gross primary enrollment MEN statistical yearbook *The departmental and universal basic education is rate from 65% to 75%, with regional education effective and ready for Grade One admission rate development plans national implementation. going from 68% to 80% and accurately reflect the PDEF, 2nd Phase: UPE Grades 1-4 the percentage of primary and are owned and 3rd Phase: UPE achieved students who are girls from implemented at the 44% to 46%. school/conmmunity level. *1% of children aged 3 to 5 DEPEE student achievement are in ECD centers. report *At least 2% annual increase DEMSG implementation in national student report achievement scores compared to existing baseline in French and math for Gr. 4. *Repetition rate reduced to 10% as a result of program initiatives. *Implementation of 20 hour teaching week as norm for middle and secondary school teachers. *Percentage of students attending primary schools offering a complete six-year cycle increases from 64% to 80%. *Reduction by 25% of the number of classes that fall outside the minimum and maximum norms for class size. - 35 -  Output from each Output Indicators: Project reports: (from Outputs to Objective) component: 1. Communities send their *Creation of one ECD center Site visits, PMR *Growth in demand for children to nearby schools, as by at least 180 communities schooling parallels gross primary enrollment in 5 regions. expansion of school places reaches 75% nationally. 2nd Phase: 90% gross primary *6000 primary school DCES *Households, communities, enrollment. 3rd Phase: 100% classrooms built NGOs and regions support gross primary enrollment locally-driven school *Implementation and DCES improvement initiatives financing of maintenance program by local *ECD model is acceptable to municipalities covering at communities and other least 80% of the 6000 development partners primary school classrooms to be built. *There will be continued supply of volunteer and *1800 primary school DCES contract teachers for new classrooms renovated, wells positions. installed for 570 schools and latrines for 1080 schools *258 middle school IDEN and IA annual reports classrooms built, of which at least 50% are neighborhood middle schools. *Multigrade teacher training DCES modules designed and implemented in 5 regions. *30 neighborhood secondary DCES school classes built and 165 additional secondary school classes renovated. *Demand-driven training PMR programs implemented, with an annual disbursement of $150,000 by the Vocational Training Fund. *Construction of CUR DCES Bambey. -36 -  2. Optimal strategies for *Training of 450 ECD EMIS data, PMR *Government increases improving the quality of monitors. recurrent expenditures to education delivery are tested allow expansion in teacher and ready for implementation * 80% of primary schools in 3 EMIS, PMR numbers. by MEN. 2nd Phase: IA IA have prepared school responsibility for improvement plans, with 400 *Teachers' unions will implementation. 3rd Phase: primary schools having continue to agree with new IDEN responsibility for implemented school recruitment and financing implementation improvement programs provisions. financed through small grants; 80% of middle and *Adequate reporting and secondary schools in 10 IA financial control have prepared school mechanisms can be put in improvement plans, with 150 place in a timely fashion. uniddle and secondary schools having implemented *Stakeholders (including school improvement teachers, directors, and programs financed through parents) accept and small grants implement the curriculum reforms *10 schools in each IDEN Site visits have classroom libraries with *Textbook attrition can be at least 20 reading books. minimized by training and subsequent involvement of *80% of children in pilot Site visits parents and teachers in book schools utilize classroom management practices. library resources for reading instruction on a daily basis. *At least 400 classrooms PMR, INEADE reports, covering 6 languages adopt mid-term review curricular plans and materials in national languages. *Each child receives 3 INEADE reports, mid-term *Government is able to textbooks on loan from review collaborate with the private school each year. sector and NGOs to develop a demand-based strategy for vocational training *Deworming program PMR, School Health reports *Post-literacy materials will implemented in all schools. be available to adults having Anti-AIDS, FGM program completed the literacy defined and implemented in training. each IDEN. *Initiate post-literacy Program Coordinator Reports, *School personnel have programs in 10 IDEN. National Literacy Program sufficient knowledge and Report will to lead school improvement process. - 37 -  *A standardized testing cycle INEADE reports *Textbook choice will be implemented for one mechanisms are accepted by level of primary schooling teachers and inspectors, and and one level of secondary teachers change their schooling in 10 IA. teaching style based on the Pedagogical support and availability of books. materials will be provided to teachers based on standardized testing results. *A net increase of 2000 PMR, Annual coordinator *Communities are willing to primary school teachers will reports, mid-term review increase education be recruited annually as expenditures to finance ECD volunteers, with the and primary education and possibility of becoming maintenance activities. contract teachers after 4 years of satisfactory service. Pre-service training will be provided for 2 cohorts of 1250 teachers annually at the EFI. New modules will be introduced into pre-service training at the EFI dealing with multigrade teaching, science teaching using demonstration kits, national languages and reading. 3. National and regional *All 40 IDEN manage PMR, interviews with *Personnel management: administrative entities are able contract teacher personnel department officers, site visits, There is no backtracking on to successfully manage the policies. salary records measures to assign education system. 2nd Phase: responsibility for teacher Regional budget and action management to local plans prepared and serve as entities; acceptable guide to system management. mechanisms can be 3rd Phase: Departmental developed to include civil budget and action plans service teachers in these prepared and serve as guide to arrangements. system management implementation - 38 -  *At least 8 IA prepare PMR, school visits, *Decentralization will move comprehensive action plans beneficiary assessment forward as scheduled in and budgets for recurrent reports, mid-term review, site Senegal, and budget funds and investment expenditures. visits, annual review of the will be available locally in a QEFA conducted by donors timely fashion, and government. *Program for education PMR, annual coordinator *Literacy training can be monitoring and reporting reports effectively linked to (PMR) operational. community development initiatives. *LACI-compliant fnancial PMR, mid-term review *Policymakers and management system is in implementers incorporate the place. findings of M&E efforts to adjust QEFA implementation. - 39 -  - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Project Components I Inputs: (budget for each Project reports: (from Components to Sub-components: component) Outputs) 1. Increasing access $637 million Quarterly reports available *Implementing agencies ( a. ECD centers through PMR; annual DAGE and DPRE) within b. Primary school construction progress reports from MEN quickly master Bank c. Primary school renovation Coordinator; annual audit and donor procedures. and maintenance reports; disbursement data d. Creation of neighborhood *Regions and departments middle schools have sufficient personnel to e. Multigrade teaching prepare for implementation strategies of subsequent phases of f. Special education program. g. Creation of neighborhood secondary schools *Donors coordinate inputs. h. Vocational Training Fund i. Creation of Community College network j. Private higher education 2. Improving Quality $243 million Quarterly reports available a. Early Childhood through PMR; annual Development progress reports from b. School improvement Coordinator; annual audit program of small grants reports; disbursement data c. Periurban initiatives d. School and family reading e. National languages f. Textbooks and reading materials--primary and middle school g. School health and nutrition h. Special education i. Dropout and repetition initiatives j. Adult basic education k. Evaluation of student learning 1. Teacher training m. Textbooks and reading materials--secondary school n. Science and technology o. Vocational training 3. Decentralized Management $46 million Quarterly reports available a. Personnel management through PMR; b. Decentralized planning annual progress reports from c. Community participation Coordinator; annual audit d. Policy, monitoring and reports; disbursement data program evaluation e. Financial management -40 -  Annex 2: Project Description SENEGAL: Quality Education For All Program The principal objective of the Quality Education For All Program (QEFA) is to establish the framework and strategies for reaching universal primary education in Senegal. IDA will fund elements of the QEFA related mainly to primary and secondary education. The emphasis will be to improve how children learn to read and write. The QEFA will also help the Government to develop the investment strategies for other activities, including science education and technical and vocational training. Gender-specific issues: Parents identify lack of latrines and distance from home to school as particular barriers to girls' schooling. The access component is designed to respond to these issues. Girls also have far less access to learning than boys: fewer textbooks, higher dropout rates, less attention from teachers. The quality component, which has sub-components dealing with grade repetition, textbooks, and teacher practices, has been designed to address these issues. Experimentation and analysis throughout the first phase will seek to identify gender-specific issues that may be addressed in subsequent phases. In addition, the use of local languages, which is being introduced in Senegal through this program, has been reported in other countries (Mali, for instance) to improve girls' confidence and participation, and to decrease their repetition rates. It can also be expected that overall improvements in reading skills should have their biggest impact on girls, since their repetition rates are currently much higher than those of boys. Given the overall gender gap in literacy, the adult literacy program specifically targets females. HIV/AIDS specific issues: Even though the prevalence rate of HIV/AIDS is very low in Senegal compared to other countries in the region (1.7% according to UNAIDS), this disease is of great concern within the education sector and will receive close attention throughout the life of this program. Age disparities in sexual relationships appear to put adolescent girls at particular risk. Teachers may also constitute an important vector for spread of the disease. Through this program, ways will be sought to use education sector institutions and resources broadly as a tool to keep the epidemic from spreading. This will be done in part by providing students with pertinent information on STD, HIV/AIDS and by means of a school program that addresses risks related to non-protected practices and encourages open communication. All project components will be considered for their potential to address these issues. By Component: Project Component I - US$637.00 million Increasing Access to Education (IDA US$29.6M; Other including Government US$607.4M) 1. Basic Education-Access Objective. The objective of this component is to increase the coverage and equity of education. It will expand primary and lower secondary school enrollment. An emphasis will be placed on enhancing the participation of girls and boys living in under-served regions, as well as children with special learning needs. Early childhood initiatives and multigrade classroom teaching will also be supported. (i) Construction of Early Childhood Development centers. A protocol will be prepared clarifying the roles of the Ministry of Basic Education and the other ministries in carrying out ECD activities, including those activities to take place at the local level. Support at the central level will focus on establishing policy, norms, and training packages, and targeting IEC to vulnerable groups. At the decentralized level, support will be given to capacity-building for NGOs and other private sector care -41 -  providers in support of ongoing community-driven ECD. The construction of ECD centers will be financed by the communities; IDA financing will be provided for equipment and materials. In Phase 1, this activity will be largely financed by IDA. Phase 1: The institutional framework and operational arrangements will be established. An overall policy and strategies will be defined. Activities proposed within this framework will be tested in at least 5 regions with 180 centers, and this pilot testing will be evaluated. Phase 2: Based on lessons learned from Phase 1, the ECD program will be expanded to all regions in order to implement the system nationwide and reach 5% of children aged 3-5 by the end of the second phase. Phase 3: The national system will be consolidated and expanded in order to reach 10% of children aged 3 -5 by the end of the ten-year program. (ii) Construction of primary school classrooms. The goal of this sub-component is to increase the number of primary and lower secondary places, with a focus on rural areas, and on accessibility for girls. To help meet its goals for greater access, Senegal aims to build about 2000 primary classrooms per year over the next ten years to enroll 100,000 new students per year (during subsequent years, the rhythm of construction will be 1000 - 1500 a year indefinitely to keep pace with population growth and replacement needs). The planning of the construction program will be decentralized and executed jointly by MEN's decentralized entities (IA, IDEN) and others (decentralized collectivities, NGOs). Regional (PRDE) and departmental (PDDE) educational development plans will serve as guidelines for annual budgeting of construction investments. MEN (DCES, DPRE) will establish the norms and criteria for allocating resources for construction in accordance with the school map, taking into account the development of multigrade classrooms. Equity criteria aim at reducing differences among and within regions as well as urban and rural disparities. They also aim to reduce the distance from home to school, which can be a particular obstacle for girls' schooling. A Memorandum of Agreement between MIEN and decentralized collectivities will serve as a sort of contract for implementing the above criteria. Contract management for the construction program will be delegated to a specialized agency; the DCES will ensure quality control. The government, the local collectivities, the private sector and about ten donors (see Table 8 of Annex 12) will finance this sub-component (IDA will finance about 20%). Phase 1: Effective implementation of a Memorandum of Agreement between MEN and the local collectivities; construction of about 6000 primary school classrooms (of which 1000 with IDA financing) and replacement of 600 temporary shelters; reduction of the maximum average difference between regions in terms of classroom/school-age child from 64% in 1998-99 (see Table 9 of Annex 12) to 42% in 2003; creation of a database showing average differences in classroom/school-age child within regions and within departments, and between urban and rural settings, and reduction by one-third of these average differences; creation of a geo-referenced school map leading to reduction by one-third between 2000 and 2003 of the total number of homes located more than 4 km from the nearest school. Phase 2: Construction of about 10,000 classrooms; decentralization of management of the school construction program; reduction of the maximum average difference between regions in terms of classroom/school-age child to 21% in 2007; reduction of the average difference in classroom/school-age child within regions and within departments by 50% between 2003 and 2007; reduction by 50% between 2003 and 2007 of the total number of homes located more than 4 km from the nearest school. Phase 3: Construction of 6,000 classrooms; reduction to 0 of the average difference in classroom/school-age child within regions and within departments; reduction to 0 of the number of homes -42 -  located at more than.4 km from the nearest school. (iii) Retrofitting of primary schools with latrines and wells, rehabilitation, and maintenance. Support will be provided under the project for retrofitting primary schools with latrines and wells and for renovation of run-down classrooms. Management of this program will be handled in a similar fashion to new construction. Efficient maintenance programs will be established for all classrooms and equipment. In Phase 1, this sub-component will be supported, for the most part, by IDA, ADB, and AFD. Phase 1: Under IDA financing, approximately 1,800 classrooms will be rehabilitated, covering about 60% of identified needs; 570 schools will be retrofitted with wells representing 22% of identified need and 1,080 schools will be retrofitted with latrines, representing 46% of identified need. Financed maintenance programs will be tested in 3 regions. Phase 2: Rehabilitation of the remaining 1,200 run-down classrooms; retrofitting with latrines and wells as per identified needs remaining; nationwide implementation of the maintenance system tested during the first phase. Phase 3: Monitoring and improvement of the maintenance system. (iv) Development of neighborhood middle schools. To improve access, a new concept will be introduced: that of the neighborhood middle school. This type of school will be designed to serve a smaller catchment area in low population density zones (which are also the target zones for expansion of multigrade schooling), thus improving access for rural students as well as for girls. Teacher training will be adapted so that teachers can cover a wider range of subject areas, and a range of neighborhood middle school design alternatives will be tested. In Phase 1, ADB, IDB, OPEC and AFD will support this sub-component. Phase 1: Regions and areas will be selected to start the expansion of neighborhood middle schools and to test the new concept. Of a total of 200 middle school classrooms to be built each year, at least 50% will be in neighborhood middle schools. In addition, about 300 run-down middle school classrooms will be rehabilitated. Funded maintenance programs will be established for all classrooms in the regions selected. The private sector is expected to build about 100 classrooms annually. Phase 2: Continuation of the development of neighborhood middle schools to reach a 35% enrollment rate. The maximum difference between regions in terms of enrollment rate will be reduced by one-half from 2003 through 2007 , as will differences within regions and within departments, and between urban and rural settings. Phase 3: Continuation of the development of neighborhood middle schools to reach a 50% enrollment rate and a 0% difference in terms of enrollment rate between regions, among departments within a given region, and between urban and rural settings. (v) Multigrade teaching strategies. A key goal of the PDEF is to eliminate all incomplete primary school cycles. This will require a major effort to expand the use of multigrade classrooms. Current teachers will receive in-service training; a multigrade teaching module will be added to pre-service training courses for new teachers. Additional materials and equipment will be provided for use in multigrade classrooms. In Phase 1, the NDF and IDA will be the main donors supporting this sub-component. Phase 1: Preparation of a multigrade teaching module for pre-service training in the EFIs and for in-service -43 -  training. Implementation of pre-service training in the EEls and in-service training for 1000 teachers, of whom about 250 are already teaching in multigrade settings. Training of IDENs to manage multigrade programs and pilot testing in the following IDENs: Kaffrine (150 schools with incomplete cycles), Tivaouane (99 schools), Mbour (91 schools), Bambey (85 schools) and Diourbel (84 schools). By the end of the first phase, the system for development of multigrade teaching will be tested and evaluated, and the strategy for going to scale nation-wide in the second phase will be prepared and approved. At the end of the phase, the number of children attending schools offering a complete six-year cycle will increase 64% to 75%. Phase 2: Nation-wide implementation of the strategy for expanding multigrade teaching in low population density zones. The number of students attending schools offering a complete six-year cycle will increase from 75% in 2003 to 90% in 2007. Phase 3: The percentage of schools offering a complete cycle will reach 100 % at the end of the Ten-Year Program. (vi) Special Needs Education (SNE) This intervention will provide equipment for the existing Special Needs Education centers to be used as resource centers geared toward integrating children with special needs into regular school programs. It will be further aligned with the small grants program (see below) to provide modest financing in support of schools receiving SNE students. The NDF is the main donor financing this sub-component. Phase 1: Identification of special education needs, strategy, monitoring and evaluation system; testing of the strategy in a pilot program. Phase 2: Implementation of the strategy on a modest scale with reference to lessons learned from the pilot program; monitoring and evaluation. Phase 3: Nationwide implementation of the program, based in part on information obtained through the monitoring and evaluation system. 2. Secondary General, Technical and Professional-Access (i) Construction and rehabilitation of classrooms and development of small-scale rural secondary schools. Expansion of the general secondary level is, for the most part, being reserved for the second and third phases of the program. The objective of the first phase will be to relieve congestion in classrooms of existing schools; to rehabilitate run-down buildings; and to develop an efficient maintenance system. ADB, OPEC, and the Saudi Fund are the key donors for the first phase. Phase 1: For the public sector, the first phase will be limited to construction of 30 new secondary school classrooms and rehabilitation of about 165 classrooms. A new model of small scale rural secondary school will also be developed along the lines of the neighborhood middle school concept. Phase 2: This phase will see the start-up of expansion of secondary education within the constraints imposed by the long term financial framework: construction of about 100 classrooms in the public sector. It is expected that enrollment in the private sector will reach 48% of that of the public sector. Phase 3: The controlled expansion of secondary schooling will continue, reaching an enrollment rate of 15% by the end of the Ten-Year Program. -44 -  (ii) Technical and vocational training. Expansion of technical secondary education and vocational training is reserved for the second and third phases of the program, similar to plans for general secondary education. This is due to the need to develop a new policy for the sub-sector, and to identify strategies and new financing mechanisms before planning an investment program. The new policy will be geared to meeting the needs of the labor market, and to clearly defining Government and private sector roles in terms of comparative benefits. As for general secondary schooling, the development of this sub-sector will require greater participation of the private sector. ADB will provide support for the first phase. Phase 1: Limited development and consolidation of technical training by extension (9 classes) and rehabilitation (19 classes) in existing technical secondary schools; preparation of an investment plan that fits the new policy and strategy (see quality component). Phase 2: Start-up of the implementation of the investment plan prepared during the first phase. Phase 3: Follow-up on the implementation of the investment plan taking into account lessons learned from the monitoring and evaluation mechanism put in place under the quality component. 3. Higher Education-Access Over the first phase of the PDEF, support for increasing access to higher education is being provided largely through the ongoing PAES credit financed by IDA. During subsequent phases of the PDEF, it is expected that such support will be provided within the context of the successor credits to the QEFA. The government's strategy to increase access to higher education includes creation of a network of community colleges (CUR), and greater support for private provision of higher education. Investments in the first phase are financed by the Government, while IDA will finance feasibility studies within the framework of the PAES (Cr. 2872-SE) and will pursue a dialogue on strategies to increase support for the private sector. (i) Creation of a network of community colleges (CUR). Phase 1: The first phase of the PDEF will coincide with the second half of the PAES project during which the extension the Central Library of UCAD and the rehabilitation of the Thies Polytechnic School will be completed. A feasibility study for financing the Bambey community college will be prepared. The construction of this CUR is planned for the first phase of the PDEF. IDA will finance the feasibility study for creation of the community college network. Phase 2 & 3: Construction and equipment of the CURs for several regions, based on results of the feasibility study. (ii) Greater support for private provision of higher education. Phase 1: The role of the private sector in providing increased access to higher education will continue to grow. Over the course of the first phase of the PDEF, Government will implement the recommendations of the national seminar held by MEN in 1999 with private sector participation. It is anticipated that student enrollments in private higher education will increase from 14% in 1999 to 19% in 2003. Phase 2 &3: Follow-up on the dialogue with the private sector for implementing incentives to increased provision of private higher education. It is expected that private higher education will represent about 23% of total enrollment by the end of Phase 2, and that by the end of the PDEF, more than 26% of higher -45 -  education students will be studying in private sector institutions. Project Component 2 - US$243.00 million Improving the quality of schooling (IDA US$12.75M; Other including Government US$230.25M) Objective. The objective of this component is to improve access to learning, particularly for primary and lower secondary education. This is done through a series of innovations, with an emphasis on the teaching of reading, as well as on the conditions, strategies and policies which support learning. 1. Basic Education-Quality Achieving universal primary education requires an improvement in quality and efficiency. Improvements in the quality of teaching and learning will work in favor of UPE by increasing demand for schooling and lowering repetition rates. They will also reduce the dropout that occurs when children take too long to finish primary schooling (a particularly acute problem for girls). The key tool for effecting changes at the classroom level will be a program of school improvement and staff development based on the award of small grants. All QEFA initiatives will be analyzed as a function of their impact on what happens at the school level. (i) Early Childhood Development. Interventions in support of Early Childhood Development (ECD) increase the percentage of children entering primary school at the appropriate age, as well as subsequent persistence in schooling. Emphasis is given to quality control and ensuring that ECD activities become an integral part of the transition between home and school. Children in particularly vulnerable circumstances, including girls, have until now received less opportunity for this sort of support. This sub-component will support the development of community-driven, scaleable initiatives. A national commission has been created to coordinate these activities. It is managed by the DEPEE, with representatives from the MEN, the Ministry of Health, and the Ministry of Family. This sub-component is financed by the Nordic Development Fund, ADB, and IDA, and could also receive UNICEF support. Phase 1: The first phase of the program will be dedicated to developing and testing models and materials for low-cost activities and programs at the community level, using action research. An integrated approach will be developed to include nutrition, health, cognitive and psycho-social development, as well as family literacy strategies emphasizing the transition to primary schooling. Support at the central level will focus on establishing policy, norms, and training packages, and targeting IEC (Information, Education, Communication) to vulnerable groups. At the decentralized level, support will be given to capacity-building for NGOs and other private sector care providers in support of ongoing community-driven ECD. The new integrated model will be tested in 180 centers to be created. The training of 450 instructors to be hired by communities will be done by the IDENs, who will in turn receive training as preparation for this task. The pilot testing will be evaluated and lessons learned will be incorporated into a separate manual of procedures that will be developed at the end of this phase for use in Phase 2. Phase 2: During this phase, promising ECD initiatives from Phase I will be taken to scale through collaboration with a wide range of actors and development programs (PDDE). The program aims to reach 5% of children aged 3-5 by the end of Phase 2. In addition, linkages between ECD and local collectivities will be strengthened as a part of the government's program to reach universal prirnary enrollment in Phase 3. Phase 3: The third phase of activities will focus on strengthening the sustainability and replicability of -46 -  successful ECD approaches. Given the increasingly decentralized management of the education sector, an increased emphasis will be placed on quality control by the IDENs and on ensuring that ECD activities become an integral part of the transition to primary schooling. It is expected that 10% of children aged 3-5 will be reached by 2010. (ii) A school-based small grants program for primary and lower secondary school improvement and staff development. This initiative will be designed to strengthen the capacity of schools and teachers to implement the pedagogical reforms of the PDEF. One of the key lessons learned from the recent FDS experience is the importance of intensive follow-up, and timely availability of funds at the school level. Annual grants will be allocated to individual schools and managed by a school council composed of the pedagogical team and parents' representatives. NGOs could be recruited to support the procurement and distribution of goods to meet identified school need$. The grants programs may also include training programs for teachers based on training needs expressed by the teachers themselves. The process of developing the school-based small grants program will help to develop a shared understanding of what constitutes a good school and provide a basis for dialogue among all stakeholders (administrators, teachers, parents, pupils, community) on how to improve the quality of teaching, learning and leadership. This process will be the main tool for effecting changes in school-level practices, and will help develop consensus around one key objective: each teacher is responsible for the success of her or his own students. This initiative should help shift the communication and support patterns within the sector, with teachers defining their training and resource needs, and the system reorganizing itself in support of those needs. The overall long-term objective is to gradually give each school an operational capacity for pedagogic management, leading to a transfer to the schools of a portion of the MEN operating budget. The grants program will complement other initiatives supported under the PDEF: the introduction of local languages; the new method of book distribution; implementing a comprehensive school-based reading strategy; decentralizing responsibility for teacher management; teaching methods for multigrade classrooms in rural areas; and teaching methods for large and crowded urban classes. The school improvement projects for secondary schools have the same objectives, with an additional goal of implementing cost recovery as per the PDEF financial framework, and managing these resources. In Phase 1, this sub-component will be supported by, among others, ADB, FAC, AFD, CIDA, and IDA. Phase 1: The goal of the first phase is to: (a) develop a manual of procedures (for use by all participating donors) for a competitive small grants program financing primary school improvement initiatives and staff training; (b) implement the proposed system in three test regions; establish school committees, train IDEN personnel, teachers, and parents' association representatives and inform community members; (c) for the test regions, create and train juries within the IDENs to appraise proposals, and juries within the LMs to take responsibility for final selection; (d) test the system; (e) evaluate the results in comparing the pilot school results with results in control group schools; and (f) draw the appropriate lessons from the testing experience, disseminate the results and develop instruments for the extension of the program in Phase 2. Additional financing as appropriate will be provided within the test region IDENs for an existing small grants program at the lower secondary level. For the secondary school improvement projects, results of cost recovery will also be evaluated. It is expected that by the end of Phase 1, 80% of primary schools within participating IDENs will have submitted school improvement proposals, and that 400 of these will have been financed and implemented. Phase 2: The program will be taken to scale nationally, with program management decentralized to the L4 level. Management training for school-level committees will be extended to all schools. At the end of Phase 2, it is expected that 50% of schools will have succeeded in managing a school improvement project and will become eligible for the sustainable, decentralized financing mechanism to be put in place in Phase 3. - 47 -  Phase 3: Decentralization of budget management to the school level would be extended throughout the system. (iii) Dakar peri-urban initiatives. With more than 75% of students in double shift classrooms (CDF) in the Dakar area, it is obvious that all strategies to improve quality and efficiency must take into account the special needs of double shift classrooms. These areas continue to grow and teaching conditions continue to worsen, justifying a construction and support program aiming at relieving congestion and improving quality, in part by reducing the number of students per classroom. The social impact of such an intervention is important in terms of urban development, social stability, economic development and the reduction of poverty. AFD will support this sub-component. Phase 1: A strategy and feasibility study, definition of norms, preparation of standardized models for construction, school mapping criteria adapted to densely populated urban settings. Implementation of a construction program and related support. Phase 2 & 3: Implementation and evaluation. (iv) School/family reading initiatives. The importance of reading for meaning is well recognized as a key to reinforcing literacy and numeracy skills, "learning to learn", problem solving and teaching social skills. The development of reading ability is also a long process of indirect preparation within which the early childhood environment is crucial. Children in impoverished, illiterate settings are at a disadvantage when entering first grade. They are schooled in French, a language over which they have no oral control. Reading also involves learning concepts about print, which most children only confront when they enter formal schooling. This sub-component will help to improve students' reading and understanding skills (in contrast to mechanical reading skills) by supporting three complementary elements: (i) a relevant reading curriculum that reinforces reading through all subject areas; (ii) schools and teachers capable of delivering an appropriate curriculum in a multilingual context (e.g. relevant book- and story-based teaching and reading practices); and (iii) school and home environments that provide mutually reinforcing reading opportunities for children, teachers and families. This initiative will support an active reading materials development program which produces books and reading materials for primary school children in both French and local languages to enrich the reading curriculum. Issues regarding the content, readability of books and reading materials, pedagogy and the language of instruction will all be addressed. The program will include indigenous material which will be more accessible to children in poor and disadvantaged areas. National authors will be identified and books with locally relevant content developed. An inventory of relevant existing materials will also be established. These will be adapted and used to develop high quality curriculum materials. Local publishers will be encouraged to publish Africa-centered texts reflecting the experience of local communities with which children and their families can identify. In this way, the program will provide reading materials to audiences beyond those in the classroom thereby reinforcing the reading environment. The NDF and IDA will provide support to Phase 1 of this sub-component. Phase 1: The initiative will be tested during this phase in a limited number of schools: a small collection of 20-30 reading books, some of them in local languages, will be purchased by the MIEN and made available in primary classrooms in 10-15 schools in all of the 41 IDENs. Teacher training will be provided to teachers in the test schools, focusing on book-based and story-based teaching practices, to support reading in school each day using multiple approaches: shared reading; guided silent reading and writing; and peer tutoring or paired reading. Pupils will be encouraged to check out books from the classroom collection, read them at home and report the story to the class. This will be part of an initiative to help teachers individualize instruction. The criteria for evaluating this experience will be elaborated, and the pilot test - 48 -  will be assessed by comparing results of students in control group schools. The NDF and IDA will finance the development and implementation of the reading strategy. Phase 2: The evaluation of the pilot testing will be disseminated and, on this basis, each IDEN will develop an action plan for taking the school reading initiative to scale, with all primary school classrooms to participate in the approach. Methods for increasing the involvement of parents and communities will be explored and the proposals developed will be evaluated for implementation in the third phase. Phase 3: The reading program will be extended to include a parental/family literacy initiative. (v) Introduction of national languages for initial literacy training and transition to French. The program supports the introduction of teaching and learning in the mother tongue (national languages) in the early grades of primary schooling to facilitate learning in general and the transition to French. This will be done on an experimental basis in selected schools. The curriculum, materials and instructional time will be revised accordingly. Curriculum revision will support the development of textbooks in local languages. This will involve greater participation of teachers and representatives of civil society such as parents, NGOs, and religious organizations. The new curriculum will be developed in three key subject areas (reading, math, and science) at the rate of one grade level per year. Curriculum development will take into account a strategy for shifting from the mother tongue of the child to the use of French over a period of three to four years. Experience elsewhere has shown that such programs can significantly reduce grade repetition in the early years of schooling and improve overall learning of basic skills. This approach will be complemented by the development of textbooks and reading materials in local languages, along with a training program for teachers that emphasizes individualized, child-centered approaches. This sub-component will carry out pilot activities in phases guided by the national literacy program, which has successfully implemented, since 1995, adult literacy programs in six languages: Joola, Mandinka, Pulaar, Sereer, Soninke, and Wolof. A strong evaluation component will be built into this program, in order to allow quick learning and flexibility in developing a sustainable strategy to go to scale nationally. In the first phase, the NDF, CIDA, and IDA will support this sub-component. Phase 1: A pilot program will begin in the six languages for some 400 classrooms. The breakdown by IDEN and by language will be determined by DPRE and DEPEE on the basis of a linguistic survey and teacher availability, following a national orientation seminar. At the same time, similar experiences from other countries will be studied and the results and findings will be used as inputs for this sub-component. The sequence of developing the new curriculum one grade level per year will allow development of the curriculum for the first three grade levels in the first phase, and to evaluate implementation in the pilot schools for the first two grade levels. The teacher training program will be prepared and implemented following the same sequence. During the period in which the curriculum is being prepared, the preparation teams will compile a set of existing teaching/learning materials (from Senegal and elsewhere) in the target languages, and will prepare provisional materials. These will be duplicated on a small scale and will be used during the test period in the pilot schools prior to the production of textbooks (see paragraph (vi) below). The pilot testing will be evaluated at the end of Phase I by comparing results in pilot schools with those in control group schools. Phase 2: Based on the results of first-phase evaluation, the practical steps to take the program to national scale will be prepared. The curriculum will be developed for Grades 4 and above, and the curriculum will be reviewed for overall coherency. The program will be extended to the other schools countrywide for Grades I and 2, along with the procurement of new textbooks (see para. (vi) above). At the same time, the curriculum for Grades 3 and above will continue to be introduced and tested in the pilot schools. Evaluation of the effectiveness of mother tongue instruction in promoting learning will be carried out for -49 -  Grades 3 and above following the previously used methodology. For Grades I and 2, the methodology will be adapted to the expansion strategy. Phase 3: Continued scaling up to the national level of curriculum tested in Phase 2, as new textbooks are produced and made available. Development of supplemental materials and in-service training. Ongoing evaluation. 'vi) Development of a school-level textbook and reading materials loan program. This sub-component aims at improving the availability and use of textbooks and reading materials in primary and middle schools throughout the country. A textbook loan system will be put in place for secondary schooling; books will be free of charge to primary school students. A multiple-title system (several different series per subject area) to enrich the curriculum will be developed. Publishers will be invited to propose textbook series based on curricula and national standards to be developed by INEADE with DEPEE and DEMSG input. The best books will be approved for use by a national commission established for this purpose. Commissions will be established in each IDEN to determine which individual series will be used. The approach should lead to competition that will improve quality, add diversity to the system, and generally improve the curriculum, service delivery and cost-effectiveness. It will also allow INEADE to re-focus on its pedagogic mission. I1NEADE will develop training programs for teachers in the use of the books. The textbook and reading materials loan program is designed to promote subject-specific learning as well as overall demand for reading. NDF, KIW and IDA will support MEN for this sub-component. Phase 1: First, existing books will be reprinted and distributed from the first year of the program. Second, a system of book stock management will be put in place to assure the availability and effective distribution of 3 books per primary and secondary student. Third, the new textbook process will be started: (i) training of INEADE personnel for implementation of the new strategy, (ii) training of teachers, along with information provided to parents, (iii) publishers' associations will be informed, (iv) bidding documents will be prepared for selection of titles (2 or 3 titles per subject area and by grade level) on the basis of an open competition among editors using the curriculum produced under the above sub-component, (v) selection of titles, (vi) acquisition of a small number (about 2000) of sample books, (vii) shipment of the sample series to the IDEN, and training of the IDEN and the teachers regarding the methods to be used for selecting a textbook series from among the several available series, (viii) choice of titles by the IDEN, with consolidation for procurement purposes by the DAGE, and (ix) completion of book orders. The tentative calendar foresees that, during the first phase, the process can be completed up to stage (ix) for Grade 1 books for which the curriculum will be ready one year into the program (see sub-component (v) above). The process will be less advanced for the textbooks at other grade levels because of the time it will take to prepare the new curriculum. During the first phase, book storage warehouses will also be built in the IDEN. Phase 2: Implementation of local choice and multiple title system at the IDEN level, book orders and shipment to the IDENs, distribution to the schools. At the end of Phase 2, it is expected that all of the books for Grades 1-3, based on the new curriculum and the multiple choice system, will be in the schools. Follow-up of the availability and use of books by the students to ensure that the ratio of 3 books per student is respected.. Phase 3: Production and distribution of the new books following the new curriculum and the multiple choice for the upper levels of primary schooling. Follow-up on the availability and use of books by the students. (vii) Increase student learning capacity through a school-based health and nutrition program. - 50 -  Senegal has never had a preventive health program in its schools. There are two strong reasons for developing such a program: (i) students in good health tend to have better rates of attendance and achievement, and (ii) health lessons learned in school can have a substantial impact on later health practices. The program will develop a health education component based on a culture- and age-appropriate life skills curriculum. Particular emphasis will be given to reproductive and sexual health, including FGM. Long-term impact is expected to be greatest for later health practices; this has been shown to be particularly true for women, who are typically responsible for most health decisions in families. This sub-component will support pilot activities to promote such a program by focusing on health and nutrition interventions that are low cost and easy to deliver. In the first phase, this sub-component will be financed by IDA and will be paired with UNICEF activities in this area. Phase 1: This phase will: (i) put in place appropriate institutional arrangements between the Ministries of Education and Health,; (ii) develop a database on school health in order to identify the deficiencies/parasites for students by region; (iii) develop mechanisms for the micronutrient supplement and anti-worming program; (iv) prepare teaching materials and a family education program; (v) develop criteria, mechanisms and evaluation tools for the pilot operation; (vi) choose a region for implementation of the pilot operation; (vii) implement the program in the test region; (viii) evaluate the results of the pilot operation and draw lessons for the following phase. The first phase will also see development of an anti-STD/HIV/AIDS campaign, with particular focus on adolescent girls. Phase 2: Based on lessons from the first phase, the program, the mechanisms and the tools will be adapted for extension of the program into the other 9 regions. Follow-up of the evaluation of the impact of the school health initiative on access and learning quality in the test region and extension to the other 9 regions. Adjustment of the teaching curriculum to incorporate school health. Phase 3: The family education program will be taken to scale, along with development of additional initiatives: malaria, tobacco, etc. Study of the possibility of developing the school health module at the secondary school level for the follow-up ten-year program (after 2010). (viii) Providing Special Needs Education. Children with special learning needs have generally received scant attention in the Senegalese education system. Yet investments in the needs of these children can be among the most cost-effective investments a system can make, helping them to become fully contributing members of society. As Senegal moves toward Universal Primary Enrollment, it has taken the position that it will seek to provide mainstreaming experiences for its special education students to the extent that this is feasible. As such, the program fits well with the pedagogic shift to focus on the basic learning needs of individual students. The strategy will include developing proactive approaches to identifying and providing support for various marginalized groups of children, including those with physical and mental handicaps, as well as students who are exceptionally gifted. In Phase 1, NDF will finance this sub-component. Phase 1: Support will be provided for: (i) a national study including a survey on prevalence and existing resources in this area; (ii) policy and strategy development focusing on the establishment of inclusive models by which children with special needs can be integrated into existing schools; (iii) targeting of a small number of schools with the appropriate characteristics for testing the strategy (demand, resources); (iv) training programs to be provided for teacher trainers, along with an awareness campaign and mainstreaming SNE coordinators; (v) a pilot test of a small grants program to finance "inclusion project" schools; and (vi) equipment for existing SNE centers which will be reoriented to be used as resource centers, geared toward integrating children with special needs into regular school programs. It is expected that the program and the pilot testing will be developed in collaboration with NGO groups, occupational groups in the field of disability, as well as organizations and councils on disability. - 51 -  Phase 2: Gradual expansion of the number of schools preparing "inclusion projects" acceptable for financing; evaluation of implementation of these inclusion projects; dissemination of success stories. Development of specific curriculum modules and modules for pre- and in-service training for teachers, and training of EFI personnel in the teaching of these modules. Phase 3: It is expected that this phase will allow for consolidating the SNE policy program and taking it to scale nationally. (ix) Special initiatives targeting repetition and dropout. Achieving full primary enrollnent will require considerably increased student throughput. This will be helped in part by improvements in quality as outlined above. However, it will also require a change in behavior by teachers and, in the short term at least, after-school and advocacy programs. It is proposed that for each student who fails a year, teachers be asked to develop an individualized education plan that will then be approved by the principal and discussed with the child's parents. The year-round after-school program would involve hands-on learning experiences, one-on-one tutoring, enrichment activities in reading, math and other academic subjects, as well as mentor relationships. Parents would also receive training to be advocates for their children's education, sponsor events, make learning materials, read to children, and teach special interest classes. In addition, a vacation period study program will be established at the community/IDEN level. Students successfully completing this program will be able to go on to the next grade without repeating the year. These initiatives will be complemented and reinforced by other measures including: limiting repetition rates between classes and cycles, establishing learning standards and training teachers in achievement testing. There will be monitoring to assess the impact of after-school tutoring on pupil performance, retention and repetition. IDA will support MEN for this sub-component. Phase 1:. This phase will be devoted to testing the initiative in a very limited number of schools and IDENs. It is planned initially that there be one rural and one urban IDEN. This will involve: (i) developing very simple protocols for each teacher to apply in his class for each student in danger of failing the year; (ii) developing methods to evaluate the pilot testing; (iii) identifying the schools to take part in the pilot test; (iv) training the school directors; (v) in each school, the suggested activities will be carried out by the teachers; (vi) evaluating the results, by comparing pilot schools to control group schools, drawing conclusions and preparing the Phase 2 program. Phase 2: Special initiatives targeting repetitions and drop-outs will be progressively taken to national scale depending on evaluation results. The rate of extension will depend on the type of activity involved. For example, the extension of the remedial program during the vacation period will take advantage of the existence of a dynamic private sector in the urban areas which could play an important support role for the public system. Phase 3: The program will be functioning country-wide by the end of Phase 3. More emphasis will be put on the impact of girls' repetitions and drop-outs. In addition to the continuation of the program described above, a particular emphasis will be put on the integration of these initiatives in certain aspects of special education, targeting the implementation of programs to better individualize teaching and particularly those children who have specific learning problems. (x) Adult basic education. This sub-component supports extension of the national literacy program, aiming to reduce illiteracy rates by 5% per year in the age group 15 to 49 years, of whom 75% should be female. The component follows the government strategy of contracting put in place successfully since 1995 and which consists of relying on private providers for literacy programs (the number of such - 52 -  providers has increased from 80 to 400 between 1995 and 2000). MEN will assure partial financing, steering, coordination and evaluation. The sub-component is designed around two strategic principles: (a) continuation of the existing Female Literacy Project (PAPF), PAPA, PADEN and PAIS until 2001; but (b) from the year 2000, supporting actions that will progressively create a more cohesive program approach and also lead to decentralization of the non-formal sector; both of these should be fully effective by the end of Phase 1. Administrative coordination will be assured by the national Directorate of Literacy and Basic Education (DAEB), and by increasing uniformity in procedures and unit costs, and the use of a common Procedures Manual across the literacy sub-programs, regardless of how they are financed. Since 1995, CIDA, KIW, and IDA have supported the government, which also provides a substantial contribution. These donors, as well as ADB and UNESCO will support the first phase of this sub-component. Phase I: This phase has the objective of following up on activities handled previously under separate projects, by bringing the various literacy programs together with common procedures and a faster implementation rate. The local collectivities will be integrated into the process as institutional partners, while keeping the same general approach by which private sector operators provide the literacy training. This phase will support the strengthening management capacity at deconcentrated and decentralized levels for the eventual transfer of responsibilities from the center. Actions include: (a) in-depth study of the financing mechanism of the PAIS, and a baseline analysis of the entire non-formal education sector; (b) defining modalities for managing funds destined for literacy and other non-formal education programs; (c) refining indicators to monitor and evaluate skills and competencies acquired through literacy programs; (d) financing operations which start up in the year 2000 (6th cohort of the PAPF) and follow the Manual of Procedures for the new integrated program (functional and post-literacy); (e) strengthening the DAEB to achieve a more unified administration based on the faire-faire approach and participatory methodologies; (f) training personnel at decentralized levels of the Ministry in charge of Basic Education, and private service providers; (g) monitoring and evaluating implementation of the program approach across all partners; (h) decentralizing management in the non-formal sector, and (i) defining the role of the new Directorate for the Promotion of National Languages. At the same time, the government programs will, in Phase 1, provide literacy training for 140,000 persons per year (50,000 of whom will be trained with IDA financing). Phase 2: Adjusting approaches and financing in order to eradicate illiteracy by the end of the third phase. Consolidating progress toward the program approach, and articulating policies and priorities for the adult literacy program in relation to the universal primary education goals of the PDEF, particularly in relation to the non-formal community schools (Ecoles Communautaire de Base -- ECB). Phase 3: The literacy training program is expected to evolve towards a program of continuous adult education. Illiteracy would, by the end of this phase, be largely eliminated. (xi) Assessment of students' learning. Two complementary approaches to assessing the performance of schools will be implemented: self-evaluation and external evaluation. First, the self-evaluation is designed to complement the school-based grants program, in that it will enable teachers to appraise their own performance, as well as that of pupils, by providing training in learning assessment. This is a key strategy in building up the teaching profession through in-service teacher training (see following sub-component xii). It will provide school personnel with the internal capacity and know-how to assess the strengths and weaknesses of their teaching program and to adapt schooling practices on that solid foundation. A shared understanding of school performance will provide a basis for dialogue among all stakeholders. Second, the development of capacity for a standardized external evaluation will consist of putting in place a permanent system for assessing educational progress. This will be on an annual sampling basis, looking at various levels of primary and secondary schooling (Grades 4, 6 and 9, for - 53 -  example). The system will build on work done under the PASEC, SNERS and MLA initiatives. A standard assessment system will improve decision-making, promote appropriate interventions that enhance student learning, and foster accountability over educational outputs. In the first phase, this sub-component will be financed largely by IDA. Confemen, UNICEF and UNESCO will continue to finance regional evaluation activities undertaken through the PASEC and the MLA. Phase l: First, the development of the internal evaluation system will begin during the first phase with a pilot program in a limited number of classrooms. The DEPEE will: (i) develop pre-service and in-service training modules, (ii) select the pilot program schools, (iii) train teachers in methods of internal evaluation, and (iv) evaluate the pilot program by measuring changes in classroom practice. Second, as regards standardized external evaluation, the first phase will consist of developing and testing the instruments. To that end, the Ministry of Education will: (i) establish the necessary institutional arrangements among DPRE, INEADE, DEPEE, and DEMSG; (ii) analyze the curricula in reading, writing and math; (iii) develop evaluation instruments for Grades 4 and 9; (iv) experiment with the use of instruments; (v) analyze results and adjust its evaluation instruments; (vi) train teachers and administer Grades 4 and 9 tests to a sample of students; and (vii) analyze the results of the test. Phase 2: First, the system of internal evaluation will be extended to all primary school teachers; this experience will be monitored and evaluated. Second, the standardized assessment of student achievement will be extended to Grade 6. The Ministry of Education will also launch a dissemination strategy of external evaluation results that will target central policy-makers, regional education officers, local elected officials, principals, teachers and parents. Support materials and activities will be developed to address specific pedagogical concerns identified by the evaluation. Phase 3: During phase 3, the assessment system will conduct follow-on evaluations at the same grade levels to appraise the progress experienced in student achievement. (xii) Development of a unified teacher training strategy. This component will develop and implement a unified teacher training strategy in support of the new contract teacher/volunteer recruitment policy. This will include a substantively changed role for the four teacher training schools (EFI) and the ENS in line with changes in curriculum and teacher recruitment policy. Close links between the EFIs and the school improvement program (FDS), as well as pedagogical reform of the ENS (such as polyvalence for middle-school teachers) will be promoted. Pre- and in-service training programs will be developed for teachers, school directors and inspectors with an explicit focus on training in learning assessment. It is expected that this will include distance learning. FAC will continue to provide support for teacher training. IDA will also support the first phase of this component. Phase 1: During the first phase, the operation of EFI will be organized in order to ensure a homogeneous pre-service training for all new teachers. The number of teachers trained in the EFIs will increase from 500 to 2,500 per year, with two cohorts of 1,250 teachers each. Equipment will be installed in the EFIs in support of this program. New pre-service training modules will be developed to take into account the enrollment rate in EFIs, and the new pedagogical dimensions introduced by PDEF (multigrade, school grants, reading initiatives, local languages), and will include practice teaching in the laboratory schools. In this context, the links between the EFIs and their laboratory schools will be evaluated and strengthened as needed. Pre-service training modules for secondary teachers' training (training in science education, polyvalent teachers for neighborhood middle schools) will be developed during the first phase. Policy measures for the new operation of EFIs and ENS will be prepared and adopted prior to the end of the first phase. An in-service teacher training system based on the initiative of teachers for: identifying their training needs, appropriate sources for training and the organization of training will be studied and - 54 -  developed during this phase. A system for evaluating the capacity and performance of the EFIs and the laboratory schools will be designed and implemented. IDA and FAC will support the MEN during this phase. Phase 2: During the second phase, all new teachers will receive pre-service training within EFIs, which will have been readapted for this purpose by the end of the first phase. A feedback mechanism will ensure that the results of the evaluation system put in place for the component (x) above will be used by the EFIs and ENS to correct deficiencies in teachers' performance that can be addressed through pre-service training and/or improved in-service training. The in-service training system will be tested within several regions to ensure that it is flexible, responsive, and teacher-driven. Phase 3: Continuation of the feedback mechanism on pre-service and in-service training based on results provided by the learning assessment system and teachers' self-evaluation. Development of in-service training system on the basis of lessons learned from the test experience with a flexible, responsive, teacher-driven approach. 2. Secondary General, Technical and Professional - Quality (i) Textbooks. A rental system will be established. Textbook choice will be provided for as under the primary school textbook initiative described above. Phase 1: Designing of a loan system, implementation and testing of this system in X regions, auditing and evaluation of the system, readjustment of the system and proposal for expansion. Phase 2 & 3: Development of the system on national scale, evaluation. (ii) Science education and technology development. The implementation of quality science teaching, accessible to all, remains an elusive problem in Senegal. At present, science teaching in Senegal is based on the use of resource centers which are of limited access to most students. This limitation will be even more acute with the development of neighborhood middle schools. It has been agreed that during the first phase of the program, a module based on the use of science kits will be developed and tested in combination with the FAC-financed support to the existing resource centers in order to develop a strategy for reaching all schools. Based on lessons learned in the first phase, implementation of the selected science education delivery mechanism will be scaled during subsequent phases. In addition, the introduction of new computer technologies under the PDRH2 with the WorldLinks program will be consolidated and extended. FAC, ADB and IDA will support this sub-component. Phase 1: Selection of intervention areas for kits strategy, elaboration of teaching modules, provision of kits, training of a group of teachers for testing, and testing in a pilot area to be determined; comparative evaluation of this area with others, lessons learned. Equipment and training of teachers in new technologies for 50% of middle schools. Completion of a study and implementation of an action plan for more intensive use of Internet throughout the country on the basis of wireless third-generation communication technologies using very high frequencies. Phase 2: Development of a national scale strategy if the pilot testing with science kits provides good results, or development of an alternative strategy if it fails. Equipment and training of teachers in new technologies and related teaching methods for 100% of middle schools. Development of pedagogic methods based on use of Internet. Completion of a test of wireless linkages between middle schools and secondary schools and pilot testing of primary schools in the test region. - 55 -  Phase 3: Generalization of the initial science kit strategy if successful or development of an alternative strategy if it fails. Extension and development of teaching methods based on use of Internet. National coverage using third-generation communication technologies. (iii) Vocational and technical education. The first phase of the PDEF will focus on preparation of a revised policy for the sub-sector based on new demand-driven strategies. The purpose is to ensure closer linkages to labor market needs, to move to approaches through which the private sector is in full partnership with the Ministry of Education, and to identify new mechanisms to finance technical and vocational training. Based on lessons learned from the FAC-financed Projet Formation Professionnelle pour l 'Emploi, a small scale training fund will be tested to channel resources in support of needs-based, client-defined training. The second and third phase would be for gradual implementation of the new policy, including an investment program, and a scaling up of mechanisms tested in the first phase. FAC, KJW, the European Union, CIDA, UNDP, and IDA will support this sub-component in Phase 1. Phase 1: A new sectoral policy and strategies will be prepared through a partnership with the private sector. Institutional analyses of the two key MEN directorates dealing with technical and vocational training (DFP and DEI) will lead to a redefinition of their roles. A small Vocational Training Support Fund will be created, with an administrative council consisting of Government, Employers, and Employees. The role of the administrative council and its executive secretariat will be defined in a Manual of Procedures. The manual will also define financial flows, guidelines for submission of training proposals, evaluation criteria, monitoring and implementation procedures, and provisions for dissemination of information. The Vocational Training Support Fund is expected to disburse at least $150,000 annually. The results of the first-phase testing will be incorporated into the evolving sectoral policy. Phase 2: Development of an investment plan on the basis of the new policy and evaluation of the new mechanisms for financing the sub-sector; development of new financing mechanisms on the basis of these findings. Internal and external evaluation of training. Phase 3: Follow-up on the investment plan and internal and external evaluation of training; implementation of remedial measures to correct deficiencies. 3. Higher Education. The program will complement existing support to the ongoing higher education reform (PAES-Cr 2872-SE) by developing contractual approaches between the MEN and the Universities. The purpose of this initiative is to develop more accountability for results at these institutions, and to use these same contracting mechanisms to support the expansion of private higher education institutions. IDA will be the main development partner during phase 1. Phase l: Conceptualization, elaboration and adoption of contractual approach; elaboration of performance indicators representing a commitment by each public or private faculty or institution to achieve specific results, including unit cost objectives per student trained; implementation of a public information system to create transparency and to encourage results-based accountability. Phase 2: Development of "school improvement plans" for each institution on the basis of qualitative objectives within the agreed financial framework. Follow-up on the monitoring and evaluation of the performance of the post-secondary institutions; readjustment of budgets of various institutions in terms of the results. - 56 -  Project Component 3 - US$ 46.00 million Strengthening capacity for decentralized management (IDA US$7.65M; Other including Government US$38.35M) Objective. The main objective of this component is to modernize and strengthen education sector management. It will reinforce MEN's capacity to set policies and guidelines for the sector and improve the education system's capacity for service delivery. (i) Personnel management. This sub-component will support the decentralization of personnel functions, and establish new ways to deliver services. The Ministry will test new processes, procedures and systems during the first years of program implementation. Implementation will be based on review of MENs organizational structure at the central and regional levels. Under this sub-component, the legal framework will be revised to support greater responsibility for education activities at the regional and school levels, including oversight of teachers' career plans and the performance incentive system for teachers, principals, supervisors and technical staff. As the foundation for decentralization, MEN will establish a staff development program to improve the technical capabilities of management, pedagogical, technical and administrative staff. Training and technical assistance will help MEN develop program management capacity within central and regional directorates. Policies for more efficient use of personnel will be elaborated. Shifting responsibilities due to decentralization and deconcentration policies will require a major redeployment of personnel at primary and secondary level. IDA and FAC constitute the key partners for MEN during phase I of this sub-component. Phase 1: MEN will create a Directorate of Human Resources (DRH) for the management of personnel issues currently ensured by DAGE. Primary school teachers' career path will be revised, negotiated with the teachers' unions in order to establish consensus regarding a unified career path for all teachers and to progressively eliminate the current two-track system. 2500 teachers will be recruited each year. Recruitment will be the responsibility of the various regions on the basis of the existing " volunteer" program. 700 non-teaching primary school personnel will be redeployed to teaching positions. The percentage of substitute teachers (19% currently for Dakar) will be reduced by 50%. A similar program will be developed for non-teaching secondary school personnel. MEN policy for the recruitment of middle school and secondary teachers will be finalized taking into account the PDEF financial framework. Management capacity will be reinforced at the IA level to allow the transfer of certain management responsibilities to that level (for example, the management of overtime pay). Phase 2: Based on needs identified during phase 1, additional personnel management functions will be implemented at the regional level at the beginning of the second phase. Phase 3: Based on needs identified during phase 2, certain personnel management functions will be implemented at the departmental level in phase 3. (ii) Decentralized planning. This sub-component will support the new decentralized, bottom-up, contract-based planning process launched in 1998. In each department, an education development plan ( PDDE) is jointly prepared by the IDEN and other local partners (decentralized collectivities and NGOs). These plans are in turn aggregrated at the regional level, where they are turned into regional education development plans (PRDE) on the basis of a regional framework created at the central level by DPRE based on the PDEF financial framework. The PDDE and PRDE will be an integral part of the Integrated Regional Development Plans (PDDI) and PRDI. So that these plans can be developed on the basis of informed decision-making, information provided by the School Information System (see (iv) above) will be - 57 -  analyzed and presented according to the needs of various decision-makers (Ministers, Directors, L4 and Presidents of Regional Councils, IDENs, Mayors and Presidents of Rural Councils, schools and parents' associations). Decisions on resource allocation will be made, at each level, in accordance with the criteria defined by DPRE in order to reduce inter- and intra-regional, urban, peri-urban, rural, and gender inequities. FAC, AFD, CIDA, ADB, and IDA will be, along with UNDP and UNESCO, the main partners of MEN for this sub-component. Phase 1: By the end of 2000, the departmental and regional education development plans for 2000-2003 will be finalized and approved by MEN. The DPRE will prepare resource allocation criteria before the end of 2000. These will serve as criteria for evaluating the education development plans. Implementation of the education development plans at the regional and departmental levels from 2000-2003 will be evaluated at the end of the first phase. Lessons leamed from this evaluation will be used in the preparation of PDDE and PRDE for 2004-2007. The DPRE will: (a) develop and negociate the following with the Ia and the Regional Councils: (i) the methodological framework for preparing the PRDE; (ii) the regional framework derived from the long-term feasibility model developed by MEN with CREA support; and (iii) the arbitration criteria to be used by the regions in order that inequities among departments be reduced as per PDEF goals; (b) develop and negociate with the IDEN and the local collectivities: (I) the methodological framework for preparing the PDDE; (ii) the criteria by which the PDDE will be evaluated and approved by the regions; and (iii) the criteria ensuring that the objectives of each PDDE are based on achieving reductions in inter-depatmental inequities (ruralUurban, male/female); and (c) organize and monitor decentralized planning mechanisms. At the end of the first phase, the PRDE of all 10 regions for 2004-2007 will be submitted to MEN and its development partners. Approval of at least 8 of the 10 PRDE for 2004-2007 is a trigger for the second phase credit. Phase 2: At the end of the second phase, PDDE and PRDE for 2004 and 2007 will be implemented, monitored and evaluated to allow lessons learned to be incorporated in the preparation of PDDE and PRDE for 2007-20 10. At the end of this phase, PDDE for all 41 departments for 2007-2010 will be assessed by the regions according to the predefined criteria. The central MEN departments and the development partners will be invited to observe this process. Approval of at least 33 (80%) of the PDDE for 2007-2010 is a trigger for the thrid phase credit. Phase 3: During the period, 2007-2010, the PDDE and PRDE corresponding to the third phase will be implemented, monitored and evaluated. (iii) Community participation. This sub-component aims at reinforcing MEN's capacity to support increased parental and community participation at central, regional and local levels. It will improve school autonomy and the decentralization of decision-making at the school and local levels to better satisfy the expectations and needs of students and communities. The program will encourage community and school participation by training parents' committees, providing relevant information on schools, and increasing the availability of financial and material resources at the school level. As the program seeks to attract marginalized groups of students, the need for a well-coordinated communications campaign will grow accordingly. This will include mass media approaches, development of a partnership with professional associations of joumalists, advertising campaigns using popular musicians, as well as an IEC campaign to focus on gender issues. This sub-component will be designed to complement activities of the Social Fund (financed by IDA and ABD), and to take advantage of the various means put in place by this fund to inform and mobilize communities in the struggle against poverty. CIDA, FAC, AFD, ADB and IDA will be the main partners of Ministry of Education for this sub-component. Phase 1: During this phase, communication units within communities will be created in all operational - 58 -  directorates and coordinated by a unit within DPRE. These units will be responsible for ensuring that parents and communities receive information on changes in the PDEF to transfer more responsibilities to them. DPRE will be responsible for coordinating information campaigns to ensure that messages are coherent and to establish a partnership with parents and communities. At the end of this phase, all households in Senegal will have a minimum understanding of the PDEF, not only in terms of universal education, girls' education, multigrade teaching, and school grants, but also in terms of school data regarding their own communities. A household survey will measure the impact of the communication system. Phase 2 and 3: Based on the findings of the household survey, the information system will be updated and improved. (iv) Policy, monitoring and program evaluation. This sub-component aims at creating capacity within MEN at the central, regional and local levels to analyze policy issues, and to monitor and evaluate the education program on a yearly basis. Monitoring and outcome indicators (see Annex 1) will allow MEN to measure progress and will form the basis for supervision. Each department involved with implementation will develop instruments for monitoring its respective component, while the Planning Unit and the DPRE, DAGE and DCES will consolidate and analyze statistical, financial, and physical data on the rate of implementation. This sub-component will support the implementation of a computerized, integrated School Information System allowing the collection, treatment and analysis of all data of the sector (demographic, physical, educational and financial) by region, department, local collectivity and urban neighborhood. The new PMR system will provide information on output indicators such as expenditures, new building construction and number of teachers trained. The system will also receive information through the Social Fund about the demand for schooling among poor families, and difficulties encountered by these families in taking advantage of the opportunities for schooling that are offered. FAC and IDA are the key partners of MEN for this subcomponent. Phase 1: At the end of this phase, the information system will be in place, operational in all directorates, IA and IDENs, and the first information flows from the system should be available to serve as baseline data for assessing the progress of the sector at the end of the first phase, as well as to constitute the benchmark data for the 2004-2007 PRDE. The information system will also incorporate information regarding adult literacy and higher education. Annual reviews of the program will be organized; operational plans will be prepared, implemented, and evaluated and corrective policies will be identified and implemented. Indicators will show whether selected performance targets chosen as triggers for the second phase have been achieved. Phase 2: The MEN information system will be consolidated on the basis of lessons learned. It will be further developed along two axes: a vertical axis reaching the secondary schools and a horizontal axis reaching out to other existing information systems for greater ease of information exchange among the following areas: adult literacy, health, social fund, labor market employment, and Ministry of Finance. This will allow production of cross analysis in the social sectors, as well as greater coherence in the struggle to reduce poverty. Phase 3: The information system will be further developed to take advantage of increasing connectivity of various schools and other establishments to the Internet. (v) Management of financial flows and physical investment. This sub-component will support the implementation of a program approach, as well as the decentralization effort by establishing systems of financial management and staff training at all levels. The program will introduce program budgeting for - 59 -  the MEN at the central, regional, local and school levels. DAGE and DPRE will coordinate the preparation, follow-up, and evaluation of Annual Operating Plans and Budgets (POBA) prepared and implemented by IA and MEN directorates in collaboration with local collectivities and other partners. CREA's support to the MEN will allow the monitoring of the fit between budget and implementation of the Program and the financial framework which constitutes the basis of the program's sustainability. The DAGE and DPRE together will then develop a detailed decentralization plan. Each of these departments will be reorganized to be prepared for decentralization; additional personnel will be recruited to the DAGE and existing personnel will be trained in order to develop an audit capacity and to ensure the overall monitoring required for the move to decentralization. Financial personnel will be trained at both the L and the IDEN level. Support will be given for ongoing economic and budgetary analysis, strengthening and decentralizing school mapping processes, developing audit capacity in the regions and prefectures, and for gradual shifting of responsibility for non-salary operating budgets from the center to the decentralized level. The program of small grants (projets d'ecole) described above will be used to develop the capacity for using and accounting for funds at the local level. Phase 1: This phase has two objectives: (a) to reinforce capacity for managing financial and human resources, as well as procurement, at the central level and (b) to develop management capacity at the regional level to pave the way for decentralization of financial and human resource management to this level during the second phase. In support of the first objective, the DAGE will implement its reorganization and capacity building plan to ensure: (i) management of the Annual Operating Plans and Budgets; (ii) management of the Special Accounts (held by the DDI) and the advance accounts; (iii) procurement in order to respect the execution calendars and action plans of each component; (iv) the production of quarterly management reports and the implementation of the LACI system on schedule, and (v) the follow-up of all sectoral expenditures in order to ensure that the PDEF financial framework is respected and to recommend corrective measures in a timely fashion as needed. As regards the second objective, capacity for human resource and financial management will be developed in all IA. The existence of management capacity at the regional level will be one of the performance criteria serving as triggers for Phase 2. Phase 2: This phase of the IDA credit will be managed at the regional level by the IA based on the regional education development plan and the Annual Operating Plans and Budgets. Regional management will be monitored and evaluated, at the same time as IDEN capacities for management during Phase 3 are being developed. By the end of the second phase, the IA will be responsible for most non-salary operating budgets and for payment of contract teachers. The existence of management capacity at the IDEN level will be one of the performance criteria serving as triggers for Phase 3. Phase 3: During this phase, the deconcentration and decentralization process will reach IDEN to which will be transferred most of the non-wage operating budgets. - 60 -  Annex 3: Estimated Project Costs SENEGAL: Quality Education For All Program Local Foreign Total Project Cost By Component US $million US $million US $million 1. Increasing Access to Basic Education 578.00 59.00 637.00 2. Improving the Quality of Schooling 125.14 117.66 242.80 3. Strengthening Capacity for Decentralized Management 31.95 13.60 45.55 4. PPF 0.65 0.00 0.65 Total Baseline Cost 735.74 190.26 926.00 Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00 Total Project Costs 735.74 190.26 926.00 Total Financing Required 735.74 190.26 926.00 Local Foreign Total Projec Cost By Category US Smillion US $rnillion US $million 1. Works 30.00 30.00 60.00 2. Goods 13.28 40.00 53.28 3. Consultant Services 14.49 9.66 24.15 4. Training 32.32 2.10 34.42 5. Grants 23.85 2.65 26.50 6. Operating Costs 621.15 105.85 727.00 7. PPF 0.65 0.00 0.65 Total Project Costs 735.74 190.26 926.00 Total Financing Required 735.74 190.26 926.00 - 61 -  Annex 4: Cost Effectiveness Analysis Summary SENEGAL: Quality Education For All Program Background. This Annex summarizes the economic analysis that was used in the identification, preparation and evaluation of the Senegal Quality Education For All Program (QEFA). The QEFA covers the first three years of a 10 year national education development program. The proposed PDEF/ QEFA is a sector expenditure program which: (i) defines the Government's education sector policy priorities for the next 10 years; (ii) provides the recurrent and investment expenditures for all levels of education in the context of the Government's macroeconomic framework; (iii) clarifies how the investment and recurrent expenditures will be financed between Government, local governments, households and donors in order to attain the Government's policy priorities; (iv) establishes financial and budget performance indicators to monitor the implementation of the program; and (v) involves significant reforms in institutional, organizational and other technical capacities in order to implement the program. Link to Economic and sector work. In developing the PDEF, economic sector work was critical in helping to define sector priorities and costing the program. The process used to define the research program and the fact that local researchers worked closely with policy makers has resulted in a high degree of local ownership and consensus at the technical level and political level on the policy reform package. In the early stages of identification, an inter-ministerial Working Group on Finance and Education was established to define and manage the background economic analysis needed to diagnose how public expenditures were currently being allocated and what expenditure and financing policies would better meet public priorities of attaining universal primary education and improving equity. The studies commissioned comprised: (i) an education expenditure review; (ii) a sector financing study; (iii) a cost-effectiveness analysis of middle and secondary education; (iv) a benefit-incidence analysis of public education expenditures; (v) a demand analysis for primary education and (vi) the development of an expenditure simulation model linking government policy objectives to sector expenditures and providing a framework for estimating the financing plan. The CREA, a local university research institution commissioned to carry out these studies, worked in close collaboration and under the leadership of the DAGE and the Ministry of Finance. The findings of the Public Expenditure Review were critical in identifying sector problems related to efficiency, effectiveness and equity in resources allocation and use. During preparation numerous seminars and technical meetings were held with senior Government officials and other stakeholders to discuss the findings and recommendations of the economic research. During these meetings consensus was reached on a number of important policy issue and decisions concerning (i) the level of Government financing that was consistent with the medium-term macroeconomic framework; (ii) the priorities for Government within the education sector; (iii) increasing the importance of student/household contribution to the financing of secondary and higher education; and (iv) future teacher recruitment on a contractual basis rather than an expansion of the existing civil service system, with teachers hired to teach locally (although paid by the Central Government). The expenditure simulation model was of particular importance in comparing various policy scenarios. During appraisal, the economic analysis concentrated on (i) agreeing on unit costs and estimating the total costs and financing strategies for the various levels of education; (ii) clarifying the mechanisms and procedures for moving to a contracted system of teachers at all levels of instruction; (iii) exploring strategies to implement cost recovery at secondary and higher education; (iv) designing measures to improve management at the local and school level; (v) clarifying and assessing the associated risks; (vi) evaluating the sensitivity of the program to shortfalls in financing; and (vii) defining performance - 62 -  indicators, the content of the annual financial review and the economic analysis that would be carried out during the QEFA. The economic and financial analysis commissioned by the Working Group was complementary to the other studies on: (i) student learning and school effectiveness at the primary level by SNER and CONFIMEN; (ii) constraints to girls schooling by IDS/FAWE; and (iii) an institutional analysis of middle and secondary schools by UNESCO and the French Co-operation. (These documents can all be found in the project files). However, if the reforms are to be successfully implemented and policy objectives achieved, the Government must involve teachers and students more fully in discussion about the nature of reforms and how they are to be implemented. Recent Policy Outcomes. If not in a crisis, the education sector in Senegal is at an important cross-roads. In spite of considerable effort during the 1 990s, indicators of education attainment and learning have remained extremely low in Senegal and unless reversed, its prospects for sustained growth and development will be in jeopardy. Senegal needs a more literate and productive work force. Table I compares Senegal with sub-Saharan Africa for the period 1992 - 1994, and shows that with a higher level of public expenditures (as a percentage GDP) education results attained in Senegal were lower than in other sub-Saharan countries when measured in terms of GER and student teacher ratio. This relative inefficiency is largely due to past policies and reflects the inherent difficulty in reallocating public expenditures towards primary education and within primary education to quality enhancing inputs. Today the principle challenge for the Government is to substantially increase primary level enrollments, improve the quality and learning attainments at all levels, instill accountability and efficiency in management and achieve greater equity in sector expenditure allocations. The Government is confronted with a rapidly growing school population and increasing demand for education at all levels combined with limited public resources given the Government's decision to limit its education recurrent budget to 33% of the Government's total recurrent budget (after interest payments) and 8% of the investment budget for the next 3 years. Table 1: Education Indicators: Senegal and sub-Saharan Africa (selected years) Indicator and year unit Senegal SSA Population Growvth (1997) % 2.9 27 Life Expectancy (1966) years 50 52 Percentage of population under 1 5 (1996) % 44.6 44.8 GDP per capita (1997) US$ 550 503 GER primary: SSA 1993-96, Senegal (1995-96) % 57 75 ofwhich girls % 50 67 GER middle and secondary: (1993 - 1995) % 16 28 of which girls % 12 23 Student teacher ratio (1993 -95) no. 61 44 Public Expenditures as % of total expenditures (1992- 94)* % 23.5 16 Public Expenditures as %ofGDP (1992 -94)* % 5.2 3.7 Sources: Government of Senegal, PER, IMF, World Bank, Africa socio-economic indicators * Public Expenditures are expenditures by central and local goverrnent and ODA. Previous Education Policy Framework. The Government of Senegal's last education sector policy objectives were defined in the VII and IX Economic and Social Development Plans. The principal objectives were to: (i) attain universal primary enrollment by 2010 with an intermediate objective of GER of 75% by 2000 and promote girls schooling and reduce regional disparities; (ii) improve the transition rate between primary, middle and general secondary improve enrollment rates at these levels; -63 -  (iii) improve the quality of education giving priority to reforming secondary technical education; (iv) restructure higher education by reducing the number of students, privatizing social services and containing costs, improving the quality of education, particularly in scientific areas and improving internal and external efficiency, increasing the working hours of professors and introducing cost-recovery; (v) reallocate public resources to primary education. Primary education. The Government has had only limited success in meeting its primary enrollment rate objectives during the 1990s. At the end of the 1980s, primary education could not satisfy the demand and its quality was considered inferior to the average in sub-Saharan Africa. As Table 2 shows, enrollment rates in 1998 are only slightly above the level achieved in 1989. Between 1985 and 1995, enrollment rates barely kept pace with population growth, (even declined in 1993-1995) due to an insufficient number of teachers and slow expansion in the supply of schools and classrooms. In urban areas, the private sector picked up the slack and student enrollment grew at a faster rate (5.2%) than in the public sector (4.2%) during which time, the private sector increased its share from 9% to 12% of students all students attending school. Since 1995, however, public primary enrollments have grown at an annual average rate of 8.3% (10.2% for girls) allowing Senegal to reach a GER of 60% by 1998 mainly as a result of the Government's decision to start a teacher volunteer program which for the first time in a decade allowed teacher recruitment to keep pace with enrollment growth at an affordable cost. The volunteer teacher program begun in 1995 hired mostly university graduates on a two year (renewable for two years) contract at a salary of one-third the starting salary of a new teacher. In total about 4,000, representing almost 1/3 of the primary teaching force, have been hired and received short-term pre-service training. Additional policies which increased enrollment rates included: (i) significantly increasing classroom construction (1,500 classes per year compared to previous years (200 - 5000 per year) particularly in rural areas, (ii) aggressively promoting double shifting in urban areas (from 28% to 43% of urban public school students); and (iii) carrying out a public information campaign to encourage girls schooling. While efforts have kept the average class size from increasing, it is still high and there is an enormous variation in class size between rural and peri-urban zones, even within IDEN as evidenced by detailed class information. The single most cost-effective policy to improve learning would be to reduce the variance in student-teacher ratios by re-deploying teachers from excess areas, administrative posts and using multigrade teaching more intensively. Middle and Secondary Schools. Government policy has been to contain expansion at these levels. In middle secondary total enrollment has grown by only 2.4% annually (1.9% public, 3.6% private); the gross enrollment rate remained constant in the 1990s at about 21% which is quite low when compared the sub-Saharan average. Since 1990, 72 new middle schools have been established of which 23 are public Most schools and students are in urban areas (92%); girls comprise 38% of enrollment, Due to lack of places only 18% of primary graduates are accepted into the first year of middle school. Class sizes are high, averaging 55 students per class and ranging from 41 in Fatick to 100 in some suburban Dakar schools . Given, the low transition rate from primary to middle school and the increased enrollments at primary this level of education needs urgent attention. At the secondary level, there are 92 secondary schools (39 public) enrolling 60,000 students. Since 1992, 26 new secondary schools have been established, the majority public and all in urban areas. Total enrollment grew at an average annual rate of 2.1% (0.7% public and 11 % private). The GER declined from 11 % to 8% while girl's share increase from 33% to 36%. While one of the Government's policy objective was to prioritize and restructure technical secondary education. This objective has not been achieved and in fact the number of students in this sub-sector has declined on average 10% annually; whether the issue is one of demand or supply is not clear. -64 -  Higher education. The quality of higher education, as measured by the entrance capacity, internal efficiency and the student teacher ratio is poor. Approximately 75% % of students are enrolled in the first two years of university because there is no limit on the number of times a student can fail (80% of students fail the first year and between 60% and 70% the second year), and student teacher ratios are very unequal between institutes and faculties. The number of years necessary to produce a graduate (varying from 14 to 90 depending on the faculty) and the percentage of students obtaining a diploma (varying between 2% and 24%) has not yet improved during the 1990s. Starting with a situation characterized by a lack of control over admissions at the beginning of the 1990s, the Government began a reform program in 1994 which entailed abandoning automatic admission with the Baccalaureate. Between 1994 and 1996, admission rates were reduced at both UGB and UCAD and social services were privatized and targeted to needy students, transferring savings to finance quality inputs. Until 1996 admissions were contained and huge savings were realized on social expenses until 1996, when policy reforms were partially reversed and others such as cost-recovery were never introduced. Private service delivery. A new statute clarifying the regulatory environment for private schools was enacted in 1994. This statute, coupled with the growing dissatisfaction with the quality of public schools and limits on the expansion at these levels has led to a steady increase in private provision. As shown in Table 2 and 3 , private enrollment's share of students increased at all levels and in 1996 private service delivery accounted for about 13% of all financing in the sector concentrating in primary with FCFA 9.9 billion or 19% of services and FCFA 5.3 billion in middle secondary with 33% of the value of services. Enrollments in private schools have increased faster than in public schools (14% at primary, 7.2% in middle and 21% in high schools; 90% of primary schools are in urban areas and a growing number are of these schools are bilingual Arab/French or Koranic which include religious instruction.. Nevertheless, the emergence of the private sector has not significantly increased gross enrollment rates. There is greater potential for the private sector if the public sector can work in greater collaboration in partnership with it. Urban rural differences. Analysis of two household surveys (ESP 1992 and ESAM 1994) show that national levels of GER hides important variations in enrollments depending on family income and whether the family lives in urban or rural zones. One can conclude from Tables 2 and 3 that: (i) the GER is lower, the poorer is the family. While the primary GER was 57% in Senegal in 1992, it was 26% for the poorest quintile and lower for girls at all levels except the richest quintile; (ii) the GER gap between the richer and poorer quintiles gets wider as the level of education increases. If the GER for primary is 4 times greater in the richest than in the poorest quintile, it is 80 times greater for higher education; (iii) as incomes rise the difference in GER between boys and girls gets smaller and disappears at the primary level for the highest income groups; (iv) for all income levels and levels of education, GER is significantly lower in rural areas. - 65 -  Table 2: GER by quintile and level of schooling (% 1992 Primary Middle Secondary Higher Quintile Total Girls Total Girls Total Girls Total Girls 1 26.0 17.7 5.0 2.3 1.6 0.4 0.1 0.1 2 42.5 35.3 11.8 6.4 5.0 1.2 0.7 0.4 3 65.2 59.3 23.9 16.6 12.7 6.1 1.4 0.4 4 83.9 75.6 40.6 30.1 26.4 14.1 2.5 1.2 5 101.8 100.4 72.3 62.6 48.9 43.6 8.3 5.4 National 57.4 51.1 26.6 20.3 17.6 11.6 2.4 1.3 Table 3: GER by quintile and zone (%) 1992 Quintiles 1 2 3 4 5 Primary Rural Zones 22.4 26.8 30.1 39.9 39.1 Urban Zones 64.2 65.8 80.0 90.9 105.2 Middle Secondary Rural Zones 3.5 3.5 4.6 12.1 3.9 Urban Zones 18.2 21.8 30.6 87.9 96.1 Demand for Education. In attempt to explain the variation in enrollment rates, an analysis of the demand for education was carried out by CREA based on household survey data. It concluded that the decision to send children to school depended on the proximity of the school, income level of the family, and the number of girls in the family. The main reason explaining low GER in Senegal is a question of supply. The difference in GER between income groups increases as the level of education increases partly because poorer families tend to live in rural areas. There is less access to primary, middle and secondary schools in rural areas. A higher percentage of incomplete primary schools and the greater distance to middle schools are explanatory factors. The benefit-incidence and demand analysis found very little change between the two periods for which household data is available except that enrollment rates at primary improved in the lowest two quintiles (because of school construction). A study carried out by IDS/FAWE on constraints to girls schooling came to similar conclusions citing transportation and the costs of books and competition between public schools and Koranic schools in some areas as being the major factors constraining primary school attendance. The main recommendations of the CREA study calls for a more dense school mapping carte multigrade smaller schools) in order to motivate parents to send children to school. This will of course require a substantial increase in resources to primary schools, targeting public subsidies to rural areas, reducing the costs of primary education to families and increasing family contribution to secondary and higher education which benefits disproportionately higher income groups. Student Achievement: Education Quality/ Low Internal Efficiency. The cost to Government and parents of high repetition and drop-out rates is a major policy concern as it significantly constrains capacity to increase enrollment rates. Internal efficiency (as measured by repetition rates, the proportion of an entering cohort to graduate, the number of years of expenditures required to produce a graduate, student: personnel ratios and student achievement) is very low throughout the system. Despite stated policy objectives to reduce repetition rates, they remain high at all levels and have not fallen in more than a decade. Repetition rates average 13%, 15% and 21% in primary, middle and secondary education respectively, reaching between 26-28% in the last grade of each cycle Repeaters take up an estimated 83,000 student places (or 1,800 classrooms) which could be used to off-load overcrowded classrooms or take in new students. For an entering cohort in primary school, only 14% will graduate and producing one - 66 -  graduate requires 22 years of investment for the 6 year cycle. (3.3 times the cost if there were no dropout or repetition). In middle schools, only 36.3% of an entering cohort will graduate with a BFEM, and to achieve one graduate requires an investment of 7 student years for the 4 year cycle (1.6 times imputed cost). In secondary schools, 20% will graduate, and to achieve one graduate requires an investment of 9 years for the 3 year cycle (3 times the imputed costs). The quality of primary education is sub-standard when judged by various indicators including the results of student achievement tests conducted by INEADE and CONFIMEN (1998) for primary schools. In general, only 15% of primary school students achieve the minimum learning objectives and compared to the other Francophone countries, Senegalese students scored the lowest on comparable tests of achievement. Table 4: Senegal: Measures of Internal Efficiency in Education (1992 and 1996) School Level Primary Middle Secondary Technical 1989 1992 1998 1992 1998 1992 1998 1992 1998 GrossEnrollmentRate 57.1 55.8 60.1 21.0 21.2 11.0 8.0 for girls 47.5 47.1 49.8 Private students % of total 9.2 12.1 25.8 27.5 12.6 18.8 16.8 22.3 Quality indicators (ratios) student/class public 64 64 55 55 49 44 39 38 student/class private 46 43 41 38 29 37 40 32 student/teacher public 61 61 36 32 21 22 Internal Efriciency (%) I last year repetition 30.2 25.0 22.4 32.1 28.1 n.a n.a last year dropout 3.9 10.5 2.3 n.a n.a n.a n.a admission to final exam 49.1 50.1 34.5 43.7 47.1 54.3 Graduation ( ublic) years/student completion 22.51 7.0 9.0 n.a number of diplomas/total students )14.0 36.3 20.7 n.a Source: Governmnent of Senegal, Revue des Depenses Publiques dans le Secteur de l'Education, 1998 In recent years, three studies have been carried out to assess the factors explaining differences in student learning and school performance. The SNERS and PASEC (CONFIMEN) studies, analyzing learning in primary levels concluded that: (i) family income and education strongly influences student achievement and are strongly linked to other variables that explain differences in student achievement, namely the availability of books and other school material and class size. (ii) books are crucial for success. At the primary level, regardless of family characteristics, the availability of books is the most important predictor of achievement. However, only 50%- 70% of Grade 2 and 4 students have language books and only 20 -30% have math books. (iii) students in large classes at the primary level have lower levels of achievement. (iv) the level of teacher qualification has no impact on learning outcomes; achievement of boys and girls are similar on average but girls perform better as they advance in the system. (v) students in private schools performed better that those in private schools, regardless of family characteristics. This is explained by the school management, smaller average class size and frequent evaluation of students. The CREA study analyzed the cost-effectiveness in secondary middle, general and technical schools. Graph 2 plots student achievement against unit student costs showing that higher levels of expenditures do not necessarily lead to better outcomes and the best school are relatively low cost The study came to surpassingly similar conclusions as the analysis of primary schools arguing that in middle and secondary schools, the most important factor explaining differences in school level outcomes was how schools were managed. The study makes the following recommendations: (i) the most cost-effective policy to improve student achievement and to improve wastage is to -67 -  systematically introduce pedagogy and administrative management systems (including class councils) at the school level; (ii) the easiest policy to implement and the most certain of a positive impact is to improve the supply and use of books and school manuals; (iii) the second best strategy would be to put in place a remedial system at the school level (iv) the third best policy but difficult to implement is to increase the number of effective hours that teachers teach (increasing from 15 to the 20/24 norm ) by constructing supplementary schools in some schools and/or improving the utilization of teachers between schools so as to increase productivity; (v) in crowded schools, particularly in peri-urban areas and public schools, a cost-effective strategy is to reduce student/desk ratios. Policies which are extremely costly and do not have much impact on learning outcomes are (i) increasing the qualification level of teachers; and (ii) reducing class size. As well, teacher status, whether a contractual or a civil servant does not have any bearing on learning outcomes. Consequently, expanding public secondary education should be based on a hiring policy of contractual and volontaires as a means to contain costs. Expenditures in education. Table I shows that between 1992 and 1994, Senegal allocated on average more resources to education than the average SSA country and that these were used relatively inefficiently. In 1997, the Government commissioned a public expenditure review of the education sector which provides a more detailed analysis of the evolution and allocation of public expenditures and confirms the diagnosis of poor quality and efficiency discussed above. Between 1992 and 1996 total expenditures in public education increased in nominal terms from FCFA I10 billion to FCFA 143 billion; in real terms, education expenditures declined by about 14% between 1992 and 1997, which corresponds to an annual average decline of about 3.3%. As a proportion of GDP the same tendency is observed as total expenditures declined from 5.4% to 4.0%. This decline is more pronounced in per capita real terms as expenditures decline by a factor of 2.5 times between 1992 and 1996. Sources of financing. Contributing on average CFA 82 billion annually, public sector expenditures increased from FCFA 79 billion to FCFA 97.6 billion representing an increase of 23.2% or on an annual basis an increase of 4.6% between 1992 and 1997. In spite of this increase in nominal terms the Government's real fiscal effort declined during this period: (i) government's share of total education financing in education declined from 74% to 68% between 1992 and 1997. With respect to public education, Government's share also declined from 80% to 76.4%; (ii) education's share of the Government's recurrent budge (after debt service) declined from 34.8% in 1992 to 31.4% in 1997 before increasing to 33% in 1998; (iii) Expressed in real terms, total public resources allocated to education declined by 12% between 1992 and 1996; (iv) As shown in Table 5, as a share of GDP, public expenditures declined from 4.8% to 3.3% between 1992 and 1997; (v) the decline on a per capita basis was even more dramatic. The decline in support from the central government has been compensated in part by other sources of finance. Household contributions to public education have steadily become more important during the 1990s financing fees, transportation, books and maintenance. Estimated at about FCFA 17 billion in 1992 household contributions have increased significantly to FCFA 26.9 or about 19% of all financing in the sector. Of this, contributions to the public system have gone from FCFA 5.9 in 1992 to FCFA 8.9 billion in 1996 and FCFA 10 billion in 1998. Private service delivery received about FCFA 15.6 billion in 1996. - 68 -  Local governments contribution to education has been extremely modest at less than 1% annually and is mostly directed to investment at the primary level. Although Official development assistance has fluctuated, it represents on average 14.4% of the financing of public education. Table 5: Public Expenditures Trends in Education (selected years) Central Government Expenditures 1992 1995 1996 1997 Education expenditures recurrent as % Government recurrent* 34.8 31.1 33.2 31.4 investment as % Government investment 0.4 1.0 1.0 0.6 total as % of total Government spending (incl. Debt) 20.0 17.3 19.9 17.7 Public Education Expenditures (FCFA billion) of which Central Government (%) 80.1% 75.6% 78.5% 75.8% Donors 11.5% 15.2% 12.2% 13.5% Local Government 1.4% 1.1% 1.0% 1.0% Households 7.2% 8.3% 8.7% 10.2% Total Education Expenditures (FCFA billion) of which Central Government (%/6) 73.9% 8.8% 69.4% 68.0% Donors 8.9% 10.8% 10.6% 11.8% Local Government 0.8% 0.8% 0.7% 0.7% Households 8.9% 19.6% 19.3% 19.6% Allocation of total recurrent expenditures recurrent 100% 100% 100% 100% Administration 4.6% 11.3 12.8 14.6 Literacy 0.3% 0.3 0.2 0.0 Primary 40.1% 35.7 37.6 36.2 middle and general secondary 23.0% 22.3 19.9 18.6 technical and professional 9.6% 7.2 6.7 4.3 higher education 22.5% 23.2 22.8 26.6 Public recurrent expenditures ( % GDP) 4.9% 3.3% 3.4% 3.3% Total Education Expenditures ( % GDP)** 5.4% 4.7% 4.5% 3.8% Total Education Expenditures (per capita US$1992) 41 18 17 11 Per student expenditures ( % of per capita GDP) public primary 25% 19% 18% public middle and secondary 67% 59% 48% higher 433 376% 401% ** includes investment and recurrent expenditures from all sources Intrasectoral Allocation of Expenditures. The trends described above are reflected in the distortions in the intrasectoral allocation of expenditures. Tables 5 and 6 show the sudden increase in the share of expenditures allocated to administrative services going from 5.8% in 1992 to 16% of public recurrent expenditures in 1993. Higher education, more able to protect its budget during this period, actually increased its share from 25.6% in 1992 to 27.7% and more or less maintained it, resulting in a compression of expenditure shares at other levels. Budget allocations were thus made to the detriment to primary and secondary education. The share of the recurrent budget to middle and secondary fell 27.2% to 24.6% and primary education's share of the budget declined from 40% in 1992 to 34% in 1995, when its share began to rise again to 36.6% in 1997. This shift differs radically from other countries in West Africa, such as Guinea and Cote d'Ivoire where public expenditures to primary have increased accounting for 60% and 40% of government recurrent expenditures respectively. - 69 -  Table 6: Intrasectoral allocation of public recurrent expenditures Sub-sector 1992 1993 1994 1995 1996 Administration 5.8% 16.0% 15.3% 15.1% 16.1% Primary 41.1% 32.9% 33.6% 33.9% 35.4% Middle 10.4% 9.6% 9.6% 9.3% 9.5% Secondary 16.8% 14.4% 14.8% 14.8% 15.1% Higher 25.6% 27.7% 27.1% 26.9% 23.9% Role of the public sector. Three principles can be used to guide the level of public intervention in education: (i) Market failure: private households may under-invest because of the unavailability of credit, or imperfect information. Uneducated parents, for example, may underestimate the value of education for their children. Both of these factors will tend to result in sub-optimal private spending in basic education especially in rural areas; (ii) the existence of positive externalities (a sub-set of market failure): the Government should intervene to supplement private expenditures where the social rate of return is higher than the private rate of return. This is generally accepted to be the case for education in Africa, though there are no good estimates of the social rate of return for Senegal; (iii) equity objectives: the Government should intervene if the allocation of private resources is expected to lead to inequitable outcomes. If the benefits of higher education are captured primarily by the well-off while the benefits of primary education are fairly evenly distributed, government may choose to concentrate its attention on the latter. The Government of Senegal's role as the largest single provider of finance for education can be justified on these grounds. However, the distribution of public resources between the different levels of education has not been clearly articulated on either efficiency or equity grounds. In effect, the role of private financing has not been properly defined, perhaps because the information on private ROR was lacking. But tentative estimates for 1994 are now available; 14% for primary, 97% for secondary and 134% for tertiary. This suggest that secondary and tertiary investment is highly profitable to individual households (partly because of the large public subsidy). It also suggests that the greatest discrepancy between social and private rates of return is likely to be at the level of primary education. Yet households' share of financing of primary education has increased from 12% to 17% during the 1 990s largely as a result of the introduction of cost recovery for schoolbooks while the Government's share of financing has declined from 82% to 77%. At the same time, household contributions to financing of secondary and higher levels of education were only 10% and 1% respectively in 1996, the opposite of what efficiency and equity arguments would recommend. - 70 -  Table 7: Source of financing & intrasectoral distribution of expenditures 1996 (FCFA millions) Government Local Households ODA Total % of Government Total Administration 13.843 13.843 11.1 Preschool- 12 12 Primary 31.207 767 16.121 3.037 51.132 41.2 Public 30.407 767 6.925 3.307 41.136 Private 800 9.196 9.996 Secondary Middle 8.177 159 6.427 14.764 11.9 Public 8.177 159 1.096 9.432 Private 5.331 5.331 Secondary General 9.239 192 1.456 2.308 13.195 10.6 Public 9.239 192 453 2.308 12.192 Private 1.003 1.003 Technical 1.993 8 235 1.762 3.920 3.2 Public 8 98 1.762 3.861 Private 137 137 Professional-Public 1.961 1.959 3.920 3.2 Higher - Public 20.667 275 2.369 23.311 18.8 Total Public 86.301 1.125 8.846 11.436 107.709 86.7 Total Private 800 15.668 16.468 13.3 TOTAL 87.101 1.125 25.514 11.436 124.176 100.0 Share(%) 70.1% 0.9% 19.7% 9.2% 100% Benefit-incidence analysis. The distribution of public expenditures by income group is illustrated in Graph 1 and shows that (i) the 20% richest households received 34% of public expenditures, and the poorest received 6%. (ii) as the level of education increases, there is a greater divergence in share of expenditures to different groups. For the first quintile, its share of expenditures at primary is 12% but only 2% of secondary expenditures and less than 1 % of higher expenditures and the inverse is true for the richer groups. This is because the GER for the higher quintiles is greater at all levels of education and unit costs at these levels is much higher than at primary where the majority of children from poor households attend. Even so, the richest quintile benefit proportionately more at the primary level with only 10% of children in this age group, they receive 17% of primary expenditures while the poorest quintile have 25% of children in the 7 - 12 age group and receive 12% of expenditures. With less children, the richest quintile benefit more on a per capita basis. The overall distribution of public expenditures became more equitable between 1992 and 1994 as the poorest quintiles share increased to 14%. This is explained by increasing access to education in rural areas which has benefited the poor and increasing recourse to private systems by the richer quintiles. Table 8: Economic Ailocation of recurrent expenditures (as % of education recurrent expenditures) Expenditures 1992 1993 1994 1995 1996 Personnel 79.0% 75,5% 77,4% 77.3% 78,7% Textbooks 0.6% 0,8% 0,6% 0,5% 0,5% Other materials 4.7% 4,8% 2,9% 3,2% 4,1% Maintenance 0.7% 0,7% 0,5% 0,6% 0.6% Subsidies 6.9% 7,9% 8,0% 7,9% 7,3% Scholarships 8.2% 10,3% 10,6% 6 10,5%/o 8,9% Economic Allocation of Expenditures. The trends in intrasectoral allocations, illustrates the difficulty in applying principles of education policy in a period of fiscal austerity. In Senegal, the economic allocation of education expenditures deteriorated between 1992 and 1997: (i) the investment budget fell to 5% of total education expenditures (ii) the share of salaries in the recurrent budget increased from 76% in 1992 to 79% in 1997; (iii) for primary education, salaries accounted for 97% of government's recurrent expenditures between 1992 - 1996 which led to the decision to introduce cost recovery for textbooks. (iv) scholarships and subsidies increased from 15.1% in 1992 to 16.2 % in 1997 (of which 95% was - 71 -  for higher education). Books accounted for 0.7% of recurrent expenditures and maintenance about 5.5% between 1992 and 1996. Unit costs and controlling the wage bill. The increasing share of salaries in the recurrent budget over the 1990s has effectively crowded out the capacity to finance inputs such as books, maintenance and supervision needed to ensure education quality. In primary education, the devaluation, the expansion of double shifting and the recruitment of "voluntaries" after 1995 have permitted the Government to reduce the unit salary costs per student in real terms and thereby increase the number of teachers and the GER. The ratio between the salary of a volontaire and a certified teacher (enseignant titulaire) is 1 to 5.4 and 1 to 6.8 for teaching a double shift class. By 1996 volontaires teachers accounted for 9% of salary unit cost for primary although they provided about 20% of teachers. However, given the inherent rigidities in the nominal wage bill for civil servant teachers, not all of the possible economies of hiring volontaire teachers can be realized. The salary scale of unionized civil servant teachers does not reflect current labor market wage scales. Another potential source of savings is the redeployment of administrative positions filled by non-teaching teachers and supplementary teachers who receive full-time salaries but work only occasionally and other civil servants who erroneously receive teaching benefits. In the urban areas of Dakar and Thies it is estimated that 20% of the wage bill is accounted for by supplementary teachers. Overall, these posts account for 35% of the average unit cost per student. Table 9: Trends in Unit Costs (FCFA millions) Level Unit costs As a ratio of primary unit cost 1992 1996 1992 1996 Primary 43,356 37,538 1 I Middle 69,491 72,864 1,6 1,9 Secondary 251,817 251,926 5,8 6,7 Higher 818,258 944,221 18,9 25,2 All levels 78,228 73,094 1,8 1,9 The structure of unit costs in secondary levels is quite similar to that of primary. Wages' share of unit costs has increased from 73% to 80% at secondary middle and general displacing expenditures on books which have declined from 2.3% to 0.8%. Administrative personnel account for over 25% of wage costs. Wage differences between a civil servant professor is two times that of a contracted professor (who also teach 22 hours compared to the 18/20 hours of a civil servant teacher). However contracted professors account for only 3.5% of per student wage costs. Other factors contributing to high per student salary costs are the specialization of teachers in middle secondary and the excessive number of courses leading to a high proportion of teachers teaching less than the maximum required hours yet being paid full-time. The inability of the Government to significantly reduce scholarships and other social transfers has meant that it has been not only unable to reduce higher education's share in expenditures but also that it has not been able to reduce unit costs. As shown in Table 9 the ratio to primary education increased from 19 to 25. - 72 -  Strengths and weaknesses. In the 1990s Senegal adopted ambitious policy objectives in a environment of declining public resource availability. The main public sector strengths and policy successes in implementing the reform program, over the past decade have been: (i) improving efficiency at the primary level by reducing unit costs through the expansion of double shifting and introducing volontaire and contractual teachers and developing low-cost pre-service training modules; (ii) successfully contracting literacy programs to NGOs (iii) decentralizing financial management to middle and secondary school levels for non-wage expenditures; and (iv) promoting private sector delivery and financing. The Government did not achieve, however, as much progress as it intended. Indeed, the PER assessment is that with the resources it had, the Government could have reached its primary GER of 75% by 2000 if it had implemented all of the financing reforms to which it had commnitted itself. The Government's inability to move resources out of higher education and to introduce a cost-recovery policy based on equity principles resulted in greater inequity in the distribution of public expenditures in education and necessitated a compression of public financing for primary and middle schooling. The Government's main weaknesses have been a hesitancy to build consensus with teachers, students and parents on the main sector problems and the proposed policy reforms such as teacher re-deployment and recruitment procedures, cost-recovery and limiting scholarships. As a result there has been a serious backtracking on the reform agenda and costly delays in improving resource efficiency in the sector. There is also a serious lack of explicit responsibility for implementing reforms and accountability in the system which leads to bureaucratic inertia, a lack of incentives to create information systems to monitor reforms and to use information to make decisions. For example, while extensive detailed and good quality information exists on class size, little effort has been made to reduce the enormous variation in class size by re-deploying teachers - one of the least costly ways to improve school learning. Another example concerns the waste of resources associated with the teaching benefits that non-teaching staff still receive and the proportion (20%) of teaching staff in Dakar and Thies who are supplementary teachers being paid full-time but not working. Summary of benefits and costs: Expenditure Framework and Financing of QEFA. Macroeconomic policy. The last four years have witnessed a turn around in the implementation of economic reforms in Senegal, reversing two decades of poor economic management and lackluster growth performance. The impact of policy reforms adopted since the devaluation of the CFA in January 1994 is evident in terms of reduced fiscal and current account deficits, a return to pre-devaluation inflation levels and an average growth rate exceeding 5 percent between 1996 and 1999. The Government continues to pursue the consolidation of government finances, and increased efficiency in public spending, particularly in the social sectors. The economic outlook is positive with growth and per capita incomes continuing to increase. The Government's fiscal policy objectives are to reduce the overall fiscal deficit (on a commitment basis, excluding grants) from 3.3% to 2.6 % of GDP over the next years. This can only be accomplished with strong revenue collection efforts and continued control of recurrent expenditures, together with an improvement in the quality and effectiveness of current outlays. With regard to overall expenditure policy, the priorities are to; (i) streamline personnel expenditures; (ii) establish budgeting-by-objectives for Health, Education and Justice; (iii) improve the programming of expenditures in social sector; (iv) increase the share of share of education expenditure to primary education to reach a GER of 75% by 2001 and UPE by 2010. - 73 -  The persistence of inefficiencies in sector expenditure management has greatly influenced Government's decision to not increase education's share of public resources. Nevertheless, it is committed to providing 33% of its national budget and 8% of the investment budget for the QEFA. Table 10 summarizes the resource projections for the education sector based on assumptions (on an annual basis) that GDP (and household's incomes) will grow at 5%, GDP deflator at 2%, population at 3%, household expenditures on education will increase from 0.8% to 2% of household expenditures and local government's expenditure on education will also increase from 5% of local budgets to 10% over the next 10 years. Table 10: Macroeconomic and Resource Projections for education sector 2000 - 2003 (FCFA million) 2000 2001 2002 2003 Nominal GDP 3266285 3494925 3739570 4001340 Total Public Recurrent Expenditures 316300 310700 327338 344793 Public Education Expenditures 104379 102531 108021 113782 Total Public Investment 110700 107600 112765 118178 Public Education Investment 8856 8608 9021 9454 Total Education Expenditures 113235 111139 117042 123236 Households total spending 18987 21774 24971 28638 Household spending on public 4359 5261 6152 6924 Household public spending on private 14628 16513 18819 21714 Local government 1658 1813 1982 2166 Private Sector 3808 4236 4842 5774 Total domestic spending on education 137688 138962 148837 159814 Source: MEB; CREA Costs and Financing of PDEF, November 1999 * QEFA projections are for public education and do not include private sector and household spending on private education. *net of interest and debt service - 74 -  Major Policy Reforms. The QEFA covers the period 2000-2003 of a ten-year education development plan (PDEF) developed by the Ministry of National Education. The QEFA/PDEF is a sector program linking specific policy objectives to a medium term expenditure framework, integrating the investment and wage and non-wage expenditures at the regional and national levels. The program aims to build on past progress by improving the management capacity, efficiency and equity of the education sector, increasing access and the quality of education. Specific policy objectives are to reach universal primary education by 2010, 50% of primary graduates going on to middle school and 60% of middle school graduates going to high school and limiting the number of students at public universities. Other objectives aiming to improve the quality of education include providing free books, reducing repetition rates to 10% throughout the system and promoting the private sector at the higher levels, particularly in urban centers. Government's decision to limit the share of public resources to education was confirmed during negotiations and means that a very disciplined effort must be made to use resources efficiently. Thus, in order to improve efficiency, equity and quality the Government's intends to implement a reform policy package comprising expenditure enhancing, cost containment, cost- recovery and management reform policies. (a) Cost containment policy reforms include: (i) recruitment and wage policy for teachers. The Government has decided to mainstream its experiment in recruiting volontaires at the primary level It has prepared legislation grand-fathering the recruitment of civil servant teachers and introducing a new system beginning in the 2000 school year. As a result of a national competition, all teachers will be hired at the IDEN level as "volontaires" and receive an initial 6 month training program; after four years their status can be converted to a contract teacher. The starting salary level of a volontaire will be about FCFA 80,000; (ii) assigning already existing teachers to IDENs. Consequently, teachers will have to compete for jobs at other locales if they want to move; (iii) use multigrade teaching and intensively re-deploying teachers to reduce the variation in class size and extend incomplete primary schools; (iv) reduce the percentage of supplementary teachers to 5% by IDEN and introduce a policy of hiring volontaires as supplementary teachers and re-deploy existing supplementary teachers; (v) will grandfather civil servant teaching and introduce a new system of volontaire or contracted teachers formiddle and secondary schools; (vi) reduce the number of primary level teaching staff at the middle and secondary levels and undertake various measures to reduce the administrative costs such as reducing the number of class monitors; (vii) eliminating special teacher benefits and subsidies from non-teaching teachers; (viii) improve teacher utilization by increasing the number of effective hours teachers work and introducing polyvalent teachers at the middle school level. (b) Expenditure increasing policies include: (i) maintaining the education's share of the recurrent budget (after debt service) to 33%; (ii) increasing the share of recurrent allocations to primary from 36% in 1999 to 41% in 2005 and 50% by 2010; (iii) attaining UPE in all regions by 2010 as a means to improve equity; (iv) improve the quality of education by increasing the share of expenditures to non-wage quality enhancing inputs (such as books, inspection) and testing new initiatives to understand their cost-effectiveness at improving learning including bilingual instruction, early childhood initiatives, the introduction of small rural middle schools, reading programs and school health initiatives. The cost implications have been estimated and are affordable. (c) A program of cost-recovery will (i) introduce fees at middle, secondary and higher education; The initial fees which will increase over - 75 -  the life of the QEFA are estimated to be; pre-primary (FCFA 9,800 ), middle (FCFA) Community (FCFA 700) Primary (FCFA 500), Middle (FCFA 11,200), Secondary (FCFA 15,000) and Higher (31,012). (ii) reduce scholarships to FCFA 3.3 billion or 13% of higher education expenditures. (iii) decentralize more management to local levels and strengthen both financial and pedagogic management at the school level with the introduction of school development plans. Main Assumptions: Expenditure Estimates. Detailed projections and a three-year budget integrating recurrent and investment expenditures by level of education and by source of financing for the 10 year program were produced by the Government and are found in the project files. (Preliminary estimates for the 2004 -2010 year are available but since specific policies regarding cost-sharing and defining the roles of the public and private sector in service delivery at secondary and higher can not yet be appraised, the estimates and financing plan can not yet be validated for the second and third phase). Overall, 81% of the program expenditures will finance recurrent expenditures and 19% investment expenditures during the first phase. Within recurrent expenditures, wages will account for about 70% and 30% will be allocated for quality enhancing expenditures (books, teaching material, training, school grants) - a significant improvement over the current situation. The overriding policy objective of the QEFA is to attain a primary GER of 75% by 2003 and UPE by 2010. Accordingly, primary education will receive 48.8% of total expenditures; 77% of all investments under the program and 43% of recurrent funding. Table 11 summarizes the distribution of expenditures by sub-sector and shows that almost 85% of all investment expenditures will support increasing access and quality of education for basic education (pre-primary, literacy, community, primary and middle school). The ratio of recurrent to investment expenditures is highest for: (i) pre-school and literacy activities due to the low levels of investment in construction and equipment and an emphasis on training and animation; and (ii) secondary and higher education because of higher unit operating costs for running the system. As well, activities to improve quality in the first phase do not require a lot of construction and equipment expenditures. Major investments will not occur until the second and third phases once a policy framework conducive to significant expansion is adopted. - 76 -  Table I 1: QEFA Intrasectoral distribution of expenditures (FCFA millions) Sub-sector 2000 2001 2002 2003 Total Pre-school, Literacy, Community 10206 10899 9942 9599 40646 7.0 Recurrent 9496 10899 9692 9418 38613 8.1 Investment 710 892 251 180 2033 1.9 Primary 65347 70895 73113 75327 284682 48.8 Recurrent 44009 48391 52346 55769 200515 42.5 Investment 21338 22505 20767 19558 84168 77.2 Middle 17305 14741 15881 17619 65546 11.2 Recurrent 13668 13968 15242 16671 59549 12.6 Investment 3637 772 639 948 5996 5.5 Secondary 15891 15395 16465 16732 64483 11.0 Recurrent 14096 14381 14713 15090 58280 12.3 Investment 1795 1012 1752 1641 6200 5.7 Higher 24109 24921 23770 24370 97170 16.6 Recurrent 22034 22792 23470 24370 92666 19.5 Investment 2075 2129 300 0 4504 4.1 Management 9808 8413 7017 6228 31466 5.4 Recurrent 6100 6605 6451 6228 25384 5.4 Investment 3708 1808 566 0 6082 5.6 Total 142667 145264 146189 149574 583694 100 Recurrent 109402 115145 120915 126546 472008 100 Investment 33265 29119 24275 22328 108987 8.1 Source: MEB; CREACosts and Financing of PDEF, November 1999 *QEFA estimates are for spending on public education and do not include private sector investments nor household spending in the private sector. Table 12 summarizes the composition of the program for years 2000-2003 by objective, category of expenditure and source of financing. The total cost of the first phase of QEFA is estimated to be US$926 million; of which 69% is for increasing access, 26% for improving the quality of education and 5% is allocated for improving the management of the system and rendering it more decentralized. Government is the largest financier of the education sector, providing 79.7% of total resources followed by donors with 15%, households and local governments with 4% and 1.3% respectively. Donors will finance 62.3% of all investment expenditures. Central and local government will provide 37.5% of investment resources, mainly for construction services and counterpart financing. For recurrent expenditures, donors and households will each provide about 4% of recurrent expenditures for training, services and materials. Household participation represents fees which will be used to finance quality inputs at the post-primary levels. Central government is the main source of financing for recurrent expenditures financing 90.1% of expenditures - mainly for salaries and other operating costs. Not surprisingly, Government's main policy reforms are aimed at improving the efficiency of the wage bill. - 77 -  Table 12: QEFA: Costs and financing estimates for public education 2000 - 2003 ($US million) I Program objective 1998 2000 2001 2002 2003 TOTAL (00 - 03) ACCESS 107,73 149,73 156,89 161,29 169,58 637,49 Recurrent 93,66 112,04 117,91 125,38 134,14 489,48 Government 93,66 112,04 117,91 125,38 134,14 489,48 Investment 14,07 37,68 38,98 35,91 35,44 148,01 Government 7,97 11,25 10,93 11,46 12,01 45,64 Local government 1,67 2,00 2,19 2,39 2,61 9,19 Donors 4,42 24,44 25,86 22,06 20,82 93,18 QUALITY 47,92 61,16 60,33 60,31 60,96 242,77 Recurrent 46,23 51,93 55,96 57,89 58,43 224,21 Government 41,29 44,25 36,24 37,63 38,16 156,29 Households 4,50 6,92 8,35 9,77 10,99 36,02 Local government 0,44 0,53 0,58 0,63 0,69 2,42 Donors 0,00 0,23 10,80 9,87 8,58 29,48 Investment 1,68 9,23 4,37 2,42 2,54 18,56 Government 1,59 2,25 2,19 2,29 2,40 | 9,13 Local government 0,09 0,11 0,12 0,13 0,14 0,48 Donors 0,00 6,88 2,07 0,00 0,0o 8,95 MANAGEMENT 9,65 15,57 11,77 9,55 8,90 45,79 Recurrent 9,25 9,68 8,90 8,65 8,30 . 35,53 Government 9,25 9,39 8,60 8,45 8,30 34,73 Donors 0,00 0,29 0,30 0,20 0,00 0,80 Investment 0,40 5,89 2,87 0,90 0,60 10,25 Government 0,40 0,56 0,55 0,57 0,60 2,28 Donors 0,00 5,32 2,32 0,33 0,00 7,97 TOTAL EXPENDITURES 165,30 226,46 228,99 231,15 239,45 926,04 Total Recurrent 149,14 173,65 182,77 191,93 200,87 749,22 Government 144,20 165,68 162,75 171,46 180,61 680,50 Households 4,50 6,92 8,35 9,77 10,99 36,02 Local Government 0,44 0,53 0,58 0,63 0,69 2,42 Donors 0,00 0,53 11,10 10,07 8,58 30,28 Total Investment 16,15 52,80 46,22 39,22 38,58 176,82 Government 9,97 14,06 13,66 14,32 15,01 57,05 Local Government 1,76 2,11 2,30 2,52 2,75 9,67 Donors 4,42 36,64 30,26 22,38 20,82 110,10 FINANCING BY SOURCE Government 154,17 179,74 176,41 185,78 195,61 737,54 Households 4,50 6,92 8,35 9,77 10,99 36,02 Local Government 2,20 2,63 2,88 3,15 3,44 30,28 Donors 4,42 37,17 41,35 32,46 29,41 140,38 TOTAL FINANCING 165,30 226,46 228,99 231,15 239,45 926,04 Source: MEB; CREACosts and Financing ofPDJEF November 1999 Table 13 breaks down domestic spending by sources of financing. Total public spending on education as a proportion of GDP, after increasing slightly in 2000 will taper off slightly during declining to about 3.1% of GDP in 2003. Households, local government and the private sector are all expected to increase spending on education services pushing expenditures to about 4% of GDP in 2003. Participation will be forthcoming from: (i) the private sector for investment in infrastructure (from bank credit or savings); (ii) households for purchase of materials and for fees both for private services and for public schools; and (iii) local governments for maintenance, construction and some services. Donor financed investments and - 78 -  recurrent spending as a share of GDP represents an additional 0.6% of GDP annually. Table 13: Education Expenditure Projections as % of GDP ________________ __ 1998 2000 2001 2002 2003 Total domestic spending 3.60 4.20 4.00 4.00 4.00 Of which Total Public Education 3.4 3.50 3.20 3.10 3.10 Public recurrent education expenditures 3.1 3,20 2,90 2,90 2,80 Household expenditures* 0.5 0.60 0.60 0.70 0.70 Local Government 0.0 0.51 0.52 0.53 0.54 Private financing 0.0 0.12 0.12 0.13 0.14 Source: MEB; CREA Costs and Financing ofPDEF, November 1999 *Household spending on public and private schooling. Government recurrent expenditures. Providing 76.3% of QEFA resources and with 92.3% of those resources financing recurrent expenditures, Government plays a deciding role in improving their efficiency and cost-effectiveness. With respect to intra-sectoral allocations, the proposed program should improve the quality of public recurrent expenditures. As is shown in Table 14, the share of recurrent expenditures allocated to primary will increase to 44% by 2003 (and to 50% by the end of the program in 2010) up from 36% in 1996 due to hiring on average 2000 new teachers annually and expenditures on other inputs related to improving learning at school level. The share of recurrent financing to middle schooling will decline from 15% to about 12.%. While the relatively higher rate of social returns and its importance for improving equity in the distribution of public expenditures would lead one to argue for an increase share of sector resources to this level, the decline is a result of a combination of efficiency gains (reducing the number of new teachers that the system will require) and the growing importance of private schools (absorbing more students and teachers). Middle school's share of investment is, nevertheless quite high representing the increased construction of middle schools - many in rural areas as shown in Table 11. The share of government's recurrent expenditure going to secondary, increases from 15% to 17% primarily because of the difficulty in reducing unit wage costs at this level and increased expenditures on quality inputs. The share to higher education will decline from 24.9% in 1998 to 20% by 2003 and 18% by 2010, primarily as a result of reducing enrollments (from 27,300 to 23,500) rationalizing staff and limiting scholarship to FCFA 3.5 billion annually. Administrative expenditures will decline from 6% of total recurrent expenditure to 4.2% by 2003 as a result of improving efficiency of headquarters staff and freezing allocations to this function. Table 14: Intrasectoral Allocation of Government Recurrent Expenditures (as % of Public Recurrent Expenditures) 1998 2000 2001 2002 2003 Administration 6.0% 5.2% 4.9% 4.6% 4.2% Pre-school 0.5% 0.5% 0.5% 0.5% 0.5% Literacy 1.0% 1.0% 1.0% 1.0% 1.0% Community Schools 0.0% 0.0% 0.0% 0.0% 0.0% Primary 39.0% 41.0% 42.0% 43.1% 44.2% Middle 15.0% 13.8% 13.3% 12.6% 12.3% Secondary total 15.5% 16.1% 17.0% 17.3% 17.5% Higher Education 23.0% 21.9% 21.4% 21.9% 20.4% Source: MEB; CREACosts and Financing ofPDEF, November 1999 Regarding the economic composition of governrent expenditures, wages' declining share to 70% of recurrent expenditures on education will allow for more expenditures on quality inputs - in particular supervision, training and other pedagogic materials. At primary, for example, by 2003, expenditures on - 79 -  learning materials will account for 13% of expenditures and wages, 73% of expenditures, down from 90% in 1998. Reducing the share of expenditures to wages is a result of the recruitment policy of hiring volontaires and contract teachers, reducing the number of supplementary teachers at primary, using polyvalent teachers at middle school, as well as eliminating payment of teaching benefits to non-teaching civil servants. In higher education, the freeze on scholarships will reduce their share of recurrent expenditures to 13.3% in 2003, down from 15.3% in 1998, allowing for increased spending on pedagogic inputs. Household financing. The Government intends to introduce greater cost sharing in public education through the introduction of school fees and the promotion of private sector delivery. The government also intends to provide free books at primary. As a result of these reforms, family contribution to education expenditures as a share of total expenditures will decrease at primary, increase marginally for middle school and more than double for secondary and increase almost fourfold at universities (see Table 15). The fee schedule used to develop the financing plan for QEFA has not yet been discussed with schools, students and teachers but this will be done in 2000 at a Fee Charter adopted by October 2000. Four major issues which will be addressed during the implementation of the first phase are; (i) ensuring transparent and more autonomous and accountable management practices are put in place at the school level; (ii) ensuring that the quality and learning by children improves given that families are paying more for education services; (iii) monitoring the impact of cost-recovery on poor families; and (iv) agreement on a Fee Charter with stake holders. The successful implementation of cost-recovery and a policy framework that does not negatively impact of poorer groups will be a trigger for the Bank support of a second phase. Table 15. Household financing of public ucation by level per student (as a O/o of to al expenditures in public education) 1998 1998 2003 2003 Per student Recurrent Per student Recurrent expenditures Level of Education expenditures expenditures expenditures (as % of total) (FCFA) (as % of total) (Fcfa) Primary 576 2.0 407 0.5 Middle 8484 8.2 11000 8.6 General Secondary 12453 6.8 34311 13.5 Technical Secondary 13245 6.3 34101 17.3 Professional Secondary 16787 3.8 100828 18.2 Higher 20888 2.6 105888 10.0 Source: MEB; CREA Costs and Financina of PDEF. November 1999 Private Sector. The role of private service delivery will become increasingly important at the post-primary levels responding to demand at these levels. It is estimated that the proportion of students in private middle schools will increase from 27% to 33% of students, while at secondary levels, it will go from approximately 20% to 30% by the end of the first phase. The largest shift will be at higher education, where the private sector will take about 25% of students in 2003, up from 13% in 1998 Overall, the private education (investment and household fees) will account for approximately 0.7% of GDP compared to 0.4% in 1998. Poverty Dimension. Although the QEFA covers the entire education system quite comprehensively, the proposed policies for basic education are likely to have the most direct impact upon poverty reduction. Increasing primary education's share of recurrent expenditures to 44% by 2003 coupled with the adoption of a recruitment policy of hiring volontaire and contracted teachers will benefit children in rural areas and from the poorest households, where the GER is the lowest. Using multigrade schools in rural areas more extensively, targeting school construction to poor areas and the construction of small rural middle schools will respond to factors contributing to low demand for education by poor families. The provision of free textbooks will reverse a policy that in the past deterred children from the lowest quintiles from attending school. Special attention to the special needs of educating girls will aim to reduce the gap between girls' - 80 -  and boys' enrollment, drop-out, repetition and completion rates. Partial cost-recovery could have a negative impact on the demand for education, particularly at middle school level. The Government has decided to allow local school associations some say in determining school fees. This issue will be monitored in the first phase and hopefully will lead to a criteria based school subsidy system in later phases. Table 16: Primary enrollment rates by region 1998 - 2003. Region 1998 2000 2001 2002 2003 Dakar 87.97% 90.25% 91.42% 92.60% 93.79% Ziguinchor 87.00% 89.46% 90.71% 91.99% 93.28% Diourbel 29.13% 37.28% 42.17% 47.71% 53.97% Saint-Louis 62.03% 68.25% 71.59% 75.09% 78.76% Kaolack 40.06% 48.10% 52.71% 57.76% 63.29% Tamba 57.91% 64.59% 68.22% 72.05% 76.10% ThiZs 57.07% 63.84% 67.53% 71.42% 75.54% Louga 45.42% 53.18% 57.55% 62.28% 67.39% Fatick 46.20% 53.92% 58.25% 62.92% 67.97% Kolda 54.00% 61.08% 64.96% 69.09% 73.48% Sdndgal 58.61% 64.74% 68.13% 71.76% 75.66% Cost-effectiveness indicators: Cost-effectiveness. The policy to hire volontaire and contract teachers, grand- fathering civil servant teachers through attrition and retirement is the single most cost-effective policy that will be implemented under the QEFA. Studies carried out during preparation show that teacher status has no bearing on the quality of teaching. If the Government did not follow through with this change by converting volontaires/ contractual teachers to civil servants, itwould represent, on average FCFA 2.3 billion or 20% of the government's recurrent budget and thereby comprising the attainment of UPE by 2010. Other measures which will improve the cost-effectiveness of the program are reducing in half the training period for new teachers to 6 months for primary teachers one year for secondary teachers, and instead of the traditional I to 2 years for primary teachers. While detailed economic analysis was not done for the construction program, donors and government have agreed to adopt low-cost construction standards and local governments will be responsible for maintenance which will prolong the life of school buildings minimizing future rehabilitation and replacement costs. Finally, the policies aiming at improving the quality of education in secondary and middle schools were validated by a study done in preparation which concluded that improving the management of schools, the provision of books and increasing the proportion of mandatory hours that teachers actually taught were the most cost-effective policies to adopt. Under the QEFA, various initiatives will be evaluated for their cost-effectiveness, including early childhood development programs, adult literacy, community schools, national language teaching, various textbook provision schemes and private sector delivery of middle and secondary education services to guide decisionmakers about future policy decisions. Sensitivity Analysis. A detailed sensitivity analysis was carried out to analyze what impact changes in the policy package had on attaining program objectives. This analysis concluded that: (i) A continuation of past policies would result in a GER of 73% at the end of 2010 instead of UPE; (ii) The policy to recruit volontaires and contracted teachers, grand-fathering civil servant teachers through attrition and retirement plays a crucial role in meeting UPE within the budget constraints set. (iii) Allocating 50% of expenditures to primary education by year 2000 is a crucial policy for meeting the UPE objective. Limiting primary's share to 40%, (but implementing other policies ) would result in a primary GER of 88% by 2010. (However, the GER for secondary and middle school would be - 81 -  significantly higher.) Allocating 65% to primary could be politically unacceptable. (iv) The primary GER at the end of 2010 would be less than 80% if the current policy framework was extended. (v) Improved teacher utilization, reduction of supplementary teachers to 5% of primary teachers and redeployment of non-teaching teachers reduces unit costs significantly in the early years allowing for increases in non wage expenditures and reducing net hiring of teachers. (vi) A growth rate of 5% is a necessary condition (but not sufficient) for the Government but also local governments and households to mobilize needed resources. (vii) Implementing partial cost-recovery is essential to improving the equity incidence of public expenditures (allowing the intra-sectoral transfer of resources to primary) and the quality of expenditures at middle and secondary education. Risks. The main risks to the program are related to (i) economic growth being less than anticipated which would reduce resource availability of central and local government as well as households; (ii) incomplete implementation of major reforms with respect to teacher recruitment, cost recovery and other cost containment reforms related to teacher management. The growth scenario used to do the resource projections, is the medium growth scenario used by Government and other intemational institutions. If economic growth rates are significantly lower than anticipated, it would be necessary to revisit the financing plan in order to reach program objectives. This would require, increasing the level and share of resources to education or reducing program objectives. The Government is committed to implementing the various cost containment measures at the beginning of the program, in order to maximize program results in the short and medium term. The Government agreed during negotiations to prepare a detailed action plan laying out the various steps to involve all stakeholders in the implementation of policy reforms. Concerning the partial implementation of policy measures, this risk has already been minimized to a certain extent due to the high degree of local ownership of the program given the fact that the background studies have been carried out locally with wide discussion among Government officials. Policy reforms relating to the recruitment policy have been discussed and negotiated with unions although this has not been done in formal sense. The Government must, however, begin to engage teachers, students and parents in reforms related to cost-recovery, introduction of polyvalent teachers and other teaching changes and school management if these are to be successfully implemented. The implementation of cost containment measures will require decisive and continued leadership. Rapidly increasing GER in low-enrollment areas such as Diourbel, Louga and Kaolack will be a challenge. The QEFA ensures that the financial resources will be made available, Government must however, put its most committed and talented people who are willing to work with local authorities. Economic and sector work. The preparation of the QEFA was based on a substantive amount of economic analysis. Over the next three years additional studies are planned in order to adequately monitor and evaluate the financial and economic aspects of the sector expenditure program. This work will include; (i) developing the information systems needed to evaluate the internal and external efficiency of the QEFA; (ii) ensuring biannual updates for QEFA budget estimates and expenditures; (iii) carrying out studies on various issues such as the demand for education, cost-effectiveness of secondary and middle education, labor tracking studies for university and professional training, the impact of education on agricultural productivity and health; and (iv) training government staff in monitoring financial indicators and evaluation methodologies. The Government will also prepare an annual financial report for the PDEF which will provide an exhaustive summary of the financial execution of the PDEF, the experience with cost-recovery and make recommendations for improvement. - 82 -  Table 17 QEFA: Financial Performance Indicators Indicators 2000 2001 2002 2003 Education share of govemment's recurrent budget 33% 33% 33% 33% Primary as % of education recurrent budget 41% 42% 43% 44% Learning materials as % of primary budget 10% 13% 13% 13% Scholarships as % ofhigher education budget 14% 13% 12% 12% Household financing as % of publicmiddle school n.a 13% 13% 8.6% Household financing as % of secondary schools n.a 20% 21% 16% Household financing as % of higher education n.a 12% 14% 10% % of Middle Schools with school improvement plans 24% 50% 75% 90% % of Secondary Schools with school improvement plans 50% 75% 90% 100% Private sector expenditures as % of GDP Preparation of Annual Financial Reports Annual review and discussion of economic studies - 83 -  Annex 5: Financial Summary SENEGAL: Quality Education For All Program Years Ending (Senegal FY -- Jan/Dec) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Financing Required Project Costs Investment Costs 53.0 46.0 39.0 39.0 0.0 0.0 0.0 Recurrent Costs 174.0 183.0 192.0 201.0 0.0 0.0 0.0 Total Project Costs 227.0 229.0 231.0 240.0 0.0 0.0 0.0 Total Financing 227.0 229.0 231.0 240.0 0.0 0.0 0.0 Financing IBRDIIDA 3.5 12.5 17.5 16.5 0.0 0.0 0.0 Govemment 180.0 176.0 186.0 196.0 0.0 0.0 0.0 Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Provincial 3.0 3.0 3.0 3.0 0.0 0.0 0.0 Co-financiers 36.5 32.5 17.5 16.5 0.0 0.0 0.0 User Fees/Beneficiaries 7.0 8.0 10.0 11.0 0.0 0.0 0.0 Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Financing 227.0 229.0 231.0 240.0 0.0 0.0 0.0 Main assumptions: - 84 -  Annex 6: Procurement and Disbursement Arrangements SENEGAL: Quality Education For All Program Procurement A Country Procurement Assessment Review (CPAR) was conducted in July 1994. The findings of this review remain valid. In general, Senegal's procurement laws and regulations do not conflict with IDA guidelines. No special exceptions, permits or licenses need to be specified in Credit documents since Senegal's procurement practices allow IDA procedures to take precedence over any contrary provisions in local regulations. IDA-financed Works and Goods will be purchased in accordance with World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits (January 1995, revised in January and August 1996, September 1997, and January 1999). World Bank's Standard Bidding Documents will be used for all International Competitive Bidding procedure. National Competitive Bidding (NCB) advertised locally would be carried out in accordance with Senegal's procurement laws and regulations, acceptable to IDA provided that: (i) any bidder is given sufficient time to submit bids (four weeks); (ii) bid evaluation and bidder qualifications are clearly specified in the bidding documents; (iii) no preference margin is granted to domestic manufacturers; (iv) eligible foreign firms are not precluded from the competition; and (v) prior to issuing the first call for bids, a draft standard bidding document is submitted to IDA and deemed acceptable by it. The standard bidding document for NCB will be based on the World Bank's Standard Bidding Documents, with appropriate modifications for advertisement of the Invitation For Bids (which may be limited to the major national daily newspaper), the currency of the bid price and payment, applicable laws, etc. IDA-financed Consultant Services will be procured in accordance with the World Bank's Guidelines for the Selection and Employment of Consultants by World bank Borrowers, published in January 1997, revised in September 1997 and January 1999. Table A below summarizes the procurement arrangements by category of expenditure. Procurement methods (Table A) 1. Civil works. During phase I of the program (2000-2002), the construction program is mainly composed as follows: (i) construction of about 6,300 classrooms for basic education (6,000 for lower basic and about 300 for upper basic), including the replacement of 600 dilapidated classrooms beyond repair, according to standard design and specifications and criteria for resource allocation established by the DCES and approved by the Local Governments (municipalities/rural communities) through a Memorandum of Agreement to be signed by the MEN and the three associations of elected local officials; (ii) provision of latrines (1,000), water supply (600), and offices for primary schools lacking such facilities; (iii) repair/rehabilitation of approximately 2,800 dilapidated basic and secondary level classrooms; and (iv) construction of a Regional University Center (CUR) in Bambey. The IDA credit will finance the construction of 1,000 classrooms and rehabilitation of 600 classrooms for basic education (lower cycle) and the provision of latrines and wells for existing primary schools lacking such facilities. The remainder of the construction program for basic and secondary education is expected to be financed by the continuation, extension and/or initiation of support from the Government, the private sector, and other donors such as JICA, AFD, KFW, OPEC, AfDB, CIDA and NGOs such as Aide & Action, Plan International, Paul Gerand-Lajoie, etc. The Government has reached agreement with the three associations of Local Government elected officials (Presidents of Regional Councils, Mayors, and Presidents of Rural Communities) and a number of key partners (notably IDA and AFD) that the owner's responsibility (CMA) of the Local Governments and the MEN (as the case may be) should be delegated to a Contract Management Agency (CMA); the agreement includes the use common standard designs and unit costs, and a common mechanism for controlling construction quality and for the monitoring and evaluation - 85 -  procedures. School construction and rehabilitation. The program financed under the IDA credit is composed of a large number of small construction and rehabilitation contracts for schools largely scattered throughout the country, with contracts generally amounting to less than US$500,000 equivalent. In the event that any contract exceeds this threshold, the procedures governing International Competitive Bidding (ICB) will apply, as set forth in the World Bank's Guidelines. In such a case, the World Bank's standard document for works contracts to be procured under ICB: Droit Civil, dated January 1995 and including corrigenda Nos. 1 through 3, will be used. School construction and rehabilitation contracts with an estimated unit cost of less than US$500,000 equivalent, up to an aggregate amount of US$14.3 million equivalent will be procured by the CMA. The CMA will apply provisions of Schedule 3 of the Development Credit Agreement (DCA) for procurement procedures. Standard Bidding Documents for NCB and local shopping set-up in the most recent AGETIP Procedures Manual (dated...), which have been found acceptable to IDA, would be used for the school construction and rehabilitation program. Any changes and revisions in the Procedures Manual would be subject to IDA prior review. Contracts for small works estimated to cost less than US$30,000 per contract, up to an aggregate amount of US$0.5 million equivalent, would be procured under lump-sum fixed-price contracts awarded on the basis of quotations obtained in writing from at least three qualified local contractors. The invitation must include a detailed description of the works including basic specifications, the required completion period, a basic form of agreement acceptable to IDA, and relevant drawings when applicable. The contract will be awarded to the contractor whose submission is substantially conform, and who offers the lowest price quotation for the required work, provided he demonstrates that he has the experience and resources to successfully complete the contract. Most of these contracts, to be managed by the CMA, would be for works relating to minor repairs to classrooms in rural areas. 2. Goods. The goods to be financed under the IDA credit (totaling US$13 million equivalent) will be grouped into packages of at least US$100,000 equivalent to be procured through International Competitive Bidding in accordance with the World Bank's Guidelines. These goods include school supplies, reprinting of textbooks based on INEADE manuscripts (prior to implementation of the new strategy for supply of school textbooks described below), office furniture and equipment, computers, vehicles and spare parts, intended for primary and secondary schools and Teacher Training Schools (EFIs), as well as central and deconcentrated departments of the MEN. However, contracts for school supplies that have to be purchased on an annual basis, and for other goods and equipment locally available, with a unit value exceeding US$30,000 equivalent and which cannot be grouped together into packages exceeding US$100,000 equivalent and which are unlikely to be of interest to foreign suppliers because of their small size and the geographical dispersion of the delivery points, will be awarded on the basis of NCB in accordance with procedures acceptable by IDA, up to an aggregate amount of US$4.15 million equivalent. Small quantities of items such as office supply, consumable materials and spare parts normally considered to be standard items and which cannot be grouped together into packages of at least US$30,000 equivalent wi'l be purchased locally through local shopping based on price quotations obtained in writing from at least at least three eligible suppliers being asked in writing to provide quotations, provided that the aggregate amount of such contracts does not exceed US$0.1 million equivalent. Books and other instructional materials for classroom library-corners, schools and EFIs will be the subject of a list of eligible titles established by INEADE on the basis of recent catalogues and other documentary sources. On the basis of this general list, specific lists will be drawn up by the IDENs and consolidated by INEADE for procurement to be financed by IDA, the Nordic Fund or other partners. Purchases to be financed by IDA will be grouped into packages of at least US$100,000 equivalent and procured through International Competitive Bidding. Small purchases of books and instructional materials - 86 -  which cannot be grouped to make up lots of US$100,000 would be procured under National and International Shopping, provided that the aggregate amount of such contracts does not exceed US$0.3 million equivalent. 3. Textbooks for the lower cycle of basic education The MEN has decided to develop and implement a new policy of decentralized multiple choice with the objective to contribute, not only to raise the quality of the education service, but also to support the development of the national book-publishing industry, which is viewed as critical to ensuring the long-term sustainable supply of textbooks in all Senegalese schools. The textbooks for the lower cycle of basic education (formerly primary education) to be financed by IDA will be procured through an international competitive bidding procedure comprising four stages: (a) selection of titles at the central level; (b) selection of multiple titles at decentralized level; (c) central purchase of the selected books; and (d) delivery to the IDENS/schools. A specific module of the Manual of Procedures for the QEFA Program for textbooks will be developed by the INEADE. However, in view of the time that will be required to implement the new process, it is likely that only stages (a) and (b) can be carried out during the first phase of the PDEF corresponding to the QEFAProgram financed under the present IDA credit. (a) Selection of titles at the central level per subject and per grade, on the basis of which the IDENs will further make their selection, will be done centrally and managed by the DAGE. For the selection, potential bidders will be invited to submit for each title: (i) a sample of lessons, fully edited, illustrated, laid out, formatted and printed; (ii) the table of contents; (iii) the structure of the book as a whole; (iv) dummy; and (v) price quotations for a specified range of copies from 2,000 to 250,000. The selection will be based on the bidders' professional and financial capacity, the quality of sample lessons, and the prices quoted for a specified range of copies. The evaluation will lead to the selection of two or three different titles per subject and per grade (as specified in the bidding documents), corresponding to the offers which will be substantially responsive to the bidding documents and with the lowest evaluated bid price, provided that the bidders are also qualified to perform the contracts. Successful bidders will develop the titles and submit camera-ready copies to the Ministry/DAGE for approval. They will also supply a first print run of 2,000 copies for each title at the price quoted in their bid for this quantity. (b) Selection of multiple titles at decentralized level Prior to the selection at the decentralized level, the Ministry will inform each IDEN of the budget allocated to the IDEN for textbooks. This budget will be determined on the basis of the projected enrollment for the schools located in the IDEN's area of operations, and the estimated unit cost for each set of books per student will be based on the prices quoted by the bidders. INEADE will be responsible to disseminate the first print-run of each selected title to the IDENs for evaluation and selection by local committees. Selection committees will be chaired by the IDEN, and comprise experienced teachers and experts from specialized NGOs operating in the education sector in the region, representatives of local authorities, and Parents Association representatives as witnesses for transparency insurance. Selection by IDENs will be based on the quality of textbook, unit price, and the allocated textbook budget. (c) Central purchase of the selected books. The DAGE will calculate the quantities for each title and purchase the total amount from the concerned publishers at the price quoted by such publishers in their bids for the quantity in question. (d) Delivery to the IDENs/schools and central payment Publishers will deliver the textbooks to the IDEN's warehouses or the schools and receive certification of delivery from the IDENs or schools after each technical committee has verified that the deliveries conform to the results of the selection process. Each supplier will collect the acceptance certificates and submit them to the DAGE for payment. In - 87 -  cases where the books are not shipped directly to the schools but to the IDEN's warehouses instead, each IDEN will be responsible for forwarding the textbooks to the schools. The school committee, comprising representatives of the school's teaching staff and of the parents association, will provide a receipt to the IDEN. All receipts will be sent by the IDENs to the appropriate IA for regional monitoring purposes, and consolidated at the central level through the Information and Monitoring System, for central monitoring and reporting by the DPRE which will be responsible for producing the periodic reports on the textbooks component. Textbooks for the upper cycle of basic education and for secondary education will be procured off-the-shelf through selection of multiple titles per subject/grade, through a process similar to the above mentioned process for the lower cycle of basic education. 4. Consultant services. Consultant services to be financed by IDA (totaling US$8.9 million equivalent) would be for: (i) studies: architectural design, civil engineering services (including preparation of bidding documents and supervision of works), accounting system, school evaluation system, integrated computerized data processing system to track and analyze school data, financial management, monitoring and evaluation; (ii) CMA services; (iii) twinning arrangements with international institutions for knowledge transfer and technical assistance in the area of learning assessment, local languages, inservice training management and other educational areas, (iv) technical assistance in the area of skill development, vocational training, capacity building in management; (v) training; (vi) contracts with NGOs for services appropriate to their specific strengths; (vii) research contracts (other than research financed out of the FRU ); (viii) building MEN's capacity in education economics and used of the financial model of the education system, (viii) technical and financial audits. Consultant services will be procured in accordance with the Guidelines for Selection and Employment of Consultants by World Bank Borrowers (published in January 1997 and updated in September 1997 and January 1999). Standard World Bank documents -Standard Request for Proposal: Selection of Consultants, dated July 1997 and revised April 1998 and July 1999 - will be used whenever appropriate. Recruitment will be through competition among qualified firms short-listed on the basis of replies to a Request for Expression of Interest, in which the selection will be based on the Quality-and Cost-Based Selection procedure (QCBS). For financial audits (of a standard nature), the Least-Cost Selection would be most appropriate method. Services of lectures and small studies that can be provided by Individual Consultants, will be selected through comparison of qualifications among those expressing interest in the assignment or approached directly. When the estimated amount is greater than US$200,000 equivalent, a Request for Expression of Interest will be published in a national newspaper and in Development Business. Single-Source Selection will be exceptionally used. The management of construction works contracts and contracts for the supervision of these works will be contracted to AGETIP selected through Single-Source Selection (for an amount less to US$0.9 million equivalent), because these services performed by an international firm will be more expensive, and there is no other local firm with such an expertise in contract management. AGETIP will contract necessary consultant services for the conception and the supervision of works, in accordance with the procedures set up in Schedule 3 of the DCA for procurement procedures. The Research Center for Applied Economics ( CREA) has been selected through Single-Source Selection to help the MEN in monitoring, financial and economic evaluation of the QEFA, because the services of this university research center - that played a crucial role in the education public expenditures review, et developed the financial and economic simulation model for the program - assume a unique and exceptional role, and no consultant from the private sector can offer an appropriate alternative. The amount of this contract will be less than the equivalent of $150,000. 5. Grants. The MEN will provide grants in the following cases: (i) School Improvement projects, (ii) Literacy Subprojects, and (iii) Vocational Training projects. - 88 -  (a) School Improvement Projects. During the QFEA program, original methods of financing educational activities will be tested in certain regions, and small grants will be available for school projects in basic education (lower and upper cycles) and in secondary education. This component will be financed, as regards basic education, by the AfDB and the CFD in certain regions where those institutions operate, and by IDA. Each individual grant financed by IDA will amount less than US$2,000 equivalent, up to an aggregate amount of US$2.4 million equivalent. In parallel, the FAC will finance School Projects in three regions for middle and secondary education. The flow of funds, implementation and accounting arrangements of School Improvement Projects will be governed by a specific manual of procedures, the drafting of which has already been started during the program preparation phase. The manual will include a detailed description of: (i) the system for channeling resources to the decentralized level; (ii) eligibility criteria for school projects; (iii) a sample document for requesting financing for a school project; (iv) the system for appraising and approving requests for financing; (v) the disbursement system; (vi) the system for monitoring and supervising school projects; and (vii) evaluation and audit. Such has been the degree of coordination among the development partners that the proposed manual of procedures will be common to all the school projects, regardless of the source of the financing. The manual of procedures is being prepared by the MEN with CFD financing and in coordination with all of the development partners involved in order to ensure that it can be used for all sources of financing. Submission by the Borrower of a Manual of Procedures for School Improvement Projects acceptable to IDA is a condition for disbursement of the IDA funds in this category. (b) Literacy Subprojects. The IDA credit for the QEFA project will be used from the year 2000 on to finance adult literacy subprojects as a follow-up to the successful Female Literacy project (PAPF) financed under Credit 2873-SE since 1995. Each individual IDA-financed grant to subprojects will not exceed US$60,000 equivalent, up to an aggregate amount of US$11.8 million equivalent. The institutional arrangements and financing mechanisms for this QEFA/EQPT program component will, in accordance with the request of the Minister responsible for Basic Education and National Languages, be identical to those for the PAPF project. Literacy subprojects will continue to be executed by private literacy operators, under subproject contracts signed between such operators and AGETIP which is responsible for contract management, while the quality of the training provided is monitored and evaluated by the DAEB. The procedures for selection of operators, eligibility criteria for subprojects, and sample contracts are described in detail in the PAPF manual of procedures, which has been used satisfactorily since 1995 and which will be adjusted as necessary to enable it to be used for the QEFA program by the 4 main donors in this area: CIDA, KfW, IDA and GoS and to be in line with the decentralization process. Submission by the Borrower of the Manual of Procedures for Literacy Subprojects as adjusted for the QEFA program will be a condition for disbursement of the IDA funds in this category. (c) Vocational Training Projects. The IDA credit for the QEFA program will finance Technical Education and Vocational Training projects prepared and submitted by economic operators, professional bodies and/or vocational training institutions. The MEN plans to set up a Vocational Training Support Fund based on lessons learned from the Professional Training Project for Employment (Projet Formation Professionnelle pour I 'Emploi) financed by the FAC. This Fund would comprise a tripartite Administrative Board (Conseil d'Administration) including representatives of Ministries, Employers, and Employees, and an Executive Secretariat. Each individual IDA-financed grant for training projects will not exceed US$10,000 equivalent, up to an aggregate amount of US$500,000 equivalent. The eligibility criteria for beneficiaries, the mechanisms for evaluation and selection of training projects, and the mechanisms for payment, monitoring and evaluation will be laid - 89 -  down in a manual of procedures to be prepared in the course of the first year of the QEFA program by the MEN with the continuing support of the French FAC, in close collaboration with employer representatives in the Competitiveness and Growth Study Group (Groupe de Reflexion pour la Competitivite et la Croissance - GRCC). The French Cooperation have agreed to coordinate the various development partners in order to ensure that this Manual of Procedures will be compatible with the financing mechanisms employed by the various partners likely to contribute to the Fund. Submission by the Borrower of the Manual of Procedures for the Vocational Training Support Fund, deemed acceptable to IDA, will be a condition for disbursement of the IDA funds in this category, Table A: Project Costs by Procurement Arrangements (US$ million equivalent) 0 penlt itir ----E}; ory ,, t ICS N.8.. To;tai; |l Cost 1. Works 0.00 14.31 0.50 45.50 60.00 (0.00) (11.93) (0.42) (0.00) (12.34) 2. Goods 8.68 4.15 0.33 40.02 53.28 (7.23) (3.85) (0.15) (0.00) (11.24) 3. Consultants Services 0.00 0.00 8.89 15.28 24.15 (0.00) (0.00) (7.41) (0.00) (7.41) 4. Training 0.00 0.00 6.50 27.86 34.42 (0.00) (0.00) (5.42) (0.00) (5.42) 5. Grants 0.00 0.00 11.45 15.00 26.50 (0.00) (0.00) (9.68) (0.00) (9.68) 6. Operating Costs 0.00 0.73 7.22 718.94 727.00 (0.00) (0.22) (3.03) (0.00) (3.25) 7. PPF 0.00 0.00 0.65 0.00 0.65 (0.00) (0.00) (0.65) (0.00) (0.65) Total 8.68 19.18 35.54 862.60 926.00 (7.23) (16.00) (26.77) (0.00) (50.00) Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies 2'Includes: (i) civil works and goods to be procured through national shopping; (ii) consulting services, services of contracted staff of the project management office; (iii) training; (iv) grants; (v) incremental operating costs; and (vi) PPF reimbursement. 31Includes: (i) School Improvement Projects; (ii) literacy sub-projects, (iii) vocational training projects. Includes: (i) offices supplies, vehicle operating costs; (ii) travel and supervision costs; (iii) support staff, (iv) construction and equipment maintenance cost, but excludes salaries of civil-servants. - 90 -  Prior review thresholds (Table B) Contracts for works estimated above the threshold of US$200,000 equivalent, and contracts for supplies estimated above the threshold of US$100,000 equivalent, which are to be financed by IDA or by other donors administered by IDA, are subject to prior review by IDA. The first five contract for works and the same number for goods procured under NCB will be subject to prior review. Similarly the first five contracts for works and the same number for goods procured under National Shopping will be subject to prior review. The prior review requirement will apply to 66 percent of the total amount of contracts for goods and 100 percent of the amount of contracts for textbooks. For IDA-financed works contracts which are to be managed by a Contract Management Agency (CMA), an external auditor will be recruited to conduct a post review of the procurement procedures employed by the CMA, in accordance with terms of referece acceptable by the World Bank and included in the CMA's Manual of Procedures. The report of this external auditor will be transmitted to the AEN, the MEFP and IDA. For all other contracts estimated to cost less than the prior review threshold, Bank staff will conduct a selective post review of about one third of the contracts. The preliminary versions of the bidding documents for NCB will be reviewed and approved during the negotiations. Prior IDA review will not apply for Consultant's contracts with an estimated amount of less than US$100,000 equivalent with firms or for contracts with an estimated amount of less than US$30,000 equivalent with individuals. However, this exception will not apply to the terms of reference of such contracts, single-source selection of firms, assignments of a critical as determined by IDA regardless of their amount, or to amendments of contracts raising the contract value above the threshold for prior review. For consultancy contracts estimated above US$200,000, the envelopes containing the financial proposals may not be opened until after receipt of a statement of no objection from the Bank in regard to its technical evaluation. The Borrower shall retain the documentation pertaining to contracts for amounts below the prior review threshold for submission to auditors from the Bank's Resident Mission or IDA supervision missions for post review. Table B: Thresholds for Procurement Methods and Prior Review Contract Value Contracts Subject to Threshold Procurement Prior Review Expenditure Category (US$ thousands) Method (US$ millions) 1. Works Above ICB Prior IDA Review US$200,000 Between NCB Prior review of the first 5 US$30,000 and contracts; Post review of US$200,000 the following contracts; Aggregate amount under US$14.3 million Below US$30,000 OTHER Prior review of the first 5 contracts; Post review of the following contracts; Aggregate amount under US$0.5 million - 91 -  2. Goods Above ICB Prior IDA Review US$100,000 Between NCB Prior review of the first 5 US$30,000 and contracts; Post review of US$100,000 the following contracts; Aggregate amount under US$4.15 million Prior review of the first 5 Below contracts; Post review of US$30,000 OTHER the following contracts; Aggregate amount under US$350,000 3. ServicesTextbooks (a) preselection of titles at ICB Prior review of all bidding central level documents (b) Selection of multiple OTHER Prior review of selection titles at decentralized level reports of the first batch, post-review of the following. (c) Central purchase of OTHER Prior review of all contracts selected books 4. Grants for School Below US$2,000 Manual of Procedures for Prior review of the first 30 Improvement Projects the School Improvement Agreements, post review of Projects the 10% of the following Agreements - 92 -  5. Grants for Adult Below US$60,000 Manual of Procedures for Post review of 100% of the literacy the Literacy component Agreements training Projects Below US$ 10,000 Manual of procedures for Prior review of the first 10 Vocational and Technical Agreements, post review of Training Projects the 10% of the following Agreements 7. Consultant Services (a) Individuals: above Section V of the Directives Prior IDA review $30,000 Individuals - below Section V of the Directives Post review $30,000 (b) Firms above Quality and Cost Based Prior IDA review US$100,000 Selection (QCBS) Firms below Quality and Cost Based Post review US$100,000 Selection (QCBS) (c) Audit Least Cost Selection Prior IDA review Total value of contracts subject to prior review: US$8.7 Million Overall Procurement Risk Assessment Average Frequency of procurement supervision missions proposed: One every four months (includes special procurement supervision for post-review/audits) Procurement situation and proposed course of action. Local Senegalese procurement procedures for National Competitive Bidding are in need of improvement. A provisional version of a procurement code was drafted in 1997, but requires further work. As a result of earlier IDA-financed projects, the education sector has built solid experience with World Bank procedures. The DAGEs capacity in the procurement field was examined as part of the program preparation phase, resulting in the identification of areas where its capacities in this field require strengthening. In outline, the DAGE is to be strengthened by: (i) transfer to the DAGE of staff who have gained useful experience in the two PCUs for the PDRH2 and PAES projects; (ii) recruitment of consultant services specialized in procurement with mandate to build capacity of the regular DAGEs staff, and (iii) recruitment of additional civil-servants, as needed, according to the action plan to be submitted and agreed upon during negotiations. The DAGE will also benefit from ongoing support from the Contract Management Agency (CMA) for the management of construction contractor contracts and architectural services contracts, together with support provided by the yearly technical audits. A preliminary version of the Manual of General Procedures, including a section on procurement acceptable to IDA, has been prepared on behalf of an ad'hoc committee made up of the MEN, the MEFP and - 93 -  representatives of the associations of local elected officials, and is to be submitted to IDA during the negotiations. The necessary revisions will be discussed and agreed during a seminar bringing together the principal Senegalese authorities at both the central and the decentralized level and the major national and inter national development partners, and the fmnal version of the Manual of Procedures will be completed before the effective date of the credit. The Procurement Plan has been drawn up on the basis of the World Bank's June 1998 document entitled "Procurement Strategy and Planning." It covers the entire three-year program and will be updated yearly to take account of contracts awarded during the year just completed and changes to the planning schedule for the year ahead. Like the initial version, the yearly updates to the PPM will be submitted to IDA for review, and the Association's comments will be incorporated in updates During the negotiations the Government will provide IDA with the following documents: (i) draft procurement plan for the three-year program; (ii) the preliminary version of the Manual of General Procedures for the program, including the section on Procurement and the section on Accounting and Finance; (iii) a proposal for the selection of a consulting firm to train and monitor DAGE staff in financial management; (iv) a finalized action plan with detailed implementation schedule for DAGE reinforcement and (v) sample bidding documents for contracts for works and supplies under local competitive bidding. The Government will also provide assurances that: (i) it will use the Manual of General Procedures and all its specific sections, together with the special Manuals of Procedures for the administration of grants ( School Improvement Projects, Literacy Subprojects and Support Fund for Vocational Training); (ii) it will use the Bank's sample bidding documents for international competitive bidding, and the standard bid evaluation report; (iii) it will conduct a review of bidding procedures once a year in the course of the annual review conducted with IDA and the other donors; and (iv) that it will take the necessary measures to ensure that the various stages in the procurement process do not take longer than the times shown below: Stages in procurement process Maximum number of weeks Preparation of bidding documents 4 (6 for large contracts) Preparation of proposals by potential 4 (6-10 for ICB) bidders Evaluation of proposals 2 (4 for large contracts) Signing of contracts 2 Payments 4 Reinforcement of procurement capacities. A participative evaluation of DAGE and AGETIP capacities was carried out during the course of program preparation, following World Bank methodology developed to that end. The evaluation document is available in the program technical documents (see Annex 8). The resulting action plan, agreed upon during negotiations, is summarized below. Its implementation is a condition of effectiveness. - 94 -  Action Plan for Strengthening Procu rement Capacity Tasks Responsibility Due Date 1. Reorganization of the Procurement Division within the MEN March 31, 2000 DAGE 2. Appointment of the Procurement Division chief MEN March 31, 2000 3. Completion of the draft Manual of Procedures, including MEN/DAGE/DPRE April 15, 2000 program procurement procedures and identification of donor-specific procedures (Government, IDA, ADB, and others) 4. Joint review of the draft Manual of Procedures with all MEN/DAGE/DPRE April 15, 2000 stakeholders (MEFP, central and deconcentrated units of MEN, other concerned ministries, local collectivities, civil society including the main NGOs working in the sector, teachers unions, and the representatives of the Parents' Associations), particularly the section on procurement. 5. Completion of the final version of the Manual of DAGE/DPRE April 30, 2000 Procedures after the joint review. 6. Non-objection from IDA regarding the Manual of IDA May 10, 2000 Procedures 7. Adoption of the Manual of Procedures by the Government. MEFP May 15, 2000 8. Recruitment of the contract personnel to be transferred to DAGE March 31, 2000 the DAGE: the procurement specialist from the coordination unit of the PDRH2, the accountant of the PAES, both of whom are experienced in procurement, and the PAES secretary. 9. Additional recruitment of a procurement specialist through DAGE March 31, 2000 REI 10. Recruitment of civil service personnel as per the detailed DAGE April 30, 2000 action plan prepared by the DAGE (contract management, exonerations, control) 11. Installation of all staff in adequate offices with DAGE May 15, 2000 appropriate equipment. 12. Confirmation that required capacity is in place IDA Effectiveness 13. Training of Procurement Division personnel of the DAGE DAGEAIDA As soon as World in use of World Bank procurement procedures. Bank-sponsored training can be made available Thresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement Documentation" and contact the Regional Procurement Adviser for guidance. - 95 -  Disbursement Allocation of credit proceeds (Table C) The proposed IDA Credit will be disbursed over three years (from June 2000 through June 30 2003), with a closing date of December 31, 2003, to finance the first phase of an APL supporting the Ten-Year Education and Training Plan. The disbursements will be made in accordance with the World Bank's Disbursement Manual, the Implementation Plan for the Program and the Credit Agreement. The proposal for allocation of IDA Credit funds is given in Table C. Table C: Allocation of Credit Proceeds _ xpeniur Cateoy Am>"nt 1n USmWi,n Finaning P erentage (1) Works 11.10 I100% of amounts paid by CMA 95% of local expenditures (2) Goods 10.10 100% of foreign expenditures and 95% of local expenditures (3) Training and Consultants services 11.36 100% (4) Grants 0.00 100% (a) for School Improvement Projects 2.40 100% (b) for literacy subprojects 6.75 95% (c) for Vocational Training Projects 0.50 95% (5) AGETIP commission (literacy) 0.14 100% (6) Operating costs (a) for all costs except maintenance 1.10 95% (b) for maintenance expenditures 1.85 50% (6) PPF 0.65 (7) Non allocated 4.05 Total Project Costs 50.00 Total T5o.o Use of statements of expenditures (SOEs): All replenishment or reimbursement applications will be submitted monthly or when the SAs will be reduced by one-third, whichever comes first. All replenishment applications will be fully documented except for: (a) contracts of less than US$200,000 equivalent for works and goods; (b) US$ 100,000 equivalent for consulting firms; US$ 50,000 equivalent for individual consultants; and (c) grants, training and operating costs, which may be claimed on the basis of SOEs. SOE documentation will be retained at the program implementation unit for review by World Bank Resident Mission or IDA supervision missions. Special account: IDA financing for expenses eligible under the credit will be deposited to 2 distinct Special Accounts: The MEN Special Account (MEN-SA) will be opened by the MZEN in a commercial bank for all expenditures except those linked to the literacy component, i.e. Categories 1, 2, 3, 4(a), 4(c), 5(a) and 5(b). - 96 -  It will be managed by the DDI of the MEFP, and will receive an initial deposit from IDA equivalent to 4 months of eligible expenditures estimated at 2.4 billion FCFA. However, the authorized amount will not exceed 1.2 billion FCFA until the total amount of withdrawals reaches the equivalent of SDR 10 million. In parallel: (a) a central advance account (RAC) for the program will be opened in a commercial bank and managed by the DAGE to cover recurrent expenditures or expenditures of a particularly urgent nature. The RAC will be financed by the DDI from the MEN-SA and maintained at a ceiling of 150 million FCFA estimated to cover 3 months of eligible expenditure; (b) in each regional capital, a Regional Advance Account (RAR) will be opened in a branch office of a commercial bank, and managed by the IA in order to finance expenditures eligible for RAR. Each RAR will be financed by the DDI from the MEN-SA and maintained at a ceiling of 7.7 million FCFA estimated to cover 3 months of eligible expenditures. The DAGE will be responsible to keep parallel accounting of the RAC and the MEN-SA, while the IA will maintain the accounts of the RAR which it manages. The DAGE will ensure on a monthly basis: (i) the replenishment of the RAC; (ii) the collection and control of the supporting documentation for expenditures from the RAR for their replenishment; and (iii) the preparation of replenishment requests for the MEN-SA which will be controlled and transmitted to IDA by the DDI. The use of advance accounts for MEN budget funds is already a well established practice for the DAGE and other MEN directorates, as well as for the IA , the IDEN and for secondary schools. The procedures governing the flow of funds between the MEN-SA, the RAC and the RARs will be developed in the Manual of Procedures, for which the final version will be submitted for IDA's approval as a'condition of credit effectiveness. The AGETIP Special Account (AGETIP-SA). IDA funds for expenditures related to the literacy sub-project (Category 4(b)) will be managed by AGETIP in the identical manner as it manages the funds of IDA Credit 2873-SE of the PAPF. For this component, AGETIP will open a Special Account in a commercial bank. It will be managed by AGETIP and will receive an initial deposit of 700 million FCFA. However, the authorized amount will not exceed 350 million FCFA until the total amount of withdrawals reaches the equivalent of SDR 2.5 million. Procedures related to the flow of funds will be described in detail in the Manual of Procedures, for which the final version will be submitted for IDA's approval as a condition of credit effectiveness. Government Funds. For program execution, the Government has agreed to put a minimum amount of 120 million FCFA per year from the BCI into the MEN budget to cover the share of investment and operating expenditures not financed by IDA or other donors. The Government has also agreed to deposit in a Project Account opened in the Public Treasury an annual amount of 25 millions FCFA representing the amount necessary to cover recurrent expenditures, at the latest by February 28 each year. At the time of negotiations, the Government agreed to make an initial deposit of 25 million FCFA in the Project Account, which is a condition of IDA credit effectiveness. This Project Account will be an advance account managed by the DAGE. For other Government counterpart expenditures (95 million FCFA) the DAGE will the ordonnateur des depenses; these expenditures will be paid from the BCI according to the usual payment procedures. See Annex I for additional development of the financial management of the program, including financial system evaluation, accounting, preparation of financial reporting, audits, financial staff, LACI requirements, and the action plan for financial capacity-building within the DAGE. - 97 -  Annex 7: Project Processing Schedule SENEGAL: Quality Education For All Program SProject Sched ule:::tt X_X_____________________f 0 L S ' Time taken to prepare the project (months) 16 24 First Bank mission (identification) 04/01/98 04/01/98 Appraisal mission departure 09/15/99 10/19/99 Negotiations 02/14/2000 02/18/2000 Planned Date of Effectiveness 04/15/2000 04/15/2000 Prepared by: Ministry of National Education Preparation assistance: Government financing of preparation teams including NGO, private sector and development staff. Bank staff who worked on the project included: Name Speciality Robert S. Prouty Pr. Education Specialist Linda English Human Resources Economist Susan Opper Education Specialist Bettina Moll Education Specialist Serge Theunynck Sr. Implementation Specialist Habibata Thienta Education Specialist Alassane Diawara Sr. Operations Officer Ahmadou Moustapha N'Diaye Financial Analyst Sakhevar Diop Textbook Specialist Donald Bundy School Health Specialist Luis Benveniste Education Specialist Aminata Maiga Education Specialist Tshiya Subayi Operation Analyst Myrina Mccullough Program Assistant Elsie Lauretta Maka Team Assistant - 98 -  Annex 8: Documents in the Project File* SENEGAL: Quality Education For All Program A. Project Implementation Plan Ministere de I'Education Nationale, Programme D&ennal de V 'Education et de la Formation (PDEF), Manuel de Procedures Generales (version provisoire), f6vrier 2000. Ministere de ]'Education Nationale, Direction de l'Administration Generale et de l'Equipement (DAGE), Programme D&cennal de l 'Education et de la Formation (PDEF), Manuel de Procedures Administratives, Financieres et Comptables, Janvier 2000. Ministere de l'Education Nationale, Direction de la Planification et de la Reforme de l.'Education), Programme D&cennal de 1 'Education et de la Formation (PDEF), Tableaux detailles des coits << COSTAB )) (sixieme Draft-PDEF 43), 27 janvier 2000. Minist&re de I'Education Nationale, Direction de I'Administration Generale et de l'Equipement (DAGE), Programme D&cennal de V 'Education et de la Formation (PDEF), Premiere Phase - Programme Education de Qualite Pour Tous (EQPT) Plan de Passation des Marches - Periode 1999-2003, Ministere de ]'Education Nationale, Direction de la Planification et de la Reforme de I'Education, Programme Decennal de l 'Education et de la Formation (PDEF), Referentiel pour la Reforme - Catalogue des mesures, Janvier 2000. Ministere de I'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). Termes de Reference de la sous-composante Enseignement de la Lecture, 1 er Draft (Seynabou Gueye). (1999) Ministere de l'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). (1999). Termes de Reference de la Sous-composante Experimentation de l'enseignement en langues nationales a l'ecole elementaire, 2eme Draft. Ministere de I'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). (1999). Termes de Reference de la Sous-Composante Education Speciale. Ministere de I'Education Nationale, INEADE. Elements pour la mise en place d'un systeme permanent d'evaluation et de suivi des apprentissages. (1999). Ministere de l'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). Termes de Ref&ences de la Sous-composante Qualite et Gestion des Multigrades, ler Draft. (1999). Minist&re de I'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). Termes de References de la Sous-composante Conception d'initiatives speciales pour la riduction des redoublements et abandons scolaires, 1 er Draft.(1999). Ministere de I'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE). Termes de References de la Sous-composante Formation des enseignants, 2eme Draft.(1999). - 99 -  Ministere de l'Education Nationale, Direction de l'Education Prescolaire et de rEnseignement Elementaire (DEPEE). Rapport du sPminaire sur laformation des enseignants.(1 999). Ministere de l'Education Nationale, DEPEE, DPRE, DEMSG. Rapport General de lAtelier national sur les projets d'6cole et les projets d'etablissement. (1999). Ministere de l'Education Nationale. Projet de Lettre de Politique Generale pour le Secteur Education/Formation.(1999). Ministere de l'Education Nationale. Programme Decennal de 'Education et de la Formation (PDEF), 2eme Draft.(1999). O'Loughlin, Patrick . The Quality Education For All Project in Support of the Ten Year Education and Training Program, Senegal: Recommendations for the NDF Financed Special Needs Education Component, Nordic Development Fund.(1999). Newton, Diana. Rapport Preliminaire: Approvisionnement Durable en Materiel Didactique au Senegal: Projet Education de Qualite pour Tous, Nordic Development Fund and Newton Smith International Ltd. (1999) Ministere de l'Education Nationale. Cabinet du Ministre delegue charge de l'Education de Base et des Langues Nationales. Juin 1999. Revue a mi-parcours du PAPF: Rapport Bilan 1995-1999. Minist&re de l'Education Nationale. Cabinet du Ministre delegue charge de l'Education de Base et des Langues Nationales. Juin 1999. Revue a mi-parcours du PAPF. Audit Strategique pour le Developpement d'un Programme de 40.000 Auditeurs Periode 1999-2001. Ministere de lEducation Nationale. Cabinet du Ministre de1lgue charg6 de l'Education de Base et des Langues Nationales. Juin 1999. Revue a mi-parcours du PAPF: Etude sur les Experiences Pilotes de Post-Alphabetisation des Opierateurs du PAPF. Minist&re de l'Education Nationale. Cabinet du Ministre delegue charge de l'Education de Base et des Langues Nationales. Juin 1999. Revue a mi-parcours du PAPF: Rapport sur les Journaux Regionaux Ecrits en Langues Nationales. Ministere de l'Education Nationale. Cabinet du Ministre del6gue charge de l'Education de Base et des Langues Nationales. Septembre 1999. Revue a mi-parcours du PAPF. Rapport General sur la decentralisation des programmes d'alphabetisation. Ministere de l'Education Nationale. Cabinet du Ministre delegu6 charge de l'Education de Base et des Langues Nationales. Janvier 2000. Le Sous-Secteur de l'Education Non-Formelle dans le PDEF. Ministere de l'Education Nationale. Cabinet du Ministre de1lgue charge de l'Education de Base et des Langues Nationales. Direction de I'Alphabetisation et de l'Education de Base. Juin 1999. Revue a mi-parcours du PAPF. Couits Estimatifs des Programmes du non-formal 1999/2000 a 2009/2010. Ministere de l'Education Nationale, Ministere de la Famille de l'Action Sociale et de la Solidarite Nationale, Agence d'Execution des Travaux d'Interet Public. Septembre 1999. Etude sur le Developpement de la - 100-  Petite Enfance. Ministere de l'Education Nationale, Ministere de la Famille de l'Action Sociale et de la Solidarite Nationale, Agence d'Execution des Travaux d'Inter8t Public. Novembre 1999. Etude de la FaisabilitW de Centres communautaires DPE. Ministere de l'Education Nationale, Direction de l'Education Prescolaire et de l'Enseignement Elementaire (DEPEE) fevrier 2000. Description du Secteur Developpement de la Petite Enfance: Resultats de l'atelier sur le cadre logique du programme DPE du Senegal et le dispositif de gestion de la composante DPE du PDEF. Ministere de l'Education Nationale/DPRE: Annuaire Statistique 1998/99. B. Bank Staff Assessments Banque Mondiale (1999). Education de Qualite Pour Tous : Aide-memoire de la mission du 3 au 15 octobre 1999. IDA, Assessment of Agency's Capacity to Implement Project Procurement - Setting of Prior Review Thresholds - Procurement Supervision Plan World Bank. (1997). Memorandum of the President of The International Development Association to the Executive Directors on a Country Assistance Strategy of The World Bank Group for The Republic of Senegal. World Bank Discussion Paper. (1993). Social Infrastructure Construction in the Sahel, No. 200. C. Other Senegal, Ministry of Education, Public Expenditure Reviewfor the education sector 1992 -1997, September 1998 CREA, Financing of Education in Senegal, mimeo paper given at ADAE Conference in Abidjan 1999 A. Daffe, CREA, Benefit Incidence Analysis of Education Expenditures in Senegal and the Demandfor Education; 1992 and 1994" August 1994 A. Aziz, CREA, Cost-Effectiveness Analysis of Middle and Secondary Schools in Senegal CREA, 2000 CREA, Simulation Model of the Senegalese Education Sector, 1999 Senegal, Ministry of Education and CREA, Cost Estimates andfinancing of QEFA November 1999 Study on the establishment of the Agence d 'Ex&cution des Travaux d 'Infrastructures et d 'Equipement Scolaires, Agency for the Performance of Infrastructure and School Equipment Work (AGIES), Provisional Report No 1, BERGES (Bureau d'Etudes et de Realisation en Gestion), MEN/DCES, October 1999. *Including electronic files - 101 -  Annex 9: Statement of Loans and Credits SENEGAL: Quality Education For All Program Difference between expecte( and actual Onginal Amount in US$ Millions disbursements Project ID FY Borrower Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd P051610 1998 Senegal AGEXPORT PROMOTION 0.00 7.96 0.00 6.72 2.29 -0.28 P002367 1999 Senegal AGR.SRCVES&PROD.ORGS 0.00 27.16 0.00 27.16 8.68 0.00 P035615 1995 Senegal COMM NUTRITION 0.00 15.73 0.00 2.10 4.26 4.29 P041567 1997 Senegal ENDEMIC DISEASES 0.00 14.52 0.00 13.05 7.44 0.64 P051357 1998 Senegal ENERGY SEC. ADJ. 0.00 99.51 0.00 74.63 73.95 0.00 P002373 1996 Senegal HIGHER EDUC I 0.00 24.83 0.00 12.96 -1.25 0.00 P002369 1998 Senegal INTEGR.HEALTH S.DEV. 0.00 48.27 0.00 38.71 16.66 0.00 P057996 2000 Senegal NAT.INFRA.PROGRAM 0.00 27.57 0.00 27.57 0.00 0.00 P035621 1996 Senegal PILOT FEMALE LITERAC 0.00 11.74 0.00 5.26 -1.60 0.00 P002376 1995 Senegal PRIV.SCTR.CAP.BLDG 0.00 10.76 0.00 4.54 4.63 2.59 P046648 1997 Senegal REGIONAL POWER 0.00 10.36 0.00 5.98 5.30 0.00 P046768 1997 Senegal SUST.PART.ENGY.MGMT. 0.00 5.11 0.00 4.16 2.38 0.00 P002366 1999 Senegal TRANSPORT II 0.00 86.23 0.00 84.66 -0.07 0.00 P002365 1998 Senegal URB DEVT & DECEN PRO 0.00 74.23 0.00 62.68 22.90 0.00 P044383 1997 Senegal URBAN TRANS REF TA 0.00 6.59 0.00 3.20 2.52 0.00 P002346 1995 Senegal WATER SECTOR 0.00 85.57 0.00 56.90 64.29 58.83 P067496 2000 Senegal Y2KNATIONALACTIONPLAN 0.00 10.09 000 10.09 0.00 0.00 SUPPORT PROJECT Total: 0.00 566.23 0.00 440.37 212.38 66.07 -102 -  SENEGAL STATEMENT OF IFC's Held and Disbursed Portfolio 3 1 -Jul- 1 999 In Millions US Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1995 AEF Acajoux Htl 0.71 0.00 0.00 0.00 0.71 0.00 0.00 0.00 0 AEF Bulwer 0.00 0.00 0.19 0.00 0.00 0.00 0.19 0.00 1996 AEF Carosa Farm 0.00 0.09 0.32 0.00 0.00 0.09 0.32 0.00 1999 AEF Dargle Timbr 0.37 0.00 0.00 0.00 0.37 0.00 0.00 0.00 1997/98 AEF E.R. Medical 0.00 0.18 0.00 0.00 0.00 0.18 0.00 0.00 1997 AEF Erand Hotel 0.00 0.40 0.80 0.00 0.00 0.40 0.80 0.00 1999 AEF FOXTROT MEAT 0.81 0.00 0.00 0.00 0.41 0.00 0.00 0.00 1998 AEF Green Charc 0.00 0.09 0.89 0.00 0.00 0.09 0.89 0.00 1999 AEF IHS Techno 0.63 0.00 0.65 0.00 0.63 0.00 0.65 0.00 1997 AEF Innoventions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 AEF Lesedi Hosp 0.00 0.00 0.19 0.00 0.00 0.00 0.19 0.00 1998 AEFNSAPIC 0.00 0.00 0.73 0.00 0.00 0.00 0.16 0.00 1998 AEF Roodepoort 0.00 0.00 0.41 0.00 0.00 0.00 0.41 0.00 1996/97/98 AEF SERT 0.16 0.00 0.00 0.00 0.16 0.00 0.00 0.00 1996 AEF Sea Harvest 0.70 0.00 0.00 0.00 0.70 0.00 0.00 0.00 1998 AEF Sordale 0.40 0.00 0.00 0.00 0.40 0.00 0.00 0.00 1996 AEF Wip Motors 0.00 0.33 0.00 0.00 0.00 0.33 0.00 0.00 1995/96/99 AFLIFE 0.00 5.94 0.00 0.00 0.00 5.94 0.00 0.00 1980 BHS 0.00 0.46 0.00 0.00 0.00 0.46 0.00 0.00 1995 Beau Vallon 2.58 0.00 0.00 0.00 2.58 0.00 0.00 0.00 1996/98 Cashbank 10.05 0.00 0.00 0.00 6.05 0.00 0.00 0.00 1999 Energy Afr Ltd 0.00 38.02 0.00 0.00 0.00 38.02 0.00 0.00 1997 GTI Dakar 12.97 1.64 0.00 10.77 4.76 0.87 0.00 5.75 1981/88 ICS 0.60 0.00 0.00 0.00 0.60 0.00 0.00 0.00 1998 Nouvobanq 10.00 0.00 0.00 0.00 8.25 0.00 0.00 0.00 1992 PTD Limited 0.95 0.00 0.00 0.62 0.95 0.00 0.00 0.62 1995 SACGF 0.00 4.09 0.00 0.00 0.00 2.10 0.00 0.00 1995 SAFCF 0.00 2.06 0.00 0.00 0.00 2.06 0.00 0.00 1995 SAFFM 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 SAPEF 0.00 35.00 0.00 0.00 0.00 5.97 0.00 0.00 1998 SEF SENTA 0.30 0.00 0.00 0.00 0.30 0.00 0.00 0.00 SOGECA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994/96 Sierra Rutile 1.86 0.00 0.00 0.00 1.86 0.00 0.00 0.00 1992 Total Portfolio: 43.09 88.30 4.18 11.39 28.73 56.51 3.61 6.37 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 1999 CDS 13500.00 2350.00 2350.00 0.00 1998 GTiDakarlncr. 3113.26 0.00 219.96 0.00 1998 Tolsa-Thies 3000.00 0.00 900.00 0.00 Total Pending Commitment: 19613.26 2350.00 3469.96 0.00 -103 -  Annex 10: Country at a Glance SENEGAL: Quality Education For All Program Senegal at a glance 03/20100 Sub- POVERTY and SOCIAL Saharan Low- Senegal Africa incorne Development diamond- 1999 Population, mid-year (millions) #REF! 628 3,515 Life expectancy GNP per capita (Atlas method, US$) #REF! 480 520 GNP (Atas method, USS bilrions) ,. 304 1.844 Average annual growth. 1993-99 Population (1%D) 2.7 2.6 1.7 Labor force (%) .. 2.6 1.9 GNP j Gross perprmy Most recent estimate (latest year available, 1993-9) capita enrollment Poverty (% of population below national povery line) . Urban populaton (% of total population) 45 33 31 Life expectancy at birth (years) 52 51 63 Infant mortality (per 1, 000 lIe births) .. 91 69 Child malnutrition (% of children under 5) 22 Access to safe water Access to safe water (% of population) 51 47 74 Illiteracy (% of population age 15+) 67 42 32 Gross prmary enrollment (%'of school-age population) 66 7 108 Senegal Male 71 84 113 Low-inrome group Female 57 69 103 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1979 1989 1998 1999 Economic ratios' GDP (US$ billions) 2.8 4.6 4.7 5.0 Gross domestc investmentfGDP Trade Exports of goods and services/GDP Gross domestic savings/GDP Gross national savings/GDP . .. Current account balance/GDP , m Interest payments/GDP Dms (is Investment Total debt/GDP 40.8 70.7 71.0 65.5 Savmgs I Total debt servicelexports 15.2 26.6 9.7 9.0 Present value of debttGDP Present value of debt/exports Indebtedness 197949 1989-99 1998 1999 1999-03 (average annual growth) GOP 2.9 3.0 5.7 5.1 4.8 Senegal GNP per capita -0.1 0.6 3.9 2.4 2.1 Lowincome group Exports of goods and services 3.0 2.4 5.2 6.0 6 1 STRUCTURE of the ECONOMY __= 1979 1989 1998 1999 GrowthofInvestmentandGDP(%) (% of GOP) Agriculture l o. Industry.. .... Manufacturing Services - 5 " S 9 Se 91 Private consumption . -1 -0 General govemment consumption _. .GDI --*--GDP Imports of goods and services 197949 1989-99 1998 1999 Growth of exports and Imports (%) (average annual growth) Agrculture 1.8 1.6 -1.7 6.1 15T Industry 4.2 4.3 8.8 7.7 10 l Manufacturing 4.6 2.6 7.6 4.8 5 Services 3.0 3.1 7.1 3.9 Private consumption 2.2 3.0 2.8 3.7 1 94 S /9 General govemment consumption 3.4 -1.7 3.2 4.7 to Gross domestic investrnent 4.1 3.5 7.8 9.4 Imports of goods and services 1.7 0.7 8.0 6.6 Exports e Irporls Gross national product 2.8 3.4 6.7 5.1 Note: 1999 data are preliminary estimates. The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. - 104 -  Senegal PRICES and GOVERNMENT FINANCE 1979 1989 1998 1999 Inflation (-) DomestUc prices (% change) 4 Consumer pnces 91 0.4 1.1 2.0 3- Implicit GDP deflator 917 0.9 2.2 1.9 20- Government flnance (% of GDP, includes cu,rent grants) . Current revenue 18.4 17.8 17.3 17.1 -.0- 94 95 96 97 sa 99 Current budget balance .. -0.1 5.8 5.0 GDP defator e C Overall surplus/deficit .. -2.9 -2.6 -4 0 TRADE (USS millions) 1989 1998 1999 Export and import levels (US$ mill.) Total exports (fob) 478 759 965 1 017 1600 Groundnut ISO 54 56 1 400 - Fish 70 25 31 Manufactures .. 167 265 281 Total imports (cif) .. 1134 1376 1 493 Food .. 334 311 325 400 - Fuel and energy 15S 179 193 200 * Capital goods 173 211 245 o _ 93 94 95 96 97 98 99 Exportpnceindex(1995=100) .. 104 104 113 Import price index (1995=100) .. 83 94 99 * Exports q imports Termsoftrade(1995=100) 127 111 114 _ BALANCE of PAYMENTS (US$ millions) 1979 1989 1998 1999 Current account balance to GDP (%) Exportsof goods and services 816 1255 1538 1621 0 Imports of goods and services 1 104 1 514 1 844 1 965 2 Resource balance -288 -260 -307 -344 4-- Net income -79 -205 -36 -39 Net current transfers -48 16 53 31 I- Current account balance -415 -448 -289 -352 . Financing items (net) 265 543 312 426 -