Senegal - Primary Education Development Project

DOT efU t The World Bank FOR OFFICIAL USE ONLY c6f. /)3-~ & Report No. P-4343-SE MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 10.2 MILLION TO THE REPUBLIC OF SENEGAL FOR A PRIMARY ED[TCATION DEVELOPMENT OPERATION September 16, 1986 I This document bas a restricted distribution and may be used by recipients only in the performance of their officiai dutns. Its contents may not otherwise be disclosed without Worid Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1.0 = CFAF 360 CFAF 1 million - US$2,778 MEASURES 1 m = 1.09 yd 1 m2 = 10.76 sq yd 1 km2 = 0.38 sq mi FISCAL YEAR SCHOOL YEAR July 1 - June 30 September - June  FOR OFFICLAL USE ONLY MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPHENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF SENEGAL FOR A PRIMARY EDUCATION DEVELOPMENT OPERATION 1. The folloving report on a proposed development credit to the Republic of Senegal for SDR 10.2 million (US$12.0 million equivalent) is submitted for approval. The proposed credit would be on standard TDA terms and vould assist in financing an operation which, vithin the framework of the Goverrmentts structural and sectoral adjustment programs, would help improve the cost- effectiveness of education resources and strengthen the institutions responsible for education quality and resource management. 2. Background. Despite considerable progress in expanding education since Senegal's independence, the relationship between results achieved and resources deployed has been uneven. In 1984, adult literacy and primary school enrollments vere below the median for West Africa: 28% versus 34%, and 52% versus 66%, respectively. In the same year, education consumed 25% of the Government's recurrent budget and the per student cost in primary education vas the fourth highest in West Africa: US$114, compared to the regional average of US$84. Recognizing that a broader base of literacy and numeracy is an essential condition for sustained socio-economic development, the Government aims to achieve universal primary education by the year 2000. To advance towards this goal, the Government vill need to reallocate resources within the sector and significantly improve the efficiency of resource use. 3. The two major factors that impede the development of primary educa- tion are the relatively high cost of its main inputs and anomalies of resource allocation in the sector. At the primary level, high teacher salaries, low student/teacher ratios in rural areas, excessive administrative staff/teacher ratios, and high classroom construction costs, due to reliance on imported materials and inappropriate designs, contribute to the high unit costs. Another factor in the high cost is the low internal efficiency resulting from: (a) inadequate teaching skills and unduly academic curricula; (b) an inspector- ate staff who lack the physical means to conduct school visits, up-to-date knovledge of classroom techniques and authority to impose sanctions for un- satisfactory teacher performances; (c) shortages of relevant textbooks and teacher guides; and (d) inadequate classrooms and furniture. At the post- secondary level, equity and efficiency issues stand out. In 1985, 19% of the education budget was consumed by 2% of the higher education age group. Of special concern are the size and avard of fellovships and subsidies for student services, whereby criteria such as academic performance, labor market require- ments, and cost efficiency are not always applied. Righer education also has low internal efficiency: only one out of five students graduates,'and on average it takes 7-12 years to complete the four-year-cycle. Low student! teacner ratios at civil service training schools resulting from constrained public service hiring further contribute to the high unit costs as do the technical weakness of the central, regional and local institutions in resource management and quality improvement. This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization.  -2- 4. Objectives of the Operation. The overall objective is to assist the Government, vithin the framevork of its structural adjustment program, to accelerate the qualitative and quantitative development of primary education. To this end, the operation vould help: (a) support a phased sectoral adjust- ment program; (b) develop the planning, budgeting and cost-control capacitv of the Ministry of National Education; and (c) improve teacher effectiveness, the efficiency of primary school inspectors, and the relevance and availability of textbocks. 5. Description of the Operation. The operation, to be implemented over an eight-year period, vould foecus on the regions of Louga, Diourbel and Fatick. These three regions comprise 25% of the total population and have the lowest primary enrollment rates (an average of 33% compared to 54% for Senegal). The operation vould support measures aimed at lowering unit costs by improving the efficiency of resource use and at expanding primary education, vithout additional public resources, by restructuring intrasectoral budget allocations. At the primary level, the main features of this adjustment program are to: (a) increase the ratio of associate teachers ("instituteurs adjoints") to more highly paid teachers ("instituteurs") from about 1:1 to 4:1 as of the 1986/87 school year; (b) redeploy into primary classrooms 400 primary school teachers presently in administrative posts (200 during 1986/87 and 1987/88, and the remaining 200 during 1988/89 and 1989/90); and (c) introduce multigrade and double-shift systems in appropriate classrooms nationvide as of 1989/90. At the post-primary level, the program includes measures aimed at reducing ineffi- ciencies to contain expenditures vithout adversely affecting quality and equity of education, and at reallocating the funds thus made available to primary edu- cation. Specifically, these measures consist of: (a) reduction of the fellovship budget in real terms from its 1985/86 level by 8% in 1987/88 and 3.0% p.a. thereafter through 1994/95; (b) reduction of indirect subsidies to University of Dakar Campus Services in real terms from the 1985/86 level by 8% p.a. as of 1987/88 through 1994/95; (c) introduction of cost-recovery systems, including student loans; (d) consolidating specialized civil service schools to increase student/teacher ratios to be agreed with IDA following a study to be conducted in 1987, and doubling the student/teacher ratio in teacher training colleges by 1988/89; and (e) establishing ceilings in real terms on the annual budgetary growth rates of central administration (1% p.a.), secondary education (1.5% p.a.), and higher education (1% p.a.) between 1987/88 and 1993194. 6. In order to minimize primary school replacement needs and reduce construction costs through improved planning and budgeting, the operation would create a Physical Facility Management Division; rehabilitate 100 classrooms; establish a preventive maintenance system and train the staff of all primary schools to ensure regular upkeep of facilities. Additionally, the operation would help construct 400 low-cost/low-maintenance classrooms, using local desigus. materials and labor, under cost-sharing arrangements with the com- munities. The internal efficiency and relevance of primary education would be lmproved through better-focused teacher training; development of curricula relevant to national needs, combined with teacher and school administration support and improved resource management at the regional and local levels; and development of a textbook production, procurement and distribution capability. Further, the operation would strengthen the cipacity of the Directorate of Studies, Human Resources and Planning to maintain reduced unit costs, implement long-tern sectoral planning and carrv out the necessary resource allocations within the sector.  - 3 - 7. The total cost of the operation is estimated at US$19.6 million equivalent, with a foreign exchange component of US$12.2 million (62%). The operation would be cofinanced by the African Development Bank. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and disbursement, as well as the disbursement schedule, are given in Schedule B. A timetable of key processing events and the status of Bank Group operations in Senegal are given in Schedules C and D, respectively. The map showing the project locations is also attached. The Staff Appraisal Report, No. 6179-SE dated September 9, 1986, is being distributed separately. 8. Rationale for IDA Involvement. IDA's sector strategy suppcrts the high priority given by the Government to its educational reform efforc, whose basic objectives are to create an education system that is equitable, efficient and responsive to national needs. Three major goals are: (a) expanding access to primary education and improving its quality and relevance; (b) strengthening the institutional structure; and (c) using existing human and physical resources more efficiently. This would be the first Bank Group financed edu- cation operation in Senegal in support of the educational reform. It addresses the needs of the first phase of a full-scale adjustment program that would re- structure education financing and develop cost control mechanisms. In this context, the operation falls within the objectives of the Government's structural adjustment program as vell as of the second IDA structural adjustment credit. 9. Agreed Actions. The Government has agreed to assess, jointly with IDA, progress in implementing the proposed adjustment measures during two reviews whose timing would be linked to the second and third phases of the classroom construction component. A condition of disbursement for these phases would be realization of satisfactory progress in implementing these adjustment measures, in accordance with criteria already agreed with IDA. These criteria include achievement of the targets and measures outlined in paragraphs 5 and 6 above. The Government has also agreed to: (a) carry out studies on planning and financing primary education and improving the quality and cost efficiency of secondary and higher education, and implement their recommendations as agreed with IDA; (b) make available at least 15% of its annual school repairs budget for primary school rehabilitation; (c) appoint and maintain staff re- sponsible for implementing the project in adequate numbers and with qualifi- cations acceptable to IDA; (d) develop and discuss vith IDA a preventive school maintenance program by June 30, 1988, and thereafter assign responsibility for implementation to teachers and headmasters; (e) prepare and implement annual local and overseas training programs and award the fellowships on the basis of criteria agreed with IDA, and appoint the fellowship recipients to posts com- mensurate with their training; and (f) to the extent practicable, use local materials, designs and maintenance methods for the classrooms to be constructed. 10. Justification. The operation would improve access to primary educa- tior. nationwide. Through the application of adjustment policy measures, enrollments are expected to increase by about 321 (180,000 additional students) by the 1994/95 school year without increasing the share of education in the Government budget from its 1985/86 level. The classroom construction program would help reduce construction costs by about 35%, provide replicable classroom designs, and set the pattern for cost sharing by communities. The operation would also improve the quality of primary education through the provision of  -4- textbooks, development of revised curricula, and teacher upgrading programs. Support to institution building would yield the long-term benefit of improved education planning, budgeting and resource management capacities. 11. Risks. The operation has two potential risks. First, adjustment measures such as reducing higher education subsidies or introducing the double- shift system may not be fully endorsed by teachers, students or parents. Aware of this risk, the Government is pursuing a public acceptance campaign. The second risk concerns possible delays in implementing the classroom construction program owing to the Ministry of National Education's limited technical capa- city and the experimental nature of cost-sharing with communities. To reduce this risk, a key criterion for selecting the target communities is their commitment to contribute about 25X of the classroom construction costs in cash or kind. 12. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Attachments Washington, DC September 16, 1986  - 5 - Schedule A Estiuated Costs* Local Foreign Total US million - 1. Development of MEN's planning, budgeting, cost-control capacity and coordination a. Strengthening the Directorate of Studies, Human Resources and Planning 0.34 0.85 1.19 b. Minimizing school replacement needs/ construction costs by: (i) developing facility planning and budgeting capacity 0.08 0.40 0.48 (ii) rehabilitating 100 claesroous 0.22 0.30 0.52 (iii) establishing a preventive maintenance system 0.15 0.34 0.49 (iv) constructing 400 classroons 2.65 1.70 4.35 c. Developing coordination capacity 0.60 1.37 1.97 Subtotal 4.04 4.96 9.00 2. Improving teacher effectiveness, efficiency cf school inspectors and relevance and availability of textbooks by: a. Strengthening the National Pedagogical Institute 0.42 1.63 2.05 b. Strengthening the inspectorates 0.43 1.45 1.88 c. Creating textbook preparation and distribution capacity 0.46 1.53 1.99 Subtotal 1.31 4.61 5.92 Total Base Costs 5.35 9.57 14.92 Physical Contingencies 0.33 0.30 0.63 Price Contingencies 1.75 2.31 4.06 Total Cost 7.43 12.18 19.61 * The operation is exempt from taxes and duties. Financing Plan Local Foreign Total - US$ million - IDA 3.80 8.20 12.0 AfDB 1.