Burundi - Education Sector Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4623-BU MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR.23.0 MILLION TO THE REPUBLIC OF BURUNDI FOR AN EDUCATION SECTOR DEVELOPMENT PROJECT./ January 20, 1988 Thk document has a restricted d -sbutlma_ may be used by redplent only In the pefomance of ther officia duie Its contents may not othrwise be dIlosed without Word Bak autWhoziou.  CURRENCY AND EQUIVALENT UNITS Currency Unit Burundi Franc (FBU) US$ 1.00 (December 1987) - FBU 122 FnU 100 - US$ 0.81967 US$ 1.00 -SDR 0.727913 FBU 100 SDR 0.59665 DTS 1.00 - US$ 1.37379 WEIGHTS AND MEASURES Metric System ABBREVIATIONS UPE Universal Primary Education PIP Public Investment Program PEP Public Expenditure Program KOE Ministry of Education CCAP Coordinating Committee for Education Activities BPE Education Project Unit FISCAL YEAR January 1 - December !1 ACADEMIC YEAR September 15 - June 30  FOR OFmFCIAL USE ONLY REPUBLIC OF BURUNDI EDUCATION SECTOR DEVELOPMENT PROJECT Credit and Project Summary Borrower: Re-public of Burundi Beneficiary: Ministry of Education Amount: SDR 23.0 million (US$31.5 million equivalent) Terms: Standard, with 40 years maturity Onlending Terms: Not applicable FinaneinR Plan: Government US$ 4.5 million UNDP US$ 0.5 million UNICEF USS 1.0 million IDA US$31.5 million TOTAL US$37-. million Economic Rate of Return: Not applicable &'? 3 Staff Appraisal Report: Report No. 4i4O9-BU !as: IBRD No. 20662 This document has a restricted distribution and may be used by recipients only in the pe refr.csvae of their official duties. Its contents may not otherwise be disclosed without World Bank au ' iiftion.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPKENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR AN EDUCATION SECTOR DEVELOPMENT PROJECT 1. The following memorandum and recommendation on a proposed development credit to the Republic of Burundi for SDR 23.0 million (US$31.5 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and help finance an education sector development project. The project would be cofinanced by UNDP (US$0.5 million) and UNICEF (US$1.5 million). 2. Background. In 1973 the Government adopted a reform of the education system to improve the quality and cost-effectiveness of education and to make the system more responsive to the country's medium-term development needs. Attainment of Universal Primary Education (UPE) by the year 1995/96, without impairing the quality of instruction, is a major goal to which the Government is publicly committed. IDA has assisted the Government in implementing the most critical initial phases of the reform, in three projects, providing financing for the construction of rural primary schools, the preparation of new teacher training programs and more relevint curricula, improvement of primary education, and the development of technical education. While these efforts have resulted in an increase in the primary enrollment ratio (from 292 in 1980 to about 501 in 1985) and the output of better trained technicians needed in improving agricultural productivity, much more progress is required in the development of education, qualitatively and quantitatively, if the objectives of the reform are to be met. A major problem facing the sector is the skewed pattern of education financing, whereby the Government and external donors finance mainly upper secondary and higher education, without controlling their cost -- a situation stemming from urban social pressurt in favor of those levels of education. Also the wide dispersion of Burundi's rapidly growing population hampers the delivery of social services and is particularly a handicap in access to education in terms of cost as well as equity. Other major issues facing the sector are: the declining quality of primary and general secondary education, pointing to the need to improve the efficiency of teacher support and to upgrade teachers; and over- centralization of the planning and management of the education system, leading to deficiencies in school administration and a lack of coordination of the work of regional staff, school inspectors and headmasters. To address these issues and thus intensify education reform, the Government has adopted a sectoral adjustment strategy to be implemented through policy measures aiming at reducing per student costs, eliminating the major sources of inefficiency, and restructuring the education budget. These phased structural adjustment measures are in line with the Public Investment Plan (PIP) and the Public Expenditure Program (PEP) being prepared by the Government.  - 2 - 3. Rationale for IDA Involvement. IDA's strategy for support of Burundi places emphasis in the long term on creating a framework for sustainable growth for which development of human resources is crucial, and in the short term on strengthening macroeconomic management and rationalizing public expenditure. The education sector represents a substantial part of total public expenditures. Thus IDA involvement in development of the education sector is an important part of both our long and short term strategies for Burundi. It complements our ongoing macroeconomic dialogue and our support to the Government's structural adjustment program. Through restructuring expenditures in the education sector and implementing education reform, the Government is intensifying the momentum gained under the previous three education projects and is strongly committed to creating an. education system that is equitable, cost- effective and responsive to the country's needs. 4. ProJect Objectives. The overall objectives of the project are to increase access to basic education and to improve the quality of primary and general secondary education while maintaining the share of the sector within the Governmaent's recurrent budget at a level approximating 20Z. To this end, the project would: (a) implement phased sectoral adjustment measures to restructure 3ectoral expenditures and to contain education costs; (b) strengthen the planning, budgeting and cost-control capacity of the Ministry of Education (MOE); (c) improve the quality and efficiency of education at the primary and general secondary levels through the training of supervisors, upgrading of teacher skills, preparation of new programs for secondary education, and provision of textbooks and teacher guides; and (d) improve access to education for rural children, by providing additional student places in rural primary and secondary institutions. 5. Project Description. The project consists of four main components. The first component would strengthen the Government's capacity to establish targets and to implement phased policy measures during the project. The measures to be undertaken include: (a) reduction of the per student cost of teaching and administrative staff by decreasing teacherlstudent ratios at the primary, secondary and university leiiels, increasing the teaching workload for secondary and higher education teachers, reducing the number of substitute teachers in primary schools, and reducing administrative staff at all education levels; (b) reduction of subsidies in secondary and higher education by reducing the number of boarding secondary students and the fellowship allowances for higher education students studying abroad; (c) cost-recovery improvement by increasing parents' contributions to the cost of primary schooling and the boarding of secondary school students, increasing charges for meals for higher education students; and (d) increase in the enrollment of primary school-age children over the period 1988-92 while accelerating student flow through the system by increasing the promotion rate at primary level and reducing the repetition rate in the first three grades. These measures are expected to reduce per student costs by about 15Z. Meanwhile, the education budget would be restructured to increase the primary education budget from 452 to 54? of total. The measures are expected to generate the savings required to provide the recurrent budget for further expansion of primary school enrollments and improvement of education quality. The adoption by the MOE of a Public Expenditure Program (PEP) and of a Public Investment Program (PIP) would provide the budgetary framework which is needed to manage a buoyant sectoral development within the constraint of  both domestic and foreign resources. Because of commitments undertaken by the previous Government, the level of internal and external scholarships in 1988 is too high for the education budget to support. As an adjustment measure, the credit would provide US$1.5 million equivalent in 1988 only, to finance scholarships and so to allow the Governmertt budget to meet the sector's recurrent needs. A revised PEP for 1988 would be submitted to IDA as a condition of effectiveness. In 1989, external scholarships would be limited to those financed by donors. 6. The second Project component is to strengthen the Ministry of Education's planning, budgeting and cost-control capacity. This would include support for the Direct-,rate of Educational Planning to enable it to implement and monitor the sectoral adjustment program and to prepare subsequent adjustment and cost-effective measures and growth plans. School administration would also be strengthened and steps taken to improve coordination of the work of the regional inspectors and headmasters. The third component is the improvement of the quality and efficiency of primary and general secondary education; this would include enhancing effectiveness of teachers support through seminars and in-service training programs, improved science instruction, and increased production and distribution of textbooks and teacher guides. The fourth component, improvement of access to education, would provide additional student places in rural primary and secondary schools by financing the construction of about 55 (mainly rural) primqry and three lower secondary schools (Collages Ruraux), a primary school rehabilitation program, and the reconversion of about 10 upper seconda-y schools, to reduce boarding and increase classroom space. Under this component, a decentralized school maintenance program would be established and monitored, and the Education Projects Unit would be reorganized into two departments, one for project management and the other for implemetting the school construction program. The reorganization of BPE would be a condition of Credit effectiveness. The total costs of the project are estimated at US$37.5 million equivalent with a foreign exchange component of US$26.4 million (70Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements and the disbursement .schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Burundi are given in Schedule C. A map is also attached. The Staff Appraisal Report, No. 6913-BU, dated Janary 15, 1988, is also attached. 7. Agreed Actions. The Government has agreed to the following: (a) specific, time bound, reform targets have been set; (b) these targets would be closely monitored and IDA would be informed annually on the results achieved in unit cos.. reductions and the restructuring of the education budget; (c) the school construction program would be implemented in two phases, and a condition of disbursement for the second phase (expected to begin the third year of the project) would be realization of satisfactory progress in attaining the mid-term objectives of the sectoral adjustment program; (d) a PIP would be established for a three-year period to be regula:ly updated, and any major departure from this program would be submitted to IDA for comment; (e) a PEP would be established on a rolling basis and each annual revision submitted to IDA for comment; and (f) the Ministry of Education's Planning Departmert, with the assistance of the project Director, would have the authority to control and monitor the use of school maintenance funds. A Coordinating Committee for Education  -4- Activities has been set up to monitor implementation of teacher training programs. Project staff of the Education Projects Unit and the School Construction Unit are being appointed in accordance with the staff appointment schedule agreed with IDA. 8. Benefits. The project would help the tovernment to develop cost- control mechanisms, to restructure the financing of education, and to make the education system more cost effective. It would help to attain UPE by the year 1995/96. Through the sectoril adjustment measures, primary enrollments are expected to increase by about 18Z (72,000 additional students) by the end of the project, without increasing the share of education in the Government budget. The strengthening of the Ministry of Education's planning, budgeting and cost-control capabilities would permit, in the long term, a more effective allocation of budgetary resources, allowing further expansion within the available education budget. Due to the project-supported measures to improve the quality of education at the primary and secondary levels: (a) during the span of the project, the capabilities of primary and secondar, teachers would be enhanced and the majority of students would be provided with a critical mass of education materials, enabling them to study under favorable conditions, despite overcrowded classrooms and the adoption of the double-shift system at the primary level; and (b) in the long term, better trained students would be able to complete the secondary and higher education cycles more rapidly, thus leading to a reduction of unit costs at those levels. When project objectives are met, the restructured education sector would be more efficient and better suited to the goals of the country's economic development. 9. Risks. The.e are three main risks. First, policy measures such as the containment of the growth of secondary and higher education and the setting up of a cost-recovery system, based on parents' contributions to tuition and boarding costs, may rot be fully endorsed by the population; aware of this possibility, the Government intends to embark upon a public acceptance campaign. Second, there is a risk that the Government may be unable to resist demands from upper secondary and higher education students and their families to maintain a disproportionately high allocation for fellowships, thus jeopardizing the financing of primary educational development. Experience with the short lived student loan scheme at university level shows that these pressures are difficult to resist. The third risk concerns the possible decrease in educational quality resulting from the generalization of the double-shift system and the decrease in teacher/student ratios. To reduce this potential risk, the project would provide for the permanent monitoring of teachers by inspectors;, improved school administration through the training of headmasters and teachers, and increased production and distribution of textbooks. 10. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of IDA and recommend that the Executive Directors approve the proposed credit to the Republic of Burundi. Barber B. Conable President Attachments Washington. D.C January 20, 1988  -5- Schedule A REPUBLIC OF BURUNDI EDUCATION SECTOR DEVELOPMENT PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Costs: Local Foreign Total --- US$ million_--------- ProJect Component A. Educational Planning 0.4 1.3 1.7 B. Quality Improvement 3.3 4.6 7.9 C. Access Improvement 5.0 16.1 21.1 D. Proiject Administration 0.4 0.5 0.9 E. Scholarships (1988) - 1.5 1.5 TOTAL BASE COSTS 9.1 24.0 33.1 Total Contingencies 2.0 2.4 4.4 TOTAL PROJECT COSTS 1! 11.1 26.4 37.5 Financing Plan IDA 6.3 25.2 31.5 UNICEF 0.3 0.7 1.0 UNDP - 0.5 0.5 Government 1/ 4.5 4.5 TOTAL 11.1 26.4 37.5 1/ Including taxes and duties estimated at US$0.8 million.  -6- Schedule B Page 1 of 2 REPUBLIC OP BUUJNDI EDUCATION SECTOR DEVELOPMENT PROJECT PROCUREMENT METHOD AND DISBURSEMENT Project Element Procurement Method Total ICB LCB Other N.A. Cost M------(US$ illion)---------- Civil Works (a) Primary schools 3.1 11 2.0 3.8 21 8.9 (3.1) (2.0) (2.9) (8.0) (b) Secondary schools 3.9 1/ 4.4 2.2 21 10.5 (3.9) (4.3) (2.0) (10.2) Furniture, equipment. vehicles and materials 5.1 0.6 31 - 5.7 (5.1) (0.5) - (5.6) Technical assistance, training and studies - - 9.7 9.7 _ _ (7.4) - (7.4) Local salaries - - - 2.7 2.7 - - - (0.3) (0.3) TOTAL 12.1 7.0 15.7 2.7 37.5 (12.1) (6.8) (12.3) (0.3) (31.5) Note: Figures in parentheses are the amounts financed by DA. 1/ Building materials. 21 Force account and commtunties' contribution. 31 Contracts lese then US$50,000 equivalent.  -7- Schedule B Page 2 cf 2 Estimated IDA Disbursements IDA Fiscal Year ---us$ millioni--------------- 1989 1990 1991 1992 1993 1994 Annual 3.5 5.0 6.0 6.0 6.0 5-0 Cumulative 3.5 8.5 14.5 20.5 26.5 31.5 Disbursements Amount (USS Category Million Equivalent) Percent Primary and Secondary school 19.3 1001 civil works, furniture, equipment, (of expenditures) building materials and construction operating costs. - Phase I 10.7 - Phase II 8.6 Furniture, equipment, materials, 3.7 100X vehicles, textbooks and operating (of expenditures) costs not included in the primary and secondary school components. Technical assistance and 3.7 1001 training. (of expenditures) Scholarships (1988) 1.5 1001 (of expenditures) Project Administration (a) Operating Costs 0.2 1002 (of expenditures) (b) Salaries 0.2 502 (of expenditures) Unallocated 2.9 TOTAL 31.5 Note: (a) A special Account in an amount of US$500,000 equivalent will be opened. (b) Disbursemen+i for traininb, operating costs and contracts costing less than US$100,000 equivalent would be made against Statements of Expenditure. (c) A condition of disbursement for the second phase of the school construction program would be satisfactory progress in attaining the mid-term objectives of the sectoral adjustment program (reduction of per student costs and increase in the share of primary education in the budget of education).  Schedule C REPUBLIC OF BURUNDI EDUCATION SECTOR DEVELOPNEN? PROJECT Timetable of key Project Processing Events: (a) Time taken to prepares 6 months (b) Prepared bys Government of Burundi (c) Fhrst IDA mission: January 1986 (d) Appraisal mLssion departure: April 1987 .e) Negotiations: December 1987 (f) Planned Date of Effectivenesss April 1988 (g) List of relevant PCRs and PPARs: First Education Project (Cr. 679-EU) - PC Mharch 21, 1987  Schedule 0 Page I of 2 STATUS OF BAN 1 GROUP OPERTIONS IN SUM"I. A. STATEVNT Of BANK LOANS AND IDA CREDITS (as of September 30, 1967) Loan or Amount (USM million) Credit (Los* Cane, ition Number2 Year Purpose o ank LOA an Udisburm One Lo.n2 end 17 Credits Fully Disbursed 4.88 189.60 1049 aU 1980 Urban Devxlopsnt - 15.90 0.60 1165 BU3 1981 Kirimtro Rural Owevlopment3 - 19.80 2.11 1192 iU 1982 Tntegrated Rural Development - 16.80 6.82 1356 WG 163 Third Education - 16.60 0.58 1419 WS 1963 Rusizi 1I Regional - 15.8" 4.35 1456 WS 1984 Third Technieal Aseistance - 6.10 3.1S 1583 Wi 19S6 Fourth Highway - 18.10 15.78 1593 SU 1985 Powor Trans. and Oistribution - 12.39 10.17 1620 au 198S Second Forestry _ 12.80 9.73 1625 BU 198S Rural Water Supply - 9.60 7.44 795 au 198? Technical Assistance 7.560 7.50 10s au 198? Tleco_munications - 4.80 4.80 Total 4.80 291.43 73.03 of which repaid 1.83 0.84 Total now outstanding 12711 29R.69 Leoe amunt sold 2.97 6.27 of which repaid 2.97 5.2? Total 6- Total held by Bank and IDA 0 285.32 Total undisbursod 73.0$ a/ Prior to exchange adjustmonts. V Extended In 1967 to the Belgsin Trust Torritory of Ruanda-Urundi for the is provoment of the BuJusbur*-Muramvya Road and the *xpansion of the Lake Port of Bujumbura. The loan, which wa* guaranteed by the Kingdom of Belgium, has ben fully ropaid. V Including a NORAD Grant Participation of US6.S million. Note 1. Credit 1166-5U and highoer are denominated In SORo and are shown in US$ equivalents, baset on tho oxchange rates in effect at the time of - negotiations. Noto 2. Total approvod, ropayments, and outstanding balne, reprosent both active and inective loans and credits.  - 10 - Schedule D Page 2 of 2 STATUS OF BANK GROUP OPERATIONS IN BURUNDI B. STATEHEMT OF IFC INVESTMENTS IN BURUNDI EXPRESSED IN USS (as of September 30, 1987) Amount Year Oblftor TIve of Business Loan Equity Total 1981 Verreries du Burundi Glass Container 4.7 0.8 5.5 Total Gross Commitments Less Caztcellations, Terminations, Repayments, and Sales 4.7 0.8 5.6 Total Commitments Now Held by IFC 0.2 1.0 1.2 Total Disbursed 4.7 1.0 5.7  N? I AlA9 ' O A FAI ICA N REPUBLIC S O A N T I OPIA _ BURUNDI A IE /I I A E N Y A GAB ONANg\ 2 EDUCATION SECTOR DEVELOPMENT PROJECT EWA" , Eul BURUNDI 4- Ao 0 0 L A LLu 29_ + 4 3.JLd ~~~~~~~~~~~~r z SUMAZAUIE RIIEAVU0 LLJ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I ko.a, ( "Mii A / K / ~~~~EXISTING INFRASTRUCTURE: 4 INTERNATIONAL AIRPORT INTERNATIONAL BOUNDARIIES PROVINCIAL BOUNOARISS r4.w ~~~~~~~~~~~~~~~~~~~~~~~PORT * NEW LOWER SECONDARY SCHO=I. (31 A CONVESN or towER s/oARY scAoO 1o f * UAN PRIMARY SCHOOLS 6I S IS So S o 4/ I17W o> Y \f TE ti~~~~~~~~~~~~~~~~~~~.'I fl.s D.. RW\ N t& ua ,..bL . ~sP. lIP..Pep