Philippines - Sector Program For Elementary Education Project

Dorn The Woi FOR omaI, RbpwtNo. 9923 PROJECT COMPLETION REPORT PHILIPPINES SECTOR PROGRAM FOR ELEMENTARY EDUCATION (LOAN 2030-PH) SEPTEABER 25, 1991 Population and Human Resources Division Country Department II Asia Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Philippine Peso (P) US$1.00 - P 7.5 (At appraisal, February 1981) US$1.00 - P 22.50 (At final disbursement, August 1989) FISCAL YEAR January 1 - December 31 SCHOOL YEAR June - March ACRONYMS BEE - Bureau of Elementary Education CDC - Cash Disbursement Ceiling COA - Commission on Audit DECS - Department of Education, Culture and Sports (formerly the Ministry of Education and Culture) DPWH - Department of Public Works and Highways (formerly the Ministry of Public Works) EDPITAF - Educational Development Projects Implementing Task Force ERP - Educational Reorientation Program FMS - Financial Management Service HSMS - Household and School Matching Survey IMC - Instructional Materials Corporation LAC - Learning Action Cell MIS - Management Information System NEDA - National Economic and Development Authority NELC - National Educational Learning Center NESC - New Elementary School Curriculum OPS - Office of Planning Service PCR - Project Completion Report PROCEED - Program for Comprehensive Elementary Education Development PRODED - Program for Decentralized Educational Development PTS - Project Technical Staff RELC - Regional Educational Learning Center RPMT - Regional Project Management Team SBC - School Building Committee SBP - School Building Program SOUTELE - Survey of Outcomes of Elementary Education TBS - Textbook Board Secretariat  FOR OMCIuL USE ONLY THE WOt. L' RANK Washington. DC 20433 U.S A O'cie of Directcw-G letaI Opwat"ms Evaluatiol September 25, 1991 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report - Philippines Sector Program for Elementary Education (Loan 2030-PH) Attached, for information, is a copy of a report entitled "Project Completion Report - Philippines Sector Program for Elementary Education (Loan 2030-PH)", prepared by the Asia Regional Office, with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFF'ICIAL ULSE ONLY PROJECT COMPLETION REPORT PHILIPPINES SECTOR PkOGRAM FOR ELEMENTARY EDUCATCION (Loan 2030-PH) TABLE OF CONTENTS Page No. Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation Summary ...... . .. . .. . .. . iii PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE Project Identity . . . . . . . . . . . . . . . . . . . . Background ..1................... . 1 Project Objectives and Description . . . . . . . . . . . Project Design and Organization . . . . . . . . . . . . . 3 Project Implementation .... . . .... . . . . . . . 4 Project Rest".ts . . . . . . . . . . . . . . . . . . . . . 8 Project Sustainability . . . . . . . . . . . . . . . . . 9 Bank Performance ............ . 10 Borrower Performance ................. . 10 Project Relationships ................. . 11 Consulting Services . . . . . . . . . . . . . . . . . . . 11 Project Documentation and Data . . . . . . . . . . . . . 12 PART II: PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE . . . . . . 13 Project Background, Objectives and Plan . . . . . . . . . 13 Project Management ............ . 13 Project Implementation . . . . . . . . . . . . . . 14 Policy Improvement .... . . ...... . . . . . . 14 Management Improvements .......... . 15 Software Components ........... . 16 Hardware Components . . . .... .......... . 18 Management Problems .. . ......... . 20 Project Outcomes . . . . . . . .21 Project Costs, Financing and Disbursement .22 Bank's Participation in the Project . . . . . . . . . . . 22 Recommendations . . . . . . . . . . . . . . . . . . . . . 23 Insights and Lessons Learned . . . . . . . . . . . . . . 24 PART III: PROJECT DATA . . . . . . . . . . . . . . . . . . . . . . . 25 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT COMPLETION REPORT PHILIPPINES SECTOR PROGRAM FOR ELEMENTARY EDUCATION (Loan 2030-PH) PREFACE This is the Project Completion Report (PCR) for the Elementary Education Sector Loan (No. 2030-PH), for which the amount of US$100 million equivalent was approved on July 2, 1981. On December 31, 1986, US$19.5 million equivalent was canceled at the request of the Government of the Philippines. The loan was closed on December 31, 1988, two years after the original Closing Date. The final disbursement was made on August 28, 1989, at which time a remaining undisbursed amount of US$471,486.03 was canceled. The PCR (Preface, Evaluation SummaL, Parts I and III) was prepared by the Bank's Population and Human Resource- Division, Country Department II, Asia Regional Office, based on a review of Staff Appraisal Report No. 3423a-PH of May 29, 1981; President's Report No. P-3085-PH of June 4, 1981; the Loan Agreement of August 25, 1981 and its sub!equent Amendments; project files, including Bank supervision reports and internal memoranda; and the Borrower's PCR prepared by the Department of Education, Culture and Sports, Government of the Philippines. Bank staff involved in project supervision were also consulted, and discussions were held with Government officials in the course of processing a follow-up project. Part II is a summary of the Borrower's (old-style) PCR which is available in OED and the Region's files. The Asia Region wishes to express its appreciation to the Government officials involved in project implementation for their assistance in producing this report, in particular to the staff of the various committees which drafted and reviewed the Borrower's PCR. These committees consisted of representatives from the Educational Development Projects Implementing Task Force, the Bureau of Elementary Education, the Office of the Planning Service, the Financial and Management Service, and the Regional Offices of the Department of Education, Culture and Sports, and the Instructional Materials Corporation.  - iii - PROJECT COMPLETION REPORT PHILIPPINES SECTOR P'ROGRAM FOR ELEMENTARY EDUCATION (Loan 2030-PH) EVALUATION SUMMARY Oblectives i. The project was originally designed to support four years of the Government's ten-year development program (1981-90) for elementary education. The main objectives of the program were to raise student participation and achievement, with particular emphasis on regions with low educational performance, and to improve the managerial.J. ^^ficiency of the Department _f Education, Culture and Sports. Specifically, the Government was to: (a) introduce revised policies for sector financing and management to raise quality, reduce disparities in educational opportunity, and increase internal efficiency in the school system; (b) effect institutional changes to strengthen sector management; and (c) prepare revised instructional programs and materials, and improve the distribution of teachers and facilities to strengthen performance at the school level. ii. The project investments consisted of; (a) the introduction of a new curriculum supported by revised teaching techniques and instructional materials; (b) development, printing and distribution of textbooks, teacher's manuals and other instructional materials, including the construction and equipment of 26 instructional materials warehouses; (c) provision of classrooms in accordance with needs based on systematic facilities planning; (d) provision of basic school furniture and equipment for regions most in need, as well as office equipment for the BEE, OPS and DECS Regional Offices; (d) establishment of a system to monitor teacher supply and demand by the DECS Regional Offices in cooperation with teacher training institutions; (e) trainii.g for educational managers, planners and school staff, including the construction and equipment of 13 regional training centers; and (f) systematic evaluation of sector performance by monitoring regional data on an annual basis and regular achievement testing throughout the project, an in-depth evaluation of the determinants of school participation and achievement, and resea ch on selected topics related to sector performance. Overall cost was estimated at US$448 millioi. and a Loan of US$100 million was approved. Implementation Experience it. The project was to be implemented in four yea;s from 1982 to 1985, wit'. the Closing Date originally scheduled for December 31, 1986. The project encoLu.tered implementation delays and required a two-year extension of the Loan Closing Date. The slow pace of project implementation was due mainly to management difficulties, budget constraints and procurement delays (paras. 1.10-1.12). Project performance improved considerably following two loan restructuring agreements in 1985 and 1986, aided by significant increases in Government budgetary allocations to education from 1986 to 1988 as a result of the priority given to the sector by the then-new Government (paras. 3.4-3.5).  - iv - Results iv. The project, which was prepared between 1978 and 1981, represented an innovative approach to education lending in the Philippines. Its design as a sector operation broadened its impact by encompassing the whole elementary education investment program, and by promoting the improvement of sector policies and planning, and the development of sector-.ide institutions. The project also propelled a major shift in focus from the quantitative expansion of elementary schooling to critical issues of quality, efficiency and regional variations in student performance. v. The project succeeded in meeting its objective to build institutional capacities within the Department of Education, Culture and Sports (DECS) and its Regional Offices, and substantially met its physical implementation targets as defined at appraisal (Table 3.4). In terms of performance irdicators, student participation and teacher utilization measures showed some improvement, but there was apparently little change in cohort survival, student achievement and the reduction of regional disparities (Table 3.7). It is extremely difficult to assess the impact that the project may or may not have had on student and sector performance since no monitoring and evaluation mechanisms effectively tracked resources actually provided to schools and their effects on student achievement and other educational outcomes (paras. 1.21-1.22). Sustainability vi. Project sustainability was addressed mainly by integrating project activities into the regular functions of the agencies involved in elementary education. The focus of these efforts was decentralizing to the DECS Regional Offices responsibilities for identifying priority school building projects, procuring other civil works, providing equipment and furniture, distributing textbooks and training administrative and school staff. Regional budgets now include provisions for components formerly funded by the project. vii. A follow-up project, the Second Elementary Education Project (Loan 3244-PH), is currently supporting the Government's 1990-92 elementary education investment program and action plan to help sustain the provision of essential school resources and other quality improvement measures, and to continue strengthening DECS capacities in planning and management. Findings and Lessons Learned viii. Project implementation improved as a result of Government efforts to streamline procurement procedures (paras. 1.11), following a series of Country Implementation Reviews. The Bank should continue to address on a country-wide basis systemic issues affecting all Philippine projects, including slow budget releases (para. 1.12), utilization of Special Accounts, which did not facilitate implementation and accelerate disbursements in this project (paras. 1.12, 2.39), and compliance with audit covenants, where project staff can do little to expedite the preparation and submission of Commission on Audit reports (para. 1.29). ix. The project was adversely affected by frequent modifications in the structure, functions and staffing of the project management unit between 1981  -v - and 1984 (paras. 1.10, 2.6). Project management and implementation problems also arose from the lack of clarity in the roles and relationships of the various agencies and departmental units involved in the project (para. 1.30). A firmly establishec project management structure staffed with qualified personnel, and a clear definition of organizational responeibilities and linkages among implementing agencies are critical to effective project implementation. x. Despite the serious delays and difficulties experienced by the project, particularly during the first half of project implementation, the Borrower's commitment to the objectives of the project facilitated the accomplishment of the major physical and institutional targets (para. 1.28). Bank review missions made substantial contributions to improve project implementation, although the Borrower noted the lack of continuity in the assignment of Bank staff to project supervision (paras. 1.26-1.27). xi. The key project investments in quality improvement at the school level were a new curriculum supported by revised instructional materials and teaching techniques, but their potential for raising student achievement was weakened by the lack of coordination in the design and implementation of these elements (paras. 1.7, 1.13, 2.55). Well-coordinated implementation plans for teacher training and the development and timely distribution of textbooks and other instructional materials are essential for effective curriculum implementation. xii. Funding constraints led to a reduction :.... the number of classrooms below appraisal targets, as well as in the standard classroom size from 63 sq.m. to 48 sq.m. Given that budgetary limitations have not allowed classroom shortages to be fully addressed, two issues raised during project preparation should be revisited: whether or not special work areas are in fact essential for teaching vocational arts at the elementary level, and the possibilities for greater participation of local governments and communities in school construction, rehabilitation and maintenance (para. 1.15). xiii. The project's major shortcoming was that an effective monitoring and evaluation system was not established to assess the impact and benefits of project inputs. More front-end attention needed to have been given to coordination of the various elements of the systam, clear assignment of operational and reporting responsibilities, idantification of information needs at different administrative levels in relation to available staff and skills, and more systematic utilization of specialist services (paras. 1.21-1.22). xiv. The actual utilization of expert services was much lower than the requirements estimated at appraisal, and project performance was less than satisfactory in monitoring and evaluation where extensive technical expertise was identified as needed but wab not fully utilized (para. 1.31). The project might also have benefitted from linkages with overseas institutions which could have provided both staff training and consulting services (para. 1.32). xv. The structural, policy and institutional issues of teacher education represent an important area where further development is clearly needed (paraes. 1.8, 1.23). Dialogue on these issues has been initiated in studies on teacher training under the ongoing Second Elementary Education Project.  PROJECT COMPLETION REPORT PHILIPPINES SECTOR PROGRAM FOR ELEMENTARY EDUCATION (Loan 2030-PH) PART i. PROJECT REVIEW FROM THE BANK'S PERSPECTIVE Prolect Identity Project Name: Sector Program for Elementary Education; also the Program for Decentralized Educational Development (PRODED) - Loan Number: 2030-PH RVP Unit: Asia Regional Office, Country Department II Country: Philippines Sector: Education Subsector: Elementary Education Background 1.1 The Program for Decentralized Educational Development was conceptualized and prepared during the late 1970s, a period during which the Government of the Philippines was reexamining its development strategy and objectives. In contrast to an earlier emphasis on maximizing growth in output and the development of large-scale industry, greater attention was being given to the generation of productive employment, improvement in economic and social equity, and meeting basic human needs. Consistent with these objectives, new initiativea in education called for redressing the geographical and socioeconomic imbalances of educational opportunity, improving educational quality, and strengthening educational administration to increase efficiency and to make the system more responsi-e to local needs. This shift in the country and sector development strategies coincided with the Woeld Bank's own growing focus on poverty alleviation and on basic education (as well as its emerging interest in sector lending). From both the Government's and the Bank's perspectives, effective elementary education was essential to meeting other basic needs and to accelerating overall national development. Proiect Obiectives and Description 1.2 The project was originally designed to support four years of the Government's ten-year development program (1981-90) for elementary education. The main objectives of the program were to raise student participation and achievement, with particular emphasis on regions with low educational performance, and to improve the managerial efficiency of the Department of The "Sector Program for Elementary Education" was the project name used in the President's Report and the Staff Appraisal Report, while the Loan Agreement referred to the "Sector Loan for Elementary Education." PRODED was the name used in the Philippines and among Bank staff involved with the project. Since a follow-up project has been prepared and processed, PRODED is also currently referred to as the first Elementary Education Project.  Education, Culture and Sports (DECS). Specifically, the Government was to: (a) introduce revised policies for sector financing and management to raise quality, reduce disparities in educational opportunity, and increase internal efficiency in the school system; (b) effect institutional changes to strengthen sector mi.nogement; and (C) prepare revised instructional programs and materials, and improve the distribution of teachers and facilities to strengthen performance at the school level. The Bank-assisted project comprised three major components corresponding to each of these objectives-- policy reforms, management changes, and investments for performance improvement. 1.3 The policy reforms involved: (a) regional allocation of development funds on the basis of a population-waighted indicator of deficiencies in participation, cohort survival and student achievement, to give priority to regions with below average performance; (b) apportionment of recurrent expenditures to incrt-ase the share of non-salary items, including instructional materials, classroom supervision, in-service training and maintenanc_. oGf school facilities; (c) improved utilization of subject matter teachers; and (d) stricter enforcement of student admission at age 7, and introduction of continuous diagnostic testing, followed up by remedial and enrichment programs as appropriate. 1.4 In implementing the management changes, the organization, functions and staffing of the main agencies involved in elementary education were to be modified as follows: (a) the Bureau of Elementary Education (BEE) was to formu..ate sector policies and standards, and would be assigned line authority for technical supervision in the regions to guide effective development and management of the subsector; (b) the Divisions for Elementary Education of the DECS Regional Offices would be given direct responsibility for managing, implementing and monitoring policies and programs in accordance with BEE criteria and standards, and for providing related assistance to the provincial and district authorities; (c) increased responsibilities for the Office of the Planning Service (OPS) would include preparing national plans and budget requests for education, assisting the regions in planning, maintaining a comprehensive information system based on regional statistics, and conducting systematic monitoring of sector performance; (d) permanent planning units would be established in every DECS Regional Office; and (e) the Textbook Agency would be converted into a permanent government corporation, the Instructional Materials Corporatior (IMC), charged with implementing programs for the development, production or procurement and distribution of instructional materials for public elementary and secondary schools, and the Textbook Board would be replaced by an Instructional Materials Council to approve materials for use in schools and encourage private sector involvement in educational publishing. 1.5 The investment program for performance improvement consisted of: (a) introduction of a new curriculum supported by revised teaching techniques and instructional materials; (b) development, printing and distribution of textbooks, teacher's manuals and other instructional materials, including the construction and equipment of 26 instructional materials warehouses; (c) provision of classrooms in accordance with needs based on systematic facilities planning; (d) provision of basic school furniture and equipment for regions most in neeO, as well as office equipment for the BEE, OPS and DECS Regional Offices; (e) establishment of a system to monitor teacher supply and  3 - demand by the DECS Regional Offices in cooperation with teacher training institutions; (f) training for educational managers, planners and school staff, including the construction and equipment of 13 regional training centers; and (g) systematic evaluation of sector performance by monitoring regional data on an annual basis and regular achievement testing throughout the project, an in-depth evaluation of the determinants of school participation and achievement, and research on selected topics related to sector perforaance. Project Design and Organization 1.6 PRODED, which was prepared between 1978 and 1981, represented an innovative .pproach to education projects in the Philippines. Its design as a sector lending operation broadened its impact by encompassing the whole elementary education investment program, and by promoting the improvement of sector policies and planning, and the development of sector-wide institutions. The project also propelled a major shift in focus from the quantitative expansion of elementary schooling to critical issues of quality, efficiency and regional variations in student performance. 1.7 The introduction of a new curriculum supported by revised instructional materials and teaching techniques was central to meeting the objective of raising qurlity in elementary education. A major weakness in project design was th. lack of coordination in planning for curriculum implementation, the development and distribution of textbooks and other instructional materials, and related teacher training. The need for coordination was clearly recognized and, in fact, was one of the reasons for incorporating what was to be a separate textbook project into the elementary education program (paras. 3.2-3.3). As described in the Staff Appraisal Report, however, grade-wise implementation of the new curriculum was to begin in 1983, but the supporting textbooks for the Grade 1 in Mathematics and Pilipino were scheduled for delivery in 1984 and 1985, respectively. In no single grade was a complete set of revised textbooks to be available in the year that the new curriculum was to be introduced. The stated aim of in- service training for school teachers and principals was to support the introduction of the new curriculum, however, only half of the teachers and principals were scheduled to be trained for the duration of the project. 1.8 Pre-service teacher education was not included in the elementary education program on the assumption that it would be covered under a proposed project in secondary education. The Secondary Education Development Project, currently under implementation with financing assistance from the Asian Development Bank, is undertaking research on the content of teacher education programs, teaching methods in major subjects, a teacher competency p-ofile and incentives to attract mathematics and science teachers. The structural, policy and institutional issues of teacher education have not, however, been systematically addressed, and represent an important area where further development is clearly needed. Prolect implementation 1.9 PRODED was to be implemented in four years from 1982 to 1985, with the loan closing date originally scheduled for December 31, 1986. The project encountered major implementation delays and required a two-year extension of  4 loan closing. Project performance improved considerably following two loan restructuring agreements in 1985 and 1986 (paras. 3.4-3.5), aided by significant increases in budgetary allocations to education from 1986 to 1988 as a result of the priority given to the sector by the then-new Government. 110 The slow pace of project impl2mentation was due mainly to management difficulti.es, budget constraints and procurement delays. The management problems derived first from the complexity of the project, which involved numerous subprojects and implenenting agencies at the national and local levels. Moreover, previous Bank-financed projects had been managed by the semi-autonomous Educational Development Projects Implementing Task Force (EDPITAF), and the lack of project experience within the DECS was revealed in the weak direction and coordination of early project activities. This situation was exacerbated by the frequent modifications in the structure and functions of the project management unit up until 1984 (related in part to senior personnel changes) and by the Department's insistence that a full-time project manager was unnecessary. It was not until 1985 that a project management structure was firmly established, with all implementing agencies represented in a coordinating authority directly under the Secretary of Education, and with the addition of experienced staff to the management unit. 1.11 Implementation delays caused by procurement and fundiag problems were, in large part, the result of complicated and time-consuming Government proce_. -es. Until 1986, procurement contracts over P 2 million required approval by a Cabinet Standing Committee on Contracts and the Office of the President. Implementation improved dramatically from 1986 when the Standing Committee was abolished and the ceiling for zontracts requiring approval of the Department Secretary was raised from P 2 million to P 10 million (and later to P 20 million). The approval time for IMC paper and printing contracts, for example, was raduced to an average of four weeks from the prior six to fourteen months. Continuing Government efforts to facilitate pro urement, including the early approval and release of funds for infrastructure projects and allowing start-up of bidding procedures prior to the release of funding allocations, significantly improved performance in the School Building Program, the largest project component. An attempt during the 1985 restructuring to increase disbursements by allowing loan financing for civil works had been unsuccessful, however, due to the difficulty of gathering statements of expenses for completed civil works from the field offices of the Department of Public Works and Highways (DPWH). The problem of obtaining reimbursement documents stemmed primarily from a lack of clarity _n procedures, and is being addressed in the follow-up project to PRODED, the Second Elementary Education Project currently under implementation. 1.12 Complex fund release and payment procedures, compounded by national financial constraints in the early to mid-1980s, regularly led to delayed and reduced budgetary releases to the project. Releases in the form of Cash Disbursement Ceilings (CDCs) were valid only for the fiscal year in which they were issued and had to be revalidated when they lapsed. The protracted procurement processes often resulted in CDCs expiring before they could be committed. Since the non-availability of funds had been identified as a main cause of delay in previous projects, a Special Account was established for PRODED (paras. 3.6-3.7). While the objective was to facilitate project implementation and accelerate disbursements, the Special Account added yet another bureaucratic layer to the already cumbersome process of obtaining  5 - financial releases. CDCs were still required for expenditures to be financed from the Special Account, and Treasury Warrants issued against CDCs were drawn from a regular Treasury Demand Deposit. DECS then used these Warrants to file a reimbursement application with the Treasury, at which time the amount of the Warrant was transferred from the Treasury Demand Deposit to the Special Account. Direct payment by the Bank to suppliers and contractors was possible even without formal budgetary releases, and wae thus the preferred mode of payment. However, when the Special Account allotment was increased from US$3 million to US$8 million during the 1985 loan restructuring, only contracts over US$1.25 million became eligible for direct payment. 1.13 Instructional Programs. The new curriculum, instructional materials and teacher training programs were the key project investments in quality improvement at the school level, but the potential for raising student achievement was weakened at the outset by the lack of coordination of these components (para. 1.7). Grade-to-grade implementation of the new curriculum was officially conducted from 1983 to 1988, but supporting textbooks and teacher guides either had not yet been developed or printed as required, or were late in reaching schools. Teachers in the first two grades were expected to ensure attainment of the new curriculum "minimum learning competencies" but were provided no guidance in utilizing the old textbooks. As a stopgap measure in 1985 and 1986, schools were provided an index that matched the learning competency requirements of the new cu.riculum with existing Grade 3 and 4 books. Support could also have been provided through the in-service training program, particularly since the DECS had decided that all teachers and school principals would be trained (instead of the appraisal target of 50%). However, the first teacher training packages developed were heavily value-laden and almost devoid of instructional strategies related to the new curriculum. Subject content and teaching methodology were eventually given more emphasis in the in-service teacher training programs. 1.14 The new elementary school curriculum described in the Staff Appraisal Report consisted of three subjects in the first two grades (English, Pilipino and mathematics), a'id four subjects from Grades 3 through 6.2/ The reduction in the number of subjects from the previous eight in each grade aimed to permit increases in the share of class hours allocated to mathematics and English. The program of study as implemented includes four subjects in Grades l and 2, six in Grade 3, and seven in Grades 4 to 6, with an additional 20 to 30 minutes each day of character education for all grades. Compared to the appraised curriculum, the total number of weekly instructional hours was decreased significantly--in Grades l and 2 by 23% (from 25 to 19.2 hours), and in Grades 5 and 6 by 14% (from 35 to 30 hours). Early Bank review missions were particularly concerned about the reduction of the time allocated to mathematics. Only 3.3 hours per week are devoted to math instruction throughout the elementary cycle, which is equivalent to 11 of total hours in each of the last two grades. 1.15 School Facilities. The School Building Program was the '.zgest component of the investment program, representing 66% of total ,roject costs. 2/ The fourth subject was not described in the Appraisal Report, but the President's Report referred to "Environmental Education" with units in the sciences, social science, art and practical arts.  -6- The appraisal target of 11,000 classrooms annually from 1981-90 was to meet total classroom requirements to accommodate enrollment increases and reduce existing backlogs. About 48,500 classrooms were actually built from 1982-88, for a yearly average of 7,000 classrooms. Funding constraints were the main reason for the reduction in the number of classrooms built, as well as in the standard classroom size (in 1984) from 63 sq.m. to 48 sq.m. About 2,600 multipurpose workshops were also built under the project, and since 1986, the construction of about 1,000 toilets annually has been included in the School Building Program in response to health and sanitation concerns. According to the Staff Appraisal Report, requests for workshops for the teaching of home economics and/or agricultural-industrial arts were to be considered only where basic classroom requirements were met, and only for "complete" schools offering the full, six-year elementary cycle (about 60% of the total number of schools). Given that budget constraints have still not allowed classroom shortages to be fully addressed, two issues raised during project preparation should be revisited: (a) whether or not special work areas are in fact essential for teaching vocational arts at the elementary level, taking into consideration that the unit cost of a workshop is currently about 22% more than that of a standard classroom, and that these special facilities are being provided to the more advantaged complete schools; and (b) the need to explore possibilities for greater participation of local governments and communities in school construction, rehabilitation and maintenance. 1.16 Four agencies have traditionally been concerned with the School Building Program--the DECS, the DPWH, the Department of Local Governments and the Department of Budget and Management. A 1980 Memorandum of Agreement among these agencies detailed the roles of each agency, and provided for the creation of divisional School Building Committees (SBCs). The main responsibilities of the DECS were to define criteria for prioritizing needs and identification of project sites, to establish building designs and standards, and to accept completed works from DPWH in accordance with these standards. Finai authority for project selection, however, lay with the SBCs. The Borrower's review notes that the DECS role in ensuring conformity with selection criteria was undermined by the fact that the SBCs are chaired by the provincial governor or city mayor; the review thus recommends that these committees be chaired by a DECS representative as a way to reduce future political interference (paras. 2.28, 2.60, 2.64). While the recommendation has merit, the DECS was responsible for subproject appraisal and therefore should have had recourse during project implementation to disallow financing for subprojects which did not meet identified criteria. 1.17 Dissatisfaction with the quality of construction, and instances of non-compliance with site and building specifications were also reported by the DECS (2.28, 2.63). Final payments to contractors were certified by the DPWH, and unless the DECS formally accepted the works as having been satisfactorily completed, the classrooms could not be utilized. In 1986, the budget which had been allotted to DPWH as part of the national infrastructure program was transferred to DECS; however, this had no practical effect as the budget was still suballoted to the DPWH Regional Offices. In March 1991, responsibility for the administration and management of the School Building Program was transferred from DPWH to DECS, upon DECS representations to the Office of the President. The impact of this decision should be closely monitored and evaluated under the Second Elementary Education Project, particularly since it was not clearly established beforehand that DECS has the necessary technical  -7- expertise to take over from DPWH the administration of the School Building Program. 1.18 Furniture. According to the Staff Appraisal Report, furniture contracts were to be awarded either on the basis of Local Competitive Bidding procedures or through negotiations with trade schools able to manufacture furniture of satisfactory quality at reasonable prices. Although Bank supervision missions advised that these two procedures be compared in terms of production capacity, quality, delivery time and prices, there is no record that this comparison was undertaken, and the bulk of classroom furniture contracts was negotiated with trade schools. The Borrower's review emphasizes the educational and social benefits of contracting trade schools (paras. 2.33, 2.61), but it should be noted that the cost of the furniture component exceeded appraisal estimates by 712 in US Dollar terms, despite an overall cost underrun of 15X. 1.19 Costs. The actual total project cost is estimated at US$379 million equivalent, compared to the appraisal estimate of US$448 million equivalent (Table 3.5, para. 3.8). The overall cost underrun of 15Z in US Dollar terms was due in large part to the devaluation of tpe local currency from Pesos 7.5 per US Dollar in 1981 to Pesos 22.5 in 1989.- Cost underruns in the civil works and staff development components (23? in each case) were also related to revisions in program targets. Even though overall instructional materials targets were met, costs for printing and distribution was lower than the appraisal estimate by 38Z. Technical assistance costs exceeded appraisal estimates, but only by 7?. The one major cost overrun was in the furniture component, as noted above (para. 1.18). Proiect Results 1.20 Except for the reduced number of new classrooms (para. 1.15), the project substantially met its physical implementation targets as deZined at appraisal, including the construction of warehouses and trainling centers, production and distribution of instructional materials, procurement of furniture and equipment, and training of teachers, school principals and education managers at all administrative levels (Table 3.4). The projent also succeeded in meeting its objective to build institutional capacities within the DECS and its Regional Offices. The Bureau of Elementary Education has provided regular assistance to the regions, particularly in the utilization of curriculum materials and conduct of in-service staff training. The DECS Office of the Planning Service has improved its data collection inatruments and procedures, computerized its national Management Information System and developed staff capacities in the preparation of educational plans and budgets. Responsibility for the implementation of policies, programs and projects has been delegated to the Regional Offices, where Elementary Education Divisions and permanent Planning Units were established and strengthened as a result of the project. Once its status as a Government corporation was confirmed in 1985, the Instructional Materials Corporation developed into a highly efficient agency able to produce and distribute over 20 million texts in one year. The in-service training structure developed 3/ In Peso terms, the actual total project cost of Pesos 6.1 billion was greater than the appraisal estimate of Pesos 3.4 billion by 822.  - 8- under the project holds long-term promise for continued professional staff development. It is also worth noting that audio programs and materials developed under the earlier Bank-assisted Mass Media Pilot Project (Loan S008-PH) were utilized for PRODED's in-service teacher training. 1.21 The policy reforms and investment inputs under the project were intended: (a) to improve (i) net participation and cohort survival rates, (ii) student achievement, and (iii) teacher utilization; and (b) to reduce regional disparities in these three categories. While participation rates, student-teacher and teacher-class ratios showed some improvement, there was apparently little change in cohort survival, student achievement and the reduction of regional disparities (Table 3.7). It is extremely difficult to assess, however, the impact that the project may or may not have had on student and sector performance since no effective monitoring system tracked resources actually provided to schools. Thus, improvements in learning could not be evaluated nor project benefits established. As described in the Staff Appraisal Report, the project was to implement the following monitoring and evaluation activities: annual monitoring through the OPS Management Information System of inter- and intra-regional comparisons on student participation, performance and expenditures; school mapping for planning the location and distribution of educational facilities and resources; inventories of school facilities, furniture and equipment every four years; monitoring of teacher supply and demand; regular administration of standardized achievement tests; an in-depth evaluation involving baseline and follow-up surveys on school and home determinants of educational p.articipation and achievement; and research studies contributing to the formulation of sector policies and achievement of sector objectives. 1.22 Development of the OPS Management Info.mation System focussed on improving the retrieval of school uata and timely generation of an annual Statistical Bulletin to provide basic enrollment information. Special studies were conducted on school location planning and teacher supply and demand, and while useful instruments were generated, these were not fully integrated into the management systems. Facilities and furniture inventories undertaken in 1982 have not been updated, and while student testing was conducted in connection with other project components, the regular administration of national tests was not implemented. Bank review missions noted that key information was generally unavailable, e.g., actual location of School Boilding Program recipients compared to identified priorities, actual deliveries of furniture, equipment and instructional materials to schools, teacher utilization and deployment at the sub-regional levels, reliable student achievement data over time. Data relevant to these concerns were gathered but were not analyzed. Such analysis was particularly necessary to support decentralized programs, to target resources in accordance with the stated policy of giving priority to more disadvantaged schools and areas, and to evaluate the impact of such targeting. Effective monitoring and evaluation mechanisms might have been put in place if more front-end attention was given to coordination of the various components of the system, clear assignment of operational and reporting responsibilities, identification of information needs at different administrative levels in relation to available staff and skills, and more systematic utilization of specialist services. 1.23 Data generated by the 1981-82 baseline survey for the evaluation of determinants of educational participation and achievement (the Household and  -9- School Matchir,g Surveys) have been utilized for sector analysis and other research studies. PRODED studies have informed policy and planning where decision-makers were directly involved in the identification of research questions and discussion of results, as with the special studies identified at appraisal (Table 3.7, para. 2.25). PRODED also supported a large number of smaller studies but there was limited outside review to determine the technical adequacy of these research efforts, and relatively few had clear links to pressing policy and implementation problems in the subsector. Those studies which had important policy and program implications were not always fully exploited. One series of studies, for example, found no significant difference in teaching effectiveness between having one teacher teach all subjects in the fifth and sixth grades and the current policy of utilizing specialized subject teachers. These results have not led to significant policy discussion, however, despite the fact that improved utilization of fifth and sixth grade teachers was a principal objective of the project, and given that the use of specialized teachers reduces flexibility in addressing teacher supply and demand issues, in addition to having important cost implications. Such questions might usefully be considered in the policy dialogue that has been initiated in connection with the teacher training studies being undertaken in the Second Elementary Education Project. Proiect Sustainabilitv 1.24 Sustainability was an explicit concern for both the Bank and the Borrower throughout project implementation, and was addressed mainly by integrating project activities into the regular functions of the agencies involved in elementary education. The focus of these efforts was decentralizing to the DECS Regional Offices responsibilities for identifying priority school building projects, procuring other civil works, providing equipment and furniture, distributing textbooks and training administrative and school staff. The gradual transfer of these functions was well planned and involved, among others, increased budget support, the appointment of regional procurement committees and quality control officers, and the training of trainers for staff development programs at all levels. Regional budget proposals submitted to the DEOS central office now include provisions for components formerly funded by the project. Future development will require continued staffing, training and funding of the Regional Offices, and the installation of effective regional and sub-regional planning, monitoring and evaluation systems. With reference to the Government's textbook development program, plans to convert the INC into a regular DECS agency should be carefully studied with due consideration to issues of costs and efficiency in attaining program objectives (para. 2.58). 1.25 A follow-up to PRODED was a project identified following the Bank's 1988 Education Sector Study (Report No. 7473-PH), which found a need for continued support at the elementary level in order to reduce social inequities and improve quality in the educational system as a whole. The Second Elementary Education Project (Loan 3244-PH) is currently supporting the Government's 1990-92 elementary education investment program and action plan to help sustain the provision of essential school resources and other quality improvement measures, and to continue strengthening DECS capacities in planning and management. While PRODED provided the inputs and strengthened the organizational structures necessary for improving the delivery of educational services, the benefits derived from these accomplishments cannot  - 10 be precisely established (para. 1.21). The Second Elementary Education Project includes components designed to develop more effective monitoring and evaluation systems, including a national assessment program to routinely generate data on student achievement. Bank Performance 1.26 The Bank recognized immediately that the project required more intensive supervision than might normally be expected under a sector loan, and conducted 18 review missions between October 1981 and September 1988 (an average of 4.7 month intervals, compared to a Bank average of 6 months). Detailed aide-memoires anA supervision reports of these missions reveal commendable efforts on the part of Bank staff to help improve project implementation. The Borrower's review focusses on the assistance given in matters related to procurement and utilization of loan proceeds (para. 2.48). As importantly, however, supervision missions consistently addressed substantive issues and provided crucial advice on teacher in-service trainirg, instructional materials, and other aspects of educational quality. 1.27 The Borrower's review correctly notes the lack of continuity in the assignment of Bank staff to project supervision and the consequent need for continuing orientation of staff new to the project (para. 2.53). Between 1981 and 1988, six different Project Officers had responsibility for PRODED, and fourteen other Bank staff and consultants participated in supervision missions. Borrower Performance 1.28 Despite their limited experience prior to the project, PRODED staff rose to the challenge of a complex and difficult project, and demonstrated exemplary commitment to its educational and institutional objectives. The competence and confidence of the various implementing agencies at the central and regional levels has clearly grown over the course of project implementation. The Borrower's overall commitment was reinforced by the renewed priority given to the education sector and the project by the Government since 1986. The project also benefitted from ongoing efforts to streamline procurement and fund release procedures and thereby facilitate project implementation (para. 1.11). 1.29 Delays in the submission of the annual audit reports for calendar years 1982-88 ranged from 3 months to 5 years (Table 3.8). Since final disbursement from the Loan was made in August 1989, an audit report for 1989 was required but has not been forwarded to the Bank. Although required by the Loan Agreement, the annual audit reports did not include a separate opinion on the use of Statements of Expenditures and a separate Special Account audit report was received only for 1986. A Bank review of the 1983 and 1984 audit reports noted that the accounts submitted by the Commission on Audit (COA) were much more elaborate than necessary and dealt with a considerable number of management issues in addition to the financial aspects. It was suggested that the Bank's audit requirements could be more simply and promptly met by a verified statement of receipts and expenditures, and expenditure sources, with the accompanying auditor's evaluation, and without a full performance audit as COA had been doing. Beyond following up with COA, however, there was little the Borrower's project staff could do to expedite submission of audit reports.  - 11 - Prolect Relationships 1.30 Early project management and implementation problems seem to have derived in part from a lack of clarity in the specific roles and relationships among the agencies and departmental units involved in the project. Since the long-term status of EDPITAF was in question at the time of project preparation (its original mandate as a ten-year task force was expiring in 1982), its role in project implementation could not be clearly defined from the outset, and logistical and morale problems arose over the first attempts to regularize EDPITAF staff into the DECS bureaucracy. Initial difficulties in the implementation of the textbook component were attributed to inadequate definition of management responsibilities between the IMC and the BEE, and to the dismantling and reconstitution of Curriculum Development Centers which were responsible for the writing of manuscripts. There was also a lack of clarity at the sub-national levels about the responsibilities of local aithorities for various stages of textbook distribution. Despite the existence of a Memorandum of Agreement among the agencies involved in the School Building Program, Bank supervision missions regularly mentioned the need to clarify and strengthen the role of DECS. The Borrower's review also notes that project implementation would have been facilitated had an official directive specifically identified the departmental unit (i.e., the Bureau of Elementary Education) responsible for overall coordination of the project (para. 2.54). ConsultinR Services 1.31 Individual consultants were engaged to provide about 6 and 1.75 staff-months of local and foreign expert services, respectively, and a number of institutions were contracted to assist in fulfilling specific project tasks (Table 3.4). The actual utilization of expert services was much lower than the requirements estimated at appraisal, which were 290 and 216 staff-months of local and foreign consultancies, respectively. This was due to the Government's desire to allocate more funds to fellowships, in which the Bank concurred, as noted favorably by the Borrower (para. 2.50). While fellowships and other training were important for the longer-term objectives of developing local staff and institutional capacities, expert services were also needed for the more immediate accomplishment of specific project activities. It is telling that project performance was less than satisfactory in the various aspects of monitoring and evaluation (para. 1.21), where extensive technical expertise was identified as needed by both the Borrower and the Bank during appraisal and negotiations, but was not fully utilized. 1.32 Due largely to the high cost of foreign consultants, the Government has encouraged the increased use of local experts. The Borrower's review asserts that local consultants were as qualified to provide expert services to the project as foreign consultants (para. 2.62). Clearly, local expertise should be utilized where this exists; identification and assessment of such expertise remains, however, an essential task of project appraisal and supervision. One Bank review mission recommended that, where foreign expertise was deemed necessary, such expertise could be obtained through linkages with well-established overseas institutions which could provide both staff training and consulting services. If such institutional linkages had been pursued, they would more have been likely to have had long-term benefits  - 12 - for the Borrower than contracting placement agencies to adminieter the foreign fellowship programs, as was done in this project. Prolect Documentation and Data 1.33 Project files in the Asia Information Center were well-maintained and readily provided most of the data required for the preparation of this report. Important information and insight were also provided to this report by the full Borrower's PCR, which was the product of a noteworthy process of bringing together the agencies involved in implementation to assess project performance. This highlights the fact that the maintenance of project data and thorough documentation by the Borrower complement the Bank's efforts to maintain effective project databases, and contribute to the development of Borrower capacities in project implementation and evaluation.  - 13 - PART II. PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE Al Proiect Background. Obiectives and Plan 2.1 The reform program in elementary education was embodied in a ten- year development program (1981-90) known as the Program for Comprehensive Elementary Education Development (PROCEED). Thiq program was the first concrete effort in developing a long range program to upgrade the elemen. y education sector. In view of the Government's inadequacy to fund PROCEED, a US$100 million World Bank loan was solicited to help finance its first four years which was the Program for Decentralized Educational Development, popularly known as PRODED. 2.2 Specifically, PRODED aimed to: (a) raise pupil achievement from 48% in 1979 to 55% by 1985; (b) increase the participation rate of 7-year olds from 74% to 84% in 1985/86; (c) improve the cohort survival rate from 65Z to 78% within 1981-1985; (d) raise the pupil-teacher ratio from 31:1 to 36:1 by 1986/87; and (e) improve management capabilities to increase system effectiveness and efficiency. 2.3 Specific sector policy issues identified to redress disparities in educational opportunity as well as to improve quality and efficiency included the introduction of: (a) a revised investment policy; (b) a revised policy for recurrent financing; (c) revised policies for student intake and progression; and (d) a revised policy for teacher deployment. 2.4 The investment program consisted of the following subprojects: (a) the New Elementary School Curriculum (NESC) which emphasizes basic skills, intellectual development and values; (b) staff development to provide training opportunities and to improve the delivery of btaic education; (c) technical assistance to improve the program by awarding fellowships and availment of experts/consultancy services for strengthening the technical capability of the top-level management in implementing development programs; (d) special studies and research to provide empirical data required for sector policy-making and evaluation of PRODED effects; (e) instructional materials development, in support of the NESC and to sustain the efforts introduced by the Textbook Project under Loan 1224-PH; and (f) facilities development such as civil works which includes the School Building Program and other works, equ..pment and reference materials and furniture, to provide adequate facilities for the public elementary school system. 4/ Part II was extracted by Bank staff from the PCR prepared by DECS to reflect the Borrower's assessment of project performance; the Borrower's PCR is available in OED and the Region's Files. Comments received from DECS on the PCR (Parts I to III) were incorporated in the present Report. In a letter forwarded to the Bank by DECS, the National Economic Development Authority (NEDA) recommended areas for further analysis; this letter is reproduced in full at the end of Part II. The issues raised by NEDA would best be addressed in an in-depth impact evaluation of the project.  - 14 - Proiect Manakement 2.5 The magnitude of PRODED necessitated a policy-making structure which would provide direction in the administration and implementation of the investment program. From 1979 up to 1988, a structure consisting of an advisory group to the Secretary, a policy-making body known as a management group, a technical body known as the Project Technical Staff (PTS), and a .egional planning body known as the Regional Project Managemont Team (RPMT) was set up. RPMTs were created in each of the 13 DECS regions. At the operations level, the PTS took charge of all planning, implementation, monitoring, evaluation, resource identification/acquisition, loan availment and liaising with the World Bank. The main function of the RPMT was the generation and preparation of regional subproject requests and the implementation of approved subprojects. The implementation of the textbook component was the main function of the IMC. 2.6 Until 1982, the PTS operated as a self-contained project implementing unit but underwent organizational modifications as a result of top-level reorganizations and subsequent changes in management policies. There were also changes within the PTS and EDPITAF structures during the project cycle. These changes which attempted to achieve efficient project operation, however, caused substantial delays in project implementation. Project Impleme!ntation 2.7 On the whole, all the project components were satisfactorily implemented with loan drawdowns reaching more than 90% as the Loan Account was closed on August 31, 1989. Policy Improvement 2.8 In an attempt to narrow the gap in the allocation of expenditures among regions and provide emphasis on educational performance, a formula for resource allocation was introduced under PRODED. Three revisions were made on the original formula during the PRODED years. An analysis shows that whichever version was used, inequities still remained. That is, some regions which are classified as deficient in terms of the prescribed education index received less allocation than certain regions with better performance index. The trends indicate that the search for an appropriate investment formula that will address educational deficiencies should not end with PRODED, particularly with the growing awareness that the country's future growth will come mainly from improved efficiency in the use of its scarce resources. 2.9 The project was to help formulate policies that would increase non-salary items from 2% to 7% of budgetary allocations during the period 1982-90. Since 1986, the non-salary items have substantially increased, surpassing project expectations, in allocations for maintenance, operations, learning resources, as well as capital expenditures for building construction, facilities and equipment. Continuing assessment was done to determine whether the DECS attempted to attain the following project targets: 22-3% of the total appropriation for recurrent expenditures is to be allocated for instructional materials and supplies; 2S-32 for project development and supervision and in-service training and 12 for maintenance of facilities. PRODED funded a study on school cost and financing which reports that from  1984 to 1988, the Government appropriated substantial amounts for these items and satisfactorily met the targets set by the project. 2.10 Improvements in teacher utilization were expected to be made by assigning teachers to classes of more than one grade level in the intermediate grades, but keeping them close to their area of specialization. Requirements for teachers would be reduced if the teacher-class ratio in Grades 5 and 6 were reduced to 1:1 or 4:3. Such a policy was expected to free resources for non-salasy expenditures. In 1988-89, there were 179,838 primary classes handled by the same number of teachers using the 1:1 plan. Although there were only 71,546 intermediate classes, a total of 107,810 teachers were needed to handle these classes, which means a ratio of 1.5 teachers to a class. To explore further strategies to maximize the utilization and deployment of teachers, PRODED funded the special study on Teacher Supply and Demand, one objective of which was to develop a formula for allocating new teacher items. The study also initiated dialogues with teacher training institutions on how to produce prospective teachers who are competent in teaching all subject areas in the elementary curriculum. 2.11 The DECS exerted efforts to ensure enrollment of all 7-year old children in school. To improve participation by accommodating every child who meets the admission requirements, the following measures were taken by the schools: (a) enroll as many as 40 to 45 pupils per class or employ a 4:3 or 1:1 tiacher-class ratio in the intermediate grades; (b) resort to multigrade classes under one teacher whenever' necessary; (c) resort to the two-shift plan in case of shortage of claasrooms; (d) observe early registration to obtain advance estimates of the number of classrooms, teachers and instructional materials needed. 2.12 The elementary education sector undertook certair. interventions which reflected the sector's efforts to improve the cohort survival, progression and dropout rates which include the following: (a) the organization of multigrade classes to accommodate pupils of school age in remote areas; (b) the development of multi-level materials to cater to varied ability groups of pupils; (c) introduction of the Accelerated Learning Program for Elementary Schools to meet the needs of the fast learners through vertical acceleration; (d) non-traditional approaches of delivering basic education. Management Improvements 2.13 The BEE, as the lead implementing unit of the project, spearheaded several activities in order to improve its management capabilities and its linkages with the regions for better monitoring of sectoral activities at the field level. The BEE took an active role in introducing guidelines and standards for the development and utilization of curriculum materials, staff in-service training and physical facilities. To equip BEE staff with the necessary management and supervisory skills, the project awarded fellowships to key personnel. The BEE also assisted the PTS in creating the RPMTs. The Elementary Education Division of each region likewise took a lead role in the RPMT activities, thus upgrading staff capability at the regional/sub-regional levels. Each region is now staffed by a regional research group, curriculum group, a regional training team and a supervision and evaluation team. Improvements are manifested by the coordination among the units involved in the management of elementary education. The BEE and the Regional Offices have  - 16 been equipped with the management capa'bility to respond to the national educational strategy and to the regional needs as well. 2.14 The second management concern of the project was the expansion of the functions and organization of the OPS in particular and the planning work of the Department in general. As in BEE, substantial project funds were allocated to staff development, fellowships and expert services. A great majority of the OPS staff were trained in educational research and evaluation, statistical methods, cost-benefit analysis and educational planning. These staff now man key positions of the OPS. Regional Planning Units were established at the regional levels through the initiative of OPS. The project took a lead role in the installation of a computer-based MIS envisaged to reduce data processing time and enable the OPS to respond with greater speed to the information needs of top level officials in planning and decision- making. The project purchased 240 microcomputers for the planning work of the central and regional offices, contracted the services of the appropriate consulting groups to develop software packages and conduct computer training among central and regional staff. The project also assisted the DECS Financial Management Service (FMS). The project provided for the computerization of financial data and subsequently, computer training for FMS personnel. Further, the project procured a computer system to upgrade the DECS mainframe computer being used for payrolls and other financial planning. 2.15 As a condition to the effectivity of Loan 1224-PH, EDPITAF organized the Textbook Board Secretariat (TBS) to serve as the central directing and coordinating unit for strengthening textbook development, production, distribution and utilization. By 1981, TBS had become a fully organized central agency staffed with qualified managers and specialists. The Government committed itself to convert TBS into a corporation to implement the textbook component of PRODED. Executive Order No. 806 was issued on May 27, 1982 establishing the IMC. On May 31, 1985, Letter of Instruction No. 1463 ordered the opevationalization of IMC and confirmed the transfer to the corporation of the TBS staff and all assets and liabilities, as well as all applicable appropriat.ons in the General Appropriations Act of 1985 pertaining to the DECS textbook development provision program. Software Components 2.16 The new curriculum (NESC) was the centerpiece around which the other project components were woven. The NESC renewed emphasis on return to the basics as well as values of humanism and Filipinism. There was a reduction in the number of learning areas or subjects from eight subjects to four in Grades 1 and 2, from eight to six in Grade 3 and from eight to seven in Grades 4 to 6. The NESC was gradually introduced nationwide on a grade by grade level each year starting with Grade 1 in 1983/84 up to Grade 6 in 1988/89. 2.17 The Instructional Materials Development component of PRODED was designed to support the NESC. This involved: (a) the development of textbo<cs with corresponding teacher's manuals and provision of supplementary or reference materials; (b) the production and distribution of about 11 million textbooks yearly; and (c) the production of a number of reference materials. The start of the development of the NESC materials in January 1982 and subsequent implementation by grade level each year starting with Grade 1 in June 1983 did not allow enough time for developing new textbooks according  17 - to the regular schedule which normally covered a period of three years. Consequently, a one- and two-year crash program was adopted for the provision of materials for Grades 1 and 2. Pending production of the new textbooks under the new curriculum, supplementary veacher's guides were written to assist teachers in using the available texts and manuals. For Grades 3, 4, 5 and 6, a regular development cycle was followed. 2.18 During the period January 1, 1982 to December 31, 1988, a total of 137 elementary school titles were developed. Production and delivery of the said materials, however, were considerably delayed due to the problem in paper procurement and printing services which were only eased with the new Administration's policy in reducing time for major contracts and increasing of the contract signing authority of the DECS secretary from P 2 million to P 10 million. At the end of the project in 1988, all textbook titles required by the NESC had been developed and 86.67 million copies of textbooks, teacher's manuals and workbooks were printed and dispatched to the regions and school divisions from the IMC central warehouse. Using IMC distribution grants, regional and division officials moved the books to the end-user schools. However, textbooks that had been dispatched from the IMC central warehouse and supposed to have reached the schools were often found still stored in provincial warehouses. One of the most common reasons given was the delay in the receipt of the distribution funds from the Regional Offices. 2.19 In support of the NESC, the Educational Reorientation Program (ERP) was developed. At the start, the training curriculum was focused solely on Values/Beliefs and Interpersonal Skills on the premise that any teacher who graduated from a teacher training institution would be equipped with the technical skills required in classronm management. Feedback, however, showed that the training did not render the Grade I teachers equal to the challenges of the new curriculum. So the ERP curriculum, starting from the Grade 2 teachers was revised to include the technical aspects which aimed to enhance teaching efficiency for the teachers and administrative managerial and organizational skills for the educational managers. 2.20 The ERP used two strategies in the pursuit of its objectives: the formal training phase, and the non-formal training phase, conducted through the network of Learning Action Cells (LACs). The LAC became the mechanism for the continuous staff development efforts after the formal training phase. The LAC identified its problems, planned alternatives to solve these problems, ..mplemented and evaluated same. LACE were organized from the school to the national level. In order to achieve maximum efficiency and to ensure commitment in the training program, a common implementation strategy was set and a corps of trainers was trained from the regional and sub-regional levels. 2.21 Training was originally intended for teachers from disadvantaged districts. However, upon the request of unserved clientele, DECS targeted the training of 100X of the public school teachers and the school administrators. This more ambitious program exacerbated problems of lateness and inadequacy of materials, and the processing of contracts. Nevertheless, despite such problems, the targets of teachers and administrators to be trained were achieved and exceeded. 2.22 The task of planning and implementing the technical assistance program was undertaken by the Technical Assistance Screening Committee and PTS. Training needs were determined after a survey and consultation with the  - 18 - heads of recipient offices. At the end of project implementation, a total of 1,696 staff-months or 81S of the available 2,087 staff-month provision (532 foreign; 1,555 local) for the fellowship program had been utilized. This represents 179 foreign fellows (13 degree; 166 non-degree) and 979 local fellows (30 degree and 949 non-degree). IMC, which directly managed its own fellowship program, sent 56 fellows to foreign e'..ort-term courses utilizing a total of 93.75 staff-months. 2.23 The areas where the services of experts/consultants were likely to be needed were determined in the same manner cited earlier. The original target of 506 staff-months for expert services was reduced to 235 (55 foreign and 180 local) in 1985. The target was further reduced to 49 staff-months (13 foreign and 36 local) in 1986 as a result of the loan reduction and the Borrower request to allocate the unutilized expert services for fellowships. In the event, PRODED utilized only two foreign experts for a total of 1.75 staff-months. 2.24 The research component addressed itself to the whole research community in general as it elicited participants of research consumers and producers. The 58 researches conducced by the project covered all the research concerns of the elementary sector identified. The studies were completed between 1982-89, however, nnly 40Z have completed the final reports while only 38% of the reports have been. dLstributed to the field. 2.25 Six special studies were undertaken during the PRODED years, namely: (a) School Location Planning; (b) Teacher Supply and Demand; (c) Sector Monitoring; (d) Household and School Matching Survey (HSMS); (e) Philippine Elementary Education Cost and Financing; and (f) Try-out of the NESC. The first three special studies were intended to strengthen the capability of OPS in providing statistics and information needed in planning, implementing and evaluating the elementary education sector, and to strengthen the capability of the regional and sub-regional offices in collecting, processing and utilizing statistics and related information. The HSMS was intended to evaluate PRODED's impact on the performance of the elementary education system, particularly if PRODED positively reduced disparities between low performing and high performing regions. 2.26 The research and special studies have served as inputs to sector policy directions, planning and implementation of innovative and cost-saving educational programs and projects. The project research findings have reached up to the regional/divisional level; however, they have not extensively seeped down to the teacher level, primarily due to lack of structures and avenues for disseminating the research findings. Some research studies on dissemination schemes initiated by the project are presently being completed by selected regional staff. Hardware Components 2.27 Accomplishments under the regular School Building Program (SBP) over the period 1982-88 include: (a) 48,532 newly constructed classrooms; (b) 19,751 repaired structures; (c) 2,608 multi-purpose workshops; and (d) 863 toilets representing 722, 67%, 76Z and 452 respectively of the programed quantities. About 9,700 classrooms were built annually from 1982-85, and about 4,100 classrooms per year from 1986-88, or an overall yearly average of  - 19 - 7,300 (66% of the appraisal targets) new classrooms for the entire investment period. 2.28 The major problems which affected SBP include: (a) realignment of project sites which were often outside the control of DECS. To minimize these incidents, a more systematic reporting/feedback mechanism was set and site selection procedures, through OPS, followed the results of its School Location Planning Study. However, this problem still persisted through the project cycle; (b) the SBP was beset by non-compliance with building specifications by the contractors who could receive final payments, even without the concurrence of the DECS representative, so long as project accomplishments were properly certified by a government engineer which in this case, comes from DPWH; and (c) the lack of proper coordination of management efforts at the DECS Regional Offices. 2.29 In order to ptovide a base for the development of staff, curriculum and materials at the regional levels, one Regional Educational Learning Center (RELC) was constructed in each of the 13 regions (two RELCs in Region IV on account of its size and geographical location). Six RELCs (in Regions III, IV, IX, X, XI and XII) were constructed between 1982 and 1983 within the contract schedule of 120 days and the cost estimate of P 1 million each. They were directly managed by the DPWH. Completion of the other seven RELCs was considerably delayed in view of their implementation by phases. Phases I and II were managed and supervised by the DPWH with funds coming from its office and the DECS. Phase III which was financed out of loan proceeds was fully managed by the regions under the technical L