Colombia - Rural Education Project

Document of The World Bank Report No: 20099-CO PROJECT APPRAISAL DOCUMENT ON A PROPOSED ADAPTABLE PROGRAM LOAN IN THE AMOUNT OF US$20 MILLION EQUIVALENT TO THE REPUBLIC OF COLOMBIA FOR A RURAL EDUCATION PROJECT IN SUPPORT OF THE FIRST PHASE OF THE PROGRAM March 10, 2000 Human Development Management Unit Country Department Unit for Colombia, Ecuador and Venezuela Latin America and the Caribbean Region  CURRENCY EQUIVALENTS (Exchange Rate Effective November 5, 1999) Currency Unit = Colombian Pesos Colombian Pesos Il= US$ 0.000509 US$ I = Col. Pesos 1,965 FISCAL YEAR January I December 31 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan (Prestamos Adaptables para Programas de Desarrollo, PA PD) CAS Country Assistance Strategy DIDTH General Direction for Investigation and Development of Human Talent (Direccion General de Investigaci6n y de Desarrollo del Talento Humano) DNP Department of National Planning (Departamento de Planeaci6n Nacional) FMS Financial Management Specialist GDP Gross Domestic Product GNP Gross National Product GOC Government of Colombia IBRD International Bank for Reconstruction and Development (Banco Internacional de Reconstrucci6n y Fomento, BIRF) ICBF Colombian Institute for Family Welfare (Instituto Colombiano de Bienestar Familiar) ICR Implementation Completion Report IDA International Development Agency MEN National Ministry of Education (Ministerio de Educacion Nacional) NGO Non-Governmental Organization PAD Project Appraisal Document PIU Project Implementation Unit PEI Institutional Education Project (Proyecto Educativo Institucional) PEM Municipal Education Project (Proyecto Educativo Municipal) PHRD Japan's Policy and Human Resources Development Fund PMR Project Management Report PPP Productive Pedagogical Project (Proyecto Pedag6gico Productivo) UNDP United Nations Development Programme RSC Rural Social Contract (Contrato Social Rural) SAT Tutorial Learning System (Sistema de Aprendizaje Tutorial) SER Rural Education Service (Servicio Educativo Rural) TCR Techincal Coordination Group (Grupo de Coordinacion Tecnica) UCE External Credit Unit (Unidad de Credito Externo) UNDP United Nations Development Programme Vice President: David de Ferranti, LCR CMU Director: Andres Solimano, LCC4C SMU Director: Xavier Coll, LCSHD Task Team Leader/Task Manager: David Harding, LCSHD  COLOMBIA: RURAL EDUCATION PROJECT RURAL EDUCATION PROJECT CONTENTS A. Program Purpose and Project Development Objective Page 1. Program purpose and program phasing 3 2. Project development objective 3 3. Key performance indicators 4 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 4 2. Main sector issues and Government strategy 4 3. Sector issues to be addressed by the project and strategic choices 8 4. Program description and performance triggers for subsequent loans 9 C. Program and Project Description Summary 1. Project components 1 2 2. Key policy and institutional reforms supported by the project 13 3. Benefits and target population 13 4. Institutional and implementation arrangements 14 D. Project Rationale 1. Project alternatives considered and reasons for rejection 18 2. Major related projects financed by the Bank and other development agencies 20 3. Lessons learned and reflected in proposed project design 21 4. Indications of borrower commitment and ownership 23 5. Value added of Bank support in this project 23 E. Summary Project Analysis 1. Economic 23 2. Financial 24 3. Technical 24 4. Institutional 25 5. Social 27 6. Environmental assessment 28 7. Participatory approach 28 F. Sustainability and Risks 1. Sustainability 29  2. Critical risks 30 3. Possible controversial aspects 31 G. Main Loan Conditions 1. Effectiveness Condition 32 2. Other 32 H. Readiness for Implementation 32 I. Compliance with Bank Policies 33 Annexes Annex 1: Project Design Summary 34 Annex 2: Project Description 43 Annex 3: Estimated Project Costs 46 Annex 4: Cost Benefit Analysis Summary 47 Annex 5: Financial Analysis and Fiscal Impact Analysis 53 Annex 6: Procurement and Disbursement Arrangements 57 Annex 7: Project Processing Schedule 65 Annex 8: Documents in the Project File 66 Annex 9: Statement of Loans and Credits 67 Annex 10: Country at a Glance 69 Annex I 1: Sector Policy of the Government of Colombia 71 Annex 12: Pedagogical models available to rural areas 89 Annex 13: Educational Attainment for Different Age Cohorts (1995 WB data) 91 Annex 14: Strategy for Incorporating Indigenous and Anfro-Colombian Communities 92 Annex 15: Departmental Strategic Partnerships (Alianzas Estrategicas Departamentales) 96 Annex 16: Information and Communication Strategy 104 MAP(S)  COLOMBIA RURAL EDUCATION PROJECT Project Appraisal Document Latin America and Caribbean Region LCSHE Date: March 10, 2000 Team Leader: David Harding Country Manager/Director: Andres Solimano Sector Manager/Director: Xavier E. Coll Project ID: P050578 Sector(s): EP - Primary Education Lending Instrument: Adaptable Program Loan (APL) Theme(s): RURAL DEVELOPMENT; EDUCATION Poverty Targeted Intervention: Y Program Financirg Data Estimated APL Indicative Financing Plan Implementaton Perod Borrower l _____ ___________ (Bank FYI IBRD Others Total Commitment Closing US$ m % US$ m US$ m Date Date APL 1 20.00 50.0 20.00 40.00 05/31/2000 06/30/2004 Republic of Colombia Loan/ Credit _____ APL 2 20.00 50.0 20.00 40.00 07/01/2004 06/30/2007 Republic of Colombia Loan/ Credit _600601__* APL 3 20.00 50.0 20.00 40.00 07/01/2007 06/30/20 10 Republic of Colombia Loan/ Credit APL 4 Loan! Credit Total 60.00 _ _ 60.00 120.00 _____________ Project Financing Data IZ Loai El Credit El Grant IGuarantee KOther (Specify) For LoanslCredits/Others: Amount (US$m): First Phase: US$20.0 (in US dollars) Proposed Terms: Fixed-Spread Loan (FSL) Grace period (years): 5 Years to maturity: 17 Commitment fee: 0.85% p.a. during first 4 years; 0.75% p.a. thereafter Front end fee on Bank loan: 1.00% F re Local Foreign Total Government 14.80 0.00 14.80 IBRD 16.00 4.00 20.00 IDA LOCAL CONTRIBUTION 5.20 0.00 5.20 Total: _ 36.00 4.00 40.00  Borrower: REPUBLIC OF COLOMBIA Responsible agency: MINISTERIO DE EDUCACION NACIONAL (MEN) Viceministerio de Educaci6n Nacional Address: CAN, Avenida El Dorado. Bogota, Colombia Contact Person: Dra. Marta Lucia Villegas, Viceministra de Educaci6n Basica Tel: (571)315 7777 Fax: (571) 222 4958 Email: Men32@Hemeroteca.Icfes.Gov.Co Estimated disbursements ( Bank FYIUS$M): Annualt 0.2 3.0 6.7 7.4 2.7 Cumulative 0.2 3.2 9.9 17.3 20.0 Project implementation period: 3 years 7 months Expected effectiveness date: 05/31/2000 Expected closing date: 06/30/2004 OCS PPL PAO Foer O-ber 9 19 -2-  A. Program Purpose and Project Development Objective 1. Program purpose and program phasing: The Rural Education Program (the Program) is the Government's principal program for realizing its rural education strategy (see Letter of Sector Policy, Annex 11) for improving access to quality basic education in rural areas. The Program would pursue this objective by: (a) supporting changes in the central Ministry of Education (MEN) to enable it to assume its role in a decentralized system of educational management as the source of knowledge management and evaluation of strategic education models; (b) building public-private sector partnerships at the departmental level to manage and finance subprojects; and (c) strengthening local planning processes at municipal and institutional levels. The Program will also support the development of social capital, through fostering school-community relationships and introducing appropriate classroom methodologies. The Program will be implemented over a period of 9-12 years, through a series of phased, three-year projects, linked by a logical sequencing to allow results and lessons learned to be incorporated into the preparation and appraisal of subsequent phases. During the first phase, the Project will support the establishment of the capacity to implement, monitor and evaluate the Program and the financing of investments in basic education (defined as grades 0-9) for 176,000 students in 40 to 70 selected rural municipalities within 10 departments. The choice of an Adaptable Program Loan (APL) is justified for several reasons. First of all, the complex nature of the development process in rural areas of Colombia can be supported only through a sustained, multi-phase effort. This adaptable lending program will allow the innovative content of the Project, which supports the strengthening of the institutions responsible for basic education involved in the ongoing process of decentralization in Colombia, to be tested in the first phase so that the design of subsequent phases can be refined to incorporate lessons learned. On one hand, the Project will support the development of the MEN's role in the decentralized context, as an agent of knowledge generation, evaluation and promotion of new activities and policies, supervision of the quality and equity of the education services, and information dissemination concerning the impact of the four Project components. On the other hand, the Project will support the strengthening of the municipalities' capacity to promote the development of education. This will be achieved through the implementation of municipal education plans (PEMs) or municipal subprojects, with the technical and financial assistance of other bodies, both public and private, through the formation of Departmental Strategic Partnerships (Alianzas Estrategicas Departamentales). The long-term program would allow a constant focus on the development objectives, while permitting flexibility in the design of each phase to adapt to changing needs, priorities, leadership and personnel. The logical sequencing of the program is described in Block B, section 4. 2. Project development objective: (see Annex 1) The development objectives of Phase I (the Project) reflect the Program goals of promoting coverage and quality in grades 0-9 in rural areas by: (a) improving access to quality basic education services for a total number of 176,000 students in 40-70 rural municipalities located in 10 departments; (b) strengthening the Borrower's capacity to manage the implementation of education projects in rural areas; (c) supporting, through school-community activities and classroom methodology, the development of social capital, thereby helping to achieve the prevention and resolution of conflict; and (d) strengthening the Borrower's capacity to implement a reform of technical education in rural areas. Particular attention will be given to improving access to the pre-school class for 3-5 year olds (grado cero) and to grades 6-9, through strategic interventions for increasing educational coverage through the efficient - 3 -  and equitable allocation of existing resources rather than construction of new buildings or the hiring of new teachers. Project financing for quality improvement will concentrate on grades 1-5 to address one of the reasons for the high drop-out rates that reduce coverage in grades 6-9 (Annex 13). The improvement of teacher effectiveness and the overall quality of education in the targeted municipalities will be mainly achieved through: (a) the implementation of a reform of Escuelas Normales (teacher training schools) located in rural areas, and the strengthening of in-service teacher training in the selected municipalities; (b) the strengthening of sector management at all levels, including the creation of Redes Educativas (rural school networks); and (c) the provision of curricular and school-community activities in support of an innovative Education for Peace concept aimed at developing social capital, thereby helping to mitigate the incidence of violence and conflict. The activities mentioned above will be financed through an integrated strategy based on national interventions under the leadership of the MEN coupled with demand-driven subprojects prepared by selected municipalities. 3. Key performance indicators: (see Annex 1) Key performance indicators for the Project will be: (a) increased educational enrollment and learning achievement and reduction in student dropout and repetition rates among basic education students in participating municipalities; (b) strengthened community participation in school governance; (c) formation and effective functioning of public-private sector partnerships at departmental level; (d) financial and human resources contributed as needed at municipal levels; and (e) definition of effective school-community programs in the PEMs. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 17107 CO (11/6197) Date of latest CAS discussion: 11/18/99 The Bank's Country Assistance Strategy (CAS) has two main objectives: poverty reduction and social development with sustainable growth. To address these objectives it identifies six areas of strategic importance: (a) promoting peace and development through a focus on the socio-economic determinants of violence; (b) promoting rural development; (c) developing human capital; (d) attaining public sector responsiveness and efficiency; (e) improving infrastructure services; and (f) ensuring sustainable development. The CAS explicitly recognizes that the country's development is adversely affected by the following conditions: low levels of educational quality and coverage, which affect particularly poor communities and rural areas; an ever-widening rural-urban gap; and the widespread existence of high levels of political, drug and interpersonal violence, which has had an increasing impact on the rural areas. The proposed Program and its Phase I Project would contribute directly to the first three strategic areas identified in the CAS and would also contribute to improving public sector responsiveness and efficiency and sustainable development. The Project will address these objectives by: (a) redressing the urban bias in the delivery of social services; (b) strengthening institutions in the rural sector and promoting the creation of strategic partnerships among the public, private and non-profit sectors; and, (c) increasing social capital, participation and democratic processes through programs and interventions designed to build local capacity to address the underlying causes of violence and conflict. 2. Main sector issues and Government strategy: Rural sector issues: Poverty. In Colombia, 29 percent of the population live in dispersed areas or in centers of fewer than 5,000 people, while 38 percent of the Colombian population live in municipalities and towns whose -4 -  economies are based on agriculture. The Colombian rural sector is afflicted by poverty, rising unemployment, and criminal and political violence. Despite a steady decline in the incidence of poverty in the last decades, poverty remains a critical problem with strong rural and regional dimensions. Seventy percent of people with incomes below subsistence level live in rural areas, compared to an average of 54 percent in Latin America and the Caribbean. Inadequate access to basic health and education services are among the leading causes of rural poverty, together with low access to productive resources (i.e. land, finance, and appropriate technology). Restoring peace. Participants consulted during preparation of the Project, as well as those involved in preparation of the CAS, identified restoring peace as the most significant development priority for Colombia. Levels of violence have increased dramatically since 1985. While political violence receives the most public attention, only 20 percent of homicides are categorized as "political" (i.e. attributed to paramilitary, guerrilla and army), with the remaining 80 percent the result of organized crime (related to irug trafficking and organized kidnappings) and social violence (including domestic violence), which is particularly related to alcohol and drug use. The lack of educational and employment opportunities have been cited as one of the main contributing factors for the burgeoning criminal market and for violence among youth. This, in turn, has been attributed to the limitations in availability and quality of primary and secondary education, especially in the rural areas. Rural Education issues: The main issues affecting education in rural areas are: (a) inadequate and inequitable coverage; (b) poor educational quality; (c) weak institutional capacity and governance at the local level; and (d) lack of relevance and responsiveness of education, especially technical education, to the needs of the labor market. Insufficient coverage. In rural Colombia, geographic isolation and reliance on child labor for household income, as well as low average level of parental schooling, have a negative impact on children's preparation for an access to schooling, as well as on the quality of the education provided to them. Dropout and repetition rates are higher in rural than urban areas, as is the incidence of children who never attend school. The net enrollment rate for rural areas is 30 percent compared with 65 percent in urban areas; dropout rates for rural and urban areas are 10.9 and 2.5 percent respectively. Participation in pre-school programs is less than 4 percent for rural children, compared with 23 percent nationally. The educational indicators also tend to be lower for indigenous and Afro-Colombian communities in rural areas, although there is a paucity of disaggregated data on these groups to make a systematic assessment. These gaps in access to schooling (particularly wide at pre-school and post-primary levels) are closely associated with the low socio-economic status of rural dwellers and the limited availability of quality education services in rural areas. Low quality: International educational assessments of learning achievement have indicated low standards of education in Colombia compared with other countries. According to the 1996 Third International Mathematics and Science Study (TIMMS), Colombia placed low in scores of mathematics and science tests compared to 40 other countries. Whereas Colombia scored about average in a 1999 study of mathematics and language performance among third and fourth grade students conducted by UNESCO in 13 Latin American and Caribbean countries, scores indicated a high level of disparity between the achievement of urban students and their rural counterparts who scored consistently lower. National assessments in Colombia have indicated the inadequacy of educational standards, with students in rural areas of most departments consistently performing worse in achievement tests than urban areas, particularly in such tasks as knowledge application and problem-solving in language and mathematics. - 5 -  Needfor technical education: While very little data is available on the needs of the labor market in rural areas, the need for technical education has been identified by representatives of local government and the productive sectors as a key need. While a number of initiatives have been undertaken in this area, little or no evaluation is available on their effectiveness. Moreover, the responsiveness of technical education programs in the formal education system to these needs has not been evaluated. Weak institutional capacity: As part of the overall process of political reform, the MEN has embarked on a process of decentralization. However, the Government has recognized weaknesses that have emerged in implementation of decentralization. In particular, the process of decentralization has focused on financial and administrative reforms without sufficiently strengthening institutional capacity and initiative at the local level. In addition, the role of the Central Government in ensuring equitable distribution of resources is still insufficiently developed. For example, financial transfers to local authorities tend to favor the richer municipalities, resulting in surplus teachers in the richer municipalities and a lack of teachers in the poorer ones. The role of departments in the decentralized system is ambiguous, with the result that they have neither the responsibility nor will to redress such imbalances. Municipalities and educational institutions are required to prepare education plans, but in many cases they lack the capacity to fulfill this responsibility. Technical assistance to help them build capacity in planning and management has been inadequate. Ironically, the private sector, NGOs, universities and other members of civil society have shown interest in providing assistance, but the municipalities and schools lack the autonomy necessary to work directly with such groups. MEN's evolving decentralized role: The challenge facing the education system is in addressing institutional weaknesses within the ongoing process of decentralization. This can be achieved through strengthening the role of the MEN in policy-making, knowledge management, and overall evaluation of educational performance, so as to ensure that coverage, quality and equity issues are addressed. At a decentralized level, the role of the MEN is to offer the necessary technical assistance to develop capacities at the departmental and municipal levels for planning, financing and Project implementation. Government strategy: Experiences in Rural Education: Colombia, despite its limitations in education coverage and quality service for the rural population, boasts an impressive array of innovative educational initiatives and experiences that should form the basis for future education strategies. Escuela Nueva, for example, a model first piloted in Colombia in the 1960s is based on multi-grade teaching and the use of self-instructional materials for interactive and independent learning by individual children or groups of children. The model encourages students to work together, yet allows for periods of absence. Upon returning to school after harvest season, for example, the students continue where they left off instead of repeating the year. Over half of the basic education schools in rural areas operate with the Escuela Nueva methodology and many more recently developed school models reflect Escuela Nueva's flexible, modular approach. These proposals include the post-primary rural education programs promoted by various Departmental Education Secretariats (and supported by the MEN) and programs supported by the cooperation between not-for-profit and public sectors, such as the Tutorial Learning System (SAT) for basic secondary school. This program has been effective in helping out-of-school students and young adults through tutoring and self-learning activities. Annex 12 presents further details on the main pedagogical models available for the rural areas. Recent Developments: A new National Development Plan for Education for 1998-2002, named Change to Build Peace was approved by President Andres Pastrana's administration, which took office in August 1998. The National Development Plan for Education builds on the principles set by the wider Ten-Year - 6 -  Development Plan and defines a series of principles to promote interest in and around education, with the ultimate aim of identifying new pedagogical, administrative, and financial solutions for education management. According to this plan, Government's involvement in education will focus on five fundamental aspects: (a) human developmnent; (b) coverage; (c) efficiency; (d) equity; and (e) quality. In carrying through the National Developmenit Plan for Education for 1998-2002, the government will follow five guiding principles: (i) decentralization of the education sector; (ii) consistency of local investments with national policy framework and objectives; (iii) inter-sectoriality; (iv) participation of rural communities in the decision-making process; and (v) support to the strengthening of civic and democratic values in schools. It is expected that the MEN will develop and consolidate its roles of knowledge generator, policy maker at the macro level, and guarantor of the equity of funds allocation to rural education, while management of the education sector will be progressively delegated to the departments and the municipalities. The Plan puts particular emphasis on increasing coverage of basic and rural education. With regard to rural education, the main principles contained in the National Participatory Plan, the National Consultation Process, and the National Development Plan for Education for 1998-2002, represent the framework for the definition of a National Policy for Rural Education (Annex 1 1), the main objectives of wvhich are to: (a) increase access to quality basic education up to grade 9; (b) strengthen the delivery of pre-school education for 0-5 year-olds; (c) reorganize technical and vocational education in rural areas to respond to the needs of the rural productive sectors; and, (d) support the development of social capital through an emphasis on civic and democratic values in schools. This effort in rural areas will be complemented by the broader governmental strategy to address the issue of coverage at the national level, which will be tackled through the implementation of the following programs: (a) Programa Caminante (Main Framework for Basic Education Strategy) aims at increasing coverage in pre-school and achieving universal coverage of basic education, with special focus on pre-and post-primary levels. The program is tailored to adapt to the specific educational and administrative need of each municipality. In rural areas, for example, the government plans to strengthen post-primary education by linking formal education with productive projects based on1 the economic structure of the local communities. In an effort to decrease the illiteracy rate by 1% by the end of 2002, attention will be devoted to building literacy among youth and adults. (b) Organizacion de la Educaci6n Formal (Organization of Formal Education) aims at improving the organization of formal education, as well as at increasing coverage and retention. This is to be achieved through the creation of a system based on1 the principles of autonomy, cohesion, and community involvement, through the different school government bodies (such as the Consejo Directivo and the Consejo Acadenfico) in the design and implementation of the Proyectos Educativos Intitucionales, PEls (Institutional Educational Plans), responding to the socio-economic needs of the surrounding communities. (c) Educaci6n es Calidad (Education is Quality). Building on the existing systems of educational evaluation, this program aims at creating a National System of Evaluation of the Education Sector based on the definition and functional combination of curriculum, learning achievement, and teachers' performance standards, to be ascertained through periodic observations. Test results will permit development of guidelines pre-service and in-service teacher training, and school-resource management. (d) Ursulas (early childlhood dav-care centers) aims to improve early childhood development through non-formal educational initiatives and aims at training parents and community members in charge of child care, in basic pedagogical techniques. The training initiative recognizes the central role that those involved in non-formal education have in chidren's development, especially in those - 7 -  communities lacking public day care institutions, or where community education is an essential and unavoidable step of individuals' growth (i.e. in indigenous communities). (e) Technical Education. According to the national debate on the role of Technical Education, a renewed effort should be made in the definition of a clear proposal that will strengthen technical education and define strong links with basic education, higher education, and the overall economic context. The Project will contribute to this strategy by supporting the process of strengthening the role of the MEN in policy-making, evaluation, and knowledge management while, at the same time, building the capacity of local authorities at the departmental and municipal levels for planning, financing and implementing education projects. The formation of partnerships between civil society and local government at department level will help to increase responsiveness and accountability of service providers and increase resources, thereby improving service delivery. Institutional strengthening of the planning and implementation functions at municipal level will ensure the relevance of the various interventions within subprojects to the socio-economic context and to the beneficiaries. 3. Sector issues to be addressed by the project and strategic choices: Development of the MEN's role. The Project will support the MEN in developing its role as an agent of knowledge generation, evaluation and promotion of new activities and policy; supervision of the quality and equity of the education service; information dissemination concerning the impact of the four Project components; and guarantor of the equity of resource allocation to rural education. At the same time, this Project will support the strengthening of the capacity of municipalities to promote the development of educationi through the implementation of municipal education plans (PEMs) or municipal subprojects, with the technical and financial assistance of other bodies, both public and private, through the formation of Departmental Strategic Partnerships (Alianzas Estrategicas Departamentales). The Project will address the issue of access to the basic cycle (grades 0-9) through strengthening the delivery of public education services ( private education is virtually non-existent in rural areas). Project interventions in this area will focus on grades 0 and 6-9, which have the lowest coverage and receive proportionally less attention from Government interventions. The issue of quality will be tackled by Project interventions aimed at improving teachers' effectiveness. Particular attention will be paid to improving the quality of grades 1-5, as poor quality at this level contributes to the low coverage in later grades. Finally, responding to both the CAS and the concerns of most of the actors involved, the Project will address the issue of violence in rural areas from the school/community perspective, by supporting, through school-community relationships and classroom methodology, the development of social capital through emphasis on civic values and techniques for the prevention and peaceful resolution of conflicts. Colombian and international experiences demonstrate that relevance of education to the demands of everyday life is one of the main factors affecting education quality in a rural setting. Using a model that has been tested successfully in a number of regions of the country, the Project would work through Alianzas Estrategicas (strategic partnerships) to engage a variety of actors in each department, including local representatives of the productive sector, in the development of a strategy for strengthening rural education services in each department. This approach is intended to enhance the relevance of rural education to rural life, which is considered key to reducing rural poverty, violence and improving living conditions. (Annex 15 provides additional information on Strategic Partnerships). Finally, in support of the development of a relevant, technical education program for rural areas, the Project will finance 30 pilot programs in technical education, provide support for the creation of a database, and conduct an impact assessment of the responsiveness of such programs to the demand for technical competences in rural areas. - 8 -  4. Program description and performance triggers for subsequent loans: The attached table describes the program sequencing. The triggers for subsequent loans (to be assessed after the Mid-Term Review) will be incremental increases in coverage and learning achievement, accompanied by reductions in repetition rates in th; targeted municipalities. Other trigger indicators would include the effectiveness of municipalities in utilizing resources for educational subprojects and the participation of civic society in education management. Details are described in Annex 1. Key Trigger Indicators for targeted rural municipalities Indicators Baseline Phase I Phase II (if available)l to Phase II to Phase III Year 2000 2004 2007 Number of target municipalities 0 >40 +50 municipalities municipalities Enrollment rate 30% >40% >60% Repetition rate 11.5% 7.5% 4.5% Learning Achievement Baseline to be Achievement meaurement >+3% assessed conducted on schedule Alianzas disbursing at least 80% N/A 10 20 of budgeted resources to municipal subprojects Participation of civil society in 0 Qualitative evaluation Qualitative evaluation verifies education management within verifies civil society civil society participates in school networks. participates in ed. ed. management management Existence of specific N/A >70% >70% school-community programs in municipal subprojects. I/ Projections are based on available data. As agreed during negotiations, baseline surveys will be available by January 2001 -9-  PHASE I PHASE II PHASE III, IV, etc. Program launch Consolidation Completion Program Development Phase I Development Phase II Development Phase III, IV, etc. objectives objectives objectives Development objectives Improve access to quality (i) Improved access to To be determined during To be determined during education in quality basic education Phase I - probable Phase I - probable approximately 120 to 210 services in a cluster of expansion of the program expansion of the program municipalities within 30 approximately 40 to 70 to 50 additional to 50 additional selected departments of rural municipalities of 10 municipalities and municipalities and to Colombia, while departments (i.e. at least enhancement of the sustain the investments supporting the 176,000 students) while sustainability of the made in the development of social supporting, through investments made in the municipalities of Phase I capital. school-community municipalities of Phase I. and II. relationships and classroom methodology, the prevention and resolution of conflict and the development of civic values; and, (ii) strengthened national capacity for the reform of technical education in rural areas. Key Activities Establish the capacity to Use feedback from Use feedback from implement, monitor and monitoring process to monitoring process to evaluate the Program. improve effectiveness in improve effectiveness in Initiate relevant meeting Program meeting Program investments focusing on objectives. Continue objectives. basic education investments and Continue investments and (particularly grades 0 and expansion of the Program expansion of the Program 6-9) in approximately 40 to 50 additional to 50 additional to 70 municipalities municipalities. Financing municipalities. Financing through the creation of 10 of (i) enhancements to of (i) enhancements to Alianzas (i.e. sustain the investments sustain the investments approximately 176,000 made in the made in the students.) Develop/test municipalities of Phase I municipalities of Phase new investment strategies and (ii) new investment I/II and (ii) new for rural areas in: (i) strategies developed investment strategies technical and vocational during Phase I. developed during Phase education (ii) distance II. Continue investment post-primary education, program until Program (iii) accelerated strategies objectives are fully met. for over-age students and (iv) pre-service and in-service teacher training. - 10-  Key Program Outputs See Annex 1 To be determined during To be determined during implementation Phase I implementation Phase II Benchmarks for See Annex I Major benchmarks, to be See Annex I for Subsequent financing determined during the end-of-Program Project, will be indicators. (i) incremental increases in student enrollment and learning achievement; (ii) reduction in repetition and dropout rates; (iii) strengthened community participation in school governance; (iv) formation and effective functioning of public-private sector partnerships at departmental level; (v) financial and human resources contributed as needed at municipal levels; and (vi) definition of effective school-community programs in the PEMs. - 11 -  C. Program and Project Description Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): =:~~~~~~~~~~Idctv Bk % ofsnk 1. Enhancing Access and Quality of Primary 24.20 60.5 12.80 64.0 Basic Education. Education 2. Strengthening Institutional Capacity Institutional 8.40 21.0 3.30 16.5 Development 3. Education for Peaceful Coexistence Primary 3.50 8.8 1.80 9.0 Education 4. Supporting the Reform of Vocational 3.90 9.8 2.10 10.5 Technical Education. Education & Training Total Project Costs 40.00 100.0 20.00 100.0 Front-end fee 0.00 0.0 0.00 0.0 Total Financing Required 40.00 100.0 20.00 100.0 Each component would entail strategies and activities at the national level as well as support for subprojects at the level of the municipalities. Enhancing Access and Quality of Basic Education. Activities to be financed at national level include: (a) research and evaluation of innovative educational models, strategies, and curriculum for grades 0-9 and pre-K for meeting needs of the rural areas, and the dissemination of the results of this work; (b) pilot testing and evaluation of the programs of Telesecundaria and Aceleraci6n del Aprendizaje; and (c) the design of reforms of pre-service teacher training programs in the Escuelas Normales, as well as their provision of equipment and training materials to improve the capacity to produce competent rural teachers. At the local level, the Project would finance municipal subprojects (PEMs) that would support activities designed to address the key problems affecting rural basic education in each municipality. Subprojects may support: the reform of in-service teacher education programs; creating/ strengthening demand for education through targeted information campaigns; the creation of incentive schemes for increasing school coverage; implementation of educational projects linking school learning with productivity (Productive Pedagogical Projects); strengthening demand for schooling through communication campaigns, incentive systems, etc. Strengthening Institutional Capacity. Activities at the national level would include the provision of technical assistance to strengthen the MEN's capacity for Project implementation, monitoring, evaluation, and knowledge management. Technical assistance would also support the formation of strategic - 12 -  partnerships (Alianzas Estrategicas Departamentales) for the design and implementation of subprojects at the departmental level. At the local level, activities will include the provision of technical assistance for building the capacity of municipalities to: (a) create municipal education plans; (b) design and implement subprojects based on the MEN knowledge base; and (c) improve school governance by facilitating the creation of school networks (Redes Educativas) and/or strengthening capacity at school level in school planning and management. Developing Education for Peaceful Coexistence. Activities at the national level would involve the provision of technical assistance for strengthening the MEN's role to evaluate and disseminate effective educational and community practice, in order to act as a source of knowledge management in education for peaceful coexistence. At the local level, activities will include technical assistance for strengthening participatory and democratic forms of school governance and developing social capital and civic values by school-community linkages. Supporting the Reform of Technical Education. Technical assistance would be managed at the national level to strengthen information systems for technical education in rural areas (including features of supply, demand, cost-effectiveness, program impact, and legal framework) and to design, implement, and evaluate 30 pilot projects in technical education. 2. Key policy and institutional reforms supported by the project: Role of the MEN in a decentralized setting: The Project will support the MEN in developing its new role as an agent of: (a) knowledge generation, evaluation and promotion of new activities and policies; (b) supervision of the quality and equity of the education services; (c) information dissemination concerning the impact of the four Project components; and (d) guarantor of the equity of fund allocation to rural education. Capacity for the management of education will be built for participating departments and municipalities, which have had legal responsibility for managing education since 1992. Development of strategic partnerships (Alianzas Estrdtegicas Departamentales): The Project will provide technical assistance for the creation of public-private sector partnerships at the departmental level that will provide technical and financial resources for the management of the education sector. It is expected that the policy will foster the participation of broad sectors of civil society in the management of rural education, while assuring, at the same time, the development of a curriculum for rural education consistent with the socio-economic framework of each local community. 3. Benefits and target population: Benefits: The Program is expected to produce social and institutional benefits with regards to: (a) Social Benefits Increased access to basic education for rural population. Increased quality of basic education cycle. Increased learning and achievement of 5-15 year olds in participating communities. Greater equality of educational opportunities between rural and urban areas. Increased motivation of teachers, students and parents to integrate school teaching and learning - 13 -  with the community, particularly through organizing joint-activities and outreach events. Improved civic attitudes at the community level . (b) Institutional Benefits - Strengthened management of the sector at all levels. Improved effectiveness of education services delivery at departmental, municipal and school levels by transferring decision -making power on certain investment strategies closer to the end-user clients (parents, principals, teachers and students). Increased municipal and community commitment to and ownership of the process for improving the quality of education provided by the schools. The departmental level partnerships between public, productive and not-for-profit sector will promote: (a) synergy and cooperation among the various actors of the Alianza to promote the development of a departmental policy for rural education; (b) quality and relevance of the municipal projects to the rural context; (c) sustainability of the investment made; (d) participation of the civil society; and, (e) efficient and transparent management of Project funds. Target population: About 3 million children aged 5-15 living in rural areas, of whom an estimated 45 percent are currently receiving some kind of education, will directly benefit from increased access or quality of education under the Program. Around 176,000 students will be benefited under the Project (Phase 1). In Phases II and III, the numbers of direct beneficiaries will rise more rapidly, as strengthened institutional capacity and realization of efficiencies will have a broad impact. The number of students benefiting indirectly from the Program is expected to grow even faster as the Alianzas Estrategicas Departamentales will reach to other municipalities not directly targeted by the Project. Teachers will also benefit from the improved training, as will educational administrators from the increased capacity to diagnose, implement and manage educational programs in rural areas. Additionally, indigenous and Afro-Colombian populations in the areas of Program implementation will benefit from educational programs targeted to their special needs. Indirect beneficiaries of the Program include the parents of the children and the rural communities at large. Geographic targeting in each stage of the program will direct Project resources towards some of the poorest rural areas of the country. It is therefore expected that achievement of the Program's development objectives will contribute to the reduction of poverty in Colombia. 4. Institutional and implementation arrangements: As part of the National Development Plan for Education, which takes into account national and international experience, the Government has decided to pilot, during the first phase of the Program, an implementation scheme based upon four main principles: (a) Government's leadership in managing the Project; (b) strengthening of existing management capacities and learning from past management of projects with the Bank (e.g., Primary Education Subsector Project, Secondary Education, Peasant Enterprises Zones); (c) development of public-private partnerships; and, (d) use of an international agency (the Agent) contracted to administer Project funds and contracts, both at national and local levels. - 14 -  Project Structure: The Project is articulated into two main strategies: (a) A supply-driven, centrally managed investment (which, under the new role of the MEN as an agent of resource and knowledge creation and management, would include the revision and improvement of existing and new pedagogical methodologies; piloting of Telesecundaria and Aceleraci6n del Aprendizaje, etc.) that will be managed directly from the MEN, except for disbursement, which will be made directly through the contracted Agent. However, funds for the implementation of subprojects related to the reform of Escuelas Normales (Component 1), and Technical Education institutions (Component 4), will be transferred directly by the Agent to the Teachers' Service Fund (Fondos Servicios Docentes) upon the MEN' s approval. (b) A demand-driven, decentralized investment carried out through subprojects conceived, managed, and approved by Alianzas Estratfgicas Departamentales, under the supervision of the MEN. Loan and national counterpart will be disbursed through the Agent, which will also manage funds provided by local partners of the different Alianzas. Project Management structure: At the national level, the MEN Vice Ministry Office is responsible for the Project. This office will work through the Direcci6n General de Investigaci6n y de Desarrollo del Talento Humano (DIDTI), which will be responsible for coordinating and implementing Project management activities. Responsibilities will be assigned as follows: * T/e Vice Ministry Office is responsible for ensuring the implementation of the educational policy for rural areas and represents the MEN before the World Bank and the Agent. * The DIDTH is responsible for planning, managing, and coordinating planned activities to achieve Project objectives. DIDTHwill mainly work through a Technical Coordination Group and a Financial and Administration Group. The Technical Coordination Group will be responsible for: - monitoring the implementation of technical and pedagogical aspects of the Project; - preparing, in coordination with the Financial and Administration Group, the annual action plan and related budget and presenting them to the DIDTH for approval; - preparing technical, operational, monitoring and evaluation reports required by the DIDTH, MEN, other governmental bodies, and the Bank; and - defining, applying and monitoring performance indicators for the Agent. * The Financial and Administration Group will support the DIDTH and the Office of the Vice Ministry with the adequate financial instruments and activities directly correlated to the overall implementation of the Project. The Financial and Administration Group is responsible for the following activities: - Execution of the planned budget; - Financial and accounting control over the destination and execution of the financial resources of the loan, the national and local contributions assigned to the Project; - Elaboration, in conjunction with the Technical Coordination Group, of the Yearly Cash - 15 -  Flow Plan, of the Annual Operation Plan (PAC), the Quarterly Operational Plan (POT), and ex-post analysis of planned vs. executed activities; - Elaboration of the disbursement requests to be submitted to the MEN, as the basis of the transfer of funds to the Agent; - Support to the DIDTH for the preparation of the reimbursement requests to be submitted to the Bank on a periodic basis; - Monitoring, in coordination with other relevant divisions of the MEN, of the implementation of Project funds and elaboration of financial management reports for auditing purposes based on the information sent by the Alianzas; - Monitoring and evaluation of overall financial activities carried out by the Agent and cross-checking and control of financial activities and accounting transactions; and - Strict collaboration with the Bank and the auditing agency to assure transparency in financial management conduct, appropriateness of information provided, and updating of Project files. * The international agency (the Agent), selected through a bidding process on the basis of terms of reference satisfactory to the Bank, will be responsible for managing the disbursement of all funds for the implementation of the Project. This function will be governed by: (a) a legal agreement between the MEN and the Agent; and (b) tripartite agreements among the MEN, the respective departmental Alianza, and the Agent. In order to carry out this task, the Agent will: - Execute the six-month procurement schedule prepared by the Technical Coordination Group of the MEN and any additional activities related to procurement, as defined in the original contract between the MEN and the Agent (e.g. drafting invitations to bid, bidding documents, minutes of bid opening and evaluation; signing of contracts and payment to suppliers of goods and services, all according to Bank guidelines and the Operational Manual); - Receive advances of Project funds and disburse according to the schedule defined by the DIDTH. - Keep the accounting and financial books in a format compatible with that of the MEN, to enable the DIDTH Financial and Administrative Group to prepare Project Management Reports (PMRs); - Provide to the DIDTHthe reports on disbursement required by the MEN, and by the Bank, according to a pre-defined time schedule; - Allow the Bank and the external auditor to access the information related to procurement and disbursement; and - Monitor the flow of funds directed to the Alianzas and advise them on possible corrective measures. At the departmental level, 1 0 Alianzas Estratgicas Departamentales will be created. Each of them will be represented by a Technical Coordinator and will be governed by a Technical Committee, which will be mainly responsible for: - 16 -  - Structuring the Annual and Quarterly Operational Plans (POAs) and (POTs); - Monitoring the overall implementation of the Project on a departmental basis; - Monitoring the performance of the Agent's promptness in disbursements; and - Providing reports on Project progress to the DIDTH of as and when agreed. At municipal level, a Project coordinator will act as a liaison between the municipality and the Alianza and will assist with the design and supervision of the subproject in the schools of the municipality. Annex 15 describes (in Spanish) the general principles, criteria and operating structure of the Alianzas, as well as the operating scheme of the Agent. The establishment of the Alianzas, their relations with the Agent, and the relation between the MEN and the Agent will be governed by legal agreements that will establish the conditions, roles and responsibilities of each party. The Project Operational Manual defines the required legal and operational agreements. Information, Monitoring and Evaluation. The monitoring and information system designed as a Project management tool aims to: (a) determine the degree of compliance under efficacy, efficiency and quality standards of the physical and financial activities of the Project; (b) serve as a learning and support tool for decision making and for the Project's management at all territorial and structural levels, according to their competencies; and (c) serve as information instrument aimed to the public and to the fiscal and financial control organisms. The structure of the system and the indicators that will be used as "warning bells" during implementation is presented in a separate document, Design of the Monitoring and Information Systems, available in Project files. The impact evaluation system, which has been designed by the MEN but will be implemented by an independently contracted entity, aims to measure: (a) the effects caused by the different intervention strategies employed under the Project; (b) the degree of efficiency in the use of resources; and (c) the effectiveness of the different interventions. The expected changes to be measured in the impact evaluation can be organized as follows: - Education sector in general: changes in coverage, quality, relevance of education, changes in management (administrative, legal, financial and pedagogical) at all levels. - Teachers: changes in abilities and practices of teaching/learning (teaching, change in attitudes). - Community: changes in participation (school government, partnership), in financial management and the forms of communication. - School population.' changes in learning achievement, in access to and retention in the education system. The structure of the evaluation system and its indicators and verification tools is presented in a separate document (Sistema de Evaluaci6n de Impacto) available in Project files. - 17 -  D. Project Rationale 1. Project alternatives considered and reasons for rejection: Discussions on Project design considered the following alternatives: (a) Centrally designed and implemented project vs. a demand-driven operation from local levels: In view of the low implementation capacity at the local level, a centrally managed approach for the Program was considered. However, lessons learned from the implementation of other projects in Colombia and from the nation-wide consultation process have shown how nationally designed projects implemented at decentralized level have had to deal with the limited responsiveness of state institutions to social priorities and needs. Centrally managed projects are destined to fail unless the decentralized level is given some decision-making power in the identification of the objectives and nature of the investment. As a result of this experience, the Bank has strongly promoted the decentralization of key public functions to municipal levels in sector work addressing inefficiencies and inequities in the social sector. In education, initiatives in the coffee growing areas and in Bank-supported projects in Antioquia and Pasto, have demonstrated the value of empowering local communities and private sector representatives, by involving them directly in the management of the schools. (b) Low vs. High level of Technical Assistance: Experience also shows, however, that it is imperative that the transfer of decision-making to local levels needs to be supported by informational, promotional, technical and financial assistance to develop institutional capacity. (c) Low vs. High Participatory Approach: Experiences with the management of change within organizations and larger systems have shown that successful reforms are correlated with high participation of local stakeholders, managers and staff in the planning, decision-making, implementation and evaluation of their own initiatives and activities. Additionally, a successful change management effort must provide the needed financial resources to promote innovation, team-building and knowledge building. Promotion and implementation of changes in management policy and procedures must be accompanied by direct access to resources. (d) Low vs. High level of inter-sectoral dialogue and consultation during preparation and implementation: The development of the education sector in rural areas cannot be achieved from the perspective of the education sector alone. Under the Program, preparation will not only be based on the leadership and active inputs of the MEN and the education community, but will also rely on the continuous dialogue at the national level with representatives of the Ministry of Agriculture, Instituto de Bienestar Familiar (ICBF), farmers and indigenous organizations, producers associations, labor unions and NGOs. (e) Inclusion vs. exclusion of pre-school and technical and vocational education from the objectives of the Project: It was decided to postpone any direct investment in increasing coverage in these two areas to later phases of the Program in order to simplify the design and management of the Project. These areas of intervention fall under the purview of other institutions (ICBF and the Ministry of Labor) with which coordinating links would need to be developed. Finally, the MEN decided further investigation was necessary in order to be able to develop a coherent strategy for the reform of technical and vocational education to take into consideration the needs of rural productive sectors. - 18-  (f) ifunicipal Strategic Partnerships vs. Departmental Strategic Partnerships: Problems encountered in the ongoing process of decentralization to the municipalities of the management of financial resources for social sectors, as well as the high potential existing at the departmental level, led to the concept of the Departmnental Strategic Partnership as an instrument to channel funds and manage the project funds. - 19 -  2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). Latest Supervision Sector Issue Project j (PSR) Ratings :an knanced phas of SecondaryEducation(Bank-financed projects only) Implementation Development Bank-financed Progress (IP) Objective (DO) COMPLETED: S S -Support first development phase of - Secondary Education diversified secondary education. (L0552), 1973 - Support second project phase of - Second Education Project diversified secondary education. (L0679), 1975 - Provide common centers for - Third Education Project secondary education. (L0920), 1982 - Rural Development with a primary - Integrated Rural Development education component. (DRI) (L1352), 1984 - Strengthen primary education and - Primary Education Project in integrate social services in rural areas rural areas (L2192), 1989 - Sustain the quality of child care - Community Child Care and program by community mothers. Nutrition (L3201), 1997 - Improve the quality, coverage and - Second Primary Education efficiency of primary education. Subsector (L3010), 1998 ONGOING: - Improve coverage quality and cost- - Secondary Education S S effectiveness of secondary education (L3683) - Expansion of quality and coverage - Antioquia Basic Education S S of basic education and strengthening (L4243) departmental and municipal - Pasto Basic Education education anagement. (L4242) - Integrated youth development. - Youth Development S S (L4383) - Develop local operational capacity - Magdalena Medio S S to reduce poverty and increase (L4371) peaceful coexistence in municipalities - Development of areas in conflict, - Peasant Enterprises Zones S S particularly rural and Protection of the Development Project environment. (L4364) PLANNED: - Consolidation of the safety net in - Manos a la Obra: Community favor of the poorest subgroup to Projects (P68762) mitigate social impact of economic crisis. - Reconstruction of social and - Earthquake Emergency economic infrastructure in rural areas. Recovery (P65263) - 20 -  - Transfer of resources to - Decentralized Human decentralized public entities for Capital Devel. (P52608) investment human development. Other development agencies - IDB - Improvement of education management. - IDB - Strengthening of local government administration. - IDB - Reconstruction of social and economic infrastructure in coffee areas destroyed by earthquake. - IDB - Program for Social Solidarity Net IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: This Project supports the strategy of developing an innovative education strategy by relying for its implementation on a synergistic action between central, local government and private sector. In defining the main objectives to be achieved, as well as the implementation mechanisms, the Rural Education Project relies upon the main lessons learned from past Bank projects, summarized below: (a) Definitions of objectives: Past projects have frequently failed in achieving their targets because of lack of specificity in project design. It is therefore essential for projects undertaking comprehensive educational reform programs to identify concrete and measurable objectives that can be attained within project life. (b) Project Flexibility: Past experiences show that, despite an initial agreement on the program development objective, projects have failed due to frequent changes in the policy environment as well as in defacto changes of key personnel in the project implementation unit. A flexible approach in implementation that permits modifications in project design to adapt to changes in the environment would facilitate timely adjustment to ensure achievement of project objectives. (c) Participatory approach: Local administrations and communities are directly involved in program design and implementation through a bottom-up, participatory process which relies upon the diagnosis of their educational needs according to the socio-economic characteristics of the community. However, in order to avoid the major drawbacks of past Bank projects relying upon participation of the local communities (see ICR DRI -1997), implementation procedures should be flexible so to reduce burdens imposed by the central government authorities. It is also important to strengthen the consensus for the Project among the public and the Colombian political environments by means of informational campaigns, developing dialogue and ties between government, local authorities, NGOs, and rural associations, etc. -21 -  (d) New mechanisms to work directly with local governments: The Bank's experience indicates that a risk in working through local governments is that they may represent specific interest groups and ignore the interests of the majority of the population. In order to ensure successful implementation of the Project and achievement of its objectives, implementation arrangements should provide for balanced participation and strong monitoring to ensure adherence to the Project's objectives and principles. The establishment of Alianzas Estrategicas Departamentales, a cohesive partner among the major stakeholders (central government, local authorities, and private entities), is intended to address this risk. In concrete terms, this requires: * A stronger capacity of the MEN and Departments to assist and evaluate local level activities in rural areas: Institutional strengthening should not focus solely on defining a legislative or operational framework for Program operations and the provision of technical assistance and training on these issues; it should also focus on the development of plans and operational tools to strengthen the management capacity at every level of involvement in the implementation of the Project. * A better integration of all levels of public administration and interest groups in the management and evaluation of the Project. The aim of such actions should be to strengthen the organization and structure of the education system and to create more efficient and responsive management of change and human resources. It would also facilitate the identification and solution of conflict of interest across levels and key stakeholders. Moreover, whenever problems occur in the implementation of the Project due to ongoing major systemic reforms, all stakeholders would be involved in taking corrective actions. Finally, departments and municipalities would be entrusted fully with financial resources, and granted the necessary autonomy to make decisions. (e) Need for an integrated management system: The decentralized nature of the Project requires the creation of an integrated management information system, as well as a network among executing entities in order to guarantee effective and rapid communication among the different levels of administration. Moreover, it is worth considering the possibility of promoting community-wide multi-agency collaborative arrangements that would tap resources available within communities in order to take advantage of potential economies of scale and multiplier effects. (f) Financial Mechanisms: The national cofinancing system, the financial instrument designed to transfer investment resources from the national budget to local governments, including the funds of Bank financed operations, was recently dismantled. Therefore in the resulting legal vacuum, it was, and still is, vital to identify some alternative mechanisms for fund transfers that could facilitate the implementation of projects involving central and decentralized authorities. For a more detailed description of the major lessons learned from past projects, refer to a separate document (Lessons Learnedfrom Past Education Projects in Colombia and other Selected Latin American Counties) available in Project files. -22 -  4. Indications of borrower commitment and ownership: The Governmelt of Colombia has assigned high priority to reducing the poverty and violence afflictiig rural areas through devoting resources to their development. The Sector Policy Note (Annex I 1) states the commitmenit of Colombian authiorities to the development of education in rural areas. Concrete demonistrationi of the Government's commitment is provided by the fact that fundinig for program preparationi has been provided even during severe fiscal crisis and that the Government has already comimlitted the funds required for the implementation of the Project, despite severe fiscal restraints. Interest in rural education is also strong at regional level. Some departments demonstrated their commitment to the goals of the Program by moving ahead to establish teams in charge of developing technical and financial proposals to address these needs in rural education, and others have taken initiatives toward the creation of Alianzas. 5. Value added of Bank support in this project: The Bank has brought international experience and expertise to broaden and strengthen the technical and operational design of the Project. Experience in rural education in other countries of the region examined in the course of preparation included EDUCO in El Salvador and Mece Rural in Chile. In addition, the Bank has brought a team-centered, participatory approach to Project preparation that has facilitated the Ministry in gaining crucial institutional and technical knowledge. This process has facilitated the dialogue and cooperation at many institutional levels. E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Economic (supported by Annex 4): * Cost benefit NPV=US$108.8 million o Cost effectiveness O Other (specify) The econoiic analysis was conducted with respect to the objective of increasing basic education coverage in the Project areas based on the following conservative assumptions: (a) The Project is targeting a minimum number of 40 municipalities, with an average population of about 20,000 iniabitanits, and an average number of 5,530 children (5-15 years old); (b) The population growth rate is 2 percent per aninum; (c) The Project durationi is 3.5 years; (d) Key goals of the Project are to raise school enrollment in rural basic schiools from less than 30 percent to 75 percent and to increase the average level of attainment by 30 percent (i.e. from 3 to 4 years) durinig the Project period; and (e) The Project will finanlce neithier building of new schools, nor hirinlg of new teachers. The cost of coverage will be containied throughi reallocation of existing resources; incremenital recurrent costs durinlg the operational period are assumed to be minimal and limited to activities such as the upgradinig of school equipmenit and materials (modification of PC hardware and software, purchase of new books, etc.). - 23 -  Based on the assumed population growth rate, achievemenit of the targeted level of coverage would imply a growth in schiool enrollment in the 40 municipalities from about 66,200 to 176,000, or an increase of 109,800 students who would benefit from basic education as a result of the Project. Based on recent hiousehold survey data, persons earn an additional income with a NPV of US$1,014 for each additional year of sclhoolling completed at the basic education level. Assuming that each additional student and 30 percent of existing students complete exactly one additional year and taking into account a total Project cost of US$40 million disbursed over 3.5 years, the total NPV for the Project is equal to US$108.8 million. The NPV would remain positive as long as 5,560 students remain in the school system for at least one additional year. To the extent that gains made in coverage can be sustained beyond the Project period, the quantifiable benefits of the Project would be greater than the NPV shown. Certain risks may affect these results. For example, the redeployment of teachers from richer municipalities to poorer ones may require additional financial incentives (contrary to the assumption that reallocation of existing resources would entail no incremental recurrent costs). In addition, in some cases, increased enrollmenit may result in overcrowding of classes, putting pressure on the efforts to simultaneously improve quality. 2. Financial (see Annex 5): Fiscal Impact: The fiscal analysis shows that the Project will have a very limited impact on both national and decentralized budgets, under the following assumptions: (a) a constant GDP growth rate of 3.6 percent per anium; (b) maintenance of education expenditure on a national level at 5.3 percent of GDP throughout the Project period; (c) local contribution (through the Alianzas) equal to 13 percent of the national contribution for the Project; and (d) no additional recurrent costs would be needed since the costs of coverage increases would be contained through the reallocation of existing resources (for example, the Project will not finance the building of new schools or the hiring of new teachers but will use underutilized school buildings more efficiently and redeploy existing teachers from areas where there is a surplus to areas where there is a scarcity of teachers). At the nationial level, the cost of the Project represents a minimum amount of the projected educational expenditure (0.165 percent). Considering Project costs on a per beneficiary basis, the average per capita investment is US$227 (i.e. US$ 65 per year of the Project period). For comparison, the average unit cost in the basic educationi cycle is US$179 per year. At the decentralized level, the Project is sustainable as long as the municipalities would be able to cover the necessary recurrent costs following the Project period. If the assumptions listed above hold, such costs would be related only to mainteniance of equipmenit and learning materials purchased under the Project. 3. Technical: The Project takes into considerationi the context of the current education system and the government sector strategies expressed in the National Development Plan for Education 1998-2002, and provides appropriate techilical responses to issues such as access, quality and equity in rural areas. Project preparation has benefited greatly from lessons learned from the implementation of other education operations in Colombia and from interinationial experience with rural education such as those of Mexico, El Salvador and Chile. - 24 -  4. Institutional: a. Executing agencies: The MEN has not demonstrated a strong implementation capacity in previous Bank-financed operations. With this in mind, the probability of success of this operation has been strengthened by the partnership approach with other levels of government and the private sectors (Alianzas). It is expected that the departmental level partnerships between public, productive and not-for-profit sector will support the: (a) synergy and co-operation of the various actors of the Alianza to promote the development of a departmental policy for rural education; (b) quality and relevance of the municipal projects for rural environment; (c) sustainability of the investment made; (d) participation of civil society; and (e) efficient and transparent management of Project funds. The risk of using these new entities for the implementation at decentralized level is mitigated by the role of the Agent which should ensure the efficient transfer and use of funds. The national cofinancing system, the financial instrument designed to transfer investment resources from the national budget to local governments, including the funds of Bank-financed operations, has been recently dismantled. Therefore in the resulting legal vacuum, it was vital to identify some mechanisms for fund transfers that could facilitate the implementation of projects involving central and decentralized authorities. A technical and legal assessment financed with PHRD funds concluded that to date the only viable alternative to the defunct cofinancing system involves the use of an the Agent for the administrative management of Project contracts and payments, both at national and local level. Overall evaluation of implementing structure: The implementation structure has been designed on the basis of experience under other internationally financed projects in Colombia. Overall, as far as financial management is concerned, the present capacity of the MEN to manage funds and produce adequate reports can be considered satisfactory. In addition, the use of the Agent for the transfer of funds to the municipalities has already proved to be successful, as confirmed by experience under another Bank-financed project (Peasant Enterprise Zones). In case this implementation scheme does not prove to be sustainable over time, the disbursement through Fondos Servicios Docentes might be considered as an alternative to be adopted for future phases of the Project. Since the Project is introducing the concept of Strategic Partnership on a departmental basis for the implementation of the Project, some reservations exist as to the capacity of the Parternships to disburse on time and produce the necessary information on procurement and disbursement flows. These inputs are fundamental since, once consolidated by the Agent in the format required by the MEN and the Bank, they will be used to produce the PMRs according to a pre-defined time schedule. It is essential, therefore, to strengthen the coordination between the different units of the MEN, and between these and the other implementing bodies to ensure timely implementation of the Project and production of appropriate management reports. b. Project management: For the purposes of this Project, the MEN will operate through a specific Division (Division de Investigacion y Desarrollo del Talento Humano - DIDTH), which, in turn, will be articulated into a Technical Coordination Unit, and a Financial and Administrative Unit. Both will have to work closely in order to assure the prompt implementation, monitoring, and evaluation of the Project. In order to assure the same result, it is hoped that the Division will reinforce its coordination with the decentralized entities targeted by the Project, and with the international Agent. - 25 -  Procurement: A procurement assessment was completed as part of Project preparation and appraisal. The PIU of the MEN operates its procurement system independently of the central MEN office, thus allowing full application of Bank guidelines and documentation. An action plan was agreed during negotiations. Its aim is to ensure that the PIU adopts a proactive approach in making effective changes directed to the strengthening of internal controls and accountability, development of staff skills and so reducing the impact of political pressures during implementation. Key measures, proposed under the action plan, to enable the PIU to support a heavy program of procurement during the life of the Project, would require training for staff in the preparation of technical specifications and terms of reference. The MEN's procurement capacity and experience in the PIU is satisfactory with regard to the procurement of goods and services, and compares favorably with the experience of personnel of other World Bank projects. In order to strengthen the PIU, a certified procurement professional should be included within the Unit. Actions still need to be taken by the MEN, with the help of external technical assistance, to strengthen the efficiency, accountability and performance of the PIU in order to coordinate and supervise the activities between the Agent and Alianzas. Considering the type and number of activities expected in the Project, the size of the Procurement Unit in the PIU is considered acceptable. A General Procurement Plan for the national component of the Project has been prepared to include all relevant activities; this key instrument would be updated annually to include both the national component and subproject activities, on the basis of the agreed action plan. Success in the performance of procurement procedures would depend on the clarity and sufficiency of information contained in the Operational Manual, to be adopted as a condition of effectiveness. The PIU would be responsible for preparing the Annual Procurement Plan, based on annual action plan for the Project, and this would be submitted to the Bank by no later than December 15 of each year. The PIU would also prepare quarterly reports of planned and completed purchases during the implementation of the Annual Procurement Plan. The Annual Procurement Plan and the publication of the Annual Procurement Notice (APN) would be done yearly, no later than December 15, and would be a prerequisite for any procurement activities in the Project. The MEN will adopt the Operational Manual to ensure acceptable procedures for procurement, accounting, disbursement and auditing. The manual would include the specific operating and control mechanisms agreed under the financial and monitoring system. Financial Management: A financial management assessment was performed by a Financial Management Specialist (See Institutional and Implementational Arrangements, Part C.4). The certificate resulting from this review is included in separate document available in Project files. The Project Operational Manual will describe the nature of Project operations and details of the flow of funds, accounting controls, internal reporting, computerized Project monitoring system and Project audit arrangements, all satisfactory to the Bank. Project Funds will be administered by an international Agent acceptable to the Bank. The MEN/PIU will have to comply with a time-bound action plan acceptable to the Bank for the strengthening of the financial management system. This will enable the MEN/PIU to prepare quarterly PMRs, with effect from the 12/31/2000, each of which: (a) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by the report, and projected sources and applications of funds for the Project for the six-month period following the period covered by the report, (b) shows separately expenditures financed out of the proceeds of the Loan during the period covered and expenditures proposed to be financed out of the proceeds of the Loan during the six-month period following -26 -  the period covered by the report; (c) describes physical progress in Project implementation, both cumulatively and for the period covered; (d) explains variances between the actual and previously forecast implementation targets; and (e) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Loan. In order to prepare quarterly PMRs, the MEN will have to coordinate with the Alianzas Estrategicas Departamentales, and with the Agent disbursing and administering funds for the Project, by setting the adequate accounting standards and formats to be used by these latter institutions; by training them on how to set, and/or adapt their accounting system in order to produce PMRs; by monitoring the quality and reliability of the information provided; and by consolidating this information in a format acceptable to the Bank. 5. Social: Direct and indirect beneficiaries of the Project include school-age children, youth, and adults living in the rural areas of Colombia. The completion of Project preparation will lead to the design of a preliminary baseline to determine at departmental levels: (a) access, coverage, internal efficiency and productivity of rural education in each of the departments participating in the Program; and (b) the particular needs, expectations, concerns and potential contributions of the beneficiaries and other stakeholders. Furthermore, the Project preparation analysis has identified three groups whose individual, cultural and social characteristics demand differentiated treatment: (a) indigenous groups organized in Cabildos, (b) Afro-Colombian communities; and (c) rural women (for further details, refer to the document Analisis Preliminar de Impacto Social, available in Project files). A project-financed assessment will strengthen the capacity of the MEN to analyze the socio-cultural and institutional conditions of these groups, including the collection of personal and demographic data, views, perceptions and expectations on the quality, quantity and relevance of educational services, good practices and preferences of the population. This activity will culminate in the identification of best practices for meeting the educational needs and concerns of the specific groups. The criteria for the selection of departments and municipalities, as used in the Institutional Capacity Analysis and specified in the Operational Manuals, includes the existence of indigenous and Afro-Colombian populations in the rural areas. In addition to activities at the national level, the Project will work through the Strategic Partnerships at departmental level to develop, implement and evaluate educational strategies to address the needs of these ethnic groups (see Annex 14 for details of the Government's ethno-education strategy and its links with Project activities). According to criteria established in the Operational Manual, each eligible municipality participating in the Project, assisted by the MEN and the Alianza, will complete an assessment of the social impact of each municipal subproject. The justification for this rests on the geographical, cultural and socio-economic diversity of the country and of the diversity of the regions and municipalities that will take part in the Project. It would be extremely difficult to conduct a single national assessment because of the high degree of diversity. The social assessment at the local level will therefore be one of the eligibility criteria for the financing of municipal subprojects. Indigenous populations are organized in Cabildos, entities with an administrative jurisdiction similar to that of the municipalities. The Project recognizes the possibility that a department, particularly those with a high concentration of indigenous populations, might select some Cabildos in the targeting of the five subprojects. In this case, the Cabildo will act as a municipality developing, with the necessary autonomy, a proposal for a subproject to be financed under the Project. - 27 -  In the MEN, a working group on the subject of gender equity, with the participation of specialized NGOs and women's organizations, will identify the state of the art and current practice on this subject and make recommendations on the most appropriate strategies for handling the educational needs of rural women. These recommendations will be shared with the municipalities that will also receive technical assistance to develop their own proposals in this area. A special tool, a "Gender Handbook", is currently being evaluated and adapted by the MEN and this will be made available to schools and municipalities as a tool for the identification and correction of gender-biased stereotypes and behaviors in school. Detailed information on the Government Strategy for Incorporating Indigenous People and ,4nfro-Colombian is included in Annex 14. 6. Environmental assessment: Environment Category: C Since the Project will not finance construction of new schools, it is not expected to have a negative environmental impact. On the contrary, higher levels of education of rural populations should promote a more positive attitude towards the protection and development of environment. 7. Participatory Approach (key stakeholders, how involved, and what they have influenced or may influence; if participatory approach not used, describe why not applicable): a. Primary beneficiaries and other affected groups: Participation is the key to Project preparation. The main consultation activities concluded up to now have involved representatives of all direct beneficiaries of the program and other stake-holders. Students, teachers, principles and school managers, community leaders and representatives of farmer associations, indigenous organizations, NGOs operating in the sector, producers associations, departmental and municipal education administrators, representatives of national ministries; have all participated during the last eight months through: (a) five regional forums on rural education covering the 32 departments; (b) a systematic consultation with the agricultural sector (including a permanent working group with representation of all stakeholders, organizations and institutions of the rural sector, studies about the relationship between education and production, and a national seminar with the public and private agricultural sectors); and (c) a national technical seminar and an international panel on best practices in rural education. Participation Level School Children in Rural Areas aged 5-15 Consultation Teacher in rural areas Consultation Indigenous and Afro-Colombian populations Collaboration (see section 5) Rural Women Collaboration (see section 5) b. Other key stakeholders: Participation Level Producers Associations Consultation/Collaboration Labor Unions Consultation Farmers Associations Consultation Ministry for Agriculture Collaboration Departments and departmental education secretariats Collaboration Municipalities and municipal education secretariats Collaboration Rural Communities at large Information - 28 -  F. Sustainability and Risks 1. Sustainability: The Government of Colombia has assigned high priority to reducing the poverty and violence afflicting rural areas through devoting resources to their development and by involving municipalities more in the management of these resources. The National Development Plan places education as the country's highest priority and the Letter of Sector Policy (Annex 11) states the commitment of Colombian authorities to the development of education in rural areas. A concrete demonstration of this commitment is provided by the fact that despite severe fiscal constraints, the Government has provided funding for Project preparation. The institutional sustainability will also be guaranteed by the implementation mechanism adopted by the Project. The participation of the private and not-for-profit sectors in partnerships within the Alianzas will be a key factor for ensuring sustainable and effective education programs in the targeted municipalities. Municipalities participating in the Project will be carefully selected taking into consideration their potential role in the economic and cultural web of the subregions to become models and catalysts for those municipalities not directly participating in the Project. The recurrent costs generated at municipal level are minimal and the participation of private and public sectors in the Alianzas has the potential for generating additional funding for rural education during and after the implementation of the Project. It is also planned that, in its subsequent phases, the Program will finance the operating costs of the Alianzas created during the first phase as an incentive for maintaining the partnership beyond the investment period. - 29 -  2. Critical Risks (reflecting assumptions in the fourth column of Annex 1): Risk Risk Rating Risk Minimization Measure From Outputs to Objective 1. Inefficient mechanisms may exist for S - As an alternative to the cofinancing system, the transfer of funds from the center to the use of international Agent for the management local level. of Project funds. 2. Insufficient public funding and human M Eligibility criteria for selection of municaplities resources may be available at municipal to include counterpart financing from strategic level. public-private partnerships (Alianzas). 3. Possible lack of political commitment M Participation and communication strategy to at local level to the objectives of the achieve high level of consensus and support. Program. 4. Indigenous and Afro-Colombian N Specific attention will be given to these groups communities may resist Program during the consultation process. Eligible interventions. Cabildos would participate in the Project, as municipal entities. Whenever selected, Cabildos as well as eligible Afro-colombian communities, would present their own subproject proposals. 5. Teacher unions may see Program as a M - Participation of and consultation with teacher threat to their interests; possibility of unions and teachers in planning process at insufficient interest/will on part of national, Parterniship, and subproject levels; teachers to education reform. teacher participation in curriculum reform through school networks. 6. Demand for education services may N Use of appropriate communication strategies remain low in rural areas and use of incentives (such as school transport and school nutrition programs) planned through participatory approaches and with continuous monitoring. 7. Political and social conflict may H . Continuous monitoring system of the security prevent Project teams in implementing situation especially by credible local NGOs; use and supervising activities and therefore of communication strategies and a high degree prevent attainment of Program objectives, of participation from school communities. particularly those relating to Education for Peace. 8. Existing resources are not sufficiently M Selection criteria and management of reallocated to contain costs of extended municipal subprojects to include planned coverage. resource reallocations (specified in Operational Manual); use of continuous monitoring. From Components to Outputs 1. Possibility of absence of institutional M Focus on appropriate TA and creation of capacity to manage Program at all levels. Alianzas with the private sector and Universities; use of an Agent for the management of project management of Project. - 30 -  2. The Alianzas may not function as M TA program to emphasize strategies for envisaged in providing a partnership partnership using a flexible approach and between public and private sectors. appropriate communication strategies. Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk) 3. Possible Controversial Aspects: (a) Unstable security conditions in some targeted municipalities may prevent access for Project personnel for adequate Project implementation and supervision. Project presence in such areas may be politically sensitive as could the use of NGOs as monitors of the security situation. As much as possible, security conditions would need to be taken into consideration in the selection of the municipalities. (b) Political sensitivities could arise in some municipalities over the representation of civic society as partners in the Alianzas in the management of public education; this would particularly apply in the case of private sector involvement which could be perceived as serving a vested interest. Intensive and appropriate communication strategies will help to reduce these sensitivities as will rigorous monitoring of the functioning of the Alianzas. (c) A possible controversy may arise concerning the Project's Education for Peace component, particularly in areas with political violence, where activities to develop social capital may be perceived as politically motivated. The use of an effective communication strategy will help to reduce the public perception of this, as will more participatory and democratic strategies of school governance and school-community linkages. (d) Indigenous and Afro-Colombian communities have tended to perceive education interventions as culturally and politically insensitive to their community values. The adaptation of existing educational models to the needs of these groups and their participation in educational management through the elaboration of community-based Life Plans (Planes de Vida) and Community Ethno-education Projects (Proyectos Etnoeducativos Comunitarios, PECs) would greatly improve this situation (see Annex 14). (e) Teachers and teacher unions would be sensitive to attempts to redeploy existing teaching staff according to identified local needs. The possible controversy could be reduced through the offer of incentive schemes for the redeployment of teachers among the municipalities. - 31 -  G. Main Loan Conditions 1. Effectiveness Condition (a) Approved Project Operational Manuals satisfactory to the Bank, including the criteria and procedures for selection of Eligible Municipalities; the criteria for selection and financing of subprojects; the financial management procedures for the Project, and the models of Alianza Agreements and Subproject Agreements. (b) Agent Agreement in effectiveness. (c) Establishment of the Project Unit. (d) Provision of a Plan satisfactory to the Bank for the establishment of a Project monitoring and evaluation system. 2. Other [classify according to covenant types used in the Legal Agreements.] (a) Establishment of the Monitoring and Evaluation System for the Project by 12/31/2000. (b) Maintain a financial management system, including records and accounts (and Agent's Account), and prepare financial statements in accordance with auditing standards acceptable to the Bank; certified copies of these financial statements for such year as so audited, and an opinion on such statements, records and accounts and reports of such audit, should be submitted to the Bank not later than six months after the end of each year in format acceptable to the Bank. (c) Comply with a time-bound action plan acceptable to the Bank for the strengthening of the financial management system in order to enable the Borrower, not later than 31 December, 2000, to prepare quarterly PMRs, according with guidelines acceptable to the Bank. Those reports would be furnished not later than 45 days after the end of each calendar quarter. H. Readiness for Implementation 0 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. El 1. b) Not applicable. Z 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation. O 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. X 4. The following items are lacking and are discussed under loan conditions (Section G): Project Manual - 32 -  1. Compliance with Bank Policies Z1. This project complies with all applicable Bank policies. O 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. David H ng Xavier E. C Andres Solimano Team Leader Sector Manager/Director Country Manager/Director - 33 -  Annex 1: Project Design Summary COLOMBIA: RURAL EDUCATION PROJECT Key, Perormanceo Hierrch of bjetivs inicaors oniori & EvluaIon Critca Asumptions Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission) Developing Human Capital: - 2% increase in primary - DNP and MEN statistics. - Economic, social and Expand access and improve education at the national level - Various assessments of political conditions ensure quality of education within a and 5% increment in rural learning achievement employability of a more decentralized framework, with areas by the year 2000. educated and skilled young (i) the responsibility for the - 1.5% annual average population provision at municipal level; increase at the national level (ii) strengthened school in secondary education management, quality and enrollment rates. autonomy; and (iii) - In schools participating in community and private sector projects, academic participation. Particular achievement test results attention to be paid to the improve by 1 0%. needs of rural education. Municipalities: - In areas participating in the projects, increased number of municipalities are certified to directly manage the education system and fiscal resources. - Municipalities involved in the projects, increase the participation of the education sector in the use of national investment transfers Schools. - 80% of schools (basic and secondary) participating in the projects have a high level of community participation and manage their own investment to improve quality of education. Promoting Rural Development - No indicators directly linked : Eliminate urban bias in the to the CAS delivery of social services Promoting Peace and - New operations include Development: (i) Support specific activities that changes in cultural values and reinforce in a cross sectoral behavior with respect to manner the issue of peace violence/peace; and (ii) and civil coexistence in develop capacity to deal with Colombia conflict resolution through - Increased number of training pacific means at local level programs on alternative mechanism for conflict resolution in many regions of the country - 34 -  Key Performance Hierarchy of Objectives Indicators Monitoring & Evaluation j Critical Assumptions Program Purpose: End-of-Program Indicators: Program reports: (from Purpose to Goal) Improved access to quality By the year 2010 in the Education statistics Sustained political and education in rural areas while targeted areas of Test results financial commitment to supporting, through implementation (a cluster of Regional information education programs, rural school-community municipalities in at least 120 Beneficiary assessments development and relationships and classroom ruiral municipalities selected Impact evaluations complementary social and methodology, the prevention under approved criteria in 30 economic policies and resolution of conflict and departments. the development of civic values. - Increased coverage: 75% of school age population gains access to grades 0-9 in targeted municipalities - Reduced repetition rates by: 30% in basica primaria and 35% in basica secundaria - Learning achievement: test scores as a proxy for LA improve on average by 18% (6%/o per phase) - Community participation: (i) 100% of focalized municipalities strengthen their participation for the management of the school sector;-(ii) 100% of the schools participating in the program use school management techniques which promote community involvement - Peaceful coexistence: (i) pedagogical and school management practices in participating schools promote and encourage the peaceful resolution of conflict; (ii) reduction of violent behaviors and discipline problems in the participating schools - 35 -  Hir,cyo Objctlie lr8kt MoI_nit &lEshatkni G$I As: uptn s Project Development Outcome I Impact Project reports: (from Objective to Purpose) Objective: Indicators: (i) Improved access to quality By the year 2003 in the Municipal and project Sustained political and basic education services in a targeted areas of information systems budgetary support for the cluster of rural implementation (between 40 * Education statistics Program municipalities and 70 municipalities selected Beneficiary assessment and Sustained support by civil included in of 10 targeted under approved criteria in IO school and classroom society for the Program departments while departments. It is expected observations Social unrest does not affect supporting, through that around 176, 000 will be Site visits Program implementation school-community attended): Impact evaluations Interest and availability of relationships and classroom - Increased access: creation of municipal resources to methodology, the prevention school places sufficient to participate in Program. and resolution of conflict and satisfy 100% of the school Monitoring and evaluation the development of civic age population demand results of the Phase I of the values; (ii) strengthened - Repetition rates: reduced by: APL are integrated into Borrower's capacity to 30% in basica primaria and program manage the implementation of 35% in basica secundaria Demand for child schooling education projects in rural - Learning achievement: test is maintained and/or areas; and (iii) strengthened scores as a proxy for LA increased during Program national capacity for the improve on average by 6% despite continued stagnation reform of technical education - Community participation: (i) and poverty of rural areas in rural areas. 100% of targeted municipalities strengthen their participation for the management of the school sector; (ii) 100% of the schools participating in the program use school management techniques which promote community involvement. - Peaceful coexistence: (i) pedagogical and school management practices in participating schools promote and encourage the peaceful resolution of conflict; (ii) reduction of violent behaviors and discipline problems in the participating schools - Technical education: decision whether to use public funds to reform technical education for rural areas is made and reform is designed. - 36 -  Key Performance Hierarchy of Objectives Indicatos Monitoing & Evaluaton Ctical Assumptions Output from each Output Indicators: Project reports: (from Outputs to Objective) component: 1. Access and quality of By the year 2003 in the Project information systems Interest/will on the part of basic education targeted areas of (MEN, Agencia and Alianzas teachers to use upgraded implementation (at least 40 ) pedagogical techniques and municipalities in 10 Municipal information materials departments; i.e. around systems Transport and school 176,000 students attended). Beneficiary assessment and nutrition incentives support In parenthesis the indicators school and-classroom demand for education to meet before Phase II observations services becomes effective: Social conflict enables National Level: school communities to .I Curricular and 7 models evaluated and practice values of peaceful cost-effectiveness evaluation materials upgraded (100%) coexistence of existing models (grade 0-9) for attending basic education needs in rural areas completed. 1.2 Piloting and evaluation of The 2 models are piloted, Telesecundaria and evaluated and upgraded Aceleraci6n del Aprendizaje (100%) Staff of focused educational institutions of respectively 40 and 30 targeted municipalities is trained on use of 2 pilot models (70%) 1.3 Initial teacher training: 40 Escuelas Normales are reform of Escuelas Normales trained and implement curricular reforms (70%) Network among 40 Escuelas Normales is created to promote and develop teacher training schemes 1.4 Various studies and 3 annual programs of investigations to strengthen studies, research, and the MEN's knowledge study-tours completed (70%) management completed. Subproiects: 1.5 Improved capacity to At least 40 municipalities provide access with quality implement a strategy to through a strategy using one increase access with quality or more evaluated pedagogical based on the evaluated models. models (70%) - 37 -  1.6 Demand for child - At least 40 municipalities schooling is supported implement programs supporting rural school transport and school nutrition (50%) 1.7 In-service teacher training 80% of teachers in targeted schools receive upgraded training courses (70%) 1.8 Successful implementation 80% of targeted schools of Productive Pedagogical implement PPP (70%) Projects 2. Institutional strengthening National Level: 2.1 Strengthened capacity for Manuals, software, the implementation and monitoring system in place monitoring of the Project (100%) Key personnel trained (100%) 2.2 System for the impact Baseline designed, evaluation created evaluation system in place (100%/) 2.3 Communication and Communication strategy for information strategy limits the Project is designed, implementation risks and implemented and evaluated improves project ownership (I00%Y.) 2.4 Creation of 10 Alianzas 10 tripartite agreements for the design and (MEN, Agencia, Alianza) are implementation of subprojects signed (100%) Subprojects fund allocation is fully disbursed (70%) Subprojects: 2.5 Increased municipal * At least 40 municipal capacity to design and subprojects designed and supervise subprojects and to implemented (70