Public Disclosure Authorized Document o f The World Bank FOR OFFICIAL USE ONLY Report No: 36712-GT Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$80.0 MILLION TO THE Public Disclosure Authorized REPUBLIC OF GUATEMALA FOR A N EDUCATION QUALITY AND SECONDARY EDUCATION PROJECT January 30,2007 Public Disclosure Authorized Human Development Sector Management Unit Central America Country Management Unit Latin America and the CaribbeanRegional Office This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not otherwise be disclosed without World Bank authorization. . CURRENCY EQUIVALENTS (Exchange Rate Effective: January 2007) Currency Unit "k Quetzal Q1.00 = US$0.13 US$l.OO = 47.69 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy COEDUCA Parent-run School Committee (Comitk Educativo) DDE Departmental Education Offices (Direcciones Departamentales de Educacidn) DICADE Directorate o f Education Quality and Development (Direccidn de Calidad y Desarrollo Educativo) DIGEBI General Directorate o f Bilingual and Intercultural Education (Direccidn General de Educacidn Bilingiie e Intercultural) DIGEEX EBI ` General Directorate o f Non-Formal Education (Direcci6n de Educacidn Extra Escolar) Intercultural and Bilingual Education (Educacidn Bilingiie Intercultural) ENh4 Upgraded regional pre-service teacher training centers (Escuelas Normales hhdelo) FODE Education Development Fund (Fondo de Desarrollo Educativo) hnded by the Canadian International Development Agency GOG Government o f Guatemala GER Gross Enrollment Rates (total number o f students enrolled in a particular level divided by the total population o f school-age for that same level). National Institute for Basic Education Public Lower Secondary Education Institutes: grades 7-9 NEB (Instituto Nacional de Educacidn Bcisica) IEE Index o f Education Efficiency (Indice de Efciencia Educativa ) LSS Lower Secondary School NER N e t Enrollment Rates (total number o f students with the appropriate school-age for a particular level, divided by the total population o f that age) NGO N o n Governmental Organization NUFED Family and community-Based Education Centers (Nticleo Familiar Educativopara el Desarrollo) MINEDUC Ministry o f Education PCR Primary Education Completion Rate PE School Improvement Plan (Proyecto Escolar) PEMEM Improvement o f Secondary Education Project (Proyecto de Extensidn y Mejoramiento de la Educacidn Media) PRONADE National Community-Managed Program for Educational Development (Programa Nacional de Autogestidn para el Desarrollo Educativo) SAT Tutorial Learning System (Sistema de Aprendizaje Tutorial) SIAF Integrated System o f Financial Administration UCP Project Coordination Unit (Unidad Coordinadora de Proyectos) UDAF Financial Administration Unit (Unidad de Administracidn Financiera) UDI Information Technology Unit (Unidad de Informcitica) WE Education Planning Unit (Unidad de PlaniJicacidn Educativa) USAID United States Agency for International Development V i c e President: Pamela Cox Country Managermirector: Jane Armitage Sector Manager: Eduardo Velez Sector Leader: Laura Rawlings Task T e a m Leader: Joel Reyes FOR OFFICIAL USE ONLY GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 3 1. Country and sector issues.................................................................................................... 3 2. Rationale for Bank involvement ......................................................................................... 8 3. Higher level objectives to which the project contributes .................................................... 9 B . PROJECT DESCRIPTION ............................................................................................... 10 1. Lending instrument ........................................................................................................... 10 2. Project development objective and key indicators............................................................ 10 3. Project components ........................................................................................................... 10 4. Impact Evaluation and Monitoring Strategy ..................................................................... 17 5. Lessons learned and reflected in the project design .......................................................... 19 6. Alternatives considered and reasons for rejection ............................................................ 19 C . Implementation ................................................................................................................... 20 1. Partnership arrangements .................................................................................................. 20 2. Institutional and implementation arrangements ................................................................ 20 3. Monitoring and evaluation o f outcomes/results., .............................................................. 20 . . . 4 . Sustainability..................................................................................................................... 20 5. Critical risks and possible controversial aspects............................................................... 20 6. Loan conditions and covenants ......................................................................................... 22 D . APPRAISAL SUMMARY ................................................................................................. 22 1. Economic and financial analysis ....................................................................................... 22 2. Technical ........................................................................................................................... 22 3. Fiduciary ........................................................................................................................... 22 4. Social ................................................................................................................................. 23 5. Environment C Category .................................................................................................. 23 6. Safeguard policies ............................................................................................................. 23 7. Policy Exceptions and Readiness...................................................................................... 23 This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not be otherwise disclosed without World Bank authorization . ... 111 Annex 1: Country and Sector o r P r o g r a m Background ......................................................... 24 Annex 2: M a j o r Related Projects Financed by the Bank a n d o r other Agencies .................44 Annex 3: Results F r a m e w o r k and Monitoring ........................................................................ 45 Annex 4: Detailed Project Description...................................................................................... 66 Annex 5: Project Costs ............................................................................................................... 82 Annex 7: Financial Management and Disbursement Arrangements ................................... 101 Annex 8: Procurement Arrangements .................................................................................... 109 Annex 9: Economic and Financial Analysis ........................................................................... 118 Annex 10: Safeguard Policy Issues .......................................................................................... 133 Annex 11: Project Preparation and Supervision ................................................................... 153 Annex 12: Documents in the Project File ............................................................................... 155 Annex 13: Statement o f Loans and Credits ............................................................................ 158 Annex 14: Country at a Glance ............................................................................................... 160 Annex 15: Maps......................................................................................................................... 162 iv GUATEMALA E D U C A T I O N QUALITY AND SECONDARY EDUCATION PROJECT APPRAISAL D O C U M E N T LATIN A M E R I C A AND C A R I B B E A N Date: January 30,2007 Team Leader: Joel E. Reyes Country Director: Jane Armitage Sectors: Secondary education (65%); Primary Sector ManagerDirector: Eduardo Velez Bustillo/ education (35%) Evangeline Javier Themes: Education for all (P);Rural services and infrastructure (P);Indigenous peoples Project ID: PO89898 (P);Decentralization (S) Lending Instrument: Specific Investment Loan Environmental screening category: N o t Required Project Financing Data [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: F o r Loans/Credits/Others: Loan Currency: United States Dollars Total Bank financing (US$m.): 80.00 million Proposed terms: Fixed Spread Loan - (FSL) Grace Period (years): 6 Years to maturity: 16 Commitment fee: 0.75% o f undisbursed balance, subject to waiver Borrower: Government o f Guatemala Guatemala Responsible Agency: Ministry o f Education 6a Calle 1-87, Zona 10 Ciudad de Guatemala, Guatemala Tel : 502 236 1-08 17, hlemus@,mineduc. gob.gt 1 Have these been approved by Bank management? [ ]Yes [ IN0 I s approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated "substantial" or "high"? [XIYes [ ] N o Re$ PAD C.5 Does the project meet the Regional criteria for readiness for implementation? Re$ [XIYes [ ] N o P A D D. 7 Project development objective Re$ P A D B.2, Technical Annex 3 The objective o f the Project i s to improve access to a quality lower secondary education for low income students, especially indigenous communities, through improved primary education completion rates for overage students, strengthened flexible lower secondary education modalities and school management. Project description [one-sentence summary o each component] Re$ P A D B.3.a, Technical Annex 4 f The proposed Project w i l l support three components with inter-dependent objectives: Component 1. Primary Education Completion and Quality (US$7.7 million): This component would support an integrated strategy for Basic Education (primary and lower secondary cycles) to increase primary education retention and completion o f overage students, and promote their continued education at the lower secondary education level. The component w i l l also support proposed reforms to the Pre- Service Teacher Training system. The two strategic sub-components follow: a) Subcomponent 1.a. Integrated Basic Education Centers (US$3.67 million); and b) Subcomponent 1.b. Pre-Service Teacher Training Development (US$5.80 million) Component 2. Access and Quality of Lower Secondary Education (US$51.2 million): This component would support integrated strategies to increase the quality and access to lower secondary education (grades 7-9). I t w i l l include support for (i) curricular reform o f secondary education; (ii) the strengthening and expansion o f existing lower secondary education modalities; and (iii) strengthening education demand programs. T h i s w i l l be done through the following subcomponents: a) Subcomponent 2.a. Feasibility studies and strategies for upper secondary education curricula and evaluation systems (US$ 4.10 million); b) Subcomponent 2.b. Strengthening and Expansion o f Pertinent and Flexible Modalities for Lower Secondary Education (US$60.09 million); and c) Subcomponent 2.c. Education Demand Scholarships for L o w Income Students (US$6.68 million). Component 3. School Management in Support of Education Quality (US$21.0 million): T h i s component w i l l advance the lessons learned on school management strategies implemented at the primary school level through the last decade in Guatemala through the following subcomponents: a) Subcomponent 3 .a. Consolidation and Strengthening o f School-Based Management for Education Quality (US$ 17.5 million); and b) Subcomponent 3.b. Consolidation and Strengthening o f Departmental Supervision and Technical Assistance to Schools (US$2.5 million). Which safeguard policies are triggered, if any? Re$ P A D D.6, Technical Annex 10 Indigenous Peoples (OP/BP 4.10) Significant, non-standard conditions, if any, for: Re$ P A D C. 7 Board presentation: NIA Loadcredit effectiveness: NIA Covenants applicable to project implementation: NIA 2 A. STRATEGIC CONTEXT AND RATIONALE 1. Country and sector issues 1. General Sector Diagnosis. The equitable development o f the human capital o f i t s 12.6 million inhabitants i s key to economic growth and poverty reduction in Guatemala. The country's growth strategies-a free trade agreement with the US, regional integration proposals, and national and international competitiveness schemes-aim at increasing growth while reducing the country's broad inequalities. Guatemala currently has a Gini coefficient' o f 0.56, which implies that the poorest quintile o f the population earns 2.4% o f national income, while the highest quintile earns 70%. In t h i s context o f high inequality, education i s key to increasing equality, reducing poverty, and developing competencies and knowledge conducive to economic growth. 2. In the last decade, significant advances were made in the primary education sector. Since the Peace Accords o f 1996, all Government administrations have supported the expansion o f primary school coverage, intercultural and bilingual education, and the modernization and decentralization o f education management. Public education expenditures increased at a pace o f 9% annually between 1996 to 2004, and the share o f public educational expenditures in GDP increased from 1.6% in 1996 to 2.7% in 2005. Achievements to date include: (i) significant primary education coverage (93.5% net' and 113% gross3 enrollment rates in 2005); (ii) standards-based curricular reforms in primary education, and national i ibilingual education programs for grades 1-3; (iv) focused learning assessments in grades 3, 6 and 9; ( i ) support for rural primary schools through multi-grade schooling in isolated and dispersed communities; and (v) decentralized education management, with increased decision making at the school level (most primary schools in Guatemala have some form o f school government and have received public hnds for local investments). 3. Secondary Education Lag. For Guatemala's growth agenda, expanding quality secondary education increases the country's competitiveness and reduces disparities in household incomes. W h i l e the last decade has seen significant improvements in primary education coverage, progress in secondary education has not followed at the same pace. Guatemala's education indicators for youth are quite alarming. In 2005, net4 and gross' enrollment rates in lower secondary (Grades 7 through 9) stood at 33 and 55% respectively. (Cf. Table A.l). The Gini coefficient i s a measure o f inequality; often used to measure income inequality. Here i t i s expressed as an Index-a number between 0 and 1 multipliedby 100, where 0 corresponds to perfect equality (Le. everyone has the same income) and 1 corresponds to perfect inequality (Le. one person has all the income, while everyone else has zero income). * Defined as: Number o f uuuils age 7-12 enrolled i 1-6" grade in January o f 2005 n Number o f children age 7-12 (as estimated by INE) for 2005 Defined as: Number o f uuuils o f all ages enrolled in 1-6" grade in January o f 2005 Number o f children age 7-12 (as estimated by INE) for 2005 Defined as: Number o f pupils age 13-14-15 enrolled in 7-8-9" grade in January 2005 Number o f youth age 13-14-15 (as estimated by INE) for year 2005 Defined as: Number o f p u d s o f all ages in 7-8-9* grade in January o f 2005 Number o f youth age 13-14-15 (as estimated by ME) for year 2005 3 Table 1: Primary and Lower Secondary Education Enrollment Rates in 2005 Primary (Grades 1-6) Gross Enrollment Rate(=2/1) 113% 117% 108.8% 102.6% 120% Net Enrollment Rate (=4/1) 93.5% 95.5% 91.5% Lower Secondary (Grades 7-9) Gross Enrollment Rate(= 7/6) 55% 59.3% 51% 26% 74% 4. An average 20-year old in Guatemala has only 4.3 years o f education. Nationwide, 1.2 million youth between the ages o f 13 and 18 are out-of-school. In addition, the gap in educational achievement between the indigenous and non-indigenous youth, and between rural and urban youth i s significant: for non- indigenous populations, the GER in lower secondary was 74%, while for indigenous populations, it was only 26%: This large gap reflects, in part, the low supply o f lower secondary education in rural areas, where only 22% i s rural. Recent studies6 have determined that in Guatemala an average worker would require at least 9 years o f education to move above the poverty line (independently o f years o f work experience). 5. For the relative few students that continue their studies after primary education, learning in lower secondary education i s low. In 2005, a Standardized test was applied in a significant proportion o f 9th grade classes. The data showed that the learning level i s very deficient overall, and especially in rural secondary education models. Thus, expansion o f secondary education must initiate with improving the pedagogical quality o f existing programs. 6. Low Primary Education Efficiency. L o w efficiency in primary education as a bottleneck for expanding secondary: Guatemala seeks to improve its Gross Enrollment Rate in lower secondary education from 55 to 71% by 2015. However, the country has defined that increased school places in the secondary level alone w i l l not achieve this goal. For example, in 2004, the number o f students that enrolled in 7th grade (1 99,000)7 was larger than the number o f students who graduated from 6th grade in 2003 (192,300). The net completion rate for 6th grade8 was only 22%, and the gross rate (counting overage students) was 70% (2005 figure). (Cf. Table A.2). Thus, i t appears that low completion from 6th grade i s as much a limiting factor to secondary education demand, as i s the supply o f lower secondary spaces. Table 2: Primary and Secondary Completion Rates Source: Calculations based on MINEDUC data. For calculations, cf?. Annex 1. Emilio Porta, Academy for Education Development, AED; 2005. Includes 6th grade graduates who transition to lower secondary education after some time outside o f the education system. 'Defined as: Number o f pupils age 12 enrolled in 6" grade in Januarv o f 2004 Number o f children age 12 (as estimated by N E ) for 2004 4 7. The repetition rates are especially high in the early years o f primary; f i r s t grade seems to be a major stumbling block with 25% repeating this grade in 2005. While total dropout ratesg are initially below 10% a year, over 45% o f children enrolled in Grade 5 in 2005 were not longer enrolled in January 2006. This i s the reason why, by the time a cohort reaches 12 years o f age, only 22 out o f 100 children complete o n time primary education. (cf. Figure A. 1) Figure 1: Repetition and total dropout rates, Grades 1- 9,2004 cohort 50.0% 45.0% 40.0% 8 35.0% 30.0% % of chiklren who had dropped out by January 2005 cs E: 25.0% : % of children repeating the same grade ir January 2005 8 10.0% 8 5.0% 0.0% 1 2 3 4 5 6 7 8 9 Grade cohort In 2004 Source: Computed with MINEDUC data from 2004 and 2005 8. High repetition and dropout rates affect the education system in several ways: first, the system fails to graduate students even though they have invested time and effort in school; second, the system uses limited financial resources to provide the same level o f education repeated times to students who should have graduated and be enrolled at secondary education level. In addition, with increased repetition, students reach the subsequent grade w i t h an age lag and with increased opportunity costs o f learning, which contribute to dropping out without completing primary education. 9. Finally, the large difference between Gross and Net Enrollment Rates in each primary education grade (Figure A.2) hint at a large access capacity and l o w efficiency in this education level." This may confirm that Guatemala has been successful in providing universal coverage in primary education, but it needs to focus now o n guaranteeing universal primary education completion (grade 6) and transition to lower secondary education (grades 7-9). Note that this i s different from the dropout rates reported by the Ministry o f Education, which consist o f intra-year dropouts, i.e. the difference in enrollments between September and January o f a school year, divided by the January enrollment. What i s reported here i s the total dropout rate, i.e. (new enrollments grade g+l in Jan.2005-total enrollment grade g in Jan.2004)hotal enrollment grade g in Jan.2004. loFor example, in 2004, the Gross Enrollment Rate in 1'' grade was 172%, but efficiency was very low: o f each 100 children enrolled in first grade (i) had the appropriate age, (ii) 43% 24% were 1 year overage, (iii) were two or 25% more years overage, and (iv) 8% were younger than 7 years (under-age). 5 Figure 2: Gross and Net Enrollment Rates b y Grade in 2004, National Level 1 2 3 4 5 6 7 8 9 Grede Source: Computed with MINEDUC data 10. Overage children in the primary education cycle. While i t i s not possible to compute exactly the specific dropout rates for overage children, a number o f elements suggest that being overage in primary education puts children at high risk o f dropping out o f school permanently. For example, the 2005 Social Assessment identifies that psychological elements linked to being overage in primary schools are a main reason for dropping out. In addition, parents and teachers see less o f a priority in keeping older children in school. Education statistics also show that school enrollment rates drop pronouncedly between the ages o f 13 and 16. Paradoxically, most o f the dropouts do not happen in secondary school but in primary school. Because o f high repetition rates, nearly 40% o f 13 to 15 year olds in 2005 (approximately 355,000) were s t i l l in primary school and 12% more may have dropped out after first grade (assumption based on 12% o f 13-15 year old youth who could not read or write in 2005). In comparison, only 30% o f this age group (280,000) where enrolled in grades 7-gth. 11. Integrated Primary Education Efficiency and Lower Secondary Education Expansion Efforts. In view o f the bottlenecks in primary school, expanding access to lower secondary education goes beyond increasing the number o f school places. There i s also an urgent need to address the low efficiency o f primary education, supporting the current generation o f overage youth in primary schools and preventing the overage phenomenon to occur in upcoming cohorts o f children. An integrated strategy must address the quality and efficiency o f primary education" and the quality and expansion o f the supply o f lower secondary education. 12. Education for Indigenous Populations. Lower secondary at this time i s concentrated in urban areas, and rural and indigenous areas are underserved. I addition, lower secondary modalities catering to n rural and indigenous areas tend to be o f lesser quality and need to be strengthened. Although lower secondary education sector i s relatively small, Guatemala has benefited from a broad spectrum o f programs already implemented in the country-both flexible modalities (in terms o f calendar, tutorial, semi-distance, and center-community combinations) and traditional center-based modalities. 13. Given the noted differentials in educational development, quality and efficiency between urban and rural areas, and since rural areas have a predominant indigenous population, a specific assessment o f these issues was included in both (i) sector and feasibility studies and (ii) project design. Annex 10 presents in detail the specific education needs o f Indigenous Populations, the results o f sector assessments, and how the Government and the proposed Project specifically support the assessed needs. l1 this end, Guatemala has proposed an integrated strategy to increase the quality o f primary schools and expand To completion by reducing (i) entry, (ii) late i itemporary dropout from school-which contribute to repetition, and ( i ) students being overage and dropping out before finalizing 6'h grade. In the short-term, a special program for overage youth in primary schools w i l l tend to this population's specific learning and psycho-social needs, and motivate them to complete 6" grade and continue o n to lower secondary education. 6 14. Teacher Training. The inter-dependence between Primary and Secondary Education access, efficiency and quality i s also related to the quality o f teachers. In Guatemala, teachers are trained at the secondary education level only, in grades 10 through 12. This secondary education program for primary education teachers has not been updated in 22 years. In-service testing o f teachers in subject-area knowledge has shown serious issues o f low quality. Primary education teachers leave secondary education ill-prepared to teach new cohorts o f primary education students. Moreover, given the limited amount o f opportunities in technical secondary education tracks, the Teacher Training track i s over- demanded by students who seek employment after secondary school. Strikingly, the primary education sector can only absorb 5% o f newly graduated teachers each year. Nonetheless, the teacher training track currently has no selection or vocational testing mechanisms, to help i t recruit and train the best candidates for the teaching profession. 15. International comparison: Based on the latest available Central American comparison information (2003), Guatemalan Primary Completion Rates and Secondary Education Gross Enrollment Rates are behind low-income neighbors such as Honduras and Nicaragua. Today, Guatemala i s not on-track to meet the Education for All (EFA) goals. 12 (cf. Table A.3) Table 3: Primary Education Completion Rates (PCR) and Secondary Education Gross Enrollment Rates (GER) in Central America and with Countries of Similar Per Capita Income in South America (2001,2002,2003) Central America PCR Secondary Education (grades 7-12) GER Costa Rica 89 66 El Salvador 75 61 Nicaragua 69 59 Honduras 69 48 Guatemala 62 33 Countries with Similar p/c Income Peru 97 81 Ecuador 96 57 Colombia 85 70 Source: E. Di Gropello, Central America Education Strategy Paper. 16. The Country's Objectives. The Guatemalan objective i s to increase the competitiveness and socio- n economic equity o f its population. I the education sector, the targets for 2015 are (i) reach net Primary to Completion Rates (PCR) o f 85% and (ii) increase lower secondary GER from 55% to 71%. l3These to objectives are consistent with Guatemala's high private returns on additional years o f education, and high returns on completion o f primary and lower secondary. 17. The Country's Strategies. Primary (6th grade) completion and 7th to 9th grade enrollment must be supported in an integrated manner. Secondary Education access i s dependent o n improved efficiency and completion in, and transition from, Primary Education. Therefore, the strategic choice o f the Government o f Guatemala i s to start reforms at the secondary education level, but to continue to support primary education, complementing long-term general quality improvements (such as improving the quality o f pre- '* By 2015, EFA Goals include universal completion o f 6th grade, and completion o f the full basic education cycle till 9" grade. l3Based on Projections by CIEN and World Bank, as part o f analysis for Public Expenditure Review o f Guatemala. 7 school and the first cycle, grades 1st-3rd, and support teacher professional development) with short-term efficiency solutions (such as accelerated learning and promotion for overage students14). 18. The country has already developed integrated curricula for grades 1-9 to guarantee appropriate standards, methodologies and evaluations. I t w i l l also pilot an integrated basic education cycle (i.e. an integration o f primary and lower secondary cycles) in the same school, and evaluate i t s impact on completion and transition rates. In secondary education, the objective i s to improve the quality of, and expand access to, lower secondary education (grades 7-9) for low income, indigenous and/or rural populations. To guarantee sustainability and take advantage o f existing Government and donor efforts in the sector, the strategic choice i s to improve, and then to expand, existing lower secondary education rural modalities. 19. Targeting Strategy: Guatemala i s a multicultural and multilingual country with diverse educational needs. As the needs vary, the solutions are not uniform. Regionally, educational gaps and inequities at both the primary and the secondary level are substantial. The aim o f the Project i s to invest in Secondary Education (and related Primary Education interventions) where the needs are greatest. This implies guaranteeing equitable education improvements for low income groups, for the rural sector and for Indigenous communities. Given the limited resources available, the Government w i l l initiate investments using clear and equitable criteria. Three criteria w i l l be used to prioritize Project investments and other contextualized support: (i) regions with education demand-supply imbalances, (ii) regions with education development differentials by income level or ethnicity, and (iii) regions with lags in educational efficiency, as represented by an Index o f Educational Efficiency (IEE). 2. Rationale for B a n k involvement 20. Guatemala considers the Bank a key ally in i t s education development strategies. The 2005-2008 Country Assistance Strategy (CAS) sets important education sector priorities as contribution to human development, inclusion, and equitable economic growth. The CAS proposes both analytical and investment support. On-going analytical work has contributed to better understanding o f the dynamics and needs o f the Guatemala education sector, including secondary education reforms. More recently, investment support has focused on grades 1-6 through the on-going Universalization o f Basic Education ~ P r ~ j e c t . 'The proposed Education Quality and Secondary Education Expansion Project support the next education level: grades 7-9. 21, Internationally, the Bank i s sharing technical and analytical lessons focused on the transition between primary and lower secondary, which i s seen as value added by the Government o f Guatemala. Also, the Bank's education investment support contributes to increase education opportunities to poor, rural and/or indigenous youth. The Bank's extensive research and analytical work--on education quality, community participation, and regional strategies-has supported in-country policy dialogue. The Bank i s an active member o f the Inter-Donor Network in Guatemala, which i s harmonizing efforts to support education sector diagnosis, specialized studies, and planning. Bank involvement in this Project i s an integral part o f a comprehensive strategy in the Guatemala education sector. l4 Experiences in El Salvador, Colombia and Brazil on primary education reforms with interventions for overage students have been considered and contextualized for the Guatemalan sector needs. l5 This project focuses on rural primary education coverage and quality. Expansion i s supported through a community-based management model, PRONADE. Quality o f teaching and learning i s benefited by investment in multigrade and bilingual education. I t closes on December 3 lst, 2007. 8 3. Higher level objectives to which the project contributes 22. The Project contributes to two higher level objectives in Guatemala: (i) Long-Term Education the goals o f the Country-evolved from the original Peace Agreement o f 1996-and (ii) education the development objectives o f the Country-wide Social Development Plan "GUATESOLIDARIA". 23. The following table summarizes these long term education objectives: EducationAccess and Coverage 0 Universal Access o f All School-Age Population from Pre-school to Lower Secondary Education (9th Grade) EducationQuality And Pertinence 0 Design and contextualize the curricula, including aspects of identity and right o f indigenous people. 0 Develop pertinent education and training for school-to-work transition. 0 Professional preparation and training o f teachers and education managers Education Resources 0 Increased Public Financing to Basic Education 0 Support demand-base programs, such as scholarships, conditioned cash-transfers and other study support packages Community Participationand Human Rights 0 Increased participation o f parents in education seeking integration between the community and schools. 0 Improved promotion and training for social participation o f communities and grass-roots organizations. 0 Implemented education programs in democracy, civics and peace values. 0 Integrate a Consultation Commission as part o f the education reform process. 0 Education Development Promoters institutionalized to guarantee the respect for educational content pertinent to indigenous and traditionally excluded communities. GUATESOLIDARIA Education Objectives 2006 0 Universal primary education, while increasing preschool and secondary education coverage; 0 Improved quality o f teaching and learning; 0 A reformed secondary education to strengthen the nexus among education, productivity and competitiveness; 0 Inter-cultural, civic, and self and inter-personal development; and 0 A reformed and modernized education management conducive to quality and results. 9 B. PROJECT DESCRIPTION 1. Lending instrument 24. A Specific Investment Loan (SIL) was requested by the Government o f Guatemala to provide targeted financing to specific investments in its Education Development Program, while increasing the fiduciary, monitoring and evaluation capacity o f the Ministry o f Education. 2. Project development objective and key indicators 25. The objective o f the Project i s to improve access to a quality lower secondary education for low income students, especially indigenous communities, through improved primary education completion rates for overage students, strengthened flexible lower secondary education modalities and school management. 26. The success o f the project w i l l be measured by the following Project Development Outcome (PDO) Indicators (the Impact Evaluation w i l l compare 2006 baseline with the 2012 project impact data collection on beneficiary and control regions, schools and students): 0 9" grade Gross Completion Rates (nationally and in targeted regions); 0 Gross Enrollment Rate in lower secondary education, grades 7-9 (nationally and in targeted regions); 0 Increased intake (access) in grade 7-in modalities supported by the Project; 0 Proportion o f overage students (13-15 year old) who complete primary education (in Integrated Basic Education Centers); and 0 6" grade Gross Completion Rate (nationally and in targeted regions). 3. Project components16 27. The proposed Project w i l l support three components with inter-dependent objectives: (i) Primary Education Completion and Quality, (ii) Lower Secondary Expansion and Quality, and (iii)School-Based Management focused on Education Quality. Component 1. Primary Education Completion and Quality (US$7.7 million) 28. This component would support an integrated strategy for Basic Education (primary and lower secondary cycles) to increase primary education retention and completion o f overage students, and promote their continued education at the lower secondary education level. To contribute to long-term quality improvements in primary education, the component w i l l also support proposed reforms to the Pre- Service Teacher Training system. The two strategic sub-components follow: l6 If not otherwise noted, project investments w i l l be concentrated in 10 targeted regional departments o f Guatemala. These departments were identified based on an analysis o f education efficiency and outcomes across regions in Guatemala; these are those that show the lowest education outcomes. Targeted departments have up to 70% indigenous populations; albeit there selection not only included ethnicity. The investments and outcome indicators for this project are presented generally for the 10 regions (and nationally, in the case o f gross enrollment and completion rates, which the project contributes to). For specific disagregation o f targets and Project budgets earmarked for indigenous populations, please consult Annex 10 o f the PAD. 10 Subcomponent 1.a. IntegratedBasic Education Centers (US$3.2 million) 29. Sector context and diagnostic summary. Although Guatemala has significantly improved primary education coverage, it only graduates on-time 22% o f enrolled cohorts. The low efficiency o f the system responds to (i) entry, (ii) late high repetition (especially in the lower grades) and (iii) dropout rates high (especially after 3d grade). As a result, over 30% o f the primary education enrollment (more than 300,000 students) are at least two years overage. These students are at-risk o f dropping out before completing primary education-not only because o f the additional effort, time and resources needed, but also because the pedagogical and psychosocial environment in primary schools i s no longer pertinent for these adolescents and youth. 30. Strategic Objective. Support overage students (11-15 year old) in primary schools finalize their primary education cycle and continue on to lower secondary schooling. The integrated Basic Education strategy-unifying the primary and lower secondary education levels-will include pertinent pedagogical programs and an appropriate psycho-social environment for the overage student (at risk o f dropping out). 3 1. Implementation Strategy. The component w i l l provide targeted (based on IIE criteria) schools with: (i) quality accelerated program for students with 3 or more years o f overage, (ii) flexible lower a a secondary education program-to be taught in the same sch001,~' (iii) training and support for the school principal and leadership; and (iv) a small financial incentive to prepare a school improvement plan, and to n support school-defined activities.'* I turn, the school "converted" into an Integrated Basic Education Center w i l l commit to: (ai) strengthen i t s teacher-parent school committee, (b) prepare i t s School Improvement Plan with strategies to guarantee on-time entry o f new students to pre-school andor first grade, and (c) strengthen reading and writing abilities o f students enrolled in the first and second grades. This innovative program-to be initiated in 350 rural schools in Guatemala-will strengthen both long- term and short-term quality improvement to primary education and completion o f students at this level. 32. As for the accelerated overage program, i t w i l l be targeted to youth at risk o f dropping out of the primary education level; i t w i l l include (i) i) student-centered pedagogical strategies; ( i academic and applied learning, (iii) flexible promotion to guarantee school retention and secondary education transition; and (iv) on-going student counseling linked to the integrated primary-lower secondary education strategy. Thus, the accelerated program-albeit a transitory intervention-will provide incentives for long-term improvement needs in primary schools (supported and financed by MINEDUC and other donors): (a) inclusion o f pre-school programs; (b) reading and writing reinforcement in first grade, including support in mother languages in EBI schools ; and (c) school planning and evaluation improvements. Subcomponent 1.b. Pre-Service Teacher Training Development (US$4.5 million) 33. Sector context and diagnostic summary. The Ministry o f Education has begun a reform o f the Pre- service Training Program for Primary Education Teachers. The reform includes: (i) curricular improvements (both in terms o f content specialization and pedagogical process); (ii) structural reform a for a more in depth preparation o f teachers trained at the upper secondary level (grades 10-13), ; and (iii) inclusion o f standardized learning assessments/testing (for admission and graduation purposes) for the teaching training tracks. This sub-component w i l l develop and strengthen five regional teacher training centers (called Escuela Normal Modelo). l7Resources for the creation o f the lower secondary education cycle in Integrated Basic Education Centers will be financed from Subcomponent 2.B (Lower Secondary Quality and Expansion), below. The financial incentive for the preparation o f school improvement plans o f Integrated Basic Education Centers w i l l be financed from Subcomponent 3.A (School Based Management for Education Quality), below. 11 34. Strategic Objective. Strengthen five regional pre-service teacher training centers, with upgraded curricula, study program for primary education teacher training, and specific focus o n pedagogical competencies and subject-knowledge pertinent to flexible modalities, rural areas and intercultural and bilingual education. Students will be identified from a pool o f high performance and highly motivated applicants. 35. Implementation Strategy. The five regional pre-service teacher training centers will receive: (i) materials with improved curricular and pedagogical strategies and the new pre-service training study program; (ii) training for teacher trainers with support from Guatemalan major universities; (iii) applied student-centered pedagogy courses through in-classroom practice as teaching assistants; and (iv) specialized training for key areas demanded by the school system in Guatemala, especially in communities and regions with the highest educational gaps (for example, specialization in pre-school, multigrade, rural, intercultural and bilingual education). Component 2. Access and Quality of Lower Secondary Education (US$51.2 million) 36. This component would support integrated strategies to increase the quality and access to lower secondary education (grades 7-9). It will include support for (i) curricular reform o f secondary the education; (ii)strengthening and expansion o f existing lower secondary education modalities; and (iii) strengthening education demand programs, such as scholarships and subsidies for enrollment, retention and graduation o f l o w income students. Subcomponent 2.a. Feasibility studies and strategies for secondary education curricula and evaluation systems (US$4.9 million) 37. Sector context and diagnostic summary. The Ministry o f Education (supported by other donors) i s advancing sector-wide efforts to reform the secondary education curricula, including the definition o f an integrated standards-based curriculum, improved evaluation systems, and secondary teacher training proposals. The curricular reform, by nature, must be done from a sector-approach and integrated among each sub-sector level. The Project does not intend to finance the overall secondary education reform in each o f the education levels and tracks. I t does intend to support the integrated secondary education curricular analysis-and proposals-which w i l l guide the medium and longer-term reforms in this education level. I t i s expected that specific lower secondary education modalities strengthened by this Project will also permeate the longer term secondary education reform proposals, and vice-versa. 3 8 , Strategic Objective. Support on-going feasibility studies, integrated strategies and implementation pilots for lower and upper secondary education curricula and evaluation systems, most notably, to guide medium and longer-term reforms for this level. 39. Implementation Strategy. The feasibility studies and proposal definition w i l l be based o n a participatory mechanism to include teachers and principals o f secondary schools, universities, think tanks and foundations interested in secondary education, as well as businesses and corporations. For technical education, one o f the curricular reform proposals will be defined by a pilot network o f stakeholders (public-private sector) and "action research"" studies in 5 existing technical schools in the country. Lessons from these applied studies will be integrated into the proposed curricular reform. ~~ 19 Action research, as a study methodology, attempts to combine traditional "documentation based" studies with lessons learned from "in situ" situations and preliminary impact o f initial operational reforms. 12 Subcomponent 2.b. Strengthening and Expansion of Pertinent and Flexible Modalities for Lower Secondary Education (UW43.8 million) 40. Sector context and diagnostic summary. Two o f the largest existing lower secondary education modalities in the Guatemalan rural sector are: Telesecundaria (video-supported teaching) and Alternancia (semi-distance modality that alternates students between school and community learning). Both modalities were initiated in Guatemala over 10 years ago, with support from other countries where the models were developed: Mexico, France, Belgium and Brazil. However, these modalities must be strengthened in terms o f its pedagogical methods, i t s curricular content, and integration with the school- management strategies o f the country. A cost-effectiveness evaluation-supported by the Proj ect-will provide evidence o f the strengthening process and the feasibility o f further expansion. 4 1. For on-going sustainability and capacity building, the sub-component strengthens and optimizes existing programs supported by the Government and other donors. Large capital investments are also minimized through the utilization o f existing school infrastructure financed by MINEDUC, municipalities and community education stakeholders. 42. Strategic Objective. Support the evaluation, strengthening and expansion o f existing lower secondary education modalities (grades 7-9), pertinent for rural and indigenous communities; and increase access to rural lower secondary education to approximately 90,000 new students, using existing capacity and school infrastructure. 43. Implementation Strategy. The sub-component w i l l evaluate and strengthen the following two existing pedagogical modalities: (i)"Telesecundaria (a TV-video supported strategy)-presently " offered in more than 500 schools, and reaching over 35,000 students; and (ii) "Alternuncia" Programs (combination o f school-community strategies, with applied learning in rural contexts)---presently offered in 550 schools, and reaching 17,000 students. 44. Once these pedagogical models are strengthened, 90,000 rural school places in lower secondary education w i l l be expanded. Thirty thousand new places w i l l be provided through the addition o f a lower secondary cycle in the Integrated Basic Education Centers, presented in Subcomponent 1.A, above. The additional 60,000 new school places w i l l be increased as follows: (i) 36,000 new places in cooperative schools (existing modality financed by the Central Government, the local municipality, and parents); (ii) 16,000 new places by optimizing idle capacity in existing public lower secondary schools including NEB, (Institutos Nacionales de Educacidn Bdsica); and (iii) 8,000 new school places with strategic alliances with non-profit education providers (NGOs and Foundations) for lower secondary education services in the rural sector.20 45. Lower secondary schools supporting increased enrollment o f new students from rural, low income and indigenous targeted groups w i l l receive a "New Student Access Subsidy", on a annual per-student basis. The subsidy w i l l finance the incremental input costs o f new students, and w i l l be used to purchase educational materials, refurbishing o f classrooms, equipment, and school furniture2'. For the Integrated Basic Education Centers, MINEDUC w i l l allocate additional teachers as needed. Cooperative Schools contract additional teachers directly, and the subsidy supports partially the per-student incremental costs for human resources, using a co-financing formula and arrangements betweenmunicipal funds, 2o The final number or new students by modality may vary during Project implementation based on the efficiency, effectiveness and demand o f each modality. 2 1 This School Place financing modality ("Cupo") has been supported by the Bank in Colombia, and more recently in El Salvador. In Guatemala itself, school grants have been disbursed to PRONADE and Cooperative-based schools, as well as for school governments in public primary schools. 13 cooperative-raised funds, and MINEDUC funds (for targeted schools, the MINEDUC contribution w i l l be financed by the Project). 46. The complementary 8,000 school places through alliances with non-profit education service providers are also a strategy to increase implementation capacity in the sector. NGOs and Foundations already support different education services in Guatemala. However, the Project w i l l further norm and systematize the MINEDUC-NGO alliance criteria and mechanisms. Provision o f "school access subsidies" for NGO-run schools w i l l be standardized based on the following criteria: (i) per-student cost a for a basket o f quality education inputs to be provided annually by the N G O (education materials, transportation, meals, etc,) and (ii) prorated amount to complement incremental costs (due to increased a access from traditionally excluded students) for teachers, infrastructure maintenance, equipment, and other educational inputs. Eligible NGOs w i l l also be accredited based on a set o f indicators determining the quality and efficiency o f teachers, methodological strategies, congruence with the National Curriculum, and contextualization to specific cultural and ethnic backgrounds o f the community to be served. Subcomponent 2.c. Education Demand Scholarships for Low Income Students (US$2.5 million) 47. Sector context and diagnostic summary. A large number o f scholarships are already implemented in Guatemala-with support o f Government and other donors, including the Bank. The Country seeks to strengthen existing scholarships programs and make available new scholarships to defray direct family and opportunity costs o f lower secondary education, especially for low income, and rural families and for working youth. The scholarship program requires: (i) improved targeting system; (ii) unified code to an a avoid duplication o f scholarships or exclusion errors (not reaching the correct beneficiary); and (iii)an appropriate community-based and institutionally simple system to monitor school performance o f beneficiaries. 48. Strategic Objective. The sub-component w i l l increase the education demand o f adolescents and n youth from poor income families and Indigenous populations in Project targeted areas. I addition to providing scholarships+onditioned on lower secondary promotion, performance and completion-to eligible students in schools supported by the Project, the sub-component w i l l support the sector-wide strategy o f improving scholarship targeting and monitoring systems. 49. Implementation Strategy. The f i r s t phase o f implementation w i l l systematize and strengthen the identification and selection o f beneficiaries, the administrative and costing structures and mechanisms, and the monitoring and evaluation o f existing scholarships programs. This effort w i l l be done in coordination with other education offices and donors that support scholarships in the education system. In addition, the component w i l l provide approximately 5,500 students from poor socio-economic and indigenous communities, scholarships to complete three years o f lower-secondary education (Becas de Ciclo Busico). These scholarships w i l l be conditional on promotion and completion o f the full education cycle. The scholarships w i l l be allocated using information on educational gaps between municipalities, and using school government and communities to identify and monitor eligible students. 14 Component 3. School Management in Support of Education Quality (US$21.0 million) 50. This component w i l l advance the lessons learned on school management strategies implemented at the primary school level through the last decade in Guatemala.22 The focus w i l l be on increasing the contributions o f school-based management to the quality o f learning. Also, the supportive and supervisory role o f Education Departmental Offices (DDE, Direcciones Departamentales de Educacidn) w i l l be strengthened by improving their decentralized functions in pedagogical technical assistance, school planning, result evaluation support and supervision, and administrative procedures. Subcomponent 3.a. Consolidation and Strengthening of School-Based Management for Education Quality (US$16.2 million) 51. Sector context and diagnostic summary. Guatemala seeks to support the consolidation and modernization o f school-based management in the c o u n t g 3 . School boards or education committees have increased their decision making in allocation o f school resources; receive financial grants; and implement specific programs (such as school feeding, infrastructure maintenance and scholarships). Based on the New Education Management Model defined by MINEDUC-at the school level-the schools supported by the Project w i l l receive support to: (i)strengthen school and parental organizations in the lower secondary education level, (ii) have available tools and training to plan school improvement activities, and (iii) access an integrated information system that not only collects data but which returns this information for use at the school level. 52. Strategic Objective. Strengthen lower secondary schools supported by the Project to: (i) improve their school organizations (of parents, teachers and principal), (ii) utilize education outcome information provided in school report cards, and (iii) plan simple school-based strategies to improve teaching and learning o f their children. 53. Implementation Strategy. The sub-component w i l l provide technical assistance and school tools and support to: (i) finalize and expand the on-going upgrades to the School Management System; (ii) organize and/or strengthen school boards and education committees; (iii) prepare school improvement plans; and (iv) support school use o f report cards-which provide school level information on school enrollment (per grade, age, gender and ethnicity), efficiency (retention, promotion and completion), and quality (standardized testing). The sub-component w i l l support approximately 1,500 schools, including: (a) 350 Integrated Basic Education Centers (primary schools integrated with a lower secondary education modality), and (b) 400 new Cooperative schools (Institutos por Cooperativa) providing lower secondary education24. 54. The subcomponent w i l l be implemented sequentially: (i) Departmental Education Departments and contracted NGOs w i l l provide organization assistance and training o f school governments (including training on community participation, school planning and fiduciary management); ( iwith motivated and i) organized school committees, the schools w i l l prepare a simple school improvement plan (PE- Proyecto ** The experience o f Guatemala with School-Based Management to date has included: (i) creation o f school and parental committees (Juntas Escolares, COEDUCAS and Cooperatives), (ii) transfer o f financial resources for school operating costs (including payment o f teachers in PRONADE schools), and ( i ) i icollection o f data on school attendance, repetition, dropouts, promotion and completion. 23 School governments or community education committees were initially developed through PRONADE, and more recently institutionalized in all public primary schools through the Juntas Escolares (School Boards). 24 These schools are created through the existing strategic alliance o f the Ministry o f Education, municipalities, and local cooperatives. 15 i ithe Escolar), defining mid-term goals and short-term activities to improve learning; and ( i ) component will provide some seed fmancial resources (School Improvement Grant) as incentives for PE implementation (the Grant will not necessarily fully finance the PE). The formula for this incentive n includes number o f children and rural level o f each school. I average, participating school governments will receive approximately US$680 annually-up to five times during the period o f project implementation-to support financing o f their school improvement plans (which may include a variety o f school-level needs such as minor infrastructure, education materials, local support for teacher training, learning and support across schools, etc.). The Project will support the design o f specific training and operational manuals for this school-based management strategy. Subcomponent 3.b. Consolidation and Strengthening of Departmental Supervision and Technical Assistance to Schools (US$4.8 million) 55. Sector context and diagnostic summary. Since the Peace Accords o f 1996, Guatemala initiated a process to: (i) decentralize i t s education system across central, departmental, school and community i) (including indigenous and rural) management levels; ( iimprove i t s Management Information Systems; and (iii) modernize Human Resources administration. As part o f the decentralization and modernization goals o f the Education Sector, in 1998 Guatemala created the 22 departmental education offices (sub- regional division). These offices have delegated authority in the areas o f school administration, human resources management, and monitoring school construction. T o support school decision making and improved performance, Departmental and District offices need to strengthen their capacity to provide technical assistance and supervision in terms o f pedagogical processes in the classroom and school management. 56. Strategic Objective. Strengthen the capacity o f sub-regional education offices (departmental and district) to improve the quality o f their school technical assistance and supervision in pedagogical and management processes. 57. Implementation Strategy. The subcomponent w i l l benefit the 10 Education Departmental Offices25 directly responsible for the schools targeted by the Project. The strengthening program includes: (i) improved strategies, instruments and knowledge to support the Project-supported pedagogical models (telesecundaria and alternancia) and the school management models (Juntas Escolares, COEDUCAS, and Institutos por Cooperativa26);(ii) improved DDE knowledge and involvement in preparation o f school improvement plans; and (iii) collection o f school education outcomes and utilization o f school report cards. At the national level, the sub-component w i l l support upgrades to the school supervision system. The sub-component will also contribute-with training and materials-to strengthen the decentralized administrative functions at the departmental level (human resources, planning, and fiduciary management). Especially, training, technical assistance and systems will be provided to support the human resources management processes that have already been decentralized at the regional level. 58. I targeted Departments, the internal organizational structure o f DDEs will be reviewed. K e y teams n will receive specific training and technical assistance, especially: (i) Pedagogical Team responsible for the technical assistance, training and standardized testing (including local offices o f the Education Quality, Bilingual and Intercultural Education, and Evaluation units); (ii) Management and Administrative the Team responsible for financial flows and audits o f schools (School Improvement Grants, N e w Students Access Subsidies, and Scholarships); (iii) staff responsible for coordination o f school access and the 25 Although the Project will focus only in 10 DDEs, i t i s expected that the materials and training designs prepared for these departmental offices w i l l contribute to the replication in other not targeted DDEs. 26 School boards, education committees, and community cooperatives. 16 expansion inputs (mainly infrastructure refurbishing and teaching human resources); and (iv) supervision teams which provide direct technical assistance and support at the school level. 59. In line with the Result-Based Management policy o f the Government (MINEDUC, SEGEPLAN, and Ministry o f Finance), DDEs w i l l participate in, and benefit from, the result monitoring and impact evaluation o f the Project -which w i l l be financed from this sub-component. The impact evaluation uses the rich school and education sector data available (supported by previously Bank-financed projects and by other donors), and w i l l monitor improvements in project-targeted schools and w i l l evaluate the impact o f the pedagogical and institutional investments (see section below). 4. Impact Evaluation and Monitoring Strategy 60. Project Design has included strong emphasis on Impact Evaluation to confirm the results o f the key programs supported by the Project, in line with the Result-Based mandates o f MINEDUC, the Government executive and legislative branches, and Guatemala's civil society. The key programs to be evaluated (based on a contra-factual comparison: i.e., what would have happened without these investments) w i l l include: (i) integrated Basic Education Centers (primary and lower secondary the cycles), with support to overage students; (ii) cost-effectiveness analysis among the various secondary a i ithe education modalities supported by the Project (in comparison to traditional modalities); and ( i ) impact o f school management focused on learning quality. 61. In turn, the Monitoring system will track the implementation o f the above mentioned strategies, to guarantee that the program i s implemented as expected. Implementation problems (lack o f inputs, slow implementation o f activities, interventions not reaching beneficiaries, etc.) affect impact evaluations, since the expected impact due to a correctly implemented intervention cannot be assessed. 62. Working in unison, the impact evaluation and monitoring systems can both assess if the financed interventions are implemented as expected (process monitoring), are achieving the expected results (internal validity), and if the key Project interventions can be expanded in other regions o f Guatemala (external validity). h e x #3 presents the Project Results Framework (and its respective indicators and targets) and the summary o f the Project impact evaluation and monitoring design. 17 Summary of Project Design Table 5: Summary of the Sector Issues and Objectives b y Components/Subcomponents with K e y Indicators to Monitor Education Quality and Secondary Education Expansion Issues PDOs Sub-Components Indicators More than 30% o f Improve LA: Integrated Primary 1) For the cohort o f students that are students in Primary Primary and Lower Secondary overage at baseline: School are 2 or more Education Education Centers. Reduced % o f dropout rates years overage Completion Increase 6" grade completion H i g h Repetition and for Overage l.B: Improvement o f Dropout o f Overage Students Primary Education 2) Reduced repetition and dropout rates Students in Primary Teacher Training. in grades 1-6; Education Limits 6" Grade Completion and 3) Improved admission and graduation Expansion o f Lower test scores in 5 Regional Centers for Secondary Education Pre-service Teacher Training. (7-9) Guatemala i s not on track o f EFA Goals Deficient progress in Increase 2.A Secondary Education 1) Increased intake (access) in grade 7- Lower Secondary Access to a Curricular Upgrade. in schools supported by the Project, Education, Grades 7-9 Quality Lower 2.B Lower Secondary (even behind low- Secondary Education Flexible 2) Satisfactory Scores in 9th Grade income neighbors: Education Modalities Improvement Standardized Spanish and Math Tests in Honduras and and Expansion. schools supported by the Project. Nicaragua) 2.C Education Demand Limited secondary Scholarships for L o w 3) National Gross Enrollment rate in education impact on Income and Indigenous lower secondary education, grades 7-9 competitiveness and Students. (52% to 58%); and Gross Enrollment poverty alleviation Rates in Municipalities Supported by the Project from 34% to 63%. Limited School Continue to 3.A Enhance school-based 1) % o f School governments organized Management Impact strengthen the decision making and and trained (as o f originally planned on Education Quality focus o f school community participation. targeted schools). management on education 3.B Improve departmental 2) % o f schools with own planning and quality, with and district technical management o f resources (as o f support o f assistance and supervision originally planned targeted schools). decentralized o f school improvements, departmental and consolidation o f the 3) Compare # o f following processes education M O E decentralization. between targeted and not targeted offices Departmental Education Office (DDEs)s: (a Teaching Staff Payroll and Administrative Supervision; (b) Targeting, allocation and monitoring o f scholarships; (c) and School Management training and technical assistance offered to principals, teachers and school government. 18 5. Lessons learned and reflected in the project design 63. The three key strategic (and interrelated) interventions o f the Project-+) integrated Basic Education Centers (with accelerated programs for overage students), (ii) flexible and pertinent lower secondary education programs, and (iii) school management focused on education quality-were defined through both international and national lessons learned. 64. Internationally, integrated schools, providing grades 1-9 in one center, have shown to have an impact on completion and transition between primary and lower secondary schooling. Accelerated education programs are part o f integrated Basic Education Centers in El Salvador, Colombia and Brazil. All these countries experiences were reviewed (and technical assistance received from El Salvador and Colombia). T o sustain inter-country lessons learned, El Salvador and Guatemala are defining an inter-ministerial agreement, whereby Guatemala can contextualize, edit and use El Salvador's accelerated learning education materials. 65. Flexible and pertinent programs for lower secondary education from Mexico (telesecundaria), Colombia (Tutorial, Semi-distance programs, SAT), Belgium and France (NUFED) have already been implemented in Guatemala. These programs, however, do require methodological strengthening and contextualization to a multicultural and multilingual country; however-on the positive lessons learned- the same programs have been successful in increasing coverage and retention in rural areas. Alliances between the Ministry o f Education o f Guatemala with the respective design agencies o f these programs in Mexico, Colombia and Belgium are in process. 66. Nationally, Guatemala (as other countries in Central America, most notably El Salvador) has had more than a decade o f experience with community-based management o f schools. The lessons learned increased access in rural areas, (ii) are positive, both in terms o f (i) committed participation o f parents and communities in school, and (iii) efficient and transparent use o f financial resources at the school and community levels. The School-Based Management system now requires consolidation o f lessons learned, especially in focusing school management and community participation on the quality o f learning. Complements such as school improvement planning and school report cards (including information on standardized test scores) are internationally successful inputs that w i l l also be applied in Guatemala, with support o f this project. 6. Alternatives considered and reasons for rejection 67. The project design has evolved and has become more concrete through the preparation process and sector and feasibility studies. Three major original alternatives were considered, tested and rejected: (i) focusing the project only at the secondary education level, (ii)investing only on accelerated programs for overage students, and (iii) focusing the decentralization and modernization investments on the design and implementation o f national management procedures and systems. 68. These alternatives were rejected as the feasibility studies and nationalhternational lessons learned yield the following: e Focusing only at the secondary education level was rejected because high dropout o f overage students in primary education constrained 6" grade completion and 7" grade demand. Even if the supply (school places) o f lower secondary education would have been increased, low primary education completion limited expansion. Originally only an accelerated program for overage students in primary education was developed, as an incentive for older students to complete primary education in a psycho-social pertinent environment. However, the program may have yielded only short-term results. When included within a larger 19 strategy o f Integrated Basic Education Centers (grades 1-9 in one school), the Accelerated Education Program provides incentives for longer term and sustainable improvements in primary education. 0 Focusing only in modernizing national systems-in planning, budgeting, human resources, and fiduciary management-was rejected to focus on management quality at the school level first and, then, improve regional and central administration in support o f schools. The finally agreed institutional component focuses o n improving school-based management and education results, and orients all other departmental and central investment to guarantee this objective. C. IMPLEMENTATION 1. Partnership arrangements 69. Project preparation and implementation benefits from the following partnership alliances: (i) extend existing partnerships between community cooperatives, municipalities and MJNEDUC to provide lower secondary education in rural areas; (ii) strategic alliances with not-for-profit education providers o f lower education services to under-served youth; and (iii) strategic harmonization with other international and local donors (USAID, CIDA, JICA, GTZKfW, UNESCO, etc.) in support o f the primary and secondary education reforms. 2. Institutional and implementation arrangements 70. The project institutional and implementation arrangements have a strong focus on Community- Driven Development (CDD) and School-Based Management. All schools targeted by the project w i l l receive support to: (i) strengthen their school government and community participation, (ii) planning their own improvement strategies, and (iii) receive financial grants for direct management and accountability. Central and Departmental offices-as well as NGOs-have more than a decade experience in supporting school-based management. Since a large percentage o f Project education quality and access activities w i l l be directly financed at the school level, required annual audits w i l l include complementary and random audits o f inputs, processes and results o f grants and subsidies managed by schools and communities. 3, Monitoring and evaluation o f outcomes/results 71, The Project supports, strengthens and utilizes monitoring and impact evaluation to evidence outcomes and results. Annex 3 o f this P A D includes the monitoring and impact evaluation design for the Project interventions, in line with existing MINEDUC's capacity and information systems. 4. Sustainability 72. The project rests on four key pillars to guarantee its sustainability: (i) strategically, i t directly supports key sector issues; (ii) socially and politically, project preparation has benefited from consultations in both the legislative and executive branches o f Government, and stakeholders at the central, departmental, school and community levels; (iii) Project does not introduce new programs the into the Guatemalan Education Sector, but strengthens and optimizes existing rural lower secondary education programs and school management modalities; and (iv) financially i t rests on alternative mechanisms o f education financing, including Central Government, Municipality, Cooperatives and NGO efforts. 5. Critical risks and possible controversial aspects 73. The present Latin American political environment shows evidence o f an ideological polarization both in society and in political groupings. The focus o n N G O participation, school based management, and 20 targeting (by region, ethnicity, or income levels) tend t o b e argued against or defended by different interest groups. Transparency, open dialogue, and objective evidence o f project results are strategies t o m i n i m i z e controversial issues and t o reach consensus o n the positive aspects o f Community-Driven Development and decentralized approaches. 74. T h e table b e l o w presents the identified political and implementation risks and their mitigation measures: Political Risks Rating Mitigation Measures Post-secondary education While, the pre-service teacher training component provides resources to training o f students may be complete the needed feasibility strategies and operational proposals for a opposed by prospect teachers post-secondary reform, it w i l l support structural changes only if there i s and Teacher Unions that feel High consensus and the risks are manageable. The project commitment i s on additional requirements are improving pre-service teacher training independent o f the education level placed for this profession. agreed. School-Based management i s The Information, Communication and Education (IEC) strategies o f criticized by some groups as a MINEDUC presenting live "samples" o f the benefit o f school-based "privatization" scheme and l o w management and participation. IEC w i l l continue to be supported by the public responsibility for Moderate Project reiterating that the strategy actually supports increased public financing and management o f commitment and finances at the school level, and wider democratization schools. through participation o f parents (mostly from rural and l o w income communities). Government transitions are MINEDUC and the Bank are carrying and w i l l continue to carry difficult and require regaining consultations with Congress, Political Parties, and Civil Society support for on-going Projects. representatives to gain support for this Project. The Project addresses The period o f loan ratification concerns and suggestions expressed by Congress-including the focus on by Congress w i l l coincide with High secondary education, cooperative schools, and competitiveness. an electoral year, and may take longer than the standard 90 days after Board approval. Implementation Risks Mitigation Measures Reduce errors o f inclusion (of Indeed, the Education Demand sub-component (subcomponent C.2) non-eligible students) and identified the need for strengthening the targeting, selection and beneficiary exclusion (of eligible students) Moderate mechanisms; thus, resources are provided for such strengthening. A from the scholarship programs. programmatic condition for scholarships w i l l guarantee that such systems are in place and adequately functioning before financing a scholarship. Guarantee that expansion i s in Guatemala has had more than a decade o f experience in school-based pace with capacity for school financial management in PRONADE (community-managed schools). management o f School Access MINEDUC i s integrating the financial, monitoring, information and Subsidies. supervision systems existing in PRONADE within a general school- management department-benefiting the project-targeted schools. In addition to the annual financial audit, a special audit w i l l be requested (on a random sample o f schools) to evaluate the financial management processes and procedures for all funds transferred at the school level. Financial Flows from The Project i s in line with the decentralized financial and procurement MINEDUC to Schools need to systems in the education sector. However, technical assistance and be monitored to guarantee supervision o f financial flows w i l l be financed and carried out by the effective and efficient processes Project. DDE participation in financial transfers to schools (improvement and procedures. grants, subsidies and scholarships) does not mean "cash money transfers" through each level (from the center, to the department, to the school); rather DDEs only manage budget allocation, plan regional selection and identification o f beneficiaries, and request electronic account transfers from central accounts to school accounts. Flow-of-fund arrangements and strengthening/risk mitigating measures can be found in Annex 7. 21 Financial Management System The Project has defined a FM action plan and project-supported that supports decentralized strengthening measures for the decentralizedprograms, as well as a special programs i s adequate to ensure external audit (See Annex 7). Moderate project funds are used economically and efficiently for the intended purposes Institutionalization o f Continue on-going technical assistance to the Ministry to support in the procurement planning and development and implementation o f a procurement planning, monitoring implementation in MINEDUC, Moderate and evaluation system; including Procedure Manuals. including standard procurement Strengthen internal control systems, records system and a training program policies and procedures. (See Annex 8). The overall risk for the Project is moderate, given the mitigation strategies. 75. As a Project that attempts to reform institutional systems, a l l possible risks have been identified in detail. However, extreme care has been placed to manage a l l the risks, especially those inherent to decentralized, community driven development strategies. 6. Loan conditions and covenants 76. There are n o Project specific conditions o f Board presentation or effectiveness. D. APPRAISAL SUMMARY 1. Economic and financial analysis 77. The cost-benefit analysis has yielded an Investment Return Rate o f 31%, remaining high through different sensitivity analysis. Financially the Project investments and recurrent costs were considered sustainable (See Annex 9 for details). 2. Technical 78. The sector analysis provided key information on: (i) Overage students, (ii) efficiency indicators for primary and lower secondary schooling, (iii) education needs and pertinent strategies for Indigenous Populations, and (iv) the education outcomes o f l o w income groups. The preparation team developed an Index o f Education Efficiency (IEE), which has allowed concrete criteria for targeting, monitoring and costing interventions across and within the differing regions o f Guatemala. Project preparation has benefited from a series o f existing and on-going studies (supported by the Bank, other donors, and local and international specialists): Overage programs, Teacher Development, Alternative Lower Secondary Education Programs, Curricular Development, Technical Education Flexible Programs, Institutional Modernization, and School-Based Management o f Education Management (see P A D bibliography for a sample o f studies prepared and consulted). 3. Fiduciary 79. A decentralized Bank Fiduciary Team in Guatemala provided close technical assistance and reviews o f MINEDUC's fiduciary capacity for the Project. Albeit some identified risks (and respective strengthening plan), capacity i s satisfactory for both financial and procurement management. MINEDUC has integrated Project fiduciary management within the Administrative Department o f the MINEDUC (rather than being an outside and independent unit). This integration will guarantee cross-training o f M I N E D U C fiduciary personnel, as well as contribute to the gradual plan o f strengthening fiduciary country systems in Guatemala. Within the Administrative Department a team specialized in lBRD 22 fiduciary norms -and with competence and experience acceptable to the Bank- w i l l support all processes specific to the loan. 4. Social 80. The Social Assessment and Indigenous Development Plan preparation was completed and contributed to the specific strategies to reach low income, rural and indigenous populations (see Annex 10). The 10 project-targeted regions-identified based on an index o f education efficiency-have up to 70% o f indigenous population. Indigenous specific-earmarked activities are detailed in Annex 10. In addition to earmarked investments, Indigenous students w i l l also benefit from other general Project investments. 5. Environment C Category 81. N o new education infrastructure w i l l be financed by the Project-given the flexible models for lower secondary education and the alliances with NGOs and other non-profit service providers. Nonetheless- although no environmental feasibility studies were required-the standard IBRD environmental safeguard guidelines were presented and discussed with MINEDUC. 6. Safeguard policies 82. The Indigenous People safeguards have been triggered. Environmental Assessment i s not triggered since school construction w i l l not be financed by the Project. Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OPBP 4.0 1) [I [X 1 Natural Habitats (OPBP 4.04) [I [ XI Pest Management (OP 4.09) [I [X 1 Cultural Property (OPN 11-03, being revised as OP 4.1 1) [I [ XI Involuntary Resettlement (OPBP 4.12) [I [ XI Indigenous Peoples (OPBP 4.10) [ XI [I Forests (OPBP 4.36) [I [X 1 Safety o f Dams (OPBP 4.37) [I [X 1 Projects in Disputed Areas (OPBP 7.60)* [I [X 1 Projects on International Waterways (OPBP 7.50) [I [ XI 7. Policy Exceptions and Readiness 83. N o exceptions requested. ' By supporting the proposedproject, the Bank does not intend to prejudice thefinal determination of the parties' claims on the disputed areas 23 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 1: Country and Sector o r Program Background 1. Country and sector issues General Sector Diagnosis The equitable development o f the human capital o f i t s 12.6 million inhabitants i s key to economic growth and poverty reduction in Guatemala. The country's growth strategies-a free trade agreement with the US, regional integration proposals, and national and international competitiveness schemes-aim at increasing growth while reducing the country's broad inequalities. Guatemala currently has a Gini o f 56, ~ o e f f i c i e n t ~ ~ which implies that the poorest quintile o f the population earns 2.4% o f national income, while the highest quintile earns 70%. In this context o f high inequality, education i s key to increasing equality, reducing poverty, and developing competencies and knowledge conducive to economic growth. In the last decade, significant advances were made in the primary education sector. Since the Peace Accords o f 1996, all Government administrations have supported the expansion o f primary school coverage, intercultural and bilingual education, and the modernization and decentralization o f education management. Public education expenditures increased at a pace o f 9% annually between 1996 to 2004, and the share o f public educational expenditures in GDP increased from 1.6% in 1996 to 2.7% in 2005. Achievements to date include: (i) significant primary education coverage (93.5% net28and 113% gross2' enrollment rates in 2005); (ii) standards-based curricular reforms in primary education, and national learning assessments in 3d, 6" and 9" grades; (iii) bilingual education programs for grades 1-3; (iv) focused support for rural primary schools through multi-grade schooling in isolated and dispersed communities; and (v) decentralized education management, with increased decision making at the school level (most primary schools in Guatemala have some form o f school government and have received public funds for local investments). Within the Guatemala's growth agenda, expanding quality secondary education increases the country's competitiveness and reduces disparities in household incomes. For example, a recent study 30 showed that an average Guatemalan needs at least 9 years o f education to receive a salary above the poverty line. Figure 1.1 illustrates this correlation between average salaries and years o f schooling, for different levels o f experience. 27 The Gini coefficient is a measure o f inequality; often used to measure income inequality. Here i t is expressed as an Index--a number between 0 and 1 multiplied by 100, where 0 corresponds to perfect equality (ie. everyone has the same income) and 1 corresponds to perfect inequality ( i e . one person has a l l the income, while everyone else has zero income). '* Defined as: Number o f uuuils age 7-12 enrolled in 1-6" grade in January o f 2005 Number o f children age 7-12 (as estimated by INE) for 2005 29 Defined as: Number o f uuuils o f a l l ages enrolled in 1-6" grade in January o f 2005 Number o f children age 7-12 (as estimated by INE) for 2005 30 Emilio Porta, Academy for Education Development, AED; 2005. 24 Figure 1.1: Years of Schooling and Salary Correlation Salary per hour (natural logarithm) 4.0 1 o o ! I I I I l i l , , , , , , , , , , , , , , , , 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Years of Schooling +1 year (Exp) +5 years (Exp) -o- 10 years (Exp) - - Poverty Line I W h i l e the last decade has seen significant improvements in primary education coverage, progress in secondary education has not followed at the same pace. Guatemala's education indicators for youth are quite alarming. In 2005, net3' and enrollment rates in lower secondary (Grades 7 through 9) stood at 33 and 55% respectively. (Cf. Table 1.1) An average 20-year old in Guatemala has only 4.3 years o f education. Nationwide, 1.2 million youth between the ages o f 13 and 18 are out-of-school. In addition, the gap in educational achievement between the indigenous and non-indigenous youth, and between rural and urban youth i s significant: for non-indigenous populations, the GER in lower secondary was 74.3%, while for indigenous populations, i t was only 26.2%. This large gap reflects, in part, the low supply o f lower secondary education in rural areas, where only 22% i s rural. 3' Defined as: Number o f pupils age 13- 14- 15 enrolled in 7-8-9" grade in January 2005 Number o f youth age 13-14-15 (as estimated by INE) for year 2005 32 Defined as: Number of pupils o f all ages in 7-8-9" grade in January o f 2005 Number o f youth age 13-14-15 (as estimated by INE) for year 2005 25 Table 1.1: Primary and Lower Secondary Education Enrollment Rates in 2005 2,345,301 1,228,792 1,116,509 838,995 1,506,306 113.14% 117.37% 108.82% 102.59% 120.01% 999 987 938 734 8 Gross Enrollment Rate 55.35% 59.35% 51.33% 26.23% 74.33% Source: MINEDUC Enrollment Census 2005 For the relative few students that continue their studies after primary education, learning in lower secondary education i s low. In 2005, a standardized test was applied in a significant proportion o f 9" grade classes. The data showed that the learning level i s very deficient overall, and especially in rural secondary education models. Thus, expansion o f secondary education must initiate with improving the pedagogical quality o f existing programs. L o w efficiency in primary education as a bottleneck for expanding secondary Guatemala seeks to improve i t s Gross Enrollment Rate in lower secondary education from 55 to 71% by 2015. However, the country has defined that increased school places in the secondary level alone will not achieve this goal. For example, in 2004, the number o f students that enrolled in 7" grade (199,000)33 was larger than the number o f students who graduated from 6" grade in 2003 (192,300). While in 2005 the gross enrollment rate i s above 113% and even the net enrollment rate i s above 90%, high rates o f repetition and dropout mean that relatively few children end up with complete primary education. The net completion rate for 6" grade34was only 22%, and the gross rate (counting overage students) was 72.3% (2005 figure). (Cf. Table 1.2) Thus, it appears that l o w completion from 6'h grade i s as much a limiting factor to secondary education demand, as i s the supply o f lower secondary spaces. 33 Includes 6th grade graduates who transition to lower secondary education after some time outside o f the education system. 34Definedas: Number o f Duuils age 12 enrolled in 6* made in Januarv o f 2004 Number o f children age 12 (as estimated by ME) for 2004 26 Table 1.2: Primary and Secondary Completion Rates, and Grade 6 net enrollment rate Source: Calculations based on M I N E D U C data. Notes: Enrollment in September i s end-of-year enrollment. Grade 6 Net Enrollment Rate i s calculated as Nr o f 12 year old students in grade 6/ nr o f 12 year olds. Grade 6 N e t Enrollment Rate i s equivalent to Primary net completion rate. The repetition rates are especially high in the early years o f primary; first grade seems to be a major stumbling block with 25% repeating t h i s grade in 2005. While total dropout rates3' are initially below 10% a year, over 45% o f children enrolled in Grade 5 in 2005 were not longer enrolled in January 2006. This i s the reason why, by the time a cohort reaches 12 years o f age, only 22 out o f 100 children complete o n time primary education (cf. Figure 1.2). Figure 1.2: Repetition and total dropout rates, Grades 1- 9,2004 cohort 50.0% 2 45.0% c 40.0% 8 35.0% 0 8 30.0% % of children who had dropped out by E 25.0% January 2005 E % of children repeating the S a m grade in r 20.0% 15.0% :10.0% c 0 $ 5.0% 0.0% 1 2 3 4 5 6 7 8 9 Grade cohort in 2004 I Source: Computed with MINEDUC data from 2004 and 2005 High repetition and dropout rates affect the education system loses in several ways: First, the system fails to graduate students even though they have invested time and effort in school; second, the system uses limited financial resources to provide the same level o f education repeated times to students who should have graduated and be enrolled at secondary education level. In addition, with increased repetition, students reach the subsequent grade with an age lag and with increased opportunity costs o f learning, 35Note that this i s different from the dropout rates reported by the Ministry o f Education, which consist o f intra-year dropouts, i.e. the difference in enrollments between September and January o f a school year, divided b y the January enrollment. What i s reported here i s the total dropout rate, i.e. (new enrollments grade g+l in Jan.2005-total enrollment grade g in Jan.2004)hotal enrollment grade g in Jan.2004 27 which contribute to dropping out without completing primary education. Dropping out o f school, especially affect children from l o w income families (Cf. Figure 1.3). Figure 1.3: Survivor Function Plot by Income Quintiles GUATEMALA: SURVIVOR FUNCTION PLOT by Quintiles ______ 08 Q 07 ' ; 05 06 04 v: 03 02 0.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 ' we 5 quantiles of inghp -. - 1 2 3 4 5 Source: ENCOVI 2000. Finally, the large difference between Gross and Net Enrollment Rates in each primary education grade (Figure A.2) hint at a large access capacity and l o w efficiency in this education level. This may confirm that Guatemala has been successful in providing universal coverage in primary education, but i t needs to focus now o n guaranteeing universal primary education completion (grade 6 ) and transition to lower secondary education (grades 7-9). The official age for first grade entry in Guatemala i s 7 years. In reality, only 74% o f 7 year olds were actually enrolled in first grade in 2005 (Net Enrollment Rate). O f 8 year-olds, only 44% are enrolled in second grade. This suggests that approximately 30% o f children do not progress immediately to grade 2 after going through grade 1 (in other words, they dropout or repeat grade 1). The problem gets worse in higher grades: By the time a cohort reaches 12 years o f age, only 22 out o f 100 children are in age- appropriate 6* grade (cf. Figure 1.4). 28 Figure 1.4: Gross and Net Enrollment Rates by Grade in 2004, National Level _- - -- . -- - _. - - - .- l i _ " _ __ - . " . I 0 Grade GER 1 2 3 3 5 6 7 8 9 Grade - ~ Source: Computed with MINEDUC data The above stated internal efficiency problems result in a large overage phenomenon in primary schools. 43% had the appropriate age; (ii) For example, in 2004, o f each 100 children enrolled in first grade, (i) i i25% were two or more years overage; and (iv) 8% were younger than 7 24% were 1 year overage; ( i ) years (under-age). This percentage ranks continue-more or less unchanged-during the overall basic education cycle (primary and lower secondary). Figure 1.5 illustrates the distribution o f ages in grades 2 through 9. Figure 1.5: Age distribution in Grades 1-9 in 2004 1 year over-age I 0% 1 2 3 4 5 6 7 8 9 Grade Source: Computed with MINEDUC data 29 Overage children in the primary education cycle W h i l e it i s not possible to compute exactly the specific dropout rates for overage children, a number of elements suggest that being overage in i t puts children at high risk o f dropping out o f school permanently. For example, the 2005 Social Assessment identifies that psychological elements linked to being overage in primary schools are a main reason for dropping out. In addition, parents and teachers see less o f a priority in keeping older children in school. W h i l e i t i s not possible to compute exactly the specific dropout rates for overage children, a number o f elements suggest that being overage in i t s e l f puts children at high risk o f dropping out o f school permanently. For example, the 2005 Social Assessment identifies that the psychological problems linked to being overage are a main reason for dropping out. In addition, parents and teachers see less o f a priority in keeping older children in school (Table 1.3). Table 1.3: Reasons for Dropping Out of School: Results f r o m the 2005 Social Assessment Stakeholder Interviewed Reasons Students e Has to Work Ashamed o f being overage for their grade Got married Not interestedibored Teachers don't know the languagekulture Parents Student not interested Not enough money (poverty) Cannot force older child to keep studying Teachers Migration o f parents (permanently or for work reasons) Early Marriage e Many did not see dropout o f older children as a problem As illustrated in Figure 1.6, school enrollment rates drop pronouncedly between the ages o f 13 andl6. Paradoxically, most o f the dropouts do not happen in secondary school but in primary school. Because o f high repetition rates, nearly 40% o f 13 to 15 year olds in 2005 were s t i l l in primary school. (Cf. Figure 1.7) Figure 1.7 illustrates that in 2005, o f 13 to 15 years old, 7% had dropped out before finishing primary school, and 12% were unable to read or write. 30 Figure 1.6: School Age Population G a p 400,000 350,000 300,000 250,000 Enrollment in 2004 200,000 150,000 100,000 50,000 0 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Age in 2004 Source: Francisco Esquivel, computed with Ministry o f Education data Figure 1.7: Situation of Population between 13 and 15 years old Non Explain Illiterate Population 6" grade graduates in 2003 and they didn't get enrolled in 7" grade in 2004 Upper Secondary Dropout 5 36% Secondary Dropout 6 17% Pnmary Dropout 7 01% Pnmary Population 355,195 Lower Secondary Education Population Upper secondary Population 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Population Source: Francisco Esquivel, computed with Ministry of Education data Catering to overage students in the primary cycle In view o f the bottlenecks in primary school, increasing access to lower secondary education goes beyond increasing the number of school places andor improving the quality o f the program at that level. There i s also an urgent need to cater for the needs of the current generation o f overage youth in primary schools, and to define a medium-term strategy to prevent the overage phenomenon to occur in upcoming cohorts o f children. To t h i s end, Guatemala has developed a medium-term strategy to increase primary school completion, by reducing (i) repetition, and (iii) late entry, (ii) temporary dropout from school-which 31 contribute to students being overage and dropping out before finalizing 6" grade. In the short-term, a special program for overage youth in primary schools will tend to this population's specific learning and psycho-social needs, and motivate them to complete 6" grade and continue o n to lower secondary education. International comparison Guatemala's performance i s under international standards. M o r e surprisingly, Guatemala has fallen behind low-income neighbors such as Honduras and Nicaragua, who have increased their Primary Completion Rates and Secondary Education Gross Enrollment Rates. Guatemala i s not on-track to meet the Education for All (EFA) goals, which include universal completion o f 6th grade, and completion o f the full basic education cycle till 9" grade. Table 1.4: Primary Education Completion Rates (PCR) and Secondary Education Gross Enrollment Rates (GER) I n Central America and with Countries of Similar Per Capita Income in South America (2003) Central America PCR Secondary Education (grades 7-12) GER Costa Rica 89 66 El Salvador 75 61 Nicaragua 69 59 Honduras 69 48 Guatemala 62 33 Countries with Similar p/c Income Peru 97 81 Ecuador 96 57 Colombia 85 70 Source: E. Di Gropello, Central America Education Strategy Paper. The Supply of Lower Secondary Education While the current supply o f lower secondary exceeds the number o f primary school graduates, there i s s t i l l an urgent need to look into the supply o f lower secondary. First, there i s a backlog o f primary school graduates entering lower secondary, which de facto increases demand for lower secondary. At the same time, lower secondary at this time i s concentrated in urban areas, and rural and indigenous areas are underserved. In addition, lower secondary modalities catering to rural and indigenous areas tend to be o f lesser quality and need to be strengthened. Although lower secondary education sector i s relatively small, Guatemala has benefited from a broad spectrum o f programs already implemented in the country-both flexible modalities (in terms o f calendar, tutorial, semi-distance, and center-community combinations) and traditional center-based modalities. Tables 1.6 and 1.7 l i s t and give some background o n traditional and flexible lower secondary education modalities that currently exist in the country. O f the flexible lower secondary education program, the "lnstitutos por Cooperativa" reach the largest number o f students, which are more than 125,000. I t i s important to note that the term "Cooperative" refers to the management and financing model, which i s a tripartite collaboration between MINEDUC, the Municipality and a local cooperative o f teachers. These Cooperative Institutes vary regarding their pedagogical approaches. Telesecundaria i s a pedagogical approach used in flexible modalities, which 32 reaches almost 30,000 students in more than 400 schools. NUFED i s the most flexible program: i t combines tutorials, center and community based learning, and vocational and technical orientation and training with community support. NUFED centers provide lower secondary education in highly dispersed areas, with a l o w number o f students: there are 550 centers attending 17,000 students, which mean that centers average 30 students. Table 1.8 presents the total number o f schools and student in each o f the key modalities. Where available, the indicators are by the Index o f Educational Efficiency (IEE). Table 1.5: Flexible Non-Conventional Lower Secondary Education Modalities Modality Description Tele- Designed and developed in Mexico, this modality focuses o n general academic education and secundaria preparation for upper secondary. There are 448 schools that apply this methodology in Guatemala, with 975 certified teachers and 30,000 students, across all 22 departments o f the country. Authorization i s required from Mexico to contextualize and or produce new editions o f the videos and materials. The Ministry o f Education o f Guatemala has negotiated an agreement with Mexico to make any needed changes to the program, based o n Guatemala's curricular needs. SAT Designed and developed by a foundation in Colombia, i t s methodological base includes (Sistema de alternative programs, school-community activities, and proj ect-based integrated subject Aprendizaj e materials (rather than single subjecthingle textbook strategies). S A T has expanded Tutorial) internationally through a Consortium o f NGOs and Foundations which follow a strict standard o f quality, while s t i l l allowing for specific context-base adaptations. In Guatemala, some o f the S A T programs include cultural elements such a Mayan Cosmo-Vision, Mayan Math, and Indigenous Leadership and Community Development. Guides and other written material s t i l l need to be edited to the culture, geography, history, colloquial language and other local idiosyncrasies o f Guatemala. NUFED This i s a Community-Based Modality which was developed in France ("Enseignement en Alternance) and has a strong component o f School-Community links. Initially, the program started in 50 centers, but in the last two years more than 500 new centers were opened. The modality i s under the responsibility o f the Non-Formal Education Department o f the Ministry. Procedures t o open a center are streamlined and involve relatively little bureaucracy, which partly explains the popularity o f the model in recent years. Nonetheless, t h i s modality would require important investments before i t s curricular and pedagogical pertinence and quality could be assured. There i s a need within the modality to operationalize teacher and student materials, course sequence, teacher preparation and training, and learning evaluations. Instituto Por The Cooperative-Based modality i s mostly a management model, rather than a pedagogical Cooperativa modality. The modality i s based on tri-partite collaboration between a local cooperative consisting mostly o f parents and teachers, the local municipality and the Ministry o f Education. The Cooperative may request financial resources from the municipality and the Ministry o f Education to open a lower secondary education school. The pedagogical modality in Cooperative Institutes varies. However, there i s a general need for systematizing and setting criteria for accredited curricular programs, pertinent pedagogical modalities and materials, and teacher training and qualifications. Over 30% o f rural secondary education programs are currently Cooperative-based. IGER This i s a Radio-Based program that supports self-learning and accreditation. I t covers mostly primary education, but also includes radio-based courses for lower secondary. Students can opt to take an accreditation test for credit o f the lower secondary education courses offered. The program requires evaluation and integration into a standard system o f flexible education and accreditation. 33 ACEM A C E M stands for Asociacidn de las Escuelas Mayas de Educacidn Media or Mayan Association for Secondary Education. The modality proposes a culturally pertinent methodology based on Mayan Cosmo-vision, values and cognitive and culture-linguistic elements. The education program i s semester-based and-in addition to the standard subject areas-it includes studies on environment, citizenship, community living, and Mayan culture history. Seventy-one centers include teacher training programs. The program was supported initially by PEMBI, a GtZ-financed program. The linguistic communities covered by the A C E M are: Tzutujiil, Q'eqchi, Achi, Awakateko, Mam, Popti, Q'anjob'al, Poqomam and K'iche'. Table 1.6: Traditional and Center-Based Lower Secondary Education Modalities Modality Description Instituto Nacional de The INEB i s the traditional modality for lower secondary education. It i s Educacidn Basica based on individual subjects taught by individual teachers, with teachers (MB) being paid on a subject-taught basis. The INEB's human resource and infrastructure imply that it i s a model which i s appropriate only to urban centers. However, these schools w i l l also benefit from curricular reforms proposed for secondary education. Institutos These academic-vocational institutes were created in 1973 as part o f the Experimentales de Proyecto de Extensidn y Mejoramiento de la Educacibn Media, P E M E M Educacidn BBsica con (Secondary Education Extension and Improvement Project). There are 43 Orientacidn PEMEM centers across the country, which use a very competitive process to Ocupacional select students, given that demand for places i s much larger than supply. The (PEMEM) PEMEM need to be put in line with modem and international recognized strategies for technical education, which require a strong academic backbone and flexible, pertinent, labor market oriented s k i l l s training for students. The M O E in Guatemala has received support from Chile in defining a path for methodological reform, to improve pertinence and sustainability o f the PEMEM schools. 34 Table 1.7: Number of and Enrollment in Secondary Education Centers, b y Index o f Educational Efficiency (IEE) of the Micro-region where the schools are located (l=Low, 2=Intermediate, 3=High) Flexible Modalities 207,200 Instituto por Cooperativa 297 283 185 765 46,562 46,048 33,588 126,200 Telesecundaria 143 164 124 431 10,199 11,164 7,948 36,700 NUFED n.a n.a n.a 550 n.a n.a n.a 17,000 IGER 3 8 11 22 5,984 7,470 13,822 27,300 Traditional Modalities 292,500 INEB 49 67 153 269 14,377 22,665 63,490 100,500 PRIVADO 265 427 1,463 2,155 24,275 35,276 128,789 189,000 PEMEM n.a n.a n.a 47 n.a n.a n.a 3,000 Total Enrollment* 784 966 1,939 3,689 102,718 123,731 248,136 499,700 * Total enrollment includes a limited number o f municipality-funded schools, whose numbers are not disaggregated in the table. Quality of Learning in Lower Secondary Education Learning in lower secondary education i s l o w in Guatemala. I 2005, a standardized test was applied in a n significant proportion o f 9* grade classes. Tables 1.8 and 1.9 compare the level o f competency in Spanish and M a t h on the test across three flexible modalities (IGER, NUFED and Telesecundaria) and PEMEM institutes-which are urban, have a strong cadre o f teachers, and select a limited number o f students through entry exams. I t i s important to note that the comparison in the tables below i s not adjusted for socio-economic factors associated with learning, such as poverty level, single-headed households, rural location, etc. However, the data do show the absolute level o f learning deficiencies in the rural/flexible models, and underline the importance o f the Project's strategic choice to strengthen the flexible lower secondary education modalities before expanding them. Table 1.8: Competency Levels in gthGrade Spanish Standardized Test Scores (2005). I n percentage. Level O f Competency Percentage o f Students within the given competency level UrbadTraditional RuraVFlexible Modalities All Modalities modalities INEB PEMEM TELESEC NUFED IGER N o Competence n.a 7.1 37.3 44.5 33.5 24.4 Limited Competence n.a 23.2 35 36.8 35.7 30.0 Basic Competence n.a 48 24.9 16.8 27.9 34.7 Advanced n.a 21.7 2.7 1.8 2.9 10.8 Competence 35 Table 1.9: Competency Levels in gthGrade Mathematics Standardized Test Scores (2005). Urbanraditional RuraWlexible Modalities All Modalities modalities INEB PEMEM TELESEC NUFED IGER N o Competence n.a 14 37.8 45.8 42.1 27.9 Limited Competence n.a 26.4 34.9 37.6 39.9 31.5 Basic Competence n.a 43.6 24.6 15.8 16.6 32.3 Advanced n.a 16.1 2.6 0.8 1.3 8.3 ComDetence Teacher Training The inter-dependence between Primary and Secondary Education access, efficiency and quality i s also related to the quality o f teachers. In Guatemala, teachers are formed at the secondary education level only, in grades 10 through 12. This secondary education program for primary education teachers has not been updated in 22 years. In-service testing o f teachers in subject-area knowledge has shown serious issues o f low quality. Primary education teachers leave secondary education ill-prepared to teach new cohorts o f primary education students. Moreover, given the limited amount o f opportunities in technical secondary education tracks, the Teacher Training track i s over-demanded by students who eye employment after secondary school. Strikingly, the primary education sector can only absorb 5% o f newly graduated teachers each year. Nonetheless, the teacher training track currently has no selection or vocational testing mechanisms, to help i t recruit and train the best candidates for the teaching profession. The Country's Objectives The Guatemalan objective i s to increase the competitiveness and socio-economic equity o f i t s population. In the education sector, the goals are (i) reach Primary Completion Rates (PCR) o f 85%; and to to increase lower secondary GER from 55% to 71%36. These objectives are consistent with Guatemala's high private returns on additional years o f education, and high returns on completion o f primary and lower secondary. The Country's Strategies Primary (6" grade) completion and 7" to 9" grade enrollment must be supported in an integrated manner. Secondary Education access i s dependent on improved efficiency and completion in, and transition from, Primary Education. Therefore, the strategic choice o f the Government o f Guatemala i s to start reforms at the secondary education level, but to continue to support primary education, complementing long-term general quality improvements (such as improving the quality o f pre-school and the first cycle, grades 1"- 3rd, and support teacher professional development) with short-term efficiency solutions (such as accelerated learning and promotion for overage students3'). For the Primary Education cycle, the country has already developed integrated curricula for grades 1-9, so as to guarantee appropriate standards, methodologies and evaluations. I t w i l l also pilot an integrated basic education cycle (i.e. an integration o f primary and lower secondary cycles) in the same school, and evaluate i t s impact on completion and 36Based on Projections by C I E N and World Bank, as part o f analysis for Public Expenditure Review o f Guatemala. 37Experiences in El Salvador, Colombia and Brazil on primary education reforms with interventions for overage students have been considered and contextualized for the Guatemalan sector needs. 36 transition rates. I Secondary Education, the choice i s to guarantee a full Basic Education Cycle (grades n 1-6), while improving quality o f and access to lower secondary education (grades 7-9), under international Education For All (EFA) standards. The Government public programs will target l o w income, indigenous and rural populations. T o guarantee sustainability and take advantage o f existing Government and donor efforts in lower the sector, the strategic choice i s to improve, and then to expand, existing lower secondary education programs, with a special emphasis o n the programs which are pertinent for rural, indigenous and working youth. Targeting Strategy Guatemala i s a multicultural and multilingual country with diverse educational needs. While the needs vary, the solutions are not uniform either. As shown above, educational gaps and inequities at both the primary and the secondary level are substantial. The aim o f the Project i s to invest in Secondary Education (and related Primary Education interventions) where the needs are greatest. This implies guaranteeing equitable education improvements for l o w income groups, for the rural sector and for indigenous communities. Given the limited resources available, it i s a strategic choice o f the Government to initiate investments using a clear and equitable criterion. Three criteria will be used to prioritize Project investments and other contextualized support: (i) demand-supply imbalances; (ii) traditional exclusion; and (iii) in educational efficiency, as represented by Index o f Educational Efficiency (IEE). lags Guatemala i s divided in 8 regions, which are represented in Figure 1.8. Region 1 consists o f the urban capital and surrounding area. Region 2 i s a traditionally monolingual Mayan region, with many hard-to- access areas. Regions 3 and 4 are traditionally non-indigenous areas. Region 5 i s located close to the capital and has both indigenous and non-indigenous populations. Regions 6 and 7 are the traditional Mayan indigenous regions. They count more than 17 local languages and present urban, semi-urban and rural contexts. Region 7 tends to have more dispersed and harder-to-reach populations than Region 6. Region 8 i s the most northern, least populated and most dispersed region o f Guatemala. 37 Table 1.10 Guatemalan Regions R e d o n Demrtments I Characteristics Ladino community, very high 1 population density (1,195 I Alta Verapaz I Q'eqchi indigenous Figure 1.8 2 community, low population Baja Verapaz ~ ~~~ density (84 inh/km2) Chiquimula Q'eqchi and Ladino El Progreso 3 communities, low population Izabal density (60 inh/km2) Zacapa Kiche and M a m indigenous communities, medium population density (222 I Huehuetenango KichC and M a m indigenous 7 communities, low population Quiche density (95 inh/km2) Q'eqchi and Ladino communities, very low 8 PetCn population density (10 inh/km2) 38 Net Enrollment Rates across the regions. Tables 1.1 1 reports the Net Enrollment Rate (NER) by grade across the 8 Regions o f Guatemala. While National Net Enrollment Rates i s l o w (1 8%), there are stark regional differences: Region 1 (the Capital) has a net enrollment rate o f 39%, while regions 2, 6, 7 and 8 are all below 20%. The lowest NER in 7" Grade, 7%, can be found in Region 2, which as mentioned before, i s a highly monolingual and hard-to-reach Mayan region. Table 1.11: Net Enrollment Rate (NER), b y Region and Grade, 2004. I n percentage. Region Grade 1 2 3 4 5 6 7 8 Overall Grade 1 80 60 75 90 73 75 65 89 74 Grade 2 61 27 38 48 47 44 33 40 44 Grade 3 54 18 29 36 38 33 22 29 34 Grade 4 49 15 27 32 34 26 18 24 30 Grade 5 45 12 23 26 29 22 15 18 25 Grade 6 40 10 20 23 25 18 12 15 22 Grade 7 39 7 16 16 21 15 8 11 18 Grade 8 34 5 13 13 17 12 6 10 15 Grade 9 30 5 12 12 15 11 6 9 14 Source: Francisco Esquivel, MINEDUC data Net Enrollment Rates across population groups: The regional patterns o f the Net Enrollment Rate mirror the patterns by population group. All four major indigenous groups have Net Enrollment Rates which are substantially below those for the Ladino (non-indigenous) population. The lower secondary enrollment rates are especially l o w among the ethnic population. Net Enrollment in the Q'eqchi population i s close to zero. Table 1.12: Net Enrollment Rate (NER), by Population Group, 2004. I n percentage. Population Group Grade Ladino Kich6 Mam Kaqchikel Qeqchi Grade 1 90 50 45 52 65 Grade 2 56 27 23 34 24 Grade 3 49 24 17 29 16 Grade 4 39 16 12 20 10 Grade 5 38 15 10 20 8 Grade 6 27 9 5 13 5 Grade 7 27 9 4 12 2 Grade 8 23 6 3 9 2 Grade 9 22 5 3 8 1 Source: Francisco Esquivel, MINEDUC data The overage problem b y region. Table 1.13 presents the percentage o f students who are at least t w o years overage, by grade and by region. As was the case for Net Enrollment rates, here again regional 39 disparities are large. Region 1 (the capital) has moderate percentages over overage students, while regions 2, 6, 7 and 8 all have very high percentages o f overage students. Table 1.13: Percentage of students who are at least 2 years overage, by Region and Grade, 2004. I n percentage Grade 1 13 33 25 22 21 26 31 28 Grade 2 15 47 34 30 26 34 43 38 Grade 3 17 52 36 34 28 38 47 43 Grade 4 19 53 37 34 30 40 47 43 Grade 5 19 55 36 34 29 38 45 44 Grade 6 17 54 32 33 27 37 43 44 Grade 7 29 62 41 41 35 38 47 52 Grade 8 22 56 37 36 30 34 42 47 Grade 9 24 53 32 33 32 34 42 46 Source: World Bank calculations, M I N E D U C data Index of Education Efficiency (IEE) across Regions: The previous section shows that education efficiency varies across regions on a number o f different dimensions. Given that no single measure captures education efficiency, it was deemed appropriate to construct an Index o f Education Efficiency (IEE) using indicators in a number o f i t s key dimensions. This indicator summarizes internal efficiency in Basic Education, and allows to target the interventions o f the project according to objective and measurable criteria. The key dimensions o f education efficiency aggregated in the index are: (i) percentage o f sixth the graders which are overage, (ii) enrollment rate in ninth grade, and (iii) proxy ninth grade completion net a rate. F r o m the current national statistics, i t i s not possible to compute ninth grade completion rates in an exact way. However, given the importance o f capturing ninth grade completion in the context o f a secondary school project, it was decided to compute a proxy indicator as follows: using the dropout rates and repetition rates in each grade, we compute an approximate measure o f completion for each individual grade. These grade-level measures are then compounded into a lower secondary approximate measure of completion. T o compute the IEE, the country was first divided into 237 educational micro-regions. In some cases, a micro-region represents two or more small municipalities or disaggregates a large municipality. This aggregatioddisaggregationwas done to ensure statistical representativity o f the indicators and IEE at the micro-region level. The IEE was computed for the 237 micro-regions, and based o n the index; the micro- regions were then ranked from high to low. The 30 micro-regions with the lowest educational outcomes are presented in Table 1.14. The Project will especially target 10 Departments with most o f the micro- regions in the l o w IEE group (IEE); population in these Departments i s up to 60% indigenous. 40 Table 1.14: The 30 Micro-Regions with worst educational outcomes Micro D e p a r t a mm t o Regi6n regi6n Posia6n Deal ALTAVERAPE 2 F 237 I O ALTAVERAPE 2 H 238 I O QUlC HE 7 E 235 IO ALTAVERAPAZ 2 E 234 I O ALTAVERAPE 2 A 233 IO ALTAVERAPE 2 x 232 I O HU EH UETENAN G O 7 N 231 I O TOTONICAPAN 6 G 230 I O ALTA V ERA P E 2 I 229 10 SAN M A R C O S 6 G 228 IO ALTAVERAPE 2 K 227 I O ALTA V E RA P E 2 J 228 I O ALTA V E R A P E 2 D 225 I O ALTA V E RA P E 2 G 2 x I O HU EH U E T E N A N GO 7 B 2.23 IO SAN M A R C O S 6 F 222 I O HU EH U E T E N A N GO 7 M 221 I O QUICHE 7 N 220 IO HU EH U E T E N A N GO 7 0 2 19 I O HU EH U E T E N A N GO 7 P 2 18 I O FAN MARCOS 6 E 2 17 I O SAN M A R C O S 6 I 2 16 I O SOWLA 6 G 2 15 I O QUICHE 7 L 2 14 I O WAVERAPAZ 2 F 2 13 Q PETEN 8 H 2 12 Q SAN M A R C O S 6 R 211 Q QUICHE 7 0 2I O Q QUICHE 7 I 208 Q SUCH I T E P E Q U 2 6 G 2138 Q QUET-LTENAN GO 6 F 207 Q Source: Francisco Esquivel, MMEDUC data Based on the IEE, the micro-regions were then assigned to three different groups o f IEE: "low" (group l), "medium" (group 2) and "high" (group 3) education outcomes. The groups were split in such a way that each o f the three IEE groups would represent approximately a third o f the population o f the country (Figure 1.9). Figure 1.10 maps the micro-regions according to their IEE. 41 Figure 1.9: Population distribution according to IEE 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% O,O% Group 1 Group 2 Group 3 Source: Francisco Esquivel, MINEDUC data Note: Group 1= Decile 7 through 10 o f IEE (worst), Group 2= Deciles 2 through 6 o f IEE, Group 3=Deciles 1 and 2 o f IEE (best) Figure 1.10: Educational Micro-Regions by IEE The IEE and income disparities Figure 1.1 1 illustrates the wide education disparities in Guatemala. I t compares the poorest population (first quintile) o f the region which i s most disadvantaged in terms o f IEE (group 3) to the richest population (fifth quintile) o f the region which i s most advantaged in terms o f IEE (group 1). The average years o f education among the former i s close to 2, while the latter has over nine years o f formal education o n average (Cf. See Figure 1.1 1). 42 Figure 1.11: Maximum Education Gap N Source: Francisco Esquivel, I E data. The IEE and the overage problem Tables 1.15.a and 1.15.b shows the number o f overage students in grades 2-6, by regional IEE (Group 1=high relative inefficiency, Group 2=medium relative inefficiency, Group 3=low relative inefficiency). While the absolute number o f overage students i s high in all three groups, over h a l f o f the overage students can be found in Group 1. Table 1.15a: Absolute numbers of overage students, by IEE group Number o f years IRE Grades overage Croup 1 Group 2 Group 3 'l'otel Grades 2,3, and 4 3 and4 96982 46732 29128 172842 Grades 5 and 6 2 and 3 709 19 42509 35618 149046 Total 16790 1 89241 64746 321888 Percentage o f total 52.2% 27.7% 20.1% 100% Table 1.15b: Absolute numbers of overage students, by IEE group Number o f years IRE Grades overage Group 1 Group 2 Group 3 Total Grades 2,3, and 4 2 and more 217991 109852 73454 401297 Grades 5 and 6 2 and more 83207 46820 38515 168542 Total 301198 156672 111969 569839 Percentage o f total 52.9% 27.5% 19.6% 100% 43 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 2: Major Related Projects Financed by the Bank andor other Agencies Net Cornrn Latest Supervision Pro} ID Loan Nbr. Ratlngs Project Objective Project Name Amt 00 I IP I To ncrease legal security of land tenure in tne Pete Department. Strengthen.the legal and institutional S framework for land registry and cadastre services ir Peten. To improve the competitiveness of rural productive GT-Support Rural EconDev. supply chains with strong indigenous participation; PO94321 S Program and (ii) to strengthen the institutional capacity of the I public entities. GT Financial Sector Adjustment I I I To assist the Guatemalan Government to implemei I I I PO74530 7130-GU 150.0 S Loan its Financial Sector Reform Program. I To provide technical assistance to support the implementation of the Government's financial sectc GT Financial Sector TA Loan PO76853 7129-GU 3.0 S reform program aimed at restoring the soundness c I I I the financial system. To support the national program PRONACOM, by helping primarily small and micro businesses to GTCoMPETITIVENESS PO55084 7044-GU 20.3 S generate higher income and reduce high rates of PROJECT poverty in Guatemala. The main objectives of the project are to: (i) suppor the long term process of building up the country's GT RURAL & MAIN ROADS PO35737 4260-GU 66.7 S S institutional capaci ty to administer and maintain rural roads: (ii) improve the rural system in the ZONAPAZ Region. The overarching goal of the project is to contribute reducing rural poverty and build social cohesion by MS MS improving and maintaining access in rural areas to markets, schools, health centers and other social and economic infrastructure. improve coverage and equity at the primary school level through the expansion and consolidation of S s PRONADE; support multigrade and bilingual education; and assist descentralizationand modernization of MINEDUC. Support the Government of Guatemala to: (a) improve maternal and infant health in the project's 40 areas of intervention: and (b) reduce chronic S malnutrition among children younger than 2 years c age in the rural areas of the 70 municipalities targeted. To create a more effective, accessible and credible judicial system that would foster public trust and GT JUDiClAL REFORM PO47039 4401-GU 33.0 S confidence and improve consistency and equity in the application of law. The project's development objectives are to: (i) improve the effectiveness and efficiency of tax and GT TAX ADMIN. TAL customs administration; an d (ii) increase tax 1 1 I I revenues. Increased effectiveness, efficiency, and MNGT 111 -TA 7104-GU transparency of public sector financial planning, manaqement, and control. Improve living standards and selfdeveiopment in tt municipalities of San Marcos and Huehuetenango, GT RECONSTRUCTiON & po49386 4379-GU 22.9 And strengthen the capacity of local governments LOCAL DEV. and local community organizations to address the most critical needs of the populations they serve. 44 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 3: Results Framework and Monitoring Part A: Results Framework Project Development Project Outcome Indicators Use of Project Outcome Information Objectives (POI) Improve Primary 1) 9'h grade Gross These Project Development Outcome Education Completion Completion Rates Indicators will be used to monitor the Rate for overage overall progress towards project goals. student, and increase 2) Gross Enrollment rate in access to quality lower lower secondary The indicators w i l l be followed at the secondary education education, grades 7-9 Regional level (municipalities with IRE 1 (grades 7-9) for low and 2 within Regions 2, 6 and 7) and at the income students 3) Intake in grade 7 in National level. modalities supported by the Project In addition, there will be impact and process evaluations o f the components o f the 4) Proportion o f overage project. Because o f measurement and pupils (13-15 year old) identification issues, the indicators used in who complete primary the impact evaluations will be the ones that education feed into the overall project outcome indicators, and not necessarily the project 5) 6'h grade Gross outcome indicators themselves. Completion Rate Three key Project Interventions will be evaluated: (i) Integrated Basic the Education Centers (including the accelerated learning program for overage students); (ii) flexible lower secondary education modalities: Telesecundaria, Alternancia, and NGO programs; and ( i )ii school-based management for education quality. Part C o f this annex summarizes the methodology that will be used to evaluate the impact o f the project. 45 Xntermediate Outcomes Intermediate Outcome and Use of Intermediate Outcome and Output Indicators Output fndicators for Monitoring and Evaluation Sub-component l.A (IntegratedBasic Education Centers) Improvement of 1) For the cohort o f students These two intermediate outcomes-directly Primary Education who are overage at supported by the Accelerated Program o f Efficiency and baseline: sixth grade the Integrated Basic Education centers- Completion Rates for completion rate need to be monitored to assess progress o f Overage Students Project Outcome Indicator #4: Proportion 2) For the cohort o f students o overage students (13-15 year old) who f who are overage at complete primary education-with baseline: Standardized 6* minimum satisfactory scores in 6[" grade grade test scores o f standardized test. students Prevention o f the 3) Repetition and dropout overage problem in the rates in grade 1-6 These two intermediate outcomes - directly new cohorts of students supported in the management part o f the in primary 4) Proportion o f non- Integrated Basic Education Centers - need repeating first graders who to be monitored to ensure that the current have appropriate age bottleneck problem to be solved by the centers, be resolved in the long run. Sub-component l.B 1) Test Scores in Entering These indicators w i l l monitor the improved (Teacher Training and Exam for Pre-Service quality o f teachers being prepared in the Development Reform) Teacher Training (ENM) new pre-service teacher training centers (EM). Improvement of Pre- 2) Test Scores in Exit Exam Monitoring o f these intermediate indicators Service Training of for Pre-Service Teacher will be proxy to assessing the following Primary Education Training (ENM) sub-component objectives as long-term Teachers contributions to primary education quality: 3) Number o f bilingual 0 Strengthening o f Pedagogy Applied teachers trained and knowledge (pedagogical processes, certified in upgraded pre- community participation, and multiple service training schools and creative learning) (ENM), and percentage o f 0 Increased subject-area knowledge, bilingual teachers among especially Spanish, Mathematics, ENM graduates Social and Natural Science. 0 Increased bilingual education (mother tongue and Spanish as Second Language) pedagogy and content know1edge. 46 Subcomponent 2.A 1) Developed new Although the Focus o f the Project i s to (Feasibility Studies for curriculum school increase access and completion o f lower Secondary Education materials and teacher secondary Education (grades 7-9), the Curriculum) guides sector-wide curricular development should be monitored to guarantee that the upgraded Renewal of Secondary 2) % o f Project-supported curricular content for secondary education Education Curriculum schools receiving new i s incorporated into the supported Project curricular orientations and programs. materials Subcomponent 2.B 1) Review, strengthening and These three intermediate outcomes- accreditation o f Lower directly supported by the Accelerated Improvement of Lower Education Modalities Program o f the Integrated Basic Education Secondary Education centers-need to be monitored to assess Flexible Modalities and 2) Number o f new student progress to Expansion of access places in lower secondary e Project Outcome Indicator #2 Gross with equity in the different modalities: Enrollment rate in lower secondary I integrated lower n education, grades 7-9 (51 % to 58%) secondary schools e Project Outcome Indicator #3: e in cooperativas with Increased intake in grade 7 in quality accredited modalities supported by the Project modality e in places creates The evaluation o f strengthening modalities through strategic should confirm improvement o n (i) alliances with NGOs pedagogy (content, methodology, teacher and foundations and student materials, technology, e places created evaluation, learning outcomes) and (ii) through optimization managerial processes (instruments, in existing INEB community organization, human resources centers training, and availability o f public and self- managed resources). 3) Rate o f finalization o f 9" grade Lower Secondary Education Expansion information should be disaggregated by 4) Standardized 9" grade test region, gender and ethnicity o f new scores o f students in the students, as well as socio-economic modalities indicators where available. 5) % o f students from ethnic Intermediate indicators 2, 3 and 4 contribute backgrounds in project- directly to Project Outcome Indicators # 1, supported schools #2, and #3. Intermediate indicators 1 and 5 monitor and ensure the level o f quality o f 6) % o f new student places the new places. located in municipalities with low income quintiles (1 & 2 ) Subcomponent 2C 1) Standardization o f These indicators w i l l monitor the support o f Education Demand scholarships targeting and traditionally excluded groups to participate 47 Scholarships monitoring procedures in the education programs supported by the Project. Improved targeting of 2) Region, income level, Monitoring o f these three intermediate Demand Scholarships gender and ethnicity o f outcome indicators w i l l contribute to and monitoring of scholarship beneficiaries assessing the equity progress towards beneficiaries achieving all five Project Outcome 3) Indicators o f success o f Indicators. beneficiaries: on-time Improved targeting towards needy groups enrollment, promotion, w i l l contribute to Project Outcome Indicator learning, and grade and #1 and Project Outcome Indicator #2. full lower secondary education cycle completion Subcomponent 3.A 1) % o f School governments These two output indicators focus on three Enhance school-based organized and trained (as key areas o f management: school decision making and o f originally planned organization, planning, and availability and community targeted schools) use o f decentralized resources. participation. 2) % o f schools with own planning and management o f resources (as o f originally planned targeted schools) 3) Repetition rates in grades These two intermediate outcome indicators 7-9 feed into Project Outcome Indicators #1, and #2, and into quality indicators. 4) Dropout rates n grades Improvements in the school management 7-9 progress should contribute to the improvement o f these indicators. Since the intervention w i l l across the board in all lower secondary schools (either through project or through counterpart financing), the intermediate outcome indicators w i l l be used for monitoring rather than for impact evaluation. Subcomponent 3.B 1) Teaching Staff Payroll and Although this sub-component focuses at the Improve departmental Administrative departmental level, the center o f and district technical Supervision strengthening strategy i s school assistance and improvement and the technical assistance supervision of school 2) Targeting, allocation and and supervision that departmental and improvements monitoring o f scholarships district offices must provide participating schools. 3) School Management training and technical Thus, the Project w i l l monitor how targeted assistance offered to DDEs are increasing and improving their principals, teachers and processes (in comparison to non-targeted school government DDEs), in terms o f three key school resources: (i)teachers, (ii) scholarships and 48 i ischool training and supervision. (i) At the department level, the evaluation will compare the number o f processes between targeted Departmental Education Offices (DDEs) and not targeted Departmental Education Office with similar characteristics at baseline. 49 Part B: Arrangements for results monitoring The results monitoring and evaluation arrangements o f the project will be integrated into the existing data collection and utilization efforts, in as far as possible. I t i s worth noting that Guatemala currently has one o f the most advanced data collection systems in Central America, and that efforts are now well underway to strengthen the data utilization systems, and move to results based planning. Continued support for the existing systems, and demand for their products from the Bank side will contribute to their sustainability. Data collection systems in education Since 1992, Guatemala has collected a yearly enrollment census in primary and secondary education. The enrollment data can be disaggregated by age, grade, sex, ethnic origin, repeater status, etc., and are a very r i c h source o f information o n the state o f education in the country. In addition, the country collects yearly information o n teacher characteristics (including knowledge o f indigenous languages, sex, age, education, etc.). In 2005, M I N E D U C completed an extensive census o f educational infrastructure. Schools are geo- referenced and can therefore be mapped using standard ARC-GIS software. Most educational databases use identification codes which are compatible between educational datasets, so that they can be related. In addition, MINEDUC databases use standard INE geographical codes, so that they can be directly related to many non-educational databases, like the poverty map, ENCOVI data, employment data, climate data, etc. Data utilization systems in education In February 2006, M I N E D U C conducted a needs assessment for data utilization with the help o f US-AID. As a result o f t h i s assessment, work was started o n setting up a user-friendly portal for educational data using Business Objects. The portal has as objectives: integrating the existing educational databases, as well as other relevant multi-sectoral databases; facilitating access to and use o f readily available data, by eliminating the need for data processing by the end user; ensuring continuity in data collection and data use. The system allows for far-reaching customization: for example, it i s possible to define folders o f indicators and samples for projects, which can then be executed every time new data are added to the system. n I the medium run, use o f the system will be expanded to the departmental education offices, supporting results-based planning and management. Access to the data portal by other sectors, multilateral agencies, and the public at large, will also help transparency and accountability. Relation between existing data collection and utilization systems, and project M&E A significant portion o f the monitoring and evaluation indicators for this project would be based o n data which are collected in the enrollment census and related instruments. These databases are currently being integrated into the Business Objects portal. Therefore, the most cost-effective strategy for project M&E will be t o support and rely o n this portal. TOR for Monitoring and Evaluation include the integration o f major project output and outcome indicators into the Business Objects portal. These indicators are annotated with (BO) in the Frequency and Reports column in the table below. Because the portal i s highly automated, i t will be possible to disaggregate all data by geographic region (prioritized versus non- prioritized), and by ethnicity, without much additional burden. 50 Target Values Data Collection and Reporting Project Outcome Baseline YRl YR2 YR3 YR4 YR5 Frequency and Data Collection Responsibility for Indicators Reports Instruments Data Collection 1 Ninth Grade Gross 45.80% Yearly reports (BO) Enrollment census, MINEDUC Completion Rate 38 (2005) population census 2 Gross Enrollment rate in Yearly reports (BO) Enrollment census MINEDUC lower secondary grad. 7- Note: numbers 939 55% 55% 57% 61% 64% 65% calculated in basis of - Nationwide (2005) enrollment projections, population projections, and actual enrollments - In municipalities 34% 34% 39% 47% 54% 58% at baseline. with IRE 1&2 in (2004) Regions 2,6,7 3 Intake in grade 7 in 0 17,250 51,750 86,250 103,500 103,500 Yearly reports (BO) Grade 7 data, MINEDUCand modalities supported by Tertiary Data, Tertiary data the p . 40 roJect Enrollment census institutions 4 Proportion of overage Not Higher Yearly reports Specific data MINEDUC pupils (13-15 year old) available than collection who complete primary YR 1 See section C education 41 5 Sixth grade gross 72.30 % Higher Yearly reports (BO) Enrollment census MINEDUCand . compIetIOn rate 42 (2005) than and INE population INE 72.30% projections 38 Defined as: Number of pupils enrolled in 9th grade in September of year t Number of youth age 15 as estimated by 1NE for year t 39 Defmed as: Number of pupils enrolled in 7-8-9 th grade in Januarv of year t Number of youth age 13-14-15 as estimated by 1NE for year t 40 Defined as: Number of pupils enrolled in grade 7 in January of year t in modalities supported by the project in the 172 focused municipalities. 41 Defined as: Number of baseline overage pupils who have completed primary ("aprobados") on or before year t Number of baseline overage pupils enrolled at baseline 42 Defined as: Number of pupils enrolled in 6th grade in September of year t Number of children age 12 as estimated by 1NE for year t 51 Intermediate Baseline YRI YR2 YR3 YR4 YR5 Frequency Data Collect. Sample Responsibility for Data Outcome Indicators and Reports Instruments Collection Sub-Component 1.A a) For the cohort of Yes Yes Yes 2007 (fIrst 1 SpecifIc data Cohort of MINEDUC students who are year collection: students who overage at (see note) (see note) (see note) accelerated Report from were overage Note: Please see impact baseline: sixth pnmary schools, based at baseline, evaluation strategy. grade completion cohort) on baseline sample of Impact evaluation will rate 43 2008 (fIrst 2 infonnation, integrated compare the values in year sampled modality schools with accelerated accelerated control of schools and program with those in primary accuracy control control schools. cohort) schools .. _._- _.- _. -- ... - ._._.. _. -- --_._.- .__... - -- -- --- ----- --- ---- --" ... - .__ .. - - _. .- ... _- _. _. - _0" -- -- - - ._" _. .. - .. __.._-- ._-- --- "-- _... -- . - ..__ .. _.- ._- . --- .._--_._._ ... ._..- -. --_. _.. --- - ... - _.._. b) For the cohort of Yes, at Yes, at Yes, at 2007 (fIrst I Standardized Cohort of MINEDUC students who are regional regional regional year test 6th students who overage at average average average accelerated were overage Note: Please see impact baseline: pnmary at baseline, evaluation strategy. Standardized 6th (see note) (see note) (see note) cohort) representative Impact evaluation will grade test scores 2008 (fIrst 2 sample of compare the values in of students in year integrated schools with accelerated Accelerated accelerated modality and program with those in learning program pnmary control control schools. cohort) schools 43 Defined as: - Number of baseline overage pupils who have completed primary ("aprobados"l on or before year t Number of baseline overage pupils emolled at baseline 52 Intermediate Baseline YRI YR2 YR3 YR4 YR5 Frequency Data CoUect. Sample Responsibility for Data Outcome Indicators and Reports Instruments Collection c) Repetition 44 yes yes yes yes Baseline Enrollment Integrated MINEDUC rates for grades YR3,4,5 census modality 1-6 in the whole (BO) schools and school population control schools Total (inter- and yes yes yes yes Baseline Enrollment Integrated MINEDUC intra-year ) Yr 3,4,5 census modality dropout rates 45 (BO) schools and for grades 1-6 in control the whole school schools population --- - ---- ..._._.._.- ... - _.- --~ -- . --_._-- -- -- _ . ... ----- - - -- -- ... -- _._.- _. __. ._-_._... .._- - ----_ ...- -- - - -- ----- - --- - - - - - _ . -----. ---- ---- - -_.._._._- ._- _....__..- _._.- _ ..._. __. _ - - - ·· 0 ___- _ . _ ·· d) Proportion of 65.5% Yearly reports Enrollment Sample of MINEDUC non-repeating (natI.) (BO) census integrated first graders who modality have appropriate 55.5% 55.5% 60% 65% 70% 75% schools and Note: focus municipalities age 46 (focus) control are the 172 municipalities schools in regions 2, 6 and 7 that (2005) have IRE 1 &2 44 Defined as: For grades (g) 1 through 5, calculated as: (A-B-C)/A where A=Enrolled students in grade g in January of year t-l B=Non-repeaters enrolled in grade g+ 1 in January of year t C=Repeaters enrolled in grade g in January of year t For g=6, calculated as Number of enrolled in grade 9 in September of year t Number of enrolled in grade 9 in January of year t 45 Defined as: Number of repeaters enrolled in grade g in year t for grades g= I through 6 Number of enrolled students in grade g in year t-l 46 Defined as: Number of non-repeating 1st graders in year t who are 7 years old or younger Number of non-repeating 1st graders in year t 53 Intermediate Outcome Baseline YRl YR2 YR3 YR4 YR5 Frequency Data Sample Responsibility for Indicators and Collection Data Collection Reports Instruments Subcomponent I.B a) Test scores in Above Above Above Above Yearly Standardized All candidates to MINEDUC Entering Exam for reference reference reference reference reports tests pre-service teacher Pre-Service Teacher level level level level training centers. Note: please see Training (ESCUELA All admitted section A3.C.7 for NORMAL students to pre- reference level on MODELO) service teacher teacher subject tralmng centers knowledge level ----.. ---- - -- - --.-.- -..-...-.- .-.- - - . _ - 1--- - -.... -..--- ..- -------1--- -...... -.....-..--.- - ---- ..-- - - - -- ---- -- -.. - -.... - ...-...-.- . -- ---.. -. --.-.- -.-.-- .----.--.---.--.-. -.- . -....--..--.--.-.- - --- ----.--.--1--- .----. - ---- -- .-.--- .. - b) Test Scores in Exit Yearly Bilingual All graduating MINEDUC Exam for Pre-Service reports schools census teachers at Teacher Training E (ESCUELA N NORMAL M MODELO) .. --- -.- .. -- ---- - -_... --- . c) Number of bilingual 0 o 0 TBDat TBDat TBDat Yearly Specific data National MINEDUC teachers trained and execution execution execution reports collection certified in upgraded pre-service training schools (ESCUELA NORMAL MODELO), and percentage of bilingual teachers among graduates. 54 Intermediate Outcome Baseline YRI YR2 YR3 YR4 YR5 Frequency Data Collection Sample Responsibility for Indicators and Reports Instruments Data Collection Subcomponeut 2.A a) Developed new 0 30% 60% 100% 100% 100% Yearly reports -- -- mCADE, curriculum school MINEDUC materials and teacher Unit of Curricular guides development - -- . ....... - - - -------- - _. -_.. _._----- --- - --_... _. __ .. .- --'-- - .. _- _._.... _._- ..- _._.._....._- _..._ __ ... ..... "0_- ._._ .. ____ ----- --_._- - ----- .- .._- _. __ ._---------- ._-- _ _ .. .... _---_. -- ---- -_.. --- _ .... ...- -_. b) % of Project-supported 0 20% 40% 60% 80% 100% Yearly reports Specific Project MINEDUC schools receiving new information supported curricular orientations and schools materials Sub-Component 2.B a) Review, strengthening None Altern. + 100 %of Yearly reports Flexible delivery Regions 2, 6 MINEDUC and accreditation of Telesec. + NGOs database and 7 Lower Education 50% of (monitoring and Modalities NGOs Evaluation Secondary education) 55 Intermediate Ontcome Indicators Baseline YRl YR2 YR3 YR4 YR5 Frequency Data Collection Sample Responsibility and Reports Instruments for Data Collection b) Number of new student places in lower Yearly reports Enrollment Regions 2, MINEDUC secondary in the different modalities: (BO) census 6 and 7 (Count filled places only, new in comparison to baseline) .. - --_. - .. - - .- _._._- _.. -_.- .- - -- .. _- ._-- ---- -'- -_. - _. ---- ._- .- .. _._-- --_. -_.. _- ....._. - -- - . _.... _ _- -- ----- .. b-l) · .. in the integrated lower Gr7 0 0 7.5K 15K 15 K 15 K secondary Gr8 0 0 0 7.5K 15K 15K Gr9 0 0 0 0 7.5K 15K --_.. -_ ... -_. -_. -_. -- -- - ..- -_.. _. __ ._..._._-_. . .. __ ._-_.. . --- _.- ._ .._._. __.- --_._.._._ .._.- - .._._ .. --_.._. b-2) .. .in integrated lower Gr7 0 0 7.5K 15K 15K 15K secondary schools Gr8 0 0 0 7.5K 15K 15K Gr9 0 0 0 0 7.5K 15K _._.... _...- _. __... .__.. -------- _._..- - ._---_ . - .- -- - - --- ------ - - -_.--- b-3) · .. in cooperatives with quality Gr7 0 0 6K 12K 12K 12K accredited modality Gr8 0 0 0 6K 12K 12K Gr9 0 0 0 0 6K 12K 1--- - -- . _.. - _ . . . . . .- _.- ... ..__... -- -- - -_.- . -- ·. --- --_. -"-- _._. b-4) · . .in places created through Gr7 0 0 1250 2500 2,500 2,500 strategic alliances with NGOs Gr8 0 0 0 1250 2,500 2,500 and foundations Gr9 0 0 0 0 1,250 2,500 ... _ .. .. _.... .... _- _.. - ._-_.. . __ .. - ...- _.... _-- -- --"- --- --_...._-_. _..._..__ .. _... - b-5) .. .in places created through Gr7 0 0 2,500 5,000 5,000 5,000 optimization in existing INEB Gr8 0 0 0 2,500 5,000 5,000 centers Gr9 0 0 0 0 2,500 5,000 . _- ---- ._-_. _. _._._...._....__.. -----~- ----. . -- . - ._- ---_.. __..._ . -_._. _.__ .- - - - _ . _ - - - ....... _.. --.---- .._...__..__.- _.-_ .._._._..._._-- ------_.._._.__.._- .._- -- ... ..- . ... c) Rate of finalization of 9th grade 47 73.53% 80% 80% Yearly reports Enrollment Regions 2, MINEDUC (BO) census 6 and 7, (2005, nat!.) by modality 47 Approximate indicator defined as: Number of enrolled 9th graders in September of year t Number of enrolled 7th graders in January of year t-2 56 Intermediate Outcome Baseline YRl YR2 YRJ YR4 YR5 Frequency Data Sample Responsibility Indicators and Collection for Data Reports Instruments Collection d) Standardized 9th grade At At Yearly Standardized Regions 2, 6 MINEDUC test scores of students in regional regional reports tests and 7, by Integrated Lower avg. avg. (BO) modality Secondary ...... _ _-_._...- _._.. -- - - _._- - ._- - -- ... -- --- e) % of students from 20.2% At At At At Yearly Enrollment Regions 2, 6 MINEDUC ethnic backgrounds, (2004, regional) regional regional regional regional reports census and 7 among students in pop. % pop. % pop. % pop. % (BO) grades 7_9 48 18.7% (2005, natl) f) % of student places National 2005 At Yearly Enrollment National MINEDUC located in municipalities baseline population reports (BO) census with low income levels quintiles (1 & 2) 49 Subcomponent 2.C a) Standardization of 100% Report Monitoring -- Data collector scholarships targeting and evaluation instrument from and monitoring system the Index of procedures Education Gap (Indicede Rezago Educativo, IRE) designed during Project Preparation 48 Defined as: Number ofnon-ladino students enrolled in grades 7,8, and 9 in January of year t in Regions 2,6 and 7 Number of students enrolled in grades 7, 8 and 9 in January of year t in Regions 2, 6 and 7 49 Defined as: Number of pupils enrolled in grade 7 through 9 in Jan. of year t in schools loc. in municipalities with income quintiles 1&2 Nr of pupils enrolled in grade 7 through 9 students in January of year 1, nationwide 57 ... · ._._.. "---- - .- --- .. - ._- .. - ._.. _.. .. ._ .. ._ ..- -- --_ .. ---- .. .. _ __ .. .. _- ... _. - _. _.- . -- - - -- - --- ---- --- . ---_. __ ._.- .._.. .. - - -- --- --- .. - - --_.- _ .. .... - . b) Region, income level, TBDat TBDat TBDat TBDat TBDat Yearly Secondary beneficiaries MINEDUC gender and ethnicity of execution execution execution execution execution reports education scholarship beneficiaries reform Note: no · Old grant coordination baseline until modalities unit 2.C.1) is · New grant effective modality Intermediate Outcome Baseline YRI YR2 YR3 YR4 YR5 Frequency Data Collection Sample Responsibility for Indicators and Instruments Data Collection Reports c) Indicators of success TBD TBD TBD TBD TBD Yearly Individual beneficiaries MINEDUC of beneficiaries: on- reports monitoring time enrollment, system for grant Note: no baseline promotion, learning, beneficiaries untiI2.C.I) is and grade and full effective lower secondary education cycle completion Sub-Component 3.A a) % of school 0 50 100 100 100 100 Yearly Support Regions 2,6 MINEDUC governments reports Programs Unit, and 7 organized and trained PRONADE data (as of originally base planned targeted schools) _ .- -_. _.... ._. -- ..- - ... - -- --- --_.- -- -.~---- .. -- --._- -- . ----- --_. ~- L .. --- _. --_.. ._--- --- _. --- _- ... ~ ------- . .. .._-- ---- ... -_._.- - -- --- --- - ._.__._.. - - . ._- - _... _.. - --- -" -_ .. _._. __._._.. - _.- --- -- .. 58 b) % of schools with o 50 100 100 100 100 Yearly Support Regions 2, 6 MINEDUC own planning and reports Programs Unit, and 7 management of PRONADE data resources (as of base originally planned targeted schools). c) Repetition rates lower TBDat TBDat TBDat TBDat TBD at Yearly Enrollment Regions 2, 6 MINEDUC secondary 50 execution execution execution execution execution reports census and 7 Note: indicators (BO) available at national level but will be computed during execution in targeted regions Intermediate Outcome Baseline YRl YR2 YR3 YR4 YR5 Frequency Data CoUection Sample Responsibility for Indicators and Instruments Data CoUection Reports d) Total (inter- and intra- TBD at TBD at TBD at TBD at TBD at Yearly Enrollment Regions 2, 6 MINEDUC year) dropout rates in execution execution execution execution execution reports census and 7 Note: indicators lower secondary 51 (BO) available at national level but will be computed during execution in targeted regions Subcomponent 3.B a) Teaching Staff Payroll 30% 60% 100% 100% 100% Yearly Departmental National MINEDUC and Administrative reports offices Supervision monitoring and evaluation - --- -- -- --------- - - - - - ----- -- ------------- --- - - -- -------- -- - - -- --- --- - -- --- - - --------- 50 Defined as Number of repeaters enrolled in grade x in year t Number of enrolled students in grade x in year t-l 51 Defined as For x=7, 8 and 9, calculated as: (A-B-C)/A where A=Enrolled students in grade x in January of year t-l B=Non-repeaters enrolled in grade x+ 1 in January of year t C=Repeaters enrolled in grade x in January of year t 59 .. _- . - .. _.... _- b) Targeting, allocation 30% 60% 100% 100% 100% Yearly Departmental National MINEDUC and monitoring of reports offices scholarships monitoring and evaluation -- -_ ... _- ---- . . --- .. _. __.. - - c) School Management 30% 60% 100% 100% 100% Yearly Departmental National MINEDUC training offered to reports offices principals, teachers monitoring and and school evaluation government 60 P a r t C: Strategy f o r evaluation o f impact Goals o f the impact evaluation The goals o f the impact evaluation o f the project are to evaluate: The cost-benefit tradeoff between three different modalities o f lower secondary education: 0 The "Basica Completa" or Integrated Basic Education Center. 0 The "Cooperativa" model 0 Strategic alliances with NGOs and Foundations: subsidies in exchange o f their extending lower secondary services to currently underserved populations 0 The current situation, whereby rural primary school graduates explore possibilities for lower secondary education outside o f their community. (Table 3.1 summarizes the main characteristics o f each o f those modalities.) The effectiveness o f the accelerated primary modality in increasing finalization and reducing dropouts among overage children. Table 3.1: Characteristics o f the Lower Secondary School Modalities Managemen Pedagogical School Grants t o Integrated Accelerated t Modality model educational students primary/ Primary project and lower quality secondary interventions T1 Basica Telesecundaria Yes Yes Yes Yes Completa or Alternancia (opportunity costs) T2 Cooperativa Telesecundaria Yes Yes No N O or Alternancia (opportunity costs) T3 Cupos Varies No No No No C Status-quo Varies Varies Yes No No (variety o f (opportunity schools) costs , trans - port, etc.) 61 Indicators Evaluation o f secondary modalities 0 Completion rate o f gth grade, computed approximately as the number o f graduates from 91h grade, divided by the number o f entrants in 7" grade. 0 Gross enrollment rate in 7'h grade, calculated as the number o f enrolled pupils in 7" grade, divided by the number o f 13-years o l d in the community. 0 Promotion rates from 7' to 8" grade and from 8" grade to gthgrade within each modality. 0 Total costs o f each modality (including costs to students, families, communities and government). 0 Test scores o n 9" grade standardized tests. Evaluation o f accelerated primary 0 Sixth grade completion rates o f the cohort o f students that was overage at the time o f the baseline. 0 Repetition and dropout rates in primary for the cohort o f students that was not overage at the time o f the baseline. 0 Standardized 6th grade test scores o f students in the accelerated learning program 0 Entry o n time into first grade. 0 Finalization o f sixth grade, computed approximately as the number o f graduates from 6th grade, divided by the number o f 12 years old in the community. Sampling Basic set-up 0 The sampling frame w i l l be the universe o f rural public primary schools in the 184 prioritized municipalities. (These are the 172 (out o f 184) municipalities with worst educational efficiency indicator (IEE) in the 10 departments o f Regions 2, 6, 7). 0 Primary schools in those municipalities will be grouped into clusters o f schools that are within walking distance o f each other. The cluster would be the primary unit o f analysis and the sampling unit. I t would also be the intervention unit, in the sense that the project would not place two lower secondary schools within one cluster. W h e d i f a lower secondary school i s placed within a cluster, children attending any o f the primary schools within that cluster w i l l be targeted to attend that lower secondary school. Identification strategy 0 In the sampling frame, a lottery w i l l decide which clusters will participate in which o f the four modalities. The lottery w i l l choose an appropriate number o f clusters for each intervention, as not all interventions have the same size. Figure 3.1 illustrates the allocation o f schools between the four different modalities. The evaluation o f the accelerated primary module w i l l be based o n comparison between the primary school indicators (mentioned above) o f clusters in groups T I and groups T3. Since there i s an additional difference between T1 and T3 in addition to the availability o f accelerated primary, nl. the simultaneous expansion o f the lower secondary cycle in group T1, the evaluation evaluates the package "offering o f accelerated primary + prospect o f possibilities to enroll in an integrated lower secondary". 62 The comparison o f integrated secondary, cooperatives and alliances with NGOs i s based on comparisons between clusters in groups TI, T2, T3 and C. Qualifier: In the integrated lower secondary, only the first cohort o f students w i l l be strictly comparable to the equivalent cohort in groups T2, T3 and C. This i s because the second cohort w i l l include children who graduate from the accelerated program. Cost considerations prohibit following children individually. For this reason, it w i l l not be possible to separate the results/progression o f lower secondary students who went through the accelerated program, from those who did not. Figure 3.1 : Graphical representation of the monitoring and impact evaluation strategy Modality Year 0 a Project * Base l i n e IC - 1' 6' 1' 6' 7' Group T I Primary Group T2 Primary 1 - 7 1 Group T3 Primary Group C Primary 7 D a t a needs Data needsfor evaluating the accelerated primary subcomponent 0 The following information w i l l need to be collected in (all or a sample of) schools in groups "T1"and "T2". 0 In order to evaluate the effects o f the accelerated program, one needs to know the pool o f potential beneficiaries. Since there are currently no data at the level o f the community about how many children o f each age there are, i t would be necessary to build a baseline list o f children with and without overage at the school level 63 0 The baseline would be constructed by linking the enrollment census to the population census of 2002, using GPS information o n the location o f the schools and o n the location o f lowest units in the population census. Data needs to evaluate the integrated Secondary subcomponent 0 The following information w i l l be collected at the school level in (all or a sample of) schools in groups "Tl", "T2" and "T3". - Completion rate o f 9" grade, computed approximately as the number o f graduates from 9" grade, divided by the number o f entrants in 7" grade. - Promotion rates from 7" to 8" grade and from 8" grade to 9" grade within each modality - Test scores o n 9" grade standardized tests. - Total costs (including costs to students, families, communities and government). 0 The following information w i l l be collected at the community level, as part o f the involvement of the Junta Escolar. - Gross enrollment rate in 7" grade, calculated as the number o f enrolled pupils in 7" grade, divided by the number o f 13-year olds in the community. - Net enrollment rate in 7" grade, calculated as the percentage o f 13-year olds in the community who are enrolled in 7" grade. 0 For the schools in group "C", w e do not have an integrated lower secondary level. For this reason, it will not be possible to follow the rate o f finalization or test achievements at the level of the original school. One proxy could be to ask the Junta Escolar to l i s t all o f the 13-year olds in the community, and calculate how many o f those children are enrolled in 7" grade, thus obtaining their net enrollment rate. Evaluation of Subcomponent 3.A Enhance school-based decision making and community participation. Output indicator 0 % o f school governments organized and trained (as o f originally planned targeted schools). 0 % o f schools with o w n planning and management o f resources (as o f originally planned targeted schools). Target recipients within the project 0 400 schools that will receive integrated primary. 0 400 new cooperative schools. The remaining schools in the country will receive an identical intervention, financed directly by the Ministry o f Education. Outcomes at the secondaty school level The outcome indicators are repetition and dropout rates at the lower secondary level. Since the intervention will be universal (applied in all lower secondary schools), the evaluation will consist o f a comparison o f the situation before and after, in the schools that are not affected by other components of the project. 64 Evaluation of Subcomponent 1.B Teacher Training and Development Reform The new pre-service teacher training modality will be centered o n training regarding didactic methods and pedagogy. No training will take place in the training regarding subject content. For this reason, the subject content o f the teachers will be the subject content that they acquired at the level o f Buchilleruto. W e will evaluate the change in subject content o f teachers by comparing: 0 The subject content test scored for students o f traditional pre-service teacher training programs (baseline 2006). 0 The subject content test scores for students who will enter the upgraded regional pre-service teacher training program (the new teacher training modality, under the ENM). 65 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 4: Detailed Project Description 1. Project development objective and key indicators The Objective o f the Education Quality and Secondary Education Project i s to improve access to a quality lower secondary education-especially for indigenous and low income non-indigenous students-through improved primary education completion rates for overage students and strengthened flexible lower secondary education modalities, scholarships/subsidies and school management. The success o f the project w i l l be measured by the following Project Development Outcome (PDO) Indicators (the Impact Evaluation w i l l compare 2006 baseline with the 2012 project impact data collection on beneficiary and control regions, schools and students): 0 9th Grade Expected Completion Rates; 0 Gross Enrollment rate in lower secondary education, grades 7-9; 0 Increased intake (access) in grade 7-in modalities supported by the Project; 0 Proportion o f overage students (13-15 year old) who complete primary education; and 0 6th Grade Gross Completion Rates. 2. Project components The proposed Project w i l l support three components with inter-dependent objectives: (i)Primary Education Completion and Quality, (ii) Lower Secondary Expansion and Quality, and (iii) School-Based Management focused o n Education Quality. Component 1. Primary Education Quality and Completion (US$7.7 Million) This component would support an integrated strategy for Basic Education (primary and lower secondary cycles) to increase primary education retention and completion o f overage students, and promote their continued education at the lower secondary education level. To contribute to long-term quality improvements in primary education, the component w i l l also support proposed reforms to the Pre-Service Teacher Training system. The two strategic sub-components follow: Subcomponent La. IntegratedPrimary and Lower Secondary Education Centers (US$3.2 million) Sector context and diagnostic summary. Although Guatemala has significantly improved primary education coverage, it only graduates on-time 27% o f enrolled cohorts. The low efficiency o f the system responds to (i) entry, (ii) late high repetition (especially in the lower grades), and (iii) high dropout rates (especially after 3rd grade). As a result, over 30% o f the primary education enrollment (more than 300,000 students) are at least two years overage. These students are at-risk o f dropping out before completing primary education-not only because o f the additional effort, time and resources needed, but also because the pedagogical and psychosocial environment in primary schools i s no longer pertinent for these adolescents and youth. Strategic Objective. Support overage students (1 1-15 year old) in primary schools finalize their primary education cycle and continue on to lower secondary schooling. The integrated Basic Education 66 strategy-unifying the primary and lower secondary education levels-will include pertinent pedagogical programs and an appropriate psycho-social environment for the overage student (at risk o f dropping out). Results Indicators. This sub-component's results will be measured by the following indicators, and will serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: 0 Standardized 6* grade test scores o f students in Accelerated Learning Program; 0 Decreased dropout rates o f overage students; 0 Proportion o f overage students in grade 1-6 in targeted regions. Implementation Strategy. The component w i l l provide eligible and interested schools with: (i) quality a accelerated program for students with 3 or more years o f overage, (ii) flexible lower secondary a education program-to be taught in the same school, (iii) training and support for the school principal and leadership, and (iv) a financial transfer to support school-defined activities. In turn, the school will commit to: (i) strengthen i t s teacher-parent school committee, (ii) prepare i t s School Improvement Plan w i t h strategies to guarantee on-time entry o f new students to pre-school and/or f i r s t grade, and (iii) to strengthen reading and writing abilities o f students enrolled in the first and second grades. This innovative program-to be initiated in 350 rural schools in Guatemala-will strengthen both long-term and short-term quality improvement to primary education and completion o f students at this level. As for the accelerated overage program, it w i l l implement a specific program targeted to youth at risk o f dropping out o f the primary education level: I t will include (i) student-centered pedagogical strategies, (ii) academic and applied learning, (iii) flexible promotion to guarantee school retention and secondary education transition, and (iv) on-going counseling for these students. T o guarantee an appropriate base for all students, the accelerated program i s part o f the integrated primary-lower secondary education strategy. Thus, the accelerated program-albeit a transitory intervention-will provide incentive for long-term improvement needs in primary schools (supported and financed by MINEDUC and other donors): (i) incentive for inclusion o f pre-school programs; (ii) reading and writing reinforcement in first grade, including support in mother languages in Indigenous Regions; and (iii) school planning and evaluation improvements. ) The following figure presents the proposed areas o f improvement focus in the Integrated Basic Education Centers: Figure 4.1 : Areas of improvement, Integrated Basic Education Centers E t%D ) S C: z E PRIMARY EDUCATION T One Year Accelerated r A R Y Complete Year of Program for Grades 3-4 3 Years Flexible Studies One Year Accelerated Secondary Basic Focus on Reading Program for Grades 5-6 Education (Grades and Writing 0 Bilingual ............................................................................................................................................................................ 1- I Up to 7 Year Accelerated Basic Education Program for i , 13-1 8 year old students with 3+ years o f overage i 67 Inputs and General Investments Categories. The Project w i l l finance (i) contextualization and validation o f international m e t h ~ d o l o g y ~ ~Accelerated Education Programs-pedagogical processes, teacher and for student materials, learning evaluation and promotion strategies, etc.; (ii) printing o f students and teacher materials; (iii)teacher training; (iv) learning and impact evaluations; and (v) infrastructure refurbishing, as needed. Subcomponent 1.b. Teacher Training and Development Reform (US$4.5 million): Sector context and diagnostic summary. The Ministry o f Education has begun a reform o f the Pre- service Training Program for Primary Education Teachers. The reform includes: (i) curricular improvements (both in terms o f content specialization and pedagogical process); (ii) structural reform a for a more in depth preparation o f teachers trained at the secondary level (grades 10-12), possibly including some post-secondary training (at least one additional year); and (iii) inclusion o f admission and graduation exams for the teaching training tracks. This sub-component w i l l develop and strengthen five regional teacher training centers (called Escuela Normal Modelo - ENM, Centro de Formacibn de Maestros). Strategic Objective. Strengthen five regional Pre-service Teacher Training Centers, w i t h upgraded curricula, study program for primary education teacher training, and specific focus o n pedagogical competencies and subject-knowledge pertinent to flexible modalities, rural areas and intercultural and bilingual education. Students will be identified from a pool o f high performance and highly motivated applicants. Results Indicators. This sub-component's results will be measured by the following indicators, and will serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: 0 Test Scores in Entering Exam for the Escuelas Normales Modelo (upgraded regional pre-service teacher training centers - ENM); 0 Test Scores in Exit Exam for the five regional Pre-Service Teacher Training Centers; 0 Increased availability o f teachers trained in ENM (upgraded pre-service training schools in rural and bilingual areas). Implementation Strategy. The five upgraded regional pre-service teacher training centers (ENM) will receive: (i)materials with improved curricular and pedagogical strategies and the new pre-service training study program; (ii) training for teacher trainers with support o f Faculties o f Education from Guatemalan major universities; (iii)applied and experiential student-centered pedagogy courses (including applied learning in the classroom-as teaching assistants); and (iv) specialized training for key areas demanded by the school system in Guatemala, especially in communities and regions w i t h the highest educational gaps (for example, specialization in pre-school, multigrade, rural, intercultural and bilingual education). Students in the regional upgraded regional pre-service teacher training centers, supported by the Project, w i l l be able to apply for scholarships (Becas Normales Modelo ) based o n academic excellence, socio- economic conditions, and ethnicity. These students will be eligible for scholarships, conditional on (i) admission tests; (ii) socio-economic and ethnic background; (iii)areas o f studies demanded and needed by the system (pre-school, rural education, bilingual and intercultural education, etc.); and (iv) commitment to apply for public teaching posts in regional and rural areas (if selected, a minimum service period in rural areas will be requested). 52For example Accelerated Education Programs have been developed and applied in Brazil, El Salvador, and Colombia. 68 Finally, instructors in the upgraded regional pre-service teacher training centers will also be able to apply for scholarship that w i l l finance needed specialization courses at the university level. Each center w i l l apply for these scholarships (Becas Catedrcitico Normales Modelo), through a diagnosis o f the education needs o f the region where they are located, and the type o f specialization required o f teachers to work in local schools. The scholarships will be allocated based also o n an integrated plan o f specialization o f a team o f instructors, rather than by individual instructor choice or need. Inputs and General Investments Categories. The subcomponent will finance: (i) technical assistance for the feasibility, design and operational plans; (ii) i i refurbishing or teacher training materials; ( i ) remodeling o f centers; and (iv) scholarships for students and instructors. Component 2. Access and Quality of Lower Secondary Education (US$51.2 million) This component would support integrated strategies to increase the quality and access to lower secondary education (grades 7-9). I t will include support for (i) curricular reform o f secondary education; (ii) the strengthening and expansion o f existing lower secondary education modalities; and (iii) strengthening education demand programs, such as scholarships and subsidies for enrollment, retention and graduation o f l o w income students. Subcomponent 2.a. Feasibility studies and strategies for upper secondary education curricula and evaluation systems (US$4.9 million) Sector context and diagnostic summary. The Ministry o f Education (supported by other donors) i s advancing sector-wide efforts to reform the secondary education curricula, including the definition o f an integrated standards-based curriculum, improved evaluation systems, and proposal for secondary teacher training. The curricular reform, by nature, must be done from a sector-approach and integrated among each sub-sector level. The Project does not intend to finance the overall secondary education reform in each o f the education levels and tracks. It does intend to support the integrated secondary education curricular analysis-and proposals-which will guide the medium and longer-term reforms in this education level. I t i s expected that specific lower secondary education modalities strengthened by this Project will also permeate the longer term secondary education reform proposals, and vice-versa. Strategic Objective. Support on-going feasibility studies for the curricular reforms for the secondary education level, including both general and technical tracks. Results Indicators. This sub-component's results w i l l be measured by the following indicators, and will serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: e Developed new curriculum materials for schools and guides for teacher; e % o f Project-supported schools receiving new curricular orientations and materials. Implementation Strategy. The feasibility studies and proposal definition will be based o n a participatory mechanism to include teachers and principals o f secondary schools, universities, think tanks and foundations interested in secondary education, as well as businesses and corporations. For technical education, the curricular reform proposal will be defined by a network o f stakeholders (public-private sector) and "action research"53 studies in 5 existing technical schools in the country. Lessons from these applied studies w i l l be integrated into the proposed curricular reform. ~~ 53Action research, as a study methodology, attempts to combine traditional "documentation based" studies with lessons learned from "in situ" situations and preliminary impact o f initial operational reforms. 69 Inputs and General Investments Categories. This sub-component w i l l finance technical assistance, sector and feasibility studies, and strategic designs and operational proposals. Subcomponent 2.b. Strengthening and Expansion of Pertinent and Flexible Modalities for Lower Secondary Education (US$43.8 million) Sector context and diagnostic summary. The two largest lower secondary education modalities for the rural sector in Guatemala are: Telesecundariu (Video-supported teaching) and Alternancia (semi-distance modality that alternates students between school and community learning). Both modalities were initiated in Guatemala over 15 years ago, with support from other countries where the models were developed: Mexico, France, Belgium and Brazil. However, these modalities must be strengthened in terms o f i t s pedagogical methods, curricular content, and integration with the school-management strategies o f the country. A cost-effectiveness evaluation-supported by the Project-will provide evidence o f the strengthening process and the feasibility o f further expansion. Some o f the lower secondary education modalities in Guatemala-such as NUFED (Nhcleos Familiares Educativos - Family and Community-Based Education Centers)-have experienced a massive expansion in recent years, but require a detailed review o f their methodology, teacher and student materials, teacher training, and learning evaluation. Other modalities-such as Telesecundaria (Developed in Mexico) and Sistema de Aprendizuje Tutorial, SAT (a Tutorial Learning System Developed in Colombia)-require contextualizing to local curricula, culture, geography and history (for example in the social subjects). The P E M E M schools-initiated in 1973 as experimental institutes to combine academic lower secondary education curricula with occupational orientation-have not been updated to reflect modern international lessons learned and proposals for technical education. Guatemala seeks to evaluate and strengthen these modalities before further expansion. For on-going sustainability and capacity building, the sub-component strengthens and optimizes existing programs supported by the Government and other donors. Large capital investments are also minimized through the utilization o f existing school infrastructure financed b y MINEDUC, municipalities and community education stakeholders. Strategic Objective. Support the evaluation, strengthening and expansion o f existing lower secondary education modalities (grades 7-9), pertinent for rural and indigenous communities; and increase access to rural lower secondary education to approximately 90,000 new students, using existing capacity and school infrastructure. Results Indicators. This sub-component's results w i l l be measured by the following indicators, and w i l l serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: 0 Accreditation o f Lower Education Modalities Evaluations based on Results o f Evaluation and Strengthening Process; 0 Number o f new Lower Secondary schools and new student places expanded through quality accredited modalities; 0 % o f new students from low income quintiles (1 & 2) and ethnic backgrounds. Implementation Strategy. The sub-component w i l l evaluate and strengthen the following two existing pedagogical modalities: (i) telesecundaria (a TV-Video supported strategy)---presently offered in more than 500 schools, and reaching over 35,000 students; (ii) "Alternancia" Programs (combination o f school- community strategies, with theoretical application o f learning in rural contextst-presently offered in 550 schools, and reaching 17,000 students. The sub-component w i l l provide technical assistance and financial resources to strengthen the following elements o f both methodologies: (i) curricular content delivery strategies; (ii)pedagogical methods to 70 i ididactic and educational guarantee teacher-student and student-student interaction in the classroom; ( i ) materials for students, teachers and classrooms; (iv) appropriate technology (for Telesecundaria and Computer equipment, rurality and basic services-such as electricity-will be assessed); (v) extracunicular and community-school strategies to provide applied learning and school-to-work transition; and (vi) evaluation strategies. Once these pedagogical models are strengthened, 90,000 rural school places in lower secondary education will be expanded. Thirty thousand new places will be provided through the addition o f a lower secondary cycle in the Integrated Basic Education Centers, presented in Subcomponent 1.A, above. The additional 60,000 new school places will be increased as follows: (i) 36,000 new places in cooperative schools (existing modality financed by the Central Government, the Municipality, and a community cooperative); (ii)16,000 new places by optimizing idle capacity in existing lower secondary schools (INEB, Institutos Nacionales de Educacidn Bbsica); and (iii) 8,000 new school places with strategic alliances with education NGOs and Foundations that provide lower secondary education services in the rural sector.54 Lower secondary schools supporting increased enrollment o f new students from rural, l o w income and indigenous targeted groups will receive a "New Student Access Subsidy", o n a annual per-student basis. The subsidy will finance the incremental costs o f new students, and will be used to purchase educational materials, refurbishing o f classrooms, equipment, and school furniture. For the Integrated Basic Education Centers, MINEDUC will allocate additional teachers as needed. Cooperative Schools contract additional teachers directly, and the grant supports partially the per-student incremental costs for human resources, in the traditional financing formula for Cooperative schools: 33% municipal funds, 33% cooperative-raised funds, and 33% MINEDUC funds (for targeted schools, the M I N E D U C contribution will be financed by the Project). The complementary 8,000 school places through alliances with NGOs are also a strategy to increase implementation capacity in the sector. NGOs already support different education services in Guatemala; the Project w i l l only norm and systematize the MINEDUC-NGO strategic alliances. Provision o f "school access subsidies'' for NGO-run schools will be standardized based o n the following criteria: (i)a per-student cost for a basket o f quality education inputs to be provided annually by the NGO (education i) materials, transportation, meals, etc.); and ( ia prorated amount to complement incremental costs (due to increased access from traditionally excluded students) for teachers, infrastructure maintenance, equipment, and other educational inputs. Eligible NGOs will also be accredited based o n a set o f indicators determining the quality and efficiency o f teachers, methodological strategies, congruence with the National Curriculum, and contextualization to specific cultural and ethnic backgrounds o f the community to be served. 54 The final number o f new students by modality may vary during project implementation, based on efficiency, effectiveness and demand o f each modality. 71 Table 4.1: Project Interventions to Strengthen Strategic Alliances between MINEDUC and NGOs Lower 8.- Standardization of MOE Subsidies Program: The subcomponent will standardized, Secondary modernized and strengthen the legal, administrative, costing and monitoring mechanisms Education for the subsidies program, as well as guarantee clear strategies to certify the quality, Expansion pertinence and cost-efficiency o f non-governmental education service providers. and b- School Access Subsidies for Lower Secondary Education Through NGO-run Alliances Education Programs: Subsidies are already provided to non-governmental education with NGO service providers, which serve underserved youth in rural and urban areas (both Sector. indigenous and non-indigenous poor)-such as Fe y Alegriu, Ak'tenumi (a SAT-based program for Mayan students), and Don Bosco (education services supported by the Catholic church). The sub-component will support a number o f low-income, indigenous and traditionally excluded youth to continue their secondary education in school services provided by NGOs and Foundations. In general the criteria for eligible NGOs and Foundations to receive project-supported eligible students will include: (i) not-for-profit; ( ievaluated education quality; and (iii) i) pertinent local and community-based programs, contextualized to cultural and social needs. T o summarize, the following tables present the proposed student access increments-supported by the Project-by each modality (table 4.2a) and the expected income in terms o f national Gross Enrollment Rates (table 4.3b). Table 4.2a: Expected Incremen Lower Secondary Educ Lower Secondary 2005 Baseline Increment Targets Education B y 2012 Modalities to be Number Students YOof Total Total Overall YO Expanded by the of Enrolled Overall Number of Students Increment Project Schools Secondary Schools Enrolled in Student Education Expected Enrollment Enrollment from (4743 85) Baseline (2005- 2012) Telesecundaria 43 1 29.3 11 6% 884 68,000 143% Alternancia 520 15,600 3% 834 43,600 135% INEB (traditional 269 100,500 21% 116,500 1.16% modality) NGOs Based n.a n.a n.a n.a + 8,000 TOTAL 82,511 162,200 94% 72 Table 4.2b: Expected Increment in Students, enrollment and GER Students Nr o f 12-15 enrolled all ages year olds without project Difference (projections (projections from Total number Gross with 2% w i t h 2% growth project (see enrolled with enrollment Year growth rate) rate) below) project rate 2005 904,100 474,500 0 474,500 52% 2006 922,182 483,990 0 483,990 52% 2007 940,626 493,670 0 493,670 52% 2008 959,438 503,543 17,250 520,793 54% 2009 978,627 513,614 5 1,750 565,364 58% 2010 998,199 523,886 86,250 610,136 61% 201 1 1,018,163 534,364 103,500 637,864 63% Source: Christel Vermeersch, INE data Subcomponent Inputs and General Investments Categories. Financing to support expansion w i l l include: N e w Student Access Subsidies to support financing o f existing schools refurbishinghemodeling, learning resources and materials, and expansion o f technology and laboratories; contracting and reorganizing teaching human resources; and school management support (mainly through support in the elaboration, implementation and monitoring o f school improvement plans: see Component 3 .A). Subcomponent 2.c. Education Demand Scholarships for Low Income Students (US$2.5 million) Sector context and diagnostic summary. A large number o f scholarships are already implemented in Guatemala-with support o f Government and other donors, including the Bank. The country seeks to strengthen these existing scholarships programs, to improve their effectiveness on defraying direct family and opportunity costs o f continuing lower secondary education, especially for l o w income, and rural families and for working youth. The scholarship system requires: (i) improved targeting system, (ii) an a unified code to avoid duplication o f scholarships or exclusion errors (not reaching the correct beneficiary), and (iii) appropriate and institutionally simple system to monitor school performance o f an beneficiaries. Strategic Objective. The sub-component will increase the education demand o f adolescents and youth from poor income families and Indigenous populations in Project targeted areas. In addition to providing scholarships-conditioned o n lower secondary promotion, performance and completion-to eligible students in schools supported by the Project, the sub-component will support the sector-wide strategy o f improving scholarship targeting and monitoring systems. Results Indicators. This sub-component's results w i l l be measured by the following indicators, and w i l l serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: e Standardization o f scholarships targeting and monitoring procedures; e Region, income level, gender and ethnicity o f scholarship beneficiaries; e Indicators o f success o f beneficiaries: on-time enrollment, promotion, learning, and grade and full lower secondary education cycle completion. Implementation Strategy. The first phase o f implementation will systematize and strengthen the identification and selection o f beneficiaries, the administrative and costing structures and mechanisms, 73 and the monitoring and evaluation o f existing scholarships and subsidies program. This effort w i l l be done in coordination with other education offices and donors that support scholarship programs. The Education Sector already finances a series o f scholarships targeting: (i) primary education students (by gender, income and ethnicity), (ii)academic excellence performance, (iii) contributions to a basket of and educational materials and/or transportation. A l i s t o f existing scholarships i s presented in Annex 6 (under Implementation Arrangements for this sub-component). Specifically, the component w i l l provide education demand support for lower secondary education, which i s not systematically supported yet. Approximately 5,500 students from low socio-economic and indigenous communities w i l l receive scholarships (Becas de Ciclo Bbsico) to complete three years o f lower-secondary education. These scholarships w i l l be conditional on promotion and completion o f the il f l basic education cycle. The scholarships w i l l be allocated using information on educational gaps between municipalities, and using school government and communities to identify and monitor eligible students (more detail implementation arrangements are presented in h e x 6). The table below summarizes the focus o f the two strategies to be financed in support o f education demand o f low income and traditionally excluded students: Table 4.3: Education Demand Support Programs to be Strengthened b y the Project Scholarships 8.- Standardization of MOE Scholarship Program: including identification and selection of participants and administrative, monitoring and evaluation systems. Various scholarships programs have been managed by the MOE (Beca para la Niiia, Beca para la Paz, Beca de la Excelencia); however a standardized system s t i l l needs to be developed and strengthened. b.- Lower Secondary Scholarships (Becas de Ciclo Bdsico) for L o w Income and Traditionally Excluded Student based on Ethnicity, Gender, and Situation of Risk. The scholarships w i l l defray the family direct and opportunity costs for enrolment, maintenance and graduation o f children and youth in lower secondary education. The primary education scholarships w i l l be targeted to 6" grade graduates as incentive for enrollment in 7" grade. The lower secondary education scholarships w i l l be conditional on enrollment, il promotion, learning, and graduation o f the f l cycle (grades 7-9). Inputs and General Investments Categories. Financing w i l l include: technical assistance to develop the identification, targeting and monitoring system; scholarships for eligible students, and monitoring and evaluation studies o f impact o f the demand support program. 74 Component 3. School Management in Support of Education Quality (US$21 million) This component w i l l advance the lessons learned on school management strategies implemented at the primary school level through the last decade in Guatemala.55 The focus w i l l be on increasing the contributions o f school-based management to the quality o f learning. Also, the supportive and supervisory role o f Education Departmental Offices (DDE, Direcciones Departamentales de Educacidn) w i l l be strengthened by improving their decentralized functions in pedagogical technical assistance, school planning, result evaluation support and supervision, and administrative procedures. Subcomponent 3.a. Consolidation and Strengthening of School-Based Management for Education Quality (US$16.2 million) Sector context and diagnostic summary. Guatemala seeks to support the consolidation and modernization o f school-based management in the c o u n t d 6 . School boards or education committees have increased their decision making in allocation o f school resources, and receive financial grants and implement specific programs (such as school feeding, infrastructure maintenance and scholarships). Based on the New Education Management Model-at the school level-the schools supported by the Project w i l l received support to: (i) strengthen school and parental organizations in the lower secondary education level, (ii) have available tools and training to plan school improvement activities, and (iii) access an integrated information system that not only collects data but which returns this information for use at the school level. Strategic Objective. Strengthen lower secondary schools supported by the Project to improve school organization (of parents, teachers and principal) and utilize education outcome information provided in school report cards to plan simple school-based strategies to improve teaching and learning o f their children. Results Indicators. This sub-component's results w i l l be measured by the following indicators, and w i l l serve as well as intermediate outputs to monitor progress towards the Project Development Objectives: 0 % o f School governments organized and trained (as o f originally planned targeted schools); 0 % o f schools with own planning and management o f resources (as o f originally planned targeted schools). Implementation Strategy. The sub-component w i l l provide technical assistance and school tools and support to: (i) evaluate and expand the on-going upgrades to the School Management System; (ii) organize andor strengthen school boards and education committees; (iii) prepare school improvement plans; and (iv) support school use o f report cards-which provide school level information on school enrollment (per grade, age, gender and ethnicity), efficiency (retention, promotion and completion), and quality (standardized testing). The sub-component w i l l support approximately 1,500 schools, including: 350 (i) Integrated Basic Education Centers (primary schools integrated with a lower secondary education modality); (ii) 400 new Cooperative schools (Institutos por Cooperativa) providing lower secondary education (these schools are created through the existing strategic alliance o f the Ministry o f Education, municipalities, and local cooperatives); and (iii) traditional secondary education institutes (INEB). 250 55 The experience o f Guatemala with School-Based Management to date has included: (i) creation o f school and parental committees; (ii) transfer o f financial resources for school operating costs (including payment o f teachers in PRONADE schoolss5);and (iii) collection o f data on school attendance, repetition, dropouts, promotion and completion. s6 School governments or community education committees were initially developed through PRONADE, and more recently institutionalized in all public primary schools through the Juntas Escolures (School Boards). 75 The subcomponent will be implemented sequentially: (i) Departmental Education Departments and NGOs w i l l provide organization assistance and training o f school governments (including training o n community participation, school planning and fiduciary management); (ii) with motivated and organized school committees, the schools will prepare a simple school improvement plan (PE- Proyecto Escolar), defining mid-term goals and short-term activities to improve learning; and (iii) component will the provide some seed financial resources (School Improvement Grant) as incentives for P E implementation (the Grant will not necessarily fully finance the PE). The formula for t h i s incentive includes number o f children and rural level o f each school. In average, participating school governments will receive approximately US$680 dollars annually, up to five times during the period o f project implementation. Details o f the following three key areas to be strengthened are presented next: School Organization, School Planning, and School Results Report Card: School Organization. Most Guatemalan primary schools have school governments with participation o f parents and the community. These school-based organizations will be strengthened and provided clear guidelines for their important role in school development. At the secondary education level, appropriate school-based organizations need to be developed and strengthened. See table below for the different school management modalities existent in Guatemalan schools. ble 4.4: Various vernment Structures y Education Lev anagement Modalities Type of School Traditional Community-Based NCWFoundation Management Modality Integrated Basic Juntas Escolares (School ComitB de Autogestion Educativa, Education Centers Boards) COEDUCA (Parent-Run School Committee) Lower Secondary Consejos Educativos del 0 Cooperativa Educativa Education Nivel Medio (Community Cooperative for Modalities (New School Government Secondary Education Schools with Structure Developed for Municipal and M O E co-financing) Secondary Education Schools) NGO-Run Schools School Governance Differs by N G O All school, irrespective o f pedagogical modality or education level, w i l l receive a School Report, and w i l l prepare and execute their own School Improvement Plan (PE) Planning and Implementation. T o support school decision making and decentralized action, a simple tool for planning will be proposed and utilized at the basis for financial transfers to schools. The School Improvement Plan (or PE) will present the agreed goals o f teachers, parents and principals and will help the education teams implement those activities through the year, supported by public financial transfers at the school and departmental level. 76 School Report Card. M I N E D U C has initiated census-based standardized testing in 3rd, 6'h and gthgrade. Through a school report card, M I N E D U C will return information o n test results-in addition to data collected o n associated factors to learning-to each school, grade and students. This information will be used to assess the strengths and weaknesses found in learning in each school, and plan improvement strategies accordingly. The following table presents a summary o f the different school management strengthening activities to be financed by the sub component: Table 4.5: Implementation Activities to Strengthen School Management Capacity School Government Organization 0 Technical assistance and support for creation andor strengthening o f their respective school government structure (Initially targeted to regions with l o w education results: IRE 1 and 2). 0 Design, publish and train school staff o n the supportive manuals for school organization and competencies, with simple and straightforward language and presentation. School Improvement Planning 0 Technical assistance for the planning process at the school level and formulation o f the school improvement plan (PE). 0 Design financial transfer system and provide seed resources for the implementation o f P E in Project-supported schools. 0 Follow up and monitoring o f P E implementation. School Directorate and Pedagogical Team 0 Support strategies to guarantee availability o f school director (or a director for various single teacher schools) and training on pedagogical and school management leadership. 0 Support and training for the consolidation o f a pedagogical team, between the school director and teachers, including strategies for performance evaluation and continuous improvement, School Outcomes and Report Cards 0 Provide schools with a simple and user-friendly report card w i t h education outcomes o f schools, grades and students, including feedback on standardized test scores for 3rd, 6" and 9" grade. Support Systems 0 Support (i) School-level information management systems; (ii) Financial Transfers; (iii) technical assistance for school-level fiduciary administration; and (iv) equipment (hardware and software), as needed. Inputs and General Investments Categories. The subcomponent will finance: (i) the legal and organizational conformation; (ii) strengthening and training o f school governments, based o n each education level and pedagogical modality; (iii) design, validation and training in school planning and w i t h simple instruments to facilitate the preparation o f a PE; (iv) strengthening and contributions (on a declining basis) o f financial transfers (grants) to schools to support implementation o f their PES; (v) training and support for school directorates (principals) and pedagogical teams (teachers); and (vi) decentralization o f information, monitoring and administrative tools supportive o f school management and decision making. 77 Subcomponent 3.b. Consolidation and Strengthening of Departmental and District Supervision and Technical Assistance to Schools (US$4.8 million) Sector context and diagnostic summary. Since the Peace Accords o f 1996, Guatemala initiated a process to: (i)decentralize its education system across central, departmental, school and community (including indigenous and rural) management levels; (ii) improve its Management Information Systems; and (iii) modernize Human Resources administration. As part o f the decentralization and modernization goals of the Education Sector, in 1998 Guatemala created the 22 departmental education offices (regional division). These offices have delegated authority in the areas o f school administration, human resources management, and monitoring school construction. To support school decision making and improved performance, Departmental and District offices need to strengthen their capacity to provide technical assistance and supervision in terms o f pedagogical processes in the classroom and school management. Strategic Objective. Strengthen the capacity o f sub-regional education offices (departmental and district) to improve the quality o f their school technical assistance and supervision in pedagogical and management processes. Results Indicators. This sub-component's results will be measured by the following indicator, and w i l l serve as well as intermediate output to monitor progress towards the Project Development Objectives: 0 Compare number o f following processes between targeted and not targeted Departmental Education Office (DDEs): o Teaching Staff Payroll and Administrative Supervision; o Targeting, allocation and monitoring o f scholarships; o School Management training and technical assistance offered to principals, teachers and school government. Implementation Strategy. The subcomponent w i l l benefit the 10 Education Departmental Offices5' directly responsible for the schools targeted by the Project. The strengthening program includes: (i) improved strategies, instruments and knowledge to support the Project-supported pedagogical models (telesecundaria and alternuncia) and the school management models (school boards, education i) committees, cooperative alliances); ( i improved DDE knowledge and involvement in preparation o f school improvement plans; and ( i ) i icollection o f school education outcomes and utilization o f report cards. A t the national level, the sub-component w i l l support upgrades to the school supervision system. The sub-component w i l l also contribute-with training and materials-to strengthen the decentralized administrative functions at the departmental level (human resources, planning, and fiduciary management). Especially, training, technical assistance and systems w i l l be provided to support the human resources management processes that have already been decentralized at the regional level. In targeted Departments, the internal organizational structure o f DDEs w i l l be reviewed. K e y teams w i l l receive specific training and technical assistance, especially: (i) Pedagogical Teams responsible for the technical assistance, training and standardized testing (including local offices o f the Education Quality, Bilingual and Intercultural Education, and Evaluation units); (ii) Management and Administrative the Teams responsible for financial transfers to schools (School Improvement Grants, New Students Access Grants, and Scholarships); (iii)coordination o f school access and expansion inputs (mainly infrastructure 57 Although the Project w i l l focus only in 10 DDEs, it i s expected that the materials and training designs prepared for these departmental offices w i l l contribute to the replication in other not targeted DDEs. 78 refurbishing and teaching human resources); and (vi) supervision teams which provide direct technical assistance and support at the school level. In line with the Result-Based Management policy o f MINEDUC, DDEs will participate in and benefit from the result monitoring and impact evaluation o f the Project, which will be financed from this sub- component. The impact evaluation uses the rich school and education sector data available in the sector (supported by previously Bank-financed projects and by other donors), and will monitor improvements in project-targeted schools and will evaluate the impact o f the pedagogical and institutional investments (see Annex 3 o f t h i s PAD). The M I N E D U C has already modernized certain decentralized systems at the DDE level. However, the sub-component will continue to support strengthening capacity in these areas, by financing on-going training. The following table presents areas where training will be provided during the 6 years o f project implementation. Table 4.6, below, summarizes the training areas to be supported for DDE staff. Pedagogical and School Management Assistance 0 Staff Training on: (i) Pedagogical Competencies, ( iIntercultural and Bilingual Pedagogy, (iii) i) Technical Assistance and Support to Schools; 0 In-situ training for district staff on school management support and supervision, as well as monitoring o f implementation o f school improvement plans (PE). Administrative Modernization 0 Technical Assistance and Training o n Planning, Monitoring and Evaluation; 0 Administrative training and tools for education infrastructure planning at the departmental level; 0 Technical assistance and modernized tools for human resources management (recruiting, selection, induction, training and performance evaluation); 0 Technical Assistance and training o n budgeting, financial management, procurement and accountability; 0 Improved information systems-and equipment (hardware and software) as needed. The above-training areas include administrative systems that have been modernized during the last 5 years in Guatemala. The sub-component does not reform or strengthens all these systems (the MOE and other donors have supported and are supporting the general institutional reforms), but only provides resources for training and in-situ technical assistance in key areas. Table 4.7, below, present the modernization efforts being financed by the Government and other donors at the departmental level (DDEs): 79 System Areas for Strengthening Result-based Operational and budget planning based on results and outcomes; Management Monitoring and evaluation o f expected pedagogical and management outcomes; and e Information systems available for diagnosis, planning, and monitoring. Human e Protocol o f competencies and functions across institutional levels (center, departments, districts and Resource schools); Management Standardization o f human resources management processes at the central and departmental levels; e Information and administration systems to support in-service and pre-service training and developed teaching competencies; and 0 Incentives and performance evaluation systems for staff. Fiduciary Systems and Procedures Management e Procedures and Systems for Fiduciary Management (financial and procurement) and for fiduciary integration with budget and planning; e Efficient administrative and internal controls for quality control and continuous improvement; Organizational Structures and Teams e Strengthened Procurement Department and Standardized Tools and Training; e Revision and updating o f manuals, procurement instruments and instruments for international and national procurement o f goods, services and works. e Information systems for procurement and financial management (integrated with national systems, such as SIAFI); eSupport in norms and procedures for specialized procurement in the education sector: textbooks, educational software, school construction, etc. Country-Systems (including administration of external funds) e Improved country financial and procurement guidelines; 0 Gradual Administrative Harmonization for management o f external funds; Institutionalized and integrated fiduciary management structures (incorporation o f PROJECT IMPLEMENTATION UNITSinto Administrative Department o f line Ministry). Impact Evaluation and Monitoring Strategy In line with the Result-Based Management policy o f the Government (MINEDUC, SEGEPLAN, and Ministry o f Finance), DDEs will participate in, and benefit from, the result monitoring and impact evaluation o f the Project -which will be financed from this sub-component. The impact evaluation uses the rich school and education sector data available (supported by previously Bank-financed projects and by other donors), and w i l l monitor improvements in project-targeted schools and w i l l evaluate the impact o f the pedagogical and institutional investments (see section below). Project Design has included strong emphasis o n Impact Evaluation to confirm the results o f the key programs supported by the Project, in line with the Result-Based mandates o f MINEDUC, the Government executive and legislative branches, and Guatemala's civil society. The key programs to be evaluated (based on a contra-factual comparison: i.e., what would have happened without these investments) w i l l include: (i) integrated Basic Education Centers (primary and lower secondary the i) cycles), with support to overage students; ( ia cost-effectiveness analysis among the various secondary 80 education modalities supported by the Project (in comparison to traditional modalities); and (iii) the impact o f school management focused on learning quality. In turn, the Monitoring system will track the implementation o f the above mentioned strategies, to guarantee that the program i s implemented as expected. Implementation problems (lack o f inputs, slow implementation o f activities, interventions not reaching beneficiaries, etc.) affect impact evaluations, since the expected impact due to a correctly implemented intervention cannot be assessed. Working in unison, the impact evaluation and monitoring systems can both assess if the financed interventions are implemented as expected (process monitoring), are achieving the expected results (internal validity), and if the key Project interventions can be expanded in other regions o f Guatemala (external validity). h e x #3 o f this Project Appraisal Document presented the Project Results Framework (and i t s respective indicators and targets) and the summary o f the Project impact evaluation and monitoring design. Inputs and General Investments Categories. This sub-component will finance: technical assistance and training to Departmental and District staff responsible for support and supervision o f schools targeted by the Project. I t will also provide technology, equipment and h i t u r e to support and monitor the application o f the Management Systems at the departmental level. * *Expected Project implementation period is July 1,2007 to December 31,2013* (5.5 years net implementation period, 6 months operations launching and 6 months for closing). 81 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 5: Project Costs Table 5.1: IBRD Loan Alloc IBRD Amount YO f total loan o A. 1.0 Primary Education Completion and Quality 1.A Integrated Basic Education Centers 3.2 4.0 1.B Pre-Service Teacher Training Development 4.5 5.6 Subtotal 1.0 Primary Education Completion and Quality 7.7 9.6 B. 2.0 Access and Quality of Lower Secondary Education 2.A Feasibility Studies and Strategies for Upper Secondary Education curricula and evaluation systems 4.9 6.1 2.B Strengthening and Expansion o f Pertinent and Flexible Modalities 43.8 55.0 For Lower Secondary Education 2.C Education Demand Scholarships and Subsidies for L o w Income Students 2.5 3.1 Subtotal 2.0 Access and Quality of Lower Secondary Education 51.2 64.2 C. 3.0 School Management in Support of Education Quality 3 .A Consolidation and Strengthening o f School-Based Management For Education Quality 16.2 20.2 3 .B Consolidation and Strengthening o f Departmental Supervision And Technical Assistance to Schools 4.8 6.0 Subtotal 3.0 School Management in Support of Education Quality 21.0 26.2 TOTAL IBRD PROJECT LOAN 80.0 100.0 Note: Sum may be inexact due to rounding. 82 Suggested Allocation of L o a n Proceeds Loan YO total of Total Project Cost Project Amount costs Total Local Foreign 1. M i n o r works 2.0 2.5 2.0 1.2 0.8 2. Goods 11.5 14.4 13.0 7.9 5.1 3, Consulting Services 7.9 9.9 10.0 7.8 2.1 4. Non-consulting services 2.6 3.3 3.2 3.2 5. Training 8.8 11.0 9.3 7.8 1.5 6. Scholarships 2.8 3.5 8.1 8.1 7. Aschool Improvement Grants 8.5 10.6 8.5 8.5 8. School Access Subsidies 35.3 44.1 35.3 35.3 9. Teacher's Salary 10.0 10.0 10. Operational Costos 0.6 0.6 11.Not allocated Total 80.0 100.0 100.0 90.5 9.5 Loan amounts financed by IBRD 83 z '01F 0 0 0 8 ' 9 9 9 9 9 , I I I 0 0 0 0 0 8 3 0 8 T-l 0 9 q ' ' o w y y 1 3 CI o o o m 0 9 3 8 w o y 0 0 0 ' q 0 - 'hl T 0 ' 3 0 1 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 6: Implementation Arrangements The implementation arrangements for the Guatemala Education Quality and Secondary Expansion Project have been designed based o n (i) institutionalization and decentralization principles o f the education the management system o f Guatemala; (ii) specific implementation needs o f each strategy (component or the sub-component) supported by the Project; (iii) mechanisms for Project and IBRD loan coordination; the and (iv) the level o f capacity o f each o f the institutional levels and u n i t s responsible for implementing or overseeing project investments. Each o f these areas i s summarized below. The annex concludes with the recommendations o f the Institutional Capacity Assessment carried out during project preparation. 1. The DecentralizationPrinciples of the Education Management System of Guatemala Presently, the Government o f Guatemala seeks to further consolidate and institutionalize the decentralized and result-based education management strategies (MINEDUC calls this effort "Nuevo Modelo de Gesti6n"). The following table presents the over-arching guiding principles o f the Education Management model prepared by the Ministry o f Education o f Guatemala. Short-Term Focus Long-Term Strategic Vision Centralized with some decentralized programs Decentralized with Extensive Community Participation (for example, school feeding and scholarships) Unclear hnctions across education actors Clear Functions and Responsibilities o f Education Actors and Stakeholders Input-based Results-Based Schools without own explicit purpose Schools with their own school improvement plan L o w Performance Responsibility High performance responsibility with institutional and social accountability Bureaucratic patterns and activities Efficient service processes L o w utilizad information systems Effective information systems linking schools with departmental and national levels L o w Coordination Sector Guidance and Coordination Project-based improved education performance, Integrated sector-wide education performance, with targeted, equitable but not institutionalized, integrated nor and local-based goals sustainable L o w Cultural Pertinence and Deteriorated Internationally competitive education quality with cultural pertinence Education Quality Over the last decade, Guatemala has supported the decentralization o f education services, including strengthening the executing role o f Departmental Education Offices (22 offices throughout the country) and increased decision making o f school boards and committees. The Education Quality and Secondary Expansion Project will utilize these decentralization principles for i t s implementation arrangement, 86 providing-in its implementation arrangements-planning, implementation, financial and procurement activities at the Departmental and School levels. n I accordance with the decentralized setting o f the Guatemala education sector, financial and procurement arrangements will take into account Departmental level responsibilities and community-driven development strategies (through the responsibilities assigned to School Boards and School Committees). The following table presents the standard responsibilities and the fiduciary (financial management and procurement) processes involved: Table 6.2: Standard P n the Decentralization Institutional Setting r in Guatemala Ins Type of Fiduciary Processes Involved Ministry o f Design pedagogical and management models and Technical Assistance: Education, Central programs. IndividuaVFirms, National and Level ( M h E D U C ) Design or select specialized educational materials for International. principals, teachers and students. 0 International Procurement o f Goods 0 Design or select manuals or other normative materials for (e.g., computer equipment and managerial staff at the Central, Departmental and School vehicles) . Levels. e Large procurement o f specialized Assign the departmental allocation o f grants and materials and printing. scholarships based on equity criteria. 0 Carry out national monitoring and impact evaluation o f education services. Departmental Implement training programs at the regional, departmental e Training Budgets, including Education Offices and school clusters level. logistics, accommodations, meals, 0 Supervise Education Services at the School Level. and hiring facilitation. 0 Form selection committees for selection o f scholarship Supervision budgets, including beneficiaries at the departmental level. operating costs and mobilization o f Transfer grants to the school level (Including School personnel. Improvement Plan Incentives; Transfers for Cooperative 0 School-Based and Scholarship Schools; Scholarships; and other school scholarship or Transfers. subsidies). Procurement o f Small Contracts 0 Purchase o f small goods, such as paper and office supply, (shopping or three quotations). and furniture. Municipality 0 Provides 113 financing o f Cooperative Schools budget. Management o f Municipal Resources (not Project fin.). School Board and Implementation o f School Improvement Plan (PE) and Committees financial grants provided for PE. (Juntas ~ ~ e Cooperative schools manage transfer~ MINEDUC, ~ ~ l by ~ ~ ~ , COEDUCAS, Municipality, and Parental Contributions. Cooperatives) e Monitoring of grantees of scholarships enrolled in schools. 5 Regional Teacher Pre-Training Schools (ENM) manage scholarships/training grants and infrastructure refurbishment contracts. NGOs/Foundations Accredited NGOs Provide Lower Secondary Education School Place Subsidies (based on Services in Rural Areas. standard costs o f education inmts). n I general, the financing mechanisms for (i) school-level and NGOs subsidies for increased lower secondary education access; (ii) scholarships for l o w income and traditionally excluded students (e.g., working youth); and (iii)small financial incentives to support schools prepare and implement school 87 improvement activities, w i l l utilize existing decentralized and school-based management mechanisms in Guatemala. The following table presents these decentralized financial mechanisms, the implementation level (within the existing management structure o f the education sector), allocation formulas and institutions responsible for oversight and supervision: Community-DrivenDevelopment Strategy Financing Type Implementation Allocation Formula Oversight and Level Supervision Unit Unit cost School School Access Government StudentNear Approx. 0 MINEDUC allocates Subsidy (Junta, US$lSO per capita input cost COEDUCA, (does not o f new students in Cooperativa) include teacher DDE Budget salary) * 0 Oversees Non-Profit N G O StudentNear Approx. US$ departmental school 200 access/ enrollment (includes planning teacher salary) 0 DDE orders * disbursement and Supervises Head o f StudentNear Approx 0 MINEDUC allocates Student HouseholdAdult- US$450 in DDE Budget Scholarships age Student (includes 0 Municipal transportation Committee and DDE costs and Select Beneficiary incentive for 0 School Supervises working Conditions youth) School SchoolNear Approx. 0 DDE Supervises School Government US$1,500 preparation o f PE Improvement (Junta, (to be used for and Provides List o f Grant COEDUCA, small school Eligible Expenditures Cooperativa) expenditures- for Grant based on an eligible list) *based on a standard basket o f educational and school inputs per an additional new student place. 88 2. Project and Component-Specific Implementation Arrangements Section I1 o f this annex will present the specific implementation arrangements (including central, departmental and school and responsibilities in project management and investments) aggregated for each o f the Project components or sub-components. Subcomponent 1.a. Integrated Basic Education Centers. The Sub-component will provide eligible and interested schools (i) quality accelerated program for students with 3 or more years o f overage, (ii) a a flexible lower secondary education program-to be taught in the same school, (iii) training and support for the school principal and leadership, and (iv) a financial transfer to support school-defined activities. In turn, the school will commit to: (a) strengthen i t s teacher-parent school committee, (b) prepare i t s school improvement plan with strategies to guarantee o n time entry o f new students to pre-school andor first grade, and (c) to strengthen reading and writing abilities o f students enrolled in the first and second grades. This innovative program-to be initiated in 350-400 rural schools in Guatemala-will strengthen both long-term and short-term quality improvement to primary education completion. The type o f fiduciary categories for t h i s sub-component include: (i) technical assistance for design o f programs, materials and training modules; (ii) printing o f materials for principals, teachers, students and School Boards; (iii) operating costs for supervision and technical assistance at the school level; and (iv) training inputs, such as logistical support, facilitators, and mobilization and other costs o f trainees. The following table presents the implementation arrangements for t h i s strategy by each institutional level, when applies. Ministry of Education- Designs for (i) Integrated Contracts Technical Central Level Basic Centers, (ii) Assistance: Accelerated Learning internationalhational local Program; (iii) School individuaVfirms. Principal Norm, and (iv) Large contracts for printing o f Education Quality Programs. educational materials. Designs Materials for Principals, Teachers, and Students. Design o f training modules. Monitoring and Impact Evaluation o f Subcomponent. 89 Education Departmental Train Principals, Teachers and 0 Selection and Hiring of - Offices School Boards on Integrated Training Facilitators. Centers and Accelerated 0 Procurement and contracting Program. with hotels and training e Reproduce training and centers for training events. communication materials. Management o f operating e Supervise and in-situ costs for mobilization o f technical assistance to supervision and technical schools. assistance visits to schools (per-diem, gasoline, hotel, etc.). 0 Small printing o f materials for training and other communication purposes. School Committees e Prepare school improvement 0 Receive school grants as plans (PE) and manage their incentives to implement PE implementation. * (approximately transfers of US$800 annually). The grant does not finance the entire PE; i t i s just a small incentive to launch it. *will be allocated as part o f subcomponent 3.A, below. Subcomponent 1.b. Pre- Service Teacher Training and Development. Five regional pre-service teacher training centers, ENM, will be supported with: (i) materials with the improved curricular and pedagogical strategies and new study program; (ii) training for teacher trainers with support o f Faculties o f Education from Guatemalan major universities; (iii) applied and experiential student-centered pedagogy courses (including applied learning in the classroom-as teaching assistants); and (iv) specialized training for key areas demanded by the school system in Guatemala, and especially in communities and regions with most education gaps (for example, specialization in each o f the following areas: pre-school, multigrade, rural, intercultural and bilingual education). Students w i l l be able to apply for scholarships based o n excellence, socio-economic status, and ethnicity. These scholarships will be conditional on (i) attendance and promotion, (ii) learning (minimum test scores), and (iii) commitment to apply to post in the regions with most education needs. The following table presents the implementation arrangements for t h i s strategy by each institutional level, when applies. 90 Level Ministry o f Education e Designs o f (i) ENM curricula Contract Technical and study program; (ii) Assistance: student profile and admission internationahational local i ientry and selection; ( i ) individual/firms. graduation exam; and (iv) e Large contracts for printing o f teacher training. educational materials. Designs Materials for e Purchase o f computer Principals, Teachers, and equipment and vehicles. Students. Monitoring and Impact Evaluation o f Subcomponent. Education Departmental Offices Supervise and in-situ e Management o f operating technical assistance to ENM. costs for mobilization o f supervision and technical assistance visits to schools (per-diem, gasoline, hotel, etc.) e Small printing o f materials for training and other communication purposes. Escuela Normal Modelo e Manage refurbishment and M a y manage national maintenance o f centers competitive bidding for (painting, bathrooms fixtures, school furniture; or shopping floors, woodwork, etc.) for small contracts locally. Purchase school furniture. Subcomponent 2.a. Feasibility studies and strategies for upper secondary education curricula and evaluation systems. The curricular reform, by nature, must be a sectorial approach and integrated among each sub-sector level. However, this sub-component does not intend to support the overall reform in each o f the education levels and tracks. I t does intend to support the integrated secondary education curricular analysis-and yield proposals-which will guide the medium and longer-term reforms in this education level. I t i s expected the specific lower secondary education modalities strengthened by this Project w i l l also permeate this longer term secondary education reform proposals, and vice-versa. The following table presents the implementation arrangements for this strategy by each institutional level, when applies. 91 Ministryo f Education Studies and Designs o f (i) Contracts Technical Secondary Education Assistance: Curricula Reform; (ii) internationalhational local Evaluation and Quality individuallfirms. Control; student profile and admission selection; (iii) Action Research for Technical Tracks; (iv) teacher and student materials; and (v) secondary education teacher training reforms. Subcomponent 2.b. Strengthening and Expansion of Pertinent and Flexible Modalities for Lower Secondary Education. Rural pedagogical models w i l l be strengthened and access for 90,000 rural school places in lower secondary education w i l l be expanded. 30,000 new places w i l l be provided through the addition o f lower secondary cycle in the Integrated Basic Education Centers, presented in Subcomponent 1.A, above. The additional 60,000 new school places w i l l be increased as follows: (i) 36,000 new cooperative schools (existing modality financed by the Central Government, the Municipality, and the Community Cooperative); (ii) 16,000 new places by optimizing idle capacity in existing lower secondary schools; and (iii) 8,000 new school places with strategic alliances with education NGOs and Foundations that provided lower secondary education services in the rural sector. These 8,000 school places through alliances with NGOs, w i l l be allocated by accrediting the quality o f the N G O education services and standardizing costs and, thus, the financial transfers per additional school place offered. Finally, large school infrastructure investments w i l l be minimized through the utilization o f existing facilities in municipal, community and school levels. Minor works are supported-for maintenance and refurbishing-through financial transfers to the school committees. The following table presents the implementation arrangements for t h i s strategy by each institutional level, when applies. 92 Ministry o f Education Designs for (i) Strengthening Plans o f Lower Contracts Technical Assistance: Secondary Education Modalities (Telesecundaria internationalhational local and Alternancia), and (ii) Access Expansion individuaUfirms. Strategy for Lower Secondary Education. Large contracts for printing o f Designs for (i) Lower Secondary School Principal educational materials. Norms, and (ii) Strengthening o f Cooperative Model. Design o f Educational Materials for Principals, Teachers, and Students. Design o f training modules. Monitoring and Impact Evaluation o f Subcomponent. Education Departmental Train Principals, Teachers and School Boards on Selection and Hiring o f Training Offices Pedagogical and Management Models. Facilitators. Reproduce training and communication materials. Procurement and contracting with Supervise and in-situ technical assistance to hotels and training centers for schools. training events. Management o f operating costs for mobilization o f supervision and technical assistance visits to schools (per-diem, gasoline, hotel, etc.). Small printing o f materials for training and other communication purposes. Municipalities Finance 1/3 o f cooperative school costs. Non-Bank financing. School Committees Prepare school improvement plans (PE) and Receive school grants as manage their implementation. incentives to implement PE The following type o f school governments w i l l (approximately transfers o f manage "school access subsidies"-which US$l,O00-1,500 annually). The contribute to school incremental costs o f new lower grant does not finance the entire secondary students: PE i s just a small incentive to o Cooperatives launch it. o School Boards (Juntas Escolares) or School Government receives Education Committees School Access Subsidies. (COEDUCAS) o f integrated Basic Education Centers o NEB School Boards Strategic Alliances and NGOs receive and manage subsidies for low income NGOs accredited to provide NGOs and indigenous students supported by the project and quality education services. attending their schools. Grant per child based on standard cost o f education quality inputs. 93 Subcomponent 2.c. Education Demand Scholarships and Subsidies for Low Income Students. The subcomponent w i l l provide technical assistance (of individuals and f m s ) to strengthen the targeting, identification, selection, and monitoring o f scholarship beneficiaries. In addition, the Project will provide three types o f scholarships (i)Lower Secondary Education Scholarships to approximately 5,500 6` grade graduates from l o w socio-economic and ethnic backgrounds; (ii) Pre-Service Teacher Training (ENM) scholarships to approximately 450 students with academic excellence and representative o f l o w income and ethnic groups; and (iii) Training Grants to teams o f Instructors (in ENM) to specialize on education areas pertinent to their region. Each o f these scholarships to be supported by the Project i s presented in the next table: Lower 5,500 Scholarships. M I N E D U C includes scholarships in the DDE budget based o n Secondary 6" grade graduate conditional equity allocation criteria for ethnicity and gender. Scholarships on accessing (i) lower DDE conforms a municipality "notable" committee selects secondary, (ii) promotion 7-9th beneficiary o n the micro-region where schools supported by grade, and ( i )9th grade ii the Project, based o n criteria to include: (i)6" grade completion. completion, ( ifamily patrimony, and (iii) i) working youth. e The scholarship includes DDE informs beneficiary and transfers Scholarships at the support for (i) transportation, Beneficiary o r Family Head o r student (if o f adult age). (ii)school fees o r contributions School principal and beneficiary reports enrollment and (for example in cooperative commitment to monitor scholarship conditioned o n schools), and (iii) some commitments. opportunity cost compensation DDE makes first disbursement at the Bank account o f family (for working youth). head. Pre-Service 450 scholarships will be allocated M I N E D U C includes scholarships in the DDE budget (where Teacher to 10% o f 5 Upgraded Regional the ENM is located) based on: (i) equity allocation criteria for Training pre-service teacher training centers bilingual teacher deficit, (ii) ethnicity and gender, and (iii) (ENM) Student (to be supported by the Project). departmental representation. Scholarship Approximately 4,500 scholarships. ENM forms selection committee (with representation o f Academy o f Mayan Languages, DDE and Notables), and selects students based on: (i) lth grade standardized test, (ii) 1 admission test, and ( i )i iincome need and hardship o f students traveling f r o m outside locality. DDE-where the ENM is located-transfers to student. ENM monitors performance o f scholarship grantee and reports to the DDE. ENM Teacher 275 scholarships for teachers in MINEDUC forms a Committee to review ENM requests for Scholarship upgraded regional pre-service teacher scholarships. teacher training centers (ENM), Criteria for allocation o f university scholarships include: (i) for a 6 month specialization. number o f students enrolled, and (ii) diagnosis o f education All applying teachers have regional need and strengthening plan. already a full university degree (Licenciatura). 94 As stated, the component w i l l also provide technical assistance and support to standardize the system of Scholarship provision in the Ministry o f Education. Other scholarships provided by the MINEDUC, which w i l l be standardized in terms o f targeting, selection, and administrative procedures are presented in the following table (these scholarships w i l l not be financed by the Project, but w i l l benefit from the standardization o f procedures). Existing Scholarships Low Income Integrates scholarships for e MINEDUC includes scholarships in the DDE budget- Primary school primary school students-such based on equity criteria. scholarships as Becas para la Paz and Becas e The DDE selects schools based on and Index o f Education para la Niiia, targeting a school Outcomes by Schools. The schools with most and or cycle in a poor community transfers to the School Government. (all students benefited). Academic Scholarships provided to e MINEDUC includes scholarships in the DDE budget Excellence students with high academic based on equity allocation criteria; Scholarships performance in public e DDE selects a committee o f community- used as criteria (Becas de secondary education institutes to include: (i) socio-economic, (ii) grade standardized, 9" Excelencia) to continue their secondary and (iii)grades on four subjects. education at the upper level. e DDE informs beneficiary and transfers Scholarships at Number of scholarships the Beneficiary or Family/with portion o f school fee allocated to each department transferred automatically to the school where the based on poverty, ethnicity and beneficiary studies. gender criteria. e DDE Transfers to the head o f family or student (if o f adult age). Bolsas de MINEDUC provides up to Q. 100 e MINEDUC includes scholarships in the DDE budget DDE Estudio (approximately US$15) a month selects beneficiary and transfers Scholarships at the for grantee to support Beneficiary or Family/with portion o f school fee transportation and educational transferred automatically to the school where the materials. beneficiary studies. e DDE open calling for applications, criteria based on: (i) school recommendation (including academic performance), (ii) family income, and (iii) precarious situation or family hardship. e DDE transfers the resources to the school, which monitors resources for student to support educational materials and transportation. Becas de MINEDUC provides up to Q. 400 e Each o f the 4 Boarding School applies for scholarship o f Alimentacibn (approximately US$50) a month to students. grantees in 4 Boarding schools in e DDE approves school, based on condition o f students the Country (to teacher training needing food. institutions and 1 technical secondarv school). 95 The following table presents the implementation arrangements for the sub-component including: standardization o f system; and (ii) (i) targeting, selection and monitoring o f Project- provided scholarships. Ministry o f Education 0 TA for standardization o f 0 Contracts Technical scholarship Program. Assistance: 0 Annual allocation o f internationalhational local scholarship budget across individualhirms. departments. Education Departmental Offices Manages budget for TA Management o f operating transfers and participates in costs for mobilization o f selection o f grantees. supervision and technical 0 Monitors grantees outcomes. assistance visits to schools (per-diem, gasoline, hotel, etc.). Small printing o f materials for training and other communication purposes. Municipalities Participate in selection 0 N o Fiduciary Process committees. Involved School Committees 0 Monitor the grantees 0 N o Fiduciary Process education outcomes in their Involved schools. 0 Reports to DDE education outcomes o f grantees. Individual (Scholarship Monitor the grantees 0 Selected grantees receive Recipient) education outcomes in their scholarship directly in Bank schools. Account. 0 Complies with conditions o f grants, reporting to school officials. Subcomponent 3.a. Consolidation and Strengthening of School-Based Management for Education Quality. The sub-component w i l l provide schools technical assistance for: (i)school committee organization, (ii) training o f school planning and use o f report cards (education results o f each school), and (iii) financial transfers as incentives to implement school-defined activities to improve schools. The component w i l l benefit directly: (i) 400 primary schools integrated with a lower secondary education modality (Integrated Basic Education Centers), and (ii) 400 new lower secondary education school, created through the existing strategic alliances o f the Ministry o f Education, municipalities, and local cooperatives (Escuelas por Cooperativas). The subcomponent w i l l be implemented sequentially: (i) organization assistance and training o f school governments (including training on community participation, school planning and fiduciary management) with support o f Departmental Education Departments and NGOs; (ii) with motivated and organized school committees, the schools w i l l prepare a simple school improvement plan (PE-Proyecto Educativo), defining medium term goals and short-term activities to improve learning; and (iii) component w i l l the 96 provide some seed financial seed resources-as incentives (not necessarily to finance fully the PES. Each school will receive approximately US$l,OOO dollars, three times during the period o f the project (5 school years-r US$3,000, o n average, per rural school. The following table presents the implementation arrangements for t h i s strategy by each institutional level, when applies. Ministry o f Education Designs for: (i) School Boards Technical Assistance: Individuals/Firm, and Community Committees National and International. Strengthening, (ii) School International Procurement o f Goods (e.g., Planning, (iii) School computer equipment and vehicles). Outcomes Report Cards, and Large procurement o f specialized (iv) Transfers for PE materials and printing. Incentives. Designs Materials for Principals, Teachers, and Students. Design o f training modules. Monitoring and Impact Evaluation o f Subcomponent. Education Departmental Train Principals, Teachers and Training Budgets, including logistics, Offices School Boards on School accommodations, meals, and hiring Management processes. facilitation (including NGOs). Reproduce training and Supervision budgets, including operating communication materials. costs and mobilization o f personnel. Supervise and in-situ technical School-Based and Scholarship Transfers. assistance to schools. Procurement o f Small Contracts (shopping or three quotations). School Committees 0 Prepare school improvement Shopping procedures for good and service plans (PE) and manage their purchased with school grants (PE implementation. Incentives). Maintain financial log for use o f grants. Subcomponent 3.b. Consolidation and Strengthening of Departmental and District Supervision and Technical Assistance to Schools. Departmental offices will be strengthened to monitor, supervise and complement technical assistance related to: (i)Integrated Basic Education Centers, (ii) Lower Secondary Education Modalities targeted by the Project, and (iii)improved School Management for Education Quality. The subcomponent will benefit directly 10 Education Departmental Offices with: (i) materials and training on various management and pedagogical areas for which these institutions are responsible; (ii) training and operational support for supervision teams to provide direct technical assistance and support at the school level; and (iii) provision o f equipment, furniture and information systems to facilitate departmental management responsibilities. Some decentralized grants w i l l be provided at the Departmental level to complement self-defined training and to support administrative costs o f school 97 visits and consultations-related to the progress o f Project activities and impact-with principals, teachers, parents and communities. The following table presents the implementation arrangements for this strategy by each institutional level, when applies. Table 6.1 1: Implementation Arrangements by InstitutionalLevel Ministry o f Education Designs for: (i) Pedagogical Technical Assistance: Training and Technical IndividualFinn, National Assistance, (ii) School and International. ii management supervision, ( i ) L~~~~ procurement of Departmental planning and specialized materials and monitoring, (iv) human printing. resource management, and (v) departmental financial management and procurement. 0 Designs Materials for DDE staff. 0 Design o f training modules. 0 Monitoring and Impact Evaluation o f Subcomponent. Education Departmental Offices Reproduce training and Training Budgets, including communication materials. logistics, accommodations, 0 Supervise and in-situ meals, and hiring technical assistance to facilitation (including schools. NGOs). 0 Supervision budgets, including operating costs and mobilization o f personnel. 0 Short Term national technical assistance for departmental staff, 3. Project and IBRD Loan Coordination: Institutionalization of Project Management through Integrationof Technical and Administrative processes within MOE line units The Ministry o f Education o f Guatemala has already institutionalized the management and decision making role o f externally financed project investments within i t s line technical units (rather than managed dependently by an external Project implementing unit). For the technical aspects o f the Project, the central offices-Education Quality, Bilingual Education, Non-Formal Education, and School-Based Management-will provide the broad implementation strategies, procedures and indicators that will guide project activities. They w i l l also review the progress o f all programs nationwide and guarantee equitable allocation o f resources-based o n standard and transparent criteria. 98 For administrative and fiduciary management, the present P C U will be integrated within the General Financial-AdministrativeDepartment o f MINEDUC. As part o f the general staffing o f this MOE line department, a small team o f staff specialized o n IBRD norms-accountable to the Administrative Director o f the MOE, rather than to an independent Project Coordinator-will support the fiduciary processes and accountability o f the loan. This strategy will guarantee both institutionalization o f the Project within the line Ministry, but also a dedicate team o f staff knowledgeable o f the administrative and fiduciary needs o f external financing agencies. 4. Summary of InstitutionalCapacity Assessment Within the decentralization strategy, the central Ministry o f Education will continue to be responsible for the normative processes, general monitoring and evaluation o f results. The departmental municipal and school levels will be responsible for operational implementation and local monitoring. T o increase implementation capacity strategic alliances with non profit organizations will be formed. Thus, the capacity assessment gave opinions o n the following four areas: (i) Technical Management. Project implementation capacity at the central level i s supported by the development o f three key systems which have been incorporated within the education management structures o f the M O E : (i) Result Management (budget, planning and monitoring); (ii) Human Resources; and (iii) Fiduciary Management. These systems were found satisfactory and contribute to project implementation. (ii) Fiduciary Management. The Ministry o f Education (MINEDUC) o f Guatemala has managed IBRD and IDB-financed projects over the last 15 years, through a project implementation unit. More recently, the PROJECT I M P L E M E N T A T I O N UNIT was converted into a Project Coordination Unit (PCU), when the education sector initiated a process o f decentralization and local implementation o f resources-including transfers o f resources at the school level (through the PRONADE program). The PCU manages all fiduciary processes for the loan and counterpart funds, and in addition integrates in one Annual Operation Plan all individual planning from the line ministry u n i t s that are responsible for the technical aspects o f each o f the Project's components. Specific financial capacity assessment for financial management and procurement are detailed in Annex 7 and Annex 8, respectively. (iii) Departmental and School-Based management. The Education Sector in Guatemala has increased the management capacity o f i t s DDE and school Boards and Community Committees. For the latter, the two previous Bank loans already utilized school transfers as an efficient and effective mechanism to provide education services and resources directly at the school and community levels. The audit and accountability system for school-based management (developed within PRONADE) was expanded over the last four years to non- Pronade Schools. This mechanism continues to be satisfactory for the present project. As for Departmental offices, the MOE has decentralized and strengthened the planning, human resource management, budgetary, procurement and other administrative processes at this level. Nonetheless, to reduce fiduciary risks, DDEs will only manage: (i) transfers and grants for school and scholarship grantees, (ii) operating costs, and (iii)small printing and goods contracting (of materials and services more efficiently found at the regional level). For large contracting, national and international bidding, and for mostly imported goods and services, national processes will be supported by the MINEDUCFroject Fiduciary Team. 99 (iv) Standardized Strategic Alliances and NGO Support. Guatemala has also ample experience in working with NGOs and Foundations. The two previous projects have provided financing n for ISEs (Instituciones de Servicio Educativo), Education Specialized NGOs. I this Project, the mechanism to accredit the quality o f an NGO andor foundation that will provide secondary education services w i l l be developed, and the costing and financing mechanisms will be standardized. By creating a standard system to optimize MINEDUC alliance with NGOs increases substantially the implementation capacity o f the Project Components. 100 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 7: Financial Management and Disbursement Arrangements Organizational Arrangements The loan borrower w i l l be the Republic o f Guatemala, represented by the Ministry o f Finance (MINFIN). Overall project coordination and administration w i l l fall under the Ministry o f Education (MINEDUC). Within MINEDUC, the Financial Management Department (Direccidn Financiera, DF) w i l l be directly in charge o f financial management (FM) matters. As part o f the institutionalization process of the MINEDUC, the present team o f financial specialists-currently responsible for the financial management o f the Universalization o f Basic Education Project (Loan 7052-GU)-will be located with the DF, and w i l l be the financial specialists for the new Bank loan. M I N E D U C has ongoing experience managing projects financed by the Bank, for which i t makes use of suitable administrative structures and systems; thus, it i s in an advantageous position to take over, with relative ease, this new Project. Existing competencies include: (i) budget formulation and monitoring, ( ii) cash flow management (including processing loan withdrawal applications), (iii) maintenance o f accounting records, (iv) preparation o f in-year and year-end financial reports, (v) administration of underlying information systems, and (vi) arranging for execution o f external audits. In MINEDUC, the installed capacity in terms o f staffing and structure are adequate, although the project w i l l involve certain incremental activities that w i l l require additional human resources (see action plan). Budget Planning Activities to be financed by the loan w i l l form part o f MINEDUC's medium-term budget framework. The latter, in turn, w i l l inform the annual tentative investment program. The program should be consistent with the budget policy provided by MINFIN, be incorporated into the national public investment system (SNIP), and -once approved- be reflected in MINEDUC's annual budget proposal. This budget w i l l be incorporated b y MINFIN into the general state budget for its approval by Congress. On the basis o f the approved budget, MINEDUC w i l l adjust as needed i t s project annual work (POA) and procurement plan (PAC), which w i l l be reviewed by the Bank. Accounting and Financial Reporting Accounting Policies and Procedures. The main FM regulatory framework for the project w i l l consist o f (i) Organic Budget Law (LOP) and i t s Regulations, which norm the public sector FM systems, i.e. the budget, accounting, treasury, and public credit; ( ithe annual Law o f the General State Budget; and (iii) i) MINEDUC's manuals o f proj ect financial procedures and practices. Project-specific FM arrangements that are not contemplated in the documents cited above w i l l be documented in a concise FM section o f the project's operational manual. Among others, specific reference w i l l be made to: (i) contractual, payment and documentation terms o f activities implemented the through decentralized and school-based management mechanisms, and (ii) formats o f Project financial the and audit reports. 101 Information Systems. In compliance with Government regulations, MINEDUC should record transactions into the Integrated FM System (SIAF), which includes the integrated accounting system (SICOIN-WEB). It w i l l be the responsibility o f the DF to maintain accounting records specific to the project. The prior PCU team-now to be located with the DF-already has a computerized financial management system, which i s adequate for the accounting o f projects with external financing. This system i s designed to facilitate processing o f project-specific transactions, but w i l l be linked to and will not substitute SICOIN-WEB records. Financial Reports. On a semiannual basis, MINEDUC w i l l prepare and submit to the Bank an interim un-audited financial reports (IFR) containing: (i) statement o f sources and uses o f funds and cash a balances (with expenditures classified by subcomponent), (ii) statement o f budget execution per a subcomponent and executing agency (with expenditures classified by the major budgetary accounts), and (iii) designated (special) account activity statement (including a copy o f the bank statement). The IFRs a w i l l be submitted not later than 45 days after the end o f each semester. On an annual basis, MINEDUC w i l l prepare project financial statements including cumulative figures, for the year and as o f the end o f that year, o f the financial statements cited in the previous paragraph. The financial statements w i l l also include explanatory notes in accordance with the Cash Basis International Public Sector Accounting Standard (IPSAS), and the Borrower's assertion that loan b d s were used in accordance with the intended purposes as specified in the Loan Agreement. These financial statements, once audited, w i l l be submitted to the Bank not later than six months after the end o f the Government's fiscal year (which equals the calendar year). The supporting documentation o f the quarterly and annual financial statements w i l l be maintained in MINEDUC's premises, and made easily accessible to Bank supervision missions and to external auditors. Funds Flow Disbursement Method. Loan proceeds w i l l be withdrawn by MINEDUC using the advance method with supporting documentation based on statements o f expenditures (SOEs), which are justified by the entity's good track record o f maintaining satisfactory FM arrangements. The SOE format w i l l be consistent with that currently used under Loan 7052-GU for works, goods and services, complemented with specific customized forms for the decentralized programs (see below). All supporting documentation for payments using SOE procedures and other payments in general for project activities w i l l be retained by M I N E D U C for audit purposes and made available for the Bank's supervision. During implementation, MINEDUC w i l l sustain satisfactory FM arrangements and submit acceptable audited financial statements b y their due date. If MINEDUC does not continue to meet these criteria, the supporting documentation requirements w i l l be changed to records only (provided the Bank does not suspend disbursements because o f non-compliance with the obligation to maintain an adequate FM system). Designated Account. MINFIN's National Treasury Directorate (Treasury) w i l l open and maintain a segregated account in U S Dollars in the Bank o f Guatemala (BANGUAT), to be used exclusively for deposits and withdrawals o f loan proceeds for eligible expenditures. After the designated account has been opened, MINEDUC w i l l submit i t s first disbursement request to the Bank for the advance. For subsequent withdrawals, MINEDUC w i l l submit each disbursement request along with the SOE documenting eligible expenditures made. A t any time, the undocumented advance to the designated account cannot exceed the ceiling to be established in the Bank's Disbursement Letter, set at US$7,000,000. 102 Operation ofpayments. MINEDUCDF will open an operational account in Quetzales ("cuenta hija") that would receive transfers o f funds from the Designated Account for subsequent payment to providers o f eligible expenditures or project beneficiaries. The operational account will function as a rotating fund with periodic advances and documentation o f expenditures. As described in the previous annex, the financing mechanisms for (i) school-level and NGOs subsidies for increased lower secondary education access; (ii) scholarships for l o w income and traditionally excluded students (e.g., working youth); and (iii) small financial incentives to support schools to prepare and implement school improvement activities, w i l l utilize existing decentralized and school-based management mechanisms in Guatemala. The project itself will support strengthening o f these systems where needed. The following table presents the decentralized financial mechanisms, the institutional responsibilities for flow o f funds under the project, and proposed strengthening actions: School Access School 0 M I N E D U C issues the legal 0 Standardize accords and Subsidy Government documentation (ministerial forms used to document (Junta, accords for school payments. COEDUCA, governments and contracts for 0 Establish procedures to Cooperativa) NGOs). ensure that the review o f 0 DDEs receive supporting payment documentation (by Non-Profit NGO documentation from school the DDEs' financial units) i s governments and NGOs, issue cross-checked against the payment requests through reports o n attendance and SICOIN-WEB and supervise. other education statistics (by 0 M I N E D U C D F approves the DDEs' educational payment requests in SICOIN- development units). WEB. 0 Replicate in the Juntas the 0 National Treasury processes current system o f transfers the payment requests through to COEDUCAs. electronic deposits into bank 0 Establish the legal figure for accounts o f school the recipient o f transfers to governments and NGOs. INEBs and replicate the current system o f transfers to COEDUCAs. 103 Student Head o f 0 Municipal Committee and Upgrade database Scholarships HouseholdAdult DDEs Select Beneficiary management system -age Student 0 DDEs maintain physical files, currently used for "becas de including the scholarship excelencia" to incorporate, accords, and fill "teleforms" among others, the single that are entered into recipient code. MINEDUC's central database. Issue rules and format o f NGOs work w i t h schools to accords for the new train beneficiaries, supervise scholarship program and provide periodical reports including, among others, the to DDEs and MINEDUC o n suspension o f payments the recipients' attendance, upon noncompliance w i t h performance and receipt o f the scholarship accord as payments, among others. evidenced by the periodical DDEs issue monthly payment NGO reports. requests through SICOIN- Enter into accord with WEB. national bank to facilitate M I N E D U C D F approves opening of, and deposit into, payment requests in SICOIN- recipient accounts. WEB * National Treasury processes the payment requests through electronic deposits into bank accounts o f beneficiaries (the process i s facilitated by an accord with a single commercial bank where all beneficiaries will open their accounts). School School 0 DDEs supervise preparation o f Issue rules for the PE Improvement Government P E and provide l i s t o f eligible program including, among Grant (Junta, expenditures for grant. others, the standardized COEDUCA, 0 DDEs maintain P E physical accords and forms used to Cooperativa) files, issue lump-sumpayment document the P E proposal requests through SICOIN- and the implementation WEB, and supervise. report. MINEDUCDF approves Replicate in the Juntas the payment requests in SICOIN- current system o f transfers WEB. to COEDUCAs. National Treasury processes Establish the legal figure for the payment requests through the recipient o f transfers to electronic deposits into bank INEBs and replicate the accounts o f school current system o f transfers governments and NGOs. to COEDUCAs. DDEs add simple P E implementation report to the Gl- 104 All o f the All of the above e MINEDUCDF allocates 0 Issue accord between above amounts in DDE Budget M I N E D U C D F and the 0 MINEDUCDF and the National Treasury to rule National Treasury coordinate the periodical transfers from payments in the framework o f the designated account to an operational accord. the treasury single account, e An internal control unit within from where payments will M I N E D U C D F supervises all be made to school decentralized programs governments, NGOs and financed by the loan, ensuring scholarship recipients. that nominal and payrolls are e Prepare TORs and establish reconciled, preparing SOEs, internal control unit within and identifying discrepancies M I N E D U C D F to supervise and ensuring that these are the incremental activities adequately addressed in the related, to the supervision o f following SOEs. the decentralized programs An external audit firm financed by the loan. performs special audits o f the 0 Prepare TORs and contract decentralized programs, audit firm to perform the including spot checks o n special audit o f the schools and beneficiaries and decentralized programs and continuing review o f the IT correlated database safeguards o f the database management systems. management systems. As noted, Bank financing o f decentralized programs will be based upon a flow-of-funds model that relies more heavily on country systems, thus helping reduce transaction costs in relation to management o f parallel payment systems, and helping preserve the integrity o f the budget management system by preventing off-budget execution o f Bank funds. The proposed model would need to be formalized in an operational accord and would entail for the National Treasury to execute payments-ordered by M I N E D U C through SICOIN-WEB- out o f the National Single Treasury Account (CUT) to school governments, NGOs and scholarship recipients. The Treasury would simultaneously reimburse the amounts to the C U T from the Designated Account. Other Procedures. The use o f reimbursement and direct payments by the Bank may be needed during peak payment periods, should balances in the designated account not suffice. The minimum payment would be o f US$l,OOO,OOO. 105 Allocation of Loan Proceeds Loan Expenditure Amount % o f Expenditures to be Category (US$) Financed 1. Goods 11,500,000 100% 2. Small Works 2,000,000 100% 3. Consulting Services 7,900,000 100% 3. N o n Consultant Services 2,600,000 100% 4. Training; 8.800.000 100% 5. School Improvement Grants 8,500,000 100% 6. School Access Subsidies 35,300,000 100% 7. Scholarships 2,800,000 100% 8. Unallocated (*) 600,000 Total 80,000,000 Audit Arrangements n Internal Audit. I the course o f i t s regular internal audit activities vis-a-vis the institutional budget, MINEDUC's internal auditors may include project activities in their annual work plans. MINEDUC w i l l provide the Bank with copies o f internal audit reports covering project activities and financial transactions. External Audit. As stated earlier, MINEDUC currently manages the Universalization o f Basic Education project (loan 7052-GU), for which no audit compliance issues have been identified. The audit reports for the fiscal years 2003 and 2004 for the above mentioned project have been received on time and presented unqualified opinions. The annual project financial statements prepared by MINEDUC w i l l be audited following International Standards on Auditing (ISA), by an independent firm (or the Controller General o f Accounts, subject to prior agreement with the Bank) and in accordance with terms o f reference (TORS) both acceptable to the Bank. The audit opinion covering project financial statements w i l l contain a reference to the eligibility o f expenditures. Periodical memoranda on internal controls ("management letters") will be produced as part o f the financial audit. 106 m will perform special audits o f the decentralized programs, including In addition, an external audit f spot checks o n schools and beneficiaries and continuing review o f the IT safeguards o f the correlated database management systems. The audit work described above can be financed with loan proceeds. M I N E D U C will arrange for the first external audit within three months after loan effectiveness. Each audit engagement i s expected to cover at least two years. Financial Management Action Plan 1. Prepare and reach agreement o n the draft MINEDUCM Before negotiations contents o f the operational manual, format o f interim un-audited financial reports (IFRs), statements o f expenditure (SOEs, for decentralized payments) and audit TORs. 2. Finalize and present the approved structure o f MINEDUC Before effectiveness the Finance Department o f MINEDUC, and the incorporation o f existing P C U financial staff to the DF. 3. Finalize the operational manual, the format o f MINEDUC Before effectiveness IFRs, SOEs and the audit TORs. 4. Contract external auditors. MINEDUC 3 months after effectiveness 5. Implement and present evidence o f the FM MINEDUC Before effectiveness and strengthening measures for the decentralized during the first year o f programs (as detailed in Table 7.1). project implementation Bank FM Supervision Plan. A Bank FM Specialist should perform a supervision mission prior to effectiveness to verify the organization and staffing integration between the DF and the current PCU, as well as a supervision mission during the first year o f project implementation to verify specifically the progress made o n implementation o f the strengthening measures for the decentralized programs. After effectiveness, the FM Specialist must review the annual audit reports, should review the financial sections o f the quarterly IFRs, and should perform at least one supervision mission per year. FM risk A The F 4 inherent risk, defined as that which arises from the environment in which the project i s situated, is: (i) modest for the financing o f works, goods, and services and (ii) substantial for activities involving decentralized programs. The F 4 control risk, defined as the risk that the project's financial management A system i s inadequate to ensure project funds are used economically and efficiently and for the purpose modest for the financing o f works, goods, and services; and ( isubstantial for activities intended, is: (i) i) involving decentralized programs. The FM action plan described previously, including the project-supported strengthening measures for the decentralized programs, as well as the special external audit o f those programs, i s designed to lower the 58 This column only denotes the expected date o f completion for each action. I t does not give indication o f legal conditions. 107 overall FM control risk and the residual FM risk rating, defined as the combination o f the project's inherent and control risks as mitigated by the client control frameworks and Bank supervision effort, to moderate. Guidelines The financial management and disbursement provisions o f the Loan Agreement, the Operational Manual, and the arrangements described above are to be complemented by the following Bank documents: 0 Interim un-audited financial reports: Guidelines to Borrowers 0 Guidelines: Annual Financial Reporting and Auditing for World Bank-Financed Activities 0 Disbursements Guidelines 0 Fiduciary Management for CDD Projects - A reference guide 108 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 8: Procurement Arrangements A. General Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated M a y 2004; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated M a y 2004, and the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loadcredit, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan w i l l be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. Procurement of Small Works. Works procured under this project would not include new construction-all lower secondary education programs w i l l be extended in existing primary education schools, municipal or community centers, and on NGOs' infrastructure. The only small works considered within the Project i s the refurbishing o f five existing large teacher training centers (Sub-component 1.B), with approximately 10,000 square meters o f existing infrastructure that requires new doors, fixtures, floors, painting, and improved access (including for handicapped students andor staff). Approximately US$180 per square meter has been allocated for refurbishing and, thus, I C B i s not expected. Attachment 1 (Global Procurement Plan - GPP- Procurement) includes details on specific thresholds for this applicable civil works activities in the project. Procurement of Goods. Goods procured under this project would include furniture; equipment; computers; and office, training and educational materials. The procurement w i l l be done using the Bank's SBD for all I C B and National SBD agreed with or satisfactory to the Bank. A portion o f procurement o f goods w i l l be done at the community level, for which given the contract amounts, shopping procedures are allowed. Attachment 1 (Global Procurement Plan - GPP- Procurement) includes details on specific thresholds for the applicable procurement o f goods in the project. Procurement of non-consulting services. The non-consultant services that may be required under the project include Information, Education and Communication (IEC) campaigns; and perdiems, hotel, transport and meal costs for training and workshops (see Table A o f this Annex). MINEDUC w i l l procure items in t h i s procurement category using the non-Consulting services bid document dated June 2003. Attachment 1 (GPP) includes details on specific thresholds for procurement o f non-consulting services. Selection of Consultants. Consultants services-from f i r m s and individuals-will be contracted in a variety o f s k i l l areas required to accompany technical advance o f the project. Table A below shows the areas in which consultants may be contracted by MINEDUC. The summary GPP in the Attachment o f this Annex contains a details and statistics o f consultants' services to be procured by f m s and individuals and applicable methodologies. Short lists o f consultants for services estimated to cost less than $200,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. Universities and NGOs w i l l engaged in strategic alliances to support various project activities, especially teacher training, organization and training o f school governments, and provision o f flexible education services in rural and indigenous communities. 109 Others: Participation o school communities in procurement, f n I line with the school-based management strategies o f the education sector in Guatemala, the project w i l l provide two types o f school grants: (a) a "School Improvement Grant" (as an incentive for preparation and implementation o f school improvement plans), under Component 3.A; and (b) a "New Student Access Subsidies" (to support lower secondary schools to enroll and provide a basic education package to new students), under Component 2.B. Eligible expenditures for the School Improvement Grant w i l l include didactic materials, extra- curricular activities, teacher and parent training, and minor school refurbishing. Approximately 1,500 schools w i l l receive School Improvement Grants. The amount o f the School Grant w i l l not be above US$1,500 annually for each school. Each school can receive up to 5 grants during the l i f e of the Project. The New Student Access Subsidies w i l l provide school resources to purchase school furniture, fungible educational materials, and to upgrade existing classrooms and the pedagogical environment. Four types o f schools w i l l receive New Student Subsidies: (a) Integrated Basic Education Centers (for approximately 30,000 new students); (b) Cooperative Schools (for approximately 36,000 new students); (c) regular secondary education institutes, or INEB (for approximately 16,000 students); and NGO-run schools (for approximately US$8,000 students). The amount o f the New Student Cooperative Subsidy w i l l be, on average, approximately US$111 per studendper year. For Cooperative Schools, this latter subsidy w i l l defray approximately 33% o f the annual per student cost (the other 33% i s provided by municipal grants-not part o f this Project-and the other 33% i s raised by the community. The provision o f subsidies for school-run NGOs w i l l be standardized based on the following criteria: (i) per-student cost for a basket o f quality education inputs to be provided annually by the N G O a (education materials, transportation, meals, etc,); and (ii)a prorated amount to complement incremental costs (due to increased access from traditionally excluded students) for teachers, infrastructure maintenance, equipment, and other educational inputs. Eligible NGOs w i l l also be accredited based on a set o f indicators determining the quality and efficiency o f teachers, methodological strategies, congruence with the National Curriculum, and contextualization to specific cultural and ethnic backgrounds o f the community to be served. The school board or cooperative board that receives either the School Improvement or the New Student Access grant i s already a standard management organization in the education sector. Previous Bank Projects have disbursed through the school board mechanisms. MINEDUC has prepared a very complete guide that accompanies these strategies, including training and support in school organization and school-based planning, as well as the process for transferring these resources to existing school bank accounts, and the corresponding auditing process (with references included in the Project Manual). Through t h i s Community-Driven Development strategy, the aggregated value o f this category i s approximately US$52 million during the life o f the project. Scholarships for Eligible Low-Income and Indigenous Students. Three different type o f scholarships w i l l be provided to defray the costs o f education and training o f low income students: (i) Lower Secondary Education Grants (for 6' grade graduates to continue 3 years o f lower secondary education); (ii) ENM Scholarships (for students in pre-service teacher training schools); and (iii) ENM Teacher Grants (for instructors in pre-service teacher training schools). 110 g) MINEDUC has prepared a very complete guide that accompanies the targeting, identification and monitoring o f scholarship recipients (with references included in the "Implementation Annex, #6, o f the PAD and in the Project Manual). Scholarships will vary from U S $ l 5 0 to US$500 annually depending o n the level o f school, formula applied andor educational basket needed by the student. I t i s expected that approximately 6,000 students will benefit with an aggregate value o f approximately US$7 million during the life o f the project. B. Assessment of the agency's capacity to implement procurement Procurement activities w i l l be carried out by the Ministry o f Education o f Guatemala (MINEDUC), through i t s Procurement Unit (Unidad de Adquisiciones y Contrataciones, UAC). Some procurement processes will be managed by MINEDUC's decentralized offices at the Departmental level (Direcciones Departamentales de Educacidn, DDE) and by school Governments and Parental Committees (Juntas Escolares y Comitds Educativos). The U A C i s staffed by a team o f fiduciary specialists (including procurement officers) with experienced in IBRD-financed Project. The procurement staff experienced o n IBRD norms (through MINEDUC's experience with the on-going Universalization o f Basic Education Project) will be located within U A C with direct relation to other fiduciary units and authorities o f MINEDUC. An assessment o f the capacity o f the Implementing Agency to implement procurement actions for the project has been carried out in June 2006 by the PAS assigned to the project The assessment reviewed the organizational structure for implementing the project and the interaction between the project's staff responsible for procurement and the Ministry's relevant central unit for administration and finance. Key issues and risks The key issues and risks concerning procurement for implementation o f the project have been identified and include: a) Within MINEDUC (outside the existing PCU), little has been done to institutionalize and implement procurement planning in the Ministry. A systematic way to identify and prioritize needs and requirements will have to be established. b) M I N E D U C i s at a very early stage o f development and implementation o f standard procurement policies and procedures as well as standard bidding documents for consultant services, goods and works for each particular procurement method. c) With respect to contract management, i t i s recommended that a computerized procurement and contract monitoring system be developed and implemented. d) The integration o f procurement activities within the institutional procurement unit ( to be created) poses a potential risk to the new project. e) An adequate filing system o f documents, and electronic databases o n procurement and financial records o f contracts has to be implemented. Corrective measures The corrective measures which have been agreed are: a) Provide TA to assist in the development and implementation o f an effective procurement planning, monitoring and evaluation system. b) Provide technical assistance to complete the Procedures Manual including clear procedures and standard bidding documents for all methods o f procurement. c) Complete the Procedural Manual for the Ministry and decentralized units. d) Create and staff the institutional procurement unit with capable professionals. Ensure that the procurement staff assigned to the Bank project are in numbers and have the knowledge, experience 111 and capacity required to ensure a successful implementation o f the procurement activities. I t i s recommended that the selection o f the procurement staff be subject to Bank's approval. e) Develop and implement a training program with special focus o n the decentralized units. f ) Strengthening o f internal control systems. g) Establish a record system to systematically maintain records o n all procurement actions. Implement an adequate filing system o f documents, and electronic databases o n procurement and financial records o f contracts. The overall project risk for procurement i s MEDIUM. C. Procurement Plan The Borrower has completed i t s Global Procurement Plan (GPP), which provides the basis for the procurement methods that are proposed in the project. I t includes detailed activities by M I N E D U C and l i s t the procurement processes to be carried out by the Departmental Education Offices and by School Community Governments. Based on this GPP, the Borrower has prepared a Specific Procurement Plan (PAC-1 8) for first 18 months o f project implementation. This PAC-18 will be discussed at negotiations. All updates to this PAC-1 8 will be agreed with the Project Team during supervision. D. Frequency of Procurement Supervision In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment o f the Implementing Agency has recommended YEARLY supervision missions to visit the field to carry out post review o f procurement actions. 112 E. Details of the Procurement Arrangements Involving International Competition 1. Goods, Works, and Non Consulting Services 1 (a) List o f contract packages to be procured following I C B and direct contracting: 8 9 I I I I Procurement I - I Ref. Contract Estimated P-0 Expected Comments NO. (Description) Method Bid- Opening I I I Date 1 I School I 210,625 I ICB June 5,2007 Goods Libraries 825,000 I prior prior M a y 19, Goods 4 Printing 159,375 ICB =q-zaT- June 07, 2007 5 School 2 10.625 ICB prior March22, I Goods Libraries 6 7 Printing I School 1,872,000 I 731,700 ICB I ICB I prior prior April 6, I Equipment I 8 I Communicati I 250,000 1 ICB on Services consulting P services All Prior March 8, 2007 to July (b) I C B contracts estimated to cost above US$150,000 per contract and all direct contracting w i l l be subject to prior review by the Bank. 2. Consulting Services (a) List o f consulting assignments with short-list o f international firms. (b) Consultancy services estimated to cost above US$lOO,OOO per contract and single source selection o f consultants (firms) w i l l be subject to prior review by the Bank. (c) Short lists composed entirely o f national consultants: Short lists o f consultants for services estimated to cost less than US$200,000 equivalent per contract, may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. 113 11. Bank Prior Review Thresholds for Works, Goods and Non-consulting Services. 1. Prior Review Threshold: Procurement Decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines for Procurement dated M a y 2004: 1.A - Works ...................................................................... ..................... 1. B Goods - ................ ..................................................................................... I each........................................................................................................................... t calendar year I Less than US$50,000 ~ Shopping j The first two contracts subprojects) ............................................................................................................................ ............. ........................................................................................................................................................................................... Direct contracting NJA I All contracts 114 - 1.C Services (not related to consultants' services) ................................................................................................. I i........................................................................................................................................................ i each calendar year + .................................................................................................................. ing I Less than US$50,000 ! The first two contracts ................................................................................................................................... }....................................................................................................................................................... ar....Ye?: ............................................................. community j Less than US$25,000 participation (school i Direct contracting ..................................... i ~ N/A ! I . All contracts 2. Pre-qualification. Not applicable in this project 3. Any Other Special Procurement Arrangements: (a) Participation o f the School Communities in Procurement, under the strategy described in Annex 8 o f the PAD, under "other" procedures. (b) Scholarships as described in Annex 8 o f PAD, under "other" procedures. 115 1. 1 1 Selection of Consultants 1. Prior Review Threshold: Selection Decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment o f Consultants: 2. ~ QCBS/Fixed Budget 1 (FB)/LCS ~. i i us$200,000 us$100,000- US$200,000 I 1 First Two Process ~ I Each Calendar Year 3. j Least Cost(LCS)/Consultant i. Less than US$lOO,OOO 1 First Two Process i Qualifications I ! Each Calendar Year 5. ............. ~ 1 Source (Firms) Single ...................................................................................................... 1 All............. 4.- ........................................................ I 1...................................................................................................... 6. j Individual consultants ~ (*) All cases above ! ~ US$50,000 i ./......................... ".. 1 Single- Source (Individuals) i ~ 7. &l (*) Thresholds for consulting include the sum o f the original contract and extensions. 2. Short list comprised entirely of national consultants: Short lists o f consultants for services, estimated to cost less than US$200,000 equivalent per contract, may include only national consultants in accordance with the provisions o f paragraph 2.7 o f Consultant Guidelines. 3. Any Other Special Selection Arrangements: (a) Employment o f public servants as consultants for the project shall not be acceptable, unless individual consultant has resigned his/her position and official confirmation o f this resignation i s delivered to the Bank, prior to issuing contract. 116 ENING OF INSTITUTIONAL CAPAt TY Legal Framework . Agreed Action Agreed draft o f all covenants for (i) community participation and (ii) . Deadline 3 months prior to . Project Launching. . scholarshipshbsidies. Training o f IBRD procurement CAPACITY BUILDINGOF specialized staff and management o f 3 months prior to PROCUREMENT TEAM new Procurement Department o f Project Launching. MINEDUC, o n project-specific procurement planning and . implementation. Finalize the procurement section o f the Operations Manual. Include all 3 months prior to standard documents, model contracts, Project Launching. . etc. Provide TA to assist in the development and implementation o f an 3 months prior to effective procurement planning, Project Launching. . monitoring and evaluation system. Create and staff the institutional procurement unit with capable 3 months prior to professionals. Ensure that the Project Launching. procurement staff assigned to the Bank project are in numbers and have the knowledge, experience and capacity required to ensure a successful implementation o f the procurement activities. It i s recommended that the selection o f the procurement staff be subject to Bank's approval. Develop and implement a training program with special focus o n the decentralized units. . 3 months prior to Project Launching. Strengthening systems. of internal control . 3 months prior to Project Launching. Establish a record system t o systematically maintain records on all procurement actions. Implement an . 3 months prior to Project Launching. adequate filing system o f documents, and electronic databases on procurement and financial records o f contracts. 117 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 9: Economic and Financial Analysis Context. During Project preparation, a series o f economic studies5' were conducted to review (i) Sector a Review and Quantitative Indicators; (ii) Cost-Benefit Analysis o f Proposed Project Strategies and i i Targeting Strategies for Project Resources; and (iv) Project Financial and Fiscal Investments; ( i ) Implications and Sustainability. Annex 1 presents the summary o f the Sector Review. This annex presents the cost-benefit analysis, the targeting strategy, and the financial and fiscal sustainability. 1. Cost-Benefit Analysis This annex summarizes the economic analysis carried out to identify the expected economic viability o f the Guatemala Education Quality and Secondary Education Expansion Project. With strong benefits due to both coverage and quality interventions, the benefits o f the Project are projected to far exceed the costs, indicating that this i s an economically viable and desirable project. This analysis concludes that, at a 10% discount rate, the Project i s generating a positive impact: costs are covered and benefit i s produced. The project generates an Internal Rate o f Return (IRR) o f 31 % with a Cost Benefit coefficient o f 13.9. This means that for every dollar spent in this project and i t s associated costs, the benefit i s US$13.9. In this case, benefit i s represented by costs reduction in Primary Education and income improvement o f the Lower Secondary Education graduated students. Methodology for Cost and Benefit Calculation The economic effect o f the Project was calculated by comparing i t s costs to i t s quantifiable benefits. Both-costs and benefits-are calculated in a period o f 20 years. Costs include both investment and recurrent costs, and benefits include short-term system savings and long-term benefits incurred by the Project beneficiaries. The basic input for the economic analysis i s the projected behavior o f student enrollment cohorts, including projected promotion (less repetition), maintenance (less dropout) and completion expectations. The cohorts include projections for primary education (completion at 6" grade), lower secondary (completion at 9" grade), and upper secondary (completion at 11" for academic track or 12* grade for technical tracks). For t h i s Project, the specific cohort enrollment projections are analyzed for the lowest education outcome regions in Guatemala (those targeted by the Project). Grade repetition incurs additional costs to provide the same level o f education to each student. Student dropouts also increase costs, as the final product expected in each education cycle i s not achieved-albeit the country made the resources available for this. Overage students-due to repetition and temporary 5 9 Various economic analyses were studied and integrated to guarantee the economic feasibility o f Project Design. Three key inputs were: (i)various sector studies conducted by the MOE regarding secondary education and teacher training reforms, (ii) Public Expenditure Review (PER) for Guatemala, and (iii) PHRD-financed Education the a Sector study. The PER and Education Sector Study included various simulations which contributed to the design o f the appropriate components and sub-components o f the Project. 118 dropout-incur higher costs to the system for each grade reached.60 On the benefit side, decreasing repetition and dropout for presently overage students will yield savings o n the present pattern o f public expenditure o f education. Thus-in t h i s economic analysis-two student flows are projected: (i) cohorts that finalize each education cycle (6"*, 9". and 1l"/12th3 grade) without repeating a grade, and thus, in the correct age; and ( istudents i) with overage caused by repetition and temporary dropout.61 This latter cohort calculation includes projections o f repetition and dropout based on existing and projected rates. Costs. T w o types o f costs are calculated: (i) i) project investment costs, and ( irecurrent costs. Investment costs are calculated from Project costing o f each o f the interventions analyzed, during the life o f the project (2008-2012). The recurrent costs are calculated as per student/year costs in each education level including the projected internal efficiency gains from increased access and lower dropout rates which will require additional school places in the system. Benefits. The first level o f Project benefits, are incurred in the short-term: savings incurred by freed up student places in the traditional system by the accelerated program for overage students. Second, the increased expected completion rates for lower secondary education (grade 9 ) will increase the standard expected wages o f graduates from this education level. Project Interventions and i t s Expected Costs and Benefits The Project Development Objective i s to increase 9" grade completion, by (i) reducing primary education efficiency bottlenecks (repetition, dropout, and non-6" grade completion o f overage students); and (ii) and expansion o f lower secondary education (grades 7-9'h) in rural areas. Project resources will be invested in three key interventions: 0 The Integrated Basic Education Centers (schools with grades 1-9) with an Accelerated Program for 30,000 adolescents and youth in primary education - aim at increasing internal efficiency in schools. Overage youth will receive incentives to finalize 6" grade and continue on to lower secondary education; 0 Lower Secondary Education Access for 60,000 new students. Although, the project does not intervene at the upper secondary, i t i s expected that a percentage o f students will continue grades 10-1 1, and finalize this formal cycle; and 0 Quality Interventions (teacher training, educational materials, and school management focused on quality), which are expected to support long-term increases in school efficiency (reduced repetition, dropout and increased completion). Expected Benefits o f Project Interventions Accelerated Education strategy o Integrated Basic Centers (IBC): f The accelerated education program targeted to overage population enrolled in primary education allows savings in additional years o f schooling from less repetition experienced in traditional primary education modalities and when beneficiaries graduate from lower secondary education, one expects an income improvement (compared with workers without lower secondary education schooling). 6o In Guatemala, the highest level o f efficiency and effectiveness in primary education i s that student finalizes the primary cycle with 6year o f schooling (between 1-6 grades) at age 11. 61 Temporary dropouts do not finalize a grade and leave and return to school after a year or more o f school absence. 119 The Project will increased 9" grade completion o f approximately 30,000 students in IBC, who are part o f n the accelerated program and expected to continue on to lower secondary education. I primary education, over 30% o f students in this education level have more than two years overage, which evidence high repetition and dropout rate. The Project's interventions should have a positive impact in internal efficiency indicators (lower dropout and repetition rates) o f these schools. Therefore, a benefit i s expected given improvements in internal efficiency. Secondary education-graduated students should obtain an income improvement due to completion o f this educational level. Flexible Lower Secondary The Project w i l l also increase lower secondary education for 60,000 more new students-who have already finalized 6" grade, but without access to lower secondary education. 9" grade completion will be projected with both existing and improved efficiency rates. Quality interventions (methodology, materials, evaluation and teacher training) Finally, quality interventions (such as teacher training, education materials and school management improvement) are expected to yield efficiency improvements: (i) increased 6" grade completion, (ii) increased enrollment in 7th grade, and (iii) increased efficiency rates in lower secondary education (expected lower repetition and dropout). All o f these intermediate benefits contribute to 9" grade completion which i s the key basis for the long term benefit calculation: the labor market provides an income premium to a worker with lower secondary education (compare with a worker with only primary education). Each o f these benefits are calculated independently: (i) benefits o f the accelerated program in relation the to 9" grade completion; (ii) benefits o f increase access in lower secondary education and 9" grade the completion-of those already graduated from 6'h grade but without access to lower secondary education; and (iii) benefits o f improving the quality o f lower secondary education, resulting in lower repetition the and dropout rates. The table below summarizes the analysis: Table 9.1: Cost-Benefit Indicators Project Benefits Project Costs 0 Acceleration Program Savings in Traditional Primary 0 Project's investments (accelerated programs, Education Modalities Income strengthening o f lower secondary education, improvements o f beneficiaries with 6" and expanding lower secondary education and 9" grade completion. places). 0 Strengthening o f L o w e r Secondary Education enrollment Income improvements o f beneficiaries with 9" grade completion. 0 Internal Efficiency Improvement 0 Recurrent costs due to efficiency Income improvements o f improvements (needed school places-not increased beneficiaries due to lower financed by the Project-for increased repetition, and dropout rates and 6" 19" demand and lower repetition). grade completion. 120 Analysis Results Accelerated Education Program for Overage Students Accelerated Education Program generate the following: Short-Term benefits by (i) "freeing" student places in the traditional modalities (and making fiscal resources available for new students) and (ii) the net savings o f less additional years o f schooling needed to graduate overage students (minus the increased costs to receive the student in lower secondary schooling). Longer-Term Benefits are calculated by increased earnings o f secondary education graduates (as compared to only 6th grade graduation). The Project expects that 30,000 students w i l l receive the intervention. The cost in 2006 US$ dollars of the intervention i s as follows: Table 9.2: Accelerated Education Program Benefits 2007 2008 2009 2010 2011 2012 2013 2014 2011 2018 2017 -Primary Grades Improveo Earn ngs of Benefcianes s5 9 $5 8 $46 $33 $2 3 51 2 $07 $0 2 $1 6 SO 1 SI 3 $0 1 $1 0 $0 0 $0 0 $00 $00 $00 500 $1 3 a018 2019 2020 2021 2022 2023 2024 2025 2028 2027 d P n m a v Grades $0 0 $0 0 $0 0 $00 $00 500 SO0 $00 SO0 $00 Improve0 Earn ngs of Benefc anes $0 6 $0 4 $0 2 502 502 502 SO 2 $02 SO2 $02 Analysis Assumptions e The students from the accelerated education program advance in the secondary education track based o n the most recent trends o n repetition and dropout rates62. e The cost o f primary schooling i s calculated based on the most recent sector 0 The increased earnings are calculated o n the net average earnings o f a worker with 9" grade education minus a worker with 6th grade education. This i s calculated for the population w i t h 35 years o f age and less, based o n the projected period o f the benefits. The net additional earning benefit reaches US$204 monthly. e The annual dropout rate o f the accelerated program i s 5%. Savings are s t i l l calculated for students who repeat or dropout as it i s assumed these students would have remained for two more years in traditional Primary Schools. e The cost o f the accelerated education program i s US$170 student/year. Strengthening of Lower Secondary Education Strengthening and expanding lower secondary education increases coverage and increases 9" grade completion rates. 9" grade graduates are expected to increase their earnings (as stated previously). The project intends to reach 60,000 new students. Similarly to the previous stated costs and benefits, t h i s intervention yields the following financial and economic flows (In 2006 US$dollars): Table 9.3: Strengthening of Lower Secondary Education Benefits 2001 2608 2008 2010 2011 2012 2013 2414 2016 201% 2017 -cat on Increase0 Earn ngs 50.0 $O,O 50.0 SO.0 $00 SI 9 $38 $57 $5.7 $57 . 2018 2019 2026 2021 2022 2023 2024 2025 2028 2027 p - c a t l o n Increased Earrings $5.7 $5 7 $5 7 $5.7 $57 $5 7 $5.7 95.7 55.7 $57 See F. Esquivel, MINEDUC / World Bank: previously cited. Chapter 2. 63 See F. Esquivel, MINEDUC / World Bank: previously cited. Chapter 7. 121 Analysis Assumptions 0 The students from the lower secondary education program advance in the secondary education 64 track based on the most recent trends for repetition and dropout rates. 0 The increased earnings are calculated o n the net average earnings o f a worker with 9th grade education minus a worker w i t h 6th grade education. This i s calculated for the population with 35 years o f age and less, based on the projected period o f the benefits. The net additional earning benefit reaches US$204 monthly. 0 Improved Internal Efficiency The Project intends to improve the internal efficiency o f lower secondary education, through a series o f interventions to improve education quality: improved teacher qualifications, pedagogical inputs, and school-based management inputs. When quality o f learning i s improved students repeat less, dropout less and complete more years o f schooling. With existing repetition and dropout rates, the following table projects the enrollment and completion levels o f the expected new student, benefited by the Project. Table 9.4: Expected Enrollment and completion with existing repetition and dropout rates in - - Lower Secondary Education 2008 2009 2010 - 2011 2012 Grade 7 20.000 34.250 33.538 0 0 Grade 8 0 9.440 16.166 15.830 0 Grade 9 0 0 5.050 8.649 8.469 With a 25% reduction in repetition and dropout rates, expected from Project interventions, the following table projects the enrollment and completion levels o f the expected new student places, benefited by the Project. Table 9.5: Expected Enrollment and completion with 25% less repetition and dropout rates in Lower Secondary Education. Grade 7 20.000 34.250 33.538 0 0 Grade 8 0 9.980 18.016 18.546 0 Grade 9 0 0 5.788 10.854 11591 With improved internal efficiency rates, completion rates increased. This benefit i s applied to the overall enrollment cohorts in lower secondary education. This increased number o f graduates will also achieve higher earnings, as with the previous interventions. 64 See F. Esquivel, MINEDUC / World Bank: previously cited. Chapter 2. 122 Table 9.6: Q v e n t Increased Earnings of Benefiuanes v n t Increased Earnings of Beneficiaries $96,0 $114,2 $132,9 $152,4 $172.4 $192,9 $213,9 $235,5 $257,7 $280,5 Analysis Assumptions 0 Students advance through the lower secondary education cycle with 25% reduced dropout and repetition rates through the period 2008-2012. The reduction i s applied gradually through out this period. 0 I t i s expected that cohorts that attend Lower Secondary Education programs, will also advance to upper secondary with less repetition and dropout. Thus, these students advance through upper secondary education with reduced dropout and promotion rates o f 10% less through the period 2008-20 12. 0 The increased earnings are calculated on the net average earnings o f a worker with 9 grade ' education minus a worker with 6th grade education. This i s calculated for the population with 35 years o f age and less, based on the projected period o f the benefits. The net additional earning benefit reaches US$204 monthly. costs Costs included in t h i s analysis are: (i) implementation costs o f the accelerated education program, and (ii) increased costs o f higher demand in lower secondary education (due to increased completion rates in p r i m a r y 4 u e to the accelerated program and improved efficiency rates). Thus the project includes: Increased efficiency costs are absorbed by the education system, and not assumed by the Project costs. The following table presents these costs (in 2006 US$ million): Table 9.7: Costs, in 2006 US$ Project lnvestements $27 2 $25,5 $30.4 $7.6 $6,2 $3,2 $O,O $0.0 $0 0 $O,O $0.0 Recurrent System Costs Due lo Improved Efficiency 410 -$1.2 -$09 $0,5 $1,6 $2,5 $3,1 $3,4 $3,6 $3.7 and Completion Rates Project Investments $O,O $O,O $O,O $O,O $O,O $O,O $O,O $0.0 $O,O $0.0 Recurrent Systems Costs Due to Improved Efficiency $38 $3,9 $4,0 $4,2 $43 $4,4 $4,5 $4,6 $4,7 $4.8 And Completion Rates Analysis Assumptions 0 Secondary Education Costs are calculated from the most recent sector d i a g n ~ s i s ~ ~ . 0 Increased internal efficiency costs are calculated within the recurrent costs o f the Project generated during the project period 2008-2012. 0 The cost derived fro the internal efficiency generated during 2008-2012, become recurrent costs after 2013. 65 See F. Esquivel, MINEDUC / World Bank: previously cited 123 Cost-Benefit Analysis Results This analysis concludes that, at a 10% discount rate, the Project i s generating a positive impact: costs are covered and a benefit i s produced. The project generates an Internal Rate o f Return (IRR) o f 3 1%, with a Cost Benefit coefficient o f 13.9. This means that for every dollar spent in t h i s project and i t s associated costs, the benefit i s US$13.9. In t h i s case, benefit i s represented by costs reduction in Primary Education and income improvement o f the Lower Secondary Education graduated students. The benefit margin / project i s provided by the Cost Benefit Coefficient with a 13.9 value. T h i s benefit i s achieved by the cost reduction through the accelerated primary education program and the increased net wage earnings o f 9' grade graduates. The cost-benefit result i s summarized below: Table 9.8: Cost Benefit, in 2006 U S $ Present Value of Net Benefit (In US $) -27.150.000 -16.897.882 -19.054.750 -546.317 21 1.949 3.532.454 9.749.615 16.659.791 23.21 4.696 27.588.892 31.503.658 34.51 1.873 37.070.852 39.034.862 40.578.998 41.646.1 77 42.299.567 42.597.932 42.593.274 42.331 5 5 2 41.853.31 5 Total 453.330.508 Initially-from 2007-20 12-Project investments do not generate benefits, calculated in terms o f earnings o f lower secondary education graduates. From 2013 on, the initial graduates are incorporated into the labor markets, benefits surpass Project costs. Earnings are calculated in two phases: (i) initial earnings for recent graduates with minimal work experience, and (ii) future standard earnings for a worker w i t h a 9' grade completion. 124 Sensitivity analysis The above mentioned results were tested in the following three scenarios sensitivity analysis: Scenario 1 0 33% reduction o f expected benefits due to income improvements (Secondary Education graduated students). This takes into consideration the possibility o f an over estimation o f corresponding benefits. Scenario 2 0 Use o f a 15% discount rate to calculate present values, to provide a more strict calculation and test the strength o f the IRR. Scenario 3 0 Test with a weaker implementation rating -reducing investments and their returns. Sensitivity Analysis Results Scenario 1 Even w i t h a 33% reduction o f expected benefits, the Project still generates a positive impact: costs are covered and a benefit i s produced. The project generates an Internal Rate o f Return (IRR) o f 26% with a Cost Benefit coefficient o f 9.4. This means that for every dollar spent in this project and i t s associated costs, the benefit i s US$9.4. 125 Table 9.9: Sensitivity Analysis, Scenario 1, in 2006 US$ Present Value 2ost-Benefit Coefficient 9,4 of Net Benefit Jlternal Rate of Return 760/ (In US $) -27.1 50.000 -16.897.882 -19.145.809 -883.390 -627.588 1.850.349 6.285.741 10.752.282 15.069.934 18.006.392 20.646.279 22.686.1 11 24.424.725 25.766.714 26.826.536 27.566.046 28.026.657 28.247.850 28.264.574 28.107.718 27.804.542 To 275.627.782 Scenario 2 Even w i t h a 15% net present value-a stricter calculation--the Project s t i l l generates a positive impact: costs are covered and a benefit i s produced. The project generates an Internal Rate o f Return (IRR) o f 31%, with a Cost Benefit coefficient o f 13.9. This means that for every dollar spent in this project and i t s associated costs, the benefit i s US$13.90. 126 2ost-Benefit Coefficient 13,9 of Net Benefit 3101 Scenario 3 This sensitivity analysis assumes a l o w project implementation resulting in 20% less investment (project costs) than expected, and 40% less benefits. That is, a l o w implementation rate will result not only reduced benefits by the percentage o f investments not implemented, but also lower benefits due to late or slow implementation o f the Project. Even when assuming l o w implementation, the Project s t i l l generates a positive impact: costs are covered and a benefit i s produced. The project generates an Internal Rate o f Return (IRR) o f 27%, with a Cost Benefit coefficient o f 10.4. This means that for every dollar spent in t h i s project and i t s associated costs, the benefit i s US$10.4. 127 Table 9.11: Sensitivity Analysis, Scenario 3, in 2006 US$ Present Value 2ost-Benefit Coefficient 10,4 1 Of Net Benefil 1 (in US) -21.720.000 -14.597.558 -16.260.453 -1.328.986 -792.944 1.522.861 5.564.596 9.680.192 13.613.383 16.251.971 18.617.121 20.439.604 21.991.470 23.1 86.304 24.1 28.373 24.783.529 25.189.405 25.381.326 25.390.558 25.244.736 24.968.244 Total 251.253.732 2. Fiscal Sustainability66: General Fiscal Context in the Education Sector. In Guatemala, the largest share o f public education expenditure i s executed by the Ministry o f Education (about 75%), while other public agencies, including the university San Carlos, which executes the other 25%. Public education expenditure has been increasing at a pace o f about 9% per year in Guatemala from 1996 to 2004. This increase follows the recommendations o f the Peace Agreement to increase substantially education e~penditure.~' tables 9.1 1 and 9.12 and figure 9.1, below. See 66 Document elaborated by Enrique Maldonado, Data from Central Bank, Ministry o f Finances and Fiscal Transparency. 67 The Peace Accord called for a 50% increase in education expenditure-GDP ratio between 1995 and 2000; thus, targets have not been fully met, but the trend i s positive. 128 Expenditure in Education, Science and Culture (in 2001 US$ millions) 225.6 321 402.6 481.1 4975 566.3 542.6 5775 5503 6272 Percentage o f GDP 160% 1.80% 2.10% 240% 2.40% 2.70% 250% 260% 2,40% 270% Percent o f Total Public Expenditure 1430% I 5 10% 1570% 17.10% 18.30% 20.00% 19.60% 18.80% 19.70% 1970% Expenditure in Education (in 2001 US$ mllions) 2/ 3766 451.3 461.2 519 5 500.2 532.9 508.0 577.5 Source: MFP and Bank o f Guatemala l/Approved estimates, 2/According to new classification Table 9.13: Comparison of Public Education Expenditure in Central America (% of GDP) (a) El Salvador 2.6 2.7 2.9 3.1 3.3 3.2 Guatemala (b) 2.0 2.3 2.2 2.5 2.3 2.4 2.3 2.5 Honduras 4 5.4 6.1 7.2 7.2 Nicaragua (c) ((d)) 5.4(2.9) 6.8(3.8) 6.7(3.7) 6.4(3.5) 6.5(3.8) 6.9(4) Costa Rica (e) 3.8 3.7 4.1 4.5 4.8 Notes: (a) Public expenditure on education includes all public funds channelled to the educational system through public institutions, therefore including both national and external public funds. (b) New classification (only education expenditure, and excludes social security and public debt). (c) with official GDP data: (d) with "unofficial" GDP data. There i s some agreement that GDP figures may be underestimated by as much as 70%, t h i s second data series reflects this under-estimation (e) Public expenditure includes public funds channelled only through the Ministry o f Education (including both national and external public funds). Sources: El Salvador: W B WDI and L A C Database; Ministerio de Hacienda; CEPAL population estimates Guatemala: Banguat, Ministry o f Finance, and Planning Unit, Ministry o f Education; 2001 -2003: CIEN. New classification: MFP and Bank o f Guatemala. Honduras: 1990-1996:"Eshtdio Secforial Plan Decenal"; 1997-1998: U N A T 2001; 1999-2002: SIAFI; IMF Financial Statistic different volumes Nicaragua: 1995-2000: MCHP and Central Bank, as reported in Arcia (2003); 2001-2002: Directorate o f Finance, MECD. Costa Rica: Central Bank, Ministry o f Finance and ICEC (National Statistical Office). Figure 9.1: Evolution of Education Expenditure % o f total expenditure % o f GDP 1 39"h -- :!5.0% 20.0% 20.0% 5.0% \O.O% 5.0% J.O% 1997 1998 1999 2000 2001 2002 2003 2004 I Education expenditure Target* Education exp /total exp. I Source: MFP and Bank o f Guatemala (Lavarreda, 2005) 129 In spite o f the increase, Guatemala remains the country o f Central America which spends less on education in terms o f GDP, and, with the exception o f Nicaragua, which has a lower income per-capita, in terms o f school-age population. Guatemala was spending less than US$ 100 per school-age population in 2002 while El Salvador, also a l o w spender, was spending more than US$ 150 and Costa Rica almost US$200. For reference, the Latin American average i s about US$300. Table 9.14 and figure 9.2, below, show how public expenditure in education i s allocated across different education levels, with the bulk o f expenditure going to primary education (about 50%, increasing up to 2001), which can be related to the substantial primary enrollment effort o f these last years, while the secondary education share i s very small (less than 1O%), although slightly increasing since 1998. Table 9.14: Functional Disagregation o f Expenditure (in 2001 U S $ millions) Pre-primary 16.1 22.6 31 37 36.1 36.7 36.3 47.5 Primary 171.7 192.4 233.2 259.8 250.7 249.5 241.7 308.5 Secondary 27.5 31.6 37.8 40.4 40.5 44.1 44.5 54.3 Tertiary 51.8 59.1 55.9 74.5 61.5 61.1 57.5 69.7 Administration 20.9 48.8 28.1 36.9 36.5 39.7 47.9 30.3 Other 11 88.6 96.8 75.2 70.9 74.9 101.8 80.1 67.2 Total 376.6 451.3 461.2 519.5 500.2 532.9 508 577.5 Source: MFP and Bank o f Guatemala; l/Includes capital and recurrent expenditures that cannot be allocated across levels (literacy program, extra-curricular activities, adult education, etc). Figure 9.2: Functional Allocation o f Education Expenditure 100% 90% 80% I 70% 60% 50% 40% 30% 20% 10% 0% years The above distribution o f the education budget across the different sub-sectors translates in Guatemala having the lowest per child and per student cost in secondary education in Central America (see table 9.14 below). Per student costs o f secondary education in Guatemala have also been declining, as enrollment has increased slightly but expenditures have remained the same over the last decade (see figure 9.3, below). 130 Table 9.14: Recurrent Expenditure per Child and Student (in 2002 U S $, unless otherwise specified) El Salvador (a) 66.8 171.8 180 217.8 69.5 260.7 55 246 Guatemala na 108 na 140 na 150 Na 684 Guatemala, 34.5 110 133.9 150 24.9 184 97.6 549 200 1 Honduras 29.5 84.2 144.5 142 78.1 238.4 Na na Honduras, 28.2 79.5 152.5 151.2 78.3 280.2 139.8 932.6 2001 Nicaragua 9.9 24 82.7 85.7 17.3 47.4 Na na Costa Rica na na Na 250 na 390 Na na ~~~ ~ ~ Sources: Table 3, MINJZD official enrollment data and Household Surveys (except Costa Rica: Sanigest, 2003). - . - Notes: (a) Primary = basic and secondary = upper secondary. Figure 9.3: Evolution o f Unit Costs v 35 30 * 25 `0 8 a :20 g - & I () 3 15 0 0 (u IO 5 1.991 1,992 1,993 1.994 1,995 1.996 1,997 1.998 1,999 2,000 2.001 2,002 2,003 I.. Pre-primary + Primary - Secondary Source: MFP, MINEDUC and Bank o f Guatemala Fiscal Sustainability of Project Investments: Based o n the above sector-wide fiscal analysis (done through coordination with the PER for Guatemala) an initial fiscal sustainability analysis was done based on a preliminary Project budget o f a US$80 million IBRD loan and US$20 million Government counterpart funds. These budget i s to be executed in five years (Guatemala Government FY) from 2008- 2012. 131 800 - - 35 1: +-4= 500 - :y30 25 -- 20 400 - 300 - tl0 : - i 200 0 loo 2000 2001 2002 2003 2004 T Lower Secondary Education Mineduc Budget In the last 5 years, the total education budget has increased from US$467.04 million in 2000 to U S 6 7 0 . 2 million in 2004, an average annual increment o f 9.7%. During this period, the allocation to basic education represented an average o f 4.85% o f the total education budget, totaling US$23.4 million in 2000, and US$33.2 million in 2004, an annual average o f US$28.6 million. Assuming an even annual distribution o f Project finds (loan and counterpart) o f US$20 million additional loan investments and US$4 million o f counterpart funds from the expected Lower Secondary Education Budget, the loan would contribute 56% o f the existing budget and would require 14% o f counterpart funds. If counterparts' funds are considered additional funds provided by the Government, the lower secondary education budget should i n c r e a s d u r i n g the life o f the project-by 70%. The key question, now, i s if after the l i f e o f the Project, the M O E can maintain the incremental budget allocations generated during the period o f the Project-that i s a 70% increase from the 2005 lower secondary education budget. This preliminary sustainability analysis places the secondary education investments not only in comparison to the original budget within this sub-sector, but as a sector priority with the Ministry o f Education and a pillar o f the general government development strategy and investments. Under t h i s broader focus, the real dollar increment expected (of US$20 million annually to the lower secondary education budget) represents (i) 3.4% o f the general M O E budget (a 113 o f the approximately annual growth o f the budget to-date); ( i0.7% o f the general government budget, and (iii) i) 0.06% o f government revenues as percentage o f PIB. In general terms, sustainable under a broad policy redirected to the development o f Secondary Education. The most important sustainability issue is, then, implementation capacity o f a larger budget, where the institutional investments also included with the Project contribute to (see Project Component 2 and 3, and Institutional Arrangements). 132 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 10: Safeguard Policy Issues Social Safeguards According to the Guatemala Poverty Study (World Bank, 2003) poverty in Guatemala i s higher than in other Central American counties, despite i t s mid-range ranking using per capita GDP. Inequality i s high as well. With Gini indices for consumption and income o f 48 and 57 respectively, Guatemala ranks n among the more unequal countries o f the world. I 2000, over h a l f o f all Guatemalans -6.4 million or about 56% lived in poverty- and 79% o f those were chronically poor (MECOVI). The population i s characterized by a large low-income majority and a small high-income minority, with the top quintile accounting for 54% o f total consumption and the Indigenous peoples (43% o f the total population) claiming less than a quarter o f consumption. Poverty i s predominantly rural, and significantly higher for the Indigenous than the non-Indigenous, although there are significant inequities among ethnic groups. As discussed in the World Bank publication Indigenous Peoples, Poverty and Human Development in Latin America 1994-2004 (Hall & Patrinos, 2005) being Indigenous increases an individual's probability o f being poor. In Guatemala as well as in Mexico, Ecuador, Peru and Bolivia, Indigenous peoples continue to have fewer years o f education, and while the gap i s narrowing, education outcomes are substantially worse for Indigenous peoples, which may be indicative o f problems in education quality. The study shows the correlation o f educational attainment and poverty in Guatemala, and concludes that improving the educational achievement o f non-Indigenous and Indigenous (particularly in Primary school) would be a highly effective means o f helping them escape poverty. Non-academic factors are also important. For instance, malnutrition rates among Guatemalan children are abysmally high -among the worst in the world. Some 44% o f children under five are stunted (According to the Height-for-Age (HAZ) measure). There i s a strong correlation between poverty and malnutrition, as four fifths o f malnourished children are poor. Malnutrition i s declining, although, at a lower pace than in other countries. Progress has been made in education in Guatemala in recent years, although performance in education s t i l l lags behind. With an illiteracy rate o f 31%, only Nicaragua and Haiti rank worse in L A C . Likewise, educational attainment i s low (4.3 yrs. on average), particularly for Indigenous (2.4 y r s o n average). Although pre-Primary and Primary enrollment rates have expanded recently in Guatemala, coverage i s s t i l l l o w and biased towards the non-poor. The net enrollment rate for Secondary education i s 28% at the national level, and 12% for Indigenous. The educational system i s inefficient. Only 27% o f those starting first grade, finish 6* grade in the right age group; and only 2% o f those will finish Secondary school. The situation i s worst in the North and West o f the country. "Education i s the means to overcome discrimination and transform a society that tolerates cultural differences into a society that prides o n `intercultural' values". (from MINEDUC'S Long-term National Education Plan 2004-2023) 133 1. Assessments and Informed Consultations The project design i s taking into consideration recommendations and lessons learned from the Integrated Social Assessment carried out as part o f project preparation in 2006, and other consultations carried out at the central, departmental and municipal levels since 2000. 1.1 Integrated Social Assessment An Integrated Social Assessment was carried out by a local independent consulting team under the coordination o f the Technical and Bilingual Vice-Ministries o f MINEDUC, DICADE, DIGEBI and DIGEEX. Results o f the consultations were incorporated in the project design. A purposehl sample o f 61 schools (28 Primary, 22 Lower I ' Secondary (bcisicos), and 11 Upper Schools (diverszjkados) were selected, to include both all-Spanish and Bilingual (Spanish-Indigenous language), public and private schools in 35 communities located in 7 Departments o f Guatemala (Huehuetenango, Alta Verapaz, Totonicapan, Quiche, Jalapa, Suchitepequez and San Marcos). Some 608 students, 212 teachers, 81 parents, 44 graduates o f Primary and Lower Secondary schools, and 57 school Principals were consulted through focus groups or interviews. The assessment explored (a) alternative pedagogical modalities such as Guate-Telesecundaria, Tutorial Learning System (SAT), School-home system (NUFED), the Association o f Mayan Lower Secondary Education Centers (ACEM), Lower Secondary Technical school, and (b) alternative financing administration modalities: by central government (MINEDUC), by communal boards or COEDUCA (PRONADE), by cooperatives (tripartite financing: national-municipal-community), or by private financing (NGOs, Associations). The main objectives o f the social assessment were: (a) mapping and social analysis o f the education conditions o f the rural and peri-urban Primary, Lower Secondary and Secondary schools, particularly of low-income overage youths o f 13 to 18 years o f age, at risk o f desertion, multiple repetition, social or academic un-adjustment; (b) to analyze (i) social feasibility o f the strategies and modalities suggested the by the project components for the non-Indigenous as well as the Indigenous schools taking into account the opinions, perceptions and preferences o f stakeholders and beneficiaries, and (ii) participation and the social communication schemes for the project based on the present and potential social organization of the school communities in the different modalities being assessed. The main findings (conclusions) o f the social assessment included: (i) Primary Education General conclusions The low level o f education o f parents impedes critical appreciation o f academic deficiencies in Math and Language standards in Primary school. Most parents think quality i s acceptable, while reality shows that 40% o f students fail these subjects in seventh grade. Additional reinforcement i s recommended to avoid 134 failure. On the other hand, teachers claim to be "unaware" o f the l o w quality o f education, because they ignore the standards they should aim at. Ethnicity e Indigenous self-identification and the identification by others may vary greatly, thus, the importance o f including the ethnic variables in the information systems, so that information can be adequately disaggregated. For example, in Suchitepkquez, while 96% o f students self-identified as Indigenous, the Principal and teachers identified the student body as non-Indigenous because students neither wear the Indigenous costume nor speak an Indigenous language at school. Overage, repetition, and desertion - Late entrance to preschool and overage i s more common in Indigenous than in non-Indigenous areas. 58% o f students in San Marcos, 37% in Quichk, 31% in Alta Verapaz, but only 4% in Japala (ladino) were overage. Some 6* graders interviewed in Alta Verapaz and Suchitepkquez were 17-18 y r s old. Some o f the parents' reasons to delay entrance to preschools are: (a) parents don't want young children walking to school alone; and (b) they don't like language shock at school. Overage students tend to suffer from l o w self-esteem and social inadequacy. Some o f the reasons expressed by children for dropping-out or repeating a grade were: (a) poverty (they go to school without breakfast), (b) parents take children out o f school for farming or migration to the lowlands, (c) some children do not have time for homework during seasonal agricultural work. First grade teachers have embraced the message to improve the repetition indicator, but they require guidance to keep quality standards. The highest repetition indicators were not found in the Indigenous communities, but in the East and Southern Coast o f the country, where communities are non-Indigenous. One o f the biggest causes o f desertion o f school girls i s teenage pregnancy. However, there i s total absence o f programs targeted to control the problem or modify behaviors. (ii) Lower Secondary Education ' Although Primary School teachers believe students are well prepared for LSS, 7 grade teachers think preparation i s precarious, particularly in M a t h and Reading, where 40% o f students fail. Costs incurred, i.e. uniforms, books, and particularly transportation deter access to schools. Given the choice o f wearing or not wearing a uniform, ladino students opt for wearing i t (as a s i g n o f distinction and status) but Indigenous girls continue to wear their traditional huipil. The gender gap o f access to schools increases as costs in Lower Secondary school increase, making it more difficult for girls to finance LSS costs. Repetition and dropout rates o f those girls who attend LSS are lower for girls than for boys. Conventional schools (public) seem to be favored by parents over all because costs are lower, they have their o w n building, and they have more teachers. Telesecundaria i s the next favored option because o f i t s affordability and evening hours o f operation, although the existing ones are i l l- equipped. Most teachers are insufficiently trained. Only one third o f teachers interviewed had a Teaching Diploma (high school) or three years o f College approved. Cooperative Institutes are financially ill- prepared to attract specialized teachers. It i s not uncommon to find Primary school teachers teaching Lower Secondary, or a Lower Secondary school language teacher teaching sciences, or a secretary teaching a Language class (the latter are graduates from a 100-hours Training Program at the American Guatemalan Institute). The 2005 standardized tests for ninth graders show big deficiencies in the NUFED and IGER systems and better results for Telesecundaria. Some 75% o f students in general fail in M a t h and Reading (except for PEMEM students). 135 The main recommendations for project design were: (i)Ethnic and educational variables 0 Include the variables "pueblo (ethnicity)" and "mother tongue (Ll)" in the information systems, so that data can be disaggregated. 0 School education statistics should be publicized and discussed with teachers and parents, using comparators at local, municipal or departmental levels. Otherwise, teachers have a myopic inward classroom-centered view. (ii) Preschools 0 In Indigenous areas, all the preschools should be bilingual, not Spanish, as children need the opportunity to make the transition from native language to Spanish in a non-traumatic fashion. Overage also occurs when parents delay preschool entrance until the child learns some Spanish before approaching the school. (iii)Primary Education Accelerated Primary Education Programs 0 Disseminate clear guidelines for the accelerated program: ages targeted, flexible schedules (to account for students who work), facilities needed (some schools will need to build an extra classroom), duration, and expected participation o f teachers and parents commitment. 0 The demand o f accelerated programs i s uneven. N o t all schools need it. N o t all schools are ready for it. 0 Teacher recruitment and training should be voluntary o n the part o f the teachers. Consider training other unemployed teachers available in communities. 0 Teacher training should be paced: initial training plus follow-up in-service training to deal with local problems (bilingualism, students' lethargy after long absence from school). 0 Careful selection and elaboration o f culturally pertinent materials i s crucial. (iv) Lower Secondary Education 0 Introductory reinforcement o f remedial M a t h and Language courses at the beginning o f seventh grade. 0 Scholarships and subsidies should be targeted particularly to girls, for costs that would deter them from accessing schools (inc. uniforms, transportation, and books). 0 Telesecunduriu i s considered by parents as the best alternative to conventional schools with more potential to reach-out to isolated areas. It i s recommended that, before opening new Telesecundurias, the existing ones be strengthened and equipped adequately. 0 Standard test results should not be dealt with secretly, but should be publicized and compared among schools. 1.2 National Consultations on Education Reform (1999-2004) Since 1999 extensive national consultations have been led by the Consulting Commission for Education Reform (CCRE) conformed by MINEDUC, universities, churches, NGOs and civil society. Consultations were implemented at the central, departmental and municipal levels and consolidated in the Long-term National Education Plan 2004-2023. The first five years (2004-2009) would focus o n the expansion o f education coverage and the gap reduction between traditionally-favored groups (urban quintiles 3 to 5) and those traditionally neglected (rural, quintiles 1 and 2). Strategic areas o f the Plan include: 136 Coverage with Equity. Improve coverage expansion o f education w i t h focus on quality, ensuring equity o f access and socio-cultural pertinence. Resources should be targeted to children in excluded communities, Indigenous peoples, rural and poor peri-urban areas. Four key goals are: expansion o f formal and non-formal education; Alternative Modalities o f Education; Complementary education programs; and infrastructure refurbishing. Quality. Improve the quality o f education and curricular transformation, adapting curricular content to the regional and local needs. Human Resources. The focus i s on the creation o f teaching opportunities in traditionally neglected communities with lesser access to education, particularly in Indigenous rural communities and the handicapped. Teachers w i l l be trained in the recently created Bilingual and Intercultural Teaching Schools. Multi-cultural and Intercultural education. Promote the concept o f an intercultural society that respects different cultural identities without discrimination. Expand Intercultural Bilingual Education to master both the native and Spanish languages, and perhaps a third language (English). Strengthening o f women's participation, ensuring girls' equal access to education. Decentralization o f education, sector modernization. Strengthening o f Education Councils. Sustainability. I t entails the financial organization and rational use o f resources. Monitoring and evaluation o f the Plan. Internal and external monitoring process. Stakeholder participation in internal monitoring process. 1.3 National Consultations on Teacher Training at Initial and In-service levels (2005) A study sponsored by MINEDUC and UNESCO was conducted in 2005 by the local firm Arag6n & Associates. I t included both public and private schools having Initial Teacher Training Programs. The purpose o f the qualitative study conducted in 35 municipalities o f 22 departments was to survey the perceptions o f school Principals, teachers and students with regard to the changes proposed in said programs. Some 148 school Principals and Vice-Principals, 205 teachers and 998 students enrolled in Teacher Training Programs (1 2" grade) were interviewed. Survey results included: (i) Both teachers and trainees believe the two subjects requiringurgent quality improvement in teacher training courses are Mathematics and Language/Literature; (ii) Some 76% o f interviewees believe `initial' teacher training should be done in high school (Escuelas Normales), and 48% think professional teacher training should be done at a university. (iii) The duration o f teacher training programs should be between 3.5 and 4.0 years; (iv) Some 85% are in favor o f government subsidized (i.e. scholarships) teacher training programs; (v) Some 65% believe the most important quality o f a new teacher i s to be considered a model and a friend, and only 5 1% think the mastering o f subjects i s more important; (vi) Favorite Teacher Training times are Saturdays and after school, in person rather than virtual learning. 2. Demographic Profile of Guatemala As stated in the Long-term National Education Plan 2004-2023, Guatemala i s conformed by 25 linguistic groups classified under four ethnic groups: Ladino, Maya (21 groups), Garifuna and Xinca, each with i t s own cultural and linguistic background and identity. According to the X I national census (2002), 41% o f Guatemalan population or 4,433,218 people are Indigenous. O f those, 81% or 3,573,104 correspond to the four largest linguistic Mayan communities: Mam, K'iche, Q'eqchi' and Kaqchikel and 19% or 838,860 include the other 19 ethnic groups. The four 137 largest groups are spread in several departments, thus, mapping o f poverty and education data show differences within each group and department. Table 10.1: Ethnic Composition of Population in Guatemala (2002) Source: National Institute o f Statistics (NE) X I National Census 2002 The Indigenous Profile: Maya, Garijiuna and Xinka o Guatemala (World Bank, 2001) shows the f spreading o f Indigenous population throughout the country, although it concentrates in the highlands and the West. The departments with the highest number o f Indigenous peoples are Totonicapan and Solola, followed by Alta Verapaz, El Peten and El QuichC (Ixcan) which received a large wave o f migration and refugees in search o f land and opportunities after the Peace Accords. The Mayan o f Guatemala i s the largest group o f descendents o f the Mayan Empire in any country. Other Mayan groups live in Mexico, Belize and Honduras. The origin o f the Xinka i s Meso-American. The Garifuna, o f African descent, migrated to Guatemala through the Caribbean and also established themselves in Honduras, Nicaragua and Costa Rica. 138 3. Legal Framework of InterculturalBilingual Education (IBE) The legal framework o f B E i s extensive, as shown in the 387-page book by MINEDUC, titled "Compilation o f Intercultural Bilingual Education Laws (Nov. 2005). Legislation includes: The E O Convention 169 on Indigenous Peoples and Tribal Groups, ratified by Guatemala in 1989. The 1985 National Constitution o f Guatemala (Art 58) recognizes "the right o f individuals and communities to preserve their cultural identity, values, languages and traditions" and states that bilingual education should be provided in regions predominantly inhabited by Indigenous peoples (Art 224). The Education Law (Decree 12-1991) states that "education should respond to the multilingual, multiethnic and pluri-cultural needs o f the communities it serves" (Art 1) in order to strengthen the identity and values o f linguistic communities (Art. 57). The International Labor Organization's Worst Forms o f Child Labor Convention, ratified by Guatemala in 2001. I t prohibits child soldiery, slavery, prostitution and trafficking. The GOG classifies under child labor all work by children under 14, unless they have a work permit. The Decentralization Law (Decree 14-2002) highlights respect for the multi-ethnic, pluri-cultural and multi-lingual nature o f the Guatemalan society (Art 4). The Municipal Code (Decree 12-2002) states that the Municipal Board w i l l organize Education, Intercultural Bilingual Education, Culture and Sports Commissions. The National Languages Law (Decree 19-2003) demands respect for the use o f Mayan, Garifuna and Xinka languages (Art 13) and the use o f Mayan languages for the delivery o f public services (Art 14). I t also demands that information dissemination o f all public services to Indigenous communities be done in their own languages (Art 15). Finally, i t recommends that public servants serving Indigenous communities be trained to speak the local languages (Art. 16). The Peace Accords and Intercultural Bilingual Education The 36-year civil war ended in December 1996 with the signing o f the Peace Accords between the Government o f Guatemala and URNG. Two accords are relevant to Education: the Agreement on the Identity and Rights o f Indigenous Peoples and the Socio-economic and Agrarian Accord. The accords include important aspects o f the Process o f Education Reform and curricular transformation, teacher professionalization, Bilingual Education, literacy and special education programs, education coverage and expenditure. The accords acknowledge the history o f discrimination against Indigenous peoples and emphasize the need for linguistically and culturally appropriate Indigenous education. The Accord on the Identity and Rights o f Indigenous Peoples, signed in March 1995, proposed to formally define Guatemala as a multi-ethnic, multi-cultural and multi-lingual nation and recognized that the identities o f the Indigenous peoples are fundamental to the construction o f national unity. The accord contained many provisions to overcome the historic exclusion and exploitation suffered by Indigenous peoples. I t included: proposals for anti-discrimination legislation; the protection o f cultural rights; education reform (including decentralization and the promotion o f multilingual and multicultural education); recognition o f the traditional forms o f organization; and the creation o f several joint commissions (comisiones paritarias) to guide these reforms (Jonas 2000). Unfortunately, poor voter turnout at a referendum in 1999 resulted in a rejecting o f a package o f constitutional reforms necessary for full implementation o f this accord. However, a Framework Law for Implementation o f the Peace Accords (Decree 52) was passed b y congress in 2005 and the Anti-racial Discrimination Law (Decree 57) in 2002. The former established 139 norms and mechanisms for compliance with the Peace Accords, and nominated a Peace Accords National Board conformed by representatives o f the executive, legislative and judicial, the Planning and Finance Ministries, political parties, Indigenous peoples, women, unions, farmers, private sector, human rights, academics and an observer representingthe international community. Based on the Accords the Vice-Ministry has defined a Strategic Framework for the Revitalization o f the Intercultural Bilingual Education to be implemented in 2004-2023. 4. The Intercultural Bilingual Education (IBE) Program IBE struggled through socio-political processes in the 1980s and started its consolidation in light o f the Peace Accords after 1995. The first attempt to provide bilingual education was made by MINEDUC with the support o f USAID in 1980. After a feasibility study, forty schools were created in the four main Indigenous regions including the four largest linguistic groups (Mam, K'iche, Q'eqchi and Kaqchikel). In 1984, the National Bilingual Education Program (PRONEBI) was created, and in 1995 i t was replaced by the National Directorate o f Intercultural Bilingual Education (DIGEBI) under Decree 726-95. In 2003, the Vice-Ministry o f Intercultural Bilingual Education was created at MINEDUC, under Decree 526-03. IBE has grown rapidly over the years. There were 800 schools in 1995, compared to 3,800 in 18 departments in 2005. At present, IBE i s partially implemented in 14 Mayan languages, Xinca and Garifuna. IBE i s implemented mostly in rural areas. I t i s noteworthy that Bilingual education in metropolitan areas refers to English-Spanish. 4.1 The IBE model and definition of "bilingual school" The definition o f "bilingual school'' i s s t i l l unclear; therefore, bilingual schools are not regulated yet. The conceptual, pedagogical and operational frameworks o f the IBE model are under revision. The confusion stems from the Constitution itself, Section 4 on the Right to Education, Art. 78 which states: "Teaching at schools that have a predominant Indigenous population w i l l be administrated bilingually". The term `predominant' has not been defined. A t the moment, a bilingual school i s defined as `a school that has at least a bilingual teacher'. Consequently, there are many more `bilingual schools' on paper than those actually implementing bilingual education. 4.2 Student population in IBE The long term goal o f IBE (2004-2023) i s to provide at least Primary education to all Mayan children. The short term (2004-2007) i s to provide bilingual pre-Primary school, and up to third grade to all children. However, at the moment, IBE model i s scattered. Some schools offer IBE in pre-Primary, others in first and second grade, others from first to third grade, others pre-Primary up to second or third grade and others up to sixth grade. Others, in the private sector, support the continuation o f bilingual education in grades 7-9. 140 Table 10.2: Comparison of Indigenous Students and the National Student Population for 2004 I I National Total I IIndigenous n l ~ ~ ~ ~ ~ e M ao eu s I Indigenous Female 1 Students Receiving I % of Indig students in 1 *In Teacher Training Programs (Magisterio Bilingiie) The above table shows that about 30% o f the student population in the Guatemalan education system i s Indigenous. However, only 26% o f the Indigenous students receive Intercultural Bilingual Education. Given the emphasis placed on IBE pre-Primary, 62% o f Indigenous enrolled in this level receive IBE. However, only 23% o f Indigenous enrolled in Primary school, none o f those enrolled in grades 7 through 9, and 14% o f those in grades 10-1 1 receive "formal" IBE education. 4.3 Teacher supply and Training Initial teacher training for the most part i s not done in tertiary education, but in upper Secondary education. In-service teacher training i s not regulated. A teacher i s considered `bilingual' when he/she has passed a bilingual exam at the JEDEBI. However, the exams are not standard, but prepared by each JEDEBI. Teacher training in IBE received a boost at the end o f the 1990's with the support o f GTZ, (PEMBI), European Union (PROASE), U S A I D (PAEBI). In 2001 the National Dialogue and Consensus for the Education Reform (MINEDUC-CCRE) agreed o n the expansion o f IBE, and to this effect i t launched the creation and construction o f Teacher Training Institutes (Institutos Normales OJiciaZes) for the training o f bilingual teachers. At the moment there are 18 Nomales training IBE, and 8,423 teachers (including 1,005 trained in 2005) certified to teach B E : 5 for the K'iche, 3 for Q'eqchi, 2 for m a m and Kaqchikel, and one for each o f the following: Qinjobil, Tnitujil, Chbrti', Ixil, Achi, and for the Ixcan region. Some 27% o f the total number o f teachers are Indigenous, and o f those 40% have been trained to teach IBE. A large number o f Indigenous teachers have been hired to teach in monolingual Spanish schools. Some 3,600 hundred o f Indigenous teachers teach in non-Indigenous schools. A large number o f teachers teaching grades 7 to 9 are actually Primary school teachers not qualified to teach Lower Secondary school. Table 10.3: Number of Indigenous Teachers Certified to teach IBE (2005) Source: Anuario Estadistico MINEDUC. DIGEBI. 2006. 141 Out o f the total o f 76,684, some 11,000 teachers were hired under the PRONADE program, and 2,587 o f those are bilingual teachers. A number o f teachers (Indigenous and non-Indigenous) currently teaching bilingual schools are a result o f the Castellanizacidn trend o f the 1960's and 1970's, adding uncertainty to the use o f L1 in the classroom. That trend enforced the use o f Spanish and banned the use o f Indigenous languages. 4.4 Language of instruction in Primary and Secondary school At the national level, 84.5% o f first grade students receive classes from teachers who speak the same language than they do, and only 76% o f the teachers i s totally literate in that language. But, the situation in Indigenous schools i s much worse. Teachers' proficiency in L1 i s low. Most bilingual teachers in the system may speak L1 (different proficiency levels) but are not proficient in reading or writing it. Only 30% o f teachers are pedagogically trained to teach intercultural bilingual education. Out o f 29,73 1 Indigenous teachers in the system, only 8,423 are trained in IBE (in Normales). The assessment during project preparation analyzed M I N E D U C first grade statistics and found that in 65% o f first grades in the four major language groups (Mam, K'iche, Qeqchi, and Kaqchikel which account for 81% o f the Indigenous population in Guatemala), classes are taught in the language o f the students. The rates are commonly lower for minor languages, l i k e Achi (9.8%), Garifuna (11,7%), Poqomam (15.8%). The percentage o f students that receive classes in their own language i s less than 35% for Indigenous communities, about 40% at the national level and considerably lower for minor languages such as Chorti (3.6%) or Poqomam (9.1%). A similar situation i s true for second and third grade. Grades 7 through 9 are taught almost entirely in Spanish in all the Lower Secondary schools in the country. Only the classes called "Language, and Culture" are taught in L1, That i s the case o f the NUFED Lower Secondary Schools (500 in the country) operating in Indigenous areas. Other Lower Secondary School modalities include the Association o f Mayan Lower Secondary Education Centers (ACEM) operating in 27 schools out o f 37 A C E M schools (25 subsidized by GOG) in nine linguistic regions (Tzutujil, Q'eqchi, Achi, Awakateko, Mam, Popti, Q'anjob'al, Poqomam, and K'iche); and S A T (Tutorial System) operated by two NGOs Talita Kumi and Ak'Tenamit in two Indigenous regions including the Alta Verapaz and Izabal without GOG support. An Indigenous Language class and a Human Rights class are included in the curriculum. 4.5 Supply of Education Facilities Table 10.4: Education facilities at national level and for IBE schools Level Total schools IBE schools Pre-Primary 8,678 2,758 Primary 14,207 1,693 Grades 7-9 68 1 0 Grades 10-1 1 187 0 TOTAL 23,753 4,45 1 O Y 100.00 18.7 142 Only 18.7% o f pre-Primary and Primary schools, and neither Lower Secondary Schools nor Upper Schools, are "officially" recognized as bilingual at the national level. 4.6 Teaching and learning IBE Materials Complete bilingual teaching and learning materials for IBE classrooms exist only for the pre-school level. For first to third grades, there are texts in the 4 major languages for Mayan Culture, Mathematics, Mayan Language, and Reading. There are also reading books in the other 10 languages. Since there are no teaching guides for IBE (but only general teaching guidelines), teachers find it difficult to use the texts. Unfortunately, the number o f texts printed i s quite insufficient and does not always reach the schools. Teachers are expected to produce their o w n materials, but in reality this i s not happening. Consequently, IBE materials are scarce in official IBE schools. Alternative IBE schools may have a better supply o f materials (Fundacidn Kaqchikel, Academy o f Mayan Languages, ACEM, and others). 4.7 Education Quality and Internal Efficiency in IBE schools Several studies have measured internal efficiency o f IBE schools (promotion, dropout and repetition) using official schools as control group. I t has been suggested that IBE can be both effective in raising test scores and cost effective (Patrinos and Velez, 1996). A more recent study by Rubio, Bilingual Education in Guatemala: Situation and Challenges (2003) concludes internal efficiency in IBE schools was higher than the control group in both Primary schools (grades 1 to 6) and first grade as evidenced in two different time periods 1998 and 2002. Table 10.5: Internal Efficiency of IBE schools compared to control group Source: Rubio (2003). Report MEDIR-IEQ-11.USAID/G Schools in the private sector have higher scores for internal efficiency than public schools. Completion rates in sixth grade in the private sector are close to 55%, and women perform better than men. Test results in M a t h and Language o f Mayan and DIGEBI students were different when the tests were presented in Spanish or in an L1.There were no significant differences in M a t h and Spanish between the two groups, except for the Kaqchikel who performed better in Spanish than in their native language. Also, when tests were applied in the native languages, the Q'eqchi and M a m performed better than when the tests were applied in Spanish. The economic analysis carried out during project preparation concludes that the Tele-secundaria i s the most efficient o f school modalities, and even more efficient than the schools in the private sector. The rate o f completion in ninth grade i s 55%, and girls have higher levels o f performance than boys. 143 4.8 Information systems I 2004, DIGEBI and the Information Unit (UDI) began to consolidate databases and work coordinately. n The present social assessment recommends the integration o f the "ethnic group" and "native language" variables in all the information systems at the local, municipal, district, departmental and national levels. a. Other Issues Affecting IBE n (a) Illiteracy. I Guatemala 3 o f every 10 adults cannot read or write. Illiteracy i s more severe in rural areas (44%) than in urban areas (1 8%). I t i s more common among women (37%) than men (25%) and among Indigenous peoples (48%) than non-Indigenous (20%). Indigenous women have the highest illiteracy rates in the country (65%). (b) Average schooling. Average schooling in Guatemala i s low. I t i s approximately o f 5" grade at the national level, however, urban adults reach an average o f 6" grade, but rural adults only reach an average o f 3rd grade. I general, the Mayan population (quintiles 1 and 2) has the lowest average schooling (2nd n grade), with important differences among them. The Kaqchikel and K'iche show higher average schooling than the M a m and Q'eqchi. O n the other hand, the Xincas's schooling average (5" grade) compare to the ladinos o f quintiles 1 and 2. (c) Student Overage. This phenomenon i s not exclusive but i s more common for Indigenous and isolated rural schools. The overage in first grade for the ladino schools i s 22.6% compared to the national average o f 26.4%, however, for some minor language groups i t i s much higher: 53.6% for the Akateko, 41% for the Chorti, 39.1% for the Q'anjob'al, and more moderate for the major languages: 22.9% for Kaqchikel, 29.5% for K'iche, 34.4% for M a m and 36.6% for Q'eqch. The problem increases with age, and the national overage average for 31d grade i s 38.8%, for ladino schools 32.2%, for the major Indigenous languages between 35% and 60%, and highest for Akateko where 75.5% o f students experience overage for their grade. Table 10.6: First and Third Grade Overage. National Averages compared to Students whose Mother Tongue i s an Indigenous Language Throughout the social assessment it was noticed that both teachers and parents in rural communities, particularly in Indigenous ones, do not think the overage factor i s a problem. Overage occurs at all levels: Primary, Lower Secondary School and Upper School. 144 Reasons for running into overage situations, as explained by a K'iche interviewee ",,. a K'iche-speaking child entering first grade faces a huge language barrier. The teacher makes tremendous efforts to teach him Spanish, but this process takes long, so the child i s likely to fail first grade, once, then twice, and then he i s already overaged. This experience i s worse when children have not gone through preschool so they use first grade as the adaptation period. T o avoid this, parents register them in first grade when they are more mature (8 or 9 y r s old). If the child does not understand the language o f the teacher, he will need to repeat the grade. Also, parents with multiple children can only send them to school at the times when they can afford the expenses.. .". (d) Dropout rates for Indigenous students. The highest dropout rates occur in first grade, particularly for monolingual students (in L1) who have not attended pre-school, as they are confronted with many challenges: (a) students feel intimidated by teachers who speak a new language (Spanish) and scorn students for not speaking Spanish; (b) students feel their native language i s being suppressed and their culture undermined; (c) the social adaptation to the ladino-oriented culture may take more than one year; (d) learning to communicate, read comprehensively and write in Spanish may take more than a year. Consequently, repetition or withdrawal i s most common after first grade. The worse case scenario i s that o f Peten (Region 8), where net enrollment rate drops by 50% when passing from first to second grade. (e) Completion rates. They are very low, due to the significant internal inefficiency o f the education system at the national level, where only 27% o f students starting Primary school are expected to finish it with appropriate age, and only 2% o f those initiating Primary education are expected to finish Secondary school on time. (f) Gender. Studies show that Indigenous women in general have less access to education than men, however, once in the system, they have higher probability to succeed in school than men. Mayan men show 1.83 more years o f schooling o n average than Mayan women. b. Strategic Goals of Intercultural Bilingual Education by 2007 The strategic framework o f the Revitalization o f Indigenous Education (2004-2007), as outlined by DIGEBI, contemplates developments in four areas: (a) Bilingualism for Indigenous communities. That 75% o f first grade students in communities predominantly Indigenous receive bilingual education by 2007. T o that end, 6,000 new teachers capable o f teaching intercultural bilingual education should be hired, and 3,400 bilingual teachers presently teaching in non-bilingual schools should be re-directed to the bilingual schools. As a result 325,000 more children (preschool to third grade) would receive bilingual education. (b) Curricular Development. The National Basic Curriculum (CNB) i s being applied now up to fourth grade (2006). The goal by 2007 i s the application o f the C N B up to sixth grade in schools having an Indigenous student majority in communities speaking the four major languages: K'iche, Q'eqchi, Kaqchikel, and Mam. T o achieve this goal, the participation o f the school community (teachers, parents, NGOs, Indigenous organizations, international cooperation) with technical assistance organized by MINEDUC, and availability o f information technology will be needed for the participatory formulation o f the Education Projects. Equally important will be to measure progress in intervened communities with the use o f standardized testing. Curricular Development i s expected to benefit 500,000 Indigenous students by 2007. 145 (c) Institutional changes. The goal i s to de-concentrate DIGEBI towards the "community school" and to create a Regional Council o f Education in each one o f the 16 linguistic communities. An important responsibility o f the councils w i l l be the adaptation o f the CNB to an intercultural regional curriculum (Meso-curriculum). (d) Intercultural education for all Guatemalans. A promotion o f the equitable values o f the different cultures living side-by-side, reflecting these intercultural values in school materials to be used in the classrooms. c. Cross-Cutting Themes Considered in Project Design. Stakeholder Consultations inside and outside MINEDUC (a) Social Communication Strategy. The promotion o f concepts, strategies, mechanisms and instruments under the components and subcomponents o f the project are aligned with the general Social Communication Strategy o f MINEDUC, and consistent with the cultural and linguistic cosmovision o f the stakeholders and beneficiaries. The protocol for introduction, socialization (informed consultation) and promotion o f the programs should include the official authorities (UDE, JEDEBI) and the local traditional authorities recognized by the rural aldeas and caserios for centuries (Alcalde Auxiliar, Council o Elders, among others). I t i s recommended that the above promotion and f dissemination o f information be done publicly through community assemblies, with the participation o f the school community, that is: the UDE and JEDEBI, School Principals and Councils, District Officers, teachers, parents, students and civil society organizations. Instructional materials used to show the processes, procedures and participation schemes should be colorful, attractive, simple, and easy to follow and remember. The materials should be in Spanish or bilingual (Spanish-Indigenous languages), in the 4 major Mayan languages Kaqchikel, Q'eqchi, Mam, and K'iche). (b) The participation, social control and support o f the school community (Principal, teachers, parents, students, civil society working closely with the school) are key elements o f success for the project components, for Participatory Planning o f school programs and for the local monitoring o f said programs. Social participation includes the open discussion o f pedagogical and administrative issues affecting education, as well as systematic reporting back to the community. Equally important i s the strengtheninglcreation o f Administrative Boards/ Committees/ School Associations (with legal personality), and the promotion o f School Education Projects. (c) To ensure equity, the targeting o f resources, institutional strengthening, teacher training, supply o f materials (Spanish or bilingual) in terms o f quantity and quality should respond to demand. For example, programs and resources targeted to a Spanish-speaking municipality (i.e. Jalapa) should be in Spanish, while those for Indigenous municipalities (Le. Totonicaph) should be bilingual. Consistent with the 2004-2023 Plan, resources should be targeted to traditionally neglected areas such as Indigenous regions, girls, and the handicapped. (d) Monitoring and Evaluation. The information, monitoring and evaluation systems should include the "pueblo" (ethnicity), "language" and "gender" variables, to be able to establish a baseline that would allow monitoring o f performance as well as process indicators. Having the above indicators, the baseline w i l l allow the implementation o f impact evaluations with disaggregated data for different ethnic groups and country regions. (e) The codification o f schools as "Spanish", or "Bilingual (Total or Partial)" i s key for monitoring performance o f the different components. I t w i l l be necessary to identify the language o f instruction, and the level o f bilingualism at the time the baseline i s constructed. This distinction w i l l be essential for monitoring and evaluation not only for the purposes o f t h i s project, but for the sector as a whole. 146 Presently, all schools have codes but it i s impossible to distinguish Spanish from bilingual schools on the basis o f the codes. It i s suggested that the same codes remain, but a marker o f total bilingualism (BT) or partial bilingualism (BP) be allotted. DIGEBIjointly with the Information Unit (UDI) would lead the effort o f identification o f bilingual schools through i t s Unidades Departamentales de Educacibn Bilingue Intercultural (JEDEBI) in the departments with Indigenous student population. A standard instrument should be used for the collection o f this data. d. Indigenous Peoples Plan (including Garifuna and Xinca) Given the presence o f Indigenous communities in the Project area, the Operational Policy 4.10 i s triggered. The Indigenous Peoples Plan (IPP) includes both activities accounted for under project components and activities that w i l l need separate financing. The Plan was formulated with the participation o f the Vice-Ministry o f Intercultural Bilingual Education, active participation o f the technical staff from the Directorate o f IBEDIGEBI, DICADE and DIGEEX in the discussions carried out for the design o f each component o f the Project, and with technical assistance o f the WB. The following IPP has been approved by MINEDUC and disseminated in Spanish in the MINEDUC's web-page, and in English through the Info-shop o f the World Bank. For project negotiations, MINEDUC w i l l send to the Bank a note signed by the Minister thereby approving the Indigenous Plan, and committing to implement and include it in the project Operational Manual. The Indigenous Peoples Plan i s inclusive. I t targets equally-poor Indigenous and non-Indigenous peoples in regions, municipalities, and communities mostly inhabited by Indigenous peoples in need o f education. The components o f the Indigenous Plan are consistent with and included in the project components. T h e budget o f the IPP components i s part o f the overall project budget. The following activities cut across the whole Project: Monitoring and Evaluation (i)Inclusion o f the "ethnic", "language" and "gender" variables in all the information systems, at the local, district, department and central levels to ensure data dis-aggregation, to account for differences in needed approaches for different population groups. (ii)Identification and classification o f all the bilingual schools, b y code, so that data can be dis- aggregated by pueblo, and programs can be tailored to their particular needs. Also, the V-M o f IBEDIGEBI in coordination with Statistics (UDI) should classify schools according to level o f bilingualism (total or partial). Training (iii)Promotion for all project components and subcomponents should be done in the language o f the beneficiaries: either Spanish or bilingual (Spanish-Indigenous Languages). (iv) In-situ training o f traditional authorities (inc. Community Development Committees, and Auxiliary Mayors) to gain their support and commitment in the promotion and Participatory Planning, as well as training o f the school community (Director, teachers, parents, students) to support the programs under the project; and strengthening o f "community organizations" (inc. School Boards) to follow up on the programs. 147 COMPONENT 1: PRIMARY EDUCATION QUALITY AND COMPLETION 1A. Integrated Primary and Lower Secondary Education Centers. Accelerated programs (i) Strengthening o f the Intercultural Curriculum, particularly in Mathematics, Communication and Mayan Language (as L 1 and L2) in indigenous communities. (ii) Coverage o f 16,200 indigenous students in Accelerated Primary Education Programs in schools offering Basic Education. (iii)Teacher training for Accelerated Education. Criteria for the selection o f bilingual teachers in accelerated programs. Intercultural and Bilingual modules for accelerated programs. 1B. Initial Teacher Training and Development Reform (ENM) (i) Definition o f guidelines for bilingual teacher training programs, bilingual curriculum, the eligibility criteria for training candidates, admission and graduation exams for candidates. (ii) Development o f curricula, study programs, pedagogical materials (modules) for initial training o f teachers for pre-school and Primary school. (iii) Strengthening o f regional pre-service teacher training centers to train bilingual teachers. The V-M o f IBEDIGEBI w i l l establish selection criteria o f candidates to scholarships for Teacher Training in Bilingual Schools. (iv) 230 Conditional scholarships for initial training o f pre-school and primary school teachers. Equitable distribution to respond to demand from 16 Indigenous Languages. Eligibility criteria of candidates based on merit, need and ethnicity. COMPONENT 2: ACCESS AND QUALITY OF LOWER SECONDARY EDUCATION 2A. Feasibility studies and strategies for upper Secondary education curricula and evaluation systems. (i) Application o f Intercultural, Multicultural and Bilingual criteria to the national curriculum, and development o f regional curriculum for Lower Secondary Schools. 2B: Strengthening and expansion of pertinent and flexible modalities for lower Secondary education. (i) Creation and production and o f Materials for teaching and learning o f Intercultural Bilingual and Multicultural education in Telesecunduriu and Alternuncia. I t includes research, systematization o f experiences and creation o f materials for cultural pertinence. (ii) Subsidies for 48,600 Indigenous students o f Lower Secondary School. 2C. Education demand. Scholarships and subsidies for lower income students 3,000 scholarships (out o f 5,500) conditioned on promotion, performance and graduation. Equitable distribution per ethnic group based on demand. 148 COMPONENT 3: SCHOOL MANAGEMENT CONSOLIDATION IN SUPPORT OF EDUCATION QUALITY 3A. Consolidation and Strengthening of School-basedManagement for Education Quality (i)Strengthening o f community-based organizations (school boards, parents councils) (ii) Training in schools in Indigenous communities, for preparation o f Education Projects. (iii)Training o f Schools in Indigenous areas, in management/organization o f report cards. (iv) Financial support o f Education Projects in Indigenous communities. 3B. Consolidation and Strengthening of Departmental and District Supervision and Technical Assistance to Schools (i) Strengthening o f JEDEBIs in 16 departments with Indigenous population and Training o f Supervisors (CTAs and CTPs) on Education Models and technical assistance to schools. Table 10.7 below summarizes the Indigenous Peoples Plan for the Education Quality and Secondary Education Project 149 I 0 2 I 0 \o 9 3 - 9 Y 3 ru 0 .9 0 13 # < s 0 3 0 0 ' 0 I z 0 0 I o 8 0 3 ' 3 vl \o m cu 3 - ? 7 3 3 4 3 -2 Fl c1 0 2 8 0 0 8 8 - $ e 4 0 2 0 d c 3 - P P - + - P. " e m 11 % & 3 3 H 4 m GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 11: Project Preparation and Supervision Planned Actual ~ PCN review 07/14/2005 0711412005 Initial P I D to PIC 07/14/2005 0711412005 Initial I S D S to PIC 20/03/2006 20/03/2006 Appraisal 07/24/2006 07/24/2006 Negotiations 0911312006 01111/07 BoardiRVP approval 11/30/2006 03/01/07 Planned date o f effectiveness 03101I2007 07/02/07 Planned date o f mid-tern review 11/15/2010 Planned closing date 1213112013 K e y institutions responsible for preparation o f the project: Ministry o f Education (Ministerio de Educacidn), Ministry o f Public Finance (Ministerio de Finanzas Pziblicas), and Ministry o f Planning and Programming (Ministerio de Planijkacidn y Programacidn de la Presidencia - SEGEPLAN) Bank staff and consultants who worked on the project included: Name Title Unit Joel E. Reyes Senior Institutional Development Specialist, LCSHE TTL Martha Laverde Sr. Education Specialist LCSHE Ramiro Nufiez Information Officer LCSHD Henry Forero Senior Information Officer ISGEG Emanuela di Gropello Sr. Education Economist EASHD Ximena Traa Social Assessment LCSFU Christel Vermeersch Economist LCSHE Manuel Vargas Senior Financial Management Specialist LCSFM Luis Prada Procurement Specialist LCSPT Monica Lehnhoff Procurement Analyst Irma Yolanda Avila Gender and Indigenous Population LCSEO Aracelly Woodall Senior Program Assistant LCSHD Julie B. Nannucci Language Program Assistant LCSHE Juan Luis Cordova Research and Operations Analyst LCSHE Albert0 Pimentel Mata Research and Operations Analyst LCCGT Solange A. Alliali Senior Counsel LEGLA Xiomara A. Morel Senior Finance Officer LOAGl Maria Colchao Sr. Program Assistant LCSHE Viviana Gonzalez Team Assistant LCSHD Juan Manuel Moreno Senior Education Specialist ECSHD Kin Bing Wu Lead Education Specialist SASHD Francisco Esquivel Education Economist Consultant Arnulfo Simon Indigenous population Consultant Maria Lucrecia Tulic Monitoring and Evaluation Consultant Zulema de Fuentes Education Management Consultant Martin Miranda Technical Education Consultant Denisse Vaillant Teacher Training Consultant Ester Mancebo Curricular Reform Consultant 153 Bank finds expended to date on project preparation: 1. Bank resources: PE-P089898-LEN-BB: 62,666.00 2. Trust funds: TF 055125: U S $465,000.00 3. Total: U S $527,666.00 Estimated Approval and Supervision costs: 1. Remaining costs to approval: U S $241,320.00 (Institutional Capacity Assessment, Impact Evaluation Inputs and Monitoring and Evaluation System) - to be financed out o f TF 055 125. 2. Estimated annual supervision cost: U S $100,000.00 (fixed and variable costs) 154 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 12: Documents in the Project File Amartya Sen. 2000. Desarrollo y Libertad. Argueta, Bienvenido, 2004. Censo de Escuelas Normales en Guatemala. Guatemala: Universidad Rafael Landivar . Balatti, J. y IFalk. 2002."Socioeconomic Contributions o f Adult Learning to Community: A Social Capital Perspective." Adult Education Quarterly 52(4): 281-298. Banco Interamericano de Desarrollo. 1996. ,jCbmo organizar con h i t o 10s sewicios sociales? Banco Interamericano de Desarrollo. 2000. Desarrollo mds alld de la economia. Boyle, S, A Crock, J Mace y M Sibbons. 2002. Reaching the poor. The costs o sending children f to school. A six country comparative study. Department for International Development: Educational Papers. Seven Oaks, United Kingdom. Castillo, Delia. 2006. Consultoria para la elaboraci6n de un diagncistico participativo de institutos de ciclo bdsico por cooperativa y una estrategia para mejorar la calidad de sus servicios. Informe final preparado para e l Ministerio de Educacicin. Castillo, Gilberto. 2005. Estudio de demanda laboral de recursos humanos con educaci6n media. Informe de consultoria. Guatemala: UNESCO. Centro de Investigaciones Econ6micas Nacionales (CIEN). 2002. Informe de progreso educativo Guatemala. Guatemala: CIEN. Comisi6n Consultiva para la Reforma Educativa. 2004. Plan nacional de education a largo Plazo 2004- 2023. Guatemala: Ministerio de Educacibn, Agencia Espaiiola de Cooperaci6n Internacional. Comisi6n Econcimica para America Latina -CEPAL-. 1970 -1995. Anuarios estadisticos. Comisi6n Paritaria de Reforma Educativa. 1998. Diseiio de la Reforma Educativa. Guatemala: Cholsamaj - Nawal Wuj . Consejo Nacional de Juventud. 2005. Politica nacional dejuventud. Guatemala: Conjuve. Cuadra, Ernersto y Juan Manuel Moreno. 2005. Expanding Opportunities and Building Competencies for Young People: A New Agenda for Secondary Education. Washington, DC: The World Bank de Fuentes, Zulema. 2005. Educacicin acelerada: Informe de Preparaci6n del Proyecto de Mejoramiento de la Calidad Educativa y Ampliacicin de la Secundaria. Banco Mundial- Ministerio de Educacicin de Guatemala. Definition and Selection o f Competencies (DeSeCo) Project. 2005. The Definition and Selection o Keyf Competencies: Executive Summary. OECD. www .oecd,ordeduJstatistics/deseco Edwards John y D. Winkler. 2004. Capital humano, globalizacibn y asimilacibn cultural: Un estudio aplicado a 10s Mayas de Guatemala. En Etnicidad, Raza, GCnero y Educacion en AmCrica Latina, Winkler y Cueto, editores. PREAL. Fadul S. 1996. L a formaci6n de docentes en Guatemala. Francisco Esquivel. 2006. Situacidn del sistema educativo guatemalteco. GET-German Education and Training - KfW. 2004. Expansi6n del ciclo bdsico en las zonas rurales de Guatemala: Estudio de factibilidad. Jean Claude Buchet, et al. AlemaniaGermany: GET German Education and Training GSD Consultores Asociados. 2000 -2001. Inventario de recursos financieros destinados a la educacibn. Hall, G y HA Patrinos. 2005. Executive Summary. Indigenous peoples, poverty and human development in Latin America: 1994-2004. World Bank: Washington. MEIDWSAID, datos de INE. 2000. ENCOVI. Mendia, Rafael. 2004. Sistema de educaci6n vocacional tecnol6gica. Presentacicin expuesta ante el Gabinete Social por CONCYT. Guatemala: CONCYT 155 MCrida, Ver6nica. 2006. Consultoria para la coordinacih de la elaboracih de una propuesta curricular para e l ciclo basico. Informe de consultoria. Ministerio de Educaci6n - UNESCO. MINEDUC y Comisi6n Consultiva de Reforma Educativa. 2001. Dialog0 y consenso nacional sobre la Reforma Educativa: Conclusiones. Guatemala: Ministerio de Educaci6n y Comisi6n Consultiva de Reforma Educativa. MINEDUC, Asdi, GTZ, PNUD, UNESCO, instituciones colaboradoras. 2004. Visidn Educacidn: Muchas miradas, una visidn; un compromiso: nuestro futuro. Elaborado por e l Grupo Constructor integrado por 41 personas (J Acevedo, V Alvarez, S Biguria et al). Guatemala. MINEDUC. 2004. Anuario estadistico 2004. Guatemala: Ministerio de Educacih. CD. MINEDUC. 2004Plan nacional de educacidn 2004-2007. Guatemala: Ministerio de Educacih. MINEDUC. 2005. Lineamientos de politicas educativas 2005-2008: Calidad educativa, Politica docente. Dos de cuatro documentos tCcnicos publicados en www.mineduc.gobxt bajo e l tema de Contribucih p6blica. MINEDUC. 2005. Educaci6n en Guatemala: Situacih y desafios. Presentacih en MicrosoftPowerpoint presentada por e l Vice despacho TCcnico de Educaci6n en varios foros. Guatemala: Ministerio de Educacih. MINEDUC. 2005. L a politica educativa 2005 - 2008. MINEDUC. 2006. Estrategia de transformacih del ciclo basico del nivel medio: Documento para discusi6n. Guatemala: Ministerio de Educaci6n. MINEDUC. 2004. Evaluaci6n diagn6stica de graduandos 2004. Presentacih en diapositivas elaborada para conferencia de prensa. MINEDUC. Anuarios Estadisticos. www.mineduc.gob.gt Ministerio de Finanzas P ~ b l i c a s Guatemala -MINFIN-. 1996 - 2004. Ejecuci6n presupuestaria. de Opertti, Renato. 2005. Informe de consultoria para asesorar a1 Ministerio de E d u c a c i h en la transformacih curricular del nivel medio. Misi6n realizada en Guatemala del 10 a1 14 de octubre. Guatemala: UNESCO. PNUD 200 1. Guatemala, Informe de Desarrollo Humano, E l Financiamiento del Desarrollo Humano. PNUD. 2004. Desarrollo humano y ruralidad, compendio estadistico. Ciudad de Guatemala: Programa de Naciones Unidas para e l Desarrollo. Porta, Eduardo. 2005. Datos preliminares de un estudio sobre educaci6n y economia en Guatemala dados a conocer durante el Seminario "Del elitism0 a la inclusibn: Expandiendo las oportunidades a travCs de la educaci6n secundaria". Centro de Formacibn de la Cooperacih Espaiiola. L a Antigua Guatemala, 2 a1 4 de noviembre. PREAL. 2002. Informe de progreso educativo. PREAL. 2002. Experiencias en paises con poblacion indigena: l a introduccidn de la educaci6n intercultural bilingiie. Formas & reformas de la educacidn. Serie Mejores Practicas. Santiago, Chile: PREAL PREAL. 2005. &Que la calidad de la educacih? Extracto de Educaci6n para Todos: El imperativo de es la calidad. Informe de seguimiento de l a EPT en el Mundo 2005, ediciones UNESCO. Formas y reformas de la educacion. Serie Politicas. Publicacih peri6dica (7)22. Santiago, Chile. Price Waterhouse Coopers -PWC-. 2005. Diagn6stico institucional del MINEDUC. Programa Nacional de Competitividad (PRONACOM). 2005, Agenda nacional de competitividad. Guatemala: PRONACOM. En www.pronacom,gob,gt Rodriguez, M. 2001. Percepciones de la educacih: estudio cualitativo y multi.Ctnico. Guatemala Poverty Assessment Programa (GUAPA) Technical Paper No. 4. Washington DC: Banco Mundial. Roegiers, Xavier. 2004. Basic competencies approach. Extracto traducido a1 inglCs de L'ecole et 1'Cvaluation. Bruselas: Universidad de Boeck. En www.bief.be Rubio, Fernando. 2005. E d u c a c i h en Guatemala - Situaci6n y desafios. Documento preparado para e l 156 Seminario-taller "Balance y Perspectivas de la Educaci6n Intercultural Bilingiie" (Banco Mundial-PROEIB Andes, 14-15 junio, 2004). Shapiro, J. 2005. Chapter 5. Guatemala. En Hall, G y HA Patrinos, editores. Indigenouspeoples, poverty and human development in Latin America: 1994-2004. World Bank: Washington. Manuscrito no publicado. The World Bank. 2005. Lapobreza en Guatemala. Washington, DC: Banco Mundial. The World Bank. 2005a. Central America Education Strategy Paper: An agendafor action. The World Bank. 2005b. Central America Education Strategy Paper: Volume II. The World Bank. 200%. Expanding Opportunities and Building Competenciesfor Young People: A New Agenda for Secondary Education. The World Bank. 2005d. Guatemala: Country Assistance Strategy. UNESCO. 2004. E l Desarrollo de la Educacibn en el siglo A X : Informe Nacional. Reptiblica de Guatemala, Ministerio de Educacidn . En L a Educaci6n en Guatemala 2004. UNESCO. UNESCO. 2004. Fortalecimiento de la educaci6n secundaria en Guatemala: Analisis situacional y propuestas de opciones/estrategiaspara el futuro. Elaborado por Luis Benitez y Oscar Amargos. Guatemala. Universidad Rafael Landivar. 1998. Acuerdos de Paz. Guatemala: Universidad Rafael Landivar, Ministerio de Educcibn, Secretaria de la Paz, Asdi. Ward, Victoria, Jane Bertrand and Francisco Puac. 1992. Exploring socio-cultural barriers to family planning among Mayans in Guatemala. International Family Planning Perspectives 18 (2): 59- 65, June. 157 GUATEMALA EDUCATION QUALITY AND SECONDARY EDUCATION Annex 13: Statement of Loans and Credits Operations Portfolio (IBRDJDA and Grants) Of Date OlR3R Closed Projects 32 7 IBRDlDA Total Disbursed (Active) 202.32 of which has been repaid 26.20 Total Disbursed (Closed) 930.37 of which has been repaid 625.54 Total Disbursed (Active + Closed) I 1,32.69 of which has been repaid 651.74 Total Undisbursed (Active) 348.08 Total Undisbursed (Closed) 0.00 Total Undisbursed (Active t Closed) 348.08 Active Proiects Difference Between Last PSR Expected and Actual superv~sio~i Mino Irininal Amount in US%Millions Disbursements ' Project ID Project tlnnie lp PI IBRD IDA GRAWT Cancel. Undisb. Orig. Frm Rev'd PO87106 GT (APL2)LAND ADMlNlSTRATlC s s 2007 82.3 62.3 P055084 GT COMPETlTiVENESS PROJECT s s 2001 20.3 12.26 12.2600044 PO76853 GT FinancialSector TA Loan s s 2002 5 2 1.3973 I I 3.13972942 1 .397294 PO66175 GT INTEGRATED FiNANClAL MNC s s 2002 29.75 10,3661 10.3660736 PO47039 GT JUDICIAL REFORM s s 1999 33 0.65524 0.65524462 -4.31146 PO49616 GT LAND ADMINISTRATION (APL s s 1999 31 I 1.202 I I 1 .2019672 1 .201967 PO35737 GT RURAL 8 MAIN ROADS s s 1998 66.7 11.7729 11.7729164 P055085 GT SECOND RURAL AND MAIN Fl MS MS 2003 46.7 42.6091 37.242431 PO94697 GT Second Broad-Based Growtk # # 2007 100 100 P048654 GT TAX ADMIN. TAL s s 1998 28.2 12.6836 12.6836397 11.546619 PO48652 GT UNIVERSALIZATIONOF BAS1 s s 2001 62.16 13.9742 13.9741816 0.4206563 PO77756 GT-Maternal8 Infant Health S Nu S MS 2006 49 49 24.1875 PO94321 GT-Support Rural Econ.Dev. Pro$ S MU 2006 30 30 0.83333333 Overall Result 564.11 2 348.081 128.235251 9.9159423 158 Guatemala Statement o f IFC's Held and Disbursed Portfolio As o f 07/3 1/2006 Held Disbursed FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 2006 Banco Industrial 0 0 30 0 0 0 15 0 2003 Cuscatlan Guatem 0 0 10 0 0 0 10 0 2000 Frutera 1.4 0 0 0 1.4 0 0 0 2002 GDO 12.29 0 0 9.67 12.29 0 0 9.67 1998 L a Fragua 9.47 0 0 0 9.47 0 0 0 2004 Montana 45 0 0 0 45 0 0 0 2006 Muni Guatemala 6.65 0 0 0 6.65 0 0 0 1997 Orzunil 7.48 0 0 5.04 7.48 0 0 5.04 2000 Orzunil 1.14 0 0 0 0.88 0 0 0 Total Portfolio: 83.43 0 40 14.71 83.17 0 25 14.71 159 Annex 14: Country at a Glance GUATEMALA: EDUCATION QUALITY AND SECONDARY EDUCATION Guatemala at a glance 6113106 Latin Lower- POVERTY and SOCIAL America middle- Guatemala 8 Carlb. income 2005 Population, mid-year (millions) 12.6 551 2,475 Life expectancy GNI per capita (AUas method, US$) 2,400 4,006 1,916 GNI (Atlas method, US$ biilions) 30.2 2,210 4,747 Average annual growth, 199945 Population (%) 2.4 1.4 1.o Labor fwce (%J 2.6 2.2 1.4 Most recent estimate (latest year available, 199945) Poverty (% of pwulalion below national poverty line) 56 Urban population (% of total population) 47 77 50 Life expectancy at birth (years) 68 72 70 Infant mortality (per 1,000 live births) 33 27 33 Child malnutritionI%of children under 5) 23 7 12 Access to an improved water source (% ofpopulation) 95 91 62 - I Literacy (% ofpopulation age 15+) 69 90 69 Gross primary enrollment (% of schodage population) 113 119 114 Guatemala Male 116 121 115 Lower-middiemcomewoun Female 106 117 113 KEY ECONOMiC RATIOS and LONG-TERM TRENDS 1985 1995 2004 2005 Economic ratios' GDP (US$ billions) 11.2 14.7 27.4 31.7 Gross capital formatiodGOP 11.5 15.1 19.6 16.0 Trade Exports of goods and servIceslGDP 11.9 19.3 17.0 16.3 Gross domestic savingdGDP 10.5 6.9 5.6 4.9 Gross national savingdGDP 8.9 11.1 15.4 14.7 Current account balancdGDP -2.2 -4.1 -4.3 -4.1 Domestic Capital interest paymentdGDP 1.o 0.6 0.8 savings formation Total debtlGDP 23.9 22.4 20.2 Total debt service/exports 27.9 10.9 7.4 Present value of debtlGDP 20.9 Present value of debvexports 78.0 Indebtedness 1985-95 1995-05 2004 2005 2005-09 (average annual growth) GDP 3.7 3.2 2.7 3.2 3.9 I__ Guatemala GDP per capita 1.4 0.6 0.2 0.6 1.3 - - Lower-middlehcome orow Exports of goods and services 5.2 1.6 6.6 2.7 5.3 STRUCTURE of the ECONOMY 1985 1995 2004 2005 Growth of capital and GDP (%) (% of GDP) 20 Agriculture 25.9 24.2 22.9 22.9 Industry 19.7 19.7 16.9 18.6 10 Manufacturing 15.6 14.1 12.7 12.6 Services 54.5 56.2 58.2 56.2 0 Household final consumption expenditure 62.6 65.6 67.9 88.7 40 General gov't final consumption expenditure 7.0 5.5 6.4 6.4 -GCF e G D P imports of goods and services 13.0 25.4 31.1 29.4 I 1985-95 199545 2004 2005 Growth of exports and imports (%) (average annual growih) Agriculture 3.1 2.6 3.7 3.3 "T Industry 3.6 2.7 0.9 2.9 10 Manufacturing 2.5 2.0 2.3 2.9 5 Services 4.1 3.7 2.9 3.3 0 5 Household final consumption expenditure 3.6 3.7 3.7 4.1 General gov't final consumption expenditure 4.3 3.2 -10.1 4.6 .lo Gross capital formation 7.8 6.1 7.0 -4.3 imports of goods and services 10.1 7.7 7.2 1.o Note: 2005 data are preliminary estimates. This table was produced from the Development Economics LDB database. 'The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. 160 Guatemala PRICES and GOVERNMENT FINANCE 1985 1995 2004 2005 Domestic prices (% change) Consumer prices 18.7 8.4 7.4 8.4 Implicit GDP deflator 18.8 8.7 7.0 7.7 Government finance (% of GDP, includes current grants) Current revenue 8.8 10.8 10.3 O' 00 01 02 03 04 i1 6 Current budget balance 2.2 2.8 2.5 -GDP deRator -0-CPI Overall surplusldeficit -0.5 -1.0 -1.5 I TRADE 1985 1995 2004 2005 Export and import levels (US$ mill.) (US$ millions) Total exports (fob) 1,060 2,158 3,430 3,856 OOWT Coffee 452 539 326 467 Sugar 44 246 191 206 Manufactures 1,114 2,426 2,649 Total imports (ci9 1,175 3,293 7,811 8,831 Food 85 607 1,035 1,985 Fuel and energy 262 287 1,089 1,566 Capital goods 197 835 1,714 1,901 M W 01 02 03 04 Export pnce index (2000=100) 9 71 128 133 Import price index (2000=100) 12 74 121 126 MExportr MIrnporb Terms of trade (2000=100) 75 96 106 106 BALANCE of PAYMENTS (US$ mlions) Exports of goods and services 1985 1,161 1995 2,802 2004 4,648 2005 5,168 Current account balance to GDP (Oh) 1 Imports of goads and services 1,257 3,721 8,486 9,418 Resource balance -96 -919 -3,838 -4,249 Net income -170 -173 -357 -548 Net current transfers 19 491 3,W6 3,492 Current account balance -247 -600 -1,188 -1,303 Financingitems (net) 354 443 1,797 1,553 Changes in net reserves -107 157 -609 -250 Memo: Reserves including gold (US$ millions) 323 502 3,538 3,788 Conversionrate (DEC, local/US$) 1.o 5.8 7.9 7.6 EXTERNAL DEBT and RESOURCE FLOWS 1985 1995 2004 2005 Cornporltlon of 2004 debt (US$ mill.) (US$ millions) Total debt outstandingand disbursed 2,677 3,282 5,532 IBRD IDA 225 0 158 0 478 0 479 0 I A 478 Total debt service 335 357 546 IBRD 24 53 46 52 IDA 0 0 0 0 Compositionof net resource flows Official grants 27 106 132 Gfficial creditors 132 -23 22 Private creditors 9 12 364 Foreign direct investment (net inflows) 62 75 155 Portfolioequity (net inflows) 0 0 0 World Bank program Commitments 45 0 47 A . IBRD E . Bilateral Disbursements 49 13 79 34 6 . IDA . D Omer mulUlateral F . Private Pnncipai repayments 13 40 29 33 C . IMF G -Short-term Net flows 36 -28 50 1 Interest payments 11 14 17 19 Net transfers 24 -40 33 -18 Note: This table was produced from the Development Economics LDB database. 6/13/06 161 IBRD 33413R1 91°W 90°W 89°W 88°W G UATEMA LA SELECTED CITIES AND TOWNS DEPARTMENT CAPITALS NATIONAL CAPITAL M E X I CO RIVERS GUATEMALA PAN AMERICAN HIGHWAY MAIN ROADS 18°N 18°N RAILROADS DEPARTMENT BOUNDARIES Paxbán INTERNATIONAL BOUNDARIES 92°W Carmelita n Pedro P E T É N Sa Tikal El Naranjo Melchor L. Petén Itzá de Mencos BELIZE 17°N 17°N Flores Mopán Usum ac La Libertad i nt M EXI C O a To Tuxtla Gutiérrez n sió Pa Sayaxché lá q ui ha ac M Gulf Salinas San Luis of n Honduras cué 16°N Can 16°N n Sarstún Ixcá Barillas iyú Modesto Lívingston Ch Méndez uz Puerto HUEHUETENANGO A L TA V E R A PA Z ta Cr San Barrios . Cahabón Sierra de I Z A B A L QUICHÉ á Mts ele Chajul Cham Ca habón El Estor L. de S gu Izabal Morales a Cobán Cob Huehuetenango Polochic Sier egro N Los Amates SAN ra d e lo Mot agu a MARCOS s Ch u BAJA VERAPAZ Tajumulco TOTONICAPAN Santa Cruz a c ú s Z A C A PA Salam Salamá 15°N (4220 m) Quich Del Quiché EL 15°N San Marcos Totonicap Totonicapán Motagua PROGRESO Zacapa To To S El Progresso O Tonalá O i e G El Progreso AN NG Suchia N Quetzaltenango Sololá Solol GUATEMALA Chiquimula LLr r TE NA ZAT SOLOL SOLOLÁ Chimaltenango CHIQUIMULA a TE ET te Jalapa HO NDUR AS AL QU Mazatenango L.Atitlan GUATEMALA JALAPA SACATE- Antigua Esquipulas IM Retalhuleu M CH Ocós a d PEQUEZ Guatemala Z UE RETALHULEU r e Q PE Cuilapa Jutiapa TE Escuintla Champerico I CH JUTIAPA SU SANTA ESCUINTLA ROSA 14°N 14°N Sipacate San José Las Lisas SALVADO EL SA LVA DO R 0 20 40 60 Kilometers To La Unión 0 10 20 30 40 50 Miles To La Unión This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information PA CIFIC O CEA N shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 13°N 13°N 92°W 91°W 90°W 89°W 88°W NOVEMBER 2006