Document of The World Bank Report No: 25309-JO PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN IN THE AMOUNT OF US$120 MILLION TO THE HASHEMITE KINGDOM OF JORDAN FOR AN EDUCATION REFORM FOR KNOWLEDGE ECONOMY I PROGRAM April 10, 2003 Human Development Sector Middle East and North Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective March 4, 2003) Currency Unit = Jordanian dinar (JD) JD 1 = US$1.39 US$1 = JD 0.071 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AGFUND Arab Gulf Program for UN Development Organizations ICT Information and Communication Technology AWP Annual Work Plan JD Jordanian dinar CAS Country Assistance Strategy KFW Kreditanstalt fUir Wiederaufbau CIDA Canadian Intemational Development Agency KG Kindergarten CTC Central Tenders Comnuttee MDG Millenium Development Goal DCT Department of Curriculum and Textbooks MISA Ministry of Social Affairs DCU Development Coordination Unit MOE Ministry of Education DffD Department for Intemational Development (UK) MOHESR Ministry of Higher Education and Scientific Research DTQS Directorate of Training, Supervision and Qualifications MOP Ministry of Planning EC European Commission MOPWAH Ministry of Public Works and Housing ECE Early Childhood Education NCFA National Council for Family Affairs EDSS Education Decision Support System NCHRD National Center for Human Resources Development EIB European Investment Bank NER Net enrollment rate ELCU E-Leaming Coordination Unit OM Operational Manual EMP Environmental Management Plan PESW Programmatic Education Sector Work FMR Financial Monitoring Report PIP Project Implementation Plan ERfKE I Education Reform for Knowledge Economy I PPC Policy and Prionties Committee ETD Educational Technology Directorate PPP Project Procurement Plan GER Gross enrollment rate PSRL Public Sector Reform Loan GOJ Government of Jordan SA Special Account GSD General Supplies Department SOE Statement of Expenditures GTD Govenmment Tenders Directorate STC Special Tenders Committee HEDP Higher Education Development Project TIMSS Trends in International Mathematics and Science Study HRDIS Human Resources Development Infomation System TIMSS-R Third Intemational Mathematics and Science Study HRDSIL Human Resources Development Sector Investment Loan TVET Technical and Vocational Education and Training IBRD Intemational Bank for Reconstruction and Development UBE Universal Basic Education (World Bank) UNRWA United Nations Relief and Work Agency ICDL International Center for Distance Learning VTC Vocational Training Corporation Vice President: Jean-Louis Sarbib Country Manager/Director: Joseph Saba Sector Manager/Director: Jacques Baudouy Task Team Leader/Task Manager: Mae Chu Chang JORDAN EDUCATION REFORM FOR KNOWLEDGE ECONOMY I PROGRAM CONTENTS A. Project Development Objective Page 1. Project development objective 3 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Government strategy 4 3. Sector issues to be addressed by the project and strategic choices 7 C. Project Description Summary 1. Project components 8 2. Key policy and institutional reforms supported by the project 9 3. Benefits and target population 10 4. Institutional and implementation arrangements 11 D. Project Rationale 1. Project altematives considered and reasons for rejection 13 2. Major related projects financed by the Bank and/or other development agencies 14 3. Lessons learned and reflected in the project design 15 4. Indications of borrower commitment and ownership 16 5. Value added of Bank support in this project 16 E. Summary Project Analysis 1. Economic 17 2. Financial 18 3. Technical 18 4. Institutional 19 5. Environmental 20 6. Social 21 7. Safeguard Policies 24 F. Sustainability and Risks 1. Sustainability 24 2. Critical risks 24 3. Possible controversial aspects 26 G. Main Loan Conditions 1. Effectiveness Condition 26 2. Other 26 H. Readiness for Implementation 26 I. Compliance with Bank Policies 27 Annexes Annex 1: Project Design Summary 28 Annex 2: Detailed Project Description 33 Annex 3: Estimated Project Costs 43 Annex 4: Cost-Effectiveness Analysis Summary 44 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 54 Annex 6: (A) Procurement Arrangements 55 (B) Financial Management and Disbursement Arrangements 63 Annex 7: Project Processing Schedule 72 Annex 8: Documents in the Project File 73 Annex 9: Statement of Loans and Credits 76 Annex 10: Country at a Glance 77 Annex 11: DCU Organizational Chart 78 Annex 12: Letter of Sector Policy 79 Annex 13: Environmental Management Plan 85 MAP(S) Map IBRD 29234 JORDAN Education Refonn for Knowledge Economy I Program Project Appraisal Document Middle East and North Africa Region MNSHD Date: April 10, 2003 Team Leader: Mae Chu Chang Sector Director: Jacques F. Baudouy Sector(s): Secondary education (35%), Primary education Country Director: Joseph P. Saba (35%), Pre-primary education (30%) Project ID: P075829 Theme(s): Education for all (P), Education for the Lending Instrument: Sector Investment & Maintenance knowledge economy (P) Loan (SIM) 1; P-r'oj-ect, Fina^n,cing DataLi - , . _A, , > 2 3. -_ , ,,,, ia 6 w - --- [X] Loan [ Credit [ Grant [ ] Guarantee [ Other: For Loans/CreditslOthers: Loan Currency: United States Dollar Amount (US$m): US$120 million Borrower Rationale for Choice of Loan Terms Available on File: l Yes Proposed Terms (IBRD): Fixed-Spread Loan (FSL) Grace period (years): 5 Years to maturity: 17 Commitment fee: 0.85% on the undisbursed loan Front end fee (FEF) on Bank loan: 1.00% amount for the first 4 years beginning Payment for FEF: Capitalize from Loan Proceeds 60 days after the loan agreement is signed; then 0.75% thereafter. Initial choice of Interest-rate basis: LIBOR-based fixed spread Type of repayment schedule: (XI Fixed at Commitment, with the following repayment method (choose one): level [ ] Linked to Disbursement Conversion options: [X]Currency [X]Interest Rate [X]Caps/Collars: Financing PIan)(US$m) ' SoLWcel, ' Local - 'Foreign' Total. BORROWER 130.00 0.00 130.00 IBRD 55.00 65.00 120.00 US: AGENCY FOR INTERNATIONAL DEVELOPMENT 8.00 6.00 14.00 (USAID) ARAB FUND FOR ECONOMIC AND SOCIAL 21.00 7.00 28.00 DEVELOPMENT CANADA: CANADIAN INTERNATIONAL DEVELOPMENT 0.00 4.00 4.00 AGENCY (CIDA) UK: BRITISH DEPARTMENT FOR INTERNATIONAL 0.00 2.00 2.00 DEVELOPMENT (DFID) EC: EUROPEAN INVESTMENT BANK 33.00 10.00 43.00 ISLAMIC DEVELOPMENT BANK 14.00 4.00 18.00 JAPAN: JAPAN INTERNATIONAL COOPERATION AGENCY 0.00 1.00 1.00 (JICA) GERMANY: KREDITANSTALT FUR WIEDERAUFBAU 9.00 1.00 10.00 (KFW) Total: 270.00 100.00 370.00 Borrower: THE HASHEMITE KINGDOM OF JORDAN Responsible agency: THE MINISTRY OF EDUCATION Address: Amman, Hashemite Kingdom of Jordan Contact Person: H.E. Khaled Toukan Tel: 962-6-566-5461 Fax: 962-6-464-6654 Email: moffice@moe.govjo Estimated Disbursements ( Bank FY/US$m): FY 2004 2005 2006 2007 2008 2009 Annual 4.90 19.80 30.00 28.20 25.50 11.60 Cumulative 4.90 24.70 54.70 82.90 108.40 120.00 Project implementation period: 2003-2008 Expected effectiveness date: 07/01/2003 Expected closing date: 12/31/2008 -2 - A. Project Development Objective 1. Project development objective: (see Annex 1) The objective of the Education Reform for Knowledge Economy I (ERfKE I) project is to support the Government of Jordan (GOJ) to transform the education system at the early childhood, basic and secondary levels to produce graduates with the skills necessary for the knowledge economy. This objective will be achieved through the carrying out of an integrated program of education reform supported by the Government and participating partners, including the Bank. This integrated program of education reform is set out in the Government's Statement of Sectoral Policy (Annex 12) and operationalized in an ERfKE I Five-Year Implementation Plan. 2. Key performance indicators: (see Annex 1) * A redefined vision and integrated education strategy will be developed, and policies and regulations aligned with the new vision and strategy will be revised. * The average standardized score of Jordanian students in international assessments of mathematics and science will improve. * At least 80 percent of the primary and secondary students will have access to safe and adequate basic and secondary education school facilities. * At least 70 percent of basic and secondary students will be using on-line learning portals. * The gross enrollment rate in the second level of kindergarten will increase to 51 percent. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 25228-JO Date of latest CAS discussion: January 2003 The 2002 Jordan CAS identifies the following priorities: (i) human resources development, pursued strategically to support the key development goals of reducing poverty and enabling more Jordanians to participate in the knowledge economy; (ii) water resources management and protection of the environment; (iii) private sector development and infrastructure for sustainable growth and job creation; (iv) public sector reform and governance for more equitable, efficient and higher quality delivery of public services; and (v) gender inclusion in development planning and analysis. This program contributes to two CAS priorities. It supports public sector reform through the reform of the governance and administrative structure in the Ministry of Education (MOE), the largest ministry in Jordan. With respect to human development, the CAS recognizes the objectives of the Government to sustain the recent improvements achieved in the quality and efficiency of education and health services. Consequently, the goal of the proposed program to contribute to the development of human capital with the relevant skills and competencies for the knowledge economy is consistent with both the CAS and the Government's priorities. Millennium Development Goals (MDGs) Jordan has made remarkable progress in education coverage. The gross enrollment rate (GER) for grades I to 6 was 104 percent (2000), while the net enrollment rate (NER) was 96 percent (1999). The primary completion rate was 100 percent for both boys and girls (1999). Jordan is well advanced in the MDGs as regards elimination of gender disparity. Female enrollments accounted for 47 percent of all kindergarten (KG) enrollments, 49 percent of all basic education enrollments (grades 1-10), 50 percent of secondary enrollments (grades 11-12), 68 percent of community college enrollments, and 47 percent of public - 3 - university undergraduate enrollments (1999). 2. Main sector issues and Government strategy: Sector Overview The 1994 Education Law extended the Basic Education Cycle to cover KG and divided the education system into three stages: kindergarten (2 years), basic education (10 years), secondary education (2 years). While the basic and secondary stages are free of charge in public schools, only the basic stage is compulsory. Early Childhood Education (ECE) is available to children from ages four to six through mostly private providers with few formal curriculum requirements. A high percentage of KGs are coeducational and located in urban areas. Total enrollment in 2000 was 83,777. The combined GER for the two levels of KG was 35 percent: 21 percent for the first level and 47 percent for the second level (2000). In 2000, 1,173,314 students were enrolled in the 10-year basic education cycle, resulting in a GER of 102 percent. Most students (73 percent) are enrolled in schools run by the MOE, followed by the private sector (14 percent), UNRWA (12 percent), and other ministries (1 percent). Secondary education consists of two streams: comprehensive (academic and vocational) and applied. The applied stream leads to pre-employment or apprenticeship training. In 2000, 173,755 students were enrolled at the secondary level, of which 43,861 students were in the vocational stream. The secondary education GER was 82 percent. Post secondary education is available through both public and private community colleges and universities. Approximately 142,000 students (23 percent of the 20-24 age group) were enrolled in higher education in 1999. In addition to public sector and UNRWA institutions, there were 1,893 privately operated schools in 2000: 1,164 preschools, 592 basic and 137 secondary schools. All private basic and secondary schools must follow the nationally-prescribed curriculum in private schools as a minimum. Private for-profit institutions do not receive public funds. The MOE oversees ECE, basic and secondary education. The Ministry of Higher Education and Scientific Research (MOHESR) is responsible for community colleges and universities. Technical and Vocational Education and Training (TVET) at the post-basic level (excluding community colleges) as well as applied vocational education, administered by the Vocational Training Corporation (VTC), is under the authority of the Ministry of Labor. Education expenditure represents 5.3 percent of GDP and 17 percent of total government expenditure. The proportion allocated to basic and secondary education has increased from 8.8 percent of total government expenditures in 1990 to 13.5 percent in 2000. Non-salary recurrent expenditures for basic and secondary education as a percent of education recurrent expenditures decreased from 7.2 percent of the education expenditure in 1990 to 4.1 percent in 2000. - 4 - Sector Issues Jordan faces significant challenges as it continues its program of economic and social development in the evolving information age. As a resource-poor country, Jordan recognizes that the development of a high quality labor force is a priority for building a competitive advantage in the global knowledge economy. The GOJ also recognizes that there is a mismatch between the skills of the graduates and labor market needs. The new global economy requires that Jordan develop an education system that promotes higher-level thinking, problem-solving skills and team work while the current system relies on traditional, rote-learning pedagogy. Moreover, the MOE is cognizant of the importance of ECE in improving school achievement (especially of children from underprivileged backgrounds) and fostering lifelong learning. In light of these goals, the Government, with Bank assistance, has identified the following main issues for the education sector in Jordan: Gaps in government capacity to transform the education system: * There is limited capacity to analyze and make use of data for decision-making purposes, particularly in poverty targeting and cost-efficiency measures. * Current practice of providing a facility for a minimum of 10 students has resulted not only in inefficient and unaffordable school sizes throughout the country, but also in a mismatch between student population and school seats. For example, one school has only 3 students while many are overcrowded. * The current institutional arrangements in general, and in the MOE in particular, have accommodated and supported a traditional, hierarchical top-down model of management as opposed to a participatory, outcome-based and student-centered model. The gaps between the current capacity of the MOE and the capacity needed to make this transformation are wide. * The transformation from a traditional model to a more learner-centered model requires a systemic change in the education sector from the regulatory framework down to school level practices, all of which call for close coordination with a wide range of stakeholders inside and outside the MOE. * In addition, there is limited coordination at the system level between the various providers of educational opportunity. For instance, universities that are the main providers of teacher education are under the jurisdiction of the MOHESR, while basic and secondary education are under the MOE. While there is general agreement that the MOE and universities need to coordinate more closely to respond to the dynamic labor market demands, the mechanisms to permit this coordination do not yet exist. * Monitoring and evaluation of progress in education reform have been weakened in the recent past as the National Center for Human Resources Development (NCHRD) has shifted its focus from evaluation to implementation of projects. Thus, the present monitoring and evaluation capacity of the NCHRD may cause challenges in successful implementation of the program. Mismatch between the skills currently taught at schools and those needed in the knowledge economy: * A knowledge economy requires key basic skills and core competencies as well as essential content. OECD has identified the following essential skills: critical thinking, problem solving, decision making, using numbers, communication skills, managing information, being responsive, learning continuously (lifelong learning), entrepreneurship, adaptability, teamwork, innovation and creativity. At present, the Jordanian curriculum focuses primarily on subject matter content, not all of it relevant or essential for a knowledge economy. * The vocational secondary education track has narrow occupational specializations that do not adequately match current labor market demands. - 5 - o Teacher upgrading and preparation have not been effective. The minimum academic qualifications for basic education teachers were raised from the community college diploma to the university degree in 1998. Although the MOE, in conjunction with the Faculties of Educational Sciences in public Jordanian universities, is implementing a program to upgrade the skills of teachers with college diplomas, there is concern that teaching methodologies remain ineffective. o To realize the vision of making Jordan an information technology hub in the region, significant investments are being directed in Information and Communication Technology (ICT) within the education system. It is critical to recognize the lessons learned from other countries and incorporate them into sector policies. For example, in the absence of adequate human resource development, effective and relevant educational software, use of traditional teaching methods with ICT, and effective online content, some countries have failed to achieve higher quality education in spite of substantial investments in ICT. o Jordan needs sustained interventions to improve its performance on international assessments. For example, Jordan scored ahead of two countries out of twenty participating countries in the 1991 International Assessment of Educational Progress (IAEP); in 1999, Jordan scored ahead of six countries in mathematics and eight countries out of thirty-eight participating countries in science in the Third International Mathematics and Science Study (TIMSS), although TIMSS is not strictly comparable to the IAEP. Nevertheless, Jordan still lags behind its international peers (e.g., Tunisia and Turkey in math in the 1999 TIMSS), and the gap between Jordan's highest and lowest performing students is wider than in most other countries, implying the current education system is not delivering equal leaming opportunities to all students. o Four sub-groups of the population are potentially vulnerable to the negative impact of the transfer to a knowledge economy, unless particular efforts are made to incorporate them in its benefits and e-leaming initiatives: (i) young, unemployed (urban or rural) males; (ii) the "near poor;" (iii) rural inhabitants overall; and (iv) women. Jordan has noticeable rates of disability due to endogamy, which have major poverty implications. E-learning and e-technology can substantially increase the access of all these groups, as well as that of a further vulnerable group, the disabled, to services and jobs. Some children are studying in unsafe and overcrowded schools: o Some public schools are unsafe, overcrowded and lack appropriate and adequate leaming resources, which may be impacting the quality of learning. MOE schools in nine directorates are overcrowded. Overcrowding is a problem in 39 percent of MOE-owned schools, over 75 percent of rented schools, 52 percent of rented annexes of MOE-owned schools and close to 70 percent of double-shift schools. o A large proportion of the schools in Jordan are small in size (average 300-400 students), yet operating under capacity in rural areas and overcrowded in urban areas. o School building designs have not taken cost-efficiency measures into account. O Some school facilities, especially rented schools, are inappropriate for delivering the curricular requirement for knowledge economy. o Over 300 schools have been identified as requiring urgent rehabilitation. Unequal early childhood education opportunities: Lower income households have unequal opportunity to ECE, both due to limited supply in the areas where the poor live and due to the relatively high cost of ECE, which is currently provided mainly by the private sector. - 6- Government Strategy Education has long been a priority investment of Jordan. With the recent call by His Majesty King Abdullah II that the economic future of Jordan will be found through successful participation in the global knowledge economy, and more particularly in the value-added information technology industries, a new vision of the requirements of the educational system has begun to emerge. This emerging vision has been described most recently during the September 2002 "Vision Forum for the Future of Education": "The Hashemite Kingdom of Jordan has the quality competitive human resource development systems that provide all people with lifelong learning experiences relevant to their current and future needs in order to respond to and stimulate sustained economic development through an educated population and a skilled workforce. " From this new vision for human resource development in Jordan, four education sector policy vectors are being identified as: * Structuring the educational system to ensure lifelong learning; * Ensuring responsiveness of the educational system to the economy; * Accessing and utilizing information and communications technologies to support effective learning and system management; and * Ensuring quality learning experiences and environments. This policy framework is established in the Statement of Sectoral Policy of the Government of Jordan (see Annex 12). Within this policy framework, the Government of Jordan has prepared a comprehensive integrated proposal for the major reform of the education system. The proposal (Education Reform for Knowledge Economy) has identified the following components for investment: * Reorienting education policy objectives and strategies and reforming governance and administrative systems; * Transforming education programs and practices to achieve the learning outcomes relevant to the knowledge economy; * Supporting the provision of quality physical learning environments; and * Promoting learning readiness through expanded early childhood education. 3. Sector issues to be addressed by the project and strategic choices: The Government's vision is comprehensive and covers all levels of education and training across various ministries and linkages with the labor market. Through a new instrument, Programmnatic Education Sector Work, the Bank team will provide continuous technical assistance to the Government to translate this comprehensive vision into a coherent strategy and action plan. For this program, a decision meeting at the concept stage called for limiting the current program to basic education, kindergarten and secondary education which are under the jurisdiction of the MOE. This was necessary to ensure feasibility of implementation and to avoid duplicating on-going efforts. Issues excluded. Since higher education is already funded by another World Bank project, the Higher Education Development Project (HEDP), the proposed program does not include this sub-sector. However, an existing dialogue between the MOE and the Faculties of Educational Sciences will be encouraged further. The major purpose of the dialogue is to bridge the gaps between teacher preparation and training programs and the evolving needs of the educational system. Vocational training managed - 7 - outside of the MOE will be excluded as Canadian International Development Agency (CIDA) and the European Commission (EC), as well as a number of others donors, are already supporting this sub-sector. Early Childhood Education. A strategic choice was made to include early childhood education based on the Cost-Efficiency of Education Spending study, cost-benefit analyses for ECE, technical assistance provided by UNICEF in collaboration with the National Council for Family Affairs (NCFA), and a series of seminars organized by the World Bank through video-conferencing. The GOJ is convinced that early childhood education can support school achievement and is an effective lever to ensure equal opportunity to education. The GOJ also recognizes that the benefits of early childhood education accrue not just to the parent and the child, but to society overall. These benefits include lower costs for later schooling, as children enter school better prepared to achieve, future reduction in remedial services and in crime as juvenile delinquency diminishes, and productivity increases. While all children benefit from early childhood education programs, they are particularly effective in improving the life chances of children who are at risk due to poverty. Hence, through its phased expansion of early childhood education, the Government's priority is to provide access to kindergartens in disadvantaged areas. As this is the first time the MOE will provide public kindergartens, the program will support the first phase that targets children aged 5 and 6, or those admissible to KG II. This will be done in collaboration with the NCFA as well as with UNICEF and the involvement of non-governmental organizations (NGOs). Poverty alleviation and social inclusion. Poverty alleviation and social inclusion will be emphasized throughout the program, including capacity building for policy analyses, strategy formulation, better targeting of facilities and resources through school mapping, and e-learning to reach the disadvantaged. The improved quality of life avenues to productivity and economic opportunity offered through providing access to e-leaming for disabled children can have great positive impact on both the children and their families and can yield benefits to society as a whole. In addition, the "near-poor" represent an essential target group in the e-leaming effort in order to ensure sustainable development for society. They will need sustainable training and support to become leaders in individual and group enterprise development, as well as upward linkages to mainstream economic activity in order to rise and remain above the poverty line. The ERfKE I program provides the opportunity to link positive social development outcomes with educational reform, particularly in the poorest governorates. C. IProject Descript:ion Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): The ERfKE I program includes the following four components: (i) re-orient education policy objectives and strategies through governance and administrative reform; (ii) transform education programs and practices for the knowledge economy; (iii) support provision of quality physical learning environments; and (iv) promote readiness for learning through ECE. Component I. Re-orient Education Policy Objectives and Strategies through Governance and Administrative Reform Component 1 is designed to provide a redefinition of the vision and associated policy objectives of the educational system that will enable the required transformation to meet the emerging needs of the knowledge economy. This component has five sub-components: (i) a redefined vision and comprehensive integrated national education strategy; (ii) revised governance, management, and decision-making mechanisms to achieve and support an education system that delivers basic skills, core competencies and essential learning for the knowledge economy; (iii) an Education Decision Support - 8 - System (EDSS) to facilitate efficient policy analysis and effective system management as well as to promote transparency; (iv) comprehensive and coordinated educational research, policy analysis and monitoring and evaluation activities; and (v) effective management and efficient coordination of educational investments directed towards reform efforts. Additionally, support will be provided to school based innovations. Component 2. Transform Education Programs and Practices for the Knowledge Economy Component 2 is designed to transform teaching and learning processes in order to achieve learning outcomes that are consistent with the requirements of the knowledge economy. This component has three sub-components: (i) development of new curriculum and enhanced leaming assessment; (ii) professional development of MOE personnel; and (iii) provide required resources to support effective learning. Component 3: Support Provision of Quality Physical Learning Environments Component 3 is designed to ensure adequate provision of structurally safe school buildings and improved learning environment. This component has two sub-components: (i) replacement of structurally unsafe and overcrowded schools; and (ii) upgrading existing schools to support learning in the knowledge economy through the provision of computer and science labs. Component 4: Promote Readiness for Learning through ECE Component 4 is designed to enhance equity through public provision to KG II to low-income areas. MOE will initially develop a program to phase in KG II for children at age 5, to be followed by KG I at the end of ERfKE I. This component has four sub-components: (i) an enhanced institutional capacity for ECE; (ii) a cadre of early childhood educators; (iii) increased access to KGs for the poor, and (iv) parent and community participation and partnership (public awareness and understanding). The total ERfKE I program size is estimated to be about US$370 million and the World Bank project will provide partial financing towards the program. World Bank financing will support civil works, goods and equipment, training and technical assistance. Co~~~~~~~~~~~~~~~X' K> ~ ~ rn t" Component t 1. Re-orient education policy objectives and strategies 11.70 3.2 8.10 6.8 through governance and admninistrative reform 2. Transform education programs and practices for the 102.10 27.6 46.80 39.0 knowledge economy 3. Support provision of quality physical learning 236.50 63.9 57.70 48.1 environments 4. Promote Readiness for Learning through ECE 18.50 5.0 6.20 5.2 Total Project Costs 368.80 99.7 118.80 99.0 Front-end fee 1.20 0.3 1.20 1.0 Total Financing Required 370.00 100.0 120.00 100.0 2. Key policy and institutional reforms supported by the project: To achieve educational quality, social equity, efficiency and relevance to national social and economic development priorities, the following policy and institutional reforms will be introduced: * shift the focus of educational policy to outcomes rather than inputs (e.g., specific inputs to improve -9- teacher education versus interventions that are specifically designed to improve students' achievement of learning outcomes, etc.). This approach calls for systemic reform rather than piecemeal solutions. Institutional reforms such as changes in the regulatory and procedural frameworks, organizational structures and employment incentive systems (e.g., teacher classification, certification, supervision, upgrading, reward, recognition and promotion) as well as the realignment of vertical and horizontal governance and management structures and processes will be required. o change from highly centralized management processes to the gradual devolution of responsibility and accountability to the district and school level. This will require institutional reform to redistribute responsibility among the central, regional, local authorities and schools (e.g., redefining the roles and functions at each level as to who will be responsible for each level of decision-making and financial authority). A major attitudinal shift will be required to achieve the change envisioned and to do things differently. The use of participatory approaches in designing new governance and management structures and decision-making processes will be essential to engage, enable and empower stakeholders. o change policy from indirect to direct involvement in ECE. MOE will be directly involved in ECE by developing publicly-funded KGs and regulatory framework for ECE in general. o target provision of ECE to rural and disadvantaged populations based on school mapping. O support objective decision-making processes through the incorporation of information derived from an integrated Education Decision Support System (EDSS). o use school mapping in selection of school sites to improve efficiency and utilization of available facilities. o introduce building designs based on cost-efficiency criteria and suitable for e-learning. O introduce e-leaming to serve disadvantaged populations. 3. Benefits and target population: Benefits from the program investment are expected to occur at the national, institutional and individual levels. The target population is current and future students enrolled in pre-school, primary, and secondary education in Jordan, focusing particularly on disadvantaged groups. About 200,000 students studying in unsafe physical facilities will be the immediate beneficiaries of the improved learning environment. At the individual level, students will be provided with an educational experience designed to enhance individual learning while building analytical skills, team-work abilities, competence in working in an electronic environment, and readiness to engage in lifelong learning. The acquisition of these skills is expected to result in increased opportunity for employment and economic benefits. Graduates whose learning outcomes are more relevant to the knowledge economy are expected to be better prepared to make a more effective contribution to the growth and diversification of the national economy. At the institutional level, enhanced efficiency will be achieved in the MOE through a revision of governance, management, and decision making roles coupled with the introduction of improved informnation and decision support systems as well as the adoption of ICT throughout the administration. Other institutional benefits will accrue from decentralization and increased incentives associated with revisions to teacher ranking and promotion systems, including the use of ICT-based teaching, incorporation of cognitive learning and the facilitation of e-learning. Additional institutional benefits will accrue from the establishment of a mechanism for participatory decision-making; and monitoring the social inclusion and poverty outcomes of e-learning delivery, both of which will generate knowledge and learning for incorporation into an integrated Human Resource Development (HRD) approach to education. - 1 0 - 4. Institutional and implementation arrangements: The MOE will have overall responsibility of ERfKE I implementation over a period of five years (2003-2008). The MOE will continue to benefit from the project management experience and lessons learned through the implementation of HRDSIL I and II projects. The various MOE departments will be responsible for implementing their respective components. The MOE has established a Development Coordination Unit (DCU) to coordinate program implementation. The DCU will report directly to the Minister of Education. The DCU will be responsible for providing support to the MOE departments on procurement and financial aspects, and will compile progress, annual and completion reports on program implementation. The DCU will also coordinate the supervision work carried out by the World Bank and other donors and it will coordinate the program activities that will require support from other ministries and donors. Additionally, the DCU will manage the school-based innovations that will support innovative approaches to manageme'nt, curriculum and training. The process of staffing the DCU has already begun. The DCU has been staffed with an executive director, program officer, financial officer, procurement officer, IT coordinator, education advisor, communications/outreach officer and secretary. Additional staff will be employed as needed to coordinate specific sub-program activities. To complement the MOE staff, individual consultants and firms will be hired to provide support to the MOE departments and to the DCU on program implementation. These will include advisors on policy, e-leaming and IT management and early childhood education. A Special Tender Committee (STC) will be established within the MOE under Regulation 71/86 to expedite the procurement of goods and services. Procurement of works and related consultant services will be managed by the MOE with the support of the Government Tenders Directorate (GTD). The GTD will assume responsibility for the advertisement and evaluation of tenders and will recommend award of contracts to the MOE. The STC will be responsible for all procurement of goods and services required under the project. The STC will review and approve bid documents, review advertisements for tendering, evaluate bids and issue recommendations for contract award for approval by the Minister of Education. The STC will appoint ad hoc technical committees to review the technical aspects of bid documents and of bids for evaluation of offers. Contracts will be signed and managed by the DCU. Monitoring Arrangements. The NCHRD will be responsible for monitoring and evaluating program activities based on information provided by the DCU on agreed indicators. In the past, NCHRD played an important role in the implementation of HRDSEL I and II projects, particularly on procurement aspects. However, the shift of NCHRD's role away from implementation will strengthen its evaluation and education assessment role. Recognizing the transformational nature of ERfKE I, NCHRD's capacity will be expanded and strengthened in educational research, policy analysis, monitoring and evaluation and national learning assessments. Financial Managsement Arrangements. The responsibility for ERfKE I program implementation will be assigned to the MOE and will be coordinated by the newly established DCU. However, supported by the DCU, the International Projects Department within MOE will be responsible for the project funds and all related financial transactions. The Ministry of Planning (MOP), among other supervisory and monitoring functions, approves the yearly project budget and makes counterpart funds available for project implementation. MOP will grant the project funds to the MOE. All payments under the project will be subject to the applicable government laws, controls and procedures. The MOE, throughout the ERfKE I -1 1- program, will be responsible for managing the project funds and all related financial transactions. A risk assessment was performed during ERfKE I appraisal, based on the World Bank's Financial Management Guidelines, of the MOE's financial management system including: the accounting system, accounting policies and procedures, budgeting system, reporting, staffing, internal controls policies and procedures, internal auditing and external auditing arrangements. This assessment showed that the system in place at the MOE is based on principles and procedures defined by the legal framework and operational decrees applicable to the public sector, including ministries. The control environment was found to be adequate, however the MOE manual financial system lacks the support of a budgeting process for projects and requires enhancement to become capable of generating timely project reports. For this purpose, the MOE has recruited a full time financial officer to work within the DCU on a parallel accounting system capable of generating the project reports. The financial officer will also prepare and follow on the project budget and variances. These parallel arrangements will follow MOE's control policies and procedures but will image MOE's manual ledger for internationally financed projects, using a new chart of accounts and an accounting software that is capable of generating timely and reliable project reports. These reports are to include: cash flow statements, project expenditure statements comparing actual figures to the project budget, and a progress report linking key performance indicators to project expenditures. In order to institute this parallel system, MOE's administration will introduce the monthly reconciliation of data between the main MOE accounting records and the parallel system. In addition, the DCU financial officer will prepare an annex to the MOE manual of procedures detailing the tasks and procedures of this parallel system including the flow of information between the various MOE departments implementing the project. Based on the activities performed to date, this parallel accounting system is expected to be installed and operational by June 2003, thus MOE will be able to generate, quarterly, the required reports. The MOE will submit to the World Bank quarterly Financial Monitoring Reports (FMRs) within 45 days from the end of the calendar quarter and whose proposed form and content have been agreed upon during ERflE I negotiations. The Borrower opted to replenish the project's Special Account (SA) using traditional methods of disbursements by means of Statements of Expenditures (SOEs), using the Special Account (SA) for those expenditures below the threshold, and by direct payments accompanied by supporting documentation for the balance. The project's financial statements, including SOEs and the SA will be audited annually by an external independent auditor, acceptable to the World Bank, in accordance with internationally accepted auditing standards. MOE will submit the audit report to the World Bank no later than six months following the closing of the fiscal year subject to the audit. The audit's Terms of Reference (TOR) will be prepared and submitted for the World Bank's no objection no later than nine months prior to the end of each fiscal year. Audit costs will not be financed by the World Bank loan. To ensure that funds are readily available for project implementation, a SA in US dollars will be opened at the Central Bank of Jordan and will be operated by the MOE. MOE will use the SA to honor payments under the project to contractors, suppliers, and consultants. MOP will assign the management of the project SA and withdrawal applications to MOE. - 12 - D. Project Rationale 1. Project alternatives considered and reasons for rejection: Lending Instruments The Government of Jordan is fully committed at all governing levels to a long term education reform as articulated in the Government's letter of Sectoral Policy (see Annex 12). Furthermore, the MOE has prepared a detailed Five-Year Implementation Plan for the ERfKE I program. The World Bank project will provide partial financing for this program along with other donors. The World Bank's long-term commitment to financing through an Adaptable Program Loan (APL) is not seen as an advantage for Jordan since the government may or may not need to resort to external borrowing for such high priority programs in future phases. Therefore, the Government has made the well-informed decision to use a Sector Investment and Maintenance (SIM) loan instead of APL. The Government has ten years of experience implementing education reform using Sector Investment Loans for HRDSIL I and II projects, so the procedures and guidelines for such loan requirements are already in place. The Government is concerned that switching unnecessarily to a new instrument at this stage may have a negative impact on ERfKE I implementation. Furthermore, the need to have precise performance triggers under an APL may compromise the flexibility needed in a major reform program such as the ERfKE I program. Incremental Approach vs. Transformational Reform An incremental approach to reform would be to adopt a more cautious pace of development based on piloting various elements of a strategy, adapting e-learning curricula and learning resource materials from other jurisdictions, and progressively phasing in investments in infrastructure. This program opted for more systemic reform for the following reasons: * While recognizing the ambitious nature of the program and the limited extent of international best practice, the program is linked to the CIDA funded e-leaming initiative. The Canadian experience in educational reforn suggests that adopting a holistic, system-wide approach generates synergies amongst students, teachers, curriculum and learning resource developers that cannot be achieved through a more linear and incremental approach. * There are a number of technological developments and economic development imperatives that require systemic changes within the educational system. These changes include the introduction of a high-speed broadband learning network (starting in 2003) that will require fundamental changes in the educational system to fully utilize the network for learning, the rapid development of the ICT industry - predicting an increasing need for knowledge workers, and the economic imperative for the nation's human resources to be able to participate in and contribute to a global knowledge economy. * The GOJ has developed sufficient capacity from the continuous efforts in education reform in the past 15 years and appears ready to address the major challenges associated with a transformational reform. Integrated vs. Fragmented Approach Past donors' support to the education sector in Jordan consisted of a number of small, independent and uncoordinated projects. While each project achieved success in its limited area, the outcome was fragmented and did not result in the transformational reform mentioned above which is necessary to achieve Jordan's vision for the future. In designing the education reform program, the Government convened a donors' meeting in education requesting all interested donors to support an integrated program of reform led by the Ministry of Education instead of through a piecemeal approach. This - 13 - integrated approach received broad support from 10 donors, including those who did not previously support the education sector in Jordan. With technical assistance from donors including the World Bank, the MOE prepared a detailed ERfKE I Five-Year Implementation Plan (2003-2008) which operationalized the policy objectives in the Government's Statement of Sectoral Policy. The integrated approach will help the Government achieve the desired transformation in a holistic manner, streamline donors' processes and help the donors support broader development outcomes which could not be supported by individual projects in isolation. Alternatives to Promoting Readiness for Learning through ECE Public kindergartens vs. blended approach: An initial MOE proposal for building 25 public kindergartens was reconsidered in favor of alternative approaches to enhancing opportunities for ECE expansion and development. These approaches included: (i) public sector interventions; (ii) promoting private sector participation; or (iii) supporting community/NGO activities in the sector. The program design has recognized the benefits and risks associated with each of the respective models, and has opted for a blended approach involving both the public sector and NGOs that will build on lessons learned from a series of carefully monitored pilot activities. Use private sector for KG teacher training vs. developing MOE in-house capacity: The private sector (for-profit and not-for-profit) accounts for 99 percent of ECE provision in Jordan. The MOE will partner with and use the existing expertise in the private sector to assist in the in-service training of KG teachers while the MOE develops its own regulatory and quality assurance capability. Since the MOE currently has no expertise in ECE, it would not be cost effective to begin a teacher training program while the private sector already has experience in this area, including some high quality centers that meet international standards. 2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned).Table to be completed during preparation mission. Latest Supervision Sector Issue Project (PSR) Ratings (Bank-financed projects only) Implementation Development Bank-financed Progress (IP) Objective (DO) Education First Human Resources S S Development Sector Loan (HRDSIL I) Second S S Human Resources Development Sector Loan (HRDSIL II) Technical Education Support S S Project (TESP) Higher Education Development S S Project (HEDP) Other development agencies CIDA Economic Development through Technical Skills Project (EDTSP) CIDA Sustaining and Extending - 14 - TVET (SETVET) CIDA ICT in Education DflD Capacity Building Project JBIC First Human Resources Development Sector Loan (HRDSIL I) Second Human Resources Development Sector Loan (HRDSIL II) JICA Physics 11 Curriculum Development Project USA1D Achievement of Market-Friendly Initiatives and Results Program IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: The following issues have been addressed in the program design based on lessons learned from the implementation of previous human resources development projects in Jordan: * Participatory approaches to implementing change efforts have proven effective in other jurisdictions in Jordan, therefore, government ownership of the ERfKE I program design and implementation will be enhanced and deepened by involving employees at all levels within the MOE through activity-based, facilitated mainstreaming of behavioral change. This approach will address the frequent changes in the ranks of top administrators that cause gaps in the "corporate memory" that is essential to facilitating effective continuity of reform efforts. * The contributions of other financiers have been clarified in detail. As there are many contributors to the educational reform effort, close collaboration and coordination will be essential to ensure the effectiveness of all contributions. The DCU will play a critical coordination and monitoring role in this respect and if serious coordination issues arise, the MOP is prepared to assist the MOE in ,encouraging contributors to collaborate and coordinate their contributions for maximum benefit to Jordan and the educational reform process. Implementation of the HRDSIL II project was delayed more than a year until agreement was reached about the component(s) to be financed by the Japanese government. * Roles of the various MOE departments involved in the program are clarified in the program Operational Manual (OM) and include the procedures to be followed during implementation, including details of the processes required for internal clearances. * Actions that need approval and clearance from the World Bank before authorizing implementation will be documented. * Construction contracts will include additional detailed specifications to avoid a high percentage of changes/corrections that often require additional cost. Contracts will also include penalties for delays and for not fulfilling the details of the specifications. * Receipt of buildings will be synchronized with receipt of procured furniture and other operational requirements. In the case of schools, timing the completion of a school prior to the beginning of the school year is more efficient and cost-effective. * The process of training teachers and administrators, including ICT training, will be evaluated annually by external experts who are not presently involved in training, and the training process will be modified based on results. -15 - o Responsibility for housing and overseeing the integrated EDSS will be defined and documented as a responsibility of the MOE, but the overall policy will be transparency and accessibility for all stakeholders. 4. I[ndications of borrower commitment and ownership: The Government of Jordan has demonstrated a high level of commitment to the human resources development sector and to the ERfKE I program as evidenced by the following: o The Cabinet endorsed the Plan for Social and Economic Transformation, which earmarked 40 percent of its budget for education. Task Forces were established in 1999 to identify core strategic issues for the further development of basic and secondary education, technical and vocational education, and higher education. o Dialogue between the World Bank and Ministries of Planning, Finance and Education regarding strategic priorities for the sector, giving due consideration to the findings of the Cost Efficiency of Education Spending study. o Successful convening of the "Vision Forum for the Future of Education" (September 2002) endorsed by HM King Abdullah II with the active participation of four key Ministers (MOP, MOE, MOL and MOHESR). The results of the forum were presented and endorsed at the Economic Consultative Council in October 2002. o Formulation by the MOE of an e-learning Strategic Framework to guide program reform. O Establishment of the DCU using government funds to integrate all donor inputs under ERfKE I. O Establishment of a Program Preparation Team drawn from relevant Departments of MOE. O Conducting in-depth studies for program preparation and subsequent submission of four proposals - one for each program component, as well as an integrated proposal with a detailed Five-Year Implementation Plan. o Approval to proceed on the development of a national high-speed, fiber-based broadband network for learning, beginning activation in 2003, the "Connecting Jordanians" initiative. 5. Value added of Bank support in this project: World Bank support is expected to add value as follows: o Helping generate donors' support for the Government's reform program. o Supporting the development of a comprehensive framework for the sector. o Assisting in policy formulation and strategic planning for the sector. O Providing guidance to change management processes in the MOE. o Introducing best practices regarding ICT applications for learning. O Enhancing Education Management Information and Decision Support Systems. O Introducing increased rigor into program implementation and project financial management. O Optimizing new facility investments through school mapping, options analysis for utilization studies, and architectural guidance. o Enhancing the practice of planning and decision-making based on accurate statistics and rigorous technical analyses. o Providing access and guidance to best practices in preschool development issues. O Encouraging cross-institutional linkages with other e-learning efforts in the private sector and civil society towards achieving behavioral and institutional change, and social inclusion. - 16 - E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Economic (see Annex 4): o Cost benefit NPV=US$ million; ERR = % (see Annex 4) o Cost effectiveness * Other (specify) Building on the Cost Efficiency of Education Spending study (2002), and based on data supplied by the GOJ, the World Bank has undertaken quantitative analysis of altemative program design based on choice of technique, choice of target group, public/private provision, public/private financing and cost-effectiveness analysis. Education is a profitable investment in Jordan and the rates of return to schooling are highest at the primary (or elementary), college and university levels. While the benefits of providing safe learning environments cannot be quantified, cost effectiveness analyses indicate that efficiency enhancing measures (including rationalization of school size, utilizing excess capacity in existing schools and building extensions instead of independent school buildings where possible) are imperative to delivering a sound school construction program. It takes almost 30 percent more resources per student per year to educate a student at a school designed to house 360 students than it does at a school for 1,200 students. The average size of a public school in Jordan is below 360 students, indicating the potential for much larger cost savings through school rationalization and amalgamation where possible. While it may not be possible to accommodate 1,200 students in rural schools (where student populations are more scattered), it is a plausible option in overcrowded urban areas. Given that over 80 percent of Jordan's population resides in urban areas, such a scheme will realize significant cost savings for the government. Further, investment costs of the school construction program can be reduced by 40 percent (from US$156 m to US$99 m) if the need for safe school facilities is fulfilled through utilizing close to 60 percent of excess classrooms available in the country and if 20 percent of the classrooms required are provided through building extensions to safe school facilities. Human capital formation, equality of opportunity and merit goods rationales for public investment in primary and basic education apply most directly to the child care market. Another aspect of the case for public finance of ECE in Jordan is equity. Lower income households have unequal opportunity to ECE, both due to limited supply in the areas where the poor live and due to the relatively high cost of ECE. Overall, enrollment rates in kindergarten vary by average annual income per household. On average, governorates consisting of more households with higher average annual incomes tend to have slightly higher KG enrollment rates. The extemalities and high social retums of primary education generated from two additional years of KG clearly make the case for treating KG as part of primary education. The private share of primary education financing is close to 30 percent. Thus, it is plausible to say that in universalizing KG education, there is a case for public finance up to 70 percent of total investments in KG. The mode of public intervention is two-fold: direct provision in cases of market failure (in rural remote areas and poor neighborhoods) and subsidizing the nonprofit sector. The GOJ has agreed to undertake a more cost-effective approach to the provision of ECE (i.e., build extensions to existing school facilities rather than independent KG units, which would be the equivalent of very small sized schools). - 17 - 2. Financial (see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see Annex 4) Fiscal Impact: Jordan has agreed on deficit targets with the IMF and is also constrained by external borrowing ceilings. The GOJ is committed to sustain the expenditures required under ERfKE I without breaching deficit targets or exceeding performance criteria on the external debt ceilings. The Government is cognizant of the efforts that would need to be made to ensure that ERfKE I is implemented and sustained. The Government of Jordan is keen on sustaining the expenditure and maintaining the borrowing needed for the program within the macro economic framework prepared in consultation with the IMF. Moreover, the government will maintain the ceiling specified in the public debt law for the year 2001. The GOJ affirms that it remains committed to stay within the external debt ceiling for 2003 and subsequent years, and to make all necessary and possible efforts to reduce its borrowings generally. 3. Technical: The program takes into consideration the context of the current education system and government strategies for the future arrived at through a participatory consensus building process during the September 2002 "Vision Forum for the Future of Education," where a new human resources development vision was prepared with the collaboration of four ministries (Education, Higher Education, Labor and Planning) and stakeholders. Thirty-three percent of the participants were from the private sector and NGOs. The Vision Forum resulted in a close partnership among the Government and the donors in support of the preparation of the ERfKE I program and an umbrella framework for education reform integrating all donors and government contributions. The Cost Efficiency of Education Spending study preceded program preparation and guided the subsequent program work. Extensive and detailed technical work has been carried out for each component of the program which resulted in four separate component proposals from the Government and a series of technical papers and seminars from international experts. Additional technical assistance funded by USAID helped to translate the component proposals into an integrated Five-Year Implementation Plan with activities and output indicators. Component I included the preparation of the Vision Forum sponsored by HM King Abdullah 1I. The Forum set the stage for strategy formulation and subsequent organizational review to be carried out under ERfKE I. The Forum also helped to focus the purpose of the reform on the needs of the knowledge economy and the transformation required in education processes and practices. The terms of reference for the organizational review benefited from the advice of a Quality Enhancement Review panel at the World Bank. Component 2 builds on the e-learning framework funded by CIDA and subsequent CIDA-funded technical assistance of seven international experts which prepared the E-Readiness Assessment of the MOE and Learning Better with Broadband reports. The technical assistance helped to link the curriculum development and assessment processes based on international experience. The implementation plan proposed experimenting with different models of teacher training on the use of technology in teaching and learning and providing school-based innovations to introduce pilots in selected schools in the initial years. Component 3 has been completely reformulated since the initial concept stage as a major anomaly in -18 - education and demographic statistics was detected by the World Bank team. The corrected statistics showed that access to basic education is no longer a problem in Jordan, however, the physical environment is in many instances unsafe or unsuitable for learning in the knowledge economy. The resulting civil works program is based on a building-by-building engineering survey conducted by the Govemment and an initial school mapping exercise which computed (by govemorate) the ratio of space utilization. It is expected that the implementation of the school construction program will be based on a complete school mapping exercise and each school site will be selected based on agreed criteria. School design issues were addressed during preparation to improve efficiency. Further design work will be carried out once the curriculum framework has been prepared (Component 2) and school space will be re-designed to meet curricular requirements. Component 4 was prepared with the assistance of UNICEF, NCFA and a series of World Bank-organized videoconferencing seminars with intemational experts. The provision of teacher training using existing private sector expertise and distance education instead of developing govemment capacity was analyzed. The program also incorporated lessons from the DfID-funded Capacity Building in the Management of the Educational Services 1998-2002 project and JICA-funded e-learning physics curriculum. Additionally, a Quality Enhancement Review (QER) was held at the World Bank in October 2002 which provided concrete recommendations to the World Bank project preparation team. The recommendations were immediately conveyed to the government team and were incorporated into the program design and implementation timetable. The World Bank teamn made extensive use of ICT to link intemational experts residing in different parts of the world, including EIB in Luxembourg, in the program preparation process through a series of biweekly video- and audio-videoconferencing with government teams as well as frequent communications by email. 4. Institutional: 4.1 Executing agencies: The Development Coordination Unit (DCU) of the MOE will be the implementing agency. As described in Section C.4 earlier, the role of NCHRD will focus on monitoring and evaluation of the program within the education sector as a whole, and carrying out research studies on selected topics relevant to the education reform program and its progress. 4.2 Project management: The management of ERfKE I through the DCU benefits from a clear definition of roles and responsibilities and the competitive extemal hiring of its officials including the DCU head, an education advisor, a financial management specialist, a procurement specialist, an IT coordinator and a program coordinator. The DCU will be responsible for the quality control of documents produced by the MOE, the improvement of communication, collaboration and coordination within the implementing units of the MOE, and liaison with the World Bank. The DCU will work through the Policy and Priorites Committee (PPC) and other stakeholders to coordinate the implementation of all reform activities, to be defined each year in an Annual Work Plan (AWP). The AWP will incorporate priority activities needed to achieve the interventions as identified in the education reform documents, and agreed with the various donor agencies. The AWP will be - 19- developed by the DCU on the basis of development objectives contained in the Government's Five-Year Implementation Plan for ERfKE I (see program Operational Manual), taking into account lessons learned from the previous year and priorities identified by the Minister of Education and the PPC. The MOE/DCU in coordination with MOP will organize a meeting with donors to jointly review and discuss draft AWPs each year and the agreed upon support for the activities of the AWP by the donors. Review of the AWPs will focus on three factors: (i) consistency with the overall program objectives; (ii) overall intemal coherence of the plan and congruence amongst its various interventions; and (iii) feasibility in terms of managerial and operational capacity and adequacy of funding. 4.3 Procurement issues: The MOE has extensive experience with World Bank's procurement guidelines which they applied under the HRDSEL I and HRDSIL II projects. Under the latter it became obvious that the MOE's procurement department is understaffed, and that staff require further training. An experienced procurement specialist has been recruited as a staff member of the DCU to provide assistance in implementing the ERfKE I. 4.4 Financial management issues: The financial management risk assessment showed that the accounting and financial management system in place at MOE is based on principles and procedures defined by the legal framework and operational decrees applicable to the public sector in Jordan. This system was found to lack the support of a budgeting module and needs enhancement to become capable of generating timely project reports. Meanwhile, MOE is implementing parallel accounting arrangements to enable its accounting department to generate periodical reports for project management and decision making. For this purpose, MOE has recruited a full-time financial officer and is in the process of acquiring the accounting software capable of generating reports for project management. To mitigate the risk of MOE not having the accounting software in place and operational by the project effectiveness date, and given the disbursement level during year one of the project, MOE will use spread sheet applications to follow, during this period, on the project accounts. In addition, the World Bank will provide support to MOE to achieve the objectives of the parallel arrangements for financial management. (Financial management arrangements are detailed in Annex 6). 5. Environmental: Environmental Category: B (Partial Assessment) 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. No significant environmental issues are foreseen. The only components that could have potential environmental impact would be the construction of replacement buildings for unsafe and overcrowded schools. These schools will be built on existing school sites or vacant sites in the public domain. The experience gained in the implementation of the HRDSIL I and HRDSIL II projects, which included construction of new buildings, will benefit ERfKE I. This experience shows that only three types of impact could be possible, namely, sewage disposal, solid waste disposal and increased vehicular traffic in the vicinity to the schools. Other impacts, such as those associated with construction, topographical and geological conditions at the sites, would be mitigated by the proper selection of sites following environmental criteria which is included in the Operational Manual (OM). Each of these impacts will require separate mitigation measures which shall be included in the design of and the bidding documents for such facilities. The environmental guidelines for the construction of new replacement buildings require a site specific Environmental Management Plan (see generic EM? in Annex 13) as specified in the OM. - 20 - 5.2 What are the main features of the EMP and are they adequate? The OM includes guidelines for the preparation of EMPs for the design and construction of new replacement buildings. The preparation of the site-specific EMPs will be the responsibility of the MOE, with the assistance of local or regional consultants recruited for the design of new buildings. 5.3 For Category A and B projects, timeline and status of EA: Date of receipt of final draft: n/a Given the simplicity of the construction/rehabilitation to be financed under the loan, a separate EA report will not be needed. 5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted? The MOE, in the cases of vacant sites to be acquired, will announce in local newspapers the proposed locations for each school district. For replacement schools to be built on MOE-owned sites which have been acquired following GOJ land use and zoning procedures, sites will be made public as part of the advertisements for bids. As of February 2003, the MOE had not received any complaints from the concemed communities against locating replacement schools in their neighborhoods. However, should there be future concerns raised by affected communities, the MOE through the DCU will ensure that the necessary mitigation measures are incorporated in the design and construction contract. 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? The OM includes monitoring mechanisms to be identified at the time of the preparation of the site specific EMPs. 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. The draft OP 10.05 on Social Analysis, which forms the framework for social development, social inclusion and poverty alleviation inputs to the proposed loan, aims to ensure equitable and sustainable social development outcomes, by ensuring that program design takes account of the socio-cultural, political and institutional contexts. In Jordan, sustainable poverty reduction will require the resumption and sustainability of growth, as well as policy responses which address the vulnerability of the poor and the "near-poor" to economic shocks. The sensitivity of poverty to growth or recession is particularly important in Jordan as a result of the "shallowness" of poverty, where many of the poor are concentrated close to the poverty line, but with little presence of starvation or extreme poverty. The human resource development of the poor is critical if they are to benefit from growth and increased job opportunities. The program's primary social development outcomes are expected to be: * addressing the educational needs and harnessing the learning (and ultimately economic) potential of vulnerable and/or excluded groups (as well as those of school students as a whole); * minimization of the digital divide; * translation of the lessons learned on institutional linkages, poverty alleviation and social inclusion impacts back into informed policy-making. -21 - This reorientation will be brought about through a transformation of the pre-university educational system for all students, with particular attention to disadvantaged groups. This will result in learning outcomes more relevant to a global ecoriomy, preparing graduates for lifelong learning, enhancing employability and national economic growth and equipping Jordan's population with skills relevant to an e-based economy. The program provides the opportunity to address a number of good practice social development issues, which are particularly important in that a number of its activities depend on generating culturally-specific behavioral changes among a range of stakeholders. Key social issues which will remain germane throughout the program life, and which are being addressed through the program are: o the successful achievement of behavioral and institutional changes among key stakeholders, including establishing and maintaining institutional linkages with key primary and secondary stakeholders in the context of the program; o minimizing the digital divide through mainstreaming efforts to address poverty alleviation and social inclusion of disadvantaged groups, particularly the "near-poor," the disabled and women, through e-learning; o monitoring and evaluation of poverty and inclusion-related outcomes of both program-specific, and other related initiatives; o development of a bottom-up consultation and feedback process for stakeholder participation in the transfer to an e-based learning system. To adequately address these critical issues, and to incorporate sustainability and social development good practice into the program's outcomes, a social assessment will be carried out in the first year of the program. This will contribute to program sustainability through: o generating knowledge on the social dimensions of educational change; o creating learning through applied research; o incorporation of the outcomes of participatory monitoring and evaluation at community level to educational providers. Findings of the social assessment will be incorporated into project activities in subsequent years during Annual Work Plan reviews. 6.2 Participatory Approach: How are key stakeholders participating in the project? Key stakeholders in the education sector include students, parents, teachers, administrators, employers, civil society and the private sector. Stakeholder participation in the program is anticipated through the following: o Civil society, academics, the private sector and government participated in a high level Vision Forum for the Future of Education convened by His Majesty King Abdullah II in September 2002. This Forum established guiding principles to underpin policies and strategies to be formulated during the initial stages of the program. o These guiding principles and strategies will be taken to the govemorate level and below via a series of broadly based consultations undertaken by the MOE that will engage parents, teachers, administrators, civil society and the private/productive sectors. o A process and time-bound plan for bottom-up consultation and feedback on the outcomes of the - 22 - Vision Forum will be developed with external technical assistance. * A mechanism for participatory monitoring of poverty and social inclusion outcomes of e-learning innovations will be developed, and related indicators identified from the output of the social assessment. * Linkages will be established with other related initiatives such as the Jordan Information Technology Community Centers "Connecting Jordanians" initiative to ensure complementary inputs and outcomes. * Previous experience indicates that some of the most effective approaches to e-learning evolve through participatory development of activities between teaches, and between teacher and learner. ERfKE I is designed to capture and replicate all successful tasks, assignments and other learning experiences developed in this manner. * Responsibility for the initial definition of revised learning outcomes will be undertaken by the MOE and will involve a national task force. The definition will subsequently be made available to professional associations, employers, and other sectors of civil society for comment. All learning outcomes will be competency-based to meet employer-defined standards. * Increased private sector participation in education is anticipated through the development of educational software packages designed to support the achievement of new learning outcomes. * A fully participatory approach is designed for the preschool component and will include MOE, MSD, NCFA, UNICEF, civil society and parents in initial studies and in the design and implementation of pilot projects. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? See above. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? * International and local social development and educational strategy advice will be provided for the development of a consultative mechanism for dissemination and feedback on the outcomes of the Vision Forum, to be delivered by MOE and other key stakeholders as identified. * Following an institutional mapping exercise as part of the social assessment, international and local expertise on institutional and behavioral change in relation to e-learning, and on poverty and social inclusion will provide support to designated staff in the DCU and other MOE stakeholders at middle management level to: (i) generate and facilitate activity-based internalization of change; and (ii) assess, monitor and incorporate lessons learned relating to minimizing the digital divide and achieving a positive impact on poverty alleviation and social inclusion via e-learning. Terms of Reference for this support will be developed on the basis of the outcomes of the social assessment. * The DCU will be staffed with a Communications Coordinator with the appropriate expertise to address the program's social development aims over the life of the program. 6.5 How will the project monitor performance in terms of social development outcomes? * A mechanism for participatory monitoring of poverty and social inclusion outcomes of e-learning innovations will be developed, and related indicators identified, from the output of the social assessment. This will be housed in the DCU. * Technical support for developing a participatory monitoring and evaluation system and related mechanisms will be required (i) for bottom-up, inclusive dissemination and feedback from the outcomes of the Vision Forum; and (ii) for addressing social development outcomes throughout the life of the program. Terms of Reference for this support will be developed on the basis of the outcomes of the social assessment. - 23 - 7. Safeguard Policies: 7.1 Are any of the following safeguard policies triggered by the pro ect? Policy I Triggered - Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) (9 Yes No Natural Habitats (OP 4.04, BP 4.04, GP 4.04) (9 Yes (9 No Forestry (OP 4.36, GP 4.36) (9 Yes (9 No Pest Management (OP 4.09) U Yes ( No Cultural Property (OPN 11.03) () Yes (U No Indigenous Peoples (OD 4.20) ( ) Yes CU) No lInvoluntary Resettlement (OP/BP 4.12) Yes U No Safety of Dams (OP 4.37, BP 4.37) (U) Yes U_ ) No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) (9 Yes U No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* (_) Yes (C) No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The OM includes a generic EMP (submitted by MOE March 20, 2003) and guidelines to be considered in the selection of sites for replacement schools as well as in the design and construction of extensions to existing schools and new facilities. The new facilities funded by the World Bank to replace unsafe or overcrowded buildings will be located generally at the same sites or on vacant properties belonging to MOE. Also, World Bank supervision during project implementation will include an enviromnental expert, as required, to ensure compliance with World Bank guidelines as provided for in the OM. F. Sustainabilty and Risks 1. Sustainability: Recurrent expenditures associated with the program reach around 1 percent of the total investment cost at the end of the first phase of the program. This amount could likely be sustained. 2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1): Risk Risk Rating Risk Mitigation Measure From Outputs to Objective Education sector policy directions are not N The highly successful Vision Forum for the endorsed by senior leadership Future of Education demonstrated high-level commitment. This serves as a model for a year long series of consensus building workshops at the community and governorate levels to be carried out under the program. Public awareness does not support the M The Vision Forum has shown that a group of new strategy reform champions exists in both the public and private sector. It is necessary to empower the reform champions to generate strong public support. Planning efforts do not translate M Extensive technical assistance has been education strategy into achievable provided in the program to support actionable -24- actions plans. Governance and management changes M Stakeholder participation is emphasized in the not accepted by stakeholders organizational review exercise. Governmental ownership of program and N A long series of consensus-building workshops participation in its development are not is planned to involve all stakeholders. expanded by involving all organizational levels within the system EDSS is not widely accessible nor M Extensive training will be provided at all levels accepted by decision makers and other on the use of EDSS and an incentive system stakeholders as a useful tool to inform will be introduced to encourage the use of and provide improved decision-making EDSS. Roles of NCHRD and the National M The program devotes substantial resources to Examination Center remain unclear and strengthen both entities and ensure few collaborative activities are coordination between them. undertaken Staff, resources and operational M Recruitment of staff at DCU is underway and leadership are not consistently and functioning of the PPC will be evaluated. continuously provided to the DCU, and the PPC does not provide policy guidance and direction Comnuunity (parents and students), M A year-long series of "road shows" is planned employers and tertiary education do not for consensus building. Large numbers of support new curriculum framework stakeholders will be involved in the curriculum reform to ensure ownership and support. Teachers will not actively use new M Teachers will be involved in the curriculum methods of teaching, new modes of reform to ensure ownership and support. A delivery and e-learning infrastructure and staff incentive system will be reviewed to resources encourage teachers to use new methods of teaching and e-learning infrastructure resources. Adequate pre-school capacity building N International technical assistance will be will not be completed prior to pilot provided for capacity building. projects From Components to Outputs Government and MOE management and N Stakeholder participation at all levels of the administration do not continue education system are emphasized from the commnitment to the program beginning. Participatory processes are ineffective N Program responsibilities are distributed among with stakeholders various departments to avoid over-dependence on one person. - 25 - Major changes in personnel in key M Integrated implementation plans are prepared leadership and management positions annually to ensure coordination. (i.e. Minister, DCU, Directorates) Resources are uncoordinated and are not H The Development Coordination Unit was provided in a timely manner to meet established to address the coordination issue. requirements of key activities Capacity to undertake the preparation of M Bilateral donors resources are secured upfront. a new curriculum and learning assessment framework are not sufficiently developed prior to the revision Inter-ministerial collaboration is not M Commitment from the top level will re-enforce effective inter-ministerial collaboration. Trainers are not motivated about N Selection of trainers will be based on proper learner-centered models criteria. Optimal school utilization strategies are N School mapping exercise has already begun. not accurately developed Overall Risk Rating M Risk Rating - H (High Risk), S (Substantal Risk), M (Modest Risk), N(Negligible or Low Risk) 3. Possible Controversial Aspects: There are two areas of possible controversy. The decentralization of administration may experience resistance at the central level in order to maintain the status quo. Curriculum reforms may not be equally supported by all members of the society. Extensive participation exercises have been designed to alleviate these potential problems. G. Mlain Loan Conditions 1. Effectiveness Condition None 2. Other [classify according to covenant types used in the Legal Agreements.] None lH. Readiness for DmlpOementation 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. L 1. b) Not applicable. z 2. The procurement documents for the first year's activities are complete and ready for the start of - 26- project implementation. 3 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. E 4. The following items are lacking and are discussed under loan conditions (Section G): Consultants recruited by the MOE are scheduled to complete the design of 98 replacement schools, and procurement is scheduled to be completed shortly after Loan effectiveness. The MOE is in the process of increasing its technical and professional staff responsible for the execution of civil works to improve quality assurance and to expedite project implementation. The draft Bidding Documents for works were reviewed by the World Bank and its comments are being incorporated by the MOE. These Bidding Documents will be used by consultants to standardize procurement procedures and contracts. 1. Compliance with Bank Policies 3 1. This project complies with all applicable Bank policies. C 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Mae Chu Chang _. _ Jact Baudouy %aba Team Leader ctor Director untry Director - 27 - Annex 1: Project Design Sumrnary JORDAN: Education Reform for Knowledge Economy g Program Key Performance Data Collection Strategy Hierarchy of Objectives Indicators Critical Assurmptions Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission) Promote human development for School age population has equal School and population census, The macroeconomic and the knowledge economy and access to education to acquire household survey on poverty institutional framework and poverty alleviation. basic skills, core competencies lifelong learming systems are in and essential leaming for the place. knowledge economy. Project Development Outcome I Impact Project reports: (from Objective to Goal) Objective: Indicators: Transform the education system A redefined vision and integrated Analysis of legislation relating to Consensus built on the elements at the basic and secondary levels education strategy will be education and MOE's regulations of a knowledge economy and the to produce graduates with skills developed, and policies and and policies need for change in the education necessary for the knowledge regulations aligned with the new system to meet those elements. economy. vision and strategy will be Results of national and revised. intemational assessments, Funding for education is secure including secondary analysis by The average standardized score of NCHRD Political and regional stability Jordanian students in avoiding massive demographic international assessments of Engineenng survey on facilities imbalances. mathematics and science will improve. Indicators from EDSS National and institutional senior leadership and commitment to At least 80 percent of the pnmary educational reform is maintained. and secondary students will have access to safe and adequate basic Decentralization within the and secondary education school country's socio-cultural context facilities. or structure yields greater efficiency. At least 70 percent of basic and secondary students will be using on-line leaming portals. The gross enrollment rate in the second level of kindergarten will increase to 51 percent. - 28 - Hierarc.y of Objectvs ] . , .Key Perf,ormance S . Data CollectIln Strategy Hierarchy of Objectives, l6 ,Idicaito,rs . , .-, Critical Assumptions Output from each Output Indicators: Project reports: (from Outputs to Objective) Component: 1. Re-orient Education Policy Objectives and Strategies through Governance and Administrative Reform a) Redefined vision and a) National education strategy is a) Interviews and independent a) Education sector policy integrated education strategy developed with broad-based surveys with parents, private directions are strongly endorsed formulated and adopted. consultation process, endorsed by sectors, MOE managers, school and maintained by senior senior leadership, adopted by the principals, teachers and students. leadership. Ministry of Education and used as Regular updating and use of a a guide for action. master implementation plan for Public awareness successfully the education strategy. provides broad based support for Increased share of social partners the new strategy at an early stage in policy formulation of the Opinion surveys and measures of of the program. Planmng efforts system and increased transparency and accountability. translate education strategy into transparency and accountability in achievable actions. the system. b) Revised governance, b) Mandate, structure and b) Reports of changes in b) Acceptance of govemance and management and decision making decision-making processes of performance of units whose management changes by all mechanisms are in place that governance and management are structure and/or functions have stakeholders; govemmental enable the delivery of basic skills, reviewed, revised and operational, been revised. Number and type ownership of program and core competencies and essential including the legislative and of legislative and regulatory participation in its development leaming for the knowledge regulatory changes required to changes made. Prevalence of are expanded by involving all economy. enable changes. community involvement (parents, organizational levels within the b) Increased support for private sector, civil society, system. school-based innovations students) in educational decision-making. c) An integrated EDSS system is c) EDSS available and being used c) Site visits of facility and c) EDSS is accessible widely and developed and in operation. by 50% of decision-makers, proficiency in retrieving timely is accepted by decision makers information seekers, and EDSS information in different and other stakeholders as a useful researchers by 2006 and 90% by offices; good quality policy tool to inform and provide 2008. analysis documents using data improved decision-making. from EDSS. d) Educational research, policy d) Increased quality and quantity d) Type, quality, quantity of d) Roles of NCHRD and the analysis, monitoring and of educational research, educational research, monitonng National Examunation Center are evaluation and national leaming monitoring and evaluation and evaluation activities, and clanfied and collaborative assessment activities are activities and national learning intemational and national activities are undertaken strengthened Participation in assessments are being used to leaming assessments and degree intemational assessments. influence educational policy of use of findings to inform decisions. policy analysis and decisions. e) Investments in educational e) DCU and PPC are operating e) DCU progress reports, minutes e) Staff, resources and operational reform are coordinated and effectively, implementation of of PPC, fewer implementation leadership are consistently and well-managed. reform programs are improved barriers, perception of donors and continuously provided to the and increased coordination of others re: degree of coordination DCU and the PPC provides policy educational investments is and collaboration guidance and direction. evident. 2. Transform Education Programs and Practices for the Knowledge Economy a) Development of a new core a) New curriculum framework a) Independent surveys and - 29 - a) Community, employers and curriculum (covering basic skills, emphasizing basic skills, core interviews to assess the extent of tertiary education community core competencies and essential competencies and essential utilization of e-learning materials support the new curculum content) to align learning learning for a knowledge in schools and the approaches framework. outcomes with the knowledge economy developed and in place, followed. economy, and strengthening of 50% of subjects by 2006, 100% monitonng, evaluation and of subjects by 2008. a) Results of periodic skills assessment through periodic assessments, as well as NCHRD's assessments at grades 3, 6 and 9 a) Improvements in results of monitoring instruments. of key skills for a knowledge penodic skills assessment within economy: literacy, numeracy, the timeframe of the program a-b) Supervisor reports on critical thinking, problem solving (Grades 3 and 6). education system and sample and communication. surveys of teacher performance. a) Examination Database with 50% of core competencies completed by 2006, and 80% by 2008. b) Training of teachers and b) Percentage of teachers utilizing b) Results of NCHRD studies on b) Teachers actively use new administrators to deliver the new e-leaming enhanced curriculum the health of the education methods of teaching, new modes curricula in different ways and increased from IO% to 50% by system. of delivery and e-learning through different means resulting 2006, and 100% by 2008 infrastructure and resources in a transformed educational b) Results of MOE assessments of system with effective c-learning b) Teachers trained with basic skills. and teaching directed towards the ICT skills increased from 5,000 to knowledge economy. 30,000 by 2006, and 50,000 by b) NCHURD monitonng and 2008 evaluation reports. b) Percentage of trained teachers utilizing new methodology increased to 40% by 2006, and 80% by 2008. c) Connectivity for all schools c) Number of schools with access c) Reports and statistics from the and directorates with an to computers increased from learning portal. e-leaming infrastructure set up 2,100 to 2,700 by 2006, and and equipment installed 3,000 by 2008. c) Percentage of students using online leaming portal increased to 30% by 2006, and 70% by 2008. 3. Support Provision of Quality Physical Learning Environments a) Replacement of unsafe and a) Classroom extensions and a-b) MOE, NCHRD and Dept. of overcrowded schools based on replacement schools provide Statistics reports and EMIS appropriate school mapping access to 100,000 students by indicators. 2006, and 200,000 students by 2008. a) Rehabilitated schools provide safe access to 244,800 students by 2006. b) Existmg schools upgraded to b) Computer classroom extended support learning in the knowledge to provide access to 270,000 economy students by 2006, and 468,800 students by 2008 - 30 - b) Science labs extended to provide access to 126,000 students by 2006, and to 252,000 students by 2008 4. Promote Readiness for Learning through ECE a) An enhanced institutional a) Appropnate regulations and a-c) Departmental and EMIS a-c) Adequate pre-school capacity capacity (regulation, and standards for KG developed by reports. will be built pnor to pilot standards) for KGs developed and 2008. a) An assessment of regulations, projects. programs updated. policies, standards, and approaches. (20034), assessments of existing ECE leaming materials and approaches b) A cadre of ECE specialists b) number of teachers trained in trained and developed. ECE increased according to needs c) Enhanced access to KG by c) Enrollment rate in KG II poor increases to reach 48% GER by 2006 and 5 1% by 2008, d) Public awareness and d) 3 governorates each piloted 3-4 understanding increased through Integrated Child Development Information, Education and Centers to serve families and Communication (IEC) and communities in remote and poor networks with NGOs, local areas. communities and the private sector established Project Components I Inputs: (budget for each Project reports: (from Components to Sub-components: component) Outputs) 1. Re-orient Education Policy US$ 11.7 million MOE annual reports Government and MOE Objectives and Strategies management and administration through Governance and MOE/DCU Progress Reports contmues commitment to the Administrative Reform program. Financial Reports a) Redefinition of vision and Participatory processes are used development of a comprehensive Bank supervision reports effectively with stakeholders and integrated education strategy to meet the learning needs of a TIMSS and PISA Limited change in personnel in knowledge economy key leadership and management NCHRD progress reports positions (i.e. Minister, DCU, b) Revision of governance, Directorates) management and decision making Educational research mechanisms including Resources coordinated and encouraging school-based Monitoring and evaluation reports provided in a timely manner to innovations meet requirements of key activities c) Education Decision Support System (EDSS) d) Educational research, monitoring and evaluation, national and international learming assessments and policy - 31 - analysis e) Effective management and efficient coordination of educational reform investments. 2. Transform Educatfon US$102.1 million MOE Progress reports Capacity to undertake the revision Programs and Practices for the of curriculum, leaming materials, Knowledge Economy and assessment will be sufficiently developed prior to the a) Prepare curriculum and revision. assessment for the knowledge economy Close inter-ministerial collaboration can be expected. b) Professional development and training Trainers of trainers and teachers are motivated in learning c) Resources to support learning leamer-centered model. 3. Support Provision of Qualty US$236.5 million MOE Progress report Optimal school utilization Physical Learning strategies are accurately Environments developed. a) Replacement of schools in inadequate conditions b) Upgrading existing schools to support learning in the knowledge economy 4. Promote Readiness for US$18.5 million MOE Progress report Learning through ECE a) An enhanced institutional capacity (curriculum, licensing and standards) for KGs and programs b) ECE professional development c) Increased access to KGs for the poor d) Parent and Community participation and partnership - 32 - Annex 2: Detailed Project Description JORDAN: Education Reform for Knowledge Economy I Program By Component: Project Component 1 - US$11.70 million Reorient Education Policy Objectives and Strategies through Governance and Administrative Reform Component 1 is designed to support the development and implementation of policies and strategies to reorient and enable effective governance and efficient management of the educational system to serve the needs of the individual learner and society at large within a knowledge economy. The component has five sub-components: (1.1) redefine the vision and comprehensive integrated national strategy for education; (1.2) improve governance, management and decision-making processes; (1.3) integrate an Educational Decision Support System (EDSS); (1.4) conduct educational research, educational monitoring and evaluation, national and international learning assessments and educational policy analysis; and (1.5) develop effective management and efficient coordination of investments in educational reform. Sub-component 1.1 - Redefine vision and comprehensive national strategy for education This sub-component is designed to support the development of and commitment to a shared vision for education - one of the most important cornerstones in any major educational reform effort. In Jordan, HM King Abdullah II initiated the process of creating a new vision for education. The importance of a responsive education system to social and economic success has been highlighted through many previous consultations in the country. Most recently, with support from the World Bank and CIDA, a "Vision Forum for the Future of Education" was held in Jordan (September 2002). Additional technical assistance to further refine and describe the vision and strategy will be provided as part of the program. This assistance includes a series of national consultations at local levels with school managers, teachers and parents. Sub-component 1.2 - Improve governance, management and decision-making processes This sub-component is designed to improve governance, management and decision-making processes. To realistically expect to achieve the promises of a better future offered by a new vision for education, the governance model, management structures and decision-making processes within the present system of education will need to undergo major restructuring. The program is designed to support a number of activities that will assist the government to take the necessary measures to ensure that effective change will be achieved. Regulatory frameworks will also need to be reviewed to ensure support for effective reform. For example, current regulations to provide a school facility for a minimum of ten students has resulted not only in inefficient and unaffordable school sizes throughout the country, but also in a mismatch between student populations and school occupancy. The following approach is envisaged: * Contracting an international management consulting firm with specialized skills in educational reform to conduct a review in the context of a realignment of educational systems to meet the needs of a knowledge economy. The review is expected to be participatory in nature and will examine all aspects of educational governance, management and decision-making (including legislative, regulatory and procedural frameworks). Impediments to desired reforms and gaps in the provision of services will be identified and a series of options for resolution will be provided for consideration - 33 - and direction by the government. The government will select the preferred organizational development model after appropriate consultations. o The program will provide support to selected school-based and ministry-based pilots on various aspects of the proposed organizational development model. The organizational review and the organizational development plan that emerges will inform other components of the program and other sub-components within this component (e.g., the EDSS). It is expected that significant modifications may be required to the program to ensure the investment continues to be aligned effectively with the emerging governance approaches, management structures and decision-making processes. Of critical importance will be the need to conduct a comprehensive mid-term evaluation following the approval of the organizational model in order to assess the impact of the model on the program design and to realign remaining activities in the program to support the adoption and implementation of the desired organizational model. Of particular note is the potential for support to be provided to activities within this sub-component through PSRL and Df[D's support to the Administrative Reform Program of the government. Sub-component 11.3 - Integrate an Education Decision Support System (EDSS) This sub-component is designed to support the integrated EDSS that was identified as essential during program preparation. Three initiatives were discussed during initial preparation: an initial school-mapping effort, a proposal for a decision support system and the desire to strengthen the education management information system. Based on input from an international expert in school mapping, and on advice by the World Bank, a decision was made by the MOE, and supported by NCHRD, that an integrated approach to educational information was required. Other agencies and initiatives will need to be aware of and linked to the EDSS to improve effectiveness and efficiency. A participatory consultative process to further the development of the EDSS is incorporated into the development of the system. The program will support the following activities: o Recruitment and training for the EDSS Coordinator and staff; o Preparation of an integrated EDSS technical development plan; o Provision of hardware and software for MOE Directorates and pilot schools; o Implementation and institutionalization of the EDSS to support generic and specific national initiatives; o Devolution of school-mapping activities, data processing and basic analysis to the Directorate level; o Development of a knowledge base for supporting education management decisions (link data, information to education policy development); o Building of additional management capacity to utilize EDSS effectively; and o Piloting of EDSS in Directorates and 62 schools. The development of the integrated EDSS will be further informed by the findings and recommendations of the organizational review. It is expected that the EDSS will be considered a critical element of the organizational decision-making process that will emerge from the organizational development activities. Sub-component 1.4 - Conduct educational research and policy nazlysis, monitoring and evaluation This sub-component is directed towards strengthening the role, mandate and activities of the NCHRD in providing independent objective information on and knowledge about the performance of the educational system. Timely information and relevant knowledge on the progress and impact of educational reforms will become increasingly important in guiding decisions that will enable the shift of the educational - 34 - system to meet the needs of a knowledge economy. There are four main areas for development: (i) provision of quality, timely and relevant educational research on key issues facing the educational system; (ii) enhanced monitoring and evaluation practices and activities to provide timely and relevant feedback on the progress and achievements of educational reform programs; (iii) national and international standardized learning assessments; and (iv) provision of informed educational policy analysis and policy development. The program will support the following activities: * Continuous monitoring and evaluation of the various education reform efforts and programs in the country, including ERfKE I, against predetermined performance indicators; * Conducting international learning assessments (TIMSS for 2003 and 2007; PISA for 2006); * Analysis and reporting on educational progress against standard international indicators (e.g., World Education Indicators); * Design and implementation of national sample-based periodic assessment of student learning; * Conducting education policy analysis and development in response to findings of specific research and learning assessments; and * Conducting specific studies on the "pilots" to be introduced through the ERfKE I program, including school-based management, teacher training, and curriculum development approaches. It is expected that strong linkages will need to be developed with other agencies involved with educational research as well as agencies involved with social inclusion and poverty alleviation issues in order to improve the validity, reliability and utility of research undertaken by the NCHRD. With respect to learning assessments specifically, a collaborative mechanism will be developed between the NCHRD and the Department of Examinations or the National Examination Center when established, to ensure increased cooperation, improved synergy and value-added to the analysis of learning assessments. Sub-component 1.5 - Develop effective management and efficient coordination of investments This sub-component is designed to establish and ensure the effective management and coordination of various investments. Emerging from discussions on improving the implementation arrangements for the ERfKE I program, the government has established the Development Coordination Unit (DCU) and the Policy and Priorities Committee (PPC) within the MOE. The DCU will serve as a technical secretariat to the PPC - a broad-based stakeholder representative council chaired by the Minister of Education. Reaching beyond the ERfKE I, the DCU and PPC have been established to provide effective management and efficient coordination to all educational reform efforts and projects. The Council of Ministers has endorsed the approach and provided the MOE with interim financing for the DCU until project effectiveness. In addition, the DCU will support school-based innovations based on proposals for innovative approaches to management, curriculum development and teacher training prepared by school teachers and principals. Schools will submit proposals to the DCU. The proposals will be reviewed on a competitive basis by educational practitioners. Support will be provided in terms of goods, materials and services. Funded under this component are operating costs, equipment and technical assistance. - 35 - Project Component 2 - US$102.10 million Transform Education Programs and Practices for the lKnowledge Economy Component 2 is designed to transform teaching and learning processes in order to achieve the learning outcomes that are relevant to and consistent with the requirements of the knowledge economy. This component includes three sub-components: (2.1) the preparation of new curriculum, including enhanced learning assessment methodologies; (2.2) the professional development of MOE personnel, with a particular focus on teachers, supervisors and principals; and (2.3) the provision of the required resources for supporting effective learning, including required information and communication infrastructure, equipment and learning materials. Sub-component 2.1 - Prepare curriculum and assessments for the knowledge economy This sub-component is designed to assist the MOE, in collaboration with curriculum development experts and stakeholders both within and external to the Ministry, to develop new curriculum and learning assessment frameworks based on the recently developed national vision and integrated strategy for education. Development will involve 300 teachers, supervisors, principals, curriculum developers, and examination personnel to work closely over a three-month period with an international team of curriculum development specialists. Following the development of the curriculum and learning assessment frameworks, curriculum development/learning assessment teams will be formed to work with international curriculum subject matter and learning assessment specialists in the design and development of the curriculum and assessments. This process includes research and assessment of available curriculum, the acquisition of curriculum that is already developed, the modification of curriculum to meet new requirements as well as the development of new curriculum. Concurrently with the development of the curriculum, investments will be made to strengthen the institutional capacity of the MOE to manage the curriculum development and learning assessment processes. Development of leaming assessments will include periodic testing at grades 3, 6 and 9 of key skills for a knowledge economy as well as the development of an examinations database. Curricula and assessment methods and content will be developed collaboratively, drawing on international "best practice" and ensuring a high-level of participation of teachers and supervisors in the development process. Curricula and assessments will address specifically and directly the learning outcomes defined and described by the new curriculum framework. In order to meet the challenge of rapid implementation of a new curriculum while simultaneously taking advantage of recent investments in education, the initial focus will be on the development and implementation of a "core curriculum" that will be implemented according to the proposed sequence noted below. - 36 - PROPOSED IMPLEMENTATION SEQUENCE FOR CURRICULA BY GRADE LEVEL Grade ERFKE PROGRAm DURATION Level (Assumes Curriculum Framework and Learning Outcom s Developed by Septe ber 2003) SEPT 2003 TO AUG SEPT 2004 TO AUG SEPT 2005 TO AUG SEPT 2006 TO AUG SEPT 2007 TO JUNE 2004 2005 2006 2007 2008 1 Develop learming Implement core matenals and train curricula 2 Develop learning Implement core matenals and train cumcula 3 Develop learning Implement core materials and train curricula 4 Develop learning Implement core matenals and train cumcula 5 Develop learning Implement core materials and train curricula 6 Develop learning Implement core __________________ materials and train curricula 7 Develop learming Implement core materials and train curricula 8 Develop learming Implement core materials and train curricula 9 Develop leaming Implement core matenals and train curricula 10 Develop leaming Implement core materials and train cumcula 11/12 Develop learning Implement 50 % core materials and train core curricula 11/12 Develop learning Implement 50 % core matenals and train core curricula 11/12 Develop learming Implement core MIS materials and train curricula 11/12 Develop learning Implement core Acad. matenals and train cumcula 11/12 Develop learning Implement core Set. . matenals and train curricula 11/12 Develop leaming Implement core Voc. materials and train cumcula Sub-component 2.2 - Provide professional development of MOE Personnel This sub-component is informed by the development process and implementation schedule for the new curriculum, teachers, supervisors and principals, and is designed to actively engage participants in preparatory training and proLessional development activities. These training and professional development activities will: (i) provide an in-depth introduction to and understanding of the new curricula; (ii) assist in understanding and practicing their new roles as facilitators and guides in learning; and (ii) introduce and improve the effective use and management of various technologies (including ICT) to enhance the effective learning processes. Two approaches will be used to provide teachers, supervisors and principals with the required training and professional development opportunities: (i) in-service training - offered through regularly scheduled - 37 - workshops and summer institutes immediately preceding the implementation of the new curriculum; and (ii) on-service training - provided through teams of "Mentor Teachers" that will be dedicated to working throughout the school year directly with teachers, supervisors and principals in the schools where and while new curriculum is being introduced. Concurrent with the professional development and training described above, workshops and training will also be provided on the new organizational model and processes that are to be developed during the 2003 academic year. Adjustments to the quality, content and approaches of pre-service professional preparation of teachers by the nation's universities will be required in order to provide new teachers with the knowledge and skills required to respond to and effectively use the new curricula being developed. Discussions between the MOE and the Faculties of Educational Sciences at universities will be enhanced through support provided by the program. In addition, discussions with universities will include the design and development of certification programs for supervisors and principals. As an additional effort to align the professional development and training of teachers, supervisors and principals with the new organization structure and processes and the demands of the new curriculum, the current professional development, incentive and ranking systems will be assessed and modified to promote additional motivation to employees of the MOE. Sub-component 2.3 - Provide required resources to support effective learning This sub-component will support the effective implementation of the new curricula, appropriate learning facilities, equipment and resources that are needed for effective learning including school connectivity. These resources include the learning, computer and science laboratories, equipment and supplies; text, work and exercise books and software; various learning materials; software applications and learning content; and the ICT infrastructure, equipment, software and processes (e.g., Education/ICT Help-Desk) to support the effective use and management of e-learning (including on-line connectivity and use of learning portal). To facilitate timely implementation within the ERfKE I program period (2003-2008), external service providers will be contracted to provide for the development of curricula, conducting professional development activities, preparation of required learning resources and materials, and the installation, development and management of the ICT infrastructure. This approach not only allows for rapid development, it can encourage and enable the development of the private sector in meeting the requirements of the educational system, allowing the MOE to focus increasingly on its core mandate of effectively supporting learning. Financed under this component are hardware, software, technical assistance, training and funding to support innovative piloting of new learning, curriculum development and professional development approaches. - 38 - Project Component 3 - US$ 236.50 million Support Provision of Quality Physical Learning Environments Component 3 is designed to improve the quality of the learning environment in public schools through the replacement of unsafe buildings and the alleviation of overcrowding, and through upgrading the facilities to support learning in the knowledge economy. This component has two subcomponents: (i) replace structurally unsafe and overcrowded schools and (ii) upgrade existing schools to support learning in the knowledge economy. Sub-component 3.1 - Replace structurally unsafe and overcrowded schools This subcomponent is developed from the results of three studies of MOE schools conducted during program preparation. These include: a physical facilities needs assessment survey, a school-by-school survey of the physical condition in all rented schools, rented annexes to MOE-owned facilities and double-shift schools, and a survey of the utilization of capacity in all MOE schools (owned and rented). The criteria for evaluating the physical construction and services at MOE schools included: age of building, condition of the structure, plastering, tiling, electrical installation, plumbing, sewage, sanitary units and school yard. School safety was based on the condition of ventilation, lighting, fire safety of school buildings, availability of emergency exits and handrails, access for vehicles and physical boundaries. To determine the adequacy of classroom space, it was assumed that on average, each basic education student in Jordan requires a minimum of 1.2 m2 of space in a classroom. Thus, if the area of a classroom is less than 1.2 m' per student, the classroom is considered to be crowded. At the aggregate level, it has been determined that about 200,000 children (or nearly 20 percent of MOE students) are studying in structurally unsafe and overcrowded facilities: 45,068 in unsafe rented schools, 3,262 in unsafe rented annexes of MOE-owned schools, 47,098 in unsafe double-shift schools and 97,260 in overcrowded schools country-wide. More than 200 rented schools (out of a total of 611), over 40 rented annexes (out of a total of 87) and close to 50 double-shift schools (out of a total of 337) have been identified as extremely inadequate and structurally unsafe. MOE schools in nine directorates are overcrowded. Overcrowding is a problem in 39 percent of MOE-owned schools, over 75 percent of rented schools, 52 percent of rented annexes of MOE-owned schools and close to 70 percent of double-shift schools. While the dropout rates and repetition rates do not differ significantly between students in MOE-owned facilities and those in rented facilities and in double-shift schools, students in these facilities under-performn in national assessments. A 1998 survey of scores in Arabic language, mathematics and science tests reflected that students in rented schools scored significantly below their peers in MOE-owned schools in mathematics and science. The problem of inadequate learning resources is prevalent in rented schools. Over 300 schools have been identified as requiring urgent rehabilitation. And roughly 650 schools lack computer labs and 350 lack general science labs. The MOE will provide alternate placement for all children studying in unsafe rented schools and rented annexes because of the poor commitment from property owners to rehabilitate rented facilities, as well as the inappropriateness of rented facilities for upgrades related to a new curriculum for the knowledge - 39 - economy, including computer labs. Moreover, since most of the double-shift schools are MOE-owned facilities, unsafe double-shift school buildings will be rehabilitated. Nevertheless, some children studying in unsafe double-shift schools will need alternate facilities to relieve overcrowding. In accord with the analysis of cost effectiveness conducted during the program preparation, the provision of spaces will be undertaken, in order of priority, through the efficient use of existing facilities, construction and equipping of extensions to existing safe schools, rehabilitating existing facilities and the construction of new buildings. There is evidence that although the foundations in MOE-owned and operated schools are built to accommodate up to 4 floors in urban areas and 3 floors in rural areas, current construction is mostly limited to 3 floors in urban areas (with some exceptions in Amman and Zarqa) and 1 floor in rural areas. At JD 100/rn, the capital cost associated with vertical extensions is 44 percent cheaper than the cost of new construction (JD 144/mr). The amortized capital cost of constructing and equipping one classroom through vertical extension (for 36 students) is JD 19 per student school year (as opposed to JD 67 per student school year for a 1,200 student school). Savings can also be generated in recurrent costs as additional administrative and maintenance staff do not have to be hired in the case of an extension to a school building. Therefore, depending on capacity, the MOE agrees to consider vertical extensions as alternatives to constructing entirely new buildings. It is also noteworthy that the new school design will aim at enhanced efficiency and, where possible, enroll up to 1,200 students (with average enrollment set at 720 students per school). At present, close to 70 percent of MOE schools enroll less than 400 students (see table 6 in Annex 4), the lowest enrollment being 3 students in a school. The average size of rental schools is 177 students, with the lowest number of students in a school being 14. The identification of needs for this subcomponent, therefore must be tied with the school mapping study so as to enhance efficiency. Economic analysis conducted during program preparation indicates that it takes almost 30 percent more resources per student year to educate a student at a school for 360 students than it does at a school with capacity for 1,200 students. Since the current average size of a public school in Jordan is below 360 students, there is a potential for significant cost savings through school rationalization and possibly amalgamation. While it may not be possible to accommodate 1,200 students in rural schools (where student populations are more scattered), it is a plausible option in overcrowded urban areas. Given that over 80 percent of Jordan's population resides in urban areas, such a scheme will realize significant cost savings for the government (see table 8 in Annex 4). Sub-component 3.2 - Upgrade existing schools to support learning in the knowledge economy This subcomponent is designed to support the upgrade of facilities by constructing and equipping computer laboratories and general science labs in secondary schools that are lacking these facilities. This is directly in line with Jordan's aim to develop a competitive labor force to move to a knowledge-based society. The design of these facilities will follow the curriculum development to ensure appropriate space standards for the curriculum. Project Component 4 - US$18.50 million Promote Readiness for Learning through Early Childhood Education (ECE) Component 4 is designed to support the implementation of an ECE strategy to ensure that families and communities partner with the education sector to better prepare children for learning and to prevent school failure. This component includes four subcomponents: (4.1) institutional capacity building; (4.2) professional development of early childhood educators; (4.3) increased access to KGs for the poor; and (4.4) parent and community participation through the piloting of community-based centers in selected - 40 - govemorates. Sub-component 4.1 - Build institutional capacity This subcomponent is designed to create institutional capacity to build a MOE Pre-School Division and other stakeholder institutions to develop a curriculum framework for the 4 to 6 year age group, update and revise guidelines for licensing requirements of KGs based on a curriculum framework, and adapt a survey instrument to monitor child readiness at school entry. This capacity building would expand on a current task to review and develop an ECE curriculum framework, which is financed by a grant from the Arab Fund for Economic and Social Development. Additional activities to develop guidelines and standards will be undertaken with technical assistance and will be implemented by the MOE in collaboration with interested public and private organizations. Sub-component 4.2 - Provide professional development of early childhood educators This subcomponent is designed to establish a professional development system to create a cadre of early childhood educators and will support: * development of an in-service training program for ECE teachers, trainers of teachers, and administrators/principals in public and nonprofit NGOs, linking demonstration schools within service activities; * design of a variety of resources for in-service training, and deliver through new and existing technology such as the internet and videos. * coordination of pre-service training programs with selected universities (such as University of Jordan and Hashemite University) and upgrading teacher qualification programs based on the new curriculum framework. The professional development program would be led by the MOE Pre-School Division in collaboration with other stakeholders, using program resources. Number of Trainees by Target Group During the Period 2003/2007 Target Group 2003 2004 2005 2006 2007 Public KG Teachers 305 50 50 50 50 Nonprofit KG - 200 200 200 200 Teachers Public KG 156 25 25 25 25 Administrators Nonprofit KG - 50 50 50 50 Administrators ___ Trainers of Trainees 35 20 20 20 20 Total 496 345 345 345 345 Sub-component 4.3 - Increase access to KGs for the poor This subcomponent is designed to finance the extension of KGs to primary schools to increase enrolment in KG II from 47 to 51 percent by 2008. MOE conducted statistical analysis to show the needs by govemorate: -41 - KGs in Jordan GGGOVT KGTNS CLSRMS STUDENTS ST/I000POP STUD/CLS STUD-2 CLS-2 ADDL __________ _________ ___________ ~~ ~~007 007 _ _ _ AJLOUN 21 64 1614 14 25.218 2534 84 20 AMMAN 462 1509 31506 16 20.879 43434 1448 -61 AQBA 17 80 2150 21 26.875 2294 76 -4 BALQA 86 246 5820 18 23,659 7488 250 4 IRBID 236 764 17832 20 23.34 20364 678 -85 JARASH 17 54 1322 9 24.481 3356 112 58 KARAK 36 120 2897 14 24.142 4589 153 33 MAA'N 31 79 1897 19 24.013 2226 74 -5 MADABA 31 79 1897 19 24.013 2226 74 -5 MAFRAQ 3 14 415 2 29.643 5262 175 161 TAFILA 13 40 1153 15 28.825 1735 58 18 ZARQA 114 441 11564 15 26.222 17956 599 158 As a result of the cost efficiency study (see Annex 4), the MOE has opted to target children whose parents cannot afford private ECE services by providing ECE in areas of the country where no private entity would invest, i.e., remote and/or rural low-income areas. About 250 public KGs will be added to primary schools with appropriate equipment and learning materials. The program will also support equipping about 50 KGs managed by nonprofit NGOs. Sub-component 4.4 -Promote parent and community participation in ECE This sub-component is designed to support "devolution" of the National Better Parenting program to govemorates and establish pilot govemorate level Integrated Early Child Development (IECD) Committee in the three govemorates with the poorest population and least developed service networks. Under the IECD Committee in each pilot govemorate, three to four Child Development Resource Centers will be set up to provide early child development services, parent education and outreach activities to families living in remote areas. These community-based ECD and parenting centers will be established to support young children's leaming and parents' roles. The centers will be expanded in a phased and targeted manner, starting in the poorest and most rural areas. This effort will be supported by research and evaluation to assess the sustainability of these centers and the feasibility of replicating them with broader investments. The initial investment will cover technical assistance and the design and adaptation of educational materials and leaming resources. This component will finance civil works, equipment, training and technical assistance. - 42 - Annex 3: Estimated Project Costs JORDAN: Education Reform for Knowledge Economy I Program , 'T,4; , ,. 1 ,1- ˘ , ,- >, ,S,-o i LocaW- .",,"Foreign ' Total X ' s- P t '. .ArojectCost,ByComponent., i' < ' ,US $million . O,S S$rii Ion' I _i____,___ Reform governance and administration 2.20 9.40 11.60 Realign education program 63.30 38.00 101.30 Provide quality physical learning environment 164.10 46.30 210.40 Promote learning readiness through ECE 12.30 5.10 17.40 Total Baseline Cost 241.90 98.80 340.70 Physical Contingencies 16.00 0.00 16.00 Price Contingencies 12.10 0.00 12.10 Total Project Costs' 270.00 98.80 368.80 Front-end fee 1.20 1.20 Total Financing Required 270.00 100.00 370.00 - ~~~~~ ~~" L"c a 1K i F6ieignr "L t. ,Tbt 4 'z. 1Project.Costy Catoy, t US$Siiion US. $million.,r .,,,,JS;$million; Works 160.90 1.10 162.00 Goods 52.90 54.50 107.40 Services 8.10 43.20 51.30 0.00 Operating Costs 1.00 0.00 1.00 Recurrent Costs 19.00 0.00 19.00 Physical Contingencies 16.00 0.00 16.00 Price Contingencies 12.10 0.00 12.10 Total Project Costs 270.00 98.80 368.80 Front-end fee 1.20 1.20 Total Financing Required 270.00 100.00 370.00 The term "Operating Costs" means the incremental operating costs arising under the program on account of local contractual support staff salaries, office supplies, and communications, but excluding salaries of officials of the Borrower's civil service. Identifiable taxes and duties are O (US$m) and the total project rost, net of taxes, is 370 (1US$m) Therefore, the project cost shanng rati is 3243% of total project cost net of taxes. -43 - Annex 4 Cost-Effectiveness Analysis JORDAN: Education Reform for Knowledge Economy I Program Macroeconomic Background Jordan's economic performance has improved since the late 1990s. The economy grew more than 4 percent during 2000-2002 (compared to around 1 percent in 1996-1998). However, with a fiscal deficit projected to reach 10 percent in 2003, the economy's capacity for growth remains fragile. More importantly, the recent economic growth has not translated into job creation or poverty reduction. Unemployment and underemployment remain high, and deep pockets of poverty persist. Jordan also faces serious challenges in natural resources management and human resource development. Cost Efficiency of Education Spending Study The recent Cost Efficiency of Education Spending (World Bank, 2002) study indicates that it is imperative that Jordan embarks on cost efficiency measures in order to preserve current achievements in education and to make the development of education financially feasible and sustainable. These measures include increasing the share of non-salary expenditures in the basic education budget and introducing cost saving strategies (including increasing the student:teacher ratio at the primary level; reducing the teacher salary bill; and pursuing a more efficient construction program and rationalization of school size). Jordan will also need to introduce measures to enhance the quality of education delivery and linkages to the labor market over the long run. However, sustainability of these measures will rely on gains that can be generated through improving the efficiency of resources devoted to education. At present, 90 percent of the basic and secondary education recurrent expenditures comprise personnel costs. The basic and secondary education wage bill accounts for 11 percent of total government spending. This has left Jordan with limited resources to devote to improving the quality of education. The current high share of personnel expenditures for basic and secondary education also reflects low intemal efficiency, as measured by the low student:teacher ratio and the high teacher salary. The student:teacher ratio, currently at 21:1, is low by international standards, and declining over time: 39:1 in 1970, 32:1 in 1980 and 25:1 in 1990. Educational Indicators Despite slow economic growth during the 1990s, Jordan has made great strides in improving its education system since reforms started a decade ago. Enrollments in primary and secondary schools have increased significantly (see table 1), as have adult literacy rates. Basic education is compulsory and free in public schools for 6 to 16 year olds. Most students are enrolled in schools run by the MOE (73 percent), followed by UNRWA (12 percent), the private sector (14 percent) and other ministries (1 percent). Basic education within Jordan is divided into elementary (6 years) and preparatory (4 years). To make the indicators internationally comparable, one can think of the first six years as primary and the last four as lower secondary. NER is 96 percent for grades 1 to 6 (primary cycle), 92 percent for grades 1 to 10 (basic cycle) and 78 percent for grades 7 to 12 (lower secondary and secondary). Jordan also does well on gender parity. For example, girls are as well represented as boys in education (see table 2 for gender disaggregated GER). - 44 - Table 1: Gross Enrollment Rates (percent), 1994 - 2000 Education Levels (grades) 1994 1995 1996 1997 1998 1999 2000 Kindergarten (level 1 and 2) 24.87 26.86 28.46 29.14 30.52 33.56 33.86 Primary (1-6) 102.19 101.29 101.47 101.15 101.37 102.05 104.34 Lower Secondary (7-10) 91.45 93.99 94.11 95.29 95.90 95.29 98.02 Secondary (11-12) 68.09 71.54 . 74.04 77.88 78.87 78.91 81.67 Basic (1-10) 98.07 98.50 98.63 98.89 99.27 99.47 101.92 Lower Secondary and 83.98 86.71 87.66 89.72 90.38 89.99 92.70 Secondary (7-12) Source: MOE Table 2: Gender disaggregated Gross Enrollment Rates (percent), 2000 Grade Male Female Total KG1 21.91 19.75 20.86 KG2 49.47 45.22 47.39 1 118.98 116.23 117.62 2 103.33 104.06 103.69 3 100.27 100.89 100.57 4 100.33 102.03 101.15 5 102.12 101.85 101.99 6 101.21 101.28 101.24 7 101.09 106.16 103.57 8 100.37 98.76 99.59 9 96.28 97.37 96.81 10 91.91 91.66 91.79 11 82.83 84.69 83.75 12 7.7.35 81.73 79.48 Source: MOE Repetition and dropout rates from basic and secondary schooling are low in Jordan (see table 3). Students in grades 1 to 4 are automatically promoted to the next level and students in public schools cannot repeat more than two years in the 10-year basic education cycle. There is no statistically significant relation between dropout and repetition or dropout and school-related characteristics. However, family poverty and parental education are found to be significant factors of school dropout (NCHRD, 2002). -45 - Table 3: Repetition and Dropout Rates (percent) in Basic and Secondary Education in Jordan, 1999 Grades Repetition Rate Dropout Rate 1 0.30 0.18 2 0.20 0.16 3 0.17 0.16 4 0.60 0.25 5 1.31 0.39 6 1.35 0.54 7 1.63 0.86 8 1.73 1.25 9 1.60 1.61 10 0.18 1.44 11 0.18 1.15 12 0.88 1.30 Total 1-10 0.83 0.61 Total 11 - 12 0.51 1.22 Source: MOE Jordan has benchmarked its education system in several international exercises. These include mathematics and science achievement tests such as the Third International Mathematics and Science Study (TIMSS) and the World Education Indicators (WEI) program. In the 1999 TIMSS - although not strictly comparable to the IAEP, out of 38 countries, Jordan finished ahead of six other countries in mathematics: Iran, Indonesia, Chile, Philippines, Morocco, South Africa, and ahead of eight in science: Iran, Indonesia, Turkey, Tunisia, Chile, Philippines, Morocco, South Africa. However, if using a control for national income, then Jordan performs as well as would be expected (World Bank, 2002). Rationale for Public Sector I[nvestment Education is a profitable investment in Jordan. Educational attainment is strongly associated with earnings gains (figure 1). On average, individuals with complete basic education earn 31 percent more than those with no education; BA holders earn 70 percent more. Rates of return to schooling are highest at the primary (or elementary), college and university levels (table 4). Figure 1: Earnings Differentials (relative to no education, percent) 100 Post-graduate 80 BA 60 Intermediate diploma 40- Preparatory secondary Elementary 20 Read & wite 0 F-D 7-] ] Level of education Source: Shaban, Abu-Ghaida and AI-Nainat 2001 -46 - Table 4: Rates of Return by Level of Education, 1997 Educational Level Rate of Return (percent) Read and write 9.2 Elementary (or Primary) 12.9 Preparatory (or Lower secondary) 4.9 Secondary 2.8 Vocational 6.0 Community college 9.2 University 11.0 Post-graduate 12.6 Source: Computed from household survey Education contributes to decreasing incidence of poverty. Between 1992 and 1997, the overall incidence of poverty declined from 14.4 to 11.7 percent (Shaban, Abu-Ghaida and Al-Naimat, 2001). By 1997, the incidence of poverty by education level declined, except in households headed by someone with secondary education, where it increased from 4.9 percent to 6.0 percent. Education beyond the preparatory stage reduces the probability of being poor considerably below the national average. Enrollment rates in secondary and higher education are higher for richer groups in Jordan. Increasing the emphasis on access of the poor to good education services is critical if they are to benefit from economic growth and increased job opportunities. The Case for Public Investment in ECE Human capital, equality of opportunity and merit goods rationales for public investment in primary and basic education apply most directly to the child care market (Hollister, Robinson G., 2001). According to human capital arguments, public intervention is required because firms or individuals may under-invest in developing human capital when they do not have good information about the investment, ignore externalities, or are unable to finance the investment. Public investment is also justified to ensure equal access to the opportunity to participate in ECE. Investments concentrated in the years before a child enters school (compared with remedial programs) have high payoff. (Duncan, G.J., 1998). Analysis of existing data suggests that well-targeted ECE programs cost less-and produce more dramatic and lasting results-than education investments at any other level (Van der Gaag, J., 1998). Sufficient evidence is available to affirm that early childcare and education has sizable and persistent positive effects on achievement, grade retention, special education, and high school graduation and socialization. Analysis of data on alumni of early childcare and preschool programs worldwide confirms that health, nutrition, and education interventions early in life significantly improve the educational and economic productivity of disadvantaged children. Early childhood programs also benefit society and are a boon to economies, in both developing and industrialized countries (Myers, R.G. 1995). These positive effects can change the development trajectory of all children and particularly those born into poverty. In fact, KG attendance is a strong determining factor of school performance, more so than any classroom related factors (Fuchs, V., 1994). A growing body of research suggests that the impact of severe disadvantages in early childhood on schooling outcomes cannot be significantly improved through any other alternatives, such as increased resources or remedial programs (Rivkin, S.G., 2001). Thus, ECE -47 - should not be viewed as separate from elementary education. Enrollment in ECE centers in Jordan has been rising in recent years (see table 5). In 2000, with enrollments exceeding 80,000 children, one out of three children aged 4 and 5 years was enrolled in KG; and gross enrollment in KG II (level just before grade 1) was 47 percent. Nearly all KG is currently provided by the private sector (both for profit and not-for-profit). The externalities and high social returns of primary education generated from two additional years of KG clearly make the case for treating KG as a part of primary education. The extent to which the public sector should subsidize KG is dependent upon the balance of public and private financing in primary education. The private share of primary education financing is close to 30 percent. Thus, assuming that KG is a part of primary education, it is plausible to say that in universalizing KG education, there is a case for public finance up to 70 percent of total investment in KG. Table 5: Gross Enrollment Rate (percent) in Kindergarten, 1994 - 2000 Grade 1994 1995 11996 1997 11998 1999 2000 Kindergarten Level 1 16.82 17.61 18.71 18.83 19.75 20.40 20.86 Kindergarten Level 2 32.85 36.60 38.60 39.67 40.62 47.26 47.39 Source: MOE Another aspect of the case for the public financing of KG in Jordan is equity. Despite the progress made over the past several decades and Jordan's recent policy initiatives to enhance early childhood education and development, high-quality ECE services are not available to all. Lower income households have unequal opportunity to ECE, both due to limited supply in the areas where the poor live and due to the relatively high cost of ECE. Overall, the GER in kindergarten varies by average annual income per household. On average, govemorates consisting of more households with higher average annual incomes tend to have slightly higher kindergarten enrollment rates (Young and van der Gaag, 2002). While a rationale for investing in KG exists, it does not necessarily imply that the public sector's role is to provide ECE centers. In fact, GOJ can reach larger numbers of students through providing subsidies to the non-public sector. If the GOJ builds 200 KG classrooms over the next 5 years (each with a capacity of 25 children), Jordan will achieve a GER of 50 percent in KG II at the end of 2008 (a 3 percentage point increase). However, only 12,500 children would have been reached over the next 5 years at an investment cost of US$3m. The annual per student cost (capital and recurrent) would approximate US$375. If, on the other hand, the government complements this construction program with subsidies to NGOs to take up additional students from poor families, then a much larger number of children can be reached faster and possibly at a lower negotiated per student subsidy. If one assumes that the public sector finances 10 percent of incremental growth in ECE each year, over 30,000 children can be reached (achieving a GER of 50 percent in KG II by 2008); if public financing goes up to 15 percent of the incremental growth in ECE enrollment, over 46,000 children can be reached (i.e., GER of 53%) between 2003 and 2008. What should be the value of the subsidy? The maximum value of the subsidy can be set at the annual per student cost of the most efficient way of providing public ECE services, i.e., through constructing two-room extensions in existing schools (see section on Cost Efficiency of ECE interventions below). The annual per student cost (capital and recurrent) would approximate US$365. Any value below this amount would render the subsidy cost effective. The value of the subsidy to the non-public provider can be negotiated. Nevertheless, there is a lack of provision of ECE services for poor families as well as those living in remote and/or rural areas and a subsidy less than or equal to US$365 is not expected to motivate private -48 - providers to locate in some of the most rural and remote areas. Thus, GOJ has sought to target children whose parents cannot afford private ECE services by providing ECE in areas of the country where no private entity would invest, i.e., remote and/or rural low-income areas. Analysis of Alternatives A. Component 3: Improving the Quality of the Physical Learning Environment Inefficient Space Utilization. Recent analysis of enrollment versus capacity at public schools (conducted by the Ministry of Education) indicates that schools are operating below capacity in sixteen directorates and 130,000 surplus seats are available nation-wide. Capacity at a school is determined by using the norm of 1.2m' net area per student in a general classroom. The JBIC observed that costly new facilities are under-used, they have low student:teacher ratios and extremely small class sizes. In many cases this has to do with schools in remote, sparsely populated areas. In other cases, inappropriate design could be the problem. However, while excess capacity exists in many schools, schools are over crowded in nine directorates and over 114,000 children are studying in congested schools. This reflects an issue of planning resulting in inappropriate school size. At present, close to 70 percent of MOE schools enroll less than 400 students (see table 6), the lowest enrollment being three students in a school. The average size of rental schools is 177 students, with the lowest number of students in a school being 14. Table 6: School Size in MOE schools in Jordan, 1999/2000 Number of Students Number of Percent of MOE Per School Schools Schools Less than 100 706 25.2 101 - 200 478 17.0 201 - 400 710 25.3 401 - 600 375 13.4 601 - 800 254 9.1 More than 800 282 10.1 Total 2805 -- Source: NCHRD I. School Size and Unit Costs. The current school size is inefficient and cannot be sustained. The unit cost is determined for three types of schools with differing enrollment capacities: 1,200 students, 720 students and 360 students. Public recurrent costs. The calculation of the public recurrent cost per student year are based on the 1999/2000 aggregate data for government schools. In 2000, public recurrent expenditure incurred on primary and secondary education was US$305m of which US$286m was spent on wages and US$19m was spent on other recurrent expenditures. Total enrollment in government KG, primary and secondary schools was 973,490. These figures imply a unit cost of US$314 per student year. Capital Costs. Capital costs are calculated for three types of schools: School A (capacity of 1,200), School B (capacity of 720) and School C (capacity of 360). Each school is assumed to have a class size of 36 students. Average civil works estimates for the three school types are as follows: School A - 49 - 3,690 mi, School B = 2,650 mi2 and School C = 1,870 mn. At US$203 per m2, the cost of construction is estimated to be US$750,280 for School A, US$538,819 for School B and US$380,223 for School C. The estimates of the amortization costs assume a 25-year lifetime for construction and civil works, a 15-year lifetime for furniture and equipment, a 5-year lifetime for computers and a 10 percent interest rate. As indicated in table 7, the cost per student year is highest at small schools. For the two extreme values shown, the cost per student year is US$534 in a school with a capacity of 360 students and US$419 in a school with a capacity of 1,200 students. Thus, it takes almost 30 percent more resources per student year to educate a student at a school for 360 students than it does at a school for 1,200 students. Note that at present, the average size of a public school in Jordan is below 360 students, indicating the potential for much larger cost savings through school rationalization and possibly amalgamation. While it may not be possible to accommodate 1,200 students in rural schools (where student populations are more scattered), it is a plausible option in overcrowded urban areas. Given that over 80 percent of Jordan's population resides in urban areas, such a scheme will translate into significant cost savings for the government. Table 7: Unit Cost Under Different School Sizes (US$) Unit Cost School Capacity School Capacity 720 School Capacity 1,200 students students 360 students Recurrent Cost 389,712 233,827 116,914 Capital Cost 112,976 88,254 75,281 Total Cost 502,688 322,081 192,195 Per student 419 447 534 II. Financial Implications of School Construction Alternatives Based on the physical facilities needs survey, it has been determined that 45,068 students are studying in unsafe and overcrowded rental buildings, 3,262 in rented annexes to MOE-owned buildings and 11,775 student who would need alternative spaces after being moved from similarly inappropriate and unsafe facilities at double-shift schools. Thus, a total of 60,105 student places need to be provided on the basis of unsafe physical conditions. In addition, the study of space utilization at MOE schools determined that a shortage of 97,260 seats exists in the country. Thus, it could be stated that a need exists to provide facilities for 157,365 students. An analysis of alternative construction policies has been undertaken below to demonstrate efficiency enhancing measures that could be adopted to replace existing poor facilities. The financial implications of pursuing three scenarios are provided. It is assumed that the average new school will have a capacity for 720 students (36 students per classroom). Scenario 1: New School Buildings. If the MOE undertakes a policy of providing learning facilities for a target 157,365 students only through replacement buildings, the investment costs would require JD 111 million to construct the schools (table 8). This would necessitate an annual increase in the general education budget of 9 percent. - 50 - Table 8: Financial Implications of Classroom Construction Alternatives Cost Components New school Better Capacity Better Capacity buildings Utilization and some Utilization, 20 percent new buildings Vertical Extension and some new school buildings Student Spaces Required 157,365 117,836 117,836 Classrooms required 4,371 3,273 3,273 Number of extensions --- 655 Number of replacement schools 219 164 313 Cost of school Construction (US$ m) 156 117 94 Cost of Extension (US$ m) - -- 5 Total Cost of Construction (US$ m) 156 117 99 Scenario 2: Better Capacity Utilization. More efficient space utilization can save costs. There are currently 125,146 excess seats available throughout the country. On the basis of a directorate level analysis, it is reasonable to expect that 54 percent of these seats can be filled up by students currently studying in overcrowded schools. This implies that after enhancing capacity utilization, the need for seats as a result of overcrowding would reduce from 97,260 to 57,731. The aggregate need for student spaces required is thus reduced from 157,365 to 117,836. As indicated in table 8, with close to 60 percent utilization of excess space, Jordan could save US$40m in capital costs of school construction. Scenario 3: Better Capacity Utilization and More Efficient Construction Practices. Another cost saving strategy is the provision of additional classrooms through vertical extensions to existing school buildings. There is evidence that although the foundations in MOE-owned and operated schools are built to accommodate up to 4 floors in urban areas and 3 floors in rural areas, current construction is mostly limited to 3 floors in urban areas (with some exceptions in Amman and Zarqa) and 1 floor in rural areas. At US$141/mr, the capital cost associated with vertical extensions is 44 percent cheaper than the cost of new construction (US$203/m ). The amortized capital cost of constructing and equipping one classroom through vertical extension (for 36 students) is US$27 per student school year (as opposed to US$94 per student school year for a 1,200 student school). Savings can also be generated in recurrent costs as additional administrative and maintenance staff do not have to be hired in the case of an extension to a school building. Therefore, depending on capacity, vertical extensions should be considered as alternatives to constructing new schools. Although it may be feasible for about 30 percent of the MOE enrollments to be placed in extension classrooms to existing school buildings, an estimate of 20 percent can result in cost savings of US$57 m (about 40 percent) over scenario 1. B. Cost-Effectiveness of ECE Interventions Faced with a market failure, the GOJ has decided to provide publicly financed and managed ECE facilities in rural/remote poor areas where the private sector does not provide at present. To determine the most cost-effective method of provision, the unit cost of providing ECE services has been determined under four construction options: (i) one room extension to an existing school; (ii) two room extension to an existing school; (iii) an independent KG unit with one classroom; and (iv) an independent KG unit with 2 classrooms. Each KG classroom is expected to accommodate a maximum of 25 students. Annual recurrent cost. The calculation of the annual recurrent cost per student year is based on the projected need for staff and other operating expenses. - 51 - Capital Costs. The capital costs associated with the four types of units are indicated in table 9. The estimates of the amortization costs assume a 25-year lifetime for construction and civil works, a 15-year lifetime for furniture and equipment, a 5-year lifetime for teaching and learning materials and a 10 percent interest rate. The cost per student year is the lowest with a two room extension to an existing school, followed by a one room extension. Relative to the cost of a two room extension, the per student cost is 60 percent higher in an independent KG unit with 2 classrooms and 120 percent higher in an independent KG unit with 1 classroom. On the basis of these results, the GOJ decided to pursue a policy of providing KG units in disadvantaged areas through the construction of extensions to existing school buildings, rather than through setting up independent KG units. Table 9: Relative Cost Per KG under Alternate Construction Scenarios Cost Component Cost (US$) 1 Room 2 Room 1 Room 2 Room Extension Extension School School Construction 1,185 2,073 3,731 5,011 Furniture & Equipment 739 1,174 1,238 1,679 Teaching and Learning Materials 231 239 237 244 Annual Recurrent Cost 7,224 14,784 14,784 21,924 Cost per unit (annual) 9,379 18,270 19,990 28,858 Cost per student (annual) 375 365 800 577 Fiscal Impact of the Program Jordan has agreed on deficit targets with the IMF and is also constrained by external borrowing ceilings. A series of fiscal impact analyses were conducted to study the extent to which spending plans necessitated by ERfKE I are compatible with the government deficit targets. The agreed ERfKE I program size is US$352m (JD 249m) spread over 5 years. Table 10 presents the projected annual capital spending required to sustain ERfKE I. Capital education spending as a share of budgetary investment has been around 10 percent for several years. Assuming the same share implies annual education capital budget of US$60 m, on average during the life of the program. This implies that additional fiscal space will need to be created to sustain the expenditures required under ERfKE I. The GOJ appreciates this reality. ERfKE I is a top national priority and the GOJ is committed, at the highest levels, to make reallocation decisions in favor of the education sector. Table 10: Proposed Education Spending Under ERfKE I (US$ m) 2003 2004 2005 2006 2007 2008 Capital 17 60 84 81 74 35 Recurrent 0.3 1 2 4 7 4 In 2002, the GOJ launched the Program of Social and Economic Transformation (PSET), which is to be funded either from grants or privatization proceeds. Because PSET is a grant, allocating PSET funds to incur the required education expenditures automatically increases the fiscal space available, thereby reducing the possibility of breaching the fiscal deficit target agreed with the IMF. Assuming all else - 52 - remains the same, a PSET (or other grant) allocation amounting to or exceeding US$11Sm over the life of the program would ensure that the program fits into the budget given the current allocation of budgetary funds for education. However, in the case of limited grant financing available through the PSET or other programs (over and above grants generally received annually and therefore taken into consideration in IMF revenue projections), the GOJ recognizes the need to reallocate resources away from the capital budgets of other sectors so as to ensure that the fiscal deficit target is not breached. Assuming that about US$40m is made available to ERfKYE I through PSET grant financing, increased education spending due to ERfKE I will not increase the budget deficit if the share of education in total investment budget is increased from 10 to 12.5 percent during the life of the program. This 2.5 percent is relatively small, averaging 0.14 percent of nominal GDP each year during the life of the program. Recurrent expenditures associated with the program reach a little over 1 percent of the total investment costs of the program. It is assumed that the number of current net increase in MOE staff (i.e., new staff hired less retirees) will remain about the same as in the past, but that new recruits will be selected on the basis of relevant skills for the knowledge economy, including IT and English language. Recurrent costs equivalent to 15 percent of the capital costs are already integrated in the budget by the authorities in relation to the PSET program. Thus, the greater the amount of PSET allocated to ERfKE I, the lower the likelihood of breaching deficit targets. In the case of limited grant financing, the GOJ is cognizant of the need to reallocate resources away from the recurrent budgets of other sectors. The Government of Jordan is keen on sustaining the expenditure and maintaining the borrowing needed for the program within the macro economic framework prepared in consultations with the IMF. Moreover, the government will maintain the ceiling specified in the public debt law for the year 2001. The GOJ affirms that it remains committed to stay within the external debt ceiling for 2003 and subsequent years, and to make all necessary and possible efforts to reduce its borrowings generally. - 53 - Annex 5: Financial Summary JORDAN: Education Reform for Knowledge Economy I Program 2003 2004 2005 2006 2007 2008 Total Total Financing Required US$m Investment Costs 17 60 84 81 74 36 352 Recurrent Costs 0 1 2 4 7 3 17 Total Program Costs 17 61 86 85 81 39 369 Front-end Fee 1 0 0 0 0 0 1 Total Financing 18 61 86 85 81 40 370 Total Financing Sources US$m Total IBRD 5 20 30 28 27 10 120 Govermnent 13 41 24 22 20 10 130 Others - - 32 35 34 19 120 Total Program Financing 18 61 86 85 81 39 370 Totals may not add up due to rounding. - 54 - Annex 6(A): Procurement Arrangements JORDAN: Education Reform for Knowledge Economy I Program Procurement General. Jordan's public procurement system is highly centralized and defined by a series of regulations issued by the Council of Ministers and managed by the Government Tenders Directorate (GTD) of the Ministry of Public Works and Housing (MOPWH) for civil works and consultants' services, and by the General Supplies Department (GSD) of the Ministry of Finance (MOF) for supplies and equipment. In the central government, procurement regulations specify the responsibilities of ministries. The procurement regulations establish a series of thresholds which determine what level of government authority exists for the procurement of civil works, goods and services. Within each threshold level, the process is under the responsibility of various committees. In addition, Special Tender Committees (STC) are formed for a particular project which is distinguished by its size, source of funding or other characteristics that require special attention. Committees do not make final decisions, but they submit their recommendations to higher level policy officials for ratification. STCs are not restricted to any threshold and are used to expedite implementation of special projects. The GTD was established in 1982 by Law No. 39, and its functions were amended by Law No.71 of 1986. Its functions were expanded to also include the classification and registration of contractors and consultants for works, to audit and analyze the tenders for governmental works and services (from advertisement for tenders to the evaluation of tenders and recommendations of contract award) in support of the government ministries. Ministries, however, are responsible for all procurement activities prior to tendering and after the evaluation of tenders by the GTD. The GTD has created a web site accessible to the public in which it lists all ongoing procurement and tracks the progress through contract award. The GTD also functions as the secretariat to the Central Tenders Committee (CTC) and the Higher Committee for the organization of the construction sector. It has developed unified general conditions of contracts and tender procedures, and issues periodic publications on prices of construction sector materials and works. The GTD indicated to the World Bank appraisal mission that it manages the bidding process (advertising and evaluation of bids) expeditiously in simple cases of procurement such as those planned under the Bank-financed project. The GTD indicated that it is very familiar with World Bank procurement guidelines and procedures, and that it complies with them. The GSD was established under Supplies Regulation No. 32/93. It is headed by a Director appointed by the Minister of Finance. GSD manages a central register of requests from respective ministries, which are transferred to one of its four specialized divisions to prepare bid invitations, documents and specifications, to examine requests and pass them to a Secretariat to issue public notices, and to manage the bid receipt process for the CTC. The CTC opens the bids in public forum, forms appropriate technical committees, maintains minutes of bid openings and keeps track of bid securities. This process, however, is very cumbersome and in the World Bank funded HRDSIL II project, the MOE preferred to establish STCs within the ministry and to follow the procurement process established in the World Bank guidelines and procedures as recorded in Schedule 4 of the Loan Agreement. The procurement of goods and services under ERfKE I will also be managed by a STC at the MOE. A Country Procurement Assessment carried out by the World Bank in 1998-99 identified a considerable number of issues and reconmmended a number of amendments to the procurement regulations and procedures, however, due the political and legal processes required to introduce these amendments, it was agreed during negotiations that it was not possible to be considered under the ERfKE I project. - 55 - However, agreement was reached with the MOE to resubmit for World Bank review the NCB bidding documents used for the implementation of HRDSIL II incorporating the World Bank comments prior to issuing its no objection. World Bank no objection to the NCB documents is a requirement prior to the start of any procurement of works. Recommendations for the World Bank's minimum requirements for prior review and thresholds are given in the sections below. Project Specific. The administration of procurement under the Bank-financed project will be coordinated by the DCU in the MOE. The DCU will work closely with the concerned MOE technical departments in the drafting of Terms of Reference (TOR), Requests for Proposals (RFP) and Bidding Documents (BD). The DCU will assist in the evaluation of consultants' proposals and tenders for goods managed by the MOE. The procurement activities will be managed as follows: o With regard to the procurement of consultants and contractors for civil works, the MOE Directorate for Buildings and International Projects will be responsible for: (i) the preparation of TORs for consultants, advertisements for expressions of interest (EOI), short lists of consultants, and design and bidding documents with the assistance of consultants; (ii) the coordination of the procurement process with the GTD; (iii) the follow-up activities after the GTD's recommendations for contract award; and (iv) the management of execution of contracts including the final acceptance (commissioning) and issuing of final payments. The DCU will provide management support and will be responsible for seeking World Bank no objections at the various stages of procurement as provided for in the project Loan Agreement. o With regard to the procurement of goods, technical assistance and training services, the DCU will work closely with the concerned MOE technical departments and the MOE Directorate for Tenders and Supplies and a Special Tenders Committee for Goods and Services to be established at the MOE. The DCU will be responsible for: (i) drafting the TORs and Bidding Documents with the close participation of the concerned MOE technical departments; (ii) obtaining internal clearances and World Bank's no objections of TORs and Bidding Documents; (iii) coordinating with the MOE Directorate for Tenders and Supplies and the Special Tenders Committee for Goods and Services in the procurement process from advertising to evaluation of tenders and contract award and signing, and processing approved contracts and payments to suppliers; and (iv) coordinating the commissioning (final acceptance) of such contractual obligations. o With regard to reporting on procurement activities, the DCU will be responsible for collecting and consolidating all the information at the concerned MOE departments for reporting on procurement and disbursement activities in accordance with agreed procedures. The DCU will follow up and monitor such planned activities to ensure an expeditious implementation of the project. Use of World Bank Guidelines and Standard Documents. Procurement of works and goods will be carried out in accordance with the Guidelines for Procurement under IBRD Loans and IDA Credits (World Bank, January 1995, Revised January and August 1996, September 1997 and January 1999). World Bank's standard bidding documents (SBD) will be used for the procurement of goods under International Competitive Bidding (ICB). Procurement of works will be in accordance with National Competitive Bidding (NCB) procedures and documents reviewed by and agreed with the World Bank. The World Bank's Standard Bid Evaluation Form-Procurement of Goods or Works (April 1996) will be used to evaluate bids. The procurement of services will be carried out in accordance with the Guidelines for the Selection and Employment of Consultants by World Bank Borrowers (January 1997, revised September 1997, January 1999 and May 2002). The Standard Request for Proposal for the selection of consultants (July 1997, revised April 1998 and July 1999) and the Standard Form of Contracts will be used for contracts above - 56 - and below US$200,000 equivalent as required, short-term assignments and individual consultants. For the selection process of firms, the Sample Form of Evaluation Report for the Selection of Consultants (October 1999) will be used. Advertising. A General Procurement Notice (GPN) will be published in the United Nations Development Business (UNDB) and Gateway, and in at least one newspaper of national circulation. The GPN will provide a description of the project and will list all contracts for goods to be awarded under ICB and for consultancy services estimated at more than US$200,000. The GPN will be updated annually for all outstanding procurement. Specific Procurement Notices (SPN) for ICB contracts will also be published in UNDB and Gateway and in at least one newspaper of national circulation. The SPN will provide a description of required works and goods. For services with an estimated value above US$200,000 equivalent, invitations for EOI will be advertised in UNDB and Gateway and at least one newspaper of national circulation. Invitations for bids for goods and works subject to NCB will be advertised locally. Procurement Capacity and Implementation Arrangements. The MOE with the assistance of consultants prepared a detailed Project Implementation Plan (PIP), a Project Procurement Plan (PPP) and the First-Year Procurement Plan, which will be an integral part of the project Operational Manual (OM). Also, the MOE with the assistance of a consultant drafted the OM which was reviewed and agreed upon with the World Bank during loan negotiations and recorded in the minutes of negotiations. The MOE is in the process of staffing the DCU, and has already hired the DCU director, procurement, financial and communications officers and IT coordinator. The MOE Directorate of Buildings and International Projects is in the process of increasing its professional staff by twelve additional members who will play a key role in the procurement and contract management of civil works and related consultant services. The MOE has substantial experience in the procurement of goods (IT equipment, science lab equipment, school furniture and teaching materials) and services (Technical Assistance and Training), and the MOE Directorate of Tenders and Supplies will benefit from such experience as the staff who participated in the implementation of HRDSEL II continue on board. This Directorate is adequately staffed to manage the procurement workload. The DCU procurement officer has substantial experience in World Bank funded procurement as he held a similar position in the World Bank funded Tourism Project. The MOE, with the assistance of consultants, is already completing the design and bidding documents for 98 replacement schools, and the first batch of three to four schools is scheduled to be ready for tendering by World Bank Board presentation. Thus, the first batch of works contracts will be ready for tendering and award shortly after loan effectiveness. The MOE requested World Bank approval of Advance Contracting and Retroactive Financing for the advance payments to consultancy services contracts to be procured to expedite the design of urgently needed school extensions and, to the extent possible, for the advance payments to works contracts for school replacements and extensions that would be procured prior to loan signing. The total amount estimated for retroactive financing is about US$1,000,000 equivalent (or less than one percent of the loan amount). Works. Civil works will consist of the construction of: (i) replacement schools, each estimated to cost on average US$700,000 equivalent; (ii) rehabilitation of existing schools, each estimated to cost less than US$35,000 equivalent per school; and (iii) extensions to existing schools (classrooms, computer lab rooms, science lab rooms, and kindergarten rooms) each room extension estimated to cost less than US$20,000 equivalent. Contracts for replacement schools will be grouped along geographic boundaries for economies of scale, and it is estimated that such contracts in the aggregate would be on average less than US$3.0 million equivalent. Contracts for school extensions will include all the rooms and any rehabilitation required per school, and schools will be grouped along geographic boundaries to gain from - 57 - economies of scale. However, such contracts, in the aggregate would not exceed US$2.0 million equivalent. Contracts for rehabilitation of existing schools not included in the same contracts for school extensions will be tendered separately. These contracts will be grouped along geographic boundaries, and each contract has been estimated to cost less than US$200,000 equivalent in the aggregate. Works contracts will be procured through NCB procedures to be advertised in at least one newspaper of national circulation. It is estimated that works contracts with an estimated total value of about US$ 6.0 million equivalent (or about 10 percent of the value of all Bank funded contracts) will be subject to prior review by the World Bank. Goods. Bid packages for goods estimated to cost more than US$350,000 equivalent per contract will be procured through ICB procedures. Bid packages below this ceiling will be procured through NCB procedures up to an aggregate amount of US$18.0 million equivalent, and bid packages costing below US$ 100,000 equivalent, up to an aggregate amount of about US$2.0 million equivalent, will be subject to Shopping procedures, based on comparing price quotations obtained from several suppliers, at least three from two different countries or from the same country. National Shopping will be used only where the desired goods are ordinarily available from more than one source in the country at competitive prices. It is estimated that the goods contracts with an aggregate value of about US$47.6 million equivalent (or about 45 percent of the value of all Bank funded contracts) will be subject to prior review by the World Bank. Services. Services contracts include long- and short-term individual consultants and firms for studies and technical assistance, and training centers and organizations for carrying out training and development programs and workshops. The design and supervision of school extensions and replacement schools will generally consist of small size contracts costing less than US$200,000 equivalent, each sparsely located all over the Kingdom. Such designs will be based on simple standards of non-complex works in accordance with the Guidelines for School Buildings established by the MOE. Therefore, the short list of consultants may comprise entirely of national consultants, and the short lists for the various contract packages will be selected from long lists of qualified firms obtained from Expressions of Interest in response to specific procurement notices advertised locally for that purpose. The short list may include intemational consultants who may have expressed interest in participating in the project. The selection of these consultants, because of the simple standard and routine nature of the assignments for which very specific and well defined TORs will be drafted, will be based on the Least-Cost Selection (LCS) method in accordance with the World Bank's Guidelines. For other consulting services for studies and technical assistance, each with estimated contract values above US$200,000 equivalent, the Quality-Cost-Based-Selection (QCBS) method and World Bank's Standard RFP will be used. For services with an estimated contract value of less than US$200,000 equivalent and all specialized consultancies, the Quality-Based selection (QBS) method and a simplified invitation for competitive proposals acceptable to the World Bank will generally be used. For all other services, the Consultants' Qualifications (CQ) method will be used. Single-Source (SS) selection will be used only under exceptional circumstances, with the World Bank's prior concurrence. Auditors will be selected using LCS procedures. For contracts with individual consultants, the Selection of Individual Consultants method according to the World Bank's Guidelines will be used. It is estimated that about US$2.0 million equivalent (or about 25 percent of all Bank funded contracts) will be subject to prior review by the World Bank. - 58 - Procurement methods (Table A) Table A: Project Costs by Procurement Arrangements (US$ million equivalent) : ; -t d , * a ;; ,, tu t'Procurement .Method , ,1E +21, 'Expenditure CategoryICB.'; ,i j NCB . ' - ther , * F Total Cost 1. Works 0.00 151.10 0.00 38.27 189.37 (0.00) (53.00) (0.00) (0.00) (53.00) 2. Goods 69.40 30.60 0.00 7.40 107.40 (47.00) (10.00) (0.00) (0.00) (57.00) 3. Services 0.00 0.00 35.67 16.36 52.03 (included training/workshops) (0.00) (0.00) (7.80) (0.00) (7.80) 4. Miscellaneous 0.00 0.00 1.00 0.00 1.00 (0.00) (0.00) (1.00) (0.00) (1.00) 5. Front-end fee 0.00 0.00 1.20 0.00 1.20 (0.00) (0.00) (1.20) (0.00) (1.20) 6. Recurrent Expenditures 0.00 0.00 0.00 19.00 19.00 (0.00) (0.00) (0.00) (0.00) (0.00) Total 69.40 181.70 37.87 81.03 370.00 (47.00) (63.00) (10.00) (0.00) (120.00) "Figures in parentheses are the amounts to be financed by the Bank Loan. All costs include contingencies. vIncludes civil works and goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ih) re-lending project funds to local government units. - 59 - Table Al: Consultant Selection Arrangements (optional) (US$ million equivalent) Selection Method, '- -Consultant Services e .e. -d. Expenditure Category QCBS QBS SFB LCS CQ Other N.B.F. Totl Cost' A. Firms 1.80 1.03 0.00 6.00 1.30 21.74 8.26 40.13 (1.60) (0.70) (0.00) (4.50) (0.00) (0.00) (0.00) (6.80) B. Individuals 0.00 0.00 0.00 0.00 2.15 1.65 8.10 11.90 (0.00) (0.00) (0.00) (0.00) (0.50) (0.50) (0.00) (1.00) Total 1.80 1.03 0.00 6.00 3.45 23.39 16.36 52.03 (1.60) (0.70) (0.00) (4.50) (0.50) (0.50) (0.00) (7.80) Including contingencies Note: QCBS = Quality- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fixed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants' Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed Figures in parentheses are the amounts to be financed by the Bank Loan. - 60 - Prior review thresholds (Table B) All contracts awarded through ICB, the first two contracts for works, the first two contracts for goods below US$350,000 equivalent and the first two contracts for goods below US$100,000 equivalent will be subject to prior review and approval by the World Bank. For services of consultants financed by the World Bank, all contracts above US$200,000 equivalent, the first two contracts procured by the LCS and the QBS and all single source contracts, all short lists, TORs and cost estimates will be subject to prior review by the World Bank. All other contracts will be subject to post review during supervision missions. The thresholds for procurement methods and prior review are summarized below in table B. Table B: Thresholds for Procurement Methods and Prior Review .~ Contract Value Contracts Subject to I Threshold, Trocurement, Prior Review ;Expenditure Category (US$ thousands) Method- (US$ million) 1. Works US$350,000 ICB All contracts US$200,000 QCBS All contracts Finms Consult public and MOE N/A Design MOE >Ensures local needs Design ublic articiation private sector CoslansMEre being anticipated and takeholders C net > Consult neighboring >Devetops a sense of ommunity(les) ownership >Galvanizes support for project during disruption ca used by construction >Ensures environmental Physical Environment Consider the Impact of MOE N/A Design Consultants MOE factors are considered construcUon and final rio t consiruction product on the following pdo consscon >Builds awareness of > Air quality potential environmental > Water quality hazards and ways of > Waste disposal mitigaUng those hazards l Noise and congeston > Landscape Intrusion Interaction > Electrcity MOE N/A Design Consultants MOE >Prevents . fthdisruption of other > Sewerage isrupton of key services~~~~~~~~~~~~~~~~~~~~~~~~~~~~~rie >Ensures better afety for workers _______ a________________ ___________ ____________ nd neighbors Sodo-economic > Design bypass(es) MOE N/A Design Consultants MOE uring constructon homes/ businesses > Ensures fast track > Postpone projects approach to Phase 1 requiring land acquisiUon nfrastructure Improvements Constructi ublic Pardcipation > Establish public MOE MOE MOE/ Contractor MOE >.Mitigate any potential on ~~~~~holilne' for public dissatisfacton wAth on concems/comments work/progress of work by bout construction and llowing Input ypass issues Build public ownership of project > Ensure site and OE/ >Controlling dust and Air Quality stockpiles of materials ae Construction Contractor Contractor nOE/ msont work ste properly secured Contract nd environs > Ensure proper unioading/ storage of construction materials > On-site mwxng of materials In enclosed or hielded areas > Keep hauling routes ree of dust and regularly leaned > Proper maintenance nd repair of construction machinery Water Quality >Ensure proper drainage Constructon Contractor Contractor MOE/ >Prevent surface fom site Contrct cnsultant and groundwater >Decrease water usage pollution from in construction area onstruction >MInImIze soil exposure ctivilUes me during construction >Minimize chemical usage (lubricants. - 91 - solvents, petroleum products) _ _. a>ste Disposal ns proper and dnspos MOE/ >Ensure cleanliness and aste Disosal tEnsuoren diproper construction Cntractor Contractorcosanfeyfcntrtonie solid waste Contract > Ensure proper handling and disposaUlrecycling of _ ________________ ily waste > When possible, Construction ntracor Contractor OEJ >Decreases Construct Noise and congestion balance timing of work to conbauo uftant Inconvenience to public on prevent high noise Conract and disruption of emission and road on-going economic blockages during peak activibes use hours > Proper equipment maintenance > Enforce speed limits on site and bypass > When possible, use low-noise or noise shielded equipment . > Preserve existing Construct Contractor Contractor MOE/ >Low-cost way of Lndscape Intrusion vegetation wtienever consultant building civic ownership feasible Contract and pride > Implement approprdate ____ ___ ___ ____ ____ ___ andscaping _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Intracio vAh) >Ensure construction Construtio Contractor Contractor MOE/ >Prevents isruption of otler crew Is well briefed on Conract contr nbant dental evcs paeetof otherdirponfke ervkes ~~~axsting sefvkces services >Close supervision of >Ensures better work In areas around safety for workers other existing services and neighbors eslth an Safety >Bnef construction crew Cntuin E onctrMOE/ >Ensures worker nealth and Safety on afety guidelins Contract corsultant safety >Train supervisors to >Builds look for and stop safety Contractor iwareness of and health risks proper safety ________ ___ ___________ _ _________ __ _________ _________ _ __________ neasures Construd Archeoogy > Train crew/supervisors Construdion ontractor Contractor MOE with aciHelps prevent on to gyspot potential Contract Atiquities ciederital destruction of archeological finds Department rreplaceable cultural > In the event of a lentage potential find, lialse with archeology department at Aden University for quick assessment and action oclo-economic > Construct and maintain Construction Contractor Contractor MOE >Minimize social and bypasses Cotateoomic disruption > Conduct as much work Cona caused by construction as possible during low traffic periods to ensure access to homes and businesses -92 - MAP SECTION IBRD 29234 - - 00~~~~~~~~~~~~~~~~~~~~>0 / 1 .S~~~~~~~~~~~~~~~~~~~~~~~~~i'-- ,0i;,0' t' /''- -- --- - ' " 4 330 Ri 330 Lake 101-1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 t r - ---g r ~~TbSerias -"';;; > 3/ /-, - -A, ' Peiru - . D.- . .r ( Adb-,2 JN M H - , ROADS " 25 5 75 MILES .A-- PERENNIL RIR AD EA JM 200 0 25 50 75 10 12 SIEMLESEC'--- TERCITTENTSRAS AND TWADI on tis mp donat mpl, -ntepr fTe ol akGop an -- -- - INTRNAIONL-B UND RIE judgmnt3o telgltauof an tEXRritrySorAnYen rSe nto acceptanc of su- h bnaies/ROA 350 3060 37 3 39I R5Noq JO RDA NECEMER 19 l ~ ~~~~~ ~ ~~ ~ ~~~~~~~~~~~~~~~ NAIOA 25A5P75TILE ) 25 50 5 10 125 MILOETER P-~~ NERENITTEN SRIEAMS AND STRADIS ( This map wos produced by the Map Design Unit of The World Bank -~-~-GOVERNORATE BOUNDARIES |The boundaries, colors, denominotions and onyother information shown )on this map cdo not imply, on the paJrt of The World Bank Group, ony INTERNATIONAL BOUNDARIES j udgment on the legolstatus of any territory, or any endorsement or occeptonce of such boundaries 35° 360 37° 33° ~~~~~~~~~~~~~~~~~~~~~~DECEMBER 1997