Document of The World Bank FOR OFFICIAL USE ONLY RepoTt No. 8395-PH STAFF APPRAISAL REPORT PHILIPPINES SECOND ELEt ENTARY EDUCATION PROJECT May 30, 1990 Population and Human Resources Division Country Department II Asia Regional Office This docment bas a resricted distribtion and may be used by recipients only In the performance of thder oflcial dute. Is contents may not otherwise be disclsetd without World Bank, authozation. . CURRENCY EQUIVALENTS Currency Unit - Philippine Peso (P) US$1 - P 22.80 P 1 = US$0.04 (As of May 1990) FISCAL YEAR January 1 - December 31 ACADEMIC YEAR June - March ACRONYMS ADB - Asian Development Bank BEE - Bureau of Elementary Education BNFE - Bureau of Nonformal Education CEDP - Community Employment Development Program CEM - Center for Educational Measurement CIDA - Canadian International Development Agency COA - ConuLission on Audit DBM - Department of Budget and Management DECS - Department of Education, Culture and Sports DPWH - Department of Public Works and Highways EDPITAF - Educational Development Projects Implementing Task Force INS - Financial and Management Service GOP - Government of the Philippines IMC - Instructional Materials Corporation LACs - Learning Action Cells MIS - Management Information System NCR - National Capital Region NEDA - National Economic Development Authority NETRC - National Educational Testing and Research Center NGOs - Nongovernmental Organizations OECD - Organization for Economic Cooperation and Development OPS - Office of the Planning Service PBET - Professional Board Examination for Teachers PICU - Project Implementation Coordinating Unit PRODED - Program for Decentralized Educational Development RDCs - Regional Development Councils SBP - School Building Program UNESCO - United Nations Educational, Scientific and Cultural Organization FOR OFFICIAL USE ONLY PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Table of Contents Page No. BASIC DATA LOAN AND PROJECT SUMMARY I* BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. ELEMENTARY EDUCATION ... ..... . . . 2 A. Organization and Financing .... . . . . . . . ... . 2 B. Main Issues . . *.... . . . . . . . . . . . . . . . . ... 3 Availability of Physical Inputs . . . . . . . . . . . . . . . 4 Teacher and Administrator Performance . . . . . . . . 5 Social Selectivity in Elementary School Completion . . . 7 Scope of the National Literacy Program . . . . . . .. . . 7 Institutional Capacities in Planning and Management . . . . . 8 Student Performance Assessment . . . . . . . . . . 8 MmnagemsntlInformation System . .... . . . 9 Information Flow and Retrieval . . . . . . . . . . . . . . 9 C. Strategy for Sector Development . . . . . . . . . . . . . 10 Goverrment Priorities and Programs . . . . . . . . . . . . . 10 Bank Experience ant Strategy ................. . 11 III. THE PROJECT . . ...... . . . . . . . . . . . . . .12 A. Origin . . . . . . . . . . . ... . . . . . ... 12 B. Rationale, Objectives and Scope . . . . . . . . . . . . . 12 C. Description . . . . . . . . .. . . . . 14 Increasing the Provision of Educational Infrastructure and Materiale . . . . . . . . . . . . . .. . . 14 School Building Program. . 14 Desks . . . . . . . . . . . . . . . . . . . . . . . . . 15 Instructional Materials .....15 Equipment . . . . . . . . . . . . . . . . . . . . 15 Improving Teacher and Administrator Performance . . . . . . . 16 In-service Training . . . ...... .16 Review of Pre-service Training and Certification . . . . . 16 Expanding Basic Education .... .. . .16 Introduction of Dropout Prevention Measures . . . . . . . . 17 Evaluation of Educational Outcomes . . . . . . . . . . . . 17 Expansion of Literacy Training . . . . . . . . . . . . . . 18 This report is based on the findings of an appraisal mission to the Philippines in October 1989 comprising Messrs./Mmes. Shigeko M. Asher (mission leader), Vasilios Demetriou, Maria Dalupan, Brigitte Duces, Jee-Peng Tan, and consultants Archie Lapointe, Susan Melnick and Alain Mingat. This document ha a strictd distribution and may be used by recipients only in the performance of their offiil dutieL Its contents may not otherwise be diclosed without World Bank authorization. Page No. Strengthening Planning and Management . . . . . . . . . . . . 18 Elementary Student Assessment . . . . . . . . . . . . 2 . 8 Management Information System . . . . . . . . . . . . . . . 18 Planning and Budgeting Methods . . . . .. ... .. . . 1.9 Distribution System for Organizational Informztion . . . . 19 IV. COSTS AND FINANCING . . . . . . . . . . . . . . . . . . . . . . . 20 A. Cost Estimates . . . . . . . . . . . . . . . . . . . . . . . . 20 B. Financing . . . . . . . . . . . . . . . . . . . . . . . . . . 22 V. MANAGEIENTANDIMPLEMENTATION .. *... ............ . 23 A. Organization . . . . . . . . . . . *... . . .. . .. 23 B. Implementation Schedule . . . . . . . . . .. . . . .. . . . . 24 C. Status of Preparation .. .... .............. . 24 D. Procurement . . . . . . . . . . . . . . . . * .*. . . . . . . 24 E. Disbursements . . . . . . . . . . . . . . . . . . . . . . . . 26 F. Accounts and Auditing . . . . . . . . . . . . . . . . . . . . 28 G. Monitoring, Evaluation and Bank Supervision . . . . . . . . . 28 VI. BENEFITS AND RISKS . . . . . . . . . . . . . . . . . . . . . . . 29 VII. AGREEMENTS RUCHEDANDH ANCOD RCTIOV.T . . . . . . . . . . . . . . 29 TEXT TABLES Table 4.1: Summary of Project Costs by Component . . . . . . 20 Table 4.2s Summary of Project Costs by Category of Expenditure 21 Table 4.3: Financial Plan . . . . . . . . . . . . . . . . . . 22 Table 5.1: List of Implementing Agencies by Project Activity 23 Table 5.2: Project Expenditures by Procurement Method . . . . 25 Table 5.3: Disbursement Categories . . . . . . . . . . . . . 27 ANNEXES Annex 1: Basic Features of the Education Sector . . . . . . . 31 Annex 2: Classrooms and Desk Requirements for Year 1990 . . . 35 Annex 3: Projection Methods for Classrooms, Desks and Books . 36 Annex 4s Project Processing and Implementation Schedule . . . 40 Annex 5: Action Plan .*.9.9.9.. 99........ .*99 9 * .... ...... 41 Annex 6s The School Building Program . . . . . . . . . ... 56 Annex 7: Project Cost Tables . . . . . . . ... . . .. . . .. 62 Annex 8: Procurement Responsibilities of Implementing Agencies 65 Annex 9: Project Implementation Coordinating Unit Responsibilities . . . . . . . . . . . . . . . . * . 66 Annex 10: Disbursement Schedule and Profile . . . . . . . . . 67 Annex 11: Selected Documents Available in the Project File . . 68 MAP IBRD No. 22098 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT BASIC DATA Country Data ! Population 58.3 million Annual Growth (1975-87) 2.5Z Literacy Rate (1980) Maie 842 Female 83X GNP per capita US$590 Population below poverty line 372 Sector Data W -Enrollments------------- Schools Teachers Students Private Participation ('000) ('000) ('000) sector Rates (2) share (2) Gross Net Elementary 33 280 9,800 4 106 84 Secondary 5 99 3,000 40 65 55 Higher 1 57 1,500 85 35 n.a. Nonformal - n.a. 400 21 n.a. - - Public Expenditure on Formal Education as X of GNP 2.8 as 2 of total public expenditure 22.0 Intra-sectoral Distribution (in Z) Elementary 61 Secondary 23 Higher 17 Nonformal <1 91 Data are for 1987 from Social Indicators of Development 1988 (World Bank), except for 1980 literacy rates from the National Census and Statistics Office (Philippines). W Financial data are for 1988 and other data for 1986 from The Philippines--Education Sector Study (World Bank, 1988), except for 1985 participation rates from UNESCO Statistical Yearbook 1988. 9 Includes only courses sponsored by the Department of Education, Culture and Sports. PRILIPPINES SECOND ELEMENTARY EDUCATION PROJECT LOAN AND PROJECT SUMARY Borrower: Republic of the Philippines Amount: US$200 million equivalent Terms: Repayable over 20 years, including five years of grace, at the standard variable interest rate. Proiect Description: The Philippines launched a ten-year Program for Comprehensive Elementary Education Development in 1981, which was implemented with World Bank assistance through a first elementary education project completed in 1988. The proposed project would constitute a second phase of further improving equity, efficiency and quality in elementary education through support to the 1990-92 subsector investment program and action plan of the Department of Education, Culture and Sports (DECS). The project would finance civil works, furniture, equipment, instructional materials, expert services and training with the objective of providing essential physical resources equitably, improving the effectiveness of teachers and administrators, increasing basic learning of targeted groups, and strengthening institutional capacities for planning and management. Specifically, the project would: (a) provide and improve the distribution of classrooms, desks, textbooks and equipment; (b) institutionalize in-service teacher and administrator training and carry out studies of pre-service teacher training to provide the analytical basis for policy planning and investment; (c) introduce measures to prevent elementary school dropout on a pilot basis, study factors affecting student attendance, achievement and retention, and expand the DECS literacy training program; and (d) introduce annual assessment of elementary student performance, develop an integrated management information system for the sector, improve the maintenance and dissemination of DECS operational information, and strengthen DECS data and methods for planning and budgeting. Benefits and Risks: The project would improve the quality of the national elementary education program and enhance learning at the primary level. It would also promote equity and support the Government's poverty alleviation efforts bys (a) using budgetary allocation criteria which target the distribution of educational resources to disadvantaged areas; (b) laying the groundwork for reducing dropout from elementary schooling among children of poor families; and (c) expanding literacy training to the out-of- school youth and adults who lack functional literacy. In addition, the development of student assessment capacities at - ii - the elementary level would provide a basis for improved sector- wide monitoring and evaluation, ad improvements in the DECS information system would result in more efficient and effective sector planning and management. The main risk is delayed project implementation due to inadequate budgetary allocations to the subsector and changes in the project management organizatio2al structure and staffing. To minimize this risk, the Bank has confirmed that sufficient funds have been appropriated to meet the 1990 project costs; joint annual reviews of project performance and budget allocation requirements would be held; and organizational and staffing arrangements as agreed with the Bank would be maintained throughout the project period. Estimated Costs: Local Foreign Total -----US$ million----- Infrastructure and materials 250.6 88.7 339.3 School buildings 203.7 50.9 254.6 Desks 26.8 4.7 31.6 Textbooks 19.8 30.2 49.9 Equipment 0.3 2.9 3.2 Teacher/administrator performance 4.3 0.8 5.0 In-service staff training 4.1 0.7 4.8 Teacher training reviews 0.2 0.0 0.2 Basic education 4.2 0.7 4.9 Dropout interventions 0.2 0.0 0.3 Educational outcomes evaluation 0.2 0.0 0.3 Literacy training 3.7 0.7 4.4 Planning and management 2.0 1.0 3.0 Student assessment 0.8 0.5 1.3 Information system 0.5 0.4 0.9 Management studies 0.1 0.0 0.2 Information distribution system 0.6 0.1 0.7 Project management 0.1 0.0 0.2 Total Baseline Costs 261.2 91.3 352.5 Physical contingencies 8.1 2.8 11.0 Price contingencies 38.4 8.1 46.5 Total Proiect Cost # 307.7 102.3 410.0 I Includes an estimated US$44.8 million equivalent in identifiable duties and taxes. - ħu. - Financint Plan, Local Foreian Total ------US million ------- Oovegnment 200.0 10.0 210.0 Isak 107.7 92.3 200.0 Total 307.7 102.3 410.0 Estimated Disbursement, Bank FY 1991 1992 1993 1994 -----------. US$ million ----------- Annual 74.8 75.2 42.0 8.0 Cumulative 74.8 150.0 192.0 200.0 Rate of Returns Not Applicable PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT I. BACKGROUND 1.1 Compared to most developing countries, the educational system of the Philippines developed relatively early and serves a large proportion of its population with extensive private sector participation. By 1965 gross enrollment rates at the elementary level had reached 1002 and current rates at the secondary and higher levels are 65Z and 352, respectively. Reflecting a unique public-private division of responsibility in education, government schools account for 952 of elementary enrollments and the private sector enrolls 402 of secondary and over 8OZ of higher education students. Theze is also exceptionally high representation of women throughout the system, with female enrollments exceeding those of males in secondary and higher education. 1.2 The system's high enrollment rates and the widespread participation of women and the private sector are notable achievements. However, the quality of education has been seriously compromised by rapid expansion and underfinancing. The education sector received as much as one-third of the national budget in the 1960s, but subsequent government expenditures for education dropped steadily, falling from 2.82 of GNP in 1970 to 1.52 in 1983. Besides a shift in priorities away from education during this period, he country's slow economic growth and a rapidly increasing population contributed to the decline. While the population grew at an average annual rate of about 2.52 between 1965 and 1985, real annual GNP growth averaged 2.32. Education programs suffered particularly in the early to mid-1980s vhen the Government's adjustment program called for constrained demand. The resulting cuts in capital investments as well as in recurrent expenditures for compensation, supervision and other non-salary items further weakened the quality of instruction. 1.3 Since 1986, the Government has introduced a series of measures to revitalize the educational system. Education is once again receiving a large share of the national budget--222 in 1988 which was equivalent to 2.82 of GNP. Salaries for public school teachers, which had declined sharply in real terms in previous years. have been increased by over 5OZ, bringing average salaries relative to per capita GNP more in line with those for Asia, Latin America and the OECD countries. Additional salary increases are forthcoming as part of a Government-wide standardization scheme to be implemented over the next few years. A constitutional provision for free secondary education has been implemented through the nationalization of formerly local public schools and the elimination of fees in public schools. At the same time, the Government has undertaken to protect the private sector. It has expanded the service contracting program in which private schools enroll students who cannot be accommodated by the public sector, increased funding for scholarships directed to students attending private universities and colleges, and approved subsidies for students in private secondary schools. All these developments pose new challenges. Although the Government clearly attaches a high priority to education, future budgetary increases are likely to be more restrained in view of constraints on the overall budget and -2- competing claims of other sectors. The reality of such resource constraints makes it more important to decide on priorities for sector development and strategies for more efficient delivery of education services. 1.4 In 1988, the Bank conducted a sector review to identify ways to improve quality, equity and efficiency in the educational system without unduly increasing the fiscal burden on the Government. Rate of return analysis in the resulting Sector Reportil found investment in education to be as profitable as investment in physical capital, and public investment in education to be efficiently allocated among the three levels of education. At the same time, however, the system is characterized by serious internal inefficiencies reflected in low survival rates and levels of student achievement, particularly among students from low-income households. The Sector Report determined that such adverse social selectivity originates in elementary education and, therefore, efforts to reduce social inequities in the system as a whole would need to focus on improving survival at the elementary level. Similarly, as the products of elementary schools determine the quality of entrants into subsequent educational levels and into the work force, sector-wide development rests strongly on the improved provision of basic education services. 1.5 Elementary education has been the focus of a ten-year development program (1981-90) of the Government which aimed to raise quality, improve efficiency and reduce disparities in educational provision. This program was impl.miented with Bank assistance through a sector project in elementary educat4on (Loan 2030-PH) which closed in 1988. Known as the Program for Decentralized Educational Development (PRODED), the project introduced revised policies for financing and management, developed a new curriculum with improved instructional materials, and created a structure for the in-service training of teachers and school administrators. The Sector Report recognized the accomplishments of PRODED and, in so doing, identified both the areas on which further development could be anchored as well as continuing weaknesses that need to be addressed. II. ELEMENTARY EDUCATION A. Organization and Financing 2.1 The Department of Education, Culture and Sports (DECS) is responsible for the administratior. and supervision of the overall educational system, the basic features of which are described in Annex 1. Line authority extends from DECS central office through 14 DECS regional offices to 127 provincial and city school divisions, down to 2,046 district offices which oversee an average of 15 public elementary schools each. The elementary education subsector presently serves an estimated 10 million students and employs 300,000 teachers (over 80X of whom are female) in more than 30,000 schools. V The Philippines: Education Sector Study (in two parts), World Bank Report No. 7473-PH, December 1988. 2.2 A major accomplishment of PRODED was the expansion of institutional capacities of the DECS operating units involved in elementary education. Routine responsibilities for planning, management and program implementation for the subsector lie with the regional offices in line with decentralization efforts to improve responsiveness to local needs. Regional planning units, created under PRODED, prepare medium-term plans, annual programs and related budget requests for the regions. Regular activities of these units include the collection, compilation and analysis of educational data and the provision of advisory services to subregional authorities. The coordination of regional plans and the preparation of national plans and budgets for education are the responsibilities of the Office of the Planning Service (OPS) and the Financial and Management Service (FMS) in the DECS central office. OPS maintains the DECS management information system based on regional statistics, and provides assistance to the regions in sector planning. Assistance to the regions is also provided in the implementation of sector policies and procedures by the Bureau of Elementary Education (BEE), which is responsible for formulating guidelines and standards for the curriculum, instructional materials, physical facilities and staff development. Elementary Education Divisions in the regional offices monitor the implementation of sector policies and programs in accordance with BEE criteria and standards, and provide related assistance to provincial and district authorities. School supervision is carried out by district supervisors with the assistance of division-level subject supervisors. 2.3 The financing of elementary education is borne mainly by the Central Government which directs most of its public resources towards this level of schooling, reflecting a pattern of subsidization that accords well with considerations of externalities and contributes to a high degree of structural equity in the system. In 1988, 602 of the national education budget was allocated to elementary education, compared to 232 and 172 for secondary and higher education, respectively. Nonetheless, recurrent expenditures per elementary education student have suffered due to budget constraints and the rapid expansion of the system. Between 1970 and 1980, when enrollments at the three levels increased by 202, 74Z and 90o, respectively, at the same time that the share of education in the total budget was declining, unit costs at the elementary level decreased by one-third in real terms. PRODED investments helped maintain unit spending at about 62 of per capita GNP in the early 1980s, and raised the share of spending for non-salary items. Due mainly to increases in teachers' salaries since 1986, recurrent costs per student are estimated to have further grown to 8-9Z of per capita GNP, comparable to the 102 average for Asia. In view of the Government's increased fiscal obligations in secondary education (para. 1.3), however, general appropriations for elementary education have been growing more slowly--an average of 22S annually during 1984-88 compared with 43Z for secondary education. B. Main Issues 2.4 The analytical work in the Sector Report and the implementation experience of PRODED (paras. 1.4, 1.5) revealed the following outstanding issues in the elementary education subsector: (a) the physical inputs necessary for teaching and learning remain inadequate; (b) schooling effectiveness is limited by weaknesses in teachers' subject mastery and pedagogical skills and by the lack of strong professional support from school - 4 - administrators and supervisors; (c) serious inefficiencies and inequities exist in the system due to the high dropout rate at the elementary level; (d) related to the dropout issue, some six million out-of-school youth and adults lack lunctional literacy skills with an additional half million joining their ranks each year; and (e) subsector as well as sector planning and management are hampered by inadequacies in the DECS systems of information, and monitoring and evaluation. Availability of Physical Inputs 2.5 The provision of adequate physical resources, in both quantitative and qualitative terms, remains a major task for the Government, to ensure quality education as well as to provide increased learning opportunities. Under PRODED, targets were set to reduce backlogs, meet enrollment increases and replace unsuitable infrastructure and materials. While considerable progress has been made in the supply of physical inputs, shortages and problems of uneven distribution persist, particularly of classrooms and desks (Annex 2). 2.6 Under PRODED, an average of about 7,300 classrooms were built annually from 1982 to 1988, but their overall stock is still short of need by about 82. Some regions suffer from more serious shortfalls, as high as 252 in the National Capital Region (NCR) and Region XII. Nonetheless, the backlog of new classroom requirements was reduced from 12U of total stock in 1978 and DECS is increasingly programming more resources for the rehabilitation and replacement of temporary or damaged classrooms, the construction of multi-purpose workshops for science, practical arts and related subjects in the intermediate grades, and since 1986, in response to health and sanitation concerns, the construction of toilet facilities. At the same time, to prevent damage to school buildings from natural calamities such as typhoons and floods, DECS is continuing its cooperative efforts with the UNESCO Asia Regional Office in Bangkok to improve building design. DECS has also increased funding for maintenance in recognition of the long-term savings to be gained from regular upkeep of school infrastructure. Between 1984 and 1988, for example, the share of maintenance of facilities rose from 5? to 24Z of non-salary recurrent costs for elementary education. 2.7 The DECS elementary School Building Program (SBP) is implemented by the Department of Public Works and Highways (DPWH) in coordination with DECS, the Department of Budget and Management (DBM) and Regional Development Councils (EDCs). Within the national budget ceiling set by DBM, DECS and DPWH determine regional allocations on the basis of a formula which takes into account physical need and poverty Incidence to allow more resources to be directed to less advantaged areas (Atnnex 3'. Following similar criteria, RDCs allocate the regional budget to provincial and city unitsY and select the SBP recipient schools therein. In the past, implementation of the annual school building program was delayed by slow budget approvals and releases caused in part by complex fund transfer procedures from DECS to DPWH. In 1989, DEM began releasing SBP funds directly to the DPWH regional offices which, combined with a Government decision to ,elease infrastructure funds in the first quarter of the year, has greatly improved DPWH performance. V These correspond roughly to DECS divisions or to DPWH districts. - 5 - As of August 1989, 932 of the year's program had already been completed, compared to less than 302 at the same time in preceding years. 2.8 The shortage of school desks is more serious than that of classrooms. Only 602 of desk needs has been met nationwide, and the shortfalls in Regions XII, IX, VII and NCR are greater than 50X. PRODED funded the provision of desks only to 1,100 of the most disadvantaged schools (about 32 of the total number of public elementary schools). About 600,000 more desks were produced in 1986-87 under the Community Employment and Development Program (CEDP), a local employment generation project. Since CEDP, however, almost no elementary school desks have been procured because the funds budgeted for their provision have been diverted to other activities such as the implementation of free secondary education. Funding requirements for desks are incorporated into the regional budget's maintenance and operating expenditures under the general category of supplies and materials. As such, the budget for desks is vulnerable to cuts when funding for non- programmed items is sought. 2.9 A notable achievement in improving the availability of physical resources has been the reduction of the national student-textbook ratio from 10:1 in 1975 to 2:1 in 1987, towards a Government target of a 1:1 ratio by 1992. Since the mid-1970s, over 100 million textbooks, teacher guides and other instructional materials have been produced, and a distribution system consisting of one national and 152 provincial warehouses has been organized. Two Bank projects were involved not only in the production and distribution aspects, but also in the establishment of institutional arrangements for instructional materials development. PRODED set up the Instructional Materials Corporation (IMC), replacing the former Textbook Agency which had itself been developed under the Third Education Project (Loan 1224T-PH). 2.10 In 1987 and 1988, IMC produced 23 million and 21 million books, respectively, compared to an annual output of about 9 million in the early 1980s. This vastly improved performance has been attributed primarily to the reduction in contract approval time from 6-14 months prior to 1987 to an average of 4 weeks following Government actions to streamline the contract review and approval processes. However, while production capacity has increased, there is a need to ensure that books reach the schools from the provincial warehouses. Funding for elementary school books has been included in the DECS regional operations budget since 1988, with the provision that 96? of these funds be released directly to IMC for book production and distribution to the provincial warehouses. The remaining 42 is released to the regions to finance local freight and handling expenses in transporting the books from the provincial warehouses to schools. Responsibility for delivery of books to the individual schools lies with the division superintendents, but there is no clear provision for transferring the funds for local distribution from the regions to the division offices. Teacher and Administrator Performance 2.11 Despite a surplus of teachers with the required Bachelor of Education degrees, studies have found levels of subject matter mastery and pedagogical skill among elementary school teachers generally inadequate. In-service training, the key to upgrading and maintaining teacher competencies, had tended to be provided on an ad hoc basis rather than as a regular program of professional teacher development. Under PRODED's staff development component, short-term training packages were developed and formally delivered to all elementary school teachers, school administrators. district and subject area supervisors. Course materials prepared under a previous technical assistance project (Loan S008-PH) were utilized in addition to new BEE materials aimed at imparting subject matter knowledge and school and classroom management and supervisory skills. The need to provide training to school administrators and supervisors was recognized based on extensive research showing the critical role the school principal plays in creating an environment that promotes high standards of teaching and learning, as well as the importance of strong, professional support services for both teachers and school administrators. As a mechanism for continuous staff development efforts, Learning Action Cells (LACs) were organized. The LACs at the school level are teacher training sessions managed by principals on a monthly basis with material and supervisory support from the district, division and regional offices. The LACs system is also utilized at the division and regional levels for school administrator and supervisor training. Under PRODED, the LACs appeared to be an effective and viable in-service training strategy. Since funding responsibility was transferred from the project to the regional offices in 1989, however, efforts are needed to ensure sustained support for the LACs system. 2.12 While in-service training is essential to upgrade skills in the current teaching force, long-term improvements in the quality of teachers requires strengthening of pre-service education. The continuing need to retrain teachers in basic content and pedagogy suggests that these skills are not effectively developed in their pre-service training. DECS has tried to improve the qualifications of students entering teacher training degree courses by raising the National College Entrance Examination cut-off score for admission from the 25th percentile rank in 1974 to the 65th percentile in 1988, and the recent increases in teacher salaries have resulted in a tripling of applications to these programs. However, there is no regular review mechanism for the assessment of teacher training programs and currently only one-fifth of the more than 300 teacher training colleges are accredited. Studies have also criticized the quality and relevance of the pre-service curriculum but they have not provided the empirical basis for substantive curricular reform. 2.13 Weaknesses in pre-service education are exacerbated by an ineffective system of teacher certification through the Professional Board Examination for Teachers (PBET). Pass rates on PBET are low (30Z between 1978 and 1985) and reportedly declining further. PBET presumes to assess the professional competencies of teachers and satisfactory performance on the examination entitles them to permanent tenure. Although PBET is potentially a useful instrument for providing feedback to colleges on the performance of their graduates and for increasing institutional accountability, there has been no analysis on whether the examination is in fact a valid measure of teaching competence and teacher quality. DECS has not been able to respond systematically to these issues due in part to a fragmented management structure for teacher training and the absence of a system for routine data compilation and policy analysis. Social Selectivity in Elementary School Completion 2.14 About one-third of public school students who enter grade one fail to complete the six-year elementary school cycle. The high dropout rate is directly related to low internal efficiency, increasing the cost per graduate, and affects external efficiency as well. The Sector Report showed marked gaps in the returns to complete and incomplete cycles of elementary education: respectively, 18? and 7? for private, and 12? and 4? for social rates of return. The dropout problem is also a serious equity issue, with students from lower-income households disproportionately represented among elementary school dropouts. Among students from families with an annual household income exceeding P 30,000, 892 complete elementary education, compared to 57? for students whose families' annual household income i.s less than P 10,000. Using another indicator of socio-economic status, only 8? of students with college-educated fathers leave school without completing the cycle, while 81? of students whose fathers have no education drop out of elementary school. Social selectivity in elementary school completion is of major concern because inequities generated at this level are transmitted to the higher levels of schooling and carried into society at large. 2.15 Both socio-economic and school-related factors influence the decision to drop out. Poor children may leave school because of the opportunity costs related to outside employment or work at home, of the indirect costs to their families of school-related expenses, or of health and nutrition problems. Although dropping out is often regarded solely as a poverty problem, school factors in themselves and their interaction with family background affect the closely related educational outcomes of student attendance, achievement and retention. Global statistics show that most dropouts are students who have failed in school, which suggests that improving the educational success rate of students may be more important in reducing dropout than is currently assumed. Analysis in the Sector Report showed a positive effect of school quality on retention--children in better quality schools had a higher probability of completion even when background factors were held constant. Since children in low-income areas are more likely to attend poor quality schools, it would be important to target improvements to these disadvantaged schools. An effective intervention program would require more information and in-depth analysis to determine which characteristics of the school and schooling process cause students to drop out, and an incremental approach to designing the interventions that respond to these specific causes. Scope of the National Literacy Program 2.16 Dropouts from basic education and individuals who never start formal schooling create an out-of-school population predisposed to a future of functional illiteracy, thereby affecting their employability and productivity. Although 1980 UNESCO statistics showed the Philippines as one of only five countries in the Asia-Pacific Region to have achieved literacy rates of over 80? for both males and females, it is currently estimated that almost six million people over 10 years of age do not have basic literacy skills. This group is being swollen each year by the nearly 5? of elementary school-aged children who do not go to school and by that fraction of every elementary school cohort that drops out before attaining functional literacy. Even assuming some improvement in cohort survival, enrollment projections - 8 - suggest that by the year 2000, about 7.5 million more dropouts will likely be added to the existing number of functional illiterates. Clearly, the long-term solution lies in ensuring universal access to and improving the efficiency of elementary schooling. Nevertheless, a sizable task remains if the Government is to meet the needs of those for whom formal schooling is not presently an option. 2.17 The Bureau of Nonformal Education (BNFE) in DECS is the agency mandated to plan and implement the Government's literacy campaign, which has the stated goal of eradicating illiteracy by the year 2000. With the Nonformal Education Divisions in each regional office, BNFE organizes basic literacy classes and integrates functional literacy training into livelihood skills development courses for out-of-school youth and adults. In 1986, BNFE also adopted a special literacy project, 'Magbassa Kitaw ('Let Us Read'), using the phonosyllabic method of first-level literacy training which was found to reduce the amount of time needed to develop basic literacy skills. 'Magbassa Kital was pioneered by a Muslim women's association to provide literacy training and subsequently productive activities for illiterate women in the southern Philippines. Women continue to account for over 60? of the participants in these and other nonformal courses. In 1988, some 7,300 literacy classes were organized throughout the country with total enrollments of about 160,000. This level of effort, already increased from previous years, is too small to achieve universal literacy by the year 2000. Implementation and expansion efforts for both 'Magbassa Rita' and the regular literacy classes have been constrained largely by lack of funding. The 1989 DECS budget included a new line item for regional operations in nonformal education (covering both literacy and livelihood skills training), and allocation guidelines were drafted to take into account regional variations in literacy rates. Institutional Capacities in Planning and Management 2.18 Further development of the planning and management capabilities of the DECS agencies involved in elementary education is hampered by the absence of clear administrative arrangements for sector monitoring and evaluation based on regular assessments of student performance, and by continuing weaknesses and inefficiencies in the DECS management information system. 2.19 Student Performance Assessment. DECS does not presently have a system to generate nationally representative data on student achievement routinely and in a timely manner. This capacity for sustainable system-wide monitoring and evaluation is essential for determining the quality and effectiveness of schools and providing such information to those in a position to improve educational practice. Since the 1970s, several national surveys of elementary student achievement have been conducted within the context of specific projects, but the lack of comparable sampling designs and assessment instruments has not allowed monitoring of the performance of the system as a whole or comparisons across regions and other relevant categories over time. Achievement testing for a variety of purposes has been undertaken by various DECS offices including the Curriculum Evaluation Division of the BEE, the Research and Evaluation Division of OPS, the National Educational Testing and Research Center (NETRC) and the regional offices, among others, but there has been no clear assignment of functional responsibility for the - 9 - type of nationally coordinated, regular program of student assessment required for an effective monitoring and evaluation system. 2.20 Management Information System. Previous efforts to improve the DECS management information system (MIS) simplified school data collection forms and procedures and installed a computer-based MIS which has reduced data processing time. In view of the enormous amount of information routinely processed and stored by DECS, however, computer technology is not as effectively used as it could be to facilitate the conduct of DECS planning and budgeting activities. The mainframe IBM computer purchased in 1987 is utilized only by FMS for payroll functions. All other data are kept in small, unrelated spreadsheet files which cannot draw on each other for analyzing or even aggregating basic data. Identical data often have to be entered into several databases to serve different user needs, which increases the risk of data entry errors and impedes validation checks. As DECS central office has no electronic communication links with its local offices, information processed at the regional levels is submitted to DECS on floppy disks or computer printouts; in the latter case the data has to be re- entered at the central level. Due to the lack of equipment and trained personnel in the divisions, no data are processed at this level and divisions must rely on the regional offices for their information needs. Because of the large amount of time devoted to data entry and because the report preparation facilities of conventional database packages are cumbersome and complex, the DECS annual Statistical Bulletin contains only raw statistics for the current year, and the information and analysis required by DECS for planning and management cannot be provided in a timely manner. 2.21 Certain weaknesses in data quality also derive from technical issues related to the methods currently utilized to forecast enrollments and budget requirements. Inaccuracies in enrollment projections arise because the census-derived demographic data are not updated frequently enough, and due to inconsistent projection methods used at different DECS administrative levels. In the preparation of budget proposals, unit costs per student are based on macro calculations across the country, and are neither validated by micro methods nor take into account cost differences across geographic areas. Related to the problem of estimating financial requirements, education inflation estimates are currently based on national economic indices, such as the GNP Implicit Price Deflator or the Consumer Price Index, which are not particularly suited to the goods and services associated with the provision of education. 2.22 Information Flow and Retrieval. Current documentation of DECS policies and procedures for planning and management do not facilitate the efficient flow or retrieval of updated information. When sectoral planning and budgeting procedures change in line with efforts to decentralize decision-making, new or revised procedures are communicated in a stream of notices that staff often cannot assimilate. The guidelines on school staffing, for example, are found in numerous Department orders, memoranda, implementing rules and regulations, circulars and inter-departmental communications, with no indication of which provisions have been superseded or how to resolve inconsistencies among the documents. The dissemination of information from DECS central office relies on regional directors and division superintendents distributing copies of communications as they are issued, with maintenance of such information kept largely in chronological - 10 - files. Current indexing procedures do not immediately lead users to the latest communication nor do they provide cross-references across time and information sources. In the early 19808, DECS produced a draft Omnibus Service Manual which contains both administrative and technical information, but this has not been finalized and, given its book form and variety of topics covered, does not address the issue of how to disseminate information more efficiently. C. Strategy for Sector Development Government Priorities and Programs 2.23 Recent sector developments noted earlier (para. 1.3) demonstrate the high priority the present Government attaches to human resource development through education. Human resource development is a cornerstone of the 1987-92 Philippine development plan, central to achieving the country's primary goals of sustainable economic growth, employment generation and the alleviation of poverty. In support of these overall development goals, the education sector identified in its medium-term plan two main objectives: to increase access to quality education, and to accelerate the formation of needed middle- and high-level technical skills. 2.24 In pursuit of the goal to expand access to quality education and training, the Government is emphasizing efforts to increase participation, survival and achievement in elementary education, full implementation of free secondary education, and the provision of functional literacy and livelihood skills through nonformal alternatives. The Government recognizes that elementary education should continue to receive budgetary priority because effective basic education enables the majority of the population to contribute to and benefit from economic and social development, and is the foundation for a strong education and training network accessible to all segments of the population. Equity improvement in the educational system, with consequent long-term implications for poverty alleviation, will be pursued by targeting investment expenditures towards the more disadvantaged areas. At the same time, the Government is preparing to more adequately meet the country's requirements for critical middle-level technical skills and high-level scientific and technological capabilities to enhance productivity and competitiveness. Toward these ends, the Government plans to strengthen the national vocational and technical training system through, among others, more effective linkages with industry, and to develop quality science and engineering programs in colleges and universities, also in close coordination with industry as well as with specialized research and development institutions. 2.25 The Government's human resource development programs have elicited considerable donor interest and support, particularly in recent years, but assistance to the sector from United Nations agencies and bilateral institutions consists mostly of small programs. The World Bank and the Asian Development Bank (ADB) have been, and are likely to remain, the major funding sources for larger investment projects. ADB is currently financing the DECS development program in general secondary education with grant cofinancing from the Canadian International Development Agency (CIDA) for textbook paper, and a comprehensive review of nonformal education focussing on resource mobilization and the development of an institutional framework for - 11 - coordination among government agencies and nongovernmental organizations (tGQ0) involved in nonformal piograms. Bank Experience and Strategy 2.26 The Bank has supported eight education projects in the Philippines since 1965 with a total commitment of US$232 million. Five projects aimed to develop middle- and higher-level vocational and technical education and training, and three projects supported basic education improvement. 2.27 The First, Second and Fourth Education Projects (respectively, Loans 392-PH, 1964; Credit 349-PH, 1972; and Loan 1374-PH, 1977) assisted in the development of agricultural education by providing facilities and equipment to agricultural colleges and secondary schools, and training college faculty, agricultural extension workers and farmers. To strengthen technical and managerial expertise and research in fisheries education, the Sixth Education Project (Loan 1786-PH, 1979) established a university-based national center and a network of regional fishery technology institutes and fishermen training centers. Technician and industrial training were also supported under the Second Education Project with the establishment of ten regional training centers and the expansion and improvement of eight technical institutes and science teaching centers. The infrastructure of the national industrial training system has been strengthened under the ongoing Vocational Training Project (Loan 2200-PH, 1982) through the restructuring of the National Manpower and Youth Council, the institution of a system of contracting for training in seven priority industrial and service sectors, and the expansion of trade testing and certification. The three projects which focussed on basic education were the Third Education Project (Loan 1224T-PH, 1976) which addressed a severe textbook shortage in elementary and secondary education; the Mass Media Pilot Project (Loan S008-PH, 1978) which supported experimentation in educational radio for classroom use and in-service teacher training; and PRODED, the first Elementary Education Project (Loan 2030-PH, 1981). 2.28 Lessons learned from the Bank's experience were identified from Project Performance Audit Reports prepared by the Bank's Operations Evaluation Department for the first five projects-1 and the Project Completion Reports drafted for the Fisheries and First Elementary Education Projects. Important lessons that cut across sectors relate to implementation and corresponding disbursement delays that have been due mainly to protracted procurement processes and complex budget release and payment procedures. These issues are being addressed by, among others, efforts to streamline procedures for procurement, consultant selection and release of budgetary allocations. Recent Government actions to eliminate the ceilings for both bidded infrastructure contracts and non-infrastructure contracts requiring approval of the Department Secretary, as well as the decision taken to release funds for infrastructure projects in the first quarter of the year are expected to facilitate project implementation, as evidenced by DECS's much improved record in its school building and textbook programs (paras. Y Board Document Nos. SecM75-560, SecM82-898, SecM86-781 and SecM86-885 for the First to Fourth Education Projects, respectively, and No. SecM84-283 (pass-through PCR) for the Mass Media Pilot Project. - 12 - 2.7, 2.10). In the preparation of the proposed project, key lessons learned from the first elementary education were also specifically addressed, including: (a) the problem of textbook distribution from field warehouses to schools due to the lack of accountability and end-user involvement; (b) the need to earmark funds for important items such as desks, which have been lumped into a general category for supplies and materials, making these vulnerable to cuts when funding for non-programmed items is sought; (c) the need for timely transmission of reimbursement documents from the regions to the project management unit; (d) the need for a system to routinely generate nationally representative data on student achievement to allow reliable monitoring and evaluation of sector performance as an essential aspect of planning and policy formulation; and (e) the critical importance of a clearly established project management structure staffed with qualified personnel. 2.29 The Bank's operational program in education over the medium term would continue to support both the provision of basic education as the necessary foundation of human resource development, and the formation of the technical skills and managerial expertise needed in a rapidly changing world. Bank assistance rests on a strategy of identifying projects that would increase efficiency and equity in the educational system. In this respect, the Sector Report identified two priorities: maintaining the share of budgetary allocations for elementary education while reducing elementary school dropout; and rationalizing higher education through, among others, greater use of public funds to finance programs with relatively high social benefits and acceptable administrative costs. The proposed project has been developed to pursue the first priority. III. THE PROJECT A. Origin 3.1 The proposed project was identified in November 1988 during a review of the Education Sector Report with the Government of the Philippines (GOP). Further discussions in February and June 1989 led to the detailed design of the project, described in a proposal prepared with the assistance of the Bank. The project was appraised in October 1989. B. Rationale, Objectives and Scope 3.2 As noted earlier (para. 2.4), the Bank has identified the areas of persistent problems in the subsector through its involvement in sector work and the first Elementary Education project. The proposed project would enable the Bank to continue its technical and financial support that would enable the Government to address outstanding issues. Bank involvement would also support poverty alleviation by targeting educational resources to depressed localities and children at a high risk of failure and dropout, which is a priority need in the Philippines. 3.3 The objective of the project would be to increase equity, efficiency and quality in elementary education through assistance to the DECS investment program and action plan in the subsector for GOP fiscal years 1990-92. This would be pursued through short- and longer-term measures which aim to: (a) meet the subsector's requirements for essential physical resources, with - 13 - an emphasis on improving their distribution to educationally and economically disadvantaged areas; (b) improve the professional competence of teachers and school administrators; (c) expand the population with basic knowledge and skills, with efforts targeted to children at risk of dropping out of school and to illiterate out-of-school youth and adults; and td) further develop DECS institutional capacities in planning and management of the elementary education subsector as well as of the sector as a whole. 3.4 In support of these objectives and measures, the proposed project would include the following components: (a) Increasina the provision of educational infrastructure and materials through: ti) construction, replacement and rehabilitation of classrooms, multi-purpose workshops and toilet facilities; (ii) production of school desks; (iii)printing and distribution of textbooks, teacher guides and other instructional materials; (iv) acquisition of small equipment and instructional aids. (b) Improving teacher and administrator performance through: ti) in-service training of teachers, principals and supervisors, to improve teaching abilities as well as school and classroom management; and (ii) reviews of the quality of pre-service teacher training programs, the relevance of the Professional Board Examination for Teachers, and the adequacy of institutional arrangements for planning teacher training, to lead to the formulation of policy recommendations and investment needs. (c) Expanding basic education throught Ci) introduction of three dropout prevention measures on a pilot basis in schools selected from the poorest municipalities in six regions, to test their effectiveness in improving the holding power of schools catering to low-income students; Cii) evaluation of the relative cost-effectiveness of alternative measures to prevent dropout, including those to be introduced under the project, to lead to the design of a wider-scale dropout intervention program; and (iii)expansion of the DECS literacy training program, to provide basic education services to the population for whom formal schooling is not an option. - 14 - (d) Strengthening planning and management throughs ti) introduction of an annual assessment program of elementary student performance at the National Educational Testing and Research Center, to routinely provide achievement data essential for effective monitoring and evaluation; (ii) development of an integrated system of data processing, storage and retrieval, to improve the quality, timeliness and accessibility of information required for educational planning and management and to initiate decentralization of information management to the divisions; (iii)reviews of planning and budgeting methods to project enrollments, calculate unit costs and estimate inflation, to improve the quality of the data used in preparing DECS targets and resource requirements; and (iv) development of a system for the maintenance and distribution of organizational information, to improve efficiency in the dissemination and utilization of information on DECS policies and operations. 3.5 Understandings between the Bank and the Government have been reached on an investment program and implementation schedule for the educational infrastructure and materials component (Annex 4) as well as on the plan of action for the other project components which sets out key implementation steps and monitorable indicators (Annex 5). The terms of reference for studies under the project have also been reviewed and agreed upon. The Bank has confirmed that adequate funds have been appropriated that would enable DECS to carry out the project activities for 1990. Assurances have also been obtained that annual reviews of project implementation would be held jointly by the Government and the Bank to coincide with DECS preparation of its annual work and financial plans and budget proposals, i.e., around March or April each year. C. Description Increasing the Provision of Educational Infrastructure and Materials (Proposed outlay of US$394.8 million)V 3.6 To meet the elementary school system's requirements for physical inputs important for educational quality and to reduce regional and subregional imbalances in resource availability (paras. 2.5-2.10), the project would support the increased provision and improved distribution of: (a) classrooms, multipurpose workshops and toilets; (b) desks; (c) textbooks, teacher guides and other instructional materials; and (d) equipment. 3.7 School Building Program. The project would support the DECS elementary school building program, which would include: (a) construction of about 26,500 new classrooms to reduce the existing backlog and meet Y This and subsequent statements represent totals including contingencies. - 15 - enrollment expansion requirements; (b) the replacement of about 9,800 severely dilapidated classrooms; (c) the rehabilitation of about 36,400 damaged classr,oms; (d) construction of about 4,300 new workshops; te) rehabilitation of about 5,100 damaged workshops; and (f) construction of about 2,800 toilets. The DECS Bureau of Elementary Education would be responsible for setting design standards, DPWH district offices for engineering and construction work, and local school building committees chaired by governors or mayors and co-chaired by school superintendents for school locations and satisfactory building completion (Annex 6). The budget for the school building program would be allocated to the regions and divisions based on physical need and incidence of poverty, and the selection of program recipients would follow guidelines issued by DECS (Annex 3). To strengthen monitoring of the school building program, each DPWH district office would submit copies to DECS central office of its monthly progress reports on both physical and financial accomplishments of the school building program at the provincial level. The DPWH has also authorized its district offices to send the necessary reimbursement documents for school building construction directly to DECS central office, with copies to DPWH central and regional offices, in order to expedite disbursements for civil works. 3.8 Desks. The project would support the production of about 1.5 million elementary school desks to reduce the severe backlog caused by the virtual suspension of the desk program over the last two years. The budget for elementary school desks has been separated from the general category of supplies and materials in order to help assure budget availability for the adequate provision of the required quantities of desks. To strengthen the monitoring of desk production, monthly progress reports would be submitted by DECS regional offices to the central office. 3.9 Instructional Materials. The project would support the development, production and distribution of about 47 million instructional materials, comprising 44 million textbooks, 146,000 teacher guides and 2.8 million reference materials and charts. The textbook production targets are based on the Government decision to improve the student-textbook ratio from the current 2:1 to 1:1 by 1992. The project would also improve IMC's data system for planning, budgeting and monitoring of its activities, including verification of deliveries and needs. Toward this end, schools would be informed about the quantities and delivery schedules of specific book titles they have been programmed to receive. In order to help ensure timely distribution, the Government has provided assurances that a minimum amount equivalent to 4Z of the book production cost would be set aside by DECS in order to cover the cost of the transportation of books to schools by the DECS division offices. 3.10 Equipment. The project would support the provision of equipment and instructional aids (e.g., globes, maps, science and math kits) to steadily build up their stock in elementary schools. DECS regional offices would be responsible for allocating their fixed equipment budgets to divisions following guidelines and criteria issued by DECS and for preparing annual equipment procurement plans. Equipment procurement would be monitored quarterly with reports detailing actual receipt by schools. - 16 - improving Teacher and Administrator Performance (Proposed outlay of US$5.8 million) 3.11 As teacher and administrator performance is an important element in raising the quality of elementary education (paras. 2.11-2.13), the project would support: (a) in-service training of school teachers, principals and supervisory staff; and (b) reviews of pre-service education, teacher certification, and institutional arrangements for planning and policy formulation for teacher training. 3.12 In-service Training. To improve subject matter competency and pedagogical skills among elementary school teachers, as well as the management and supervisory skills of educational administrators, the project would support the ongoing process of institutionalizing the Learning Action Cells (LACs) system developed under PRODED as the vehicle for continuing professional staff development. The project would support the development and production of training modules at the regional level and in-school training of all elementary school teachers. The school LACs would meet two hours per month for the training sessions, with teachers expected to devote an additional two hours in preparation for the sessions. The school LACs activities would be supervised and monitored by the staff development officers in the district, division and regional offices. Training sessions would also be organized for principals, district supervisors and subject area supervisors for regular updating of skills relevant to each of their functions. 3.13 Review of Pre-service Training and Certification. As a longer-term strategy to improve teacher performance, the project would provide the analytical basis for reforms in pre-service teacher education and certification and thereby upgrade the quality of new teachers entering the profession. To this end, three studies would be conducted to examine: (a) the quality and relevance of selected pre-service elementary teacher training programs; (b) the validity of the Professional Board Examination for Teachers as a mechanism for determining teachers' qualification for civil service eligibility and permanent tenure of office; and (c) the adequacy of institutional arrangements for planning and policy formulation for teacher training. These studies are expected to yield recommendations in a number of areas, including standards for program evaluation, guidelines for the consolidation or phasing out of poor quality programs, revised procedures for certifying beginning teachers, and requirements for setting up a database and institutional forum for planning and monitoring, and to formulate investment needs and costs. The project would finance all costs related to the conduct of the studies, including 36 staff-months of local expert services. Expanding Basic Education (Proposed outlay of US$5.7 million) 3.14 To reach children at risk of leaving school prematurely and the out-of-school population lacking functional literacy skills (paras. 2.14- 2.17), the project would: (a) introduce selected dropout prevention measures on a pilot basis; (b) evaluate school and non-school factors affecting student achievement and survival; and (c) expand the DECS literacy training program. - 17 - 3.15 Introduction of Dropout Prevention Measures. Building on the findings of research conducted under PRODED, the project would introduce three dropout prevention measures in elementary schools selected from the poorest municipalities in six regions of the country (Regions IV, V, VI, VIII, XII and the Cordillera Administrative Region). These interventions would bet (a) the provision of multi-level materials, which are programmed learning modules developed and tested under PRODED as supplementary instructional materials to meet different learning needs in the classroom. Proper utilization of these materials requires teaching practices which have positive effects on achievement including regular diagnostic testing to determine the need for remedial instruction or reinforcement, and small group instruction among students working on the same modules; (b) a school feeding program with parental participation. The program would serve daily breakfasts and include integrated nutrition education for both parents and students; and (c) a nonformal summer pre-school program with NGO involvement, beginning in the second year of project implementation. The program would focus on school readiness skills for students entering first grade in the target communities. NGOs with experience in running similar programs would assist in developing the program structure, content and appropriate materials, and in training teachers. The implementation of these measures would be monitored and their effects evaluated as part of the study of educational outcomes proposed below (para. 3.16). The project would finance the production of learning materiala required for the interventions, food supply and preparation, workshops, training and honoraria for teachers, principals and other implementors, and about 14 staff-months of local expert services. The 24 pilot schools where the dropout prevention measures would be introduced in the first project year have been selected according to agreed criteria. 3.16 Evaluation of Educational Outcomes. With a view to recommending implementation of additional dropout prevention measures, the project would support a study to determine the relative effects of school and non-school factors on the interrelated educational outcomes of student attendance, achievement and retention. The study would analyze the relationships of home, school and community conditions to educational outcomes, and generate a factual basis for evaluating the cost-effectiveness of targeted measures designed to prevent dropout, including the interventions to be implemented under this project (para. 3.15). Under the study, a school-based survey would be conducted in school year 1990191 to obtain data on schooling conditions and student background characteristics, achievement tests would be administered at the beginning and end of the school year, and student attendance would be recorded throughout the year and into the start of the following school year to distinguish between dropping out within the school year as opposed to between grades. The project would finance the development and reproduction of survey instruments, implementation of the survey, and 48 staff-months of local expert services for study desiga and data analysis. - 18 - 3.17 Expansion of Literacy Trainina. To provide increased learning opportunities for functionally illiterate out-of-school youth and adults, the project would assist the expansion of literacy programs funded through the BNFE and the Nonformal Education Divisions of DECS regional offices (para. 2.17). The following activities would be supported: (a) the design and development of learning materials; (b) translation, adaptation and reproduction of materials by the regions; (c) training of literacy teachers; (d) organization and conduct of literacy classes; (e) monitoring and evaluation of the classes; and (f) post-literacy activities including the establishment or maintenance of community reading centers and the provision of neo-literacy materials. The implementation of DECS budget allocation guidelines for nonformal education field operations would also be monitored to help ensure targeting of appropriate programs to regions with the lowest literacy rates. Strengthening Planning and Management (Proposed outlay of US$3.5 million) 3.18 To expand DECS capabilities to plan and manage the elementary education suhsector and the sector as a whole (paras. 2.18-2.22), the project would support activities to: (a) introduce an annual assessment program of elementary student achievement; (b) further improve the DECS management information system; (c) conduct studies to address methodological issues in enrollment and financial projections; and (d) create a system for more efficient dissemination and maintenance of DECS organizational information. 3.19 Elementary Student Assessment. To provide feedback on schooling effectiveness to decision-makers, teachers, students, parents and the general public, the project would institute a national system of elementary student assessment at the National Educatioral Testing and Research Center (NETRC). she national assessment would produce annual information on the performance of students in selected grades (2, 4. 6) and subjects (languages, math, science, social studies), on home and school characteristics that relate to educational performance, and, in the long run, on sector performance over time. The assessment would allow for comparisons by geographical area, socio-economic status, gender, type of community, type of school, and other characteristics which would help address important issues of resource distribution. The results of the assessment would be disseminated through the publication of subject reports for DECS management and the lay public, summary reports and booklets describing annual assessment objectives to be distributed to school principals and teachers, and technical reports and other publications to serve research and policy analysis purposes. Two committees would be created to advise NETRC--a national advisory committee on policy matters and a technical advisory committee on overall design and implementation. All instruments for the national assessment would be developed with the assistance of the Center for Educational Measurement (CEH). The project would finance computer equipment and software, 180 staff-months of local training, and a total of 198 staff-months of expert services (180 local, 18 foreign) in such areas as psychometrics, computerized item banking and test administration. 3.20 Manarement Information System. To improve the quality, timeliness and accessibility of information required for educational planning and management, the project would develop an integrated system of data processing, storage and retrieval, and initiate the decentralization of data - 19 - processing and information management to the divisions. Based on a detailed plan addressing user requirements throughout the DECS bureaucracy, the project would support the integration of the currently fragmented databases into a more efficient information storage and retrieval system built around DECS mainframe computer and an appropriate database management software. After the basic system is set up, on-line interactive access would be provided for DECS central office units, followed by two-way links between the central office and the regional offices of Regions I, IV, VII and IX by 1992. Processing of MIS data would be implemented in all divisions of Region VII by 1992. The project would finance computer equipment and software, installation and maintenance of the central network and regional electronic links, about 170 staff-months of local expert services, and about 70 staff- months of local training. 3.21 Planning and Budgeting Methods. To improve the quality of the data used in preparing DECS planning targets and budget requirements, the project would support three studies to review the methods currently applied to enrollment projections, unit cost calculations and budget inflation estimates. The studies would recommend a standardized enrollment projection methodology for use by all offices concerned, appropriate methods to estimate the costs per student for different categories (including regions, and types and levels of education), and inflation indices appropriate to the education sector. The results of the studies would be disseminated through training workshops for DECS planning, budgeting and data management personnel at all administrative levels. Pertinent information and instructions would be documented in the relevant service manuals proposed below (para. 3.22). The project would finance 29 staff-months of local expert services, the printing and distribution of reports, and the conduct of related seminars and workshops. 3.22 Distribution System for Organizational Information. To improve efficiency in the flow, assembly and retrieval of information on DECS policies and operations, the project would support the development of a system to disseminate information in an organized manner over time. The distribution system would be based on an overall, long-term policy document produced in book form, a series of service manuals consisting of loose-leaf modules that would be updated whenever necessary, and a comprehensive index. To develop such a system, the project would undertake an inventory of existing information, a survey of user information needs and an analysis of the longevity of specific information items. A set of procedural manuals would then be prepared for key DECS operational areas, such as planning and budgeting or MIS reporting requirements, and procedures would be specified for distributing each manual to the appropriate user groups. The draft Omnibus Service Manual (para. 2.22) would be reviewed and used as the basis for the new modular service manuals wherein all relevant information would be consolidated, removing inconsistencies, documenting streamlined procedures aimed at promoting greater efficiency in DECS operations, and detailing the responsibilities and accountability of all DECS offices and personnel. The project would finance 15 staff-months of local expert services, production of the policy document, service manuals and index, and workshops to explain the system to all concerned office and school staff. - 20 - IV. COSTS AND FINANCING A. Cost Estimates 4.1 Summary of Prolect Costs. The total project cost is estimated at P 9.3 billion or US$410 million equivalent, including contingencies and taxes. A summary of costs by project component is given in Table 4.1 and by category of expenditure in Table 4.2. Cost breakdowns by component, category of expenditure and project year are provided in Annex 7. Table 4.1: SUMMARY OF PROJECT COSTS BY COMPONENT % %Total Local Foreign Total Local Foreign Total Foreign Base Project Component - -Pesos million- -- --- US$ million----- Exchange Cost Infrastructure and materials School buildings 4,644.3 1,161.1 5,805.4 203.7 50.9 2 4.6 20.0 72.2 Desks 612.0 108.0 720.0 26.8 4.7 31.6 15.0 9.0 Textbooks 450.5 688.1 1,138.6 19.8 30.2 49.9 60.4 14.2 School equipment 7.3 65.7 73.0 0.3 2.9 3.2 90.0 0.9 Sub-total 5.714.1 2.022.9 7.737.0 250.6 88.7 339.3 26.1 96.3 Teacher/administrator perf. In-service training 93.2 16.4 109.7 4.1 0.7 4.8 15.0 1.4 Teacher training reviews 4.3 0.8 5.0 0.2 0.0 0.2 15.0 0.1 Sub-total 97.5 17.2 114.7 4.3 0.8 5.0 15.0 1.4 Basic education Dropout prevention 5.2 0.9 6.1 0.2 0.0 0.3 15.0 0.1 Educational outcomes eval. 5.2 0.9 6.1 0.2 0.0 0.3 15.0 0.1 Literacy training 84.7 14.9 99.6 3.7 0.7 4.4 15.0 1.2 Sub-total 95.0 16.8 111.8 4.2 0.7 4.9 15.0 1.4 Planning and management Student assessment 17.7 11.1 28.8 0.8 0.5 1.3 38.6 0.4 Information system 11.1 9.7 20.8 0.5 0.4 0.9 46.6 0.3 Management studies 3.0 0.5 3.5 0.1 0.0 0.2 15.0 0.0 Information distribution 13.4 2.4 15.8 0.6 0.1 0.7 15.0 0.2 Sub-total 45.2 23.7 68.9 2.0 1.0 3.0 34.4 0.9 Project management 3.4 0.6 4.0 0.1 0.0 0.2 15.0 0.0 Total Baseline Costs 5.955.2 2.081.2 8.036.4 261.2 91.3 352.5 25.9 100.0 Contingencies Physical contingencies 185.8 64.9 250.7 8.1 2.8 11.0 25.9 3.1 Price contingencies 874.5 185.5 1,060.0 38.4 8.1 46.5 17.5 13.2 Total ProJect Cost SW 7,015.5 2.331.6 9.347.2 307.7 102.3 410.0 24.9 116.3 !/ Includes US$44.8 million in identifiable duties and taxes. The totals in this and other tables may not be exact due to rounding. - 21 - Table 4.2: SUMHARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE Local Foreign Total Local Foreign Total % Total Expenditure Category Pesos million ----- - USS mil lion----- Base Cost Civil works 4,646.3 1,161.6 5,807.9 203.8 50.9 254.7 72.3 Desks 612.0 108.0 720.0 26.8 4.7 31.6 9.0 Textbook printingldistrib. 259.9 45.9 305.8 11.4 2.0 13.4 3.8 Textbook paper 189.8 635.3 825.0 8.3 27.9 36.2 10.3 Local training 147.8 26.1 173.9 6.5 1.1 7.6 2.2 Miscellaneous 77.2 13.6 90.8 3.4 0.6 4.0 1.1 Equipment 9.5 85.8 95.3 0.4 3.8 4.2 1.2 Local experts 12.2 2.1 14.3 0.5 0.1 0.6 0.2 Foreign experts 0.5 2.8 3.3 0.0 0.1 0.1 0.0 Total Baseline Costs 5.955.2 2.081.2 8.036.4 261.2 91.3 352.5 1Q2.0 Contingencies Physical Contingencies 185.8 64.9 250.7 8.1 2.8 11.0 3.1 Price Contingencies 874.5 185.5 1,060.0 38.4 8.1 46.5 13.2 Total Project Cost 7.015.5 2,331.6 9.347.2 307.7 102.3 410.0 116.3 4.2 Basis of Cost Estimates. Base costs are estimated at May 1990 prices (date of negotiations). Costs of construction, equipment and instructional materials were estimated on the basis of reviews of information provided by the Government based on recent experiences in procuring similar items. A total of about 390 and 18 staff-months of local and foreign expert services, respectively, would be required under the project. Technical assistance costs were estimated on the basis of recent prices for comparable technical assistance. 4.3 Customs Duties and Taxes. Project costs include an estimated US$44.8 million in indirect taxes on locally procured civil works and goods. A duty of about 232 (US$9.3 million) is expected on imported paper. 4.4 Contingency Allowances. Project costs include a contingency allowance for unforeseen physical additions (US$11 million) and for inflation (US$46.5 million). Physical contingencies were estimated at 3Z of the estimated cost of all project items in view of the programmatic nature of the investment expenditures and shortness of the time slice. Following Bank and country guidelines, price contingencies have been estimated on the basis of the following inflation factors: 4.9S for foreign costs, and 82 for local costs in each of the project years (1990-92). Price contingencies are equivalent to 132 of base costs plus physical contingencies. 4.5 Foreign Exchange Component. The foreign exchange component was estimated as follows: 20Z for civil works; 15Z for desks and classroom furniture; 152 for printing and distribution; 772 for printing paper; 90? for equipment; 152 for local training; 152 for local experts; 852 for foreign experts. Including contingencies, the resulting foreign exchange component is estimated at US$102.3 million, or about 252 of total project costs. - 22 - 4.6 Recurrent and Maintenance Costs. Modest additional recurrent costs would be generated primarily by the need to maintain the classrooms, furniture and equipment procured under the project and by staffing requirements to maintain an expanded literacy training program. Maintenance of elementary school buildings which has been a problem in the past, resulting in the large rehabilitation and replacement program, has improved in recent years as part of PRODED objectives to improve the balance between salary and non-salary expenditures. The share of non-salary expenditures increased from 32 in 1985 to 16? in 1988, and within this category, the portion for facilities maintenance rose from 5? to 24X during the same period. However, to ensure that the trend is not reversed, Bank review missions would closely monitor the adequacy of maintenance. The institutionalization of in-service teacher training and the annual assessment program would utilize existing DECS staff at the central and regional levels, and the information system components are designed mainly to increase efficiency in the use of resources already assigned to these functions. The dropout prevention measures would be implemented on a pilot basis precisely to determine their cost-effectiveness. The total incremental recurrent costs to be generated by the project when it becomes fully operational in 1993 are estimated to be about P 800 million in 1989 prices and would represent 2-3X of the DECS recurrent budget in 1993. B. Financing 4.7 The proposed Bank loan of US$200 million equivalent would finance 49? of total project costs (55? net of taxes and duties). The Government would finance the balance of 51? or US$210 million equivalent, including about US$44.8 million of estimated taxes and duties. Project financing would be in accordance with Table 4.3 below. To permit financing of expenditures associated with school building construction, textbook production and other activities which are mostly carried out during the first six months of each year before school opening in June, retroactive financing of up to US$20 million equivalent would be provided for eligible expenditures incurred prior to loan signing but after January 1, 1990. Table 4.3: FINANCIAL PLAN (Amounts in US$ million, including contingencies) IBRO GOP Total Local Expenditure Category ------------------------------------------------ For. (Excl. Duties Amount I Amount % Amount % Exch. Taxes) & Tax. Civil works 142.7 48 155.0 52 297.7 72.6 57.2 210.8 29.8 Desks 17.4 47 19.6 53 37.0 9.0 5.3 28.0 3.7 Textbook printing/distrib. 7.8 50 7.9 50 15.7 3.8 2.3 11.9 1.6 Textbook paper 28.4 70 12.2 30 40.6 9.9 31.2 0.0 9.3 Local training 0.0 0 8.9 100 8.9 2.2 1.3 7.6 0.0 Miscellaneous 0.0 0 4.6 100 4.6 1.1 0.7 4.0 0.0 Equipment 3.7 80 0.9 20 4.6 1.1 4.1 0.0 0.5 Local experts 0.0 0 0.7 100 0.7 0.2 0.1 0.6 0.0 Foreign experts 0.0 0 0.2 100 0.2 0.0 0.1 0.0 0.0 Total 200.0 49 210.0 51 410.0 100.0 102.3 262.9 44.8 - 23 - V. MANAGEMENT AND IMPLEMENTATION A. OrRanization 5.1 Since the early 1970s, foreign-assisted education projects have been Implemented primarily by the DECS-attached Educational Development Projects Implementing Task Force (EDPITAF). Under PRODED, however, management responsibilities were transferred over the project period from EDPITAF to DECS central and regional offices, which allowed DECS to develop the capability to manage a complex sector investment program dealing with policy reform and institutional development. Given its program support nature, the proposed project would also be managed directly by DECS. Overall responsibility would lie with a Project Advisory Group led by the Secretary of Education, with the Undersecretary for Basic Education as vice-chairman. Day-to-day Implementation of project components would fall to a number of offices as part of their regular line functions as listed in Table 5.1. Responsibilities of the implementing offices with respect to procurement are given in Annex S. Table 5.1: LIST OF IMPLEMENTING AGENCIES BY PROJECT ACTIVITY Activity Agency Office infrastructure and materials - School buildings DPiM - School desks DECS Regional Offices - Textbooks/instructional materials INC - School equipment DECS Regional Offices Teacher/administrator perfoomaece - In-service training DECS Regional Offices - Teacher training reviews DECS Bureau of Higher Education/National Educational Testing and Research Center/Office of the Planning Service Basic education - Dropout prevention measures DECS Bureau of Elementary Education - Educational outcomes evaluation DECS Bureau of Elementary Education - Literacy training DECS Bureau of Nonformal Education Plannina and management - Student assessment DECS National Educational Testing and Research Center - Management information system DECS Office of the Planning Service/ Financial and Management Service - Planning and budgeting studies DECS Office of the Planning Service/ Financial and Management Service - Information distribution system DECS Office of the Planning Service Project manaaement DECS Project Implementation Coordinating Unit - 24 - 5.2 To coordinate the various activities of these offices. DECS has established a Project Implementation Coordinating Unit (PICU) under the Project Advisory Group. PICU is headed by the Assistant Secretary for Planning and Management acting as the Project Coordinator, with four full-time technical staff assigned from DECS-OPS and EDPITAF. It is physically located at the DECS central office and furnished with adequate space and equipment for its operation. The functions of PICU are to: (a) coordinate project implementation and monitor overall progress of project performance; (b) report semesterly to DECS and the Bank on the status of progress; (c) raise issues needing attention; (d) give technical advice to implementing agencies; (e) assist in management of procurement under international competitive bidding procedures; (f) submit withdrawal applications to the Bank and monitor disbursements of the Bank loan; (g) arrange for timely audits of project accounts; and (h) prepare the project completion report. Annex 9 further details the responsibilities of PICU. The Bank has obtained assurances from the Government that the agreed project management organizational structure and staffing would be maintained throughout the project period. B. Implementation Schedule 5.3 The project would be implemented over a three-year period beginning January 1, 1990 and ending December 31, 1992 (Annex 4). The closing date would be December 31, 1993. C. Status of Preparation 5.4 As stated earlier, the Project Advisory Group and the Project Implementing Coordinating Unit have been established, the Project Coordinator selected and the full-time PICU staff from OPS and EDPITAF identified. Agreement has been reached on a physical implementation plan for the subsector investment program, the plan of action for other project components, and the terms of reference for studies. Understandings have also been reached regarding final procurement plans for the first project year. The Government has reported that the 1990 school building and textbook programs would be substantially completed before the opening of the school year in June, and that start-up activities for other project components are proceeding satisfactorily, including the selection of the pilot schools where the dropout prevention measures would be introduced in the first project year. Overall, the proposed project is expected to be implemented in a timely manner because: (a) the majority of project sites are at existing school facilities with adequate space for expansion; (b) the size of civil works has been established in consultation with DPWH, and the UNESCO Asia Regional Office continues to provide technical assistance on building design, construction techniques and maintenance to DECS; and (c) standard lists and specifications exist for the school equipment and teaching aids to be procured under the project. D. Procurement 5.5 For the reasons detailed below (para. 5.6), most procurement under the project would follow local competitive bidding (LCB) procedures acceptable to the Bank. The procurement suitable for international competitive bidding (ICB) would be for paper to be used for textbook - 25 - printing. Tn the comparison of bids to be procured through ICB, domestic manufacturers would be allowed a preferential margin of 152, or the existing customs duty, whichever is lower, over the c.i.f. prices of competing imports. Prudent shopping and limited international bidding (LIB) or direct contracting (for computers, specialized or proprietary items) would also be used as indicated below. 5.6 Procurement arrangements are detailed in Table 5.2. Most civil works would be procured through LCB. Because of the geographical dispersion of works resulting in small contracts ranging from US$2,000 to US$200,000, with more than 702 of the value in contracts below US$15,000, foreign contractors are not likely to be interested in bidding. In addition, works in remote locations where contracting is impractical may be procured through force account, estimated not to exceed US$30 million in aggregate. Desks vould be procured through LCB and, for contracts below US$50,000, through prudent shopping or negotiation with local artisans, estimated not to exceed US$3.8 million in aggregate. Interest from foreign bidders is unlikely due to the Table 5.2: PROJECT EXPENDITURES BY PROCUREMENT METHOD (in US$ million) Procurement method Total cost Category of Expenditure ----------------------------------- including ICB LCB Other NA contingencies Civil works - 267.7 30.0 - 297.7 (128.3) (14.4) (142.7) Desks - 33.2 3.8 - 37.0 (15.6) (1.8) (17.4) Textbook printing - 15.7 - - 15.7 and distribution (7.8) (7.8) Textbook paper 36.5 4.1 - - 40.6 ! (25.6) (2.8) (28.4) Local training - - - 8.9 8.9 () () Miscellaneous - - - 4.6 4.6 () () Equipment - 4.1 0.5 - 4.6 (3.3) (0.4) (3.7) Local experts - - - 0.7 0.7 (-) (-) Foreign experts - - - 0.2 0.2 (-) (-) Totals 36.5 324.8 34.3 14.4 410.0 (25.6) (157.8) (16.6) TT (200.0) DI Of which USS9.3 million are import duties. Note: Figures in parentheses are the amounts to be financed by the Bank. - 26 - decentralized regional procurement arrangements and the modest contract values which, based on past experience, are expected to range from US$3,000 to US$160,000, with more than 50? of the value in contracts below US$50,000. Printing and distribution services for elementary school textbooks would be procured through LCB because of the relatively small value of contracts ranging from US$6,000 to US$190,000 equivalent. Printing paper packages of US$200,000 equivalent or more would be procured under ICB in accordance with the Bank's "Guidelines for Procurement Under IBRD Loans and IDA Credits" (May 1985). Smaller packages would be procured through LCB, not to exceed an aggregate of US$4.1 million equivalent. Equipment would be procured through: (a) LCD for standard instructional equipment items; (b) Prudent Shopping for items not exceeding US$50,000 equivalent for each package, not to exceed an aggregate of US$300,000; and (c) LIB or Direct Contracting procedures for specialized or proprietary computer items, not to exceed an aggregate of Us$200,000. 5.7 Invitations to bid and the proposed award of contracts under ICB would be subject to Dank review. These would comprise mainly printing paper packages of US$200,000 equivalent or more. Procurement proposals under LIB or direct contracting for proprietary items would also be reviewed by the Bank. Contracts below the aforementioned thresholds and other expenditures not covered under contract would be subject to selective post-award reviews. As explained above, because of the small size of contracts for civil works, prior review of civil works would not be feasible. For example, to cover even 50? of the value of civil works, some 1,500 contracts of very low value (US$12,000 each) would need to be reviewed. Similarly for desks, to cover 602 of the value, the threshold for prior review would need to be reduced to US$35,000. For these reasons, it is recommended that thresholds for prior review remain at US$200,000 to cover ICB for printing paper, and special arrangements be made for selective review of civil works and desk contracts during field missions. E. Disbursements 5.8 The proposed loan of US$200 million would be disbursed over a period of four years (Annex 10) up to December 31, 1993, 12 months after the estimated project completion date. The disbursement forecast does not reflect the standard profile of other Bank-assisted education projects in the Asia Region. However, this forecast is justified considering that it represents disbursement in respect of a time-slice of DECS priority program expenditures, which are not significantly larger than those of the last two to three years and for which performance was reasonable. 5.9 The proposed disbursement arrangements reflect the Government's desire to utilize the maximum amount of loan proceeds in the early years in order to protect basic education expenditures from being eroded at a time of Government budgetary adjustments from increased fiscal obligations for recent policy decisions, including public sector salary increases and the provision of free public secondary education (para. 1.3). It is therefore recommended that disbursement be made on a declining percentage basis against the three major categories: civil works, desks, and printing and distribution of textbooks, which constitute 84? of the loan. As indicated in Table 5.3, financing percentages for these categories wou'd change after a certain level of disbursement has taken place rather than by year. - 27 - 5.10 Disbursements for all contracts with a value of at least US$200,000 equivalent each would be supported by full documentation. For civil works and desks contracts below US$200,000 equivalent each and other civil works and desks expenditures not undertaken by contract, statements of expenditures (SOEs) would be used. Because of the size of procurement under SOEs, special efforts would be needed by visiting Bank missions to carry out selective reviews of these SOEs and related documentation in coordination with Loan Department staff. PICU would be responsible for collecting the necessary documentation on eligible expenditures under each sub-project and preparing withdrawal applications for submission to the Bank. To the extent practicable, withdrawal applications would be aggregated in amounts of US$50,000 or more, prior to submission to the Bank. To expedite preparation of withdrawal applications for civil works, DPWH has agreed to forward directly to DECS (PICU) all relevant documentation of expenditures collected at its district offices (para. 3.7). 5.11 Due to the program support nature of the project, a special account is not considered necessary and therefore not recommended. Table 5.3: DISBURSEMENT CATEGiORIES Category Amounts Bank financing percentage Civil works US$138.7 million 48% (of expenditures) W - the first US$51.7 million - 90% - the next US$66.6 million - 70% - the remaining US$20.4 million - 20% Desks USS16.9 million 47% (of expenditures) SY - the first US$5.9 million - 90% - the next US$8.4 million - 70% - the remaining US$2.6 million - 20% Printing/distribution of textbooks US$7.6 million 50% (of expenditures) Vi - the first US$2.2 million - 90% - the next US$4.4 million - 70% - the remaining US$1.0 million - 20% Equipment and printing paper for textbooks USS31.' million 71% (excluding duties) SY - imported - 100% (of c.i.f. costs) - locally manufactured - 100% (of ex-factory cost) - locally procured - 75% (of expenditures) Unallocated US$5.1 million Total US$200.0 million 49% al AW Averages. - 28 - F. Accounts and Auditing 5.12 PICU would maintain separate accounts to reflect expenditures under the project and would be responsible for collecting related documentation from the regions to enable selective review by visiting Bank missions. Project accounts would be audited by the Commission on Audit (COA), which is an independent auditor acceptable to the Bank. As project accounts are audited by resident COA staff at the level of implementation, however, an understanding was reached that the COA representative in DECS central office would consolidate audit reports from all project implementing agencies, including the DECS central and regional offices, the DPWH district offices and the Instructional Materials Corporation. Assurances have been received that the Bank would be provided within nine months of the end of each Government fiscal year a consolidated audit report on project accounts of such scope and detail as the Bank may reasonably request, including a separate opinion by the auditor on disbursements against certified SOEs. G. Monitoring, Evaluation and Bank Supervision 5.13 PICU would be responsible for the overall monitoring and evaluation of the project (para. 5.2). These activities are expected to be improved under the project as the DECS management information system would be strengthened with a number of inputs, including consolidation of its databases and improved communications vith the regional offices through networking and user training (para. 3.20). An understanding has been reached that visiting Bank missions would be provided with the latest status reports on actions taken in accordance with the agreed plan, physical implementation status, and amounts of loan proceeds disbursed and committed. The Government has also provided assurances that the Borrower's contribution to the project completion report would be submitted within six months of the Closing Date. 5.14 Project Supervision. Due to the wide physical and software program coverage and the complexity of the project involving important institutional capacity development, Bank supervision would be staff-intensive, requiring specialists in several areas--educational evaluation, facilities planning, information management, teacher training and student assessment. Also, in view of the large volume of procurement to be documented under SOEs, review of documentation by an accounting/audit specialist or Loan Department staff would be required. In addition to joint annual reviews of DECS work and financial programs and budget proposals for the following year (para. 3.5), the Bank would make regular visits every four to six months to review progress in the implementation of the physical program as well as the plan of action. To assist DECS's newly-created coordinating unit, PICU, with start-up implementation, the Bank plans to hold a workshop during the first supervision mission and discuss in detail Bank procurement and disbursement procedures, progress monitoring and reporting formats, and accounting and procurement recording systems. - 29 - VI. BENEFITS AND RISKS 6.1 Benefits. The project would improve the quality of the national elementary education program and enhance learning at the primary level. It would also promote equity and support the Government's poverty alleviation efforts by: (a) using budgetary allocation criteria which target the distribution of educational resources to disadvantaged areas; (b) laying the groundwork for reducing dropouts from elementary schooling among children of poor families; and (c) expanding literacy training to the out-of-school youth and adults who lack functional literacy. In addition, the development of student assessment capacities at the elementary level would provide a basis for improved sector-wide monitoring and evaluation, and improvements in the DECS information system would result in more efficient and effective sector planning and management. 6.2 Risks. The main risk is delayed project implementation due to inadequate budgetary allocations to the subsector and changes in the project management organizational structure and staffing. To minimize this risk, the Bank has confirmed that sufficient funds have been appropriated to meet the 1990 project costs; joint annual reviews of project performance and budget allocation requirements would be held; and organizational and staffing arrangements as agreed with the Bank would be maintained throughout the project period. 6.3 Impact on Women and the Environment. Given the equal representation of male and female students in elementary education, and girls' lower average rates of failure, repetition and dropout, no special measures are needed to improve access and the performance of females in elementary schools. Raising the overall quality of elementary education and interventions to improve retention at this level would benefit all students. The welfare of low-income women and their families would be improved to the extent that the literacy training component continues to address their specific needs. The proposed project would not have any negative impact on the environment. VII. AGREEMENTS REACHED AND RECOMMENDATION 7.1 Understandings have been reached between the Government and the Bank on: (a) the three-year investment program, action plan by project component, and terms of reference for proposed studies (para. 3.5); (b) monthly progress reports to be submitted to DECS central office by DPWH district offices on the school building program and by DECS regional offices on desk production, and quarterly progress reports by DECS regional offices on school equipment procurement (paras. 3.7, 3.8, 3.10); (c) information on the quantities and delivery schedules of book titles to be provided to schools (para. 3.9); (d) procurement plans for the first project implementation year (para. 5.4); - 30 - (e) the mechanism to consolidate numerous audit reports for timely submission to the Bank (para. 5.12); and (f) the latest status reports to be made available to visiting Bank missions (para. 5.13). 7.2 The Bank has received assurances from the Government that: (a) joint GOP-Bank meetings to review and update the action plan and corresponding budget requirements would be held annually in time for DECS annual work and financial planning and budget proposal reviews, i.e., around March or April of each year (para. 3.5); (b) a minimum amount equivalent to 4? of the book production cost would be set aside by DECS in order to cover the cost of the transportation of books to schools by the DECS division offices (para. 3.9); (c) the agreed project management structure and staffing would be maintained throughout the project period (para. 5.2); (d) a consolidated audit report on project accounts and SOEs by independent auditors acceptable to the Bank would be submitted to the Bank within nine months of the end of each fiscal year (para. 5.12); and (e) the Borrower's contribution to the project completion report would be submitted to the Bank within six months of the Closing Date (para. 5.13). 7.3 Retroactive financing not exceeding US$20 million equivalent would be provided for eligible expenditures incurred before loan signing but after January 1, 1990 (para. 4.7). 7.4 Subject to the provisions in paras. 7.1 to 7.2 above, the proposed project would constitute a suitable basis for a Bank loan of US$200 million equivalent to the Republic of the Philippines for a term of 20 years, including five years of grace, at the Bank's standard variable interest rate. _ 31 - ANNEX 1 Page 1 of 4 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Basic Features of The Education Sector 1. To place the elementary education subsector in sectoral context, this annex describes the basic features of the education sector in terms of its administrative setup, the structure and size of the system, and the magnitudes and patterns of sector spending. Administration 2. The Department of Education, Culture and Sports (DECS) is the executive agency charged with the administration and supersision of the country's educational system. An organizational chart is attached as Figure 1. DECS is headed by a Secretary, who is assisted by four Undersecretaries and the chiefs of five service units, some with the rank of Assistant Secretary. The Office of the Planning Service (OPS) coordinates regional sector planning, and prepares the national plan for education in collaboration with the National Economic Development Authority (NEDA). OPS maintains a comprehensive information system to support its planning functions and the monitoring of sector performance. The Finance and Management Service (FMS) works closely with OPS to draft guidelines for translating the education plan's physical targets into budgetary requirements. EMS has primary responsibility for preparing the budget for DECS central office, for consolidating regional budgets, and for administering DECS expenditures. 3. Bureaus of Elementary, Secondary, Vocational-Technical and Nonformal Education are responsible for policy formulation, program planning and standards development in their respective subsectors. Headed by directors, these bureaus perform essentially staff functions, but have line authority for technical supervision in matters relating to the curriculum, instructional materials, physical facilities and educational evaluation. Higher education policies are set by a Board of Higher Education, with the Bureau of Higher Education serving as its secretariat. The Board is advised by technical panels created for each of the major academic disciplines. 4. Fourteen regional offices are responsible for the formulation of regional educational plans, and for the implementation, management and evaluation of departmental programs within the region. Each office is headed by a Regional Director who reports directly to a DECS Undersecretary. Under the regional offices are 127 provincial and city school divisions, headed by Division Superintendents who report to the Regional Director. Division offices supervise all public secondary and all private schools in the division. Administration and supervision of public elementary schools is the responsibility of the 2,046 district offices, which are headed by a District Supervisors who report to the Division Superintendent. - 32 - ANNEX 1 Page 2 of 4 Structure and Size 5. The formal education system extends from pre-elementary through graduate education. The government is committed to providing free basic education, which consists of six years of elementary and four years of secondary schooling. The preschool programs offered in a small number of schools are privately funded. Post-secondary options include non-degree vocational and technical courses of up to three years, and degree programs requiring at least four years of study, with entry to the latter restricted through a National College Entrance Examination. Graduate education is available in relatively few institutions and disciplines. 6. In 1986, the formal education system comprised 33.000 elementary, 5,400 secondary, and 1,100 higher education institutions, with these subsectors employing about 280,000, 99,000 and 57,000 teachers, respectively. Total enrollments of 14 million included 9 million elementary, 3 million secondary and 1.5 million higher education students, as well as 180,000 enrolled in preschool and 40,000 in graduate programs. These enrollments represent gross participation rates of over 1002 in elementary, 65Z in secondary, and 352 in higher education, much above the 1980 averages for developing countries of 75Z, 232 and 72, respectively. There is exceptionally high representation of women throughout the system, with female enrollments exceeding those of males in secondary and higher education. In addition, over 400,000 attended nonformal education classes offered by DECS, almost two- thirds of whom were women. Nonformal education (NFE) programs are offered by DECS, other Government departments and a variety of nongovernmental organizations to serve the education and training needs of out-of-school youth and adults who are not able to fully benefit from the school system. These generally take the form of short-term courses in basic and functional literacy, occupational skills training and community development. 7. The private school share of enrollments has remained relatively stable at the elementary level, ranging from 42 to 62 since the 19508. Despite some loss of enrollments to government schools in recent years, the private sector continues to play an important role in secondary and higher education, claiming 402 of secondary and 852 of tertiary education enrollments in 1986. Private schools are generally classified as sectarian (i.e., affiliated with a particular religious group) and non-sectarian. Non-sectarian institutions are owned either by foundations and other nonprofit corporations, or by stock corporations which are allowed to distribute dividends and sell shares of ownership. 8. Public secondary schools have traditionally been classified on the basis of their main source of funding: national schools were financed by the national government; locally-funded schools included those financed by provincial, city, municipal and barangay (village) governments. The national government decided in 1987 to assume funding responsibility for all public secondary schools. Public higher education institutions include the autonomous state universities and colleges created by legislative acts and governed by their own charters, and the unchartered and commwnity col1eges supervised directly by DECS. - 33 - ANNEX 1 Page 3 of 4 Expenditures 9. The current Administration's strong commitment to education is reflected in the high priority accorded to the sector in budgetary support since 1986. National government expenditure on education increased to 22Z of total government spending in 1988 (compared to 13S in 1980), and the 1989 budgetary allocation to education accountu for 24Z of the total national government budget. In the 1989 education budget, 14? is allocated to maintenance and other operating expenditures, another 14? to capital outlays (up from only 7? in 1986), and the rest to personal services. 10. Total public spending on education as a proportion of GNP is estimated to have risen to 2.8S In 1988. Although this is still lower than most other developing countries, it represents to some extent the greater efficiency of a system in which the private sector makes a large contribution to investment in education. The share of direct social costs (i.e. costs including household contributions other than school fees) borne by private sources in 1986 was 18? in elementary, 54Z in secondary and 67? in higher education. Private spending in education comes mainly in the form of tuition and other fees paid to schools and in school-related household expenses. Private schools receive no direct subsidies from the government, and depend primarily on fees to meet their operating and other costs. Legislation passed in May 1989 affirmed the right of private schools to set their own tuition rates and provided for subsidies to students attending private secondary schools. V4 I L~~~~~ 4'4S ___.i04I'-E "1~~~~~~~~~~~~ ~~~~~ 9u 3 li hi i g11X ... ......... r rX .jitX . ______ _ St iIi~~~~~ 1-H a In~~~~VM -35- AN 2 VPILPPINES SECOND ELEMENTARY EDUCATIWQ PROJECT Classroom and Desk Reauirements for Year 1990 A. Classrooms 1989 Stock as X of Region Requirements Stock Deficit requirement I 12,450 12,445 (5) 100 II 11,438 11,438 0 100 CAR 7,390 6,745 (645) 91 III 25,539 25,008 (531) 98 IV 33,281 32,157 (1,124) 97 V 21,914 21,570 (344) 98 VI 29,305 28,778 (527) 98 VII 21,034 19,444 (1,590) 92 VIII 19,104 18,510 (594) 97 IX 14,935 12,119 (2,816) 81 X 18,786 17,309 (1,477) 92 xI 20,336 17,535 (2,801) 86 XII 16,669 12,578 (4,091) 75 NCR 16,994 12,517 (4,477) 74 Total 269,175 248,153 (21,022) 92 B. Desks ('000) 1989 Stock as X of Region Requirements Stock Deficit requirement I 289.1 230.7 (58.4) 80 II 197.9 126.9 (71.0) 64 CAR 90.6 81.2 (9.4) 90 III 488.0 405.6 (82.4) 83 IV 677.7 413.8 (263.9) 61 V 379.8 217.0 (162.8) 57 VI 474.4 360.9 (113.5) 76 VII 361.6 175.0 (186.6) 48 VIII 280.2 169.2 (111.0) 60 IX 287.5 136.0 (151.5) 47 X 307.7 157.8 (149.9) 51 XI 376.4 208.0 (168.4) 55 XII 288.7 100.3 (188.4) 35 NCR 433.7 183.2 (250.5) 42 Total 4,933.3 2,965.6 (1,967.7) 60 -36- ANNEX 3 Page 1 of 4 PHILIPINE SECOND ELEMENTARY YLMCATION PROJECT Projection Methods for Classrooms. Desks and Books A. Clagsrooms Projection Methods for Setting 1990-92 _arjets 1. The projection of needs for school buildings is jointly initiated by the DECS Central Office and DPWH Central Office. Forecast of physical targets is based on the five-year School Building Program. For the base year, the existing stock of classrooms and workshops is calculated on the basis of actual data from the Inventory of Individual Elementary Schools (IIES) collected every five years and the following formula: For New Classrooms: Total Enrollment Actual Need - ---------------------------- Standard Class Size - 40 Note: Class size varies by province/city depending on population density 2. For the remaining four years, targets are based on projected enrolment increases minus the existing stock of classrooms at the start of the previous year plus the number of additional classrooms already provided. Based on the overall age and standards of construction, 1.51 of the classroom stock need to be replaced annually, and 3.5Z need serious repairs and rehabilitation. Calculations for multipurpose workshops are based on the intermediate enrolment size and number of shifts as follows: Multipurpose Workshops (MPW): Intermediate Enrolment MPW - --------------------------------------- Standard Class Size / No. of Shifts Where: Intermediate enrollment - 271 of total enrolment and number of shifts - 3 3. In view of the enormous budget needed for this component, DPWH cannot meet the requirements using the DECS standards for toilets. However, about 1,000 toilets are programmed each year. - 37 - ANNBE 3 Page 2 of 4 Determination of Regional Allocations 4. The basis for allocating school building funds to regions, provinces and cities are: (a) enrollment, (b) inventory of school buildings, (e) incidence of poverty, (d) implementation difficulty factor, and (e) cost. 5. The primary criterion at all levels is enrolment, projected on a regional basis using the participation rate of each region. Additional classrooms are computed on the basis of enrolment, class size and existing stock, and poverty incidence, with the weights of 79X for physical needs and 211 for poverty incidence, and an implementation difficulty factor. Weights for replacement and rehabilitation are similar, with 78X for physical needs and 22X for poverty incidence. The following formulas are used. (a) Distribution Formula for New Classrooms: ((0.79 * RRi/RRp) + 0.21 * PFi/PFp] * IDFi Sci - Sum of ((0.79 * RRi/RRp) + 0.21 * PFi/PFp] * IDFi Where: Sci - share of region i in the total school building construction funds RRi - number of rooms required in region i, calculated as enrolment/Class size minus Existing classrooms RRp - number of rooms required in the Philippines, similarly calculated PFi number of poor families in region i (as supplied by NEDA) PFp - number of poor families in the Philippines (as supplied by NEDA) IDFi - implementation difficulty factor in region i (as supplied by the DPWH Programming Division) (b) Distribution Formula for Replacement and Rehabilitation: [(0.71 * CRRNp + 0.22 PFp)J * IDFi SRRi - -------------------------------------------- Sum of (0.78 * CRRNp + 0.22 PFi/PFp)] * IDFi Where: SRRi - share of region i in the total school buildings replacement and rehabilitation funds CRRNi - cost of school building replacement and rehabilitation needs in region i based on the latest inventory CRRNp - cost of school building replacement and rehabilitation needs in the Philippines based on the same inventory - 38- 3 Page 3 of 4 B. Sch-IoL.DaSA Allocation of Desks Per Recipient 6. It is the responsibility of the Regional Director to determine the region's desk requirements as well as the number of government schools to be serviced. Considering that there are three sizes of desks, Tvpes A, B and C (for grades 1-2, 3-4, and 5-6, respectively), the region's desk requirements are determined on the basis of the following formulas. (a) Dr - AD + B + CD ------------------ - PFP/CL 2 Where: Dr - desk requirement for region r A0 , BD , CD - total number of pupils enrolled in division during SY 1987-88 (projected) for grades 1-2, 3-4 and 5-6, respectively PFP - previous furniture projects computed as total number of student furniture furnished under ESF 81 and 84 + PRODED Phases I-III + CEDP 1986 (b) Number of Recipient Schools - Dr/Cl, Where: CL - is the average class size in division 0 7. School desks are distributed to each recipient school, taking into consideration the school's population, the number of still serviceable student furniture, and the number of existing buildings/classrooms where the furniture will be housed. Once these requirements are established, the regional offices group these requirements into a combination of districts within a division, per division or both, to form attractive bid packages. Selection of ReciRient Schools 8. Previous furniture projects influence the selection of recipient schools. Unless otherwise necessary, schools already furnished in previous projects are accorded low priority in the selection exercise to be undertaken by the regions. C. Textbooks gnd Other Instructional Naterials Needs and Government Policy 1. The Governmnent intends to improve the current student-textbook ratio from 2:1 to 1:1 by 1992. Table 1 shows the textbooks used by grade and 39 ANNEX 3 Page 4 of 4 subject. Table 2 indicates proposed production taking into account the requlrements based on enrollement projections and existing inventory of books already in use. Although a 3-year life-span is assumed for textbooks, some books survive longer. The IMC has a network of "monitors" that keep track of the Inventory and adjust production levels as necessary. Table 1: BREAKDOWN OF TEXTBOOK NEEDS BY GRADE AND SUBJECT FILIPINO ENGLISH NATH Cl/CUL H/S/Cl SCIEN. HE/LIV ART MUSIC PHYS. ED. TOTALS GRADE TX TG TX TG TX TG TX TG TX TG TX TG TX TC TX CH TG TX CH TG TX C TG TX CH TG ONE 1 1 1 11 1 4 0 4 TWO 2 1 1 1 1 1 1 1 5 0 4 THREE 2 1 2 1 1 1 1 1 11 1 1 1 t 1 1 7 3 8 F0UR 2 1 2 1 1 1 1 11111 1 1 1 1 1 1 8 3 9 FIVE 2 1 2 1 1 1 1 1 t 1 1 1 1 1 1 1 1 1 11 0 9 SIX 2 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 0 9 - - =uS= u - - - -= = === 33 -333=333 ALL 11 6 10 6 6 6 3 3 3 3 4 4 3 3 2 2 4 2 2 4 2 2 4 6 6 43 Above titles exclud special publications LEGEND: TX Textbooks To Teachers' Guides CN Charts Table 2: ESTIMATED NEEDS OF INSTRUCTIONAL MATERIALS 1990 1991 1992 Totals Description --( s--------(O's)---------------- Textbooks 7,744 19,009 17,400 44,153 Teachers' Guides - 26 120 146 Special Publications 540 900 120 2,700 Charts - 120 120 Totas .284 19.935 18.900 47.119 - 40- ANEX4 PHILIPPINES SECOND ELEUMNTARY EIDCATION PROJECT Proiect Processing and Implementation Schedule Calendar Years CY89 C092 cm IBRD Fiscal Yeas FY89 FM FY92 (Juty to Junte) _ Governent Fiscat Years Y89 FY90 FM FY92 fY3 (January to December) Nedium-Term Develt t Plan 197W921 Preparation *C-C189) Preapwraisal *4-/89 Appraisal * 0/89) Negotiations*4-0/90) Board Presentation *4.0/9 ') Effectivene :opteomntatlon TEAR Period Civit Works: Plannin;leudgets ... _ ... ... ... . ... ... ... Prep. of Projects ... ... . ... ... ... ... . . . ... ... Review of Preposals ... ... ... ... ... ... ... ... . ... ... ... Aprproval ofi P . . . .. . .. ... . - - D .. . .. *- , ... ... ... ... .. Constrution ...... ... ... ... _ I ... ... ... ... ... ... ... ... ... Classroom: Additional 5 490 9t141 11 940 Replaced 1,707 2. 78? 9.439 Rebabilitated 11.216 9.0 9 t6.1?1 Workshops: Additionel 826 2.023 1t49t Rehabilitated 1.143 1 104 2.872 Tollets 655 1.000 1t000 9esks: PlaninglBudgets ... ... ... ... ... _ ... ... ... Packaging ......... ...... ... ......... Biddingrcontracting ... ... ... ... ... ... ... ... ... ... Nanufacture.. ._ ... Delivery . .. ... ... ... ... Additional Desks Prowided ('000') 300 500 700 Textbooks: Ptanning/Suziets ... ... ... ... Packaging ... ... _ ... ... Bidding ......... ... ... _ _ ... ... ......... Printing ............ ... ... mm ........ . ... Distribution ............ ... ........ ... _ _ ... ... _ _ ... Textbooks Other Pr dDistributed 7.7 EO.5) 19.0 (0.93 17.4 (1.51 (mil lion) Ecuilxet: Nester Lists ...... M ... _ _ . ... ............ ............ ............ Group4ng/Packsging ... ... ... ... _ ... . ... _ ... .. ... ... ... ... ... ... ... ... Specs & Bidding Docs ............ ... _ ... ....... ............ _ ... _ ............ Bidding ........... ...... ..... ... ... . _ ... ...... ...... Testing & Acceptance ............ ......... .. * ... _ _ CoIMiMtetPc 9: 2 fra | | -(1 1 90-7) -J 2C92) Ctosinol Dec2m9e)->I - 41 - ANNEX 5 Page 1 of 16 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT ACTION PLAN Office(s) Target Monitoring ObJective Action Responsible Date I Indicator A. IN-SERVICE STAFF TRAINING Improve subject Prepare annual regional plans for Regional 1/90 A Regional plans matter competency teacher, school administrator and Elementary 1/91 submitted to and pedagogical supervisor training Education 1/92 BEE, FIS and skills among (EEDs) and OPS elementary school Staff teachers, and Development develop effective Divisions school management among Prepare plans to monitor regional, BEE Staff 1/90 A Monitoring administrators division and school-based training Development 1/91 plans prepared and supervisors Division; 1/92 Regional EEDs Revise and distribute prototype BEE Ongoing Prototy e training materials Curriculum materials Development distributed to Division regions and divisions Produce regional training materials, Regional with the following targets: EEDs - 124,000 modules in 1990 12/90 Materials - 175,000 modules in 1991 12/91 distributed to - 224,000 modules in 1992 12/92 divisions and schools Conduct training for teachers, school Regional 12/90 Training administrators and supervisors, EEDs and 12/91 conducted with the following targets: Staff 12/92 - 100,000 teachers in 1990, 150,000 Development in 1991,and 200,000 fn 1992 Divisions, - 19,000 head teachers each year Division - 5,000 district and subJect area Offices, supervisor each year Schools Monitor and evaluate training BEE, Ongoing Monitoring Regional reports EEDs prepared and discussed with central and local DECS officials " A after the target date indicates the actual date an action was completed. _ 42 - ANNEX 5 Page 2 of 16 Office(s) Target Monitoring Objective Action Responsible Date -s Indicator B. PRE-SERVICE TEACHER TRAINING AND CERTIFICATION Qualitv and Relevance--Phase I Organize/orient Meeting of key Bureau of Higher PHE 3/90 A Meeting held collaborators Education (BHE) staff, Technical Panel on Teacher Education (TPTE), and consultants (hereinafter, the Teacher Training Study Planning Group or TTSPG) to discuss objectives and expected output with primary emphasis on Phase I Prepare draft consultant terms of BHE 6/90 TORs aiid reference (TORs) for Bank review and consultant comment and submit names of identified names received consultants to the Bank for information by the Bank Hire consultant(s) with appropriate SHE 7/90 Contract expertise to conduct Phase I of the approved study Design Phase I Develop plan for Phase I study design, Consultant 7/90- Plan prepared sampling, data collection, analysis and 9/90 reporting methods Meeting of collaborators to assess and BHE, TTSPG 11/90 Design and approve design and methods methods approved Develop Develop questionnaire instrument Consultant 9/90- Instrument questionnaire 11/90 developed Meeting of collaborators to assess and BhE, TTSPG 11/90 Instrument approve instrument approved Implement Phase I Administer questionnaire Consultant 12/90- Data collected 1/91 Process and analyze data Consultant 2/91 Data analyzed Data interpretation and report Consultant 3/91- Report prepared preparation 5/91 Report re'sults Distribute report to BHE/TTSPG Consultant 6/91 Report received of Phase I Meeting of BHE/TTSPG to discuss results BHE 6/91 Report discussed Generate Meeting of BHE/TTSPG; Deliver SHE 6/91 Written action preliminary preliminary report to DECS Central plan policy Office recommendations By "A" after the target date indicates the actual date an action was completed. - 43 - ANNEX 5 rage 3 of 16 Office(s) Target monitoring Objective Action Responsible Date gf Indicator Qualitv and Relevance--Phase II Organize/orient Posting of SHE key staff, consultants BHE 3/91 Meeting held collaborators and TTSPG to discuss objectives and expected output of Phase II Hire consultants with appropriate BHE 3/91 Contract expertise to conduct Phase II of the approved study Design Phase II Develop plan for Phase II study design, Consultant 4/91- Plan prepared site selection, reporting methods. 6/91 Meeting of collaborators to assess and BHE, TTSPG 6/91 Plan approved approve design and methods Develop Develop qualitative data collection Consultants 6/91- Instruments instruments instruments 8/91 Meeting of collaborators to assess and BHE, TTSPG 8/91 Instruments approve approved Implement Collect case study data; process and Consultant 9/91- Case studies Phase 11 analyze data; interpret data and 9(92 prepared prepare individual case studies Prepare summary report of case studies Consultant 9/92 Report prepared Report results Distribute report to BHE/TTSPG Consultant 3/92 Report received of Phase II Meeting of BHE/TTSPG to discuss results BHE 3/92 Report discussed Generate final Meeting of BHE/TTSPG BHE 3/92 Written action policy for policy recommendations changes Deliver report to DECS Central Office SHE 5/92 Report received Validity of PBET Organize/orient Meeting of key NETRC Research Division NETRC, OPS 6/90 Meeting held collaborators staff, representatives of OPS, National Board for Teachers and Civil Service Commission, and consultants Hire two consultants (research expert NETRC 6/90 Contracts and statistics expert) approved Design Studies A Develop plans for overall study design, Consultants, 7/90 Plan prepared and B analysis and reporting methods NETRC, OPS t "A" after the target date indicates the actual date an action was completed. - 44 - ANNX 5 Fage 4 of 16 Office(s) Target Monitoring Objective Action Responsible Date gf Indicator Implement studies Conduct studies Consultant 7/90- Oral interim 10190 report to NETRC, OPS Report results Report findings and conclusions to Consultants 10/90 Written reports NETRC/OPS Develop policy implications Consultants, 10/90 Meeting held NETRC, OPS Report findings, conclusions, and NETRC, OPS 11/90 Meeting held policy implications to National Board for Teachers (NBT) and Civil Service Commission Generate policy Meeting of NETRC, OPS, NBT and Civil NETRC, OPS 11/90 Meeting held on directions Service Comnission written action plan Staff training Design staff training Consultant, 11/90 Training plan NETRC Conduct staff training Consultants, 11/90 Workshop held NETRC Evaluate staff training NETRC 11/90 Report to Director Desian Annual Renortino System organize/orient Meeting of key NETRC Research Division NETRC, OPS, 9/90 Meeting held collaborators staff, representatives of OPS, NBT and NBT Civil Service, BHE and Technical Panel on Teacher Education. Develop plan for Develop plan through collaborative NETRC, BHE 9/90- Plan prepared system discussion with BHE and the Technical 11/90 Panel on Teacher Education Implement plan Write and deliver first manual report NETRC 12/90 written report to teacher training institutions Planning and Coordination--Clearinahouse/Analvtic Database Design study Meeting of OPS, SHE, and the Technical OPS. BHE 9/90 Meeting held Panel on Teacher Education to design study and methods to be used. Select project proponent OPS, BHE 10/90 Proponent selected Determine staff needs OPS, SHE 10/90 Staff time allocated 31 "A" after the target date indicates the actual date an action was completed. - 45 - ANNEX 5 Page 5 of 16 Office(s) Target Monitoring Objective Action Responsible Date 51 Indicator Approve design and study requirements OPS. BHE 12/90 Study approved Implement study Conduct study Proponent 1/91- Interim report and staff 3/91 Analyze findings and prepare report Proponent 6/91 Report prepared and staff Distribute report OPS. BHE 7/91 Report received Evaluate study Meeting with collaborators to discuss OPS, BHE 8/91 Written plan of results action Deliver recomendations for actions and OPS, BHE 9/91 Report received additional investments needed to DECS Central Office Discussion Forum Design study Meeting of SHE and Technical Panel on SHE 9/90 Meeting held Teacher Education to design study and methods to be used Select project proponent SHE 10/90 Proponent selected Determine staff needs BHE 10/90 Staff time allocated Approve design and study requirements BHE 12/90 Study approved Implement study Conduct study Proponent 1/91- Interim report plan and staff 3/91 Analyze findings and prepare report Proponent 6/91 Report prepared and staff Distribute report BHE 7/91 Report received Evaluate study feeting to discuss study results, BHE, TPTE 8/A1 Meeting hold results evaluate essential requirements and costs Generate policy Meeting of BHE/Technical Panel on SHE 9/91 Vritten plan of action Teacher Education to prepare action recommendations: deliver recommendations for action and additional investments needed to DECS Central Office V "A" after the target date indicates the actual date an action was completed. - 46 - ANNU S Page 6 of 16 Office(s) Target Monitoring Objective Action Responsible Date Y Indicator C. DROPOUT INTERVENTIONS Reach children Prevaration work at risk of leaving school Finalize design, including details of BEE Project 3/90 A Project team prematurely each intervention, project sites and Team, organized, through the implementation arrangements Consultants design and introduction of sampling selected dropout finalized prevention measures on a pilot basis Design monitoring and evaluation BEE Project 4/90 A Instruments monitoring and evaluation instruments Team, drafted and Consultants reviewed Select sample regions and schools BEE 4/90 A Sample schools selected Print multilevel materials BEE 4/90 A Materials printed Finalize and reproduce monitoring and BEE 6/90 Instruments evaluation instruments reproduced Hold orientation/training workshops BEE Project 6/90 Orientation and Team, training regional workshops held teams, Consultants First year imolementation Administer pretests and student Field teams, 7/90 Pretests and questionnaires; distribute monitoring BEE questionnaires forms and other evaluation instruments advinistered; forms distributed Implement interventions on the use of Field teams, 6/90- Interventions multilevel materials and school feeding sample 3/91 implemented and schools monitoring instruments accomplished Hold monthly consultative meetings with District 6/90- Record of parents in designated sample schools Supervisors, 3/91 monthly Principals, meetings held Teachers Monitor/supervise pilot classes Regional/ 6/90- Monitoring Division/ 3/91 forms verified District Supervisors MY "At after the target date indicates the actual date an action was completed. - 47 - AMX 5 Page 7 of 16 Office(s) Target Wonitoring Objective Action Responsible Date 91 Indicator Administer posttest, collect monitoring Field teams, 3/91 Posttest forms and other instruments except for BEE administered, attendance record monitorina forms collected Prepare and finalize arrangements for BEE 8/90- Arrangements sumer preschool intervention, 3/91 finalized including monitoring and evaluation Implement preschool intervention Field teams, 4/91- Intervention sample 5/91 implemented schools Initial evaluation Process and conduct preliminary BEE Project 8/90- Initial data analysis of data collected from first Team, 5/91 analysis and year implementation Consultants reports, workshops held Hold workshops for mid-term evaluation, preparation for second year implementation Second year implementation Collect attendance records from Field teams, 7/91 Pretests and previous year, with information on re- BEE questionnaires enrollment; administer pretests and administered: student questionnaires; distribute forms monitoring forms and other instruments distributed (including schools and students involved in summer preschool intervention) implement interventions on the use of Field teams, 6/91- Interventions multilevel materials and school feeding sample 3/92 implemented and schools monitoring instruments accomplished Hold monthly consultative meetings with District 6/91- Record of parents in designated sample schools Supervisors, 3/92 monthly Principals, meetings held Teachers Monitor/supervise pilot classes Regional/ 6/91- Monitoring Division/ 3/92 forms verified District Supervisors !W TAA after the target date indicates the actual date an action was completed. - 48 - AM=E 5 Vase 8 of 16 Office(s) Target Monitoring ObJective Action Responsilble Date if Indicator Administer posttest, collect monitoring Field teas, 3/92 Posttest forms except for attendance record BEE administered, monitorina forms collected Collect attendance records from Field teams, 6/92 Records previous year, with information on re- BEE collected enrollment Evaluation Process data collected from second year BEE, 4/92- Data analyzed implementation Consultants 5/92 Conduct full analysis and evaluation 5/92- Report prepared and write final report 10/92 Hold workshop to disseminate and 11/92 Vorkshop held discuss results and policy recomnendations of the project as input into planning for a continued dropout reduction strategy 0. EVALUATION OF EDUCATIONAL OUTCOMES Determine the Personnel Actions relative effects of school and Finalize composition of study team, BEE 3/90 A Teams non-school with subgroups to manage sampling and finalized, factors on the instrument design consultants interrelated BEE 3/90 A hired educational Identify and appoint consultants to outcomes of advise on instrument design BEE 3/90 A student attendance, Hire/appoint field team BEE 3/90 A achievement and retention with Identify and appoint consultants for a view to data processing and analysis recommending implementation of additional dropout prevention measures Samplina and instrument desian Finalize instruments for pilot-testing BEE, 5/90 A Instruments and send copy to Vorld Bank for review Consultants tested and reviewed Finalize instruments for printing, BEE, 6/90 Instruments including initial achievement tests Consultants printed "A l after the tarset date indicates the actual date an action was completed. - 49 - ANNEX 5 Page 9 of 16 Office(s) Target Monitoring Objective Action Responsible Date W Indicator Field work Administer initial achievement tests; Field teams 7/90 Initial tests begin recording of attendance record administered Administer other student, class, and Field teams 9/90 Instruments school questionnaires administered Field checks to ensure attendance BEE, field 8/90- Monitoring records are kept teams 3/91 reports Administer final achievement test Field teams 3/91 Final tests administered Collect attendance records Field teams 6/91 Attendance records collected Data orocessino and analysis BEE, 7/90- Data coded and Code and enter data on computer as each Consultants 9/91 entered phase of data collection is completed Clean data and obtain preliminary BEE, 9/91- Preliminary descriptive statistics Consultants 12/91 statistics obtained Analyze data BEE, 1/92- Data analyzed Consultants 4/92 Prepare report BEE, 4/92- Report prepared Consultants 9/92 Hold conference to discuss results of BEE 12/92 Conference held evaluation and design future policy interventions to improve educational outcomes E. LITERACY TRAINING Expand and Development and production of learning Learning Ongoing 6,500 copies improve the BNFE materials for three literacy levels Resource each of 6 literacy program (writing, field testing, Development titles, and by providing revision/refinement, printing, Division, 2,500 copies of adequate staff shipment/distribution) BNFE teacher's support for staff manuals training, materials production, distribution and evaluation W "Al after the target date indicates the actual date an action was completed. - 50 - ANNEX 5 Page I0 of 16 Office(s) Target Monitoring Objective Action Responsible Date 8Y Indicator Orientation and training of literacy BNFE- Ongoing teachers, writers and other NFE Learning implementors Resource Development Division (LRDD), Regional MFE Divisions - Sponsor degree programs for NFE 8NFE Staff 12/90 14 NFE Coordinators and BNFE researchers Development 12/91 Coordinators Division 12/91 and 1 BNFE (SDD) researcher sponsored per year - Sponsor short-term program for NFE BNFE-SDD 12/90 4 three-month coordinators and teachers, BNFE 12/91 courses held researchers and other NFE implementors 12/92 per year - Conduct training workshops for BNFE-LRDD 12/92 20 literacy literacy writers to enhance regional writers trained capabilities per region - Conduct training workshops for BNFE- 12/90 5,000-8,000 literacy teachers SDD/LRDD, 12/91 regular Regional NFE 12/92 teachers and Divisions para-teaches trained per year - Conduct observation tours and study ONFE-SOD 12/90 Grants to 14 grants 12/91 NFE field 12/92 implementors and 4 BNFE researchers awarded per year Organize and conduct literacy classes Regional NFE 12/90 5,000-8,000 Divisions/ 12/91 classes Division NFE 12/92 conducted per Offices year Monitor and evaluate literacy classes BNFE-SOD and Ongoing Monitoring field reports on offices literacy classes and activities Post-literacy activities including BNfE and Ongoing 400-900 reading establishment or maintenance of field centers per community reading centers and provision offices year of neo-literacy materials " TA" after the target date indicates the actual date an action was completed. - 51 - ANNEX 5 rage 11 of 16 Office(s) Target Monitoring Objective Action Responsible Date Y Indicator F. ELEMENTARY STUDENT ASSESSMENT PROGRAN Design an Prepare planning documents and detailed NETRC, BEE, 1190- Planning assessment statements of objectives for meeting of Center for 2/90 A documents project to staff and consultants Educational collect data Measurement on 5 curriculum (CEM), subjects at 3 Foreign grade levels experts Convene meeting of foreign experts and NETRC, BEE, 3/90 A Draft of design local staff and consultants to discuss CEM plan; minutes options and design assessment of meeting Circulate draft of design plan to local NETRC 6/90 Summary of and foreign consultants for review and comments coNments Convene meeting of National Advisory NETRC 7/90 Minutes of Committee to discuss project design meting Development of Formulation of linkage mechanism NETRC 6/90- Final copy of institutional 7/90 linkage linkages mechanisms Printing and mailing of project KETRC 8/90- Brochures description brochures 9/90 printed and mailed Prepare Convene test development committees, NETRC, BEE, 8/90- Minutes of assessment in one each in math and science, to CEH 9/90 meetings math and science develop objectives and specifications for grades 2, 4 for assessments and 6 Write item specifications based on CEM 10/90 Item committee deliberations specifications in math and science Write test questions for math and CEH 11/90- Test questions science 12/90 Edit items and prepare pre-tests CEM 1/91- Manuscript 2/91 Print pre-tests, select schools for CEM 2/91- Pre-tests try-outs, administer pre-tests 3/91 administered Score and analyze results CEM 4/91 Item analyses Revise and edit results Ot pre-tests, NETRC, CEM 5/91- Manuscript prepare for printing tests 6/91 Print tests and administration manuals CEM 7/91 Printed tests / "An after the target date indicates the actual date an action was completed. - 52 - AM= 5 Page 12 of 16 Office(s) Target Monitoring Objective Action Responsible Date #W Indicator Prepare, ship tests and manuals to NETRC 11/91- Tests schools, administer tests 12/91 administered Score tests, prepare data tape NETRC 1/92- Data tape 3/92 Data analysis, draft reports NETRC, CEM 4/92- Draft reports 8/92 Print and issue reports DECS 9/92 Reports Prepare student/ Convene committees of experts CEM 9/90- Minutes of teacher/school 10/90 meetings questionnaires Draft questions, send out for review, CEI 11/90- Pre-tests pre-test questions 2/91 Score and analyze results NETRC, CEl 3/91- Results 5/91 Revise and print questionnaires CEl 6/91 Questionnaires Administer and analyze results NETRC. CEN 7/91- Data analyses 2/92 Include results in reports NETRC, CEl 8/92 Reports Acquire and Acquire and install electronic NETRC 10/90- Equipment on install equipment necessary for project 12/90 site electronic equipment Train staff in use NETRC 12/90- Trained staff 1/91 Develop system and programs NETRC 1/91- Systems and 5/91 programs Disseminate Prepare detailed dissemination plan DECS 7/92 Plan results of math and science assessments Prepare draft press releases DECS 7/92 Draft releases Solicit statements from leaders DECS 8/92 Statements Organize press conference DECS 8/92 Print 30,000 sumaries, mail to schools NETRC 8/92 Summaries mailed Mail reports to national and regional NETRC 9/92 Reports mailed leaders Convene national press conference, DECS 9/92 Press issue press release and written conference, statements press release V "Al after the target date indicates the actual date an action was completed. - 53 - ANmX 5 Page 13. of 16 Office(s) Target Monitoring Objective Action Responsible Date SI Indicator Development of Convene 3 test development comaittees NETRC 6191- Ninutes of assessments in to develop objectives ant 7/91 meetings English, Filipino specifications and social studies for grades 2, 4 and 6 Write item specifications and prepare CEN 8/91- Test questions test questions 10/91 Prepare pre-tests and select schools CEN 11191- Pre-tests for try-out 2/92 Administer pre-tests and analyze CEN 2/92- Data analysis results 3/92 Revise and print tests and manuals, NETRC, CEN 11/92- Tests ship to schools 12/92 administered Score results NETRC 12/92 Scored tests Selection of Using DECS files, select regional NETRC 8/90 Lists of school samples samples of school samples to fit design schools Contact schools to secure cooperation NETRC 10/90- Lists of 2/91 schools Regional meetings to train school NETRC, CEN 8/90- Trained staff personnel 10/91 Quality control visits during NETRC. CEN 1/92 Quality control administration reports S. ANA6EHENT INFORMATION SYSTEM Interpretation of User requirements OPS, FNS, 6/90 Requirements databases Development analysis Academy of the Philippines (OAP) System design OPS, FNS, 9/90 Design report DAP System implementation OPS, FMS, 12/90 IBM configured DAP Conversion of existing databases OPS, FPS, 3/91 Databases DAP loaded User training OPS, FNS, Ongoing Ongoing DAP SI UAU after the target date indicates the actual date an action was completed. - 54 - ANNIEX 5 Page 14 of 16 Office(s) Target Monitoring Objective Action Responsible Date 91 Indicator Support and maintenance OPS, FHS, Ongoing Ongoing DAP Central Office Installation of Local Area Network OPS, FNS, 7190 LAN installed network (LAN) on a pilot basis in Central DAP Office Training of senior executive network OPS. FMS, 8/90 Training users DAP completed Training of network specialists OPS, FHS, 7/90- Training DAP 12/90 completed Expansion of LAN to incorporate OPS. FNS, 2/91 LAN installed remaining users OAP Installation of Gateway to lem OPS, FNS, 3/91 Gateway mainframe DAP installed Training of remaining users OPS, FNS. 4/91 Training DAP completed Regional links Establish pilot link with first region OPS, hHS, 12/91 Link to 4 regions DAP operational; users trained Establish links with three additional OPS, FMS, 12192 Link regions DAP operational; users trained HIS at divisional Review and modify databases for OPS, FMS, 10/91 Databases levels installation in divisions DAP modified Install modified databases and train OPS, FNS. 12/92 Databases users in all divisions of Region VII DAP installed and training completed Educational MIS Develop criteria for ERIS assessment OPS, DECS 6/90 Criteria for (EMIS) Support Regional ERIS assessment Offices (DECSRO) National orientation on the assessment OPS, DECSRO 9/90 ERIS personnel of EIlIS oriented Annual assessment of ElIS OPS, DECSRO 10/90 ERIS assessed 10/91 10/92 Annual awards for outstanding EllIS OPS, DECSRD 11/90 Award granted 11/91 11/92 AW "All after the target date indicates the actual date an action was completed. - 55 - ANNEX 5 Page 15 of 16 Office(s) Target Monitoring ObJective Action Responsible Date alI Indicator Transfer of DECS Construction of physical facility DECS 2/92 Construction mainframes to completed University of Life site Computer installation OPS, FHS, 2/92 Computer DAP operational H. PLANNING AND BUDGETING METHODS Improve the Prepare statements of work; identify OPS, FMS, 6/90 Statements of quality of the qualified researchers: prepare strategy Consultant work; contract data used in for implementation; select consultants documents; preparing DECS consultants planning targets selected and budget requirements Identify representatives from private OPS, FMS, 7/90 List of institutions and student groups to Consultant representatives discuss education cost index Standardize Conduct study and produce report OPS, FHS, 12/91 Draft report enrollment Consultant projection methodology Prepare computer program Computer 12/91 Computer programmer program Print manuals Technical 10/92 Printed manuals Services Hold workshops OPS, FMS 12/92 Workshop held Develop Conduct study and produce report Consultant 7/90 Report produced appropriate methodologies for calculating per student costs Prepare computer program Computer 12/91 Computer programmer program Print manuals Technical 10/92 Printed manuals Services Hold workshop OPS, FVS 12/92 Workshop held Develop an Consult with interested group OPS, FMS, 8/90 Consultative education cost Consultant meeting index Conduct survey and gather data OPS, FNS, 2/91 Data collected Consultant SY "A" after the target date indicates the actual date an action was completed. - 56 - AMX 5 Page 16 of 16 Office(s) Target monitoring Objective Action Responsible Date i/ Indicator Complete report OPS, FMS, 5/91 Report Consultant completed Reach agreement on index OPS, FMS, 8/91 Agreement Consultant reached Finalize operating procedures: OPS, FMS, 12/92 Procedures and continuous updating of index Consultant program in place I. INFORMATION DISTRIBUTION SYSTEM Improve Analyze user requirements DEC Manuals 12/90 Detailed design efficiency Task Force, and plan in the flow, Local assembly and consultant retrieval of information on DECS policies and operations Develop, implement index Technical 2/91 Database Services operational Create overall policy document Technical 6/91 Policy document Services, created Local consultant, relevant units Create loose-leaf manuals Technical 6/91 Manuals created Services, Local consultant, relevant units Produce policy document Technical 1/92 10,000 copies Services, produced Printer Produce loose-leaf manual Technical 1/92 13 million Services pages produced Hold regional and division workshops Technical 4/92 Workshops held Service Hold divisional meetings Division 5/92 Meetings held offices 'I VA0 after the target date indicates the actual date an action was completed. - 57 - ANNEX 6 Page 1 of 5 PHILIPPINE. SECOND ELEMENTARY EDUCATION PROJECT The School Building Program (SBP) 1. The School Building Program (SBP) is a continuing program to provide the public elementary schools with sufficient classrooms, multi- purpose workshops and toilets. This program was accorded high priority to ensure adequate accommodation facilities to the schools nationwide. The formulation, implementation, monitoring and evaluation of the School building Program is jointly undertaken by DECS, DPWH, and DBM. DECS identifies the schools that will receive school building projects (new construction and/or repair) in any given year, with DPWH serving principally as the engineering and construction arm, and DBM being responsible for the overall financing of the program within approved budgetary allocations. The SBP is a component of the larger and more comprehensive National Infrastructure Program (NIP). However, the fiscal allotments for its regular operations are built into the annual appropriations of the DECS. Formulation of the SBP 2. Based on the 5-year Infrastructure Program for 1987-1992 and considering the fiscal parameters of the coming budget year, a budgetary ceiling for each budget year is set by the NEDA Board's Development Budget Coordination Committee where the DBM acts as the technical secretariat. The DPWH breaks down the Infrastructure Program ceiling into the various project categories including school buildings, based on an assessment of total needs and in consultation with DECS. DPWH presents this proposed breakdown by project category to the NEDA Board's Committee on Infrastructure for its approval V. The budget ceiling for elementary school buildings covers: (a) classrooms: (i) new construction of additional classrooms to accommodate enrollment increment; (ii) replacement of damaged or dilapidated units caused by natural ageing and calamities; and (iii) repair and rehabilitation of existing units to restore them to good condition; (b) multi-purpose workshops: (i) new construction, and (ii) rehabilitation; and (c) toilets. 3. The process of determining regional allocations is described in Annex 3. Regional allocations are based on enrolment, inventory of school buildings, class size, incidence of poverty, implementation difficulty, and 1/ More recently, in the application of the regional budget allocation criteria, DPWH treats its share of the Infrastructure Program, net of school building, as one lump sum to be broken down by region. Each Regional Development Council decides on the distribution its share by project category. - 58- ANNEX Page 2 of 5 cost. These regional allocations are further distributed into provincial and city allocations by the Regional Development Councils upon the recommendation of the DECS regional offices. At the sub-national levels, the formulation of the SBP essentially starts at the school level as follows: (a) The School Head/Principal determines the school needs with respect to building projects on the basis of the School Development Plan, as required by school planning minimum standards. The school Head in consultation with local officials (barangay council/P.T.A.) prepares and submits priority list proposals to the District Supervisor. (b) The District Supervisor consults local school boards, municipal mayor/councils, consolidates into district priority lists and submits to the Division Office. (c) The Division Office Planning Unit consolidates and submits above lists/proposals to the City/Provincial School Building Committee, for review and approval. (d) The School Building Committee reviews and approves the priority lists, forwards approved list to the Regional Office. The Provincial Governor/City Mayor is the chairman with the City/Provincial Schools Superintendent (DECS), City/District Engineer (DPWH), and Development Officer as members. (e) The Decs Regional Office - Regional Planning Unit in consultation with the Civil Works Coordinator consolidates division priority lists, using the following DECS guidelines: (i) first priority - schools where there are twice as many classes as there are classrooms in good repairable conditions; (ii) second priority - schools where there are more classes than classrooms but the class-classroom ratio is less than 2:1; and (iii) special priority - schools in the resettlement/relocation areas, cultural minority groups, etc. 4. Upon the receipt by the regional offices of the regional budget allocations, the final stages in formulating the SBP are as follows: (a) PreRaration of Provincial Budget Allocations. The Regional Development Council (RDC) deliberates on the allocation of the budget per province based on the approved regional budget allocation, forwards the budget ceiling per province to the Provincial Development Council. (b) Preparation of the M4unlciRal Budget Allocations. The Provincial Development Council (PDC) deliberates on the budget per municipality. The DECS superintendent serves as a member of the PDC. (c) PreRaration of School building Projects. The Municipal Development Council (MDC) deliberates on the schools within its jurisdiction. The determination of priorities is based on the resolutions for -59 - ANNEX 6 Page 3 of 5 projects submitted by the different barangays and the listings from the district supervisors of the DECS. (d) Reyiew and Evaluation of Municipal Proposals. The different municipalities submit their proposed plan to the PDC. Together with the DPWH District Office, the project proposals are reviewed and evaluated against the Provincial Development Plan and Program and the DPWH's issued guidelines and standards. A feasibility study is also conducted by the DPWH District Office. (e) Review and Evaluation of Provincial ProposAls. The Provincial Development Council consolidates the provincial project plan and submits it to the Regional Development Council (RDC). The RDC reviews the proposals against the Regional Development Framework Plan and Regional Development Investment Program. The RDC consolidates the regional project plan. (f) Checking of Compliance of Regional School building Projects with DPWH Guidelines and inclusion in Regional Infrastructure Program. The regional project plan is submitted to the DPWH Regional Office and NEDA. The DPWH checks for compliance with DPWH guidelines and includes the selected individual projects in the Regional Infrastructure Program. (g) Consolidation of the SBP with the National Infrastructure Program (NIP) and checking consistency with the 5-Year Medium-Term Plan. The NEDA Board's Committee on Infrastructure reviews the consistency of the projects with the Philippine Development Plan and confirms their inclusion in the overall infrastructure program. The DPWH Central Office reviews the compliance of the projects with DPWH guidelines and includes the projects in the overall DPWH National Infrastructure Program. (h) Approval of the National Infrastructure Program (NIP). The NIP is presented to the NEDA Board for review and the President as head of the NEDA Board approves the same. Imnlementation and Monitoring of the SBP 5. Procedural Guidelines in the Release of Funds. The process for the release of funds is as follows: (a) The Department of Budget and Management (DBM) releases the original copy of the Advice of Allotment (AA) direct to DPWH-CO. To facilitate project implementation, DBM simultaneously sends a certified true copy of the AA direct to the implementing DPWH-RO on the basis of which, the said DPWH-RO is authorized to incur obligation. A copy of the AA will, likewise, be furnished to DECS- RO for monitoring purposes. (b) The DBM issues the Funding Warrant (FW) direct to the servicing bank of the DPWH-RO. - 60 - ANNEX 6 Page 4 of 5 (c) The corresponding Notice of Funding Warrant Issued (NFWI) is forwarded directly to the recipient DPWH-RO, copy furnished to DECS-CO and DPWH-CO. (d) The original copies of the AA and the FFWI are used by the DPWH-GO to record the allotment and the direct release of funding warrant to the implementing DPWH-RO. (e) The DPWH-CO, within three days of receipt of the original AA, advises the DECS-CO and DPWH-RO through a "Notice to Proceed" to go on with the implementation of the SBP in accordance with the project listing indicated in the AM. (f) Based on its copies of the AA, NFWI and Notice to Proceed, DPWH-RO records in its books of accounts as cash in bank, the amount directly released by DBM. (g) Accordingly, the DPWH-RO proceeds with the implementation of the SBP and records in its books as trust liability the deposit made by DBM to its current account with the servicing bank. (h) Upon completion of the project, the DPWH-RO issues a Certificate of Project Completion and turns over the completed project to the concerned DECS-RO which forwards the same to its DECS-CO. (i) The DPWH-RO drops from its books the asset and invested surplus accounts by issuing a journal voucher, copy furnished to DPWH-C0. The DPWH-CO responds by recording the completed project in its books. (j) Disbursement of funds is carried out in compliance with all applicable existing government accounting and auditing rules and regulations. 6. Procedure in the Implementation of Various Projects. The DPWH-RO upon receipt of the Notice To Proceed, performs the following through the City/District Engineer: (a) Conduct the prequalification, bidding and awarding of contracts for school building projects in accordance with the approved plans and specifications. (b) Enter into contracts for the implementation of the SBP. (c) Construct, replace, rehabilitate and complete as well as re;,air and maintain elementary school buildings in accordance with the approved plans and specifications. (d) Conduct periodic inspection of school infrastructure projects and issue instructions for the immediate correctioo of defects in the work. (e) Review and approve the Statements Of Work Accomplished and Certificates of Project Completion submitted by the contractors. -61 - ANNEX 6 Page 5 of 5 (f) Issue the Certificate of Project Completion. (g) Approve submitted Statements of Work Accomplished prior to progress payments, and in case of final payment, a Certificate of Completion and a corresponding Certificate of Acceptance issued by the DECS- RO representative. (h) Issue and submit to the regional and central offices of DECS and DPWH, and the DBM, periodic Statements of Work Accomplished on the school infrastructure projects for monitoring purposes. Monitoring System 7. To assess and/or review the efficiency and effectiveness of project implementation by the field offices, an interim DPWH Project Monitoring System (PNS) was designed. The design aims to provide DPWH's top management with the necessary information on the progress of projact implementation pending the institutionalization of a totally computerized system. To generate information, PMS uses the following four reporting formats: (a) PMS Form 8801-A. Physical Status of Individual Projects (Including Physical S-Curve. SC-1) (b) PMS Form 8801-B. Financial Status of Individual Projects (Including Financial S-Curve, SC-2) (c) PMS Form 8802-A. Overall Financial Status Summary by District/City/PMO/REGION (Including Overall Financial S-Curve, SC- 1) (d) PMS Form 88Q2-B. Overall Financial Status Summary by District/City/PMO/REGION (Including Overall Financial S-Curve, SC- 2) 8. The schedule for the submission of monthly and quarterly reports to regional and central offices is as follows: Responsible Submission Office Schedule 8801 A and B PHO/DE/CE Monthly to ROs; Quarterly to Offices CO; cut-off date is the 25th day of each month 8802 A and B -do - Monthly 8801 A and B Regional Quarterly to CO Offices 8802 A and B - do - Ten days after the end of each month ____.___----_----------- ,._ ---.----.--------_____ ---------_ ---_ -_ _ -_.- - 62 - ANNEX 7 Page 1 of 3 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Proiect Cost Tables Base Costs by Expenditure Category and Year - -------Pesos million-------------- Foreign Exchange 1990 1991 1992 Total % Pesos mi. A. CIVIL WORKS 1,250.1 1,914.4 2,643.4 5,807.9 20.0 1,161.6 B. DESKS 144.0 240.0 336.0 720.0 15.0 108.0 C. TEXTBOOK PRINTING/DIST. 53.7 127.6 124.5 305.8 15.0 45.9 D. TEXTBOOK PAPER 145.6 342.9 336.5 825.0 77.0 635.3 E. LOCAL TRAINING 46.8 60.8 66.3 173.9 15.0 26.1 F. MISCELLANEOUS 22.6 36.1 32.2 90.8 15.0 13.6 G. EQUIPMENT 48.0 28.6 18.7 95.3 90.0 85.8 H. LOCAL EXPERTS 7.2 4.6 2.5 14.3 15.0 2.1 I. FOREIGN EXPERTS 0.0 2.2 1.1 3.3 85.0 2.8 Total BASELINE COSTS 1.718.0 2,757.2 3,561.2 8,036.4 25.9 2,081.2 Physical Contingencies 53.6 86.0 111.1 250.7 25.9 64.9 Price Contingencies 62.6 306.5 690.9 1,060.0 17.5 185.5 Total PROJECT COSTS 1,834.2 3,149.7 4,363.2 9,347.2 24.9 2,331.6 Taxes 195.2 352.5 474.6 1022.2 0.0 0.0 Foreign Exchange 471.7 825.5 1034.4 2331.6 100.0 2,331.6 Total Costs Tncluding, Contingencies by Expenditure Category and Year ----------Pesos million----------- -----USS million---------- 1990 1991 1992 Total 1990 1991 1992 Total A. CIVIL WORKS 1,336.2 2,196.1 3,254.7 6,787.0 58.6 96.3 142.8 297.7 B. DESKS 154.0 276.0 415.4 845.4 6.8 12.1 18.2 37.1 C. TEXTBOOK PRINTING/DIST. 57.4 146.7 154.0 358.1 2.5 6.4 6.8 15.7 D. TEXTBOOK PAPER 153.8 380.0 391.2 925.1 6.7 16.7 17.2 40.6 E. LOCAL TRAINING 50.1 69.9 82.0 202.0 2.2 3.1 5.6 8.9 F. MISCELLANEOUS 24.1 41.6 39.8 105.5 1.1 1.8 1.7 4.6 G. EQUIPMENT 50.7 31.7 21.8 104.2 2.2 1.4 1.0 4.6 R. LOCAL EXPERTS 7.7 5.3 3.1 16.1 0.3 0.2 0.1 0.7 I. FOREIGN EXPERTS 0.0 2.4 1.3 3.7 0.0 0.1 0.1 0.2 Total PROJECT COSTS 1,834.2 3,149.7 4,363.2 9,347.2 80.4 138.1 191.4 410.0 uum=uumuuamwsaumuus 33usB"s w assaB" inUUUUU3uUUUUUUUUUUUabUUin - 63 - ANNEX 7 Page 2 of 3 Base Costa by Project Comgonent and Year .---------Peso8 million--- ----- Total in 1990 1991 1992 Total USS million A. INFRASTRUCTURE/IATERIALS 1. SCHOOL BUILDINGS 1,247.6 1,914.4 2,643.4 5,805.4 254.6 2. DESKS 144.0 240.0 336.0 720.0 31.6 3. TEXTBOS 199.3 474.5 464.8 1,138.6 49.9 4. SCHOOL EQUIPMENT 45.0 14.0 14.0 73.0 3.2 -... ;... _..._. ....... ... ...................................... ....... Sub-total 1,635.9 2,643.0 3,458.2 7,737.0 339.3 B. TEACHER/ADMIN. PERFORMANCE 1. IN-SERVICE TRAINING 29.3 36.6 43.8 109.7 4.8 2. TEACHER TRAINING REVIEWS 2.8 1.6 0.5 5.0 0.2 ........ ................... _._ ........- -------- .......... ...... Sub-total 32.1 38.2 4.4 114.7 5.0 C. BASIC EDUCATION 1. DROPOUT PREVENTION 2.7 2.6 0.7 6.1 0.3 2. EDWC. OUTCOMES EVAL. 4.0 1.7 0.4 6.1 0.3 3. LITERACY TRAINING 26.2 36.7 36.7 99.6 4.4 .__....................._._............... ----- Sub-total 32.9 41.0 37.9 111.8 4.9 D. PLANNING AND MANAGEMENT 1. STUDENT ASSESSMENT 8.5 10.7 9.6 28.8 1.3 2. INFORMATION SYSTEM 6.6 11.9 2.3 20.8 0.9 3. MANAGEMENT STUDIES 0.7 1.5 1.3 3.5 0.2 4. INFO. DISTRIBUTION 0.3 9.5 6.1 15.8 0.7 Sub-total 16.1 33.5 19.3 68.9 3.0 E. PROJECT MANAGEMENT 1.0 1.5 1.5 4.0 0.2 Total BASELINE COSTS 1,718.0 2,757.2 3,561.2 8,036.4 352.5 Physical Contingencies 53.6 86.0 111.1 250.7 11.0 Price Contingencies 62.6 306.5 690.9 1,060.0 46.5 Total PROJECT COSTS 1,834.2 3,149.7 4,363.2 9,347.2 410.0 Taxes 195.2 352.5 474.6 1,022.2 44.8 Foreign Exchange 471.7 825.5 1,034.4 2,331.6 102.3 .............................. ...................................... ----------................. Total Costs Includinz Contingencies by Component and Year ------------Pesosf llion------------- ---------USSm mliton-------- 1990 1991 1992 Total 1990 1991 1992 Total A. INFRASTRUCTURE/MATERIALS 1. SCHOOL BUILDINGS 1,333.5 2,196.1 3,254.7 6,784.4 58.5 96.3 142.8 297.6 2. DESKS 154.0 276.0 415.4 845.4 6.8 12.1 18.2 37.1 3. TEXTBOOKS 211.2 531.2 549.5 1,292.0 9.3 23.3 24.1 56.7 4. SCHOOL EQUIPMENT 47.5 15.5 16.3 79.3 2.1 0.7 0.7 3.5 .......... -..-------...-----.......--. _.---._---- ....... ............. ....................................__ . . Sub-Total 1,746.4 3,018.8 4,235.9 9,001.0 76.6 132.4 185.8 394.8 B. TEACHER/ADMIN. PERFORMANCE 1. IN-SERVICE TRAINING 31.4 42.1 54.2 127.6 1.4 1.8 2.4 S.6 2. TEACHER TRAINING REVIEWS 3.0 1.9 0.7 5.6 0.1 0.1 0.0 0.2 ........... ................................. . .... _ ------------------...........-----------............... _ ...... Sub-Total 34.4 43.9 54.9 133.2 1.5 1.9 2.4 5.8 C. BASIC EDUCATION 1. DROPOUT PREVENTION 2.9 3.0 0.9 6.8 0.1 0.1 0.0 0.3 2. EDUC. OUTCMES EVAL. 4.3 1.9 0.5 6.7 0.2 0.1 0.0 0.3 3. LITERACY TRAINING 28.0 42.3 45.5 115.7 1.2 1.9 2.0 5.1 ... ... _...................................................... ...........----------------------_ .. ... Sub-Total 35.2 47.2 46.9 129.3 1.5 2.1 2.1 5.7 0. PLANNING AND MANAGEMENT 1. STUDENT ASSESSMENT 9.1 12.1 11.7 32.9 0.4 0.5 0.5 1.4 2. INFORMATION SYSTEM 7.1 13.3 2.8 23.2 0.3 0.6 0.1 1.0 3. AMAAGEIENT STUDIES 0.8 1.7 1.6 4.1 0.0 0.1 0.1 0.2 4. INFO. DISTRIBUTION 0.3 10.9 7.5 18.7 0.0 0.5 0.3 0.8 .......... ;~.................. _. .. ..... _i ------ - ..._. .. .... ; .. ._.. _._ ..... _ _ Sub-Total 17.2 38.0 23.7 78.9 0.8 1.7 1.0 3.5 E. PROJECT WUMAGEMENT 1.1 1.7 1.9 4.7 0.0 0.1 0.1 0.2 -----.-------------- . _...... .. .... . ..__........ ....... ............................._ Total PROJECTS COSTS 1,834.2 3,149.7 4,363.2 9,347.2 80.4 138.1 191.4 410.0 _ _~~~~a 0oeCt byExudl e Cteov old Prieft Cmnn (Psos illton) Scum. SCOM INl-SUR. TRACVI DRoOT OM. LtTtI SlDNT 11PM- NAA- IFOR- PROJT SUILD- TfXT- NUIP- STAFF TINO. PRW- OUTCOS M" ASSESS- ATtION OENI ATtION MImE- tUGS DES0KS IIEIIT TooS. VEV. TION ESM. TMiN. T SysIN S"nS DIST. N TOTAL A. CIVIL WOS 5.8.4 * - - - - - 2.5 * . - 5, .9 S. OEM. 70.0 . . . 720.0 C. TXTSOOK PRINTINWDIT.. 305.6 305.8 0. TEXTOCK PAPER M D2S.0 - - - -. - 02.0 E. LOCAL TRAINING - - 6 68.0 0 0.7 95.S 1.8 1. 5 4.5 173.9 f. NISELLANUS - 41.6 5.7 4.7 4.1 1S.O 3.0 1.6 11.1 4.0 90.8 G. EOWI_NT 7.7 73.0 - - S - - 6.0 8.6 95".3 N. LOCAL EXPERTS - . - - 5.0 0.2 0.7 2.7 5.0 0.4 0.2 14.3 a 1. FOREIEXPERTS , , . , 3.3 , , 3 . Total DASELINE COSTS 5,605.4 720.0 1,138.6 73.0 109.7 5.0 6.1 6.1 99.6 28.8 20.8 3.5 15.8 4.0 8,036.4 Physical Contin cies 181.1 22.5 35.5 2.3 3.4 0.2 0.2 0.2 3.1 0.9 0.6 0.1 0.5 0.1 250.7 Price Contingencies 797.8 102.9 117.8 4.1 14.6 0.4 0.6 0.4 13.0 3.2 1.8 0.5 2.4 0.S 1,060.0 ................................................................................................................................. Total POECT cOSTS 6,784.4 845.4 1,m.0 79.3 127.6 5.6 6.8 6.7 115.7 32.9 23.2 4.1 18.7 4.7 9,347.2 Taxes 678.4 84.5 249.S 7.9 0.0 0.0 0.0 0.0 0.0 0.7 1.2 0.0 0.0 0.0 1,022.2 Forelgn Exchane 1,302.5 121.3 m.6 71.4 18.4 0.8 1.0 1.0 16.7 12.3 10.7 0.6 2.7 0.7 2,331.6 ................................................................................................................................. 0h V% - 65 - ANNEX 8 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Procurement Responsibilities of Implementing Agencies 1. Procurement of Goods and Services for Specific Components - Assist in the assessment of needs and preparation of master lists and cost estimates of items to be procured - Prepare bidding documents - Submit documents for clearance - Initiate Invitations for bidding - Evaluate bids - Prepare evaluation reports and make recommendations for awards - Expedite contract execution, inspection, acceptance certification and claims for damages when necessary 2. Civil Works (in the case of DPWH only) - Coordinate with DECS in the assessment of needs and preparation of designs - Submit design proposals for clearances to GOP and the Bank (in this particular case, standard school designs would be reviewed by Bank staff only during appraisal) - Initiate Invitations for bidding - Evaluate bids - Prepare evaluation reports and make recommendations for awards - Expedite contract execution and provide site supervision - Monitor performance of contractors and processing of payments and report to PICU - 66 - ANNEX 9 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Proiect Implementation Coordinating Unit (PICU) Responsibilities 1. Overall Coordination - Coordinate project implementation activities - Monitor project progress - Collect data from implementing agencies - Prepare semesterly status reports - Justify budgetary requirements on behalf of the implementing agencies - Provide assistance to visiting missions - Carry out annual reviews with the Bank and DECS - Liaise with the Bank 2. Finance and Bookkeeping - Maintain separate project accounts - Make payments against project activities implemented by DECS central office - Keep implementing agencies informed of the status of their finances, particularly on loan fund utilization and balances - Monitor expenditures and loan disbursements - Prepare and submit withdrawal applications to the Bank 3. Training and Technical Assistance - Expedite implementation of all staff training components - Make arrangements for the appointment of local or foreign experts when requested by implementing agencies - Administer exchange programs for technical assistance 4. Administration - Provide general administrative support - Keep records and filing in order, purchase supplies and consumable materials for the operation of PICU - Make travel arrangements for supervision of field activities - 67 - ANNEX 10 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Disbursement Schedule and Profile Disbursement Disbursement Semesters IBRD __ _ Cumulative Profile (Z) from Fiscal Year Semester Cumulative as S of Asia Region Approval and Semester -----(US$ million)---- total Education Date 1991 lst 29.9 29.9 152 0? 1 2nd 44.9 74.8 37Z 3S 2 1992 1st 37.6 112.4 562 6S 3 2nd 37.6 150.0 752 10? 4 1993 1st 26.0 176.0 88t 14Z 5 2nd 16.0 192.0 96Z 22Z 6 1994 1st 8.0 200.0 100? 34? 7 2nd 46Z 8 1995 1st 582 9 2nd 66? 10 1996 1st 74? 11 2nd 822 12 1997 1st 86? 13 2nd 94? 14 1998 1st 0OOS 15 Closing Datet December 31, 1993. - 68 - AME 31 PHILIPPINES SECOND ELEMENTARY EDUCATION PROJECT Selected Documents Available in the Project File A. Reports and Studies Related to the SectorLSubsector 1. Department of Education, Culture and Sports The Outcomes of Philippine Elementary Education, 1976 Research Report on the Philippine School Cost Study, 1983 The Determinants of Learning in Philippine Elementary Schools, 1986 Philippine Education Indicators 1965-85, 1986 Statistical Bulletins, School Years 1984185, 1985/86 Pupil Progression in the Elementary Grades, 1987 2. National Economic Develooment Authority Philippine Yearbook, 1983, 1985 Medium-Term Development Plan 1987-92, 1987 B. Reports and Studies Related to the Proiect 1. Department of Education, Culture and Sports Proposal for an Education Sector Project, 1989 C. Working Papers 1. C. Currin, 'Teachers and Teacher Education in the Philippines,* 1989 2. V. Demetriou, School Buildings, Desks and Textbooks,' 1990 3. L. Dove, *Quality of Elementary and Secondary Education,* 1989 4. E. Franco, 'Strategy for Management Reforms in Education., 1989 5. Y. Hirosato, "Study of Nonformal Education in the Philippines,* 1989 6. V. Paqueo, 'On the Problem of Elementary Grade Completion,* 1989 7. J-P Tan and A. Mingat, 'Cost and Financing of Education in the Philippines," 1989 MAP SECTION IBRD 22098 CLASSIFICATION OF PROVINCES PHILIPPINES BY GEOGRAPHICAL REGIONS mbatl SECOND ELEMENTAR] I ILOCOS VI WESTERN VISAYAS It) 2 I tt7C,cOS None 4ws Akrln EDUCATION PROJECT 2 Itoco Sur 39 Capiz I La Union 40 Antt4que BATANES 4 PaWItin' Iloilontjna Ofi CORDILLERA ADMINISTRATIVE 42 Negros ccident DCS Regional Offces REGION (CAA R 4 GuLhama o Province Capitals 11 Abra VII CENTRAL VISAYAS 7 MOUrtaAn PMvi 44 Cegtu - 6 oNiational Capital I lfugao 46 Cohol 4 Bengue 47 Siquipjr Province Boundaries It CAGAYAN VALLFY VIII EASTERN VISAVAS Io Batn 4 8 Northern Samnar P - Region Boundaries II Cagayan 4 '1 Westemn Snar mh m I Asaheta 0o EastemSamar -_ _ Irternational Boundaries 1 Nueva Vizcaya - I Leyte 14 Quirito -.' Southemn Leyte I T_ Ill CENTRALLUZON S1 8llral' I _ Oj oll-an 1 '1 Nueva Edia IX VEiTERN MINDANAO - _z t6 TaIac i4 ZambOanp del Norte I\ 17 Zalse 1,,5 Zamboanga del Sut S'FeoO 2'0 , 1tS Pznpanga 56 1an I 9 BMfl21 37Sulu a is' 2 2 19 Batatn 57 Siu ( I 1 \ 1~4/ MN.ESO 0 50 100 150 200 6 20 Bulaan 5 Ttawiuwi - _\ /t NATIONAL CAPITAL X NORTHIERN MtINDANO 4 RE ION tNCRI) s Surigao del Norte _ b IV SOUTHERN TAGALIr, 60 Camiguln I ° h25 '1 21I Aumor 61 Agusan del Norte I 22 Queson 62 Mlsainis Orital u | 0 Z 2.1 Rizal 63 Misamnis Ocddentl at ie * 24 Cavlte 64 B8ktdoon ° I - / o tol'! . 2 Laguna 63 AJ mat del Sur 26 Ramangat XI SOUTHERN MiN aoANAO 2 Yai 27 Marinduque 66 Surlgao del Sur 218 Mindoro Orienta 67 Davao Orienlai w 2 | et V 29 Mindoro Occidental b9 Oavao dei Nort .. 2 22 0 CATANDUANES 30 Romhtloti 6 9 Davao del Sur - TND1NE 31 Palawan 70 South Cotabato /- . 3) 34 V 8ICOL Xl CENTRAL MINDANAO opt" 32 Cauaines Nonte 71 Lanao del Norte -