Document of The World Bank Report No. 18997 - GH PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR23.7 MILLION (US$32.0 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR THE NATIONAL FUNCTIONAL LITERACY PROGRAM May 18, 1999 Human Development III Country Department 1O Africa Region GHANA NATIONAL FUNCTIONAL LITERACY PROGRAM CONTENTS A. Project Development Objective ................................................................1I 1. Project development objective ................................................................. I 2. Key performance indicators ................................................................. 1 B. Strategic Context .................................................................I 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project ........... ...........1 2. Main sector issues and Government strategy ................................................ ................ 1 3. Sector issues to be addressed by the project and strategic choices ...............................................3 C. Project Description Summary ................................................................5 1. Project components ................................................................ S5 2. Key policy and institutional reforms supported by the project . ....................................................5 3. Benefits and target population .................................................................6 4. Institutional and implementation arrangements . ................................................................6 D. Project Rationale ................7 1. Project alternatives considered and reasons for rejection ...........................................................7 2. Major related projects financed by the Bank and/or other development agencies ............ ...........8 3. Lessons learned and reflected in the project design ....................................... ...................9 4. Indications of borrower commitment and ownership .......................................................... 10 5. Value added of Bank support in this project ..................................... . 10 E. Summary Project Analysis ...................................... 10 1. Economic ..................................... 10 2. Financial ..................................... 13 3. Technical ..................................... 13 4. Institutional ...................................... 13 5. Social ...................................... 14 6. Environmental assessment ...................................... 14 7. Participatory approach ...................................... 14 F. Sustainability and Risks ...................................... 14 1. Sustainability ..................................... 14 2. Critical Risks ..................................... 16 3. Possible Controversial Aspects ..................................... 17 G. Main Loan Conditions ....................................... 17 1. Effectiveness Conditions ...................................... 17 2. Other ..................................... 17 H. Readiness for Implementation ..................................... . 17 1. Compliance with Bank Policies ..................................... 17 Annexes Annex I. Project Design Summary Annex 2. Detailed Project Description Annex 3. Estimated Project Costs Annex 4. Cost-Effectiveness Analysis Summary Annex 5. Financial Summary Annex 6. Procurement and Disbursement Arrangements Table A. Project Costs by Procurement Arrangements Table B. Thresholds for Procurement Methods and Prior Review Table C. Allocation of Credit Proceeds Annex 7. Project Processing Budget and Schedule Annex 8. Documents in Project File Annex 9. Statement of Loans and Credits Annex 10. Country at a Glance Map IBRD No. 23606 GHANA National Functional Literacy Program Project Appraisal Document Africa Country Department 10 Date: May 18, 1998 Team Leader: Irene Xenakis Country Director: Peter Harrold Sector Manager: Helena Ribe Project ID: GH-PE-974 Sector: Education Lending Instrument: SIL Theme(s): Functional Literacy Poverty Targeted Intervention: [X] Yes [ ] No Project Financing Data [ ] Loan [X] Credit [] Grant [ Guarantee [ Other [Specify] For Loans/Credits/Others: Amount (US$m): 32.0 Proposed terms: [ ] To be defined [ ] Multicurrency [ ] Single currency [ ] Standard Variable [X] Fixed [ ] LIBOR- based Grace period (years): 10 Years to maturity: 40 Commitment fee: max.0.5 % Service charge: 0.75 % Front-end fee on Bank loan: Financing plan: Source Local Foreign Total Government 13.5 0.0 13.5 IBRD IDA 15.0 17.0 32.0 Other (specify): Districts/Communities 0.5 - 0.5 Total: 29.0 17.0 46.0 Borrower: The Government of Ghana Guarantor: Responsible agency: Non-formal Education Division/Ministry of Education. Estimated disbursements (Bank FY/US$M): FY 2000 2001 2002 2003 2004 2005 Annual 4.0 6.0 6.0 6.0 6.0 4.0 Cumulative 4.0 10.0 16.0 22.0 28.0 32.0 Project implementation period: 2000-2004 Expected effectiveness date: November 1, 1999 Expected closing date: December 31, 2004 Implementing agency: Non-formal Education Division/Ministry of Education Contact person: Mr. A. A. Akuoko, Acting Director Address: Non-Formal Education Division/MOE, Literacy House, Accra, Ghana Tel: 233-21-231-663 Fax: 233-21-231-664 E-mail: A: Project Development Objective 1. Project development objective: (see Annex 1) This operation will support the National Functional Literacy Program (NFLP) carried out by the Non- Formal Education Division/ Ministry of Education (NFED/MOE). Its principal objective is to increase the number of Ghanaians adults (15-45 years), particularly women and the rural poor, who acquire literacy and functional skills. For the purposes of this program a functionally literate person is "one who can engage in activities in which literacy is required for effective functioning of his/her group and community and also for enabling him/her to continue to use reading, writing and calculation for his/her own and the community's development."1 The NFLP seeks to achieve this objective by providing a quality basic functional literacy program in selected national languages, creating a literate environment, and strengthening institutional capacity for program implementation, monitoring and evaluation. 2. Key performance indicators: (see Annex 1) Program performance will be monitored through several objectively verifiable indicators of literacy skills, knowledge utilization, and improved attitudes and practices in areas such as family health, community participation, and agricultural activities. The Program will: (i) monitor the number of learners enrolling in the classes and the percentage achieving a basic level of literacy, and (ii) compile periodic learner assessment to evaluate the impact of development activities on learners' knowledge, attitudes and practices. Based on the experience gained during the first phase of the Program, the NFLP envisages that about 70% of learners will complete the program successfully and that 60% of new literates will be women. To the extent that illiteracy is highly correlated with location, income level and gender, the literacy program provides an opportunity for illiterate adults, especially women in rural areas, to improve their human capital and become more productive members of civil society. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 17002-GH Date of latest CAS discussion: September 4, 1997 The objective of Ghana's Country Assistance Strategy (CAS) is to improve the quality of life for all Ghanaians, generate employment, and reduce poverty by accelerating broad-based economic growth and by implementing direct poverty-reduction measures for those individuals not participating in the growth process. The Bank is supporting the Government's development agenda by emphasizing programs that improve the quality, access and sustainability of social services and by promoting faster agricultural growth. In the education sector, the Bank's existing and proposed investments focus on improving the quality of functional literacy programs, basic education, and post-basic education and training programs, including tertiary education. 2. Main sector issues and Government strategy: Since the mid-1980s, the Government has been committed to expanding and improving education and as a result public expenditure on education doubled between 1987 to 1997. As a proportion of GDP, annual education spending increased from 1.4% in 1983 to 4.0% in 1997. Basic education receives roughly two- thirds of the recurrent education budget (Ghana Education Finance Study, 1998). The NFLP receives substantial political support, but has been allocated only 0.68% of the public resource envelope for 1999 (MOE/MTEF, 1998). I UNESCO definition of functional literacy. 2 Sector issues (a) Illiteracy rates remain high among the poor, especially among poor women. In 1997 the national adult illiteracy rate was estimated at 52% -- 38% for men and 64% for women -- while the absolute number of adult illiterates was estimated at four million. Adult illiteracy is highly correlated with location, income level, and gender. In rural areas, 74% of household heads in the poorest quintile have never attended school, compared to 15% in the richest quintile. Among rural women in the poorest quintile, 84% are illiterate, compared to 53% for those in the-richest quintile. Although illiteracy is somewhat lower in urban areas, the association between illiteracy and poverty remains. Sixty-two percent of urban household heads in the poorest quintile have never attended school compared to only 4.5% for households in the richest quintile. Among urban women in the poorest quintile, 70% are illiterate compared to 24% for women in the richest quintile (Core Welfare Indicators Questionnaire (CWIQ) Survey, 1997). (b) There is a continuous flow of young people lacking basic literacy skills, especially girls and children in very poor households. Low primary school enrollment and completion rates, coupled with poor learning achievement, produce a continuous flow of young people joining the stock of illiterate adults. Although primary school enrollment rates have increased slightly since 1989, they are far from universal, especially for girls or children in very poor households. In 1993, the overall primary school admission rate was 81% for girls and 90% for boys, while only 60% of children from very poor households enrolled. Moreover, not all children who enter primary school complete the cycle. In 1993, the completion rate was 79% for girls and 88% for boys. Additionally, student achievement is low even among students who complete primary education. In 1996 a criterion referenced test administered to 5% of the students in grade six indicated that only 5.5% of those tested reached mastery levels in English and 1.8% reached a similar level in mathematics. More recent data continue to show wide gaps in educational attainment, especially by income level and region. In 1997 only 28% of poor children in rural areas had completed at least primary school, compared to 64% of non-poor children. These differences carry over to urban areas, where 44% of poor children complete primary school compared to 78% of non-poor children. (c) The quality and relevance of the functional literacy program need to improve. NFLP needs to focus more systematically on program quality and responsiveness to learners' needs. A 1997 Beneficiary Impact Assessment (BIA) indicated that the NFLP improved the learners' literacy skills and self-esteem and heightened their awareness of choices in such areas as family planning, personal health and hygiene, agricultural practices, preservation of the environment and civic issues. However, the evaluation of the first phase of the Program strongly recommended that program quality be improved before the scope is expanded. Areas recommended for improvement include: relevance to learners' needs and expectations; selection and training of facilitators and supervisors; the regular conduct of classes; the length of class contact and quality of instruction; instructional supervision; the quality and availability of instructional and reading materials; and program monitoring and evaluation. Little is known about the quality, relevance and impact of other literacy programs in Ghana. (d) There is need to sustain literacy skills through creation of a literate environment. There is a limited selection of reading materials available to neo-literate adults. Phase I supported production of reading materials in the 15 languages to ensure new literates will not lose their acquired skills. To this end, NFED financed the publication and distribution of community newspapers, subsidized the production costs of the Ghana Book Publishers Association (GBPA) for selected titles and languages, and encouraged local communities to produce their own reading materials using low-cost silk-screen technology. In practice, however, centralized procedures delayed production and distribution of newspapers, and collaboration with GBPA did not work out as envisaged. Local newspaper production using silk-screen presses, however, is now working well in some districts. 3 (e) NFED's institutional role and capacity to deliver a quality national literacy program need to be strengthened. NFED's role and mandate to implement the NFLP, promote and coordinate literacy initiatives, and set priorities for non-formal education need to be strengthened. Only recently was NFED granted autonomous status within MOE. Its unclear status had created insecurity among seconded staff; NFED has often had difficulty recruiting and retaining competent staff, and wasted capacity building as trained staff left NFED. Centralized program management and internal inefficiencies combined with limited budget have further aggravated the problem. In general, NFED's capacity to implement, monitor and evaluate the program has been weak. (f) Collaboration among literacy providers needs to be strengthened Although NFED is the main provider of literacy classes in Ghana, the number of NGOs involved in various types of adult literacy activities is growing. The content and focus of their activities range from religion, to gender equity to rural development. Literacy providers include: (i) independent providers that organize their own classes and activities independently from NFED; (ii) those that organize their classes independently, but rely on NFED for some form of support (e.g., primers, training, supervision); and (iii) organizations that do not provide literacy services, but contribute to NFED's delivery (e.g. mobilizing learners, providing input for development activities). There is an increasing recognition among all stakeholders of the need for collaboration and coordination of literacy activities. Government Strategy In 1990 the Head of State declared the eradication of adult illiteracy as a national priority, and in 1991 the Government sought World Bank assistance to finance the NFLP Program to achieve this result. The Program's main objective was to improve economic opportunities and quality of life for the most vulnerable and disadvantaged Ghanaians. The Program has already achieved considerable success and helped reduce the national illiteracy rate from 69% in 1989 to an estimated 52% in 1997 (Ghana Living Standard Survey, 1989 and CWIQ, 1997). The Government remains committed to its original objective to eradicate illiteracy, and has thus adopted a two-pronged strategy: (a) Increase access and improve the quality of basic education to stem the flow of young people who reach adulthood illiterate. This strategy involves reducing gender and regional disparities in access to basic education; improving instructional practices in schools; providing instructional materials; strengthening teacher development; fostering community involvement in school management; and building institutional capacity for organizational analysis and change. The Free Compulsory Universal Basic Educational (FCUBE) program was launched in 1996 to address these issues. (b) Improve the quality and cost-effectiveness of the NFLP to ensure sustained literacy and functional skills. This includes providing a basic literacy and functional skills package to illiterate adults; improving program monitoring, evaluation and research; expanding the English literacy pilot classes; enhancing NFED's collaboration with other literacy providers; and strengthening NFED's capacity to manage and monitor the Program. 3. Sector issues to be addressed by the program and strategic choices: Building on lessons learned and achievements from the previous phase, the proposed operation will address issues of program quality and delivery as follows. 4 Emphasis on Program Quality and Relevance (a) Providing a good-quality basic literacy program to targeted illiterate adults As illiteracy is highly correlated with location, income level, and gender, the Program will target mainly the poor and women living in rural areas. Women's enrollment and completion rates will be monitored closely to ensure that at least 60% of the beneficiaries are women. The strategic choices include: * Designing a literacy program that targets specific groups of illiterates versus a program without specific targets. According to the Constitution of Ghana, the National Literacy Program is open to all adult Ghanaians. Nonetheless, the experience to date is that the program is self-targeting, as illiterates are primarily poor and female (particularly among the 25-45 age group). As these specific groups are the main beneficiaries of the Program, the basic literacy package is designed to be relevant to their needs. * Pursuing quality versus quantity. Although it is estimated that about four million adult Ghanaians remain illiterate in their national language (there are 55 national languages in the country), the Implementation Completion Report (ICR) on the previous phase concludes that, in the next phase of the Program, quality must be improved before further expansion. (b) Sustaining literacy skills The Program will support several mechanisms to build a literate environment through the development and production of low-cost reading materials under a decentralized system. The strategic choices considered include: . Maintaining newspaper production in 15 national languages at the center versus decentralizing production to regional/district levels. The evaluation of Phase 1 and a recent research study suggest that central production of materials, particularly of newspapers in national languages, is inefficient and time-consuming (often with long delays in production and distribution); and that there is scope for increased decentralization and private sector involvement in the production of easy-to-read stories, community newspapers, and materials geared to the reading-level of new literates. The proposed Program will seek to establish regional materials production committees to oversee the development and production of materials at the regional level. 3 Supporting NFED to develop reading materials in the 15 program languages versus purchasing materials from other literacy providers and involving commercial publishers. Enhanced effort is being made to purchase appropriate materials from all available sources and to limit NFED's role in this area. . Involving learners in the production of simple reading materials in class versus using only materials produced by others. The Program will support classes to produce their own materials through the use of low-cost, silk-screen presses. Strategy for Service Delivery (a) Strengthening NFED's institutional role and capacity to deliver a good-quality program. The operation will support NFED's official establishment, human resource development (HRD) strategy and staff decentralization. It will also strengthen NFED's capacity for monitoring, evaluation and research to improve Program effectiveness and impact. The strategic choices include: * Continuing to manage the Program at the national level versus decentralizing the implementation of selected activities (e.g. logistics, training, supervision, consumable material, and resource management). Lessons form the previous phase support the decentralization of program implementation and supervision supported by stronger community involvement. • Building in-house capacity for or contracting-out selected program activities. While strengthening in-house capacity through training and technical support, the Program will contract out several activities, for which NFED does not have a comparative advantage. 5 (b) Fostering collaboration and complementarity among literacy providers. The Program will foster greater collaboration and complementarity among literacy providers. The main strategic choice considered here is whether NFED should use the NFLP as the framework for strengthening the national literacy effort and ensuring partnerships among literacy providers, versus continuing to undertake nearly all activities on its own. Specific modalities for expanding support to NGOs and others were agreed during appraisal. C: Project Description Summary The Program aims at delivering good-quality and cost-effective basic functional literacy skills in 15 national languages and English, with a focus on: (i) enhancing NFED's management capacity; (ii) monitoring and evaluating outcomes supported by research and tracer studies; (iii) ensuring access to reading materials in local languages; (iv) improving and possibly expanding radio support to literacy classes; (v) collaborating with one or two local non-governmental groups to assist literacy groups to obtain and manage commercial loans for income generating activities; and (vi) fostering partnerships with stakeholders, including non-NFED affiliated literacy providers, NGOs, communities, and district assemblies to improve and sustain the program delivery. 1. Project components: (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown) Indicative Bank- % of Component Sector Costs % of rinancing Bank- (USSM) Total (US$M) financing 1.Basic Literacy and Development Institution Building 27.6 60 21.3 67 Activity Program 2.English Pilot Institution Building 1.0 2 0.9 3 3.Literate Environment Institution Building 1.2 3 1.0 3 4.Monitoring, Evaluation and Project Management 1.4 3 1.4 4 Research Program 5.Radio Institution Building 2.0 4 1.9 6 6.Management and Institutional Project Management 5.3 12 5.0 16 Enhancement Institution Building 7.Non-Formal Education Division/a Project Management 7.0 15 0.0 0 8. Project Preparation Facility 0.5 1 0.5 1 Total 46.0 100 32.0 100 Total may not add up due to rounding; costs include contingencies. a. Salaries and administrative costs estimated on the basis of the 1999 MTEF for NFED assuming 3% nominal annual growth. 2. Key policy and institutional reforms supported by the project: (a) Developing a medium-term national policy framework for Non-Formal Education; (b) Introducing strategies for quality enhancement through improved instruction, facilitator and supervisor training, material development, enhanced supervision (including community oversight), and strengthened capacity to use radio to support the Program; (c) Establishing effective monitoring and evaluation systems to assess both learner achievement and implementation bottlenecks; and to learn from innovations; (d) Decentralizing selected aspects of program management and supervision activities to the regions/districts; strengthening management and implementation capacity to deliver Program activities; and 6 (e) Encouraging partnerships with other literacy providers and communities to promote functional literacy initiatives. 3. Benefits and target population: The Program will benefit an estimated one million learners over the next five years, 60% of whom will be women; and target areas with high rates of illiteracy and poverty (North and rural areas). Since illiteracy is highly associated with poverty, a reduction in the adult illiteracy rate will contribute to reducing the prevalence of poverty in the country. The BIA and other assessments of the previous phase found important social benefits to participating in the literacy classes, beyond the acquisition of literacy and numeracy skills. These include: increased self-esteem based both on the ability to read and the functional knowledge gained; greater awareness of health issues such as proper sanitation and AIDS prevention, as well as of other development-related issues taught in the classes; and some evidence that participation was associated with increased primary school enrollment, particularly among the girls. In some areas, the broader community also benefited through development projects, such as reforestation and latrines, undertaken by classes. 4. Institutional and implementation arrangements: (a) Implementation period: Five years. (b) Executing Agency: NFED/MOE (c) Project Coordination: The NFED Management Team, led by the NFED Executive Director, will have prime responsibility for overall Program coordination. The role, responsibilities, and functions of NFED groups at national, regional, and district levels are included in the PIP. The NFED Management Team and the MOE Funds and Procurement Management Unit (FPMU) staff will monitor implementation progress quarterly. (d) Procurement implementation: The FPMU will be responsible for procurement planning and implementation and contract administration following procedures acceptable to IDA. NFED and FPMU will together be responsible for preparing a two-year rolling plan for procurement activities as part of the Annual Work Plan (AWP). An independent procurement consultant will be engaged under the credit to conduct annual audits under terms of reference acceptable to IDA (see Annex 6). (e) Accounting, financial reporting, and auditing arrangements. The FPMIJ will be primarily responsible for the Program financial management, reporting, and auditing following systems and procedures acceptable to IDA. NFED will strengthen its financial management capacity (systems and staff) to be able to prepare quarterly Project Management Reports acceptable to IDA within 20 months from credit effectiveness and, at that time, will assume prime responsibility for the Program financial management. Accounting records will be kept for all project-related expenditures and financing following generally accepted accounting principles. Project accounts will be audited annually, following international auditing standards, by independent auditors acceptable to IDA. An annual audit report will be submitted to IDA within six months after the end of each fiscal year. The project special account will be managed by FPMU, with the NFED Executive Director as co-signatory. NFED's decentralized administration will be complemented with decentralized financial management controls and procedures at district and regional levels acceptable to IDA. MOE will implement a time-bound action plan to strengthen FPMU and NFED's financial management systems and staff (see Annex 6 for agreed financial management action plan). (f) Monitoring and evaluation (M/E) arrangements: NFED will be primarily responsible for the Program M/E and guided by: (i) the Project Design Summary/Logframe (Annex 1); (ii) the PIP; and (iii) Annual Work Program (AWPs), including two-year rolling activity plans, procurement schedule, budget 7 estimates, and financing requirements. The Program M/E arrangements include: (i) annual Program implementation reviews, including a Program Mid-Term Review (MTR) by June 30, 2002, conducted jointly by GOG, IDA and other stakeholders; (ii) quarterly implementation progress reviews by NFED and FPMU; (iii) periodic monitoring and field supervision visits by NFED; and (iv) learner assessments, tracer studies and MIS reporting. M/E reports by NFED include: (i) an annual report on implementation progress, accomplishments and monitoring and evaluation results for the preceding period, including recommendations for improving the Program performance, as v .i I as draft AWP for the following year; and (ii) quarterly Project Management Reports. Key performance indicators for monitoring the AWP implementation pertain to learner achievement and program targeting (see Annex 1). An Implementation Completion Report (ICR) will be prepared within six months after the Credit closing. NFED will contribute to the ICR its own evaluation of the project and an operational plan for continued support to the Program after the closing of the Credit. D: Project Rationale 1. Project alternatives considered and reasons for rejection: (a) Designing the NFLP to be implemented by NGOs, religious organizations and/or communities that would be monitored by the Government. At present this option is not feasible given the limited capacity of the NGO sector to deliver a Program of this magnitude and quality. In the near term, NFED will continue to take lead responsibility for the quality of the Program while strengthening collaboration with other literacy providers, communities, district assemblies and other stakeholders. (b) Providing facilitators with incentives in cash. This will have eliminated the need to procure and distribute the incentives in kind (currently sewing machines and bicycles) and the problems experienced in the previous phase. NFED has rejected this option due to concerns that monetary compensation, like salaries, may be subject to demands for regular adjustments. NFED opts to continue the current practice of providing incentives in kind at the completion of the literacy cycle, but with greater variety of items for the facilitators to choose from, and management at district rather than headquarters level. Periodic incentives, such as sugar and flour, are to be provided by the communities. (c) Conducting learner assessments covering all classes in each cycle. Lessons from Phase I suggest that learner assessments covering all 8,000 classes (about 200,000 learners per cycle) are expensive exercises of mixed quality. Instead, Phase II will include a simple self-assessment of all learners at entry and exit. More in-depth learner assessments will be targeted at a small number of classes (about 50 each year) based on a representative sample. These will provide the basis for tracer studies to evaluate changes in functional literacy use and impact on selected development indicators such as children's schooling and family health and planning, and on selected special topics aiming at improving the quality and effectiveness of the Program. 8 2. Major related projects financed by the Bank and/or other development agencies: (completed, ongoing, and planned) Latest Supervision (Form 590) Ratings Sector issue Project (Bank-financed projects only) Implementation Development ___________________________ ________Progress (IP) Objective (DO) Bank-financed * Supported structural reforms and quality EDSAC I (Cr. 1744-GH) OED Project Performance Ratings: improvement within the coordinated Effective in April 1987 Outcome - Satisfactory framework of a sector adjustment and closed on Dec. 1991 Sustainability - Likely operation (SECAL). Focused on junior Institutional Development (ID) Impact - secondary education. Substantial * Supported the Government reform EDSAC II (Cr. 2140-GH) Outcome - Unsatisfactory program within the coordinated Signed on 6/20/90 and Sustainability - Unlikely framework of a sector adjustment closed on 12/31/94 ID Impact - Modest operation (SECAL). Most of the resources were concentrated on Senior Secondary Schools. * Increased access to non-residential COMMUNITY Outcome - Satisfactory Senior Secondary Schools in SECONDARY SCHOOLS Sustainability - Unlikely underserved areas with special emphasis CONSTRUCTION ID Impact - Modest on increasing girls enrollment in PROJECT (Cr. 2278-GH) secondary technical schools. Signed on 7/08/91 and closed on 6/30/95 * Supported and consolidated the ADULT LITERACY Outcome - Satisfactory Government's national functional AND FUNCTIONAL Sustainability - Uncertain literacy program in order to improve the SKILLS PROJECT (Cr. ID Impact - Modest quality of life of the poorest Ghanaians, 2349-GH) Signed on especially those in the rural areas. 4/22/92 and closed on 12/31/97 * Supported the first phase (1992-96) of TERTIARY Satisfactory Satisfactory the Government's tertiary education EDUCATION PROJECT reform program, with stress on (Cr. 2428-GH) improving the quality of teaching and Signed on 11/09/92 and learning; improving management scheduled to close on capacity; increasing autonomy with 9/30/98 accountability for the universities; and expanding enrollments gradually. * Assisted the Government in increasing PRIMARY SCHOOL Satisfactory Unsatisfactory learning achievements and enrollments in DEVELOPMENT primary schools throughout the country. PROJECT (Cr. 2508-GH) Signed on 7/26/93 and closed on 12/31/98 * Redirecting the focus of both public and VOCATIONAL SKILLS Satisfactory Satisfactory private vocational training institutions PROJECT (Cr. 2695-GH) towards demand-driven training, Signed on 6/30/95 and improve informal sector product quality scheduled to close on and productivity in five occupational 6/30/2001 areas, and create institutional capacity. 9 Latest Supervision (Form 590) Ratings Sector issue Project (Bank-financed projects only) Implementation Development Progress (IP) Objective (DO) . Improve the teaching process and BASIC EDUCATION Unsatisfactory Unsatisfactory learning outcomes; strengthen planning, (Cr. 2885-GH) monitoring and evaluation activities at Signed on 7/16/96 and central, regional, district and school scheduled to close on levels; improve access to basic 06/30/2001 education, especially of girls, the poor and other disadvantaged segments of the population; and ensure financial sustainability of the Government program for basic education over the longer term. . Increase access to and improve the POST-BASIC planned planned quality of post-basic education. EDUCATION APL . Test mechanisms focused on nutrition/ COMMUNITY planned planned food security, street children, and DEVELOPMENT LIL poverty program monitoring and To be negotiated evaluation. April/May 1999 Other development agencies . Basic education USAID, DFID, UNICEF, GTZ, JICA, and EU • Tertiary education ADB . Vocational school development GTZ * Teacher Education France . Technical and vocational education Japan . Vocational training Institutional UNDP/ILO strengthening IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: The Implementation Completion Report for Phase I identifies the following key lessons: (a) Literacy interventions need to be continually monitored to ensure that they are effective. Monitoring and evaluation systems need to be established from the start of the project, with baseline data and clear indicators to assess learning achievement and other benefits. The timely collection and processing of relevant and reliable data is critical for assessing the impact of the project and for making necessary adjustments. Applied research and the application of research findings are critical for increasing the effectiveness of the project. The program design includes learner assessments, tracer studies and research as well as the relevant instruments. NFED's capacity will be strengthened through training and technical assistance. (b) The Program must respond to learners' needs, allow flexibility for adjustments to local conditions, and operate within a framework of agreed parameters and indicators of quality (i.e., duration of instruction, class attendance, learning outcomes). The second phase of NFLP will maintain its flexibility to ensure local conditions are reflected in the scheduling of classes and the relevance of learning and 10 teaching materials. Greater emphasis will be placed in defining program success and monitoring learners, primarily through an enhanced MIS, learner assessments and tracer studies. (c) The results of the BIA showed that learners want to acquire skills and practices that will allow them to increase their social and economic potential, yet concluded that acquiring new knowledge did not often translate into behavioral change. For the second phase, periodic information on knowledge, attitudes and practices will be collected, analyzed, and incorporated into the program. Greater collaboration with NGOs, donors, and the Ministries of Health and Agriculture will also be sought. (d) Offering rewards to facilitators for their good performance has been effective, even though project management has had problems in delivering them. The Program will continue providing facilitators incentives in-kind, but of a greater variety to maintain their motivation over the longer-term. Appropriate criteria will be used uniformly to select and reward facilitators. (e) Efforts to establish a literate environment have been disappointing. A number of actions will be taken to facilitate production of reading materials: (i) newspapers will be produced locally rather than centrally; (ii) production of easy-to-read books will be organized by NFE regional coordinators; and (iii) greater attention will be given to training in the use of silk screen presses, so that learners can produce materials of their own. Key relevant lessons from other literacy programs include: (a) Attention should be given to quality and careful targeting through site and beneficiary selection criteria, involvement of local govemment and community groups, and increased reliance on financial institutions managing funds for income generating groups (Indonesia - Second Nonformal Education Project, World Bank OED, Report No. 09850, 1991); (b) A close relationship between fornal and non- formal education is desirable (Indonesia - Non-Formal Education Project, World Bank, OED Report No. 06304, 1986). 4. Indications of borrower commitment and ownership: Government commitment to the NFLP is demonstrated by the fact that the Government of Ghana (GOG) continues to finance the Program even after the closing of the IDA credit. Nonetheless, without a greater allocation of resources, it will be difficult to maintain the current level of service delivery or to enhance its quality. GOG has obtained a PPF to support preparation activities and is taking steps to meet the conditions for credit effectiveness. 5. Value added of Bank support in this project: Since 1991 IDA has been supporting GOG in the development and implementation of the NFLP. The value-added of Bank support includes the Bank's own experience in similar projects and access to worldwide knowledge. IDA's continued support to the Program also contributes to the poverty reduction and promotion of gender objectives. E: Summary Project Analysis: (detailed assessments are in the project file, see Annex 8) 1. Economic: (supported by Annex 4) [X] Cost Effectiveness Analysis Effectiveness is measured as achieving the proposed final product of the project in a satisfactory manner, i.e.: literate adults who complete the literacy cycle and sit for a test. For the costing, all the processes required for establishing/running the program are taken into account. The analysis is simple, the unit cost expected for producing a literate adult is stated. A list of unit costs for similar programs in other 11 countries appears in Annex 4. While existing information to assess effectiveness of the proposed Program is limited, establishing a close monitoring/impact evaluation system during implementation will help assess alternative ways of effective program delivery. To the extent that one type of program achieves better results than another or has different costs, adjustments could be made to improve cost- effectiveness. Phase I The main benefit of Phase I was to provide reading, writing and numeracy skills to its beneficiaries. About seventy percent of those initially enrolled completed the course. A learning assessment was administered to program completers in 1997. Of the 80% who completed, the mean score was 70 points out of 100. The assessment tested neo-literates on: writing, reading comprehension, numeracy, cognitive, attitude, and functionality skills.2 The unit cost per enrolled learner for Phase I was US$24 for the 21- month cycle, while the unit cost per successful literate graduate was US$43. Phase II The main benefit of Phase II will continue to be providing basic literacy skills for illiterate adults. The projected unit cost per enrolled learner is estimated at US$38 for the 21-month literacy cycle while the cost per successful learner is estimated at US$53, which takes into account a drop out rate of 20% and successful learning outcomes for at least 90% of graduates. Higher costs than in Phase I are associated with the introduction of additional inputs to enhance program quality (e.g., stronger class supervision, more and improved materials). To further improve the effectiveness of Phase II, the Program will use results of assessments to adjust its operations. Periodic impact evaluation studies of both NFED and non- NFED classes are planned to identify how and where the most effective actions are undertaken, and at what cost. Tracer studies will be introduced to assess the long-term sustainability of acquired skills, the program's impact on earnings, attitude and behavior. The program's impact will also be monitored through the CWIQ Survey3 and monitoring records in health centers. Since literacy may bring direct economic benefits to learners, evidence of such benefits could be used to further justify investment. While direct measurement of the monetary benefits or employment patterns of literacy programs in Ghana is not currently feasible due to lack of data on literacy program graduates, there is information available on illiterate adults allowing for comparison of their earnings with those of adults who have reached initial basic literacy (using four years of formal primary schooling as a proxy)4. This analysis will provide a reference ceiling on the monetary benefits that can be accrued from literacy programs. The data used for this analysis is the 1991/92 Ghana Living Standards Survey (GSSL3), the results of which indicate that earnings of basic literates (using the proxy described previously) are higher than those of individuals with no education. A conventional rate of return analysis using the differential in the earnings profiles yields a private rate of return of 43% for females and 24% for males, and a social rate of return of 18% for females and 14% for males (this analysis is available in the project files). 2 The total possible score on the assessment was 100, which represents the sum of the total possible scores in each of six sections. In the writing section the total possible score was 12 (actual mean score was 8.1), the reading comprehension total score was 8 (actual mean score was 5.1); the numeracy section had a total score of 20 (actual mean score was 14.7), and the cognitive, attitudinal, and functionality sections of the test had each a total possible score of 20 (mean scores were 14.7, 12.9 and 14.7, respectively). The sum of each of the actual mean scores amounts to 70. 3 The CWIQ will be adjusted to allow respondents to identify adult literacy as their highest educational attainment. This would permit a quantitative study of literacy graduates. 4 Educators generally agree that 3-4 years of primary schooling is a reasonable proxy to estimate basic literacy. 12 2. Financial: (see Annex 5) Fiscal impact: Financial Sustainability. The type of literacy program that GOG proposes to undertake for the next five years has an annual cost of about US$9 million per year. While it can be reasonably expected that improvements in access to and quality of formal schooling may reduce the need for remedial literacy for the younger school cohorts, exhausting the pool of adult illiterates is not foreseeable within the next decade. Long-term sustainability of the program is an issue that will have to be revisited in the future. Under the proposed financing plan, GOG will have to allocate about US$13.5 million (including estimated taxes and duties of about US$2 million) from its own resources over the next five years in order to finance about 30% of the cost of Phase II. The Government's 1999-2001 Medium Term Expenditure Framework (MTEF) contains an allocation of about US$2 million per year for NFED, which represents 0.68% of the sector budget for 1999, 0.63% for 2000 and 0.55% for 2001. Education expenditure is expected to be 35-40% of total (discretionary) public recurrent expenditure during these years (MOE/MTEF, 1998). The MTEF allocation for the outer years will require a slight increase so that the total GOG allocation for the Program amounts to about US$11.5 million net of taxes and duties. 3. Technical: The proposed Program design is technically sound and appropriate for the targeted groups. It is based on the lessons learned from Phase I (1992-1997), as well as on ten studies covering key aspects of the Program. The Management Information System and the radio components depend on ordinary technology that is available in the country. Monitoring and evaluation instruments, including learner assessments, tracer studies and research, are being imbedded in the program design and developed up front. Pilot activities and improvements, e.g., in the English language and radio components, are being designed for possible scaling-up. The overall Program cost is estimated using the activity based-cost approach and data from Phase I; and reflects the cost for improvements over the previous phase in the areas of class inputs, reading materials, supervision and training costs, monitoring and evaluation and capacity building. The allowances for physical and price contingencies are based on experience and projections. 4. Institutional: (a) Executing agencies: During Program preparation, NFED's institutional capacity was assessed by independent consultants. Key among the recommendations are: (i) NFED should be "established" as an autonomous entity within MOE; NFED should assess existing staff in light of program requirements; and develop job descriptions and performance appraisals; (ii) HRD and decentralization strategies should be developed along with action plans for implementation over a period of three years. At negotiations, the Government confirmed that all required steps for the formal establishment of NFED as an autonomous entity within MOE have been completed as of May 5, 1999. In addition, agreement was reached on development of a draft Non-Formal Education policy framework by December 31, 2001. (b) Project management: The financial management and procurement capacity of NFED and FPMU has been assessed following Bank guidelines. In line with this, agreement has been reached on a time-bound action plan to improve the financial management performance of NFED and FPMU, and to strengthen FPMU's capacity for procurement implementation (see "Conditions of Effectiveness" and Annex 6). (c) Technical support. Several Program activities and improvements will need to be further developed during the first two years of Program implementation with support from qualified technical specialists with broad international experience. The Program will continue to team international consultants with local consultants and NFED staff to strengthen local capacity in all Program areas. 13 5. Social: The 1997 CWIQ survey found that 47.9% of the total population over 15 was literate while only 36.4% of the female population was literate. There are wide regional and ruraVurban variations with only 3.5% of the female population literate in rural parts of the Northern region (14.5% of the male population) and 66.4% of the female population in Greater Accra (86.5% of the male population). In terms of socio- economic groups, own-account agricultural workers have the lowest literacy rate, 35.4% (24.7% females) while public sector employees (78.9%) and private sector formal workers (73.3%) have the highest rates. NFED's target population, based on the development objectives, is illiterate adults, particularly women and residents of rural areas. NFED data show that this is the population reached by during Phase I, during which more than half of participants were women (61% during 1997), although there were significant regional variations (41% Northern Region, 76% Greater Accra). Under 5% of participants were under 15 years old. The BIA evaluation of Phase I concluded that program targeting was good and that the majority of literacy participants were poor. This conclusion should be refined in the light of the CWIQ data showing high levels of illiteracy among the non-poor population, particularly in rural areas. A potential area for research by the NFED during Phase II concerns how to ensure the poorest segments of the population benefit from the program. 6. Environmental assessment: Environmental Category [] A [IB [X] C N/A 7. Participatory approach: (a) Primary beneficiaries and other affected groups (CON): NFED has adopted a consultative approach to incorporate stakeholders in the preparation and implementation of Phase II. The first consultative workshop took place in April 1998 when the findings of the BIA and ICR on the previous phase were discussed, including assessment of results, benefits and impact on target population, perfornance of key actors, and lessons learned. (b) Other key stakeholders (COL/IS): The stakeholders include literacy providers, NGOs (e.g. ACTION/AID, 31st December Women's Movement), other ministries (e.g. Health, Local Government, Agriculture), and program implementers from the regional, district and class levels. These same stakeholders participated in a follow-on three day planning workshop to develop the logframe (Annex 1) used as the foundation for the proposed program. During the workshop, the stakeholders contributed to setting the Program objectives, scope, components, key performance indicators, and risks. The Program provides for continued consultations with these groups. (c) Communities (IS) and District Assemblies (CON/COL). The Program provides mechanisms for upstream "community entry and mobilization," and collaboration with District Assemblies, NGOs, and other organizations in the program delivery. F: Sustainability and Risks 1. Sustainability: The cost per learner is low compared to that in other similar programs. In the next five years, the Program will support substantial institutional capacity building and investment activities; e.g., expansion of radio broadcasting, that are likely to diminish over time. Among the factors that will affect the sustainability of the program are: (i) Government's ability to allocate adequate resources to the Program; (ii) NFED's capacity to ensure improved quality and cost effectiveness of the Program of services it delivers; and (iii) neo-literates' ability to sustain their literacy skills. Financial sustainability will improve through cost-effective measures built into the program and adequate GOG financing, particularly of essential inputs that ensure the quality of learning, including reading materials, facilitator/supervisor training, and supervision. Institutional capacity will be strengthened through training and out-sourcing of 14 some tasks to the private sector. Literacy and functional skills acquired by learners will be sustained through renewed and revamped efforts to promote the development of written materials in local languages. 2. Critical Risks: (reflecting assumptions in the fourth column of Annex 1) Risk Risk Rating Risk Minimization Measure From Outputs to Objective * Demand for literacy classes may cease. N . Mapping of illiteracy pockets and targeting specific groups using mechanisms such as community entry activities and NGO collaboration. As there are about four million illiterate adults in Ghana, it is unlikely that the demand for basic literacy skills will cease in the next five years. * Targeted groups may not be motivated to enroll M * Maintaining a quality program that is and remain in literacy classes flexible and relevant to current needs of beneficiaries (women and rural poor aged 15-45). From Components to Outputs * Political support may not be extended to the M * Extensive consultations and Program at all levels of the administration collaboration with all relevant Government units. Dissemination of results. * Community/civil society may not be supportive M * Entry mechanisms to involve of the Program and its developmental objectives communities/civil society in the organization and support of literacy classes. Dissemination of program success. ^ Collaborating agencies, including NGOs, may not S 4 Regular consultations and information be providing support to the Program sharing. Encourage NGOs and other literacy providers to collaborate in partnership pilots and delivery of literacy classes. . Stable and competent Program leadership may not H * NFED's institutional establishment be maintained. Program may not be able to completed. Development of HRD and hold/recruit as necessary high quality staff. staff decentralization strategy; and NFE policy framework. * Timely release of the agreed budgets by the GOG S * Agreed budgeting procedures and release of funds for the Program on the basis of two-year rolling Annual Work Plans monitored quarterly; and annual program implementation reviews. Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) 15 3. Possible Controversial Aspects: Issues concerning non-performing or unqualified NFED staff, including zonally-based supervisors. G: Main Loan Conditions 1. Effectiveness Conditions: * FPMU financial management procedures manual are operational, and qualified accounts staff (one Senior Accountant and two Accounts Officers) are in place. A professionally-qualified Principal NFED Accountant is in place (see Annex 6). * Procurement procedures manual of FPMU are operational, and qualified Deputy Director (Procurement Services) and a Procurement Officer are in place. * The learner assessment and tracer study instruments are prepared, tested, and found satisfactory. 2. Other: (classify according to covenant types used in the Legal Agreements) * Disbursement conditions for "radio" (expansion to new stations and support to the English pilot) contingent on positive findings of: (i) impact assessment study of existing radio scheme; (ii) feasibility study for radio expansion; and (iii) feasibility study for radio support to English classes. * NFED will prepare a Human Resource Development and staff decentralization strategy by December 31, 2000 and implement by December 31, 2002. * NFED will develop a draft Non-Formal Education Policy Framework by December 31, 2001. H: Readiness for Implementation [ I 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. [X] 1. b) Not applicable. [X] 2. The draft procurement documents for the first year's activities are complete and ready for the start of project implementation. [X] 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory in substance. [ ] 4. The following items are lacking and are discussed under loan conditions (Section G i: Compliance with Bank Policies [X] 1. This project complies with all applicable Bank policies. [ ] 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Team L Irene Xen Sector MAnags=11Helena Ribe Country Director: Peter Harrold 16 Annex 1: Project Design Summary GHANA: National Functional Literacy Program Hierarchy of Objectives Key Performance Indicators Monitoring and Evaluation Critical Assumptions Sector-related CAS Goal: Sector Indicators: Sector / Country Reports: (from Goal to Bank Mission) The productivity and welfare of Core welfare indicators (education, health, . Core Welfare Indicators . Government continues with Ghanaians improves. employment, household status) improved -- Questionnaire (CWIQ) its development agenda of (Baseline: CWIQ 1997) Survey; other standard broad-based social and surveys, e.g., GLSS rural development and direct poverty alleviation efforts Project Development Objective: Outcome / Impact Indicators: Project Reports: (from Objective to Goal) Increase the number of functionally At the end of each basic literacy cycle, 70% of a - Annual MIS reports and . Quality prograns in formal literate adults aged 15-45, particularly of sample of enrolled adults in each batch able to: periodic monitoring and education are provided. women and the rural poor. - read and comprehend a short essay of 3 field supervision visits (a functional literate can engage in paragraphs; (NFED) activities in which literacy is required for . write a simple one-page letter; and . Learners' assessments at effective functioning of his/her group . perform simple calculations in 4 arithmetical end of literacy cycle and community and also for enabling operations with numbers of up to one million. (NFED) him/her to continue to use reading, . have participated in development activity projects . Formative evaluations writing and calculation for his/her own . demonstrate behavioral change and civic awareness . Tracer studies (NFED) and the community's development). Output from each component: Output Indicators: Project Reports: (from Outputs to Objective 1. Basic Literacy and Development Basic literacy skills training in the selected 15 - Annual MIS reports and . Demands for literacy classes Activity Program Implemented national languages with enrollment of 200,000 periodic monitoring and continues. Literacy program is established, learners/cycle of which at least: field supervision visits . Targeted groups are operational, and providing services to the . 40% classes in the North (regions: Northern, (NFED) motivated to enroll and targeted groups. Upper-West, Upper-East) . Annual Program remain in literacy classes * 60% of classes in rural areas implementation reviews . NGOs and other providers * 60% of enrolled learners women (joint NFED/IDA) deliver literacy in Non- NFED languages. 17 2. English Pilot Expanded 2.1 English classes . Learner assessment English classes: 100, 150, 200, 400, 500 At the end of each English literacy cycle, 70% of a for years I to 5, respectively. sample of enrolled adults able to: . read and comprehend a short essay of 3 paragraphs . write a simple one-page letter 3. Literate Environment Enhanced 3.1 Number of appropriate titles per language . Annual Program Access to reading materials produced annually through regional mechanisms Implementation Reviews (Joint NFED/IDA) 4. Implemented Monitoring, MIS data complete, reliable and timely every year . same as above Evaluation and Research Program Annual learners' assessments conducted and analyzed promptly Tracer studies and impact assessments carried out as planned Research plan and pilots carried out as planned Formative evaluations carried out periodically 5. Literacy classes supported by 5.1 Quality and efficiency of existing system . same as above Radio Broadcasting improved Stage I - Existing system improved Stage II - (a) expansion to cover four more national stations and (b) English language interactive radio Triggers include: positive impact assessment of existing radio broadcasting and positive feasibility assessment for expansion and use of radio in the English classes. 18 6. Management/Institutional Capacity Enhanced 6.1.1 Annual quantitative and qualitative targets , Annual MIS reports and 1. Improved program management achieved as planned periodic monitoring and 6.1.2 Utilization of MER work to improve program field supervision visits effectiveness (NFED) . Formative program 2. Non-formal education policy 6.2 Policy framework presented at mid-term review evaluation framework developed 6.3.1 Human resource development and staff . Audit reports (independent) 3. Improved institutional capacity decentralization strategies developed and e Annual program action plan carried out during the first three implementation reviews years. (joint NFED/IDA) 4. Effective partnerships with other 6.3.2 Decentralized resource management in . NFED agreements with literacy providers/NGOs established operation NGOs . Annual database of literacy 5. Professional facilitation of Income 6.4 Increased collaboration with NGOs and other providers Generating Activities providers . NFED agreements with 6.5Number of literacy groups obtained micro-credit selected NGO for training by the end of the Program. 19 Project Components/Sub-components: Inputs: (budget for each component) Project Reports: (from Components to Outputs) 1. Basic Literacy and Development US$27.6 . same as above . Political support extended to Activity Program the Program at all levels . Community/civil society are 2. English Pilot US$1.0 supportive of the Program and its developmental 3. Literate Environment US$1.2 objectives . Collaborating agencies, 4. Monitoring, Evaluation and Research US$1.4 including NGOs, are Program providing support to the Program curriculum 5. Radio US$2.0 . Stable and competent Program leadership 6. Management and Institutional US$5.3 maintained Enhancement . Program able to hold/recruit as necessary high quality 7. Non-formal Education Division US$7.0 staff. . Timely release of the agreed 8. PPF US$0.5 budgets by the GOG . Facilitators (basic literacy and English classes) sufficiently motivated * Micro-credit is available to enable people to be more productive. 20 Annex 2: Project Descriptions Ghana National Functional Literacy Program The proposed credit will support the Government's National Functional Literacy Program over the next five years. Preparation of the Program components was facilitated by ten studies (financed under a Japanese grant). These studies focused on the following areas: Basic Literacy; Evaluation of the English Pilot; Creation of a Literate Environment; Monitoring, Evaluation, Research and Supervision; Radio Broadcasting; Management and Institutional Capacity; Non- formal Education Policy; Financial Management; Mapping of Literacy Providers; and Evaluation of Income Generating Activities. The findings of these studies were presented to a broad-based group of stakeholders in Ghana, have been incorporated into the design of the Program components described in this annex, and will be used as base-line references during implementation. Project Component 1 - Basic Literacy and Development Activity Program --US$27.6 million a) Current situation. This component has formned and will continue to form the core of the Program. Its main objectives are to teach basic literacy, numeracy and functional skills in 15 Ghanaian languages. Classes meet for at least six hours per week, over a 21-month period (assuming classes will not take place during planting and harvesting seasons), which should result in a total of 300-plus instructional hours. During Phase I approximately 1.3 million learners enrolled in the program. The 1997 assessment of learning achievement indicated that the assessed learners obtained a mean score of 70 (out of 100). During Phase II, program scope will be held essentially constant up to 200,000 learners/cycle, and the length of a cycle will remain at 21 months. At the same time, effort will be made to improve the quality of every aspect of program implementation. The target population will remain the same; i.e., it will continue to include learners between 15 and 45 years of age, with a focus on women and on people living in rural areas. Classes will continue to be taught by volunteer facilitators, who are to be nominated by their communities to lead the classes, and be supervised by NFED staff located at the zonal (sub-district) level. In order to reinforce some of the development messages contained in the primer (e.g., how to keep drinking water clean, how to improve nutritional status, how to treat severe diarrhea), the Program will continue to incorporate "development activities" into the basic literacy curriculum. b) Improvements. NFED is in the process of strengthening its operations in the following ways: Mobilization activities will be increased, to sensitize communities and seek their active participation in the running of the classes. Community entry will include visits to chiefs, opinion leaders, and community based organizations in an effort to bring them in from the start and encourage them to oversee the implementation of the program. This will be complemented by publicity activities, theater for development, radio and television spots. The objective is to establish a literacy advisory committee for each class, to provide support for the management and supervision of the class. Building on this foundation, communities will select volunteer facilitators to run the classes. A total of 8,000 facilitators will be required for each literacy cycle. The facilitator training 5 Components' cost include contingencies. 21 program and facilitator's manual are being revamped, with the objective of making classroom teaching increasingly participative, with more emphasis on active learning and less on syllable drills and group repetition. It is assumed that 40% of serving facilitators will be retained from year I to year 2, and from year 2 to year 3. After that time, it is believed that demand for literacy classes will have been met in the initial catchment areas, and that it will be necessary to recruit all new facilitators beginning in year 3. Between year 3 and year 4, and year 4 and year 5, it is assumed that 40% of serving facilitators will continue to be involved in the Program. In order to support facilitators in their classes, zonally-based supervisors (currently 1,200 full-time NFED staff) will visit each class twice monthly. This element of program implementation is being strengthened in two ways. First, NFED has developed job descriptions and qualifications for supervisors, and is in the process of identifying those supervisors who meet the new standards. Those who do not will be redeployed within NFED, away from supervisory responsibilities. Second, training for supervisors is also being redesigned, with an emphasis on providing professional support to facilitators. Each supervisor will be responsible for 10 or 15 classes, depending on the distance, of approximately 25 learners each. It is expected that 600-800 supervisors will be required for each literacy cycle, totaling 1,200-1,600 over the five-year period. Supervisors are to be supported in their work by NFE district staff. The supervision plan and staffing requirements will be reviewed jointly by NFED and IDA before the commencement of literacy classes. In order for NFED to have better information on learning achievement, a reliable learner assessment is being developed to measure literacy and numeracy skills, as well as knowledge of key development issues (e.g., how to keep water clean, how to treat diarrhea, how to prevent AIDS, etc.). The assessment will be carried out on a small sample of learners, and will form the basis for tracer studies. Data gathered through the tracer studies will provide indications of the extent to which literacy program completers have changed/improved their lives over time. In addition, the majority of learners will undergo a simple "self-assessment" at the beginning and end of the 21-month cycle, to indicate progress made over time. At the end of each cycle, learners will be issued a certificate of course completion. In addition, all manuals will be revised to provide clearer guidance to facilitators and supervisors to ensure more active learning, and workbooks for numeracy and writing will be provided. c) Inputs. Classes will be supplied with basic inputs, and facilitators/supervisors with working tools including: learner kit (primer, supplementary readers, exercise books, pencil and eraser, work book for arithmetic, and work book for writing); facilitator kit (primer, pens, facilitator's manual, development activities manual, silk screen manual, MIS manual, MIS forms, flash light, a pair of Wellington boots, rain coat, felt pens, newsprint, book files, and satchel); class kit (chalk board, chalk, flip chart, pre-set radio, lanterns, silk screen press, and book box); supervisor kit (Wellington boots, rain coat, flash light, primer, facilitators manual, supervisors manual, MIS forms, MIS manual, development manual, pens, and a calculator); and development inputs (mango seedling, citrus seedling, onion seeds, pepper seeds, maize seeds, groundnut seeds, muslin cloth, ORS packets) Those facilitators who successfully complete a literacy cycle will receive a final incentive. During Phase 1 these included either a bicycle or a sewing machine. The new incentive package will include these same items, along with one or two others, each with a value of 22 US$100 per facilitator/cycle. In addition, NFED will encourage communities to provide a nominal incentive (e.g., rice, sugar, soap) twice each year to support facilitators in their work. Further, NFED proposes to strengthen supervision through the provision of motorcycles to all supervisors and four-wheel drive vehicles to all district offices. An evaluation of existing vehicles and motorcycles will be presented to IDA prior to the award of contract for any new vehicles or motorcycles. d) Key Policies and Guidelines. Number of instructional hours per cycle; criteria for opening new classes; criteria for facilitator selection; composition and termns of reference for literacy class advisory committees; completion rate per cycle; criteria for certification of successful completers; facilitator incentive package and criteria for distribution of incentives; duration and frequency of facilitator and supervisor training; and scope of supervision responsibility and frequency of supervision visits. e) Implementation. Program implementation will depend on close coordination among players at all levels of the system. These include: NFED headquarters, regional, and district offices; Funds and Procurement Management Unit/MOE; non- governmental organizations; and other government ministries (e.g., district-based representatives from the Ministry of Health or Agriculture). The support and assistance of local communities and district assemblies will also be needed to ensure program success. Project Component 2 - English Pilot --US$1.0 million a) Current situation. In response to strong demand for literacy training in English, NFE ran during Phase I a small English pilot project covering 20 classes in three districts. Two facilitators were provided to each class, and supervision was handled by NFE district staff. All costs were covered by NFED. Evaluation of this experience confirmed the strength of demand, and strongly supported a continuation of the project. At the same time it indicated a number of areas where implementation issues need to be addressed, particularly in terms of ensuring better attendance rates, improving class lighting, developing a reliable assessment instrument to measure progress (including a baseline assessment), employing a more systematic facilitator selection process, improving the content and frequency of facilitator training, strengthening community entry to elicit local support and sense of ownership, and refining the English primer and instructional manual. In addition, the evaluation suggested that a radio-based component be added for a limited number of classes on a pilot basis. b) Improvements. It is proposed that the expansion of the pilot proceed at a measured pace, starting with 100 classes and gradually increasing to 500 classes by the end of the five-year period. The objective is to ensure the quality of instruction, supervision, and management of the activity. New classes will be comprised of learners who have successfully completed the basic literacy cycle. NFED proposes to introduce an element of cost recovery by requiring learners to provide their own writing materials, pens and exercise books when the initial supply provided by NFED is depleted. c) Key policies and guidelines. Criteria for opening new classes (targeting); targets, pace of expansion, and location of classes over the five-year period; revision of all written materials, including the English primer and facilitator/supervisor manuals; to community entry messages about the English pilot; number of instructional hours; class size and class inputs; facilitator and supervisor selection criteria and training; facilitator incentives; scope of supervisorial responsibility; items to be paid for by learners; extent of radio programming to 23 support this component; criteria for selecting "collaborators" to receive the primers and manuals; "out of station" training allowance; criteria and mechanism for acquisition/production of "bridge-gap" readers; incorporation of English books in the bookboxes; arrangements for learner assessment; and criteria for certification. d) Implementation. The Materials Development Unit of NFED will continue to oversee the English pilot implementation. Project Component 3 - Literate Environment --US$1.2 million a) Current situation. During Phase I a number of mechanisms were designed to produce reading materials so that new literates will be able to continue reading in the local languages. Implementation experience was mixed, from which a number of lessons have been learned. First, central management and production of materials is difficult to manage, and this should be decentralized wherever possible. Second, the need for careful planning of the entire process from conceptualization through distribution is essential to successful implementation. Third, if bookboxes are to be useful, they must be easily accessible to new literates (i.e., they must not be shared between classes or kept in district offices). b) Improvements. During Phase II, several changes are being made to increase the likelihood that interesting materials, geared to the reading level of the new literates, will be produced. Appropriate materials will be obtained through a number of mechanisms, and these materials will be made available to learners through provision of one bookbox for each class. The credit will support the following: - Easy To Read Books: These stories will be collected from the learners and put together in book form (as was initiated near the end of Phase I). Contents range from reasons for joining the program and benefits from participating, to folk tales and other stories. The purpose is to encourage learners to share their ideas with other learners and to keep reading. The stories will be collected from learners in all regions, who will narrate them onto tape recorders. Production responsibility will rest with the headquarters Materials Development Unit, with support from regional and district media officers, translators and the headquarters Desktop Publishing Unit. * Entertaining Story Books: These will be purchased mainly by NFED headquarters, as 90% of publishers are based in Accra. All publishers will be invited to submit suitable finished books to NFED for evaluation. For small languages in which insufficient books or manuscripts exist, Regional Language Committees (RLC) will solicit these through advertisements on local radio stations and through local story competitions. The RLCs will be led by NFE regional coordinators and will consist of the regional media officer, at least one district media officer, a supervisor, two facilitators, two neo- literates, local NGO representatives, and local authors. * Community newspapers: In light of the complications associated with earlier efforts to produce newspapers in a timely fashion from NFED headquarters, it has been agreed that these materials will need to be produced closer to the community. Literacy supervisors will be responsible, using copy supplied by learners themselves, and relying on silk screen presses for production. * Comic books and literacy board games, already initiated during Phase I, will be supported by the headquarters Desktop Publishing Unit. * Anthology: This is a new product, conceived as a District Magazine based on learner writings, to encourage learners to write. Articles will be supported with the photograph, name, age and class of the author. 24 Materials to be purchased from other literacy provider: Selection will be based on a survey, to be conducted at specialized educational institutions. Regional Literacy Committees (RLC) will assess the materials to ensure their suitability. c) lnputs. These will include silk screen presses, one bookbox per class, training. A detailed implementation plan with specified inputs and costs will be produced with local and international technical assistance. d) Implementation Key players in the implementation of this component include NFED headquarters and regional officers; membership of the regional materials development committees; the GBPA; and any organization identified as a supplier of existing written materials. e) Key policies and guidelines. Composition of RLC, and operating procedures; number of new titles and quantities/language to be produced annually; terms of agreement with producers of written materials; criteria for the production or purchase of materials in terms of their appropriateness for new literates (e.g., font size, number of pages, level of difficulty); complete contents of bookboxes (number of titles, number of copies); frequency of replenishment of bookbox materials; disposition of bookbox at the end of the cycle/end of facilitator's tenure. Project Component 4 - Monitoring, Evaluation and Research Program --US$1.4 million Supervision and MER systems need to measure and promote both the quantity of the Program output and the quality of instruction. NFED's Program Supervision and MIS systems include the following functions: (i) class supervision by NFED supervisors (about 1200); (ii) supervised supervision and monitoring by higher level staff; and (iii) MIS and research located at national level. These systems were developed and became operational in the course of the previous phase of the Program; their continued improvement is critical for the success of the subsequent phase. The preparation of the new Program takes into account findings and recommendations included in the Report Research Project 5: Improvements in Supervision and MER Practices. The Program will support the following activities and improvements. 4.1 Supervision/MIS a) Current situation. The evaluation of the previous phase of the Program as well as the preparation of the subsequent phase have identified several issues concerning the Program supervision and the MIS. Key among them are: the poor quality of supervision and lack of instructional support to facilitators; and the failure of the MIS to promptly provide NFED management with reliable and current data for planning and monitoring purposes. b) Improvements. The Program will support improved supervision (see the Basic Literacy and Development Activity Component) and MIS, through: qualified supervisors to provide instructional support to facilitator; periodic supervised supervision and monitoring visits, feedback, and follow up; and reliable, current, and useful MIS data for monitoring and planning purposes. The qualifications of supervisors will be reviewed and upgraded, mobility policies will be updated, training for facilitators and supervisors will be revamped and the relevant manuals will be revised (PPF activity); MIS forms and procedures will be reviewed and revised accordingly; and computerized data processing will gradually be decentralized to regional offices as regional capacities are enhanced. Community members will be engaged in the monitoring of class operations. 25 c) Key policies and guidelines. Policy for allocating transportation resources and working tools for supervision on the basis of needs; supervisors qualifications and performance criteria; supervision and monitoring TOR and procedures; community participation; feedback and evaluation mechanisms. d) Implementation. Prime responsibility: NFED Field Operations/MIS units. Supervision and monitoring schedules along with TOR and resource requirements will be prepared prior to commencing a literacy cycle; and be included in the Annual Work Plan. During the Annual Program Review, draft proposals for the next cycle will be reviewed. 4.2 Learner Assessment a) Current situation. NFED has developed a learner assessment instrument and in the last three years has conducted terminal learner assessments annually covering all classes in a particular cycle. The assessments have provided useful information about learners achievements, awareness and behavior. change but their quality has been hampered by several factors, including the large number of learners covered by the assessments. b) Improvements. The Program will support: (a) the revision of the instrument for learner assessment and terminal assessments on a sample basis; and (b) for the vast majority of learners, a simple "self' assessment, undertaken by learners and their facilitators. The learner assessment will be used in a pretest and post-test of individual learners and the data should be recorded on an individual basis. Whole classes of students will be tested and information about the class, facilitator, and supervisor will be recorded along with demographic data about the students. This will allow analysis against these critical factors. A minimum number of classes and a sampling scheme (size and makeup) that will provide a representative sample for the whole program will be first determined. If this sample is difficult to manage, a minimum sample size will be fifty classes (10 each in five regions) for the first data collection. A new cohort of fifty classes could be started every one or two years to build the sample size and diversity over time. The sample could include a few additional classes that NFED identifies as representing their best classes so that a benchmark for high quality can be set. A small comparison group of people who resemble the participants, but do not attend the classes, will provide an indication that these skill changes are not the result of some other factor, no matter how unlikely that might be. Administering the test with adults and youth, who have between one and five years of formal education, will provide a very rough yardstick for what the test might mean in relation to the formal school system. Simple SelfAssessment. The learner assessment instrument will be too resource intensive to use as a base line and completion test for purposes of the MIS or to inform students of their progress. Thus, for the vast majority of learners, a simple self assessment tool will be developed that provides scores ranging between 0 and 5, to be administered by facilitators and leamers themselves to provide an indication of starting level of proficiency and progress over time. c) Key policies and guidelines: Protocol for learner assessments; student/facilitator assessment guidelines. d) Implementation. The learner assessment instrument is being revised and will be tested; the protocol and sampling scheme as well as self assessment guidelines will be prepared prior the commencement of the next basic literacy cycle (PPF activity). MER/NFED will be responsible to oversee the learner assessment activities. 26 4.3 Tracer Studies a) Current situation. No tracer studies were undertaken in the previous phase of the Program. A beneficiary impact assessment study was conducted in 1997. b) Improvements. The Program will support tracer studies to look at changes in functional literacy use after attending the class, measure literacy skill again after a year or two after completion to assess retention, and investigate the impact of participation on a limited number of development indicators, such as children's schooling, family health, and family planning. A qualitative approach to measuring the impact on development indicators might involve interviewing participants about these factors and looking for links back to the literacy class experience and literacy activities that had taken place after the class was completed. The learner assessment can be the first step in a tracer study. The comparison group selected for the learner assessment will also be essential to the tracer studies. In order to get large scale data on impact of participation in the literacy classes, NFED will request agencies such as MOE, MOH, and Ghana Statistical Service to include questions about participation in literacy programs in their research studies. If these studies added a question to the education section of their instruments that asked, along with formal school history, for information on participation in literacy classes, these studies might eventually identify impact. c) Key policies and guidelines: Framework and guidelines for tracer studies and follow up action. d) Implementation. The tracer study framework is under preparation; and the instrument and protocol will be prepared before the commencement of the next literacy cycle (PPF activity). The MERINFED will be responsible to oversee tracer studies. 4.4 Research a) Current situation. There is need for rigorous and continued research on selected topics and for a simple mechanism that will allow NFED to review findings systematically and to adjust policies and plans accordingly. b) Improvements. The Program will support research that will contribute to improving the Program delivery and cost effectiveness and enable NFED to make necessary adjustments to the Program during implementation. Among the topics identified during preparation are: use of supervisors to improve the quality of instruction; management of book boxes and use of local resources to provide a literate environment; identification of demand for the program and needs for other services; partnerships with communities and organizations, including, NGOs, CBOs, churches, other providers and district assemblies to support the Program; exploration of alternative ways for service delivery to improve cost effectiveness. It is envisaged that one or two studies per year will be conducted -prioritized on the basis of agreed criteria. The Program will also support building NFED's staff capacity to be better managers and consumers of research, even if NFED staff do not do the research themselves. c) Key policies and guidelines: Framework and guidelines for research studies and follow up action. d) Implementation. The framework for a Research Plan is under preparation (PPF activity). The MER/NFED will be responsible to oversee tracer studies. A two-year rolling Research Plan along with TOR and resource requirements will be prepared prior to undertaking any 27 research study and be included in the relevant Annual Work Plan; it will be reviewed, monitored, and adjusted during the Annual Program Review. 4.5 Capacity strengthening a) Current situation. NFED needs to strengtien its capacity to plan, conduct and coordinate a variety activities under the MER Program. The size, scope, and technical requirements of these activities will determine the delivery mode. This touches upon issues of decentralization, outsourcing, linking with relevant work of other organizations in Ghana and NFED staffing. b) Improvements. The Program will support bridging NFED's capacity gap through: (a) external short termn assistance to supplement the existing capacity; (b) training and fellowships to develop staff capacities; (c) and improving relevant systems and procedures. Additionally, NFED will strengthen its capacity by establishing linkages with other organizations including: (a) collaboration with the MOE in the mapping of literacy classes and pockets of illiterates; (b) linking NFED's MIS data base to the EMIS of MOE; (c) collaboration with the Ghana Statistical Services in the conduct of baseline surveys; exploration of opportunities to link with the computerized District Education Offices set up under the fCUBE. c) Key policies and guidelines. NFED revised HRD and staff decentralization strategies and action plans. d) Implementation. External assistance to supplement existing capacity will be engaged as needed for the specific Program activities. Staff training and systems strengthening for MER will be part of the NFED's HRD and decentralization strategies and action plans -see Management and Institutional Enhancement component. Staff training will be integrated into the Training Plan of the Annual Work Plans. Project Component 5 - Radio Broadcasting -US$2.0 million a) Current Situation. During Phase I, financial support was provided to establish broadcasting capacity at two Ghana Broadcasting Corporation (GBC) stations, one in the Volta Region, the other in the Northern Region. Programs are produced in four of the 15 functional literacy program languages. Each station is run jointly with GBC, which handles the technical and management functions for both its own local programs and those of NFED. NFED's contribution consists of provision of broadcasting equipment, vehicles and renovation of GBC buildings, and 28 producers who produce an equal number of programs for GBC as for NFED. Although the original agreement stipulated that 60% of broadcasting hours were to be devoted to the functional literacy program, in reality only about 10% of time (90 minutes/day) is devoted to NFE programming. Nonetheless, these programs attract a large and loyal audience among literacy program learners. b) Improvements. The primary objective under Phase II is to strengthen the existing capacity and quality of the NFE radio component (sub-component a). Improvements are expected to result from efforts to strengthen human capacity, policy and practice. This will include greater support to program producers, including increased training, better supervision systems, and provision of more adequate resources for travel and production. Regular and continuing planning and training workshops are proposed (rather than a single infusion), using a combination of local and international technical assistance. In addition, a phased approach to expansion of radio coverage is being proposed (see criteria for expansion). c) Inputs. Expenditure items are expected to include: training, travel and production costs, equipment, technical assistance, monitoring, evaluation, and management. Specific inputs, 28 quanitities and costs will be agreed during appraisal, depending on the agreed plan for quality improvement and gradual expansion. d) Key policies and guidelines. Content, duration and frequency of training activities; arrangements for supervision of radio production; evaluation of the impact of radio to date; legal agreements with outside providers (e.g., GBC, independent stations); and management arrangements for the component. e) Implementation. Responsibility for implementing this component is expected to be shared among: NFED headquarters and regional coordinators; NFED producers; and any collaborating stations (e.g., GBC, independent station managers). f) Criteria for Expansion. NFED (along with local and international technical support) is assessing the situation across all ten regions in order to formulate a targeted plan to gradually broaden coverage to literacy groups across the country. Prior to use of credit funds for expansion of the radio component to either basic literacy or English literacy classes, NFED will undertake the following studies financed by the credit: (i) impact assessment of the existing scheme; (ii) expansion feasibility study; and (iii) feasibility study on support to English classes. In support of the English pilot project, radio broadcasts will be developed for initial use in 10-20 pilot classes, and for eventual expansion to all English classes. It is expected that 20-30 minutes will be set aside once or twice a week for the classes to listen to radio broadcasts. These are to be developed as "stand-alone" lessons, so that they can be followed by any English class, regardless of what lesson it is at in the English primer. Project Component 6 - Management & Institutional Enhancement --US$5.3 million 6.1 Institutional Development a) Current situation. Since 1992, NFED has been responsible for the planning and implementation of the Ghana NFLP. NFED operates at national, regional, and district levels and includes a staff of about 1935 people -- about 166 are located at the National Headquarters, 70 at the ten regional offices and the remaining 1699 at district offices (I 10). NFED staff are committed to the NFLP and have gained good operational experience from the implementation of the previous phase of the Program. A fairly large number of Ghana Education Service (GES) staff work for NFED on secondment terms. NFED has now been established as an entity within MOE. b) Improvements. The enhancement of NFED's institutional capacity involves the following: (a) based on an agreed organogram, conduct of a personnel review of all NFED staff in terms of revised job specifications; (b) development of a sound HRD strategy; and (c) development of a strategic plan for a phased decentralization of NFED's activities to regions and districts (see the study on the "Institutional Management and Capacity Building Development for Phase II of the Ghana Literacy and functional skills Programme" (December 1998). It is envisaged that the above work will be completed in the first year of the Program and implemented by the end of the third year. c) Implementation.. The leadership of NFED supported by HRD/MOE and independent technical specialists will assume prime responsibility. 29 6.2 Non-Formal Basic Education Policy Framework a) Current situation. The NFLP has evolved from the "Mass Literacy and Social Change Program" (MASSLIP), a broad policy document providing for the eradication of illiteracy in Ghana. b) Improvements. The Program will support analytical work to identify and clarify broader non- formal education sector issues; and the development of a medium-term policy framework that, in addition to the targeting the backlog of illiterate adults, will target other groups as well, i.e. poorly-educated or uneducated youth, particularly girls. c) Implementation. Prime responsibility: NFED supported by external technical specialists. 6.3 Program Management a) Current situation. The capacity of NFED and FPMU for procurement implementation and financial management have been assessed and the specific findings and recommendations have been taken into account. Some have been included as conditions of effectiveness while others are incorporated into the Program. b) Improvements. The Program will support NFED's capacity building in the areas of: budget programming and monitoring, financial management, procurement, and decentralization of resource management, systems and controls. c) Key policies and guidelines. The Project Implementation Plan (PIP), rolling two-year Annual Work Plans, budget and financing requirements. d) Implementation. Controls and procedures to allow the flow of funds from national level to regional and district offices are to be detailed during the upcoming financial management consultancy as part of the new financial management system. 6.4 Partnerships with other providers and NGOs a) Current situation. NFED collaboration with other providers and NGOs has increased in the last couple of years but not in a systematic manner. Under the Program, NFED will pursue actively partnerships with other providers and NGOs to expand Program delivery to hard-to- reach groups and eventually eventually evolve into a demand-driven organization. Government agencies such as NFED have a comparative advantage with those activities that benefit from economies of scale (e.g., materials development and production, training, public awareness, research and evaluation, and radio). NGOs and Community Based Organizations (CBO) have a comparative advantage with those aspects of the program that happen at the community level (e.g., identifying facilitators and learners, supporting regular attendance by both, and managing the development of a literate environment). b) Improvements. (a) NFED will publish and annually update a database of organizations that provide literacy services in Ghana. The information collected by the Literacy Mapping team provides a database of NGO activities that is sufficiently useful to merit annual updating. NFED will contract out this task and the information collected will be shared with all other literacy providers in the country. (b) The Program will support a pilot for the delivery of basic literacy classes, including English language, through qualified non-government providers on demand. 30 c) Implementation. NFED units involved in NGO and Women in Development (WID) activities. NFED intends to establish a National Non-formal Education Coordinating Committee to facilitate communication and collaboration among literacy providers. 6.5 Income Generating Activities (IGA) a) Current situation. During the first phase of the Program, NFED contracted with the National Bureau for Small Scale Industries to administer small loans to a limited number of literacy classes. Over time, responsibility for administration of these loans shifted to NFED, which had greater capacity to work below the regional level. Demand for the loans far exceeded NFED's capacity to offer both technical assistance and loan funds financing to literacy groups. Repayment experience has been mixed. b) Improvements. In light of the demand for micro-credit, the second phase will continue to provide support in this area in the form of technical assistance. Given the high administrative cost of operating the loan scheme, as well as the burgeoning micro-credit market that has developed in Ghana over the past five years or so, in Phase II the IDA credit will be used to purchase the services of one or two non-governmental groups that have experience in bringing together potential borrowers with micro-credit institutions located in rural areas. The contractor(s) will be responsible for providing technical assistance to a small number of selected literacy groups to enable them to formulate business plans and other documentation required to obtain commercial loans, and to link the groups with rural financial institutions. They will also provide training for selected NFED staff, to enable them to supervise additional IGA literacy groups. c) Key policies and guidelines. Criteria for selection of groups to receive technical assistance support; contractual arrangements to be worked out; role of NFED staff at headquarters, regions and districts to manage the program. Project Component 7 - NFED-US$7.0 million It concerns the NFED core organization and reflects MTEF projections during Program implementation in terms of staff emoluments and administrative costs based on the 1999 MTEF allocations. 31 Annex 3: Estimated Project Costs GHANA: National Functional Literacy Program Local Foreign Total Project Cost By Component US$ million Basic Literacy 15.5 7.2 22.7 English Pilot 0.6 0.3 0.9 Literate Environment 0.6 0.5 1.1 Monitoring, Evaluation, and Research 0.1 1.1 1.2 Radio Component 0.3 1.5 1.8 Management and Institutional Enhancement 1.1 4.4 5.5 NFED 7.0 0.0 7.0 PPF 0.2 0.3 0.5 Total Baseline Cost 25.4 15.3 40.7 Physical Contingencies 0.4 0.6 1.0 Price Contingencies 3.2 1.1 4.3 Total Project Costs 29.0 17.0 46.0 32 Annex 4: Cost Effectiveness Analysis Summary Ghana: National Functional Literacy Program Summary of benefits and costs: Unit Costs of Phase I The unit cost per enrolled learner for Phase I was US$24 for the two-year literacy cycle while the unit cost per successful literate graduate was US$43. As illustrated in Table 1, two-thirds of the total was for institutional strengthening activities and personnel expenses, 12% went to basic and post-literacy materials, 5.8% for research and evaluation, 4.3% to support facilitators and supervisors, and the remaining 11% went for radio, infrastructure, taxes, and contingencies. As the technology/methodology and mode of delivery utilized for the courses has been fairly uniform across the country, it is not possible at this time to assess cost differentials of any type. Compared to five other countries' literacy programs, the unit cost of phase I is the median when compared with where unit costs range from US$18 to US$98 in constant dollars (US$1996). Ghana is above the median when using PPP estimates (See Table 2) Benefits of Phase I. The main benefit of the phase I was to provide reading, writing and numeracy skills to its beneficiaries. Seventy percent of those initially enrolled completed the courses. A learning assessment was administered to the neo-literates who completed the program in 1997. Those who presented the assessment (80% of those who completed) attained a mean score of 70 out of a total possible score of 100. The assessment tested neo-literates on the following six areas: writing, reading comprehension, numeracy, cognitive, attitude, and functionality skills.6 While 70% of the neo-literates had never attended school the remaining 30% had attended, some even as much as junior high school. Not surprisingly, those who had attended school, performed slightly better in the assessment. Some targeting of the program towards females was observed as they represented 60% of the assessed population. A preliminary assessment using the GSSL3 household data indicates that literate women (using 1-5 years of primary school as a proxy for basic literacy) are more likely to seek pre-natal care and have their children vaccinated. While quantifying the extent to which the program achieved this impact is not feasible at this point, it is worth to mention that phase I of the program included dissemination of information which according to the BIA's findings improved family attitudes and practices regarding children's education and health, as well as adult health (See BIA 1997). Unit Costs of Phase II. The main benefit of phase II will continue to be providing basic literacy skills for illiterate adults. The projected unit cost per enrolled learner is estimated at US$38 for the 21-month literacy cycle while the cost per successful learner is estimated at US$53, the latter takes into account a drop out rate of 20% and successful learning outcomes for at least 90% of graduates (see Table 3). 6 The total possible score on the assessment was 100 which represents the sum of the total possible scores in each of six sections. In the writing section the total possible score was 12 (actual mean score was 8.1), the reading comprehension total score was 8 (actual mean score was 5.1); the numeracy section had a total score of 20 (actual mean score was 14.7), and the cognitive, attitudinal, and functionality sections of the test had each a total possible score of 20 (mean scores were 14.7, 12.9 and 14.7, respectively). The sum of each of the actual mean scores amounts to 70. See Annex 4b for a description of the content in each of the sections included in the assessment. 33 Higher costs than in phase I, are associated with the introduction of additional inputs that will enhance the quality of the Program (e.g. class supervision, materials). To further improve the effectiveness of phase II, the Program will use results of assessments to adjust its operations. Periodic impact evaluation studies of both NFED and non-NFED classes are planned to identify how and where the most effective actions are undertaken, and at what cost. Tracer studies will be introduced to assess the long-term sustainability of acquired skills, the program's impact on earnings, attitude and behavior. The program's impact will also be monitored through the CWIQ7 and monitoring records in health centers. Benefits of Phase II The main benefit of phase will continue to be basic literacy skills for illiterate adults. While literacy has other benefits in addition to monetary benefits (i.e. changed attitudes, behavior, and practices), the lack of data on literacy graduates makes it difficult to perform a rigorous impact evaluation of the program. The proposed Program will use tracer studies, the CWIQ, and health centers' records to estimate the extent to which households with literate parents (literacy program graduates) obtain better health care, encourage their children to attend school regularly, and improve household income. 7 The CWIQ will be adjusted to allow respondents to identify adult literacy as their highest educational attainment. This will permit a quantitative study of literacy graduates. 34 Table 1 - Ghana Adult Literacy and Functional Skills Program (1992-1997) Total Program Cost by Component - Phase I ICR Actual (US$ millions) Local Foreign Total % of Total Basic Literacy Materials 600,000 1,770,000 2,370,000 8.5 Support to facilitators and supervisors 100,000 1,100,000 1,200,000 4.3 Post literacy materials 60,000 930,000 990,000 3.6 Radio 100,000 1,700,000 1,800,000 6.5 Research and evaluation 620,000 990,000 1,610,000 5.8 Institutional strengthening 6,350,000 12,180,000 18,530,000 66.6 Infrastructure 100,000 870,000 970,000 3.5 Taxes and duties 310,000 0 310,000 1.1 PPF refinancing 0 52,000 52,000 0.2 Total 8,240,000 19,592,000 27,832,000 100.0 Basic Literacy & Supporting Activitiesl Total cost - # learners Unit cost in in % (in US$) US$ Basic Literacy Materials 2,370,000 1,100,000 $2.15 8.95 Support to facilitators and supervisors 1,200,000 $1.09 4.53 Radio 1,800,000 $1.64 6.80 Research and evaluation 1,610,000 $1.46 6.08 Institutional strengthening 18,530,000 $16.85 69.98 Infrastructure 970,000 $0.88 3.66 Total cost per enrolenr in basic liter 26,480000 $24.07 D O A41 )000 Total cost per enrolled learner in basic literacy 1,100,000 $24.07 (100% success) Total cost per successful learner (56% success)2 616,000 $42.99 I Includes all items except post-literacy materials, taxes & duties, and PPF refinancing. 2 The success rate refers to the percentage of neo-literates who complete the literacy cycle and perform satisfactory in the learner evaluation. Success 100% = Drop out rate 10% and 100% of literacy graduates performing satisfactory. Success 56% = Drop out rate 20% and 70% of literacy graduates performing satisfactory. 35 Table 2 - Unit cost of various literacy programs sponsored by the World Bank and ActionAid Sponsored by the World Bank/IDA1 Sponsored by Action AWdZ Ghana Ghana Senegal Bangladesh Banglades El Uganda h Salvador 2000- 1992- 1996- 1996-2000 1994 1993 1993 2004 1997 2000 Literacy Programs3 In nominal US$ Total cost per successful $38.23 $26.48 $97.78 $20.40 $18.00 $51.54 $17.19 learner (100% success)4 Total cost per successful $53.10 $47.29 $174.60 $36.43 $30.60 $87.62 $29.22 learner (most likely scenario) In US$19965 Total cost per successful $37.07 $27.59 $97.78 $20.40 $18.37 $53.15 $17.73 leamer (100% success) Total cost per successful $51.49 $49.27 $174.60 $36.43 $31.23 $90.35 $30.13 learner (most likely scenario) In PPP6 Total cost per successful 174.99 130.24 273.96 80.45 72.44 83.05 57.95 learner (100% success) Total cost per successful 243.05 232.58 489.19 143.66 123.15 141.17 98.47 learner (most likely scenario) Formal Education7 In US$1996 Total cost per successful $208.00 $208.00 $650.00 $61.24 $61.24 n/a n/a learner (100% success) In PPP Total cost per successful 981.85 981.85 1,821.14 241.49 241.49 n/a n/a learner (100% success) I_I I Data are from the SAR and ICR for the Ghana Functional Skills and Literacy Project (1992), SAR Senegal: Pilot Female Literacy Project (1996), and SAR Bangladesh: Non Formal Education Project (1996). All costs were calculated for the purpose of the analysis using the information included in the SAR. We acknowledge that the unit costs may not be fully comparable because of the year in which the programs are implemented, specific components may vary significantly by program, and prices have not been adjusted. The success rate for the World Bank/IDA supported programs is based on a success rate of 70% (See Valerio, 1997). 2 Archer, D. & Cottingham, S. (1996). Regenerated Freirean Literacy Through Empowering Community Techniques. Action Research Report on Reflect. London: Overseas Development Administration. The success rate for each of the ActionAid projects are reported as follows: 60% in Bangladesh, 65% in El Salvador, and 69% in Uganda. 3 Note that literacy programs are less expensive because they usually rely on volunteer tutors, classes are held in existing schools or community infrastructure and no ancillary courses are provided. Therefore, the costs to produce a literate through literacy classes are far less significant as compared to the formal school system. 4 The success rate refers to the percentage of neo-literates who complete the 18-month literacy cycle and sit for a learner assessment test. Success 100% = Drop out rate 0% and 100% of literacy graduates sitting for the test. Success 56% = Drop out rate 20% and 70% of literacy graduates sitting for the test. The most likely scenario is 56% for the ongoing World bank programs, except for the proposed operation which aims for a 72% success rate. 5 U.S. Bureau of Labor Statistics (1999). Consumer Price Index-all urban consumers, all items. Current series. 6 The Purchasing Power Parity (PPP) conversion factor is based on local currency unit to international $ for 1996 as indicated in the World Development Indicators, 1998 CD-ROM, World Bank. 7 Although neither the results nor the clients of adult literacy programs are strictly comparable with those of primary education, the cost per student for four years of primary education is provided for reference. 36 Table 3 - National Functional Literacy Program (2000-2004) Total Program Cost by Component - Phase II Appraisal Estimate (US$ millions) Local Foreign Total in % Basic Literacy 15,568,000 7,172,000 22,740000 49.43 English Pilot 554,000 251,000 802,000 1.75 Literate Environment/Materials 603,000 456,000 1,059,000 2.30 Monitoring, Evaluation, and Research 106,000 1,081,000 1,187,000 2.58 Radio Broadcasting 311,000 1,511,000 1,822,000 3.96 Management and Institutional Enhancement 1,158,000 4,325,000 5,483,000 11.92 NFED (Salary/other) 7,000,000 7,000,000 15.22 PPF 200,000 300,000 500,000 1.09 Project Contingencies Physical 442,000 638,000 1,080,000 2.35 Price 3,209,000 1,115,000 4,324,000 9.4 Total 29,151,000 16,849,000 46,000,000 100.00 Basic Literacy & Supporting Activities 1 Total cost - # learners Unit cost in in % (in US$) US$ Basic Literacy 22,740,000 1,000,000 $22.74 59.48 Radio Broadcasting 1,822,000 $1.82 4.77 Monitoring, Evaluation & Research 1,187,000 $1.19 3.10 Management and Institutional Enhancement 5,483,000 $5.48 14.34 NFED (Salaries/other) 7,000,000 $7.00 18.31 al t per6 n;l learner 38,232,0 0 61000,000 $ 3183 100.00 Sensitivity Analysis Total cost per successful learner in basic literacy 1,000,000 $38.23 (100% success) Total cost per successful learner in basic literacy 720,000 $53.10 (72% success) Total cost per successful learner in basic literacy 560,000 $68.27 (56% success) ITotal basic literacy and supporting activities includes all items except for English pilot, literate environment materials, PPF refinancing and contingencies. 2 The success rate refers to the percentage of neo-literates who complete the 21-month literacy cycle and sit for a learner assessment test. Success 100% = Drop out rate 0% and 100% of literacy graduates sit for the test. Success 72% = Drop out rate 20% and 90% of graduates sit for the test. Success 56% = Drop out rate 20% and 70% of literacy graduates sit for the test. The likely scenario is 56% for the ongoing World Bank programs, except for the proposed operation which aims for a 72% success rate. 37 Annex 5: Financial Summary Ghana: National Functional Literacy Program Years Ending December 31 Implementation Period Year 1i Year 2 1 Year 3 t Year 4 j Year 5 Total Financing Required Project Costs Investment Costs 7.3 7.3 6.7 6.7 6.8 Recurrent Costs 2.1 2.2 2.3 2.3 2.3 Total Project Costs 9.4 9.5 9.0 9.0 9.1 Total Financing 9.4 9.5 9.0 9.0 9.1 Financing IBRD/IDA 6.7 6.7 6.2 6.2 6.2 Government 2.6 2.7 2.7 2.7 2.8 Districts/communities 0.1 0.1 0.1 0.1 0.1 Total Project Financing 9.4 9.5 9.0 9.0 9.1 38 Annex 6: Procurement, Disbursement, and Fiancial Management Arrangements Ghana: National Functional Literacy Program Procurement Procurement for Project Preparation. The preparation work for the project was carried out by studies financed by a Japanese Grant, and was contracted mainly by short listing of consultants. The procurement methods applicable to the various expenditure categories are summarized in Table A. TABLE A: PROJECT COSTS BY PROCUREMENT ARRANGEMENTS (in US$ millions equivalent) Procurement Method Expenditure Category ICB NCB Othera NIFb Total A. Civil Work 0.1 0.10 (0.1) (.10) B. Printed Materials 8.5 1.0 9.5 (6.0) (0.7) (6.7) C. Class inputs, vehicles, and Equip. 13.1 1.8 0.70 0.5 16.1 (1 1.0) (1.0) (0.50) (0.0) (12.5) D. Consultants' Services 3.1 3.1 (3.1) (3.1) E. Training 5.1 5.1 (5.1) (5.1) F. Operating Costc 4.6 4.6 (4.0) (4.0) G. NFED Salaries and administrative 7.0 7.0 costs (0.0) (0.0) H. PPF 0.5 0.5 (0.5) (0.5) TOTAL 13.1 10.4 15.0 7.5 46.0 _ (11.0) (7.1) (13.9) (0.0) (32.0) Note: Figures in parentheses are the amount to be financed by IDA, including contingencies, and excluding taxes and duties. Totals may not add up due to rounding. a Other procurement methods include shopping, selection of consultants following Bank/IDA guidelines, expenditures following Government's administrative procedures acceptable to IDA, and direct purchasing of goods. b Not financed by IDA. C Operating costs include incremental expenses incurred on account of Program implementation, management, and monitoring, including costs for class supervision, travel costs, and travel allowances, but excluding salaries of officials of the Borrower. 39 Procedures Procurement will follow World Bank's guidelines on procurement of goods, works, and services - Guidelines: Procurement under IBRD Loans and IDA Credits, published by the Bank in January 1995 and revised in January and August 1996, revised September 1997 and January 1999 (the Procurement Guidelines) and Guidelines: Selection and Employment of Consultants by World Bank Borrowers published by the Bank in January 1997, revised September 1997 and January 1999 (the Consultant Guidelines) - in all respects. Preference for domestically manufactured goods will apply in accordance with the World Bank Guidelines. National Competitive Bidding procedures will include: (a) explicit statement to bidders of the evaluation and award criteria; (b) local advertising with public bid opening; (c) award to lowest evaluated bidder; and (d) foreign bidders will not be precluded from participation in NCB. TABLE B: TEIRESHOLDS FOR PROCUREMENT MEETHODS AND PRIOR REVIEW (in US$ equivalent) Methods Categories ICB NCB Other Prior Review by ____E IDA Civil works NA All NA +100,000 Printed materials NA 50,000 or more Less than 50,000 +100,000 (Aggregate 1,000,000) Class inputs, vehicles, 100,000 50,000-100,000 Less than 50,000 +100,000 equipment or more (aggregate (Aggregate 1,800,000) 700,000) Consultants' services NA NA All Firms +50,000 & Training Indiv. +25,000 Single source; all ________ ____________ TORs Overall Procurement Risk Assessment: High Average Low Frequency of procurement supervision missions proposed: One every 6 month(s) (includes special procurement supervision for post-review/audits) Prior review is also required for: The first two NCB contracts for goods and works each year, regardless of the amount. Documents For ICB: World Bank Standard Bidding Documents (SBD). For NCB: Standard bidding documents based on Bank's SDB - reviewed and found satisfactory at at appraisal. For Consultants: Bank's standard RFP. 40 Other documents include: World Bank standard bid evaluation form and standard general and specific procurement notices. Measures to Improve Procurement Capacity at FPMU Standard procurement processing timetables, including gestation time for completion of deliveries, agreed at appraisal (see Project Implementation Plan on file). A procurement plan for key activities during the first two years of project implementation completed at negotiations and monitored regularly during implementation (see Project Implementation Plan on file). Procurement audit by third party (procurement agents or auditors --see draft TOR on file). Training of FPMU/NFED procurement staff on Bank procurement procedures and documents. Procedures manual for procurement, acceptable to IDA, completed by 6/30/99. Qualified Deputy Director for procurement and a procurement officer in place by 7/31/99. Disbursements Disbursement conditions for "radio" (expansion to new stations and support to the English pilot): Positive findings of: (i) impact assessment study of existing radio broadcasting on literacy classes; (ii) feasibility study for radio expansion; and (iii) feasibility study for radio support to English classes. Use of Statement of Expenses: Contracts of less than US$100,000 equivalent for works and goods Consultant contracts of less than US$50,000 and US$25,000 for individuals Training Supervision costs Special Account: The special account will have an authorized allocation of US$1.5 million to cover projected four months eligible expenditure. An initial advance of US$750,000 will be made to a Bank account opened in a commercial Bank upon effectiveness of the credit. This advance will increase to the full, authorized allocation once cumulative disbursement under the credit reach a total ofSDR5 million. Financial Management Technical experts have reviewed and assessed the existing financial management capacity, policies and procedures and systems - including internal controls, accounting, financial reporting, and auditing systems - of FPMU. Special consideration was given to NFED's capacity. The review reflected the requirements of the Loan Administration Change Administrative Initiative (LACI). A timebound action plan has been agreed for the development and implementation of adequate policies, procedures and systems to ensure full compliance with IDA operational guidelines as specified in OP/BP 10.02 of August 1997 by credit effectiveness. A procedural manual for FPMU will be prepared to specify and describe the accounting system procedures and policies, chart of accounts, organization of the accounting and finance unit, financial statement format, internal controls, budgeting mechanisms, and audit arrangements. The manual would also describe the organization arrangements for the project, as well as the various roles and responsibilities for the procurement and disbursement process. FPMI will provide quarterly activity reports to the NFED secretariat. The annual financial statements of the project will be prepared in accordance with generally accepted accounting principles in Ghana and with the Financial Accounting Reporting and Auditing Handbook 41 (FARAH), which is acceptable to IDA for projects in Ghana. The financial statements will include at least a statement of sources and uses of funds, a statement of reconciliation of the special account, a balance sheet and required notes to the financial statements. The financial statements will be submitted to IDA no later than six months after the end of the fiscal year. Auditing The financial statements of the project will be audited by an independent auditor acceptable to IDA. The auditor will provide an opinion on: (a) the project financial statements; (2) statement of expenditures; and (c) special accounts. A management report will be prepared on Internal Controls outlining any recommendations for improving internal accounting controls identified as a result of the financial statement audit. Staffing FPMU is recruiting a senior accountant and two accounts officers and a principal accountant for NFED. Draft TOR for theses position have been developed and agreed with IDA and the financial staff are expected to be at post by credit effectiveness. Project Management Reports The LACI initiative assists projects to put in place sound financial management, procurement and output monitoring systems. Where appropriate, if these systems are in place, disbursements may be made on the basis of agreed quarterly Project Management Reports (PMR) rather than on the basis of individual invoices or statements of expenditure. While the financial management system to be set up by the project will prepare PMR an assessment has been made that the PMR procedures will not be appropriate initially for this project because there is a need to ensure that the systems put in place are operating smoothly. Action Plan for improving FPMU and NFED 's financial management capacity FPMU: (a) Accounting procedures manual finalized by 6/30/99; (b) Vacant posts filled (one Senior Accountant, two Accounts Officers) by 7/31/99; NFED: (a) A qualified Principal Accountant recruited by 6/30/99; (b) Financial management expert recruited to designNFED's financial management system by 7131/99; (c) expert's work, including computerization plan, completed by 10/31/99; (d) NFED accounts staff initially trained to operate the new system by 12/31/99; (e) Detailed steps for implementing reporting requirements (see the Credit Agreement) by 12/31/99; (f) Implementation, testing and operationalization of system by 6/30/01. 42 Disbursement categories and the percentages financed are shown in Table C below. TABLE C: ALLOCATION OF CREDIT PROCEEDS Expenditure Category Amounts in US$ Financing Percentage millions 1. Civilworks 0.1 80% 2. Goods A. Printed Materials 6.7 100% foreign and 80% local expenditures B. Class inputs, vehicles, & equipment 11.4 100% foreign and 80% local expenditures 3. Consultants' services and Training 5.7 100% 4. Radioa A. Consultants' Service/Training 0.5 100% B. Equipment/vehicles/consumables 0.8 100% foreign and 80% local expenditures 5. Operating costsb 4.0 80% 6. Refinancing PPF 0.5 7. Unallocated 2.3 Total Financed by IDA 32.0 a Costs include expansion of radio to new stations and support to the English Pilot; subject to disbursement conditions. b Operating costs include incremental expenses incurred on account of Program implementation, management, and monitoring, including costs for class supervision, travel costs, and travel allowances, but excluding salaries of officials of the Borrower. 43 Annex 7: Project Processing Budget and Schedule Ghana: National Functional Literacy Program Project Schedule Planned Actual (At final PCD stage) Time taken to prepare the project (months) 11 First Bank mission (identification) n/a n/a Appraisal/negotiations mission departure 02/19/1999 04/18/1999 Planned Date of Effectiveness 11/01/1999 Prepared by: Non-formal Education Division/Ministry of Education. Preparation assistance: PHRD Grant - National Functional Literacy Program, US$450,000; PPF - National Functional Literacy Program, US$500,000; World Bank administrative cost, US$291,000 Bank staff who worked on the project included: Name Specialty Irene Xenakis Sr. Implementation Specialist/Task Team Leader Rosemary Bellew Ghana Education Team Leader Janet Leno Sr. Education Specialist Bernardo Kugler Sr. Human Resources Economist John Elder Sociologist (Consultant) Rebekah Kirubaidoss Program Assistant Kofi Awanyo Procurement Specialist Tsri Apronti Projects Officer Fred Yankey Financial Analyst John Comings Adult Literacy Specialist (Consultant) Alexandria Valerio Education Specialist (Consultant) Hovsep Melkonian/David Disbursement Officers Webber Said Al-Habsy Lawyer Jaime Biderman Lead Specialist V.S. Krishnakumar Procurement Specialist Francesco Sarno Principal Procurement Specialist Gerhard Tschannerl Quality-at-entry Advisors/Quality Assurance/Peer reviewers Adriaan Verspoor Education Lead Specialist/Africa Region Audrey Aarons Peer Reviewer/Basic Literacy Helen Abadzi Peer Reviewer/Basic Literacy John Oxenham Peer Reviewer/Program Design Harry Patrinos Peer Reviewer/Economic Analysis 44 Annex 8: Documents in the Project File* Ghana: National Functional Literacy Program A. Project Implementation Plan Draft Project Implementation Plan, March 1999. B. Bank Staff Assessments World Bank (1998). Implementation Completion Report: Literacy and Functional Skills Project (Credit 2349-GH). Project Concept Document Report, July 30. 1998. Project Concept Document Minutes, July 31, 1998. Economic analysis files, May 17, 1999. Ghana Education Finance Study, 1998. C. Other Blunch, N. & Verner, D. (1998). "Determinants of Income and Literacy in Ghana", background document prepared for AFTH3. Burchfield, S. et al. (1998). "Evaluation of the Pilot Project in English for New Literates." Draft report. Peter, G.W., (1998). "Mapping of Literacy Activities by Other providers in Ghana." Final report. Boeren, A. et al. (1999). "Improvements in Supervision and MER Practices." Final report. Laflin, M. et al. (1998). "Study of the Use of Radio to Support Functional Literacy in the Volta and Northern Regions of Ghana." Bhola, H.S. (1998). "Quality of Basic Literacy with Emphasis on Teaching Methods, Facilitator Training and Materials." Epskamp, K. et al. (1998). "Create a Cost-effective Literate Environment for Neo-literates." Final report. E.W. & Associates (1999). "Evaluation of the Financial System's Sustainability of the Literacy and Functional Skills Project." Draft report. Korboe, D. (1997). Beneficiary Impact Assessment, NFED/MOE. Accra, Ghana. Kukler, R. (1998). "Institutional Management and Capacity Development for Phase II." Final report. Laryea-Adjei, G., et al. (1998). "Evaluation of the Income Generation Scheme of the Literacy and Functional Skills Project." Draft report. Valerio, A. (1997). "Unit Costs of Adult Literacy Programs with a Focus on Ghana," background document prepared for AFTH3. E.W. & Associates (1999). "Review and Update of Non-Formal Education Policy in Ghana." *Including electronic files. Annex 9 Status of Bank Group Operations in Ghana Status of Bank Group Operation in Ghana Operations Portfolio As of 10-May-99 Difference Between expected and actual Original Amount in USS Millions disbursements a/ Fiscal Project ID Yea Borrower Purpose EBRD IDA Cancellations Undisbursed Orig Frn Rev'd Number of Closed Projects: 75 Active Projects GH-PE-50615 1999 GOVT OF GHANA PUB.SECTOR MNGT.PROG 0.00 14.30 0.00 14.30 0.00 0.00 GH-PE-970 1999 GOVT OF GHANA TRADE GATEWAY & INV. 0.00 50.50 0.00 48.62 .94 0.00 GH-PE-946 1998 GOVT OF GHANA NAT.RES.MANAGEMENT 0.00 9.30 0.00 9.36 3.37 0.00 GH-PE-949 1998 GOVT OF GHANA HEALTH SCTR SUPPORT 0.00 35.00 0.00 30.70 5.98 0.00 GH-PE-41150 1997 GOVT OF GHANA VILLAGE INFRASTRUCTU 0.00 30.00 0.00 23.74 -2.05 0.00 GH-PE-45588 1997 GOVT OF GHANA PUB. FIN. MGMT. TAP 0.00 20.90 0.00 16.69 11.22 0.00 GH-PE-42516 1996 GOVT OF GHANA PUBLIC ENTERPRISE/PR 0.00 26.45 0.00 18.99 4.87 0.00 GH-PE-943 1996 GOVTOFGHANA NON-BANKFININSAST 0.00 23.90 0.00 18.19 14.40 0.00 GH-PE-957 1996 GOVT OF GHANA HWY SECT INV.PROG 0.00 100.00 0.00 65.05 9.44 0.00 GH-PE-973 1996 GOVT OF GHANA URBAN ENV.SANITATION 0.00 71.00 0.00 51.68 33.76 0.00 GH-PE-975 1996 GOVT OF GHANA BASIC EDUCATION 0.00 50.00 0.00 43.08 21.28 0.00 GH-PE-926 1995 GOVT OF GHANA THERMAL (P-VII) 0.00 175.60 0.00 53.43 50.23 17.55 GH-PE-948 1995 GOVTOFGHANA EDUC/VOC.TRNG 0.00 9.60 0.00 5.95 4.17 0.00 GH-PE-960 1995 GOVT OF GHANA PRIV SECTOR DEV 0.00 13.00 0.00 8.98 7.60 0.00 4 GH-PE-962 1995 GOVT OF GHANA FISHERIES 0.00 9.00 0.00 4.86 2.55 0.00 GH-PE-966 1995 GOVT OF GHANA MINING SEC.DEV & ENV 0.00 12.30 0.00 6.39 4.29 0.00 GH-PE-924 1994 GOVT OF GHANA COMMllNITY WATER & SA 0.00 21.96 0.00 8.85 7.09 0.00 GH-PE-936 1994 GOVT OF GHANA LOCAL GOVT DEV. 0.00 38.50 0.00 15.73 7.09 0.00 GH-PE-961 1994 GOVT OF GHANA AGRIC SECTOR DIVEST 0.00 21.50 0.00 5.49 2.73 -1.47 GH-PE-930 1993 GOVT OF GHANA LIVESTOCK 0.00 22.45 .38 2.74 3.66 3.27 GH-PE-953 1993 GOVT OF GHANA NATL ELECTRlFICATIO 0.00 80.00 0.00 10.87 13.67 6.43 GH-PE-956 1993 GOVT OF GHANA URBAN TRANSPORT 0.00 76.20 0.00 10.93 10.79 -1.48 GH-PE-931 1992 GOVTOFGHANA AGRIC EXTENSION 0.00 30.40 0.00 6.84 6.40 6.40 GH-PE-918 1991 GOVTOFGHANA AGRICDIVERS(TREEC 0.00 16.50 1.85 5.35 6.40 6.40 GH-PE-910 1990 GOVTOFGHANA URBAN l(SEC CITIES) 0.00 70.00 0.00 2.00 -4.30 0.00 Total 0.00 1,028.36 2.23 488.81 225.58 37.10 Active Projects Closed Projects Total Total Disbursed (IBRD and IDA): 508.76 2,639.85 3,148.61 of which has been repaid: 0.00 247.61 247.61 Total now held by IBRD and IDA: 1,026.13 2,281.31 3,307.44 Amount sold 0.00 .38 .38 Of which repaid 0.00 .38 .38 Total Undisbursed 488.81 16.07 504.88 a. Intended disbursernents to date minus actual disbursements to date as projected at appraisal. Note: Disbursement data is updated at the end of the first week of the month and is currently as of 30-Apr-99. Ghana STATEMENT OF IFC's Committed and Disbursed Portfolio As of 31-Mar-99 (In US Dollar Millions) Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1988/89/91/93 Bogosu 6.48 1.72 5.35 13.44 6.48 1.72 5.35 13.44 1989/91/93 Cont Acceptances 0.00 .88 0.00 0.00 0.00 .88 0.00 0.00 1989/92 Wahome Steel .87 .44 0.00 0.00 .87 .44 0.00 0.00 1990 AEF Alugan .05 0.00 0.00 0.00 .05 0.00 0.00 0.00 1990/91/96 GAGL 4.50 2.55 8.11 0.00 4.50 2.55 8.11 0.00 1991 AEF Packrite .06 0.00 0.00 0.00 .06 0.00 0.00 0.00 1991 GHANAL 0.00 .44 0.00 0.00 0.00 .44 0.00 0.00 1991/92 Hotel Inv. Ghana 1.63 0.00 0.00 0.00 1.63 0.00 0.00 0.00 1992 AEF BMK .92 0.00 0.00 0.00 .92 0.00 0.00 0.00 1992 AEF CFL .28 0.00 0.00 0.00 .28 0.00 0.00 0.00 1992/93 Ghana Leasing 2.01 .75 0.00 0.00 2.01 .75 0.00 0.00 1993 AEF Afariwaa .18 0.00 0.00 0.00 .18 0.00 0.00 0.00 1993 AEF GHUMCO .12 0.00 0.00 0.00 .12 0.00 0.00 0.00 1993/96 ECOBANK 4.85 0.00 0.00 0.00 .75 0.00 0.00 0.00 1994 AEF Shangri-la 1.30 0.00 0.00 0.00 1.30 0.00 0.00 0.00 1994 GHACEM .94 0.00 0.00 0.00 .94 0.00 0.00 0.00 1995 AEF Dupaul Wood .50 0.00 0.00 0.00 .50 0.00 0.00 0.00 1996 AEF Pako Bay 0.00 .05 0.00 0.00 0.00 0.00 0.00 0.00 1996 AEF Tacks Farms .37 0.00 0.00 0.00 .37 0.00 0.00 0.00 1997 AEF PTS 0.00 0.00 .31 0.00 0.00 0.00 .31 0.00 1998 AEF NCS 0.00 0.00 .67 0.00 0.00 0.00 .67 0.00 1998 AEF Plantation .50 0.00 0.00 0.00 .36 0.00 0.00 0.00 Total Portfolio: 25.56 6.83 14.44 13.44 21.32 6.78 14.44 13.44 Approvals Pending Commitnent Loan Equiy Quasi Partic 1995 AEF GHANA PACK .36 0.00 0.00 0.00 Total Pending Commitment: .36 0.00 0.00 0.00 47 Annex 10 Ghana at a glance 9/29/98 Sub- POVERTY and SOCIAL Saharan Low- Ghan# Africa Income Development diamond* 1997 Population, mid-year (millions) 18.0 614 2,048 Life expectancy GNP per capita (Atlas method, US$) 370 500 350 GNP (Atlas method, USS billions) 8.7 309 722 T Average annual qrowth, 1991-97 Population f%) 2.7 2.7 2.1 G G Labor force ff) 2.7 2.6 2.3 GNP Gross per primary Most recent estimate (latest year available, 1991-97) capita enrollment Povrty (% of population below national poverty line) 31 Urban population f% of total population) 37 32 2a Life expectancy at birth (years) S9 52 59 Infant mortality (per 1,000 live births) 69 90 78 Child malnutritiron (% of children under 5) 27 .. 61 Access to safe water Access to safe water f of population) 56 44 71 Illiteracy (% ofpopulal/on age 15+) 36 43 47 Gross primary enrollment f% ofschool-age population) 76 75 91 Ghana Male 83 82 100 Low-income group Female 70 67 81 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1978 1986 1996 1997 Economic ratlos* GDP (USS billions) 2.8 5.7 6.3 6.8 Gross domestic investmenVGDP 8.9 9.4 18.7 16.0 Trade Exports of goods and services/GDP 15.7 16.6 27.2 24.8 Gross domestic savings/GDP 8.S 5.8 8.3 7.3 Gross national savngsGDOP 7.7 5.1 10.4 9.6 Current account balancetGDP -3.8 -3.6 -8.3 3-4A Domestc l ' Interest payments/GDP 0.7 0.8 1.9 1.9 Investment Total debt/GDP 25.7 47.9 96.8 93.9 Savings Total debt servicelexports 5.8 28.S 27.1 33.7 Present value of debt/GDP .. .. 58.5 65.3 Presentvalueof debVexports .. .. 211.2 218.1 Indebtedness 1976-86 1987-97 1996 1997 1998-02 (average annua/ growth) GDP 0.0 4.4 5.2 3.0 6.0 Ghana GNP per capita -2.8 1.6 2.4 0.4 3.1 Low-income group Exports of goods and services -7.4 7.5 19.8 -4.0 6.2 . STRUCTURE of the ECONOMY 1976 1986 1996 1997 Growth rates of output and Investment (%) (% of GDP) 4 Agriculture 50.6 47.8 44.4 47.4 40 Industry 19.2 17.2 16.6 16.6 20 Manufacturing 13.1 11.1 9.4 9.5 o Services 30.2 35.1 38.9 36,0 -2- 9 94 95 96 97 Private consumption 79.2 83.1 79.4 82.3 -40 General government consumption 12.2 11.1 12.3 10.4 GDI -GDP Imports of goods and services 16.0 20.1 37.6 33.5 (average annual growth) 1976-86 1987-97 1996 1997 Growth rates of exports and Imports (%) Agriculture 1.0 2.4 4.0 2.2 20 Industry -5.8 4.6 4.2 4.8 Manufacturing -B.1 2.9 3.0 4.0 10 Services 1.5 6.6 6.5 3.2 Private consumption -0.1 3.6 5.0 4.6 o General govemment consumption 2.2 5.6 3.4 -5.5 02 9 Gross domestic investment -4.7 6.1 -1.4 17.7 -10 Imports of goods and services -8.8 5.2 12.1 -0.7 Expons -0Imports Gross national product -0.1 4.5 5.1 3.1 Note: 1997 data are preliminary estimates. t The diamonds show four key indicators in the country (in bold) compared with its income-group average. I data are missing, the diamond will be incomplete. 48 Ghana PRICES and GOVERNMENT FINANCE 1976 1986 1996 1997 Infation (%) Domestic pricesInaIn % (% change) s0 Consumer prices .. 24.6 45.6 27.9 40 Implicit GDP deflator 28.1 41.7 33.1 29.6 Govemment finance 2 _ (% of GDP, includes current grants) 0 Current revenue .. 13.6 19.2 17.6 92 93 94 9s 96 97 Current budget balance .. 1.7 1.3 11 - GDP deflator t9 CPI Overall surplus/deficit .. -3.3 -10.4 -8.6 __ TRADE 1976 1986 1996 1997 (US$ mil/ions) Export and Import levels (USS millions) Total exports (fob) , 749 1,571 1,511 2,500T Cocoa .. 503 552 464 Timber .. 44 147 165 2,000- Manufactures .. .. .. .. 1,500 -* Total imports (cif) 805 2,119 1,964 JC0 Food .. 44 64 64 m Fuel and energy .. 125 261 278 909 Capital goods .. 129 489 396 0 91 92 93 94 99 96 97 Export price index (1995=100) .. 99 91 92 1 Import price index (1995=100) .. 76 102 96 | Exports *Imports Terms of trade (1995=100) , , 130 90 95 __ BALANCE of PAYMENTS (US$ mil/ions) 1976 1986 1996 1997 Current account balance to GDP ratio I%) Exports of goods and services 891 797 1,728 1,676 0 Imports of goods and services 951 968 2,388 2,265 Resource balance -59 -171 -661 -589 Net income -42 -106 -141 -142 11 Net current transfers -4 73 276 296 Current account balance -105 -204 -525 -435 .1 Financing items (net) 46 147 513 461 Changes in net reserves 59 57 13 -25 -15 Memo: I Reserves including gold (US$ millions) 113 624 606 466 Conversion rate (DEC, local/US$) 2.4 89.3 1,637.0 2,053.0 EXTERNAL DEBT and RESOURCE FLOWS 1976 1986 1996 1997 (USS inillions) Composition of total debt, 1997 (USS millions) Total debt outstanding and disbursed 711 2,743 6,141 6,339 IBRD 38 134 44 30 A A 30 IDA 56 446 2,530 2,617 G 6 Total debt service 52 228 476 578 F 422 IBRD 5 18 13 15 IDA 0 5 28 30 B: 2,617 Composition of net resource flows Official grants 31 118 206 216 E: 1,344 Official creditors 19 217 419 350 Private creditors -8 77 -61 -76 Foreign direct investment -18 4 20 36 Portfolio equity 0 0 100 46 D 60 c: 654 World Bank program Commitments 25 99 275 51 Disbursements 14 169 244 237 A - IBRD E - Bilateral Principal repayments 2 10 20 23 - IDA D - Other multilateral F - Private Principal repayments ~~ ~~~ ~~2 10 20 23 C - IMF G - Short-termn Netfiows 11 159 224 214 __o Interest payments 3 13 21 23 Net transfers 8 146 203 192 World Bank 9/29/98 IBRD 23606 3- 2- 5' ct 2- BURKINA FASO Ruin w Hamite~~~~~~~~~~~~~~8~h49 Pulimo/,.o)ulm kon H-0HmI A0 TnIi g j o zie X~ Chuchul,Eu¶Pb < ,.. Non tIPPE~~~~~~~~R 0 Nok PIdurr $~~~~~~~ Gm' kpnEr G HANA * ~~~~~UPPERGH N WEST Loo F h - > Y~~~ola )_OF pNasa no 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 5's BA§ ulenoso Pigu K ooo f ( 15 WA oo °orogo \' PRIMARY ROADS , ' WuPA d - - SECONDARY ROADS A, 0a ' aRTHERN ' 4 4 ) - TERTIARY ROADS oDbe.o a ,-* -i- RAILWAYS {Iy / '~% / \ a /en Z;bzugu ®i REGION HEADQUARTERS f;!;OC-arthe . 0< . Busunu 1 - ' X >|OChambuIgu j 8 i >'~ ° J NATIONAL CAPITAL 9 < OHale \ E Yawr4scO,)) ) r e TS ; WW REGION BOUNDARIES 9 \))fS S. \ \ J bml; !INTERNATIONAL BOUNDARIES The boundaries, co/ors, COTE f t > denominations and any other informotion shown \Ke\ on this ma p do not D IsTE imoply, on the port of B,mbao0, The World Bank Group, 0Chindif, any judgment on the legal * status of any territory, .1/ ~~~~~~~~~~~~~~~~~~~~~~~~or any endorsement bw ./mpo . rbK2n- D-a >4arz3 G