Z-/2 - i Document of The World Bank FOR OFFICIAL USE ONLY ReportN o. 11959-BR STAFF APPRAISAL REPORT FEDERATIVE REPUBLIC OF BRAZIL THIRD NORTHEAST BASIC EDUCATION PROJECT OCTOBER 29, 1993 Human Resources Operations Division Country Department I Latin America and the Caribbean Region This document has a resticted distribudon and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorizaton. CURRENCY EQUIVALENTS (as of October 1, 1993) Currency Unit: Cruzeiro (Cr.) Real US$1.00 = Cr$ 128.06 US$1 rmiillion = Cr$ 128,060,000 FISCAL YEAR January 1 - December 31 PRINCIPAL ACRONYMS USED AMETs Annual Management Efficiency Targets CAPES Fundaqao da Coordenacao de Aperfeicoamento de Pessoal de Nfvel Superior/ Agency for Advanced Training of Higher Level Personnel CAICs Centros de AtenPyao Integral a Crianqa e ao Adolescente/ Integrated Centers to Serve Children and Adolescents CPS Coordenac,o de Planejamento Setorial/Sectoral Planning tunit DDE Departamento de Desenvolvimento Educacional/ Educational Development Department EDU'LURAL First Northeast Basic Education Project FAE Fundacao de Assistencia ao Estudante/ Foundation for Student Assistance FNDE Fundo Nacional de Desenvolvimento da Educaqao/National Fund for Education Development INEP Instituto Nacional de Estudos e Pesquisas Educacionais/ National Institute for Education Studies and Research PAA Plano de Acao Anual/ Annual Implementation Plan PAI Programa Anual de Investimento/ Atinual Investment Program for civil works under the project PTA Programa do Trabalho Anual/ Annual State Education Investment Plan MEC Ministerio da Educacao e do Desporto/ Ministry of Education RSBG Regional St -ol Books Coordination Gtoup RTTG Regional Teacher Training Coordination Group SAEB Sistema da Avaliac,o do Ensino Basico, or SAEB/Assessment System fl'r Basic Education SE Secretarfa de Educacaao/ State Secretariat of Education SEF Secretarfa de Educac,o Fundamental/ Secretariat for Primary Education STN Secretarfa de Tesouro Nacional/ Secretariat of the National Treasury UESP Unidade Estadual Encarregada do Suporte ao Projeto/ State Project Support Unit UFIR Unidade Fiscal de Referencia UNDP United Nations Development Programme UNESP Unidade Nacional Encarregada do Suporte ao Projetof National Project Support Unit FOR OMCUL USE ONLY FEDERATIVE REPUBLIC OF BRAZIL THIRD NORTHEAST BASIC EDUCATION PROJECI Take f Contents LOAN AND PROJECT SUMMARY ..................... i-iii L BACKGROUND, ISSUES AND STRATEGY .1 A. Background ..... ...................... 1 B. Populaton, Income Distribution and Poverty. I C. Education in Bz. 2.2 D. Organization and Administration of Primary Education . 3 E. Education Finance . . 5 F. Major Issues in Primary Education. 6 G. Government Strategy in Education. . 9 H. Bank Role and Strategy ................., 9 L. Lessons Leamed from Past Projects ..... ....... 10 IL THEPROJECT ............................. 12 A. Project Goals and Objectives ............. : . . 12 B. Project Components ......... ............ 12 C. Project Description .......... ............ 13 XIa PROJECIS COSTS, FINANCING, PROCUREMENT AND DISBURSEMENTS .18 A. Project Costs ............. ........... 18 B. Project Financing .......... 20 C. Sustainability and Incremental Recurrent Costs .20 D. Procurement .22 E. Disbursements .26 F. Accounts and Audits .28 G. Retroactive Financing. 2 This reprt is based on the findings of a pre-apprnisal mission which vsited Brazil in Decwmber, 1992 coitg of Robin Horn (Mission Leader), Laurence Wolff (Education Speciaist), Sergio Dompisui (Architect, Consultant); Lia Rosenberg (reacher Training Specialit, Consultant); and b6se Amaral Sobinho (Education Management Specialist); and an appraisal mission in April 1993 which consisted of Robin Horn (Mission Leader); Jodo Batista Gomes-N-i (Education Management Specialist, Consultant); and Andre Ramalho (Procurement Spec' - t, Consultant). The peer reviewers were Barbara Bruns, Himelda Martinez, Donald Winkler, .nd Laurence Wolff. Mess. Alain Colliou and Ramer B. Steckhan are the Managing Division Chief and Deputment Directvr, respectively, for the operation. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. IV. PROJECT IMPLEMENTATION AND MANAGEMENT ..... 29 A. Project Readiness for Implementation .......... 29 B. Project Coordination .. z .................. 29 C. Project Implementation ................... 31 V. PROJEcT BENEF1TS AND RISKS ........ ........... 33 A. Project Benefits ........................ 33 B. Project Risks ......................... 33 C. Environmental Aspects .......... .......... 34 VI. AGREEMENTS REACHED AND RECOMMENDATION .... 34 LST OF TABLES IN MAIN REPORT Table 3.1 Project Cost Summary, by Component and by Expenditre Accounts ........... ........... 19 Table 3.2: Financing Pln by Component ....... .......... 20 Table 3.3: Summary of Proposed Procurement Arrangements ..... 24 7able 3.4: Estimated Disbursements ................. .... 27 LIST OF ANNEXES 1. Expenditure Accounts by Component, by State .39 2. Components and Expenditure Accounts by Year, by Statee 45 3. Procurement Methods and Prior Review Thresholds .... 51 4. Textbook Policy Issues and Project Schoolbook Procurement 52 5. The Project States: Basic Education System Statistics . . . 58 6. Basic Education System Performance Data .....63 7. Annual Management Efficiency Targets and Technical Notes 67 8. Guidelines forTime Slice Component .81 9. Performance Indicators for Components .84 10. Selected Documents Available in Project File .94 FEEA= RFJ5fl=[ OF BR TH NORTIEAS BNASIC EDUCATION O.C LOAN AND PROJECr Borrower, Federative Republic of Brazil eeficiaries: State and Municipal Education Secretariats in five Northeast Staes: Alagoas, Bahia, Paaba, Piauf, and Rio Grande do Norte Amount: US$ 206.6 million Iemwa: Payable in 15 years at the Bank's standard variable interest rate on a fixed amorbtdion schedule with a five-year grace period. &Weet Obie3leis and Description The project's overall goals are to increase student leanung, reduce grade repetition and dropout, and increase primary school completion in the five project states. To achieve these goals, the proposed project will deliver a package of essential educational inputs and services to all public school children in the first four grades in the project states, support a program of school renovation and expansion for urban and nrual schools, and provide the tools and incentives to improve the efficiency of education system management and administration. The project has five main objectives: (i) to establish a more efficient allocation and utilization of staff and financial resources in public education; (ii) to assure that pupils in gmdes one through four have access to a basic package of educational materials in all public schools; (iii) to increase the effectiveness of teachers and school directors in all public schools; (iv) to improve or expand school facilities for both state and municipal school systems; and (v) to stimulate innovations that promote educational quality in the region. To achieve these objecdves, the project will finance: (i) technical assistance, training, and office equipment (including computers) to assist the states in stremdining their education scraiats, increasing management efficiency, modenizing education planning, and developing management infornation systms; (ii) textbooks, workbooks, reading books, instructional guides, teaching kits, and other instructional materials for all state and municipal students in grades 14; (iii) in-service training to improve the clasroom effectiveness of teachers and the management skills of school directors; (iv) a time-slice of the states' five year programs for rehabilitating and expanding selected state and municipal schools, conditional upon the states' achieving their annual management reform targets; and (v) grants to support innovative primary education programs at the state and municipal levels. ..- Beefits: The project will directly improve the quality of schooling for approximately 3 million children per year in the first four grades of state and municipal primary schools in the five project states, which is approximately 75 percent of total primary enrollments in these states. The project target group represents about 45% of the total number of students enrolled in the first four grades of primary school in the Northeast. By improving school quality, it is expected that the project will contribute to reducing grade repetition and dropout, raising student achievement, and increasing attainment in the five states. The project will also improe the efficiency of state and municipal spending on primary education. Technical assistance in support of management reforms under the project should produce significant improvements in the functioning of state education secretariats, and will help state secretarats develop a new role as catalysts for raising municipal school quality as well. 315k1: There are several risks assoiated with this project. First, there is some chance that the states' commitment to implementing the politically difficult administrative reforms and other actions to improve education quality and efficiency may falter after the change in state governors in 1995 and that the expected improvements in state and municipal education systems might not occur. To the degree possible, this risk has been mitigated by the intensive preparaton work at the state level made possible thanks in part to a US$1.4 million Japanese grant and the states' sense of ownership in the project design and conditionality. To reduce this risk furiher, the project design includes annual reviews of states' implementation of their programs and an explicit system for reprogramming time-slice resources across states or to other pre!ect components in the event of nonperformance by any state. A second risk is slow impl.mentation of the other state-level components, due to weaknesses in administrative capacity. The project's central emphasis on strengthening states' institutional capacity, the amount and types of technical assistance planned, and the supervision and coordination role which the Ministry of Education is ewpected to play, will all help to mitigate this risk. A third risk is more deep-seated and persistent. It concems the fact that public school systems in the Northeast have traditionally served political, and not only educational, ends. Consequently, a significant share of school finances has been historically absorbed by politicians' need to provide jobs, award construction contracts, and dole out scholarships. Given the tenacity of this so-called *ulientelism* in the Nortieast, the project's goal of rationalizing education management may be undermined. It is hoped that close and intense supervision, both by the Ministry of Education and the Bank, accompanied by a careful and early joint review of the entire project, will provide opportunities to revisit the project design and activities, and review the targets to keep the education institutions in the Notheast on the steady path of reform. E,sim&td Qosts "NectComponents Local Foreg Tbtal US $ MUiMlion Education Managemat 11.9 5.9 17.8 Educational Materials 87.4 18.3 105.7 Teacher Training 26.4 0.0 26.4 Impoving School FaciLites 154.5 4.3 158.8 Innovations Fund S.0 TOW Bse Coasts , Physical Contingencies 27.0 1.4 28.4 Prie Contingencies 22 Li4 lTOW Prc3ect Costs 335L. Of Which: Ixes (15%) 50.3 50.3 Enancing Mla: Fedeai Govenment 74.8 0.0 74.8 State Goverments 85.6 0.0 8S.6 IBRD _7_ nu TOTrAL Estinate Disbursements Bank FY PY94 PY95 FY96 FY97 FY98 PF9 Annual 25.8" 51.4 52.0 41.5 25.5 10.4 Cumulative 25.8 77.2 129.2 170.7 196.2 206.6 1 acaiag u$Ss milL in uaetivs fbming. Rate of Retum: Not applicable Poverty WateUoy: Program of TIrgeted Interventions. Tbahing materls, teacher training, and school renwviations and expansions would be proided to low-income urban and rurl whoolL FEDERATIVE REPUBLIC OF BRAZIIL THIRD NORTHEAST BASIC EDUCATION PROJECT STAFF APPRAISAL REPORT I. BAC&MGOUND ISSUMdr ANI) STATEGY A. Background 1.1 With a land mass of over 8.5 million km2 and a population of almost 157 million, Brazl is the larlest and most populous country in Latin AmArica and ;as the region's largest and most diversified economy. While B.azil experienced high per capita income growth in the 1960s and 1970s, the 1980s were characterized by economic stagnation, high inflation and the inability of successive governments to stabilize the economv. These problems have per3isted into the 1990s. Although in 1991, GDP increased slightly and inflation abated somewhat, in 1992 GDP growth was negative (- n.9 percent) and inflation reached 1150 percent for the year. Macroeconomic management in Brazil is complicated by the large stock of external debt accumulated during the 1970s and 1980s (US$116 billion it 1991) and the rapid buildup in recent years of a high level of intenal public debt. B. Population. Inowe Distribution and Poverty 1.2 Although Brazil's per capita GNP of US$2,910 in 1991 was the highest in South America, income distribution is highly unequal and an estimated 40 percent of the popultion lives in poverty (defined as having per-capita income below US$30 per month). The incidence of poverty is highest in the Northeast region. The nine states of the Northeast, with about 50 million residents, represent only 30 percent of Brazil's total population, but account for 56 percent of the Brailian poor. The severity of poverty is also worst in the Northeast; the 'poverty gap' in the Northeast is two to three times larger than in other regions.' Higher rates of poverty in the Northeast are not just the result of lower average levels of income in the region, but also of more severe income inequality than for the country as a whole. 1.3 Low levels of education are widely recognized as a characte'istic associated with poverty, and education appears to be particularly important in explaining differences in income in Brazil. According to recent research, half of the differences in average incomes in different urban areas in Brazil can be explained by differences in "ducational 1. 'overty gap' iptxes measure both the number of people living below a povety line and the degree to which their incomes fall below the poverty line. - 2 - attainment.2 Moreover, returns to education, which in general are high in Brazil, are especially large in regions with above average incidence of poverty, such as the Northeast. C. Education in Brai 1.4 Brzil's levels of human resource development are exceedingly low compaced with other countries in the region and especially compared with other countries of similar per capita income. In 1990, mean years of schooling for the adult p( pulation in Brazil was only 3.9 years, approximately the uame average educational attainment as El Salvador, Guatemala, and Nicaragua--countries with less that half the income level of Brazil.3 In comparison, adult populations in Arger.tina, Colombia, and Venezuela, Latin American countries with approximately the same per capita income as Brazil, achieved in 1990 an average educational level of 8.7, 7.1, and 6.3 years, respectively. Moreover, in addition to undermining the establishment of a stable social and political system, underdevelopment of human resources threatens the long-te, m growth of the Brazilian economy. Economic success in a highly competitive world economy and a more open domestic economy increasingly depends upon the productivity, degree of innovative behavior, and trainability of the Brazilian labor force. It is highly questionable whether Brazil can expect to meet these challenges with a labor force possessing, on average, less than four years of primary education. 1.5 Although educational attainment in Brazil is extremely low, the country has made significant progress over the past forty years in expanding access. Today, 92 percent of Brazilian children enter primary school, compared to less than 40 percent in 1950. Even in the Northeast, close to 90 percent of children at some point enroll in primary school. The overriding problem in Brazilian education today is not access, but it is educational achievement. Two-thirds of Brazlian children never complete primary school, and learning levels, even for those who stay in school, are very low. Strikingly, the average Brazilian student spends 7.7 years in primary school - -longer than in any other Latin American country, and almost enough to allow completion of the eight year pnmary school cycle. Yet during those 7.7 years, the average student does not even complete the fourth grade. Nationally, only 2 out of every 100 students complete all eight grades of primary school without repetidon; in the Northeast, only 1.2 out of 100 do so. The great majority of Brailian primary students are locked in a cycle of 2. Reis, J. G. Almeida dos and Barros, R. Paes de (1991), Wage Inequality and the Distribution of Education: A Stdy of the Evolution of Regional Differences in Ieoquality in Metropolitan Brazil,' Jowamil of Development Economics, Vol. 36, pp. 117-143. 3. United Nations Development Proramme, Human Dewtlopmen Repon 1992. New York: Oxford University Press, 1992. - 3 - low leamning achievement and costly repetition. It is estimated that students repeating grades cost the Brazilian education system over US$2 billion per year, or 30 percent of current public spending on primary education. With lower repetition and more efficient student flows through the primary school system, more education spending could be focused on improving school quality. 1.6 Educational attainment is lowest in the Northeast region, where 76 pe.cent of the population has completed four years or less of schooling and 37 percent of the population has completed only one year or less of schooling. In the Northeast, 80% of all children do not complete primary school. There is also a significant gap in schooling attainment batween urban and rural dwellers. The urban population completes on average 4.3 years of scnooling. while the rural population completes only 1.7 years of schooling. D. Qranization and Administration Pof rim=ry Edution 1.7 Brazil supports an extensive ard decentrlized education system at all levels, beginning with two years of pre-school (ages 4-6), and continuing (at age 7) throuigh eight grades of prmary school, 3-4 years of general secondary or technical school, and higher education at the undergraduate, Master's and Ph.D. levels. Although prmary education has been compulsory for some time, the 1988 Constitution made pre-school compulsory as well. Nevertheless, pre-school coverage is very low (about 25 percent of the age group is covered) and to a large extent accounted for by the private sector. 1.8 All he levels of government (federal, state, and municipal), as well as the private sector and community associations, provide education services. The quality of schooling varic considerably by region and by type of provider. Generally, because of the pervasive low quality public education throughout much of the country, any parents who can afford to send their children to private schools, from pre-school through secondary school, while poor and most lower-middle class children attend public schools. Children from the public school system are almost always inadequately prepared to compete with students who have studied in private schools for spaces in the heavily subsidized, elite public university system. As a result, government expenditures on higher education diproportionately benefit the rich and middle class. 1.9 Over 28 million Brailian children attend primary school, with 57 percent of them enrolled in state schools, 30 percent in municipal schools, 12 percent in private schools and 1 perceit in federal schools. Each of Brazil's 27 states has a secretariat of education to administer its netw&x' of schools. Educational administraticai in Brazil's 4,500 municipalities is a more varied phenomenon. In major metropolitan areas, municipal school systems generally have secretariats of education similar in structure, - 4 - functions and administrative capacity to the state secretariats. However, in smaller municipalities and particularly in rual areas, municipalities typically have only a small Municipal Education Office, and somedmes no distinct educational administration. The fragility of most municipal education systems is a major issue in Brzil, particularly as, since the fiscal reform of 1088, government revenues are increasingly being devolved to the municipal level with the expectation that these will assume increasing responsibility for the delivery of social servces. In the N%rtheast, where municipalities already account for a higher share of primary enrollments (45 percent) than state-run schools (41 percent), the issue is particularly acute. 1.10 The federal Ministry of Education and Sport (MEC) operates through six national secretariats (for basic education, secondary and technical education, higher education, special education, special projects, and sports), one executive secretariat, and several affiliated agencies. The National Secretariat for Basic Education (Secretaria de Educacdo Fundamental, or SEF) is responsible for defin;ig tiational policies for pre-school ard primary education, evaluating state, municipal and private school performance, and providing technical and financial assistance for improving education quality. Approximately half of the SEF staff are assigned to the Educational Systems Development Department (Departamento de Desenvolviento Educacional, or DDE). DDE is the key unit within SEF responsible for primary education policy, oversight, and technical assistance to states and municipalities. DDE is responsible for reviewing annually states' and municipalities' proposed investnent programs (programas do trabalho anual or PTA), which may be financed through federal transfers (see below, para. 1.11), and making technical recommendations about funding allocations at the state and municipal levels. 1.11 The National Fund for Education Development (Fundo Nacional de Desenvolvimento da Educado), or FNDE, has the legal status of a foundation, but reports to the Minister of Education. FNDE is she principal source of funding for primary education at the federal level in Brazil, with an annual budget of roughly US$1.5 billion. FNDE revenues come from the salrio-educaCo, a payroll tax on industrial employees earmarked for primary education. Two-thirds of salro-educaJo revenues, caUed the *state quota," are returned automatically to the states mn accordance with the- revenues they generated. The remaining 1/3 of the sakno-educa ao revenues, called the -federal quota,' is allocated to states and municipalities by SEF on the bais of criteria defined by MEC and transferred to the states and municipalities by FNDE. 1.12 Other branches of MEC with important responsibilities for primary education are the Sectoral Planning Unit (Coordenapdo de Planejamento Setorial, or CPS), which is responsible for education statisties, and the Agency for Advanced Training of Higher Level Personnel (Fundafdo da Coordenardo de Aperfeipoamento de Pessoal de N(vel Superior, or CAPES), which is responsible for human resource development, including -5 - the award of scholarships and fellowships for graduate and post-graduate studies. The National Institute for Educational Studies and Research (InstUutco Nacional de Estudos e Pesqulsas Educacionais, or WEP), which like CAPES and FNDE has th.e legal status of a foundation, carries out educational evaluation and research. INEP is responsible for administration of the national student assessment system (Sisima da Ava1iapdo do Eisno Bdsico, or SAEB). SAEB is a standardized achievement test program designed to be administerd every two years to a national sample of students in the first, third, fifth and seventh grades of primary school. INEP is also responsible for analysis and dissemination of the results. Finally, the Foundation for Student Assistance (Rudaf4o de Assist:ncia ao Estudante, or FAB) administers the national textbook and school lunch programs. All of these agencies except CPS (which reports to the executive secretary of ME) hold more or less parallel positions in the organizational structure of MEC, and their heads report directly to the Minister of Education. E. Education Finance 1.13 Total public spending on education by all levels of government an.ounted to about US$11 billion in 1986 (the last year for which consolidated public spending information is available) and accounted for approximately 23 percent of total social spending and 4 percent of GDP. At the primary level, states account for about 65 percent of public expendituret while municipalities contribute 25 percent and the federal government the remaining 10 percent. Federal spending is channeled to state and municipal schools through the saldnio-educafao financial transfers admunistered by the FNDE, through in-kind transfer programs such as the national school feeding and textbook distribution programs handled by FAB (about US$800 million per year). Of the total public spending on education (by all levels of government), about 50 percent goes for primary education, 25-30 percent for higher education, 10 percent for secondary education, and the rest for other adult literacy and vocational programs. 1.14 The 1988 federal constitution mandated that the federal government apply at least 18 percent of its total annual tax receipts to education. State and municipal governments, in turn, are obliged to spend 25 percent of their total revenues from taxes (mcluding tax revenues transferred from other levels of government) on education. The principal revenue sources at the state level are the value-added tax (25 percent of which is passed on to municipal governments), a federal block grant called the State Particpation Fund, a 5 percent surcharge on the federal income tax, a tax on property transfers, and the sal4,io-edwcaao. Municipal revenues for educafton come from a federal block grant for municipalities, the municipal share of the value-added tax, urban real estate taxes, a tax on services, and transfers from the federal and state governments. -6- F. Major Issues in Piimaiy Educadon 1.15 Low Primary Completion PaJ.. The overwhelming issue in Brazilian education is the low educations attainment of the population, which is a dirccet result of extraordinarily high repetition and dropout rates in primary education. Nationally, over ffty percent of students in the first grade of primarv school each year are rpeaters. This first grade failure rate is among the highest in Latin America. In part out of frustration with their lack of progress, 63 percent of children drop out of primary school before completing it. Other problems in the education sector -such as Brazil's low participation rates in secondary education and the inequality of access to heavily-subsidized higher education -are directly related to the inability of the Brazilian education system to get more children through primary school. 1.16 Low Qiualty and t ow Efficiency in Public Education. Close to 90 percent of all primary students attend public schools, and the low average quality of these schools is a major causal factor in Brazil's high primary school failure (i.e., dropout and repetition) rates. High repetition rates and the clogged school "pyramid" --about 70 percent of total enrollments in Brazilian primary education are concentrated in the first four grades-also indicate the low efficiency of the public system; although in 1990 average spending per student was only about US$250 per year, it was costing the public system US$5,500 (or 22 student-years), on average, to produce a primary school graduate. 1.17 Research conducted in the Northeast of Brazil has shown that education quality and efficiency are closely linked. In particular, investments in school quality (such as provision of textbooks and other educational materials, making sure that school facilities met minimal standards, and training teachers) are associated with an increase student learning, as measured by achievement test scores. Unfortnately, Brazilian school systems do not undertake these efficiency-inducing investments. Major reasons for their failure to do this include: (i) inefficient management; (ii) inadequate levels and inefficient allocation of spending; and (iii) inappropriate teaching strategies. 1.18 Inefficient management and governance. The strucure of education management in Brazil is unduly complex and ill-defined, with overlapping functions and poor coordination among the different levels of government. All three tiers of government-federal, state, and municipal- are involved in financing and managing education at all four education levels (pre-school, primary, secondary and higher), and the enrollment shares and division of responsibilities are different at each level. Primary education enrollments are divided among schools run by municipalities (35 percent), states (55 percent), and the private sector (10 percent). One of the major problems in primary education is that there is no coordination of planning between state and municipal systems, with the result that state and municipal school systems compete for students in some locations. -7 - 1.19 Brazilian primary education is also characterized by extreme differences in educational quality across regions, states, and municipalities. This variation reflects the failure of the Ministry of Education to set national norms and to assist in the redistributiion of education spending in such a way as to help municipalities and states of different income levels achieve minimum quality standards. MEC has also done little to encourage a more rational division of responsibilities between state and municipal school systems; in fact, the Ministry of Education has traditionally channeled discretionary funding direcdy to selected municipalities, thereby undercutting the potential role of the states in working with municipalities to achieve homogenous state-wide quality standards. At present, MEC is making efforts to rationalize its support to basic education, including: (i) adopting trnsparent, technical and need-based criteria for FNDE funding transfers to states and municipalities; (ii) offering technical assistance to states and municipalities seeking to improve education quality; and (iii) developing core oversight, research and evaluation functions, such as national standardized testing to provide information about actual levels of student learning. 1.20 Clientelism and nepotism, rather than competency and need, have frequently dominated education sector management decisions in Brazil. Education officials and teachers, especially those in municipal systems, have often been hired on the basis of family or political connect.ons, irrespective of qualifications. This practice is changing throughout Brazil, but it remains a tradition to contend with in smaller municipalities and in less-developed regions, such as the Northeast. At the state level, nepotism is somewhat less pronounced (today, most state-level teachers enter the profession via qualifying exams, called concursos), but clientelism and over-staffing are still prevalent. In several Northeast states there is one education employee for every six or seven students enrolled (elsewhere in Latin America, such ratios are commonly 1:20 or more). 1.21 Inadequate and/or Inefficient Spending on Primary Education. Total education funding by all levels of government in Brazil amounts to about 4 percent of GDP. Average spending per primary student nationally- about US$250 per year-is relatively low for Latin America, and especially for a country of Brazil's per capita income. As noted earlier, education spending varies greatly with state and municipal e capita income and local revenue capacity. Some municipal systems, particularly in the Northeast and North, spend as little as US$30 per student annually, and the poorer states also spend well below the national average. Such under-funded systems cannot pay salaries adequate to attract competent teachers or administrative personnel and the amount of money available for books, school repairs (mcluding such basics as functioning sanitary facilities) and other materials is grossly inadequate. Many municipal school systems in Northeast Brazil pay teachers less than US$20 per month; reflecting this, close to half of all municipal school teachers in the Northeast have themselves not completed primary school. - 8- 1.22 Even in those state and municipal systems where overall funding levels are above the national mean, expenditures are heavily skewed to personnel costs. Allocations for instructional materials and school maintenance are marginal. In many cases, the high share of spending on personnel is the result of overstaffing, particularly of personnel woridng outside of the classroom, rather than high average salaries. Indeed, in most Brailian school systems, overstaffing has been associated with the progessive compression of average salaries, such that the quality of teachers, administrators and supervisors has gradually declined and people with appropriate or specialized skills cannot be attracted. Finally, employees at all levels have little accountability and few incentives to perform; it is not unusual for employees on a 40 hour per week contract in the Northeast to work no more than 15 hours per week. Most of these problems affect the civil service generally in Brazil, but they are especially visible in the education sector, which generally accounts for 40-50 percent of total state employment and an even higher share of municipal employment. 1.23 Lack of Books and Educational Materials. The lack of basic textbooks and reading books in primary school classrooms throughout Brazil, and particularly in the Northeast, is a major reason for low education quality and efficiency. With poor initial preparation and sporadic inservice training, teachers are further handicapped by their lack of access to instructional material that could stimulate children's interest in learning. Unfortunately, chronic shortages of books and other basic teaching materials over many years have resulted in schools that do not offer children real opportunities to learn. One of the main reasons for the absence of instructional materials in the nation's schools is the lack of an effective national schoolbook fmancing policy (see Annex 4). A condition of ngtatios for the current project, which was fulfilled, was for the Government to bring to negotiations a letter of commitment to implementing, in a specified time-frame, a new national schoolbook financing policy, acceptable to the Bank (para. 6. l.(a)(i)). One month before negotiations, the Minister of Education formulated the Govemment's new textbook financing policy: Resolution Number 6, published in Brazil's Official Gazette (Diario Oficial) on July 16, 1993. This Resolution was accepted by the Bank as the Government's policy letter referred to above (Annex 4 provides a description of this Resolution). During negotiations, it was agreed that a study of alternative book financing mechanisms mandated in the Second Northeast Basic Education Project would be revised to address the issue of how to implement and maintain the new textbook financing policy. -9 - 1.24 Inappropriate Teaching Strategies and the "Culture of BRpettion". Teachers in Brazil are socialized to assume that a substantial part of their job is to weed out the good students from the bad. Pedagogical standards are demanding and very inflexible. For example, children are expected to learn to read and write in the first year of primary school, despite the fact that most have not attended pre-school and many low-income children have never seen a book. The concept -common in developed countries-- of giving remedial assistance to children lagging behind, is alien to BraziLian teachers, and classroom management techniques for helping children of differential ability such as small group work, after-school sessions, and cross-peer tutoring are vitually nonexistent. G. Government StaUtegy in Education 1.25 There is increasing recognition by the Ministry of Education (MEC) that the critical problem of low educational attainment and achievement in Brazil is rooted in the poor quality and low productivity of the public basic education system. MEC has recently instituted a number of policy changes designed to improve the efficiency and accountability of federal education spending. In late 1991, after completing an evaluation of the operations of the FNDE, MEC concluded that FNDE was not fulfilling its redistributive role, in terms of equalizing state and municipal spending on basic education, and that funds were often transferred without clear crteria. 1.26 Consequently, MEC established need-based, objective criteria for FNDE transfers and has publicized these in a document called Sistemoadw para o Financiamento dos Projetos na Area da EdAcao Bdsica. These criteria are: i) the size of the school-aged population in each state; and ii) state = capita income, in order to improve equity. Unfortunately, MEC has yet to disseminate financial accounts that compare these criteria with details on the actual amounts transferred to the states and municipaliti. MEC has also decided that FNDE should play more of a role in supporting investments that improve the quality of schooling, such as teacher training, and educational "software" (books and materials), and n t just school construction. For its 1993 education transfers, MEC has also developed special "premia" for states and municipalities which adopt measures to improve school effectiveness and to professionalize the teaching force (including such steps as setting competency criteria for recruitment and promotions and improving average salaries). H. Bank Role and Strategy 1.27 The Bank's country assistance strategy in Brazil focuses on poverty reduction. Economic stagnation tiroughout the 1980s, accompanied by an increasingly skewed income distribution, has left an estimated 60 million Brazilians-40 percent of the population-living in poverty, the - 10- majority of whom (56 percent) are in the Northeast. Brazil's under-investment in human resources development has not only undermined the country's long term economic potential, but has contributed substandally to the extreme income inequality and high poverty in the region. Consequently, along with encouraging Brazil to adopt macroeconomic policies that could stimulate broad-based growth, the Bank's assistance strategy emphasizes investments in human resources and the targeting of these investments to the poor to increase their labor incomes, and more broadly to promote economic growth. Because of the Government's dominant role in funding and operating the institutions that deliver education and health services, Bank strategy also stresses increased efficiency of public spending in these sectors. Within education, the Bank's focus is primary education, because Brazil, and particularly the Northeast region, remains far from achieving universal completion of primary education, and because primary education has the highest social returns and the greatest potential for increaing the equity of economic opportunity, as well as for promoting economic growth. The Bank's efforts in the social sectors tend to be more concentrated in the Northeast, where relative to the country as a whole, poerty is highest, human resource development is lowest, and education and health systems are weakest. i. Lessons Learned from Past Projects 1.28 Bank Education Lending to Brazil. World Bank lending to Brazil for education began in the early 1970s. Initially, Bank lending emphasized skills training, especially at the secondary level. Early projects were in the areas of vocationally-oriented secondary, technical, and agricultural education. More recent projects have involved assistance to the feder technical schools and state-level technical schools (rechnician Training, La. 2366-BR, 1983), basic research at federal universities (Science and Technology, Ln. 2489-BR, 1985), and the vocational education system (Skllls Formation, Ln. 2810-BR, 1987). Both the Technician Training and Sldlls Fornation projects suffered from slow execution and ended up being canceled at the request of the federal government last year. Slow execution of these projects reflected lack of interest on the part of the federal government, perhaps because the amount of Bank financing was marginal in comparison with overall federl funaing for the secondary technical schools and the vocational system. 1.29 I line with a shift in overall World Bank policy, Bank lending to Brazil in the 1980s focused increasingly on primary education, particularly in disadvantaged regions. The Bank's first primary education project was the First Northeast Basic Education Project (Ln. 1867-BR, 1980), locally known as EDURURAL, which ended in 1987. This US$32 million loan, approved in 1980, sought to improve primary schools in rural areas of the Northeast by financing classroom construction and upgrading, providing textbooks and other teaching materials, providing in-service teacher - 11 - training, and strengthening institutions in selected poor municipalities throughout the nine Northeast states. An important feature of the project was support for a large-scale, longitudinal study to evaluate the impact on student learning and the cost effectiveness of the various types of investment financed by the project. The US$40 million Bank loan in support of the Urban Basic Education Project (Ln. 2412-BR, locally known as Monhangara) was approved in 1983. The main objectives of this project were to support the expansion and improve the quality of primary school systems in selected rapidly growing urban areas in the North and Center-West regions. Investments under the project were targeted to low-income neighborhoods. After many delays and a two-year extension, the project ended in early 1991, and approximately 18 percent of the Bank loan was canceled. 1.30 The third education project is the Innovations in Basic Education Project (US$245 million loan, Ln. 3375-BR, 1991), known as INNOVATIONS, which is now in its second year of implementation. It supports a range of interventions, including the extension of the school day for grades 1 and 2 and consolidation of a new pedagogical approach known as the ciclo bdsico. Like the EDURURAL project, this project includes an important research and evaluation component that will contribute to understanding what types of education investments are most cost effective in helping low-income childreni to learn and perform better in school. No information on its impact is available yet. Because of Sao Paulo's greater financial and institutional capacity, this was conceived as a free-standing state project, whereas the present project is administered with the authority and oversight of the federal Ministry of Education (MEC). 1.31 In summary, the design of the present project is substantially based on lessons learned from past projects, particularly the EDURURAL and the Monhangara Projects.4 Specifically, the three critical lessons that have driven the design of this project are: (i) textbook provision and school upgrading are highly efficient investments; (ii) teacher skills and classroom management techniques are promising investments whereas small doses of subject matter training for teachers are not; and (ii) effective implementation and longer-term sustainability of education projects depend strongly on the improvement of educational management at all government levels, and on the establishment of effective management systems, including systems to manage sector and school-level information, project monitoring information, teacher training activities, and textbook identification, procurement and delivery activities. 4. The Second Northast Basic Education Project (La. 3604-BR, Approved May 13, 1993) was designed in parallel with the present project, and follows the same prnciples. The key difference between the two is that the former finances education quality improvement in a different set of Northeast states (Ceari, Maranhio, Pemnambuco, and Sergipe). - 12 - II. THE PROJECT A. Project Goals and Objectives 2.1 The project's overall goals are to increase student leaning, reduce grade repetition and dropout, and increase primary school completion in the five project states. To achieve these goals, the proposed project will deliver a package of essential educational inputs and services to all public school children in the first four grades in the project states, support a program of school renovation and expansion for urban and rural schools, and provide the tools and incentives to improve the efficiency of education system management and administration. The project's five specific objectives are: (i) to streamline state education bureaucracies and help them achieve a more efficient allocation and utilization of resources; (ii) to increase students' access to and utilization of textbooks and other instructional materials in all public schools; (iii) to improve the skdlls of teachers and school directors in all public schools; (iv) to improve or expand school facilities for both state and municipal school systems; and (v) to stimulate innovations that may serve to advance educational quality in the region. B. Proiect Components 2.2 The project is designed to achieve these five objectives by means of the following components: (a) Stmlinng Education Management: Provision of technical assistance, training, and equipment to assist the states in reducing inefficiencies in staff and resource allocation, suramlining education management systems, modermizing education administration, and achieving a significant improvement in the efficiency of education spending (US$ 19.9 million, representing 5.4 percent of project costs). (b) Delivering an Essential Package of Educational Materials: Provision of textbooks, workbooks, reading books, and other didactic materials for all state and municipal students in grades one through four (US$ 118.7 million, representing 32.4 percent of project costs). (c) Training Teachers and School Directors: Provision of technical assistance, development of materials, and support for intensive on-the-job training to improve the classroom effectiveness of teachers and the management skills of school directors (US$ 29.9 million, representing 8.1 percent of project costs). - 13 - (d) Improving School Facilities: Financing of a time-slice of each state's five-year infrastructure investment plans. Financing for states' annual investment programs will be conditional upon states' attainment of agreed quantitative annual targets for reducing overstaffing and for increasing the share of state education expenditures on educational materials. If a state does not meet its agreed targets in any given year, MEC and the Bank will reallocate time-slice funds to other, better-performing project states. (US$ 193.3 million, representing 52.7 percent of project costs). (e) Stimulating Educationl Innovation: Establishment of a fund to support, evaluate, and disseminate innovative programs proposed and developed by project states and municipalities to improve primary education quality (US$5 million, representing 1.4 percent of project costs). C. Project Description Component 1: Streamlning Education Management (US$19.9 million including contingencies) 2.3. Reforming Education System Managemnt. As part of project prepaation in early 1992, each of the states participated in a management audit of its education secretariat, carried out by independent consulting firms. These audits identified inefficiencies in the deployment of staff and financial resources as one of the most critical constraints to education system performance in each of the five states. During project preparation, all five project states agreed to establish indicators of personnel and financial management efficiency, and agreed on a set of annual targets for these indicators. One of these indicators is the staffmg ratio, which is defined as the ratio of -students enrolled in the state system" to "the total number of staff employed by state education secretariat." The second efficiency indicator is materials ratio, which is defined as the percent of state *educational expenditures spent on 'consumable materials" (including such items as paper, pencils, didactic materials, and chalk) relative to "state expenditures spent on payroll and personnel benefits." The full set of annual targets for five years for both the staffimg ratio and th'! materials ratio is collectively referred to as the Annual Mnagement Ehiciency Targets, or AMETs (see Annex 8 for a full description of these indicators). Each state brought to negtiations a Letter of Commitment, signed by the Governor, affinring the state's commitment to achieving its own AMTs, agreed by that state, MEC and the Bank (para. 6.1 .(b)(i)), and Annex 8). To validate these commitments, a commission established by the Bank and MEC visited each of the project states at the time of appraisal and two weeks prior to negotiations to review payroll and financial records. At neggdafi=ns, each state also submitted a copy of its 1992 final annual balance, indicating - 14 - education expenditures by category of expenditure, to validate the baseline measure for the materials ratio indicator (para. 6.1.(b)(u)). 2.4 At negotiation the States agreed that, by May 30 of each year, beginning in May 1994, MEC would conduct an assessment of each state's progress with respect to its agreed quantitative AMETs for that year (par. 6.2.(e)(i)); and that by June 30 of each year, beginning in June 1994, MEC would determine, in consultation with and in a manner satisfactory to the Bank, the amounts to be allocated to each eligible state for the npmoving schoolfadclities component for the f llowing calendar year (para. 6.2.(e)(ii)). There would be two conditions of disbursement for each state for the finances associated with the subsequent year's execudon of the improing school facilties component. The first is agreement with the Bank on the annual investment program. (the PAI), that is, on the program of state and municipal construction subprojects and equipment and furniture purchases to be executed during the following year (see para. 6.4.(a)). The second is achievement by that state of its agreed AMEIs (see para. 6.4.(b)). Funds for the 1994 schoolfacilities component will be automatically allocated to the five project states when the project becomes effective. Subcomponents of the Education Management Component 2.5. The management studies also pointed out weaknesses in states' processing of information, organization, administrative systems and controls, and physical planning. lTe states' operational plans set out a number of detailed, time-bound recommendations for organizational and management changes that the states could implement over the project period. The project will support the state Secretariats of Education (SEs) efforts to improve their administrative efficiency through the subcomponents of the Education Management Component described in the subsequent five paragraphs. Coordination of these education maiagement activities across the project states will be carried out on a regional basis by MEC, in consultation with representatives of these states. 2.6. Developing Effective Educational and Financial Planning Sysms. This subcomponent will seek to strengthen SEs' planning capability through the provision of technical assistance to planning units in each SE for: (i) analyzing financial and system data; (ii) developing plans for school construction and maintenance, material, and human resources development; (iii) managing resources mobilization and allocation; and (iv) overall education policy-makdng. In addition, this subcomponent will support the carrying out of a study to define minimum school quality standards with respect to the deployment and level of human and physical resources; and will support the provision of training to staff. 2.7. Improving Human Resources Management. This subcomponent will seek to improve SEs' human resources m.anagement capability through carrying out studies to: (i) review the quality and - 15 - timeliness of the personnel census database and its correspondence with the payroll database; (ii) assess the procedures and practices in the SEs' human resources departments; (iii) survey staffing requirements and salary schedules by functional task; and (iv) analyze policies and practices on personnel compensation and incentives. This subcomponent will also help financei technical assistance to implement the recommendations of these studies and, as appropriate, provide training to senior staff. 2.8. Establishing School-Level Ouality Monitoring ystems. The objective of this subcomponent is to improve SEs' capacity to assess school quality through: (i) the establishment of a basic school-level monitoring system for each SE to develop and periodically update school profiles; (ii) the provision of technical assistance for the implementation and monitoring of the minimum standards identified by the study referred above (see para. 2.6, above) and for the dissemination of the respective information to the public. 2.9. Developing a State Education Management Informatign System. This subcomponent will provide technical assistance to the project states for designing an integrated management information system and developing an integrated relational database of school profiles, personnel, materials and facilities. It will also support the installation, testing, and routine and emergency maintenance of the associated computer systems. In addition, this subcomponent will help finance the acquisition and udlization of computer systems, including, inter alia: (i) local area networks and database systems; and (i) the provision of training on survey instrument development, data gathering and compilation procedures, data entry, and computer fundamentals. 2.10 Establishing State-Level Project Support Units. This subcomponent will finance technical assistance, studies, and equipment required by the state level units responsible for coordinating the project, UESPs (Unidades Estaduais Encarregada do Suporne ao Projeto). The tsks of the UESP include monitoring the states' progress in implementing their PA& and AMETs, overseeing the implementation of other project components, and providing quarterly computerized reports on project execution progress to the Nat:onal Project Support Unit (UNESP) in NEC. Consultant assistance, equipment, and travel will also be financed under this subcomponent. The salaries of full-time unit staff, however, will be paid by the states. Component 2: Delivering an Essential Package of Teaching Materials (U1S$118.7 million including contingencies) 2.11 The project would seek to improve the quality of basic education in state and municipal schools through the provision of textbooks, supplementary reading books, and didactic kits to first through fourth grade children in all state and municipal schools. Textbooks. workbooks. and - 16 - teacher guide would be provided as follows: (i) 2 textbooks and the equivalent of two workbooks per year for each student in grades 1 and 2; (ii) 4 textbooks every two years for each student in grades 3 and 4; (iii) 2 workbooks per year for each student in grades 3 and 4; (iv) 2 teaching guides per year for each teacher of grades 1 and 2; and (v) 4 teaching guides every two years for each teacher of grades 3 and 4. Supplementary reading books would be provided as follows: (i) approximately 50 reading books for each grade in every 1st through 4th grade classroom in 1994, and approximatelv 12 additional books for each grade in every 1st through 4th grade classroom, from 1994 to 1997. Finally, di:dactc Id would be provided as follows: all first through fourth grade classrooms would receive teaching kits that may include such instructional items as maps, posters, and other pedagogic materials designed to enrich the teaching-learning process for children just leaniing to read. These kdts may also include, inter acia, math games, alphabet blocks, puzzles, and simple science kits. The exact list of items will be defined by each state, with advice from MEC. School directors and teachers should receive training in the use of these materials under the Training Teachers and School Directors component before materials are supplied to their schools. Component 3: Training Teachers and School Directors (US$29.9 million including contingencies) 2.12. The project will support two in-service training pi'grams for state and municipal primary school teachers and a specmal leadership training program for state school directors with the objective of improving the quality of basic education staff. Specifically, the component will provide technical assistance to help the SEs carry out the planning, development .nd provision of training, refresher seminars, and self-instruction materials for teachers, with the objective of improving their use of books and didactic mateħi-Is during instruction, maldng more efficient use of class time, and reducing grade repetition. This component will also help SEs in the planning, development, and provision of leadership training to school directors and school-based administrators and technical staff. 2.13 Component 4: Improving School Facilities (US$193.3 million, including contingencies) 2.14 During project preparation, each Northeast state prepared a multi-year investment program consisting of, inter alia, school refiubishment, expansion, and, to a more limited degree, new construction. During appraisal, these investments were evaluated and agreements were reached with each state on a realistic annual estimated volumet of physical investments for the project period. This $193.3 million component represts about US$13 per state and municipal student (grades 1-4) per year for five years. It is considered by MEC, the Bank, and the states to be a reasonable overall allocation of expenditure for these states (roughly 10 percent of total spending per student, per year). The agreed level of - 17 - investment for the project period is also considerably below the investment needs prevalent in the five states (physical school conditions in many areas are deplorable). It was agreed at negotiations that all five states would be eligible for funding under the Improvng School Facilities component (execution of their agreed annual investment programs, or PAls) for the first year of the Project (1994), as a result of having maintained the staffing levels agreed to at appraisal and having agreed to the methodology for measuring the AMETs. States' allocations for the financing of subsequent years of this component, however, will be conditional upon each state's attainment of its AMETs, and on agreement with the Bank on the detaied investment program for the year in question (see paras. 6.4.(a) and 6.4.(b)). The details of this annual review are presented in Annex 8. 2.15 Rehabilitation and construction of municipal schools is expected to represent about 60 percent of the works financed under the project, compared to 40 percent for state schools. The distribution of works in each state is proportional to relative enrollments in grades 1-4 in the state and municipal systems. Municipal works will be contracted via negotiated agreements (convenios) between the SE and the respective municipality, similar to the system routinely used for municipal school construction carried out with state and/or federal financial support. During negotiation, the Borrower and the Bank agreed on a set of strict criteria for municipal participation in the project (see para. 6.1.(b)(v)). 2.16. The strategy of conditioning the financing of states' construction subprojects on their measured achievement of the AMETs was designed by the Federal Government, the States, and the Bank as an additional incentive for states to undertake the important education management reforms supported under the project. It also is intended to be an instrument that the Bank can use more flexibly than its traditional remedies. Should a state fail to meet one or more of its AMETs for a part.cular year, but show reasonable progress overall, the state would be ineligible for financing under the school facilities component. Disbursements associated with the other project components, however, would continue. Nonetheless, in the event that one or more states appears clearly uncommited to its management reforms, or if implementation of the other project components is seriously deficient, it would be appropriate to suspend all disbursements to the poorly performing state or states under the general remedies available to the Bank. Component 5: Stimulating Educational Innovation (US$5 million, including contingencies) 2.17. The project includes a small fund to be managed by MEC (under the auspices of SEF) designed to provide special encouragement to state and municipal school systems in the Northeast which adopt promising education innovations focused on the first four grades of primary school, particularly those aimed at reducing repetition. The fund's resources may - 18 - also be used by MEC to finance research evaluations of innovative state and municipal education programs. Proposals will be submitted directly by individual municipal and state secretariats to MEC. Grant awards will be made at three points during the project. No more than US$1 million of thc fuind's resources may be committed over the life of the project to any single project state. Draft criteria for the evaluation of proposals and guidelines for the operations of the Innovations Fund were discussed at negotiations of the Second Northeast Basic Education project, and will be finalized by the end of calendar year 1993. m. PROJECI COSTS. FINANCING. PROCUREMENT AND DISBURSMEN1TS A. Project Costs 3.1. The total cost of the project, including physical and price contingencies and local taxes, is estimated at US$366.9 million equivalent, or US$316.6 million, excluding local taxws. Base costs amount to US$313.8 million, 85.5 percent of total project costs. Base costs include local taxes, which are estimated at US$50.3 million, or 15 percent of local costs, and 13.7 percent of total project costs. Foreign exchange costs of US$31.8 million amount to 8.7 percent of total project costs. Table 3.1 summarizes estimated project costs by component. Further breakdowns of project costs by state, component, expenditure account, and year are provided in Annexes 1 and 2. 3.2. Dollar equivalent costs at April 1993 price levels were used throughout. Physical contingencies of 5 percent were applied to base costs for equipment, furniture, and educational materials. Physical contingencies of 15 percent were applied to civil works. No physical contingencies were applied to consultant services or taining programs, or the educational innovations fund. Price contingencies of 2.8 percent per year were applied to all components. This is the expected annual rate of increase for international prices for the period 1992-2002. This rate of price increase was used for both foreign and local cost components of the project on the assumption that devaluation of the ruzeiro would compensate for differences between US dollar and local currency inflation rates. This assumption may not be valid throughout the project period, however, so project costs will be carefully monitored. In the event of cost overruns associated with a wedge between US dollar and cruzeiro inflation rates, it will become necessary for the Government to finance these cost overruns. If necessary, the Bank will reduce its disbursement percentages to maintain its participation through project completion. 3.3. Estimated costs of civil works were based upon recent implementation experience in the five project states, and MEC unit cost - 19 - guidelines. Estimated costs of educational materials were based upon recent pnce quotations from major suppliers. Costs for computers, other office equipment, and office furniture were based on current c.i.f. unit prices, adjusted for local transportation costs. Trining cost estimates were based on a detailed breakdown of the staffing, travel, subsistence and materials requirements for each type of course and pay scales of MEC and the five project states for training specialists. Costs of international and domestic consultants were based upon recent experience of MEC and the Bank with consultants with similar skdll profiles to those being financed under the project. Table 3.1(A): Components Project Cast Summavr (USS Miuion) % Total Local Foreign Total Base Cost 1. Education Management 11.9 5.9 17.8 6 2. Educational Materials 87.4 18.3 105.7 34 3. Teacher Trauuaig 26.4 - 26.4 8 4. Tune Slice Financing 154.5 4.3 158.8 Sl 5. Innovations Fund 5.0 - 5.0 2 Total BaseCosts 285.2 L2.5 313.7 LT Physical Contingencies 27.1 1.4 28.5 9 Price Contingencies 22.9 1.8 24.7 8 (Total Project Costs | 335.2 7 366.9 L1 Table 3.1(B): Expenditmre Accounts Project Cost Summany (lJS$ Million) % Total Local Foreig Total Bue Cost Base Costs A. Civil Works 130.1 - 130.1 41 B. Equipment 24.5 7.7 32.2 10 C. Textbooks & Teachers' Guides 49.7 - 49.7 16 D. Reading Books & Dictionaries 19.3 - 19.3 6 e. Didactic Materials 18.3 18.3 36.6 12 F. Technicl Assistance 11.9 2.5 14.4 5 G. Thining 26.4 - 26.4 8 H. Innovations Fund 5.0 - 5.0 2 Total Base Costs MU 2, 313.7 LT Physical Contingenies 27.1 1.4 28.5 9 Prie Contingencies 22.9 1.8 24.7 8 Total Project Costs 335.2 .I - 20 - B. Project Financing 3.4. The loan v made to the Federative Republic of Brazil. Funds will be transferred on a grant basis to the five participating states. The loan will be for 15 years, including five years of grace, at the Bank's standard variable interest rate. The proposed loan of US$206.6 million will finance 56 percent of total project costs (or 65 percent of project costs excluding local taxes). Thnm Bank loan will finance 100 percent of foreign exchange expenditures and 52 percent (US$174.7 million) of local expenditures. The federa govenment will finance 20 percent of total project costs (including local taxes) and state governments will fimance an estimated 23 percent of total project costs (including local taxes). The relatively high percentage of local cost financing under the projeet is the consequence of both the capacity of the project states to mobilize their own counterpart funds and the expectation of efficient local procurement associated with the agreed use of standardized bidding documents for LCD, as well as for ICB. Moreover, it is justified by the need to encourage implemeitation of the significant policy changes being sought under the project. The fact that the project is targeted to Brazil's most impoverished region also justifies relatively high local cost financing. The project financing plan is shown in Table 3.2. Table 3.2 Financing Plan, By Component (Total Costs, Including Contingencies) LOCAL FOREIGN TOAL Imj" P OC_Od hedug Stab. DRD Pderai So" BRD Fed ,S uD r 1) Educaclml Mb_au - 5.0 8.1 - - 6.8 - 5.0 14.9 19.9 2) EIducdoMatedas - 26.2 72.2 - - 203 - 26.- 92.5 118.7 3) TeacTeraW% 14.9 15.0 - 14.9 15.0 - 29.9 4) Inmpovn EdBc. Facilita 54.9 393 94.6 - - 4.6 54.9 39.3 99.1 193.4 5) hnovatloFund 5.0 _- - - - 5.0 - - 5.0 TOrAL 74.8 85.5 174.9 = 31.7 74.8 85.5 26b. 366M.9 3.5. C=Jc=9 Fiancing. The federal government will finance 20 percent of all state-level components in line with its regular cost-saring formula with the states. The five states will be responsible for providing all other counterpart funds required for their respective components. C. Sustainability and lncremental Recurrent Costs 3.6. Incremental Recunrent Costs and Project Sustainability. Tb achiev its oveall objectives, the project will carry out direct investment activities, and will also finance the recurrent costs associated with these direct investments. The overall project cost, US$366.9 million for 5 years, covering - 21 - approximately 3 million students per year, represents nearly US$24 per student per year, not inclading enrollment growth, or US$21 per student per year, assuming an expected 3 percent annual enrollment growth. This would be an 8 to 9 percent increase in per student spending over current levels (state educational expenditures average US$281 per student), and a doubling of per- student spending at the municipal level (assuming US$50 per student spending at the municipal level). 3.7. Of this US$21 per student, approximately 41 percent, or US$8.65 per student per year, would need to be sustained as incremental recurrent financing after the project ends. This is composed as follows: US$7.20 for maintaining access to the same level of books and educational materials supported under the project; US$1.00 for refresher courses and new training for teachers entering service after the project ends; US$0.25 for training, maintenance, and equipment replacement for the education management component; and US$0.20 for maintaining new construction and replacing, as necessary, school furniture financed under the project. This incremental spending would need to be maintained after the project ends to sustain the project's objectives. Excluding education materials, only US$1.45 per student per year would be required in recurrent financng to sustain the project objectives after project completion. This represents one half of one percent increase in per student costs in the state systems and only about a three percent increase in per student costs in the municipal systems. 3.8. Sustaining Educational Materials. Textbooks fox schools are currently financed by the federal government through FAE (see Annex 4). During the last two years for which infa˘mation is available (1990 and 1991) FAE spent an average of only about US$1.40 per student on books and materials. Periodically in the past, however, FAE has spent considerably more. One of the key conditionalities of this project, in fact the only substantive Federal condition (other than counterpart funding), was for MEC and FAE to develop and commit to, at negotiation, a new textbook financing policy that would guarantee regular, timely, and reliable financing of textbooks (para. 6.1 .(a)(i)). The Ministry of Education issued Resolution No. 6 on July 13, 1993 (published in the Official Gazette on July 16), which specifies this commitment (see Annex 4). 3.9. A covenant of the project is that the federal Government shall implement, or cause to be implemented, prior to the beginning of each school year of project implementation, the textbook subcomponent of this project. Moreover, to help ensure that the level of expenditures on books and educational materials achieved under the project will be sustained after project completion, the Government and the Bank agreed that financing for this component would be on a declining basis. - 22 - D. Procurpment 3.10. The project will involve procurement of civil works, textbooks, reading books, didactic materials, school fumiture and equipment, computers and office equipment, travel expenses, and consultant services for training, studies and technical assistance. Table 3.3 shows project costs broken down by proposed procurement method. 3.11. Country Procurement Issues and Institutional Capacity. Procurement issues have arisen with past projects in Brazil because of discrepancies between Bank procurement guidelines and federal law, as well as state law in many states. With regard to state law, a ruling of the federal legislature's general accounting commission (Tribunal de Contas) in 1992 upheld the position that Bank guidelines should prevail over state laws for procurement under Bank-financed projects. However, a new national procurement law was recently passed by Congress (Law No. 8666, signed into law on June 21, 1993). It was agreed during negotiations that, to reduce the impact of possible future divergences or different interpreations between the new law and Bank procurement guidelines, both parties would jointly develop a set of mutually acceptable "special provisions that would be included in all Loan Agreements between Brazil and the Bank. Moreover, it was agreed that the Loan Agreement for the Third Northeast Basic Education Project would be revised, or, as the case may be, amended, to include these new provisions. In any case, Bank regulations require that for all ICB procurement, the use by borrowers of Bank standard bidding documents is mandatory (para. 6.2.(a)). Moreover, as a condition of loan effectiveness, sample standard bidding documents, acceptable to the Bank, for LCB procurement of goods and works, drafts of which have already been prepared and discussed with the states, will be submitted to the Bank (para. 6.3.(a)(iii)). These steps should help diminish procurement problems to a considerable extent. 3.12. All of the states have a unit responsible for design, bidding, contracting and supervision of civil works, and procurement of school equipment. These units report to the SEs, or in several cases, to the State Secretariats of Administration. MEC's DDE also has trained teams of architects and engineers to assist states in the supervision of civil works. At appraisal, the capacity of these units to handle the design contracting of works and goods to be procured under the project was judged adequate, but the capecity for supervising works needs strengthening. Therefore, the educadion management component of the project includes funds for training, technical assistance and computer equipment for each state to help equip these units for their expanded responsibilities under the project - particularly with respect to the supervision of municipal school rehabilitation and construction. In all five states, funds for municipal school rehabilitation or construction will be transferred to the municipal education secretariats, which will be responsible for contracting works. - 23 - 3.13. As discussed earlier, at least part of Brazil's chronic problems of textbook procurement derive from the weak institutional capacity of the responsible agency, FAE. Long-term technical assistance already underway from a teamn of international advisers to be financed by the Second Northeast Basic Education Project is addressing these problems and strengthening textbook selection and procurement capacity at both the federal (FAE) and state levels. 3.14. Civil WQrks. An estimated 83 percent of the US$ 193.3 million Im,proving School Facilines (Cime-Slice) component of the project will be used for school rehabilitation and expansion, with the remainder for equipment and furniture. The state and municipal primary school rehabilitation and expansion works planned are numerous small works dispersed throughout the project states. In each state, the vast majority of works planned are school rehabilitation, rather than new school construction. However, both at the state and municipal levels, packaging of works within a geographic area is routinely done, with packages generally involving 3-5 schools. As schools in the area typically range in size from 1-2 classroom structures to 10-15 classroom buildings, packages for rehabilitation are expected to range from US$5,000 to US$100,000, and packages for new construction to range from US$50,000 to US$300,000. No civil works contracts are expected to exceed US$1,000,000. Contracts exceeding US$100,000 but below US$1,000,000 will be awarded following Local Competitive Bidding (LCB) procedures acceptable to the Bank which will allow foreign bidders to participate. The first LCB contract for works in each state will be subject to prior review by the Bank. About 10 percent of the total value of works financed in each state are expected to be awarded via LCB. Contracts of US$100,000 or less will be awarded following Local Shopping procedures acceptable to the Bank, including tomada de pre,os, or the annual establishment of registries of pre-qualified contractors, and at least three price quotations. Registries will be constituted on the basis of nationwide publication of registration announcements and all registries will be reopened annually. Civil works contracting via Local Shopping will be permitted up to an aggregate limit of US$145.2 million. 3.15. Equipment and Furniture. All procurement for equipment and furniture under the project --computers, office equipment, and office furniture for all five states and the school furniture under the Improving School Facilities (Time-Slice) component will be packaged by the states, to the degree possible, into contracts of more than US$300,000 and procured through ICB. For all contracts for goods awarded through ICB, domestic manufacturers may be granted a margin of preference in accordance with Bank guidelines for the puipose of bid evaluation. Contracting of goods and equipment via LCB procedures acceptable to the Bank will be permitted for contracts between US$50,000 and US$300,000, up to an aggregate limit of US$5 million. The first LCB contract for goods, including computer maintenance services, by each state will be subject to prior review by the Bank. Contracts of US$50,000 or less may be awarded using Local Shopping Procedures acceptable to the Bank, up to an aggregate limit of US$2 million. - 24 - 3.16. Eduadoal Materls. Ihe project will finance US$40.8 million in educational materials other than boolks (i.e., blocks, manipulatives, simple science kits), for first through fourth g.ade classes in state and municipal schools. For fte most part, these purchases will be packaged by the state secretariats into contracts of US$300,000 or more, and will be procured via ICB. As with equipment and furniture, contacts of US$50,000 or less may be awarded using Loa Shopping procedures acceptable to the Bank, up to an aggregate limnt of US$2 million. About US$3 million in materials for the prepation of teacher trining course materials under the Training Tbachers and School Directors component will not be Bank-financed and will be procured by the states following their own procedures. Table 3.3: Summary of Proposed Procurement Arrangements Total Cost Inuding Contingenes (USS milon equivale) Procurement MtehdW Cateory ICB LCB Other N.B.P. Total 1. Civil Woiks - 16.2 145.2* - 161.4 (8.1) (72.6) (80.7) 2. Equipment and Puniture 28.8 5.0 2.0 - 35.8 (23.6) (4.0) (1.6)* (29.2) 3. Texdboks and TeacheW Guides 56.4 _- 56.4 (35.4) (35.4) 4. Reading Boobs 21.5 _- - 21.5 (16.1) (16.1) S. Educational Materials 38.8 _ 2.0 - 40.8 (31.4) (1.6) (33.0) 6. Consulncies Instional Dvopment 16.1 - 16.1 (12.2) (12.2) 7. Tinine _ _ _ 29.9 29.9 (0-0) (0-0) 8. Innovations Fund Grats - - - 5.0 5.0 (0-0) (0.0) Total 145.5 21.2 165.3 34.9 366.9 (106.5) (12.1) (88.0) (0) (206.6) Notes: Values in parendee rfe Bank financing. Categories 3, 4, and S are financod on a declining basis. N.B.P.: Not Bank-financed To be precred via Local Shopping. i Consult servies, per dieni, transpoit and other cosu of teache training to be financed by the ste. u Teacher tag materilb to be financed by states and federal govarument. 3.17. Textbooks and Teaching Guides. The project will finance US$56.4 million for the procurement of textbooks and teaching guides for first through fourth grade children in all state and municipal schools in the project - 25 - states. All procurement will be conducted via ICB. To the extent practicable, contracts shall be grouped into bid packages of US$300,000 or more. The details of the proposed procurement process for the 1995 book distribution, and for subsequent years are presented in Annex 4. 3.18. Classroom Supplementary Readina Books. The project will also finance US$21.5 million for the procurement of supplementary reading books. These reading corners will be delivered to all first through fourth grade classrooms in state and municipal schools. The project states, in coordination with MEC/SEF and FAE, will agree on a basic package of books to be distributed to both state and municipal schools in all nine Northeast states, using an ICB procurement process. After the initial paclage is procured, a small set of new or replacement titles would be procured each subsequent year with the objective of maintaining the size of the classroom reading corners. It is expected that the minimal contract size would be in the order of US$180,000 (for one book), the average contract size would be approximately US$500,000 (for a few books), and a number of contracts would exceed US$1,000,000 (for several books from a single publisher). 3.19. Consultants and Studies. The selection and appointment of atl consultants for studies, technical assistance and training under the project will be consistent with the August 1981 Bank Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agc. For consulting firms, on contracts estimated to cost less than US$100,000 equivalent, the Bank's prior review will cover only terms of reference, except in cases of employment of single source selection of firms, assignment of a critical nature, or amendments ol. contracts raising the value to US$100,000 or more. For individual consultants, prior review of all contracts, regardless of the amount, is required. 3.20. Innovations Fund Grants. Small grants (n general, less than US$100,000 and in no case exceeding US$1,000,000) to individual state and nt.unicipal school systems in support of innovative approaches to basic education will be awarded by MEC in accordance with pre-established guidelines. Amounts will be awarded based upon proposals received from state and municipal education secretariats, and MEC will sign convenios with the selected state and municipal governments, which will specify in detail the allocation of the grant funds and ensure that Bank procurement guidelines are observed. It is expected that most grant requests will be for such activities as setting up remedial or other special programs for slow leamers, development of special educational materials by teams of teachers, consultant assistance for studies of the impact of new pedagogical approaches, or purchase of new school equipment, etc. No Bank financing is involved in this component. 3.21. Bank Review Requirements. The Bank will review and approve before contract award all procurement documentation for books, educational materials, equipment and furniture to be procured through ICB. In addition, because the Government has agreed, at negotiations, to use sample bidding - 26 - documents acceptable to the Bank for all LCB procurement, the Bank will review and approve before contract award only the first LCB contract for each state for the acquisition of goods, and the first contract for civil works. In total, it is estimated that prior review will cover about 60 percent of the total amount of works and goods finaced by the Bank. This relatively low percentage is because of the large number of small-sized contracts associated with the rehabilitation of localized, small school buildings under the improung schoolfaciliies (Time-Slice) component of the project. All other procurement wi} be subject to selective ex-post review by the Bank and all relevant documentation will be kept by the state-level project support units and the federa project support units for periodic review during supemrision. The ex- post review of contracts with consulting firns, for which only terms of refence were subject to prior review, will cover not less than one in five conacts. E. Disbursements 3.22. The disbursement schedule is based on a five-year implementation timetable beginning in January 1994 (Table 3.4). The project completion date will be December 31, 1998, and the project closing date June 30, 1999. 3.23. It is expected that the US$206.5 million loan will be disbursed as follows: Technical Asistance, Studies and Training - 100 percent of foreign expenditures and 70 percent of local expenditures, up to a total of US$11,000,000 Equipment and Fut re - 100 percent of foreign expenditures and 80 percent of local expenditu, up to a total of US$26,300,000. lBooks (all types) - Financing of eligible all expenditures made (ex- facity cost) on or before June 30, 1998, on a declining basis, as follows: 100 percent up to an awegatg amount equivalent to US$33.5 million; 75 percent up to an aggregate amount equivalent to US$45 million; 50 percent up to an aggregate amount equivalent to US$49.5 million; and 25 percent with respect to the remaining amount, up to a total of US$51,500,000. Other didatic materials - Financing of eligible all expenditures made (ex-factory cost) on or before June 30, 1998, on a declining basis, as follows: 100 percent up to an aggregate amount equivalent to US$19.1 million; 75 percent up to an aggregate amount equivalent to US$30.4 million; 50 percent up to an aggregate amount equivalent to US$32.1 million; and 25 percent with respect to the remaining amount, up to a total of US$33,000,000. - 27 - Civil Works - 50 percent of all eligible expenditures, up to a total of US$65,000,000. Equipment and Furniture - 100 percent of foreign expenditures and 80 percent of local expenditures, up to a total of US$26,300,000. Unallocated - An unallocated disbursement category of US$19,800,000 was established, as agreed at negotiations, to cover price and physical contingencies. Table 3.4: Estimated Disbursements Total Costs, Including Contingencies (US$ million) Bank Fiscal FY94 FY95 FY96 FY97 FY98 FY99 Year _ _ _ _ _ _ Annual 20.8 29.7 55.2 53.8 32.9 14.2 Cumulative 20.8 50.5 105.7 159.5 192.4 206.6 3.24. Disbursements will be made upon receipt of full documentation, except in the case of civil works provided under contracts valued at less than US$300,000, and goods procured under contracts valued at less than US$250,000, for which disbursements may be made against certified statements of expenditure (SOE). Disbursements against SOEs for contracts with consulting firms will be permitted for contracts below US$100,000, however, as all contracts with individual consultants will require prior review (para. 3.21), the Bank will require confirmed copies of signed contracts and full documentation prior to effecting disbursement. SOEs will be certified locally by the state education secretary of the respective states and at the federal level by the Secretary for Basic Education. Supporting documentation will be retained by the UESP in each state and by the UNESP at MEC. Documentation will be available for inspection during Bank supervision missions and by independent auditors. 3.25. To ensure the efficient and timely implementation of the project, the Borrower will open a Special Account. The initial deposit to this Special Account will be based upon an average of four months' eligible expenditures. The Special Account will be established in a commercial bank acceptable to the Bank, for an amount of US$15 million. Funds from the Special Account will be available for financing only the Bank's share of eligible project costs. 3.26. The Bank will replenish the Special Account as requested upon receipt of satisfactory evidence that expenditures paid were eligible for financing out of the accounts. Replenishment requests will be sent to the Bank at agreed intervals. Conversions from cruzeiros and other currencies to US$ dollars will be made in accordance with Bank policy. The Borrower will request the replenishment of the Special Account from time tv time through applications for withdrawal using Form 1903. 28 - 3.27. Separate project agreements between the World Bank and the states of Alagoas, Bahia, Parafba, Piauf, and Rio Grande do Norte have also been negotiated. In addition to these, each of the five states will sign a subsidiary agreement, acceptable to the Bank, with the federa government, as a condition of loan effectiveness (para. 6.3.(a)(i)). These subsidiary agreements stipulate State concurrence with conditions and project activities described in the Loai, and Project Agreements (including the use of standard bidding documents for local competitive bidding) and, as further detailed in the project operetions manual, regulate the flow of funds from the Borrower to the states. F. Accounts and Audits 3.28. The project support unit in the Ministry of Education and the state education secretariats of Alagoas, Bahia, Paraiba, Piauf, and Rio Grande do Norte will each maintain separate accounts for project expenditures, which will be audited annually by independent auditors. The Special Account at a commercial bank wuill also be audited by independent auditors annually. Copies of the audited statements from the participating states and from the Special Account will be sent to the Bank within six months of the end of each fiscal year. The auditors' reports will include an opinion (and comments, as necessary) on the methods employed in compiling the statements of expenditures; their accuracy; the relevance of supporting documents; their eligibility for financing in terms of the project's legal agreement; and the standards of record-keeping and internal controls related to the foregoing. A et was reachd at neeotiations that the project accounts will be audited annually in accordance with appropriate auditing principles by independent auditors acceptable to the Bank (para. 6.2.(b)). 3.29. Additional financial monitoring. As part of overall project financial monitoring, agreements were reached at negotiations that MEC will by March 31of each year furnish a report, satisfactory to the Bank, detailing the amounts transferred to each project state ard eligible municipality for the financing of basic education during the preceding year and the allocations for each project state and municipality for the year in which the report is prepared, such allocations to be made in accordance with the objective and transparent criteria) set forth in MEC's Sistemdtica Para Financiamento de Projetos na Area de Educa&o Bdsica, Portaria No. 1878) (see para. 1.26) throughout the project period (see para. 6.2.(e)(viii)). G. Retroactive Financing 3.30. Retroactive financing of up to US$15 million will be provided for expenditures made in accordance with Baik procurement guidelines for a period of up to twelve months prior to the date of loan signing. Retrotive financing is recommended to ensure that technical assistance necessary for the - 29 - timely delivery of educational materials begins with sufficient lead time, and to allow the states to initiate agreed priority school rehabilitation and construction works. IV. PROJECT IMPLEkMtATION AND MANAGEMENT A. Project Readiness for Implementation 4.1 The project has been jointly prepared by MEC at the federal level and by the secretariats of education of the five partk.pating states, with periodic assistance from Bank missions. The preparation team was headed by the National Secretary for Basic Education in MEC (MEC/SEF). The highly motivated SEF team, staffed with experienced personnel and with strong support from the Minister of Education: (i) defined the project scope and objectives in accordance with overall government strategy for basic education; ii) coordinated the work performed by other federal level entities; and iii) supervised project preparation at the state level, including the development of relevant statistical information, the dissemination of guidelines for the preparation of the state investment plans, and the contracting of consultants to assist the states in preparing their management audits, operational plans, and investment plans. Throughout the preparation period, staff of MEC and consultants working for MEC made frequent visits to the Northeast states in order to coordinate project preparation and to provide technical guidance. 4.2 Project preparation was completed with assistance from a US$1.4 million grant for preparation of the two Northeast education projects from the Japanese Government. The Japanese grant financed the management audits and management consultant assistance to the project states that helped them develop their PAAs and AMETs, and assisted in the definition of the project's education management component. UNDP's assistance during project preparation has also been invaluable. UNDP provided initial financing for the state-level management audits, until the Japanese grant became effective in January 1992. With financial assistance from UNDP, it has also been possible to initiate specialist assistance to develop FAE's capacity to carry out textbook procurement and distribution under the project, and in particular to ensure the delivery of materials to th.e schools before the middle of the 1994 school year. B. Project Coordination 4.3 Ov, rall coordination for the Third Northeast Basic Education Project will be vested in the National Secretariat for Basic Education (SEF), which will maintain a national project support unit (Unidade Nacional Encarregada do Suporte ao Projeto, or UNESP) in DDE. Formal establishment of the UNESP by the Ministry of Education is supported by the Second Northeast Basic Education Project. As with Project II, the UNESP will be responsible for coordinating activities in Project III, and for liaising with all participating agencies of the federal and state governments. Functions - 30 - such as supervision and technical assistance to states will be shared by the various SEF units, but coordinated by UNESP. The unit's principal task is to ensure that project components are executed according to the agreed terms and timetable. The UNESP will, inter alia: i) monitor execution of the state-level and national components of the project; ii) carry out the annual reviews of the states' annual efficiency targets; iii) carry out the evaluation of states' proposed annual implementation schedules; and iv) prepare the mid-year and end-of-year project execution reports for the Batik, handle any other requests for information about project execution as the Bank shall reasonably request, and carry out all preparation necessary for the project's mid-term review. Additionally, once a year UNESP will organize a seminar to assure dissemination of lessons from project implementadon. Finally, the Ministry of Education agreed at negotiations that to coordinate the implementation of the Project, it will permanently and regularly consult with all of the project states on activities related to the following components: (a) education management; (b) education materials; (c) teacher and school director training; and (d) improving school facilities (see para. 6.2.(c)). 4.4 State leveL Project coordination at the state level is being handled by a state project support unit (Unidade Estadual Encarregada do Suporte ao Projeto, or UESP) established in each SE, similar in structure and functions to the UNESP. At negotiat , each of the states furnished the Bank with a decree from the Governor assigning responsibility for project implementation to the State Secretariat of Education (para. 6.1.(b)(iii)); and a directive from the Secretary of Education establishing the responsibilities and authority of the state project support unit within the secretariat for project implementation (para. 6. 1.(b)(iv)). Evidence that these units have been formally estblished by the states is a condition of loan effectiveness (para. 6.3.(b)(ii)). 'The state units will be located in the planning departments of the state education secretaniats. The Bank and the states agreed on terms-of- reference for these units at post-appraisal. Each UESP will, inter alia: (i) coordinate the preparation and execution of all state-level project components; (ii) monitor state progress toward meeting the management efficiency targets; (iii) prepare mid-year and end-year reports on project execution and carry out all necessary preparation for the project mid-term review; (iv) contact studies and consultant services; v) verify that all other state units executing the project follow Bank guidelines when procuring goods and services; (vi) ensure that all necessary project documentation is maintained in a manner satisfactory to the Bank; and (vii) issue periodic progress reports to MEC and, upon request, the World Bank. The UESPs will be responsible for coordinating activities between the state and the municipalities in that state. MEC brought to negotiations a draft subsidiary agreement between that state and any given municipality defining criteria for participation in the improving schoolfacilties component of the project (para. 6. 1.(b)(v)). 4.5 During project preparation, all five UESPs have been functioning well and are cur- .. ., ,affed by a core team of professionals. At negotiations. the states provided assurances that state teams with - 31 - qualifications and experience satisfactory to the Bank will be maintained throughout project execution (para. 6.2.(d)), and provided the Bank with terms of reference for these state UESP teams (para. 6.1.(b)(vi)). The core team in each state will be headed by a project leader trained in planning and/or maniagement and include staff with experience in accounting, civil works planning and procurement, teacher training, education materials, and applied informatics. The core teams of the UESPs include regular civil servants and specializid consultants. Salaries of regular staff are being fully paid by the state secretariats out of project counterpart funds. The project includes funds for the recruitment of specialized consultants, as needed during project execution. 4.6 Computerized project management information system. SEF will also be responsible for the development of a computerized system acceptable to the Bank for monitoring: i) project financial execution (commitments and disbursements); ii) project activities; and iii) project outcomes and indicators and any other relevant information. This system will be installed in each UESP and the UNESP, with all points interlinked via an online computer network, if possible. All staff at the UNESP and at the IJESPs will be trained in the use of this system. The development of the system will be carried out in phases. At negotiations, MWC provided assurance that the first module of this system will be functioning in all of the UESPs, and will be maintained by MEC throughout the life of the project. This module, which at the time of negotiations was already in the pilot testing phase in several of the project states, is a computerized information system satisctory to the Bank for recording financial commitments and disbursements under the project (para. 6.2.(e)(ix)). The Ministry of Education also provided assurances at negotiations that SEF will develop and install the remaining modules, satisfactory to the Bank, within each of the project tinits by not later than June 30, 1994 (pam. 6.2.(e)(x)). C. Project Implementation 4.7 A condition of effectiveness for ihe project is that each state will sign a subsidiary agreement with the Federal Government, acceptable to the Bank, stipulating state concurrence with the conditions and project activities descnbed in the Loan and Project Agreements (para. 6.3.(a)(i)). The main implementing agencies for the project will be the state education authorities of the five selected states. As a condition of effectiveness, the Federal Government and the Governments of each of the five project states will provide satisfictory evidence of adequate counterpart funds to carry out the first year of the project in their 1994 budgets (para. 6.3.(a)(ii), and para 6.3.(b)(i)). 4.8 ioect Operiomal Manual. To guide project implementation, UNESP prepared, and brought to negotiations (pam 6.1.(a)(ii)), a draft Project Operational Manual. It was agreed at negotiations that the manual should be tested and, by December 31, 1993, revised, as required (para. 6.2.(e)(xi)). - 32 - 4.9 Annual ImpIementation Plans. Each of the states will prepare each year an updated, detailed annual implementation plan, or PAA. The PAAs will be based on the states' five year operational plans for all project components, but will provide significantly more detail about specific activities planned, detailed cost estimates for executing these activities, and the schedule for implementation and procurement during the subsequent calendar year. The PAAs will include the states' annual proposals for a program of construction subprojects under the inproving schoolfacilities (time-slice) compcr,nIt, or PAls (Programas Anuais de Investimento). Each state brought to neoatWios a final PAA for the 1994 year of project execution, which was considered acceptable to the Bank (para. 6.1.(b)(vii)). During project execution, the states will submit their draft PAAs for each subsequent twelve month period (January to December) by no later than August 31 of the previous year to UNESP for review. After review, and modification if necessary, UNESP will furnish all draft PAAs to the Bank for its review by no later than September 30 of each year (para. 6.2.(e)(iii)). The Bank will vrovide comments so that the states, in consultation with UNESP, may finalize their PAAs and present them to the Bank by no later than November 30 of each year (para. 6.2.(e)(iii)). 4.10 The Ministry of Education provided assurances at negotiations that by not later than February 28 and August 31 of each year, until the completion of the project, SEF will fiurnish to the Bank progress reports on the execution of the project, based on reports to be submitted by the states no later an one month in advance (para. 6.2.(e)(iv)). It was agreed that the February report will be a summary of execution experience during the previous calendar year, and that the August report will be a status report on project execution during the first half of each year. These reports will be as succinct as possible, will be based on quantitative information about project execution supplied by the computerized management information system descibed above, will focus on the agreed outccme indicators for each project component, and will identify all implementation problems encountered, including an analysis of these problems and proposals for remedial actions. MEC also provided assurances at negotiations that the Bank, MEC and the states will meet annually to review project execution performance. This review meeting is planned to occur by June 30 of each year beginning in 1994 (par. 6.2.(e)(v)). 4.11 In addition to these annual reviews, it was agreed at negotdations that, by no later than June 30, 1995, the states and MEC will participate with the Bank in a full (mid-term) review of project execution (para. 6.2.(e)(vii)). This review will focus, inter alia, on: (i) overall project execution and impact; (ii) states' progress in improving management efficiency and the appropriateness of the AMETs proposed for the remainder of the project; (iii) states' progress in improving education quality and reducing repetition; and (iv) progress of MEC in developing and implementing a comprehensive reform of the national textbook policy refonn program. Assurances were also provided at negotiations that MEC will submit to the Bank by not later than - 33 - May 31, 1995 detailed terms-of-reference, satisfactory to the Bank, for this joint review (para. 6.2.(e)(vi)). V. PROTECT BENEF1TS AND RISKS A. Project Benefits 5.1 The project is expected to directly improve the quality of schooling for approximately 3 nillion children per year in the first four grades of state and municipal primary schools in the five project states, which is approximately 75 percent of total primary enrollment in these states. The project target group represents approximately 45 percent of the total number of public students enrolled in the first four grades of primary school in the Northeast. By improving school quality, it is hoped that the project will contribute to reducing grade repetition and dropout, raising student achievement, and increasing attainment in the five states. The project will also improve the efficiency of state and municipal spending on primary education. Technical assistance in support of management reforms under the project should produce significant improvements in the functioning of state education secretariats and will help state secretariats develop a new role as catalysts for raising municipal school quality as well. B. riec Risks 5.2 There are several risks associated with this project. First, there is the risk that the states' commitment to implement! the politically difficult administrative reforms and other actions to improve education quality and efficiency may falter after the change in state governors in 1995 and that the expected improvements in state and municipal education systems might not occur. To the degree possible, this risk has been mitigated by the intensive prepation work at the state level made possible in part thanks to a US$1.4 million Japanese grant, and the states' sense of ownership in the project design and conditionality. To reduce this risk further, the project design includes annual reviews of states' implementation of their programs and an explicit system for reprogramming time-slice resources across states or to other project components in the event of nonperformance by any state. A second risk is slow implementation of the other state-level components, due to weaknesses in administrative capacity. The project's central emphasis on strengthening states' institutional capacity, the amount and types of technical assistance planned, and the supervision and coordination role which MEC is expected to play, will all help to mitigate this risk. A third risk is more deep-seated and peristent. It concerns the fact that public school systems in the Northeast have traditionally served political, and not only educational, ends. Consequently, a significant share of school finances has been historically absorbed by politicians' need to provide jobs, award construction contracts, and dole out scholarships. Given the tenacity of this so-caled 'clientelism' in the Northeast, the project's goal of rationalizing education management may be undermined after the new state govemments are installed in early 1995. It is - 34 - hoped that close and intense supervision, both by MEC and the Bank, accompanied by a careful and early joint mid-term review, will provide opportunities to revisit the project design and activities, and review the targets to keep the education institutions in the Northeast on the steady path of reform. C. Environmental Aspects 5.3 The project is not expected to have any significant negative environmental impact as a consequence of the school expansion activities in the inprovng schoolfacilities component. VI. AGREEMENTS REACHED AND RECOMMENDATION 6.1. At negotiations, the following documents, which were judged to be acceptable by Bank, were submitted by: (a) the Borrower - (i) a letter from the Ministry of Education stating the Federal Government's commitment to implementing, in a specified time-frame, a new policy, acceptable to the Bank, for the financing of textbooks for all of Brazil's public primary schools (paras. 2.23 and 3.8); (ii) a complete draft of the Project Operational Manual satisIactory to the Bank (para. 4.8); () the Governments of each of the five project states - (i) a letter from the Governor committing that state to a set of Annual Management Efficiency Targets, agreed with the Ministry of Education and the Bank, for five years (para. 2.3); (ii) a copy of the final annual balance from each of the project states from 1992 with a clear identification of education expenditures by category of expenditure (para. 2.3); (iii) a decree from the Governor assigning responsibility for project implementatioi. to the SE (para. 4.4); (iv) a directive from the State Secretary of Education establishing the responsibilities and authority of the state project support unit within the secretariat for project implementation (pam. 4.4); and - 35 - (v) a draft subsidiary agreement between the state and any given municipality in the state defindng criteria for participation in the inproWng schoolfaciliies component of the project (paras. 2.15 and 4.4). (vi) terms of reference for the UESP (paa. 4.5); and (viu) a draft annual implementation plan (PAA), including the annual investment program (PAC) for 1994 (para. 4.9). 6.2. At Negotations. agreement was reached with the Borrower and with each state that: (a) standard bidding documents and letters of invitation satisfactory to the Bank will be used in atl ICB procurement financed by the Bank under the project (para. 3.11); (b) all project accounts will be audited annually in accordance with appropriate auditing principles by independent auditors acceptable to the Bank, and that accounts would show expenditures for each project component subdivided by expenditures financed by the Bank, the Federal Government, and each of the States (para. 3.28); (c) the Ministy of Education will permanently and regularly consult with all of the project states on activities related to the following components: education management; education materials; teacher and school director tmining; and improving school facilities (para. 4.3). (d) the Ministy of Education and each of the states will support project coordination units with a staffing plan acceptable to the Bank and the project coordinatos and unit heads will at all times be persons whose qualifications and experience are acceptable to the Bank (para. 4.5); (e) the Federal Government and the Governments of the states are formally committed to accomplishing the dated covenants agreed at appraisal, as follows: (i) by not later than May 30 of each year, beginning in 1994, the Ministry of Education will present to the Bank a report detailing each state's progress with respect to its quantitative Annual Management Efficiency Targets for that year (pama 2.4); (ii) by not later than June 30 of each year, beginning in 1994, the Ministry of Education will determine in consultation - 36 - with and in a manner satisfactry to the Bank, the amounts to be allocated to each eligible state for the School Facilities component for the following calendar year (para. 2.4); (iii) by September 30 of each year, beginning in 1994, the Ministry of Education will submit the (PAAs) proposed for each of the five states to the Bank for its review; theeftr, the Ministry of Education and the states will prepae and submit to the Bank final versions of these PAAs, taking all Bank comments into account, by no later than November 30 (pam. 4.9); (iv) by not later than Febrary 28 and August 31 of each year, beginning in 1994, the Ministry of Education will funish to the Bank progress reports on the execution of the project, based on progress reports submitted by the states one month earlier (para. 4.10); (v) by June 30 of year, beginning in 1994, the states and the Ministry of Educaiion will participate with the Bank in an overal review of project execution based on agreed indicators (pam. 4.10); (vi) by May 31, 1995, the Ministry of Education will furnish tms of reference satsfctory to the Bank for a full, joint review of the project (am 4.11); (vii) by June 30, 1995, the states and the Ministry of Education will participate with the Bank in a joint review (the 'mid-ternmreview) of project execution (pa. 4.11); (viii) the Ministry of Education will by March 31 of each year, beginning in 1994, furnish a report satactory to the Bank showing the amounts transferred to each project state and eligible municipality for the financing of basic education during the preceding year and the allocations for each project state and municipality for the year in which the report is prepared, such allocations to be made in accordance with the objective and transparent criteria set forth in the Ministry of Education's SWemdca Para Finactmeno de Projetos na Area de =pucat70 Bdsica, Poriria No. 1878) throughout the project period (pam 3.?); (ix) the Ministry of Education will maintain, within each state project unit, the finanial model of the computeriZed project management information system, satisfitory to the Bank (paa. 4.6); -37 - (x) the Ministry of Education will by not later tha June 30, 1994 develop and install witiin each project unit the remaining modules of a computeized project management infirmation system sadsfactory to the Bank (pai. 4.6); and (xi) by December 31, 1993, revise the Opeation Manual in a manner satisfctory to the Bank (para. 4.8). 6.3. Conditions of efveness will be the submission, (a) by the Federal Government, of: (i) signed subsidiary agreements between the Federal Government and each project state, acceptable to the Bank, stipulating state concurrence with the conditions and project activities descnbed in the Loan and Project Agreements (pas. 3.27 and 4.7); (ii) a copy of the proposed federal budget for 1994 indicating adequate countrpart funding for the project (pax (para. 4.7); (iii) sample bidding documents for local competitive bidding, acceptable to the Bank (para. 3.11); (b) by each of the state Governments, of: (i) a copy of the proposed state budget for 1994 indicating adequate counterpart funding for the project (par 4.7); and (ii) evidence that a state project support unit, stafied by professionals with experience and qualifiations sactory to the Bank, has been formally established (pam 4.4). 6.4. Conditons of disbursements to any state for each year of the impromng schoolfaalities component will be: (a) agreement with the Bank on a program of state and muiipal construction subprojects and equipment and furniture purchases to be executed during the year in qnestdon (pars. 2.4 and 2.14); and (b) achievement by that state of its agreed A IW Effic lt (paras. 2.4 and 2.14). 6.5. With the above conditions and asrances, the project constitutes a suitable basis for a Bank loan of US$206.6 million equivalent to the Federative Republic of Brail, at the Bank's standard variable interest rate, - 38- with a maturity of 15 years, on a fixed amortizaton schedule with a five-year grace period. Retroactive financing of up to US$15 million for expendiures incunred for a period of up to twelve months prior to the date of loan signing. 39 - Amex -1 Page 1 of 6 :otheast sasic education zz: Cxpena4ture AcCounts ty CoMponeats (US$ Milloni Time Physical Education Educational Teacher Slice ;nnovatzons Contingencies Management Materials :aining Financig Fund Total i Amount X. investment Costs A. CiVlI Works - - - 130.1 - 130.1 15.0 19.5 S. Equipmant 3.4 - - 28 - 32 2 5.0 1.6 C. Textbooks a Teachers GOzides - 49.7 - - - 49.7 5.0 2.5 3. Reaaing Books 4 Dictionaries - 19.3 - - - 19.3 5.0 1.0 E. Didactic Materials - 36.7 - - - 36.1 5.0 1.8 r. Technical Assistance 14.4 - - - - 14.4 5.0 0.7 0. Training - 26.4 - - 26.4 5.0 1.3 R. Innovations rund - - - 5.0 5.0 - - Total Investment Costs 17.8 10537 26 4 1583. 8 313.8 971 281 4 :1. Recurrent Costs Total BASEXNZ COSTS 17.8 105.7 26.4 158.0 5.0 313.8 9.1 28.4 Physical Contingencies 0.9 5.3 1.3 20.9 - 28.4 - - Price Contingencies 1.2 7.7 2.2 13.5 - 24.7 8.7 2.2 -otal PROJECT COSTS i * 9 ---1-1-7- 2 -9 i 1 93 3 366.9 30.6 Foreign Exchange 6.6 20.4 - 4.8 - 31.8 4.8 1.5 mm mey 17 21:56:30 1993 :-I Expenditure Accounts by Components - 40 - An I Page 2 of 6 Scaz3zl Northeast Basic Education III Expenditure Accounts Dy Components State Alaqoas tUS$ Millioni Time Physical Education educatlonal -eacher Slice :nnovations Contingencies Management materials Training Financing Fund jtal 1 Amount I. Investment Costs A. Civri Works - :6.3 _ '6.3 1s.0 2.4 B. Equipment 0.5 - - 3.1 - 3.6 5.0 0.2 C. Textbooks S Teachers' Guides - 5.1 - - - 5.1 5.0 0.3 0. Redinqg Books a Dictionaries - 2.1 - - - 2.1 5.0 0.1 E. Drdactic Materials - 3.8 - - 3.8 5.0 0.2 F. Technical Assistance 2.7 - - - - 2.7 5.0 0.1 G. Trainrng - - 1.7 - 1.7 5.0 0.1 . Innovatsona Fund - - - ' 0 1.0 - - Total investment Costs 3.2 10.9 1.1 7i 1.0 363 9.4 3.4 Total BSASLUNE COSTS 3.2 10.9 1.7 19.4 1.0 36.3 9.4 3.4 Physical Contingencies 0.2 0.5 0.1 2.6 - 3.4 - - Price Contineqncies 0.3 0.8 0.1 1.8 - 2.9 9.1 3.3 Total PROJECT COSTS 3. 6 i39 23.8 iT 1 2.6 8.6 T7 Foreign £xchanqe 1.1 2.1 - 0.5 3.8 4.8 0.2 4on May 17 21:58:50 1993 ;-1 Expenaiture Accounts by Components - 41- _ I Page 3 of 6 Brazil Nlortheast Sasic Education III Expenaiture Accounts by Components State Bahia tUS5 Million) Time Physical Education Educational Teacher Slice :nnovations Contingenc"es Management Materials Traininm Financing Funa Total I Amount Investment Costs A. Civil Works - - 59.8 - '9.8 15.0 9.0 S. Equipment :.0 - - 13.3 - 14.3 5.0 7.7 C. Textbooks * Teachers' Guides - 23.5 - - - 23.5 5.0 1.2 0. Reading Books & Dictionaries - 7.7 - - - 7.7 5.0 0.4 C. Didactic Materials - 21.6 - - - 21.6 5.0 1.1 F. Technical Assistance 3.3 - - - - 3.3 5.0 0.2 0. Training - - 12.3 - - 12.3 5.0 0.6 H. Innovations Fund - - - - 1.0 1. 0 - - 7otal investment Costs 4.3 52.8 a 2 3 73 1 1 0 1-43.4 9 11 Total BASELINE COSTS 4.3 52.8 12.3 73.1 1.0 143.4 9.1 13.1 Physical Contingencies 0.2 2.6 0.6 9.6 - 13.1 - - Price Contingencies 0.3 3.7 1.0 6.2 - 11.2 8.7 1.0 Total PROJECT COSTS 4.7 59 1 198i 167.6 8 4 14 i foreign Exchange 1.8 11.S - 2.2 - 15.9 4.8 0.8 Mon May 17 21:59:07 1993 1-1 Expenditure Accounts by Components - 42 - Page 4 of 6 $razil Northeast Basic Education III Expenoiture Accounts by Components State Paralba tUSS Million) Time Physical Education Educational Teacher Slice innovations ContxnfneCes Management Materials Traininm Financinq Fund Total 4 j-nount 1. Investment Costs A. CJvil Works - - - 19.7 - 19.7 15.0 3.0 B. Equipment 0.2 - - 4.9 - 1.1 5.0 0.3 C. Textbooks & Teachers' Guides - 7.2 - - - 7.2 5.0 0.4 0. Reading Books & Dictionaries - 2.6 - - - 2.6 5.0 0.1 E. Didactic Materials - 1.8 - - - 1.8 5.0 0.1 F. Technical Assistance 3.0 - - - - 3.0 5.0 0.2 0. Training - 3.6 - - 3.6 5.0 0.2 H. Innovations Fund - - - - 1.0 1.0 - - Total Investment Costs 3.2 1 24.6 1.0 44. *9.T 4.1 Total BASELINE COSTS 3.2 11.6 3.6 24.6 1.0 44.0 9.4 4.1 Physical Contingencies 0.2 0.6 0.2 3.2 - 4.1 - Price Contingencies 0.2 0.9 0.3 2.4 - 3.8 9.3 0.4 .otal PROJECT COSTS 13.1 4.1 30.2 1.0 52.0 S. 4-5 Foreign Exchange 0.8 1.0 - 0.8 - 2.6 4.8 0.1 Mon May 17 21:59:2E 1993 .-1 Expenditure Accounts by Components - 43 - AnneL Parg 5 of 6 araZ3l. ttortheast Basc Education III Experctzture AcCounts by Components State Piaui (US$ Millionk Time Physical Education Educational Teacher Sles Innovations ContinqtnCiOs Managemene Materials Trainin Financing Fund Total % Amount I. Investment Costs A. Civil Works - - 20.8 - 20.8 15.0 3.1 S. Equipmnt 0.8 - - 4.9 - 5.7 5.0 0.3 C. Textbooks 6 Teacbraa Guides - 8.2 - - - 8.2 5.0 0.4 D. Reading Books & Dictionaries - 4.1 - - - 4.1 5.0 0.2 E. Didactic Materials - 5.3 - - - 5.3 5.0 0.3 F. Technical Assistance 3.2 - - - - 3.2 5.0 0.2 . Trazininq - 5.8 - - 5.8 5.0 0.3 H. Innovations rund - - - - 1.0 1.0 - - Total Investment Costs 4.u 17.6 5.8 25.7 1.0 54.1 TrT7 4-7 T.otal aAStLINE COSTS 4.0 17.6 5.8 25.7 1.0 54.1 8.7 4.7 Physical Contingencies 0.2 0.9 0.3 3.4 - 4.7 - - Price Continqencies 0.3 1.4 0.6 2.1 - 4.3 8.2 0.4 Total PROJ3CT COSTS 4.5 199 6.7 31.1 1.0 63. 8. s.1 Foreign Exchang 1.5 3.0 - 0.8 - 5.4 4.8 0.3 Man May 17 21:59:45 1993 1-1 Expenciture Accounts by Components - 44 - Annex I Page 6 of 6 Brazil Northeast Basic education III Expenoxtur, Accounts bY Components Rio Grande do Norte (US, Million) Time Physical Education Educational Teacher Slice :nnovationa Coltnnciensea Management materials Sraining Financing Fund Total TAmount I. Investment Costs A. Civil Works - - 13.5 - 13.5 15.0 2.0 a. Equipment 0.9 - - 2.5 - 3.4 5.0 0.2 C. Textbooks 4 Teachers' Guides - 5.8 - - - S.8 5.0 0.3 O. Reading Books * Dictionaries - 2.8 - - - 2.8 5.0 0.1 E. Didactic Materzals - 4.2 - - - 4.2 5.0 0.2 F. Technical Assastance 2.3 - - - - 2.3 5.0 0.1 G. Training - 3.0 - - 3.0 5.0 0.2 R. Innovations rund - - - 1.0 1.0 - - Total Investment Costa 3 212.8 3T 0 TW7 MO 3-6.o 0 1 *- 3.7 Total 8ASELINE COSTS 3.2 12.8 3.0 16.0 1.0 36.0 8.6 3.1 Physical Contingencies 0.2 0.6 0.2 2.1 - 3.1 - - Price contingencies 0.2 0.9 0.2 1.2 - 2.5 8.2 0.2 Total PROJECT COSTS 3143 3 19.3 1 0 41 6 79 3 fogeign Exchange 1.4 2.3 - 0.4 - 4.2 4.8 0.2 Mon may 17 22:00:03 1993 1-1 Expenditure Accounts by Ccompnents - 45 - DAgL2 Pae I of6 Brazil Northeast Basic Education 1: Project Components Dy Year (uSS Million) Totals Includina Conti.ncencies 1994 1995 i996 1997 :.98 Total Education Management 4.2 5.6 5.1 3.5 1.5 19.9 Z. Educational Materials 33.7 18.8 31.7 14.5 20.1 118.7 3. Teacher Training 3.3 7.5 8.1 7.3 3.8 29.9 4. Time Slice Financing 27.8 C5.0 45.8 38.3 26.4 193.3 5. Innovations Fund 1.0 1.0 1.0 1.0 1.0 5.0 Total PROJECT COSTS 69.9 87.9 91.7 64.6 52.8 366.9 Mon May 17 21:33:25 1993 i-1 Project Components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years (USS Million) Totals Includina Cont:naencies 1994 1995 1996 1997 i998 Total Investment Costs A. Civil Works 16.5 47.6 40.4 33.6 23.3 161.3 B. Equipment 12.0 8.5 6.4 5.4 3.5 35.8 C. Textbooks & Teacners' Guides 13.0 7.4 13.4 8.6 14.0 56.4 D. Reading Books & Dictionaries 6.8 6.3 3.2 2.6 2.7 21.5 r. Didactic Materials 13.9 5.2 15.1 3.3 3.4 40.8 F. Technical Assistance 3.4 4.5 4.1 2.8 i.3 16.1 G. T:aining 3.3 7.5 8.1 7.3 3.8 29.9 H. Innovations Fund 1.0 1.0 1.0 1.0 1.0 5.0 Total Tnvestment Costs 69.9 87.9 91.7 64.6 52.8 366.9 Total PROJECT COSTS 69.9 87.9 91.7 64.6 52.8 366.9 Mon Mav 17 21:33:28 1993 2-1 Expenditure Accounts by Years - 46 - Aex2 Page 2 of 6 Brazil Northeast Basic Education UII Project Components by Year State Alagoas (US$ Million) Totals Including Continaencies 1994-- '995 1996 1997 1998 Total 1. Education Management 0.5 0.9 0.9 0.8 0.6 3.6 2. Educational Matersals 3.0 2.7 2.7 2.2 1.7 12.3 3. Teacher Training 0.6 0.4 0.5 0.3 0.2 1.9 4. Time Slice Financing 1.0 9.2 5.3 5.0 3.3 23.8 I. 2nnovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total PROJECT COSTS 573 13.2 . 8.6 5.9 42.6 Mon May 17 21:54:21 1993 1-1 Project Components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years State Alagoas (US$ Million) Totals Including Continaencies 1994 1995 1996 1997 1998 Total, r. Investment Costs A. Civil Works 0.9 7.2 4.7 4.5 3.0 20.3 B. Equipment 0.2 2.1 0.7 0.7 0.5 4.1 C. Textbooks & Teachers' Guides 1.3 0.8 1.4 0.8 1.5 5.8 D. Reading Books & Dictionaries 0.7 0.8 0.2 0.3 0.2 2.3 E. Didactic Materials 1.0 1.0 1.1 1.1 - 4.2 F. Technical Assistance 0.4 0.7 0.8 0.7 0.5 3.1 G. Training 0.6 0.4 0.5 0.3 0.1 1.9 H. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total Investment Costs 5.3 13. 2 9.6 8.6 5.9 4 Total PROJECT COSTS 5.3 13.2 9.6 8.6 5.9 42.6 Mon May 17 21:54:22 1993 2-1 Expenditure Accounts by Years - 47 - Brazi.% ki2 Northeast Basic Education I:P a 3 of 6 Project Components by Year State Bahia (US$ Millioni Totals Includina Contincencies 1994 1995 1996 1997 1998 otai 1. Education Management 1.1 1.4 142 0.8 0.3 4.7 2. Educational MaterialS 19.4 5.9 19.3 4.8 9.7 59.1 3. Teacher Training 1.4 441 3.6 3.1 1.6 13.9 4. Time Slice Financing 12.7 23.7 24.0 19.2 9.4 88.9 5. Innovations rund 0.2 0.1 0.2 0.2 0.2 1.0 Total PROJECT COSTS 34.8 5T. 48 3 28.1 21 21676 Mon May 17 21:54:39 1993 1-1 Project components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years State Bahia (US$ Million) Totals Includina Contingencies 1994 1995 1996 1997 1998 Total I. Investment COstS A. Civil Works 6.9 21.5 21.2 16.6 8.0 74.1 S. Equipment 6.1 2.5 3.1 2.8 1.5 15.9 C. Textbooks & Teachers' Guides 6.5 3.4 6.3 3.6 6.7 26.6 D. Reading Books & Dictionaries 2.1 2.5 1.6 1.2 1.2 8.7 E. Didactic Materials 10.7 - 11.4 - 1.7 23.9 F. Technical Assistance 0.8 1.1 0.9 0.6 0.2 3.6 G. Training 1.4 4.1 3.6 3.1 1.6 13.9 H. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total Investment Costs 34.8 35 .2 48 .3 28.1 21.2 167 Total PROJECT COSTS 34.8 35.2 48.3 28.1 21.2 167.6 Mon May 17 21:54:40 1993 2-1 Expenditure Accounts by Years - 48 - Annex2 Brazii Page 4 of 6 Northeast Basic Education I:: Project Components by Year state Paraiba (USS Million) .otals Includina Ccntinaencies 1994 :995 ;996 1997 ;398 Total 1. Education Management 0.9 _.1 0.9 0.6 0.2 3.6 2. Educational Materials 3.0 2.4 2.5 2.5 2.7 13.1 3. Teacher Training 0.5 1.1 1.2 1.0 0.4 4.1 4. Time Slice Financing 4.7 6.0 5.4 6.2 7.9 30.2 5. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total PROJECT COSTS 9.2 1O.7 10.2 10.4 11.4 52.0 Mon May 17 21:54:57 1993 1-1 Project Components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years state Paraiba (USS Million) Totals Includina continaencies 1994 1995 1996 1997 1998 Total 1. Investment Costs A. Civil Works 2.3 5.0 4.8 5.5 7.1 24.7 B. Equipment 2.4 1.1 0.7 0.7 0.8 5.7 C. Textbooks & Teachers' Guides 1.8 0.9 1.9 1.5 2.0 8.2 D. Reading Books & Dictionaries 1.1 0.7 0.5 0.2 0.3 2.9 E. Didactic Materials 0.1 0.7 0.1 0.7 0.5 2.0 F. Technical Assistance 0.8 1.0 0.9 0.5 0.2 3.3 G. Training 0.5 1.1 1.2 1.0 0.4 4.1 H. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total Investment Costs 9.2 10.7 10.2 10.4 11.4 52.0 Total PROJECT COSTS 9.2 10.7 10.2 10.4 11.4 52.0 Mon May 17 21:54:58 1993 2-1 Expenditure Accounts by Years 9 49 - Brazil Ann2 Northeast Basic Education 1:1 PageS of6 Project Components by Year State Piaui (USS Millloni Totals Includina Cont:nzencies 1994 1995 1996 1997 :998 Total 1. Education Management :.0 1.3 1.1 0.7 0.3 4.5 . Educational Materials 4.2 3.9 4.8 3.0 4.0 19.9 3. Teacher Training 0.2 1.1 2.0 2.0 1.3 6.7 4. T=me Slice Financing 5.5 9.7 6.9 4.8 4.3 31.1 5. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total PROJECT COSTS 11.2 16.2 15.0 10.7 10.0 63.2 Mon May 17 21:55:16 1993 1-1 Project Components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years State Piaui (USS Million) Totals Including Continaencies 1994 1995 1996 1997 1998 Total . Investment Costs A. Civil Works 3.5 8.2 5.9 4.2 3.8 25.6 B. Equipment 2.2 1.7 1.2 0.7 0.5 6.4 C. Textbooks & Teachers' Guides 2.0 1.5 2.1 1.6 2.2 9.3 D. Reading Books & Dictionaries 2.1 0.8 0.6 0.4 0.6 4.6 E. Didactic Materials 0.2 1.7 2.1 1.0 1. 2 6.1 F. Technical Assistance 0.8 1.0 0.9 0.6 0.2 3.6 G. Training 0.2 1.1 2.0 2.0 1.3 6.7 R. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total Investment Costs 11. 2 16.2 15.0 10.7 10.0 63.2 Total PROJECT COSTS 11.2 16.2 15.0 10.7 10.0 63.2 Mon May 17 21:55:17 1993 2-1 Expenditure Accounts by Years - 50 - Brazil Page6af6 Northeast Basic Education III Project components by Year Rio Grande do Norte (USS Million) Totals Includina Contingenc.es 1994 1995 1996 1997 1998 Total 1. Education Management 0.8 1.0 0.9 0.6 0.2 3.5 2. Educational Materials 4.0 4.0 2.3 2.0 1.9 14.3 3. Teacher Training 0.5 0.9 0.8 0.8 0.4 3.4 4. Time Slice Financing 3.8 6.5 4.3 3.1 1.6 19.3 5. Innovat$ons Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total PROJECT COSTS 9 4 12T 6 -8.5 767 4.3 4116 Mon May 17 21:55:36 1993 1-1 Project Components by Year Brazil Northeast Basic Education III Expenditure Accounts by Years Rio Grande do Norte (USS Million) Totals Including Contingencies 1994 1995 1996 1997 1998 Total I. Investment Costs A. Civil Works 2.8 5.7 3.8 2.8 1.4 16.6 B. Equipment 1.2 1.1 0.7 0.5 0.2 3.8 C. Textbooks & Teachers' Guides 1.5 0.8 1.7 1.1 1.6 6.6 D. Reading Books & Dictionaries 0.6 1.5 0.3 0.4 0.3 3.1 E. Didactic Materials 1.9 1.8 0.4 0.5 0.1 4.6 F. Technical Assistance 0.5 0.7 0.7 0.4 0.2 2.5 G. Training C.5 0.9 0.8 0.8 0.4 3.4 H. Innovations Fund 0.2 0.2 0.2 0.2 0.2 1.0 Total Investment Costs FT4 12.6 C 85 6 7 4 41 6 Total PROJECT COSTS 9.4 12.6 8.5 6.7 4.3 41.6 Mon May 17 21:55:37 1993 2-1 Expenditure Accounts by Years [I tb i .. .. . . L 1ffl 5.§ f |t LI 8 h A| l ii ' gt -52- AnnexA Page 1 of 6 BRAZIL THIR NORTHEAST BASIC EDUCATION PROJECT Textbook Policy Issues and Project Schoolbook Procurement 1. Responsibility for textbook provision to public schools in Brzil is centized at the fedeal level and handled by the Progrwna Naional do Livro Didacdco (PNLD) under the auspices of the Fundagao de Assistencia ao Estudante (FAE). State and Municipal governments do not, for the most part, budget resources for the purchase of textbooks and school books on the grounds that it is FAE's mandate to carry out these actions. Unfortunately for Brazil's school children, FAE has consistendy failed to deliver the required quantity of textbooks to Brazil's public schools. 2. A background study of textbook distribution in Brazil undertaken during project preparation estimated that for piimary school alone, national textbook requirements are on the order of 100 to 120 million books each year. In 1992, FAE distributed 8.8 million books, or less than 10 percent of the estimated need. Although in some years textbook provision has been higher, on average over the last five years, less than one-third of the es-tmated national textbook requirements have been met by FAE. The study also found that supplementary reading materials are scarce or nonexistent in Brazilian classrooms. Writing paper and other consumable school supplies have also been provided only sporadically and in inadequate quantities by FAE. 3. While there are a number of reasons for FAE's failure, two principal ones concern Brazil's textbook financing policies. EIL FAE has no clearly defined source of funding and is routinely affected by irregular funding of its programs by the federal government. In recent years, FAE's final expenditures on schoolbooks bear little systematic relationship to the agency's budget request or budget allocation. Federal spending on school books is well below the US$175 to US$250 million per year needed to guarantee textbooks for all Brailian primary school students (depending on the estimate of a per-student book requirements). Second, the limited funds that are finally provided for textbooks come very late in the budget year. FAE cannot actually procure books until funding is secure, and this is often only a few months prior to the start of the new school year. The rush to procure books quickly and at the last minute has meant FAE has not been able to purchase the best books at the lowest prices. Iv the end, too few books are procured given the amount of funding provided, and they are procured too late. Fnaly, despite the federal govemment's failure, most states and municipalities in Brazil continue to work each year under the assumption that the national government will fulfill its mandate to finance extbooks out of federal resources and -53- Annex 4 Page 2 of 6 deliver books to all public schools. Consequently, they remain reluctant to spend their own limited resources on school books. As a result of a persistent policy failure that leaves no agent with resources and resonsibility for providing textbooks, tens of millions of Brazilian children attend school without books. 4. ]ck-Financed Projects and Textbook Financing Policy Reform. Besides the Sao Paulo Innovations in Basic Education Project (Ln. 3375-BR, 1991), already under implementation, Brazil is finalizing, or in cerain cases beginning to implement, five new basic education projects that will receive World Bank financing, serving nearly 10 million lower-primary children in 13 states.I All of these projects have textbook and/or educational materials components. Given the problems assoiated with financing of textbooks in the past, as discussed above, the lack of an effective textbook financing policy continues to plague these projects in particular, and the nation in general. The textbook financing issue is being partally addressed by both of the Northeast Basic Education projects. One of the expected outputs of the Second Northeast Basic Education Project is a study of alternative proposals for reforning schoolbook financing and provision in Brazil. A condition of nWgQations for the current project was for the Government to bring to these negodations a letter of commitment to implementing, in a specified time-frame, a new national schoolbook financing policy, acceptable to the Bank, and to fuly funding textbooks for all children enrolled in public primary schools in Brazi. 5. Discussions between the Bank and the Government identified the essential elements of an acceptable book financing policy: (i) the definition of "standard' textbook packages for each schoolchild, by grde-level; (ii) average, minimal textbook expenditure levels per child, based on the estimated cost of these standard packages (ranging from perhaps US$5 to US$7 per student); (iii) agreements on state-by-state percentage allocations of textbook resources (based on state public school enrollment levels); (iv) specification of funding sources (such as agreed set-asides from sabario-educago tax collections); (v) the utilization of financial instruments to protect the value of these book funds; and (vi) the legal, institutional, and fiscal mechanisms required to assure regular and timely availability of these funds. ' The five new projects are the two Northeast Basic Education Projects, the Minas Gerais Education Quality Improvement Project, the Espirito Santo Basic Education Project, and the Parana Basic Education Project. These last three projects were appraised in June 1993. -54- Annex4 Page 3 of 6 6. One month before negotiations, the Minister of Education formulated, as an official resolution, the Govenunent's new textbook financing policy: Resolution Number 6, signed by the Minister on July 13, 1993, published in Brazil's Official Gazette (Diario Qflcial) on July 16, 1993. This Resolution, which was accepted by the Bank as the Government's policy letter referred to above, specifies a new national textbook financing policy. In this resolution, the Ministry of Education states its commitment to the following: i.) each year 270 million UFIR (or approximately 12 UFIR per student)2 wiU be set aside from the federal share of the salario educapao for the purchase of textbooks for pnmary-level students public schools; ii.) these funds will be passed through FNDE to FAE in accordance with a schedule of disbursements that is compatible with assuring the distribution of these books prior to the start of the school year, iii.) these books will be programmed for each state as a function of public school enrollments in the state; iv.) priority wi1l be given to the first four primary grades; v.) books for the first two grades will be replaced annually, for third and fourth grades, every two years, and for fifth through eighth grades, every three years; vi.) FAE will be responsible for implementing this resolution; vii.) this resolution is in effect immediately. 7. In addition to the financing issue, other serious problems with the current system include book selection and final book distribution. Under the current system, schools select books from a FAE catalogue; these orders are then consolidated by the state secretariats who in turn procure the orders from the manufacturers. The FAE list, however, is excessively inclusive: any publisher may get its books added to the list, without any review of books' educational value, production quality or costs. Teachers make their selections from this List of titles (over 2,000 long) with no descriptions, cost, or quality information. With respect to distribution, for many years FAE relied on state and municipal governments to distribute 2 Twelve UFIR (Unidade Fiscal de Referencia) per student represents an inflation- protected monetary allocation roughly equivalent to US$6.00. -55- Annex Page 4 of 6 books to the schools and there were many documented cases of losses. In 1992 the agency began using the postal service for distribution, which by all accounts worked well, although the volume of books distributed was very small. For 1993, the agency again intends to use the postal service for direct distribution to the schools, but it remains to be seen if the service can handle larger volumes. 8. Implemenfing the Schoolbook Component. The Second Northeast Basic Education project is financing specialist consultant services to the northeast states and to FAE to help them establish and carry out an alternative textbook and supplementary reading book procurement process for the Northeast. This new procurement process is designed to achieve more informed selection of books, more stringent production and content specifications, more competitive prices, and more timely and efficient distribution of books to the schools. The proposed procurement arrangements are as follows: Each year of project implementation, beginning in 1994, textbooks, workbooks, teaching guides, supplementary reading books, and reference books would be procured through an international competitive bidding (ICB) process. A modified two-step ICB procurement DMc=s (described below) has been agreed as the most appropriate approach, both for the procurement of textbooks, workbooks, and teaching guides, on the one hand, and for the procurement of supplementary reading books and classroom reference books, on the other. 9. FAE, MEC/SEF, and the project states have already begun to prpare for these two procurement activities with the assistance of specialist consultants supported under the national componenit of the Second Northeast Basic Education Project. Both the bidding document for textbooks, and the bidding document for supplementary reading books will clearly specify the selection criteria and evaluation procedures to be used for each category of book in each bid. Selection criteria for both bidding processes have already been developed and agreed by representatives and education speciists from the Northeast State Secretariats of Education, MEC/SEF and FAE, for the initial procurement of books for the 1995 school year. A draft bidding document for textbooks has been already been completed and submitted in draft form for the Bank for review. It is expected that this bid can be launched before the end of calendar year 1993. A drft bidding document for supplementary reading books has also been prepared. MEC and FAE expect to launch the bid for the supplementary reading books in the beginning of 1994, with the objective of delivenng these books before the end of that year. 10. Technical evaluation. Both the textbook and supplementary reading book procurement processes will follow the same principles for the technical evaluation of the bids. After each type of bid is closed, evaluation will be carried out by trained evaluation -56- AL4 Page 5 of 6 committees consisting of specialists from MEC/SEF, FAE, and the Northeast states. The task of the technical evaluation committees would be to prepare an approved ist of Ally acceptable dtles for each category of textbook (n the case of the textbook bid) and for each category of supplementary reading book (in the case of fte supplementary reading book bid). The evaluation committee will subject each proposal (each textbook, reading book, etc.) to three levels of technical review: (i) publishers' qualifications (including production and financial capacity for ufilig largescale orders); (u) physical production charteristics, as specified in the list of criteria publshed in the bidding document; and (iii) pedagogical and artistic specification, also as specified in the published criteria of selection. As a result of this rigorous technical evaluation, all of the books included on the final approved list would be considered of relatively equal value (within its category) in tenns of physical and pedagogical specifications. Nonetheless, the range of prices may be quite large. II. Price Evaluation. At this point, the price envelope would be opened. This price proposal would specify the price-quantity curve for each proposed book or book package (several subcategories of fiction books will be evaluated as mini-packages of 6 to 8 books). The objective of this step is to prepae a sho. lst of approved books within an acceptable range of the lowest-priced book in each category. For each category of books, all titles from the approved list falling within 15% of the lowest-priced bid in that category will be placed on the final short la. For example, it is expected that approximately 4 to 6 textbooks tides would be included on the short List for each subject in each grade level. 12. Book Selection and Contracting: Textbooks. Once the short listfor teabooks is prepared, it will be distributed to all the state and municipal teachers in the project states to select the books they want for the subsequent school year.3 Next, FAE would aggregate the teachers' orders in a computerized database, and would specify the quantity of each title to be procured. This specification would serve as the basis for contracting. From FAE's perspective, the process of contracting will be very staightforward. Rather than having to negotiate prices with each publisher, which is the traditional pmactice, in the new procurement process prices per book have been fixed since the opening of the price envelopes. The proposed procurement cycle for textbooks has been designed to assure that publishing houses have sufficient time to publish and deliver to a regional post-office, by December 1, 1994, prepackaged and labeled cartons of books for each school. 3 Teacher selection of textbooks from a list prepared by FAB is the tradition in Brazil. From the teachers' viewpoint, the only difference between this new procurement process &nd the traditional one is that in the new process, FAE's list (the shot list) will be considerably shorter. -57- Annex 4 Page 6 of 6 13. Book Selection and Contracting: Supplementary Readers. Selection of supplementary readers will follow a slightly different process. Once the short lastfor supplementary readers is prepared, state selection committees would make the final choices. Their task would be to specify at least one reading package, composed of books from the short listfor supplementary readers, in accordance with a profile for the classroom reading comer" that has already been agreed among the project states. It is expected that a single supplementary reading book package of about 90 books would be selected for all first and second grade public school classrooms, and one 90 book package for aWl third and fourth grade classrooms. Both packages would be composed of titles from a variety of publishers. Again, the process of contracting would be simple since the prices would have already been agreed at the time of bid opening. The terms of the contract would require each publisher to deliver the books by a specified date to a central consolidation site in Recife. There, the books would be packaged and distributed to the schools by a single consolidation contractor- also to be procured through a competitive bid. 14. It is expected that, to carry out the procurement of textbooks and replacement supplementary reading books in subsequent years, processes similar to those described above would be used. Nonetheless, FAE and MEC/SEF have agreed to conduct a process and outcome study to compare the costs and benefits of this procurenent process with the traditional FAE procurement process, which would continue to be employed for non- Northeast states. This study would provide recommendations that could improve the outcomes for schoolbook procurement-both for project and non-project states. 4 This profile specifies how many picture books, how many fairy tales, how many poetry books, how many non-fiction science books, etc., will be selectd for the reading corner. -S8- Page I of S Basic State Education Systm Statistics ALAGOAS Stal. Mundidpal Total 0 Enrlulments, grades 1 and 2 64,700 152,814 217,514 Enrullments, grades 3 and 4 45,335 42,808 88,143 Teachrs, primary school (-) 6,174 7,772 13,946 Teache, gades I and2(') 1,S49 3,S29 S,078 Teachers, gades 3 and 4() 1,074 924 1,998 Teaches, multigraded (m) 77 1,908 1,985 Classe, grade 1 and 2 1,832 3,664 5,496 Classe, grade 3 and 4 1,270 9S9 2,229 Casses, multigaded 77 1,908 1,985 Classrooms, grade 1 and 2 (m) 891 2,108 2,999 Classrooms, grade 1 and 2 (>) 618 552 1,170 Cassrooms, multigraded (n) 77 1,908 1,985 Total number of pfrimay school 396 2,572 2,968 % of pfimary schools in rua arss 36.36 90.28 83.09 Source: MEC Sistena Flshb (1989) 0g3 Total = Stae + Municipal (4) These figures exceed the acul number of teahers as some teahers may be counted mere than one. (U) These figures were estimated by tbe appraia mission as proportioul to the number of classe by gradb assuming one teaher for each of Ist to 4th grades and multigrade classes and four teachers for each of 5th to 8th grade cblses (m) These figures were esiumated by the apprail mssio as proportional to the number of clases by grade. It was assumed that only one clasroom was weded for each multigrade clas. -59- Page 2 of S ________ BARA State Muicipal Total( Enrollmnets, grades 1 and 2 318,203 636,502 954,705 Enrollments, grades 3 and 4 216,633 176,160 392,793 Tedhers, primary schol (m) 31,800 37,185 68,985 Teacdhs, grades 1 and 2 () 7,221 9,785 17,006 Teaches, grades 3 and 4 4,826 2,316 7,142 Teachers, nm figraded (') 432 16,802 17,234 Clases, grade I and 2 10,444 12,478 22,922 Classe, grade 3 and 4 6,980 2,953 9,933 Classes, multigraded 432 16,802 17,234 Classooms, grade 1 and 2 (Mj 5,935 8,433 1,437 Classrooms, grade 1 and 2 (C) 3,966 1,996 5,963 Classwooms, multigraded (in) 432 16,802 17,234 ToWalumber of primary schools 3,024 20,759 23,783 % of primary schoob in rual anrs 19.68 92.63 83.36 Source: MEC Sitenma Flash (1989) (a) Totd - State + Municipal (a) These figures exceed the actua number of toeaers as some teachers may be counted moe than once M) Tse figures were esimated by the apprisal mission as proportional to the nber of dasses by grade assu_ig one taher for each of 1st to 4th gades and multigrade classes and four achers for each of 5th to 8th grade classes. hmese figures were estmted by the appraisd mission as proportional to the number of casse by gmde. It was assumed that anly one classroom was needed for each multigrade class. .60- Annex Page 3 of S ._______ PARAIBAA State Muiudpal Total ) Enrllments, grades 1 and 2 68,035 191,322 259,357 Enrolments, gradet 3 and 4 53,900 65,560 119,460 Teachero pinwy school (j 11,747 14,372 26,119 Teachers, grades 1 and 2 ('j 1,888 6,193 8,082 Teaches, grades 3 and 4 C) 1,491 1,814 3,306 Teache˘s, ndtigraded () 376 4,832 5,208 Clasew, grade I and 2 2,273 6,138 8,411 Clases, grade 3 and 4 1,795 1,798 3,593 Classe, undtigraded 376 4,832 5,208 Classrooms, grade 1 and 2 () 1,303 4,722 6,026 Classrxms, grade 1 and 2 () 1,029 1,383 2,413 Classrooms, multigrded (M) 376 4,832 5,208 Total nunber of primary schools 1,051 6,459 7,510 % of primary schools in mrul ars 43.77 89.46 83.06 Souree: MEC Sistenia Flash (1989) C Total - State + Municipal (in) These figures exceed the actual number of teachers as some teachers may be counted more than once. ('j These figurs were estimated by the appaisal mission as prponal to the number of classes by grade assuming one teacher for each of 1st to 4th grades and multigrade classes and four teachers for each of 5th to 8th grade classes. These figures were estimated by the appra mission as proporional to the number of classes by grade. It was assumed that only one classroom was needed for each multigrade class. .61- Am=x S Page 4 of 5 ________PIAUI _ _ _ _ _ State MuudFpal Totd C) Enrollments, grades I and 2 132,381 221,119 353,500 EnrollentsS, grades 3 and 4 75,255 53,451 128,706 Teachers, primary school (-) 14,812 12,780 27,592 Tahers, grades 1 and 2 (j 4,208 5,397 9,605 Teachers, gades 3 and 4 Ce) 2,393 1,104 3,497 Teachers, multigraded () 298 5,189 5,487 Classe, grade I and 2 4,582 5,841 10,423 Clsses, grade 3 and 4 2,605 1,195 3,800 Casses, mudtigraded 298 5,189 5,487 Classroms, grade I and 2 () 2,999 4,246 7,246 Cssrooms, grade I and 2 1,705 869 2,574 Classooms, multigraded ( 298 5,189 5,487 Total number of prnmy schooLs 1,158 6,718 7,876 % of primary schooLs in ural areas 47.15 97.22 89.86 Source: MEC Sistema Flash (1989) ) Total State + Municipal These figures exceed the actual number of teachers as some teachers may be counted morm than once. () These figures were estimated by the appraisal mission as proportional to the number of classes by grade assuming one teacher for each of 1st to 4th grades and multigrade classes and four teachers for each of 5th to 8th grade classes. () These figures were esfimated by the appraisa mission as proportional to the number of clases by grade. It was assumed that only one classmom was needed for each multigade class. -62- pg 5of 5 RIO GRANDE DO NORrE Si9te | Muniipal Tot )| Enrollments, grades 1 and 2 89,779 118,205 207,984 Enrollments grades 3 and 4 61,220 40,438 101,658 Teawhers, pnmaq school (U) 10,349 9,295 19,644 Teachers, grads I and 2 (") 2,258 2,944 5,202 Teadhe, grades 3 and 4 CU) 1,554 960 2,515 Teaches, mdtigraded (U) 486 2,229 2,715 Classe,grade I and 2 3,086 3,821 6,907 Classe, grade 3 and 4 2,124 1,246 3,370 Classes, 486 2,229 2,715 Classrooms, grade 1 and 2 ("U) 1,413 2,164 3,578 Cassons, grade 1 and 2 (') 973 706 1,679 Cassooms, mIOtigraded C"") 486 2,229 2,715 Totd nmmber of prunary schools 1,192 3,170 4,362 iof primay schools n rural sass 59.82 89.50 81.38 Source: MEC Sistema Flash (1989) C) Tot - State + MucipaW (U) These figures exceed the actual number of teacher as some teaches may be counted more than once (U') These figures were esinmated by the apprail nission as proportind to the number of clases by grad. assuming one teacher for each of 1st to 4th grades and multigrade classe and four teachers for each of 5th to 8th grade clas. (^ These figues were esimated by the appisal mission as proporinal to the number of classes by grade. It was assumed that only one classroom was needed for each multigrade class. -63- AM Page 1 of 4 Baic Educato Sytm Pwfonua e Dat (pere disnlbution of sudents) NORTHEAST (9 states State _ Munipal Public Indicator 1987 1988 1989 1987 1988 1989 1 1988 1989 Grade I/Grades 1-4 34.4 34.7 33.8 53.7 55.3 55.0 46.2 47.4 47.2 Grade 2/Grades 1-4 24.9 24.9 25.2 23.2 22.1 21.9 23.9 23.2 23.1 Grades 1-2/Gtades 1-4 59.3 59.6 59.0 76.9 77.4 76.9 70.1 70.6 70.3 Grade 1/Grades 1-8 22.0 21.7 20.6 49.0 49.9 49.3 36.2 36.6 36.1 Grade VGrades 1-8 16.0 15.6 15.4 21.2 19.9 19.7 18.7 17.9 17.7 Grades 1-2/Urades 1-8 38.0 37.3 36.0 70.2 69.8 69.0 54.9 54.5 53.8 Grade 4 Completn/Grdes 1-4 12.4 11.6 5.4 5.3 8.1 7.7 Grade 8 Completes/Crades 1-8 3.9 3.7 _ 0.8 0.8 2.3 2.2 Source: MEC Sistema Flash (1989) NORTHEASr BASIC EDUCATION m (project sates) Stat Municipal Mblic !;iatr 1987 988 1989 1987 1988 97 1988 1989 Grade 1/Grades 1-4 36.1 36.0 34.6 57.4 56,9 56.2 48.9 48.3 47.6 Grade 2/Grades 1-4 24.7 24.8 25.2 21.8 21.6 21.S 23.0 22.9 23.0 Grades 1-2/Grades 1-4 60.8 60.8 59.8 79.2 78.5 77.7 71.9 71.2 70.6 Grade /Grades 1-8 23.9 23.4 21.9 52.8 51.4 50.7 39.0 37.6 36.7 Grade 2/Grades 1-4 16.3 16.1 16.0 2i.0 21.6 19.4 18.3 17.8 17.7 Grades 1-2/Grades 1-8 40.2 39.5 37.9 73.8 73 70.1 57.3 55.4 54.4 Grade 4 Comptdes/Grades 1-4 11.9 11.2 4.7 4.9 7.6 7.5 Grade 8 CorapletersGrades 1-8 3.7 3.5 0.7 0.7 2.1 2.1 Source: MEC Sistem Flash (1989) -64- Aumex 6 ALAGOAS Perent of Pupils Indicator State Municipal Idear Grade I/Grades 1-4 (1989) 33.1 55.4 25.0 Grade 2/Grades 1-4 (1989) 25.7 22.7 25.0 Gades 1-2/Grades 1-4 (1989) 58.8 78.1 50.0 Grade l/Grades 1-8 (1989) 22.0 50.4 12.5 Grade 2/Grades 1-8 (1989) 17.1 20.7 12.5 Gades 1-2/Grades 1-8 (1989) 39.1 71.1 25.0 Grade 4 Completers/Grades 1-4 (1988) 11.8 4.7 25.0 Grade 8 Completers/Grades 1-8 (1988) 3.0 0.6 12.5 Idea asumes 100% promotion ates from eac grade, with no change in cohoit size. Source:o MEC Sistema Flash (1989) BAEHIA Pecnt of Pupils Indicator State M| nicpal Ideal Grade I/Grades 1-4 (1989) 34.1 S8.3 25.0 Grade 2/Grades 1-4 (1989) 21.0 20.0 25.0 Grades 1-2/Grades 1-4 (1989) S5.1 78.3 50.0 Grade 1/Grades 1-8 (1989) 21.0 51.8 12.5 Grade 2/Grades 1-8 (1989) 15.6 17.8 12.5 Grades 1-2/Grades 1-8 (1989) 36.6 69.6 25.0 Grade 4 Completers/Grades 1-4 (1988) 11.1 4.5 25.0 Grade 8 Co'mpleters/Grades 1-8 (1988) 3.7 0.8 12.5 * assumes 100% promotion rates from esch grade, with no change in cohot Siz Source: MEC Sitema Flash (1989) -65- Annex 6 MMe3 of4 PARBA Percent of Pupils Indicator Stae Municpal Idear Grade I/Grades 1-4 (1989) 30.6 50.4 25.0 Grade 2/Gades 1-4 (1989) 25.3 24.1 25.0 GnuCis 1-2/Grades 14 (1989) 55.9 74.5 50.0 Grade I/Grdes 1-8 (1989) 16.2 47.5 12.5 Grade 2/Grades 1-8 (1989) 13.4 22.7 12.5 Grades 1-2iGrades 1-8 (1989) 29.6 70.2 25.0 Grade 4 Completers/Grades 14 (1988) 13.7 6.3 25.0 Grade 8 CoUpletes/Grades 1-8 (1988) 4.4 0.5 12.5 * Ideal assumes 100% promotion ras from each grade, with no change in cohort size. Source: MEC Sistema Flash (1989) I I UT _ __ _ __ _ ___PU_i Perent of Pupils Indicator State municipal Idear Grade l/Grades 14 (1989) 39.4 59.8 25.0 Grade 2/Grades 14 (1989) 24.3 20.8 25.0 Grades 1-2/Grades 14 (1989) 63.7 80.6 .S0.0 Grade 1/Grades 1-8 (1989) 29.4 57.5 12.5 Grade 2/Grades 1-8 (1989) 18.1 20.0 12.5 Gnades 1-2/Grades 1-8 (1989) 47.5 77.5 25.0 Grade 4 Completers/Gmdes 14 (1988) 9.4 4.4 25.0 Grade 8 COmpleters/Grdes 1-8 (1988) 2.2 0.2 12.5 Ideal asum 100% promotion rtes from each grade, with no change in cohort size. Sourc: MEC Sistema Flash (1989) ALnex6 Pie4 of4 RIO GRANDE DO NORTE Frent of Pupis Indicator Stat MUmdpa Idear Grade I/Grades 1-4 (1989) 33.8 49.8 25.0 Grade 2/Grdes 1-4 (1989) 25.6 24.7 25.0 Grades 1-2/Gades 1-4 (1989) 59.4 74.5 50.0 Grad. I/Grades 1-8 (1989) 21.8 40.2 12.5 Grade 2/Grades 1-8 (1989) 16.5 19.9 12.5 Grades 1-2/Grades 1-8 (1989) 38.3 60.1 25.0 Gade 4 Complters/Gades 1-4 (1988) 11.6 5.7 25.0 Grade 8 Comopleten/Grades 1-8 (1988) 3.7 1.8 12.5 * Ideal danm 100% promotion rate from each grade, with no change in cohott size. Source: MEC Sistema Flash (1989) -67- Annex 7 Page 1 of 14 ANNUAL MNANGEIMEN EMCIENC:Y TARGEI$ FOR TM The Government of the State of Alagoas is committed to achieving measurable improvements in the management efficiency of the State Secretariat of Education over the next five years. To this end, the Secretariat has developed a five- year Operaional Plan for improving education management. The Secretariat has also agreed with the Ministry of Education and the World Bank on annual targets for measuring progress in this area and has agreed to annual performance reviews, during which the Secretariat's progress in achieving its targets will be evaluated. The technical and financial resources which the Secretariat requires in order to be able to achieve these targets are being supported by the project's education management component. A detailed description of the annual review methodology, including definitions and data sources, are set out in the attached Technical Note (see page 11 of Annex 7). The AMET targets adopted by the State of Alagoas are presented below. TAIets to be verified in May 1994 for the 1995 time slice of the school facilities corDngaufl. 1. Achieve a safing ratio of 8.84 by January 31, 1994, measured in May 1994. 2. Achieve a matals ratio of at least 2.0% for calendar year 1993, measured in May 1994. 3. Demonstrate that the necessary counterpart fimds for the project have been allocated in the 1994 approved budget. Tariets to be verified In May 1995 for the 1996 time slice of the school facilities cmponent. 1. Achieve a stffing ratio of 9.37 by January 31, 1995, measured in May 1995. 2. Achieve a materials ratio of at least 2.5% for calendar year 1994, measured in May 1995. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1995 approved budget. -68- Amnex 7 Page 2 of 14 Targets to be verified in May 1996 for Xt 1997 time slice of the school facdllties 1. Achieve a stafng ratio of 9.93 by January 31, 1996, measured in May 1996. 2. Achieve a meria ratio of at least 3.0% for calendar year 1995, measured in May 1996. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1996 approved budget TargeMs to be vedfied in MUy 1997 for th 1998 die slice af the scb-l fadiltes eongonent 1. Achieve a sbtng ratio of 10.53 by January 31, 1997, measured in May 1997. 2. Achieve a matrials ratio of at least 3.0% for calendar year 1996, measured in May 1997. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1997 approved budget. -69- Annex 7 Page 3 of 14 ANNUAL MANAGTN E CINCY TARGIM FOR THIE Tne Government of the State of Bahia is committed to achieving measurable improvements in the management efficiency of the State Secretariat of Education over the next five years. To this end, the Secretariat has developed a five- year Operational Plan for improving education management. The Secretariat has also agreed with the Ministry of Education and the World Bank on annual targets for measuring progress in this area and has agreed to annual performance reviews, during which the Secretariat's progress in achieving Its targets will be evaluated. 'Me technical and financial resources which the Secretariat requires In order to be able to achieve these targets are being supported by the project's education management component. A detailed description of the annua review methodology, including definitions and data sources, are set out in the attached Technical NM. 'Me AMEr targets adopted by the State of Bahia are presented below. ts to W-be verified In MaU 1994 for the 1995 time slice of the school facilities 1. Achieve a stming ratio of 18.96 by January 31, 1994, measured in May 1994. 2. Achieve a materials ratio of at least 2.0% for calendar year 1993, measured in May 1994. 3. Demonstrate that the necesary counterpart funds for the project have been allocated in the 1994 approved budget. Targets to be verified In May 1995 for the 1996 time slice of the school facilities 1. Achieve a s _t ratio of 19.03 by Jamnary 31, 1995, measured in May 1995. 2. Achieve a materials ratio of at least 2.5% for calendar year 1994, measured in May 1995.. 3. Demonstrate that the necessary counterpart fiunds for the project have been allocated in the 1995 approved budget. -70- Annex 7 Page 4 of 14 Tartges to be verified in May 1996 for the 1997 time slice of the school facilities cmDonmet.L 1. Achieve a staffing ratio of 19.11 by January 31, 1996, measured in May 1996. 2. Achieve a materials ratio of at least 3.0% for calendar year 1995, measured in May 1996. 3. Demonste tha the necessary counterpart funds for the project have been allocated in the 1996 approved budget. TarMets to be emifed In M! 1997 for the 1998 time slice of the school facilites comanonent 1. Achieve a staffing rato of 19.18 by January 31, 1997, measured in May 1997. 2. Achieve a matrias raio of at least 3.0% for calendar year 1996, measured in May 1997. 3. Demonstrate that the necessary counterpart funds for the project have been aliocated in the 1997 approved budget. -71- Page S of 14 ANNUALMANAGEMENT EFl5V TA1 FOR M STATE3 OF PARIAM The Government of the State of Paraiba is committed to achieving measurable improvements in the management efficiency of the State Secretariat of Education over the next five years. To this end, the Secretaiat has developed a five- year Operational Plan for improving education management. The Secretariat has also agreed with the Ministry of Education and the World Bank on annual targets for measuring progress in this area and has agreed to annual performance reviews, during which the Secretariat's progress in achieving its targets will be evaluated. The technical and financial resources which the Secretariat requires in order to be able to achieve these targets are being supported by the project's education management component. A detailed description of *he annual review methodology, including definitions and data sources, are set out in the attached Technical Note (see page 11 of Annex 7). The AMET targets adopted by the State of Paraiba are presented below. Targets to be verified In May 1994 for the 1995 time slice of the sdol fatlities 1. Achieve a -affing ratio of 9.71 by January 31, 1994, measured in May 1994. 2. Achieve a materia ratio of at least 2.0% for calendar year 1993, measured in May 1994. 3. Demonstrate that the necessary counterpart finds for the project have been allocated in the 1994 approved budget. Tarees to be verified In May 1995 for the 199C time slice of the school faciUties 1. Achieve a staffing ratio of 10.23 by January 31, 1995, measured in May 1995. 2. Achieve a matrals ratio of at least 2.5% for calendar year 1994, measured in May 1995. 3. Demonstrae that the necessary counterpart funds for the project have been allocated in the 1995 approved budget. -72- Annex 7 Page 6 of 14 Trgets to be verified In May 1996 for the 1997 time sfice of the school facilities 1. Achieve a samfng ratio of 10.77 by January 31, 1996, measured in May 1996. 2. Aclieve a materials ratio of at least 3.0% for calenfda year 1995, measured in May 1996. 3. Demonstate that the necessary counerpart funds for the project have been allocated in the 1996 approved budget. Tarfet to be verified In Ma! 1997 for the 199 Ime slice of the schol fadilites 0wDponent 1. Achieve a stafing rato of 11.34 by Jamury 31, 1997, measured in May 1997. 2. Achieve a materials ratio of at least 3.0% for calendar year 1996, measured in May 1997. 3. Demonstrate that the necessary counterpart fimds for the pro;,ct have been allocated in the 1997 approved budget. -73- MM7 Page 7 of 14 ANNUAMANAG} :MN OR -YTARGEt FOR STATE 01; UIA The Government of the State of Piaui is committed to achieving measurable improvements in the management efficiency of the State Secretariat of Education over the next five years. To this end, the Secretariat has developed a five- year Operational Plan for improving education management. lTe Secretariat has also agreed with the Ministry of Education and the World Bank on annual targets for measuring progress in this area and has agreed to annual performance reviews, during which the Secretariat's progress in achieving its targets will be evaluated. The technical and financial resources which the Secretariat requires in order to be able to achieve these targets are being supported by the project's education management component. A detailed description of the annual review methodology, including definitions and data sources, are set out in the attached Technical Note (see page 11 of Annex 7). The AMET targets adopted by the State of Piaui are presented below. T=arfes to be verin Ma 1994 for the 1995 time slice of the school faci_ies 1 . Achieve a staffing ratio of 11.87 by January 31, 1994, measured in May 1994. 2. Achieve a materials ratio of at least 2.0% for calendar year 1993, measured in May 1994. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1994 approved budget. Tariets to be verified In May 1995 for the 1996 time sBce of the school faci8ties component. 1. Achieve a staffing ratio of 12.32 by January 31, 1995, measured in May 1995. 2. Achieve a materials ratio of at least 2.5% for calendar year 1994, measured in May 1995. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1995 approved budget. -74- Annex 7 Page 8 of 14 Targets to be verifed In Ma! 199 for fte 1997 tIne sice ot the school faciltes 1. Achieve a staMag rato of 12.79 by Jamary 31, 1996, measured in May 1996. 2. Achieve a materials ratio of at least 3.0% for calendar year 1995, measured in May 1996. 3. Demonstae that the necessary counterpart fuids for the project have been allocated in the 1996 approved budget. Targets to be verfied in M! 1997 for the 1998 time slice of the school facllities eownegnt. 1. Achieve a staffing ratio of 12.27 by January 31, 1997, measured in May 1997. 2. Achieve a materials ratio of at least 3.0% for calendar year 1996, measured in May 1997. 3. Demonsae that the necessay counterpart funds for the project have been allocated in the 1997 approved budget. -75- Aen 7 Page 9 of 14 ANNUAL MANAGEMENM EFCENCY TARGE FOR TIE STATE OF RIO GRANDE DO NORTE The Government of the State of Rio Grande do Norte is committed to achieving measurable improvements In the management efficiency of the State Secretariat of Education over the next five years. To this end, the Secretariat has developed a five-year Operational Plan for improving education management. The Secretariat has also agreed with the Ministry of Education and the World Bank on annual targets for measuring progress in this area and has agreed to annual performance reviews, during which the Secretariat's progress in achieving its targets will be evaluated. The technical . d financial resources which the Secretariat requires in order to be able to achieve these targets are being supported by the project's education management component. A detailed description of the annual review methodology, including definitions and data sources, are set out in the attached Technical Note (see page 11 of Annex 7). The AMET targets adopted by the State of Rio Grande do Norte are presented below. Targets to be verified in May 1994 for the 1995 time slice of the school facilities component. 1. Achieve a stafring ratio of 9.60 by January 31, 1994, measured in May 1994. 2. Achieve a matesials ratio of at least 2.0% for calendar year 1993, measured in May 1994. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1994 approved budget. Targets to be verified in May 1995 for the 1996 time sllce of the school facilities component. 1. Achieve a stafring ratio of 10.12 by January 31, 1995, measured in May 1995. 2. Achieve a materils ratio of at least 2.5% for calendar year 1994, measured in May 1995. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1995 approved budget. -76- Annex Page 10 of It Taets to k verified in May 1996 for the 1997 time slice of the school facilities 1. Achieve a staffing ratio of 10.66 by January 31, 1996, measured in May 1996. 2. Achieve a materials ratio of at least 3.0% for calendar year 1995, measured in May 1996. 3. Demonste that the necessay counterpart fimds for the project have been allocated in the 1996 approved budget. rets to be verified in May 1997 for the 1998 time slice of the school facilities omnomnL, 1. Achieve a staing ratio of 11.24 by January 31, 1997, measured in May 1997. 2. Achieve a matrial rtio of at least 3.0% for calendar year 1996, measured in May 1997. 3. Demonstrate that the necessary counterpart funds for the project have been allocated in the 1997 approved budget. -77- Annex 7 Page 11 of 14 ANNUAL MANAGEMENT EFFICIENCY TARGETS (AMETs) Technical Note (A) Introui 1. One of the main objectives of the Third Northeast Basic Education Project (as well as the Second) is to help State Secretar'ia. of Education (SEs) improve their efficiency in the management of education rv:ources - human, financial and physical. The projects will provide the means required to achieve this objective through the education management component. During the project, state secretariats' progress in improving management efficiency will be monitored annually by systematically tracking two key indicators: (i) the ratio of students to education employees (staffing ratio): and (ii) the proportion of education funds used for purchasing consumable materials for the state school system (materials ratio). These objectives have been translated into quantitative annual targets to be met by the states, in relation to baseline indicators which reflect the pre-project situation in each state. State budgets will also be monitored to ensure that adequate counterpart funds for carrying out the project are budgeted. As a condition of disbursements under the Time-Slice Component of the project, a state must meet these three annual targets, called Anmu Management Efficiency Targets, or AMETs. 2. At the full joint-review of project execution planned for no later than June 30, 1995, the states themselves will undertake a comprehensive evaluation of their progress in improving education management. At this time, the usefulness of the above indicators will be assessed as well, and the states, MEC, and the Bank will agree on any adjustments necessary in the specific AMETs set for the second half of dhe project. 3. Annual Reviews of AMETs. During project execution, annual reviews will be carried out to verify whether the Ses are meeting their targets and improving education management efficiency. These reviews will be carried out by the Ministry of Education, in consultation with the Bank. 4. Technical Commission. The project states have agreed to have their payroll, budget and expenditure documents analyzed annually by a technical commission established by MEC. TIhis annual analysis will be divided into four parts: (a) an analysis of the payroll, to establish the number of employees at the end of the period under review; (b) an analysis of the state final, executed budget (Balanco Fad) for the most recent available year; (c) an analysis of the most recent budget law (also published by the Finance Secretariat) to verify adequate project counterpart funds; and (d) official enrollments in the state education system, as estimated by the Ministry of Education. Each state report will have exactly the same content and organization and all substantiating documentation will be attached (for example, copies of relevant portions of payroll sheet, the Balanco Funa, and budget law). -78- Annex Page 12 of 14 5. Timetable for AMET reviews. States' AMETs will be reviewed in May of each year of ;'e project. On the basis of the data collected, the Commission will calculate the relevant performance indicators for each state. The Commission will complete its report by no later than May 31 of each year and will send copies of the report simultaneously to the SE of the respective state (c/o the state UESP), MEC (c/o UNESP), and the World Bank. Thereafter, MEC will utilize the Commission report to determine which states qualify for investment program financing under the Time- Slice component for the following calendar year, and communicate its recommended allocations for each of the states to the World Bank. After consultation, MEC and the Bank will, by June 30 of each year, inform the states of their allocations under the Improving schoolfaciliies component for the following calendar year. Should a state not meet its AMETs and thus be ineligible for funding under this component in that year, MEC will re-allocate the unused funds to those states which are eligible, or to other project components, in consultation with the Bank. The principle for reallocating these resources is to favor those states that have exceeded their targets, in proportion to the degree to which they exceed their targets, subject only to limits of states' absorptive capacity. A state which is ineligible for Time-Slice financing in a given year will be eligible the following year, as long as it meets its targets for the following year; however, states will not be able to recover the forfeited funding, because the funds will have been transferred to other states or other project components. 6. Below is a detailed description of the methodology for calculating states' staffin ratios and materials ratios. B. Staffintg Ratios 7. Definitions The staffng rato is defined as the ratio of the total number of students enrolled in the state school system to the total number of staff employed by the SE. Due to the special circumstances presented by some of the states, the following criteria for calculating this ratio were agreed. Total st^"e enrollments will include all students enrolled in the state public education system in pre-school, literacy classes (alfabedkacao), primary school, secondary school, and regular adult education (supletivo regular). Total staff employed will: i) include all staff listed on the payroll of the state Secretariat of Education (folha de pagamento da SE); ii) exclude all retired staff listed on the SE payroll; and iii) include all temporary employees and trainees, apprentices, or student teachers (estaglarios) which are working for the SE but which do not appear on the SE payroll. At appraisal, each SE also supplied the Commission with a list of all SE-employed teachers and/or other staff currently seconded to schools not run by the Secretariat of Education (escolas conveniadas). -79- Annex 7 Page 13 of 14 8. Baseline Staffing Ratios. The baseline iicators for each state were calculated by the Commission based on states' payroll data from January 1993 and the most recently available official MEC estimates of initial enrollments for each state (matricula nidclal). Initial baseline estimates are: Staffing State Ratio Alagoas 8.34 Bahia 18.89 Paraiba 9.23 Piaui 11.43 Rio Grande do Norte 9.11 9. Annual Staffing Ratio Targets. The Northeast states agreed that more efficient use of their human resources in the education seztor implied gradually increasing their staffing ratios from the current levels towards a long-term goal of approximately 20:1, or 20 students for each education employee. Other states in Brazil and other countries in Latin America have achieved well-functioning education systems with staffing ratios of this order of magnitude. It was recognized, however, that movement in this direction will have to be gradual, and based largely on non-replacunent of vacancies aising due to retirements or other deparures from service, rather than any outright retrenchments of staff, given the limitaticns imposed by the Constitution in this area 'he annual staffing targets agreed with the states are feasible on this basis. All of the targets leave room for filling Am vacancies, but would require reallocation of existing staff in order to deal with other vacancies. Annual target values of the taffing ratio for each project state are reported in pages 1 through 10 of this Annex. 10. The assessment of the management consultants and the World Bank is that the states should be able to achieve these targets with no decline - and in fact increases - in the qualjy of education services, if they are carefut to redefine functions and reallocate existing staff on a rational basis. This would represent a significant improvement in the efficiency of human resource use In the education secretariat, and wouWd free up budgetary resources, permitting increases in spending on comple,awtary educational inputs (such as books and materials) andlor gradual increases in staff remuneration and incentives, which are important for atrcting or retining high-caliber staff. The education management component of the project will support states' efforts in this area to rationalize personnel management. 11. The staffing ratio targets for each state were based on: i) the state's baseline ratio; and ii) an estimate of the annual rate of improvement from this baseline required to attain, in 15 years, a staffing ratio of 20 students per employee. A variation of plus/minus 2.5% around the established target will be permitted at each measurement period, reflecting measurement error. States which exceed their targets for a given year will receive priority if any funds under the time-slice component are available for reallocation in that year. In the event that a state does not attain its staffing ratio target for a particular year, that state's fiture targets will be recalculated, in order to permit attainment of the 20:1 ratio within 15 years from the beginning of the project (i.e., a steeper rate of progress will be required). -80- Annex 7 Page 14 of 14 12. Should the appropriate enrollment data from the Ministry not be available at the time of future AMET reviews, an extrapolation of state enrollments will be made, based on the latest available MEC estimates and the average annual growth of enrollments over the prior two years. In the event that states' recent enrollment growth has been negative, the average annual growth rate of the overall population in the state may be substituted. C. Materials Ratio 13. Definitieins. The indicator materials ratio is defined as the ratio of SE expenditures on materials such as notebooks, chalk, paper, etc., to SE expenditures on consumable materials plus personnel. The numerator is derived from the budget category entitled "consumable materials"; the denominator is the sum of the categories eoonsumable materials" and "personnel" (excluding expenditures on retired employees). To be expressed as a percent, this ratio will be multiplied by 100. 14. Baseline Indicators. For each state, the baseline materials ratio will be considered 1.5. 15. Methodology to be Utilized in Reviews. Starting in May 1994, the Commission will conduct an analysis of the previous year's final, executed budget for each state to obtain the requ. data. Thus, the mteials ratio will always represent the state's performance in the year preceding that of the review. 16. Cque. In order to meet its materials ratio target, a state must have a percenage of expenditures on school materials (calculated according to the methodology described above) equal to or greater than the target established for that year. -801- Annex 8 Page 1 of 3 GUIDELlNES FOR THE IMPROVING SCHOOL FACILITIES COMPONENT (A) Preparation of States' Annual Investment Plans for Civil Works and Procurement of Goods (PAI 1. It was agreed with the representatives of the SEs and MEC that states' Annual Investment Plans (PAls) would be submitted annually to MEC by no later than August 31 of each year. After its review, MEC would forward these PAls to the Bank by no later than September 30. This is to allow enough time for a Bank mission to visit the states to discuss the proposed PAls with state and ministry officials, and to enable the states and MEC to prepare final PAls by no later than November 30. Proposed forms to be used to submit the civil works and goods procurement programs were agreed with MEC. These forms indicate the minimum information the document should contain. The form, grouped by school district, should contain, basically: (i) name of the unit; (ii) address; (iii) the type of school system to which the unit belongs (municipal or state); (iv) type of intervention (new construction or rehabilitation); and (v) estimated costs of the programmed civil works in cruzeiros and in dollars, with reference to the date on which the estimate and respective cost was made. The same format should be used for goods to be procured under the project. (B) Criteria for Appraisal of the PAI for the llme Slice Component 2. States' PAIs will be appraised according to the following criteria: (i) local visits to certain civil works in order to evaluate the performance of the SE and the municipalities in the selection, contracting, management and supervision of civil works during the previous period, as well as the performance and quality of the contracted builders or municipalities; (ii) analysis of proposed goals; (iii) analysis of any changes in unit costs, in dollar equivalents, for construction or items to be procured since appraisal; (iv) analysis of any changes in the total costs, in dollars equivalent; (v) analysis of quantities yet to be executed and of the uncommitted amount, in dollar equivalents, so as to ensure an adequate implementation of the physical goals in terms of the availabilities of funds to finance them; (vi) analysis of the budget proposals made by MEC and states identifying the respective allocations of the national counterpart funds and external fwuds; (vii) analysis of any physical/financial or administrative obstacles that have impeded or may impede proper implementation of the programmed goals and the flow of funds; (viii) identification of the measures to be taken by various government levels-federal, state and/or municipal-to overcome actual or potential impediments; (ix) analysis of the subsidiary agreements and any other convenios, and the addenda thereto, between MEC and the State and between the State and the municipalities included in the annual programming, so as to make feasible the transfer of funds and execution of plans; and (x) review, if necessary, of the bidding documents and other documents being used for procurement. 3. Agreelments [Conveniosi With Municipalities. It was agreed with MEC and the states that the convenios between the State and the municipalities for purposes of implementing this -82- Annex 8 Page 2 of 3 component should contain the same commitments as the agreement that the states sign with MEC. Requests for reimbursement from the municipalities that are party to the agreement can be made only after the municipalities involved have submitted statements of accounts, and only for eligible payments. Such statements of accounts shall contair, as a minimum, the following documents: (i) transmittal letter: and (ii) first or second copy of the invoices, trade acceptance bills, and bills submitted by construction contractors andlor suppliers, as well as interior and exterior dated photos of the construction projects that are the object of the requests for reimbursement. 4. Bidding Procedures. It was agreed that bids for civil works for school building expansion and rehabilitation will be handled by 'packages' of schools located in a single geographical area, not necessarily within the same municipality. It was also agreed that all packages valued at US$100,000 or more would be contracted via local competitive bidding (LCB). The 'wfiver of bidding' mode will not be permitted, even if the value of the tender is within the limits allowed by current federal, state, or municipal legislation. Requests for Price Quotations or Invitations to Tender will be sent to companies that have pre-registered with the purchasing entity or another state public body, and this registration must be renewed annually by nationwide publication of a registration announcement. Purchases of computer equipment, office equipment, and office furniture, vehicles, and all school equipment and furniture acquired with the loan funds must be packaged insofar as possible into contracts of more than US$300,000 and procured through ICB. Given the greater difficulty anticipated in the ICB procedures it was agreed that equipment and funishings for units in the municipal school system will be purchased on a centralized basis by the states, then passed on to the municipalities. The agreements with these municipalities will stipulate this. It was agreed that the prices in the tenders under the public competitive bidding mode will not be published, and will obey the criterion of lowest price. In the event that an SE wishes to establish, for a given instance of LCB, upper or lower limits with reference to a base price (bracketing), that price will be the average of the prices offered by the bidders who participate in that LCB. Those limits shall, however, be + or - 15%. The Bank recommends that selection criteria be adopted that encourage non-occurrence of tie bids. For example, a bonus can be included for reducing the deadline on the anticipated construction timetable, or other criteria. 5. Retroactive Financing, The mission informed the states of the possibility of negotiating retroactive financing of eligible expenses on Project goals incurred in advance by the respective SE; i.e., expenditures made less than one year prior to the date of signature of the Loan Agreement and in an aggregate amount of not more than 10 percent of the value, in dollar equivalent, of the loan to the requesting State. The mission also reported that if the retroactive financing is approved, the states should submit their requests not more than 30 days following the date of signature of the Agreement. Otherwise, they will lose their right to retroactive financing. Moreover, the expenses must fall within the agreed value limit. 6. Amounts of the Time Slice for Each State. At appraisal, the portion of states' multi-year investment program dealing with school rehabilitation and construction investments was evaluated and agreement was reached with each state on a realistic annual volume of construction investments f&: the project period. The US$193.3 million component represents about US$13 per state and municipal -83- Annex & Page 3 of 3 student (grades 1-4) per year over the project period, which represents a reasonable overall allocation of expenditure for these states (roughly 10 percent of total spending per student, per year). Although this will be an increase over the average level of education investment these states have been able to sustain in recent years (between US$0-10 per student per year, in the different states), it does not exceed the states' absorptive capacity: state investment spending vacillates sharply from year to year and each of the states has at times executed levels nf investment per student considerably higher than the level proposed. The agreed level of investment for the project period is also considerably below the investment needs prevalent in the five states (physical school conditions in many areas are deplorable). 6. The mission appraised the investments that are to be carried out during the first year of the project (January 1 to December 31, 1994). It was agreed at negotiations that all five states are eligible for funding under the Improving School FaciliNes component (execution of their agreed investment programs, or PAls) for the first year of the Project (1994), as a result of having maintained the staffing levels agreed to at appraisal and having agreed to the methodology for measuring the AMETs (see Annex 7). The specific allocations for each state are as follows: Alagoas (US$ 1 million); Bahia (US$12.7 million); Paraiba (US$ 4.7 million); Piaui (US$ 5.5 million), and Rio Grande do Norte (US$ 3.8 million). States' allocations for the financing of subsequent years of the improving school facilities component, however, will be conditional upon each state's attainment of its AME-s, and on agreement with the Bank on the detailed investment program for the year in question. In order to determine states' eligibility for the financing of their school facilities component activities for 1995, there will be a review of states' progress in meeting their AMETs by no later than May 30, 1994. Thereafter, states' performance vis-a-vis their AMETs will be evaluated by MEC (with consultant assistance) by May 30 of each year, following the methodclogy described in the Project Operational Manual and summarized in Annex 6. Based on these assessments, MEC will establish which states are eligible for time-slice financing for the following calendar year, and wil confirm by June 30 each state's time-slice allocation. It was agreed at negotiations that MEC wil make these determinations in consultation with, and in a manner satisfactory to, the Bank. It was also MWree at negotiations that the annual allocations for each eligible state will be based on several factors: (a) the size of the multi-year investment program for each state which was agreed at appraisal; (b) each state's performance in meeting its AMETs; (e) each state's performance in executing its PAI during the previous year; and d) each state's capacity to execute an expanded PAI, should additional resources be available owing to the ineligibility of one or more of the other states. In the event that one or more states is not considered eligible for an allocation during any particular year, the entire funding for that year will be reallocated to the remaining eligible states, to the extent feasible, given eligible states' absorptive capacity. In the event that the remaining eligible states could not reasonably absorb the total annual allocation, the Government may ask the Bank to cancel the corresponding loan amount for that year, rather than carry it over into subsequent years. -84- Page 1 of 10 PERFORMANCE INDICATORS FOR STATE PROJECT COMPONENTS: EDUCATION MANAGEMENT, TEACHER TRAIING, EDUCATIONAL MATERIA1S 1. vTwo types of performance indicators will be used to monitor the implementation of the education management component, teacher training component, and the educational materials component in each state. These are: key accomplishment indicators; and outcome indicators. (A) Introducln 2. The first type of indicator is the key accomplishment indicator. This type of indicator will be used to monitor critical accomplishments of each of the major components of the project, prmitting the bank, MEC, and the states to establish broad targets for project implementation. The key accoplsnmem Indicators to be used, their baseline values, and the annual target values for these indicators were agreed at negotiations. The second type of indicator wdl measure the specific outcomes of each of these three components. These outcome indicators, which correspond to the "activities" specified under each subcomponet, will be specified in the operational plans for the three components of each state. (B) Kea Amihmencnt Perfamance Indicators 3. The four groups of key accomplishment indicators presented below have been selected to represent milestones in the . itical path for successful project implementation. They concern: (a) Student flow in state and municipal primary school systems. (b) Project Inplementadon Checkdists (PICs) for critical actions under the three state components-education management, teacher training, and didactic materials. (c) Annual school-lewel ormaon database reports. (d) Annal project gods and services delivery report and discrepancy analysis. (a) Student Fl (Reference: Table A9-1). The overall goal for the Third Northeast Basic Education Project (NEBE II) is to 'increase student learning, reduce repetition, and increase graduation rates in the four states." The first key accomplishment performance indicator is designed to monitor progress toward this overall goal. The emphasis here will be on repetition, dropout, and graduation rates be-wuse, unfortunately, direct -85- Annex 9 Page 2 of 10 indicators of student learning, by state and sector within state, may not be available untl after the first feyv years of project implementation. Without baseline measures, it is difficult to set performance targets. Consequently, the first set of key accomplishment performance indicators measures the flow of primary school pupils across the grades within the state schools and also within municipal schools. The actual indicators measure the proportion of students bunched up in first grade, and the proportion of primary pupils who graduate each year from the primary education system. The baseline measure is taken from CPS reports for 1989. Annual targets are estimated as the minimal significant improvements on these measures, based on a 10% annual reduction in the repetition rate, and a 5% reduction in the dropout rate. These indicators and targets are presented in Table A9-1. The data for this indicator should be derived from MEC stistics, and the UNESP will be responsible for calculating these indicators and compledng this table. (b) Project Implementation Checklists for the Education Management Component (Sample Reference: Tables A9-2 and A9-3). These project implementation checlMists (PICs) would serve as the primary means of tracling the overall execution of the education management component. There would be one checldist for each subcomponent designed to be completed anually by each state's Project Support Unit (UESP). The samples shown in Tables A9-2 and A9-3 represent PICs for the first two of the five subcomponents of the Education Mmagement Component. Additional PICs would have to be created for each of the project subcomponents. lhe project leader in each state is to be held accountable fo carrying out this task. The objective of these checklists is to assess whether the key accomplishments and actions of each subcomponent are achieved. Each item on a checklist may need additional explanation, in particular, to specify precisely what evidence will be required to score that item. The UESP is responsible for preparing this additional documentation, as necessary. Each item has a potential score, and the UESP can give marks up to and including the target score, depending on the evidence available. In addition to being accountable for the completion of the annual checldist on time, the project leader is ali- accountable for the particular marks given each item on the checldist. The bottom row on each of these checklists summrizes the expected implementation for the project for each year of project execution. (c) Annual school-level inaton database MM (Sample Reference: Table A9-4). One of the main objectives of the state program of the Third Nor heast Basic Education project is to improve management efficiency in each state's education system through improvents in the use of information, particllarly on schools-the primary insument for delivering educational services. Specifically, planners d adminisas need up-to-date * 0 -86- Annex 9 Page 3 of 10 and accurate information on staff and material resources available in each school, both in the municipal and state systems. The collection and tabulation of school-level information from each school will serve this purpose. Simultaneously, the school report will allow project monitors in the UESP to track the receipt of the various goods and services supported by the project.' The performance indicator for this activity is the annual completion of survey forms, one for the imuricipal sector, and one for the state sector, summarizing the information from the school-level information database. To ensure the integrity of these data, these two summary forms will be backed-up by one summary form for each municipality. Table A94 provides a sample format for which these data could be reported, overall, by sector, and by municipality. These municipal summary sheets will in turn be supported by computer printouts from the database reporting the same information by school. The data will include a count of the number of classrooms the school contains, the total number of staff employed at the school, the number of staff directly engaged in classroom teaching, the number of teachers who received inservice training the previous year, the number of school directors and assistant directors who received training the previous year, the number of Portuguese textbooks and the number of mathematics textbooks available and the number received last year for first, for second, for third, and for fourth grade children, the number of reading books previously in stock and the number the school received last year, and the nber of didactic material kits in stock and the number the school received last year. In addition to this database, the UESP will submit a summary of this database. In summary, Table A9-4 is the performance indicator instrument that this school-level information would be provided. (d) Anual epr on delivery of roject goods and services (Reference: Table A9-5). These reports are designed to correspond to the school-level information summary sheet (Table A9-4). In this case, however, the data themselves will be supplied by UESP's Project Procuremeat and Delivery Orders Database, in contrast to the previous case in which the reports will be built up from the school-level infbrmation database. Table A9-5 provides a sample format for which these data may be reported, overall, by sector, and by municipality. UESP will also provide, along with these summary sheets, a discrepancy analysis, (based partially on the third column of this table) comparing the receipt of goods and services by the schools with the delivery orders themselves. The subsequent adiwator (reference: Tlble A1O-d) tracks this same information fioze the site of distribution, and einates a discrepancy analysis. -87- Page 4 of 10 4. Qutcome Indicr (Reference: Figure A9-1). Ile purpose of outcome indicators is to monitor the achievement of the activities specified under each subcomponent in (a) the education management component, (b) the teacher training component, and (c) the education materials component. Underlying these indicators is the structure of the project design itself, which will be detailed in the annual operational plans for these components (the PAAs), prepared by each state and finalized prior to project disbursement for that state. Each component has a specific objective or set of objectives. Under each component, subcomponents were selected to achieve that purpose. These subcomponents may differ from one another in terms of their focus, orientation, and structre. Nonetheless, taken together, they constitute the necessary and sufficient conditions to achieve the component's purpose. Subcomponent activities are the building blocks of the components. They represent is the activities that the project team actually implements. The component "teacher training" for example, whose purpose is described in the SAR, is composed of two, separate subcomponents: short-term teacher training and school director leadership training. Each of these subcomponents is implemented thorugh discrete "activities." Under the first subcomponent, activities might include "sensitizing the teachers to the problem of repetition;" or 'training teachers in the use of supplementary readers." Activities are accomplished through the procurement and application of any of four types of inputs (items to be financed): training, technical assistance, materials and equipment, and dissemination of information. This design structure is depicted in Figure A9-1. 5. Output indicators are definitionally associated with level # (3) of Figure A9-1, the discrete activities to be carried out under each subcomponent. For example, under short-term teacher traning, the output indicators may include, ber alia, the number of training curriculum guides produced, the number of trainers trained for each type of training program, the number of teachers or other staff trained in each type of program, and the number of teachers or other staff passing an objective test measuring their acquisition of the knowledge and skills taught during the training program. The rationale for output indicators is that, as a first step, mechanisms are required to assure that each activity identified under the component and its subcomponents is completed. e ..i.t* * 101(I(j iii 1 ' I WI I I I W I1 I -A #- - - - - - I, 1 w W~~~~~~~~ I~ ~ ~~~~-i I IIIIIIIIIIII Sfe i 1-1 1 11 ICl I1-1 1 1 IIII I, 5 = = 2 = 5 = = = = = C_ = = = = = = - - - = 0 be _0 -89- Annex 9 Page 6 of 10 Tabl A902 NE-IM, EDUCATION MANAGEMENT COMPONENT PrqjealinplmenatidonChecist: PICC4 (To be opidd by th USP -~~~,. Nd.toa and .lana ,, .nh. w.moa .AMm NW rmd m- I &p~~Eeete Targed Scewa/Aduall Soor I ~ ~ 455Iftrd In May of aub-yam y-a, QW-1, 0o-) C_3 b Ser B4_ 1993 1993i s" 19 9T ~~gSSies~wf *iho q y c=Wkuid -Dd upda_ -&ud Study O0 / e1 ol to/ 101 lef lo sacool for stc sd mulcipaa system oriing * a, n a . alaumi al OdaeruWtesisl etA. iBadc if crh teria wi be aed eparay. iming crainIng arsge (ihbwf singt mfm d tmodoaining prwa) for 0 V 21 21 21 2 2/ WA yer identified. .rainjag tagab for the prvio year hved. 0 0w 5t S 5/ 5/ 5/ -ocha erof efaerece 1)OR fortedhnua ance forteeityea 0 2V 21 2V 2V 2 2V jive/producta of TA. deie in TOR fi-a previoua yewa 0 0/ 5t 51 51 5/ 51 Cbif A--I reat submlted to UNSP Fs Book sann s agtaei 0 01 2t 21 2/ 2V 2V sfodwb oducotioual and financial planning a a result of re/oam. A r eview of prewus yeares ryqtan co edais and pefox e 0 0/ Of 51 _/ 51 51 comp4ed and ddeivrd to secrt of educan fAnnualft of texa ye arono inw au and Muk* glm O C/ Of V V V V toted andtted to arcwy of edca ti prdutiof- aevic.' budgt(t(e pjecteda t of 0 Of 01 10/ 10/ t0/ 10/ mte amm kvW of ervice nex yew as be b pwvd do year. accunig freroent.alay c_fsotadf.r me. prie a.etec.). preducdiof plan to upgra Pdeb ql aoc to fUod=Ma t§l 0 0/ 0/ 01 51 5/ 51 sols (qspcifyng which svhoob will be uPWdd, bow dtey wM upgraded and te cost Of ths acuto). and ananzing p sbatontto daft an these, acio. producia f rport of school lavatmi plnig. coucd 0 C/ 01/ 2V 2 V 2/ ieb with municiW da"cueat. producio of maienane pkln for hool. deledca. and 0 0/ 11 11 11 V 1/ eawcs. idicating aomplen and plans for text year. etal Seore (aipected tsaget score/actualscore) 0 , O_ 171 4_/ 51/ 51/ 1 Si -90- Aex 9 Page 7 of 10 IMML WEY OUMU INICATORS (To be cosad by tbe UUP Humn ResPce Mimagams rcpt Trgd SoetA udlSOr e4asus.d in May Of GUINasuat year) F____________ I _1_ I'19 11996 1999 nadis Op omstzteu y to Ulnk peoanoldatab_ with pqyU dat_ ' 0 01 1 _ -,~~~~~ . -. oweyef pae d pe ccas ad compeaooby tsk (job titl). 0 OJ 0/ 1it to impove pactices in wom oulnd OOJentiv 0 11 . it - - rainigs ftain tat (incsds g es) for nax yar identie. 0 if if it I_ I/ if aliningtargets for paviosyr adVieed. 0 O 1 I/ 1/ 1/ 1/ r Al cm of refrce (TlOR for t _clmkslssos for namt vow apeoOiih 0 1 1/ t 1 1 1/ I 11 Aes/prductsof TA.l dfiodislIRfreo pmvlm year 0 O I 1 1 / it 1 U lI ChideAf usi rqpotsumtud to UNSP td Bak ummsrlig dbnng in 0 01 1/ 11 1/ I/ 1 P1odub bm- resources _namngm a ra utof efoan.L D foaans sanlo trdatsebadifd to incl er w OrO 0 01 0/ 11 * ezploy.elD Eumber * pecaldata (schdg y,r' .ut .:,n e job titlo (primy school teaher, do.) & cod. *conftoncID number * contrt boliper day anl pet week * tuta concls hed by Wbis e ploym in s m remnmationd oterlypes of compe..atlo. * toa moftly paid aly bistoy. alln ago,es * total monhl retrement h,toy * cuffenpw_vioussegnmenn(locatioposio) * tc. in ""cumn asment * qultcto(acdni ttanet .ieos et. * ineervuegtai btoy imediate supervi.or snplaup-to.tae(as of Decmber 31 of p yviouuyesw recordsi*ll 0 Of1 01 01 I/ I/ 1/ Bemployees, in aaa ompletedrepoit umunauzing dtab indicng, bintr , ef 0 01 01 01 01 1/ i d *a cpndthdir by ed j ob tb s co by de1eAcn by to aecretsyoaf duceoaoofrepoviamlyzingdstabase d 0 01 0 f0 0/ 01 l/ straeie to raloa ehg ow ootact amugm _ O __ _ *~~ ~~~~~ m _A- -91- Annex 9 Page 8 of 10 Ta A94 B NEBEMII ;~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - - Anal Schod -Levellnfo tiW Dabue Report3 To be cou*plid Iby the UI Main &ScoolLd liaonm Dazah ML , of d4_ele for yew Dte aof SNm Of SCoayN uer File with the Rqotnt by Schow 9-Vzy Renst for 1r Secn? Ye__ No_. If no. lmnicgpll repoit feo w Munic y _ a cmplete prtit of t acoolvdabahe. repor the ame iafo mi" so hU beokw in manmay fogm by ecoo for td mumicipait. to UESP? Ye_ No_ Nuber of Num_be f Now Number of Mgetelat~eff MMerial/SBa MaLuh ijshtaff Dae of Avalae Anerdtralud Avble at lm of Schol Rawwm (matertals or Siami At oft o r Iing S8o_ Yer ScoolSe SaWq Texboob oueae Grd I Powuge Use k3 Pobstum Grade 4 Madwhic Grade 2 MathIMINIe GIade3 Matheurati (bade 4 ________________ NatauulSelmoce(a typ) Grade I Na.ual Sciece Grad 2 Natwra Scjumc Grade 3 Noumi Sciec Grad 4 Soc-I Sa (el vtypee) Grade I Soi SW Otud. de 2 Soc al Sudlee oGade 3 SociDudiin cae4 - gboos(ntezhok) ._ _ _ ._ __ i_ _ _ 41) 4D) Nuberofsdoff ecployedby scool Numberatstaffdirectly aigedi e l dng d iwnbrf dirccara receved tsuining thnYear |nber_ef dig diucor recive d t raining tm y=r _mbet ofclae;oomnedhr nrived aiLa tin yer: W etcl_tencbas tsIstgdzinltece lot gndt. techom 2a1 gtudc Std Ba e 44h gamic_ Nunborof usbl dwaroome _ _ _ __ _ _ _ _ echool haociide: oltd>e_ !ompetd: No:__..= -92- Anne 9 Page 9 of 10 Tabl A"- r T~~~~~~~~~WB-lub Anua Ptec Goods and S i Delvwy Report To be aemipgud by UEP Sumsuy WRqt for Eat. Seca? Ye_ No_. If no. _nIcial pW for which Munlcipal VVW.rme. biwasm (mataeda or dam N_anr of tAih/ff Lumber of MstdMl;S Mta u Dadvey Defviradwrrahed Dulg dua Schoa Repod Rpoz, ad Schood SchOlY Having R*evei R pod,at vReed Poa es G&de 2 PougueseGmade 3 P-AgtmmGmde4 Ms&9wdcs Grad. I Mahesdwati Owed. 2 MadIheaath GradeS3 Mathematics ab 24 Natual Scienc (all qpm) d I Natur S rde 2 Natura Sdmo. Grade 3 NaturaScience GrA* 4 Socia S*udle(an tyP") a".l I social Sud"es Grde 2 Social Sude GradeS Socia StuadiesGrade4________ mediog beo&a (not teXibob) _ _ _ 4) 54) .) Numberof saff employed by chool _erof saff dcly maeW ciassrowan ftin_ Nber of deora received trimg duo yer Numberof wshnwt diatooeeed triig Ib year. Numberof clio teabw teceived taining ths year lat graS tasdeao 2nd sikaul b macet Sri anletesduamn' 41hpgadIeftcslba __ __: Number of amsble olowooms * entvadoia School facilitdes lakhad-> ... ...._ complaed--> es__ No: -93- Annex 9 Page 10 of 10 Figure A9-1 (2) Sub~xuponent ~A Subcomporient D f~~~~~~~~~~~~~ib ' eXW .. ) Activity IAI Activity 1A2 Activity IBI Activity IB2 I~ ~~~~~At ,' tI 'Acivt.iZ (4) I Trainnq P_ TanUg I1ridgI_Ta.ng --~~~~~ -.A 1i 1 : .A I__ TA - - L..- Equpin cupt - B4ime~ I_ qptwnt. I__-Qther '.C' Other '1__ athe0 I__ber Anne 10 Page I of 1 BRAZIL THIRD NORTHEAST BASIC EDUCATION PRO SELECTED DOCUMES AVAILABLE IN PROJECT FILE (A) Reports and Documnlts Related to the Project A.1 Estudo de Gestao e Piano de Acio para Alagoas. KPMG, December 1992. A.2 Estudo de Gestdo e Piano de Ado para Bahia. Arthur Andetsen, December 1992. A.3 Estudo de Gestio e Piano de Acdo para Paraiba. KPMG, December 1992. A.4 Estudo de Gestlo e Plano de Ac5o para Piaui. Arthur Andersen, December 1992. A.5 Estudo de Gestao e Plano de Acao para Rio Grande do Norte. KPMG, December 1992. A.6 Book Provision in the Northeast Region. A report tbr the World BanklGovernment of Brazil. international Book Development Ltd., July 1992. A.7 Guidelines (Roteiro) fbr the Preparation of Stat' Operational Plans 1fr the Education Management Component. A.8 Guidelines fbr the Rules and Regulations fbr the Innovations Fund, Northeast Basic Education HI and HI projects. A.9 Aide-memoire. Appraisal Mission, April 12-27, 1993. A.10 Descriao Detathado do Componente Vvinamento dos Professores, Guiomar Namo de Mello and Rosa Neubauer da Silva, August 1992. A.11 Detailed Description of the -Time-Slice Component," Sergio Doompieri, August 1992. A. 12 Staff Appraisal Report fbr The Second Northeast Basic Education Project, April 20, 1993, Report No. 11298-BR, The World Bank. (B) Reports and Worldng Papers Related to the Su, lq&g B.I Educatonal Permbance of dte Poor: Lessonsfmm Rrl Nords BramzU. Ralph W. Harbison and Eric A. Hanushek, IBRD, 1992. IBRD 20804R1 VENEZUELA , r~~~ ?GUANASURINAME< k AA COLOMBIA RRI ,,,AAPA i t @. 0 ~~ROIMA ,;A~'APA, ---~~~~~~~~ -\/ - v54 AMAZONAS RIO GRANDE DO NORE PERU P'A U L |~~~~~~~~~~~~~~~~~~~~~~~A P) MRge 7SW te r ;.g 'TO 5v~~~~~~~~c~~~ - Atcv~~~~~~~~ 10~~~T A d4 TI N ~BcDc EG MATO BAHIA S;to| ,ROSSO / J OIAS Jcq \~~~s. 4XOI\