Document of The World Bank Report No: 20898-YEM PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 42.4 MILLION (US$56 MILLION EQUIVALENT) TO THE REPUBLIC OF YEMEN FOR A BASIC EDUCATION EXPANSION PROJECT September 8, 2000 Human Development Group Middle East and North Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective 01/21/2000) Currency UJnit = Yemeni Rial (YER) YER I = US$0.00617 US$1 = YER 162 FISCAL YEAR January I - December 31 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Lending LACI Loan Administration Change Initiative BEP Basic Education Project IDA International Development Association BEEP Basic Education Expansion Project ITTI In-Service Teacher Training Institute CAS Country Assistance Strategy MNSHD Human Development Group, Middle East and North Africa Region CAU Credit Administration Unit MOCSAR Ministry of Civil Service and Administration Reform CIT Central Implementation Team MOE Ministry of Education CPU Community Participation Unit MOF Ministry of Finance CSO Central Statistical Office MOPD Ministry of Planning and Development CU Coordination Unit NCB National Competitive Bidding DEO District Education Office NER Net Enrollment Rate ESAS Education Sector Assistance Strategy O&M Operations and Maintenance ESIP Education Sector Investment Project PER Public Expenditure Review EMIS Education Management Information System PMR Project Management Report EMP Environmental Management Plan PPF Project Preparation Facility FMIS Financial Management Information System PSMAC Public Sector Management Adjustment Credit FMPM Financial Management Procedures Manual PWP Public Works Project FOE Faculty of Education RFP Request for Proposal GER Gross Enrollment Rate SFD Social Fund for Development GIT Govemorate Implementation Team SGEOPS Sana'a Govemorate's Education Office Projects Sector GOY Government of Yemen Vice President: Jean-Louis Sarbib Country Manager/Director: Inder Sud Sector Manager/Director: Marlaine Lockheed/Jacques Baudouy Task Team Leader/Task Manager: Regina Bendokat REPUBLIC OF YEMEN BASIC EDUCATION EXPANSION PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 2 3. Sector issues to be addressed by the project and strategic choices 7 C. Project Description Summary 1. Project components 9 2. Key policy and institutional reforms supported by the project 9 3. Benefits and target population 10 4. Institutional and implementation arrangements 10 D. Project Rationale 1. Project alternatives considered and reasons for rejection 15 2. Major related projects financed by the Bank and other development agencies 18 3. Lessons leamed and reflected in proposed project design 18 4. Indications of borrower commitment and ownership 19 5. Value added of Bank support in this project 20 E. Summary Project Analysis 1. Economic 20 2. Financial 21 3. Technical 21 4. Institutional 21 5. Environmental 23 6. Social 24 7. Safeguard Policies 26 F. Sustainability and Risks 1. Sustainability 26 2. Critical risks 27 3. Possible controversial aspects 28 G. Main Conditions 1. Effectiveness Condition 28 2. Other 28 H. Readiness for Implementation 28 I. Compliancewith Bank Policies 29 Annexes Annex 1: Project Design Summary 30 Annex 2: Detailed Project Description 33 Annex 3: Estimated Project Costs 40 Annex 4: Economic Analysis 41 Annex 5: Financial Summary 50 Annex 6: Procurement and Disbursement Arrangements 51 Annex 7: Project Processing Schedule 62 Annex 8: Documents in the Project File 63 Annex 9: Statement of Loans and Credits 65 Annex 10: Country at a Glance 66 Annex 11: Letter of Basic Education Policies 68 MAP(S) REPUBLIC OF YEMEN BASIC EDUCATION EXPANSION PROJECT Project Appraisal Document Middle East and North Africa Region MNSHD Date: September 8, 2000 Team Leader: Regina Maria Bendokat Country Manager/Director: Inder K. Sud Sector Manager/Director: Marlaine Lockheed hacques F. Baudouy Project ID: P043255 Sector(s): EP - Primary Education Lending Instrument: Specific Investment Loan (SIL) Theme(s): Education; Gender And Development; Poverty Reduction; Public Sector Poverty Targeted Intervention: N Project Financing Data O Loan 1 Credit O Grant [ Guarantee Ol Other (Specify) For LoanslCredits/Others: Amount (US$m): SDR 42.4 million (US$56.0 million equivalent) Proposed Terms: Standard Credit Grace period (years): 10 Years to maturity: 40 Commitment fee: Standard Service charge: 0.75% Financing Plan: Source Local Foreign Total GOVERNMENT 4.80 0.00 4.80 IDA 29.50 26.50 56.00 LOCAL COMMUNITIES 1.80 0.00 1.80 Total: 36.10 26.50 62.60 Borrower: GOVERNMENT OF YEMEN Responsible agency: MINISTRY OF EDUCATION Address: Ministry of Education, Sana'a, Republic of Yemen Contact Person: H.E. Dr. Yahya Mohammed Al-Shuaibi, Minister of Education Tel: (967) 1- 274-548 Fax: (967) 1- 274-555 Email: Estimated disbursements ( Bank FYIUS$M): FY 2001 2002 2003 -- 2004 -2005- 2006 2007 Annual 0.5 5.4 9.3 12.9 15.4 12.0 0.5 Cumulative 0.5 5.9 15.2 28.1 43.5 55.5 56.0 Project implementation period: 2001-2006 Expected effectiveness date: 01/01/2001 Expected closing date: 06/30/2006 OCQ P R. , iCCO A: Project Development Objective 1. Project development objective: (see Annex 1) The project supports Yemen's education sector strategy which gives highest priority to providing all children with basic education of adequate quality as a direct way of addressing poverty. Among the 12 Priority IDA Countries with severe gender gaps in education, Yemen has the largest gap: a 40% disparity between girls' and boys' enrollment in basic education. Government strategy focuses on increasing access especially for girls in underserved rural areas. The project aims at addressing the most fundamental education needs., taking into account the limited implementation capacity in the country; it focuses on the first six years of basic education in the four Governorates where enrollments of girls are lowest and for which a school mapping database has been developed. The development objective of BEEP, therefore, is to increase the grade 1-6 enrollment of rural children, especially girls, in basic education of adequate quality. This project would lay the foundation of an education reform process on which future IDA operations would be built. 2. Key performance indicators: (see Annex 1) The key performance indicator will be the increase in the gross enrollment rate (GER) for girls in grades 1-6, in the four Governorates covered by the project. At the district level, it is expected that enrollments will increase by 30% overall with girls constituting the majority of the increase. Yemen does not have the capability yet to assess learning achievements; increased enrollments and project outputs (teachers trained, ava:ilability of teaching/learning materials) will be used as proxies for better quality of education. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: IDA/R99-80, IFC/R99-65 Date of latest CAS discussion: May 25, 1999 The CAS recognizes the crucial role of education in Yemen's development strategy and in reducing poverty. The project supports two of the four CAS objectives: (i) the creation of an early stream of social benefits in education which directly address poverty and strengthen the capacity to achieve a broader range of development objectives; and (ii) the creation of a modern public administration. The CAS highlights the education of girls as an important factor in Yemen in improving the status of women, reducing fertility, and increasing productivity in the long run. It also stresses the need for efficient resource use in the education sector. The project aims at implementing these CAS strategies through its focus on basic education, especially for girls in rural areas, and through a range of capacity-building measures that strengthen MOE's resource management. 2. Main sector issues and Government strategy: While Yemen's education system has expanded rapidly over the last 10 years, adult literacy is still at a low 44%, and the school-age population will continue to grow rapidly for the next 20 years. The main issues in the education sector are: (a) low participation rates and large disparities in access, with girls and rural areas at a disadvantage; (b) poor quality of education at all levels; and (c) a weak Government capacity which results in (d) inefficient resource use. The Government spends a high 8% of GDP on education and needs to accommodate any expansion of the system within this resource envelope to ensure financial sustainability. MOE is responsible for basic education (nine years) and secondary education (three years); higher education is overseen by a Council which leaves a lot of leeway for e ach institution. While the Government gives priority to -2- basic education in its strategy, there has been pressure to expand higher education as well, and the result has been a gradual erosion of the budget share going to basic education. The Government, with assistance from the Bank, is addressing these sectoral strategy and resource issues, in part through a study on higher education rationalization. The Government and the Bank have agreed on a sector strategy, reflected in the Yemen Education Sector Assistance Strategy Note (September 1999), which gives highest priority to basic education. Recent sector and project preparation work includes: a series of Public Education Expenditure Reviews (PERs) and the UNICEF/World Bank Study of Children and Women in Yemen (1999). Quantitative analysis in these studies is mostly based on: the Population Census of 1994; the Comprehensive Education Surveys of 1997/98 and 1998/99; and the Demographic and Health Survey of 1997. The description of sector issues and Government strategy below focuses on basic education, where the needs and the poverty impact are greatest. The Government's Letter of Basic Education Policies (Annex 11) summarizes the Government strategy and the actions that the Government has taken or is committed to take to implement its strategy. (a) Low and inequitable participation: Educational attainment in Yemen is among the lowest in the world: only 17% of the population age 10 and above have completed 6 years of basic education. Social indicators, such as high rates of fertility, maternal and child mortality, and child malnutrition, reflect this low level of education. Participation in basic education remains low, as only 50% of children age 6-14 are enrolled. The net enrollment rate (NER) is 80% in urban areas (75% for girls and 84% for boys), but only 48% in rural areas, where 70% of the population reside, with a large gender gap: 28% NER for girls and 67% for boys. Distance is a key obstacle for parents in rural areas to send their daughters to school. Only 6% of basic schools have toilets, another important factor in enrollment of girls. While MOE employs enough teachers to provide one for every 40 children, a deficit of nearly 80,000 classrooms keeps Yemen from achieving 100% _nrollment in basic education. Without reform, 3.7 million children ages 6-15 would lack a place in school in 2020. The ongoing school construction program is too small in scope and Government-funded construction has been too inefficient to provide a viable solution to the shortage of classrooms. Government strategy: The highest priority in the Government's education strategy is to increase enrollment in basic education. To advance this objective, the Government first aims at increasing the number of classrooms available in rural areas. To meet demand, it has introduced the following policy measures to increase the efficiency of school construction and to rationalize decisions on school locations: (a) using low-cost standardized designs for school construction; (b) involving communities in school construction as a way to reduce costs and retain students; (c) basing school location decisions on school mapping tools and on consultations with the communities; and (d) providing additional allowances for teachers in remote rural areas through the new Teacher Law of 1998. Second, MOE also has adopted measures that aim at increasing girls' enrollment: (a) placing small schools closer to girls' homes; (b) obtaining the community's commitment to enrolling girls as a prerequisite for school construction; (c) changing the physical design of schools to include sanitary facilities and boundary walls; (d) providing separate classrooms for girls in grades 7-9; (e) building girls' secondary schools to encourage parents to keep their daughters in basic education; and (f) providing more female teachers at the upper basic and secondary levels. To increase the number of female teachers in rural areas, the Government is hiring female secondary school graduates, reducing the entrance criteria for female secondary graduates to the Faculties of Education (FOE), and piloting a scholarship program for rural females to enroll in the FOEs. (b) Poor quality: Quality and outcomes of basic education remain poor, as evidenced by high dropout and repetition rates. Dropout rates are higher for girls, and they start dropping out at an earlier age. There is no nationwide mechanism for monitoring students' learning -3- achievements in grades 1-8, nor is there any means for controlling the quality of student assessments in these grades. While curriculum reform is in progress for most subjects in grades 1-6, as well as for some subjects in grades 7-12, the activities required for the implementation of the new curriculum (e.g., in-service teacher training, setting of learning standards, and teaching evaluation criteria) are not yet fully developed. Shortages and maldistribution of teachers anc! learning resources contribute to poor quality. The student:teacher ratio of 23:1 masks extreme shortages of teachers in rural areas (particularly females), and of specialists in mathematics, science, and languages nationwide. Half of the teachers have not completed secondary school; and teachers receive inadequate supervision and support. Furthermore, schools experience shortages of instructional materials; a recent Operations and Maintenance (O&M) study shows that only 30% of O&M requirements at the school level are being met. Social and informal assessments show that parents in disadvantaged areas have difficulties buying essential educational materials such as notebooks and pencils and paying the YER 150 fees to the schools. Without basic educational materials, quality of learning would be greatly reduced. Government strategy: The Government is starting to more strongly align curriculum - including textbooks and instructional materials, teacher training, and classroom instruction into a coherent system to improve the quality of basic education. The central element of the Government's strategy to improve quality for grades 1-6 is the introduction of new curricula that promote interactive learning with improved textbooks and teaching skills; implementation will start in September 2000. This requires substantial in-service teacher training. The Government has begun to provide an initial one-week orientation to teachers in August 2000 and is preparing for continued in-service training as well as improved teacher supervision. The Government also realizes that further investment in school facilities would not yield results without appropriate provision of furniture, equipment, and O&M. The Government is developing a strategy to improve O&M at the school level using the results of the Comprehensive Education Surveys amd the above-mentioned O&M study. (c) Weak governance: As in many sectors, capacity in the MOE is weak and there is little outreach to its clients. MOE administration is centralized, cumbersome and characterized by discretionary decision making and lack of capacity to enforce regulations. Severe shortcomings exist in personnel management. * MOE staffing. Since the early 1 990s, the civil service has been acting as the employer of first resort and a central component of the Government's social safety net. The education sector absorbed many of these hires, from among the rapidly-increasing number of graduates from universities, teacher training institutes and secondary schools, and now employs two-thirds of the civil servants. The result is an overstaffed MOE administration, as evidenced by a high non-teacher:teacher ratio (2:5) and poorly qualified teachers, as mentioned above. Implications for Government expenditure are a high share of the wage bill which is squeezing out O&M expenditure. There is also an issue of low wages and limited room for reflecting hardship postings in wage differentiation. While the number of teachers for basic education is adequate, their deployment is inefficient and lacks incentive and enforcement mechanisms. As a result, many remote areas have difficulties attracting and keeping teachers assigned to them. * Community participation. MOE's approach to providing basic education has not involved communities to any significant extent in decisions on location, construction, and management of schools. The result is schools without children, communities without schools because of budget limitations, and poorly run schools with absentee teachers and poor maintenance. MOE has not been adequately staffed to assist communities in -4- organizing their support for schools. In addition, school principals and teachers have not been trained to involve communities in school programs. Government strategy: The Government is aware that management capacity is crucial to improving the performance of the education sector and that strengthening capacity will be a long process. At the macro-level, several reform programs are underway to improve public administration; they include a long-term civil service reform and the recent adoption of the Decentralization Law. These reform efforts will also benefit the education sector and provide a framework for the reform measures which the Government is implementing in the education sector. These measures include: * MOE staffing. The Govemment has embarked on a long-term civil service reform program, described in the Strategic Framework for Civil Service Modernization which was approved by the Cabinet in 1998. This program will allow MOE to remove ghost workers from its payroll. MOE has initiated a study aimed at streamlining and decentralizing its functions. Based on the study, MOE intends to redefine its structure, unit functions, and job descriptions at the Central, Governorate, and District levels and to proceed with associated redeployment and skill development of its staff. The Teacher Law of 1998 increases the pay for teachers in rural areas; it also provides MOE with a basis for improving the effectiveness of the existing teaching corps by linking wage increases to deployment and performance. MOE is moving towards vacancy-based hiring and deployment, which would allow schools to get adequate staff on time. The Cabinet passed a decree on redeployment of teachers on June 27, 2000 and created a committee which consists of the Ministers of Education, Finance, and Civil Service and Administration Reform to propose the criteria and mechanism for teacher redeployment. A workshop was held in July 2000 to prepare a teacher redeployment plan. MOE is now finalizing the deployment plan and monitoring mechanism, starting with Sana'a Governorate as a pilot case in 2001. * Community participation. MOE has adopted an approach of involving communities more actively in education programs. Building on recent project experiences, MOE is establishing capacity at the Central and Governorate levels to increase community participation, especially for school construction and management. MOE is also acknowledging the important role of the district offices as a major link with communities, and plans to enhance capacity at the district level. MOE has already established a Community Participation Unit (CPU), consisting of four staff at the Central level, four in Sana'a Governorate, and two in each of the other Governorates; the CPU is gender- balanced to allow communication with both male and female members of communities. MOE will also identify staff at the district level to work directly with the communities. CPU staff are conceptualizing community participation approaches and will collaborate with other MOE departments in implementing these approaches in all MOE projects. Efforts have started in school construction programs where experience exists and will gradually extend to school management. All CPU staff attended a community participation workshop held by the World Bank's Sana'a Field Office in February 2000. The central level and Sana'a Governorate staff, in addition to staff from the Projects Sector of MOE, attended two additional workshops in May and June 2000. (d) Expenditure management: Weak expenditure management, in the aggregate, is reflected in the high share of GDP and budget expenditure allocated to education while Yemen's GER in basic education is lower than that of comparable countries. In addition to the large wage bill, shortcomings in the management of O&M, the investment program, and in subsector planning and information contribute to the inefficiencies in expenditure for basic education. -5- * O&M. MOE's budget for O&M (15% of recurrent education expenditure) includes large allocations for centrally-administered items, in particular textbooks and scholarships, while other services important for the quality of education, such as in-service training, teacher supervision, teaching and learn.ing materials, and school maintenance, are neglected. There are no clear policies for allocating the O&M budget to schools, and as a result, allocations are very low and inequitable. The YER150 school fee collected per child is transferred to budgets at the Governorate and National level. * Investment program. Poor location decisions, inefficient designs, a complex flow of funds, and a lack of supervision have resulted in high costs for school construction. In addition, poor coordination with other agencies, e.g., the Social Fund for Development (SFD) and Public Works Project (PWP), regarding school location, design, and provision of furniture and teachers has reduced the effectiveness of educational investments. * Programming, budgeting and information. Decision-makers at all levels within MOE are hampered by a lack of easy and timely access to needed data. Coordination among MOE departments is poor in providing information, with negative repercussions for programming, implementation, and monitoring of MOE activities. This seriously affects the formulation of the MOE budgets; furthermore, the accounting system is not computerized and does not produce reports on actual expenditures in a timely manner. Government strategy: The Government is aware that it needs to increase the efficiency of education expenditure if the expansion and quality improvement envisaged for the basic education subsector are to be financially sustainable. Improvements in overall budgeting and expenditure management are under preparation at the Ministry of Finance and should also have a positive effect on resource management in the education sector. Within the education sector, the Government aims to ensure an adequate share for basic education by addressing issues of growth in other subsectors, particularly higher education. Within basic education, several measures are being prepared or implemented which aim at strengthening expenditure programming based on needs. * O&M. MOE is preparing several measures to improve the structure and effectiveness of O&M expenditures: It is undertalking a study which aims at rationalizing the scholarship program. MOE is also preparing pilot programs to increase O&M allocations to schools and changing the allocation mechanism for community contribution fees in order to increase the share going directly to schools. * Investment program. In addition to increasing the effectiveness of school construction, MOE is trying to streamline the flow of funds and supervision, thereby allowing effective devolution of school construction programs to the Governorate level and reducing construction periods; MOE is also improving coordination among construction projects to improve school location decisions and coordination between the construction and operating departnents of MOE. The Government is also exploring whether double shifting can be increased to reduce the need for school construction. * Programming, budgeting and financial management. Over the last two years, MOE has made initial attempts at prioritizi.ng its school construction program. It has invested in extensive data gathering on schocls through school surveys and initiated school mapping. These tools will now be applied gradually to the preparation and prioritization of school construction programs. In order to increase the efficiency of its operations, MOE's strategy includes improving its educational and financial information; work is underway to introduce appropriate management information and financial management systems. -6- 3. Sector issues to be addressed by the project and strategic choices (a) Sector issues to be addressed by the project The project will support the Government's strategy for basic education and specifically address the low participation of rural girls in the first six years of basic education as the most important sector issue. The first six grades have been selected because: (a) most girls drop out during these grades; and (b) the Government's quality improvement program starts with curriculum reform for grades 1-6. The project will address three issues related to the low participation of rural girls in basic education: (i) the lack of classrooms in rural areas, which prevents girls from enrolling; (ii) the poor quality of resources available at schools, which contributes to low enrollment and high drop-out rates, especially among girls; and (iii) the weak capacity of edewation management, which hampers the institutional and financial sustainability of programs that are intended to improve access and quality. (b) Strategic choices (i) Lack of classrooms in rural areas Apply new policies for school construction. The project will support the implementation of the Government's new approach to school construction using tools which have been introduced recently to promote rational decision-making: school mapping, standardized low-cost design norms with features that are important in attracting girls, e.g., toilets and boundary walls, and community involvement. These policy measures, especially low cost- design norms and community participation in site selection, have been developed on the basis of experiences from MOE, SDF, PWP, and other projects supported by donors. These, however, represent significant changes in policies and also require behavioral changes of MOE staff at several levels [see (iii)]. If successful, they would allow MOE to significantly increase its school construction program over the medium term. The project will also assist MOE to develop new approaches to O&M at the school level, to sustain the investment made in classrooms. (ii) Poor quality of resources available at schools * Select inputs for impact. Since educational attainment and institutional capacity are low in Yemen, a strategic choice was to focus on inputs which affect quality of education and girls' retention. The project focuses on the inputs which are the weakest elements in the current system: in-service teacher training and strengthened supervision, provision of supplemental learning/teaching materials, and provision of furniture to new classrooms. (iii) Weak capacity of education management * Build capacity of MOE. The most important strategic choice for the project was to support MOE's capacity building aimed at improving basic education and to have the project implemented through MOE rather than a separate project management unit. MOE staff has been involved in project preparation, is taking ownership of the project, and is receiving training on project management. A second strategic choice on education management was to devolve the implementation authority to the Governorate level, while at the same time strengthening monitoring functions at the Central MOE level. -7- * Mobilize community support. Another strategic choice aiming at increasing implementation capacity and ownership of the program was to have greater community participation. This involves supporting MOE's new Community Participation Unit (CPU) at the Central and Governorate level. The project will support MOE's new policy of involving communities in school construction as a means to ensure commitment to educating their daughters and to reducing the cost of it. Decisions regarding the location of new schools will take into account a conmmunity's willingness to contribute towards the construction cost through e.g., donation of land and construction materials. The formation of fathers' or mothers' councils to participate in school oversight would be another element of involving the community in its school. Stronger community participation also has a positive impact on the demand for education. While experience in Yemen indicates that demand for basic education for girls has increased over the last few years, sustaining the commitment of keeping girls in schools will benefit from community involvement. Given that community participation is an important but relatively new function for MOE, MOE is considering options for external technical assistance. MOE is discussing with GTZ the possibility of providing technical assistance and training to MOE staff to gain sufficient experience. * Gradual expansion of regional coverage. Considering the limited capacity of MOE, the geographic focus of the project will be the four Governorates in which girls' enrollment in basic education is lowest and for which school mapping has been done. A school mapping database has been developed in eight Governorates as a tool for improving management capacity since late 1998. These pilot Governorates were originally six -- Sana'a, Al- Mahweet, Taiz, Lahej, Hadramout and Al-Mahrah -- selected from the north, south-central and eastern regions and includ;ing large and small, and administratively stronger and weaker Governorates. In 1999, the Government changed the boundaries of some Governorates and added two new Governorates (Amran and Al-Daleh). Thus, MOE has developed school maps for eight pilot Governorates and selected the four project Governorates. About 800,000 children age 6-15, i.e., nearly 20 percent of the basic school-age population of Yemen, reside in these four Governorates. Project implementation will commence in Sana'a Governorate and expand gradually to the other three Governorates. In each Governorate, the access and quality components of the project would be implemented in about four focus districts. The Government plans to gradually extend the program to all 20 Governorates. The CAS discussion at the Board in 1999 referred to the longer-term need of IDA involvement in the sector around a follow-up to this project. Provided that progress in implementing BEEP is satisfactory, IDA could consider supporting this expansion through a follow-up project which could follow as early as 2002. * Flexible implementation plan. rhe education strategy and associated policy reforms supported by the project are summarized in the Government's Letter of Basic Education Policies (Annex 11), which provides the basis for project design. The reforms are ambitious given the weak capacity of MOE and the uncertainties as to how quickly community participation would evolve. Therefore, the implementation plan will be flexible and evolve annually. The annual work-plans will translate the principles and policies articulated in the Govermment's Letter of Basic Education Policies into actions to be mutually agreed by the Government and IDA. The first year work-plan has been agreed and is summarized in Annex 2. -8- C: Project Description Summary 1. Project components (see Annex 2 for details) Indicative Bank- % of Component Sector Costs % of financing Bank- (US$M) Total (US$M) finaneing 1. Expansion of Access EP: Primary 43.60 69.6 37.70 67.3 1.1 School construction, extension, Education and rehabilitation 1.2 School maintenance program 2. Quality Improvement EP: Primary 11.20 17.9 10.70 .19.1 2.1 Improving teacher skills and Education deployment 2.2 Supplying furniture and teaching/learning materials to schools 3. Capacity Building EE: 7.80 12.5 7.60 13.6 3.1 Community participation Education Adjustment 3.2 Planning, monitoring and evaluation 3.3 Support for project management Total Project Costs 62.60 100.0 56.00 100.0 Total Financing Required 62.60 100.0 56.00 100.0 2. Key policy and institutional reforms supported by the project The project supports policy and institutional reforms that aim to expand access to quality education in the first six grades in a sustainable way. Key policy reforms, described in the Government's Letter of Basic Education Policies (Annex 11), are as follows: * The access component of BEEP will support the implementation of: (a) the new policy for school location, which is based on school mapping and community participation; (b) standard designs for school construction that are cost-effective and take into account girls' needs; and (c) policies for the efficient use of classrooms through the expansion of double shifts. * The quality component of BEEP will support: (a) new approaches to teaching and learning, which are being introduced with the revised curricula for grades 1-6; (b) the associated introduction of in-service teacher training; (c) improved deployment of teachers to rural areas and remuneration linked to performance; and (d) an increase of O&M expenditure at the school level and a modified funding mechanism (during the first project year, the study on O&M will be completed and its recommendations translated into actions which will be agreed on under the second-year action plan). Major institutional reforms are being implemented to ensure systemic improvements in both access to and the quality of basic education. The project will support: (a) increased community -9- participation in school location, construction, and management; (b) building up MOE's capacity to implement the access and quality program through stronger involvement in project preparation and implementation at the central and the Governorate level; (c) gradual decentralization of MOE programming, implementation, and nionitoring functions to the Governorate level; and (d) strengthening of programming and monitoring tools through the use of annual work plans for project implementation. The decentralization of MOE functions will be based on a study that is currently being completed and consistent with the Government's strategy of administrative and financial decentralization, for which legislation has been passed recently. 3. Benefits and target population The main project benefits are expected to be more equitable access and increased quality in the first six years of basic education. These will be achieved through: an increase in the number of classrooms; improved teaching skills and performance; additional learning materials; conimitted communities and parents; and effective management at all levels. The target population will be girls in the grade 1-6 age group in underserved rural areas in four Govemorates with low NERs; about 100,000 girls will gain access to ecducation of acceptable quality. The project is also expected to improve communication between the Government and beneficiaries (communities) in meeting their educational needs and increasing community involvement in basic education. In the long term, the project is expected to benefit the population at large through support of the Government's education reform progra:m. Improvements in sector management capacity and efficiency at the Central level of MOE and a gradually increasing number of Governorates will allow more extensive and equitable access to schools of better quality. It is well documented in research literature that broader educational access stimulates economic and social development by increasing labor market participation, raising household incomes, and improving productivity in the manufacturing and agricultural sectors. Female education, in particular, has major social benefits in reducing fertility rates, increasing awareness of basic health and nutritional issues, and improving the educational status of the next generation. 4. Institutional and implementation arrangements Implementation period The project will be implemented over a five-year period: from January 2001 to December 2005. Completion is estimated on December 31, 2005. The Credit will close on June 30, 2006. Project oversight The project is adopting a new implementation approach in which the MOE, at both its central and regional levels, is taking a more active role in policy formulation and implementation of the project, while a Credit Administration Unit (CAU) will have a limited role (unlike most IDA- funded projects in Yemen where a Prcject hnplementation Unit approach has mostly been followed). The project will operate under the overall guidance and oversight of a Steering Committee (SC) chaired by the Minister of Education; members of the SC are: (i) MOE's Vice Minister, Deputy Ministers (Sector of General Education, Sector of Curricula and Education Inspection, and Sector of Projects and Equipment), the Head of the Technical Office, and one representative from MOE's Community Participation Section; and (ii) one representative each from the Ministry of Planning and Development (MOPD), Ministry of Finance (MOF), and Ministry of Civil Service and Administration Reform (MOCSAR). The main task of the SC will be to set policy guidelines and direct BEEP to ensure the achievement of the project objectives. -10- The SC will approve the annual work plans and budgets for the project. The SC will meet quarterly to discuss the project progress reports and take appropriate action for any deviations from the work plans. In its functions, the SC will be assisted by the CAU (see below). The implementation framework is shown in Figure 1. Project implementation and coordination. The project will be implemented by the Ministry of Education under the leadership of the Minister of Education who will be responsible for overall orientation, and through the existing operational structure of the MOE. Each administrative entity in the MOE, at both the Central and Regional levels, will implement and monitor the activities that fall under its responsibilities: (a) the Sector of Projects and Equipment will be responsible for the access component; (b) the Sector of General Education will be responsible for teacher deployment; (c) the Sector of Curricula and Education Inspection will be responsible for the teacher training and supervision program; (d) the Community Participation Unit will assist all the sectors with getting conmmunities involved in their respective activities; and (e) the Technical Office will be responsible for planning, monitoring and evaluation. Agreement has been reached with MOE on TA requirements in these entities and on TORs for first-year TA activities. With TA from the PHRD grant, MOE has prepared an organization structure and functions which aim at devolving responsibilities to the Governorate and District levels. The project will help implement this devolution of responsibilities (detailed MOE proposal has been submitted to Cabinet). In summary, the responsibilities for project implementation will be shared as follows: * Central level: Orientation, strategy, policy-making, program design, planning, monitoring and evaluation. Inplementation and supervision of centralized project activities. - Governorate level: Implementation and supervision of decentralized project activities. - District level: Assist the Govemorate to follow up on implementation and supervision of activities taking place at the district level, and working closely with the communities. * Community level: MOE staff from the Governorate and District levels will work with the communities regarding school location, construction and oversight. Responsibilities for project implementation and related procedures are described in more detail in the agreed Operational Manual for BEEP. Central level At the Central level of the MOE, a Central Implementation Team (CIT), composed of Director Generals of the three 'MOE sectors, the Technical Office and a representative of the Community Participation Unit, are responsible for overall implementation of the project and report to the Minister of Education. The CIT will be assisted by the CAU, whose main responsibility will be to administer IDA credits. The CIT will work closely with the CAU in coordinating project activities at the Central and at the Governorate levels. -1 1- Figure 1: BEEP - Implementation Structure Central Level rin Minister Minister Key Tasks Committee (SC) . of * Provide orientation and policy Education 0 Secure counterpart funding SC Key Tasks * Approve annual workplans & budgets * Set policy guidelines 1 Central Implementation Team (CIT) *\ A CIT Key Tasks * Design programs Credit * Manage central components Administration CAU Key Tasks * Coordinate and guide Unit (CAU) * Keep project accounts Govemorate activities 0 Manage Special Account * Prepare annual workplans 0 Oversee Govemorate and follow-up on implementation procurement * Oversee EMP implementation * Manage central procurement 0 Prepare project Governorate Level progress reports/M&E (at each of the four project Govemorates) Goverorate Education Office GIT Key Tasks Impiementation Team * Implement project activities (GIT) * Manage decentralized procurement * Monitor project progress General Cucl rjcs&mmunit Plannin S ....... + .....~~~~~~~~~~~~~~~~~........_ .+ ......... ucaEqnuipent Particpton Saitc District Level 4, Cistrict Education DEO Key Tasks Office (DEO) * Supervise schools * Distribute textbooks & materials * Select trainees [ unities] .............. Schools * Work dosely with communities Notes: 1 Supervision ........ - -Support/coordination -12- The CAU will report to the Minister of Education and be housed within MOE. Its main functions will be to facilitate the project implementation of MOE by managing the administrative aspects of procurement of civil works and directly procuring goods and employing consultants, the utilization of the proceeds of the Credit (maintaining project accounts and records for audits and Bank's review) and to monitor project progress. It will be composed of the following staff, recruited on a competitive basis and financed with the proceeds of the Credit: a director; a financial officer assisted by an accountant; a procurement officer; a monitoring and evaluation officer; and an administrative assistant. Other support staff will be provided and financed by the MOE. Terms of reference for the key staff (i.e., director, financial officer, procurement officer, and planning monitoring/evaluation officer) have been agreed with MOE. The CAU Director has been hired in July 2000 and assumed his functions. Hiring of the remaining key staff is underway and should be completed in October 2000; support staff (e.g., secretary, clerk, driver) will be financed from MOE's budget. Governorate level Most of the project activities will be executed at the Govemorate level. Within each Govemorate Office, a Governorate Implementation Team (GIT) will be created, headed by the Director General for Education. He/she will be assisted by five staff drawn from the three sectors, the department of planning and statistics, and the community participation unit. MOE assured the Bank that competent staff will be assigned at the Governorate level. The GIT will be responsible for the implementation of activities at the Governorate level and will be assisted by the District Education Offices. The GIT will prepare work programs and related budgets for submission to the CIT. District level The District Education Offices (DEOs), headed by the District Education officer, will report to the GIT for project implementation purposes. The main tasks envisaged for the DEOs are: distribution of textbooks and materials; contribution to the selection of the teachers to be trained; and supporting community participation activities. The District level staff have little or no facilities and weak management capacity but they are members of the community. Therefore, the main role of the DEO in project implementation will be to support the involvement of the community in school construction and management. Training of District level staff in community participation is included under the project. Procurement arrangements Civil works represent the bulk of activities under the access component. It will mainly be implemented under the Govemorate education offices. The Projects Department at the Central level has developed four standard designs for three- and six-classroom schools and corresponding standard bills of quantities based on the IDA-approved standard bidding documents for National Competitive Bidding (NCB). This will facilitate the work of the Governorate Education Offices in adapting bidding documents for new schools. Since the component also includes rehabilitation and extensions of existing schools, consulting firms will be hired by the CAU to support MOE's Governorate offices to survey the facilities that require rehabilitation and/or extensions, develop the bidding documents (based on the standard bidding documents approved by IDA) for the ones selected for rehabilitation and/or extension and eventually supervise construction. Evaluation of bids in both cases (new construction and rehabilitation/extensions) will be done at the Governorate Education Offices. -13- Goods will mainly include school furniture and educational kits. The CAU will compile specifications from central departments in the MOE and will develop and administer all procurement of goods (with representation of the relevant department in the MOE in the evaluation committee). Consulting services will be procured in a manner similar to goods; i.e., the relevant MOE department will draft TORs and compile a shortlist; the CAU will produce the Request for Proposal (RFP) and administer the remaining process with MOE's involvement in evaluation. Accounting, financial reporting and auditing arrangements The CAU will be responsible for financial management of the project, including budgeting, accounting, management of the Special Account, handling of financial transactions and reporting. The CAU financial functions will be undertaken by a qualified financial officer and an accountant. The financial management system for the project is being developed, building on systems that exist in another education project unit and with staff that is familiar with IDA projects. The CAU will install a computerized accounting systern with PMR-based disbursement capabilities. The system will be based on generally accepted accounting principles and adequate internal control procedures. The MOE expects to have the PMR-based disbursement system operational by October 2001. Until then, disbursements from the IDA credit will be made using the traditional system. The CAU, with TA, is completing the development of the FM systems and the project manual in accordance with TORs and schedules agreed with IDA. The CAU will submit quarterly financial reports on project activities to the Government and to IDA, in addition to the project's annual financial statements. Quarterly project management reports (PMR) will be generated from the new system and will be submitted to IDA within 45 days after the close of each quarter; the Government aims at making the first PMR available by November 15, 2001. The project financial statements will be audited annually by independent, private auditors acceptable to IDA, and in accordance with TORs and terms and conditions acceptable to IDA, using appropriate auditing principles. Auditors for the project accounts of the project's first year of implementation will be appointed by Effectiveness. Annual audited financial statements and audited reports - including an opinion on the use of the Special Account and Statement of Expenditure procedure - will be submitted to IDA within six months after the end of the government fiscal year. The cost of the audit will be financed from the Credit. Monitoring and evaluation arrangements Monitoring and evaluation (M&E) for the BEEP will comprise four elements: * Implementation of the agreecl sectoral policies and actions. MOE will develop the annual education plan and budget within the framework of the agreed Letter of Basic Education Policies and, once completed, the five-year education plan. The Technical Office, in coordination with other departments, will monitor the implementation, especially in the project Governorates. * Key performance indicators for the project development objective and outputs for each component (see Annex 1). Monitoring of these indicators and reporting will be done on a semi-annual basis. The Govemnorate education offices will submit their data to the Technical Office and the M&E officer of the CAU. He/she will be responsible for guiding MOE in preparing data and for submitting reports to the Steering Committee and IDA. * Implementation progress, which will be assessed from reports on the status of the various activities in progress and expenditure/disbursement performance. These reports will indicate the status of each expenditure category (i.e., civil works, goods, -14- consultant services, and training) and source of finance (GOY or IDA). The Central and Govemorate MOE, assisted by the CAU, will be responsible for consolidating the data and submitting reports to the Steering Committee and IDA. * Two evaluation studies of the BEEP approach. The Technical Office, assisted by the M&E officer of the CAU, will arrange one study before the mid-term review (i.e., third year of the project) and the other in the fifth year of the project. The first study will analyse the initial impact on girls' enrollments in the first four focus districts in Sana'a Governorate. Implementation monitoring will be carried out by MOE with TA and through semi-annual supervisions of the Bank. The Bank's field office in Yemen will be heavily involved in project implementation, including one staff dedicated to supervision of the education portfolio almost full time. A mid-term review will be organized in the third year of the project. An implementation completion report to assess the overall performance of the project will be prepared by the Government and the Bank after the project is closed. D: Project Rationale 1. Project alternatives considered and reasons for rejection A number of alternative concepts and design options for the project were considered but rejected. The project concept and components that were chosen are the most appropriate for increasing education participation of girls in rural areas. Alternative project concepts * Adaptable Program Lending (APL). Since the project supports an agreed set of policy measures which will be implemented over a longer period of time, the (APL) approach was considered. This approach was rejected for the BEEP because of uncertainties concerning the implementation structure and capacity. Provided BEEP implementation is satisfactory, an APL approach starting with a follow-up project to BEEP could be considered. * Targeting nine years of basic education. Coverage of the full nine years of basic education was considered, as MOE has integrated primary and preparatory education into basic education by eliminating the standardized exarnination at the end of grade six. This alternative was rejected because it is difficult for remote rural schools to provide grades 7-9 of basic education which require specialized subject teachers and special school facilities. Urban secondary schools often provide these upper grades of basic education. Therefore, to focus the project on the most underserved, remote rural areas, the first six years of basic education were chosen as a priority. * Addressing only the access issue. Given the huge backlog of classrooms needed, it was considered to focus the project entirely on the construction of classrooms for rural children. This alternative was rejected because international experience shows that school buildings alone do not increase girls' enrollment and retention rates in a sustainable way. Improving the quality of education is needed as well; therefore, the project will provide such educational inputs as in-service teacher training, teaching and learning materials, school furniture, and building maintenance. -15- * Provision of female secondary schools as an incentive for girls' schooling. The original project proposal included a cluster concept which entailed the construction of girls' secondary schools and feeder basic schools. This was based on: (a) the experience in other countries that access to secondary schools is an incentive for parents to keep their daughters in basic education; and (b) the notion that more female graduates are needed for training as teachers. This alternative was rejected on the following three grounds: (i) recent information on pilot rural female secondary schools supported under the ongoing ESIP indicates that capacity at these schools exceeds the current supply of female graduates from basic rural schools; (ii) savings from lower construction costs for secondary schools under ESIP are available for building additional secondary schools for girls in rural areas; and (iii) there is increasing evidence from studies in Yemen that: male teachers are acceptable for teaching girls in the first four grades. Therefore, BEEP will focus on basic education, specifically grades 1-6, as the key bottleneck in providing education to girls. * Starting project implementation in all Governorates. The Government considered country- wide coverage for the project with a focus on underserved districts in each Governorate. This alternative was rejected due to the complexity of project implementation and limited MOE capacity. Therefore, project implementation will start in one Governorate, then expand to four Governorates where the need is greatest, preparatory work for school mapping has been completed, and where efforts can be concentrated so as to sufficiently strengthen capacity. This phased approach will allow a realistic pace for MOE capacity building and to gain implementation experience before reform measures are introduced on a wider scale. * Implementation of construction programs through PWP or SFD rather than the Project Sector of MOE. This alternative was rejected for the following reasons: First, the number of classrooms needed for basic education vastly exceeds the implementation capacity of the PWP and SFD. IDA, therefore, agreed to support the combined capacities of MOE, PWP and SFD to address the need for school construction. Second, the concern of ensuring efficient construction under BEEP has been acldressed by agreeing on norms and standard designs for classrooms that result in unit costs for BEEP close to those of the PWP and SFD. Third, and most importantly, it has become increasingly clear, from the experience of the PWP, SFD and KfW/GTZ school construction projects, that there is a need to link the hardware and software elements of the education system, i.e., the construction, teaching, and maintenance parts. MOE seems to be in the best position to ensure these linkages. For all these reasons, the school construction component of BEEP will be implemented by MOE Project Sector. Alternative design options for components Component 1. Expansion of access * Full decentralization of school design and siting. This idea was rejected due to its cost- ineffectiveness. The Governorate Elucation Offices are not equipped with the staff, management tools, and information necessary for a full process of school construction programs. Therefore, the project will support the gradual decentralization of implementation, with standard designs and criteria beinag developed at the Central level in consultation with stakeholders from all levels. * Building only new schools. An estimate that about 25,000 villages do not have a single school implies a large need for new rural schools. In addition, education surveys show that only 16% of the existing school buildings are in good condition. This suggests a large need for rehabilitating and extending existing schools in order to increase enrollments. Therefore, the project design will be flexible, allowing the construction of new schools or the rehabilitation/ extension of existing schools, according to needs in the catchment areas. -16- Component 2. Quality improvement * Providing demand-driven school grants. Providing a small project fund directly to schools could increase the incentive for schools and communities to undertake initiatives such as girls' attendance awards. However, this idea would require special implementation arrangements, such as the direct transfer of project funds from the central or regional Government to schools, as well as a mechanism for ensuring accountability. The idea was discarded because it did not mature in time to be included in the project design. * Promoting multi-grade training. In remote rural schools, teachers may teach students of different grades in one classroom. However, institutionalizing multi-grade teaching will require special teacher training in addition to the planned in-service teacher training for the new curriculum. Given that Yemen's education system has limited experience with multi- grade teaching, and most teachers are not well qualified and first need to be trained in basic teaching skills, the idea was not included in the teacher training program supported by the project. -17- 2. Major related projects financed by the Bank and other development agencies Latest Supervision (Form 590) Sector issue Project Ratings (Bank-financed projects only) Implementation Development Progress (IP) Objective (DO) Bank-financed education projects Increased access to basic education; and the Basic Education Project S S creation of a foundation for improving quality Improved student learning outcomes, with Education Sector Investment S S emphasis on science and mathematics in Project preparatory and secondary education; increased access to secondary education for girls through increased community participation; and establishment of labor market-oriented education programs Improved supply and quality of secondary Secondary Teacher Training S S school teachers Increased access to education services in rural Child Development Project n/a n/a areas; and strengthening of capacities at the subnational level Bank-financed related projects Expansion and improvement of school Social Fund for Development I HS S buildings and facilities for basic education Expansion of school buildings Public Works Project I & 11 S S Public expenditure rationalization for key Public Sector Management S S sectors including education Adjustment Credit Creation of a modem public administration that Civil Service Modernization n/a n/a provides public services in a transparent and Project efficient manner Other major development aeencies Netherlands Cofinancing of IDA Basic n/a n/a Iducation Project UNICEF Area-based Projects; n/a n/a Community School Projects Germany: KFW & GTZ School construction and/or n/a n/a rehabilitation; community flarticipation in Abyan and Ibb Islamic Development Bank School construction and n/a n/a _r.habilitation IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design The following lessons were drawn from international (especially IDA) experience: * The project design needs to be consistent with priorities in IDA's assistance strategy. This is one of the two main principles for improving IDA assistance to Yemen that the Operations Evaluation Department (OED) recommended in its review of IDA assistance to Yemen up to 1996. The proposed project design directly addresses the education priorities identified in the 1999 CAS and the Yemen Education Sector Assistance Strategy of 1999, i.e., improving access to and quality of basic education for girls. -18- * Adequate facilities are needed for increasing enrollment of girls. The poor condition of school facilities, including the lack of toilets and boundary walls, is a constraint for girls attendance. The mid-term review of the Yemen Basic Education Project also found that a lack of toilet facilities is one of the major constraints for girls to enroll in schools. * Community participation increases the efficiency and effectiveness of education programs. Yemen's experiences with UNICEF, SFD, and PWP programs show that construction costs can be reduced dramatically through community participation and contributions. In addition, UNICEF- and GTZ-assisted programs provide evidence that a good partnership between communities and local administration (e.g., the district education office) improves school management. Experience from Pakistan and other countries which promote girls' education also indicates that parents' involvement was important in girls' enrollment and improving the quality of education. * Project design should be kept simple while management capacity in the sector is being strengthened. Recent IDA projects supporting Yemen's education sector have been hampered in implementation and in meeting their development objectives by weak implementation capacity in the sector. The project uses as simple a design as possible while addressing the urgent priorities of improving access and quality and mainstreaming project management into MOE. The project design includes strengthening the capacity of MOE in these areas. * Involvement of key stakeholders in project preparation and implementation improves project design and increases support for education. The Public Expenditure Review (PER) found that a lack of coordination among MOE Departments, as well as between MOE and donor-funded project management units, reduced the efficiency of investment programs (e.g., schools did not receive furniture or teachers on time, or schools were built too close to another school). Therefore, the project design includes the strengthening of coordination and cooperation among various stakeholders in basic education. BEEP preparation missions have conducted wide ranging consultations, including meetings and workshops with regional education administrators, school staff, communities, students and parents, and other concerned Ministries. In addition, other donors have been consulted on project design through donor meetings, workshops, and individual interviews. 4. Indications of borrower commitment and ownership The Government's commitment to and ownership of the project is extensive, given the efforts made to: (a) initiate education policy and expenditure reforms as a framework for the project concept; and (b) develop the project components prior to appraisal. (a) The basis for the project concept was laid by the Government as it developed and initiated education policy and expenditure reforms in the following processes: * setting the institutional framework for universal access to basic education in the Education Law of 1992 and the Constitution; * identifying basic education as a priority for Government and for IDA assistance during the participatory development of the CAS of 1999 and the Education Sector Assistance Strategy of 1999. Both strategy papers were developed intensively with the Government. In particular, the education strategy paper was based on discussions and work with MOE -19- during project preparation and the education expenditure reviews. The draft strategy was also discussed at a donor meeting chaired by the Minister of Education; and * preparing the Letter of Basic E,lucation Policies which summarizes the goals and policies for basic education. (b) During project preparation, the Government, especially MOE, was intensively involved in: * preparing building blocks for the project with the support of the Japanese PHRD grant fund, a PPF, and ongoing IDA projects. The main activities undertaken are: a change in the MOE structure aimed at streamlining administration; school mapping of the targeted Governorates; introducing a comprehensive Education Management Information System (EMIS), based on education surveys; development of software for the Financial Management Information System (FMIS) and initial training of personnel; and piloting of community-based female secondary schools; * defining a project concept that would best achieve the proposed objective (increased girls' enrollment and retention in basic education) at several meetings and workshops that included Central and Governorate MOE staff; and * preparing the three project components. MOE managers provided comments and suggestions on project components and activities. MOE has constituted preparation teams for each of the project's three components; the teams prepared the project for appraisal, with support from consultancies Funded under the PPF and from ongoing projects. For the community participation component, MOE has staffed the newly-created CPU and assigned staff in the four pilot Governorates. 5. Value added of Bank support in this project: IDA's substantial experience in the education sector of Yemen and other countries has allowed it to: (a) tap international and local experience in designing and implementing programs to improve access to and the quality of basic education, particularly for girls and underserved groups; (b) help ensure that system restructuring and reforms draw on international best practices and experience and adapt these to local conditions; (c) draw on the experience of other sectors and agencies regarding communityJNGO-Government partnerships; (d) provide analytical support to help the Government assess the cost-effectiveness of measures; (e) assist with linkages to the macro-fiscal framework and sustainability of the expenditure program for basic education; and (f) strengthen coordination among donors in terms of their assistance for basic education. E: Summary Project Analysis: (detailed assessments are in the project file, see Annex 8) 1. Economic: (supported by Annex 4) -...]Cost-Benefit Analysis: NPV=US$ million; ERR= % [ x ] Cost Effectiveness Analysis [ x ] Other (specify) The economic soundness of the project design has been ensured in the following ways: (i) the project includes efficiency and education expenditure reform measures which the Government identified and initiated based on PERs conducted with IDA; overall, these measures would ensure financial sustainability of basic education expenditure; (ii) the two major subcomponents (classroom construction and in-service teacher training) have been designed on the basis of a -20- detailed cost-effectiveness analysis; and (iii) the capacity-building component has been designed on the basis of a detailed assessment of MOE's capacity to implement expenditure reform measures and cost-effective subcomponent designs in Sana'a Governorate. 2. Financial: (see Annex 5) NPV=US$ Million; FRR= % The financial soundness of the project has been confirmed through two analyses: (i) a fiscal impact assessment of the project, at the macro level and in Sana'a Governorate, which updates the work done for the PERs (1998 and 1999) in light of the ongoing formulation of the five-year education plan with new sector data and project cost estimates; this assessment confirms that MOE's incremental operating expenditures resulting from the project are sustainable; and (ii) an assessment of the financial management structure being prepared for the project, including work underway for the development of a project financial management manual and an integrated computerized accounting and project reporting system. 3. Technical The project was designed in cooperation with the relevant Government counterparts, donors (NL, Germany, UNICEF, Japan) and international and national consultants, and it draws on best international and national practices. Each project component has been designed to be cost- effective, feasible, flexible, and sustainable. During project preparation, the implementation capacity of Sana'a Governorate was assessed and taken into account in the design of the project implementation structure. While the project includes innovations in the decentralized manner implementation would be carried out, design of components is based on tested methods and practices. Therefore, no major technical challenges are anticipated. 4. Institutional 4.1 Executing agencies: MOE will be the executing agency for this project. The Ministry has experience with IDA-funded projects and is involved in the two ongoing education projects financed by IDA. 4.2 Project management: Project management arrangements under the project will adopt new approaches to emphasize MOE's governance of the project and capacity building and to be in line with its strategy in devolving implementation responsibilities to the regional levels. The project will be the first IDA- financed project in the country to embrace the recently reached agreement between the Government and IDA on principles governing project management units. Under these principles, the functions of these units and their staffing will be limited to assist the technical ministries in administering the project, with stronger emphasis on capacity building within the ministries. Accordingly, as a first step, MOE has already consolidated existing project management units, and has designated one unit to manage all on-going IDA-funded education projects and BEEP's Project Preparation Advance. This unit is the Coordination Unit (CU) of the Education Sector Investment Project. In parallel, the CU functions are also being gradually reduced to the agreed core functions which are primarily of an administrative nature and will be eventually integrated in the CAU, established under the project, according to the principles indicated above. The CAU will be staffed with seasoned personnel in the field of management, procurement, accounting/auditing and -21- statistics, with strong interpersonal and mentoring skills, so that it can contribute to building capacity in project management in MOE. The CAU Director has been hired in July 2000 and assumed his functions. Hiring of other key staff is underway. Capacity building, in particular at the Regional level, is a long process. There is a substantial risk that the implementation of the project will encounter delays. To mitigate the risk, the Capacity Building Component supports developing MOE's skills in implementing, monitoring and evaluating education projects. The component also supports strengthening general project management skills related to computer skills, budgeting and accounting, and the use of project management tools. In 1999, MOE staff participated in a training session on financial management and procurement which was organized by IDA, and it heightened the awareness of MOE staff regarding IDA's operating procedures. In addition, in March 2000, MNSHD, in collaboration with the World Bank Institute (WBI), held a six-day workshop on project management for project management units staff, which was attended by 10 managers from the MOE. 4.3 Procurement issues: Reflecting the project's approach of stronger MOE involvement in project implementation and of gradual decentralization, both the Central and Governorate levels of MOE are involved in procurement under the project, with a reduced role of the CAU compared to previous projects. A procurement assessment was conducted at the Central level of MOE and the Sana'a Governorate Education Office, i.e., the units implementing project activities in the first year, and concluded that the systems in place are adequate, with some weaknesses. To reduce related risks, the following measures are being taken: * standard designs for school construction have been developed and bidding documents, with bill of quantities which will be used by the Regional MOE offices; * technical assistance will be provided for the design, preparation of bidding documents and supervision of school rehabilitation and extension; and * procurement training is being provided to MOE staff at the Regional level. Since this procurement arrangement is new to education projects in Yemen, an assessment of the process will be carried out at the end of the first year of the project. This assessment will look at the overall performance of the arrangement (e.g., that prototypes and standard bidding documents are being used, that bid evaluation is carried out in an acceptable manner and in a reasonable time frame, that the quality of construction and supervision is acceptable). Based on this assessment, the project's procurement arrangement will either continue or alternative arrangements will be agreed on. 4.4 Financial management issues: Risks. The main risk is a weak control environment in which the philosophy of emphasizing a sound financial management system and dedicated work ethics is not widespread. This risk may compromise the economical and efficient use of the proceeds of the Credit. To mitigate this risk, several elements have been integrated in the financial management arrangements of the project: (i) centralization of management of IDA Credit proceeds in the CAU; (ii) staffing the CAU with personnel having adequate qualification and experience in the field of accounting/auditing; (iii) computerization of the project financial management system; and (iv) auditing of the system to ensure reliability of financial informati3n before declaring the system apt to adopt PMR- disbursements. Compliance with audit covenants. For the last two years, audits of IDA-financed projects in education have been carried out by independent auditors, acceptable to IDA. The reports have been submitted to IDA on time. -22- Flow of funds. The GOY will pass on the IDA funds to MOE, with the foreign exchange risk borne by GOY. Based on the project annual work programs and budgets, approved by the Steering Committee, GOY will allocate the counterpart funds for the project through budgetary allocations to MOE. IDA funds are available to finance eligible expenditures through the Special Account, opened at the Central Bank of Yemen, or directly through the Credit. 5. Enviromental assessment: Environmental Category [ ] A [X] B [ ] C 5.1. Summnarize the steps undertaken for environmental assessment and Environmental Management Plan (EMP) preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. The three main environmental issues relevant to the project are: * site selection for rural schools for grades 1-6 * water availability for hygienic purposes * operation and maintenance of schools, including sanitation facilities. Several steps were undertaken during project preparation to address these environmental issues. For site selection, environmental criteria were identified and incorporated into the project implementation plan (PIP), and included into the Environmental Management Plan (EMP). The impacts related to school construction are expected to be minimal, as the civil works are small in scope and consist of expansion at existing schools (usually 3-6 classrooms), or construction at new sites. Furthermore these schools will not house any laboratories or vocational facilities, and consequently potential impacts related to use of chemicals or paints are eliminated. To mitigate any potential impacts, an EMP has been prepared, and is part of the PIP for Sub-Component 1.1: School Construction, Extension and Rehabilitation. MOE engineers, trained to be familiar with environmental issues in Yemen, will be part of the technical teams that will conduct field visits and evaluations for the remaining sites to be identified; their TORs will cover environmental aspects. For the water availability issue, the project will include construction of toilet facilities for each school because this is crucial to retaining female students. However given the scarcity of water in Yemen, 'dry toilets' (without water for flushing) have been selected as the standard toilet design. Water availability for washing of hands will be discussed with communities during the site selection process for rural schools, and in locations where water supply for schools is not feasible, communities will make water available for hygiene purposes under Component 3: Conununity Participation. The project will also assist the GOY to explore alternatives and options for the provision of water for hygienic purposes in elementary schools. Adequate operation and maintenance of school facilities after initial construction is a continuing issue. Community involvement will be a measure for ensuring adequate maintenance activities at rural schools, including maintenance of 'dry toilets', as is also the case in GTZ supported education projects in Yemen. In the second year of this project, financing will be provided to schools for maintenance activities as part of sub-component 1.2: School Maintenance Program. -23- 5.2 What are the main features of the EMP and are they adequate? The EMP focuses on potential impacts related to (a) site selection; (b) standard design and specifications; and (c) construction. The site selection process includes criteria that would minimize some of the potential impact issues identified above. Other issues in connection with construction activities are treated with more detail in the EMP. These relate to safety, disposal of debris from construction sites, as well as sewage, drainage, and sanitation services at the sites. The EMP has been reviewed and found adequate by IDA. The EMP has also been reviewed with the Client at Negotiations. 5.3 For Category A and B projects, timeline and status of EA: A separate EMP has been prepared and submitted to IDA for disclosure at the Bank InfoShop in early June 2000. The EMP was also disclosed to the public in Yemen. 5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted. As described below in Sections 6.2 and 6.3, project preparation involved consultations with communities; and project implementatio:rl will continue to do so. 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? The MOE and its project management set-up will follow up on implementation of the EMP and the environmental issues outlined above. As a first step, a standard set of architectural drawings and specifications for small rural schools have been agreed with IDA. During construction, MOE will ensure that contractors follow instructions in the specifications and construction documents. In addition, IDA supervision missions will fDllow up with MOE on all the relevant issues. 6. Social 6.1. Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. The project design reflects the findings of several social assessments, including: social assessments prepared for the Child Development Project; a local NGO's review of a small-scale, multi-Governorate survey of girls, parents, and community members as part of project preparation; and UNICEF studies on girls' education. 'The main recommendations of these assessments include: (a) increasing community participation, with attention being paid to the capacity of communities; (b) improving subnational education administration; and (c) addressing demand-side issues for girls' education. The expected social development outcomes of the project are: (a) reduced gender gap in basic education through an increase in girls' enrollment; and (b) increased prospects of sustainable education programs through increased community participation. 6.2. Participatory Approach: How are key stakeholders participating in the project? The primary beneficiary group (rural children, particularly girls) has been represented by their parents and by community groups (e.g., local councils and school committees) during visits to villages by IDA preparation missions and by the Government field teams for selection of sites for -24- the first year's workplan. A local NGO, commissioned by MOE, also interviewed rural girls, their parents, and community members in targeted districts. The project preparation team paid special attention to ensure women in the communities are involved in consultations and in the preparation process. During the team's village visits, parents demonstrated cormnitment to educating their children and did not object to girls' education in grades 1-6. Mothers expressed willingness to bear the opportunity cost of their daughters going to school, and to collaborate with teachers and school managers in ensuring their daughters' attendance. Fathers were willing to commit to the construction of new schools through formation of councils and donation of land and building materials. School-age children, including young girls, also expressed a keen enthusiasm towards schooling. The project preparation team also consulted with school managers, teachers, local and regional administrators. These discussions yielded suggestions on how to improve schools and school management, and were incorporated in the design of the project. Other key stakeholders, including MOE staff of all levels, school principals, and teachers, have been actively involved in project preparation, participating in several consultation meetings and regional workshops. Central MOE staff have collaborated with the project preparation team in developing the project design. Representatives from the Ministry of Planning and Development participated in all regional workshops, formal and informal discussions, and wrap-up meetings during each preparation mission; and the highly-capable Central Statistical Office assisted MOE in developing the EMIS and the school mapping system as part of the project preparation activities. Governors and representatives of Ministry of Finance were also significant partners in the development of the project. 6.3. How does the project involve consultations or collaboration with NGOs or other civil society organizations? MOE has consulted with national and international organizations (PWP, SFD and GTZ) on their experiences with community participation in education projects. Furthermore, SFD provided training for MOE staff in community participation approaches and SFD consultants accompanied MOE teams in their field visits. Local NGOs, where available, will participate in mobilizing local communities to participate in site selection, school construction and maintenance. 6.4. What institutional arrangements have been provided to ensure the project achieves its social development outcomes? MOE established a Community Participation Unit (CPU) with staff both at the Central and Governorate levels. MOE will also strengthen its function for community participation activities at the District level. On the demand side, CPU staff are assisting the target communities in forming councils to promote a sense of ownership and ensure community participation and management of schools. 6.5. How will the project monitor performance in terms of social development outcomes? The project will monitor social development outcomes in two ways: (i) regular project indicator monitoring report (educational statistics), especially to observe changes in the gender gap in enrollment; and (ii) reports of field visits of CPU staff to project school sites before and after the construction. -25- 7. Safeguard Policies 7.1 Do any of the following safeguard policies apply to the project? Policy Applicability (Yes or No) X Environmental Assessment (OD 4.01) Natural Habitats (OP/BP/ aP 4.04) Forestry (OP 4.36) Pest Management (OP 4.09) Cultural Property (OPN 1 L.03) Indigenous Peoples (OD 4.20) Involuntary Resettlement ! OP 4.30) Safety of Dams (OP 4.37) Projects on International VWaterways (OP 7.50 Projects in Disputed Areas (OP 7.60) 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The proposed project will follow the World Bank guidelines of OP 4.01 on environmental assessment and will adhere to the requirements of the Government of Yemen for such projects, as outlined in the Environmental Protection Law, No. 26 enacted by the Parliament in 1995 and in the National Environmental Action Plan (NEAP) prepared by the Environmental Protection Council (EPC) in 1996. The project will construct schools on lancl provided by the local community, by the Government or donated irrevocably to the community, and during project preparation no other issues related to OD 4.30 Involuntary Resettlement were identified. Accordingly OD 4.30 is not applicable to the project. F: Sustainability and Risks 1. Sustainability: Institutional sustainability: Key elements for the institutional sustainability of the project are: (a) ownership of the program by MOE staff at all levels; (b) the building of implementation capacity within MOE; and (c) the participation of communities in the construction and management of their schools. The project addresses all these aspects. MOE staff have actively been involved in designing program elements and are committed to implementing them. The project will assist MOE in operationalizing the reform concepts and gradually strengthening the capacity at Central and Regional levels to effectively implement reforms and the agreed-upon annual work programs. In addition, the project will support building IMOE's capacity to mobilize communities and work with them. Taken together, these elements will contribute to the strengthening of the institutional setting for improving access to and the quality of education. Financial sustainability: Projections done in the context of the PERs for education demonstrate the need for additional funding for classroom construction, some of which this project will provide. The project represents about 16% of the annual investment program of MOE. As for recurrent expenditures for basic education, the project impact is expected to be marginal, amounting to a 0.1% increase in current education expenditure once the project is completed. The project does not require additional teachers; all the staffing needs could be met through redeploying existing MOE -26- staff, which the project will support. Budgetary requirements would increase to the extent that more teachers become eligible for rural allowances. O&M expenditure will create additional pressure on Government' s education budget. However, projections show that, if measures to reduce inefficiencies were taken, the recurrent expenditure implications of an expanded basic education system could be absorbed. Another key element of ensuring financial sustainability is the communities' support of school construction and maintenance activities. With continued strong implementation of these measures, the fiscal sustainability of the program appears feasible. 2. Critical Risks: (reflecting assumptions in the fourth column of Annex 1) Risk Risk Risk Minimization Measure Rating From Outputs to Objective Economic conditions may not allow the M Continuous policy dialogue in the Poverty Government to allocate adequate budget Reduction Strategy Paper (PRSP) and PER resources to the education sector. context will seek to ensure that basic education maintains its priority status. Central authorities (e.g., MOF) and S The project design will be closely linked to local political leaders (e.g., Governors) ongoing efforts to modernize public may not commit to the timely approval administration, especially budget and financial and implementation of MOE's annual management. education plan and budget. Government's Letter of Basic Education Policies provides commitment to resource allocation. Communities commitment to girls' S MOE has assigned community participation education may be low and communities staff to implement community mobilization may not keep girls in school. measures under the project. Girls' attendance will be closely monitored and assessed in a study before the mid-term review of the project. From Components to Outputs MOE implementation capacity at H Extensive capacity development measures at Governorate level may expand too MOE' s Sector of Projects, including slowly to implement access component strengthening of M & E capacity. as planned. -27- ~Risk RiskRikiniatnMesr The new management structure and H Extensive TA is being provided to help build approach adopted by MOE for BEEP up capacity. Stocktaking at the end of first- may prove too demanding. year implementation also will allow adjustments in structure and procedures, if needed. Trained technical staff may not remain M Prior to training, agreement will be reached in positions relevant to training. regarding placement of trained technical staff. Overall Risk Rating S Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) 3. Possible Controversial Aspects: The project activities which might include potentially controversial aspects are: (a) increasing the roles of female MOE staff and mothers in education programs; and (b) promoting strict redeployment and reducing supply-driven teacher hiring. Mechanisms to manage these potential issues, while increasing public understanding of the reform programs are included in the capacity- building component. G: Main Loan Conditions 1. Effectiveness Condition * The CAU will establish a finamcial management system acceptable to IDA, that can provide with reasonable assurance, accurate, and timely information on the sources and uses of funds for the project. * Independent auditors acceptable to IDA for the project accounts of the project's first year of implementation will be appointed. 2. Other * Implement an annual program in line with policies described in the Letter of Basic Education Policies. * Annual MOE budget allocations :reflect agreed O&M requirements. H: Readiness for Implementation [V] 1. (a) Standard designs have been submitted. (b) Standard bills of quanti.ties have been prepared based on the IDA-approved standard bidding documents for NCB. [t] 2. Site selection is underway; the first year's sites (including community endorsement) have been identified. -28- ['I] 3. (a) A Project Implementation Plan (PIP) has been prepared and agreed. (b) An operational manual has been prepared and agreed. I: Compliance with Bank Policies [X ] This project complies with all applicable Bank policies. [ ] The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. 4/F , 1 W -- Regina Bendokat VM, aiXeLockheed Jacq edouy Inder Sud Team Leader SeN Manager tor Director Country Director -29- Aniex 1: Project Design Summary REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Hierareby of Objectives Key Perfo00rmnelIndicators Monitoring & CrtcalmA phis _ _ _ T5$ :j::: d: :j000Ljf jS :0:00j003Li0000000 L 0a:i0ij; Evaluation L; Sector-related CAS Goal: Sector Indicators: Sectorl country (from Goal to Bank reports: Misfion) 1. Create an early stream Gross enrollment ratios (GERs) for MOE statistical The politicat of social benefits in girls and boys in ':asic education yearbook; enviromnent will education which directly National Census remain stable. address poverty and strengthen overall development capacity 2. Create a modem Improved structure of MOE Annual investment public administration expenditure programs budget book; public expenditure monitoring Project Development Outcome / Impact Indicators: Project reports: (from Objective to Objective: Goal) Increase the enrollments ...There will be spillover ofnmrease theienrollents 1. Increased GER for girls in grades 1-6 EMIS and MOE erets be sprover of rural children, in participating Governorates statistical effects to non-project especially girls, in grades yearbook districts in the 1-6 education of adequate participating quality in 4 Governorates 2. Increased enrollments of children in Evaluation study Governorates, resulting grades 1-6 by 30% in about 20 focus in 3rd and 5th year in increased overall districts of project. enrollment 3. Girls' share in increased enrollments Semi-annual is at least 60% in the focus districts project performance monitoring report Note: The ongoing school survey 199912000 will provide baseline data. 30 Herrchy of Objectives Key Performce Indicators Monitoring & Critical Assumptions Evaluation Output from each Output Indicators: Project reports: (from Outputs to Component: Objective) I. Increased number of 1.1.1 About 2,100 additional classrooms Governorate MOE Economic conditions will classrooms available for rural for grades 1-6 in rural under-served annual statistics allow the Government to children, especially girls, to catchment areas (about 360 new schools allocate adequate enroll in grades 1-6 in focus and 160 extended schools) MOE semi-annual resources to the education districts 1.1.2 About160ruralbasicschools follow-up report sector. rehabilitated in under-served catchment rehabilitate in under-served catchment Semi-annual project Central authonties (e.g., areas performance MOF) and local political 1.1.3 All schools built and rehabilitated indicators leaders (e.g., Governors) under the project have toilet facilities. monitoring report will commit to the timely 1.1.4 Agreed criteria and procedures for approval]and selection of location and standard design annual education planning for schools are used in focus districts andabudgting. and budgeting. 1.2 A mechanism for routine school maintenance is developed and operational Implementation capacity of MOE at Governorate level is adequate. Communities' commitment to girls' education will remain high. Teachers who are trained will remain and teach at their rural posts. 2. Improved quality of rural 2.1.1 80% of teachers in grades 1-6 in Same as output I basic schools, especially for have participated in annual refresher grades 1-6, in the four project training Governorates 2.1.2 80% of inspectors and headmasterslheadmistresses have participated in 3-week training programs 2.1.3 80% of schools in the 4 Govemorates receive regular supervision at least three times per year 2.1.4 Implementation of the teacher redeployment and hiring plan is satisfactory 2.2.1 All project classrooms (about 2,600) have agreed set of basic school fturniture 2.2.2 All students in schools constructed or rehabilitated (about 90,000) by the project are provided with agreed basic learning materials 31 3. Strengthened capacity of 3.1.1 Agreements with communities on Reviews of MOE and communities to their contribution; to construction have implementation efficiently and sustainably been implementecl capacity (to be implement basic education 3.1.2 50% of prject schools have active supported under programs in the four project unity participation in school component 3) Governorates management (e.g., routine school maintenance) Site visit reports 3.2 Satisfactory quality of annual education plan ancl follow-up reports, Annual education using EMISlFMIS/school mapping plans MOE semi- database annual follow-up 3.3 Satisfactory implementation of the reports agreed BEEP annual workplan Project progress reports H iUerarchy of Objectives Key Performance Indicators Mouitorii'g & Critcl AssUmptiOns Project Components / Sub- Inputs: (budget for each component) Project reports: (from Components to components: Outputs) 1. Expansion of access US$43.6 million Monthly MOE implementation 1.1 School construction, disbursement capacity at Govemorate extension, and rehabilitation summary level will be adequate for 1.2 School maintenance implementing Access program Quarterly Component. implementation monitoring report: The new management 1. Progress report structure and approach 2. Financing adapted by MOE for statement BEEP proves workable. 3. Procurement management report Trained technical staff Sem-&annual project will remain in positions supervision reporot relevant to their training. Annual audit reports Site visit reports Studies/reviews to be funded under the project 2. Quality improvement US$11.2 million 2.1 Improving teacher skills and deployment 2.2 Supplying fumiture and classroom kits to schools 3. Capacity building US$7.8 million 3.1 Community participation 3.2 Planning, monitoring, and evaluation 3.3 Support for project management 32 Annex 2: Detailed Project Description REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT The development objective of the project is to increase enrollments of rural children, especially girls, in the first six years of basic education of adequate quality. This objective is expected to be achieved by the following three outputs: (i) an increased number of classrooms available in remote rural areas so that children, especially girls, may enroll and complete the first six years of basic education; (ii) improved quality of the resources (including teachers) available at schools, which would contribute to enrollment and retention of students, especially girls, in basic education; and (iii) strengthened management capacity of education, including community participation, which would improve the efficiency and sustainability of programs that seek to improve access to and quality of basic education. To this end, the project supports the implementation of the policies summarized in the Government's Letter of Basic Education Policies and in the annual workplans. The project will be implemented in four Governorates in which the net enrollment ratio for girls is lowest and school mapping has been done; these are: Amran, Al-Daleh, Al-Mahweet, and Sana'a. This group includes both large and small Govemorates, and two of them were newly established in 1998. Nearly 20 percent of Yemen's population of basic school age reside in these Governorates. While the quality component will be initiated simultaneously in all four Governorates, the access component will be phased in more gradually, to ensure that implementation capacity for a decentralized approach is adequate. In the first year, school construction will commence in four districts of Sana'a Governorate, selected on the basis of a low basic enrollment rate for girls: Safan, Bilad Al-Roos, Nehm, and Al-Himah Al-Karijah. Based on the first-year experience, implementation will be extended gradually to the other three Governorates. By Component: Project Component 1 - US$43.6 million (of which US$37.7 million IDA) Expansion of Access The access component is expected to increase the number of classrooms available for grade 1-6 students, especially for girls, in about 20 focus districts (one third of the districts) of the four Governorates through: (i) construction of 3- or 6-classroom schools with toilets and boundary walls; (ii) addition of classrooms to existing schools (about 2,100 new classrooms); (iii) rehabilitation of serviceable schools (with about 480 classrooms); (iv) routine maintenance of schools; and (v) strengthened capacity of MOE for implementing access programs. These classrooms will be used for grades 1-6, with up to 40 students per class (of whom about 60 percent will be girls). The classrooms will also be used for double shifts, where possible. The allocation between types of construction and per district will be flexible and defined on a yearly basis. The access component will be implemented by applying the following policy reform measures: (a) efficient and demand-based selection of school sites, using the school mapping database established in 1999 and community participation; (b) cost-effective school designs, using standard designs adapted to local conditions; and (c) an efficient use of classrooms, expanding double-shift use of classrooms. 33 Subcomponent 1.1. School construction, extension, and rehabilitation This subcomponent will provide funds for construction, extension and rehabilitation of small schools for grades 1-6 in underserved rural areas. To meet the varying enrollment needs of the districts, the standard design has two capacity variants: one with classrooms sized for 30 students (BEEP's Model 1) and the second with classrooms sized for 40 students (BEEP's Model 2). MOE already set up access teams in Sana'a Governorate. The team consists of staff of the Sector of Project and the Community Participation Unit. Based on an agreed school mappin,g assessment methodology, the Governorate access team will identify priority catchment areas and the scope of work for the following year's access program in each focus district. The final selection of a catchment area, site, and type of work will be based on a field visit of the Governorate access team. It will undertake a physical needs assessment and a community assessment. Site selection procedures have been tested in one of the focus districts in Sana'a Governorate for the first year (Al Haimah Al Kharijiya District) and are being applied to the other three Districts. The procedures start with a preliminary selection using the school mapping database, including data available mainly from annual education surveys, the school mapping survey 1998/99, geographical information, and the population census 1994. This selection is then assessed by field visits of a team comprising an engineer and a community participation staff from tlhe Governorate Education Office, and a representative of the District Education Office. Site selection criteria, a standard composition of a field team, and its TORs have been agreed. This subcomponent will also provide funds for building management capacity of MOE for implementation of construction/rehabilitation programs at all levels of its administration. The scope of actions will be defined on a yearly basis acc ording to results of the MOE capacity assessment, for which component 3.3 will provide technical assistance. First year activities. This subcomponent will support in four Districts: (a) construction of 20 three- classroom and 20 six-classroom schools with toilets and boundary walls; (b) addition of 3-classrooms to 8 existing schools; and (c) rehabilitation of 8 serviceable schools. MOE has prepared an initial list of about 40 sites for the first project year for construction of new schools and a standardized bid package for each of the four design variants of new schools. Sana'a Governorate's Education Office Projects Sector (SGEOPS) will make minor adaptations to these packages to reflect characteristics of the selected sites for implementation in the first year. These adaptations would be reviewed by IDA. SGEOPS needs to coraplete the adaptations to the bid packages prior to BEEP effectiveness to permit the bidding procedures to be started soon thereafter. Detailed design and supervision of the school extension/rehabilitation would be carried out by independent consultant firms, based on agreed TORs. For capacity building, this subcomponent will also support: (a) technical assistance for: review and implementation of site selection criteria and guidelines, review of school design standards, supervision of access programs, and preparation of programs in the other three Govemorates; (b) field visits for final selection of sites for the second-year's programs; and (c) workshops for access programs at the Central level and in Sana' a Governorate. Subcomponent 1.2. School maintenance program This subcomponent will provide funds for the implementation of cost-effective maintenance and repair methods, which will, over time, reduce the need for costly rehabilitation. This subcomponent will also provide funds for building management capacity of MOE for implementation of routine school 34 maintenance programs at all levels of administration. The scope of actions will be defined on a yearly basis according to results of the MOE capacity assessment. First year activities. This subcomponent will be prepared during the first year of the project and will be based upon the O&M study (expected to be completed later this year); and implementation will begin in the second year. Project Component 2 - US$11.2 million (of which US$10.7 million IDA) Quality Improvement The quality component is expected to improve the learning environment of rural basic schools, especially for grades 1-6 in the four project Governorates through: (i) in-service training of teachers; (ii) training of inspectors and headmasters/headmistresses; (iii) supervision support to teachers; (iv) teacher deployment; and (v) adequate provision of furniture and educational materials for students/teachers. The inputs of the quality component will be implemented in the context of the following policy reforms: (a) introduction of the new curriculum, which aims to change the teaching methodology to a more interactive approach, starting September 2000 (new curriculum and textbook revision are funded under the ongoing Basic Education Project); (b) cost-effective in-service teacher training (the approach has been developed under the Basic Education Project); (c) continued implementation of the Teacher's Law (1998), which aims to improve the deployment of teachers to rural areas and link remuneration to performance; and (d) an increased operations budget for teacher training and school supervision. Subcomponent 2.1 Improving teacher skills and deployment This subcomponent will support in-service teacher training, inspector training, school supervision, and reforms in teacher deployment in the four project Governorates. These inputs are provided in a systematic and coordinated manner at the Governorate level in order to build synergy and enhance the impact of each of the interventions. In preparation for the introduction of the new curriculum, the MOE is providing a 5-day orientation training to all teachers for grades 1-6 starting in August 2000 with funding from the Basic Education Project. In addition, the Basic Education Project is also funding audio-visual equipment for the Central In-service Teacher Training Institute (ITTI), 20 Regional ITTIs and 200 district-level teacher training centers (TTC) to enhance in-service teacher training capacities. Most of the district-level TTCs are one or two rooms at schools in central locations of the districts. This subcomponent will build on these efforts of the Basic Education Project. (a) Annual refresher teacher training: There will be a 5-day annual refresher training for all grades 1- 6 teachers in the project Governorates prior to the start of each school year. This training is designed to refresh teachers' skills, primarily on pedagogical practices and alert them to updates/changes on textbooks or teacher's guides. The training programs will be delivered at district-level TTCs and will make use of the audio-visual equipment available at these centers. The project will support TA required to prepare and help deliver updated refresher training courses each year. (b) Two-three day annual teacher training: Teachers in the project Governorates will be offered a 2-3 day training module annually in teaching domains that they need improvement in as assessed by inspectors and headmasters and as requested by teachers themselves. These modules will be delivered at the district-level TTCs. Teacher Training Centers will schedule training. Some of the modules required for this training have already been developed by the MOE but others will be developed with TA support during the first half of 2001 and updated in subsequent years. 35 (c) Inspectors, headmasters/headmistresses training: All inspectors, headmasters, and deputy headmasters will be provided wit:h a 3-week training on supporting and mentoring teachers, assessing their performance and areas for improvement, and providing constructive feedback. The training, which will be held at the Regional ITTIs, will also include sub-modules in supervision and school management for inspectors and headmasters/headmistresses. The MOE has developed modules that could be used in this training program; TA will be provided during the first half of 2001 to consolidate and finalize the training modules and materials. The training will be conducted during the first summer, prior to the start of the refresher training of teachers. In addition, inspectors and headmasters/headmistresses will also take a follow-up annual training of up to 5 days at the Regional I`17Is. The inspectors and headmasters/headmistresses will also be encouraged to make use of the district-level TTC facilities on a continuous basis. (d) Supervision Support: Trained inspectors will support teachers in the project Governorates through feedback on their teaching performance in consultation with school headmasters/headmistresses. Inspectors will visit each school ir the project Governorate every alternate academic month (4 times per school year). The project will provide funds for transportation and related costs. Inspectors will be paid on the basis of their supervision reports and a stamp from the schools visited. The supervision reports will be filed in the Governorate offices and will be used for various administrative purposes, including performance-based remuneration and teacher deployment. TA will be provided for developing detailed mechanisms for supervision and linkages to the teacher training programs. Supervision support will be piloted in Sana'a Governorate starting in academic year 2001 and will be expanded to other Governorates only on the basis of positive results. The sub-component will be carefully evaluated during the Mid-term Review. (e) Teacher deployment and hiring plan: BEEP will support: (i) the formulation of a national teacher deployment and hiring plan on the basis of the agreed criteria; (ii) monitoring of the implementation in the project Governorates, especially in the focus Districts; and (iii) annual reviews of the experiences to update the criteria and implementation/monitoring mechanism. It will fund TA and workshops. The implementation and monitoring will also be supported by activities discussed above such as training inspectors and headmasters/headmistress and strengthening supervisions of schools. It will be also expected to utilize the MIS strengthened under subcomponent 3.2. Subcomponent 2.2. Supplying Furniture antd Educational Materials This subcomponent will support the provision of furniture and educational materials to schools that are newly built or rehabilitated under the project. (a) Furniture: All classrooms built or rThabilitated by the project will be furnished. The agreed standard requirements of school furniture will be supplied with the completion of civil works. (b) Educational materials: All students in schools builtlrehabilitated by the project will receive a basic kit of pencils, notebooks, erasers, and pencil sharpeners. These will be provided as incentives for parents to send their children to school. Since project schools will be built in highly disadvantaged areas, where parents are poor and have difficulty paying for basic school supplies for children (evidence from social assessments and numerous anecdotes suggests that parents have difficulty paying the YER 150 or US$1 annual fees to schools); these kits will provide essential incentives at aboult US$1.5 per child per year. Supervision of schools (supported under subcomponent 2.1.) will ensure that these kits reach the students. The sub- component will be phased in when school construction and furniture delivery are completed. 36 However, the provision of these kits will be phased out as MOE is able to facilitate resource allocations for educational supplies for highly disadvantaged areas. Community initiatives may also be able to raise funds for buying these essential learning materials for disadvantaged children. The sub-component will be carefully evaluated during the MTR and alternative methods of financing explored. First-year activities. BEEP will support: (a) annual refresher teacher training in the four project Governorates in the summer of 2001; (b) annual 2-3 day teacher training in Sana'a Govemorate; (c) training of all inspectors and headmasters in Sana'a Governorate; (d) supervision support in Sana'a Governorate; (e) monitoring and review of the teacher redeployment and hiring plan 2000/01 for Sana'a Governorate and preparation of the plan 2001/02 for the four project Governorates; and (f) provision of furniture and educational materials as civil works are completed and schools become operational in the initial four Districts of Sana'a Governorate. For capacity building, this sub-component will support TA for review and revision of training modules/programs, teacher deployment plan, and supervision mechanisms and linkages with teacher training programs. Project Component 3 - US$7.8 million (of which US$7.6 million IDA) The capacity building component is expected to strengthen the capacity of MOE to efficiently and sustainably implement the project and basic education reforms, especially in the four Governorates. It will strengthen the capacity of MOE for: (i) increasing community participation; (ii) preparing educational statistics and monitoring; (iii) implementing access programs; (iv) implementing quality programs; and (v) project management in terms of regulatory frameworks, business guidelines, staffing, skills, management information, and management equipment and facilities. Subcomponent 3.1. Community Participation This subcomponent will provide funds for building management capacity for community participation. A community participation unit (CPU) was established within MOE in December 1999 consisting of four staff (male and female) at the Central MOE, four in Sana'a Governorate, and two in each of the other Governorates. The role of the CPU is: (a) to ensure community participation in all activities of the MOE through collaboration with the various sectors and departments in MOE at the Central, Governorate and District levels; (b) to involve communities (men, women and children) in addressing their educational needs through commitment and contribution; and (c) to help communities in helping themselves by building capacity, encouraging team work and promoting a sense of ownership. The CPU will prepare annual work programs, in coordination with other concerned departments, for activities to increase community participation in education programs, including: (a) community assessment and mobilization for access programs, with the aim to increase community participation in: (i) decisions of the location and design of new classrooms or schools; (ii) construction supervision activities; (iii) contribution for school construction and rehabilitation; (b) community mobilization for operations and maintenance for schools, with the aim to increase community participation in school management and contributions for school routine maintenance, educational classroom kits, and innovative programs for girls education such as provision of transportation for girls; and (c) information dissemination to increase the knowledge and awareness of all stakeholders regarding the role of communities in basic education reforms and their experiences. The CPU staff will guide other concerned staff at all levels in the implementation of these activities. This subcomponent will provide: (a) technical assistance for: reviewing, developing and/or revising the implementation guidelines and action plans for community participation activities; and facilitating implementation of action plans; (b) 3-day Central and Governorate level workshops to train MOE staff on 37 visits to construction sites and schools; and (e) funds for community mobilization activities such as workshops, meetings and printing materials. First year activities. This subcomponent will target four Districts in Sana'a Govemorate for ensuring community participation in the implementation of school construction and rehabilitation. It will also target a few Districts in each of the four project Govemorates for mobilizing communities in selection of new sites for the second year's implementation. The activities will include visits to the identified sites to mobilize the target communities, assist them in organizing councils or committees, and ensure the implementation of communities' agreements. Training activities will include: a workshop for Central MOE staff for mainstreaming CPU activities within MOE; a workshop for CPU staff at the Central, Governorate and District levels; and a workshop for representatives from the communities (NGOs, councils, informal associations). Technical assistance for the design, implementation and evaluation of CPU activities will also be provided at the Central, Govemorate and District levels. Technical Assistance will also be provided for developing bylaws for the CPU. The CPU will also promote awareness about its functions within MOE, and the importance of community participation in MOE activities. This will include awareness campaigns, seminars and workshops for MOE staff. Subcomponent 3.2. Planning, monitoring., and evaluation This subcomponent will provide funds for improving the management capacity of MOE for: (a) implementing the routine annual school survey; (b) planning and follow-up on the implementation of policies and workplans through preparing and analyzing educational indicators; and (c) utilizing the management information and communication system for planning and decision-making. This subcomponent will support the overall improvement of education data collection and utilization and the intensive effort in the project Govemorates. (a) Routine annual school survey. MOE will implement annual school surveys. MOE will publish the results in annual education statistical yearbooks for dissemination and make the data available in the computerized MIS at the Central level and in the project Governorates. The project will support technical assistance for reviewing and proposing necessary changes with respect to the coverage, quality, implementation procedures, and costs. The project will also support implementation of the survey, including: workshop and other non-personnel costs for improving the capacity of Govemorate staff, District staff, school principals, and teachers for collecting and reporting accurate school data and the capacity of central and Governorate staff for organizing and reporting the results. The scope of IDA assistance will be reduced as MOE improves its capacity. (b) Annual education plan and follow-up. The MOE statistics and planning team will prepare annual education plan and follow-up reports of education indicators according to annually agreed standards with respect to the coverage and quality. The follow-up reports will be prepared twice per year, including: (a) annual assessment of education outcomes (e.g., number of enrollments); and (b) annual monitoring of achievements of access, quality, and capacity building programs (outputs) such as classrooms built and teachers trained. The Central MOE planning team will organize planning/follow-up workshops yearly at the Central level and in the project Govemorates. The project will also provide technical assistance to a central planning team for revising the monitoring guideline and designing workshops. (c) Management information system. MIOE will implement an MIS strategy by upgrading and updating computerized key databases and increasing the effective use of MIS for policy planning and monitoring, especially: (a) school mapping database in selecting school sites; (b) teacher/personnel database in preparing a teacher deployment and hiring plan; and (c) financial database in reporting actual MOE expenditures. The MIS strategy and action plan for the central 38 database in reporting actual MOE expenditures. The MIS strategy and action plan for the central MOE and Sana'a Govemorate have been developed and started implementation under the ongoing Education Sector Investment Project. Implementation under BEEP will begin in the second year. BEEP will support the implementation at the Central MOE and in project Governorates by provision of technical assistance for review and revision of the MIS strategy for education management (e.g., utilization of database, organizational responsibilities for updating and sharing data, staff skills, tool requirements), workshops at the Central and Governorate levels, and software/equipment. First year activities. (a) implementation of the Routine Annual School Survey 2000/01; (b) follow-up and evaluation of the annual plan 2001 for Sana'a Govemorate; and (c) preparation of the 2002 plan for the four project Governorates. The action plan of the management information flow strategy will be supported under the ESIP for the Central MOE and Sana'a Govemorate. Subcomponent 3.3. Project management and coordination This subcomponent aims to ensure that project activities are executed and managed in an efficient manner within the scope and objectives of the project. Resources and staff will be available to ensure a successful execution of BEEP, as follows: (i) technical assistance to strengthen project implementation capacity of MOE; (ii) technical assistance for semi-annual supervision; (iii) the establishment of a credit administration unit (CAU), to assist the MOE in developing annual work plans and coordinating day-to- day operation of BEEP; (iv) training MOE's staff in project management, including training in computer skills, accounting, and IDA's procurement and financial procedures; (v) necessary equipment for the CAU and the Govemorate offices involved in the implementation of BEEP; and (vi) operational costs, including annual audit cost. Table 1: Regional scope of interventions by subcomponent Focus district Activities Project Non-project Governorate National ______________________ schools schools level Construction/rehabilitation X School routine maintenance X X ,Trainig of teachers x Supervision of schools X !~~~~~~~~~~~~~~~~~~~~~~~~~~~~. ._._ ....__.__..__...-----....... ___._. _._._.___._._._._._._._._........ ....... ...... .. ___,.__._, _.._._._.Z._. ............ ... .._ .......... .... ._ ._._._._._._._._._._._._._._._._ __.__.. , Cssro kits X ,. _. . ...~~~~~~~~~~~......._. ._._.. ........ ... . ....... ... .. ............ .. .... .............. . .. .. . ........... .. .... .... ........ ..... ............ ............ ... Conmmunity participation field visits X ............. ....... ..... .. Community participation capacity building X X Education monitoring X X X 39 Annex 3: Estimated Project Costs REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Project Cost By Component Local IForegnTotal , ,~~~~~~~~~~~._. _ _....... __._-_ .... ------ ---- -- -- ---- ..........t_. _..Lo aF re g I T t l i ___ Proiect_Cot pBy_Compoent I Us$ million US$ million US$ million, 1. Expansion of Access 22.7 16.2 38.9 2. Quality Improvement . 6.5 _ 3.3 9.8 3. Capacity Building _ 3.0 4.0 7.0 Total Baseline Cost 32.2 23.5 55. 7 Physical Contingencies 1.4 1.2 2.6 Price Contingencies _2.5_ __1.8 4.3__ Total Project Costs i 36.1 26.5 62.6 Total Financing Required 36.1 26.5 62.6 40 Annex 4 REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Economic Analysis The economic soundness of the project design is ensured by: (i) basing the project concept on the County Assistance Strategy (CAS, 1999) and sector work, especially the Public Education Expenditure Review (PER, 1999) and the Education Sector Assistance Strategy (ESAS, 1999); (ii) selecting cost-effective options for the two major sub-components--classroom construction and in-service teacher training; (iii) including implementation of key education policy and expenditure reform measures aimed at fiscal sustainability; and (iv) strengthening institutional capacity. I. Project based on CAS and ESAS The objective of the project-increase the enrollments of rural children, especially girls, in grades 1-6-is consistent with one of the four CAS objectives, the creation of an early stream of social benefits which directly address poverty. The project also supports capacity building of MOE and communities to ensure sustainability of the project and efficiency of public expenditure, addressing another CAS objective-the creation of a modem public administration. The project also reflects strategic directions in the ESAS: (i) reorienting new lending programs toward the first stage of basic education; (ii) restructuring supervision for results, which is reflected in a strong linkage between ongoing IDA projects and the BEEP; and (iii) supporting policy reforms, which is reflected in the design of project components. Poverty reduction, the central goal of the CAS, is supported by the project through: targeting grades 1-6 of basic education, rural children, girls, and under-served Governorates and districts. The expected outcome of the project (increased enrollments in focus districts by 30%) would contribute to increasing the overall gross enrollment ratio in grades 1-6 of basic education. To increase the gross enrollment ratio from 70% in 1998/99 to 80% in 2004/05, enrollment would increase by nearly 20%, from 2.2 million in 1998/99 to 2.6 million in 2004/05. While four Governorates are currently close to the target, the remaining Governorates require special attention. The project has selected four Govemorates among those that have low enrollment ratios for girls. The project targets four Governorates including nearly 20% of school-aged population and 370,000 students in grades 1-6. The project will focus on one-third of the 55 districts of the four Govemorates (20 Districts) which provide the least access to basic education for girls. The selection of Districts requires strong coordination among all agencies involved in school construction. For example, the SFD targets under-served Districts nationwide and the Child Development Project also targets 30 Districts in 9 Governorates. District selection for BEEP will take into account interventions by other agencies as well as information from the school mapping exercise. The project would provide additional school places for nearly 80,000 rural children in the focus Districts by constructing 2,100 new classrooms and associated basic facilities. In addition, the project would add school places for 16,000 children by rehabilitating existing schools to improve the capacity of about 500 classrooms. The effectiveness coefficient of an additional school place to enrollment is assumed to be high (0.8) for this project since the project includes measures such as community participation and school quality improvement. Therefore, the project is expected to increase enrollments in 20 focus Districts by 30%. At least 60% of them are assumed to be girls. 41 The project is also expected to have spillover effects on enrollment increases and girls' participation in non-focus Districts of pilot Governorates through capacity building of central and Governorate MOE. With a modest estimate of 10%, enrollment increase in the remaining 35 Districts, enrollment in the pilot Governorates would increase by 20%, resulting in an increase of the enrollment ratio by 10%. II. Project supports cost-effective approaches For two major sub-components of the project-school construction and in-service teacher training - the designs are selected on the basis of cost-effectiveness analysis. Cost-effective construction of rural schools for girls in grades 1-6. To increase availability and use of school places in rural areas, the design of the component addresses two key elements: (a) Low cost of classroom. The cost per classroom ranges from US$5,000 to US$30,000 among projects being implemented in Yemen (see Table A.4. 1). The cost difference is mainly explained by school design, type of construction (i.e., construction of a new school or extension), and administration procedures. Classrooms built under the SFD represent the low-cost end of the range, applying low-cost design, community participation through land donations and other contributions, intensive supervision of project site, and a streamlined payment system. Classrooms built under the PWP and the UNICEF Area-Based Program also provide evidence that community participation is a critical element to lower the construction cost. (b) High probability of impact on girls' enrollments. The average size of classrooms for grades 1-6 is 29.25 sq.m in Yemen, which is expected to accommodate about 40 students. MOE and other concerned agencies/donors suggest that better coordination and information sharing regarding location decision would result in reducing duplication of efforts for expanding schools and increasing the impact of new classrooms on enrollment increases. Feedback from concerned officials indicates a high probability that at least 50% of students in the new classroom would be girls, provided the project has design features such as community participation and school activities targeted to girls. The construction program of the BEEP is being designed applying elements to increase its cost- effectiveness discussed above: (a) low-cost school design based on the agreed standard area requirements; (b) data-based school site identification; (c) community participation in confirnming appropriateness of site and school design for girls; (d) community contribution to school construction; (e) decentralized and streamlined supervision of the construction program; and (f) provision of furniture to new classrooms. The classroom cost per square meter is estimated at US$150. Cost-effective in-service teacher training for rural schools. The in-service teacher training component of BEEP builds on work being done under the ongoing BEP. BEP will finance the initial orientation of teachers required to introduce the new curricula for grades 1-6. BEEP will finance the continuing training for teachers. The objective of training programs selected for further cost-effectiveness analysis is to refresh knowledge and pedagogy of grades 1-6 teachers. The elements of training approaches which could affect the cost and scale of outputs are analyzed, by reviewing programs and training facilities available in Yemen and other countries' experiences (see Tables A4.2a and A4.2b). (a) Feasible recurrent and investment requirements. The difference in costs of in-service teacher training is mainly explained by costs of travel, accommodation, and international technical assistance. While a central-based training would have a large class size (lower instructor cost per trainee), the travel and accommodation costs would reduce the benefit from the economics of 42 Table A4.1: Data for cost-effective analysis of classroom construction for girls Probability Project name Average Average Average Average I .Supervision Community Specific activity to Specific activity to that at lat (major number of number of cost ($) per construction 2. final participation and ensure availability of ensure availability of 50% financier) classrooms students per classroom2 period approval for contribution furnliture and teachers and O&M for of students in and key classroom (per rn2) payment to equipnment for new new classrooms new facilities (ma) contractors classrooms classrooms are girls 3' ESIP 12 50 7000 15 month 1. MOE Land, list of girls to The project provides The project facilitates High (IDA) Lab, (38.95 m2) ($170-180) 2. MOF be students in new furniture and community Wall, schools, identified equipment participation program Sanitary local females to teach for identification of in new schools female teachers BEP 4 40 Low: 12 month 1. MOE Not specific The project provides Agreement with MOE High (IDA/NL) Wall (34.45 m2) 12,000 2. MOF furniture and on allocation of female High: equipment teachers to new 15,503 schools ($ 188) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ PWP 3 40 Low: 8-10 1. PMU Proposals for projects Coordinate with SFD No Low (IDA) (29.25 in2) 5,558 month 2. MOF Contributions of High: more than 5% of the Li 7,605 total costs _________________________($170) ________ _______________ SFD 3 40 Low: 7 1. Consultants Community The project provides The project facilitates Medium (IDA) (29.25 m2) 3,949 month as project proposals for sub- fumiture/ equipment formulation of O&M High: manager & projects for some schools committees for new 6,435 SFD Provision of land, (depend on proposals). schools ($163) 2. SFD Sign up other contribution before tender ABP N/A. Q 40 Low: 7 1. Consultant Facilitator for The program provides The program provides High (UNICEF) (30.4 in2) 3,333 month as project comrmunity furniture and school UNICEF school kits High; manager & mobilization is media for some for some schools 5,185 MOE located in program schools ($110-171) 2. UNICEF sites MOE- 3 40 Low: 24 1. Central Not specific Coordinate with Coordinate with Low Central (29.25 m2) 16,341 month MOE: concemed MOE concemed MOE (GOY) High: 2. MOF offices offices 25,982 _ _ _ _ _ _ _ _ _ _ MOE- 3 40 Low: 24 I.Govemorate Not specific Coordinate with Coordinate with Low Govemorate (29.25 m2) 14,109 month 2.MOF concerned MOE concerned MOE (GOY) High: offices offices 39,757 Sources: Unit cost per square neter for IDA projects come from CPPR December 1998, PAD of CDP, MOE, CU for ESIP. Notes: Costsarebasedonacmtalin 1997 orearly 1998. For MOE projects, exchange rates euf 135 YR per dollar was used. 1/ ESIP constructs ew schools. Other projects construct rew schools or expand existing schools. 2/ Costs perclassroomfor BEP, ESIP, and MOE are estimation using data fromtotalcosts ofconistration and the umber of elassooms. Tlerefore, the costs for projects including extensive facilities (e.g., wals, sanitary) ate overestimated. 3/ World Bank staff estinatin of probability that 5 of stkdents in new classrooms are girls, High (far naore than 50%), Medium (about 5%), Low (much less thn 0%) 4/It is difficult to decide average classrooms of the UNICEF program bcause the pgram rehabilitates, adds classrooms to existing schools, or builds new schools, New schools have averages 6 classrooms and one admsinistrative room Supervision and payment process is for lager contracts For small contracts, a consultant frrm will not be involved. scale. Regarding technology, there is not yet a strong intemational evidence that high technology- based training such as video-conferencing and intemet-based training would be cost-effective for in-service teacher training in low income countries such as Yemen which faces a scarcity of engineers and managers for operating the system, little familiarity of trainees with self-learning and distance learning, and necessity to import expensive equipment. (b) Adequate impact of a new curriculum on classroom teaching. International experiences show that implementing a new curriculum in grades 1-6 requires special attention to issues that an orientation training cannot provide by itself; it should be supported by regular supervision and opportunities for teachers to discuss problems with their peers and local teaching inspectors; and preparation of teachers needs to include head teachers and principals who would oversee the implementation of the new curriculum at schools. The in-service teacher training program of the BEEP is being designed and initiated as a part of the ongoing Basic Education Project through applying elements to increase cost-effectiveness discussed above: (a) adequate and fiscally feasible technology, such as television, video-cassette, and tape recorder, which could be used in existing training facilities and with their trainers; (b) a cascading approach, starting from training of trainers at the central institute, training of supervisors at the Govemorate training institutes, and training of teachers at the district-level centers (about one center for one or two Districts), these district-level centers would be part of schools or adniinistration buildings; (c) provision of follow- up activities such as supervision visits to schools at least three times per year; and (d) provision of training of supervisors and principals to assess impact of training on classroom teaching. The unit cost of 5-day training per teacher is estimated at US$35. Table A4.2. a. Comparison of donor-funded in-service teacher training in Yemen UNESCO UNICEF Project status A pilot project under planning Ongoing Location School in remote areas School Number of targets 10 schools/sites (to be funded by Schools in 3 Governorates (Ibb for 2 regions; Abyan for UNESCO) and 3 schools 4 regions; and Hodaidah for 5 regions) Trainees Teachers in nearby schools as Teachers, the need arises. No definite Headteachers, figures available Local supervisors Components and No definite plans available yet. (a) 2 weeks initial training for classrooms teachers duration of program (b) 2 weeks course for inspectors (c) Monthly meeting for teachers, with materials development sessions. (d) Bi-monthly newsletters. Cost US$1,500 per school Unit cost for a teacher attending initial training course in (estimated) Sana'a is US$142 (including travel costs) In addition, the project covers the following travel costs: (a rough estimate unit cost for a (a) 2 two weeks training for inspectors teacher: US$300, assuming that (b) Supervisory visits schools, twice monthly. a remote rural school would (c) Teachers travel to attend monthly meetings have 5 teachers on average. Total cost: US$1.6 million for three years Equipment A set of TV, VCR, radio and cassette players per school :r sub-center 44 Table A4.2.b. International comparison of a short-term teacher in-service training Yemen Belize Malaysia Estimate for a new program in Group-Trainees Capacity 20 trainees 20 trainees 20 trainees Duration of program 5 days/6 hours per day 5 daysl6 hours per day 5 days/6 hours per day Unit costs per trainee US$58.5 US$300 US$105 Location Regional center-based Regional based. Regional college-based Approach as a whole Cascading No information available. Cascading. program Cost estimates (a) Subsistence and local No provision for US$15 x 20 participants x 5 US$4 x 20 x 5 days = travel for participants participants' subsistence. days = 1,500 400 (b) Participants' travel US$6 x 20 x 5 days=600 (included in item (a)) US$15 x 20 participants = 300 (accommodation provided) (c) Travel and per diem US$20 x 2 x 5 days = 200 US$100 x 2 x 5 days Not applicable. for local technical 1,200 assistance (d) Professional fees for No provision. US$300.00 x 2 x 5 days = US$30 (per hour) x 6 local technical assistance 3,000 hours x 5 days = 900 (e) Internal travel for local US$16 x 20 = 320 US$150 x 2 = 300 Not applicable. technical assistance. (f) Stationery and US$10 x 5 days = 50 No information available US$5 x 20 x 5 days = supplies 500 (g) Utilities and secretarial assistance Total US$1,170 US$6,000 US$2,100 Source: Aziz, Arfah. (January 2000) "Comprehensive Report In-service Teacher Training Options for Yemen., Notes: 1. The estimate for Yemen is based on a proposed training for 23,000 teachers for orientation to the new curriculum in 2000. The total estimate for the course in Yemen is lower as it does not provide for daily subsistence for participants, as well there is no provision for professional fees for the trainers. 2. In the Malaysian case, there is provision for professional fees for the trainers if the course is conducted during the period of vacation. 45 III. Project supports fiscal sustainability Macroeconomic framework and funding availability for basic and secondary education. To assess the fiscal viability of public expenditures for basic and secondary education (MOE) over the next five years, the macroeconomic framework projected by the Government for the Interim Poverty Reduction Strategy Paper (IPRSP) was used. GDP is projected to grow at 3-5% per year in real terms. Public recurrent expenditures are projected to remain constant at its 2000 level in real terms while its share of GDP would decrease from 30.8% in 2000 to 23.7% in 2005. Development (investment) expenditures are projected to increase their share of GDP from 5.7% in 2000 to 6.8% in 2005. The Government has also projected to increase expenditures for the social sectors (education, health, and social safety net) from 9.3% of GDP in 1999 to 11.1% in 2005. Official projections of public expenditures for basic and secondary education (or the Ministry of Education) are not yet available. Thus, this analysis assumes that MOE's central government current expenditures will stay at its 2000 level in real terms given that (i) the government has completed substantial increases of salaries and wages incurred by the implementation of the Teacher Law (i.e., introducing new allowances such as incentive and special allowances at 100% of base salary) during 1998-2000 and (ii) it aims to rationalize the overall staffing and increase recurrent budgets for adequate operations and maintenance. For development expenditures, this analysis assumes that the MOE's share of central government development expenditures would increase nearly to the level in 1998 (13%). This assumption reflects the facts that (i) increasing access to basic education is the highest priority in the Government's education strategy; (ii) the MOE has not started any major new project in 1999-2000 but concentrated on completing all ongoing projects; and (iii) the MOE plans to start new projects in 2001. Expenditure requirements for basic and secondary education and fiscal impact of the BEEP. The MOE is currently formulating the five-year education plan (2001-2005) as input to the second five-year plan. The formulation of the plan is an ongoing and dynamic process which involves stakeholders such as MOE staff of all levels, Ministries of Planning and Finance, and donors. The five-year education plan will reflect (i) the General Framework for the Second Five Year Plan which addresses the priority of the social sectors and (ii) the Letter of Basic Education Policies agreed between the Government and IDA which the BEEP supports. The Letter of Basic Education Policies includes policy and expenditure reform measures, chosen from those on which the Government and IDA agreed during the PER for Yemen to expand basic education within a sustainable rnedium-term macroeconomic framework. They cover: (a) Overall budget: maintaining the priority of basic education as measured by its share in the Government budget and GDP. The project contributes directly to this priority. (b) Personnel: freezing overall MOE hiring with exemptions only to rectify identified shortages, e.g., female teachers and some secondary school subjects; rationalizing overall MOE staffing through teacher deployment and reduction of administrators; and improving linkage between salary increases and teacher performance. lThe project will support these measures gradually, starting with monitoring teacher deployment within each pilot Govemorate. (c) Operations and maintenance (O&M): increasing budget allocations for O&M, channeling these to schools, and increasing accountability for the use of O&M funds; improving the allocation of O&M expenditure among Governorates; and allowing schools to retain the community participation funds they collect. The project will support these measures, starting with piloting adequate of O&M funding available at schools in focus Districts, based on the O&M study being completed in 2000. 46 (d) Investment: prioritizing allocation to ongoing projects for completion in the planned project period; extending the double-shift system to reduce the need for additional classrooms; adopting lower-cost construction design standards; improving school siting through community participation; reducing costs with community contributions; and, in the medium term, through school mapping; improve construction efficiency through improved flow of funds, shorter construction periods, and better supervision. The project will support these measures, starting with construction projects in focus Districts and extending the experiences, especially in pilot Govemorates, through the capacity building component. A reform scenario is used for updating projections of expenditure requirements for basic and secondary education to demonstrate the fiscal sustainability of the project and to assist MOE's ongoing work for the formulation of the five-year plan. The projections will also provide benchmarks for monitoring implementation of reform measures in the four project Governorates (a set of monitoring indicators is included in the PIP). The reform scenario aims to increase the GER for basic education from 61% in 1999 to 71% in 2005 through implementing the expenditure and reform measures discussed above country wide. Table A4.3 shows key indicators from projections of a macroeconomic framework, funding availability and expenditure requirements for basic and secondary education. The reform scenario would have no recurrent financing gap. The small investment financing gap could be reduced by financing resources which are not included in the projection of financial availability such as PWP. For recurrent expenditure requirements, a status quo scenario is also used to assess the impact of personnel policies. The status quo scenario assumes that the implementation of personnel policies would not be satisfactory in some non-project Govemorates and thus the total number of MOE permanent staff (administrators and teachers) would remain at the same level as 2000. The financing gap (about YER 8 billion) suggests a high sensitivity of assumptions used for the personnel policies and a high attention and commitment required for following up and monitoring the implementation of the policies. The total costs of the BEEP are US$62.6 million (YER 10,105 million) over a five-year implementation period. The project investment costs will represent about 16% of the investment expenditures for basic and secondary education. The project recurrent costs will be 14% of the project costs (US$9.0 million) but a small percentage of the projected total MOE recurrent expenditures (less than 1%). The project will create incremental recurrent costs during its implementation and after project completion. The project should contribute to more efficient allocation and use of funding through (i) implementing policy and expenditure reform measures discussed above; (ii) monitoring/following up the implementations of these measures in the project Governorates; and (iii) building capacity of central and pilot Governorates for the implementation and monitoring. Thus, the incremental recurrent costs of the project are estimated fiscally affordable. 47 Table A4.3. Key Indicators for Fiscal Inmact Assessment Est. Est. Projection 4/ M1999 2000 2001 2002 2003 2004 2005 2001-2005 Macroeconomic Framework Real GDP at market prices (% change) 3.8 3.9 3.1 3.5 4.1 4.8 5.4 n/a Total fiscal expenditures (% of GDP) 32.1 36.5 34.6 32.4 31.6 30.9 30.5 n/a Current expenditure (%of GDP) 26.5 30.8 28.4 26.1 25.1 24.3 23.7 n/a Development expenditure (% of GDP) 5.6 5.7 6.2 6.3 6.5 6.6 6.8 n/a Total budget social expenditures (% of GDP) 1/ 9.3 10.1 10.6 10.7 11.0 11.0 11.1 n/a MOE Funding Availability 2/ Recurrent (YER ml, constant 1999) 51,396 65,490 65,490 65,490 65,490 65,490 65,490 327,452 Investment (YER ml, constant 1999) 5,774 6,568 9,183 9,657 10,372 11,038 11,986 52,236 Key Indicators for Basic Education Reforms GER-basic education (%) 62 61 61 62 65 68 71- n/a GER-secondary education (%) 29 30 30 31 31 31 32 n/a Girls share-basic education (%) 33 35 37 38 38 39 39 n/a MOE Expenditure Requirements (YER ml, constant 1999) Reform scenaio Recurrent, of which salary and wages 49,350 47,596 45,802 45,203 45,689 233,640 Recurrent, of which operations and maintenance 8,270 8,858 9,905 11,149 12,467 50,649 Recurrent, of which transfer and scholarship 5,586 5,481 5,411 5,376 5,428 27,282 Total Recurrent 63,206 61,935 61,118 61,728 63,584 311,571 Investment of which construction/rehabilitation -4,231 6,838 10,207 10,654 10,500 42,430 Investment of which others 1,610 1,950 2,359 2,336 2,225 10,479 Total Investment 5,840 8,789 12,565 12,990 12,725 52,909 Status quo scenariofor staffing Recurrent, of which salary and wages 53,016 52,988 52,327 52,311 51,939 262,581 Total Recurrent 67,180 67,745 68,135 69,367 70,312 342,739 Reform scenario (% of recurrent distribution) Recurrent, of which salary and wages 78% 77% 75% 73% 72% Recurrent, of which operations and maintenance 13% 14% 16% 18% 20% Recurrent, of which transfer and scholarship 9% 9% 9% 9% 9% Total Recurrent 100% 100% 100% 100% 100% MOE Finaning Gap (YR ml) 3/ Reform scenario Recurrent -2,284 -3,556 -4,373 -3,762 -1,906 -15,881 Investment -3,342 -869 2,193 1,952 739 673 Status quo scenario for staffing Recurrent 1,689 2,254 2,645 3,877 4,822 15,287 BEEP Project Costs (YER ml) Recurrent n'a n/a 57 203 295 401 509 1,465 Investment n,'a n/a 882 1,462 2,060 2,395 1,885 8,685 BEEP Project Costs (% of MOE Expenditure Requirements) Recurrent % of MOE recurrent n/a n/a 0.09% 0.33% 0.48% 0.65% 0.80% 0.47% Recurrent % of MOE non-salary recurrent 0.41% 1.42% 1.92% 2.43% 2.85% 1.88% Investment n/a n/a 15.1% 16.6% 16.4% 18.4% 14.8% 16.4% Sources: Government of Yemen Budget Book 2000. IPRSP July 2000. IMF and World Bank staff estimates. Notes: 1/ Social expenditures include all spending on health, education, and social safety net. 2/ Projection based on the macroeconomic framework and the assumptions. 3 /MOE expenditure requirements minus MOE funding availability 4/ While a fiscal year starts in January, a school year starts in September. This analysis assumes 1999/00 as 2000. 48 IV. Project design and preparation aim to strengthen institutional capacity The main risk associated with the IDA education projects in Yemen relates to potential project implementation delays caused by: changes in political and administrative leaderships, lack of incentives among MOE staff related to low ownership of the project, cumbersome bureaucratic procedures among ministries, weak institutional and organizational capacity at all levels of education management, and complicated project design. This set of risks has been reduced by: (a) involving MOE and other stakeholders in project preparation; (b) giving high priority to capacity building in the project design; (c) making the project concept simple; and (d) keeping the implementation plan flexible. (a) Involving MOE and other stakeholders in project preparation. The project concept is built on ongoing efforts of MOE and other concerned Government agencies/donors. In particular, MOE staff have actively been involved in designing program elements and committed to preparation activities. (b) Giving high priority to capacity building in the project design. Project preparation has helped MOE clarify the organizational framework, establish a policy framework for the next five years, and establish basic requirements for a modernized education and financial management information system at Central MOE and pilot Governorates. The capacity building component of the project will further help MOE utilize the core capacity for annual education planning, budgeting, and monitoring. The implementation of the project will start in Sana'a Govermorate where a capacity assessment and development plan for project implementation has been prepared. The project implementation plan is also being developed, specifying roles and functions in detail and drawing key stakeholders into the implementation process. A Credit Administration Unit is being established, limited to core functions. (c) Making the project concept simple. To maximize ownership and participation at all levels, the objective of the project is kept simple: it is accepted by all stakeholders as the highest sector priority. Considering the limited current capacity of MOE, the initial geographic target of the project will be under-served Districts in a few Governorates with low enrollments of girls in basic education. The project will start in one Governorate and expand to three more Governorates where the need is greatest and where efforts can be concentrated so as to sufficiently strengthen capacity. This phased approach will allow for gaining implementation experience before reform measures are introduced on a wider scale, and will allow a realistic pace for building MOE capacity. (d) Keeping the implementation plan flexible. The reforms which the project supports (summarized in the Government's Letter of Basic Education Policies) are ambitious given the capacity of MOE and communities. Therefore, the implementation plan of the project needs to take into consideration the stage of capacity development, which could differ by sub-component and target areas. To adjust to progress in capacity building, the detailed project plan will be based on annual workplans which the Government and IDA will agree on the basis of the Letter of Basic Education Policies. 49 Ainex 5: Financial Summaary REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Implementation Period Operational Period 2001 2002 2003 2004 2005 Total 2006 2007 2008 Project Cosis Investment Costs 5.4 9.0 12.7 14.8 11.6 53.5 Recurrent Costs 0.3 1.3 1.8 2.5 3.2 9.1 3.7 3.5 3.7 Total 5.7 10.3 14.5 17.3 14.8 62.6 3.7 3.5 3.7 Financing Sources (Amounts) IDA 5.4 9.3 13.0 15.4 12.9 56.0 Government 0.2 0.7 1.1 1.4 1.4 4.8 3.4 3.5 3.7 Communities 0.1 0.3 0.4 0.5 0.5 1.8 Total 5.7 10.3 14.5 17.3 14.8 62.6 3.4 3.5 3.7 Financing Sources (% of Total Project Costs) IDA 95% 90% 90% 89% 87% 89% Government 4% 7% 8% 8% 9% 8% 100% 100% 100% Communities 2% 3% 3% 3% 3% 3%_ _ _ _ Total 100% 100% 100% 100% 100% 100% 100% 100% 100% Note: Figures may not add up due to rounding 50 Annex 6: Procurement and Disbursement Arrangements REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Procurement Within its mandate to assist MOE in the administration of the IDA credit, the Credit Administration Unit (CAU) will cover a wide range of responsibilities, ranging from managing central procurement (mainly procurement of goods and consulting services), overseeing procurement of civil works at the Governorate levels to provide technical advice to the Implementation Teams. While MOE has been involved in the implementation of IDA-financed projects through PIUs, BEEP will introduce new procurement arrangements in which MOE staff at the Governorate level will directly be involved in the procurement of civil works for new schools. The proposed approach relies on standardized designs, standard bidding documents approved by IDA, training, and technical assistance for design, preparation of bidding documents and supervision of schools to be rehabilitated/extended. Results will be evaluated at the end of the first year of project implementation to assess whether the approach is working or not (i.e., standard bidding documents and standard drawings are being used, advertising and bid evaluation is done in a reasonable period of time etc.). Based on the results of this assessment, the proposed approach may be continued or changed. The CAU will be staffed with competent professional staff hired through a competitive process. This recruitment will be carried out prior to Board presentation. A procurement assessment has been carried out and an action plan prepared to remedy the problems identified. They are both available in the Project Implementation Plan (PIP). The procurement assessment was conducted for the Central level of the MOE (specifically, the General Directorate for Designs and Projects -- GDDP) and the Sana'a Govemorate office where implementation will take place in the first year. Based on the discussion with the relevant authorities and individuals during the assessment, both the GDDP and its Sana'a branch office have the experience and capacity to implement the works contracts to be financed under the project. They have been doing similar types of projects for many years. However, they have weaknesses which need to be addressed and rectified. Recommended actions to help mitigate these weaknesses are discussed below: 1. The use of the Bank Standard Bidding Documents (SBD) and Guidelines in the procurement process. Documents including the engineering designs and bill of quantities have already been prepared by GDDP and are being reviewed by IDA for approval. 2. Introduction of Staff Service Rules and Manual of Procedures as a management tool. These tools are being prepared by the Borrower. 3. Training sessions will be organized on the Bank's SBD, Evaluation Form, and the Guidelines for Procurement of Works and Goods; they will be completed for the Sana'a branch of GDDP before December 31, 2000. This action would give implementation teams more insights into the Bank's procurement guidelines and procedures. 4. Introduction of a project management tool: the yearly Project Implementation Plan (PIP) & the associated Work Program and Operating Budget, will be prepared and discussed with the IDA project 51 team three months before the beginning of the fiscal year. This action would help improve the planning capacity of the implementation teams. 5. Operating budget and top up of core staff salary. The Government will allocate out of its own budget funds to cover the cost of construction supervision for new schools and for paying incentives to core staff working on the project. This acilion would help reduce risks associated with the low pay level of Government employees. During negotiations The Minister of Education has committed to allocate adequate funds through the ministry's budget. The CAU will be responsible for the preparation and the monitoring of procurement plans, and for all centralized procurement. It will also provide guidance on procurement procedures to the Implementation Teams at the Governorate levels. It is agreed that all goods (which will mainly be school furniture and educational material) will be centrally procured by the CAU as well as technical assistance and training. The MOE's Governorates' offices will procure all civil works, with TA in case of rehabilitation and extension. The Credit will finance civil works, goods, technical assistance, and training. Procurement under the Credit will be carried out in accordance with the Bank's Guidelines for -Procurement under IBRD Loans and Credits - January 1995, revised January and revisions up to January 1999 and for-- Selection and Employment of Consultants by World Bank Borrowers-- January 1997 and revisions up to January 1999. Project components not financed by the Bank will be procured in accordance with national regulations. The Bank's guidelines and standard documents will be used for the procurement of work and goods. Although some goods will be procured under International Competitive Bidding (ICB) procedures, most procurement will follow National Competitive Bidding (NCB); an Arabic version of Bank-approved standard bidding documents for works and goods will be used by the project. Procurement methods (Table A) WORKS. Civil works undertaken by BEEP will comprise construction, extension and rehabilitation of 3- or 6-classroom schools, and are estimated at US$36.3 million. Civil works will be of smnall value and spread throughout rural areas of the four project Governorates. They will not attract foreign firms and therefore ICB is not foreseen. All civil works contracts will be awarded under NCB procedures. For contract values above US$100,000, advertisement in two national newspapers will be required. For contract values below US$100,000 up to art aggregate amount of US$20.0 million, simplified bidding documents and announcements through posti ng in public areas will be used. GOODS. Goods and equipment will primarily include furniture for schools, as well as classroom kits, and office equipment and computers for the CAU, and are estimated at US$5.9 million. Goods with estimated contract values above US$350,000 will be procured through International Competitive Bidding (ICB) procedures. Goods with estimated contract values below US$350,000 up to an aggregate amount of US$3.0 million will be procured through National Competitive Bidding (NCB) procedures with advertisements in at least two national newspapers. Goods with an estimated contract value below US$50,000 up to an aggregate amount of US$500,000 will be procured through International/National Shopping (IS/NS) by soliciting at least three competitive quotations from suppliers, in accordance with IDA guidelines. Classroom kits, up to an aggregate amount of US$500,000, will be procured through IINICEF, and vehicles, up to an aggregate amotunt of US$100,000, will be procured through IAPSO. SERVICES. Services to be contracted include long-term and short-tern international and national technical specialists, architects/engineers, trainers, financial specialists, and auditors. Quality and Cost- Based Selection (QCBS) will be the preferred method to be used with firms. Auditors will be selected using the Least Cost Selection (LCS). Other smaller assignments with firms and individuals will use consultant qualification (CQ). In exceptional cases, for contracts below US$50,000, Single-Source Selection (SS) may be used. 52 Table A: Project Costs by Procurement Arrangements (US$ million equivalent) Procurement Methodl Expenditure Category ________Total Cost ICB NCB Other2 N.B.F. 1. Works 0.0 36.3 0.0 0.0 36.3 (0.0) (32.7) (0.0) (0.0) (32.7) 2. Goods 2.0 3.0 0.9 0.0 5.9 (1.9) (2.9) (0.8) (0.0) (5.6) 3. Services 0.0 0.0 11.4 0.0 11.4 (Technical Assistance and (0.0) (0.0) (11.4) (0.0) (11.4) Training) 4. Recurrent Costs 3/ 0.0 0.0 9.0 0.0 9.0 (0.0) (0.0) (6.3) (0.0) (6.3) Total 2.0 39.3 21.3 0.0 62.6 (1.9) (35.6) (18.5) (0.0) (56.0) 1/ Figures in parenthesis are the amounts to be financed by the IDA Credit. All costs include contingencies. 2/ Includes goods to be procured through UN agencies (IAPSO and UNICEF) and intemational and national shopping, consulting services, services of contracted staff of the Credit Administration Unit, training, workshops, and technical assistance services. 3/ Include supplies, transport, gas, rent, translations (for Credit Administration Unit), field visits (transport and per diem for field teams), and maintenance and repairs of buildings, equipment and fumiture. Prior review thresholds (Table B) Civil Works: All works contracts, with an estimated value above US$200,000 equivalent, as well as the first three works contracts in each governorate irrespective of their value, will be subject to prior review. Post-review will be conducted during supervision missions and procurement audits. Goods: All goods contracts, with an estimated value above US$200,000 equivalent and the first three goods contracts will be subject to prior review. The first three contracts for goods will be subject to IDA prior review. Post-review will be conducted during supervision missions. Services: All Termns of Reference (TOR) regardless of the amount of the contract will be subject to IDA prior review. All contracts above US$100,000 for firms, and US$50,000 for individual consultants will be subject to IDA prior review (TORs, short lists, requests for proposals, draft contract, technical and financial proposals, contract award). Procurement Plannin . The monitoring system presently in use for civil works, goods and services includes data on the main procurement steps (date of advertisement, bid document date, bid evaluation date, awarded bidder, estimated and actual cost, progress to date versus plan). A detailed procurement plan has been prepared for the first year of the project and is included in the PIP. This will be the MOE's blueprint for subsequent years. Methodology for preparing procurement packaging will be subject to a special presentation prior to project launch. 53 Table B: Thresholds for Procurement Methods and Prior Review 1 Contract Value Contracts Subject to Expenditure Threshold Procurement Prior Review Category (US$ thousands) Method (US$ millions) 1. Works => US$100,000 NCB All contracts > US$200,000. (Advertisement in 2 national newspapers) < US$100,000 Simplified NCB (Advertisement First 3 contracts in each Governorate in a public areas) regardless of contract value. 2. Goods > US$350,000 ICB All contracts > US$200,000. (Advertisement in newspapers and Development Business) > US$50,000 & NCB First 3 contracts regardless of contract < US$350,000 (Advertisement in 2 national value. papers) < US$50,000 ISINS First 3 contracts regardless of contract "Three competitive quotations value. from suppliers) 3. Services Firms > US$100,000 QCBS (Advertisement in All contracts above US$100,000; Consultants national papers; and and Training Development Business for contracts above US$200,000) Individuals > US$50,000 CQ All contracts above US$50,000; Firms < US$100,000 QCBS, LCS, CQ, SS All TORs and cost estimates regardless of contract value. All SS methods. Individuals < US$50,000 CQ, SS All TORs and cost estimates regardless of contract value. ________ ____ __ _______ _______ _ ____________All SS m ethods. Total value of contracts subject to prior review: US$10 million Overall Procurement Risk Assessment Average Frequency of procurement supervision missions proposed: One every 6 months (includes special procurement supervision for post-review/audits). However, the first year will require three missions to ensure proper implementation start-up and famniliarization of the Ministry with IDA's procedures. Two ex-post review missions per year will take place to review randomly selected contracts below prior review threshold. At the end of the first year of implementation, a procurement assessment will take place to decide whether the above arrangements will be continued for other Govemorates or if alternative arrangements must be used. I Thresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement Documentation" and contact the Regional Procurement Adviser for guidance. 54 Disbursement Allocation of proceeds (Table C) The Credit of US$56.0 million will be disbursed over a 5-year period in accordance with Table C. All project activities are expected to be completed by December 31, 2005, and the Credit will close on June 30, 2006. Table C: Allocation of Proceeds Expenditure Category Amount in Financing Percentage . . . . . ... .. ... .... .. . ....... . US$ mi ion 1. Civil works 31.1 90% ... . .. .... . . . .. .. ....... --.1 .. .. ., .., ........... . ........ ...................I............ .............................. .. ... .......... ............. .. .._ .- . . . .. . . .. ........ ..... .... ........ ..... . ............ 2. Goods (furniture, equipment, 5.0 100% of foreign expenditures, educational materials & vehicles) 100% of local expenditures (ex-factory costs); and 90% of local xpenditures items procured locally 3. Training 7.7 100% 4 Consultants Services __ 2.8 _ __ _ 100% i5- Maintenance and repair of 3.6 60% buildings, furniture and equipment - ___ __ __ 6. Incremental operating 1.7 90% expenditures _ 7. Refunding of Project 1.5 Amount due pursuant to section 2.02 (b) of Credit Agreement Preparation Advancep 8. Unallocated 2.6 l Total Project Costs 56.0 __ Total 56.0 _ Use of statements of expenditures (SOEs): Disbursements for Goods and Works contracts below US$200,000 and Services contract below US$100,000 for firms and US$50,000 for individuals will be made on the basis of Statements of Expenditures (SOEs). Documentation will be maintained by the CAU and made available for review by members of IDA supervision missions. Documentation relating to SOEs will be retained for up to one year after the final withdrawal from the credit. Documentation for Withdrawals. Withdrawal applications for contracts for goods valued at more than US$200,000; for works of more than US$200,000; and for consulting services of more than US$100,000 for firms, and US$50,000 for individuals, will be presented with full documentation (in English) for disbursement. Special account: To facilitate disbursements against eligible expenditures, the Government will establish a Special Account (SA) in the Central Bank of Yemen, to be operated by the CAU under terms and conditions satisfactory to IDA. The authorized allocation of US$2 million represents about 3 months of estimated disbursements from the IDA Credit. Initially, the allocation will be limited to US$1 million, while the full allocation can be claimed when disbursements reach US$4 million. The CAU will submit replenishment applications for the SA on a monthly basis. The replenishment applications will be supported by a bank statement of the SA and a reconciliation of the SA against the bank records. Project Preparation Advance (PPA): To speed up the preparation of the project, a PPA in the amount of US$1,500,000 has been approved on February 5, 1998. Disbursements under the PPA are made using traditional Bank disbursement methods. 55 ANNEX 6(a): Assessment of Financial Management System REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Summary of the Financial Management Akssessment: The financial management of the project will be undertaken by the Credit Administration Unit which is also taking over the financial management of the PPA from the Coordination Unit (CU) of the Educational Investment Sector Project. The CAU is headed by a director, who reports directly to the Minister of Education. The CAU which w:ill be mainly concerned with the administration of the Credit, will have the overall responsibility for the financial management of the project, including budgeting, accounting, management of the Special Account, handling of financial transactions and financial reporting using systems and procedures acceptable to IDA. To have in place an adequate financial management system that can provide, with reasonable assurance, accurate, and timely information on the status of the project, the CAU will use a computerized accounting system, developed locally, with PMR-basecl disbursement capabilities. The CAU, also, will acquire the services of a qualified consultant who will set up a financial management system for the project and finalize the project's Financial Management Procedures Manual. This Manual will document inter alia the procedures to be followed in project financial management. The TORs incorporate main features of the FM arrangements which are given below. The accounting and financial system has to be set up in accordance with generally accepted accounting principals. The functioning of the accounting system will incorporate internal control and checks mechanism. The system will cater for the provision of accounting and financial data to the management of both the Central and Governorate administration. Initial steps toward setting up project FM arrangements are being undertaken; action plans for completing the system has been agreed. IDA supervision missions, including countiy office-based staff, will closely monitor the progress of CAU staff in their installation and use of the new system (including the PMR), and will provide assistance as and when needed. Staffing. The CAU is headed by a ful' time director with overall responsibilities of planning, implementation and reporting. Among the key staff of the CAU will be a Financial Officer and an Accountant. Central procurement will be managed by a procurement officer. Recruitment of these key staff will be carried out prior to Board presentation. Selection criteria are mentioned in the action plan. These individuals will receive on-the-job training in World Bank/IDA procurement, disbursement, project accounts, financial reporting and auditing guidelines and procedures. Flow of Funds. GOY will pass on the IDA funds to the MOE, with the foreign risk born by GOY, through a special account in the Central Bank of Yemen (CBY). GOY will provide counterpart funds for the project, through deposits to the project counterpart Yemeni Rial special account in the CBY. Budgetary allocations will be based on the annual plan, which outlines project activities at Central and Governorate levels. Financial and Accounting Policies. Financial and accounting policies for the project will be developed and incorporated in the FM Manual to ensure transparency and uniformity, provide clarity regarding financial aspects to the various parties, and to enforce accountability. These policies inter-alia cover the following aspects: (i) treatment of expenditures, including their classification; (ii) eligibility of 56 expenditures to be reimbursed from the IDA Credit; (iii) efficient management of funds; (iv) project accounting policies; and (v) internal control mechanism. Project Accounting System. The CAU will use customized accounting books and records on a cash basis. The CAU will keep separate accounts for the operation of the CAU, for the use of consultant services, for equipment, for civil works and other contracts, and for the Special Accounts and Statement of Expenditures (SOEs). The CAU will develop and disseminate financial statements and financial reports, and ensure timely audit of the financial statements. Funds received from different resources will be identified separately and reflected in the project accounts and financial statements. The trial balance will show all project related receipts, expenditures, and other payments as well as project operation costs. Project financial statements and financial reports will be fully based on the project books of accounts and substantially generated from the financial accounting system. Financial Management Procedures Manual (FMPM). The FMPM, which will be completed by Effectiveness, will cover: (a) flow of accounting documentation and information through the budget, acquisition, and procurement cycles at the central and governorates level; (b) financial and accounting policies and procedures; (c) internal control system, including computer data entry and data base management procedures, identification of key control points within information flowcharts, and other measures necessary to ensure the confidentiality, quality and reliability of financial data; (d) Chart of accounts; (e) financial reporting including formats of PMR tables and reporting formats required by GOY; (f) auditing arrangements; (g) budgeting processes; and (h) procedures for the operation of the accounting software and related internal control arrangement and levels of protection and security of the system. The Manual will be periodically updated and improved based on implementation experiences. Financial Management Reports. The CAU will submit for IDA review and evaluation a quarterly PMR for the project from the computerized financial management system. The first PMR is expected to cover the quarter ending on September 30, 2001. The report will include the following standard parts (PMR formats have been agreed and are included in the PIP): (i) Financial statements that include: Summary of sources and uses of funds Uses of funds by project activity Project balance statement of affairs Cash withdrawal Cash forecast Special account statement (ii) Project progress statements that include: Output monitoring report using contract management information, or Output monitoring report using unit variance as monitoring indicator (iii) Procurement management report that includes: Contract expenditures report - Goods and works Contract expenditures report - Consultants Procurement management report - Goods and works Procurement management report - Consultants 57 Physical information on key performance indicators that can be readily linked to the financial costs would be maintained as part of the financial management system. Initially this would be maintained for the high cost items, which count for a significant portion of project cost, and for items for which data on physical activities can be easily captured. These items will be identified and will be indicated in the manual. This list of items would be gradually expanded during implementation. Audited Project Financial Statements. The CAU will submit to IDA the audited Project Financial Statements (PFS) annually. PFS will include: (i) a statement of sources and utilization of funds or balance sheet, indicating funds received from various resources, project expenditures, and assets and liabilities of the project; (ii) schedules classifying project expenditures by components, expenditures by categories and sector; (iii) a Special Account reconciliation statement; and (iv) a Statement of Withdrawals made on the basis of Statement of Expenditures (SOEs). Audit Arrangements: Project financial statements will be auditecl annually by independent private auditors acceptable to IDA on the basis of Terns of Reference (TOR) and terms and conditions acceptable to IDA. By Effectiveness, the CAU Director will appoint auditors for ithe first year of the project on terms and conditions acceptable to IDA, and the TOR will be part of the FM[PM. Annual audited PFS will be submitted within 6 months after the fiscal year. The audit will be comprehensive and cover all aspects of the project (i.e., all sources and utilization of funds, and expenditures incurred), and will be carried out in accordance with International Standards of Auditing (ISA). Terms of reference (TOR) for this assignment will cover audit of financial transaction, and an assessment of the financial management system, include review of internal control mechanism. Disbursement ArranLyements Disbursements from the IDA credit will be initially made on the traditional system (reimbursements with full documentation and against statement of expenditures- SOEs and direct payment). It will be converted to the new procedures (based on Project Management Reports - PMR- based disbursement report) after the assessment of the accounting and reporting system and the issuing of a certification ensuring that the system is operating satisfactory. This would allow to issue the first PMR by November 15, 2001. Financial Manaaement Action Plan To meet the Bank's PMR-based disbursement requirements and to ensure that the financial management system is in place by Effectiveness, the CAU will oversee the implementation of the following agreed Action Plan. The Action Plan is based on a planned Board date of October 2000, and an Effectiveness date of January 2000. 58 Action Output Responsibility By 1. Preparation for the CAU staff to be Detailed job position MOE Done recruited description and TOR 2. Recruitment of the financial officer Contract acceptable to IDA MOE September 15, 2000 3. Preparation of TOR's for the consultant: TOR's and documentation CAU's Director SeptemberlO, 2000 specialist in accounting and financial acceptable to IDA management to develop FMPM 4. Appointment of the consultant and Contract for the consultant CAU's Director September 30, 2000 launching of the assignment 5. Developing of the FMPM Draft of the FMPM to be CAU'S Director October 31, 2000 submitted to CAU and and the IDA consultant 6. Acquisition of the software for Reception and installation CAU's Director October 31, 2000 accounting and reporting of the package 7. Implementation of the accounting and Set-up of the system and CAU's Director November 15, 2000 reporting system testing documents and the consultant 8. Transfer of the financial management Transfer of accounting CAU's Director November 31, 2000 of the PPA to the CAU records and related document from the CU 9. Appointment of auditors acceptable to Audit Report CAU's Director December 15, 2000 IDA 10. Issuing of the 1st PMR PMR to be submitted to CAU's Director November 15, 2001 IDA 59 Annex 6(b): LACI Certification REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECt Report on the Assessment of the PMR-based Disbursements Ineligible for PMR-based Disbursements Part I: Financial Management System I have reviewed the financial managemeni: system relating to this project. The objective of the review was to determine whether the project has in place an adequate financial management system as required by the Bank/IDA under under OP/BP 10.02. My review, which included visits to the project implementing agency, was based on the Bank's guidelines for "Review of Financial Management System," and focused on the assessment of the project's accounting system, internal control, planning, budgeting and financial reporting system, selection of an auditor, as well as the format and contents of the Project Management Report (PMR) to be submitted by the Borrower in support of Withdrawal Applications. I confirm that the project satisfies the Bank's minimum financial management requirements. This project has already started the process aiming at implementing an integrated computerized accounting and project reporting system that has been developed locally, in accordance with general accepted accounting principals, with PMR-based disbursemenis capabilities and incorporated with internal control system. Also, the project has hired a consultant to complete the development of the financial management systems of the project. In my opinion, this will enable the project to have in place an adequate project financial management system that can provide, with reasonable assurance, accurate, and timely information on the status of the project PMR-based disbursements, and satisfies the Association minimum financial management requirements. Signed by: (I6 'c. Financial Management Specialist Afif Al-Saqqaf MNCYE Date Part II: ProcurementlContract Management System I have reviewed the procurement/contract mnanagement system relating to this project. The objective of the review was to determine whether the procurement/contract management system adopted by the project conforms to the Bank's guidelines fcor procurement in investment projects. My review was based on the "Assessment: of Agency's Capacity to Implement Project Procurement, Setting of Prior Review Thresholds and Procurement Supervision Plan" guidelines issued by the Bank. I confirmed that the project satisfies the Bank's minimum procurement management requirements. However, in my opinion, the project does not have in place an adequate procurement/contract management system that can provide the appropriate data on major procurement and contract management (PMR - Section 3) as required by the Bank/IDA. I have detailed in the attachment the inadequacies that I found in the system together with an agreed action plan by the Borrower to remedy the sicuation. Signed by: c/6& iO5c Procurement Specialist Ali Khamis, MNSID Date 60 Part III: Physical Monitorable Indicators and Overall Assessment I have reviewed the project's system for monitoring physical implementation progress, including its monitorable indicators for major outputs. In my view, the system cannot provide the appropriate data on physical progress (PMR - Section 2) required by the Bank/IDA. I have detailed in the attachment the inadequacies that I found in the system together with an agreed action plan by the Borrower to remedy the situation. Also, based on the assessments of the FMS-OPR and PS, and/or considering my overall assessment of the project, I am of the view that this project is not suitable for PMR-based disbursements. Signed by: Task Team Leader e /' 2CW Regi Bendokat, MNSHD Date Part IV: Concurrence of LOA for Eligibility of Project for PMR-Based Disbursements I have conducted a reasonable review of the process followed by the Task Team in assessing the project, and I concur with its recommendation that this project is not eligible for PMR-based disbursements. Signed by: FMS-LOA/DO Andrina A. Ambrose-Gardiner, LOAEL Date Signed by: Disb. Off.-LOAlDO 'km act/ /l z Thao Le-Nguyen, 1:6AftL Date 61 Annex 7: Project Processing Schedule REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Project Schedule Planned Actual Time taken to prepare the pioject (months) 27 35 First Bank mission (identification) 07/07/97 07/07/97 Appraisal mission departure 11/30/99 06/17/2000 Negotiations 12/14/99 08/23/2000 Planned Date of Effectiveness 01/01/2001 Prepared by: Ministry of Education Preparation assistance: PHRD grant signed on August 22, 1998, and fully disbursed. Bank staff who worked on the project included: Name Specialty Afif Al-Saggaf Financial Management Specialist Ali Husni Operations Officer Ali Khamis Operations Officer (Procurement Assessment) Alia Achsien Program Assistant Arun Joshi Education Specialist Celine Gavach Program Assistant Dung-Kim Pham Operations Analyst/Financial Management Gustav Brest Van Kempen Architect (Consultant) Hind Tawfeek Team Assistant Regina Bendokat Cluster Leader, Pr. Education Economist Safaa El Tayeb El-Kogali Young Professional (Community Participation/Gender Specialist) Saleha Al-Nahdi NGO Specialist Takako Yuki Operations Analyst/Economist Vasilios Demetriou Sr. Implementation Specialist William Darnell Education Management Specialist (Consultant) Yasser El Gammal Operations Officer Project preparation started in 1997 with a diflerent team, for an Education Management Reform Project. The project concept was changed in August 1999, to reflect the pace of Government Administrative Reform and revised sector strategy. The pre-appraisal mission for the project took place in November 1999 62 Annex 8: Documents in the Project File* REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT A. Project Implementation Plan 1. Description of project components 2. Implementation arrangements 3. Project costs 4. Disbursement table (per year) 5. Annual workplan for the first year 6. Key monitoring indicators for the first year 7. Detailed schedule of activities for the first year 8. Terms of Reference for site selection 9. List of civil works sites for the first year of implementation 10. Terms of Reference for consultants for first year 11. List of equipment to be procured in the first year 12. Procurement plan for the first year 13. Procurement assessment report and action plan 14. Financial management assessment and action plan 15. Environmental management plan (EMP) B. Bank Staff Assessments 1. Aide Memoire/Memorandum of Understanding for BEEP (after the project concept was changed in August 1999) (a) March 2000 (b) December 1999 2. Report of Technical Missions (before the project concept was changed; It was then called Education Management Reform Project.) (a) January 1997 (b) April 1997 (c) August 1997 (d) December 1997 (e) March 1998 (f) August 1998 Hajjah Workshop 1997 (Inspection and Evaluation Sector) Summary Report of Workshop & Recommendation Darnell, William "Initial Report on Training Female Teachers in Rural Area - Basic Component of EMRP". World Bank, Washington D.C. (November 1998). Republic of Yemen, "Teacher and the Education Professions ." Law No. (37) of 1998. 63 UNICEF, World Bank, and Radda Barnaen in Partnership with the Government of Yemen "The situation of Women and Children in the Republic of Yemen, "Volume I, Yemen Situation Analysis, Sana'a, February 1998. UNICEF, World Bank, and Radda Barnen in Partnership with the Government of Yemen. "State of Basic Education in the Republic of Yemen," Volume III Yemen situation analysis. Sana'a, February 1998. Yemen. "Human Development Report 1998". Sana'a, December 20, 1998 Lockheed, Marlaine, Regina Bendokat, Takako Yuki "Republic of Yemen: Education Sector Assistance Strategy." MNSHD (Human Development Group Middle East & North Africa) Discussion Paper Series No.3 The World Bank, Washington DC (November 1999). Bendokat, Regina; Takako Yuki (1999) "'Yemen Public Education Expenditure Review 1999." World Bank. C. Other Aziz, Arfah A. "Comprehensive Report In-service Training Option for Yemen." (January 2000). Paper submitted to the Ministry of Education and the World Bank as consultant service for the Basic Education Project. Nagl, MM; MA Al-Hiziazi; and AM Eng. Al-Sharjabi, "Assessment of Decentralization Experience within MOE Sector." Ministry of E&ucation (MOE), Coordination Unit (CU), Sana'a, Yemen (September 1997). Al-Abbasi, Mutahar A., Yahya Y. Almutawakel, and Abdulkhalek Ba-Alawi. "Decentralization and Education Expenditures in Yemen." National Expertise for Consultancy, Studies & Training (NECST) Sana'a, Yemen (May, 1997). The Arab Regional Conference on Education for All, 2000 Assessment "Report, The Republic of Yemen", Cairo 24-27/1/2000. Republic of Yemen, Ministry of Education "Program for the Preparation of the Ten Year Education Plan 1999-2008, Sana'a 1999. Grimsrud, Bjorne. "Working Children in Yemen: Who are they? A Study of Child Labor in Yemen." Oslo, June 1998. Piotte, Fernand. 2000. "Republic of Yemen, Blasic Education Expansion Project, Project Implementation Arrangements." Report submitted to the Ministry of Education and World Bank, Sana'a. May 7, 2000. *Including electronic files 64 Annex 9: Statement of Loans and Credits REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT Difference between expected and actual Orginal Amount in US$ Millions disbursements Project ID FY Borrower Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd P005904 1993 Yemen, Republic BASIC EDUCATION 0.00 19.70 0.00 3.95 3.71 2.17 P005911 1994 Yemen, Republic EDUCATION SECTOR 0.00 33.00 0.00 19.33 16.78 5.56 P005910 1993 Yemen, Republic FAMILY HEALTH 0.00 26.60 0.00 12.72 13.92 12.86 P048522 1997 Yemen, Republic FLOOD EMERGENCY 0.00 30.00 0.00 6.45 8.44 0.00 P005836 1992 Yemen, Republic LAND & WATER CONSERV 0.00 32.80 5.55 0.99 5.02 0.10 P050483 2000 Yemen, Republic RY-CHILD DEVELOPMENT 0.00 28.90 0.00 28.00 0.00 0.00 P050706 2000 Yemen, Republic RY-CIVIL SERVICE MODERN 0.00 30.00 0.00 29.52 0.00 0.00 P057915 1999 Yemen, Republic RY-LEGAL & JUDICIAL DEV 0.00 2,50 0,00 2.13 0.26 0.00 P005806 1991 Yemen, Republic RY-MULTI-MODE TRANSPORT 0.00 35.80 0.00 5.09 -3.14 2.26 P049735 2000 Yemen, Republic RY-PRIVATIZATION SUPP. 0.00 10.90 0.00 10.89 2.00 0.00 P060132 1999 Yemen, Republic RY-PUBLIC WORKS II 0.00 50.00 0.00 41.48 11.60 0.00 P050530 1999 Yemen, Republic RY-SANAA EMERG. POWER 0.00 54.00 0.00 34.58 16.79 0.00 P005907 1999 Yemen, Republic RY-SANAAWSISANITATION 0.00 25.00 0.00 15.23 -1.38 0.00 P068830 2000 Yemen, Republic RY-Second Social Fund for Development 0.00 75.00 0.00 74.34 0.00 0.00 P041267 1998 Yemen, Republic RY-TRANSPORT REHABILITATION 0.00 37.00 0.00 18.22 20.53 9.58 P005902 1998 Yemen, Republic S.GOVAGRI PRIVATIZA 0.00 24.70 0.00 21.22 11.18 0.00 P039171 1998 Yemen, Republic SEEDS &AG. SERVICES 0.00 12.50 0.00 7.63 3.28 0.00 P041199 1997 Yemen, Republic SOCIAL FUND DEVPT 0.00 30.00 0.00 3.76 -11.40 0.00 P005912 1996 Yemen, Republic VOC. TRAINING 0.00 24.30 0.00 15.85 14.32 0.00 Total: 0.00 582.70 5.55 351.38 111.91 32.53 REPUBLIC OF YEMEN STATEMENT OF IFC's Held and Disbursed Portfolio In Millions US Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1999 ACSM 12.00 0.00 0.00 0.00 8.00 0.00 0.00 0.00 1998 Radfan 3.80 0.00 0.00 0.00 3.80 0.00 0.00 0.00 Total Portfolio: 15.80 0.00 0.00 0.00 11.80 0.00 0.00 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic Total Pending Commitment: 0.00 0.00 0.00 0.00 65 Annex 10: Country at a Glance REPUBLIC OF YEMEN: BASIC EDUCATION EXPANSION PROJECT 11A East POVERTY and SOCIAL A North Low- Yimen Afdca Incoma Development diamond' 1992d Poplation, md-year (mitIions) 165s 285 3615 Life expectancy GUNP p capita 4Atlas method, USS) 300 2050 520 GNP (At.as method. USS b.lilons) 4.9 588 1,844 Avage annual growth. 19S9z-9 Population (%) 2.9 2.2 t7 Labor force (%) 3.4 30 t.9 GNP Gross uostracest Gstimato (latest yonr ovollAblo, 100244) per I o / primary Mliloat recent timete (iahsteayeasr .v hie1e 199248) ;capita enrollment Poverty (% Of poputa tion beow national pOV4fy fine 1) Urbanipopulation f% oftotaioopotolori 36 58 31 Life expectancy atbirth (years) 15 4 67 83 Infant mortality (pr 1,060 Nve birth sl W 49 88 Child malnutriion: (% o? children cdrS) 29 1:4 .. Access to safe water Access to saf water %of population) 39 81 74 lliteracy (5 of pulation age 15+) 58 38 32 Gross primarv enrollment ( of schoolXas population) 70 s9 108 -Yemen, Rep. mate 10D 103 113 -Low-income group camels 40 89 103 KEY ECONOMIC RATIOS and LONG-TERM TRENDS; 1977 1987 199,17 1998 Economic ratios GDP (US$ baillons) - .. 5.7 5.4 Gross domestic investmentiGOP 21.2 21.5 Exports of goods ard serviceesGOP . . 44.0 34.5 rade Gross domestic savings/GOP 12,0 2,4 Gross national savings/DP . 2368 17.5 Current account balance/GoP 2.4 -4 0 interest payments/GOP O S 0 0 Domestic Investment Total deatUSOP . 67. 37.3 Savings 1Tt debt alce/Xdrtas . 28 Present value of debtGDP . . 25 Present value of debt(exports .. , 80.8 Indebtedness 197747 1*884-9 197 1998 1"943 (average annual growth) GbP 3.S S.4 s 5.1 - Yemen, Rep. GNP per ceapita .. .1.0 -06 4.8 2.3 Low-income group Exports otf oods and services .. 6.9 7,1 42 3.8 STRUCTURE of the ECONOMY 1977 `1987 1997 1998 Growth rates of output and investment 1%) of GDP) 30 Agriculture 1682 16.2 Industry 449 44.9 20 Manufacluring 10.5 10.5 1| Services 38.9 38.9 s0s Private consumption 6885 75.7 -10 S s 07 se General government consumption 18.7 21.9 _ GDI -GDP Imports of goods and services 52.4 53.6 (average annyual growth) 197747 1988-98 1997 1998 Growth rates of exports and Imports (%. Agriculture 4.3 2.2 0.7 60 Industry .. 8.4 3.4 3.8 40 Manufacturing 1.6 3.4 3.8 f / X Services . 1.7 9.6 6.1 20 Private consumption 1.9 -3.0 6.0 o General government consumption 3.0 49.1 121 93 -7 Gross domestic investment 8 8 6 -27 20 Imports of goods and services .. 3 0 8.1 -0.7 - Exports eIrmports Gross national product 2.6 2.0 7.3 Note: 1998 data are preliminary estimates. The diamonds show four key indicators In the countrv (in bold) compared with its income-group aver,qe. If data are missing, the diamond will be incomplete. 66 Yemen, Rep. PRICES and GOVERNMENT FINANCE Domestic prices 1977 1987 1997 1998 Inflation (%} ('Y change) S. Consumer prices .. .. 6.3 8.5 eo.- Implicit GDP deflator .. 7.0 -4.6 40 Govemment finance 20 (% of GDP, includes cuffent grants) o Current revenue 377 29.8 -20 93 94 es O 97 Current budget balance .. .. 6.0 1.4 -G OP deflator 0 CPI Overall surplus/deficit .. .. -1.8 -5.0 TRADE (US$ millions) 1977 1987 1997 1998 Export and Import levels (US$ millions) Total exports (fob) 2,262 1,632 D,0 Crude oil (govemment share) .. .. 1,004 599 Crude oil (companies' share) .. .. 935 743 o.. Manufactures .. .. 199 142 Total imports (cii) .. .. 2,601 2,553 Food .. .. 916 881 ,.000 Fuel and energy .. .. 185 133 Capital goods 85 73 o Export price index (1995=100) .. .. 114 91 92 93 94 95 s 97 W Import price index (1995=100) ,. . 76 75 U Exports U Imports Terms of trade (1995=100) .. .. 149 121 BALANCE of PAYIENTS 1977 1987 1997 1998 Current account balance to GDP ratio (%) (US$ millions) Exports of goods and services .. .. 2,522 1,874 20 Imports of goods and services . .. 3,005 2,915 Resource balance -483 -1,041 1 Net income -636 -467 Net current transfers .. .. 1,254 1,289 9 s 9s 97 Current account balance .. .. 135 -219 Financing items (net) .. .. 162 56 Changes in net reserves -297 163 -3 memo: Reserves induding gold (US$ millions) '1,227 1,094 Conversion rate (DEC, IocaWVUS$) 129.3 135.0 EXTERNAL DEBT and RESOURCE FLOWS 1977 1987 1997 1S98 (US$ millions) Composition of total debt, 197 (USS millions) Total debt outstanding and disbursed 723 4,585 3,856 IBRD 0 0 0 0 G:A1S IDA 59 473 934 1,075 ~~~--- B: 934 Total debt service 22 269 98 IBRD 0 0 0 0 F:8371f IDA .. 6 16 18 Composition of net resource flows c: 2s0 Official grants 287 242 C:2.. Official creditors 80 94 Private creditors 13 174 Foreign direct investment 0 1 .. D -: 458 Portfolio equity 0 O E: 1,190 World Bank program A - IBRD E - Bilateral Commitments 16 66 149 60 B - IDA 0 - Other multilateral F - Private Disbursements 21 41 89 121 C - IMF G - Short-term Principal repayments .. 2 10 11 Net fows 21 40 79 111 Interest payments . 4 7 7 Net transfers 21 35 72 104 Development Economics 9122/99 67 ANNEX 1 1 ., Sepl:ember 6th, 2000 Mr. J. Wolfeensohn, President, The World Bank, Washxington, D. C U.S.A. Dear Mr. Woifensohn, Subject: Yemen - Basic Education Expansion Project Letter of Basic Education Policies A. Introduction 1. The Republic of Yemen, at a per .apita GNP of about US$350, is among the low- income countrics. In receznt years, the Government has successfilly confronted some major economic challenges through sound mracro-economic management; it has turned its economy around and is now poised to continue on a path of rapid economic growth. Yemen's successful implementatior, of a; economic and administrative reform program, supported by the World Bank and the IMF, has revered some of the severe econoniic setbacks the country suffercd in response to several events such as the Gulf war aid its own secessionist conflict of 1994 ard for the first time the country's economic indicators have shown a highly positive picture. In April 1997, a new Government was elect.d which has assured continuing public support for carefully imiplemented mnanagement and administrative reforms. 2. Through the reforms, the Government has given high priority to education sector expenditures, considering education to be fulndamental to Yemeni econoinic and social developEment. As the demand for quality education increases, Yemen faces considerable challenges in the equity and quality of the education system, in addition to onrgoing concerns about access as well as sound anid efficient mranagement of the system. Enrollmnents are low, about 60% at the basic education level and 27% at the secondary leve:L. An especially severe probl.erm is inequities in access to education, among Governorates and between rural and urban areas Further, gander discrepancies in ediucational opportunities are among the highest in the World. The 1998-99 educa;ion survey shows that 3,335,214 students arc enrolled in general education (graiie 1-12) but only 29.4% of them are girls. The percentage of girls enrollment drops further in rural areas to about 28% at the basic level and 14% at the seconclary level, and in some deprived Governorates and rural areas these percentages are ever smalleZ. .*....... ....... .- ..... ...... ...................W,,,J.ji ....... ................... ....._s, 3 The MOE, Yemen's largest civil employer, is now in the process of restructuring and streamlining of its system of management with the objective of simplifying its centralized bureaucratic structure, eliminating overlap, duplication, overstaffing, especially at the central MOF, and shifting responsibilities to the Govemorates. This new structural proposal is now at the Cabinet stage as the first step towards giving it a legally recognized status. The restructuring plan is for an initial four year period for implementation. Already an Education Survey and school mapping of eighi govermorates have been carried out. School mapping of the remaining Twelve Glovemnorates is at a planning stage, and a permanent and colherent system of informationi gathering is in process to holp with procedures. information flow, job description, and provide basic management tools. B. Goals/Objectivesfor Basic education 4. Yemen's constitution (amended in 1994) stipulates thlat all citizens have the right to education arid that primary education is compulsory. MOE is responsible for providing and overseeing basic education (nine years) and secondary education (three years). Long-term goal 5. The Govcrmrnent gives higl priority to expansion in basic education and allocates a large share of public spending to the education sector. The Govemment has now targeted the expansion of basic education especially in rural areas and particularly for girls as its top and most urgent task; it also recognlizes that it should give a higher weight to quality education at this level as quality has suffered in comparison with quantitative expansioa. This new perspective is a challenging task for MOE, which calls for addressing the needs for more qualified and efficient management, bctter school buildings, appropriate teaching and leaming facilities, better trained teachers, and more appropriate and updated curricula. The long-tenn strategy of MOE is to attain unlversal basic education of appropriate quality in the country and to provide equal access to basic education to boys and girls in both urban and rural areas. Objectives for the nextfive years 6. MOE realizes that its long-term strategy requires time to be implemented. and for this reason, it foresees moving towards its target in phases. The MOE, therefore, shall over the next five years, as a first phase, work at improving enrollment in grades 1-6 of basic education of appropriate quality, particulaxly in rural areas and for girls, through appropriate and efficient planming and management, decentralizing responsibilities to the Govemorates and secking a more active participation of the local commumities. It shall also work at improving the institutional capacity of MOE throughi providing an adequate educational management infonnation svstem, a more efficierxt and accurate school mapping ................ ,,.y jl ............. ..:sL and statistical information to also cover the Directorates of Education in the Govemorates. These actions aim at improving the efficiency and sustainability of the basic education system. Implementation 7. MOE's first phase for the expansion of basic education will comnmence in four £;; aic.su ta.i,u o roa 4tlcev-t &V- 3SCU±4L v tLiU municipal), Al-Mahweet, Amran and Dhala. Four districts in each of thcsc Governorates will be reached as a first stage of this phase. Government aims at increasing enrollments in grades I - 6 in these districts by about 30% and at achieving a 60% share of girls in these increases. MOE plans for this phase to take four to five years, and the evaluated outcome of the Dhase shalI serve in dec.isins.c for expanding similar actions to other Goveemorates. 8. Policy reforms as described in this Letter will be implemented over the next five years. For each year, the annual work plan for BEEP will specify the measurcs Government will take to ensure continued implementation of the policy reforn program. linplcmcntation will be monitored throu&h lic Lpagred BE-EP monitoring iiidicators. Government Policies for Basic Education 9. The MOE policy for expanding basic education builds on infom-ation from the 1997i1998 and 1998/1999 E-ducation Surveys, school mapping, and experiences gaincd by MOE aS wclt as otzhe 1aUiLQUdl, innmauonal and bilatcral organizatiolns, such as the Social Fund for Development, Public Works Project, UNICEF, Gr2...., etc., in regard to conmunity participation. 1 O.School Construclion. Over ,he last three decades, Yemen h-as built thousands of qchoklR with envernminnt fiinti;, rommunity donation, IDA.A Credit3 ond bilktcral non-refumdable aid from a utu'nber of brotherly and friendly countries. In most cases, there have been no stumdards for school buildings concerning their design, materials, adaptation to climatic conditions or location. MOE now intends to establish proper standards for school buildings and prepare a legal decree by whi;h-a'il--,gem~ w 1wtll b=td schdooWls ihe lurure will abide. MOE shall prepare school designs following international standards and local requirements as well as healthy leamring conditions. The emphasis in the first phase will be on schools at Lhe basic levcl for grades 1 - 6. Cwtrenitly school construction in Yemen i.s crriet-uir hl'_-tbno ajor bodies. narnely ACE, the Social Furd for Development and Public Works projects, and coordination arnong them is improving. MOE's Sector of Projects and Equipment, irt close consultation with tlhe Directorates of education at the Governorates and the local cormmunities, has established school construction norms, stanidard designs for 3- and6 -ctassroom ~~~~~~~~~~~-A ......... , :sY U9 ..... ..... ........X...A .....................:i { 1, j l .......... ......... ....... schools, and guidelines for the selection and location of schools The -ttantisrwd designs are cost-effective and take into account girls' needs. The policies for school construction are based on school mapping data and include envirornental aspects. Community participation in site selection and construction of schools is an importanr principle of thc new policies. 11. The 1998/l19. -rurv.y revealed that only-30%' of the acl%ois c iii uoud structural condition and 55% of the schools are in need of repair and of which 46% are in the urban areas. 15% of all schools are in dangerous and unsafe condition for use. 77% of all schools are without boundary wails and of those schools with boundary walls only 3% are girls schools. MOE realize.s the need for carrying out major repair work to schools to render them in a good working and usable contdition as well as adding boundary walls, toilets and administration and staff rooms. MOE shall allocate a higher budget for the repair of schools as of the financial year 200 l/20C2 on a gradual bases of 15-20% yearly increases over the pcrind.2001 ta%OOS. 12. Curriculum reform and teacher training. New curricula for grades 1-6 have been developed under thc IDA-funded Basic Education Project, an-d new curricula for grades 7-12 in rnathematics and science have also bqen developed under the Education Sector Investment Project. 'rho cumicula for grades 1-6 will be introduced in the school year 2000/2001. Teachers need to bc familiarized witl the new curricula. MOE's Sector of Curricula and Education Inspection has worked closely with the ERDC for training of teachers and revising the training programs of the teacher training institutes to reflect the changes in curricula. Training of almoct-4 00,000 teachowv-hae 3toarcd i1.1 Au5ust 2000 to pliC; fvr die use of the new curriculum and textbooks. MOE shall also utilize its newly acqtuired capacity for distance education in developing distance iri-scrvice teacher training programs; it has also developed a modular teacher tra;iiing prograrn for in-service teacher training. Theqet actions are scheduled to strt by She beginning of 2001. PIarali.l to thc tecaclh-trhtuiirLa, s3ptvi ^hm-ternrworkhops and training seminars that will be organiized for school inspectors and headmastors. 13 .Teachaer deployment. The Govenmnent is aware of teachers' reluctanlce to move to assigiunents in rural arc;as. The Teachors Law. passed by Parliament in 1 99R provides additional incentives for teachers assigned to schools in rural areas; and the ongoing Civil Service Reform Program, supported by IDA, provides additional instruments for rationalizing MOF. Rtqffinsr A, An inirini sts! towaxad rationalizing MOE staffing, the Ministry has substantially reduced, hiring of new tcachrz; -it airms te, lirit its CCutuLua:L LQ Lv"hirWk ;ho replace costly fbreirgT teachers aand to disciplines in which there is a shortage. To realize efficiency gains within MOE, staff are being reassigned to teaching positions in rural areas. Govemment realizes that teacher redeployment will take time and is committed to _7.Adially e-xp;ind the coverage of the reform, sL-ating with implcmcating a. detaied teacher redeployment-planr for Sara- a Goven-orater(arsed) Irr-:001 :::::* : : ::.: : f;J - -Lm * i # jfjI-l, 14. Equipment The teaching and leaming facilities are essential components in the education process that feature amongst the priorities of MOE to ensure quality teaching and learning. Beside 1he need for adequate buildings, MOE shall also set up standard requirements for the provision of furniture, text books, and other teaching aids. The objective of this action is to fulfill MOE's policy in providing all schools with the facilities needed to ensure quality teaching. I S.Mainkcnapce. Based or. -the ongoinlg study on operatioias a' t.1rntcu c 1tih: school level, MOE is commirzed to developing a mechanism for routine school maintenance developed and operational in the pilot districts by 2002. The mechanism will involve the local communities in thc maintenance and repair of their schools. The Ministry of Rinanme has agreed that schools rerain the school fees which will be used for imiiproving conditions of the schools. The parents' comnilttees shall be involved in authorizing spending from the fLund. Concerning allocation of MOE budget resc,urces for maintenance, MOE shall adopt a greater equity in allocation of funids anti develop the mechanism and basis on which such allocations shall be made, considering the size of schools, their student population and location. D. Community Participation A V.MOE has already created a Cnommunity Participation Unit at the central MOE as welI as branch units in the Governorates in December 1999. The bylaws for the CPU arc bclag pidpCued. ILN fLULcioIis ixicludc promoting the involvement of communities in site selection For schools, construction and management of schools. E. Supporting Arrangemnents - Capacity Building I 7.Many of the problems of MOE's policy implementation, quality assurance in the educatioii system and wastage of resources, including poor and underused facilities, misdistribution of teachers and other personnel and the under- qualifications of many MOF. staff has been the result of poor planning and management, at almost all level.s at the Central MOE and the Directorates of irdimmtinn of xGc rames l'h MOE will direct attention, provide r.cou-0e° from its own budget and from IDA Credits to a careful planned program of training and retraining of its personnel to improve their capacity to planand manage the education system more effectively and efficiently. During the first phase of the reform proaram and the BEEP project, irnpleme.ntatiion will focus on the Central MOE personnel and the Directorates of Education in the four targCt Governorates and Districts selected for BEEP implementation. to be followcd by capacity building programn for the other Govemorates and Districts in the future. 5 ILJ.WIS> - ... . ' UJ4U ..¸..........4 . ........ .,,,:X,1S . j ; ............................ F. 1Requestfor IDA Suipport 18-Ta be arblet!raJevc diC dbuavc au iIIIp?emerrL itd Ciu± =}t± , i Ministry of Education is requestinrg IDA's support through the Basic Education Expansion Project which will not expand education facilities and school buildings only, but will seek to overcome the weaknesses in the system for planning, mnancgement cand monitorixg and tho lack of capcLcity dIuc to qualification and training of rmost personnel in the key posts at Central, Governorate and District levels which will lead to better and improved planning and management, better utilization of resources, improved supervision and quality of the systerm. Dr. Acbaaiar-im 6 m e Minifer 6 IERD 31070 42 44 46 4b' 50' 52' .. 04 REPUBLIC OF YEMEN SAUDI ARABIA BASIC EDUCATION EXPANSION PROJECT _--- A ^ Sh- oh Q PROJECT GOVERNORATES o TOWNS AND VILLAGES PRIMARY ROADS _ \ . / y I8 (3 GOVERNORATE CAPITALS SECONDARY ROADS / ' , \. N NATIONAL CAPITAL _ WADIS 0 ,, ISa ± AIRPORTS GOVERNORATE BOUNDARIES PORTS _ INTERNATIONAL BOUNDARIES 00/ Tho,oo~~ / ~ HTh..ot ,_, _ lo Zabr n ob ~~~~/ , ( 0,/',", ..{\- )AL- v~~~~~~~~~~~~~~~~~~~~~~~~~~ S Al ] 0f ,,old, ---- DJIEOUTI Pi jr.~~~~~~~~~~~ ~/H A VRkAM( Moo opI A-JOWF A L Tbw~~~~ H AM' R H Wh.~~~~~~~~~~~~~~~~~Wo Al~~~~~~~~~~~~lMq.i ~ A h Al 01 8$H.d.io l do.ph TA)Z 1 , 0%U, E '1 \ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~±-~~~~~~~~~~~~~~~~ ~~~~Socotra ETHIOPI ASN d0coRT0M1SOTOoeE 5 DR 55 7 toatAw$5 AT --W-.- '- 2, DJIBOUTI r~- /IP-l-- -~ OJIBOUTI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~, I---- ~~~~~~~~~~~~~~----> 04'SEPTEMIRE 2DD.~~~~~~~~~~~~~~~~~~~~~~~~~~EPEBE 20