ICRR 12352 Report Number : ICRR12352 IEG ICR Review Independent Evaluation Group 1. Project Data: Date Posted : 03/27/2006 PROJ ID :P004823 Appraisal Actual Project Name :PCN - Second Education Project Costs 3.75 0 Project US$M ) (US$M) Country :Vanuatu Loan/ Loan US$M ) /Credit (US$M) 3.5 0 Sector (s):Board: ): ED - Primary US$M ) Cofinancing (US$M) 0 0 education (53%), Secondary education (16%), Pre-primary education (16%), Central government administration (11%), Tertiary education (4%) L/C Number :C3543 FY ) Board Approval (FY) 01 Partners involved : None Closing Date 06/30/2005 Evaluator : Panel Reviewer : Division Manager : Division : Judith Hahn Gaubatz George T. K. Pitman Alain A. Barbu IEGSG 2. Project Objectives and Components a. Objectives This LIC aimed to identify an efficient, replicable and sustainable model for the provision of instruction in vernacular languages and in English and French in rural areas of Vanuatu. More specifically, the project would pilot a program that would include introducing preschool and primary education in vernacular languages, expanding educational coverage to junior secondary level, and increasing parent and community involvement. b. Components (or Key Conditions in the case of Adjustment Loans ): (1) Expanding access and improving quality through pilot projects (Appraisal: $2.35m; Actual: $0). Activities included: introducing preschool education in vernacular language; engaging community and NGO participation; and providing school equipment and materials. (2) Capacity building for replicating the pilot (Appraisal: $1.4m; Actual: $0). Activities included technical assistance to the Ministry of Education, Youth and Sports for: developing vernacular language materials and curriculum; training teachers; and improving policy and planning capacity. c. Comments on Project Cost, Financing, Borrower Contribution, and Dates After Board approval, Government of Vanuatu (GOV) failed to sign the DCA and thus the project never became effective. In January 2003, after the 18-month signature deadline for effectiveness lapsed, GOV expressed interest in reactivating the credit and requested a nine-month extension of the signature deadline. However, in April 2003, GOV and IDA management agreed to cancel the credit and design a new project that would better reflect GOV’s needs and priorities. The credit was cancelled with no disbursements. 3. Relevance of Objectives & Design : The relevance of the project objective is modest. The project objective of identifying a model for the provision of education in rural areas of Vanuatu, particularly in vernacular languages, was relevant given that the existing formal education system in Vanuatu is directed mainly at preparing students for employment in the formal sector whereas the rural population speaks indigenous languages and will not likely seek employment in the formal sector. However, the project was apparently less relevant in the context of the GOV’s education sector strategy; this was given as a reason for the GOV’s reluctance to commit to the project. 4. Achievement of Objectives (Efficacy) : The project objective was not achieved , as the project never became effective and thus project implementation did not commence. 5. Efficiency : Not rated. 6. M&E Design, Implementation, & Utilization: The M&E plan is detailed in assigning responsibilities for monitoring activities; however, the plan does not clarify which indicators will be tracked or to what extent those indicators will need to improve to demonstrate “success.� 7. Other (Safeguards, Fiduciary, Unintended Impacts--Positive & Negative): (none) 8. Ratings : ICR ICR Review Reason for Disagreement /Comments Outcome : Not Rated Not Rated Institutional Dev .: Not Rated Not Rated Sustainability : Not Rated Not Applicable Bank Performance : Not Rated Unsatisfactory PCN gives no rating. Borrower Perf .: Not Rated Unsatisfactory PCN gives no rating. Quality of ICR : Satisfactory NOTES: NOTES - When insufficient information is provided by the Bank for IEG to arrive at a clear rating, IEG will downgrade the relevant ratings as warranted beginning July 1, 2006. - ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness . 9. Lessons: There needs to be sufficient dialogue regarding the government’s overall macroeconomic situation in order to assess the government’s genuine willingness and capacity for external borrowing. 10. Assessment Recommended? Yes No 11. Comments on Quality of ICR: The reasons for the cancellation of the project are well articulated in the PCN; however, given that the disagreements between GOV and the Bank were so fundamental to the project design and implementation plan, it would have been helpful to give further details on how a misunderstanding of this magnitude could have persisted - unaddressed - throughout project preparation. Specific lessons could have been drawn on how to avoid this situation in the future. An exact cancellation or closing date for the project was not given in the PCN.