project appraisal document on a...

Document ofThe World Bank

Report No: 19065 KH

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF US$5 MILLION EQUIVALENT

TO THE

KINGDOM OF CAMBODIA

FOR AN

EDUCATION QUALITY IMPROVEMENT PROJECT

August 23, 1999

EASHDSoutheast Asia and Mongolia Country UnitEast Asia and Pacific Regional Office

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CURRENCY EQUIVALENTS

(Exchange Rate Effective August 23, 1999)

Currency Unit = RielRiel = US$0.000260

US$1 = 3844 Riel

FISCAL YEARJuly - June

ABBREVIATIONS AND ACRONYMS

ADB Asian Development BankDflD Department for International Development (U.K.)DOE District Office of EducationEMIS Education Management Information SystemEU European UnionLACI Loan Administration and Change InitiativeLCSC Local Cluster School CommitteeMEF Ministry of Economy and FinanceMoEYS Ministry of Education, Youth, and SportNCES National Committee on Effective SchoolingPCSC Provincial Cluster School CommitteePGMC Provincial Grants Management CommitteePHRD Policy and Human Resources Development Fund (Japan)PIU Project Implementation UnitPMR Project Monitoring ReportsPOE Provincial Office of EducationPPIU Provincial Project Implementation UnitSOE Statement of ExpendituresUNDP United Nations Development ProgrammeUNESCO United Nations Educational, Scientific, and Cultural OrganizationUNICEF United Nations Children's FundTAC Technical Advisory CommitteeVSO Voluntary Service Overseas (U.K.)

Vice President: Jean-Michel SeverinoCountry Director: Ngozi Okonjo-Iweala

Sector Director: Alan RubyTeam Leader: Christopher Thomas

Kingdom of CambodiaEducation Quality Improvement Program

CONTENTSPage

A. Project Development Objective .................................................... 2

1 . Project development objective ................................................... 22. Key performance indicators ................................................... 2

B. Strategic Context .................................................... 2

1 . Sector-related CAS goal supported by the project .................................................... 22. Main sector issues and Government strategy .................................................... 23. Learning and development issues to be addressed by the project .............................................34. Learning and innovation expectations .................................................... 4

C. Project Description Summary .................................................... 5

1. Project components ................................................... 52. Institutional and implementation arrangements .................................................... 63. Monitoring and evaluation arrangements .................................................... 7

D. Project Rationale .................................................... 8

E. Summary Project Analyses .................................................... 8

l .Economic .................................................... 82. Financial ................................................... 93. Technical ................................................... 94. Institutional ................................................... 105. Social ................................................... 106. Environmental assessment ................................................... 1 17. Participatory approach ................................................... 1 I

F. Risks......................................................................................................................................... 12

1. Critical risks ......................... 122. Possible controversial aspects ......................... 13

G. Main Loan Conditions ......................... 13

1 .Effectiveness conditions ......................... 132. Other ......................... 14

H. Readiness for Implementation ......................... 14

I. Compliance with Bank Policies ......................... 14

ii

Annexes

Annex 1. Project Design SummaryAnnex 2. Project DescriptionAnnex 3. Details of the Quality Improvement Grants ProcessAnnex 4. Estimated Project CostsAnnex 5. Outcomes of the Pilot Cluster Schools Grant ProgramAnnex 6. Financial SummaryAnnex 7. Procurement and Disbursement Arrangements

Table A. Project Costs by Procurement ArrangementsTable Al. Consultant Selection ArrangementsTable B. Thresholds for Procurement Methods and Prior ReviewTable C. Allocation of Loan Proceeds

Annex 8. Project Processing Budget and ScheduleAnnex 9. Documents in Project FileAnnex 10. Statement of Loans and CreditsAnnex 11. Country at a GlanceAnnex 12. Framework of Educational Development Activities and Assistance in CambodiaAnnex 13. Framework of Effective Schools in CambodiaAnnex 14. Framework for an Information System to Track Progress of Project Interventions

toward the Meeting of ObjectivesAnnex 15. Monitoring and EvaluationAnnex 16. Draft ToR for the National Committee on Effective Schooling

Map IBRD 28781

Kingdom of CambodiaEducation Quality Improvement Program

Project Appraisal Document

East Asia and Pacific Regional OfficeSoutheast Asia and Mongolia Country Unit

Date: August 23, 1999 Team Leader: Christopher ThomasCountry Director: Ngozi Okonjo-Iweala Sector Director: Alan RubyProject ID: PE-P059971 Sector: Human DevelopmentLending Instrument: Learning and Innovation Loan (LIL) Theme(s): Education

Poverty Targeted Intervention: [ ] Yes [x] No

Project Financing Data[ I Loan [x] Credit I[] Grant [] Guarantee [ ] Other [Specify]

For LoanslCreditslOthers:Amount (US$m): $5.0 (SDR) 3.7 million

Grace period (years): 10

Years to maturity: 40Commitment fee: standardService charge: 0.75%

- F --- inackg ;p*a n-: . j T-; beEf-In;SoureLoA Fug TotaGovernment 0.55 0.55IDA 3.14 1.86 5.00Other (specify)

Total: 3.69 1.86 5.55

Borrower: Kingdom of CambodiaGuarantor:Responsible agency: Ministry of Education, Youth and Sport

Estimated disbursements (Bank FYIUS$M):

Annual 0.7 1.5 1.3 1.3 0.2Cumulative 0.7 2.2 3.5 4.8 5.0

Project implementation period: 53 monthsExpected effectiveness date: October 29, 1999 Expected closing date: March 31, 2004Implementing agency: Ministry of Education, Youth and Sport

Contact person: Ou EngAddress: Project Preparation Unit, 169 Norodom Blvd., Phnom Penh, Cambodia

Tel: (855-12) 804-183 Fax: (855-23) 210-349 E-mail: ppuAbigpond.com.kh

OCS LIL PAD Form: January 5, 1998

A: Project Development Objective

1. Project development objective: (see Annex 1)

The objective of the project is to develop a demonstration model, shown to be effective for extension toother provinces, of a participatory approach to school quality improvement and performance basedresource management.

2. Key performance indicators: (see Annex 1)

By the end of the project:

* Schools participating in the program should increasingly demonstrate characteristics of effectiveschools (see Annex 13), and ultimately demonstrate improvements in student enrollment, attendance,student flows, and achievement (see Annex 14).

* Government should draw lessons from p;actice for policies to improve teacher motivation, lower thecost of education, reduce repetition and dropout, and increase the time available for learning.

B: Strategic Context

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)

Document number: 16255-KH Date of latest CAS discussion: 20 February 1997

The project supports the CAS objective to strengthen the human resource base by improving the qualityof education. This is the first Bank-funded project in the education sector in Cambodia, and we hope touse it to:a) demonstrate how to build an effective school system to lay the basis for a sustained, holistic renewal;b) engage in parallel dialogue about policy development with government and donors; andc) build capacity at the central ministry and provincial levels and evaluate the school-based initiatives.

In the longer terrn, we hope to:d) expand the project in basic education across a number of provinces, engaging an increasing number

of other donors;e) move up to secondary, repeating steps a)-d); andf) move down to pre-school and non-formal education.

2. Main sector issues and Government strategy:

The devastation of the education system in the 1970s resulted in lasting problems of capacity,organization, and finance for Cambodia's educational institutions. The issues span all sub-sectors - fromprimary education to higher education - and are well documented in the Asia Development Bank's 1996Education Sector Strategy', the report of the National Higher Education Task Force2, and the report on theevaluation of UNICEF/Sida Support for Basic Education in Cambodia.3

Challenges within the primary education system are illustrative of the whole:

Teachers and teaching working conditions. Teacher skills are weak, with 91% of primary teacherseducated only to the level of lower secondary school or less. There are 47 pupils per teacher and 60

'Asian Development Bank. Cambodia: Education Sector Strategy. Manila: Asian Development Bank, 1996.2National Higher Education Task Force. National Action Plan, 15 April 1997.3 Wheeler, Christopher and Oleg Popov. Synthesis Report on the Joint Evaluation of UNICEF/Sida Support forBasic Education in Cambodia. July 30, 1998.

pupils per classroom. Teachers' salaries are below a living wage for a typical family, forcing teachers tospend time working outside the school to supplement their income, rather than devoting more of theirtime to school activities or professional development.Repetition and dropout. Repetition and dropout are so high that it currently takes 19 student years toproduce a primary school graduate. Repetition rates generally decline throughout the primary cycle(from 41% in grade I to 8% in grade 5), while dropout rates increase (from 12% to 21% in the samegrades).Textbooks and materials. While significant progress has been made in developing and printing textbooksand teachers' guides, large numbers of schools still face shortages (only 58% of schools have grade Iteachers' guides and 34% of schools have grade 2 teachers' guides). Schools and teachers have noofficial budget for materials. Furthernore, few teachers understand how to make good use of books andteachers' guides.Time for learning. It is estimated that under the best of circumstances Cambodian children receive onlybetween 450 and 650 hours of instruction per year, well below the international norm of 900 hours.Costs andf inancin . It is common practice for schools to seek contributions from students andcommunities in order to cope with the shortage of funds for development and materials. In urban areasmany teachers engage in tutoring to supplement their incomes. However, the lack of a clear andtransparent framework for collecting, accounting for, and spending local resources works to thedisadvantage of the poorest members of the community and raises questions about the efficiency ofresource management.Management and administration. Management and administration remain very highly centralized despiteconsiderable progress over the last 3-5 years in building capacity at the sub-national level. Weaklinkages and rigidities in the system make it very difficult for capable local educators to pursue creativesolutions to local problems of timetabling, curriculum, teaching strategies, training, and materials.Donor coordination. There are many donors to education, however the sum total of the programs doesnot yet add up to a comprehensive framework for development of the sector, or even a completeframework of support for effective schools at the primary level. Contributions are overwhelminglyfocused on inputs (buildings and administration) and much less on issues related to school climate orteaching and learning processes (see Annex 12).

The Government's overall strategy, as reflected in its submission to the February 1999 ConsultativeGroup Meeting in Tokyo, is to: (i) strengthen the resource base for education by increasing the share ofgovernment expenditure on education, encouraging private contributions, and attracting more donor aid;and (ii) build capacity and enhance quality by spending on teacher training, curriculum development,strengthening planning and management skills, institutional restructuring, and developing cluster schoolsand resource centers. At the primary school level the MoEYS has listed 10 main priorities, includingamong others, improving the living conditions of teachers, promoting student centered learning,expanding the school day to 6 hours, and forging closer links between the curriculum and communitydevelopment needs.4

3. Learning and development issues to be addressed by the project:

The Government's 10 priorities for primary education represent a major step in the right direction, but inthemselves fall short of what international research suggests might be needed to make schools effective'(see Annex 13). The challenge during the course of this project will be to expand the Government'svision of effective schools by drawing on the best domestic practice and international knowledge. Asecond challenge is to develop an effective implementation strategy. Most of the government's

For more information , see MoEYS Circular #05, 1998.For a synthesis of effective schools research see: Heneveld, Ward and Helen Craig. Schools Count. Washington:

World Bank, 1996.

development proposals are for large centrally managed schemes. This project seeks to demonstrate that amore participatory strategy - one that seeks out partners at the school, community and localadministrative levels - would be more effective in achieving change at the school level than the morecentralized strategies currently being practiced. In this sense, the model of development proposed withthis LIL is a major innovation in the way affairs are currently managed in the MoEYS.

4. Learning and innovation expectations:

H Economic [ ] Financial [1 Technical [x] Institutional[ Social [ I Environmental [x] Participation [ ] Other

The model of a participatory approach to school quality improvement and performance based resourcemanagement that the LIL aims to develop should introduce the MoEYS to a more adaptive and lessmechanistic approach to management. One could compare and contrast these two management styles interms of how they deal with leadership and authority, communications, monitoring and evaluation, andstaffing.6 By modeling some of the major elements of an adaptive approach in the LIL we hope to createan opportunity for the MoEYS to experiment with a new, more participatory approach to managementand to improve the effectiveness of its operations.

Mechanistic and Adaptive Management Compared

Mechanistic Management Adaptive ManagementLeadership and Authority Authority Centralized Deconcentrated or decentralizedBasis of authority Position, information Status, technical knowledgeUse of formal rules Very high Moderate or lowLeadership style Command Collegial, participatoryCommunicationsFlow of communications Top-down Top-down and interactive, with

external inputManagerial priority Very low Moderate-highContent Directives and inquiries Professional guidance, inquiries,

evaluationPurpose Control Assessment, learning, adjustment,

redirectionStyle Formal and consultative Formal, informal, and interactiveOrientation toward environment Closed Open, client orientedCoordinationForm of coordination Command Negotiated authority, plan,

facilitation, mutual adjustmentInstruments of exchange Allocated budget Negotiated budget, goal attainment,

information, prestigeNeed for commitment Very low HighUse of persuasion Very low HighUse of incentives Very low HighImportance of "boundary Very low Highspanners"

6 See: Rondinelli, Denis, John Middleton and Adriaan Verspoor. Planning Education Reforms in DevelopingCountries: The Contingency Approach. Duke Press Policy Studies: Durham and London, 1990.

Mechanistic and Adaptive Management Compared

Mechanistic Management Adaptive ManagementMonitoring, Control, andEvaluationPurpose of monitoring Control Improve performanceControl Ex-ante Mixed ex-ante and ex-postFocus Work, outputs Targets, performanceUse of top-down orders Very high Moderate-lowUse of job descriptions Very detailed, emphasize Moderately detailed, emphasize

activities activities and objectivesUse of professional self-control Very low Moderately highUse of persuasion and advice Very low Moderately highUse of performance appraisals Top-down, non-participatory Selective participation, peer review,

interactiveStaff ngBasis of jobs Functional specialization Functional specialization, objectivesUse of professional development Very low Moderately highIncentives Limited, monetary Monetary, professionalEmployee motivation Job security, loyalty to Loyalty to organization, professional

organization status, service to beneficiariesUse of employee self control Very low ModeratePerformance measures Conformance to rules Rules and performance

C: Project Description Summary

1. Project components: (see Annexes 2 and 3 for a detailed description and Annex 4 for a detailed costbreakdown)

indicative Bank- J /' *Component Sector GCdts % of -financing fBank-

. : . : jS} - Toal (U$$ME finaiinQuality Improvement Grants EE 3.95 71% 3.94 79%Program: (i) animator services;(ii) provincial grants managementcommittee; (iii) grants to schoolclusters; and (iv) monitoring andevaluation

Institutional Strengthening: EE 0.72 13% 0.21 4%(i) support for the NationalCommittee on Effective Schooling;(ii) policy studies (incl. grade 4exams and decentralization);and(iii) operational support forprovincial and district educationoffices.

Project Management EE 0.88 16% 0.85 17%

Total Project Costs 5.55 100% 5.00 100%

2. Institutional and implementation arrangements:

Project Management

Implementation period. The LIL will be implemented over four years. The expected starting date isabout October 29, 1999; the completion date is September 30, 2003; and the closing date is March 31,2004. The project will be reviewed at mid-term to assess progress against the development objective andto make any necessary adjustments in the design.

Executing Agencies. The project will be implemented at the national, provincial, district and schoollevel. The Ministry of Education, Youth and Sport (MoEYS) will have overall responsibility for theimplementation of the project. The MoEYS will establish a Project Implementation Unit (PIU) to assistin the implementation of the project. The PIU will coordinate relations with donors and governmentbodies, facilitate technical assistance, provide training, and carry out the project implementation, financialand accounting monitoring and evaluation responsibilities.

At the provincial level a Provincial Project Implementation Unit (PPIU) will be established to coordinateprovincial level project activities, including the training, coordination and management of animators, andimplementation and monitoring and evaluation of school cluster grants. Each province will also establisha Provincial Grants Management Committee (PGMC) that will review all the grants proposals and awardgrants to school clusters based on established criteria in the Grants Operational Manual.

Animators will be based at the district level and given the responsibility for animation services to assistthe school clusters in formulating a vision for effective schools, developing a cluster improvement planand writing a grant proposal for submission to the PGMC. The animator will also provide guidance onthe implementation of the approved grants and monitor and evaluate grant outcomes.

Project Oversight and Policy Guidance. At the national level there will be a National Committee onEffective Schooling (NCES) (see Annex 16 for draft ToR). The NCES will provide overall guidance onpolicy and planning to the project and advise the MoEYS on how to use the lessons learned from theproject to improve resource management processes and to develop the MoEYS vision of effectiveschools. For the purposes of providing this advice to the MoEYS, the NCES will formally report lessonsto the Annual Education Meeting. The NCES will have representation of major stakeholders that provideresources for primary education and will meet under the general Chairmanship of the MoEYS.

Project Implementation and Procurement Plan. The PPU has provided a project implementation andprocurement plan and timeline that details all expected project activities. The PIP is in the project files(see Annex 9).

Accounting, financial reporting, and auditing arrangements.

A Financial Management Assessment was carried out by a Bank Financial Management Specialist. Heconcluded that because the Government departments in Cambodia do not maintain general ledgeraccounts at line ministry level there are no accounting systems that can be assessed for the purpose ofOP/BP 10.02. Agreement was reached to install an accounting system acceptable to IDA. Details of thissystem and the financial management arrangements, disbursement, special account operations, and auditarrangements are in Annex 7.

3. Monitoring and evaluation arrangements:

The PIU will be responsible for reporting to MoEYS and IDA on issues related to the management and

implementation of the project. Key inputs into the PIU's monitoring system will include reports fromPPIUs, animators, and Local Cluster School Committees (LCSCs) on the progress of grants and other

provincial level activities. Financial reporting will be carried out monthly; grants implementationprogress will be assessed at the end of each funding tranche; and project monitoring and evaluation at the

provincial level will be carried out both on an ongoing and annual basis. Consolidated national-level

reports will be produced on a quarterly and annual basis7 (see Annex 15 for additional details).

The learning objective of the loan is to develop a denmonstration model for school quality improvement

and performance based resource management. The intended goals are that:

* schools participating in the program increasingly demonstrate characteristics of effective schools, and

ultimately improvements in student enrollment, attendance, student flows and achievement; and

* Government should draw lessons from practice for policies to improve teacher motivation, lower thecost of education, reduce repetition and dropout, and increase the time available for learning.

Three basic questions for evaluation flow from these goals and objectives:

* Did the grants result in the desired outputs and outcomes at the school level? The economic analysis

for the project (see Annex 14) would test the association between grant interventions and outcomes atthe school level, as measured by enrollment, girl's enrollment repetition, dropout, and grade 4

learning achievement. The analysis would also allow one to compare the cost of achieving a given

percentage improvement on any of the performance indicators (over and above any improvementoccurring nationally without the benefit of the grant interventions) across different interventions triedunder the project.

* Were policies better informned as a result of learning from practice? The project will depend on the

observations of the PIU, the National Committee on Effective Schooling and ongoing IDAsupervision for the qualitative observations and data necessary to make these judgements. This

question will be the subject of an evaluation at project mid-term and completion.

* Did the grants process function as intended and achieve the desired results (e.g. develop a functioning

model of performance based funding, build capacity and motivation at the cluster, provincial and

Procedures for Grants Progress Reporting: The animators should keep notebooks noting issues, progress andoutcomes of cluster activities supported by the grants program. At the end of the first funding tranche, theanimators will compile and submit grants implementation progress reports to the PPIU that provide information onimplementation progress, expenditures, project outputs, and problem areas. At the end of the second (final) tranche,district animators will produce grant monitoring and evaluation reports which will summarize the outputs,outcomes, impressions and lessons learned of strengthening school effectiveness of each grant funded by theproject. These reports will be submitted to the PPIU. At the end of the project cycle year, the animators will tneetwith the PGMC and the DOE and POE officials to discuss the outcomes of the individual projects and lessonslearned. These discussions, and especially the lessons teamed from the implementation of the grants, will form thebasis of the PPIU-produced annual monitoring and evaluation report which will be the primary project-related inputinto the National Committee on Effective Schooling (NCES) and the Annual Education Meeting. The PIU willprepare a quarterly consolidated progress report on the overall implementation of the project for review by theNational Committee on Effective Schooling and the World Bank task team leader. The final quarterly consolidatedprogress report of each year will constitute the annual report of project progress which will consolidate data,observations and recommendations from the full project year. This will be submitted to the MoEYS, the NCES and

the World Bank.

national levels, encourage suppliers of training and materials to cater to schools needs)? As is thecase in the previous question, the project will depend on the observations of the PIU, the NCES andIDA supervision missions for the judgements needed to answer this question. The observations andreport of the district animators will be critical in providing information to answer this question. Likethe previous question, this will be the subject of an evaluation at project mid-term and completion.

In order to aid in the process of project evaluation, and especially in answering the three questions citedabove, the project will support an international consultant for a month each year to work with projectimplementation units and district animators to monitor and analyze the progress of the project over thelength of its implementation.

D: Project Rationale:(This section is not to be completed in a LIL PAD)

E: Summary Project Analysis: (detailed assessments for those analyses applicable to LIL are in theproject file, see Annex 9)

1. Economic: (supported by Annex 14)

[x] Cost-Benefit Analysis[x] Cost Effectiveness Analysis[ ]Other (specify)

The development objective of the loan is to develop a demonstration model (shown to be effective forextension to other provinces) of a participatory approach to school quality improvement andperformance-based resource management. The key performnance indicators used to evaluate the successof the model include improved enrollment rates, better student flow statistics and higher learningachievement scores in basic education. To achieve these outcomes, schools participating in the projectshould increasingly demonstrate the characteristics of "effective schools" as identified in internationalresearch on the subject (Heneveld et al., 1996). These include: (a) evidence of essential supporting inputs(e.g., parent and community support, support from the system, adequate supplies of books and materials),(b) the presence of the necessary enabling conditions (effective leadership, capable teachers, adequatetime in school, sufficient school-level flexibility and autonomy), (c) a conducive school climate (goodorder and discipline, an organized curriculum, positive teacher attitudes, high expectation of students,adequate time on task) and (d) good teaching and learning processes (effective teaching strategies,frequent homework, student assessment and feedback, good attendance and high continuation andcompletion). The Cambodian MoEYS has recently set out ten priorities for basic education, consistingof: (1) increased availability and use of teaching aids, (2) concentration of more experienced teachers ingrades I and 2, (3) increased participation of teachers in Thursday "technical group meetings" (in-serviceteacher training), (4) a longer (6-hour) school day, (5) encouragement of age-appropriate schoolparticipation, (6) stronger community links, (7) improved living conditions for teachers,(8) encouragement of child-centered learning methods, (9) regular supervision of schools, and (10)increased access for disadvantaged children. While there is already considerable overlap (see Annex 13)between the Ministry's ten priorities and the international findings on effective schools, an explicitsecond-order objective of the loan is to expand the Government's understanding of and vision for basiceducation.

An economic analysis of the demonstration model would involve a comparison of changes in enrollmentrates, student flows (repetition and dropout) and achievement test scores in the school clusters supportedunder the project with comparable changes in a control group of school clusters. The logical controlgroup would be school clusters in the same three provinces (Takeo plus two others to be decided) thatwill not be supported by the project but will receive only the regular government financial and

administrative support. However, because all clusters in the three provinces are likely to receive some

.level of support under the project, the exact amount to be decided on a competitive basis, it would be

impossible to construct a truly random control group without purposefully restricting the participation of

school clusters in the three provinces. For this reason, the analysis will consist of a comparison of the

three provinces supported under the project with progress over the same period for the education system

as a whole. The educational outcomes tracked here (enrollments, student flows and learning

achievement) will be affected, not only by the interventions supported under the project, but by other

factors as well, for example, by initial teacher and administrative capacity, which can differ very much

across provinces in Cambodia. Takeo is in many respects (by Cambodian standards) an advantagedprovince -- and has been chosen for inclusion in the pilot program for this very reason (to facilitate the

development of a good demonstration model), but the extension of the program to two additional pilot

provinces would be expected to result in more diversity in terms of management capacity and poverty.

Moreover, even within Takeo, institutional capacity varies significantly.

The framework for the economic analysis will begin with a simple matrix such as the one presented in

Annex 14. Outcome indicator information will be made available on an annual basis by the EMIS Center

of MoEYS' Department of Planning and the Grade 4 achievement exam supported under this project.

Project intervention data will be assembled by the district project animators and collated by the three

Provincial PlUs.

A simple cost-effectiveness analysis can be carried out directly with the information in the matrix. The

cost of achieving a given percentage improvement on any of the performance indicators (over and above

any improvement occurring nationally without the benefit of the project interventions) can be computed

and compared across different interventions tried under the project.

A cost-benefit analysis could be carried out by introducing additional information on the economic valueof unit improvements in the values of each of the performance indicators. The required market weights

are not readily available, but rough estimates are possible. The value of increased enrollments and

reduced student drop-out which result in more children completing the full six years of primary educationcan be estimated by comparing the productivity of rural workers with and without this educational

credential. Similarly, the value of higher examination pass rates can be estimated by the increased

productivity on the part of those with higher learning achievement levels. A rough estimate of the value

of increased female enrollments can be obtained by measuring the increased health and reduced mortality

and, as a result, reduced medical costs and increased productivity on the part of children who are raised

by more educated mothers. Finally, the value of reduced repetition can be estimated by the reduced

social (private plus fiscal) costs of students who pass more quickly through six years of education, i.e., in

fewer years on average, thereby saving on what is spent per school completer.

2. Financial: (for LIL, enter NPV=US$ Million; FRR= %data if applicable or 'NotApplicable. See also Annex 6)

Not Applicable

3. Technical:

The project's principal technical challenge is to align the vision of effective schools in Cambodia with the

best of international and domestic practice. This "vision" is important because it helps to define the work

of the animators and it helps to inform policy directions (See Annex 2: Detailed Project Description). As

noted above (and in Annex 13), the Government's 10 priorities for primary education represent a step in

the right direction, but in themselves fall short of what international research suggests what might be

needed to make schools effective. The impressive performance of the pilot program for school qualityimprovement grants that was run under the PHRD grant makes the team confident that the participatoryprocess and dialogue generated as a result of the project will considerably advance technical standards.However, key to the continuing learning process will be the use of technical assistance to inject new ideasinto the system, careful monitoring and evaluation of grants by the animator service to determine whatworks to improve schools. The project staff will need to carefully analyze and transmit that informationto key committees such as the Provincial Grants Management Committee and the National Committee onEffective Schooling in order to create a "feedback loop" needed to improve policy.

4. Institutional:

Executing agencies. This is the first education project for the Kingdom of Cambodia. In order to dealwith the lack of institutional structures for implementation of IDA-supported projects, a PHRD grantpiloted the project concept in Takeo Province and began to develop the required institutions to supportthe IDA-financed project. Based on the experience of the pilot program, the appraisal mission concludedthat the national, provincial, district and school level organizations have been able to build appropriateorganizational, managerial and communication structures to implement IDA projects. The capacity of theimplementers was strengthened through intensive training programs and continuous site-visits to the pilotarea. However, there are still some issues that the project must pay special attention to:

* The implementation capacity of new districts and provinces as they are phased into the project. Asthe project expands to all districts in Takeo province and two more provinces are phased into the LIL,there is a risk that their institutional capacity will be strained by the demands of projectimplementation. The project design has taken this into account and has incorporated continuoustraining at the provincial and district levels for implementation staff. IDA supervision missions willcarefully assess the institutional capacity of new implementation units and make adjustments to thetraining programs as needed.

* Coordination between NCES and school cluster activities. The appraisal mission reviewed amechanism for feeding the results and lessons learned from the school based grant activities back tothe national level policy decision makers. The IDA task team is assisting the government to create astructure that will feed information back to the national level policy makers. The task team willmonitor this project activity closely through the PIU and during supervision.

5. Social:

There was considerable debate during identification about project targeting. The Government initiallyproposed a project which would direct resources toward areas which have to date received little else inthe way of donor financing. It discussed with the identification team: (a) the alternative of directingresources - especially in the experimental LIL phase - to areas where some demonstrated level ofcapacity to implement the project exists and where the project could be regularly monitored; and (b) theneed to focus the small amount of money on a few objectives in a relatively concentrated area.

The Government and the IDA agreed that under the initial IDA credit, project activities would be concentratedin just one to three provinces that have already, usually with donor support, developed school clusters.Subsequent loans would permit expansion to other provinces, building on the experience acquired in this firstLIL. The program would thus expand out from an area from which:

* The program can be monitored closely as animation methods and grant procedures are developed;and

* TA can be easily provided for training, until such a time that core services develop to stage wheresupply is available in more remote provinces

1

The program would be expanded into provinces based on the following criteria:

* Accessibility for monitoring and provision of TA* Availability of potential animators* Security* Capacity of school clusters* Management capacity at the provincial level* Expressed interest by the provincial staff and clusters in participating in the program

* Proximity to the original province (to allow efficient provision of animator and TA services and to

allow clusters to learn from one another)

The project will begin by serving Takeo province and expand to two additional plains provinces. As a

condition of negotiations, the Government will develop a proposal for selecting additional provinces to

participate in the project based on the above criteria. The Government will propose to the IDA weights

that are to be assigned to the criteria. The plains provinces will then be evaluated against the agreed

selection procedures and final selection completed by January 2000.

To promote equity of grants allocation across the province and clusters the project would calculate a single per

student per year expenditure estimate based on the overall amount of grant money available and the number of

student years in the project in the selected provinces.8 Each province would be provided with a notional

allocation for grants over the life of the project, calculated by multiplying the number of student years in the

project by the per student per year expenditure. In turn, each cluster would have a notional allocation based

on the same formula. The first grant to a cluster would not exceed 25% of its notional allocation. No

subsequent grant would exceed 40% of its notional allocation, and the total of all its grants would not exceed

100% of its notional allocation. Grants would only go to those clusters that manage to put forward proposals

determined to be feasible and to have a good chance of success (see criteria for grants selection in the

Operational Manual). A cluster that does not manage to do this, therefore, will not make use of all of its

notional allocation. To decrease potential disparities, animators will give extra technical assistance to those

clusters that wish to participate in the program but find it difficult to develop acceptable proposals.

6. Environmental assessment: Environmental Category [ ] A [ ] B [x] C

The project is not expected to have any significant effect on the environment.

7. Participatory approach:

a. Primary beneficiaries and other affected groups:

The primary beneficiaries of the grants will be students and their families, teachers, and school managers.

The mechanisms for participation in this project involve these beneficiaries as collaborators in developing

quality improvement grants.

b. Other key stakeholders:

Other key stakeholders include MoEYS staff at the national, provincial and district level, NGOs and

donors. MoEYS staff collaborate in designing and assessing grants, while NGOs and other donors play a

key consultative role through the National Committee on Effective Schooling and support to provincial

management.

' Student years in the project will equal the number of students (as reported in the 1998/99 EMIS statistics)

multiplied by the number of years the province is scheduled to participate in the project. Adjustments will be made

to account for the rate at which provinces are phased into the project.

F: Risks

1. Critical Risks: (reflecting assumptions in the fourth column of Annex 1)

From Outputs to ObjectiveAssumes the availability of a pool of qualified S The project will include significantpeople who can be trained to become effective resources for training of animators.animators in a relatively short period of time. A parallel project with DflD will

provide VSO volunteers to build thecapacity of animators.

Government support for operational budgets at S Key staff will be supported by thethe provincial and district levels has project. Counterpart funds will betraditionally been very weak. dedicated to increasing operational

budgets for other staff at theprovincial and district levels.However, the timely availability ofcounterpart funds for donor projectshas been a consistent problem inCambodia. IDA is engaged in adialogue with the MEF on thisissue.

Assumes remuneration at such a level that key H Following the practice of moststaff are motivated to perform to the best of development agencies, the projecttheir abilities. will pay supplements to key staff,

according to regulations set forth bythe MEF with the IDA and otherdonors.

Assumes availability of goods and services for M The provincial grants committeeschools to access or purchase (e.g. trainers, should adjust the number ofbooks, materials) proposals approved based on

availability of goods and servicesand the ability of the province andprivate suppliers to organizedelivery.

Assumes that constraints on improving quality M IDA will engage in a parallelat the school level can be overcome through a dialogue with Government on keycombination of participatory processes at the constraints to improving quality atcluster level and guidance and funding from the the national level.MoEYS.

~ ~ ~ ~ U& ,. , ... ,_Rk

From Outputs to ObjectiveThe proposal assumes willingness among key S There has been frequent turnover ofactors to support what, for the MoEYS, is a senior staff in the MoEYS and this

radically new change strategy, replacing an is expected to continue with theinstitutional culture which demands rigid proposals to lower the mandatory

conformity with one that tolerates and promotes age of retirement to 55. The project

diversity. has tried to anchor operations at theprovincial level where staffturnover is slower and among abroad range of stakeholders.

Assumes a willingness to systematically gather N Lessons should be presented in

lessons from practice and to use findings to Khmer in an easily accessible and

inform policy. There may be occasional readable format, and should be the

conflicts with bureaucratic or political decision subject of structured discussions

making processes. between policy makers and projectstaff and between IDA staff andMoEYS staff during supervision.Perhaps most importantly, theproject promotes discussion of keylessons through existing forums,such as the Annual EducationMeeting and the Cluster SchoolCommittee structure.

Overall Risk Rating M/S =

Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk)

2. Possible Controversial Aspects:

Selection of provinces that will participate in the project is a potential subject of controversy. MoEYS

leaders are sensitive to the need to share resources but also to balance this with concerns for good

management at the local level and to increase the chances for successful implementation. IDA and the

Government will agree on a transparent framework for selection of provinces by negotiations, and the

government will be given a generous amount of time (until January 2000) to build consensus among key

stakeholders on the selection procedures.

G: Main Loan Conditions

1. Conditions of negotiations and effectiveness

* Conditions of negotiations

* Final agreement on the ToRs for the key positions in the PIU (National Director, Chief

Technical Advisor, Financial Officer).* Agreement on the weighting of selection criteria for 2 provinces that will enter the project in

during second year of implementation.* Formal commitment by the Government (MEF ) for the provision of counterpart funds.

* Conditions of effectiveness

* Approval by IDA of an operational manual for the grants program and of the projectimplementation plan.

* PIU has been established, and the national project director, chief technical advisor andfinancial officer duly appointed.

* Deposit into the project account of the first project year's counterpart funding.

2. Other: (classify according to covenant types used in the Legal Agreements)

Financial covenants:

* Submission to IDA by December 31 of each year of an audit report covering the previous fiscal year.

Implementation covenants

* Submission to IDA by April 30 of each year of a project work program for the following project year(July-June).

* Submission to IDA by December 31 of each year of a project progress report covering the previousfiscal year (July 1- June 30).

* To make available, on a timely basis, counterpart funding for project management and for operationalbudgetary support to project provinces.

H: Readiness for Implementation[ ] 1. a) The engineering design documents for the first year's activities are complete and ready for thestart of project implementation.[x] 1. b) Not applicable.[ ] 2. The procurement documents for the first six month's activities are complete and ready for the startof project implementation; and a framework for agreement on standard bidding documents that will beused for ongoing procurement during the project has been established.[x] 3. The LIL's implementation plan has been appraised and found to be realistic and of satisfactoryquality.[ ] 4. The following items are lacking and are discussed under loan conditions (Section G):

I: Compliance with Bank Policies[x] 1. This project complies with all applicable Bank policies.[ ] 2. The following exceptions to Bank policies are recommended for approval. The projectcomplies with all other applicable Bank policies.

[signature]

Team Leader: Christopher Thomas

[signature]Sector Director: Alan Ruby

[signature]! Country Director: Ngozi Okonjo-Iweala

Annex 1: Project Design Summary

Kingdom of Cambodia: Education Quality Improvement Program

Hirarchy of Objectiv Key Pert ance Monitoring and CrWiti Assumptions____________ Idje$or R>UatiOII

Sector-related CAS Goal: Sector Indicators: Sector / Country Reports: (from Goal to Bank Mission)

Strengthen the human Greater educational EMIS and examinations unit The Bank's mission is to

resource base by improving achievement of the school data. reduce poverty. This

the quality of education. age population, evidenced project will contribute to

by improved enrollment and this goal to the extent that:Follow-on Development flow statistics in basic (i) improving the quality of

Objective: education and improved education improves

Build a more adaptive achievement scores (see productivity; (ii) improving

management structure in the Annex 14). productivity results in

MoEYS in which the higher earnings and

Ministry: (i) forges stronger ultimately to a reduction in

partnerships at the local poverty; (iii) improving the

level to improve school quality of education

operations; (ii) manages contributes to better health,

resources according to reduced rates of population

performance; (iii) increases growth, and more even

flexibility in decision income distribution, and

making by devolving consequently to a reduction

authority to the provincial in poverty; (iv) investments

and school level; (iv) uses in basic education have

lessons from practice to particularly high social

improve policy; and returns.

(v) promotes greatercoordination of donor inputsto support effective primaryschools.Project Development Objective: Outcome I Impact Indicators: Project Reports: (from Objective to Goal)

Develop a demonstration Schools participating in the Project monitoring reports The philosophy behind the

model, shown to be program should increasingly of outputs and outcomes, project implies a cultural

effective for extension to demonstrate the making use of available shift in the relationship

other provinces, of a characteristics of effective EMIS and examinations between the MoEYS and

participatory approach to schools (See Annex 13). data. school clusters. It

school quality improvement Clusters should begin to encourages the MoEYS to

through performance based realize improvements in Mid-term and completion be more "adaptive" and less

resource management. student enrollment, evaluations, drawing on "mechanistic" in its

attendance, student flows, MoEYS policy documents. management style. It also

and achievement. encourages the MoEYS tosupport bottom-up,

Government draws lessons participatory program

from practice for policies to implementation as opposed

improve teacher motivation, to more top-down,lower the cost of education, command style program

reduce repetition and implementation.

dropout, and increase thetime available for learning.

Annex IPage 2 of 4

Output from each component: Output Indicators: Project Reports: (from Outputs to Objective)The primary outputs of the Project mid-term andLIL will be (i) an completion evaluationsassessment of the viabilityof a participatory approachto school qualityimprovement and(ii) lessons from practice forkey policy issues.

Effective extension service Skills and work habits: A Evaluations of the skills of Assumes the availability ofgroup of resourceful and animators and the quality of a pool of qualified peopleeffective animators working their work by lead TA, who can be trained toto support quality MoEYS management and become effective animatorsimprovement programs in NCES. in a relatively short periodthe majority of clusters in of time.participating provinces

Assumes remuneration atProcesses: Animators learn such a level that key stafffrom their work and use are motivated to perform tolessons to further develop the best of their abilities.their animation processesand to inform policymakers.

Schools have financial and Outputs: School clusters Project monitoring reports Assumes availability ofhuman resources needed to participating in the program of outputs and outcomes, goods and services forimplement quality demonstrate more making use of available schools to access orimprovement programs. characteristics of effective EMIS and examinations purchase (e.g. trainers,

schools (see Annex 13). data. books, materials)

Capacity: By contrast with Evaluation of the quality of Assumes that constraints onthe baseline proposals proposals by MoEYS improving quality at theprepared during the pilot personnel and external school level can beprogram in 1998, grant evaluators. overcome through aproposals and performance combination of participatoryshow evidence of improved processes at the cluster levelability of cluster participants and guidance and fundingto define their own quality from the MoEYS.improvement priorities,design action plans torealize those priorities, andmobilize all availableresources inside and outsideof the province to achievetheir development goals.

Annex I

Page 3 of 4

Uierarcby of Objectves Crltkf.i Assusptions

MoEYS services are geared Service improvement: EMIS reports. The proposal assumes

toward supporting informed EMIS data is available at the willingness among key

decision-making and school cluster level and Project to mid-term actors to support what, for

program implementation at utilized for planning and evaluation to examine the MoEYS, is a radically

the sub-national level. evaluation purposes. changes in the policy new change strategy.

process and the extent to replacing an institutionalProcesses: (a) Establish which field level culture which demands rigid

model methods of policy participants feel and conformity with one that

fornation and supervision demonstrate a sense of tolerates and promotes

that are more responsive to empowerment to take diversity.

stakeholder experience, by responsibility for their ownstrengthening participatory development. Government support for

mechanisms at each level operational budgets at the

(national advisory board, provincial and district levels

national committee on has traditionally been very

effective schooling, weak.

provincial grantscommittees, districtcommittees, clustercommittees, PTAs);(b) MoEYS regulationsinclude provisions forincreased devolution ofauthority for decisionmaking for school andclassroom management.

Qualitative change: Greatervariance evident in schoolmanagement practice, e.g.with regard to timetables,curricula, extra-curricularactivities, reading andinstructional materials, andschool and classroomappearance.

Policies show evidence of More flexibility noted in Review of education policy Assumes a willingness to

greater sensitivity to the national policies on such and practice in mid-term systematically gather

realities of field key issues as school hours, and completion evaluations. lessons from practice and to

performance and institutional management of use findings to inform

stakeholder vision. fees, curriculum, and policy. There may be

promotion policies. occasional conflicts withbureaucratic or politicaldecision making processes.

Annex IPage 4 of 4

Project Components/Sub- Inputs: (budget for each Project Reports: (from Components to Outputs)components: component) Quarterly project reports1. Quality improvement 1. $3.95 million Disbursement reportsgrants program 2. $0.72 milliona. Staff and train provincial 3. $0.88 millionanimator services

b. Support for theProvincial GrantsManagement Committeec. Quality improvementgrants for school clustersd. Monitoring andevaluation2. Institutionalstrengthening:a. Support for the NationalCommittee on EffectiveSchoolingb. Policy studies, includingdevelopment of a grade 4achievement test and a studyto propose a framework fordeconcentration of authorityfor decision making.c. Operational support forprovincial and districteducation offices.3. Project management

Annex 2: Project Description


By Component:

Project Component 1 - Quality Improvement Grants Program - US$3.95 million

The Quality Improvement Grants Component is the centerpiece of the LIL. The goal is to establish aprocess in which a MoEYS policy both supports and is enriched by practice at the school level. Thegrants process begins with development of a vision for effective schools, based on input form a variety ofexperts within the MoEYS, key stakeholders and practitioners. A set of animators with that vision inmind, then works with community and school cluster leaders to engage them in a discussion abouteffective schools, in identifying problems and solutions in their own schools, and in developing clusterimprovement plans as a basis for preparing grant proposals. Those proposals are reviewed by a grantscommittee to ensure that they are in line with national priorities and informed by best practice. Thecommittee provides a preliminary list of approved proposals to the provincial directors who then work outa program of support to schools and adjusts the number of proposals to be approved based on capacityconstraints (e.g. for the number of teacher trainers available). Once final decisions are made, clusters arenotified that their grants have been approved and funds are distributed in an open and transparent manner.Animators return to help clusters implement their programs and to assist in monitoring and evaluation.Their lessons from practice are systematically gathered and fed back into further development of thevision of effective schools and improvement of their animation process. Details on steps in the processmay be found in Annex 3 and in the Operational Manual for Education Quality Improvement Grants andthe Animators Manual.

Grants Process

MoEYS Policy

Define vision for effective schools

Animation processv

Grants reviewv

POE support plan

VGrants award

VImplementation

V.Monitoring and evalustion

Lessons

Annex 2Page 2 of 7

In parallel to the this LIL, DfID will support up to 12-15 Voluntary Services Overseas (VSO) volunteersto help build the capacity of animators. The volunteers will be experienced teachers or teacher trainersand will help animators to broaden their vision of effective schools, to develop the animation process, andto monitor and evaluate grants. Each volunteer will support approximately three animators. Mostvolunteers will be based in the districts, however in each province one volunteer may be based at theprovincial level. In addition to supporting animators in neighboring districts, that volunteer will workclosely with the PPIU on issues of training, monitoring and evaluation, and team building within theanimation team.

The component will provide funds to (i) staff and train animator services in participating provinces,including provincial teams consisting of a Technical Assistant, Animator Coordinator, Accountant, anddistrict-based Animators in the ratio of approximately one for every five school clusters; (ii) support for aprovincial grants management committee in each province that will meet annually to evaluate grantproposals against agreed criteria and periodically to assess progress of grants (honoraria for the PGMCare to be funded by Government counterpart contributions); (iii) quality improvement grants to schoolclusters (provinces are also eligible to apply to the PGMC to use up to 5% of grant funds for provinciallevel activities in support of cluster grants, e.g. for the training of trainers); (iv) and training, monitoringand evaluation funds for activities related to the professional development of animators and to assist inthe monitoring and evaluation of grants by other officials.

Project Component 2 - Institutional Strengthening - US$.72 million

Institutional strengthening/capacity building of Cambodia's education sector is an important secondaryobjective of the LIL (the primary objective being the development of a participatory approach to schoolquality improvement which could, if effective, be replicated throughout the country). Institution buildingwill be a by-product of the grants program itself, but a small Component 2 will be included in the projectand devoted explicitly to this objective. Component 2 will comprise the following sub-components: First,the Technical Advisory Committee, established during the PHRD phase (preparation) of the project toserve as a steering and oversight body for the project, will be provided with expanded terms of referenceand transformed into a sub-committee of the National Committee on Effective Schooling (NCES) (seeAnnex 16). (Honoraria for the NCES are to be funded from Government counterpart contributions.)Second, the process of conducting policy studies on key policy issues in the education sector, begununder the PHRD, will be supported under this component of the project on an as-needed basis. Duringproject preparation, studies were carried out on the following topics: the development and current statusof school clusters in Cambodia, EMIS support needs for school clusters, a manual for administration ofthe grants program for quality improvement in school clusters, teacher employment models in othercountries and their relevance for Cambodia, and individual studies on incentives for primary teachers,local school accountability and effective teaching hours in Cambodia. Two studies planned currently forfinancing under the project are (1) the development of a national learning assessment examination to beadministered on a sample basis at the Grade 4 level, and (2) a review of school decentralizationexperience, both in Cambodia and in other countries, and specification of the necessary institutional andlegal framework which might make further decentralization both possible and effective. Third, while theproject provides support for animators based at the district level (under component 1) it also recognizesthe critical role of other provincial and district education staff in providing support to schools. Ittherefore provides for a separate sub-component to enhance the operational budgets of provincial anddistrict offices. This sub-component will be funded fully out of counterpart funds.

Annex 2Page 3 of 7

National Committee on Effective Schooling (NCES).

A National Committee for the Support of Effective Primary Schools (NCES) will be organized with theprincipal goals of: (a) providing policy guidance and technical advice on the implementation of the LILproject, and (b) ensuring that the lessons learned from the management of the LIL project are effectivelytransmitted to Cambodian policy makers. (See Annex 16 for draft TOR.) The long-term goals of theNCES could well be expanded to embrace other sub-sectors (pre-school, non-formal education and lowersecondary) to cover the whole sector and to other provinces. This Ministry committee will deal withissues of policy, planning, process and budget functions for the effective operation of primary schools.The committee will include representation from stakeholders involved in providing resources for primaryeducation, and will meet under the general chairmanship of the Ministry.

The functions of the NCES will be to: (a) provide annual inputs to the Annual Education Meeting onimprovements in primary education and for the development of the National Vision of Effective Schools;(b) use the lessons learned from the management of the LIL project to improve the resource managementpractices within the Ministry, between donors, and between donors and the Ministry; (c) advise theMinistry on the management of the LIL project; and (d) assist IDA in monitoring the implementationprogress of the LIL-supported project.

Grade 4 learning assessment examination.

In order to provide one measure of the impact of the project's interventions, it will be important to be ableto assess whether or not there have been improvements in pupil learning achievement in schoolssupported by the project. The project will therefore support the development and implementation of agrade four pupil learning achievement test.9 The test, limited to Khmer and mathematics, will attempt tomeasure pupil literacy and numeracy at the end of each year of the project and will cover all project-supported. In order to measure the impact of the project on clusters supported by the project, a sample ofnon-project-supported clusters will also be included in the testing process as a control group.

The test materials will be developed by various units within the Ministry of Education Youth and Sport(MoEYS) under the leadership of and with technical advice from the Cambodia Australia NationalExaminations Project (CANEP). Other units that should have an important role in the development of thefourth grade test will be the Departments of Primary and Pre-School Education, Secondary Education,Teacher Education and Pedagogical Research and other units as are appropriate. It is expected thatCANEP, and especially the Cambodian counterpart staff who have recently taken part in the developmentof the national Grade Nine and Grade Twelve examinations, will take the lead in designing the test. Thetest will be administered at the school level by the district animators in the project-supported provincesand by the Provincial Inspectors in the selected non-Project provinces.

Plans call for the test to be administered in May of 2000, 2001, 2002 and 2003. Presented below is arough schedule for the development, preparation, production, and administration of the test and theanalysis of the results. The results from the project-supported clusters will be used by the animators intheir discussions with school clusters at beginning of the proposal cycle in the year 2000, 2001 and 2002.Achievement data from these tests will also be used in cost effectiveness analysis for the project.

' Grade four has been chosen as a point at which basic literacy and numeracy skills can be tested whilethere still remain a substantial number of pupils in rural schools.

Annex 2Page 4 of 7

Academic Academic Academic AcademicYear Year Year Year

1999/00 2000/01 2001/02 2002/03ActivityPreparation of Activity TOR Sep-99Annual Contract with Nat'l Examination Unit Sep-99 Sep-00 Sep-01 Sep-02Appointment of Steering Committee Oct-99Preparation Workshop - 12 days x 10 people Nov-99 Nov-00 Nov-01 Nov-02Question Writing Wkshp - 6 days x 5 people Dec-99 Dec-00 Dec-01 Dec-02Trial of test questions Jan-00 Jan-01 Jan-02 Jan-03Results and Review Wkshp - 6 days x 10 people Feb-00 Feb-01 Feb-02 Feb-03Production of Test Mar-00 Mar-01 Mar-02 Mar-03Test administration May-00 May-01 May-02 May-03Analysis of Test Results - 6 days X 10 people Jun-00 Jun-01 Jun-02 Jun-03

Study of school decentralization.

Can further decentralization improve the efficiency and effectiveness of the Cambodian educationsystem? By shifting some decision-making responsibility to local education authorities and school clustercommittees, can decentralization improve the transparency, timeliness and responsiveness (to localneeds) of decisions regarding the allocation of resources for education? Will it improve theaccountability of local officials, school principals and teachers and, by doing this, reduce wastage andimprove performance? There is a growing literature reflecting experience in many countries, both OECDand developing, which could provide some answers to these questions and give guidance to Cambodianpolicymakers as to what is possible and appropriate. About mid-way through the LIL, a study will becarried out to review the international experience and reflect also the experience with decentralizeddecision making in Cambodia (including experience under the project) and to suggest directions forfurther development. An important aspect of the study would be discussion of legislation andinstitutional changes needed to make decentralization possible and effective for education in the country.

Operational support for provincial and district offices.

The operational budgets for provincial and district offices are currently provided through theGovernment's Chapter 11 funding. Among other items of expenditure, this chapter includes funds fortransportation, utilities, furniture, materials and equipment, allowances, maintenance, and training.Chapter 11 budgets have historically proved inadequate to ensure the provision of key services to schoolsby provincial and district officials, for example, regular visits to schools by inspectors and directors,record keeping, and training. Furthermore, actual expenditures have historically fallen short of budgetedexpenditures because actual transfer of funds through the government's finance system have fallen shortof expectations, with the result that actual funds available at the district level fall far short of need. 1 0 Theproject would address this shortfall by requiring that counterpart funds be made available to increaseoperational funds for the provincial and district offices. With enhanced funding the province and districtwould be expected to demonstrate improved levels of service for schools as a whole and thus improved

' The shortfalls at the district and provincial level are partially compensated for by a component of the EU-fundedPASEC program which provides support to district and provincial offices based on agreed budget proposals. In theprogram, PASEC provides an allocation for operational expenses to each province. The provincial and districteducation offices each propose operational budgets in fornats that are compatible with Chapter 11 guidelines. Theythen aggregate proposals and jointly decide how funds from Chapter 11 and PASEC are most effectivelydistributed. The PASEC program is scheduled to close in 2001.

Annex 2Pagge 5 of 7

support for development, implementation and monitoring of cluster improvement plans funded throughcomponent 1 of this project.

US$440,000 base costs ($504,096 including contingencies) in Government counterpart funds wouldtherefore be made available to provinces participating in the project on the following basis:

* Funds would be made available to the project through an account established for project counterpartfunds and will, at minimum, reach annual targets set forth in the table below.

* Distribution and use of funds at the provincial and district levels would be decided through practicesestablished by the provinces and the PASEC program (see footnote 10). However, we would expectat least 60% of the counterpart money to be allocated to district offices.

* Counterpart contributions must be additional to actual transfers through the previous year's chapter11 funding for the province.

* Funds would be made available on the following timetable:

To: FY 2000 FY 2001 FY 2002 FY 2003

Project province 1 $20,000 $40,000 $50,000 $50,000(20,700) (43,666) (57,300) (60,166)

Project province 2 $40,000 $50,000 $50,000(43,666) (57,300) (60,166)

Project province 3 $40,000 $50,000 $50,000(43,666) (57,300) (60,166)

Project Component 3 - Project Management - US$.88 million

The project will be implemented at the national, provincial, district and school level (see table below).The Ministry of Education, Youth and Sport (MoEYS) will have overall responsibility for theimplementation of the project. This component will provide support for a national ProjectImplementation Unit (PIU) and a Provincial Project Implementation Units (PPIU) in each participatingproject province to implement the project.

Project Implementation Unit (PIU)

The PIU consists of national project manager, chief technical assistant and project financial officer andother support staff. It will be responsible for managing the overall direction of project for the MoEYS.The PIU will continuously review the grants management process, assist all groups in identifyingdifficulties, and facilitate technical assistance as well as provide training and technical support to thedistrict animators, PPIU and PGMC in screening and evaluation of the proposals. In addition, PIU staffwill monitor all financial aspects of the project and provide the required reports to the MoEYS, Ministryof Finance and IDA. The project will support technical assistance, honoraria, equipment and furniture,goods and supplies, other operating expenses, and transportation for the PIU. Expenses for office rentalwill be paid from Government counterpart contributions.

Provincial Project Implementation Unit (PPIU)

The PPIU consists of a provincial project coordinator, lead technical assistant, and translator andprovincial project accountant. It will promote and coordinate all project activities at the provincial level,

Annex 2Page 6 of 7

training district animators and overseeing the animation processes, proposal review and monitoring andevaluation activities. PPIU staff will review incoming grant proposals and assist the PGMC in the annualselection of proposals as well as the transparent distribution of grant funds to the LCSCs. The PPIU willalso coordinate with other donor projects at the provincial level to ensure that project resources are beingused effectively and efficiently. The PPIU will also review monthly financial and implementationprogress reports to identify problems, issues, or concerns related to overall project implementation andsubmit monthly reports to the PIU on provincial activities. It will maintain a sound database of all projectinformation in order to facilitate assessment and reporting of project activities. The project will supporttechnical assistance, honoraria, equipment and furniture, goods and supplies, other operating expenses,and transportation for the PPIUs. Expenses for office rental will be paid from Government counterpartcontributions.

Annex 2Page 7 of 7

LEVEL STRUCTURE CHARACTERISTICS PROJECT MANAGEMENT RESPONSIBILITIES

NATIONAL National Committee Membership TBD, but to Project Oversight and Policy Guidance:on Effective include key heads of Transmits lessons learned from the project to policySchooling (NCES) concerned departments in the makers.

MoEYS, provincial and Advises the PIU on operational issues.(activities funded animator representation, andthrough component 2) key donors to primary

education.Project National Project Manager, Project Management:Implementation Unit Chief Technical Advisor, Supervises implementation of the grants process in(PIU) Project Financial Officer, accordance with LIL agreement, seeks resolutions for

other project support staff. equity and funds availability issues.Reviews projects approved by the PGMC to identifypotential areas of policy conflict or question in relation tooperational manual and or vision for effective schools andsubmits to NCES for information purposes.Provides training and technical support to PGMC inscreening, and evaluation of the proposals as needed.Provides financial management and facilitation of alltechnical assistance, oversee studies, seminars andworkshops and Donor and NGO relations.

PROVINCIAL Provincial Cluster Director of POE, Vice Project Review, Evaluation and Approval:School Committee, Director, the Chiefs of the Discusses with Animators results of previous years grants.Provincial Grants provincial education offices Reviews and approves all project proposal submitted byManagement of accounts, pre-school and DCSC based on the criteria set forth in the OperationalCommittee (PGMC) primary education, general Manual..

secondary education, teacher Notifies grant applicants if of the decision and oversee the(activities funded training, inspection, and disbursement of funds to recipient clusters.through component 1) planning and management, Discusses with PPIU once the status of implementation.

plus the PPIU lead Technical Meets with Animators, LSCS, and DOE to discuss itsassistant and project vision for coming year at the end of the school year.accountant.*Chief DOE as observer.when the District's proposalsare being reviewed.

Provincial Project Provincial Project Provincial Project Co-ordination:Implementation Unit Coordinator, Lead Technical Co-ordinates provincial project activities.(PPIU) Assistant, Translator, Project Trains District Animators and other staff.

Accountant Oversees the animation, proposal development, andmonitoring of approved school Cluster Project activities.Facilitates TA and co-ordination of donor projects atprovincial level.Promotes sound financial management practices andoversees the provincial disbursement of project funds.Assists PGMC in implementing guidelines in theoperational manual, as needed.

DISTRICT DOE District Education Officer, Monitoring and Evaluating Grants Impact:Deputy Chief, Assistant Works with district-based animators to support

(activities funded chiefs of primary education, implementation and monitoring of the grants to localthrough component 2) accounts section, and cluster school committees.

community representative,with animator(s), projectaccountant and VSO asfacilitators

District-based District Animators/VSOs Cluster Animation:Animators Team LCSC directors Assists clusters in developing a vision for effective

schools, conducting needs assessments, planning, resource(activities funded mobilization, proposal development, implementation, andthrough component 1) monitoring and evaluation.

Annex 3: Details of Quality Improvement Grants Process

Grants Process

MoEYS Policy

A. Define vision for effective schoolsv

B. Animation process

C. Grants review

VD. POE support plan

7E. Grants award

vF. Implementation

G. Monitoring and evaluation

H. Lessons

A. Effective Schools Vision

1) Each year a National Committee on Effective Schooling gathers to discuss its vision for effectiveschools. (The Committee would be a working group of the Annual Education Meeting, and wouldprepare its work in advance of the annual September Meeting.) Its vision informs the animators'discussions with school clusters. Its provides a mechanism to transmit the MoEYS' expert knowledgeand development priorities to the school level.

2) Practical experience with implementing that vision is channeled back to the committee throughreports of lessons learned by animators and POE officials.

B. Draft Animation Process

1) Introductory meeting - meet the cluster committee members, teachers, community members tointroduce self and gauge interest in participating in the program

2) Cluster committee and PTA meeting

a) Explain how the grants program worksb) Discuss a vision for effective schools

Annex 3Page 2 of 6

(if no PTA, begin process to form one)(suggested format: meet separately with committee and PTA and then together)

3) Action planning

a) Needs identification (using EMIS, test, attendance, repetition, dropout, school schedule data)

i) Identify problemsii) Assign further investigation (make mini-grant available for this purpose)

b) Solutions discussion

i) Identify solutionsii) Prioritize solutions

c) Planning discussion

i) Discuss who could do what, when, and howii) Discuss costs and sources of fundsiii) Discuss how results can be monitored and evaluated

d) Develop a cluster improvement plan as a basis for the preparation of annual grants proposals

4) Proposal writing and submission (3-4 weeks)

5) Notification of grants award

a) If successful, plan to receive money

i) Provide evidence of a public meeting to announce grantii) Provide training in record keeping/grants accountingiii) Develop a calendar of implementation activitiesiv) Develop a supervision plan

b) If not successful

i) Explain why and how to improveii) Return to step 3) if desired

6) Grant award distribution ceremony

7) Implementation of phase I

a) Identify resources (trainers, suppliers, etc.)b) Schedule implementation activitiesc) Purchase goods and servicesd) Check accounting

Annex 3Page 3 of 6

8) Implementation of phase 11

a) Review results/outcomes of phase Ib) Check accountingc) Submit request for second installment of fundsd) Repeat 7.

9) Monitoring and evaluation

a) Monitor outputs - e.g. number of books purchased, teachers trained, etc.b) Evaluate outcomes - e.g. increase in enrollment, perceived changes in motivation, improved

leaming, increased pass rates

10) Animators meet as a group to discuss:

a) Results of step 9.b) Lessons for improving educational development vision and processc) Lessons for improving the animation process

11) Animators meet with Provincial Grants Management Committee and POE officials to report resultsof the grants process and lessons learned.

C. Grants review

I) Provincial Grants Management Committee (PGMC) meets with animators to discuss the results ofthe previous year's grants

2) PGMC meets with the National Committee on Effective Schooling to discuss its vision foreffective schools and the national priorities for the coming year

3) Review proposals for preliminary approval

a) Is the proposal embedded in a coherent cluster improvement plan?b) Does the proposal advance the national vision and meet priorities?c) Is the proposed grant based on well thought out needs assessment, beginning with the cluster's

statistical summary (to include enrollment, girls enrollment, repetition, dropout, achievement(if available) and other indicators as appropriate)?

d) Is there a clear linkage between objectives, needs, activities, outputs (measures of activities)and outcomes (as measures of objectives)?

e) Has the proposal been approved by school directors in the LCSC and communityrepresentatives?

f) Do the proposed activities reduce differences among schools within the cluster by addressingthe needs of the weakest schools within the cluster?

g) Is the implementation plan realistic (e.g., is an organized plan presented, is the timetablerealistic, what evidence is there of the cluster's capacity to implement the plan)?

h) If the cluster received a grant in the previous year, does it have a record of successfulimplementation:

i) Is the budget reasonable for the tasks proposed?

Annex 3Page 4 of 6

4) Summarize potential demands on provincial services (e.g. for trainers) and adjust the number ofapproved proposals if necessary. (make adjustments based on a clear set of priorities, criteria, or a clearplan for providing POE support to clusters)

5) Notify grant applicants

a) Invite winners to a grants distribution ceremonyb) Provide those clusters rejected with a report on reasons for rejection and suggestions for

improving their application in the next round.

D. POE support plan

I) Following step C) 3) above POE officials summarize potential demands by cluster for services,e.g., trainers, training programs, libraries, etc.

2) The POE assesses available capacity and develops a plan to serve cluster needs. This mightrequire, for example, identifying qualified teacher trainers, allowing some schools to move their regulartraining from Thursday to Tuesday (to take better advantage of scarce trainers), or identifying resourcesfor community participation or school management training.

3) POE informs PGMC of scope for supporting programs so that PGMC can adjust the number ofgrants to be awarded based on capacity.

E. Grants award

I) Notify clusters that are to receive grants

2) Certify that cluster has submitted evidence of cluster school committee, teacher and communitymeeting to announce grant award (see B) 5) a) i) above)

3) Certify that cluster has received training in grants accounting (see B) 5) a) ii) above)

4) Distribute grants in a public ceremony with cluster committees and community representativespresent

F. Implementation

Cluster school leaders work with animators to implement grants: see B) 7) and B) 8) above.

G. Monitoring and evaluation

1) A monitoring and evaluation plan is built into the grants process.

Annex 3Page 5 of 6

2) Animators work with Cluster leaders (see B) 9) above):

a) To monitor outputs - what the cluster said it would purchase, e.g. train 80 teachers, purchase400 books, create 20 additional afternoon classes.

b) To monitor outcomes - what the cluster said it would achieve, e.g. increase enrollment,reduce repetition, improve motivation, and improve teaching methods. Relate to data usedat the beginning of the needs identification process (see B) 3) a) above)

H. Lessons

1) Animators meet as a group to discuss educational development lessons of monitoring andevaluation process (see G) above).

2) Animators meet with PGMC and POE authorities to discuss lessons learned.

3) A representative of the animator group from one or more of the provinces participates as a memberof the National Committee on Effective Schooling (see A) above).

Annex 3Page 6 of 6

A Note on Animator Training Needs

1) Animators will should be knowledgeable of:

a) The national vision for effective schools (see A) above).

b) The animation process (see B) above).

c) Community development techniques, e.g. action planning, building successful groups,identifying and encouraging the participation of at-risk populations

d) Educational development resources in Cambodia.

e) Suppliers of books, furniture, materials, and training.

f) Other donors that might provide resources to schools, e.g. the social fund, embassies grantfunds, private benefactors, better off schools that will enter into cooperative agreements fortraining, etc.

g) Budgeting and accounting procedures

h) Ways to use data to identify issues, e.g. enrollment, repetition, dropout, attendance and testdata.

i) Factors or causes commonly associated with problems of enrollment, repetition, dropoutattendance and low achievement in Cambodia.

j) Means to organize a schedule of training and visits to several clusters.

2) Animators should be led by a TA with experience in building staff capacity and participatoryprogram development.

3) New animators may be paired (in a ratio to be determined) with an experienced animator or teamedup with an overseas volunteer to build capacity on a day to day basis until such a point where they areconfident in operating independently.

Annex 4: Estimated Project Costs


Project Cost by Category Local Foreign Total

- US$ million

A. Grants 2.23 0.56 2.79

B. Technical Assistance Costs 0.33 1.11 1.44

1. International Consultants 0.00 0.94 0.942. Studies 0.05 0.10 0.153. Training and Workshops 0.28 0.07 0.35

C. Goods 0.03 0.05 0.08

D. Operating costs 0.23 0.04 0.27

E. Provincial and DistrictOperational Costs 0.44 0.00 0.44

F. Physical Contingencies 0.01 0.00 0.01

G. Price Contingencies 0.42 0.10 0.52

Total Project Costs 3.69 1.86 5.55

Note: Due to rounding, some figures suppressed to zeros.

Annex 5:Outcomes of the Pilot Cluster School Grants Program

Paper TAC 8.2

MINISTRY OF EDUCATION, YOUTH AND SPORTPROVINCIAL OFFICE OF EDUCATION, TAKEO

OUTCOMES OF THE PILOT PROGRAM

28.5.99

Hak Sengly, Director, P.O.E.

Operations

The pilot program was conducted in ten clusters divided equally between two districts (Tramkak, 28schools in five clusters, and Treang, 37 schools in five clusters). This meant that only some clusters ineach district participated in the program.

The program was managed on behalf of the province by five full-time officers - the Pilot Program Officerand National Counterpart, a District Animator for each district, and an interpreter. Each district assignedtwo officers part-time as district trainers and each cluster had one of its personnel operating part-time ascluster trainer.

Provincial Supervision

The grants process was supervised by the Provincial Grants Management Committee, made up ofDirectors and Assistant Directors from the Provincial Education Office, the Chiefs of the two districtsconcerned and the Provincial Grants Management Officer. The committee approved 20 proposals fromthe ten clusters (average two proposals per cluster) for activities shared by all the schools in their cluster.

The clusters also submitted individual school activity proposals from 61 of their 65 schools and 56 ofthese were funded. All told, approximately $84,000 in grant funds were distributed, of which some$64,000 was spent on shared cluster activities (averaging $6400 per cluster for shared activities) and$20,000 on individual school activities averaging $350 per school. Taken together, the averageexpenditure per cluster was $8400 and the average expenditure per school (shared cluster activities plusindividual school activities) was $1400.

The Grants Proposal Process

The clusters spent two months (October and November) considering the national vision of effectiveschools (the ten points), defining the application of that vision to their own local situation, debating whatwere their priority needs, then planning and costing actions to meet those needs. The clusters then had toprioritise the actions and write proposals to detail what they would do, how they would finance thoseactivities, when they would implement them, what outcomes they expected and how they would evaluatethe outputs.

Annex 5Page 2 of 4

During December the Provincial Grants Management Committee reviewed the cluster proposals in detail,checked with the clusters where necessary to clarify the proposals, reviewed the costs and set costingrules where necessary, then determined which proposals to approve and the amount of funding for eachapproved proposal. The proposals were then reviewed at national level by the members of the TechnicalAdvisory Committee and signed off for funding by the Under Secretary responsible at the end ofDecember.

Transparency of Funds Management

While awaiting the grants funding the cluster and school directors were trained in using the expenditurerecord forms. Clusters were only entitled to a second and third installment if they were able todemonstrate that they had good records accounting for every cent that they had spent from the previousinstallment.

Considerable effort went into making the funds management process transparent, not only to Ministryofficers but also to community members. There have been three installment delivery ceremonies atTakeo, attended by some 250 representatives of cluster school committees, teachers, communities andparents. At each ceremony a Ministry leader has presented the cash grant to the representatives of eachcluster school committee and the cluster director has checked the cash and publicly confirmed thecorrectness of the amount.

Cluster directors have then returned to their core schools and arranged public ceremonies, usually at theWat, to describe the proposed activities, announce the grant and the details of how it will be spent.Cluster and school directors have made a practice of displaying posters recording progress in grantsexpenditure so that all interested community members have a chance to inform themselves as to exactlyhow the money is being spent.

Supervision and Evaluation

At the request of the Provincial Grants Management Committee, teams of PGMC and PPU membersregularly visit all pilot program clusters to monitor their progress in proposal implementation. The teamshave designed a special Inspection Bulletin form for this purpose. The bulletin monitors not only progressin funds expenditure but also effectiveness in achieving the quality improvement objectives of each of theproposal activities.

Outcomes

The intended outcomes are more effective schools, improved quality of instruction, higher pupilachievement. As a result there should be improved enrolment, attendance and pupil promotion throughthe primary grades with a corresponding fall in repetition and drop-out rates.

It is too early to be sure of any of these outcomes but there are some interesting indicators which givehope that some of the outcomes might be achieved:

* There is improved morale and enthusiasm among teachers in the program, for example throughparticipation in full day Thursday training workshops

* Directors and their staff, Cluster School Committees and communities are highly motivated topromote activities which they have chosen as meeting priority needs

Annex 5Page 3 of 4

* The clusters have given priority to training activities leading to teacher capacity improvement andthis is evident in the attached pie graph illustrating the distribution of grant funds amongst thedifferent types of activities

* As a result there is much more activity in the classrooms and this is illustrated by more posters,teaching aids, libraries, maths etc. comers and other pedagogical improvements in the appearance ofthe classrooms

* Children are motivated by the improvement in teacher activity and materials and this leads to muchmore life in the classrooms

Needed Improvements

One of the purposes of a pilot program is to try out new methods and learn how to make furtherimprovements. If the project is to continue, we would like to make the following improvements:

* training of community members for more active participation in the work of the school, not onlythrough contributions but in helping to identify the needs and to choose the development priorities forthe school program

* announcement of the grants selection criteria at the beginning of the school year, so that the clustershave clearer guidelines as to exactly how to develop successful proposals for grant funding

* closer liaison with other donor projects in the province, so that all donor activities reinforce each insupporting the development of education in the province

* more effective involvement of the Teachers College, particularly in training the trainers to developthe skills of the trainers working with the teachers in the clusters

* greater attention to training Directors and cluster committee participants in the interpretation of theEMIS data, as a guide to measuring progress and needs and in setting cluster development priorities.

Annex 5Page 4 of 4

GRANTS DISTRIBUTION BY PROPOSAL PURPOSE

Co munity Participation

Class InspectionProgram

Teacher Capa ~

etiionR eReduction

Annex 6: Financial Summarv


Years Ending 2004

Implementation Period

Year 1 Year2 Year3 Year4 Year S

Total Financing Required l

Project Costs

Investment Costs 0.72 1.66 1.49 1.50 0.18

Total Project Costs 0.72 1.66 1.49 1.50 0.18

Financing __

IDA 0.69 1.52 1.31 1.31 0.17

Goverment a' 0.03 0.14 j 0.18 0.19 0.01

Provincial

Co-financiers

Fees/Beneficiaries

Total Project Financing 0.72 1.66 1.49 1.50 0.18

a/ Counterpart funding would be dedicated to operational support for district and provincialoffices of education (US$500,000), office rental for the project implementation units at thenational and provincial levels (US$30,000), and payment of honoraria for technical committees(US$20,000).

Annex 7: Procurement and Disbursement Arrangements


Procurement Capability Assessment

The proposed project builds on the implementation experience gained by the PPU at the national andprovincial levels during the PHRD grant-supported pilot program. This pilot included grants to 10 schoolclusters. The three basic procurement principles of efficiency, economy and transparency were observedduring the implementation of the PHRD grant activities. Goods were bought by the PPU as well as theten school clusters in accordance to Bank guidelines using national shopping procedures. Consultantservices were selected on the basis of comparisons of qualifications, in accordance to Bank consultantguidelines. Local training programs and workshops were carried out in accordance with agreed terms-of-reference with IDA. The procurement capabilities of the national and the provincial as well as the schoolcluster levels were found adequate to carry out the procurement activities of the project, which is anextension of the pilot program under the PHRD grant. Financial information on school grants (totalgrant, distribution of funds, and expenditures) financed by the PHRD grant were posted on public boardsat schools for all to see. Expenditures were carefully recorded in schools' accounts books and checkedby the provincial project accountant. Therefore, we believe there is low risk for carrying out theprocurement functions under the project.

Procurement

Procurement methods (Table A)

Procurement of goods and services will follow the "Guidelines for Procurement under IBRD Loans andIDA Credits" published in January 1995 and revised in January and August 1996, September 1997 andJanuary 1999 (the Guidelines). Contracts for consultant services would be procured in accordance withthe "Guidelines: Selection and Employment of Consultants by World Bank Borrowers", published inJanuary 1997 and revised in September 1997 and January 1999 (the Consultant Guidelines).

Under the quality improvement grants procurement of goods, small civil works and consultants willfollow national shopping or community participation procedures as stated in the Grants OperationalManual.

Grants (US$3.09 million) - grant contracts will be very small ranging from US$500 to US$25,000 foreach primary school cluster on an annual basis (a cluster contains three to ten schools). The EducationImprovement Grant Program will cover three provinces, phasing from I province in the first project yearto 3 provinces in the second project year. Aggregation of the procurement activities of various grantagreements signed separately is not practically feasible, given different locations, procurement items, andthe school clusters' grant implementation schedules. The procurement procedures and lists of eligibleexpenditures acceptable to IDA would be stipulated in the Grants Operational Manual by negotiations.Due to the nature of the grants, contract amounts are expected to cost less than US$ 1,000 each coveringsmall expenditure items such as school teaching materials, furniture, teacher training workshops, smallincentives, minor renovations (e.g. building of latrines, windows, doors), consumables (paper, cardboard,pens), and children's story books. National shopping with comparison of at least three price quotationsand community participation procedures will be used when procuring these goods and small works.Consultant services for training and workshops will follow the individual selection procedures on thebasis of comparison of qualifications. The contracts that clusters will make with trainers are expected to

Annex 7Page 2 of 6

be less than US$500 each. It is unrealistic to put a ceiling amount on each of the procurement methodsdue to the unforeseen nature of school cluster proposals.

Technical Assistance Costs (US$1.56 million) - These costs include consultant services for the PIU andPPIU and studies (US$1.16 million), and local training and workshops (US$0.4 million). Selectionprocedures will follow the individual selection procedures.

Goods (US$0.08 million) - Goods contracts, including small amounts of personal computers, officeequipment and consumables, are expected to cost less than US$25,000 each and will follow nationalshopping procedures with comparison of at least three price quotations.

Operating costs (US$0.32 million) - Operating costs cover the expenses of the PIU and PPIUs, includinghonoraria for committees, rental of office space, supervision and operational costs, such ascommunication expenses and utilities. These expenditures will follow government procedures acceptableto IDA.

Prior review thresholds (Table B)

Prior review would be required for (a) any grant contract exceeding or equal to US$25,000; (b) any goodscontract exceeding or equal to US$25,000; and (c) any individual consultant contract exceeding or equalto US$25,000. In addition, terms-of-reference, regardless of contract amount, for all ccnsultant servicesand training programs would also be required for prior review. These arrangements would ensure priorreview by IDA of contracts worth an estimated US$1.61 million, or about 32 percent of the value of allcontracts to be procured under the project. Ex-post review would be carried on a sample basis of one outof four contracts for those contracts not subject to prior review. Operating costs will be subject torandom ex-post review. The project team will pay particular attention to the procurement practices of thegrants during supervision.

Accounting, Financial Reporting, and Auditing Arrangements

Financial Management Arrangements.

A Financial Management Specialist from the Bank has contacted several international accounting firms inCambodia and agreed on a system using the Asia Development Bank model as the model for the projectaccounting system for all projects in the country. IDA will continuously review the operations of the newaccounting system.

Accounting Arrangements and Funds Flow.

The PPU has contracted with an international accounting firm in Phnom Penh to install a projectaccounting system acceptable to IDA. The accounting system shall contain the following features:(a) application of consistent principles of accounting for documenting, recording, and reporting itsfinancial transactions; (b) use of the accrual method of accounting; (c) a double entry accounting system;(d) a chart of accounts and a coding system that allows meaningful financial reporting to IDA and theGovernment; and (e) the production of quarterly and annual financial statements acceptable to IDA.

Project expenditures will be recorded and reported by the PIU, based on the various project accountsmaintained by the PIU and information from the PPIU on provincial project activities and grants

Annex 7Page 3 of 6

expenditures.) I The financial statements will include, at a minimum, the following documents: (a) aSummary of Sources and Uses of Funds; (b) Uses of Funds by Project Activity; (c) Contract ExpenditureReport Consultants (d) a project consolidated balance sheet; (e) comparative figures from the previousyear; and (f) notes to the financial statements. Additional output monitoring reports will be developed, ifappropriate, during implementation.

In order to establish the project accounting and reporting systems, PIU shall appoint a Project FinancialOfficer with terms of reference acceptable to IDA by negotiations. He or she shall be assisted withadequate support staff. The Project Financial Officer shall be responsible for operation of the accountingsystem, supervision of the PPIU bookkeepers, and training of PIU and PPIU staff.

The project funds will be disbursed through a special account under the supervision of the Ministry ofEconomy and Finance. Funds flow arrangements for the grants to school clusters is based on a contractagreement between the PIU and the school cluster are detailed in the Project Operational Manual.'2 Thesuitability of the Project Management Report (PMR) -based disbursement under the Bank's LoanAdministration Change Initiative (LACI) will be considered during the project mid-year review at the endof June 2002.

Audit.

The Borrower shall appoint an independent auditor acceptable to IDA. The auditor shall be responsiblefor the annual audit of the financial statements, providing an opinion on the eligibility of the expensesdisbursed on the basis of SOEs and transactions from the Special Account. The audited financialstatements, together with audit reports for SOEs and the Special Account, shall be submitted to IDAwithin six months of the end of the Project's fiscal year. The audit shall be conducted in accordance withauditing standards acceptable to IDA and under IDA terms of reference.

Disbursement

Allocation of loan proceeds (Table C)

Use of statements of expenditures (SOEs)

Disbursement would be made against SOEs for: (a) grants costing less than US$25,000 each; (b) goodscontracts costing less than $25,000 each; (c) consultant contracts with individuals costing less thanUS$25,000 each; and (d) all operating costs. Documentation for these expenditures would be retained by

" LCSCs, assisted by the district animators, will submit Monthly Financial Reports on grant expenditures to theProvincial Project Implementation Unit (PPIU). The PPIU will prepare a reconciliation for each individual grant atthe end of the funding tranche and, based on this reconciliation, will authorize release the second tranche to thecluster. The PPIU will submit monthly financial reports to the PIU which will cover the grants and any otherproject-related expenditures (e.g., provincial training, support of PPIU, animator support, etc.) incurred at theprovincial level.

12 Funds are held in the project special account. Once the grant proposals are approved by the PGMC, the PIUprepares contracts for POE and LCSC signature. The PIU also prepares one check for signature and disburses thefirst tranche to the PPIU. The PPIU will distribute the funds to the LCSC at district level in a public and transparentceremony. Payment for a second tranche follows certification by the PPIU that LCSCs have spent and accountedfor their first-tranche funds according to their contract obligations.

Annex 7Page 4 of 6

the PIU and PPIUs and made available to IDA on request. All other disbursements from the Credit wouldbe supported by full documentation and signed contracts.

Special account:

To facilitate disbursement of the credit, the MoEYS PIU will open and maintain a separate specialaccount with or a commercial bank specifically authorized for the purpose by the Borrower, on terms ofconditions satisfactory to IDA, including appropriate protection against set-off, seizure and attachment.The Special Account, which would cover IDA's share of eligible expenditures in all disbursementcategories, would have an authorized allocation amounting to US$400,000 with an initial withdrawal ofUS$200,000 to be withdrawn from the Credit account and deposited in the Special Account. The full$400,000 allocation shall be withdrawn when the amounts committed and disbursed total SDR 1.5million. Applications to replenish the Special Account, supported by appropriate documentation, wouldbe submitted regularly (preferably monthly, but not less than quarterly) or the amounts withdrawn equalto 50 percent of the initial deposit. The Special Account shall be audited annually by independentauditors acceptable to IDA.

Annex 7Page 5 of 6

Annex 7, Table A: Project Costs by Procurement Arrangements(in US$million equivalent)

Procurement Method Total CostExpenditure Category (including

Other N.B.F contingencies)

1. GrantS/a 3.09 3.09(3.09) (3.09)

2. Technical Assistance Costsb 1.56 1.56(Consultant services, studies and local (1.56) (1.56)

training)

3. Goods' 0.08 0.08Goods/c ~~~~~~~~~~(0.08) (0.08)

0.27 0.05'e 0.324. Operating costs/d (0.27) (0.27)

5. Provincial and District Operational Costs 0.50 0.50

Total 5.00 0.55 5.55(5.00) (5.00)

Note: N.B.F. = Not Bank-financed.

Figures in parenthesis are the amounts to be financed by the IDA credit.

/a Grant expenditures will follow agreed procedures documented in the Grants Operational Manual./b Consultant services selection methods will follow the individual selection procedures.kC National shopping with at least three price quotations./d Operating costs include office space rental, supervision, small amount of honoraria, and operational

costs./e These N.B.F. costs include rental for office space and PGMC and NCES honoraria.

Annex 7, Table Al: Consultant Selection Arrangements(in US$ million equivalent)

Consultant Services Selection Method Total Cost (including contingencies)Expenditure Category er

1.16 1.16A. Individuals (1.16) (1.16)

Total 1.16 1.16(1.16) (1.16)

Note: Other = Selection of individual consultants (per section V of Consultants Guidelines).Figures in parenthesis are the amounts to be financed by the IDA credit.

Annex 7Page 6 of 6

Annex 7, Table B: Thresholds for Procurement Methods and Prior Review

c Q~~ontract Value Pouemn Total Contract

EFxpenditulare Category (Threshod)Metho Amount Subect toPrior Review

1. Grants/a > 25,000 Other 50,000

2. Consultant Services/b

Individuals > 25,000 Other 960,000

All TORs Other 600,000

Total value of contracts subject to prior review: 1,610,000 (32%)

Overall Procurement Risk Assessment:HighAverageLow

Frequency of procurement supervision missions proposed:One every 6 month(s) (includes special procurement supervision for post-review paying particularattention to the procurement practices of the grant.)

/ Grant expenditures will follow agreed procedures in Grants Operational Manual.All TORs are subject to Prior Review regardless of cost including local training.

Annex 7, Table C: Allocation of Loan Proceeds

1. Grants 3.09 100%

2. Consultants' Services 1.56 100%

3. Goods 0.08 100% of foreignexpenditures and 95% of

local expenditures.

4. Operating Costs 0.26 100%

5. Unallocateda! 0.01

Total 5.00

a/ only includes physical contingencies

Annex 8: Project Processing Budget and Schedule


Project Schedule Plauaed(At final PCD stage) Atu

Time taken to prepare the project (months) 9 9

First Bank mission (identification) 9/17/1997 9/17/1997

Appraisal mission departure 6/1/1999 6/1/1999

Negotiations 9/1/1999 8/9/1999

Planned Date of Effectiveness 10/1/1999 10/29/1999

Prepared by: Ministry of Education, Youth and Sport

Preparation assistance: PHRD Trust Fund

Bank staff who worked on the project included:

Name Specialty

Christopher Thomas General Educator, Task Manager

Vincent McNamara Education Consultant, Chief Technical Advisor

Ou Eng Education Consultant, PPU Director

Peter Moock Principal Economist

Carol Hau-Lai Ball Operations Officer/Procurement Specialist

Halsey Beemer Senior General Educator/Procurement Accredited

Sandra Erb Education Consultant

Kathy Li Tow Ngow Program Assistant

Wijaya Wickrema Senior Financial Management Specialist

Yoko Nagashima Operations Analyst

Frans Lenglet Educator/Training Specialist

Renganaden Soopramanien Senior Counsel

Omowunmi Ladipo Financial Management Specialist

Peer reviewers: Ruth Kagia, Eluned Roberts-Schweitzer, Sheldon Schaeffer.

Annex 9: Documents in the Project File*


A. Project Implementation Plan

Project Implementation and Procurement PlanGrants Operations ManualDraft Contract between Government and Local School Cluster Committees

B. Bank Staff Assessments

Environmental clearance

C. Other (Reports funded under the PHRD Grant)

Quarterly and Annual Reports of the progress of preparation activities under the PHRDgrant.

Review of the Various Models of Cluster School Development and Recommendations toStrengthen the Cluster School Program of Cambodia

Incentives for Primary Teachers: Status and Issues

Results of the National Teacher Survey

Study on Effective Teaching Hours in Cambodian Primary Schools: Findings andRecommendations

Resources for Schooling: A Model for Local Accountability

Quality Improvement Grants to School Clusters: EMIS Support Needs

Models of Teacher Employment

*Including electronic files.

Annex 10Page I of 2

Status of Bank Group Operations in CambodiaOperations Portfolio

As of 12-Jul-99

Difference Betweenexpected

Original Arsount in US$ Millions and actual

Fiscal disbursements a/

Project ID Year Borrower Purpose

Project ID Year Borrower Purpose IBRD IDA Cancellations Undisbursed Orig Frm Rev'd

Number of Closed Projects: 2

Active ProjectsKH-PE-4030 1999 GOVT OF CAMBODIA KH-RD REHABIT. 0.00 45.31 0.00 43.22 0.00 0.00

KH-PE-50601 1999 KH-SOCIAL FUND II 0.00 25.00 0.00 23.95 1.00 0.00

KH-PE-58841 1999 CAMBODIA KH NORTHEAST VILLAGE 0.00 5.00 0.00 4.82 .50 0.00

KH-PE-45629 1998 CAMBODIA URBAN WATER SUPPLY 0.00 30.96 0.00 27.05 6.62 0.00

KH-PE-4033 1997 GOVT OF CAMBODIA AGRI.PRODUCT IMP. 0.00 27.00 0.00 24.17 13.80 .98

KH-PE-4034 1997 KINGDOM OF CAMBODIA DISEASE CONTROL&HEAL 0.00 30.40 0.00 21.82 10.72 0.00

KH-PE-4032 1996 KINGDOM OF CAMBODIA PHNOM PEHN POWER REH 0.00 40.00 0.00 4.25 9.17 0.00

KH-PE-34755 1995 GOVT. OF CAMBODIA TECHNICAL ASSISTANCE 0.00 17.00 0.00 3.02 3.56 0.00

KH-PE-37088 1995 KINGDOM OF CAMBODIA SOCIAL FUND 0.00 20.00 0.00 .16 1.62 0.00

Total 0.00 240.67 0.00 152.46 46.99 .98

Active Projects Closed Projects Total

Total Disbursed (IBRD and IDA): 72.65 101.77 174.42

of which has been repaid: 0.00 0.00 0.00

Total now held by IBRD and IDA: 240.67 102.70 343.37

Amount sold 0.00 0.00 0.00

Of which repaid : 0.00 0.00 0.00

Total UJndisbursed : 152.46 0.00 152.46

a. Intended disbursements to date minus actual disbursemernts to date as projected at appraisal.

Note:Disbursement data is updated at the end of the first week of the month and is currently as of 30-Jun-99.

Annex 10Page 2 of 2

CambodiaSTATEMENT OF IFC's

Committed and Disbursed PortfolioAs of

(In US Dollar Millions)

Committed DisbursedIFC IFC

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic

Total Portfolio: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Approvals Pending Commitment

Loan Equity Quasi Partic1998 CPP 15.00 0.00 4.30 45.201997 SLP INVESTMENTS 5.25 0.00 0.00 2.25

Total Pending Commitment: 20.25 0.00 4.30 47.45

Annex 1 1 Page I of 2

Cambodia at a glance 9118198

EastPOVERTY and SOCIAL Asia & Low-

Cambodia Pacific income Development diamond*1997Population, mid-year (millions) 10.5 1,753 2,048 Life expectancyGNP per capita (Atlas method, US$) 300 970 350GNP (Atlas method, US$ billions) 3.2 1,707 722

Average annual growth, 1991-97

Population (%) 2.7 1.3 2.1Labor force (%) 2.4 1.4 2.3 GNP - Gross

per primaryMost recent estimate (latest year available, 1991-97) capita enrollment

Poverty (% of population below national poverty line)Urban population (% of total population) 22 32 28Life expectancy at birth (years) 54 69 59Infant mortality (per 1, 000 live births) 102 38 78Child malnutrition (% of children under 5) 38 16 61 Access to safe waterAccess to safe water (% of population) 13 84 71Illiteracy (% of population age 15+) 35 17 47Gross primary enrollment (% of school-age population) 122 115 91 Cambodia

Male 134 118 100 Low-income groupFemale 109 116 81

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1976 1986 1996 1997Economic ratios

GDP (US$ billions) .. .. 3.1 3.1

Gross domestic investment/GDP 20.6 16.5 TradeExports of goods and services/GDP . 26.4 29.7Gross domestic savingslGDP 486 4.8Gross national savings/GDP . 6.4 ..

Current account balance/GDP . -15.4 -11.2 Domestic \nvestmentInterest paymentslGDP . 0.2 0.2 SavingsTotal debt/GDP 67.1 66.2 STotal debt service/exports . 1.2 0.6Present value of debt/GDP . 48.0Present value of debt/exports .. .. 181.6

Indebtedness1976-86 1987-97 1996 1997 1998-02

(average annual growth)GDP 25.4 70 2.0 CambodiaGNP per capita . 22 3 9 -0.3 Low-income groupExports of goods and services .. _.._.._.._..

STRUCTURE of the ECONOMY1976 1986 1996 1997 Growth rates of output and investment (%)

(% of GDP) 57 5.Agriculture 50.7 51.0 8Industry . 153 15.3 e

Manufacturing . 5.3 5.7 4Services . 34.0 33.7 2

Private consumption .. 87.1 86.4 92 93 94 95 9s 97General government consumption .. .. 8.2 8.8 GDI0 GODPImports of goods and services .. .. 42.4 41.4

1976-86 1987-97 1996 1997(average annual growth)Agriculture . 3.1 2.4 2.1Industry 9.1 18.2 2.9

Manufacturing 7.2 12.8 8.8Services 6.8 6.9 1.3

Private consumptionGeneral government consumptionGross domestic investmentImports of goods and servicesGross national product 5 .2 6.5 2.0

Note: 1997 data are preliminary estimates.

The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond willbe incomplete.

Annex I IPage 2 of 2

Cambodia

PRICES and GOVERNMENT FINANCE1976 1986 1996 1997 Inflaion (-)

Domestic prices(% change) 150 -Consumer prices ..... 9.0 9.1 91DImplicit GDP deflator .. .. 7.1 10.0 50

Government rinance _(% of GDP, includes current grants) 92 93 94 95 96 97

Current revenue .. .. 9.2 9.5 -s0Current budget balance . . -0.6 0.8 GDP deflator 0PI

Overall surplus/deficit .. .. -6.6 -4.5

TRADE

(US$ millions) 1976 1986 1996 1997 Exportand Import levels (USS millions)Total exports (fob) . . 659 734 , soo

Rubber . . 32 36Logs .. . 149 103 0Manufactures .. . 113 258 1000

Total imports (cif) . . 1,110 1,037Food 500 Fuel and energyCapital goods .Ad _1

91 92 93 94 95 96 97Export price index (1995= 100)Import prce index (1995=100) .. . Exports * ImportsTerms of trade (1995=100) ..- .. .. .. I

BALANCE of PAYMENTS

(US$ millions) 1976 1986 1996 1997 Current account balance to GDP ratio()Exports of goods and services 831 920 oImports of goods and services .. ,332 1,281Resource balance -501 -361 -5 l

Net income . 9 -5Net current transfers . -10 -

Current account balance . -485 -346

Financing items (net) 5.. 37 376Changes in net reserves .. -52 -30 -20 -

Memo:Reserves including gold (US$ millions) .. .. 234 264Conversion rate (DEC, local/lUS$) .. .. 2,624.1 2,989.0

EXTERNAL DEBT and RESOURCE FLOWS1976 1986 1996 1997

(US$ millions) Composition of total debt, 1996 (US$ millions)Total debt outstanding and disbursed .. .. 2,111 2,049

IBRD .. .. 0 0 G:19 B: 108IDA .. . 108 132 F: 10 C:S9

Total debt service 10 5 D 84IBRD 1° °0 0IDA .. I

Compositon of net resource flowsOfficial grants .. 206 116Official creditors .. .. 81 37Pnvate creditors . . -3 0Foreign direct investment .. 240 135Portfolio equity .. 0 0 E: 1,821

Worid Bank programCommitments .. o 7 A - IBRD E - BilateralDisbursements .. 46 30 B - IDA 0 - Other multilateral F - PrivatePrincipal repayments .. 0 0 C -IMF G - Short-term|Netflows .. 46 30 : IInterest payments .. 1 1Net transfers .. .. 45 30

Development Economics 9/18/98

Annex 12: Framework of Education Development Activities and Assistance in Cambodia

An effective education system has many elements. The World Bank's proposal for aComprehensive Development Framework states: "It starts with universal primary education, forboth girls and boys, as well as an open and competitive system of secondary and tertiaryeducation. Construction of schools, modem curricula geared toward the new technological ageand real needs of the emerging local economy, and effective teacher training and supervision allcontribute to successful education programs. Adult education, literacy and lifelong learning mustbe combined with a fundamental recognition that education of girls and women is central to theprocess of development. A govemment must also be careful to leam the lessons of practice andhistory from indigenous peoples and communities, so that education is not imposed from afar butbenefits from relevant local, communal experience. Finally, preschool education must be givenits full weight in programs. This can be key to the development of a child, the level of educationreached, and thus the eventual achievement. In addition, developments in science, technology,and knowledge transfer offer a unique possibility to countries to catch up with moretechnologically advanced societies."

In Cambodia, much donor assistance has been focused on building the managerial andadministrative capacity of the system, and on providing school buildings. An important gapremains in building a high quality, universally accessible system of primary education. Forexample, although the number of donors is high in the primary education cluster schoolsprograms, only 1 15 of 700 clusters actually receive assistance. This project will make acontribution to filling that gap. A second major gap in the education development framework isin building an open and competitive secondary education system. The ADB is planning toconduct exploratory work on this issue.

Annex 12Page 2 of 4

UPE Open and Open and School Modern Effective Literacy Life-long Learning Pre-school Science, Managementcompetitive competitive construction curricula teacher learning lessons of education technology andsecondary tertiary training and opportunities practice and and administrationeducation education supervision history from knowledge

indigenous transferpeoples andcommunities

Govt.MoEYS Program 16% net 1.4% gross More than Revising Upgrading 65% of

enrolls 78% enrollment enrollment 50% of texts with requirements adultof school in LSS, 7% in tertiary schools are assistance for entry into populationage children in USS education double shift, from ADB the teaching is literate

more than and profession75% have no UNICEF Programs?water orlatrine

Prime Hun SenMinisters SchoolsOfficeCivil SocietyFamilies Financial

support forstudents andschools

Religious/ Maryknoll Wats Non- Don Boscocultural assistance to provide formal Technicalorganizations the buildings education School

University - variousof Phnom NOOs Lutheran WorldPenh Service

VocationalTraining

Quaker ServiceEnglishLanguage

L_ ~~~~~~~ServicePrivate Sector Management English language

schools schools;Computerschools

Annex 12Page 3 of 4

UPE Open and Open and School Modern Effective Literacy Life-long Learning Pre-school Science, Management

competitive competitive construction curricula teacher learning lessons of education technology and

secondary tertiary training and opportunities practice and and administration

education education supervision history from knowledgeindigenous transferpeoples andcommunities

InternationalNGOs andVoluntaryOrganizationsRedd Barna Cluster Cluster schools

schoolsCARE Girls Action Adult

Program Literacy

TOPS Cluster Cluster schools

schoolsComitato Aiuti Adult education

and rural___________ _____________ development

Pour un Non-formalSourire education

d'EnfantVSO/VSA English

languageteachertraining

MultilateralsWBG National Social Fund

HigherEducationTask Force

ADB Lower School Textbooks Basic skills PMO

secondary construction project/TVETproject and rehab.possible _

UNICEF Cluster Curriculum Education for Cluster schools;

schools development community EMIS;development Education

Planning

UNESCO Communit EMIS;y temple Capacitylearning Building forcenter Planning

UNDP CARERE CARERE Non- Capacityformal education building

Vocational_____________ ______________ _______________ T~~~~~raininig

EU __ _ _ _ _ _ _ _ _PASEC I __ _ I_

Annex 12Page 4 of 4

UPE Open and Open and School Modern Effective Literacy Life-long Learning Pre-school Science, Managementcompetitive competitive construction curricula teacher learning lessons of education technology andsecondary tertiary training and opportunities practice and and administrationeducation education supervision history from knowledge

indigenous transferpeoples andcommunities

BilateralsI)flD Training for Inspectorate

English trainingT'eachers andSecondaryschoolInspectors

._______ .(CAMSET)

AusAid Exams NationalHigherEducationTask Force

UPP EnglishandEducationProject(ended1997)d

Germany ONSET - skillsI_training

Thailand Skillsdevelopmentcenter

Japan JSRC school Science Cambodia Japanconstruction curriculum Friendship Skills

advisor Training

Association Aidto Refugees

Netherlands VocationalTraining forEmploymentGeneration

France Support to French School ofuniversity language Medicinedepartments teacher

I training I.II I_

Annex 13: Framework of Effective Schools and Schools Assistance in Cambodia

The effective schools literature looks at the relationship between the outcomes of schooling (usually academic achievement and persistence in school)and the in-school and contextual variables that contribute to those outcomes. International research has focused on the importance of four broadcategories of variables: supporting inputs, enabling conditions, school climate, and the teaching and learning processes:

Supporting Inputs Enabling Conditions School Climate Teaching Learning Processes

* parent and community support * effective leadership * high expectations of students * variety in teaching strategies* a healthy learning environment * a capable teaching force * positive teacher attitudes * frequent homework* effective support from the * flexibility and autonomy * order and discipline * frequent student assessment

education system * high time (days and hours) in * organized curriculum and feedback* adequate supplies of books and school * rewards and incentives * participation (attendance,

materials * high learning time (time on continuation, and completion),task) esp. for girls

The Cambodian MoEYS has set its own ten priorities for basic education and these are presented in the following table, in a way that allows one tocompare them with the above variables. The priorities touch on each of the broad categories of variables, but in themselves are unlikely to constitute aset of actions that is sufficiently comprehensive to truly improve performance of schools. Other donors are contributing, but much of their assistancefocuses on efforts to build effective support from the education system, and to providing inputs such as books and schools. There is comparatively lessattention to issues of improving the school climate or to improving teaching and learning. We hope that this LIL will (i) expand the Government's visionof effective schools; and (ii) shift the locus of control over design of programs to the school level, where in the PHRD pilot, schools proposed numerousinitiatives to both improve the school climate and to improve the teaching and learning processes.

Annex 13Page 2 of 3

Supporting Inputs Enabling ConditionsInternational Parent and comm. Healthy learning Effective support Adequate books Effective Capable teaching Flexibility and High time (days andResearch Support environment from Ed. System and materials leadership force autonomy hours) in school

Government's 10 I'roduce and use Use experienced Full day (6 hours)Priorities teaching aids teachers in grades teachiig

1,2; Regular'I'hursday technicalgroup meetings

GovernmentMoEYS __Prime Ministers Hun Sen SchoolsOfficeCivil Society .Families Financial supportReligious/cultural Wats provideorganizations buildingsOverseas Funds for schoolsKhmer/Prominent buildingsindividualsPrivate SectorInternationalNGOs &Voluntary Orgs.Redd Barna School construction Cluster schools Story books Teacher Training

in post-conflict Siem Reapareas

CARE Girls' EducationAssistance

TOPS Cluster schoolsMultilateralsWBG Social Fund-

school constructionADB School construction Textbooks Textbook training

and rehabilitationUNICEF School emergency Cluster schools; Principal training Textbook

construction EMIS orientationUNESCO Capacity building

for ed. planners;EMIS

UNDP CARERE - schoolconstruction

EU School construction Inspector training PASEC principal PASECPersonnel training teacher/maitreinformation system formateur training

BilateralsDflt) Inspector trainingFrench Cooperation_ Inspector training

Annex 13Page 3 of 3

.___________.____ Supporting Inputs Enabling Conditions

International Parent and comm. Healthy learning Effective support Adequate books Effective Capable teaching Flexibility and High time (days and

Researcih Support environment from Ed. System and materials leadership force autonomy hours) in school

Japan JSRC school Library for pre-

construction school college ofeducation

School Climate 'I'eaching and Learning Processes

International High Positive Order and Organized Rewards and High learning Variety in Frequent Frequent student Participation

Rescarch expectations of teacher discipline curriculum incentives time (time on teaching homework assessment and (attendance,

=::, students attitudes task) strategies feedback continuation,completion), esp.for girls

Government's No underage Link with Improve living Promote child Equal access for

10 Priorities children in community and conditions of centered disadvantaged

school social issues teachers learning children

GovernmentMoEYS Prime

Pedagogic2"' Shiftsupplement

Civil Society . . .

Families Gifts andsupport forteachers

Private SectorInternationalNGOs andVoluntaryOrganizationsRedd Barna Teacher

training?

CARE Girls' EducationAssistance

MultilateralsWBGADBtJNICEFUNESCOIJNFAO Integrated Pest

___ ___ __ ___ ____________ M anagement

tJNDPEU __ _ _ __ _ _ .__ _ _ _ _ _ _ _ _ _ _ _

BilateralsAtID Examiation

AusAid _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ __ Examinations _ _ _ _ _ _ _ _ _

Annex 14: Framework for an Information System to Track Progress of Project Interventions toward the Meeting of Objectives

The animator service should create a system of note taking, reporting and analysis which fully captures learning from the experience of thegrants program. Instruments such as proposal forms and cluster monitoring reports will be designed to capture this information in simple andsystematic fashion. Lessons will be transferred back to policy makers and into the design of the animators' work. Summary tables, such as thefollowing, will aid policy makers and researchers to take a broad look at program effectiveness.

Expenditure per pupil on intervention N in year Outcome indicator value at end of year TTeacher Library Double EnrollmenGender Repetition Grade 1 G4 examtraining books and shift Inter- Inter- Inter- ratio ratio rate dropout ratepass rate

District ClusterYearincentivesmaterials salaries vention Xention Vention Z cluster (cluster) (cluster) (cluster) (cluster)DistA ClusAl 0 --- --- --- --- --- --- 70% 40% 10% 20% 40%

1 $1.50 $0.10 72% 41% 10% 19% 40%2 $0.50 $1.50 74% 42% 9% 19% 42%3 $2.10 77% 43% 9% 18% 48%4 $2.25 80% 45% 8% 17% 55%

ClusA2 0 --- --- --- --- --- --- X% X% X% X% X%1 X% X% X% X% X%2 X% X% X% X% X%3 X% X% X% X% X%4 X% X% X% X% X%

DistB ClusBl 0 --- --- --- --- --- X% X% X% X% X%1 X% X% X% X% X%2 X% X% X% X% X%3 X% X% X% X% X%4 X% X% X% X% X%

National 0 --- --- --- --- --- --- X% X% X% X% X%1 --- --- --- --- X% X% X% X% X%2 --- --- --- --- --- --- X% X% X% X% X%3 --- --- --- --- --- X% X% X% X% X%4 --- -- -- -- -- -- X% X% X% X% X%

Annex 15: Monitoring and Evaluation

Monitoring Systems & Reports. Project management at the national, provincial and district level will beespecially concerned with delivering critically needed inputs to clusters/schools to assist in theimprovement of quality. Therefore, the Monitoring and Evaluation system need not be overly complexbut should measure project performance on three different levels:

* the delivery and use of inputs as planned-- i.e., the appropriate use of resources in the project budgetand satisfactory execution of the work plan,

* the quantifiable production of outputs, and* the achievement of desired outcomes in any one of the several areas of intervention of interest to the

project-- i.e., quality teaching, community participation, Student involvement.

The table below indicates the various reports to be used in the monitoring system of the project, theresponsibility for preparing each report and for whom the report is to be prepared.

Report Report Name Who Prepares Submitted to WhomNo.

I . Monthly Financial LCSC, Animators PPIUReports

2. Grants Implementation Animators PPIUProgress Reports

3. Project Monitoring and Animators, LCSC PPIU,PGMCEvaluation Reports

4. Quarterly Summary PPIU PGMC, PIUReport of GrantsProgress

5. Annual Monitoring and PPIU, Animators and PGMC PIU, NCESEvaluation Report

6. Quarterly Consolidated PIU MoEYS, NCES, IDA Task TeamProgress Report Leader

7. Annual Report of PIU MoEYS, NCES, IDAProgram Progress

Monitoring Responsibilities. The Project Implementation Unit (PIU) will be responsible for reporting tothe MoEYS leadership and IDA on issues related to management and implementation. The principalresponsibility for monitoring progress under the project will rest with the District Office of Education andthe district animators. Monitoring will be based on information and reports provided by the Local ClusterSchool Committees (LCSCs), supplemented with field supervision observations and reports. Financialreporting will be carried out monthly, grants implementation progress at the end of each funding tranche,project monitoring and evaluation at the provincial level both on an ongoing and annual basis, withquarterly and annual consolidated reporting at the national level.

LCSCs, assisted by the district animators, will submit Monthly Financial Reports on grant expenditures tothe Provincial Project Implementation Unit (PPIU). The PPIU which will prepare a reconciliation foreach individual grant at the end of the funding tranche and, based on this reconciliation, will release thesubsequent tranche to the cluster. The PPIU will submit monthly financial reports to the PIU which willcover the grants and any other project-related expenditures (i.e., provincial training, support of PPIU,

Annex 15Page 2 of 3

support for animators, etc.) incurred at the provincial level. The PPIU, working with the PIU, willdevelop and use a simple computerized method of financial accounting which will be able to track andmonitor the finances of each grant contract. The accounting formats should be identical throughout theproject provinces and reports should be summarized at the national level by the PIU.

The district animators will be responsible for compiling and submitting Grants Implementation ProgressReports to the PPIU that provide information on implementation progress, project outputs, and problemareas. These Grants Implementation Progress Reports will be submitted at the end of the each fundingtranche and be based on information gathered and recorded by animators. As with the financial reports,progress reports will be submitted to PPIU within 10 days of the close of the reporting period. The PIU,PPIU and LCSCs will agree upon specific indicators to be used to monitor progress under each grant andcustomized forms for reporting technical progress that will be developed at the time that contracts aresigned. 3 The PPIU will prepare quarterly summary reports of grants progress (including a summaryfinancial statement) for submission to the PGMC and the PIU.

The district animators will produce Project Monitoring and Evaluation Reports which will summarize theoutputs, outcomes, impressions and lessons leamed of strengthening school effectiveness of each fundedgrant. This report will be submitted to the PPIU. At the end of the grant cycle year, the animators willmeet with the PGMC and the provincial and district officials to discuss the outcomes of the individualgrants and lessons learned. These discussions, and especially the lessons learned from theimplementation of the grants, will form the basis of the PPIU-produced Annual Monitoring andEvaluation Report which will be the primary project-related input into the National Committee onEffective Schooling (NCES) and the Annual Education Meeting. A representative of the districtanimators will present and discuss the findings of the Annual Monitoring and Evaluation Report at ameeting of NCES, and may, if appropriate, discuss the report at the Annual Education Meeting.

The PIU, using the PPIU-produced Monitoring and Evaluations Reports and taking into account project-related activities that have been carried on at the national level, will prepare a Quarterly ConsolidatedProgress Report on the overall implementation of the project for review by the National Committee onEffective Schooling (NCES) and relevant donors and stakeholders to the project. The Project Director ofPIU will also be responsible for compiling the financial and progress reports from all three Provinces, aswell as updating the central PIU database on project progress and performance and distributing aconsolidated report to all other technical and administrative program managers and directors of the PIU.The PIU would use these data to identify any problems or issues of either a technical or financial natureand to guide Provincial site visits with both the PPIU Provincial staff and the LCSCs. This consolidatedreport will also be shared with the major stakeholders, including NGOs, line ministry, UN agencies anddonor partners who support education initiatives. The last Quarterly Consolidated Progress Report,produced by the PIU, will constitute the Annual Report of Project Progress which will consolidate data,observations and recommendations from the full project year. This will be submitted to the MoEYS, theNCES and IDA.

] Both quantitative and qualitative indicators will be used in monitoring project progress and performance. Whilethe PPIU Accountant will compile information on actual versus budgeted expenses, the PPIU and district animatorswill monitor the implementation of activities and outputs of respective projects. These staff will also conductunstructured interviews with LCSC staff and community groups, hold focus-group discussions, and use otherinformal techniques to assess the qualitative aspects of implementation progress. If particular problems orconstraints are identified, a more specific information gathering activity may be conducted to look at an issue moreclosely. If major problems are encountered with a grant that require contract revisions, the PPIU Coordinator willreview the issue with the LCSC and recommend any necessary adjustments. Once approved at the appropriatelevel, this adjustment to the implementation plan will then be noted in the contract as modified.

Annex 15Page 3 of 3

Monitoring Indicators: Grant proposals will specify the indicators to be monitored during grantimplementation (i.e. outputs measuring what grants were spent on and outcomes measuring progressagainst objectives). As part of project proposals, LCSCs, with the assistance of the district animators,will prepare a monitoring plan that will indicate how the progress and impact of the grant will bemonitored. The LCSC will finalize these plans in collaboration with the staff of the PPIU immediatelyafter contract signature. This plan will specify what will be monitored (the indicators and target levels ofachievement), how the information will be collected, who will collect the information, and with whatfrequency.

A limited number of appropriate indicators will be selected to provide a useful overview of the grant'sperformance and allow for modification to project strategies as appropriate. Indicators for key outputs(such as number of books purchased, or teachers trained) and outcomes (such as improvement inattendance or reductions in repetition and dropout rates the following year) will be identified andnegotiated between PPIU and the LCSC. These indicators will then become the measures on which theLCSC and the Animator will report, and on which the POE will use to assess grant performance. Anillustrative list of indicators by major areas of intervention is contained in Annex 14. This list is providedas a guide to the types of data with which each cluster grant proposal will be concerned.

As a general rule, the indicators and needs for information collection and reporting should be adequateenough to allow for timely corrective action without over-burdening the management structure of eitherthe implementing agency or the project.

Annex 16: Draft ToR for the National Committee on Effective Schooling

POSSIBLE ADVISORY STRUCTUREdraft of 20.6.99

The Ministry is giving consideration to the possibility of modifying its Basic Education advisorystructure to take account of emergent reforms in sub-sector and school effectiveness planning.These include the availability of an enhanced educational management information database andthe provision to all schools of new text-books and teachers' manuals. Experience to date indicatesthat school directors and teachers are unable to make effective use of the new information andteaching resources without a carefully designed and extensive training program.

Emerging priorities include new needs - for aid coordination and school support in adecentralized administrative environment, for attention to research information indicatingstrategies needed to generalize the strengths of effective school clusters, for a re-orientation theculture of school support as demonstrated by problems encountered in the re-establishment of theinspectorate, and for the coordination of Ministry departments and of international support intrialling new strategies of quality improvement in the provision of Education for All.

It is proposed to address these needs by broadening the functions, membership and scope of theNational Cluster Schools Committee, by providing greater technical support and by delegatingkey quality improvement implementation functions to sub-committees.

The restructured national committee will have a membership and title to reflect its enhancedstatus and broader responsibilities:

NATIONAL COMMITTEE ON EFFECTIVE SCHOOLING

The Secretary of State responsible for Primary Education (chair)The Director General of EducationThe Deputy Director General of Administration and Finance responsible for PlanningThe Deputy Inspector General Responsible for EducationThe Director of Primary EducationThe Director of Pedagogical ResearchThe Director of Teacher EducationThe Director of Non-formal EducationFour representatives of the broad categories of donor support to schooling (multilateral, UN,bilateral, and NGO)Representative of the animator group

Secretariat

The committee will be supported by a small national secretariat for which the donor memberswill jointly provide funding and technical advice

Sub-committees

To be determined, but could include a sub-committee each on the development and use of EMIS,on strengthening the cluster school system nation-wide, on the development of the inspectorate,

Annex 16Page 2 of 4

on textbook orientation and on the EQIP project to trial new strategies of support to effectiveschooling (see below). In general these would not be new bodies, but the incorporation ofexisting bodies into a clearer and more cohesive reporting structure, with some changes tomembership and functions as appropriate.

Joint Working Parties

The National Committee will, as necessary, authorize the establishment by the sub-committees ofad hoc short-term, joint, Ministry-donor working parties to address particular policydevelopment, research and planning requirements.

The Sub-committee on Support to Effective Primary Schools

Interim Goals

1. To provide policy guidance and technical advice on the implementation of the LIL project inthe three provinces selected; and

2. To ensure that lessons learned from the management of the LIL project are effectivelytransmitted to Cambodian policy makers.

Long-term Goal

If it proves useful, the Committee may later expand:

1. To embrace related sub-sectors (pre-school, non-formal and lower secondary) and eventuallyto cover the whole sector; and

2. To other provinces and eventually to nation-wide coverage.

Operational Definitions

"Support" therefore means: the provision of support and the resolution of coordination issues inthe Ministry's policy, planning, process and budget functions for the effective operation ofprimary schools.

"Committee" therefore means: representation of all concerned stakeholders working in theresourcing of primary education in the trial provinces, to meet under the general chairmanship ofthe Ministry.

Functions

1. to advise the Ministry on the management of the LIL project, which is trialling a new methodof resource delivery to schools through a decentralized process of quality improvementgrants;

2. To ensure the utilization of the best information, personnel and resources available to theMinistry in planning the innovations, processes, studies and evaluation activities proposed inthe loan agreement;

3. to use the lessons learned from the management of the LIL project to improve thecoordination of resource management support processes as between Ministry departments,

Annex 16Page 3 of 4

between donors working in the same fields and as between the Ministry and the educationdonor community;

4. to provide annual inputs to the Annual Education Meeting, through the National Committeeon Effective Schooling, on improvements required to sharpen the targeting of the Ministry'spriorities for the coming year, so progressively redefining and improving its National Visionof Effective Schools; and

5. to participate in and provide qualitative input to the project's mid-term and final evaluationprocesses.

Proposed Membership

Build on the membership of the Project Preparation Technical Advisory Committee (TAC) 1998-99 (8 members) to a membership of 13:

The Director General of Education (Chair)The Director of Primary EducationThe Director of Secondary EducationThe Director of PlanningThe Assistant Director of Teacher Education responsible for RetrainingThe Provincial Director* of Education TakeoThe Provincial Director* of Education of the second LIL project provinceThe Provincial Director* of Education of the third LIL project provinceA representative of UNICEFA representative of PASECA representative of ADBA representative of Redd BamaA representative of TOPS

It is expected the sub-committee will meet monthly or more frequently as required. It may alsopropose to the National Committee on Effective Schooling the establishment of short-term ad hocworking parties for particular purposes.

TORs

To be developed by the Ministry in consultation with the relevant departments and donorinterests and probably to include such functions as:

* to advise the Minister on policy, planning and administrative issues conceming theimplementation of the EQIP LIL Project

* to advise the Director of the PIU, on the operation of the LIL project* to promote the decentralization of primary school resource management to provinces and

school clusters for the purpose of maximizing administrative and community participation inactivity planning, in order to best realize the Ministry's vision of effective schools in terms ofthe needs of the each local situation and its particular constraints

* to develop in each of the trial provinces a new organizational culture to create a sub-sector-wide approach, led by the Provincial Education Office, to integrate policies and budgets inthe management of all resource support to primary schools

* to provide feedback to the relevant Ministry departments and donor organizations onimprovements needed in current practice to facilitate participative decentralization processes

Annex 16Page 4 of 4

* to make annual recommendations to the Annual Education Meeting of the Ministry onpriority improvements required to the Ministry's vision of effective schools

* on the basis of lessons learned from the LIL, to provide advice to the Ministry on the policyanalyses and research required to prepare a sub-sector investment program.

Implementation Requirements

1. In preparation for negotiations, the Ministry to call a meeting of concerned departmentsand donors (say July 1999) to draft sets of appropriate terms of reference for the NationalCommittee and its sub-committees;

2. The Ministry considers the draft TORs, amends as necessary, consults with the IDA onthe final draft;

3. The agreed TORs are incorporated into the P.A.D. for final negotiation of the loan; and4. In readiness for effectiveness (say September), members are invited to the inaugural

meeting of the Committee.

* The Provincial Director may send the Provincial Project Coordinator (the Head of the PPIU) ashis representative

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