Document of

The World Bank

Report No: 67572-HN

RESTRUCTURING PAPER

ON A

PROJECT RESTRUCTURING

OF THE

EDUCATION QUALITY, GOVERNANCE AND INSTITUTIONAL

STRENGTHENING PROJECT

CREDIT 4381-HN

APPROVED BY THE BOARD ON JANUARY 24, 2008

TO THE

REPUBLIC OF HONDURAS

JUNE 28, 2012

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Restructuring Status: Draft Restructuring Type: Level II

June 28, 2012

1. Basic Information Project ID & Name P101218 - Education Quality, Governance and

Institutional Strengthening Project

Country Honduras

Task Team Leader Juan Diego Alonso

Sector Manager/Director Reema Nayar/Keith Hansen

Country Director C. Felipe Jaramillo

Original Board Approval Date January 24, 2008

Current Closing Date June 30, 2013

Proposed Closing Date [if

applicable]

N/A

EA Category C

Revised EA Category N/A

EA Completion Date

Revised EA Completion Date

2. Financing Plan (US$) Source Original Revised

Borrower 1.03 1.03

IBRD 15.37 15.37

Total 16.40 16.40

3. Borrower Organization Department Location

Republic of Honduras Tegucigalpa, Honduras

4. Implementing Agency Organization Department Location

Ministry of Education Tegucigalpa, Honduras

ii

5. Disbursement Estimates (US$m) Actual amount disbursed as of 06/27/2012: 8.98

Fiscal Year Annual Cumulative

FY12 0.07 9.05

FY13 5.79 14.84

Total 14.84

6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? No

Have these been approved by Bank management Is approval for any policy exception sought from the Board?

Does the scale-up of restructured projects trigger any new safeguard

policies?

No

7. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes

The objective of the Project is to support the Recipient to increase the coverage, quality,

accountability and governance of its basic education system.

iii

ABBREVIATIONS AND ACRONYMS

AECO Asociación Educativa Comunitaria (Community-Based Educational Association)

APF Asociación de Padres de Familia (Parent-Teacher Associations)

CCEPREB Centro Comunitario de Educación Prebásica (Community-Based Center for Pre-

Primary Education)

EGRA Early Grade Reading Ability

EIB Educación Intercultural Bilingüe (Intercultural Bilingual Education)

GIZ Gesellschaft für Internationale Zusammenarbeit (German Society for International

Cooperation)

INPREMA Instituto Nacional de Previsión del Magisterio (National Teachers’ Pension Fund

Institute)

IRI Intermediate Result Indicator

LLECE Laboratorio Latinoamericano de Evaluación de Calidad Educativa (Latin

American Lab for the Evaluation of Quality in Education)

PAD Project Appraisal Document

PDO Project Development Objective

PEC Proyecto Educativo de Centro (School Educational Project)

PER Proyecto Educativo de Red (School Network Educational Project)

PIRLS Progress in International Reading Literacy Survey

PROHECO Programa Hondureño de Educación Comunitaria (Honduran Program for

Community-Based Education)

RFM Results Framework and Monitoring

SEDUC Secretaría de Educación (Ministry of Education)

SEFIN Secretaría de Educación (Ministry of Finance)

SIAFI Sistema Integrado de Administración Financiera (Integrated System for the

Financial Administration of Public Servants’ Payroll)

SIARHD Sistema Integrado de Administración de Recursos Humanos Docentes (Integrated

System for the Administration of Teachers Payroll)

TIMSS Trends in International Mathematics and Science Study

TSB Transparency School Board

TU Transparency Unit

UPEG Unidad de Planificación y Evaluación de la Gestión (Unit of Planning and

Management Evaluation)

Regional Vice President: Hasan Tuluy

Country Director: C. Felipe Jaramillo

Sector Director/Sector Manager: Keith Hansen/Reema Nayar

Task Team Leader: Juan Diego Alonso

iv

HONDURAS

EDUCATION QUALITY, GOVERNANCE AND INSTITUTIONAL

STRENGTHENING PROJECT

P101218

CONTENTS

A. SUMMARY ............................................................................................................... 1

B. PROJECT STATUS ................................................................................................. 1

C. PROPOSED CHANGES .......................................................................................... 4

ANNEX 1: RESULTS FRAMEWORK AND MONITORING .................................. 16

1

EDUCATION QUALITY, GOVERNANCE AND INSTITUTIONAL STRENGTHENING

PROJECT

RESTRUCTURING PAPER

A. SUMMARY

1. The major changes and rationale are as follows:

a waiver of the withdrawal condition affecting Component 2 (Community Participation in

School Management for Better Performance) insofar as the spirit behind the withdrawal

condition - the reinstatement of pension benefits to teachers from the Honduran Program

for Community-based Education (Programa Hondureño de Educación Comunitaria or

PROHECO) - has been met;

a revision of all the remaining dated legal covenants (Other Undertakings) in light of the

set of administrative acts undertaken by the Government to regularize the social security

situation of PROHECO teachers;

a revision to Project activities to adjust them to: i) a shortened implementation period due

to the 2009 “pause” and delay in satisfying the Project’s withdrawal conditions; ii)

funding from other sources outside of the Project, and iii) the Government’s strategy;

a revision to the indicators in the Results Framework and Monitoring to reflect the

changes in Project activities;

a revision in Project costs consistent with the revised Project activities and scope; and

a reallocation of Credit proceeds across all 5 categories that reflect the changes in Project

activities and costs.

B. PROJECT STATUS

2. The Project was approved on January 24, 2008, became effective on November 14, 2008, and

was restructured once before on March 22, 2011. It has 4 components: i) Enhancing and scaling up

interventions that address the education needs of the poor, ii) Community participation in school

management, iii) Governance and institutional strengthening of the Ministry of Education, and iv)

Project administration.

3. The political turmoil following the removal from power of President Manuel Zelaya on June

28, 2009, led to an interruption in Project implementation, which lasted about 9 months. Component

2 and one of the subcomponents of Component 3 suffered significantly due to delays in satisfying

the withdrawal conditions related to these components.

4. Component 1 has made significant progress in spite of the 9-month Project hiatus. It has

contributed to: (i) increased preschool coverage through the opening of approximately 600

Community-Based Centers for Pre-Primary Education (Centros Comunitarios de Educación Pre-

básica or CCEPREBs), including 138 that offer Intercultural Bilingual Education (Educación

Intercultural Bilingüe or EIB), and the training and payment of stipends for the 600 volunteers that

2

teach at these CCEPREBs; and (ii) increased support for PROHECO schools through the training of

over 3,000 PROHECO teachers, including PROHECO-EIB teachers, in the Multigrade-Teaching

Manual approved by the Ministry of Education (Secretaría de Educación or SEDUC) in 2010. In

addition, it has financed the preparation and distribution of packages of didactic materials in the

Natural and Social Sciences that have been adapted to the National Curriculum that was introduced

in 2005. Similar materials in Math and Spanish were prepared and distributed outside of the Project

with financing from the Common Fund of Education Donors (Fondo Común).

5. A withdrawal condition for Component 2 was included in the Financing Agreement for the

Project, dated July 2, 2008, to help ensure that PROHECO teachers were covered by a pension

scheme following their removal, in February of 2006, from a pension plan provided by the National

Teachers’ Pension Fund Institute (Instituto Nacional de Previsión del Magisterio or INPREMA).

PROHECO teachers and their employers had made payments into the INPREMA pension plan since

March 1999, and these funds (L. 35,915,610) were held in an account in INPREMA even though

PROHECO teachers were unable to draw on them upon retirement or withdraw these funds and

move them to a different pension plan.

6. There have been a number of important developments related to reinstating pension benefits

for PROHECO teachers. On October 27, 2011, two key Agreements were signed. First, an

Agreement on the Affiliation of PROHECO teachers to INPREMA, signed between the Ministry of

Finance (Secretaría de Finanzas or SEFIN), SEDUC, and INPREMA recognized PROHECO

teachers as legitimate affiliates to INPREMA, with full retroactive benefits since the creation of the

PROHECO Program in February 1999. Second, an Agreement on the Cancellation of the Debt of

PROHECO Teachers with INPREMA, signed between SEFIN and INPREMA, commits to

recognition and absorption, by the Government of debt to INPREMA to cover PROHECO teacher

pension benefits accrued since 1999, which the Government, through SEFIN, committed to pay

within a period of 8 years starting in 2012. Subsequently, Congress passed the Law of the National

Teachers’ Pension Fund Institute on December 13, 2011, which gives these two agreements legal

standing through Article 120. This law was published in La Gaceta, the official Legal Bulletin of the

Government, on December 22, 2011 and became effective on January 11, 2012. The Government is

implementing these agreements: a first installment of the outstanding debt, for an amount of L. 50

million (approximately, US$2.5 million), was paid on June 8, 2012 with National Bonds and

transferred to INPREMA. Efforts are underway to determine and pay the full amount of debt, within

the next 8 years, and identify and notify PROHECO teachers that are eligible for pension benefits of

their own individual situation with INPREMA (total amount contributed in terms of employee and

employer contributions through the recording of this outstanding long-term debt in SEFIN’s

accounting books). Furthermore, the employer and employee contributions of 2012 PROHECO

teachers have been also transferred to INPREMA for the first 5 months of salary (January through

May)

7. Component 2 has not yet begun implementation pending satisfaction of the withdrawal

condition. However, with financing from the German Society for International Cooperation

(Gesellschaft für Internationale Zusammenarbeit or GIZ), some activities that were to be financed

by the Project have now been completed with funds outside of the Project. During 2010 and 2011, a

unified operational manual for developing and monitoring School Educational Projects (Proyectos

Educativos de Centro or PECs) and School Network Educational Projects (Proyectos Educativos de

3

Red or PERs) was officially approved by SEDUC. The PECs (PERs) are documents that are

produced annually by school councils (school network councils) identifying the priorities for each

school (school network). Manuals were distributed to all schools that belong in school networks in

the 6 Departments of intervention of GIZ (Santa Bárbara, Copán, Ocotepeque, Lempira, Intibucá and

La Paz) out of a total of 18 Departments. Furthermore, training on the preparation of the PECs and

PERs was also delivered in these same 6 Departments. Finally, a series of assessment and capacity

building activities related to school management systems, including the training of teachers in school

management for PROHECO schools that were in GIZ’s Departments of intervention, were also

carried out.

8. Component 3 has contributed to i) improving Honduras’s educational statistics; and ii)

supporting the participation of Honduras in four key assessments of student learning: the 2008 Early

Grade Reading Abilities (EGRA) test; the 2010 Trends in International Mathematics and Science

Study (TIMSS); the 2010 Progress in International Reading Literacy Survey (PIRLS); and the 2011-

13 Latin American Lab for the Evaluation of Quality in Education (Laboratorio Latinoamericano de

Evaluación de la Calidad Educativa or LLECE). In addition, it supported the 2011 measurement of

the effective instructional time in the classroom using Stallings Method. Following the March 2011

Project restructuring, which provided a partial waiver of the disbursement condition for

Subcomponent 3.1, which supports the Integrated System for the Financial Administration of Public

Servants’ Payroll (Sistema Integrado de Administración de Recursos Humanos Docentes or

SIARHD), Component 3 has: i) started designing the web-based platform for the integrated

education management information system being constructed and buying the equipment for the 18

Departmental Offices of SEDUC; ii) supported a Census of EIB educational centers; and iii)

financed the strengthening of core line units of SEDUC that are in charge of information and

technology issues – the Unit of Information and Technology (Unidad de Infotecnología) – and core

statistical educational indicators – the Unit of Planning, and Management Evaluation (Unidad de

Planificación y Evaluación de la Gestión or UPEG)).

9. The goals envisaged for Component 3 were reinforced by the creation of the Transparency

Unit (TU) within the auspices of SEDUC on February 20, 2008 (Ministerial Decree No.0647-SE-

08). The creation of this Unit, which had been mandated by the Law on Transparency and Access to

Public Information (June 20, 2007), has fostered a significant change in accountability and

governance in the education sector. The TU worked mostly as a unit for the provision of information

related to the education sector in the first two years (2008 and 2009), but increased its scope in 2010

by adding a grievance mechanism within its functions. In mid-2010, with financing from the GIZ,

the TU started deploying “Transparency School Boards” (Murales de Transparencia or TSBs) in all

schools within 6 of the 18 Departments in an effort to increase accountability of schools with the

help of the community. TSBs have been installed in a visible place in schools and have a clearly

labeled hotline to help Parent-Teacher Associations (Asociaciones de Padres de Familia or APFs) to

report any problems or irregularities at the school level.

10. Recent legislation has reinforced all four key objectives of the Project (coverage, quality,

accountability and governance). The enactment by the National Congress of the Fundamental Law of

Education on January 16, 2012 – published in La Gaceta on February 22, 2012 and effective as of

March 13, 2012 - significantly upgraded the previous Organic Law for Education, which had been

passed in November 1966. In terms of coverage, it increased the number of compulsory years of

4

education from six to twelve, embedding now the kindergarten year as the first compulsory year of

schooling. Regarding quality, it created the National Council for Education, which will oversee the

quality of the National System of Education, the entity responsible for student assessment, teacher

assessment, and school accreditation and certification. In terms of accountability, the law further

ratifies the principles of the Law for the Strengthening of Public Education and Community

Participation –- approved on April 2, 2011 and published in La Gaceta on May, 25 2011, when it

became effective - by which community participation in school management, a core component of

this Project, is confirmed as a mandatory part of the organization/structure of the education system.

Finally, regarding governance, the law decentralizes responsibility within SEDUC, creating

departmental, municipal and district-based offices.

11. Regulations are being prepared to operationalize the creation of the National System of

Education which is expected to mainstream PROHECO teachers into the regular public system. In

addition, community participation is expected to be institutionalized through creation of community-

based councils for educational development at both the municipal and district level (for large

municipalities).

C. PROPOSED CHANGES

Withdrawal condition and other undertakings

12. The withdrawal condition 1(c), Schedule 2, Section IV.B. of the Financing Agreement,

signed on July 2, 2008, has been waived since INPREMA has now reinstated the pension rights of

PROHECO teachers, the L. 35,915,610 is reserved for PROHECO teachers within an account in

INPREMA, and a plan to fully fund PROHECO teachers’ INPREMA pensions is in place (see

paragraph 6 above). Therefore, there is no need to deposit the L. 35,915,610 into another account

given that the INPREMA account where the funds have been since 1999 is now satisfactory to the

Bank.

13. The requirements included in the Other Undertakings Section of the Financing Agreement

have been modified as follows:

Other undertaking 1: This undertaking has been amended with a new dated covenant since

the determination of the entitlements of each PROHECO teacher has not been finished yet

and is now expected to be completed by March 31, 2013.

Other undertaking 2: This undertaking has been deleted from the amended Financing

Agreement. Since INPREMA has been reinstated as the manager of the pension fund for

PROHECO teachers, there is no need to hire a private firm as manager.

Other undertaking 3: This undertaking has been amended with a new dated covenant and a

new requirement now that the funds that were in the private banking system have been

returned to the PROHECO account at INPREMA. In total an additional L. 62,272,658 has

been deposited in the PROHECO account at INPREMA.

5

Other undertaking 4: This undertaking has been amended since the Project is no longer in

need of a private pension fund to administer the pensions of PROHECO teachers. The,

amendment to this undertaking now reflects the renewed significance of the commitments

made by the Government of Honduras under the two Agreements signed in October 2011,

and referred to in paragraph 6.

Components

14. The Restructuring Paper proposes to reduce the scope of Components 1 and 2 and increase the

scope of Components 3 and 4, as follows:

Component 1: Enhancing and Scaling-Up Interventions that Address the Education Needs of the

Poor

Sub-component 1B has been reduced in scope to focus only on didactic materials in Social

Sciences and Natural Sciences, since packages in the other two subjects (Math and Spanish)

for PROHECO schools have been funded by the Common Fund of Education Donors (Fondo

Común).

Component 2: Community Participation in School Management

Component 2 has been reduced in scope to eliminate activities already financed by other

sources outside of the Project, account for the shortened implementation period, consolidate

similar activities into one subcomponent to reduce repetition, and align activities with the

Government’s strategy. A number of revisions have been made to Sub-components 2A and

2B (see Table 1 below). Sub-component 3B is unchanged.

Table 1: Changes to Sub-components 2A and 2B

Original Financing

Agreement

Change from Original Financing

Agreement Revised Financing Agreement

Sub-component 2A: Supporting the consolidation and institutionalization of the Recipient’s school management

system

Activity 2.A.1: Carrying out of

a review of the Recipient’s

existing modalities of school

management to consolidate

them into operational manuals

for community participation in

school management

Eliminated. There is no longer

need for these operational manuals

due to the clear regulations on the

modality for community

participation in school

management issued to

operationalize the Law for the

Strengthening of Public Education

and Community Participation.

Activity 2.A.2: Strengthening of

school management systems and

teaching staff management of the

PROHECO

Eliminated. Activity completed

with resources outside of the

Project (funding from GIZ).

6

Activity 2.A.3: Strengthening

of the PROHECO through: (a)

technical assistance to

institutionalize PROHECO as a

regular program of the SE; (b)

technical assistance to assess

alternatives for improving labor

income and benefits for

PROHECO teachers; and (c)

activities aimed at

strengthening the financial

management capabilities of

AECOs.

Revised. Two of the three sub-

activities of the original activity

were changed. The second sub-

activity was replaced by a new one

because the recently approved Law

of the National Teachers’ Pension

Fund Institute and Fundamental

Law of Education now ensure that

these teachers have pension

benefits equivalent to regular

public school teachers and are

expected to soon be mainstreamed

into the regular teaching career.

The language for the third activity

was also changed for the sake of

clarity.

Revised Activity 2.A.3 (now Activity 2.A.1): Strengthening of the PROHECO through: (a)

technical assistance to institutionalize

PROHECO as a regular program of the SE; (b)

activities aimed at informing PROHECO

teachers about their individual pension

benefits and rights; and (c) activities aimed at

strengthening the financial management and

recording capabilities at the AECO level.

Activity 2.A.4: Evaluation and

strengthening of the Recipient’s

traditional schools’

management system.

Eliminated. Activity completed

with resources outside of the

Project (funding from GIZ).

Activity 2.A.5: Strengthening

the social management of the

Recipient’s school management

entities to promote partnerships

with other institutions that

support the Recipient’s

education sector.

Revised. The language for this

activity was changed for the sake

of precision. The activity was also

divided into two sub-activities for

further clarity.

Revised Activity 2.A.5 (now Activity 2.A.2): The provision of training: (a) to the

Recipient’s school management entities

(AECOs, APFs, School Councils) to

strengthen social management processes and

to promote partnerships with other institutions

that support the Recipient’s education sector;

and (b) to rural school networks to strengthen

their legal, administrative, technical and

pedagogical skills for school management.

Sub-component 2B: Strengthening the Recipient’s school planning capacity and resource allocation for quality

education

Activity 2.B.1: Provision of

technical assistance to support

the implementation of a single

educational model for the

PECs.

Eliminated. Activity completed

with resources outside of the

Project (funding from GIZ).

Activity 2.B.2: Provision of

technical assistance to teachers,

parents and directors in rural

school networks to improve the

preparation of PERs

Revised. This activity has been

revised for the sake of clarity and

to add further detail. It is expected

to be implemented in only the 12

Departments not already covered

by GIZ resources.

Revised Activity 2.B.2 (new Activity 2.B.1): Provision of training to school management

entities within the rural school networks in the

preparation and monitoring of outcomes of

PECs and PERs.

Activity 2.B.3: Development

and implementation of

monitoring and school feedback

systems for the PEC’s

implementation outcomes

Revised. This activity has been

revised for the sake of clarity and

to add further detail. It is expected

to be implemented in only the 12

Departments not already covered

by GIZ resources.

Revised Activity 2.B.3 (new Activity 2.B.2): Distribution of operational manuals for the

preparation and monitoring of outcomes of

PECs and PERs.

7

Activity 2.B.4: Development of

training programs for

PROHECO teachers

Eliminated. Activity completed

under Component 1, since all

training for PROHECO teachers

was undertaken synergistically at

the same time. Development of

training programs was financed

with funds outside of the Project

(local funds).

Activity 2.B.5: Strengthening

of input and educational

resource allocation strategies at

the school level and

development of efficient

distribution and reception

systems that include

community participation

Eliminated. A revised version of

this activity is expected to be

financed under a revised version of

the activities in Sub-component

2.A.

Activity 2.B.6: Strengthening

of the allocation and settlement

system for financial transfers to

school management modalities

Eliminated. A revised version of

this activity is expected to be

financed under a revised version of

the activities in Sub-component

2.A.

Component 3: Governance and Institutional Strengthening of SEDUC

Sub-component 3.A.1 has been increased in scope in line with the set of activities originally

envisioned. It would finance the deployment of TSBs in the remaining 12 Departments of the

country, building on those already launched in 6 Departments with funding from GIZ,

starting with 3 municipalities per Department in the year 2012. It would also finance: i) data

collection for updating the database on school infrastructure known as Plan Maestro (Master

Plan); ii) a consultancy to evaluate human resources in SEDUC and its departmental

branches and propose a new organizational chart for SEDUC under the new decentralized

structure; and iii) a series of consultancies to provide technical support to SEDUC’s key

authorities for strengthening their capacity to implement the Project.

Component 4: Project Administration

This component has been increased in scope since the Project has assumed financing of staff

that are critical to the operation of the Project, but for which funding was not originally set

aside.

Institutional Arrangements

10. Instead of an EFA Coordination Unit, administrative and fiduciary aspects of Project

administration are being handled by a Project Management Unit that has been set up specifically for

the Project. This arrangement was proposed by the Government and was found satisfactory to the

Bank from a technical and fiduciary standpoint.

8

Results/Indicators

15. The original Results Framework and Monitoring (RFM) table presented 6 Project

Development Objective (PDO)-level results indicators and 16 Intermediate Result Indicators (IRIs).

Under the proposed changes to the RFM, there would be 4 PDO-level results indicators and 14 IRIs.

Also, targets for some indicators have been updated based on progress to date and revised

expectations in line with the restructured Project. The revised RFM is in Annex 1.

16. PDO-level Indicators. Under the restructured Project, there would be 4 PDO-level

Indicators: 2 indicators with revised targets to measure progress toward the coverage and quality

objectives, 1 revised indicator to measure achievement of the accountability objectives that is a

merger of 2 original indicators, and 1 revised indicator to measure achievement of the governance

objective. One original PDO-level indicator that had provided an additional measure of progress

toward the accountability objective has been dropped.

Coverage

PDO-level indicator 1:

Continued Indicator: Increased preschool enrollment in targeted areas

o Original target: 53 percent

o Revised target: 65 percent

The target has been revised because of improved data on population projections, which are used

in the denominator of enrollment rates.

Quality

PDO-level indicator 2:

Continued Indicator: Increased 6th

- grade gross completion rates in PROHECO schools

o Original target:45 percent

o Revised target: 98 percent

The target has changed because of improved data generated under the Project. The original target

had been set on the basis of averages at the national level.

Accountability

PDO-level indicator 3:

Original Indicator: Reduction in teacher absenteeism in targeted regions.

Original Indicator: Compliance with the official school calendar in targeted regions.

Revised Indicator: Percentage of PROHECO schools that report, through the PROHECO

module of SEDUC’s web portal, information about enrollment, teacher absenteeism and

number of school days.

9

The accountability indicator has been revised by building on two of the original accountability

indicators. The web portal of SEDUC is expected to have a “PROHECO schools” module.

AECOs will report, on a monthly basis and through the web, on enrollment, the number of days

each individual teacher was present or not at school, and the number of days there was no school,

be it for exogenous factors (torrential rains) or because a teacher was absent.

Dropped Indicator: Increased proportion of schools who involve parents in social audits of

the schools using the 60-words-per-minute fluency test in second grade in targeted areas

This indicator, which was meant to be an indicator of accountability to parents, has been

dropped. It had been originally thought of as a measure of social audit/accountability of the

quality of schools, by having parents who have 2nd

grade students test their children’s skills in

reading through the Early Grade Reading Abilities (EGRA) test, which tests the number of

words a 2nd

-grade student can read in a minute. This test, however, was never meant to be

administered by parents since it involves some training that is not amenable to illiterate parents

or those with limited education.

Governance

PDO-level indicator 4:

Original Indicator: Development of a balanced scorecard for the national, departmental and

school level and its distribution to all departments and schools.

Revised Indicator: Increased proportion of complaints submitted to SEDUC’s Transparency

Unit made through Transparency School Boards.

The original indicator has been revised since with the introduction of Transparency School

Boards (TSBs), schools have now a stronger system for improving the governance of the system

and its grievance redress mechanism.

11. Intermediate Results Indicators. Under the restructured Project, there would be 14 IRIs. Of

the original 16 IRIs, 2 would be unchanged, 14 would be consolidated into 9 revised IRIs. Three

new IRIs would be added. The target for one of the two unchanged IRIs has been revised.

Component 1: Enhancing and Scaling Up Interventions that Address the Education Needs of the

Poor

IRI 1:

Original Indicator: Number of new CCEPREBs opened.

Original Indicator: Number of CCEPREBs equipped with fungible materials.

Revised Indicator: Number of new CCEPREBs opened and functioning with adequate school

supplies.

10

This indicator is a result of the merger of two original IRIs, with the clarification that not only

would the Project aim at opening CCEPREBs, but also have them operating by the end of the

Project.

IRI 2:

Original Indicator: Number of new CCEPREB volunteers trained.

This indicator has remained unchanged, and so have its targets.

IRI 3:

Original Indicator: Number of PROHECO schools receiving the packages of didactic

material.

Original Indicator: Packages of didactic material adapted to the National Curriculum for the

first two cycles of basic education in the areas of Math, Spanish, Social Sciences and Natural

Sciences.

Original Indicator: Teacher manual/toolkit for the usage of the package of didactic materials

designed.

Revised Indicator: Number of PROHECO schools receiving packages of didactic material

adapted to the National Curriculum, including textbooks and teacher workbooks, in Natural

and Social Sciences.

This indicator is a result of the merger of three original IRIs, with the elimination of the didactic

materials for Math and Spanish consistent with the revised Project description.

IRI 4:

Original Indicator: Number of PROHECO teachers trained in active-participatory

methodologies and in the usage of multi-grade didactic materials.

Revised Indicator: Number of PROHECO teachers trained in the usage of multi-grade

didactic materials.

This indicator would be revised to reflect that the pilot training in active-participatory

methodologies would not be expanded under the Project to include PROHECO teachers because

of a decision by the authorities of the Ministry of Education that do not consider this training

relevant any longer.

IRI 5:

New Indicator: Number of beneficiaries (number), of which female (percentage).

This indicator, a core indicator, would be added to reflect the number of total beneficiaries

(CCEPREB volunteers, PROHECO teachers, and PROHECO students) as a result of the

interventions (envisaged activities) of the Project.

11

Component 2: Community Participation in School Management

IRI 6:

New Indicator: Number of workshops organized to disseminate information related to the

PROHECO teachers' pension benefits and rights.

This indicator would be added consistent with the revised activities for Component 2.

IRI 7:

Original Indicator: Promoters and coordinators of PROHECO teachers in financial

management and recording capabilities at the AECO level.

This indicator has remained unchanged, but its targets were changed in years 3 to 5 of the Project

(2010-2012) in order to correct a mistake in the RFM of the PAD.

IRI 8:

Original Indicator: Operational Manual on community-based school management revised

and distributed to all AECOs.

Original Indicator: PEC templates consolidated into a single official template applicable to

all schools.

Revised Indicator: Number of operational manuals on the preparation and monitoring of

PECs and PERs distributed to school networks in the 12 targeted departments.

This indicator is the result of a merger of two original IRIs consistent with the funding, by GIZ,

of the preparation of the operational manual on the development and monitoring of PECs and

PERs, drawing on the basic principles of community-based school management, and their

distribution to all school networks (including all AECOs within school networks) in the 6

Departments (of 18) targeted by them. It reflects the Project’s targeting of the other 12

Departments in Honduras.

IRI 9:

Original Indicator: AECO members trained in the preparation of PEC and PER.

Revised Indicator: Number of school networks with PERs (that draw on school PECs)

developed in the 12 targeted departments.

This indicator would be revised consistent with funding, by GIZ, of all AECO members located

in schools belonging to school networks in the 6 Departments of intervention of GIZ; and that

schools in these Departments have already developed PERs. It reflects the Project’s targeted

training and support to the development of PECs and PERs in the other 12 Departments in

Honduras.

12

IRI 10:

Original Indicator: Managerial information systems developed and implemented in targeted

schools and networks.

Original Indicator: Participatory school management monitoring and evaluation system to

monitor school, teacher and student performance developed and implemented in targeted

schools and networks.

Revised Indicator: Integrated system for community-based school management developed

and implemented in all school networks in the 12 targeted Departments and linked to the

central level web-based Education Management Information System.

This indicator is the result of the merger of two original IRIs because both original indicators

focused on: i) information systems; ii) the development and implementation of the system; and

iii) school networks and the corresponding schools that belong in these networks. Since the

system will be an integrated system, not two different ones, one indicator is sufficient. It also

reflects that this activity will be financed by the Project only in the 12 Departments that are

targeted by the Project (and not those 6 covered by GIZ funding).

Component 3: Governance and Institutional Strengthening of SEDUC

IRI 11:

Original Indicator: Availability of information in a web-based technological platform for

monitoring performance.

Revised Indicator: Development and implementation of a web-based integrated education

management information system.

This indicator would be revised to clarify that it refers to the integrated education management

information system being financed by the Project.

IRI 12:

New Indicator: Number of schools with Transparency School Boards deployed in the 12

departments targeted by the Project.

This indicator would be added in line with the creation of the TU and the planned deployment of

TSBs in all 12 Departments targeted.

IRI 13:

Original Indicator: HRM system strengthened and SIARHD decentralized to departments.

Revised Indicator: HRM system strengthened and SIARHD fully migrated to the SIAFI and

fully decentralized to all 18 departments of the country.

This indicator would be revised to clarify that: i) the Project continues to support migration from

SIARHD to the Integrated System for the Financial Administration of Public Servants’ Payroll

13

(Sistema Integrado de Administración Financiera or SIAFI) and ii) the new system would be

decentralized to all 18 departments.

IRI 14:

Original Indicator: SINECE personnel trained in using information from learning assessment

to monitor performance, feedback into policy making and results dissemination.

Revised Indicator: Staff from DIGECE and other relevant technical units of SEDUC trained

in using information from learning assessment to monitor performance, feedback into policy

making and results dissemination.

This indicator would be revised to clarify that SEDUC staff, who are responsible for the National

System for the Evaluation of Quality in Education (Sistema Nacional de Evaluación de la

Calidad or SINECE), are being trained through the Project. This includes staff from SEDUC's

General Directorate for the Evaluation of Quality in Education (Dirección General de

Evaluación de la Calidad Educativa or DIGECE).

Financing

Costs

12. The changes in Project components require changes to Project costs being financed by the

Bank to reflect the decrease in scope of Components 1 and 2 and increase in scope of Components 3

and 4. The Government had originally planned to finance, through counterpart funds, activities

across all components. However, government financing has been restricted to the payment of

stipends for school volunteers under Component 1. Changes to Project costs are shown in Table 2

below.

14

Table 2: Project Costs

Components

(US$m)

Current Revised

Bank Counterpart Bank Counterpart

1) Enhancing and Scaling Up Interventions that

Address the Education Needs of the Poor 6.30 0.73 5.76 1.20

1.1) Coverage Expansion for Preschool

Education in Rural Areas 3.37 0.70 3.17 1.20

1.2) Quality Improvement in Multi-grade

PROHECO Schools through Teacher

Training and Provision of Materials 2.94 0.03 2.59 -

2) Community Participation in School

Management 3.53 0.06 1.54

-

2.1) Consolidation and Institutionalization of the

School Management System 1.63 0.04 0.38

-

2.2) School Planning and Resources for Quality

Education 1.39 0.02 0.69

-

2.3) School Management and Education

Performance Monitoring and Evaluation 0.51 - 0.47

-

3) Governance and Institutional Strengthening

of SEDUC 4.85 0.24 5.46

-

3.1) Information for Improved Performance and

Greater Accountability 4.15 0.24 3.24

-

3.2) National System of Assessment of Learning

Outcomes 0.27

- 1.19

-

3.3) Human Resources Management and

Evaluation 0.43

- 1.03

-

4) Project Administration 0.68 - 2.08 -

Total 15.37 1.03 14.84 1.20

13. There are differences between the original amounts allocated for the Project and the revised

amounts under the Restructured Project, for both the Bank-financed and the counterpart-financed

portions. In the case of the former, differences are due to variations in the exchange rate between

Special Drawing Rights (SDRs) and the US Dollar. The exchange rate at Project approval was

US$1.57/SDR, whereas it is, as of June 27, 2012, US$1.51/SDR. In the case of the latter, the

contributions made by the Government of Honduras reached, as of today, a total of US$1.2 million,

when the amounts contributed in Lempiras are converted into US dollars at the valid exchange rate

at the moment of the transfer of funds from the Ministry of Finance to the Ministry of Education.

15

Reallocation of Loan Proceeds

14. The changes in the Project components and costs require a reallocation among categories as

shown in the Table 3 below.

Table 3: Disbursement Table

Category of Expenditure Allocation (SDR) %

Financing

Category Original Revised

(1) Goods, consultant’s services,

Non-consultant services and

Training for Part 1 of the Project 4,000,000 3,804,000 100

(2) Goods, consultant’s services,

Non-consultant services and

Training for Part 2 of the Project 2,250,000 1,016,000 100

(3) Goods, consultant’s services,

Non-consultant services and

Training and Operating Costs for

Part 3.A of the Project

2,650,000 2,140,000 100

(4) Goods, consultant’s services,

Non-consultant services and

Training for Part 3 of the Project

other than those covered by

Category (3) above

450,000 1,465,000 100

(5) Goods, consultant’s services,

Training and Operating Costs for

Part 4 of the Project 450,000 1,375,000 100

TOTAL AMOUNT 9,800,000 9,800,000 100

15. In addition, the definition of Operating Costs in the Financing Agreement will be clarified.

The phrase “stipends for school volunteers under Part 1.A. of the Project,” will be deleted. This

change is necessary to clarify that stipends for school volunteers are being paid only by counterpart

funds and not with IDA funds, and that Operating Costs are financed only under Part 3A and Part 4

of the Project. The reference to Part 3.A and Part 4 of the Project will also be deleted since the table

above is clear as to which categories of expenditures will include operating costs. The definition

would be:

“Operating Costs” means in respect of the table in Section IV.A.2 of Schedule

2 to this Agreement, the incremental expenses incurred on account of Project

implementation, including office equipment and supplies, vehicle operation

and maintenance, communication and insurance costs, office administration

costs, utilities, travel and per diem costs related to the supervision of the

Project, supervision costs and salaries of locally contracted employees.

16

ANNEX 1: Results Framework and Monitoring

HONDURAS: EDUCATION QUALITY, GOVERNANCE, & INSTITUTIONAL STRENGTHENING

Project Development Objective (PDO): The objective of the Project is to support the Recipient to increase the coverage, quality, accountability and governance of its basic

education system.

PDO Level

Results

Indicators Co

re

D=Dro

pped

C=Con

tinue

N=

New

R=Revised

Unit of

Measure Baseline

Cumulative Target Values

Frequen

cy

Data

Source/

Methodolog

y

Responsibil

ity for Data

Collection 2008

(Actual)

2009

(Actual)

2010

(Actual)

2011

(Actual) 2012

Indicator One

(Coverage):

Increased

preschool

enrollment in

targeted areas

C Percenta

ge 56.5 56.5 58.4 61.5 63.5 65.0

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Unit of

Planning

and

Managemen

t Evaluation

of SEDUC

Indicator Two

(Quality):

Increased 6th-

grade gross

completion

rates in

PROHECO

schools

C Percenta

ge Not available

Not

availabl

e

Not

available 82.3 96.2 98.0

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

Indicator

(Accountabilit

y): Increased

proportion of

schools who

involve parents

in social audits

of the schools

using the 60

words per

minute fluency

test in second

D Percenta

ge

No school

currently 0 10 15 20 25

Annual

consult

ant

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

UPEG

17

grade in

targeted areas

Indicator

Three

(Accountabilit

y): Percentage of PROHECO

schools that

report through

the PROHECO

module of

SEDUC’s web

portal

information

about

enrollment,

teacher

absenteeism

and number of

school days

R Percenta

ge 0 0 0 0 0 50

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

Indicator

Four

(Governance): Increased

proportion of

complaints

submitted to

SEDUC’s

Transparency

Unit made

through

Transparency

School Boards.

R Percenta

ge 0 0 0 0 20 40

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Transparenc

y Unit of

SEDUC

INTERMEDIATE RESULTS INDICATORS (IRIs)

Intermediate Result (Component One): Enhancing and Scaling Up Interventions that Address the Education Needs of the Poor

IRI 1: Number

of new

CCEPREBs

opened and

functioning

R Number 0 100 200 400 600

800 (300 of

Annual

evaluat

ions

Semi-

annual

Administrati

ve Records

of SEDUC

Pre-School

Education

Unit of

SEDUC

18

with adequate

school supplies

which are

EIB) supervi

sion

reports

IRI 2: Number

of new

CCEPREB

volunteers

trained

C Number 0 100 300 600 900

1,200 (450 of

which are

EIB)

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Pre-School

Education

Unit of

SEDUC

IRI 3: Number

of PROHECO

schools

receiving the

packages of

didactic

material

adapted to the

National

Curriculum,

including

textbooks and

teacher

workbooks, in

Natural and

Social

Sciences.

R Number 0 0 525 1,050 1,575

2,099 (including

all

PROHECO- EIB

schools)

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

IRI 4: Number

of PROHECO

teachers

trained in the

usage of multi-

grade didactic

materials

R Number 0 0 1,038 2,076 3,114

4,152 (this

includes

all PROHEC

O-IBE

teachers)

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

IRI 5: Number

of beneficiaries

(number), of

which female

(percentage) N Number 0 100

(50)

34,328

(50)

68,656

(50)

102,984

(50)

137,312

(50)

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

19

Intermediate Result (Component Two): Community Participation in School Management

IRI 6: Number of

workshops

organized to

disseminate

information

related to the

PROHECO

teachers' pension

benefits and rights

N Number 0 0 0 0 0 54

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

IRI 7: Promoters

and coordinators

of PROHECO

program trained in

financial

management and

recording

capabilities at the

AECO level

C Number 0 0 220 220 220 220

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

PROHECO

Unit of

SEDUC

IRI 8: Number of

operational

manuals on the

preparation and

monitoring of

PECs and PERs

distributed to

school networks

in the 12 targeted

departments

R Number 0 0 0 0 0 1,500

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Modernizati

on Unit of

SEDUC

IRI 9: Number of

school networks

with PERs (that

draw on school

PECs) developed

in the 12

departments

targeted.

R Number 0 0 0 0 0 150

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Modernizati

on Unit of

SEDUC

20

IRI 10: Integrated

system for

community-based

school

management

developed and

implemented in

all school

networks in the 12

departments

targeted and

linked to the

central level web-

based Education

Management

Information

System

R Number 0 0 0 0 0 1

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Modernizati

on Unit of

SEDUC

Intermediate Result (Component Three): Governance and Institutional Strengthening of the Ministry of Education

IRI 11:

Development and

implementation of

a web-based

integrated

education

management

information

system

R

Qualitati

ve

descripti

on

No system

currently in

place

System design and a

prototype in operation

and/or evaluation

System

design

complet

ed and

fully

operational

System

fully

operational with

updated

information from

50% of

departments

System

fully

operational with

updated

information from

100% of

departments

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC UPEG

IRI 12: Number

of schools with

Transparency

School Boards

deployed in the 12

targeted

departments

N Number 0 0 0 0 0 6,194

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

Transparenc

y Unit of

SEDUC

IRI 13: HRM

system

strengthened and

SIARHD fully

migrated to the

SIAFI and fully

decentralized to

R

Qualitati

ve

descripti

on

Undifferentia

ted lines of authority,

responsibility

, information and execution

across the

central level

Initial HRM

strengthening at departmental level

SIARHD/SIAFI

interface completed

and ethnic and language variables

included

50% of

department with

SIARH

D and HRM

processe

s

100% of departme

nts

integrated in

SIARHD

100% of

SIARHD

migrated to SIAFI

Annual

evaluat

ions

Semi-

annual

supervi

sion

Administrati

ve Records

of SEDUC

General

Directorate

of Teaching

Human

Resources

of SEDUC

21

all 18 departments

of the country and between

central and departmental

levels

Valid system of

payroll integrity

integrate

d reports

IRI 14: Staff from

DIGECE and

other relevant

technical units of

SEDUC trained in

using information

from learning

assessment to

monitor

performance,

feedback into

policy making and

results

dissemination

R Number 0 0 0 0 10 50

Annual

evaluat

ions

Semi-

annual

supervi

sion

reports

Administrati

ve Records

of SEDUC

DIGECE

and

Modernizati

on Units of

SEDUC