Document of The World Bank OFFICIAL USE ONLY Report No: 78046-ST INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 0.6 MILLION (US$0.9 MILLION EQUIVALENT) AND A GLOBAL PARTNERSHIP FOR EDUCATION TRUST FUND GRANT IN THE AMOUNT OF US$1.1 MILLION TO THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE FOR THE QUALITY EDUCATION FOR ALL PROJECT (PHASE II) NOVEMBER 25, 2013 Education Sector Unit for East and Southern Africa Country Department AFCS2 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 2013) Currency Unit = Dobras (STD) US$1 = 17,937 STD FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AAP Annual Action Plan AFAP Project Fiduciary and Administrative Agency (Agência Fiduciária e de Administração de Projectos) CSR Country Status Report DA Designated Account DAE The Directorate of Administration of Equipment within the MoE DAF Directorate of Administration and Finance DEB Directorate of Primary Education DPE Directorate of Primary Education DPEI Directorate of Planning and Education Innovation DPEI Directorate of Planning and Education Innovation DSA Debt Sustainability Assessment EFA Education for All EFOPE Teacher Training School (Escola de Formação de Professores) EGRA Early Grade Reading Assessment EMIS Education Management Information System ESP Education Sector Plan FDI Foreign Direct Investment FM Financial Management GDP Gross Domestic Product GER Gross Enrollment Rate GIE General Inspectorate of Education GPE Global Partnership for Education IBRD International Bank for Reconstruction and Development ICS Individual Consultant’s Selection IDA International Development Association IPF Investment Project Financing ISA International Standards on Auditing M&E Monitoring and Evaluation MoE Ministry of Education ORAF Operational Risk Assessment Framework PDO Project Development Objective PforR Program-for-Results PIM Project Implementation Manual PRSP Poverty Reduction Strategy Paper QCBS Quality and Cost Based Selection SE Supervising Entity SSSP Social Sector Support Project STP São Tomé and Príncipe TA Technical Assistance UN United Nations UNICEF United Nations Children Fund WFP World Food Program Vice President: Makhtar Diop Country Director: Laurence C. Clarke Sector Director: Ritva S. Reinikka Sector Manager: Sajitha Bashir Task Team Leader: Geraldo Martins Democratic Republic of São Tomé and Príncipe Quality Education for All Project (Phase II) TABLE OF CONTENTS I.  STRAGEGIC CONTEXT ...................................................................................................... 1  A.  COUNTRY CONTEXT ................................................................................................... 1  B.  SECTOR AND INSTITUTIONAL CONTEXT .............................................................. 4  II.  PROJECT DEVELOPMENT OBJECTIVE ........................................................................... 9  III.  PROJECT DESCRIPTION................................................................................................... 11  A.  PROJECT COMPONENTS ........................................................................................... 11  B.  PROJECT FINANCING ................................................................................................ 14  C.  LESSONS LEARNED AND REFLECTED IN PROJECT DESIGN ........................... 15  IV.  IMPLEMENTATION ........................................................................................................... 15  A.  INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS ......................... 15  B.  RESULTS MONITORING AND EVALUATION ....................................................... 17  C.  SUSTAINABILITY ....................................................................................................... 17  V.  KEY RISKS AND MITIGATION MEASURES ................................................................. 18  A.  RISK RATINGS SUMMARY TABLE ......................................................................... 18  B.  OVERALL RISK RATING EXPLANATION .............................................................. 18  VI.  APPRAISAL SUMMARY ................................................................................................... 18  A.  ECONOMIC AND FINANCIAL ANALYSIS.............................................................. 18  B.  TECHNICAL ................................................................................................................. 22  C.  FINANCIAL MANAGEMENT .................................................................................... 23  D.  PROCUREMENT .......................................................................................................... 23  E.  SOCIAL (INCLUDING SAFEGUARDS) .................................................................... 24  F.  ENVIRONMENT (INCLUDING SAFEGUARDS) ..................................................... 24  Annex 1. Results Framework and Monitoring .............................................................................. 25  Annex 2. Detailed Project Description ......................................................................................... 27  Annex 3. Implementation Arrangements ...................................................................................... 31  Annex 4. Operational Risk Assessment Framework (ORAF) ...................................................... 39  Annex 5. Implementation Support Plan ........................................................................................ 43  Annex 6. Education Sector Background and context ................................................................... 45  Annex 7. Team Composition ........................................................................................................ 48  List of Tables Table 1: Evolution of Access to Education in STP......................................................................... 5  Table 2: Intake rate at different grades of primary education between 2002-03 and 2010-11 a) .... 6  Table 3: Stock of Primary School Teachers according to the Training Received ........................ 20  Table 4: Comparison of Unit Costs of Training at EFOPE and the Proposed Training by the Project ........................................................................................................................................... 21  Table 5: Breakdown of Costs of Learning Assessment ................................................................ 22  Table 6: Audit Compliance Requirements .................................................................................... 35  Table 7: FM Actions Needed ........................................................................................................ 35  Table 8: Procurement Thresholds ................................................................................................. 37  Table 9: Skills needs and resources estimate ................................................................................ 43  Table 10: Summary of staff skills required................................................................................... 44  List of Figures Figure 1: Proportion of Recurrent Education Expenditure in the Total Recurrent Expenditure (excluding debt services): International Comparison (countries of GNP between 800 and 1,800 US$) ................................................................................................................................................ 3  Figure 2: Education Budget (Recurrent and Investment) as a Share of Government Total Budget ....................................................................................................................................................... 19  Figure 3: Primary school survival rates from grades 1 to 6 for four cohorts ................................ 46  . . PAD DATA SHEET Sao Tome and Principe São Tomé and Príncipe Quality Education for All (P146877) PROJECT APPRAISAL DOCUMENT . AFRICA AFTEE Report No.: PAD783 . Basic Information Project ID EA Category Team Leader P146877 C - Not Required Geraldo Joao Martins Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 20-Dec-2013 30-Jun-2017 Expected Effectiveness Date Expected Closing Date 03-Feb-2014 30-Jun-2017 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Sajitha Bashir Ritva S. Reinikka Laurence C. Clarke Makhtar Diop . Borrower: Democratic Republic of Sao Tome and Principe Responsible Agency: Ministry of Education Contact: Jorge Bom Jesus Title: Minister Telephone 2392223366 Email: bjesus.jorge@gmail.com No.: . Project Financing Data(in USD Million) [ ] Loan [X] Grant [ ] Guarantee [ ] Credit [ X ] IDA Grant [ ] Other Total Project Cost: 2.00 Total Bank Financing: 0.90 i Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT 0.00 IDA Grant 0.90 Education for All - Fast Track Initiative 1.10 Total 2.00 . Expected Disbursements (in USD Million) Fiscal 2014 2015 2016 2017 0000 0000 0000 0000 0000 Year Annual 0.70 0.80 0.40 0.10 0.00 0.00 0.00 0.00 0.00 Cumulati 0.70 1.50 1.90 2.00 0.00 0.00 0.00 0.00 0.00 ve . Proposed Development Objective(s) The Development Objective of the proposed operation is to improve the system of in-service teacher training and to strengthen the management of human resources in the education sector in São Tomé and Príncipe. . Components Component Name Cost (USD Millions) Component 1: Improving the System of In-Service Teacher 1,100,000.00 Training in Primary Education. Component 2: Strengthening Management of Human 900,000.00 Resources in the Education Sector. . Institutional Data Sector Board Education . Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Education Primary education 100 Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. . Themes Theme (Maximum 5 and total % must equal 100) ii Major theme Theme % Human development Education for all 100 Total 100 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency Adopt the Project Implementation 30-Jan-2014 Manual Description of Covenant The Recipient has adopted the updated Project Implementation Manual in form and substance satisfactory to the Association. Name Recurrent Due Date Frequency Subsidiary Agreement between AFAP 30-Jan-2014 and the MoF Description of Covenant Subsidiary Agreement between AFAP and the MoF means the agreement referred to in Section I.B of Schedule 2 to the Financing Agreement pursuant to which the Recipient shall make the iii proceeds of the Financing available to the Project Implementation Entity. Name Recurrent Due Date Frequency The GPE Co-Financing Agreement has 30-Jan-2014 been executed and delivered Description of Covenant Co-financing means the amount of one million, one hundred thousand Dollars, to be provided by IDA to assist in financing the Project. . Conditions Name Type Description of Condition Team Composition Bank Staff Name Title Specialization Unit Wolfgang M. T. Chadab Senior Finance Officer Senior Finance Officer CTRLA Adriana M. da Cunha Program Assistant Program Assistant AFTHD Costa Federico Ricardo Consultant Consultant LCSTR Manuel Mejer Cheikh A. T. Sagna Senior Social Senior Social AFTCS Development Specialist Development Specialist Geraldo João Martins Senior Education Team Lead AFTEW Specialist Daniela Anna B. D. Senior Counsel Senior Counsel LEGAM Junqueira José Janeiro Senior Finance Officer Senior Finance Officer CTRLA Amos Martinho Malate Procurement Analyst Procurement Analyst AFTPE Elvis Teodoro Bernado Financial Management Financial Management AFTME Langa Specialist Analyst Sonia Guilherme Consultant Consultant AFTPE Patrick Fillion Consultant Consultant LCSHE Non Bank Staff Name Title Office Phone City . Locations iv Country First Location Planned Actual Comments Administrative Division v I. STRAGEGIC CONTEXT A. COUNTRY CONTEXT 1. São Tomé and Príncipe (STP) is a small island nation with an open economy. An archipelago of just over 1,000 square kilometers, with fewer than 200,000 inhabitants and a gross domestic product (GDP) per capita of about US$2,500 (2012), STP is one of the smallest economies in Africa. The country faces a number of complex development challenges due to its small size and structural external vulnerability, as well as its weak institutional capacity and aid dependence. 2. São Tomé and Príncipe is currently experiencing a demographic transition, with a decrease of fertility, mortality and birth rates, resulting in a decreasing pressure on the education system.1 It is expected that, over time, the number of children of school age will stabilize or even decrease, therefore moderating enrollments in both primary and secondary education. This trend, and the fact that the country has already achieved universal primary completion and has a respectable 83 percent enrollment rate in lower secondary education, opens the unique opportunity to focus efforts and scarce resources on quality improvements of the primary education system with a perspective to gradually opening the way for improvements in secondary and post-secondary education for employment. 3. In 2005 the country launched its first National Poverty Reduction Strategy Paper (PRSP-I) with a seven-year implementation timeframe, though its long-term term antipoverty objectives extended beyond this horizon. Progress under the PRSP-I was mixed, with significant gains in education and health indicators offset by weak income growth and limited poverty reduction. In 2012 the Government finalized its PRSP-II for the period 2012-2016. A substantial improvement over its predecessor, the PRSP-II stresses the importance of good governance and sound macroeconomic management. 4. In the last decade, São Tomé and Príncipe registered the highest economic growth since independence in 1975, and became a lower middle income country in 2008. GDP growth averaged about 5 percent per year between 2001 and 2011,2 compared to an average of just 1.4 percent during the 1990s. Growth has been driven by rising world cocoa prices (STP’s primary export commodity) and strong tourism receipts (STP’s largest source of export revenue), though payments for petroleum exploration rights and rising private investment inflows, particularly Foreign Direct Investment (FDI), have accounted for an increasing share of GDP. FDI has been largely devoted to 1 The proportion of age group 6-11 will decrease from 15.9% in 2010 to 14.1% in 2020. The proportion of the age group 12-17 will decrease from 14.4% to 13.4% over the same period. 2 GDP per capita averaged US$ 1,400 in 2011. After a marked economic slowdown in 2009 (growth of 4 percent), growth picked up slightly in 2011 to 4.5 percent. The gradual recovery continues, with growth projected at 4.5 percent in 2012, and at 5.5 percent in 2013, driven by continued oil exploration activities, investment in construction financed by short-term capital inflows, and tourism receipts. Growth is predicted to grow steadily until 2015, when the anticipated start of oil production is projected to push annual GDP growth to a massive 37.7 percent (under a non-oil scenario, growth is projected at 6 percent in 2015). 1 building physical and financial infrastructure in anticipation of future oil production, but also reflects the broader growth of the service sector and of tourism in particular. 5. During the past five years, STP’s economy was hard hit by two consecutive external shocks, i.e., (i) the international food and fuel price spike in mid-2008, and (ii) global financial crisis of 2009, which partially offset the effects of fiscal consolidation and inflation-reducing policies. A Debt Sustainability Analysis (DSA) conducted in June 2012 notes that STP’s risk of debt distress will remain high over the medium term, and reducing this risk will depend largely on oil production – even though STP reached the HIPC Completion Point in 2007 and reduced its debt-to-GDP ratio from over 300 percent in the 1990s to 50.5 percent in 2009.3 A Second Governance and Competitiveness Development Policy Operation has been prepared and approved by the Board in May 2013 to provide additional fiscal resources to STP to protect priority sector spending and deepen structural reforms. 6. Regardless of a decade of robust growth, poverty remains a serious and pressing concern,4 and so does unemployment.5 Urban population progressed from 55 percent in 2001 to 61 percent in 2010. Strengthening the linkages between growth and poverty reduction consequently presents a critical challenge for STP's policymakers. However, despite high poverty and unemployment indicators, STP has made significant progress on social policy objectives and on some of the Millennium Development Goals (MDGs). STP is currently on track to achieve its targets in universal primary education, reducing under-5 mortality, and combatting the spread of HIV/AIDS.6 These achievements have been driven by substantial increases in education and public health expenditures,7 with the former rising from 2.7 percent of GDP in 2002 to 8.8 percent in 2010 while the latter increased from 3.6 percent of GDP in 2001 to 4.2 percent in 2010. Public financing for social protection and community services has increased modestly over the past five years and is currently equal to about 1 percent of GDP. 7. The service sector now accounts for a majority share of STP’s economy. Due to its small economic size and natural indivisibilities in Government services, the public sector represents about 28 percent of GDP. Private-sector services - especially tourism, trade and transportation - have grown rapidly in recent years and now account for about one-third of GDP, while the service sector as a whole is responsible for about 60 percent of total employment. Construction has been among 3 The 2012 DSA notes that under a non-oil scenario reaching a sustainable debt level would require an additional fiscal adjustment equivalent to about 2 percent of GDP over the period 2013-2015 (compared to the baseline). 4 A recent household survey shows that the percentage of people living below the national poverty line stood at 61.7 percent in 2010. 5 According to the 2000 and 2010 household surveys, 54 percent of the population is currently of working age, with that share having grown by just 2.2 percent during the 2000s. Unemployment, however, rose from 12 to 14 percent during the same period. 6 The latest UNDP Human Development Index ranks STP 144th out of 187 countries worldwide, comparable to Kenya (143rd) and Pakistan (145th), and 13th of the 45 countries in Sub-Saharan Africa (SSA). Progress on the MDGs has been inconsistent across sectors: STP is currently on track to achieve its targets in universal primary education, reducing under-5 mortality, and combatting the spread of HIV/AIDS; however, it is unlikely to reach its targets for reducing extreme poverty and hunger, promoting gender equality, and creating a global partnership for development. 7 These deficits have been financed through grants (donor contributions, mainly Portugal, Brazil, Taiwan, China, Nigeria, World Bank, IMF); debt relief (amounting to about 30 percent of GDP from 2001-11); and rising FDI associated with oil exploration and related construction (totaling about 25 percent of GDP over 2001-11). 2 STP’s fastest-growing industries, spurred by large-scale private investment in both tourism and the incipient oil sector. Beyond construction, industry in STP is essentially limited to small-scale food- processing, which is unlikely to change as labor-intensive manufacturing is structurally constrained by the small size of the domestic workforce. The primary sector accounts for about 17 percent of GDP, and its economic share has declined steadily in the last two decades due to a combination of falling agricultural production, with cacao the predominant cash crop, and the rise of the service sector. Nevertheless, agriculture still employs about one-quarter of the population and provides about 55 percent of STP’s staple foods. The fisheries subsector accounts for about 5 percent of employment and 3 percent of GDP. 8. Lack of education appears to be a major determinant of poverty. In 2010, the poverty rate for heads-of-household in STP with no formal education was 73.8 percent. On the other hand, poverty in households where the head-of-household has finished some primary education drops significantly (to 66.1 percent). Poverty rates continue to drop as education attainment increases: For households where the head-of-household has some secondary education the poverty rate is 55.1 percent; where he/she has completed secondary education it is 33.4 percent; and where he/she has tertiary education the poverty rate is 30.1 percent. This suggests that on the one side, higher levels of education seem to increase the chances of moving out of poverty in STP, on the other hand, however, the domestic labor market does not seem to be able to efficiently compensate more educated workers (significant numbers of households of educated workers still remain below the poverty line). This indicates a substantial disparity between STP's available labor-force skills and current employer demand. 9. The education sector has been and remains a priority in public spending. In other words, the country was able to place education at the center of its development agenda over the last eight years. The proportion of public expenditure in the sector increased from 2.7 percent of GDP in 2002 to 8.8 percent in 2010. In particular, recurrent expenditures increased from 17.3 percent in 2002 to 23.8 percent in 2005 to 37.9 percent in 2010. (See Figure 1, below). Figure 1: Proportion of Recurrent Education Expenditure in the Total Recurrent Expenditure (excluding debt services): International Comparison (countries of GNP between 800 and 1,800 US$) 45 41.1 37.9 40 Average 11 country 34.4 35 comparators: 25% 29.0 30 24.3 25.8 25 21.3 22.0 22.2 22.5 22.0 18.4 20 15 11.8 10 5 0 d'Ivoire,… Principe,… Ghana, 2007 Zambie, Djibouti, Sénégal, Soudan, Mauritanie, Kenya, 2010 Cameroun, Lesotho, Afrique Sao-Tomé et Bénin, 2009 2009 2009 2008 Côte 2008 2007 2009 2008 Source: Pôle de Dakar (UNESCO/BREDA). 3 B. SECTOR AND INSTITUTIONAL CONTEXT Institutional Context 10. The education sector in São Tomé and Príncipe is under the oversight of the Ministry of Education (MoE). Management of the education system is highly centralized with all-decision making processes resting with the central levels units. The sector is governed by the Framework Law of the Education System (Lei de Bases do Sistema Educativo) of 2003. According to this law, the formal education system is composed of the level of pre-school, primary education, secondary education, technical and vocational education, and higher education. Pre-school is the first level of education. It is optional and is composed of a small network of nurseries mostly located in rural areas, which enroll children 0-5 years old, and pre-schools, located essentially in urban areas and enrolling children 3-5 years old. Primary education, according to the law, is free and compulsive. It lasts six years and is divided into two cycles: a first cycle of four years (1st to 4th grade), and a second cycle of 2 years (5th to 6th grade). It enrolls children of age group 6-11. 11. Secondary education is composed of two cycles of three years. The first cycle, or general secondary education covers 7th-9th grades; the second cycle, or complementary secondary education covers 10th-12th grades. Vocational and technical education is currently offered by a variety of institutions. The Ministry of Education has in charge the Polytechnic Center, which offers vocational training courses from graduates of general secondary education, in a variety of areas such as civil works, mechanical structures, electricity, auto-mechanic, and mechanic systems. 12. A range of vocational training courses are under the institutional oversight of other Ministries. The Ministry of Health and Social Assistance manages the Health Institute (training of nurses and other health specialists) and a vocational training school that offers apprenticeship programs for young people with four years of schooling and for those unemployed, in a variety of areas (civil works, electricity and electronics, horticulture, painting, etc.). 13. Higher education is composed of one public institution (Higher Polytechnic Institute of São Tomé and Príncipe) and two private institutions (University Lusíada and Institute of Accounting and Management of Information). Higher education offers bachelor and master degrees. The main mission of the Higher Polytechnic Institute is to prepare secondary education teachers. Primary and pre-primary education teachers are trained at the Teacher Training School (EFOPE). The minimum entry level at EFOPE is 10th grade of secondary education, and training spans over three academic years. Education Sector Context 14. In 2012, the Government of São Tomé and Príncipe prepared a 10-year Letter of Education Policy (LOP) (2012-2021) providing the vision and the long-term objectives for the sector. The Letter was operationalized by the Education Sector Plan 2012-2021. The priorities of the education sector are to reach the Education Millennium Development Goals, to improve quality of education at all levels and to improve overall governance of the education sector. The Letter of Education policy was endorsed in a National Education Forum held in São Tomé in April 2012, which brought together various stakeholders (Government, development partners, private sector, and civil society 4 organizations). The Letter of Education Policy and the Education Sector Plan were approved by the Government in the Council of Ministers on July 18, 2013. 15. Over the last decade, enrollment has steadily increased at all levels of education. Private schools represented only 0.5 percent of enrollment on both primary and secondary levels of education. With regard to higher education, 55 percent of the students enrolled into higher education institutions within the country were in private institutions, in addition to Technical and vocational training. São Tomean students enrolled in higher education abroad were mostly benefitting from Government scholarships.8 16. The increase in enrollment numbers at all levels of education translated into higher enrollment rates (see table 1 below). The increase in enrollment rates in secondary education was mainly due to development of accommodation capacity and hence important increases in enrollment in general secondary (first cycle) education (from 59.8 percent to 82.9 percent). Table 1: Evolution of Access to Education in STP Levels of Enrollment numbers Enrollment rates Education (%) 2001/02 2010/11 2001/01 2010/11 Pre-primary 4,699 8,591 15.7 30.9 Primary 27,806 35,250 128.6 120.0(2012/13) Secondary 7,347 25,052 42.6 58.5 Higher (internal) 1,570 (external) 844 (vocational) 739 Source: Country Status Report (CSR). 17. São Tomé and Príncipe has virtually achieved universal primary education, and with that, gender parity. It is safe to say that all STP children enter primary school today, and the completion rate was estimated at 100 percent in 2011/12. Data on intake rates shows that since 2002/2003, the accommodation capacity of new students in the first cycle of primary education (1st-4th grade) was higher or equivalent to the number of children in the theoretical age group (6-9 years old). For the second cycle of primary education (5th–6th grade) it was not until 2010/2011 that the accommodation capacity of new entrants became higher than the number of children in the theoretical age group (10-11 years old). (See Table 2, below). 18. Progress in enrollment in primary education is impacting secondary education which consequently also registered important gains in terms of enrolment. The completion rate has increased in general secondary education, reaching 45.2 percent in 2010/11 from 19.8 percent in 2000/01. Transition rate between primary and secondary education stands at 97 percent. 8 Because of those scholarships, higher education absorbs around 40 percent of the education budget. 5 Table 2: Intake rate at different grades of primary education between 2002-03 and 2010-11 a) Grades 1st 2nd 3rd 4th 5th 6th 2002-03 111,6% 107,5% 102,6% 97,9% 78,8% 62,0% 2003-04 113,3% 109,4% 107,6% 97,8% 86,9% 76,7% 2004-05 113,8% 114,0% 106,0% 102,9% 86,2% 76,6% 2005-06 102,2% 110,3% 106,8% 100,2% 88,6% 72,9% 2006-07 116,5% 98,4% 102,3% 99,2% 88,3% 74,0% 2007-08 118,9% 111,2% 101,8% 103,0% 91,3% 78,4% 2008-09 131,4% 146,1% 117,3% 97,2% 99,4% 85,1% 2009-10 119,2% 120,6% 119,3% 128,8% 95,3% 87,3% 2010-11 113,1% 117,4% 120,2% 121,7% 121,9% 115,8% a) The rates include private education from 2007/08. Source: MoE/Planning Unit. 19. Despite these important achievements in terms of access to education, the system faces challenges with respect to efficiency, quality and governance. Repetition rates have substantially decreased at all levels of education over the last years, but they still remain high. In primary education the repetition rate was at 13.6 percent in 2012/13. In general secondary education the repetition rate was estimated at 22 percent in the same academic year. 20. Quality of education is thought to be low. São Tomé and Príncipe does not possess a learning assessment system nor does it participate in any regional or international assessment. So it is difficult to objectively assess the quality of learning of its students. The teaching environment has improved with provision of new, equipped classrooms, textbooks to all primary education students and teachers’ guides, but still about 60 percent of primary education teachers are unqualified. They lack adequate academic and pedagogical competencies to teach. Pre-primary and primary education teacher training suffered a rupture when the former teacher training school was closed in 1996. For more than ten years São Tomé and Príncipe did not offer pre-service teacher training. New teachers were recruited from secondary schools and sent to classrooms. In 2007/08, a new teacher training school was created. In 2010/11, 102 students were enrolled at EFOPE. 21. In 2010/11, however, the country made a first attempt to conduct national examinations for students of grades 2 and 4 of primary education. The average scores in math and Portuguese language for grade 4 students were, respectively, 67.2 percent and 66.3 percent. For grade 2 students, the average scores were, respectively, 68.9 percent and 61.0 percent. Although the resulting scores provided a snapshot of the potential level of students’ learning in primary education in São Tomé and Príncipe, they cannot be used for regional or comparative purposes. Also, institutional weakness in the MoE does not allow for a systematic planning and implementation of a full-fledged learning assessment with a mechanism of feedback for policy analysis and decision- making. 22. Overall management of the education system is still weak. Some positive features are the adequate allocation of teachers to schools (95 percent of teachers are allocated to schools according 6 to the number of students) and a reasonably capacity of data collection for monitoring and evaluation purposes. However, overall management of teachers is an issue. There is no reliable human resources management system to oversee recruitment, assignment and career development. The time on task of teachers in São Tomé and Príncipe is among the worst in Africa. In primary education, teachers do not spend on average more than 3.5 hours a day in school and yet this time is not fully dedicated to student learning and pedagogical tasks. Fifty-seven point five percent of primary education teachers spend less than 14 hours per week in the classroom. In secondary education, 71 percent who spend less than 14 hours per week in the classroom. 23. The low time on task by teachers is partly due to the inability of the education system to effectively manage teachers’ work in a context of geographically dispersed schools. In grades 5 and 6 where teaching is organized per subject, three teachers are needed for each classroom and many schools are small enough in size not to fully absorb the time of teachers. Making teachers work in different schools might be an option, but this option is not sufficiently explored. Absence of an education information system and flawed administrative and pedagogical supervision of the classrooms are considered to be the root causes of the problem. There is no reliable education management information system that links the center with decentralized structures. Inspectors and pedagogical advisors rarely visit schools and classrooms and when they do visit, they lack management and reporting tools to effectively support teachers’ development. The education statistics are regularly published, but institutional capacity for data analysis and production of education indicators is weak, and indicators are seldom used for policy purposes. Higher Level Objectives to which the Project Contributes 24. The proposed Project will be implemented as part of the Government education strategy, as outlined in the Letter of Education Policy (2012-2021) and operationalized in the Education Sector Plan (ESP) (2012-2021). It will focus on the quality of primary education, which is a declared priority objective in primary education. A Country Partnership Strategy is being currently prepared by the Bank to support implementation of the Second PRSP 2012-2016, which targets the promotion of quality education for all in São Tomé and Príncipe through its pillar III (human capital development and improvement of social service delivery). The Project, by proposing to tackle the issues of quality of education and learning outcomes, aligns itself with one of the key priority areas of GPE. 25. In São Tomé and Príncipe there are few donors active in the education sector. They comprise a few bilateral (Portugal, Brazil and Taiwan, China) and UN agencies (the United Nations Children Fund, UNICEF, and the World Food Program, WFP). Portugal supports quality intervention in secondary education, especially curricular review, textbooks provision and equipment of secondary schools. Brazil supports in-service teacher training for secondary teachers, literacy programs for out-of-school children and adults, and vocational training. Taiwan, China has been active in secondary school construction. UNICEF supports interventions in early childhood education, and WFP provides meals for primary education students. Government funding and current donors’ support to the education sector fail to address important aspects of the Education Sector Plan. By providing additional resources, the proposed project will complement those interventions and will contribute to fill the financing gap identified in the Plan. 26. The Local Education Group (LEG), which includes the Government, Development Partners 7 and Civil Society organizations, selected the Bank as Supervising Entity (SE) for the Project. The choice of the Bank as SE was influenced by its strong presence and tradition of dialogue in the social sectors in São Tomé and Príncipe. Over recent years, the Bank financed a US$6.5 million Social Sector Support Project (2004-2010) for education, health and HIV/AIDS, which was coupled with a US$1.1 million Additional Financing (2010-2012) for the health sector. The Bank was also SE of the first GPE-funded Project (2008-2011) in the amount of US$3.6 million. All those projects have been rated satisfactory or moderately satisfactory in terms of their performance. Recently, the Bank provided technical and financial support to the preparation of the education Country Status Report (CSR) 2012, and for the development of the Letter of Education Policy 2012-2021 and the Education Sector Plan 2011-2013.9 27. The Project will draw from lessons of previous GPE-funded Project in São Tomé and Príncipe and, more broadly, from the Bank experience in supporting GPE programs in many countries, whose lessons may be useful for São Tomé and Príncipe. In its capacity of SE, the Bank will work closely with the Government, the LEG and other stakeholders during project preparation, and will continue to ensure a close collaboration with all partners during implementation, under the leadership of UNICEF, the Coordinating Agency for education sector support. 28. The proposed Project will focus on quality of primary education. Having virtually achieved universal primary completion, São Tomé and Príncipe needs to focus on the main challenges facing its education system today, which are quality issues, efficiency and management of the system. The focus on quality is determined by the need to fully ensure achievement of the Education for All (EFA) goal of providing universal primary education of quality for all. The quality component of this objective is not yet guaranteed. On the other hand, improvements in learning outcomes may positively impact efficiency through reduction of repetition and dropout rates and their associated costs. The Project proposes to address quality of teaching, which is one of the most important determinants of quality of learning in the longer perspective. 29. Coordination Mechanisms: Strong donor coordination through annual joint sector reviews will ensure that implementation of each donor "Project" is consistent with the Education Sector Strategy. Each year, a joint donor/Government annual review will take place to: (i) assess the extent to which ESP objectives are being achieved; (ii) identify, through qualitative and quantitative analysis, those aspects of the implementation of ESP that are behind or ahead of schedule and recommend adjustments according to annual implementation plans; (iii) identify reasons for any shortfalls in meeting targets and suggest possible strategies for action; (iv) review performance indicators and assess the functioning of the monitoring and evaluation system; and (v) review expenditure for the previous year, and draft action plans and budgets for the coming year. 9 The SSSP and the previous GPE project played important roles in the increasing enrollment in primary education, by building and equipping about 30 additional classrooms and by providing textbooks for all primary education students. 8 Timetable for Supervision Missions and Joint Reviews of the Sector Date Activity February 2014 Project effectiveness April 2014 World Bank supervision mission October 2014 Joint Sector Review April 2015 World Bank supervision mission October 2015 Joint Sector Review (mid-term review) April 2016 World Bank supervision mission October 2016 Joint Sector Review March 2017 ICR mission II. PROJECT DEVELOPMENT OBJECTIVE 30. The objectives of the Project are to improve the system of in-service teacher training and to strengthen the management of human resources in the education sector in the Recipient’s territory. 31. The Project’s underlying assumption is that the absence of a coherent system of in-service training in a context where most teachers (60%) are unqualified is detrimental to quality of education. Setting up in-service training will lead to better teacher qualification, which, in turn, may contribute to a better quality of learning. This “better” in-service training will be provided by a unified and harmonized system of training and certification for primary school teachers in STP (in contrast to the current fractured landscape of multiple providers). Furthermore, the pre- and in- service stages of the teacher training system will be based on a common framework for what all teachers should know and be able to do and on which they should be evaluated. Project Beneficiaries 32. The primary beneficiary group of the Project is the 1,113 primary education teachers (40 percent of whom are females) who, under the Project, will benefit from an appropriate institutional framework for teacher training that would contribute to value and promote their professional competencies and career development. Also, 400 primary school teachers (or about 60 percent of unqualified teachers) will be trained. Finally teachers and managers of the education system as well as parents will benefit from objective information about quality of learning in primary schools in São Tomé and Príncipe. 33. Progress towards the achievement of the Project proposed development objective will be measured by the following PDO results indicators: (i) Number of additional qualified teachers resulting from project intervention; (ii) Competency based training framework developed; (iii) Students learning assessment system established; (iv) Daily working hours of teachers; and (v) Direct Project beneficiaries (disaggregated by beneficiary type - students, teachers, etc.); and female beneficiaries (percentage). 9 Intermediate Results (i) Assessment of critical competency needs of teachers finalized; (ii) Training plans for in-service teacher training developed; (iii) Certification process for primary school teachers developed and approved; (iv) At least one student learning assessment conducted for the target grade (6th grade) (v) At least one EGRA testing conducted over the life of the Project; (vi) Four annual school-level supervision and mentoring program offered to teachers; and (vii) Education management information system in place and functional. PDO Level Results Indicators Objective Indicator Baseline Target Number of additional qualified teachers resulting from project intervention 0 400 (60% female) Competency based training framework developed No Yes PDO Level Students learning assessment system established No Yes Indicator Daily working hours of teachers 3.5 4.5 Direct Project beneficiaries (disaggregated by beneficiary type—students, teachers, etc.); and 0 2,000 (50% Female beneficiaries (percentage) female) Assessment of critical competency needs of teachers finalized No Yes Training plans for in-service teacher training Component 1: developed No Yes Improving system of in- Certification process for primary school teachers service teacher developed and approved No Yes training in primary At least one student learning assessment No Yes education conducted for the target grade (6th grade) At least one EGRA testing conducted for 3d grade No Yes students Component 2: Percentage of primary education schools that Strengthening benefit from 4 annual school-level supervision 0 4 management of and mentoring program offered to teachers in human every primary school (cumulative) 10 resources in the education Education management information system in sector place and functional. No Yes 34. The baseline and target values for these indicators as well as data collection responsibilities are detailed in Annex 1. III. PROJECT DESCRIPTION A. PROJECT COMPONENTS 35. The Education for All Project (Phase II), to be processed as an Investment Project Financing (IPF), has two components: component 1: Improving the system of in-service teacher training in primary education; and component 2: Strengthening management of human resources in the education sector. Component 1 has two inter-related sub-components: (i) setting up in-service teacher training system; and (ii) building a student learning assessment in primary education. Component 2 has two sub-components: (i) strengthening management of human resources in the education sector, and (ii) project management. Component 1: Improving the System of In-Service Teacher Training in Primary Education (Estimated Cost: US$1.1 million) 36. Specifically: Carrying out of a program to improve in-service teacher training in primary education through: 37. Sub-component 1.1 Setting Up of an In-Service Teacher Training System (Estimated Cost: US$700,000), including (i) the preparation and implementation of a competence-based training framework; (ii) the development of education training plans and modules and carrying out of related training of approximately 400 primary education teachers; (iii) the setting up of a teaching certification process and carrying out of related academic and pedagogical competence evaluations; and (iv) setting up of a proper institutional structure within the MoE to manage teacher’s trainings, including the establishment of a certification body and the provision of equipment, capacity building, management tools and technical assistance to MoE’s staff. 38. In parallel, an evaluation of academic and pedagogical competence of all primary education teachers (1,113) will be carried out. Following the development of training plans, training sessions will be conducted to upgrade the academic and pedagogical competencies of teachers in need. Training sessions will be offered at two levels (academic and pedagogical) and may be conducted at the school level (for an individual teacher or a group of teachers with common needs) or at district or national levels for a larger group of teachers. 39. The sub-component will finance training of 400 primary education teachers out of 667 unqualified teachers in primary education (or about 60 percent of unqualified teachers). This will be done starting from the second year of Project implementation, since the first year will be to do the development of institutional and pedagogical frameworks (laws and regulations, certification body, training modules, etc.). Training will be implemented by seasoned teachers, pedagogical advisors 11 and inspectors and will be coordinated and organized by EFOPE. These training courses will be certified upon completion. It is expected that, once established, the competency framework will guide all future interventions in terms of in-service teacher training in São Tomé and Príncipe, ensuring harmonization of competencies and sustainability of the approach. 40. The sub-component will also support development of tools for management of training, including data-base for training management; training of staff of MoE on the use of the management tools of teacher training; analysis and treatment of data on training. An EMIS will be developed within the Planning Unit of the MoE to, among other things, consolidate and register data on training. The sub-component will also support data collection on local training needs and the synthesis of different local training needs into a national training plan and the training of trainers. A technical assistance will be provided to help the development of training modules and development of pedagogical supports and the implementation of annual action training plans. 41. Sub-component 1.2 Development of a Student Learning Assessment (Estimated Cost: US$400,000), including (i) development and implementation of a learning assessment road map and related provision of training, management tools and materials to MoE’s staff and teachers for the administration of tests; (ii) administration of the Early Grade Reading Assessment (EGRA) for the 3rd grade of primary education; and (iii) pilot an early-grade small scale impact evaluation assessment in approximately 20 schools. 42. The development of a student learning assessment system will allow systematic measurements of learning outcomes of students of primary education in order to collect feedback to improve teacher training in primary education. The absence of the feedback mechanism on what students really learn in the classrooms today does not allow for appropriate design of teachers’ training strategy and programs. It is expected that such a system of learning assessment will be instrumental in modeling in-service training, by focusing in areas where weakness in learning outcomes are more notorious. 43. The goal is to support the development of a system that will allow administering the first learning assessment test for 6th grade in 2015/2016. The actions will include identification and recruitment of external technical assistance to develop a road map for learning assessment which will include assessment of the curriculum and students’ profile, and training of staff in the MoE on development of tests. The sub-component will also finance logistical costs associated with administration of testing in schools. An Early Grade Reading Assessment (EGRA) for 3rd grade of primary education will be administered during the academic year 2015/2016. 44. The sub-component will finance the costs associated with the development of management tools, training of teachers of the selected schools in the use of the tools; printing and distribution of tools in classrooms in pilot schools; distribution of computers in pilot schools to register data on student progress and to be able to electronically send the data to central level. 45. The sub-component will also pilot a small-scale impact evaluation. The pilot will select a randomized sample of about 20 schools (25 percent of primary education schools) whose teachers will benefit from specific training and pedagogical tools to improve teaching in early grades of primary education. Teachers in pilot schools will receive harmonized tools and methodologies for the management of learning of students in the classrooms focused on lecture. They will also receive 12 training on the use of the new methodologies and tools. The pilot will then compare results of the second EGRA test in the sample of 20 pilot schools with the results of non- participating schools. This sub-component will be implemented in partnership with the Secretary of Education of Pernambuco, Brazil.10 The experience in Pernambuco shows that the use of the management tools, continuous training of teachers and remediation actions for students lagging behind, translate into improved reading performance of students in the first grades of primary education. The sub- component will finance the costs associated with the development of management tools, training of teachers of the selected schools in the use of the tools; printing and distribution of tools in classrooms in pilot schools; distribution of computers, etc. Component 2: Strengthening Management of Human Resources in the Education Sector (Estimated Cost: US$0.9 million) 46. Specifically, carrying out of a program to improve management of human resources in the sector for a better quality of teaching through: 47. Sub-component 2.1 Development of a Management Information System (Estimated Cost: US$640,000), within the MoE, including (i) provision of technical assistance, training and equipment at the central and decentralized levels, (ii) strengthening of MoE’s human resources policies and management capacity for the allocation, management and supervision of teachers, including provision of management tools, re-definition of roles and responsibilities of education professionals and re-launching of the pre-existing supervision structure. 48. The new Education Management Information System (EMIS) will be installed in the Directorate of Planning and Education Innovation. In addition to technical assistance for the development of the system, computer equipment will be purchased and installed at the central level. Each primary school will also receive a computer for data management and a connection will be guaranteed with the DPEI. Statistical data and other information will be provided electronically by schools to the center. This will allow a fluid flow of information from the schools to the Ministry and vice-versa and a close monitoring of data and performance. With a small number of schools in the country (about 80) this integrated system will be relatively easy to set up. Staff at central and decentralized levels will be trained on the use of the system and a website will be developed in the MoE. An EMIS manager will be appointed within DPEI with the overall responsibility of ensuring technical management of the system. 49. Improvements in the management of human resources through EMIS will be of critical importance for the STP education system as it will set the basis for control of teacher’s presence in the classrooms and to pedagogical support to teachers’ activities. Particularly important is to ensure a better deployment of teachers among schools so as to reach the intended average of 4.5 hours per day on task. This would require policy changes in terms of organization of classrooms and allocation of teachers. The Project will support that policy change through better information management and strengthened management of the human resources. The roles and responsibilities of the different school actors (school director, inspectors, pedagogical advisors and teachers) will be 10 During the study tour of 10 officials form the Ministry of Education of Brazil, in October 2012, the Secretary of Education of Pernambuco offered to support São Tomé and Príncipe in the development of tools to manage students’ progress in reading and writing. 13 clearly defined and schools will be provided with management tools to improve their management practices. Management tools will include different administrative and pedagogical tools for directors and teachers as well as a school report card. 50. On the other hand, the current flaw of supervision will be addressed. Inspectors and pedagogical advisors who currently do not visit schools will be put back to work and assigned to a number of schools. Their roles and responsibilities, somewhat unclear today, will be re-defined; they will get needed training and will carry out supervision and support tasks close to schools. The objective is to ensure four supervision and support visit for each school during a given academic year. The visits will get the maximum information possible on teachers’ practice in the classrooms, and feedback will be provided to teachers and to the central level, particularly on the kind of support needed to improve teaching practices. 51. Sub-component 2.2 Support to Project Management (Estimated Cost: US$260,000), including provision of training to the relevant staff, operating costs and audits. 52. Fiduciary management of the project will be assured by AFAP (an autonomous Project Implementation Unit created by the Government under the oversight of the Ministry of Finance). The sub-component will finance the costs associated with salaries of AFAP staff (Coordinator, Procurement Specialist, FM Specialist and Accountant). The component will also finance project audits and operating costs associated with project implementation. B. PROJECT FINANCING Lending Instrument 53. The project will be implemented as a three-year Investment Project Financing (IPF) operation, in response to the Government of São Tomé and Príncipe request to provide support to the primary subsector, as spelled out in its request to the GPE. The proposed amount for the project goes beyond the nominal allocation committed to São Tomé and Príncipe by the GPE. An additional US$0.9 million, corresponding to 45 percent of the total financing, is being requested from IDA. Other instruments of support were considered, including a budget support modality and Program- for-Results (PforR), but they were not selected because they could not respond to the need for targeted short-term investments. Furthermore, in the absence of a strong country public fiduciary system, they were deemed not appropriate. Project Cost and Financing Project Components Project Cost % Financing (US$ million) Component 1: Improving the system of in-service teacher 100% training in primary education 1.10 Sub-component 1.1 Setting up in service teacher training 0.70 100% Sub-component 1.2 Developing learning assessment system 0.40 100% Component 2: Strengthening management of human resources in the education sector 0.90 100% 14 Sub-component 2.1 Developing information management 0.64 100% system 0.26 100% Sub-component 2.2 Project management 2.00 100% Total Financing Requirement C. LESSONS LEARNED AND REFLECTED IN PROJECT DESIGN 54. Despite recurrent political instability, STP has shown encouraging progress in terms of implementation of reforms in social sectors, particularly on education and health sectors. All signs indicate that the key for this success is a surprising strong country commitment. Once political will is established around project objectives, there appear to be good levels of ownership of the project and all efforts are made to attain them. 55. Projects in STP that are kept simple in their design, with simple monitoring and evaluation frameworks, are likely to succeed. Indicator targets must be realistic and should take into account the country’s limited capacity and relatively fragility that may jeopardize long-term sustainability of interventions. 56. The use of a fiduciary agency for project management in STP was critical for the successful outcomes. The Ministry of Education has no experience in fiduciary management of investment projects and a recent assessment of its capacity to implement projects without support from external entities (such as AFAP) points to considerable fiduciary risks. Therefore, the use of AFAP as fiduciary manager of the Project is critical to ensure that relevant risks are appropriately mitigated. IV. IMPLEMENTATION A. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS 57. The Quality Education for All Project will be implemented over a period of three years by the Ministry of Education. The previous GPE-funded project was implemented as a SIL by the Ministry of Education. Technical implementation of the project will be assured by different directorates of the MoE, which will be responsible for activities’ execution and monitoring. These directorates have experience in implementing Bank-funded projects. MoE will be supported by AFAP for the management of the fiduciary aspects of the project. AFAP has accumulated experience in the management of the SSSP and the GPE-funded Project (Phase 1). The agency is adequately staffed, well versed in Bank operations and procedures, and its performance has been rated satisfactory for the implementation of the previous Bank-funded operations. Currently it is managing another World Bank project in the area of telecommunication and adding this project to the portfolio will not adversely affect the performance. The Project will be implemented using a Project Implementation Manual (PIM). There is currently a PIM but it will need to be updated to reflect the specific requirements for this project. Specific Roles and Responsibilities 58. The Directorate of Planning and Education Innovation (DPEI) is responsible for compilation and publication of data to inform education policy and investments. DPEI will be the 15 MoE entity responsible for ensuring planning and coordination in the implementation of project activities in liaison with all the relevant structures of the MoE and AFAP. In that capacity, DPEI will ensure technical coordination in the development of Annual Action Plans, development of terms of reference of consultancy and training activities, and implementation and reporting of activities. DPEI will also be directly responsible for implementation of activities under sub- component 1.2 (development of learning assessment system) and sub-component 2.1 (education management education information system). DPEI’s role will include development of systems, tools and practices for an effective assessment of students’ achievements in close collaboration with the relevant structures of the MoE. Based on inputs received from schools, DPEI will be responsible for providing consolidated monitoring data, including status reports on project implementation by component, with a summary description of activities detailed in M&E reports (annually). 59. Teacher Training Institution (EFOPE) is the MoE structure responsible for pre-service and in-service teacher training. EFOPE will be responsible to implement activities under sub- component 1.2 (setting up in service teacher training). A Steering Committee composed of representatives of relevant structures of the MoE, will be set up to oversee training. Among other tasks, the Committee will be in charge of setting priorities for training, approving annual training plans and evaluating training activities to be implemented by EFOPE. 60. The General Inspectorate of Education (GIE) is responsible for ensuring administrative and pedagogical monitoring of schools, principals and teachers. Currently GIE is unable to develop its mission due to lack of qualified staff, lack of inspectors in the field, lack of resources and necessary tools for supervision. GIE’s mission will be clearly defined through the definition of roles and responsibilities for each position in the structure. Teachers’ supervision will facilitate the development of a culture of supervision of teaching practice and reporting at the school level by the director and its pedagogical team. Regular visits to schools will allow for assessment and identification of training needs, through the use of report cards and computer tools. 61. The Directorate of Primary Education (DEB) is the MoE structure responsible for implementing the Government program and guidance for the primary school level. The scope of its activities also covers early childhood and inclusive education. The DEB will be responsible for ensuring that project activities related to these areas, including teachers’ training, are technically sound, and will closely monitor implementation and follow up. 62. The Directorate of Administration of Equipment within the MoE (DAE) has the mandate to administer and manage all the infrastructure and equipment of the Ministry. In that capacity it will be responsible for the management of equipment to be procured under the project, such as computers and computer materials, as well as furniture and other equipment. 63. The Fiduciary and Implementation Agency (AFAP) (Agência Fiduciária e de Administração de Projectos), an autonomous Project Implementation Unit, under the oversight of the Ministry of Planning and Finance will assist the MoE with fiduciary implementation of the project. The fiduciary role will include procurement and financial management of the Project. AFAP is currently implementing the Bank-financed Central African Backbone Program – APL2. The performance of AFAP on this operation and the two recently closed operations is found to be satisfactory. The Agency is resourced with an experienced and qualified Procurement Officer and a Project 16 Coordinator among other core staff. It is expected that no additional staff will be required to manage the Quality Education for All Project, considering the limited number of high value contracts expected to be procured for the proposed operation. Since AFAP is an autonomous agency, a subsidiary agreement between AFAP and Ministry of Planning and Finance will be signed so as to allow AFAP to implement the Project. 64. The Directorate of Administration and Finance (DAF) is responsible within the MoE for financial management of education resources, comprising budget planning, execution and reporting. The DAF will be responsible for providing information on budget execution and working with AFAP on issues pertaining to financial management and reporting of the project. B. RESULTS MONITORING AND EVALUATION 65. Monitoring and Evaluation (M&E): M&E of QEFA activities will be coordinated, overseen, and implemented by the DPEI at the national, regional, and school levels. DPEI will continue to organize its regular school annual census, through which key data on students, teachers, schools and resources are collected. Based on inputs received from schools, DPEI will be responsible for consolidating and analyzing data, to produce indicators and to produce a detailed M&E reports (annually) on project implementation by component, including a summary description of activities at the national, regional and school levels. 66. The General Inspectorate of Education will provide pedagogical guidance to schools through regular school visits and conduct sampled-based surveys to monitor and assess teacher performance in terms of lesson planning and preparation, classroom management, and student assessments. The Inspectorate will collect data on the performance of schools, including the availability and use of textbooks and didactic equipment at the school level, teachers’ performance, examination results and student evaluations in order to compile regular reports on the status of each school and its performance. C. SUSTAINABILITY 67. The proposed interventions are likely to be technically and institutionally sustainable. Basically, for both in-service teacher training and learning assessments, what is being proposed is the setting up of a system that will live well beyond the life of the Project. It is expected that the competency framework for in-service teacher training as well as the certification approach will continue to benefit the remaining teachers in the system not certified under this project. Also, once the student learning assessment mechanism is put in place, the MoE is expected to continue to implement the assessment on a regular basis. The EMIS will be operational and with adequate training of staff it might continue to be used for management purposes. 68. The recurrent costs for administering learning assessment tests, developing teacher training sessions and running EMIS after project closure will have to be supported by the Government budget. Those costs are within the reach of the Government budget provided the education sector continues to receive adequate priority as it has been the case so far, and economies are done from the large amounts of the education budget that still goes to scholarship in tertiary education. A policy dialogue in this direction, already ongoing, will be pursued over the implementation stage of the project to make sure that the Government remains fully committed to ensure long-term 17 sustainability of the project. The government is also taking steps in order to ensure appropriate staffing within the Ministry of Education. Additional staff will be assigned in the DPEI and other relevant structures. V. KEY RISKS AND MITIGATION MEASURES A. RISK RATINGS SUMMARY TABLE Project Risk Ratings Stakeholder Risk Moderate Implementing Agency Risk Moderate - Capacity Moderate - Governance Moderate Project Risk - Design Moderate - Social and Environmental Low - Program and Donor Moderate - Delivery Monitoring and Sustainability Moderate - Other (Optional) - Other (Optional) Overall Implementation Risk Moderate B. OVERALL RISK RATING EXPLANATION 69. Overall, risks are deemed Moderate (see ORAF below). There is a moderate risk for the project not being implemented as designed if there is a change in the government during the implementation process. However, São Tomé and Príncipe has a proven track record of implementing social sector projects even in a context of political and institutional instability. The Project design includes specific mitigating measures. There are no controversial issues or reputational risks for the Bank. VI. APPRAISAL SUMMARY A. ECONOMIC AND FINANCIAL ANALYSIS Macroeconomic context 70. Subsequent governments of São Tomé and Príncipe have devoted a significant share of its resources to education over the last years. Between 2002 and 2012, public expenditure on education increased almost fivefold, from STD 65.9 billion to STD 300 billion. This dramatic increase was due to massive investments, notably since 2009. However, those investments were mostly financed externally, which enhances the vulnerability of the sector to aid volatility and external shocks. Despite the fast increase in total spending, the share of education in government total budget is 18 relatively low (less than 12% in 2012) and quite volatile, reflecting the substantial variations of external funding over the years. Figure 2: Education Budget (Recurrent and Investment) as a Share of Government Total Budget 400 20.0% 18.0% 300 16.0% Billion of STD 14.0% 200 12.0% 10.0% 100 8.0% 0 6.0% 2007 2008 2009 2010 2011 2012 recurrent investment share of education in total budget Source: Ministry of Finance, department of budget; and authors’ calculation. 71. São Tomé and Príncipe presents an unusual pattern in terms of public spending on education. The significant level of resources allocated to education hides the fact that a substantial part of those resources go to higher education, more specifically to scholarships to students abroad. In 2010, higher education expenditures absorbed about 46.8 percent of the recurrent education budget. The government is aware of the fact that this financing path is problematic and unsustainable in the long term. A gradual downgrade of the number of eligible students is underway in order to decrease the amounts spent and balance spending between the different levels of education. Economic Analysis 72. Overall, the project is expected to have substantial impacts on students’ earnings and economic growth, as there is substantial evidence that these are positively impacted though improved learning outcomes. There is strong evidence of a positive relationship between teacher training and learning outcomes, especially when training is coupled with strengthened teaching practices and improved monitoring and evaluation system for learning achievements. For instance, pre-service teacher training was found to raise students’ achievement by a small, but significant, amount in India11, while studies also show that teachers’ subject knowledge increases students’ test scores in SACMEQ countries.12 Recent estimates of the economic return of teacher quality in the 11 Geeta Kingdon, 2006. "Teacher characteristics and student performance in India: A pupil fixed effects approach," Economics Series Working Papers GPRG-WPS-059, University of Oxford, Department of Economics. 12 Spren and Francsali, 2005. “What can we learn about improving teaching and learning from comparing policies across countries? A study of student achievement and teacher quality in Southern Africa,”SACMEQ Policy Papers. 19 United States show that a teacher who performs at the 85th percentile can, in comparison to an average teacher, raise the present value of each student’s lifetime earnings by over $20,000 annually.13 Component 1: Improving the quality of teaching (US$1.1 million – equivalent to 55% of Project Resources) 73. Improving the quality of education is key to better learning achievements and development outcomes. This is summarized by Hanushek and Wobman (2007) who argued that, despite the importance of education access and globally education supply in growth, it is “ultimately the degree to which schooling fosters cognitive skills and facilitates the acquisition of professional skills that matters to development”. Although quality of education in São Tomé and Príncipe is hard to measure because of lack of quality assessment tools, various signs, however, point to low quality of learning. For example, the 2009 DHS showed that 18 percent of individuals who completed the 6 years of primary school were not able to read easily. There is therefore an obvious room for improvement. This Project intends to improve the quality of education via one of its most predominant determinants, which is teacher training and the development of a student learning assessment. 74. In-service teacher training (US$700,000): There are currently 1,113 teachers in primary school in STP. Most of those teachers are believed to be unqualified. There is only one teacher training school in STP called EFOPE with a capacity to train only 50 teachers a year. The choice of in-service training under this operation is justified by two main reasons: (i) given the low capacity of EFOPE, in-service training of the current teachers seems to be the most efficient way to solve the issue of low skills of the primary education teaching body in STP in the short run, (ii) with the ongoing demographic transition in STP, the implication of which is the reduction of the 6-11 children in the population over the next decade, the demand for new teachers will reduce. It seems then more cost-effective to focus on in-service teacher training rather than on pre-service. 75. The proposed Project does not intend to replace the traditional pre-service training at EFOPE but will rather provide complementary training. This is particularly important for teachers who have not benefited from any training at EFOPE, as well as for those who have not yet completed the training. The table below presents the current stock of primary school teachers according to the training received: Table 3: Stock of Primary School Teachers according to the Training Received Primary school teachers (2012-2013) Completed EFOPE training 390 Still training at EFOPE 434 Without EFOPE training 289 Total 1,113 Source: Ministry of Education, Department of Financial Affairs. 13 Hanushek, 2011. “The Economic Value of Higher Teacher Quality,” Economics of Education Review, 30(3), 466- 479. 20 76. The total cost of this teacher training program is US$350,000 (additional US$350,000 are allocated to support development of tools for management of training), spread over the three years of the project execution. Since teachers in STP have never been tested to evaluate their performances, a proper cost-benefit analysis is not possible. Instead, a unit-cost comparison is possible and shows that the unit cost of in-service training under the Project is similar to that of EFOPE training. This would indicate that the costs of the training provided under the Project can be later taken over by the Ministry of Education. Table 4: Comparison of Unit Costs of Training at EFOPE and the Proposed Training by the Project EFOPE GPE project Total budget US$115,000 US$350,000 Number of teachers 50 1,113 Number of days 68 10 Unit cost $33 $31 Source: EFOPE and author’s calculation. 77. Financial sustainability of a premium in salary for certified teachers: In order to estimate the fiscal impact on the education budget of the proposed operation, it is important to consider the potential increase in teachers’ salaries resulting from their certification as part of the in-service training program. Indeed, teachers’ salaries in STP vary according to the level of training, and the gap in the monthly salaries between teachers with different levels of training is equal or higher than STD70,000. During the preparation of this operation, it was agreed by the Ministry of Education that teachers who have received certification may incur a salary increase of STD50,000. The premium shall be less than STD70,000 to avoid in-service training under this operation becoming a substitute for the training at EFOPE. The proposed STD50,000 monthly premium (equivalent to about US$2.7) might result in an increase in the wage bill by no more than 1.4 percent. Assuming that the share of GDP allocated to education remains the same, and that the share of primary education in the overall education budget continues to increase, this would seem sustainable in the projected average growth scenario of São Tomé e Príncipe over the next years. 78. Developing student learning assessment (US$400,000): This sub-component will finance the first learning assessment in STP and a reading assessment for the 3rd grade of primary school. It will also pilot a small scale impact-evaluation of the use of new methodologies and tools to improve reading at early grades. The cost of this sub-component is distributed as follows: 21 Table 5: Breakdown of Costs of Learning Assessment Developing Student Learning Assessment Cost (in US$) Percentage Learning assessment PASEC 112,830 28% Reading assessment EGRA 71,190 18% Pilot project 215,980 54% Total 400,000 100% 79. The PASEC and EGRA tests, which will be performed in all primary schools, will give an insight of learning and reading skills of students in STP. The results of these evaluations will inform the design of future teacher training programs, improving their relevance and impact, and therefore ensuring a more efficient allocation of resources. 80. The pilot will cover 25 percent of primary schools, whose teachers will receive specific training and pedagogical tools to improve teaching of reading in early grades of primary education. A similar experience implemented in Pernambuco, Brazil, has shown satisfactory results. The impact evaluation will compare the EGRA results in the schools which receive the intervention with the results in the other schools. However since the initial EGRA test has not yet been performed, at this stage it is hard to quantify the impact of such policy in terms of reading scores of early graders. Component 2: Improving Management of the Education System (US$0.9 million - equivalent to 45% of Project resources) 81. This component of the Project, aims at strengthening management of the education system (US$0.7 million) and to cost expenses relating to fiduciary management of the Project (US$0.2 million). Strengthening managerial capacity of the education sector is expected to lead to a more efficient management of human resources in the sector, which is one of the main bottlenecks for the development of education system in STP. B. TECHNICAL 82. Proposed interventions are technically sound and feasible. The Project design is appropriate to the current sector context. It departs from an updated diagnosis of the sector (CSR, 2010), which shows that access to primary education in STP is not an issue, quality of education is questionable and management is poor. The focus on quality is aligned with the country policy objectives, as outlined in the Letter of Education Policy, and the GPE core objective of reaching universal primary education of good quality. 83. Teachers are a centerpiece of teaching process. The proposed in-service teacher training intervention, coupled with a closer monitoring of teachers performance at school levels, is likely to increase quality of teaching. With almost 60 percent of teachers in the system unqualified, the intervention is necessary and cost-effective. The Project will directly benefit about 60 percent of those teachers in the short run, but in the medium term, all teaching staff will be able to benefit from the in-service system in place. Furthermore, for the first time, the education system will be able to measure performance of students through assessment tests. This will put São Tomé and 22 Príncipe in a good footprint to continuously improve teacher training via feedback mechanisms. The proposed PASEC-style testing will also allow the country to compare itself with other Sub- Saharan African countries using similar testing. 84. Improved management at the national and school level is important for better effectiveness and results. Improved management, as an intermediate process for better quality of teaching, will rely on the development of a reliable information system to support decision-making and on closer oversight of schools and teachers and the reporting of performance. This will be achieved through the development of an integrated EMIS in the Ministry of Education and the re-activation of the pedagogical and administrative functions of supervision and support to schools and teachers (inspectorate and pedagogical council). C. FINANCIAL MANAGEMENT 85. A financial management assessment of the AFAP was conducted in accordance with the Financial Management Manual issued by the Financial Management Sector Board in March 2010. Its objective was to determine whether the implementing entity has acceptable and adequate financial management arrangements. Details on the Financial Management arrangements for this Project are included under Annex 3. 86. The proposed FM arrangements were reviewed with the following conclusions: the proposed FM arrangements are satisfactory and the overall FM risk rating of the Project is Moderate. The assessment was favorably impacted by the fact that AFAP has extensive experience in handling FM responsibilities for Bank-financed operations. In addition, it is currently satisfactorily responsible for another Bank-financed operation. It already has an experienced FM manager and an accountant, customized accounting software, sound budgeting and reporting arrangements and essentially ready for implementation. However, AFAP will adjust its procedures manual prior to effectiveness and recruit independent auditors within six months of effectiveness. 87. The proposed FM arrangements, as summarized in Annex III, meet the minimum requirements for financial management under OP 10.00. D. PROCUREMENT 88. The procurement activities for the proposed Project will be managed by AFAP (Agência Fiduciária e de Administração de Projectos) within the Ministry of Finance and International Cooperation, which is resourced with a qualified Procurement Officer and Project Coordinator. AFAP has been managing successfully Bank-funded operations for the last few years, including operations in the social sector. At present, the AFAP portfolio includes one WB financed projects (Central African Backbone – APL2, effective on July 06, 2011) for a total amount of US$14.9 million, and is expected to manage a small Grant for the Extractive Industries Transparency Initiative (EITI) for a total amount of US$250,000. Since the current Central African Backbone Operation is at the end of its activities, very few procurement activities are expected while the procurement activities for the expected EITI Grant will be limited. Therefore, no additional staff will be required to manage the Quality Education for All Project. The assessment of AFAP was recently conducted and it concluded that AFAP has adequate experience and capacity to carry out procurement activities related to the proposed Project. As a result, procurement risk is assessed as 23 Moderate. The procurement plan for the project was received by the Bank and found to be acceptable on October 31, 2013. It will be updated at least annually (or as required) to reflect project implementation needs. A brief summary of the project procurement arrangements are provided in Annex 3. E. SOCIAL (INCLUDING SAFEGUARDS) 89. Though no social (and environmental) safeguards policy is triggered, due diligence will be done by ensuring that gender and vulnerable groups dimensions (i.e., women, youth, handicapped teachers and students, PTAs, etc.) are fully taken into account during consultations and project implementation (i.e., teachers selection and schools administration is gender sensitive, and their concerns duly captured in the decision making process: curriculum review, choice of teaching material (books, speaking, student positioning in classrooms, etc. carefully thought of), and ultimately in the policy review. From the social development perspective, the project will directly benefit primary education teachers and indirectly primary education students as well as their parents. The development of a quality assurance system for in-service teacher training will be an opportunity for teachers to see their training valued through certification. Likewise, teachers’ technical improvement is ultimately expected to also value/benefit both students and their parents. It is expected that students and parents in rural and under-served areas will be those to benefit most from training interventions since the large majority of unqualified teachers are serving in those areas. The Social Development specialist of the project will work closely with the implementing agency and Government to make the project socially responsible by ensuring that key indicators are set forth to continuously monitor the gender and vulnerable groups’ consideration throughout the project lifecycle. F. ENVIRONMENT (INCLUDING SAFEGUARDS) 90. The project is classified as Environmental and Social Category C since the impacts associated to the activities are negligible to null. The project will not undertake any construction activity nor will use land or areas that might potentially trigger any resettlement of the targeted population. 24 Annex 1. Results Framework and Monitoring The objectives of the Project are to improve the system of in-service teacher training and to strengthen the management of human resources in the education sector in the Recipient’s territory. Unit of Target Indicator Name Core Baseline Measure YR1 YR2 YR3 End Target Responsibility Direct project beneficiaries (number) Core Number 0 500 700 800 2,000 (50% DPEI of which female (percentage) female) % Number of additional qualified 0 0 200 200 400 (60% EFOPE teachers resulting from project Core female) intervention, of which female (percentage) Competency based training Yes/No No No Yes Yes Yes EFOPE framework developed Students learning assessment Core Yes/No No No Yes Yes Yes DPEI established Daily working hours by teachers Number 3.5 3.5 4.0 4.5 4.5 DPEI/DBE/GIE Component 1: Improving system of in-service teacher training in primary education Unit of Target Indicator Core Baseline Responsibility Measure YR1 YR2 YR3 End Target Assessment of critical competency Yes/No No Yes Yes Yes Yes EFOPE/GIE/DPEI needs of teachers finalized Training plans for in-service teacher Yes/No No No Yes Yes Yes EFOPE/DPIE training developed Certification process for primary Yes/No No No Yes Yes Yes EFOPE school teachers developed and approved At least one student learning Core Yes/No No No Yes Yes Yes DPEI/DPE assessment conducted for the target grades (4th grade) 25 At least one EGRA testing conducted Yes/No No No Yes Yes Yes DPEI/DPE for 3rd grade students Component 2: Strengthening management of human resources in the education sector Indicator Core Unit of Target Baseline Responsibility Measure YR1 YR2 YR3 End Target Percentage of primary education % 0 30% 60% 100% 100% GIE/DPE schools that benefit from 4 annual school-level supervision and mentoring program offered to teachers in every primary school (cumulative) Education management information No No Yes Yes Yes DPEI system in place and functional. *Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators) . 26 Annex 2. Detailed Project Description 1. The Education for All Project (Phase II), to be processed as an Investment Project Financing (IPF), has two components: component 1: Improving the system of in-service teacher training in primary education; and component 2: Strengthening management of human resources in the education sector. Component 1 has two inter-related sub-components: (i) setting up in- service teacher training system; and (ii) building a student learning assessment in primary education. Component 2 has two sub-components: (i) strengthening management of human resources in the education sector, and (ii) project management. Component 1: Improving the System of In-Service Teacher Training in Primary Education (Estimated Cost: US$1.1 million) 2. The main objective of this component is to support improvement of teaching practices in primary education through the setting up of a system of in-service teacher training and the development of a student learning assessment. The component has two sub-components: Sub-component 1.1: Setting Up In-Service Teacher Training System (Estimated Cost: US$700,000) 3. The objective if this sub-component is to support the development of a national system of in-service teacher training in São Tomé and Príncipe, with a quality assurance scheme allowing for better planning, coordination and implementation of in-service training activities at the primary education level. The focus on in-service training is justified by the relatively high proportion of unqualified teachers in the system (an estimated 60 percent) but also by the need to define competencies and requirements, to harmonize training curricula and to award certification recognizing acquired competencies. 4. The system will rely on a set of three inter-related activities: (i) the setting up of a competence-based training framework, defining critical competency needs for teachers in São Tomé and Príncipe in the medium-term; (ii) the development of training plans, based on a modular approach, to respond to these needs; and (iii) the setting up of a certification process allowing for coordination of different teacher training activities. The modular approach will allow for recognition of competencies already acquired (if, for example, a teacher in the past benefited from training in a specific module, that training will be validated). The sub-component will support the setting up of institutional support for training within the MoE, including the development of guidelines and procedural manual for training, the adoption of appropriate laws and regulations and the setting up of the certification body in the Ministry of Education, its equipment and the development of certification procedures. 5. In parallel, an evaluation of academic and pedagogical competence of all primary education teachers (1,113) will be carried out. The objective of this evaluation is to define a coherent training plan that will meet the critical needs of individual teachers, instead of the development of “blind” in-service training courses on a one-size-fits-all basis, which has been the practice so far. Following the development of training plans, training sessions will be conducted to upgrade the academic and pedagogical competencies of teachers in need. Training 27 sessions will be offered at two levels (academic and pedagogical) and may be conducted at the school levels (for an individual teacher or a group of teachers with common needs) or at district or national levels for a larger group of teachers. The contents of the modular courses must always respond to the specific needs of individual teachers. The sub-component will finance training of 400 primary education teachers out of 1,113 teachers in primary education (or about 60 percent of unqualified teachers). This will be done starting from the second year of project implementation, since the first year will be dedicated to the development of institutional and pedagogical frameworks (laws and regulations, certification body, training modules, training of trainers, etc.) before the training can begin for the teachers. Training will be implemented by seasoned teachers, pedagogical advisors and inspectors and will be coordinated and organized by EFOPE. These training courses will be certified upon completion. It is expected that, once established, the competency framework will guide all future interventions in terms of in-service teacher training in São Tomé and Príncipe, ensuring harmonization of competencies and sustainability of the approach. 6. Decisions about which teachers should receive (or not) in-service training under the project (and when they would receive it) will be based on the results of the teachers’ assessment test. The expected competency of teachers at the end of the training should correspond to that of graduates of in-service training program at EFOPE. 7. Baseline data collection will be done using a sample of the total population of primary teachers, and will include both qualified and unqualified teachers. This baseline will then be used to determine the allocation of teachers to treatment and control groups. 8. The sub-component will also support development of tools for management of training, including a data-base for training management; training of staff of MoE on the use of the management tools of teacher training; analysis and treatment of data on training. An EMIS will be developed within the Planning Unit of the MoE to, among other things, consolidate and register data on training. The sub-component will also support data collection on local training needs and the synthesis of different local training needs into a national training plan and the training of trainers. A technical assistance will be provided to help the development of training modules and development of pedagogical supports and the implementation of annual action training plans. Sub-component 1.2 Developing Student Learning Assessment (Estimated Cost: US$400,000) 9. The objective of this sub-component is to support the development of a student learning assessment system which will allow systematic measurements of learning outcomes of students of primary education and collection of feedback to improve teacher training in primary education. The absence of the feedback mechanism on what students really learn in the classrooms today does not allow for appropriate design of teachers’ training strategy and programs. It is expected that such a system of learning assessment will be instrumental in modeling in-service training, by focusing in areas where weakness in learning outcomes are more notorious. 28 10. The goal is to support the development of a system that will allow administering the first learning assessment test for 6th grade in 2015/2016. The actions will include identification and recruitment of external technical assistance to develop a road map for learning assessment which will include assessment of the curriculum and students’ profile, and training of staff in the MoE on development of tests. The sub-component will also finance logistical costs associated with administration of testing in schools. An Early Grade Reading Assessment (EGRA) for 3d grade of primary education will be administered during the academic years 2014/2015 and 2016/17. 11. The sub-component will finance the costs associated with the development of management tools, training of teachers of the selected schools in the use of the tools; printing and distribution of tools in classrooms in pilot schools; distribution of computers in pilot schools to register data on student progress and to be able to electronically send the data to central level. 12. The sub-component will also pilot a small-scale impact evaluation The pilot will select a randomized simple of about 20 schools (25 percent of primary education schools) whose teachers will benefit from specific training and pedagogical tools to improve teaching in early grades of primary education. Teachers in pilot schools will receive harmonized tools and methodologies for the management of learning of students in the classrooms focused on lecture. They will also receive training on the use of the new methodologies and tools. The pilot will then compare results of the second EGRA test in the sample of 20 pilot schools with the results of non- participating schools. This sub-component will be implemented in partnership with the Secretary of Education of Pernambuco, Brazil.14 The experience in Pernambuco shows that the use of the management tools, continuous training of teachers and remediation actions for students lagging behind, translate into improved reading performance of students in the first grades of primary education. The sub-component will finance the costs associated with the development of management tools, training of teachers of the selected schools in the use of the tools; printing and distribution of tools in classrooms in pilot schools; distribution of computers, etc. Component 2: Strengthening Management of Human Resources in the Education Sector (Estimated Cost: US$0.9 million) 13. The objective of this component is to improve management of the sector in support of a better quality of teaching. This will be done through the development of a reliable information system within the MoE and the re-activation of the supervision function at the school-level in support of teachers. 14 During the study tour of 10 officials form the Ministry of Education of Brazil, in October 2012, the Secretary of Education of Pernambuco offered to support São Tomé and Príncipe in the development of tools to manage students’ progress in reading and writing. 29 Sub-component 2.1 Developing a Management Information System (Estimated Cost: US$640,000) 14. This sub-component will support the development within the Ministry of Education of an Education Management Information System (EMIS) that will allow for better management of human resources in the sector. The system will be installed in the Directorate of Planning and Education Innovation. The project will finance technical assistance for the development of the system. Computer equipment will be purchased and installed at the central level. Each primary school will also receive a computer for data management and a connection will be guaranteed with the DPEI. Statistical data and other information will be provided electronically by schools to the center. This will allow a fluid flow of information from the schools to the Ministry and vice-versa and a close monitoring of data and performance. With a small number of schools in the country (about 80) this integrated system will be relatively easy to set up. Staff at central and decentralized levels will be trained on the use of the system and a website will be developed in the MoE. An EMIS manager will be appointed within DPEI with the overall responsibility of ensuring technical management of the system. 15. The EMIS will support management of human resources in the sector. Improvements in the management of human resources is of critical importance for the system as it will set the basis for control of teacher’s presence in the classrooms and to pedagogical support to teachers activities. Particularly important is to ensure a better deployment of teachers among schools so as to reach the intended average of 4.5 hours per day on task. The roles and responsibilities of the different school actors (school director, inspectors, pedagogical advisors and teachers) will be clearly defined and schools will be provided with management tools to improve their management practices. Management tools will include different administrative and pedagogical tools for directors and teachers as well as a school report card. 16. On the other hand, the current flaw of supervision will be addressed. Inspectors and pedagogical advisors who currently do not visit schools will be put back to work and assigned to a number of schools. Their roles and responsibilities, somewhat unclear today, will be re- defined, they will get needed training and will carry out supervision and support tasks close to schools. The objective is to ensure four supervision and support visits for each school during a given academic year. The visits will get the maximum information possible on teachers’ practice in the classrooms, and feedback will be provided to teachers and to the central level, particularly on the kind of support needed to improve teaching practices. Sub-component 2.2: Project Management (Estimated Cost: US$260,000) 17. This sub-component will support the management of the project. Fiduciary management of the project will be assured by AFAP, (an autonomous Project Implementation Unit created by the Government under the oversight of the Ministry of Finance).The sub-component will finance the costs associated with salaries of AFAP staff (coordinator, procurement specialist, FM specialist and accountant). The component will also finance project audits and operating costs associated with project implementation. 30 Annex 3. Implementation Arrangements Project institutional and implementation arrangements 1. Project implementation will be fully integrated into the MoE structures. The technical directorates at the center, as well as EFOPE will be given full responsibility for implementing their activities according to agreed Annual Action Plan (AAP). A review of AAP implementation achievements and constraints will be carried out annually and will form the basis for the preparation of the following year’s AAP, according to priorities and potential economic and social changes. 2. To assist the MoE with project implementation, AFAP, a Fiduciary Agency, will be recruited, respectively for procurement and financial management tasks. AFAP will liaise with the directorates responsible for the implementation of agreed activities (DPEI, DPE, GIE and EFOPE) and will report on the progress made on a quarterly basis. Roles and responsibilities 3. The Directorate of Planning and Education Innovation (DPEI) is responsible for compilation and publication of data to inform education policy and investments. DPEI will be the MoE entity responsible for ensuring planning and coordination in the implementation of project activities in liaison with all the relevant structures of the MoE and AFAP. In that capacity, DPEI will ensure technical coordination in the development of Annual Action Plans, development of terms of reference of consultancy and training activities, and implementation and reporting of activities. DPEI will also be directly responsible for implementation of activities under sub-component 1.2. (development of learning assessment system) and sub-component 2.1 (education management education information system). DPEI’s role will include development of systems, tools and practices for an effective assessment of students’ achievements in close collaboration with the relevant structures of the MoE. Based on inputs received from schools, DPEI will be responsible for providing consolidated monitoring data, including status reports on project implementation by component, with a summary description of activities detailed M&E reports (annually). 4. Teacher Training Institution (EFOPE) is the MoE structure responsible for pre-service and in-service teacher training. EFOPE will be responsible to implement activities under sub- component 1.2 (setting up in service teacher training). A steering committee composed of representatives of relevant structures of the MoE, will be set up to oversee training. Among other tasks, the Committee will be in charge of setting priorities for training, approving annual training plans and evaluate training activities to be implemented by EFOPE. 5. The General Inspectorate of Education (GIE) is responsible for ensuring administrative and pedagogical monitoring of schools, principals and teachers. Currently GIE is unable to develop its mission due to lack of qualified staff, lack of inspectors in the field, lack of resources and necessary tools for supervision. GIE’s mission will be clearly defined through the definition of roles and responsibilities for each position in the structure. Teachers’ supervision will 31 facilitate the development of a culture of supervision at the school level by the director and its pedagogical team. Regular visits to schools will allow for assessment and identification of training needs, the analysis of teaching practice and reporting, through the use of report cards and computer tools. 6. The Directorate of Primary Education (DEB) is the MoE structure responsible for implementing the Government program and guidance for the primary school level. The scope of its activities also covers early childhood and inclusive education. The DEB will be responsible for ensuring that project activities related to these areas, including teachers’ training, are technically sound, and will closely monitor implementation and follow up. 7. The Directorate of Administration of Equipment within the MoE (DAE) has the mandate to administer and manage all the infrastructure and equipment of the Ministry. In that capacity it will be responsible for the management of equipment to be procured under the project, such as computers and computer materials, as well as furniture and other equipment. 8. The Fiduciary and Implementation Agency (AFAP) (Agência Fiduciária e de Administração de Projectos), an autonomous Project Implementation Unit, under the oversight of Ministry of Planning and Finance will assist the MoE with fiduciary implementation of the QEFA project and will operationally respond to the DPEI. The AFAP Coordinator will have the authority to sign contracts on behalf of the Ministry of Education. The fiduciary role will include procurement and financial management of the Project. AFAP is currently implementing the Bank-financed Central African Backbone Program – APL2. The performance of AFAP on this operation and the two recently closed operations is found to be satisfactory. The Agency is resourced with an experienced and qualified Procurement Officer and a Project Coordinator among other core staff. It is expected that no additional staffing will be required to manage the Quality Education for All Project, considering the limited number of high value contracts expected to be procured for the proposed operation. 9. The Directorate of Administration and Finance (DAF) is responsible within the MoE for financial management of education resources, comprising budget planning, execution and reporting. The DAF will be responsible for providing information on budget execution and working with AFAP on issues pertaining to financial management and reporting of the project. Financial Management, Disbursements and Procurement Financial Management Introduction 10. A financial management assessment was conducted at AFAP, the fiduciary entity of the project. The objective of the financial management assessment was to determine whether the financial management arrangements (a) are capable of correctly and completely recording all transactions and balances relating to the project; (b) facilitate the preparation of regular, accurate, reliable and timely financial statements; (c) safeguard the project’s entity assets; and (d) are subject to auditing arrangements acceptable to the Bank. The assessment complied with the 32 Financial Management Manual for World Bank-Financed Investment Operations that became effective on March 1, 2010 and AFTME Financial Management Assessment and Risk Rating Principles. 11. The assessment was also favorably impacted by the fact that the AFAP has a vast experience in handling Bank-financed operations. Financial Management Arrangements for the Project 12. Budgeting arrangements: The budgeting process is deemed to be adequate, and will take into account all relevant aspects of the project. AFAP will be instrumental in working with the Ministry of Education’s technical team in the elaboration of the respective annual budgets. The budget will be monitored through the customized TomPro accounting software which is already in use as well as through the unaudited quarterly financial reports, which will measure actual performance against target for each period. The budget execution reports will also be shared with the Ministry of Education for their information. 13. Accounting arrangements: AFAP already has an experienced FM team composed of a FM manager and an experienced accountant which have also obtained training on a regular basis. They are both very familiar with Bank disbursements and financial management procedures which will be fundamental to ensuring the project initiates without issues related to financial management. 14. The accounting transactions will be recorded and summarized on the customized TomPro accounting software, which will also be used for the production of quarterly and annual reports and elaboration of statistics of the project. AFAP will need to coordinate with the providers of the software to add the GPE project on the system as soon as the categories are finalized. Appropriate backup arrangements of information will also need to be implemented by AFAP to avoid any loss of information. 15. In addition, AFAP will need to update its procedures manual which amongst others will include appropriate procedures to ensure safeguard mechanisms to be used by the beneficiary Ministry of Education institutions and schools. This includes procedures for inventorying, safeguarding, transferring, accounting for fixed assets such as computers and other equipment to be purchased in the project as well as their disposal. The manual will also include appropriate procedures to be followed in the carrying out workshops, trainings and AFAP will be required to enforce the procedures. Internal Control Arrangements 16. Internal Control Systems: AFAP will be responsible for ensuring the adequacy of the internal control and accountability system of the project. Audits of projects implemented by AFAP have not identified any significant reportable conditions on its internal control systems. Internal control procedures will be documented on the FM procedures manual and enforced by AFAP. The manual already documents some responsibilities related to the project transactions, approval process, funds flow and disbursement processes. It will be updated to include other relevant information such as accounting records, supporting documents and filing and detailed 33 processes from budgeting to auditing requirements of the project. It will also summarize procedures related to the financial reporting process, including the agreed format of quarterly reports, contract administration and management, as well any other issues that may be relevant with regards to the accounting software program. Funds Flow and Disbursement Arrangements 17. Banking arrangements: AFAP will open two Designated Accounts (DA) denominated in United States Dollars for the project, and may also open two additional Project Accounts denominated in Dobras. Signatories for the client connection account will be submitted soon after negotiations, and AFAP will register the DA details on client connection soon after the project account is created therein. 18. Funds flow arrangements: The project will submit an initial withdrawal application to the Bank based on the ceiling to be agreed during negotiations and documented on the Disbursement Letter and will prepare cash flow projections based on work plans and budgets. World Bank IDA - Designated GPE - Designated Account (USD) Account (USD) Project Account (Dobras) Project Account (Dobras) Suppliers/Service Providers 19. Disbursement arrangements: The Project will make use of e-Disbursement arrangements where applications and their respective supporting documentation will be submitted electronically. The project will use the traditional transactions based disbursement procedures. It may also make use of other methods of disbursement which include direct 34 payments, special commitments and reimbursements. Details concerning disbursements will be spelt out in the project’s Disbursement Letter. 20. Financial reporting arrangements: AFAP will prepare combined quarterly un-audited financial reports (which have already been agreed with the Bank) which will be submitted to the Bank within 45 days after the end of the quarter to which they relate. This report will also be shared with the relevant parties of the Ministry of Education. Details of the reporting requirements, including content, format as well as frequency will also be defined on the procedures manual. 21. Auditing arrangements: The project will have annual audits covering the entire project. The audited financial statements with the management letter will be submitted to the Bank within six months of the end of such a period and will be submitted by AFAP. The audits will be conducted in accordance with International Standards on Auditing (ISA) and the auditors will issue a single opinion on the financial statements of the project. The Annual Financial Statements for the project will incorporate all activities, and include:  A Statement of Sources and Uses of Funds showing funds from IDA and how they were applied;  A Summary of Expenditures analyzed by both Component and Category;  The supporting Notes in respect of significant accounting policies and accounting standards adopted by management;  Designated Account Activity for the Year showing deposits and replenishments received, payments substantiated by withdrawal applications, interest that may be earned on the account and the balance at the end of the fiscal year; and  Summary listing of withdrawal applications by reference number, date and amount. 22. The auditor for the project will have to be hired within six (6) months of effectiveness, as a dated covenant, and the audit terms of reference will be agreed prior to negotiations. Table 6: Audit Compliance Requirements Action Periodicity By whom Submit audit report within 6 months after Yearly AFAP every one and a half calendar year Financial Management Action Plan 23. The following actions need to be taken in order to enhance the financial management arrangements for the Project: Table 7: FM Actions Needed Action Date Due by Responsible 1 Update the FM procedures manual By Effectiveness AFAP 2 Hiring of Independent Auditor Within 6 months of AFAP effectiveness 35 Conclusion of the Assessment 24. The conclusion of the assessment is that the financial management arrangements meet the Bank’s minimum requirements under OP 10.00. The overall residual risk rating for the project is Moderate; hence the project will have an on field supervision at least once a year. The financial management action plan outlines the mitigating measures, which, if implemented, would strengthen the financial management arrangements. Disbursements Arrangements 25. The project will disburse using transactions based procedures through submission of SOEs. The Advance disbursement method will be used to operate effectively through the DA. Upon effectiveness of the Financing Agreement, an initial advance, based on the ceiling will be disbursed into the DA to cover eligible expenditure. 26. The project may also make use of other disbursement methods/procedures such as(i) Reimbursement disbursement method, whereby the Bank reimburses the Borrower for eligible expenditures that the Borrower has pre-financed from its own resources; (ii) Direct Payment method, by which at the borrower’s request, the Bank makes direct payments to suppliers and contractors from the Credit account; (iii) the Special Commitment method, whereby the Bank will issue special commitment to commercial banks for payment of eligible expenditures. 27. The Bank will issue the “Disbursement Letter” which will specify the additional instructions for withdrawal of the proceeds of the Credit. Procurement 28. Procurement for the proposed Project will be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011, and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011; and the provisions stipulated in the Legal Agreement. Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants,” dated October 15, 2006 and updated in January 2011, shall apply to this project. 29. The Implementation of the procurement activities for the proposed project will be entrusted to AFAP (Agencia Fiduciária de Administração de Projecto) within the Ministry of Planning and Finance which is currently implementing the Bank financed Central African Backbone Program – APL2. The performance of AFAP on this operation and the two recently closed operations is found to be satisfactory. The Agency is resourced with an experienced and qualified Procurement Officer and a Project Coordinator among other core staff. It is expected that no additional staffing will be required to manage the Quality Education for All Project, considering the limited number of high value contracts expected to be procured for the proposed operation. 36 30. The assessment of AFAP was recently conducted and it is concluded that AFAP has adequate experience and capacity to carry out procurement activities related to the proposed Project and the risk associated with carrying out the project is rated as Moderate. Procurement Review Thresholds 31. Prior-review and procurement method thresholds for the project are indicated in the procurement plan and guided by the Table below. Table 8: Procurement Thresholds Procurement Method Thresholds Proposed (USD million) Prior Review Thresholds ICB Proposed (USD million) Shopping QCBS CQS Least Cost ICS Goods >0.3 ≥0.3 <0.3 Shopping: >0.1 contracts <0.5 DC: all Consulting >0.1: for firm ≥0.1 <0.1 <0.1 Services <0.1: first two contracts External Audit: all SSS: all >0.05: for Individuals ≥0.05 Project staff: all SSS: all Procurement Plan and Procurement Arrangements 32. Procurement Plan: A draft procurement plan for the first 24 months of project implementation was prepared by AFAP, and submitted for Bank review and approval on October 31, 2013. It will be updated at least annually or as required to reflect project implementation. 33. Procurement Arrangements: International Competitive Bidding contracts are not expected to be procured under the Project. Most of the contracts for Goods will be procured under shopping procedures. Goods to be procured will include among others information technology, office equipment, didactic materials, teacher training materials, school equipment, and printing and reproduction of didactic materials. Consulting services will normally be selected under Quality and Cost Based Selection (QCBS) method. Relatively small value assignments for firms will be selected under Selection Based on Consultants’ Qualifications (CQS), while for assignments of a standard or routine nature (audit services) will be selected under Least Cost Selection (LCS). When justified, and with Prior approval by the Bank, Single Source Selection method may be used. In this regards, it is envisaged to have two single source contracts with institutions (Calouste Gulbenkian, Portugal and the Secretary of Education of Pernambuco, Brazil) that are currently partners of the MoE in issues that contribute to the Project Objectives (sub-components 1.1 and 1.2 respectively). Consultancy services, may include Technical Assistance (TA) to setting-up the national system of in-service teacher training; TA to support the preparation and implementation of i) the institutional and pedagogical framework; ii) 37 the legal and regulatory reform; iii) the development of a student learning assessment, and iv) the training programs and materials; TA to development a website; TA to collect, prepare and analyze data; TA for MoE staff’s capacity building, among others. Individual Specialists will be selected under Individual Consultant’s Selection (ICS). Furthermore, the project will finance the cost associated with the AFAP core staff and operational expenses. Works contracts are not expected to be procured under the project. In addition, the project will finance the costs associated with workshops, training and cross visits to improve the management capacity at MoE level and incremental operating expenses. 34. Standard Bidding Documents: The World Bank Standard Bidding Document for Goods and Non-consultant Services will be used for ICB and the Standard Request for Proposals will be used for consulting service. 35. Operating Costs: Incremental operating costs shall consist of (i) office equipment and supplies; (ii) office utilities and reasonable communications expenses; (iii) office rental expenses; (iv) Project’s vehicle maintenance costs, fuel and spare parts and car rental required for project activities; (v) travel expenses and per diems for official Project staff (excluding salaries of Recipient’s civil servants); (vi) bank charges; (vii) insurance costs; (viii) operation and maintenance of office equipment; (ix) communication materials, including courier services; and (x) press releases and (xi) project administration and monitoring. 36. Training and Workshops: Training and workshops shall include the reasonable cost of (i) training materials and rental of training and workshop facilities and equipment; (ii) tuition fees, travel, accommodation and per diem of trainers, trainees and workshop participants; and (iii) any other reasonable expenses related to training, study tours, and workshops to be carried out under the Project. 37. Frequency of Procurement Supervision: In addition to prior review supervision to be carried out from Bank offices in Luanda and Maputo, semi-annual procurement supervision missions will be undertaken and post review of procurement actions will be carried out at least once per year. 38 Annex 4. Operational Risk Assessment Framework (ORAF) Operational Risk Assessment Framework (ORAF) São Tomé and Príncipe Quality Education for All (P146877) . . Project Stakeholder Risks Stakeholder Risk Rating Moderate Risk Description: Risk Management: A Letter of Education Policy and an Education Sector Although there is no guarantee against possible changes of Government priorities, the Plan were widely discussed and endorsed in the country new Government has declared support to the education strategy and has approved the in April 2012. The letter was approved on July 18, 2013, Education Sector Plan in Council of Ministers. The project fits into the strategy with a but frequent turnover in Government may create a risk of focus on quality of primary education. possible change in Government priorities. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Preparation CONTINUOUS Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Moderate Risk Description: Risk Management: AFAP will handle fiduciary responsibility of project implementation. The Ministry of Education has no experience in managing investment projects and there may be a risk of Resp: Status: Stage: Recurrent: Due Date: Frequency: fiduciary mismanagement. Client Not Yet Due Preparation CONTINUOUS Risk Management: The Bank will carry out regular supervision of project implementation. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Not Yet Due Preparation Quarterly Governance Rating Moderate 39 Risk Description: Risk Management: MoE and the AFAP have gained experience during the In spite of past performance, close supervision of Bank staff in collaboration with the past WB operations and there have never been any MoE central and de-concentrated structures can help reinforce and ensure accuracy of governance issues reported. tracking information and reception by intended beneficiaries. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Not Yet Due Preparation CONTINUOUS Risk Management: MoE will ensure regular supervisions to the schools in order to detect and manage any issue related to misuse of equipment and materials Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation Quarterly Project Risks Design Rating Moderate Risk Description: Risk Management: The design is simple and straight forward. The Project An active communication strategy will put in place to explain the objectives and focuses on in-service training. A pilot is planned on rationale of the Project. school-based learning management. No relevant risks are Resp: Status: Stage: Recurrent: Due Date: Frequency: expected in terms of project design. Ok Client Not Yet Due Implementation CONTINUOUS Social and Environmental Rating Low Risk Description: Risk Management: The Project is not expected to have major environmental The project is rated as an environmental and social category C project, which means and social impacts as there are no construction activities. that no safeguards policy is been triggered; however, from the social development point Rather, the project is expected to have more positive of view, Government will ensure that project is socially sound by ensuring that gender impacts on beneficiaries. and vulnerable groups issues are dealt with adequately (i.e. inclusion of women, handicapped and youth in the consultation process, and their concerns are dully taken into consideration in the decision making process: selection of trainee, school material and accessibility, as well as in the policy review, etc.). Resp: Status: Stage: Recurrent: Due Date: Frequency: 40 Both In Progress CONTINUOUS Program and Donor Rating Low Risk Description: Risk Management: The Bank team will work closely with the government and development partners to Donors may not be fully supportive to education, ensure the approval and implementation of the Education Sector Plan. especially if a turnover in the government puts at risk implementation of the Education Sector Plan Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Completed Preparation 18-Jul-2013 Risk Management: The approval of the Plan by the Government and its endorsement by development partners is a first step towards coordination among donors and between donors and the Government. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both CONTINUOUS Delivery Monitoring and Sustainability Rating Moderate Risk Description: Risk Management: The sector has been able to collect data and produce The project will support the implementation of an adequate monitoring system and reliable indicators. M& E capacity is average. The support training of staff to improve collect and analysis of quantitative and qualitative country allocates an important share of its budget to the date. education, but intra-sectorial allocation is still skewed to Resp: Status: Stage: Recurrent: Due Date: Frequency: higher education. Client Not Yet Due Implementation CONTINUOUS Other (Optional) Rating Risk Description: Risk Management: Resp: Status: Stage: Recurrent: Due Date: Frequency: Other (Optional) Rating 41 Risk Description: Risk Management: Resp: Status: Stage: Recurrent: Due Date: Frequency: Overall Risk Overall Implementation Risk: Rating Moderate Risk Description: There is a moderate risk for the project not being implemented as designed if there is a change in the government during the implementation process. However, São Tomé and Príncipe has a proven track record of implementing social sector projects even in a context of political and institutional instability. 42 Annex 5. Implementation Support Plan 1. Strategy and Approach for Implementation Support: The strategy for Implementation Support (IS) is based on the nature of the project and its risk profile. 2. Overall Education Strategy Support: The Government’s letter of Education Policy is the overall framework for any donor-supported interventions, including the proposed project. Donors active in the Education sector in In São Tomé and Príncipe comprise a few bilateral (Portugal, Brazil and Taiwan, China) and UN agencies (UNICEF and WFP). Portugal supports quality intervention in secondary education, especially curricular review, textbooks provision and equipment of secondary schools. Brazil supports in-service teacher training for secondary teachers, literacy programs for out-of-school children and adults, and vocational training. Taiwan, China has been active in secondary school construction. UNICEF supports interventions in early childhood education, and WFP provides meals for primary education students. (i) Annual Joint Reviews of the entire education sector will be organized. These joint reviews will include the participation of the civil society organizations and will serve as a platform to discuss the proposed Annual Action Plans and Budgets and to review progress made based on the Government’s performance indicators. (ii) As part of the joint review, the Bank will be in a position to: (a) ensure coherence between other donor-financed activities and the proposed project; and (b) assess overall achievement of results set for a given year and adjust project interventions for the next year based on success or failures of the previous year; and (c) ensure that quarterly procurement, financial management and physical progress reports will be produced for IDA’s review, allowing the Bank’s team to identify possible bottlenecks and propose corrective measures but also ensure continued consistency with the overall Education strategy. (iii) Procurement: The Bank will support project implementation by: (a) reviewing procurement documents, providing clearances/comments (prior review contracts) and conducting post procurement review (post review contracts); (b) ensuring consistency of procurement activities with agreed procurement plan and make adjustments as necessary. (iv) Financial: 3. The FM implementation support plan will be risk based, and will include: review of the project’s financial management system, including but not limited to, accounting, reporting and internal controls. It will also include a review of beneficiary institutions. Reviews of quarterly FMRs; review of annual audited financial statements and management letter as well as timely follow up of issues arising; and participation in project supervision missions as appropriate. Table 9: Skills needs and resources estimate Time Focus Skills Needed Resource Partner Role Estimate First twelve Verify if the risk Financial 2 weeks NA months mitigating measures Management implemented by 43 project effectiveness are still functioning as intended. Identification of any potential problems early in the life of the project 12-36 months Review the continuing Financial 6 weeks NA adequacy of the Management financial management arrangements Other Staff Skill required is summarized below Table 10: Summary of staff skills required Skills Needed Number of Staff Weeks Number of Trips Comments Financial Management 8 SWs Field trips as required. NA Specialist Procurement Specialist 8 SWs Field trips as required. NA Social Development Specialist 8 SWs Field trips as required. NA 44 Annex 6. Education Sector Background and context 1. The recent Country Status Report15 (CSR) provides a detailed review and economic analysis of the sector, using data up to and including, the school year 2010/11.The analysis shows substantial improvements in access in primary education 2. The Gross Enrollment Rate (GER) for basic education (grades 1-4) has been over 100 percent since the early 2000s. It stood at 129 percent in 2001/02; 144 percent in 2004/05; in 2010/11 it was 135 percent (average annual enrollment increase = 1 percent). Improvements are especially noticeable at the level of the second cycle of basic education (grades 5-6) where the GER, which was 104% in 2004/05 has increased to 140 percent in 2010/11 (average annual enrollment increase = 7%). Increases in the GER for the first cycle of secondary education are more dramatic, going from 62 percent in 2004/05 to 83 percent in 2010/11; for the second cycle the GER has remained fairly constant at around 20 percent. It is also noteworthy that in comparison to other African countries in the GDP/inhabitant range of US$700-1800, STP has the highest proportion of its population in higher education (1040 for 100,000 inhabitants, compared to 682/100,000 for eight comparable countries). 3. There has been significant progress in the primary school survival rates. Since 2010/11 the second primary cycle has the capacity to enroll all grade 4 leavers, meaning that the system has the capacity to ensure a survival rate of 100 percent. Indeed, 2010/11 is the first year for which the admissions rate into grade 6 is greater than 100 percent of the age cohort (it was 116 percent). This is illustrated by Figure 3 which shows the survival rates for four cohorts entering primary school between 2002 and 2004. The improvements are attributed to the decline in dropouts, as well as an increase in capacity. When compared to eight other countries of similar wealth, STP is the only one to have attained universal primary education with a completion rate averaging 100 percent (the average for Africa in 2009 was 70 percent; for the countries of similar wealth it was 66 percent). 4. If education is, indeed, a major determinant of poverty,16 the progress made in recent years bodes for reduction of poverty. In 2010, the poverty rate for heads-of-household with no formal education was 73.8 percent. On the other hand, poverty in households where the head-of- household has finished some primary education drops significantly (to 66.1 percent). Poverty rates continue to drop as education attainment increases: for households where the head-of- household has some secondary education the poverty rate is 55.1 percent; where he/she has completed secondary education it is 33.4 percent; and where he/she has tertiary education the poverty rate is 30.1 percent. 15 República Democrática de São Tomé e Príncipe, Pole de Dakar, UNESCO & World Bank, “Le système éducatif de Sao-Tomé et Principe : Une analyse sectorielle pour une amélioration de l’efficacité du système.” 2012. 16 This statement is made in several World Bank documents, including the World Bank Program document for a proposed grant to STP for a second governance and competitiveness development policy operation (Report No. 73247-ST). This paragraph is drawn from that Report. 45 Figure 3: Primary school survival rates from grades 1 to 6 for four cohorts 120% 116% 100% 76% 78% 80% 70% 60% 40% 20% 0% 2002/03 à 2003/04 à 2004/05 à 2005/06 à 2007/08 2008/09 2009/10 2010/11 Source: “Le système éducatif de Sao-Tomé et Principe : Une analyse sectorielle pour une amélioration de l’efficacité du système.” 5. Repetition has declined by about half over the period of this project. In basic education, the repetition rate went from 23 percent in 2004/05 to 12 percent in 2010/11. This is the result of a policy of automatic promotion from grades 1 to 2 and from 3 to 4; the very low repetition rate in grade 5 (3% in 2010/11) is the result of the improved curriculum and pedagogical practices. For 2010/11, administrative measures have reduced repetition rates to close to zero in grades 1 and 3, and only 3 percent for grade 5. However, they are at 27 percent for grade 2 and 12 percent for grade 4, and 24 percent for grade 6. The coefficient of internal efficiency has improved from 60 percent in 2007/08 to 88 percent in 2010/11. 6. The quality of education is thought to be low. São Tomé and Príncipe does not have a learning assessment system nor does it participate in any regional or international assessment exercise. It is, therefore, difficult to assess the quality of learning. The teaching environment has improved with provision of new, equipped classrooms, textbooks to all primary education students and teachers’ guides. However, about 60 percent of primary education teachers are unqualified. They lack adequate academic and pedagogical competencies. Pre-primary and primary education teacher training suffered a rupture when the former teacher training school was closed in 1996. For more than ten years there was no system for pre-service teacher training. New teachers were recruited from secondary schools and sent to teach. In 2007/08, a new teacher training school was created and 102 students were enrolled in 2010/11. 7. The CSR analyzed examination scores (2010/11) and finds that the overall level is reasonable “acceptable”, although with significant variations between districts. By and large, girls have better scores than boys; furthermore, there is less variation in the 4th grade girls’ scores than for those of boys, whereas the degree of variation in the 2nd grade is about the same for boys and girls. 8. The time on task of teachers in São Tomé and Príncipe is among the worst in Africa. In primary education, teachers do not spend on average more than 3.5 hours a day in school and yet this time is not fully dedicated to student learning and pedagogical tasks. Fifty-seven point five percent of primary education teachers spend less than 14 hours per week in the classroom. This 46 situation is partly due to the inability of the education system to effectively manage teachers’ work. 9. The education sector has been and remains a priority in public spending. The country was able to place education at the center of its development agenda over the last eight years. The proportion of public expenditure in the sector increased from 2.7 percent of GDP in 2002 to 8.8 percent in 2010. In particular, recurrent expenditures increased from 17.3 percent in 2002 to 23.8 percent in 2005 to 37.9 percent in 2010, which places the country amongst the SSA top performers in this category. Ministry of Education recurrent expenditures increased ten-fold (in current dobras) over the period 2004-2010 (from 24,749 million dobras in 2004 to 268,056 million in 2010). Investment expenditures over the same period increased thirteen-fold (from 4,726 million dobras in 2004 to 61,716 million in 2010). 47 Annex 7. Team Composition World Bank staff and consultants who worked on the project Name Title Unit Geraldo Martins Task Team Leader AFTEW Patrick Fillion Education Specialist (consultant) AFTEE Daniela Junqueira Sr. Counsel LEGAF Jose Janeiro Senior Finance Officer CTRLA Wolfgang Chadab Sr. Finance Officer CTRFC Elvis Langa Financial Management Specialist AFTFM Sónia Guilherme Procurement Specialist AFTPE Amos Malate Procurement Analyst AFTPE Adriana Cunha Costa Language Program Assistant AFTEE Mohamed Diaby Consultant AFTEW Cheikh A. T. Sagna Senior Social Development AFTCS Specialist Abdel Ben-Essavy Social Development Specialist AFTCS Frederico Mejer Consultant AFTEE 48