Document of The World Bank FOR OFFICIAL USE ONLY Report No: 58238 PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 43.5 MILLION (US$70 MILLION EQUIVALENT) TO THE REPUBLIC OF HAITI FOR THE EDUCATION FOR ALL PROJECT – PHASE II (APL) IN SUPPORT OF THE EDUCATION FOR ALL PROGRAM October 31, 2011 Human Development Department Haiti Country Management Unit Latin American and Caribbean 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 World Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective August 31, 2011) Currency Unit = Haitians Gourdes (HTG) HTG 40.35 = US$1 US$1.61 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AECID Spanish International Development Agency (Agencia Española de Cooperación Internacional para el Desarrollo) APG Adaptable Program Grant BNC National Bank of Credit (Banque Nationale de Crédit) BRH Bank of the Republic of Haiti (Banque de la République d’Haïti) CASECs Commune Councils (Conseil d’administration de la section communale) CDB Caribbean Development Bank CDD Community-driven Development CIDA Canadian International Development Agency CPS Country Partnership Strategy CTC Communication Transparency Committee DAA Directorate of Administrative Affairs (Direction des Affaires Administratives) DAEPP Directorate of Support to Private education and the Partnership (Direction d’Appui à l’Enseignement Privé et au Partenariat) DDEs Departmental Directorate of Education (Directions Départementales de l’Education) DEF Directorate of Fundamental Teaching (Direction de l’Enseignement Fondamental) DFP Professional Development Unit (Direction de la Formation Professionnelle) DGS Directorate of Infrastructure (Direction du Génie Scolaire) EFA Education for All EGRA Early Grade Reading Assessment ESMF Environmental and Social Management Framework ESRP Emergency School Reconstruction Project EU European Union FA Financing Agreement FAES Economic and Social Assistance Fund (Fonds d’Assistance Économique et Sociale) FIA Accelerated Teacher Training Program (Formation Initiale Accélérée) FNE National Education Fund (Fond Nationale de l’Education) FTI Fast-Track Initiative GDP Gross Domestic Product ii GMT Grassroots Management Training GoH Government of Haiti GTEF Presidential Commission on Education and Training (Groupe de Travail sur l’Education et la Formation) ICT Information and Communication Technologies ISN Interim Strategy Note IDA International Development Association IDB Inter-American Development Bank IFMs Teacher Training Institutes (Instituts de Formation des Maîtres) MECs Municipal Education Commissions MENFP Ministry of National Education and Professional Training (Ministère de l’Education Nationale et de la Formation Professionnelle) NAPSS National Action Plan for Safer Schools NGO Non-government Organization NPV Net Present Value NSFSC National School Feeding Steering Committee OIF International Organization of French (Organisation Internationale de la Francophonie) ONAPE National Education Partnership Office (Office National de Partenariat en Education) OPE Operational Plan for Education PANEF Government’s National Pact on Education and Training (Pacte National sur l’Education et la Formation) PDO Program Development Objective PIC Project Implementation Committee PMT Project Management Team PNCS National School Feeding Program (Programme National des Cantines Scolaires) SMC School Management Committee SOE Statement of Expenditures TA Technical Assistant UNESCO United Nations Educational, Scientific and Cultural Organization UNICEF United Nations Children’s Fund UPE Universal Primary Education USAID United States Agency for International Development WB World Bank WFP World Food Programme Regional Vice President: Pamela Cox Country Special Envoy: Alexandre V. Abrantes Sector Director: Keith Hansen Sector Manager: Chingboon Lee Task Team Leader: Peter A. Holland/Patrick Philippe Ramanantoanina iii   REPUBLIC OF HAITI EDUCATION FOR ALL – PHASE II (APL)   Table of Contents    I.  STRATEGIC CONTEXT.................................................................................................................. 1  A.  COUNTRY CONTEXT......................................................................................................................... 1  B.  SECTORAL AND INSTITUTIONAL CONTEXT ...................................................................................... 1  C.  HIGHER LEVEL OBJECTIVES TO WHICH THE PROJECT CONTRIBUTES ............................................. 4  II.  PROJECT DEVELOPMENT OBJECTIVES ................................................................................. 5  A.  PDO ................................................................................................................................................. 5  1.  Project Beneficiaries .................................................................................................................... 5  2.  PDO Level Results Indicators ..................................................................................................... 6  III.  PROJECT DESCRIPTION .......................................................................................................... 6  A.  PROJECT COMPONENTS .................................................................................................................... 6  B.  PROJECT FINANCING ...................................................................................................................... 10  1.  Lending Instrument ................................................................................................................... 10  2.  Project Cost and Financing ........................................................................................................ 12  C.  LESSONS LEARNED AND REFLECTED IN THE PROJECT DESIGN ..................................................... 12  IV.  IMPLEMENTATION ................................................................................................................. 13  A.  INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS ............................................................ 13  B.  RESULTS MONITORING AND EVALUATION .................................................................................... 14  C.  SUSTAINABILITY ............................................................................................................................ 14  V.  KEY RISKS AND MITIGATION MEASURES ........................................................................... 14  VI.  APPRAISAL SUMMARY .......................................................................................................... 15  A.  ECONOMIC AND FINANCIAL ANALYSIS ......................................................................................... 15  B.  TECHNICAL .................................................................................................................................... 15  C.  FINANCIAL MANAGEMENT ............................................................................................................ 15  D.  PROCUREMENT ............................................................................................................................... 16  E.  SOCIAL (INCLUDING SAFEGUARDS) ............................................................................................... 17  F.  ENVIRONMENT (INCLUDING SAFEGUARDS) ................................................................................... 17  G.  OTHER SAFEGUARD POLICIES TRIGGERED .................................................................................... 18    Annexes    Annex 1: Results Framework and Monitoring.............................................................................. 19  Annex 2: Detailed Project Description ......................................................................................... 23  Annex 3: Implementation Arrangements ..................................................................................... 40  Annex 4: Operational Risk Assessment Framework (ORAF) ...................................................... 62  Annex 5: Implementation Support Plan ....................................................................................... 66  Annex 6: Team Composition ....................................................................................................... 69  Annex 7: Economic and Financial Analysis ................................................................................ 70  Annex 8: Technical Matters ......................................................................................................... 71  iv       PAD DATA SHEET Republic of Haiti Education for All Project – Phase II (APL) PROJECT APPRAISAL DOCUMENT Latin America and the Caribbean Region LCSHE Date: October 31, 2011 Team Leader: Peter A. Holland/Patrick Country Director: Alexandre V. Abrantes Philippe Ramanantoanina Sector Director: Keith E. Hansen Sectors: Primary education (100%) Sector Manager: Chingboon Lee Themes: Education for all (100%) Project ID: P124134 Environmental category: Partial Assessment Lending Instrument: Adaptable Program Grant Joint IFC: Joint Level: Project Financing Data [ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 70.00 Proposed terms: Financing Plan (US$m) Source Local Foreign Total BORROWER/RECIPIENT 0.00 0.00 0.00 IDA Grant 70.00 0.00 70.00 Total: 70.00 0.00 70.00 Borrower: Republic of Haiti Haiti Responsible Agency: Ministry of National Education and Professional Training (Ministère de l'Education Nationale et de la Formation Professionnelle) 5, rue Dr. Audain Haiti Tel: (509) 2517-7846 epthaiti@gmail.com v Estimated disbursements (Bank FY/US$m) FY 12 13 14 15 Annual 16.00 22.00 22.00 10.00 Cumulative 16.00 38.00 60.00 70.00 Project implementation period: Start December 31, 2011 End: December 31, 2014 Expected effectiveness date: December 31, 2011 Expected closing date: June 30, 2015 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Does the project require any exceptions from Bank policies? Have these been approved by World Bank management? [ ]Yes [X] No [ ]Yes [X] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial� or “high�? [X]Yes [ ] No Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Project development objective The objective of the Project is to support the Strategy for Rebuilding the Education System through the implementation of sustainable programs to improve: (a) access, particularly of under-served populations, to Primary Education; (b) quality of Primary Education; and (c) the institutional capacity in the Recipient’s education sector. Project description The Project constitutes the second phase of the Program, and consists of the following four components: Component 1. Improving Access to Quality Primary Education: i) Improving the quality of the Tuition Waiver Program; ii) Improving basic educational services in Selected Rural Communities; and iii) Strengthening the Recipient’s School Health and Nutrition Program. Component 2. Support to Teaching and Learning: i) Expanding the number of certified teachers, including preschool teachers; and ii) Improving primary school performance. Component 3. Institutional Strengthening and Governance: i) Building the institutional capacity of MENFP to improve service delivery and overall educational governance; and ii) Strengthening of public-private partnerships. Component 4. Project Management, Monitoring and Evaluation: Strengthening MENFP’s monitoring and evaluation capacity. Which safeguard policies are triggered, if any? OP/BP 4.01 Environmental Assessment, OP/BP 4.04 Natural Habitats vi Financing Description of Condition/Covenant Date Due Agreement Reference Schedule 2 1. For purposes of appraising and approving Throughout Project Section I.A.2 eligible Student Enrollment Subprojects, the implementation Recipient shall establish and thereafter operate and maintain throughout Project implementation, a nine member steering committee consisting of representatives of MENFP, MEF, non-public education providers, parents’ associations and teachers’ unions, all with qualifications acceptable to the Association. Schedule 2 2. No later than December 1, 2012, the Recipient Section I.A.3 shall establish, and thereafter operate and maintain during Project implementation ONAPE with a structure, functions and responsibilities acceptable to the Association. Schedule 2 No transfer of Financing funds shall be made to any Throughout Project Section I.C.1.3 SMC or Beneficiary Service Provider, as the case implementation may be, prior to the date on which the pertinent SMC or Beneficiary Service Provider has entered into the pertinent Grant Agreement. Schedule 2 1. The Recipient shall ensure that the Project is Throughout Project Section I.F.1- 3 carried out in accordance with the ESMF. implementation 2. The Recipient shall include in the Project Reports referred to in Section II.A of Schedule 2 of the Financing Agreement adequate information on the implementation of the ESMF, any environmental management plan or similar safeguard instrument. 3. The Recipient, through MENFP, shall ensure that any works to be carried out under the Project do not involve any Involuntary Resettlement or affect Natural Habitats, Forests or Physical Cultural Resources. vii   I. Strategic Context A. Country Context 1. With a GDP per person of US$673, Haiti is the poorest country in Latin America and the Caribbean and one of the poorest countries in the world. Haiti has been struck by a series of external shocks over the last five years, exacerbating the country’s fragility, and reversing the poverty gains achieved since 2001. In 2008, Haiti’s economy was deeply impacted by the spike in food and fuel prices and tropical storms and hurricanes caused widespread damages and losses estimated at approximately US$900 million (15 percent of GDP). Fifteen months later, on January 12th, 2010, a 7.0 magnitude earthquake struck Port-au- Prince, causing the worst humanitarian disaster in Latin America and the Caribbean in recorded history and causing losses of 120 percent. In October of 2010, a cholera epidemic struck the country. The result is severely diminished public sector capacity at a time of unprecedented need for social and other public services. 2. Almost two years after the earthquake, the Haitian economy is recovering, mainly driven by the agriculture, textile, and construction sectors. It is projected to have grown by 6.1 percent in 2011 in large part due to reconstruction efforts after having contracted by 5.4 percent in 2010 following the earthquake. Donor pledges after the earthquake were generous, totaling US$5.6 billion for 2010-2011, and disbursements are now materializing. Economic activity has resumed and authorities estimate an average annual rate of growth of 7 percent1 for the next few years. 3. There is a general consensus that Haiti’s growth prospects are tightly linked to the country’s ability to make significant improvements in the development of its human capital. Haiti currently ranks 148th of 172 countries on the Human Development Index. It is estimated that over half of the Haitian population lives in absolute poverty (US$1/day) and 78 percent on less than US$2/day. These rates are higher in rural areas. Placing Haiti on a virtuous cycle of improved human development, increased productivity, and accelerated poverty reduction requires a substantial investment in enhancing access to basic social services. Such improvements in services are also important mitigating measures for civil unrest, and slowing the out-migration from rural areas to congested urban areas.2 B. Sectoral and Institutional Context 4. Haiti’s education sector faced tremendous challenges post-earthquake, including significantly diminished capacities for responding to them. The losses of schools, teachers and staff from the Ministry of National Education and Professional Training (Ministère de l’Education Nationale et de la Formation Professionnelle) (MENFP) compound the problems of a sector which already faced a shortage of schooling infrastructure, trained teachers, and effective governance mechanisms. Rebuilding the education system was a centerpiece of the current President’s’s campaign, and Universal Primary Education (Éducation Primaire 1 Staff estimate based on IMF and Government projections. 2 IMF (2010). Article IV Consultations. August 10, 2010. 1 Universelle) (UPE) is at the heart of his policy priorities. The President announced the creation of a National Education Fund (Fond Nationale de l’Education) (FNE) that would strive to reach UPE through expanding public-private partnerships, and re-asserting the state’s role in governing the sector, since more than 90 percent of education establishments are private. 5. Haiti faces challenges of both supply and demand in the marketplace of education. These challenges are compounded in rural areas by greater poverty and difficult access. On the supply-side, there are simply not enough spaces for children to enroll in school. It is estimated that 400,000-500,000 children aged 6-12 are not attending school, the majority of which are found in rural areas. Education supply also plays a critical role as a pull factor for helping with the relocation of families living in temporary camps after the earthquake, where children live in squalid conditions, and education services are sparse and of low quality. On the demand-side, the average cost of US$70 in tuition per child/per year is a prohibitive figure for poor families, especially for those living in rural areas characterized by poverty rates of 82 percent (77 percent living in extreme poverty). These areas are densely populated, representing 60 percent3 of the population, comprised of small villages. They account for about 57 percent of student enrollment; however, the large number of small rural schools masks the fact that only about one in every four villages has a school, with an average school size of about 225 students. The quality of these schools is shockingly low, and the chronic lack of support renders them unsustainable, resulting in ‘skeleton’ schools which do little for improving learning. 6. Even when schools are accessible, the quality of the education offered is uneven, and often very low. This is made most plain by the findings of the recent Early Grade Reading Assessment (EGRA), carried out in 2008 and 2009 in Haiti. On average, children in grade 3 are able to read less than 23 words per minute.4 For those students studying in Creole, 29 percent were unable to read a single word by grade 3. Reading comprehension is even weaker, with children able to answer less than 10 percent and 17 percent of reading comprehension questions correctly, in French and Creole respectively.5 7. The MENFP’s ability to fulfill its policymaking and regulatory role in the education sector has been further weakened. Before the earthquake, less than 20 percent of non-public schools were functioning with a permit from the MENFP,6 due in part to the MENFP’s inability to undertake the necessary activities to accredit schools. Even this minimum function has been further debilitated since January 2010, a consequence of the highly centralized nature of the system. Given the predominance of the non-public sector, this entails establishing and expanding partnerships with religious, private, NGO-supported and community-based actors, to scale up and enhance service delivery. The emphasis of the state’s role is placed on the enforcement of minimum levels of quality across a range of educational norms, and the financing of the services (wherever possible), rather than the direct delivery of education services per se. 3 Government of Haiti. Carte de Pauvrete. 2004. This number is an estimate, and varies considerably. 4 Sixty words per minute is standard for early primary reading fluency. 5 Research Triangle Institute. Haiti Early Grade Reading Assessment (EGRA): Rapport pour le MENFP et la Banque Mondiale. Avril 2010. 6 MENFP. Stratégie Nationale D’Action/Education Pour Tous. Juin 2008 2 8. The World Bank, together with other donors, most notably the Inter-American Development Bank (IDB), would be helping to co-finance the implementation of Haiti’s national strategy for rebuilding the education system. The strategy’s Operational Plan for Education (OPE) calls for financing across 9 strategic themes, ranging from preschool to tertiary education (see Table 1). The Project would support the implementation of the OPE goals in four areas: i) Restructure and reinforce education sector governance; ii) Improve and standardize programs and curricula; iii) Improve training and development of education sector staff; and iv) Provide support to early childhood education and basic education. Other priority areas to be further defined under the OPE are: i) Establish the 4 year secondary school system; ii) Strengthen and extend the network of vocational training centers; iii) Strengthen and modernize the higher education sector; iv) Rehabilitate and strengthen special education; v) Improve adult literacy (15-50 years old). Table 1: Strategic Themes of the OPE Key OPE Targets Themes Partners for 2015 Regional and local offices equipped 1: Restructure and reinforce WB, IDB, France, 75 civil servants trained in project UNESCO, AECID, UNICEF, education sector governance planning and M&E CIDA,USAID EMIS with school map ONAPE is operational Standards developed for all levels of system 2: Improve and standardize New curricula developed, UNESCO, CIDA, WB, OIF programs and curricula approved, implemented in all schools Training materials developed and trainings implemented for all teachers Competencies established for each level of employment 3: Improve training and WB, CDB, Switzerland, 100% of central and decentralized France, IDB, UNESCO, EU development of education sector staff staff are trained National ECD policy endorsed UNICEF, WB, CDB, CIDA, 1.6 M families receive tuition IDB, USAID, FTI, UNESCO, 4: Provide support to early childhood education and basic waivers WFP education 8,902 classrooms built/equipped 9. The proposed Project represents a consolidation of the World Bank’s education portfolio, and the evolution of the World Bank’s education strategy in Haiti. The Project would build on the successes of three ongoing World Bank financed education Projects: Education for All Adaptable Program Grant (APG 1) (Credit No. H2860-HT, P099918), the Meeting Teacher Needs for Education for All (EFA) Project (Credit No. H3750-HT, P106621), 3 and the Emergency School Reconstruction Project (ESRP) (Credit No. H460-0-HT, P115261), all of which are scheduled to close in 2012. The Project retains a focus on primary education and includes elements of preschool education, building on experience in the World Bank’s ongoing supervision of the Education for All Fast-Track Initiative’s US$22 million contribution to the sector (Haiti Education for All Trust Fund No. 97009-HT, P114174). 10. Specifically, the Project would continue to finance important priority activities started under APG 1 and outlined under the OPE, including tuition waivers, the Accelerated Teacher Training Program (Formation Initiale Accélérée) (FIA), and the School Health and Nutrition Program. The tuition waiver program subsidizes poor children to attend basic education free of charge. The accelerated teacher training program aims to provide more qualified teachers on the market in a short period of time, in order to absorb the students outside the system. The School Health and Nutrition program helps to incentivize families to send children to school, and helps otherwise hungry children concentrate better in the classroom. 11. This external financing would complement domestic financing for the sector. The annual national education budget is close to US$200 million, with an anticipated US$36 million of additional resources to be raised through the FNE. Annual donor resources are expected to total approximately US$111 million from 2011-2015, bringing total annual sector financing to about US$314 million. This leaves a financing gap of approximately US$1 billion for OPE implementation. C. Higher Level Objectives to which the Project Contributes 12. The proposed Second Phase of the EFA Program is in line with the World Bank’s Interim Strategy Note for the Republic of Haiti FY12-FY13 and the “Learning For All – World Bank Group Education Strategy 2020�. The overall program development objective (PDO) for the Education For All Program, approved by the Board of Executive Directors on April 26, 2007, is to improve access to primary education for poor children aged 6-12, while improving equity, quality and governance of the education sector. Consistency with Interim Strategy Note 2012 13. This Project is a core component of the Interim Strategy Note FY12-FY13 for the Republic of Haiti, Report No. 65112-HT, to be discussed by the Executive Directors on December 1, 2011 together with this Project as well as projects in Disaster Risk Management and Agriculture, for a total investment of US$170 million from IDA (and US$10 million from the Global Agriculture and Food Security Program Trust Fund (GASFP)).. 14. The overarching objective of the Interim Strategy is to support the Government of Haiti in implementing sustainable post-earthquake reconstruction. It has four Strategic Objectives (i) reduce Haiti’s vulnerability to disasters and crises and increase its resilience to shocks, (ii) sustainable reconstruction in key infrastructure, (iii) build human capital, and (iv) revitalize the economy. The strengthening of governance and capacity in favor of reconstruction will be its only cross cutting theme, which will permeate all operations and drive the content of budget support operations. 4 15. Over its 12 month implementation period, the ISN’s Key outcomes will be: (i) greater resilience to natural disasters and other crises (food and health) through improved institutional capacity and infrastructure; (ii) the return of people displaced by the 2010 earthquake from camps to upgraded neighborhoods and repaired housing; (iii) continued and expanded financing of tuition for primary school children; (iv) improvements in the business environment and the launching of investments that will create jobs outside of the capital, and (v) the continuation of the Government’s economic reform program and the transfer of resources to the Haitian budget in the event of a financing gap. 16. The proposed Project will play a central role in achieving the ISN’s strategic objectives. It will contribute substantially to Strategic Objective three, building human capital, by improving the access, particularly of under-served populations, to primary education and by improving the quality of primary education. It will also contribute substantially to the cross- cutting objective of improving governance and capacity building across Haiti’s public sector by building the institutional capacity of the Recipient’s education sector. It is expected that the Project will serve as the vehicle for a substantial transfer of resources from IDA to the Government of Haiti during the implementation period of the ISN (FY12-FY13) and beyond. Also, by focusing on immediate gains (tuition waivers and school accreditation) as well as institutional development over the next 5 years, the proposed Project provides both the quick wins and the institution building which are recommended for successful implementation of operations in fragile states such as Haiti. II. Project Development Objectives A. PDO 17. The objective of the Project is to support the Strategy for Rebuilding the Education System through the implementation of sustainable programs to improve: (a) access, particularly of under-served populations, to Primary Education; (b) quality of Primary Education; and (c) the institutional capacity in the Recipient’s education sector. 1. Project Beneficiaries 18. The Project would use separate mechanisms to benefit different target populations, totaling about 175,000 people. For those poor children living in peri-urban areas, support to the Government’s tuition waiver program would allow about 100,000 students7 per year in approximately 1,200 schools to attend school free of charge. In addition, approximately 8,280 student-teachers would benefit from accelerated pre-service teacher training (resulting in 3,300 additional qualified primary teachers), and 70,000 students would participate in the Government’s school health and nutrition program. For those children living in rural areas without access to primary education services, the Project’s community-based approach would represent a new mechanism for reaching a highly excluded population, beginning with 6,250 students in 200 communities under this Project, and generating an estimated 36,000 spaces for students in the coming years. 7 This compares to 80,000 financed by APG 1 (Credit No. H286-HT, P099918) in the cohort of about 175,000 students for the school year 2010-2011. 5 2. PDO Level Results Indicators 19. The Project objective would be measured as follows: (1) Access. Number of children enrolled through the provision of tuition waivers; (2) Quality. Percentage of children enrolled in participating schools for more than one year reading at grade level in Grade Three; (3) Sustainability. Percentage of community teachers financed by the Government of Haiti; (4) Capacity. Percentage of schools inspected at least once per year by the MENFP. III. Project Description A. Project components Component 1: Improving Access to Quality Primary Education (US$45 million) 20. This component consists of the following: - Improving the quality of the Tuition Waiver Program through, inter alia: (a) the establishment and strengthening of School Management Committees; and (b) the provision of Student Enrollment Grants for the carrying out of Student Enrollment Subprojects by School Management Committees; - Improving basic educational services in Selected Rural Communities through, inter alia: (a) the construction and rehabilitation of school buildings; (b) the financing of community based teacher salaries; (c) the acquisition of school supplies, materials equipments and operating costs; and (d) the provision of training in school management to Selected Community Representatives; - Strengthening the Recipient’s School Health and Nutrition Program through, inter alia, the provision of: (a) daily morning snacks and hot meals in schools to be selected in accordance with criteria acceptable to the Association; (b) deworming medication and micro-nutrients to participating schools twice a year. 1.1 Enhance the Tuition Waiver Program (US$31 million) 21. This sub-component would enhance the Government’s tuition waiver program, which significantly lowers the cost of schooling for participating families by waiving the tuition in select non-public schools and providing students with textbooks. The sub-component would finance grants to School Management Committees and consultancies. Among the proposed improvements of the program under Education for All – Phase II (APG 2) is a continued evolution toward a results-based model, the emphasis of greater accountability of participating schools, and the strengthening of sanctions for non-compliance. Other improvements would include closer linkages with teacher training particularly in literacy, a clearly defined graduation from the program for participating schools, and the gradual incorporation of the tuition waivers into the education budget. The sub-component would also finance the strengthening of school management committees responsible for managing transfers, and would help to resettle populations from temporary camps in Port-au-Prince through improving education services in and around Delmas 32. 6 1.2 Support to Communities (US$7 million) 22. This sub-component would channel grants and provide training to communities to offer basic educational services to school-age children by constructing and rehabilitating rural schools, building on an existing initiative in ten communities. The sub-component would finance grants to School Management Committees (or other community representatives) and consultancies. Communities would be selected according to three criteria: i) a demonstrated dearth of schooling, ii) a minimum school age population (25 children) and iii) a minimum level of community organization/social capital. Community-based teacher salaries would be co-financed by the MENFP’s budget in a gradual manner such that 100 percent of salaries would be covered at Project end, thereby ensuring the sustainability of the new partnership model. Democratically- selected representatives from 200 communities with minimal education access would benefit from training in school management, quality assurance, procurement, information dissemination and construction supervision. 1.3 School Health and Nutrition (US$7 million) 23. This sub-component would support the Government’s school health and nutrition program. The sub-component would finance consultancies with service-providers, and operating costs of the National School Feeding Program (Programme National des Cantines Scolaires) (PNCS). Implemented by the PNCS, the program is delivered by NGOs subcontracted by the MENFP through the PNCS. Service providers would deliver a morning snack and a hot meal daily to participating schools. The program also contains a de-worming component with the distribution of albendazole to all schools twice a year, and micro-nutrients. Institutional strengthening issues would also be included in close collaboration with the World Food Programme (WFP), beginning with a public expenditure review. Component 2: Support to Teaching and Learning (US$10 million) 24. This component consists of the following: - Expanding the number of certified teachers, including preschool teachers, through the carrying out of pre-service teacher training; - Improving primary school performance through, inter alia: (a) developing a teacher’s guide including lesson plans for each day of class; (b) introducing pre-school education in communities supported by the Project to be selected in accordance with criteria acceptable to the Association; and (c) developing distance education policies. 2.1 Expand Pre-service Teacher Training (US$8 million) This sub-component would increase the annual output of certified teachers (including preschool teachers) to approximately 1,200 per year, with a priority on accepting applicants from areas identified as having minimal access to education services (1.2 above). The sub-component would finance goods, training and consultancies with service providers. Working in partnership with teacher training agencies (Instituts de Formation des Maîtres) (IFMs), the program provides one year of intensive institution-based training, followed by two years of classroom-based practice. Improvements in the pedagogic content of the Accelerated Teacher Training Program (Formation Initiale Accélérée) (FIA) curriculum would be made in the first year of the Project and in following years as indicated by student-teacher performance. Participants would receive 7 stipends during their years as trainees, and upon graduation could be absorbed into schools participating in the tuition waiver and community-based program, thereby increasing the quality of instruction in participating schools. 2.2 Support to Reading Instruction and Distance Education (US$2 million) 25. This sub-component would support qualified community instructors in rural areas through training to effectively teach children starting in preschool and grade 1 in target communities. The sub-component would finance goods, training and consultancies. Activities relating to the strengthening of the MENFP’s approach in reading instruction would be financed, including policy development, program development, and implementation. In addition to pre- service and in-service education provided in partnership with the IFMs and MENFP, a Teacher’s Guide would be developed with lesson plans for each day of class. The proposed curriculum would include Lekti se Lavni (reading is the future), a reading instruction approach aimed at children in early grades already in use by MENFP. Pre-school education would also be provided in larger communities, in collaboration with UNICEF. The component would also support improved educational quality using distance education technologies, including supporting the development of national policies around distance education, and modernizing the distance education program for the benefit of community-based teachers, FIA teachers and others using new technologies. Component 3: Institutional Strengthening and Governance (US$4 million) 26. This component consists of: - Building the institutional capacity of MENFP to improve service delivery and overall educational governance through, inter alia, the strengthening of: (a) the MENFP’s directorate for administrative matters, the directorate of assistance to private teaching, the directorate of basic education, the directorate of training and professional development and the directorate of school of engineering; and (b) its departmental education directorates at the departmental level; - Strengthening of public-private partnerships through, inter alia: (a) the provision of technical assistance to ONAPE to operate its administrative and technical departments; (b) the acquisition of equipment and the renting of office space to house ONAPE; and (c) the enhancement of demand side accountability by designing and implementing community scorecards and community reading assessments. 3.1 Modernization and Transformation of the MENFP (US$2 million) 27. This sub-component would continue the work begun under APG 1 of modernizing and transforming some of the MENFP’s key units at the central and decentralized levels, with new operational modalities. The sub-component would finance goods, training and consultancies. At the central level the sub-component would support the Administrative Affairs Office (Direction des Affaires Administratives) (DAA), the Directorate of Support to Private Education and Partnership (Direction d’Appui à l’Enseignement Privé et au Partenariat) (DAEPP), the Directorate for Basic Education (Direction de l’Enseignement Fondamental) (DEF), the Professional Development Unit (Direction de la Formation et du Perfectionnement) (DFP) and the Directorate for School Infrastructure (Direction du Génie Scolaire) (DGS) Areas in which the Project would support these central units include updating of accounting systems, training in 8 information management, delivery of communications strategies, training in procurement procedures, creation of databases and training in data collection, training in analysis and reporting. A special focus would be placed on strengthening the DGS in the area of environmental safeguards, specifically the national application of the ESMF, including the provision of technical assistance and transport and communication equipment. With respect to the Departmental Directorates of Education (Directions Départementales de l’Education) (DDEs), this sub-component would strengthen their ability (i) to provide close support to schools, teacher training centers and communities, and (ii) to supervise the implementation of the OPE activities at the local/regional level. The support to the DDEs would consist of a program- based budget between the MENFP and regional units (including beneficiary assessments), and would include the stipulation that all schools be inspected at least once per year. 3.2 Supporting Public-Private Partnerships and Community Involvement (US$2 million) 28. This sub-component would aim to further the dialogue and collaboration between the public and non-public sectors (including communities), and foster the establishment of public- private partnerships through the creation of the National Education Partnership Office (Office National de Partenariat en Education) (ONAPE). The sub-component would finance goods, training, rental space for offices, operating costs and consultancies. This sub-component would finance the updating of the ONAPE’s operational manual, and would finance technical assistance for the administrative and technical departments of the ONAPE to be established and rendered operational, in light of the FNE. It would finance the necessary equipment and rental offices to house the ONAPE. It would also support the establishment of Municipal Education Commissions (MECs), as called for in the OPE, to integrate local authorities and community representatives into the education management system. MECs would be comprised of representatives from local government, civil society and the decentralized offices of the MENFP, and would help in keeping the general public informed about national education initiatives, identify excluded populations, and serve as a vital link between service providers, families, and the state. Similarly, parents and communities would be more informed and empowered through activities such as community scorecards and community reading assessments, demand-side accountability mechanisms that would help parents be better advocates for their children and improve educational quality in all program schools. Component 4: Project Management, Monitoring and Evaluation (US$6 million) 29. This component consists of: - Strengthening MENFP’s monitoring and evaluation capacity through: (a) the improvement of MENFP’s monitoring and evaluations systems; (b) the carrying out of an impact evaluation of the Project; and (c) the provision of technical assistance to oversee the implementation of Project activities under Parts 1, 2 and 3 of the Project. 30. This component would support increased capacity on the part of MENFP to implement the Project. The component would finance goods, rental space, training, operating costs and consultancies. It would aim to further integrate the Project team into the national structures, and strengthen the overall capacity for the management and evaluation of Project activities as outlined under the OPE. 9 31. Activities to be financed include Project management costs to implement and supervise activities and strengthen the MENFP monitoring and evaluations systems, including undertaking two waves of EGRA, and a robust impact evaluation for the Tuition Waiver Program. The component would support the costs of consultancies associated with the existing Project Management Team (PMT), including the Project Coordinator, the administrative staff (procurement and financial management staff), and technical consultants overseeing the implementation of specific Project activities. The PMT is responsible for implementing this component. B. Project Financing 1. Lending Instrument 32. The proposed instrument is an Adaptable Program Grant (APG). The use of an APG presents the following advantages over other instruments: i) the overall program time horizon of approximately 10 years enhances the predictability of donor financing for the Government of Haiti, ii) the phased approach allows for consolidating gains of previous phases and bringing to scale successful pilot operations, and iii) follow-on phases can benefit from implementation capacity that has been built up in previous phases of the Program. Phase 2 remains consistent with the APG program first approved by the Board in 2007 with regards to objectives and activities, though represents a much higher grant amount and is being presented later than originally planned. Table 2 summarizes the extent to which triggers under Phase 1 have been met, justifying the graduation to Phase 2. 33. This proposed Phase 2 focuses more sharply on quality outcomes and sustainable partnership models. The tuition waiver program has thus far served as a type of safety net, providing in-kind transfers to poor families in times of shock. Working in the same tuition waiver schools as under APG 1, the second phase would begin to introduce inputs aimed at increased quality of instruction and learning (e.g. trained teachers, enhanced reading instruction). With regards to issues of access in rural areas, a much-needed new partnership modality for under-served communities would be introduced under Phase 2. Finally, a transition plan would be designed for tuition waiver schools to graduate to a new level of partnership with the MENFP, signaling a new arrangement for receiving financial support. This could include a lower level of state financing, a cap on years of participation, and a shift to a system of competitive grants. 10 Table 2: Education for All Phase 1 Triggers Trigger Status 1. Execution of medium-term public education expenditure  Trigger was met as part of the framework, such that public education recurrent spending (FY Enhanced HIPC Initiative (June, 2007-2009) continues to be at least 21 percent of total public 2009). recurrent spending (minus debt service); and the share of primary education spending is at least 50 percent of total public recurrent spending for education. 2. Twelve months before Phase One closing date, disbursements  Trigger has been met. represent at least 60 percent of total APG 1 financing. Disbursements currently stand at 93 percent (including additional financing) (October, 2011). 3. At least 75,000 previously out-of-school children aged 6-12 are  Trigger has been greatly surpassed enrolled in non public schools, financed by per student subsidy (175,000) (June, 2011). program. 4. At least 2,500 new teacher-trainees have received at least twelve  Total trainees stands at 2,400 months of pre-service teacher education (Note: Result (October, 2011). downgraded to 1,800 in restructuring). 5. Application of Grade 2 literacy competency test in at least 100  Literacy test applied in fewer schools (Note: Result downgraded to 86 in restructuring of APG schools than originally planned as 1). robust baseline needed only about 3,000 students (approximately 86 schools) (April, 2009). 6. Establishment of a student subsidy mechanism which includes  Trigger has been met (September, representation of key education stakeholders (governmental and 2007). non-governmental) and application of objective criteria for subsidy allocation, including respect for quality and accreditation standards. 7. After two years of subsidy program, completion of initial Trigger has been partially met. Initial quantitative and qualitative evaluations of impact of subsidy on evaluation completed (May, 2011). beneficiary households and schools. 11 2. Project Cost and Financing Table 3: Project Cost and IDA Financing Project Components Project Cost IDA Financing % Financing 1. Improving Access to Quality Primary 45,000,000 45,000,000 100 Education - Enhance the Tuition Waiver Program 31,000,000 31,000,000 100 - Support to Communities 7,000,000 7,000,000 100 - School Health and Nutrition 7,000,000 7,000,000 100 2. Support to Teaching and Learning 10,000,000 10,000,000 100 - Expand Pre-service Teacher Training 8,000,000 8,000,000 100 - Support to Reading Instruction and Distance 2,000,000 2,000,000 100 Education 3. Institutional Strengthening and 4,000,000 4,000,000 100 Governance - Modernization and Transformation of the 2,000,000 2,000,000 100 MENFP - Supporting Public-Private Partnerships and 2,000,000 2,000,000 100 Community Involvement 4. Project Management, Monitoring and 6,000,000 6,000,000 100 Evaluation Physical contingencies 4,500,000 4,500,000 100 Price contingencies 500,000 500,000 100 Total Project Costs 70,000,000 70,000,000 100 Interest During Implementation 0 0 0 Front End Fees 0 0 0 Total Financing Required 70,000,000 70,000,000 100 C. Lessons Learned and Reflected in the Project Design 34. Project design in fragile states needs to strike the balance between technical innovation and operational pragmatism. Reaching the most underserved populations in Haiti would require innovative approaches to surmount the obstacles to service provision, such as the difficult access, the dearth of locally available skilled human resources, and the minimal implementation capacity. Advances in information and communication technologies (ICT) provide opportunities for addressing some of these challenges. However, such innovations can result in added operational complexities, and need to be deployed sparingly. 35. Capacity constraints in the public sector need to be complemented with external support. However, this support should not crowd out systemic strengthening of national capacity. Achieving Project objectives at a national scale requires significant implementation capacity, typically exceeding the limits presented by national partners (in this case, the MENFP). Complementing the existing national capacity with external (usually private) implementation 12 mechanisms can help achieve more results more quickly. While this is an effective approach in the short-term, it might perpetuate the problems of weak capacity over the long-term if not balanced with a robust plan for building up national capacity. 36. Conditioning financial transfers on the submission of financial reports to be prepared at the school level leads to blockages in the system and significant disbursement delays. According to the original design, the financial transfers to schools (to finance the tuition waivers) under APG 1 were triggered by the receipt of financial reports justifying the expenditures at the school level. The reports were prepared by School Management Committees who, although having received some basic training, struggled to produce reports of acceptable quality for the Project. This resulted in a cumbersome back-and-forth between schools, inspectors and the financial management team of the Project, and ultimately in severe delays (in some cases more than a year) in payments. A more results-based approach whereby transfers are triggered by evidence of children enrolled and textbooks provided has proven more effective, and puts greater focus on results monitoring. 37. The sustainability of the increased supply in service provision lies in the continued financing of the salaries and the official recognition of schools by the MENFP. Community schools are not new in Haiti. Several initiatives have been tried. Those that have proved successful fostered strong community ownership over the schools, developed lasting ways to keep teacher salaries paid, and developed clear accountability structures between actors (central level, departmental, local, and community). IV. Implementation A. Institutional and Implementation Arrangements 38. The institutional and implementation arrangements for Phase 2 would be based in large part on the arrangements currently in place. The National Strategic Committee for the OPE would serve as the steering committee for this operation. The existing Project Management Team (PMT) within MENFP would be responsible for the implementation of the Project. The team is led by a Project Coordinator and consists of two units: the technical unit (reporting to MENFP’s External Financing Coordination Unit (Cellule de Pilotage)), which oversees the implementation of the activities according to the proposed components, and an Administrative Unit (reporting jointly to the Project Coordinator and the Directorate of Administrative Affairs (Direction des Affaires Administratives) (DAA). The Administrative Unit is composed of consultants and officials from the DAA. An action plan would be agreed to with the MENFP for a gradual transfer of the fiduciary responsibility exclusively to the DAA. Specifically for the Tuition Waiver Program, a nine member steering committee consisting of representatives of MENFP, MEF, non-public education providers, parents’ associations and teachers’ unions will appraise and approve eligible Student Enrollment Subprojects. 39. Each Project component and/or sub-component would be under the supervision of one Directorate at the central MENFP. Their respective Terms of Reference would be updated in the operational manual. The Directorate of Support to Private Education and Partnership (DAEPP) would be responsible for (i) sub-component 1.1 (Enhance the Tuition Waiver Program) and (ii) sub-component 1.2 (Support to Communities), in collaboration with the 13 Directorate of Fundamental Teaching (DEF) and the Directorate of Infrastructure (Direction du Génie Scolaire) (DGS). The National School Feeding Program (Programme National des Cantines Scolaires) (PNCS) would be responsible for sub-component 1.3 (School Health and Nutrition). The Professional Development Unit (Direction de la Formation Professionnelle) (DFP) would be responsible for sub-component 2.1 (Expand Pre-service Teacher Training) and the DEF would be responsible for sub-component 2.2 (Support to Reading Instruction and Distance Education). The Technical Unit (Cellule Technique) of the General Directorate would be responsible for Component 3 (Institutional Strengthening and Governance), and the Project Management Team (PMT) for Component 4 (Project Management, Monitoring and Evaluation). B. Results Monitoring and Evaluation 40. Annex 1 provides the Project’s Results Framework, and Annex 3 outlines the institutional modalities for undertaking the monitoring and evaluation activities. Annex 3 presents a description of MENFP’s capacity to implement the proposed monitoring plan, the data currently available, and the proposed evaluations to inform the MENFP’s future policy directions. C. Sustainability 41. The sustainability of the activities under the OPE is vital to the achievement of universal primary education in Haiti. In the short and medium term, the FNE represents an important opportunity for securing financing for the partnership. Still, substantial technical and financial support would need to be provided by the international community if the goal of universal free primary education is to be achieved in Haiti. In order to ensure the long-term sustainability of this goal, the selected approaches for public provision and public financing (through non-public provision) of education must be designed in a fiscally prudent way. With regards to the tuition waivers, this implies the graduation of schools from receiving the full subsidies to a more manageable level of financing, to be determined through an in-depth study and consultative process under the Project, and in-line with financing scenarios to be developed once the FNE is effective. For the support to communities, an assessment of previous and existing efforts to create community-based schools was carried out during preparation. The main finding was that, for schools that thrived in the past but were now closed or abandoned, the principal cause was an inability by those communities to sustain the salary payments of teachers. In order to overcome these challenges to the sustainability of the initiatives, the Project design would consist of the following elements: i) financing of salary payments from IDA funds on a decreasing basis and from the MENFP on an increasing basis, ii) significant community involvement from the beginning, iii) involvement of existing community-based organizations and elected officials and iv) official recognition from the MENFP. V. Key Risks and Mitigation Measures 42. The Project has identified three main risks: Technical capacity, fiduciary capacity, and governance. The technical capacity risks relate to the constraints within MENFP’s for implementing Project activities. Such capacity would be complemented as needed by contracting external consultants at the central and regional levels to carry out their functions. With regards to fiduciary capacity, specifically for those target communities located in remote areas implementing activities related to the community-based education, extensive preparatory 14 work would be done to ensure that such communities are able to manage funds according to World Bank fiduciary standards. Haiti’s weak governance is reputed to result in extensive opportunities for improper use of public funds. The systems in place both at central and community levels help mitigate against such abuse. Independent firms are hired to conduct technical audits, and information is disseminated widely in local communities to provide a counterbalance to school directors and presidents of school management committees. VI. Appraisal Summary A. Economic and Financial Analysis 43. The economic analysis compares the costs and expected economic benefits of support for non-public schools (including tuition waivers, school health and nutrition, and the accelerated teacher training program benefiting non-public schools) and support to community schools. The analysis shows a net benefit and positive return for both components. With an 8 percent discount rate, the Project has a net present value (NPV) of US$173.9 million with a rate of return of 18 percent. Two additional cases are also presented: The first posits higher unemployment reducing the employment possibilities of graduates. The second alternative case assumes that the impact of the Project is less and fewer students enroll. In all cases, the Project appears to be a good investment from an economic point of view. B. Technical 44. The proposed Project design is in-line with international good practice and is fully consistent with objectives of the Paris Declaration, embracing a programmatic approach and using country systems wherever possible. The interventions are based on proven approaches from both within Haiti and overseas. For the community-based approach, important lessons were incorporated from similar initiatives, including the World Bank-financed CDD operations in rural areas in Haiti.8 For Component 2, the FIA program has been adjusted, incorporating lessons learned from 3 years of implementation. Similarly, the Lekti Se Lavni program has shown promise in many other developing contexts. The decentralized implementation structure is in keeping with the GoH’s stated plan for rebuilding Haiti using a decentralized approach. C. Financial Management 45. Financial management arrangements for the Project would build on those existing for APG I and the experience of the PMT in managing several World Bank projects within the MENFP and would aim at strengthening sustainable fiduciary capacity within DAA through the implementation of a fiduciary action plan established by the MENFP with the help of an international consultancy. Due to the decentralized nature of the targeted communities and the challenge in consolidating financial records of transactions in these communities, the key financial management risks are that funds may not reach their intended destination and thus may not be used for their intended purposes. Another key risk is the lack of timeliness of the flow of funds to communities. Overall Project risk for financial management is categorized as “High.� To mitigate these two risks, sub-accounts would be created in each DDE, managed with support 8 e.g. Additional Financing for Community Driven Development Project PRODEP P114775, Community Development Project PRODEP P093640, Urban Community Driven Development Project PODEPUR P106699. 15 of a financial specialist, administratively reporting to the DDE and technically reporting to the PMT. This will be part of the administrative and financial reorganization of the MENFP, planned as a part of the institutional strengthening component and the PO. In addition, accounting records may not be properly maintained by the PMT, and the PMT may not be able to monitor the use of Project funds and ensure proper controls thereon. In mitigation of these risks, community mobilization teams would be equipped to provide basic training in financial management to all School Management Committees (SMCs). The PMT would produce and disseminate among SMCs a simple fiduciary guide to provide a basis for training/reference and to make sure financial management is harmonized among SMCs. Steps would be taken to ensure the availability of capacity to maintain basic financial records of transactions at the community level. For the purposes of disbursing funds to remote locations, a money transfer agency would be used under the supervision of the DDE to ensure eligibility of beneficiaries. DDE would also carry out inspections of the use of Project funds. The DAA would centralize this information. The PMT would ensure that its system of internal controls and procedures remains sufficiently robust. It would also ensure the continuing adequacy of staffing arrangements. It would prepare quarterly financial reports and have its annual financial statements audited by a firm of independent public accountants acceptable to IDA. The detailed assessment of the financial management arrangements is attached in Annex 3. The conclusion of this assessment is that subject to the implementation of the proposed financial management action plan, the financial management arrangements for the Project satisfy the World Bank’s minimum fiduciary requirements under OP/BP10.02 (Financial Management) and are adequate to provide, with reasonable assurance, accurate and timely information on the status of the Project. D. Procurement 46. Procurement for the proposed Project would be carried out in accordance with the World Bank Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants dated January 2011 and Guidelines: Selection and Employment of Consultants under IBRD Loans & IDA Credits & Grants by World Bank Borrowers dated January 2011 and the provisions stipulated in the Financing Agreement. For each contract to be financed by the Project, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the World Bank in the Procurement Plan. The Procurement Plan would be updated at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. 47. With respect to procurement capacity, the Project would make use of the capacity built up under APG 1. The PMT procurement team would be reinforced by an infrastructure specialist who would coordinate the school construction activities. The actual operational manual would be updated and recent provisions related to Fraud and Corruption would be incorporated. The procurement team in place is experienced in World Bank procedures and well equipped to execute procurement according to the World Bank Guidelines. However, the overall public procurement system in Haiti remains relatively weak, despite recent reforms in the legal and institutional framework for procurement. Consequently, the overall Project risk for procurement is categorized as “High.� 16 E. Social (including safeguards) 48. A social assessment was carried out during the preparation of the Education for All (APG 1). Among the findings were: i) elite capture by school directors, ii) conflict created by the infusion of money into schools/school management committees, iii) teachers abandoning rural areas, and iv) inequality being exacerbated between beneficiaries and non-beneficiaries. The Project addresses these through instilling a series of checks and balances at the local level, involving community participants in the management of Project resources, ensuring that Project resources intended to be managed by communities would effectively be managed by them, providing employment opportunities in rural areas for trained teachers, and having a highly targeted Project design, such that the Project benefits are enjoyed by those populations traditionally underserved by public services. 49. The Project would not support activities that result in involuntary resettlement as defined under OP/BP 4.12 (Involuntary Resettlement). However, despite population dispersion, rural density is high and scarcity of available land for school construction within community settlements may be a challenge, since land is intensively used for agricultural purposes. Communities would be trained through the Grassroots Management Training (GMT) program to, among other things, identify available and suitable public land that can be used for new school construction, or available and suitable private land that can be voluntarily donated by the community for the construction of new school. The Project’s Environmental and Social Management Framework (ESMF) includes guidance and a screening sheet to document land ownership and the voluntary nature of land donations, where relevant. F. Environment (including safeguards) 50. Since the exact location of schools would not be known before Project implementation, as per OP/BP 4.01 (Environmental Assessment), an ESMF is required to outline how sites would be selected, and how potential adverse environmental impacts at these sites would be identified, minimized, mitigated and managed. This ESMF has been prepared by the DGS based on a previous framework prepared by Economic and Social Assistance Fund (Fonds d’ Assistance Économique et Sociale) (FAES) and MENFP. The suite of potential adverse impacts would be small-scale in time and space related to construction impacts and cooking fuel during operation. The ESMF focuses on how to address construction-type impacts (what kind of training and protective gear workers would receive; how waste, noise and dust would be managed, etc.). Any sites requiring involuntary resettlement or that affect critical natural habitats, forests or physical cultural resources would be screened out by MENFP’s local offices during the approval process of community Projects. The ESMF also includes a budget for safeguard actions and a snapshot of the institutional arrangements for screening sites, developing mitigation actions, implementing these actions and supervising adherence to them. The DGS would supervise the implementation of the ESMF at each site. The ESMF was disclosed in hardcopy in Port-Au-Prince, Haiti (Ministry offices and World Bank country office) and on the World Bank’s website on August 5, 2011. 17 G. Other Safeguard Policies Triggered 51. Given the use of charbon for cooking as the regular community contribution to the school health and nutrition program, OP/BP 4.04 (Natural Habitats) has also been triggered. The Project would work to identify alternative energy sources for school cooking. The results of this work would feed into an updated version of the ESMF, which would then describe good practice for mitigating any potential adverse impacts from these new sources and manage residual impacts arising from them. 18 Annex 1: Results Framework and Monitoring HAITI: EDUCATION FOR ALL PROJECT – PHASE II Results Framework Project Development Objective (PDO): The objective of the Project is to support the Strategy for Rebuilding the Education System through the implementation of sustainable programs to improve: (a) access, particularly of under-served populations, to Primary Education; (b) quality of Primary Education; and (c) the institutional capacity in the Recipient’s education sector. Cumulative Target Values Data Description (indicator Responsibility Core Unit of Frequenc Source/ definition etc.) Baseline for Data Measure YR 1 YR 2 YR3 y Methodolog Collection y PDO LEVEL RESULTS INDICATORS Indicator One: Number 80,000 100,000 100,000 100,000 Annual Technical DAEPP with Number of children per Access: Number of [not [not [not audit by support from year that benefit from children enrolled cumulative] cumulative] cumulative] independent DPCE, the enrollment subsidy through the provision monitoring ONAPE, UEP provided using IDA of tuition waivers agency, funds EMIS Indicator Two: Percent 16 16 20 Every two Early Grade DEF will 25% increase above Quality: Percentage of years Reading contract a baseline in reading children enrolled in Assessment technical audit ability in Creole or participating schools for for a by independent French. Proposed more than one year statistically monitoring definition of Grade 3 reading at grade level in valid sample agency, with minimum fluency and Grade Three of students support from comprehension is 50 in all School words correct per Project- Management minute with 60% supported Committees comprehension in 3rd-grade and UEP Creole or 40% classrooms comprehension in French Indicator Three: Percent 0 10 50 90 Annual Financial DAEPP, with Percentage of teachers Sustainability: records of support from that are working in Percentage of Ministry of DPCE, DAA, community schools community teachers Finance UEP whose salaries are financed by the financed through Government of Haiti community grants funded internally Indicator Four: Percent 0 55 65 75 Annual Technical DAEPP, with The percentage of Capacity: Percentage of audit by support from schools in schools inspected at independent UEP, DDE, Project areas meeting 19 Cumulative Target Values Data Description (indicator Responsibility Core Unit of Frequenc Source/ definition etc.) Baseline for Data Measure YR 1 YR 2 YR3 y Methodolog Collection y least once per year by monitoring School MENFP’s minimum of the MENFP agency, Management one inspector visit per EMIS Committee year during the Project execution period INTERMEDIATE RESULTS Intermediate Result (Component One): : Improving Access to Quality Primary Education Intermediate Result Number 0 100 300 700 Annual Civil DDE, with Number of classrooms indicator One: Number engineers support from built or rehabilitated of additional classrooms attached to School using Project funds built or rehabilitated at DDEs, DGS Management which meet minimum the primary level Committee, standards for school resulting from Project UEP construction intervention Intermediate Result Number 0 25 100 200 Annual DAEPP DAA, with In order to receive indicator Two: disbursemen support from Grants, Communities Communities receiving t records DAEPP, UEP must participate in a Grants mobilization and training process supported by the Project and elect community representatives Intermediate Result Number 4 4 4 4 Annual Technical DAEPP, with Measure the number of indicator Three: audit by support from textbooks and readers, Textbooks and readers independent DPCE, UEP on average, per pupil per pupil monitoring maintained during agency, Project expansion in EMIS, Project supported Project schools implementati on reports Intermediate Result Percent 25 15 10 Annual Technical DPCE, with Ratio of individuals indicator Four: Dropout audit by support from observed attending rate reduced independent UEP, school in Year X and monitoring Inspectors, not observed in school agency School Year X+1 in all types Management of schools supported by 20 Cumulative Target Values Data Description (indicator Responsibility Core Unit of Frequenc Source/ definition etc.) Baseline for Data Measure YR 1 YR 2 YR3 y Methodolog Collection y Committee the Project in a random sample. Baseline is for primary education in the 1990s as calculated by the World Bank (2010) Intermediate Result Number 70,000 70,000 70,000 70,000 Annual Supervision PNCS, with Students attending indicator Five: Children [not [not [not reports by support from schools which participating in cumulative] cumulative] cumulative] PNCS UEP implement the health integrated and nutrition program nutrition/health program and are fed one hot meal and one snack daily 190 days per year. Intermediate Result Number 150,000 171,300 172,400 175,000 Annual Technical DPCE, with Approximate number indicator Six: Direct [not [not [not audit by support from of individuals directly Project beneficiaries, of cumulative] cumulative] cumulative] independent UEP, benefiting from the which female percent 50 50 50 50 monitoring Inspectors, Project and the agency School approximate percentage Management which are female Committee Intermediate Result (Component Two): Support to Teaching and Learning Intermediate Result Number 0 900 2,100 3,300 Annual Certification DFP, with Number of individuals indicator Seven: from DFP, support from trained through the Pre- Number of additional EMIS data UEP Service Teacher qualified primary and Training component teachers resulting from completion disaggregated by Project intervention data from gender. The teacher pre-service training program (FIA and in- in French) includes the service institution-based training training, practicum and providers certification Intermediate Result Text not printed Once Printed DAEPP Teacher’s Guide with indicator Eight: printed document daily lesson plans for at Teacher’s Guide printed least one year of by MENFP instruction printed by MENFP Intermediate Result Number 0 0% 10% 20% Annual External DFP, with Percentage increase on 21 Cumulative Target Values Data Description (indicator Responsibility Core Unit of Frequenc Source/ definition etc.) Baseline for Data Measure YR 1 YR 2 YR3 y Methodolog Collection y indicator Nine: Increase evaluation support from Knowledge, Attitudes in effective pedagogy DEF and Practices survey practice for FIA measuring effective graduates as determined pedagogic practices. by the survey Survey to be administered and analyzed by independent contractor Intermediate Result Number 0 50 300 Every two Technical DEF, with Measure the number of indicator Ten: Teachers years audit by support from teachers in Project- implementing Lekti se independent UEP supported schools Lavni monitoring implementing the Lekti agency, se Lavni approach to EMIS, literacy in Creole using Project technical observation implementati protocol disaggregated on reports by gender Intermediate Result (Component Three): Institutional Strengthening and Governance Text not completed Once Published Cellule de The MENFP completes completed reports of Pilotage and distributes a donor Intermediate Result MENFP action plan indicator Eleven: encompassing all Consolidated donor education-related action plan drafted activities (TVET, primary, secondary etc.) Intermediate Result (Component Four): Project Management, Monitoring, and Evaluation Number 0 20 60 100 Annual Quarterly DAEPP, with Trainings in basic data Intermediate Result M&E reports support from collection and analysis indicator Twelve: Data EPT, DPCE, provided to inspectors, collection and analysis CFCE, UEP, SMCs and teacher trainings training providers and community mobilizers 22 Annex 2: Detailed Project Description 1. The Project would co-finance the implementation of elements of the Government’s Operational Plan for Education (OPE). Specifically, it would increase access to quality education by lowering the costs of poor families to send their children to school, and by stimulating the supply of schooling in Haiti’s remote areas, using a community-based approach. Expanding the Government’s school health and nutrition program would also serve to increase access and attendance. The quality of instruction would be improved through support to a quality pre-service teacher training program and an expansion of effective literacy strategies. Capacity building would be an essential component to ensuring the long-term sustainability of the OPE, including strengthening local accountability of teachers and schools to parents and authorities, for example through the development and use of local tools for student assessment. The Government’s Operational Plan for Education 2. The newly endorsed OPE is the implementation plan for the Government’s National Pact on Education and Training (Pacte National sur l’Education et la Formation) (PANEF), itself the culmination of a three-year consultation process resulting in a set of recommendations submitted to President Preval in February 2011. Led by the Presidential Commission on Education and Training (Groupe de Travail sur l’Education et la Formation) (GTEF), the PANEF features 33 recommendations structured around 5 strategic themes: i) early childhood education, ii) public- private partnerships, iii) teacher training and iv) higher education v) free, obligatory education. 3. Drafted by a Task Force comprised of experts from the GTEF and the MENFP, and supported by international technical assistance financed by key donors in the education sector, including the IDB, CIDA, UNESCO, UNICEF and the World Bank, the OPE translates the broad recommendations of the GTEF into operational priorities, structured according to nine themes. Component 1: Improving Access to Quality Primary Education ($45 million) 4. This component consists of the following: - Improving the quality of the Tuition Waiver Program through, inter alia: (a) the establishment and strengthening of School Management Committees; and (b) the provision of Student Enrollment Grants for the carrying out of Student Enrollment Subprojects by School Management Committees; - Improving basic educational services in Selected Rural Communities through, inter alia: (a) the construction and rehabilitation of school buildings; (b) the financing of community based teacher salaries; (c) the acquisition of school supplies, materials equipments and operating costs; and (d) the provision of training in school management to Selected Community Representatives; - Strengthening the Recipient’s School Health and Nutrition Program through, inter alia, the provision of: (a) daily morning snacks and hot meals in schools to be selected in accordance with criteria acceptable to the Association; (b) deworming medication and micro-nutrients to participating schools twice a year. 23 1.1 Enhance the Tuition Waiver Program (US$31 million) 5. This sub-component would enhance the Government’s current tuition waiver program. In its current form, the program lowers the cost of schooling for participating families by waiving the tuition in select non-public schools (See Box 1: Lessons Learned from APG Phase 1). The next phase would focus more sharply on providing quality inputs to participating schools to improve student learning gains. 6. Selection of schools: In order to qualify for the program, schools must be registered with the state as legal, non-public providers of education. Requirements for participation include providing all participating students with textbooks, having a functioning School Management Committee (SMC), and respecting the procedures as established in the operational manual, including the positive list of eligible expenditures. A long-list of qualifying schools is assembled by the Departmental Education Offices (Direction Départemental d’Education – DDEs), and submitted to the Tuition Waiver Steering Committee (Comité Paritaire) that validates the list. Upon validation, participating schools are selected at random, with the total number of schools to be selected being a function of the available financing for the program. 7. Selection of students: All students entering grade one for the first time that are between the ages of 6-8 are eligible for support under the program. Once in the program, the participating cohort and future cohorts entering grade 1 would be eligible for support if program requirements described above are met. 8. Management of transfers: The School Management Committees of participating schools open Bank accounts in a local commercial Bank (Banque Nationale de Credit), to which funds are transferred from the MENFP’s DAA at the beginning of the school year. The first transfer represents an advance of 60 percent of the total annual subsidy. Funds are managed by the President of the SMC and the school director, both of whom must sign on the checking account of the SMC. Payments are made according to a positive list of 10 expenditure categories. 9. Strengthening the SMCs: As per under APG 1, specific activities would be undertaken to strengthen the capacities of SMCs in the areas of school management, and financial management. Training would be provided around a simple FM training manual. This would be undertaken by NGOs, as is currently the case under the existing operation. 10. Monitoring: All schools are subject to inspection by the MENFP’s inspectorate. School Management Committees must submit financial reports to inspectors, which are then transferred to the DDEs for validation. Contrary to the original program design, financial reports are no longer transferred to the DAA, and do not trigger payments of the second tranche. Rather, a third party verification firm is contracted to conduct a technical audit of 100 percent of participating schools. The audit assesses compliance with program regulations as outlined in the operational manual, and verifies the number of participating children. The technical audit report then confirms the number of beneficiary children, and the payment of the second tranche to the school is authorized. 24 11. Proposed improvements: Among the proposed innovations and improvements of the program under APG 2 is a continued evolution toward a results-based model, the introduction of greater accountability of participating schools, and the strengthening of sanctions for non- compliance. In addition to conditioning payments on the findings of the technical audit (see above), schools performing well according to certain standards might be eligible for top-ups. To enhance the quality of instruction at the school level, a bonus would be paid to participating schools that employ graduates from the accelerated teacher training program (FIA). In addition, the role of SMCs would be heightened in order to improve the transparency of the program and foster greater accountability of teachers and school directors to parents for student learning outcomes through instruments such as a school scorecard. Local authorities would also be expected to play a greater supervisory role in the program. Finally, as per the lessons learned under Phase 1, sanctions for non-compliance need to be better defined and used more widely (See Box 1: Lessons Learned from APG Phase 1). 12. Sustainability: As the tuition waiver program is expanded, the likelihood that the Government of Haiti could absorb the overall fiscal burden is diminished. A medium to long- term transition strategy is currently being finalized. This includes a mix of mobilizing increased public resources for the eventual transfer of the program to the Government, as well as a number of measures that would render the program more affordable. This could include: i) a lowering of the per student subsidy (from the current level of US$90), ii) introducing a cap on how much each school can receive, either per year or cumulatively, iii) clearly defining a graduation from the program for participating schools, such as capping participation at six years, once the initial cohort has graduated. This will be part of ongoing discussions between the MENFP, the MEF and the World Bank. 1.2 Support to Communities (US$7 million) 13. Objective: This sub-component would use a community-empowerment approach to mobilize and manage resources to address major gaps in basic-education service provision such as teacher provision and school construction. This model improves on existing community- based education activities in Haiti which generally do not involve the MENFP. The proposed model supports the community to deliver services under the supervision and with the support of MENFP and local government, using FIA Project trainees where possible with additional support. This component would channel grants and training to communities targeted by the Project to provide basic educational services to school-age children. The grants would be provided in two streams, one for teacher salary payments – which are a recurrent cost by nature - - and one for school construction and supplies, which are investments. Established financial mechanisms would be used in communities where the Bank supported PRODEP Project is active. The proposed Project places an emphasis on community ownership on decision-making processes with the support and oversight of the MENFP, which would develop guidelines and safeguards acceptable by the World Bank, and would invest in training for community members in order to fulfill their roles. Implementation of this sub-component would follow a multi-step project cycle: 14. Step One: All communities in the zone of intervention would be informed of the Project’s objectives, the opportunity to access Project grants to manage a community-school and build a 25 minimum package of facilities, the eligibility criteria, the procedure for application, appraisal and approval, and the obligations of targeted communities to manage recurrent and investment funds and reporting. The MENFP would be supported to prepare and disseminate a simple illustrated Community Guide in Creole describing the Project steps to communities. BOX 1: Lessons Learned from APG Phase 1 Programmatic Reports for 2007-2010 and Early Grade Reading Assessment 2010  Payments to Schools were delayed and had negative impacts on textbook purchases, infrastructure improvements and other Project-mandated changes. The Project was restructured in mid-2010 and changes made to regularize payments.  Accreditation was in place for a majority of schools, though approximately ten percent of participating schools lack accreditation.  Textbook provision average was four per student, one above the Project mandated minimum but a small number of schools provided no textbooks at all.  Teacher qualification requirements were met by less than 15Percent of teachers for all years, and increases in teacher salaries were generally not provided.  Class size and student enrollment targets were generally met, though the average values mask some significant variations in actual class size and enrollment levels.  School councils were found to present in almost all schools surveyed, though some of them exist in name only.  Financial documentation has proven difficult to provide for a large number of schools. Direct inspection replaced financial reporting as a trigger for disbursement under the 2010 Project restructuring. Basic financial information should nevertheless be produced by schools.  Supervision and support has been provided by MENFP and multiple NGOs, though some schools did not receive any visits from Ministry employees and many beneficiaries request additional quality training in financial matters. Additional support to MENFP and its regional units is provided under the restructured Project.  Student learning as measured by literacy levels in Creole and French were exceedingly low. While the sample was not representative of the Project as a whole, it is believed that student learning levels remain low throughout the participating schools.  Information management has room for improvement, particularly in determining the number of children enrolled in participating schools. An independent audit agency to monitor enrollment was in place as a part of the restructuring.  Recommendations include additional technical support to schools which fail to meet targets and maintain accurate records while removing those who consistently fail from the program. The restructured Project calls for MENFP to define appropriate sanctions. Financial management needs to be improved in schools and school councils, and financial flows regularized on the part of the subsidy, outcomes expected under the restructuring. 26 15. Step Two: Following information dissemination, the second step is the selection of communities, according to a demand-driven process conducted by the DDE (Directions Départementales de l’éducation) on the basis of the following eligibility and priority criteria: a) Eligibility criteria. Rural communities can be parsed into categories using the following criteria: i) level of access to basic education services, ii) size of school-age population and iii) level of social capital within the community. Eligibility criteria to benefit from the Project would be:  Demonstrated dearth of schooling: Communities with a public school or other educational institution offering continuous primary education up to 6th grade exit exams have achieved minimum access and therefore are not eligible. Communities with no educational services or incomplete primary education services – i.e. insufficiently developed to include 6th grade exams - would be considered for Project support to develop a community-based school.  Minimum school age population: Rural communities with at least 25 children of primary- school age would be eligible. Exclusion of communities with smaller number of school-age children is for cost-effectiveness considerations related to teacher training and salary cost. The “cluster model� of support defined in the SNAEPT will be applied until such time as the school is fully established.  Minimum level of community organization/social capital: Community-based organizations are a proxy for social capital. The existence of CBO(s) is considered as an indication of the potential level of community mobilization, a minimum of one existing CBO is required. b) Priority criteria. It is expected that the combination of these criteria would eventually yield to a greater number of eligible communities than the number that the Project can support under this sub-component. Community requests would be ranked by the DDEs in a priority order on the basis of weights attributed to the eligibly criteria as detailed in the Project Implementation Plan and disclosed in the Community Guide. 16. Step Three: Community capacity building. a) Training communities: Training of community members in selected communities would be provided through six training modules to enable them to establish, build and run a school. Several training models exist in the Haitian context, including those of the DAEPP (MENFP) and PRODEP using some elements of the Grassroots Management Training (GMT) approach. A GMT program would be provided to communities in six modules: (i) community organization, (ii) project preparation; (iii) community procurement; (iv)financial management by communities; (v) participatory M&E; and (vi) school management and maintenance of facilities. Training delivery to communities would be supervised by the MENFP and done by GMT consultants financed by the Project, who would also train members of the DAEPP, the DDE and Inspectors to build skills. Local government, particularly Commune Councils (Conseil d’administration de la section communale) (CASECs), along with existing CBOs would be involved in the process in order to provide continuing support to the community beyond the life of the Project. If this approach proves inadequate, NGOs with relevant experience and expertise would be contracted to provide supplemental support. 27 b) Formation of SMCs who would have the responsibility of representing the community’s interests in managing the school. The GMT program would begin with community-wide training in organization and decision-making, which would result in the selection of School Management Committee (SMC) members. This phase would include the creation of the School Management Committee (SMC) to manage the community project and the democratic selection of its members. The head of the SMC would be responsible to sign the Financial Agreement with the MENFP. Respect for the roles and composition of the SMC over time would be assured by the Inspectors and local government actors as well as existing CBOs. As the official articulation between the school and the community, the SMC would be responsible for following up and responding to low scores on report cards and other measurements of student learning outcomes (see section 3.3), as well as publicly recognizing teacher achievement to help motivate high performing instructors. c) Formation of sub-committees: Two ad-hoc subcommittees would be created, one to carry out the day-to-day implementation of the construction project including the procurement process (the Project Implementation Committee, PIC) the second one to disseminate Project information to the community at large (the Communication Transparency Committee, CTC). All members of the SMC, PIC and CTC would receive relevant training modules in the GMT program outlined above. District-level education bureau, local representatives and especially inspectors would participate in the GMT process. Inspectors and the SAEPP would be supported to take a leadership role in the community training process. Figure 1: Community based management structures levels of organization School Management  Committee Project Implementation  Committee and  Communication  Transparency  Committee entire school  community, including  Inspectors, CBOs and  local government  figures  17. Financing Agreement for Grant support to the school: The subsequent activity would consist in signing a Financing Agreement (FA) between the SMC representing the community and the MENFP. The FA would explicitly identify the respective obligations between the MENFP and the community regarding the school-based management of the funds granted to the 28 community by the MENFP to support the community-managed school. It would be the contractual document allowing the grant disbursement to SMCs for teacher salary payments, purchase of essential learning materials, school construction and equipment. In order to manage MENFP financial support, SMCs would open two distinct bank accounts to receive the investment and recurrent components of the Grant, respectively. 18. Implementation of the FA by communities: The FA includes, on a contractual basis, all the package of funds granted by the MENFP and related recurrent and investment activities that would be carried out by the community with these funds. The disbursement schedule would seek to strike a balance between guarding against risk by regularly transferring small amounts and recognizing the limits of Ministry capacity to manage large numbers of financial transactions for each community. a) Teacher recruitment by community. Communities would hire teachers on the basis of selection method, criteria and standard local contracts defined in the Project Implementation Manual and the Guide, on the basis of local contracts. Teacher-candidates must meet minimum thresholds for educational attainment and in reading and math abilities as established by the FIA Project. Rural communities often have small numbers of relatively well-educated individuals in residence, with additional members working in nearby urban centers. Community assessments during the preparation phase indicate a strong willingness on the part of these individuals to return to their home communities if employment is available. Once local teachers are selected, (sub-component 2.1, below), grant funding would be provided to SMCs in order to pay teacher salaries and teacher education grants for FIA institution-based instruction. b) Instructional materials. To take advantage of economies of scale and ensure high levels of quality, books and other materials would be procured centrally and distributed to the communities. The minimum number of textbooks per student is three. This figure is for textbooks and does not include reading materials for each grade to support literacy acquisition and development which would be provided to each school through the Lekti se Lavni literacy framework. c) School construction by community: The school construction activity would be carried out by communities through their SMC and the PIC. To manage these activities, communities would procure and manage contracts for: (i) works, (ii) furniture and (iii) services for technical site supervision. Works and furniture would follow MENFP’s planning, architectural and technical norms. The minimum package of facilities would include construction or rehabilitation of 2 classrooms with separate latrines for boys and girls and a water-access point up to US$20,000. Larger grants for construction of three or more classrooms would be made available if justified by the numbers of local school age children. Technical site supervision would be provided by a private sector technician competitively selected by communities on the basis of a roster of competencies created and updated by the MENFP. Simplified standard documents adapted by the MENFP from similar documents developed by other CDD projects such as PRODEP would be used by communities wherever possible. 19. Supervision: The implementation of FAs by communities would be supervised by the DDE which would present physical and financial reports to the central office of DAEPP and the DAA in the MENFP. The civil-engineer attached to the DDE would monitor the quality of the 29 constructions managed by communities, and report to the DDE. The overall supervision of the technical quality of constructions would be the responsibility of the DGS. The construction program would be subject of annual technical audits carried out by independent technical auditors. 20. Financing and sustainability: Funds channeled by MENFP to communities through FAs for investment activities would be supported by IDA an eventually other donors. Funds channeled to support the recurrent cost of locally hired teachers’ salaries would be co-supported by IDA on a decreasing proportion, from 90 percent in year 1 to 10 percent in year 3, while the Government would gradually take the difference from the domestic budget. Table 4: Component 1 Training: Audience, Content, Duration and Provider Audience Content Duration Provider Target community Project description, Three meetings on GMT consultants with democratic processes for three separate days 2+ Community SMC selection hours each mobilization team (DDE consultants, inspectors) School Management Financial management, One week initial GMT consultants with Committee procurement, monitoring, training, regular Community dispute resolution, follow up trainings mobilization team (DDE transparency etc. consultants, inspectors) Project Procurement (detailed) Four days GMT consultants with Management- DDE consultants, Committee supported by World Bank FM team Communication Community information One day with periodic Community Transparency transparency, anti- follow-up mobilization team (DDE Committee corruption consultants, inspectors) Sub-Component 1.3: School Health and Nutrition (US$7 million) 21. This sub-component would expand the Government’s school health and nutrition program. Implemented by the National School Feeding Program (Programme National des Cantines Scolaires) (PNCS), the program is delivered by non-governmental organizations (NGOs) subcontracted by the MENFP through the PNCS. International and national evidence have demonstrated the value of such programs.9 In Haiti, the program serves both the objective of increasing access, through providing an added incentive for families to enroll and send their children to school every day, and quality, as otherwise hungry and unhealthy children have difficulty concentrating in the classroom. 22. Selection of NGOs: Using Bank procurement procedures, NGOs (or firms) are contracting according to a national bidding process. Recruitment is done according to pre- identified target areas of the country, at the local level (section communales). Working in close 9 For a complete review of international evidence, including experiences in Haiti, see Bundy, D. (2009). Rethinking School Feeding: Social Safety Nets. Child Development and the Education Sector. The World Bank/World Food Programme. 30 collaboration with the MENFP and the PNCS, unit prices are established for the package of services to be delivered. Proposals are therefore only judged on the quality of their submissions. 23. Package of services delivered: As per the contracts, the NGOs deliver both morning snacks and a hot meal daily to participating schools. The program also contains a de-worming component, with the distribution of albendazole to all schools twice a year. Service providers are meant to deliver approximately 1,500 kilocalories per day per child, or an estimated 75 percent of the daily kilocalories needed per child. Component 2: Support to Teaching and Learning (US$10 million) 24. This component consists of the following: - Expanding the number of certified teachers, including preschool teachers, through the carrying out of pre-service teacher training; - Improving primary school performance through, inter alia: (a) developing a teacher’s guide including lesson plans for each day of class; (b) introducing pre-school education in communities supported by the Project to be selected in accordance with criteria acceptable to the Association; and (c) developing distance education policies. 2.1 Expand Pre-service Teacher Training (US$8 million) 25. This sub-component would increase the annual output of trained teachers to approximately 1,200 per year while improving teacher competencies. Working in partnership with teacher training agencies (Instituts de Formation des Maîtres – IFMs), the program (Fomation Initiale Acceleree – FIA) would provide one year of intensive institution-based training, followed by two years of practicum training in front of classrooms. The program could also be updated to include training at the preschool level. 26. As with the Education for All Program (APG1) (Credit No. H2860-HT, P199818), block grant payments would be made to selected IFMs, in order to finance the costs of institution-based training of students-teachers and IFM supervision of their practice teaching. In addition, IFMs would receive in-kind support financed by the Project, such as textbooks and other teaching and learning materials, minor rehabilitation works, and equipment. Additional support would be tailored to the needs of individual IFMs. Professional development for teacher educators would also be financed, as would the stipends for teacher educators and student-teachers. Funding for the implementation of the teacher preparation program would be allocated to the IFMs based on the number of student-teachers to be trained. The certification of student teachers and the strengthening of teacher placement systems for the public and non-public sectors would also feature among the activities to be financed. Finally, the Project would also support capacity strengthening of the DFP and SAPs, who also support teacher preparation. 27. Recruitment of student-teachers: Recruitment campaigns would be organized at the regional level, under the management of the DDEs and IFMs, and overseen by the DFP. Recruitment strategies would include MENFP press releases, radio advertizing, print media, and the use of the website already established for accelerated teacher training program. DDEs would be responsible for: (i) participating in recruitment campaigns; (ii) managing the candidate registration process; (iii) managing candidate files; and (iv) supervising, with IFMs, the entrance 31 exam. At least 1,800 candidates would be accepted each year; the exact number to be accepted per IFM would be based on IFM capacity. As per the current design of the program selection of student-teachers is based on an entrance exam and other criteria—such as age and gender balance—developed at the national level and implemented at the decentralized level by the DDEs. A geographic distribution requirement would be added, in order to ensure students from underserved areas targeted by the community-based school component would be served. To qualify as entrants, student-teachers need to have completed at a minimum their secondary education (Bac II) and apply for the program as per the instructions published by the MENFP. Pre-selected applicants are admitted into the program after passing the basic entrance exam measuring their understanding of key topics in the basic education curriculum and an evaluation of their commitment to the teaching profession. Admitted participants receive stipends— equivalent to half of a public school teacher’s salary—during their years as trainees, and upon graduation could be absorbed into public schools and schools participating in the tuition waiver program. Those students from communities benefiting from the CBS component would receive their stipend directly from the SMCs so as to maintain community participation throughout the training process. 28. Selection of IFMs: Twelve IFMs, both public and non-public, are currently participating in the program, having been selected following a nationwide study of IFM capacity using criteria developed by the MENFP; it is expected that eight additional IFMs would be identified for entry into the program under the Project. Any non-accredited institutions which may be selected due to location and a lack of nearby accredited facilities would be required to become accredited as a pre-condition for receiving IDA funds. Performance-based contracts would be signed annually between the MENFP and the IFMs setting the terms for: the provision of training services and practice teaching support to student-teachers, strengthening of IFM training capacity, expansion of the number of spaces available in their institutions, financial and technical support and supervision to be provided by the MENFP to the institutions and minimum performance indicators for student graduates. 29. Design and revision of training curriculum: The training curriculum is based on existing teacher preparation curricula in Haiti and on current research-based methods of instruction, particularly in reading, writing and mathematics. It consists of 10 full-time months (one academic year) of institution-based training, divided into (i) three months of intensive instruction in the core topics of the basic education curriculum—French, Haitian Creole, and mathematics— followed by an exam in which only those mastering these concepts would be admitted to professional training; and (ii) seven months of professional training in child development, subject-specific and general teaching methods. More specifically, topics covered during the seven months of professional training include: (i) content and methods for core subjects of the primary curriculum (particular emphasis on Creole literacy for grades one and two, the transition to French, Creole as a subject, mathematics, social sciences and experimental sciences); (ii) lesson preparation; (iii) classroom management; (iv) the effective use of teaching and learning materials; (v) evaluation of student learning; (vi) relationships with parents and communities; (vii) professional ethics; and (viii) class/school administration. The curriculum has already been developed and modules have been elaborated and piloted under the Meeting Teacher Needs Project. However, the Project would continue to revise these materials as needed based particularly on lessons learned from the practice-based skills focus of the pre and in-service 32 training of community-based teachers. The revision would include the integration of the Lekti se Lavni literacy methodology into the curriculum. 30. Selection for practice teaching and certification: Following institution-based training, student-teachers would pass a competency-based practical exam permitting them to proceed to the two-year long practice teaching phase of the training. This phase of teacher preparation is designed to assist student-teachers in the transition from being students themselves to being full time teachers working with children. Practice teaching would be conducted in schools selected on the basis of criteria developed by the MENFP central level in collaboration with the Departmental Directorates’ offices of Pedagogic Support (Service d’Appui Pédagogique - SAP). During practice teaching, student-teachers would submit a report of their progress every three months, monitored by SAPs; they would also periodically return to IFMs for additional teaching support and skill-building. At the end of the practice teaching phase, student-teachers would be certified by the MENFP. Certification would consist of two parts: (i) scores on the nationally- developed, locally-administered exam given at the end of the ten-month institution-based training phase; and (ii) scores on nationally-developed and locally administered protocols to evaluate student teaching. 31. Student-teacher educators: Quality student-teacher educators would be recruited and selected by IFMs as necessary, to meet the minimum background and teaching experience as required by the MENFP in its contract with the IFMs. All teacher educators would receive professional development training based on the new curriculum and approaches of the program, throughout the life of the Project. Professional development activities would be designed and executed by international and national experts and/or institutions, with support from the DFP and other MENFP structures. The Project would also finance for each IFM the hiring of: (i) a full time Pedagogic Director, responsible for the pedagogic supervision of student-teacher educators and the proper application of the teacher training curriculum; and (ii) a full time Practice Teaching Director, responsible for the coordination and management of the group of practice teaching supervisors assigned to student-teachers originating from their respective IFMs. 32. Student-teacher stipends: During both institution-based training as well as practice teaching phases, student-teachers would receive a stipend equivalent to half of an untrained teacher's (recruté) salary. 33. Improved management of teacher preparation: The Project would also support the institutional strengthening of (i) the DFP, who pilots program implementation, through the provision of office equipment and rehabilitation works; and (ii) the SAPs and their inspectors, who would receive resources from the Project to carry out monitoring of practice teaching and provide support to field missions. 2.2 Support to Reading Instruction and Distance Education (US$2 million) 34. This sub-component would produce a cadre of qualified community instructors in rural areas by providing the pedagogical training needed to effectively teach children in the target communities. The core of the activities would relate to improvements in the instruction of reading to children, including reading instruction policy development, improvements to program development, and the financing of rolling out and scaling up reading instruction. Past teacher 33 training programs in Haiti have tended to increase human capital without regard to the degree of personal connectivity to the community in which educational services were to be provided. This has led to a high degree of teacher exit to urban areas following training, an outcome this component would mitigate by focusing inputs on community members. 35. Integration with FIA (financed under sub-component 2.1): Communities without access to primary education would be identified and referred through the community-based education component to FIA-participating teacher training schools. Community members with requisite qualifications would apply to the nearest IFM and return to the community to teach after completing their first year of institution-based training. Multiple members of each community would go through the FIA program in order to create a reserve of qualified individuals to assure instruction through at least grades one through six. All FIA teachers would be hired initially as “trainees,� and as they completed their training would be offered salaries according to the Government salary schedule. In the first year of program operation, educational services would be provided either by existing community members with degrees in education or FIA students who have completed at least one year of training and resident in the area. 36. Supplemental Training: Four weeks of supplemental training would be provided to all community-based instructors to encourage appropriate and effective instruction, namely school administration, classroom management skills, key instructional techniques, and lesson delivery using the Teacher’s Guide (see below). The supplemental teacher training would follow research showing evidence of success when teachers are taught to manage classroom time to maximize instruction, to use lesson plans that keep students engaged and are given access to training that focuses on specific instructional methods to be implemented by all instructional staff. In addition, two weeks of training in the Lekti se Lavni (reading is the future) literacy methodology would be provided. 37. Continued accompaniment of instructors: Significant levels of support would be needed for FIA graduates to become effective teachers in the community-school context. FIA students are normally placed in fully functional schools where they receive mentoring from other teachers for the two-year portion of their practical training. Since these student-teachers would be working in contexts where schools were still being developed, additional support would be provided. This additional support would include multiple monthly visits from technical specialists funded by the Project to support classroom instruction techniques developed during training in order to ensure student learning outcomes. In addition to pre-service and in-service training, a Teacher’s Guide would be developed with lesson plans for each day of class. While the Guide represents a significant investment of resources, it is considered a central element for quality instruction. Teachers would be further supported with distance learning modules both as a model of effective pedagogy enhancing student learning as well as a resource for in-service training. 38. Focus on literacy acquisition: The proposed teaching methodologies would include Lekti se Lavni, a reading instruction approach aimed at children in early grades already in use by MENFP. Lekti se Lavni has been developed and tested in a variety of countries under different names (e.g. Systematic Method for Reading Success in Africa), and has proven effective. Lekti se Lavni has been used in different contexts in Haiti, with reported strong impacts on teacher 34 practice and student learning. Save the Children has worked closely with the MENFP to develop Lekti se Lavni, and the DFP has established a cadre of trainers and identified quality reading materials for students, something of vital importance in the text-poor environments of rural Haiti. MENFP would like to see these resources used as a part of Project implementation. The methodology includes a highly structured approach to phonemic awareness, repetition of frequently appearing words on sight, listening comprehension, guided and independent reading as well as regular individual assessment. While some additional adaptation may be desirable, particularly in increasing the flexibility of the methodology, this approach is largely ready to use. Ministry trainers could train identified community-based education providers along with inspectors and Pedagogical Counsellors to implement and provide support for this proven methodology. The community schools supported by this Project could be used as models for the introduction of Lekti se Lavni by other education providers, with potentially significant dividends in terms of student learning. Further improvement of the instructional methodology would take place after at least one full year of implementation. 39. Distance education would support improved educational quality using distance education instruction. The use of interactive radio instruction (IRI) and other technologies would help establish a minimum educational service provision level that could function in remote locations in areas of low teacher capacity, promoting free access to quality instruction and support teacher training objectives. Student learning gains have been reported in Haiti for IRI, as well as for radio-instruction internationally. The Project would improve upon and modernize the IRI program using new technologies and content developed by other donors and actors in education in Haiti. 40. Introducing one year of preschool: This component would also support the downstream integration of pre-school education in the largest Project-supported community based schools. Current research demonstrates significant returns including learning gains in later years from early childhood education. Integration of pre-school instruction represents a mechanism to combat the generally very low levels of student achievement nationally. Table 5: Component 2 Training: Audience, Content, Duration and Provider/Manager Audience Content Duration Provider/Manager Pre-service Lekti se Lavni, Classroom Four weeks DEF, DDE, consultants teacher training management, key instructional attached to the DDE techniques, lesson delivery, parent/community communication, In-service Reinforce pre-service material, One or two days Pedagogic counselors, teacher training adaptation of instruction to every three weeks Pedagogic consultants individual students and contexts attached to the DDE Refresher Extension of pre-service Two two-week DEF,DDE, consultants training material, teachers as periods during attached to the DDE community leaders, completion school holidays of Lekti se Lavni cycle 35 Component 3: Institutional Strengthening and Governance (US$4 million) 41. This component consists of the following: - Building the institutional capacity of MENFP to improve service delivery and overall educational governance through, inter alia, the strengthening of: (a) the MENFP’s directorate for administrative matters, the directorate of assistance to private teaching, the directorate of basic education, the directorate of training and professional development and the directorate of school of engineering; and (b) its departmental education directorates at the departmental level; - Strengthening of public-private partnerships through, inter alia: (a) the provision of technical assistance to ONAPE to operate its administrative and technical departments; (b) the acquisition of equipment and the renting of office space to house ONAPE; and (c) the enhancement of demand side accountability by designing and implementing community scorecards and community reading assessments. 3.1 Modernization and Transformation of the MENFP (US$2 million) 42. This sub-component would continue the work begun under APG 1 of modernizing and transforming some of the MENFP’s key units at the central and decentralized levels, with new operational modalities. With regards to the fiduciary management, it is expected that the emphasis would be placed on establishing new operating procedures within the DAA, and providing intense training and accompaniment of the staff in the procurement and financial management units. The capacity for undertaking periodic and timely internal audits is also expected to be a central aspect of this sub-component. A consultancy would be financed to help the DAA (i) produce an administrative and fiduciary procedures manual for the DAA as well as a simple fiduciary guide for local communities; (ii) train DAA fiduciary staff in World Bank procedures in financial management and procurement; (iii) help the DAA dialogue with the Tomate team and set up the Tompro accounting software in order to enable the DAA to make proper use of not only the accounting module but also the budget, the DRF, the capital assets, the bank reconciliation modules and to produce IFRs directly and financial statements acceptable to the Bank; (iv) produce a financial management assessment of the education sector and a multi- year action plan for strengthening the capacity of the DAA to (a) prepare annual budget submissions to the MEF and include external funding in it; (b) prepare and monitor a sectoral Medium-Term Expenditure Framework; (c) monitor external funding at the sectoral level; (d) implement and follow-up budget execution; (e) increase decentralization (deconcentration) at DDE level of administrative and financial workflow. 43. The sub-component aims to enhance the OPE implementation by supporting the central and decentralized offices associated to the Project activities. At the central level the sub- component would support the Directorate of Administrative Affairs Office (Direction des Affaires Administratives) (DAA), the Directorate of Support to Private Education and Partnership (Direction d’Appui à l’Enseignement Privé et au Partenariat) (DAEPP), the Directorate for Basic Education (Direction de l’Enseignement Fondamental) (DEF), the Professional Development Unit (Direction de la Formation et du Perfectionnement) (DFP) and the Directorate for School Infrastructure (Direction du Génie Scolaire) (DGS), in their respective role for each Project component. With respect to the Departmental Directorates of Education (Directions Départementales de l’Education) (DDEs), this sub-component would strengthen 36 their ability (i) to provide close support to schools, teacher training centers and communities, and (ii) to supervise the implementation of OPE activities at the local/regional level. The support to the DDEs would be materialized through a project-based budget agreement between the MENFP and the regional units. Areas in which the Project would support MENFP at the central and decentralized level include transport, communications, procurement procedures, data collection, analysis and reporting. The Project would finance consultants, works, goods, services and operational costs. 3.2 Supporting Public-Private Partnerships and Community Involvement (US$2 million) 44. This sub-component would aim to further the dialogue and collaboration between the public and non-public sectors, and foster the establishment of public-private partnerships through the creation of the National Education Partnership Office (Office National de Partenariat en Education) (ONAPE). The ONAPE was signed into law in 2007, though never materialized institutionally due to political inertia. This sub-component would finance the updating of the ONAPE’s operational manual, and would finance the requisite technical assistance for the administrative and technical departments of the ONAPE to be established and rendered operational. It would also finance the necessary equipment and rental offices to house the ONAPE. 45. Under APG 1, progress was made early on toward the establishment of the ONAPE. First, the draft law was prepared, and a successful bipartisan lobby effort led to its approval by the Haitian Parliament. It subsequently became law in late 2007. Unfortunately, it remained low on the agenda for the Government, which faced a series of external shocks. Without the appointment of the Director-General, it proved impossible to move forward with the establishment of the institution. However, there is renewed interest to put this structure in place, which would take a central role in supporting public-private partnerships as a part of the incoming Government. 46. Financing the implementation of the capacity-building plan: Ministry priorities for support have already been assessed at the local level, and central-level needs are largely known from current Bank-financed activities. Areas in which the Project would support MENFP at the central and district level include transport, communications, procurement procedures and data collection. A post-earthquake study co-financed by the World Bank was conducted on the needs of District education offices (DDE Evaluation Mission Report, April 2010). These findings would form the basis of the MENFP capacity building strategy at the local level. However, the scope of the Project would involve a number of other Directorates at the central level, particularly the DAEPP and the DFP, which would play a key role in Project implementation and curriculum development. The DAEPP is already supported by a pilot program, and this support would continue and expand under the proposed Project. 47. Strengthening and activating the DDEs: The Project would finance the implementation of the capacity-building program. Specific activities include the undertaking an institutional audit to systematically identify needs of personnel as well as materials10, training of MENFP staff in the decentralized offices, provision of communication materials (such as computing 10 This process is already underway, together with other donors. 37 equipment and connections to the Internet), and transportation resources. For example, the DDE Evaluation Mission Report found that DDEs needed small petty cash in order to needed small amounts of petty cash to repair existing vehicles and pay for gas in order to enable inspector visits. The Project would therefore provide grants to the DDEs to repair and maintain these resources in order that a defined number of school visits would be conducted by the inspectors each month. This would require some increase in the ability of the DDE’s to record and report basic data. 48. Measuring student-level outcomes: Student learning is widely acknowledged to be very low in Haiti despite significant spending by families on education services. The Project would support the MENFP to develop a simple, easy-to-use tool to measure student learning across the primary grades. The tool would draw from existing instruments, e.g. those developed by Pratham (Assessment Survey Evaluation Research) to rapidly measure both math and reading achievement as an indicator of overall student learning. Tool flexibility is essential, as questions can easily become public and student achievement is likely to vary widely. The tool would be used to sample groups of randomly chosen students on a monthly basis initially in community- based schools and gradually introduced to tuition waiver schools. Depending on the context, the tool would be used by Inspectors, Pedagogic Counsellors (Conseillers Pedagogiques), consultants attached to the program and or members of the School Management Committee charged with monitoring and supporting school quality. 49. Fostering demand-side accountability and better informed parents: It is important that parents and the wider community as well as Ministry and local elected officials have accurate information of the level of services delivered. The results obtained by the student learning assessment tool would be communicated to the parents and other interested parties via report cards. This top-down (Ministry, local government) and bottom-up (parents, community members) information and monitoring approach on its own it unlikely to have strong impacts on teacher performance and student learning. When the information and monitoring is combined with training and grants provided either as a part of the tuition waiver component or the community based education component along with concrete options for collective action, greater effects on teacher performance and student learning outcomes are expected. The student- learning assessment tools would be developed in year one and tested with the report cards during year two in community-based schools and then gradually implemented in donor supported tuition waiver schools in year three and future iterations of APG. Component 4: Project Management, Monitoring and Evaluation (US$6 million) 50. This component consists of the following: - Strengthening MENFP’s monitoring and evaluation capacity through: (a) the improvement of MENFP’s monitoring and evaluations systems; (b) the carrying out of an impact evaluation of the Project; and (c) the provision of technical assistance to oversee the implementation of Project activities under Parts 1, 2 and 3 of the Project. 51. This component would support increased capacity on the part of MENFP to implement the Project. The Project would make use of the existing implementation structure under APG 1. This component would aim to further integrate the Project team into the national structures, and 38 strengthen the overall capacity for the management, monitoring and evaluation of Project and other priority activities as outlined under the OPE. 52. Coordinating implementation and generating monitoring reports: Activities to be financed include Project management costs to implement and supervise activities and strengthen the MENFP monitoring and evaluations systems, including undertaking two waves of EGRA, and a robust impact evaluation for the Tuition Waiver Program. The component would support the costs of consultancies associated with the existing Project Management Team, including the Project Coordinator, the administrative staff, and technical consultants overseeing the implementation of specific Project activities. The existing administrative staff (procurement specialist, procurement officer, financial management specialist and financial management officer) would also continue to be financed. In addition, the rent for the current location where the team is based would be supported by the Project. With respect to monitoring and evaluation, the independent verification systems for the Tuition Waiver Program would be strengthened, and the component would finance the development of basic training materials for community-based teachers to ensure the recording of essential Project data such as student attendance and enrollments by age and gender. Training for inspectors and other DDE-level employees would also be supported with an emphasis on data analysis and reporting. The component would also support studies and evaluations as well as the dissemination of information on Project objectives, activities, and results. 39 Annex 3: Implementation Arrangements 1. Project institutional and implementation arrangements 1. Overall coordination: The institutional and implementation arrangements for Phase 2 would be based in large part on the arrangements currently in place. The National Strategic Committee for the OPE would serve as the steering committee for this operation. The existing Project Management Team (PMT) within MENFP would be responsible for the implementation of the Project. The team is led by a Project Coordinator and consists of two units: the technical unit (reporting to the MENFP’s External Financing Coordination Unit (Cellule de Pilotage)), which oversees the implementation of the activities according to the proposed components, and an Administrative Unit (reporting jointly to the Project Coordinator and the Directorate of Administrative Affairs (Direction des Affaires Administratives) (DAA). The Administrative Unit is composed of consultants and officials from the DAA. An action plan would be agreed to with the MENFP for a gradual transfer of the fiduciary responsibility exclusively to the DAA. Specifically for the Tuition Waiver Program, a nine member steering committee consisting of representatives of MENFP, MEF, non-public education providers, parents’ associations and teachers’ unions will appraise and approve eligible Student Enrollment Subprojects. 2. The design for the implementation arrangements is guided by two strategic decisions: decentralization, and embedding technical assistance within the MENFP whenever possible. Instead of being embedded in the PMT, or even central units of the MENFP based in Port-au-Prince, external consultants hired to support the technical implementation would be based in the MENFP’s regional offices (DDEs) whenever possible, reporting to the MENFP’s Regional Directors. 3. The capacity constraints at the decentralized levels of the MENFP would require intense and systemic strengthening. Under APG 1, the DDEs are currently being reinforced in an effort to activate the inspectorate such that it is better able to fulfill its mandate of supervising the service provision at the school level. The Emergency School Reconstruction Project (ESRP) (Credit No. H-460-0-HT, P115261) also strives to strengthen the capacity of regional actors, through the training of regionally based engineers and architects in the education sector, and through the implementation of the National Action Plan for Safer Schools (NAPSS). 4. These efforts would be further complemented by the capacity building activities proposed under this Project. The findings of the recently completed institutional assessment would result in a time-bound, results-based action plan. These are likely to include the installation of the information technology systems to link the decentralized offices to the central ministry, equipping the regional offices with the requisite computer and transportation resources to remain in close contact with and visit schools and local offices, and training of regionally and locally based staff in the new systems developed under MENFP modernization and transformation reforms that would be carried out with parallel co-financing under the OPE. 5. With respect to the Administrative Unit, Phase 2 would make use of the capacity built up under APG 1. Whereas the teams under the Technical Unit would be decentralized wherever possible, it is proposed to maintain a strong centralized team in Port-au-Prince on all questions linked to procurement and financial management. Under Phase 2, the Project’s 40 Administrative Unit would relocate to the DAA, as part of the DAA modernization and transformation plan.11 Arrangements for Component 1: Improving Access to Quality Primary Education 1.1 Enhance the Tuition Waiver Program 6. At the central level: As per the existing implementation arrangements for the tuition waiver program, the Private Education and Partnerships Unit (Direction de l’Appui à l’Enseignement Privé et du Partenariat – DAEPP) would continue to be responsible for executing the Project, through its decentralized offices at the departmental level. However, it is expected that, under Phase 2, the ONAPE would become operational, at which time management of the tuition waiver program would be transferred to the ONAPE. The DAEPP’s main responsibilities relating to managing the tuition waiver are as follows:  Broadcast information relating to the program, including qualification rules and selection procedures;  Assemble list of qualifying schools, to be submitted to the Tuition Waiver Program steering Committee (Comité Paritaire)  Undertake random selection of schools;  Gather financial information of schools, to be communicated to PMT for payment;  Inform communities of selected schools, publish lists of schools in newspaper, outside of MENFP decentralized offices at Departmental and local levels;  Announce participating schools on the radio; and  Manage complaint systems. 7. At the departmental level: The implementation would be coordinated at the departmental level by the regional representatives of the DAEPP, known as “SAEPPs�, in close collaboration with the inspectorate. Inspectors would be responsible for assisting with the overall communication between the MENFP and the communities and schools. Among the responsibilities of the DAEPPs (and inspectors) would be:  Conduct an awareness raising workshop broadcasting the rules of the program, as per the operational manual;  Receive expressions of interest from schools to participate in the program, hereby serving as the foundation of the ‘long lists’ of qualifying schools from which participating schools would be selected;  Inform communities of selected schools, publish lists of schools in newspaper, outside of DDEs, BDSs, and BIZs;  Facilitate and participate in the training of the SMCs by NGOs;  Facilitate the access to schools for the independent verification agency undertaking the technical audit of the tuition waiver program;  Regularly visit schools, and receive the financial management reports from SMCs;  Keep on file financial management reports of SMCs and facilitate access to reports by financial auditors in coordination with the DGA; 11 Since the earthquake, due to the collapse of the MENFP, and in order to restore the Project’s operating capacity quickly, the Administrative Unit was relocated to the Project office. 41  Oversee the implementation of community scorecards. 8. At the community and school level: School Management Committees are responsible for the management of funds transferred and for ensuring compliance with program operational procedures. SMCs are typically composed of five people: two representatives of parents, two representatives of the community, and one teacher. These five vote for a President, who has signing authority over the account, together with the schools director. The SMC is responsible for:  Open the Bank account at the local branch of the National Bank of Credit (Banque National de Credit) (BNC);  Sign the agreement with the MENFP, committing to implementing the program as per the rules outlined in the operational manual;  Receive training from NGO and SAEPP/inspectors in program procedures, and basic financial management;  Undertake all expenditures relating to the subsidy program, using procedures of financial management procedures acceptable to the World Bank;  Prepare financial reports, to be submitted to the local school inspector. 1.2 Support to Communities 9. At the central level: In addition to the overall coordination described above, three actors based in Port-au-Prince play a leadership role in Project implementation. First, the Private Education and Partnerships Unit (Direction de l’Appui à l’Enseignement Privé et du Partenariat) (DAEPP) would be responsible for executing the Project through its decentralized offices at the departmental level. As such, the Director of the DAEPP has a lead role in conceptualizing the Project design and in determining the required resources and capacity building activities for the DAEPP, especially as relates to Component 1. The DAEPP has a particular focus on implementing activities relating to community mobilization and organization and in designing the partnership arrangements with the communities. The DEF would collaborate on all issues related to pedagogy and quality of instruction in schools. The DGS would play a supervisory role with respect to quality assurance of small works. 10. At the departmental level: The implementation would be coordinated at the departmental level by the departmental directors for education. Implementation would be the responsibility of the regional representatives of the DAEPP, known as “SAEPPs�. Inspectors, also based in the departmental offices, would be responsible for assisting with the training of communities, and would continue to play a supervisory role of SMCs. They would be in close contact with the School Management Committees so as to flag any potential problems early on, and would be the point of contact for receiving the periodic reports from the SMCs. 42 Figure 2: General Implementation Arrangements – APG 2 NATIONAL EDUCATION AND VOCATIONAL TRAINING MINISTRY DIRECTOR GENERAL PROJECT CELLULE DE ADVISORY PILOTAGE COMMITTEE Project Director Financial DAA TECHNICAL ADMINISTRATIVE Management UNIT EFA SUPPORT FOR Project FIA Project FOR EFA Coordinator Project Procurement - Deputy EFA PROJECT Coordinator PROJECT (PMT) Governance Monitoring Accounting Procurement Subsidy Coordinator Coordinator Office Office Steering Committee Implementing departments/agencies. DEF, PNCS, DAEPP, ONAPE, etc. School Feeding Steering Access Quality Coordinator Coordinator NGOs Committee (DAEPP) (DEF) Formal Reporting line Non-public stakeholders (MECs, schools, parents and - Communication associations, school management committees) line 11. At the community level: Project implementation is expected to be carried out according to the following structures to be created/strengthened in participating communities. First, a School Management Committee (SMC) would be assembled, to oversee all school-related activities, and represent the community in all Project-related initiatives. The primary responsibilities of the SMC under this sub-component would be to:  Select three community members to participate in the pedagogic training to become a community instructor;  Select the community instructor and pay his/her salary on a regular basis (monthly);  Appoint community representatives to serve on a School Construction Oversight Committee; 43  Ensure that the necessary communication and information campaigns have been carried out such that the main stakeholders in and around the communities are appropriately informed in a timely manner of Project-related activities. 12. Second, a School Construction Oversight Committee would be appointed in order to i) design construction-related activities, ii) contract the necessary workers to carry out the construction activities, and iii) supervise the completion of activities. Figure 3: Arrangements for Sub-component 1.2 Support to Communities National/Central Level MENFP MENFP PMT DAEPP DFP DEF RADIO EDUC DEF Departmental Community Mobilisation  Pedagogic (SAEPP) Training (SAP) $ Departmental Directors (DDE) Inspectors Munic. Educ School Mgmt EFA�CAP  Commission Committee (SMC) CP CASEC Const. Comm. School Community 1.3 School Health and Nutrition 13. At the central level: The overall strategic directions for the Government’s School Health and Nutrition program are provided by the National School Feeding Steering Committee (NSFSC).12 Implementation is the responsibility of the PNCS. Responsibilities include:  Determine the package of services to be delivered, including establishing a unit price for the agreed upon services, to be validated by the NSFSC;  Recruit the NGOs to serve as service providers, together with the PMT, and according to World Bank procedures; 12 The NSFSC is comprised of representatives of the National School Feeding Program (NSFP), the Ministries and Education and Health, the WFP, UNICEF, USAID, Fonds d’ Assistance Economique et Sociale (FAES), Pan- American Development Fund (PADF), Centre National d’Information Geo-Spatiale (CNIGS), and NGOs involved in school feeding. 44  Coordinate with the WFP and UNICEF with regards to the provision of albendazole for the de-worming activities;  Supervise the NGOs selected for the delivery of services;  Evaluate the performance of NGOs. 14. Role of NGOs: The execution of the activities under the School Health and Nutrition program are carried out by selected non-governmental organizations. NGOs enter into contracts with the PNCS, stipulating the package of services to be delivered, the agreed upon unit prices, and the geographic region to be served. Responsibilities include:  Provide daily services to schools, as per the terms of the contract;  Carry out all procurement and financial management, in accordance with contractual agreements and as detailed in the Project’s operational manual;  Maintain accurate records of service delivery;  Provide performance reports every six months;  Facilitate supervision visits of the PNCS. Arrangements for Component 2: Support to Teaching and Learning 2.1 Expand Pre-service Teacher Training 15. At the central level: The overall coordination of implementation of the FIA is under the responsibility of the Training and Professional Development Unit (Direction de la Formation et du Perfectionnement) (DFP), with close support provided by the PMT. Within the DFP, the Director is the focal point, and for the PMT, the FIA coordinator is the main actor, supported by four technical assistants (TAs). The DFP is responsible for the following activities:  Broadcast information relating to the teacher training program, including key dates, qualification rules and selection procedures;  Broadcast lists of candidates admitted at each phase of the programs, as well as student- teacher grades on official program exams, and handle all other official Project communications;  Validate curricular modules;  Ensure timely payment of stipends to student-teachers in training;  Supervise IFM compliance with contract terms and follow up to ensure strong performance of participants;  Organize training workshops and supervision missions in collaboration with the PMT  Select, in collaboration with DDEs and the IFMs, the schools to receive student-teachers for practice teaching. 16. As described above, the sub-division of the PMT working on the teacher training Project is composed of the FIA coordinator and four TAs responsible for implementation of specific, key aspects of the program. These assistants include a TA for the organization and supervision of practice teaching activities; a TA for curriculum and pedagogic development; a TA for the organization and operation of IFMs; and a TA for the Project’s management information system. Each TA is paired with a DFP civil servant, and in addition to his implementation duties, is tasked with transferring technical and management knowledge to his DFP counterpart to ensure the future sustainability of the program under the eventual sole leadership of the DFP. The 45 relationship between the DFP and the PMT is displayed in the diagram below. The PMT supports the DFP through undertaking the following activities: i. Provide technical inputs and recommendations to the DFP concerning all aspects of implementation; ii. Organize Project activities in order to keep to the established Project calendar; iii. Make regular field visits to IFMs and DDEs to identify bottlenecks and ensure adequate communication among all FIA actors; iv. Carry out all procurement and financial management, in accordance with contractual agreements and as detailed in the Project’s operational manual; v. The FIA coordinator manages the activities of the TAs, ensures coherence of Project activities, and is the primary communication focal point with the DFP concerning FIA; vi. The TA for the organization and supervision of practice teaching activities ensures adequate understanding among all actors and the correct application of the established procedures with respect to the practicum; vii. The TA for curriculum and pedagogic development supports curricular aspects of Project implementation, and in particular the development of teaching modules, generally ensuring compliance with standards of quality with respect to the training provided; viii. The TA for the organization and operation of IFMs ensures that IFMs function properly and have or receive the means and resources necessary to effectively carry out FIA activities; ix. The TA for the Project’s management information system develops the FIA information system and archives, including detailed information and statistics on FIA student-teachers, teacher educators and IFMs, and maintains the FIA website. Figure 4: Key FIA Actors – Central Level Deputy Director, DFP /  Focal Point for FIA,  MENFP Coordinator, PMT FIA Coordinator, PMT TA for the Organization &  TA for the FIA  TA for Curriculum &  TA for the Organization /  Supervision of Practice  Management  Pedagogic Development Operation of IFMs Teaching Information System 46 17. At the departmental level: Implementation at the departmental level is undertaken by the DDEs, SAPs, and their supporting staff, including in particular school inspectors, of whom many are hired as supervisors for the student-teachers in practice teaching. The main activities carried out by this unit are the following:  Supervise entrance exams and other program exams;  Select, in collaboration with IFMs and the DFP, the schools to receive student-teachers for practice teaching;  Ensure adequate support by supervisors to student-teachers in practicum;  Collect and make available in a timely manner student-teacher practicum reports. 18. Role of IFMs: IFMs (‘Teacher Training Institutes’ or Instituts de Formation des Maîtres) are responsible for providing training services and a quality learning environment to student-teachers, and effectively managing block grants according to criteria established in the Project operational manual and in the contract with the MENFP. IFM responsibilities are as follows:  Sign the contract with the MENFP, committing to implementing the program as per the rules outlined in the contract and operational manual;  Submit quarterly financial reports to the PMT;  Submit quarterly pedagogic reports to the appropriate DDE;  Ensure student-teacher adherence to student code of conduct while in training;  Participate in supervision of practicum as outlined in the contract with the MENFP;  Validate quarterly reports to be submitted by practicum supervisors;  Select, in collaboration with DDEs and the DFP, the schools to receive student-teachers for practice teaching;  Submit to PMT and the DFP practicum reports as required. 2.2 Support to Reading Instruction and Distance Education 19. At the central level: The Basic Education Unit (Direction de l’Enseignement Fondamental) (DEF) is the authority for pedagogical instruction at the basic level. In this capacity, the DEF is responsible for preparing the pedagogical inputs for the community based schools. For the Project, this implies leadership on the design and implementation of the teacher education components. This would include both pre-service and in-service training for teachers to implement the Lekti se Lavni literacy instruction package and distance education activities. The DFP also has a role to play in ensuring linkages between the accelerated teacher training program and training of community instructors, and with schools supported under the tuition waiver program. Other technical departments such as the office of the Deputy Director General (Directeur Générale Adjointe) (DGA) would contribute to strategic and planning activities to ensure involvement of the Inspectors and Pedagogic Advisors (Conseillers Pédagogiques) in assuring continuous support to the community-based teachers. 20. At the departmental level: As a result of their proximity the focal point within the DDEs for the support to community instructors would be the Inspectors. The Inspectors would be responsible for mobilizing other elements of support within the DDE, including professional development services and support by the Pedagogic Support Service (Service d’Appui 47 Pédagogique) and Pedagogic Advisors (Conseillers Pédagogiques). Inspectors would also ensure connectivity between the schools and the SAEPP (Service D’Appui Éducationnel Privé et Partenariat) for institutional recognition, as well as local elected officials. 21. At the community and school level: The community by definition is the primary support to the students, teachers and the school. The School Management Committee (composed of community members) along with parents and general community members would manage the hiring and firing of teachers, ensure student attendance and teacher involvement. This oversight would be supplemented by the involvement of local elected officials at the municipal and particularly commune level, the Commune Councils (Conseil d’administration de la section communale) (CASECs). The role of the SMC and of parents in particular would be strengthened through the adaptation of learning assessment tools for use by parents to monitor the quality of education service delivery. 22. The Distance Education component would bring together existing resources from previous successful initiatives at the central level involving local NGOs, Radio Educative and the Basic Education Unit, among others. The primary focus would be on adapting materials already developed to support student learning outcomes in areas such as math and French. These materials would likely be disseminated through radios with hand-cranks and solar panels to ensure power supply and memory chips so that several months’ worth of lessons could be downloaded and stored for classroom use. Distance delivery of in-service teacher education components would also be explored. Distance education at the school would be supported by the DDEs, specifically the Inspectors. Arrangements for Component 3: Institutional Strengthening and Governance 23. At the central level: The focal point for the overall institutional strengthening and governance reforms throughout the education sector is the Technical Unit (Cellule Technique) of the General Directorate (DG). The primary responsibility of the External Financing Coordination Unit (Cellule de Pilotage) is to oversee the drafting and endorsement of the institutional strengthening action plan of the OPE. Implementation of activities is then done by the PMT’s coordination for institutional strengthening, in close coordination with the DG and the DGA. With regards to activities at the central level, such as those targeted to the DAA and the ONAPE, the DG would play a central role in facilitating access and authorizing the activities. The DGA is the gateway to institutional strengthening activities of the DDEs. 24. At the departmental level: As per the Project description, it is expected that the departmental levels would be the main beneficiaries of the institutional strengthening activities. Arrangements for Component 4: Project Monitoring, Management and Evaluation 25. At the central level: As described above, the PMT would be the main entity responsible for executing this component. It is expected that the PMT would work in close coordination with the relevant units within the MENFP, particularly the External Financing Coordination Unit, to which the PMT reports, and the planning offices of the MENFP. 48 Other Actors and Stakeholders: 26. Teachers Unions, representatives from private schools, School Management Committees, local NGOs, parent and student associations, and community-based organizations are critical to the successful implementation of this Project. Their key functions would include the identification of potential beneficiaries, organization of social assessments and/or conducting consultations at the community level to gain sub-Projects acceptance, prioritizing, planning, proposing activities for financial support, and monitoring of these activities. These actors play a pivotal role in the eventual establishment of the ONAPE. Finally, the non-public sector is represented on the steering committees for the Tuition Waiver Program. i. Financial Management, Disbursements and Procurement a. Financial Management 27. Institutional Arrangements. The Project Steering Committee would in general have responsibility for the overall strategic direction, including financial management aspects, of the Project. Within the MENFP, the administrative unit of the Directorate of Administrative Affairs (Direction des Affaires Administratives- DAA) would have the primary responsibility for maintaining adequate financial management arrangements for the Project. Such arrangements include those related to budgeting, accounting, funds flow, internal controls, financial reporting and auditing. The administrative unit of the DAA would thus record all Project transactions and prepare financial reports and have the annual financial statements audited. The National Strategic Committee would be responsible for ensuring that the DAA address all issues identified in the audit of the financial statements. In addition, various other entities would play a role, albeit limited, in maintaining records of Project transactions, and submitting a summary of such records to the DAA on a regular basis. These would include School Management Committees (SMC) for the implementation of the Tuition Waiver Program and support to the communities, and the beneficiary NGOs for the implementation of the School Health and Nutrition Program. SMC and beneficiary NGOs should maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the subprojects; and at the Association’s or the Recipient’s request to have such financial statements audited by independent auditors acceptable to the Association. 28. Key risks and mitigating measures. The key risks that affect financial management of the Project emanate from the decentralized nature of the targeted communities that are dispersed across the country, the need to disburse funds to these communities in order to implement the Project activities and achieve its objectives and the challenge in consolidated financial records of transactions in these communities. The key risks are therefore that funds may not reach their intended destination and thus may not be used for their intended purposes, that financial flows may be delayed, that accounting records may not be properly maintained by the DAA, and that the DAA may not be able to monitor the use of Project funds and ensure proper controls thereon. 29. In mitigation of these, and in view of increasing sustainable fiduciary capacity within the DAA, an international consultancy should help the DAA (i) produce a manual of administrative and fiduciary procedures (which could or could not be included in the Project operational 49 manual) as well as a simple fiduciary guide for local communities; (ii) train DAA fiduciary staff in World Bank procedures in financial management and procurement; (iii) help the DAA dialogue with Tomate team and set up the Tompro accounting software in order to enable the DAA to use properly not only the accounting module but also the budget, the DRF, the capital assets, the World Bank reconciliation modules and to produce directly IFRs and financial statements acceptable to the World Bank; (iv) produce a financial management assessment of the Education sector and a multi-year action plan for strengthening capacity of the DAA to (a) prepare annual budget submissions to the MEF and include external funding in it; (b) prepare and monitor a sector MTEF; (c) monitor external funding at the sector level and build a bridging table between charts of accounts of Projects and the chart of central government; (d) Implement and follow-up budget execution; (e) increase decentralization (deconcentration) at DDE level of administrative and financial workflow. 30. The PMT has a reasonable amount of experience in the implementation of World Bank financed Projects on which the DAA would build. Community mobilization teams would be equipped to provide basic training in financial management to all SMC. The DAA would produce and disseminate among SMC a very simple fiduciary guide (1-4 pages) to provide a basis for training/reference and to make sure financial management is harmonized among SMC. This is intended to ensure that basic financial records of transactions are maintained. Mobilization teams would also have access to computerized systems that would be used to track Project related expenditures facilitate the task of the DAA in consolidating financial records. For the purposes of disbursing funds to remote locations, a money transfer agency would be used. The DDE, and in particular the representative of the DAA, would be responsible for carrying inspections of the use of Project funds in their constituencies. These risks and mitigation measures are included in the ORAF. 31. Staffing and Training. The PMT is led by a Project Coordinator and consists of two units: the technical unit, reporting to the External Financing Coordination Unit (Cellule de Pilotage), which oversees the implementation of the activities according to the proposed components, and the administrative team, housed in the DAA. The Administrative Unit is based in Port-au-Prince, and would be in charge of maintaining all records of Project transactions, including a consolidation of records submitted by the SMCs. It is currently staffed by a Deputy Financial Director and a Project accountant. Considering the additional responsibilities and workload resulting from the implementation of this Project, it would be necessary to reinforce the staffing resources available in the implementing agency. The agency would therefore hire 2 new Project accountants, with one accountant primarily responsible for working closely with the School Management Committees and Inspectors in the Districts to ensure that the financial transactions of Project activities at the District levels are accurately recorded and reported and transmitted to the PMT, while the second accountant would maintain records for activities directly financed by this Project as well as work closely with accountants who provide financial reports to the DAA from PNCS and IFMs. The Administrative Unit would report jointly to the Director of the DAA and to the Project Coordinator. An action plan would be agreed with MENFP for a gradual transfer of the fiduciary responsibility exclusively to the DAA. 32. An internal auditor was recruited for the APG 1 and would continue to work closely with the school inspectors that would carry technical audits to verify student attendance and the 50 availability of teaching materials. The auditor hired would be responsible for assuring that the overall MENFP’s internal control environment, including for activities financed by this Project, are adequate to meet the World Bank’s requirements and would develop an action plan to support Project activities. 33. Given the added responsibilities for the DAA, the Project would support the strengthening of the fiduciary capabilities of the agency through an international consultancy. It would support intensive training on both financial management and procurement procedures to staff in the DAA. The Project would also support the provision of training to relevant officials of the beneficiary agencies such as the school management committees. 34. In addition, community mobilization teams would be equipped to provide basic training in financial management to all SMCs. This training would be aimed at equipping SMCs with skills to maintain basic financial records. 35. Accounting Systems and Procedures. The accounting systems, policies and procedures used to manage Project funds would be documented in the Project’s manual of administrative and fiduciary procedures. These would be used to identify, assemble, analyze, classify, record and report the transactions of the Project, and to maintain accountability for the related assets and liabilities. The following aspects would be covered in the manual: low of funds; financial and accounting policies for the Project; accounting system (including centers for maintenance of accounting records, chart of accounts, formats of books and records, accounting and financial procedures); authorization procedures for transactions; budgeting system; financial reporting (including formats of reports, linkages with chart of accounts and procedures for reviewing financial information); auditing arrangements; and human resource aspects. 36. The DAA is currently in the process of changing the accounting software that it uses to maintain its accounting records from GESCOM to Tompro. The new system would be capable of producing all the accounting and financial data required to ensure that Project expenditures are maintained efficiently and accurately for timely financial reporting to the World Bank, including financial statements, World Bank reconciliation statements, and all financial reports, such as the Interim Financial Reports (IFRs). The accounting records would be kept up-to-date and the financial statements summarizing these would be presented for audit from time to time. World Bank reconciliations would be undertaken regularly to ensure accuracy of the accounting records. Any new staff would be trained in the use of the system. In addition, the chart of accounts used to record the transactions would be amended to accommodate any accounting codes necessary to capture transactions under this Project. 37. Mobilization teams would also have access to computerized systems that would be used to track Project related expenditures facilitate the task of the DAA in consolidating financial records. 38. Staff in the DDE regional offices would use Excel spreadsheets to prepare summarized financial reports that would be transmitted to the DAA periodically to provide the information supporting the payment of salaries to the instructor. 51 39. Internal controls and procedures. The DAA would maintain a strong system of internal controls and procedures. These would be documented in the manual of administrative and fiduciary procedures to ensure that all stakeholders of the School Heath and Nutrition and Tuition Waiver Program have sufficient information on the Project’s operating guidelines. The manual would document the financial management arrangements for the Project, and describe the key transaction cycles for the Project activities. These would include the approval of transactions, procedures for recording them, formats of key accounting documents and financial reports, and where relevant, a description of duties for key staff in the Administrative Unit. The manual would also describe the administrative controls to be adopted by the SMCs to ensure that they maintain accurate records of transactions, and that these are transmitted to the PMT regularly and in a timely manner. Disbursement Arrangements. 40. The proceeds of the IDA Grant would be disbursed in accordance with the traditional disbursement procedures of the World Bank and would be used to finance Project activities through the disbursement procedures currently used: i.e. Advances, Direct Payment, Reimbursement and Special Commitment accompanied by appropriate supporting documentation (Summary Sheets with records and/or Statement of Expenditures (SOEs)) in accordance with the procedures described in the Disbursement Letter and the World Bank's "Disbursement Guidelines". The minimum application size for direct payment, reimbursement and special commitment would be the equivalent of 20 percent of the Advance ceiling amount. 41. Retroactive Financing. The Project would reimburse expenditures up to a total of 20 percent of the Grant amount. To be eligible, expenditures must have been made by the Recipient within the 12 month period before the date of the Financing Agreement, and not before January 1, 2011. Retroactive expenditures would be subject to the same systems, controls and eligibility filters described above in this Annex. Those expenditures would also be subject to the regular Project external audit (see below). Designated Account 42. The existing Designated Account arrangements for the Education for All Adaptable Program Grant Phase 1 (APG1) (Credit No. H286-HT, P099918) at Banque de la République d'Haiti would continue to be used. The Ceiling of the Designated Account would be 10 Percent of the Grant amount. DAA would be responsible for submitting quarterly replenishment applications with appropriate supporting documentation along with a reconciled bank statement. Through the Designated Account, DAA would make payments to SMCs, IFMs and NGOs. In general, payments to cover activities implemented by SMCs, PNCS and IFMs would be made by PMT following the achievement of agreed triggers. The disbursement flow from the Designated Account to each of these entities is described below: - DAA would transfer funds to SMCs upon receipt of the list of approved block grants to be issued to the communities as authorized by the steering committees. Also, Community Instructors would be paid based on the payroll records authorized by the SMCs for instructor's salaries. 52 - Grants to SMCs: Grants would be made to the SMCs to cover tuition waiver and school construction. The tuition waiver payments would be calculated based on the number of students. Block grants for school construction would be determined based on applications by SMCs to the relevant committees. The DAA would compile a list of approved block grants and of payments due to be made to various schools to cover tuition fees. It would then make requested payments through the Designated Account to the bank account of the relevant SMC. - Payments for services rendered to PNCS for the School Nutrition and Health Program: Payments under the School Nutrition and Health Program would include fees to NGOs for their services. Payments would be made in accordance with the relevant terms of the contracts. They would be made following the submission of financial reports by the PNCS to the DAA. The reports would indicate the amounts payable to the NGOs. Following their verification of the amounts, the DAA would make payments to the NGOs. - Payments to IFMs: Payments to the IFMs would be calculated based on the number of student-teachers enrolled in the teacher training program. Through the Designated Account, DAA would make a direct payment to the bank account of these institutions. - DDE: Agents of the DDE would implement a program of controls of beneficiaries of Project funds and would prepare and implement a multi-year program of controls to check the use of the grants. Statement of Expenditures - SOEs: 43. Necessary supporting documents would be sent to the World Bank in connection with contract that are above the prior review threshold, except for expenditures under contracts with an estimated value of (a) US$100,000 or less for Works & Goods; (b) US$100,000 or less for consulting firms; (c) US$50,000 or less for individual consultants, as well as training and operating costs, which would be claimed on the basis of SOEs. The documentation supporting expenditures would be retained at the DAA and would be readily accessible for review by the external auditors and periods World Bank supervision missions. All disbursements would be subject to the conditions of the Loan Agreement and disbursement procedures as defined in the Disbursement Letter. 44. The Designated Account would be audited annually in conjunction with the audit of the Project financial statements. 53 Table 6: Schedule of Payments and Disbursement Methods Payments Activity financed Condition of payment to: SMCs Tuition Waiver List of names of Community instructors and list of schools Grants eligible for payment under program submitted by DAEPP- DGA to DAA PNCS School Health and Financial Reports based on expenses submitted for Nutrition payment by NGOs under contract IFMs Teacher Training List of IFM s eligible for program from the DFP Program Table 7: Allocation of Proceeds Amount of the Percentage of Financing Expenditures to Categories Allocated be financed (expressed in (including US$) taxes) (1) Goods, works, Operating Costs, 45,000,000 100% Training and consultants’ services for Component 1 of the Project, including under Grants for Subprojects (2) Goods, works, Operating Costs, 10,000,000 100% Training and consultants’ services for Component 2 of the Project (3) Goods, works, Operating Costs, 4,000,000 100% Training and consultants’ services for Component 3 of the Project (4) Goods, works, Operating Costs, 6,000,000 100% Training and consultants’ services for Component 4 of the Project (5) Unallocated 5,000,000 100% TOTAL AMOUNT 70,000,000 45. Internal audit and inspection. The MENFP hired an internal auditor in 2009 who is responsible for ensuring that the control environment for MENFP is adequate to prevent the misuse of funds for intended purposes. Considering that MENFP programs are robust, the APG I hired an independent audit agency to conduct spot checks annually and verify inspectors’ reports for the Tuition Waiver Program. School Inspectors plan to visit subsidized schools twice a year to verify that contracts between the schools and MENFP are signed and a list of students registered for the schools are obtained. The inspectors also verify school attendance and the presence of school textbooks. The inspectors are envisaged to continue to work with MENFP for this Project, however the external auditor’s Terms of Reference for this Project would include conducting spot checks of the financial reports submitted to the PMT for both the School Health and Nutrition Program and the Tuition Waiver Program. 54 46. Financial reporting. The DAA would be responsible for the preparation of periodic financial reports for the Project. It would prepare IFRs on a quarterly basis, and the annual financial statements. The IFRs would be submitted to the World Bank no later than 45 days after the end of the quarter. The DAA would keep records of all Project-related expenditures and would be responsible for preparing financial statements that would be audited annually, by independent auditors acceptable to the World Bank. The administrative unit of the DAA would also prepare Interim un-audited Financial Reports (IFRs) on a quarterly basis due to be submitted to the World Bank no later than 45 days after the end of every quarter. 47. External Audit. The annual financial statements would be subject to external audit and the DAA would be primarily responsible for ensuring that auditor’s recommendations are implemented by the MENFP. The external audit would be undertaken by a private firm selected in accordance with independence and competency criteria acceptable to IDA. The audit report would be submitted to the World Bank no later than six months after the end of each Project financial year. The audit report would include a management letter containing findings and recommendations relating to the Project’s internal controls at the PMT level. Terms of Reference for the audit would be prepared by the DAA and submitted to the World Bank for its no-objection by the time of negotiations for the Project. The selection of the auditor should be completed no later than 4 months after Project effectiveness. The audit reports would be reviewed by the PMT for the DAA and FIA. 48. The following actions have been established by the DAA as necessary to strengthen the financial management arrangements for the Project. Table 8: Indicative Financial Management Plan13 Indicative Actions Indicative Date Intermediate Responsibility Milestones 1 Recruitment of a consulting firm Four months PMT to help DAA carry out fiduciary after management of the Project Effectiveness 2 Recruitment of 2 Project Before PMT accountants to be trained on the Effectiveness updated manual of procedures 3 Preparation of the operational Before First draft submitted PMT manual and of the manual of Effectiveness before Board procedures. approval 4 Selection and Appointment of Four months Selection process PMT External Auditor after started immediately Effectiveness after Effectiveness 13 This is an indicative timeline. None of these steps constitute a legal condition of effectiveness. 55 b. Procurement 49. Procurement for the proposed Project would be carried out in accordance with the World Bank Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants dated January 2011 and Guidelines: Selection and Employment of Consultants under IBRD Loans & IDA Credits & Grants by World Bank Borrowers dated January 2011 and the provisions stipulated in the Financing Agreement. For each contract to be financed by the Project, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the World Bank in the Procurement Plan. The Procurement Plan would be updated at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. 50. With respect to the procurement capacity, the Project would make use of the capacity built up under APG 1. Though a detailed procurement capacity assessment hasn’t yet been carried out, it is likely that the PMT procurement team would need to be reinforced by an infrastructure specialist who would supervise the school construction activities. The actual operational manual would be updated and recent provisions related to Fraud and Corruption would be incorporated. The procurement team in place is experienced in World Bank procedures and well equipped to execute procurement according to the World Bank Guidelines. However, the overall public procurement system in Haiti remains relatively weak, despite recent reforms in the legal and institutional framework for procurement. Consequently, the overall Project risk for procurement is high. 51. Procurement Plan, Thresholds for Procurement Methods and World Bank Review. The summary procurement plan for implementation of the proposed Project was agreed between the Recipient and the Project Team on October 12, 2011, and is presented below in Table 9. The plan would be updated at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. The bidding documents would be made available through the MENFP’s website to the public. The recommended thresholds for the use of the procurement methods specified in the Financing Agreement are identified in Table 10 below. Supervision of procurement would be carried out primarily through prior review supplemented by supervision missions at least twice a year. 56 Table 9: Summary Procurement Plan Procurement Plan for Goods and Consultants services Request for Review by Method Date of Proposal Ref. No Description of Estimated Packages Bank Contract issued/Bidding Assignment Cost (Prior / Signature doc. US$ Post) Goods 1 Vehicles 630,000 Prior AOI TBD TBD 2 IT Equipment 330,000 Prior AOI TBD TBD 3 Textbooks 1, 000,000 Prior AOI TBD TBD 4 Reproduction of 690,000 Prior AOI TBD TBD Textbooks and other tools 5 Furniture 100,000 Prior AON TBD TBD 6 Generators 150,000 Prior AON TBD TBD 7 School Kits 140,000 Prior AON TBD TBD 8 Teachers materials 140,000 Prior AON TBD TBD 9 Risograph & 130,000 Prior AON TBD Educational Boards Total Goods 2,310,000 Consultants 1 Verification of 750,000 Prior QCBS TBD TBD Students Enrollment 2 NGOs for School 12,400,000 Prior FBS TBD TBD Feeding Program 3 Training firms and 260,000 Prior QCBS TBD TBD elaboration of Training plans 4 Financial Audit 300,000 Prior LCS TBD TBD Total 13,710,000 Consultants Total G & C 16,020,000 57 Table 10: Thresholds for Procurement Methods and Prior Review Expenditure Contract Value Procurement Contracts Subject to Category (Threshold) Method Prior Review US $ thousands 1. Works >1,000 ICB All 350-1,000 NCB All 25-350 Shopping All < 25 Shopping None Regardless of value Direct Contracting All 2. Goods >250 ICB All 50-250 NCB All 20-50 Shopping All < 20 Shopping None Regardless of value Direct Contracting All 3. Consulting Services -3.A Firms Regardless of value QCBS,QBS,FBS,LCS All <100 QCBS,QBS,FBS,LCS, and All CQS Regardless of value Single Source All -3.B Individuals > 50,000 In accordance with Chapter All V of Consultant Guidelines < 50,000 In accordance with Chapter In accordance with V of Consultant Guidelines paragraph 5.4 of Consultant Guidelines Abbreviations: ICB = International Competitive Bidding QCBS = Quality- and Cost-Based Selection NCB = National Competitive Bidding QBS = Quality-Based Selection DC = Direct Contracting FBS = Fixed Budget Selection LCS = Least-Cost Selection SSS = Single Source Selection CQS = Selection Based on Consultants' Qualifications c. Environmental and Social (including safeguards) 52. A social assessment was carried out during the preparation of the Education for All (APG 1). Among the findings were: i) elite capture by school directors, ii) conflict created by the infusion of money into schools/school management committees, iii) teachers abandoning rural areas, and iv) inequality being exacerbated between beneficiaries and non-beneficiaries. The Project addresses these through instilling a series of checks and balances at the local level, involving community participants in the management of Project resources, ensuring that Project resources intended to be managed by communities would effectively be managed by them, providing employment opportunities in rural areas for trained teachers, and having a highly targeted Project design, such that the Project benefits are enjoyed by those populations traditionally underserved by public services. 58 53. The Project would not support activities that result in involuntary resettlement as defined under OP/BP 4.12 (Involuntary Resettlement). However, despite population dispersion, rural density is high and scarcity of available land for school construction within community settlements may be a challenge, since land is intensively used for agricultural purposes. Communities would be trained through the Grassroots Management Training (GMT) program to, among other things, identify available and suitable public land that can be used for new school construction, or available and suitable private land that can be voluntarily donated by the community for the construction of new school. The Project’s Environmental and Social Management Framework (ESMF) includes guidance and a screening sheet to document land ownership and the voluntary nature of land donations, where relevant. 54. Since the exact location of schools would not be known before Project implementation, as per OP/BP 4.01 (Environmental Assessment), an ESMF is required to outline how sites would be selected, and how potential adverse environmental impacts at these sites would be identified, minimized, mitigated and managed. This ESMF has been prepared by the DGS based on a previous framework prepared by Economic and Social Assistance Fund (Fonds d’ Assistance Économique et Sociale) (FAES) and MENFP. The suite of potential adverse impacts would be small-scale in time and space related to construction impacts and cooking fuel during operation. The ESMF focuses on how to address construction-type impacts (what kind of training and protective gear workers would receive; how waste, noise and dust would be managed, etc.). Any sites requiring involuntary resettlement or that affect critical natural habitats, forests or physical cultural resources would be screened out by MENFP’s local offices during the approval process of community Projects. The ESMF also includes a budget for safeguard actions and a snapshot of the institutional arrangements for screening sites, developing mitigation actions, implementing these actions and supervising adherence to them. The DGS would supervise the implementation of the ESMF at each site. The ESMF was disclosed in hardcopy in Port-Au-Prince, Haiti (Ministry offices and World Bank country office) and on the World Bank’s website on August 5, 2011. 55. Given the use of charbon for cooking as the regular community contribution to the school health and nutrition program, OP/BP 4.04 (Natural Habitats) has also been triggered. The Project would work to identify alternative energy sources for school cooking. The results of this work would feed into an updated version of the ESMF, which would then describe good practice for mitigating any potential adverse impacts from these new sources and manage residual impacts arising from them. ii. Monitoring & Evaluation 52. This section presents the Project monitoring and evaluation arrangements for the proposed Project. It is divided into three parts: i) a description of the arrangements to implement the proposed monitoring plan, ii) the data currently available, and iii) the proposed evaluations to inform the MENFP’s future policy directions. 53. Different entities are involved in the implementation of the proposed monitoring plan. The MENFP would be the main entity responsible for implementing the monitoring plan, using enhanced monitoring arrangements ongoing Education for All Program (APG1) (Credit No. H2860-HT, P199918). MENFP is currently redesigning and updating its information system 59 in close collaboration with education donors. The objective is to produce updated education indicators every year, starting in July 2011. The school census is underway and the computerized information management system has been already developed. With the new Education Management Information System (EMIS) MENFP would be able to produce data by level of administration, National, Department and District. With regards to the intermediate results indicators for the four Project components, several data sources and methodologies would be used. For the tuition waiver and the school nutrition the arrangements developed for Education for All Program (APG1) (Credit No. H2860-HT, P099918) would be improved. For the tuition waiver independent agencies would be recruited to monitor the effectiveness of the delivery and the use of the school grants and to conduct parents and community surveys. For the school health and nutrition program the two mechanisms developed during Education for All Program (APG1) (Credit No. H2860-HT, P099918) would be continued. The PNCS would still be in charge of collecting school data and communities’ and parents’ opinions, while the NGOs recruited to deliver the school health and nutrition to schools would produce two reports (a progress report and a final report). For the monitoring of education quality, an independent agency would be recruited to carry out EGRA assessments, in collaboration with the MENFP. 54. The data currently available includes the resources discussed in the paragraph above, as well as numerous studies at various regional levels. The primary national datasets commonly used in the education sector are a school census carried out in 2003, DHS surveys, and the General Census of the Haitian Population (Recensemment General de la Population Haitienne) (2002). In addition to these, the proposed Project would also make use of other studies, such as the Haiti Early Grade Reading Assessment (2010), the poverty map undertaken by the Ministry of Planning (2004), a study on costs of education inputs (Merisier, 2004) in order to help fill the information gaps. 55. A series of analytical work would be undertaken through the Project, and the implementation of the OPE more generally. First, to fill the knowledge gap with regards to the education sector, in collaboration with other partners, MENFP would prepare a Country Status Report along with an Education Public Expenditures Review. Those activities would provide not only a deeper knowledge of the education sector but most importantly the possible options for further sustainability of Project activities. Secondly, with regards to the tuition waiver, an impact evaluation would be carried out to measure the extent to which the program is contributing to increased enrollment for out-of-school students. Third, an early mid-term evaluation is planned that would allow the Project’s design to be updated with early lessons learned. Finally, an external consultant would be hired to undertake an ex-post evaluation in the context of implementing the Completion Report. iii. Role of Partners 56. The first phase of the Education for All Program has been co-financed by the Canadian International Development Agency, the Caribbean Development Bank, the Education for All Fast Track Initiative Catalytic Fund (EFA FTI) (Credit No. 97009-HT, P114174) and the Inter- American Development Bank, combining for a total of US$54.2 million in co-financing. A multi-donor trust fund has been established to further mobilize international resources toward the education sector in Haiti. This mechanism would allow existing and future partners to scale up their support to schooling in Haiti. In the case of these co-financing arrangements, the role of 60 partners is limited to financing the ongoing and planned activities. All partners are harmonized around one set of operating procedures, outlined in the Project manuals. 57. With respect to the specific roles of partners for proposed activities under this phase, two actors are expected to play significant parts. First, the Ministry of Finances has committed to maintaining the salary payments of community teachers over the long-term, beginning in year 3 of the Project. As outlined above, this is central to the Project’s sustainability plan. Second, USAID, together with the central policymakers within the MENFP, would be leading the reform initiative of the Government’s accreditation and licensing system for non-public schools. See Table 11 for more details on partner support to the OPE. Table 11: Partner Projects and Timelines Project Amount (currency) IDB: Support to Education Sector US$250 million (ending 2015) CDB: Support to EFA US$20 million (ending 2013) AECID: School Infrastructure US$16.3 million (ending 2013) CIDA: Support to the Rentrée Scolaire US$73.5 million (ending 2012 USAID: Education Program US$103 million (ending 2015) UNICEF: Education Program US$115 million (ending in 2013) UNESCO: Teacher Policy Development US$4 million (ending 2014) WFP: School Feeding Program US$80 million (ending in 2014) Swiss Cooperation: School Infrastructure US$8 million (ending in 2013) Brazil: School Feeding / Infrastructure US$13 million (ending in 2012) France US$22.5 million (ending in 2014) OIF US$10 million (ending in 2015) 58. Other partners expected to play important roles in the carrying out of the operation are: i) firms and non-governmental organizations that would be selected using competitive processes to provide technical assistance, ii) firms that would be recruited in order to perform technical and financial audits of the proposed activities, and iii) local authority bodies, such as the ASECs, the Commune Councils (Conseil d’administration de la section communal – CASECs), and the CMEs, that would all help in calibrating the system of checks and balances with respect to accountability mechanisms and the flow of funds. 61 Annex 4: Operational Risk Assessment Framework (ORAF) Project Development Objective(s)      The objective of the Project is to support the Strategy for Rebuilding the Education System through the implementation of sustainable  programs to improve: (a) access, particularly of under�served populations, to Primary Education; (b) quality of Primary Education; and (c)  the institutional capacity in the Recipient’s education sector.       PDO Level Results  1.  Access.  Number of children enrolled through the provision of tuition waivers;  Indicators:  2. Quality. Percentage of children enrolled in participating schools for more than one year reading at grade level in Grade Three 3. Sustainability: Percentage of community teachers financed by the Government of Haiti; 4. Capacity. Percentage of schools inspected at least once per year by the MENFP.      Risk Category  Risk Rating  Risk Description  Proposed Mitigation Measure  There is a risk that stakeholders  The Project is mitigating this through a    may perceive the support to new  very deliberative preparation process that  MI  schools as threatening their  has involved all key actors while keeping  standing in the marketplace.    expectations low.  The stated goals of the    operation would continue to be clearly  Perceptions of favoritism, elitism,  communicated by the World Bank and  and political preferences could  Government, and influential actors would  materialize if criteria and method  continue to be informed in order to reduce  of selection of community�based  the potential for misinformation and  Project Stakeholder Risks  schools beneficiaries are not  rumors.    clearly communicated from the    beginning, and throughout.   The Project’s operational manual has been  Frustrations could mount if  designed in consideration of the findings of  adequate complaint mechanisms  the social assessment carried out during  are not in place for managing such  preparation of Phase 1, whereby targeting  situations.    and selection criteria have been calibrated    to minimize social disruptions. The manual  would also be updated with a complaint  management mechanism.  62   Risk Category  Risk Rating  Risk Description  Proposed Mitigation Measure  There is a technical risk that the  The Project is mitigating these risks  High  proposed implementation  through multiple approaches.  Technical  modality exceeds available  risks would be mitigated through capacity  capacities, and that some program  support to the MENFP at the central and  elements such as the grants to  regional levels.  Fiduciary risks would be  communities would require  mitigated through involvement of local  Implementing Agency Risks (including FM & PR  higher levels of fiduciary capacity  authorities in the approach, as well as  Risks)  than currently exist.  specific trainings at the community level.  The risk of fraud and corruption is  Fraud and corruption would be mitigated  present.  through the use of established systems and    procedures from APG 1, as well as a  complaint mechanism open to all.    Project Risks      There is a risk that instability in    leadership may result in changing  The Project is mitigating this risk through  MI  priorities for the client, shifting  ongoing design discussions with  the demand away from the  stakeholders outside of education (PMO,  proposed approach to another  Minister of Finance, President), which is  priority under the strategy.  expected to facilitate any potential    transitions and to agree on a medium term  There is also a risk that the  financing framework.    performance�based contract    mechanisms may be resisted by  At the local level, consultations with DDES  the DDEs, and the results�based  and communities as per the CDD approach   Design  approach of the tuition waiver  would help validate design during    component would be rejected by  implementation.  The risk that individual  school directors.  Further,  school directors or teachers would resist  teachers may resist the  changes is real, but with sufficient support  introduction of new teaching  (training, monitoring) and incentives  methods.    (additional or continued funding along    with proven efficacy) this can likely be  There is a risk that Government  overcome.   funds from the MENFP may not be    released in a timely manner and  There is some flexibility for donor funds to  thereby disrupt the pace of  fill financing gaps within the GoH plan as  implementation of the teacher  needed.  training program.  63   Risk Category  Risk Rating  Risk Description  Proposed Mitigation Measure  There is a risk that small�scale  The Project ESMF would guide the client in    construction activities for  how to mitigate and manage any adverse  ML  educational infrastructure by  consequences of Project activities.  A  communities could displace  complaint mechanism would be set up to   Social & Environmental  commercial activities and/or  collect information about Project    cause minor adverse  implementation, particularly community  environmental impacts if not  selection before conflicts arise.  adequately managed.       The risk associated with donors is  The Project is mitigating this risk through    that perceived failure of the  close collaboration with other donors,    Project could jeopardize future  particularly the IDB, CIDA and the CDB.     Low  financing for these activities from  Joint supervision missions are also  international partners.  conducted.        There is a risk that slow  The OPE framework brings together  disbursement could engender  multiple donors around specific technical   Program & Donor  negative feelings among  areas of collaboration, and is particularly    beneficiaries and government  strong on aspects of institutional  partners.  strengthening.     The program is a follow�on to a previous  APG, and will benefit from existing  mechanisms and practices already in place  for quick disbursement.    The Project would actively seek  Community surveys conducted in support    out areas with little or no access  of this Project have identified sufficient  ML  to education, so there is a risk that  numbers of people with education  adult residents of these areas  credentials in surveyed communities.  In    would have insufficient levels of  situations where there are insufficient    education to teach.  There is also a  numbers, local graduates of the Meeting    risk of being able to execute the  Teacher Needs component would be    large volume of activities within  mobilized to teach.  With regards to   Delivery Quality  the Project’s timeframe.  disbursements, the PMT has extensive    experience with World Bank procedures in  order to ensure efficiency, and the  activities are diversified across technical  units such that is one area shows a  64   Risk Category  Risk Rating  Risk Description  Proposed Mitigation Measure  bottleneck, other teams can advance other  components.    Overall Risk Rating at Preparation  Overall Risk Rating at Implementation  Comments  The overall risk rating is high driven largely  High  High  by technical and fiduciary capacity  weaknesses and governance issues.  65 Annex 5: Implementation Support Plan 1. Implementation Strategy: The Project would benefit from the four years of supervision experience in the sector, and with the same Project Management Team in particular. As emphasized in Annex 3, implementation design of this second phase only differs in that activities for component 1.2 would be implemented at the departmental levels and that the community- based approach requires certain flexibility with regards to fiduciary arrangements. Wherever possible, implementation support such as supervision missions would be conducted in the context of implementation of the overall OPE, together with other financing partners. 2. Implementation Support Plan: The World Bank’s implementation support team would consist of two parts: first, the task team leader (TTL) would be based in Port-au-Prince, and would be in daily contact with the Project Management Team (PMT). The TTL would be closely supported by a consultant that would be responsible for closely monitoring the implementation of some Project activities and agreed upon action plans between the TTL and the PMT. Additional support would be provided from Washington, to facilitate the World Bank’s response time with regards to withdrawal applications and requests for no objections with the procurement and financial management teams. 3. The second part of the World Bank’s Implementation support team is composed of technical specialists to review and supervise the introduction of the new modalities and approaches for an increased access and better impact on education quality. Technical specialists would be based abroad (Extended and Short-term consultants, and/or World Bank staff), and they would be expected to travel frequently to Haiti to provide intensive technical assistance to the client. Specifically, the breakdown of the needed inputs from the supervision team would include:  Technical inputs: Technical reviews and/or assessment of: (i) the teacher training program (curriculum, training of trainers, etc); (ii) the financing mechanisms for the Support to Communities; (iii) the graduation mechanism for the tuition waiver program; (iv) the assessment of student learning outcomes; (v) the result-based contracts with the DDEs; and (vi) the Project Impact Evaluation activities.  Fiduciary requirements and inputs: Given the weak capacities within the DAA, and the overall vision of transferring responsibilities for Project management over to MENFP, a sharp focus would be placed on the supervision and support to the DAA in its mandate to effectively manage resources (local and international) in a transparent way.  Safeguards: Assist in building capacity at DGS to undertake safeguard actions as described in the ESMF; supervise the implementation of these actions at the site level. 66 Table 12: Implementation Support Time Focus Skills Needed Resource Partner Role Estimate First twelve 1- Support to Community US$10,000 months communities Development Specialist 2- Teacher Training Education Specialist US$30,000 This would be Curriculum conducted with UNESCO 3- Tuition Waiver Operations US$30,000 This would be Program Specialist conducted with IDB and CDB 4- Development of Operations US$30,000 This would be institutional capacity Specialist undertaken together with the education donor group 5- Financial Financial US$30,000 Management and Management Procurement Specialist and Procurement Specialist 12-48 months 4- Assessment of Education Specialist US$60,000 These activities student learning would be outcomes conducted together with IDB and CDB 5- Impact Evaluation IE Specialist US$60,000 67 Table 13: Skills Mix Required Skills Needed Number of Number of Comments Staff Weeks Trips Sr. Social 2 2 Early during Project Implementation, Development specific support would need to be provided Specialist for the development of a robust and meaningful communications plan. Environmental 3 3 Close monitoring of the action plan for Specialist application of the ESMF would need to be undertaken by the World Bank. Technical skills 12 6 Close supervision of the development of relating to pedagogy training modules for the pre-service and teacher training teacher training would need to be undertaken by the World Bank. Fiduciary skills 8 4 Close supervision and capacity-building (Financial will need to be provided by financial management and management and procurement specialists procurement) throughout the Project. Community-driven 6 3 Close supervision of the CDD components development would need to be undertaken. 68 Annex 6: Team Composition Name Title Unit Peter A. Holland Task Team Leader LCSHE Patrick Ramanantoanina Sr. Operations Officer, Co-TTL LCSHD Michael Drabble Sr. Education Specialist LCSHE Janet K. Entwistle Sr. Operations Officer LCSHE Erik Bloom Sr. Education Economist LCSHE Noah Yarrow Education Specialist – consultant LCSHE Serge Theunyck CDD Specialist – consultant LCSHE Hassine Hedda Finance Officer CTFRC Victor Ordonez Finance Officer CTRFC Franck Bessette Sr. Financial Management Specialist LCSFM Joseph Kizito Mubiru Sr. Financial Management Specialist LCSFM Nko Etesin Financial Management Specialist LCSFM Yao Wottor Senior Procurement Officer LCSPT Alois Ndorere Procurement Officer LCSPT Valerie Hickey Environment Specialist LCSDE Mary Dowling Program Assistant LCSHE Axelle Latortue Operations officer – consultant LCSHD Antonella Novali Program Assistant LCSHE Amy Walter Education specialist – consultant LCSHE Julius Martin Thaler Legal Counsel LEGLA Isabella Micali Drossos Legal Counsel LEGLA Sophia Guerrier-Gray Paralegal LEGLA 69 Annex 7: Economic and Financial Analysis 1. The economic analysis compares the costs and expected economic benefits of tuition waivers and support for non-public schools (including tuition waivers, school health and nutrition, and the accelerated teacher training program benefiting non-public schools) and support to community schools (support for community schools and community school instructors, as well as distance education). The analysis uses traditional techniques in the education sector. It calculates the Project’s benefit as measured by the increase in lifetime income compared to non-beneficiary children. This only captures the individual monetary benefits from education. There are other individual benefits, such as improved health and social participation as well as economy-wide benefits, such as more innovation and more productivity. The community school component, in particular, focuses on reaching students in areas where access to education is limited. 2. The analysis assumes that the Project would enroll children who would otherwise be out of school and would decrease the risk of drop-out among those who are in school, by reducing the economic burden that tuition poses for families, creating supply where it is scarce or non- existent, and improving school quality and accountability. These years of schooling are then summed to calculate a total increase in years of schooling for program participants. A stream of lifetime income is then simulated for an individual with one additional year of schooling, taking into account the increase in experience with time. The estimates for the value of additional year of school and for a year of experience are taken from an analysis of the returns to education presented in the 2006 Country Economic Memorandum. 3. The analysis shows a net benefit and positive return for both components. With an 8 percent discount rate, the Project has a net present value (NPV) of US$173.9 million with a rate of return of 18 percent. Table 14 outlines the base case and two additional cases. The first alternative case posits higher unemployment reducing the employment possibilities of graduates. The second alternative case assumes that the impact of the program is less and fewer students enroll. In all cases, the Project appears to be a good investment from an economic point of view. Table 14: Internal Rate of Return and Net Present Value Scenarios Base Case High Unemployment Low Enrollment Tuition Waiver  IRR 17% 17% 16%  NPV 150.2 133.7 113.4 Community Schools  IRR 16% 15% 12%  NPV 23.7 20.7 9.1 Total Project  IRR 17% 17% 15%  NPV 173.9 154.4 122.5 70 Annex 8: Technical Matters A. Characteristics of Proposed Beneficiary Areas in Rural Haiti 1. Haiti’s rural population is highly dense, extremely dispersed and hard to reach. According to 2004 calculations, Haiti’s total population is about 9.7 million, the majority of which lives in rural areas (60 percent). Rural density is estimated at180 hab/km2, extremely high by international standards. However, such extreme density paradoxically translates into a highly dispersed rural population, settled in thousands of networks of very small villages, each within a walking distance of 20 minutes to one hour (see Figure 5 Satellite Photos of Settlements in Rural Haiti). The road network is limited, with most networks of villages living in great isolation. Paths to access villages are long and interspersed by innumerable rivers, which further compound the difficulties for school age children to travel to school, especially for girls. As a result, the rural population is hardly reached by the formal education system. Figure 5: Satellite Photo of Settlements in Rural Haiti (Commune St-Michel) (Each point represents one family dwelling. Squares represent km2) Source: Centre National de l’Information Géo-Spatiale - CNIGS 2. . The existing network of schools in Haiti, largely dominated by non-public schools, provides very few education services to rural children. Despite the lack of detailed data, the available information reveals a general idea of the school distribution over the territory and amongst providers (See Table 15). The public school network is close to embryonic, with 12 percent of the schools enrolling about one fifth of the children. Most public schools have a national status, with large enrollments by Haitian standards (344 students/school) while those with community status tend to be smaller and in decline Public schools are mostly located in 71 urban and peri-urban areas. The vast majority of education services are provided by non-public schools that enroll about 80 percent of the country’s pupils in 88 percent of the country’s schools. This dominant sub-network of schools is in turn broken down into two sub-systems. First, a mature and well organized group of private schools of medium-size (150-300 students) are located primarily in urban areas where families have the ability to pay for services. Second, a large but disorganized group of “spontaneous�, generally very small schools (50-150 students), mostly community- based and/or faith-driven, have mushroomed in poorer settlements, mainly in urban slums and remote rural areas. Table 15: Estimated Number of Schools by Geographic Location Estimated Distribution of the Schools by Category and Location Public Schools Non-Public Schools Total Total School National Communal Private Community Total Country Public Non- Network Schools Schools Schools Schools Schools Public Schools 8% 4% 12% 44% 44% 88% 100% 15,700 18% 3% 21% 53% 26% 79% 100% 2.1 Enrollment million Pupils per 344 120 269 160 80 120 134 School Urban & Urban & Location Peri-Urban Urban Peri- Urban Rural Mix Urban Source: Data from 2003. Assumptions and calculations by authors. 3. The main issue of community schools in Haiti is the lack of sustainable financial support. Community schools already exist in large numbers. On the basis of the above computation of reasonable assumptions, they may number near 10,000. Fields visits during Project preparation confirm that, even in rural remote areas selected by DDE on the basis of lack of education services, more than one village out of four has some sort of community- or faith-based school though the quality of the services offered appears low and many schools do not offer all six primary grades. The past history of most of these schools shows that they have benefited during some few years of external aid from an NGO or faith-based organization paying for teacher salaries and/or building one or two classrooms. During these happy years, they experienced large enrollments and substantial results. However, the prosperous period of relative stability inevitably ended when external help withdrew, often moving to another place. Schools rapidly declined to just skeletons of their former selves, because parents were too poor to take over salary payments of teachers who eventually left the schools. Many of the schools still exist, surviving thanks to a few heroic quasi-benevolent teachers delivering some kind of education to small groups of students. This is currently the situation observed in a majority of the community- or faith-based rural schools in the country, contributing heavily to the very poor quality of provision of education services. The situation is not better in urban community schools. Mostly located in slums, they represent job opportunities for unemployed workers who may want to teach. But the volatility of parents’ financial resources immediately translates into volatility of enrollment as well as school resources to pay teachers who therefore rarely remain committed to the job. 72 Table 16: Villages per School in Rural Haiti Geographical Distribution of Villages and Schools In 8 Remote Rural Areas Selected for their Lack of Education Services Name of the Central Village in the Area Number of Number of Schools % of Schools Villages in the in the Areas /Villages Area Guillemonde 6 1 17% Corail Boutin 16 3 19% Grande Riviere 19 4 21% Mouilage Fouquet 10 5 50% Guirand 16 3 19% Robart 17 6 35% Tiby 13 2 15% Baie Dumesie 14 7 50% Total 8 Rural Remote Areas 111 31 28% Average 14 4 B. Evolution of the World Bank’s Engagement in Haitian Education Historical Context 4. Over the last 35 years the World Bank has played a key role in supporting education in Haiti. The “First Education Project� in Haiti in 1976 noted sharp inequities between the enrollment of boys and girls as well as imbalances in overall enrollment levels between urban and rural areas. While much has changed (current studies note little difference in educational attainment between boys and girls and a democratically elected government is in place), much remains to be done. A series of education Projects followed this initial approach, but eventually the political situation deteriorated to the point that the World Bank withdrew. The World Bank re-engaged in the education sector in 2005 in response to a request from the Government for IDA to lead a multi-year multi-donor effort to improve the education system and assist Haiti to qualify for the World Bank-administered Education For All-Fast Track Initiative (Haiti Education For All Trust Fund No. 97009-HT, 2010). 5. The World Bank’s re-engagement in the education sector began with a focus on access to basic education. The first Education For All Adaptable Program Grant (2007) fell under the World Bank’s strategy of “quick wins� that was deemed essential in the transition period following the re-emergence of a democratic Haitian state. The Project emphasized access to basic education through tuition waivers via the establishment of a new mechanism for financing public-private partnerships. It also encompassed elements of governance and instructional quality which would become more prominent in the World Bank’s strategy over time. At US$25 million, the Education for All Program (EFA APG1) (Credit No. H2860-HT, P099918) was the largest investment in education in Haiti in that period. 73 Table 17: Stages of Education Sector Engagement in Haiti Government Strategic Education for All Strategy Operational Plan for Education Framework (2007-2010) (2011-2015) Five strategic priorities: Nine thematic areas: 1. Improve equity in the 1. School infrastructure/facilities development and protection of 2. Curriculum and programs early childhood 3. Expanded access to education 2. Improve equity in the access to 4. Technical and Vocational Education formal and non formal education and Training (TVET). Select Strategic 3. Improve the internal efficiency 5. Higher education Priorities of basic and post-basic education 6. Human resource 4. Improve the external efficiency development/professional training of basic and post-basic education 7. Literacy 5. Improve the overall management 8. Special education and governance of the system. 9. Governance reform Financing gap: US$102.7 Financing gap: US$1 billion million EFA APG 1 (US$43 M) EFA APG 2 (US$70 M) Objective: Improve access and equity of Objective: support the GoH's national education primary education, operationalize strategy through the implementation of partnerships between public and non sustainable programs to improve access, public sectors, and build capacity to particularly to under-served populations, and assess learning outcomes. quality of primary education, increasing internal World Bank’s efficiency and strengthening institutional Program of Support Activities: Provide tuition waivers, design capacity in Haiti. accelerated teacher training program, support school health and nutrition, Activities: Provide tuition waivers, design design multi-grade education modality, accelerated teacher training program, increase improve reading competencies, and supply of classrooms and teachers in rural areas, undertake institutional strengthening and improve reading competencies, and undertake governance reform. institutional strengthening and governance reform. EFA-FTI: US$22 M IDB: US$250 M Examples of Other CDB: US$10 M CDB: US$20 M Donors’ Support CIDA: US$6 M CIDA: US$73 M USAID: US$103 M AECID: US$16 M UNICEF: US$115 M World Bank’s Lending Instrument 6. The instrument selected for the World Bank’s support to the education sector was an Adaptable Program Grant (APG). The use of an APG presents the following advantages over other instruments: i) the overall program time horizon of approximately 10 years enhances the predictability of donor financing for the Government of Haiti, ii) the phased approach allows for 74 consolidating gains of previous phases and bringing to scale successful pilot operations, and iii) follow-on phases can benefit from implementation capacity that has been built up in previous phases of the Program. These advantages are of particular importance given the context of fragility within which the proposed Project would be operating. Evolution of the World Bank Approach 7. The World Bank’s engagement in the education sector in Haiti is converging on the goal of quality instruction for student outcomes. Using the successful models developed under Education for All Program (APG1) (Credit No. H2860-HT, P099918) with an emphasis on access, quality and governance (Figure 6) the proposed PROJECT would move beyond access to focus on student-level outcomes. PROJECT would develop new models to address the needs of populations identified under the Government’s Operational Plan but not met by current donor commitments. This would include the integration of a successful locally-adapted literacy methodology in all three World Bank financed approaches as well as tracking student outcomes across community-based, tuition-wavier and FIA-instructed schools. PROJECT would unify the existing approaches and hold all interventions to the same student-level learning outcome standard (EGRA, Figure 7). Figure 6: Creation of Programs Under APG 1 Access Quality Governance Reading  Tuition Waiver Assessments (EGRA) Strengthening  Reading instructions  Institutional  School Management  (LEKTI) Strengthening Committees School Health and  FIA Nutrition 8. This proposed Phase 2 focuses more sharply on quality outcomes and sustainable partnership models. The tuition waiver program has thus far served as a kind of safety net, providing in-kind transfers to poor families in times of shock. Working in the same tuition waiver schools as under APG 1, the second phase would begin to introduce inputs highly associated with increased quality of instruction and learning developed under APG 1 (e.g. trained teachers, enhanced reading instruction), in order to make a qualitative leap in the learning 75 outcomes of children. With regards to issues of access in rural areas, a much-needed new partnership modality for under-served communities would be introduced under Phase 2. Finally, a transition plan would be designed for participating tuition waiver schools to graduate to a new level of partnership with the MENFP, signaling a new arrangement for receiving financial support. Figure 7: Integration of Programs for Qualitative Improvements Under APG 2 9. The evolution from increased access toward improved learning outcomes would be completed under APG 3. The transition for all participating schools under the tuition waiver program to a new partnership modality sharply focused on learning outcomes would be completed under APG 3. If proved successful and cost-effective, the community-based education model introduced under APG 2 would be brought to national scale, including preschool. With respect to governance and institution-building, efforts for enhancing demand- side accountability through better informed parents would also be generalized to other schools. 10. Growing investments in education responded to the changing needs of the country and client over the last decade. In relatively rapid succession, Projects were created to address the lack of qualified instructors (Meeting Teacher Needs, Credit No. H375-HT, P106621, 2007), destruction caused by an unusually violent hurricane season (Emergency School Reconstruction Program, Credit No. H460-HT, P115261, 2008) and a request by the Government for a co- financing mechanism which would streamline donor investments in the sector (Haiti Education For All Trust Fund No. 97009-HT, P114174, 2010). The World Bank’s role as a leader in the education sector in Haiti was well established at this time, but a major earthquake in early 2010 had a very large impact on the nation and the donor landscape. A number of programmatic measures were put in place to respond to the calamity and assure continuity of service, including an expanded and more streamlined approach for the tuition wavier program. Due to the radically 76 changed environment, the Bank has emphasized a consolidation of education operations and increased coordination with other sector donors. 11. The World Bank plays to its strengths among the major donors as a strategic leader in developing financing mechanisms and models to deliver access to quality basic education. While diminished in relative size, the World Bank’s investments continue to play a key role in creating financing mechanisms and generating new models for engagement. The World Bank-initiated Education for All (EFA) Trust Fund No. 97009-HT (P114174) allows donor resources to efficiently support educational access. While approximately 80 percent of donor funds are going toward basic education, the focus tends to be on standard approaches of building public infrastructure and providing supplemental training to existing teachers. The FIA component of PROJECT would be one of the only initiatives supporting pre-service teacher training to expand the total number of qualified teachers. The training of community based educators in localities with no school services is an accompaniment to this approach, ensuring that teachers are trained in areas where they are most needed. This community-based approach, with strong links to MENFP, is a new model for education services delivery where no other donors are currently engaged. 12. The future role of the World Bank in supporting educational outcomes is dependent on relative political stability, coordination with the activities of other donors and increased capacity on the part of the MENFP. An eventual APG3 would likely complete the evolution from access to access to quality and further integrate the educational portfolio. This would include a performance-based mechanism for all tuition-waivers including pre-school, convergence of the teacher-training approaches to effectively serve all schools and active enforcement of learning standards by the Government with the assistance of parents and communities. C. The Project’s Emphasis on Sustainability 13. The sustainability of the selected approach is vital to the achievement of universal primary education in Haiti, leading to the inclusion of “sustainable� in the Project Development Objective in this Project. In the short and medium term, substantial technical and financial support would need to be provided by the international community if the goal of universal free primary education is to be achieved in Haiti. In order to ensure the long-term sustainability of this goal, considerable public resources would need to be mobilized, and the selected approaches for public provision and public financing (through non-public provision) of education must be designed in a fiscally prudent way. With regards to the tuition waivers, this implies the graduation of schools from receiving the full subsidies to a more manageable level of financing. 14. For the support to communities, an assessment of previous and existing efforts to create community-based schools was carried out during preparation. The main finding was that, for schools which thrived in the past but were now closed or abandoned, the principal cause was an inability by those communities to sustain the salary payments of teachers. Another key shortcoming of previous initiatives was a design which entailed an over-reliance on external support from NGOs, whereby the community ownership was never crystallized. Ambiguity in the status of community schools presents another problem to their lasting presence. In some 77 cases, they are perceived as being public schools, and there is an expectation that the state should manage and maintain the school. In other cases, they are considered as belonging to the municipality or to another authority, or simply as being ‘illegal’ entities and having no recognition. In all of these cases, this ambiguity over the relationship between the state and the community with respect to the schools leads to a diffusion of responsibility over its care and maintenance. By involving local government, local CBOs and ownership by the communities themselves with the direct involvement of the MENFP the Project is implementing successful practices from other contexts that have a high probability of success while avoiding ineffective strategies implemented elsewhere in the country. All Project-supported schools which receive public funding and have qualified, MENFP-recruited teachers will be treated as public schools from inception. 15. In order to overcome these challenges to the sustainability of the initiatives, the Project design would consist of the following elements: i) progressive financing of salary payments from the MENFP, and ii) significant community involvement from the beginning.  Financing of salary payments from the MENFP’s budget: In discussions with the Ministry of Finances, there is a commitment on behalf of the Government of Haiti to finance the salaries of community teachers, beginning in year 3 of the Project. This approach would entail a gradual phasing in of on-budget recurrent expenditures to cover these Project costs, such that by the end of the Project, 100Percent of salaries are financed by the Government.  Significant community involvement and contributions from the beginning: As described above, the Project design would include significant community mobilization, and would feature a community-driven development model whereby school management would be a community responsibility, including the hiring of teachers, the payment of salaries, contracting and overseeing construction activities, among other responsibilities. 78 The original had problem with text extraction. pdftotext Unable to extract text.