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					ASIAN DEVELOPMENT BANK

RRP: SRI 35192

REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE BOARD OF DIRECTORS ON A PROPOSED LOAN TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR THE SECONDARY EDUCATION MODERNIZATION PROJECT II

September 2004

CURRENCY EQUIVALENTS
(as of 18 September 2004)

Currency Unit SLRe1.00 $1.00

– = =

Sri Lanka rupee/s (SLRe/SLRs) $0.009678 SLRs103.66

ABBREVIATIONS ADB CAL CLC EMIS GDP ICT IRR JBIC MOE NEC NECORD NETS NIE PMO PTDU SBA SBM SDG SDP SEMP SIRUP SMC TLR – – – – – – – – – – – – – – – – – – – – – – – Asian Development Bank computer-assisted learning computer learning center education information management system gross domestic product information and communication technology internal rate of return Japan Bank for International Cooperation Ministry of Education National Education Commission North-East Community Restoration and Development Project National Examination and Testing Service National Institute of Education project management office provincial training development units school-based assessment school-based management school development grant school development plan Secondary Education Modernization Project Small-Scale Infrastructure Rehabilitation and Upgrading Project school management council teaching-learning resource NOTES (i) (ii) The fiscal year (FY) of the Government ends on 31 December. In this report, "$" refers to US dollars.

This report was prepared by a team consisting of A. Inagaki, team leader; M. Sultana; K. Mulqueeny; L. Arthur; and A. Gamaathige.

CONTENTS Page LOAN AND PROJECT SUMMARY MAP I. II. THE PROPOSAL RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES A. Performance Indicators and Analysis B. Analysis of Key Problems and Opportunities THE PROPOSED PROJECT A. Objectives B. Components and Outputs C. Special Features D. Cost Estimates E. Financing Plan F. Implementation Arrangements PROJECT BENEFITS, IMPACTS, AND RISKS A. Project Benefits B. Project Risks ASSURANCES A. Specific Assurances B. Conditions for Loan Effectiveness C. Conditions for Withdrawal RECOMMENDATION iii ix 1 1 1 2 5 5 5 9 10 11 12 16

III.

IV.

V.

18 18 20 20 20 21 26 30 32 34 36 37 38 39 44 46 49 53 57

VI.

APPENDIXES 1. Project Framework 2. Sector and Subsector Analysis 3. External Assistance to the Education Sector 4. School Resource Allocation Procedure and Funding Formula 5. Project Cost Estimates and Financing Plan 6. Project Management Structure 7. Implementation Schedule 8. Procurement of Equipment and Packages 9. Outline Terms of Reference for Consulting Services 10. Staff Development and Training Program 11. Project Impact on Peace Building, Reconciliation, and Social Cohesion 12 Summary Economic and Financial Analysis 13. Summary Poverty Reduction and Social Strategy 14. Ethnic Minority Development Framework

SUPPLEMENTARY APPENDIXES (available on request) A. Lessons Learned B. Baseline Conditions for Secondary Schools C. Criteria for School Development Plans D. Criteria for the School Stipend Program E. Indicative Criteria for Selecting Zonal Trainers/Facilitators F. Indicative Plans for Piloting School Management Council Start-Up Program G. Project Implementation Mechanism H. School Planning Process and Training Plan I. Resettlement Framework

LOAN AND PROJECT SUMMARY Borrower Classification Democratic Socialist Republic of Sri Lanka Poverty classification: Poverty intervention. (Following the Board approval of the R-Paper, Review of ADB's Poverty Reduction Strategy, staff instructions to replace the PI/CPI classification with a new tracking system are under preparation in line with paragraph 83 of the R-Paper). Sector: Education Subsector: Senior secondary general education Thematic: Inclusive social development Subtheme: Human development Category C The Project will involve minor repairs with no negative implications on environment or involuntary resettlement. The Project will help establish a secondary education system that is equitable and responsive to labor market requirements. It will increase equity of access to quality secondary education by upgrading approximately 1,100 target schools to an acceptable quality standard. It will support the Government’s strategy to modernize the secondary school curriculum and teaching-learning methodologies by equipping some schools with science laboratories, computer facilities, and multimedia units. Capacity of school personnel to manage and sustain these facilities and improve teaching-learning activities will be developed through teams of zonal trainers/facilitators. Schools will be required to submit a comprehensive school development plan (SDP) before receiving any support. School-based management (SBM) will be enhanced through the provision of small-scale school development grants. Incentive programs to attract teachers to work in rural areas will be carried out. Special attention will be given to support Tamil teachers. Stipends will be provided to poor students qualified to study A-level science or commerce in a nearby school. The capacity of provincial, zonal, and divisional education officials will be developed through training and consulting services. The Project will support implementation of the Government’s policies and reforms in education such as decentralization of education and introduction of SBM, and integration of school-based assessment in the national examination. The Project will contribute to social equity and building of social cohesion by minimizing disparities across regions and ethnic groups, and by promoting inclusive curriculum content and teaching methodologies.

Environment Assessment Project Description

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Rationale

Despite positive achievements in basic education, low investment in education causes disparities in the quality of education and results in low efficiency of secondary education and above. The pass rates at the ordinary level (O level) and advanced level (A level) in the national examinations are very low. Only 40% of Olevel students qualify for A level. Regional disparities are evident. Students in rural and disadvantaged areas have much lower pass rates than those in urban areas. Moreover, schools are not preparing their students for employment. Grade 11 school leavers do not have sufficient knowledge or vocational skills and are not equipped to seek skilled work or engage in self-employment. Grade 13 school leavers also lack employment-related skills and if unsuccessful in finding a place in the university system tend to join the ranks of the unemployed. The unemployment rate among those with A-level qualifications and above is 18%; the conventional education system does not meet the demands of the labor market, especially in information and communication technology, science and technology, and English language skills. The Government is committed to improving the quality and efficiency of secondary education and modernizing the system to meet labor market requirements. The broad sector goal of the Project is to help establish a secondary education system that is equitable and more responsive to labor market requirements. The specific objectives are to increase equity of access to quality secondary education, and to improve efficiency of the secondary education system. The Project will upgrade approximately 1,100 target schools not supported under earlier projects, and provide system-wide support to all 2,300 (1AB and 1C ) secondary schools. The total cost of the Project is estimated at $47.0 million equivalent, including taxes, duties, interest charge on the Asian Development Bank (ADB) loan, and physical and price contingencies. The foreign exchange cost is estimated at $14.6 million (31.1%), and the local currency cost at $32.4 million equivalent (68.9%) of the total cost Source ADB Government Beneficiaries Total Foreign Local Exchange Currency 14.6 20.4 0 10.3 0 1.7 14.6 32.4 Total Cost 35.0 10.3 1.7 47.0 Percent 74.4 21.9 3.7 100

Objectives

Cost Estimates

Financing Plan

ADB = Asian Development Bank.

v Loan Amount and Terms A loan of $35.0 million from ADB’s Special Funds resources will be provided. The loan will have a term of 32 years, including a grace period of 8 years, with an interest charge of 1% per annum during the grace period and 1.5% per annum thereafter. The loan will finance 74.4% of the total project cost. ADB will fund 100% of the foreign exchange cost (31.1% of the estimated total project cost), and $20.4 million equivalent of the local currency cost or about 62.8% of the total local currency cost. The remaining $12.0 million equivalent as counterpart financing (25.6% of the total project cost) will be provided by the Government ($10.3 million) and beneficiaries ($1.7 million). The Government will backstop any shortfall of beneficiary financing. Until 30 June 2010 31 December 2009 Ministry of Education (MOE) A project steering committee, chaired by the MOE secretary, will provide overall project guidance. A central project management office (PMO) will oversee day-to-day project implementation. Each province will have a provincial PMO to coordinate and account for all project activities occurring in that province. The SDPs will be submitted to the central PMO through the zonal education office and the provincial PMO. The provincial MOE and/or MOE must formally approve the SDPs before any facilities are provided to the schools. All ADB-financed goods and services will be procured in accordance with ADB’s Guidelines for Procurement. The central PMO will be responsible for all procurement. Supply contracts for goods estimated at $500,000 equivalent or more will be awarded on the basis of international competitive bidding. Supply contracts for goods less than $500,000, but more than $100,000, will follow international shopping procedures. Supply contracts of instructional materials less than $500,000, but more than $100,000, will follow local competitive bidding procedures. Minor items costing less than $100,000 equivalent may be procured by direct purchase. All civil works contracts under the Project will be awarded under local competitive bidding among prequalified contractors in accordance with the Government’s standard procurement procedures acceptable to ADB.

Period of Utilization Estimated Project Completion Date Executing Agency Implementation Arrangements

Procurement

vi Consulting Services The Project will provide 270 person-months of consulting services (108 international and 162 domestic) in the areas of (i) training of master trainers/facilitators for school-based training; (ii) courseware procurement and evaluation; (iii) curriculum development and assessment; (iv) library development in schools and training; (v) capacity development of provincial education offices; (vi) communications strategies and education management information systems for central and provincial ministries education; and (vii) social development, gender equity, and interethnic understanding. The Government will select and engage all ADB-financed consultants through a firm using quality and cost-based selection and in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. The Project will directly benefit approximately 1,100 of type 1AB and 1C schools that have not benefited from external assistance in the past. The Project will yield particular benefits for schools in disadvantaged areas and conflict-affected areas, by developing infrastructure, facilities, resources, management, teachers, and teaching and learning resources of the target schools up to an acceptable baseline level. The Project will benefit around 200,000 grade 10–13 secondary school students each year. In addition, other students in these schools will benefit from improved school facilities, enhanced school managerial capacity, and more motivated teachers. Approximately 825,000 students per year from 2005–2009 will benefit from the Project. Students in 2,300 secondary schools will benefit from system-wide support to devolve education management; reform to provide a more efficient assessment system; modernized curriculum; and enhanced capacity of provincial and zonal offices in education planning, management, and monitoring. Furthermore, the 800 schools supported under the ongoing Secondary Education Modernization Project (SEMP) will continue to benefit from the Project through training, monitoring and technical assistance. Key lessons from the SEMP and the World Bank-funded Second General Education Project are that facilities such as computers, multimedia units, or modern science laboratories will not be used and sustained if the Project fails to ensure (i) adequate teaching staff; (ii) up-front capacity development of end-users and beneficiaries; and (iii) commitment and ownership of provincial, zonal, and divisional school stakeholders. Moreover, the schools are expected to build a cost-recovery system for the computer learning centers.

Project Benefits and Beneficiaries

Risks and Assumptions

vii However, schools in poor communities, and those with less capacity in management may not be able to self-sustain. Furthermore, innovations such as school-based assessment and SBM need a continuing process of capacity development, awareness raising, and monitoring before integration into the system. The Government is committed to decentralizing education. However, accelerated decentralization could bring resistance and misunderstandings about the concept of decentralization or SBM, and fail to secure stakeholder commitment. Stakeholders may not have the capacity to implementing decentralization. The Project gives greater roles to zonal and divisional offices to facilitate and monitor school activities. However, developing the institutional framework is crucial to support the zonal and divisional stakeholders to assume new functions. Decentralized management systems also require a strong transparent accountability mechanism. The Project does not foresee any significant adverse social impact, and will ensure project benefits across gender and ethnic groups to mitigate any risk of exacerbating ethnic tensions. However, project interventions in target schools located in the conflict-affected areas may be affected by the conditions of the peace process. Selective inputs of modern education facilities may cause disparities among schools with different levels of absorptive capacity. Along with project implementation, continuous policy dialogue with the Government will be sought to find measures for a more equitable training, recruitment, and deployment system for teachers, as a key factor for increasing equity of access to quality secondary education across regions and ethnic groups.

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04'2270 HR

I.

THE PROPOSAL

1. I submit for your approval the following report and recommendation on a proposed loan to the Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project II. II. A. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORT UNITIES Performance Indicators and Analysis

2. Sri Lanka has achieved a human development index of 0.73, the highest in South Asia. However, despite gross domestic product growth of around 5% in the 1990s, economic development has mainly benefited the urban areas in Western, Central, and Southern provinces, and has not reached the rural areas in Uva and North Western provinces, where a high concentration of the poor live. Around 40% of the population is considered poor or vulnerable to poverty. Twenty years of civil conflict is the main source of poverty—a result of the destruction of homes and facilities, displacement of people, and diversion of public expenditure from economic and social development. The cease-fire agreement in 2002 changed the Government’s development strategy to a positive economic reform agenda, but at the same time, has brought immense challenges to restore infrastructure and services and eradicate poverty in the conflict-affected areas in the north-east region. On 2 April 2004, the country experienced its third parliamentary election in 4 years. The new Government, which assumed duties on 22 April 2004, has yet to firm its strategy for economic growth, poverty reduction, and long-term peace building in the country. 3. Education in Sri Lanka is free in government schools, which comprise 94% of the schools, and in state-run tertiary educational institutions. About 10,000 government schools educate around 4,000,000 students. Some achievements of the Sri Lankan education system are remarkable. The literacy rate of 92% is one of the highest in Asia, and enrollment in primary schooling is 95%, in lower secondary 85%. Females make up about 50% of the total student population. Virtually, all children attend school up to grade 11. 4. Despite positive achievements in basic education, the low investment in education results in disparities in the educational quality, and a low efficiency and capacity of the secondary system and above. Sri Lanka spends only 2.8 % of the gross domestic product on education compared with 3.5% on average in Asia. As a result, the pass rates at ordinary level (O level) and advanced level (A level) in the national examinations are very low. Only 40% of Olevel students qualify for A level. More than 50% of the candidates in O-level examinations in mathematics fail each year, while the failure rate for English is nearly 70%. Regional disparities in the pass rates are evident. While over 50% of students in Colombo qualify for A level, in the poorer districts such as Kilinochi and Nuwara Eliya, less than 30% qualify. Forty percent of Alevel candidates qualify for university, but only about 10% of those gain a place. The capacity of the state-run university system is so small that only 2% of the 20–25 age group is enrolled. 5. With 140,000 people entering the job market each year, and 70% of the unemployed between 14 and 25 years, the schools are obviously not preparing students for employment. Grade 11 school leavers do not have vocational skills and are not equipped to seek skilled work or engage in self-employment. Grade 13 school leavers also lack employment-related skills and, if unsuccessful in finding a place in the university system, tend to join the ranks of the unemployed. Labor market demand is largely in the area of information and communication technology (ICT), science, engineering, marketing, and English language skills. The

2 unemployment rate among those with A-level qualifications and above is 18% because the conventional education system does not meet the requirements of the labor market. The Government is committed to improving the quality of secondary education and to modernizing the system to meet labor market requirements.1 The project framework is in Appendix 1. 6. A major effort is required to support the Government’s effort to reconstruct the education system in the conflict-affected areas in the north-east region. Approximately 25% of schools were closed, and 15,000 classrooms in 500 schools were damaged, as were libraries, laboratories, water, and sanitation facilities. Displacement insecurity and poverty prevented children from going to school. About 50,000 school-age children are estimated to be out of school. The Project will pay special attention to reconstructing these areas in coordination with the North-East Community Restoration and Development Project (NECORD),2 which has a component for school rehabilitation in the conflict-affected areas. B. Analysis of Key Problems and Opportunities

7. The fundamental problem affecting secondary education is the lack of universal access to quality education. This, in turn, results in low efficiency of the system, as apparent in students’ poor performance in national examinations and employment perspectives. The sector and subsector analysis, including a problem tree, is in Appendix 2. 8. Inequity of Access to Quality Secondary Education. School disparities include infrastructure; libraries; laboratories; teaching and learning materials; teacher availability and capacity; school managerial capacity; and access to scientific and technical subjects, ICT, English language, and practical skills development. Type 1AB schools, which offer a full curriculum (science, arts, commerce) are usually well-equipped in terms of facilities and staff, and are located in urban areas. They constitute only 25% of the secondary schools, whereas type 1C schools, which offer limited curriculum (arts or commerce, or both) are smaller schools located in rural areas, and often lack basic facilities and capable teachers. Access to quality education is also affected by household income. Poor parents are unable to send their children to a better school in urban areas, and to pay private tuition to prepare for the national examination. Though the gender balance in participation in secondary education is good, the under-representation of girls in science streams remains as an issue. 9. The shortage and inequitable distribution of teachers across the country creates a major bottleneck for increasing equity of access to key subjects. The shortage of Tamil-speaking teachers in science, mathematics, and English limits schools in Tamil societies to introduce and strengthen teaching in key subjects such as A -level science, English, and practical subjects. The national teacher transfer policy, which allocates teachers equitably according to local needs, must be reviewed. Until now, this policy has not been followed effectively, and because of resistance from teachers to work in remote areas, a teacher surplus exists for large schools in urban areas, whereas schools in disadvantaged areas lack teachers.

1

2

Technical assistance was provided to prepare a project proposal. ADB. 2002. Technical Assistance to the Democratic Socialist Republic of Sri Lanka for Preparing the Secondary Education Modernization Project II (former School Computerization Project). Manila. ADB. 2001. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Democratic Socialist Republic of Sri Lanka for the North-East Community Restoration and Development Project. Manila. Funded by Asian Development Bank, Germany, Netherlands, and the Organization of Petroleum Exporting Countries Fund.

3 10. Education Management and School-Based Management. In 1987, the Government devolved education management to the provincial education authorities. However, the system is complex hierarchical and duplicates functions at different levels. The low capacity at the zonal and divisional offices hinders effective monitoring of education activities. The Government has attempted to devolve education management to the schools by introducing school-based management (SBM), where schools exercise managerial control of their activities through a school management council (SMC). The School Development Board Act was introduced in 1993, but was abolished in 1995 as it faced resistance from certain stakeholders who feared that it might lead to the privatization of public schools. Progress in introducing SBM has been slow since then, and a national concept of SBM has yet to be formulated. 11. The A ssessment System. The education system is examination oriented, but every year fails to produce an acceptable pass rate among students. The examination oriented system and lack of practical orientation in teaching and learning have led to the realization that more continuous assessment including practical work, projects, and assignments is needed. School-based assessment (SBA) has been introduced to the O-level curriculum. SBA marks are displayed on the O-level certificate, though they are not yet integrated into the O-level grade. SBA is currently being brought into the A -level syllabus. However, progress in establishing SBA is impeded by lack of monitoring and evaluation at zonal and divisional levels, and lack of belief among the public and teachers on the effectiveness of SBA. 12. Education for Postconflict Reconstruction. An important role for education in postconflict reconstruction is reconciliation and the rebuilding of social cohesion. In Sri Lanka, both the Sinhalese majority and the Tamil minority have expressed grievances based on relative deprivation of educational provision and opportunity. These perceptions of inequality and exclusion have been catalysts of conflict. Education reform should avoid reconstructing the system of exclusion that preceded the conflict. Therefore the following steps are crucial: increase equity of access to quality secondary education in the deprived areas; ensure that these areas are not excluded from the benefit of a modernized curriculum; and address the value-forming functions of schooling by developing curriculum content and teaching methods commensurate with the goal of shared values, social cohesion, and inclusive institutions. 13. The Government’s strategy is to modernize secondary education to enrich the labor market, giving particular emphasis to minimizing regional disparities and alleviating the disadvantages experienced in poor rural and conflict-affected areas. The Government is committed to recruiting more graduates from the rural areas as teachers, and is giving special attention to recruiting Tamil-speaking teachers in the north-east region. The Government has also introduced an incentive program for teachers working in very difficult rural areas. In 2001, a pilot project on SBM was introduced but was suspended after a change of government. In June 2004, a new committee was established within the Ministry of Education (MOE) to continue the work initiated in 2001 to develop a national consensus on SBM and to phase its introduction into the system. More emphasis is being given to developing the capacity of zonal offices. The Government is also committed to introducing continuous assessment and bringing a more practical orientation to teaching by making SBA an integral part of the overall assessment of O and A levels. The National ICT Policy in Education (2001) lays the foundation for human resource development to meet the global challenges in ICT, and creates conditions for effective use of ICT as a learning and teaching tool in school education. Information technology is compulsory at the O-level, and will be introduced at the A -level in January 2005. In July 2004, MOE signed a circular allowing schools to generate income by providing computer-learning services to the community after school hours.

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14. The Asian Development Bank (ADB) education strategy in Sri Lanka is consistent with the Government’s overall strategies for poverty reduction and economic growth. It supports targeted interventions to raise educational attainment of low-income groups and helps influence the advancement of curricula design to reflect the needs of a modern labor market. It promotes decentralization of education and institutional development at all levels to improve planning, monitoring, and service delivery of education. It builds upon progress and achievements of the ongoing Secondary Education Modernization Project3 (SEMP), with a goal of maintaining the momentum of innovation and modernization occurring in the secondary school system. 15. The biggest achievements of the SEMP to date are the establishment of computer learning centers (CLCs) in 474 schools, the strengthening of multimedia learning, and establishment of SBA at the O level. The SEMP targets a total of 800 schools or more for quality improvement. The World Bank-funded Teacher Education and Teacher Deployment Project supported the national colleges of education. The other World Bank-funded Second General Education Project (GEP 2) has supplied libraries, textbooks, and books, and trained teachers and principals. It also provided 400 schools with information technology centers. The SmallScale Infrastructure Rehabilitation and Upgrading Project (SIRUP) II funded by the Japan Bank for International Cooperation upgrades and rehabilitates schools nationwide. The World Bank is preparing an education sector review, the results of which will lead to the next lending program for general education. External assistance to the education sector is in Appendix 3. 16. Lessons Learned. The SEMP and GEP 2 have demonstrated that the introduction of modern subjects and teaching, such as ICT, A-level science, and multimedia learning, will simply not happen if schools are not ready to exploit and sustain the facilities for modern teaching. Essential conditions to ensure schools’ readiness are (i) availability of skilled teachers; (ii) ownership, capacity, and initiative of the school to maintain the facilities and fully integrate modern subjects and teaching methods; (iii) availability of basic school facilities; (iv) authorization for the schools to generate income from the CLCs after schools hours; and (iv) close monitoring from zone and divisional offices. Lessons learned show that some schools in the disadvantaged areas are more in need of basic facilities and skilled teachers than access to modern curriculum. Therefore, project investment should be carefully planned based on schoolspecific development needs. Furthermore, the SEMP has initiated SBA and introduced SBM, but further awareness raising and capacity building at all levels is needed before these innovations can be integrated into the system. Lessons learned from the SEMP, GEP 2 and Teacher Education and Teacher Deployment Project are summarized in Supplementary Appendix A. 17. Increasing Equity of Access to Quality Secondary Education. The priority will be to minimize disparities across regions, gender, and ethnic groups by upgrading all schools to an acceptable baseline standard, and equipping them with modern facilities where feasible. The strategy will be to build upon the progress of SEMP; build capacity of school stakeholders to sustain and maximize benefit of the facilities; provide closer monitoring and guidance by improving the capacity of zonal and divisional offices; and support implementation of key Government policies, such as the decentralization of education and SBM, assessment reform, curriculum modernization, and teacher training, recruitment, and transfer. The Project will coordinate with the NECORD and SIRUP II for school rehabilitation needs in the conflict3

ADB. 2000. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project. Manila.

5 affected areas. Special attention will be given to developing educational content that promotes interethnic understanding and social cohesion. III. A. Objectives THE PROPOSED PROJECT

18. The broad sector goal of the Project is to help establish a secondary education system that is equitable and responsive to labor market requirements. The specific objectives are to increase equity of access to quality secondary education, and improve the efficiency of the secondary education system. The Project will specifically target t e remaining approximately h 1,100 1AB and 1C schools that were not served by either the SEMP or GEP 2, and provide system -wide support to all 2,300 (type 1AB and type1C) secondary schools. B. Components and Outputs

19. The Project has three components: (i) improving quality of, and equity of access to, secondary education, (ii) strengthening the capacity of provincial and zonal offices, and (iii) supporting implementation of government policies and reforms in education. 1. Component 1: Improving Quality of, a Equity of Access to, Secondary nd Education

20. This component will ensure that all target schools that do not meet an accepted quality standard, defined by the Project as a baseline, will be supported by upgrading physical facilities, providing teaching-learning resources, strengthening teachers’ skills and principals’ managerial capacities, and small-scale school development grants (SDGs). This upgrading effort will ensure that every secondary school is capable of teaching the eight required O-level subjects in the curriculum. A needs analysis will be conducted to categorize each target school based on its unique priority development needs. Baseline conditions for secondary schools are in Supplementary Appendix B. In addition, at least one school per division (or two schools where the population is a mix of Sinhala and Tamil) will be upgraded to 1AB status, or improved to operational 1AB status. In areas where this is not possible because of lack of demand for A level science stream and science teachers, the school will be provided with modern teaching facilities . These upgraded or improved schools will provide opportunities to students from other schools in the area that lack teaching facilities for science, commerce, and ICT. Highest priority for upgrading schools to 1AB status will be given to the 61 divisions that have no 1AB schools. Before receiving any support, all target schools will be required to submit a school development plan (SDP) that includes a teaching plan and facility management plan. The school resource allocation procedure and funding formula is in Appendix 4. The criteria for SDPs are in Supplementary Appendix C. a. Upgrading Facilities and Providing Equipment

21. According to their needs, schools below the baseline conditions will be provided with (i) rehabilitation/renovation of classrooms and science laboratories, walls, roof, and partition walls or movable screens; (ii) a multipurpose activity room; (iii) classroom furniture, blackboard, display board, teaching aids, and a cupboard in each classroom; (iv) a library with adequate books, shelves, and other resources; (vi) electricity supply and telephone facilities; (vii) safe

6 drinking water; (vii) sanitary facilities; and (viii) science equipment. New construction will be carried out in limited cases. The Project will coordinate with the NECORD and SIRUP, so that the Project will provide inputs other than physical upgrades for the schools supported by the two projects. 22. Schools with more than 100 secondary (grade 10–13) students and that have access to electricity will be eligible to receive computer facilities, accessories, software, and ICT training, provided that the SDPs submitted by the schools demonstrate a capacity to manage the facilities. Computers and multimedia equipment will also be provided for the multimedia room associated with the library. Training for maintenance of the computer facilities will be provided both from the suppliers and the zonal facilitators. Subsidies will be provided for computer operating expenses for 2 years. b. Producing Teaching-Learning Resources, and Introducing Teaching Methods

23. Zonal trainers/facilitators will provide school-based training in innovative teaching methods, teaching-learning resource (TLR) production and use, and SBA techniques to teachers in 1,100 target schools. Teachers will also receive training on teaching methodologies that foster interethnic understanding. Training guides and manuals will be provided to teachers on SBA, innovative teaching methods, and TLR development. For schools receiving ICT facilities, training on computer-assisted learning (CAL) and special ICT learning guides with relevant exercises will be provided to both teachers and students. The zonal facilitators will be trained to monitor the development and use of CAL, innovative teaching methods, TLRs and the application of SBA practices by the teachers on a regular basis. Two hundred international fellowships will be provided to teachers and zonal facilitators to learn modern teaching approaches. Furthermore, educational software will be procured from international sources for core subjects in grades 10–13 and made available in three languages (English, Sinhala, and Tamil). By translating and contextualizing relevant software packages into Sinhala and Tamil, students will be able to learn subject content in three languages. Schools supported under SEMP schools will also benefit from training and monitoring from the zonal facilitators. c. Building Capacity and Providing Special Support Programs for Schools and Students

24. Capacity of the schools to prioritize, plan, and manage resources and learning activities will be developed through training on SBM and leadership for principals, teachers, and school development societies (SDSs)4, or SMCs as appropriate. The zonal facilitators will provide the training, including methodologies for preparing and implementing a comprehensive SDP. 25. Poor students in disadvantaged and conflict-affected areas, who are qualified to attend A-level science or commerce classes will be provided with stipends to attend a nearby 1AB school. The stipend program will help students pay for additional travel costs and school-related expenses such as fees, books, and lodging. Stipends will be provided to approximately 12,000 students per year over a 4-year period. Qualified students from type 2 schools (which cover

4

SDSs will be gradually replaced by SMCs.

7 grades 1–11) will be also eligible to attend a 1AB school or 1C school (for commerce). The criteria for the school stipend program are described in Supplementary Appendix D. 26. A pilot project will be conducted to hire 100 graduates with national diplomas in ICT or equivalent to provide technical assistance to about 500 schools on a cluster basis, particularly in rural areas. The pilot project will be implemented in the first 3 years of the Project to ensure that computer resources are fully utilized by the schools with minimum interruptions during the startup period. In addition, to help students learn information technology, at least 25 ICT learning guides containing relevant exercises and assignments will be provided to each school (available in three languages, depending on each school's requirements). The Project will also support the training of at least 1,000 teacher-librarians in ICT usage, web-based learning, computerassisted learning, and library management including computerization of library resources. This subcomponent will support the training of principals and teachers at each school in career guidance, counseling techniques, and career center operations as a follow-up to activities under the SEMP. This will include awareness-raising on gender-based constraints in education and training school stakeholders to encourage greater participation of girls in science streams. 27. A teaching incentive program to attract teachers to serve 4 years in rural and underprivileged areas will be implemented. Allowance will be offered to 200 teachers in English, mathematics, science, technical subjects, and ICT. The pilot program will be implemented in Uva Province, which has a large geographic disparity of teachers, with teachers concentrated in urban areas. Selected teachers should have at least 5 years teaching experience. 2. Component 2: Strengthening the Capacity of Provincial and Zonal Offices

28. Activities are directed at strengthening the skills and competencies of provincial and zonal offices so that their staff can exercise greater supervision and monitoring of school activities. Principals, teachers, and SDSs will be trained in key areas such as SBA, SBM, TLR production, student counseling, and innovative teaching methodologies. The management capacity of provincial departments of education will be strengthened by providing international and domestic education system management consultants to work with the individual provincial training development units (PTDUs) for fixed periods. a. Strengthening Zonal Offices

29. A cadre of 3–5 trainers/facilitators will be developed in each zone to specialize in innovative teaching methodologies, SBM and educational leadership, ICT-based pedagogy, TLR production, and SBA. Special attention will be given to teaching methodologies that foster intercultural and interethnic understanding. These facilitators will be responsible for about 10 project schools in a given zone, and will conduct school-based training for principals, teachers, SDSs, (or SMCs) in their specialized areas on a year-round basis. A train-the-trainer program will be implemented by initially training a core of master trainers who in turn will train zonal officers, In-Service Advisers (ISA)s, and divisional directors to become facilitators capable of (i) helping schools prepare SDPs; and (ii) training principals, teachers, SDSs, and SMCs in identified key areas. Indicative criteria for selecting zonal facilitators are in Supplementary Appendix E.

8 b. Strengthening Provincial Offices

30. The role of provincial departments is to provide strategic guidance to zonal education offices and monitor overall system performance. To support the development of provincial offices, this subcomponent will implement a train-the-trainer program to train senior and middle management of provincial ministries of education in SBM and educational leadership. To facilitate the training, the Project will provide one domestic education management consultant to each province for 1 year to provide advice and oversee training of provincial, zonal, and divisional offices. The consultant will work within the PTDU and provide training to provincial and zonal personnel on SBM, human resource management, and education system management. In addition, the Project will provide one international education management specialist to each PTDU for a limited period. 3. Component 3: Supporting Implementation of Government Policies and Reforms

31. This component will support Government policies to make the education system more efficient and effective. Activities include improving the operations of national institutions such as the National Evaluation Testing Services (NETS), strengthening coordination between MOE and the provincial authorities, mainstreaming SBM in the system, and developing schools’ capacities to become more self-reliant. Research; pilot studies; and public awareness programs in key reform areas such as decentralization of education, SBM, SBA, public-private partnership in education, and curriculum development will be part of the component. a. Supporting Decentralized Education Management

32. To support the implementation of SBM in the education system, this component will implement a pilot initiative to establish and run 100 SMCs with provision of small start-up grants. The grant will help a given SMC to get started and perform its functions and duties over 3 years. Zonal facilitators will be employed to monitor program implementation and facilitate the start-up and operation of each SMC over the trial period. The results of this pilot initiative will provide information to the Government on how SMCs can be effective administrative bodies in the system. This subcomponent will support the Government’s strategy to strengthen school management and leadership in the school system. Zonal facilitators will be employed to train school principals, teachers, SDS representatives, and SMC members in SBM and education leadership techniques. In addition, the trainers will implement an effective public awareness program on SBM. The Project will also provide school-based training for principals on using ICT for managing the school and implementing SBM. Zonal trainers will monitor and evaluate the implementation of SBM in the schools over 4 years, and advise the principals, SDSs, and SMCs on a consistent basis. The principals are expected, in time, to gain more confidence and skill in using the computer as a tool for managing and administering the school more effectively. This subcomponent will provide school-based training for approximately 1,000 school principals and members of SDSs and SMCs. Indicative plans for piloting the SMC start-up program and mainstreaming SBM are in Supplementary Appendix F. b. Developing School Partnerships and Sustainability

33. This subcomponent will support Government policies on promoting efficient generation and utilization of funds in the schools by implementing a train-the-trainer program to develop a

9 team of local experts that can advise SMCs on procedures and mechanisms for financing and sustaining school operations, including ways of developing partnerships with the private sector, community groups, and other schools. The local experts will work directly with schools and help them prepare sustainability measures as part of the SDP. Funds could be generated by operating the CLCs after hours and offering ICT training courses to the community. By year 4, the Government will evaluate the partnership program, incorporating lessons learned from the SEMP, and develop an action plan for public-private partnerships in education. c. Streamlining the National Examination System

34. This subcomponent will build on the progress of the SEMP and provide consulting services to NETS on ways to improve and streamline the national testing and evaluation process, including computerization of operations and evaluation results. It will strengthen the capacity of NETS to integrate SBA results into the national examination system. SBA marks will be integrated into the student’s final grades for both the O and A-level certificates after year 3 of the Project. This will be achieved as SBA takes root in the system and the reliability of SBA is accepted by the public. The Project will implement awareness programs for principals, parents, and zonal monitoring panel members to orient them to the objectives, modalities, and expected outcomes of SBA. Also, curriculum specialists from the National Institute of Education (NIE) and test development specialists from NETS will work together and develop a comprehensive SBA system covering grades 6–13. d. Modernizing the Curriculum

35. The Project will support NIE to develop eight options within the technical studies subjects in the core curriculum of O-level options to provide alternative vocational courses that initiate students into specific occupations in the agricultural, industrial, and service sectors of the economy. Furthermore, the Project will support NIE in developing a civics curriculum that promotes interethnic understanding and reconciliation. This will build upon work initiated under MOE to establish an inclusive curriculum development process. e. Building Capacity of the Ministry of Education

36. This subcomponent will strengthen the capacity of MOE to develop procedures and mechanisms for creating stronger linkages and coordination with the provincial and zonal authorities. MOE’s capacity to conduct monitoring and evaluation activities on a consistent basis at all levels will be strengthened. Ten study tours for project management office (PMO) and MOE technical staff per year will be provided in the fields of civil works, project management, education system management, monitoring and evaluation, and financial management. 37. The Project will build upon work started under the GEP 2 and SEMP to introduce Egovernance to the education system, including the design and piloting of an education management information system (EMIS) to improve school administration at institutional, district, zonal, and ministerial levels. The Project will provide consulting services and training for MOE staff in piloting the additional phases of EMIS implementation. The adoption of EMIS nationwide will take several years to complete, and the Project will support the initial piloting of an information system linking MOE with all provincial and zonal offices in the country.

10 C. Special Features

38. Decentralization and Institutional Development. The Project promotes decentralization policy implementation by giving greater roles in education planning, management, and monitoring to provinces, zones, divisions, and stakeholders at the school level. It supports institutional development at zone and school level, by giving a larger share of technical assistance, training, and staff development to the zonal offices and school personnel. Piloting the SMC start-up grant, preparing SDPs, and managing SDGs will help raise awareness on SBM and build schools’ self-management capacity. The establishment of pools of zonal facilitators to conduct on-site facilitation and monitoring of schools' activities will strengthen the roles of zonal offices and provide greater technical support to teachers and principals. The provincial education departments will have full-time PMOs and will play a greater role in project planning and management, such as selecting target schools and prioritizing project inputs in their own provinces. 39. School Development Plans. The SDPs will serve two purposes: (i) develop leadership and self-management capacity of schools and SMC members, including cost-recovery measures to enable the school to become more financially self-reliant; and (ii) provide teaching and facility management plans that show commitment and readiness from stakeholders at all levels to exploit and sustain facilities and financial support provided by the Project. The SDPs will be prepared by the schools and SMCs as appropriate, and should be approved by zone and provincial education offices, and MOE. No physical facilities or financial support will be provided to the schools without the submission and approval of the SDP. 40. Continuity between the SEMP and the Project. Development in the subsector is a continuing process. To maintain the momentum of innovation and modernization initiated by the SEMP, the two projects will be seen as phased investments within a long-term development strategy for secondary education. The PMO established for the SEMP will continue working under the Project. The SEMP will provide preparatory activities such as the needs analysis of the target schools, and up-front capacity-building activities such as awareness raising of the provincial and zonal stakeholders, and training of zonal trainers/facilitators. Target schools supported by the SEMP will continue to be supported under the Project through the provision of training, monitoring and technical assistance. 41. Building Social Cohesion. Support for the role of education in reconciliation and building of social cohesion is reflected in each project component. Teaching methodologies, curriculum content, and SBA that foster interethnic understanding and development of civic education will be promoted. D. Cost Estimates

42. The total cost of the Project is estimated at $47.0 million equivalent, including taxes, duties, interest charge on the ADB loan, and physical and price contingencies. The foreign exchange cost is estimated at $14.6 million (31.1%), and the local currency cost at $32.4 million equivalent (68.9%) of the total cost. A summary of the cost estimates is given in Table 1. Detailed cost estimates and the financing plan are in Appendix 5.

11 Table 1: Cost Estimates ($ million) Foreign Exchange 10.3 1.7 0.5 0.3 0.0 12.7 0.6 0.4 1.0 0.9 14.6

Category A. Base Costsb 1. Improving Quality of and Equity of Access to Secondary Education 2. Strengthening the Capacity of Provincial and Zonal Offices 3. Supporting the Implementation of Government Policies and Reforms 4. Project Implementation 5. Taxes and Duties c Subtotal (A) B. Contingencies 1. Physical Contingencies d 2. Price Contingencies e Subtotal(B) C. Interest Chargesf Total
a b

Local Currency 22.5 0.4 0.1 1.3 2.6 27.0 1.4 4.0 5.4 0 32.4

Total Cost 32.8 2.1 0.6 1.6 2.6 39.7 2.0 4.4 6.4 0.9 47.0

Exchange rate of SLRs100 = $1 has been used throughout the project period. Base costs are as of February 2004. c Computed at 10% for civil works and furniture and learning materials, and 15% for equipment. d Physical contingencies are estimated at 5% for all categories. e Price contingencies are estimated at an annual factor of 1.53 % (2005) and 0.89 % (2006/09) for foreign exchange costs, and 6.0 % (2005), 5.0 % (2006), 4.5 % (2007) and 5.0 % (2008/09) for local currency costs. f Interest charges are computed at annual rate of 1% (semiannual compound rate of 0.5%). Source: Asian Development Bank estimates.

E.

Financing Plan

43. The Government has requested a loan of $35.0 million equivalent from ADB’s Special Funds resources to help finance the Project. The loan will have a term of 32 years, including a grace period of 8 years, with an interest charge at the rate of 1% per annum during the grace period and 1.5% per annum thereafter. The Government has provided ADB with (i) the reasons for its decision to borrow under ADB’s Special Funds resources on the basis of these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB. 44. The loan will cover 74.4% of the total project cost. ADB will fund 100% of the foreign exchange cost (31.1% of the estimated total project cost), and $20.4 million equivalent of the local currency cost or about 62.8% of the total local currency cost. Interest during construction will be capitalized as indicated in Table 1. The remaining $12.0 million equivalent as counterpart financing (25.6% of the total project cost) will be provided by the Government ($10.3 million) and beneficiaries ($1.7 million). The Government will provide for local currency costs of civil works. SDSs or SMCs will provide $1.7 million equivalent for operational expenditures for the multimedia rooms, libraries, and computer-learning rooms (electricity charges, Internet charges, school security, library books, and allowances for zonal training specialists/facilitators), and inkind labor contribution for civil works. The Government will backstop any shortfall of beneficiary financing. The financing plan is summarized in Table 2.

12 Table 2: Financing Plan ($ million)a Foreign Local Exchange Currency 14.6 20.4 0 0 14.6 10.3 1.7 32.4

Source Asian Development Bank Government Beneficiaries b Total
a

Total Cost 35.0 10.3 1.7 47.0

Percent 74.4 21.9 3.7 100

Exchange rate of SLRs100 = $1 has been used throughout the project period. b School development societies and/or school management councils. Source: Asian Development Bank estimates.

F. 1.

Implementation Arrangements Project Management

45 As Executing Agency, MOE will have overall responsibility for project coordination and implementation. A project steering committee will provide overall guidance to the Project, monitor its activities and outputs, provide feedback to the PMO, and help coordinate and liaise with other government agencies and departments. Chaired by the MOE secretary, the steering committee will comprise representatives from MOE, External Resources Department of the Ministry of Finance, National Planning Department, NIE, NETS, provincial ministries of education, and National Education Commission. 46. The central PMO will oversee day-to-day project implementation, and consist of a project director and staff appointed by MOE. The project director will be a member of project steering committee and report directly to it. Five specialists for administration and finance, educational development, procurement, engineering and civil works, and benefit monitoring and evaluation will assist the project director. One of the staff should also have expertise in social development, gender, and interethnic understanding. The Project will provide support staff, equipment, and operating expenses for the PMO. The PMO will have overall responsibility for project planning, budgeting, monitoring, reporting, supervision of various studies, and coordination with provincial and zonal authorities. The PMO will coordinate the work of the consultants. To ensure continuity between the SEMP and the Project, PMO staff under the SEMP will be retained, subject to their satisfactory performance. Through SEMP implementation, MOE has demonstrated sufficient financial management capacity to implement the Project. 47. Each province will have a provincial PMO staffed by a provincial project manager and a secretary. They will be attached to the provincial department of education and be supported with a transportation and operational budget. Each provincial PMO will have specific responsibilities to coordinate and account for all project activities occurring in the province and will report to the central PMO. In particular, the provincial PMO will help the zonal officers compile the list of school needs, prepare the provincial priority list for school resource allocation, manage and disburse the SDG, and investigate and attempt to resolve complaints concerning the Project at the subprovincial level. The overall project management structure is presented in Appendix 6. A project implementation mechanism is described in Supplementary Appendix G. 48 School Development Planning Process. The schools and SMCs, as appropriate, will prepare the SDPS, guided by the zonal facilitators. Prior to SDP preparation, schools will

13 receive extensive training in SBM. The schools will submit the SDP to the zonal education office, which will review the SDP and approve it before submission to the provincial PMO. The provincial PMO will submit the SDP for approval of the provincial MOE, except for the SDPs of national schools, which MOE administers directly, and which MOE will approve. The provincial PMO will then send the SDPs to the central PMO, which submits the SDPs to MOE for formal approval. Once approved, the central PMO will proceed with procuring civil works and equipment. The provincial PMO will disburse the annual allocation of the SDG. Zonal facilitators will be responsible for monitoring civil works, provision of equipment, training, and implementation of activities by the schools. The provincial and central PMOs will conduct random compliance monitoring of the schools. The zonal education office will submit the school monitoring reports to the central PMO through the provincial PMO. The provincial and central PMOs will closely monitor that no school receives physical facilities or SDG without an approved SDP. All stakeholders will receive adequate training in their respective roles and functions. The school planning process and the training plan are in Supplementary Appendix H. 49. A complaint investigation and resolution mechanism will be established within the MOE’s Internal Auditors Department. This mechanism will be responsible for (i) reviewing and addressing complaints from end-users, beneficiaries, and other project stakeholders in relation to any project component, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (ii) establishing the threshold criteria and procedures for handling such complaints, including publicizing the mechanism, and for proactively and constructively responding to them. A full-time MOE professional staff member will be dedicated to the unit and report directly to the MOE secretary. 2. Implementation Period

50. The Project will be implemented over 5 years from early 2005 to December 2009. The PMO will be made fully operational by December 2004.The indicative implementation schedule is in Appendix 7. 3. Procurement

51. All ADB-financed goods and services will be procured in accordance with ADB’s Guidelines for Procurement. All civil works contracts under the Project will be awarded under local competitive bidding among prequalified contractors in accordance with the Government’s standard procurement procedures and other requirements satisfactory to ADB. Civil works will be financed by ADB, Government, and beneficiaries. The PMO will be responsible for all procurement. The indicative procurement package is in Appendix 8. a. Civil Works

52. Civil works will involve the development of physical infrastructure and facilities of 1C and 1AB schools that are below the baseline conditions. Civil works will include upgrading or installing a library, science lab, and activity room. It will also include partitioning classrooms, providing drinking water, and constructing toilets where required. The provincial PMOs will be responsible for monitoring quality, costs, and implementation. They will ensure quality standards for water supply and toilet facilities to minimize environmental impact. Schools that have been rehabilitated by other projects such as the NECORD and SIRUP II will not be included in the civil works under the Project, unless justified as an essential need for the school.

14 b. Equipment and Materials

53. Supply contracts for goods estimated at $500,000 equivalent or more will be awarded on the basis of international competitive bidding. Supply contracts for goods such as vehicles, software, and computers less than $500,000, but more than $100,000, will follow international shopping procedures. Supply contracts for locally available instructional materials of less than $500,000, but more than $100,000, will follow local competitive bidding procedures. Minor items costing less than $100,000 equivalent may be procured by direct purchase. 54. The Project will finance the procurement of standard packages of science equipment for teaching O-level science and technology, and basic equipment for activity rooms to enable schools to offer technical options within technical studies. In addition, the Project will finance the purchase of grade 12–13 science kits for those schools being upgraded from 1C to 1AB status. Basic sets of audiovisual equipment will be purchased for multimedia rooms. Computers, printers, uninterrupted power supplies, and air conditioners will be purchased for the CLCs, which will include at least one computer with CD-RW/DVD-ROM combination drive. Furniture will be purchased as part of upgrading schools to acceptable standards. 55. The Project will finance the purchase of library books, print-based materials, and educational courseware for libraries. Subject-specific software for O- and A-level English, mathematics, science, and technical studies will be procured from international suppliers who can deliver the software in three languages (English, Sinhala, and Tamil). Other educational courseware that will be purchased includes curriculum -free software such as Encarta, Encyclopedia Britannica. ICT learning guides for both teachers and students will be purchased. As the estimated package costs are less than $500,000, procurement will be made in accordance with the ADB’s Guidelines for Procurement, and procedures will follow international shopping or direct purchase as applicable. Career guidance materials and student counseling and evaluation tests may be procured locally in accordance with the Government’s standard procedures acceptable to ADB. 4. Consulting Services

56. The Project will provide 270 person-months of consulting services (108 international and 162 domestic). International consultants will be needed for (i) training master trainers in key areas such as SBA, SBM, TLR development, ICT-based pedagogy, and innovative teaching methods; (ii) courseware procurement and evaluation; (iii) curriculum development and assessment; (iv) library development and management; (v) management capacity building for provincial offices and the PTDUs; and (vi) EMIS. Domestic consultants will (i) help the international consultants plan and deliver the training, and (ii) support the international education management specialists working within the PTDUs. A domestic consultant in social development will help the PMO ensure promotion of gender equity and interethnic understanding. The Government will select and engage all ADB-financed consultants through a firm using quality and cost-based selection and in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. The required consulting services and the outline terms of reference are in Appendix 9. 5. Staff Development and Training

57. Extensive in-country and limited international training will be provided under the Project with a total of about 314,800 in-country training person-days and about 9,590 international

15 training person-days. Selection of candidates for all training will follow the Government’s general guidelines on training under development-funded projects. ADB approval will be required before the award of international fellowships. ADB will be provided with a lst of (i) the nominated i candidates, (ii) their qualifications, and (iii) detailed cost of the proposed courses. Candidates for international fellowships from zonal offices should not be more than 52 years of age. Teachers selected for international fellowships will have served for a year in schools in difficult areas 5 prior to the training and will serve for 2 more years after the training. The staff development and training plan is in Appendix 10. 6. Disbursement Arrangements

58. To expedite implementation through the timely release of ADB’s share of funds for eligible expenditures, an imprest account will be established in the Central Bank of Sri Lanka in Colombo. It will be managed and liquidated in accordance with ADB’s Loan Disbursement Handbook, and detailed arrangements agreed to by the Government and ADB. The initial deposit to the imprest account will not exceed 10 percent of the loan or the future 6 months estimated expenditures, whichever is less. Statement of expenditures procedures in accordance with ADB’s Loan Disbursement Handbook will be used for individual payments not exceeding $100,000. The imprest account and statement of expenditures procedures will be audited as part of the regular audit of the Project’s account and financial statements. The audit opinion on the imprest account and statement of expenditures should be set out separately. In the case of the SDGs, which will be disbursed by the provincial PMO, the Government will advance funds from its own budget to the provincial PMO. The provincial PMO will submit expenditure details to the central PMO, which will reimburse the Government from the imprest account. ADB will replenish the imprest account when the central PMO submits a withdrawal application for replenishment that incorporates project expenditure including the SDGs. All other expenditures will be made through the imprest account managed by the central PMO. 7. Accounting, Auditing, and Reporting

59. The Government, acting through MOE, will maintain records and accounts adequate to identify goods and services financed from the loan proceeds. The Government will ensure that each Provincial Council maintains adequate records and accounts for the Project. MOE will maintain separate accounts for the Project and ensure that accounts and financial statements are audited annually by independent external auditors acceptable to ADB. The auditor’s report and copies of the certified accounts and related financial statements, including the auditor’s opinion on the use of loan proceeds, com pliance with loan covenants, and use of the imprest account under ADB’s statement of expenditures procedure, will be submitted to ADB in English not later than 9 months after the close of the Government’s fiscal year. The independent external auditing services will be financed from the loan proceeds. 60. The PMO will prepare quarterly reports on project implementation and submit them to ADB within 30 days after each quarter. The reports will be in a format acceptable to ADB and indicate (i) progress against established targets, (ii) status of performance indicators, (iii) problems encountered and steps taken to resolve the problems, (iv) compliance with loan covenants, and (v) program activities proposed for the following quarter. Within 3 months after project completion, the PMO will prepare a project completion report and submit it to ADB describing project implementation, accomplishments, benefits, and impact.

5

Based on the list of schools in difficult areas provided by MOE.

16 8. Project Performance Monitoring and Evaluation a. Annual Operational Plans

61. By December of each year of project implementation, MOE will provide ADB with an annual operating plan for the following fiscal year. The plan will include (i) data on the proposed allocations to secondary education; (ii) status of agreed-upon policy reforms and covenants; (iii) fully costed project activities proposed for each subcomponent, with performance targets; and (iv) a list of secondary schools targeted for upgrading during the year. The plan will also provide estimates of the operation and maintenance budget and ensure that adequate counterpart funds are provided. b. Monitoring and Evaluation

62. An adequately developed monitoring and evaluation system will be installed in MOE and accessed through the PMO. It will monitor and evaluate implementation performance, improve management information, and assess the impact of the Project on improving the secondary education system. Project performance monitoring will focus upon project implementation plans and targets, and their execution and achievement. For monitoring and measuring project performance, accurate indicators will be used such as school enrollments; deployment of science teachers to underprivileged regions; examination results including SBA; implementation of SBM in target schools, and the extent of school-based training for principals and teachers. The central PMO will monitor project activities, using data and feedback from the provincial PMO, and data received from consultants and other institutions such as NETS and NIE. 63. MOE will monitor and evaluate the outcomes of the Project after completion, in accordance with the schedule and terms of reference to be agreed, upon by the Government and ADB. Performance evaluations will examine the impact of project interventions: (i) bringing schools below the baseline conditions up to the accepted standard; (ii) improving science labs, activity rooms, and libraries; (iii) providing ICT resources to schools in rural and conflict-affected areas; (iv) deploying more science teachers to rural areas; (v) supporting the start-up of SMC; and (vi) developing a cadre of zonal facilitators in each zone. 9. Project Review

64. ADB and the Government will conduct a semiannual review of project performance. The review will include an examination of the budgetary allocations, operation and maintenance costs, staffing and other incremental requirement costs, implementation arrangements, and achievements under the Project. The review includes assessing progress in each component, identifying difficulties and constraints, and determining ways to overcome them. 65. The Government and ADB will jointly conduct a midterm review during the third year of implementation. The review will (i) review the scope, design, and project implementation arrangements; (ii) evaluate pilot programs; (iii) assess performance against targets and benchmarks; (iv) review lessons and experiences in secondary education development focusing on SBA, SBM, infrastructure and facilities development, school development planning, and teaching and learning methods; (v) review compliance with the loan agreement; and (vi) recommend changes in project implementation if required.

17 IV. A. Project Benefits PROJECT BENEFITS, IM PACTS, AND RISKS

66. Educational Benefits. The Project will directly benefit approximately 1,100 type 1AB and 1C schools that have not benefited from external assistance in the past. The Project will benefit around 200,000 grade 10–13 secondary school students each year. In addition, other students in these schools will benefit from improvements in school facilities, enhanced school managerial capacity, and more motivated teachers. The total school population that will benefit from the Project is approximately 825,000 students per year from 2005–2009. The students in the 1,100 schools will benefit from improved teaching methods, continuous assessment of their learning by teachers, modern school libraries, improved access to science and technical subjects, improved career guidance services, relevant subject-specific software in three languages, and a more practical orientation to the curriculum. Students in all 2,300 secondary schools will benefit from system-wide support to devolve education management; reform of the assessment system; modernized curriculum; and enhanced capacity of provincial, zonal, and divisional offices in education planning, management, and monitoring. Furthermore, the 800 schools supported by the SEMP will continue to benefit from the Project through training, monitoring and technical assistance. 67. Social Benefit and Impact on Peace Building, Reconciliation, and Social Cohesion. Recognizing the importance of addressing social disparities in peace-building situations, the Project will help improve equity of access to quality secondary education by creating better educational opportunities for students in disadvantaged areas. It will support peace building by promoting and facilitating interethnic understanding and social cohesion in the education system, through initiatives, such as: (i) recruiting Tamil-speaking ICT technicians to help schools in the north-east implement their ICT programs; (ii) ensuring that at least 25% of the zonal facilitators are Tamil speaking; (iii) supporting NIE in the development of civics curricula that promotes intercultural understanding and reconciliation; (iv) requiring the zonal facilitators to provide school-based training in teaching approaches that foster understanding between ethnic groups; (v) promoting the learning of English as a link language by providing English as a second language educational software; (vi) promoting the use of three languages in the CLCs by providing subject-specific software in English, Sinhala, and Tamil; and (viii) recruiting trilingual provincial project managers. A detailed description on the impact on peace building, reconciliation, and social cohesion is in Appendix 11. 68. Impact on Poverty and Gender Mainstreaming. The Project will yield particular benefits for students in disadvantaged and conflict-affected areas by focusing on upgrading all target schools that are below the acceptable baseline conditions . Fifty percent of the target schools are located in the poorest seven districts6 and the north-east region. The Project will ensure benefits to poor students by providing stipends to 48,000 students. The Project will contribute to increased O- and A -level pass rates in the most disadvantaged areas, which in turn will lead to greater income opportunities. Gender-based stereotypes in secondary education will be addressed through awareness raising at all levels. 69. Economic Benefit and Financial Sustainability. Economic benefits of the investment in secondary education can be measured by potential increases in wages due to higher educational achievement of the graduates. The Government is committed to improving the quality of secondary education, and increasing its efficiency to meet requirements of the labor
6

Those are the dis tricts of Badulla, Hambantota, Kegalle, Kurunegala, Matale, Monaragala, and Ratnapura, which have more than 30% of poor households according to the Department of Census and Statistic’s survey in 2002.

18 market. A system-wide upgrade, with a special focus on minimizing educational disparities across regions is expected to contribute to an increase in the pass rates at O and A levels. The Project will also respond to the Government’s strategy to modernize the secondary curriculum with an emphasis on science and technology, English, and ICT; and a practical orientation that meets labor market demand. An improvement in the pass rate of O and A levels, and a more practical orientation will lead to better employment and income perspectives. 70. The Government has provided free formal education from primary to university since the mid-1940s. The general education budget has averaged 83.5% for recurrent expenditure and 16.5% for capital expenditure. The project cost will be equivalent to about 25% of the total capital budget from the second year to the rest of the project life. This will have minimum impact on the total capital budget. The Project minimiz es capital investment in new buildings, but upgrades or rehabilitates existing facilities. Beneficiaries are expected to contribute in-kind labor for rehabilitation work. The Government has given assurance that it will provide operation and maintenance costs after the implementation period for certain activities initiated and facilities provided by the Project. The incremental recurrent cost for 7 years after project completion is estimated at approximately 0.3 % of the annual total general education budget, or 2.2 to 3% of the annual capital budget, and is considered sustainable. The Project includes measures to increase ownership of the schools and build their capacity for cost recovery. A summary economic and financial analysis is in Appendix 12. B. Project Risks

71. Sustainability of Project Investment. The SEMP and GEP 2 demonstrate that facilities such as computers, multimedia units, or modern science laboratories will not be used and sustained if the Project fails to ensure (i) adequate teaching staff; (ii) up-front capacity development of end-users and beneficiaries; and (iii) commitment and ownership of province, zone, division, and school stakeholders. Moreover, the schools are expected to build costrecovery system for the CLCs. However, schools in poor communities may not be able to selfsustain. Innovations such as SBA and SBM need a continuing process of capacity development and monitoring before they can be integrated into the system. The Government h given as assurance that it will finance incremental recurrent cost for 7 years after project completion. External factors such as political change and changes in project management may affect sustainability of the Project. 72. Decentralization. The Government is committed to decentralizing education and SBM. However, accelerated decentralization may bring resistance and misunderstanding about the concept of decentralization and SBM, and fail to secure stakeholder commitment. Stakeholders may not have the capacity to implement decentralization. The Project gives greater roles to zonal offices to facilitate and monitor school activities. However, developing the appropriate institutional framework will be crucial to supporting the zonal and divisional stakeholders to assume new functions. A decentralized management system would also entail a strong and transparent accountability mechanism 73. Social and Environmental Measures. The Project does not foresee any significant adverse social impact, and will ensure benefits across ethnic groups to mitigate any risk of exacerbating ethnic tensions. However, project interventions in target schools located in the conflict-affected areas may be affected by the conditions of the peace process. Selective inputs of modern education facilities may cause disparities among schools with different levels of absorptive capacity. The summary poverty reduction and social strategy is in Appendix 13 and the summary ethnic minority development framework in Appendix 14. Civil work for construction

19 of new classrooms and laboratories will be minimal; no adverse environment impact is anticipated. The impact of such construction work on individual and communal properties has been reviewed. No individuals/households will be displaced. Supplementary Appendix I provides a resettlement framework. V. A. Specific Assurances ASSURANCES

74. In addition to the standard assurances, the Government has given the following assurances, which form the basis for the covenants incorporated in the Loan Agreement: (i) (ii) Within 3 months of loan effectiveness, the Government will ensure MOE establishes a complaint investigation and resolution mechanism within MOE’s Internal Auditors Department; Within 3 months of loan effectiveness, the Government will have obtained a letter of commitment from each provincial council agreeing to implement the Project in their respective province and agreeing to implement the terms and conditions of the Loan Agreement to the extent within their responsibility; Within 6 months of loan effectiveness, the Government will ensure each zone to provide a letter of agreement and acknowledgement to each provincial council agreeing to implement the Project in their respective zone and to carry out the activities requested by the provincial council; Within 6 months of loan effectiveness, the Government will prepare a review and synthesis of its policy on decentralization in education, and develop a series of action plans for implementing decentralization of education. The Government will define a clear concept of SBM, and conduct public awareness programs on SBM; Within 6 months of loan effectiveness, the Government will have prepared a review of the incentives and disincentives for teacher transfers to rural and disadvantaged areas; and developed a series of comprehensive action plans for improving teacher transfer to such areas; Within 6 months of loan effectiveness, the Government will have developed and implemented a series of comprehensive action plans to mainstream ICT education in secondary schools; Within 1 year of loan effectiveness, the Government will begin implementation of the school management council pilot program, the teaching incentive pilot program, and the national diplomas in ICT pilot program under the Project. No later than the midterm review, the Government and ADB will evaluate the impact of each. Based on the findings , the Government will continue to fund these programs from its own resources after completion of the pilot programs; Within 2 years of loan effectiveness, the Government will have introduced practical subjects within O-level technical studies and A-level technical studies; Within 2 years of loan effectiveness, the Government will (a) have implemented and will evaluate the public-private partnership program for school development under the SEMP II, and (b) make recommendations for an action plan on publicprivate partnerships that include a definition of the concept of public-private partnership in secondary education; Within 3 years of loan effectiveness, the Government will have integrated SBA into O and A level national examination certification; and NIE and NETS will have established a working committee to develop a comprehensive SBA system that covers grades 6–13;

(iii)

(iv)

(v)

(vi) (vii)

(viii) (ix)

(x)

20 (xi) Within 4 years of loan effectiveness (a) the Government and ADB will evaluate the impact of stipend programs provided under the Project; and (b) the Government will, based on the findings of the evaluation, fund these stipend programs from its own resources after project completion; The Government will ensure implementation of the gender action plan and the ethnic minority development framework; The Government will ensure that no civil work, equipment or financial support is provided to any school under the project, in the case of a national school, without the MOE's approval of such school's School Development Plan, and in the case of any other School, without the MOE's approval and the Provincial Council’s approval; The Government will ensure the school resource allocation procedure, the funding formula, and the allocation procedure for Computer Learning Centers are conducted in accordance with Appendix 4; The Government shall ensure all candidates for local and overseas training and fellowships comply with criteria acceptable to ADB; and The Government shall ensure that computer facilities and A-level science laboratories are not provided to a school without adequate teaching staff.

(xii) (xiii)

(xiv) (xv) (xvi) B.

Conditions for Loan Effectiveness

75 The Government will have submitted the needs analysis of the target schools to ADB for its approval, and the central PMO and each provincial PMO will have been established and the project director and each provincial project manager appointed. C. Conditions for Withdrawal

76. After the initial withdrawal of the imprest account advance, direct payment, or reimbursement to finance school’s related expenditure for any school, without a certification from the Government that such school’s SDP has been approved. VI. RECOMMENDATION

77. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Asian Development Bank (ADB) and, acting in the absence of the President, under the provisions of Article 35.1 of the Articles of Agreement of ADB, I recommend that the Board approve the loan in various currencies equivalent to Special Drawing Rights 23,875,000 to the Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project II from ADB’s Special Funds resources with an interest charge at the rate of 1.0% per annum during the grace period and 1.5% per annum thereafter; a term of 32 years, including a grace period of 8 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft Loan Agreement presented to the Board.

Joseph B. Eichenberger Vice-President 30 September 2004

Appendix 1

21

PROJECT FRAMEWORK
Design Summary Sector Goal A secondary education system that is equitable and responsive to labor market requirements • Targets/Performance Indicators • • • • Monitoring Mechanisms Assumptions and Risks

Purpose Increased equity of access to quality secondary education Improved efficiency of the secondary education system

Unemployment rate of those with Alevel qualifications reduced from 18.1% to 12% by 2009 • Percentage of A-level science students increased from 22% to 35% (female from 19% to 35%) by 2009 • O-level pass rates in disadvantaged areas increased from 30% to 45% • Percentage of O-level students qualified to take A-level science increased from 30% to 50% by 2009 Quality and Equity • • • • Percentage of O-level graduates qualified for A-level increased from 40% to 60% by 2009 Percentage of grade 13 students qualified for university increased from 40% to 65% by 2009 Infrastructure and facilities of target schools in disadvantaged regions improved to accepted standards Teachers in target schools using modern teaching-learning methodologies and School-based assessment (SBA) by 2009 Subject- specific software in three languages in mathematics, science, English, and technical subjects distributed and used in all schools by 2007 Information and communication technology (ICT) resources supplied to schools according to school development plans (SDPs) by 2009 Schools using School-based Management (SBM) and educational leadership techniques by 2009 Schools equipped with libraries, multimedia rooms, and teacherlibrarians by 2008 Teaching of science and technical subjects improved in secondary schools by 2008

Labor market statistics Ministry of Education (MOE) statistics Statistics from private sector, National Examination and Testing Service (NETS) statistics

• •

MOE statistics Surveys of principals and teachers in project schools Midterm and final project reviews and evaluations Evaluation study of employability of Olevel and A-level graduates from target schools and job placement survey data Independent consultant evaluation reports on project progress and results ADB project completion report ADB review missions

•

•

•

•

•

•

•

•

•

• • •

•

• •

Provincial and Zonal Capacity Development • 450 zonal officers, In-service Advisors (ISAs), and divisional directors developed as facilitators by 2006 90 of the zonal trainers trained in teaching inter-ethnic understanding 50 senior and middle management in provincial ministries of education trained in SBM, education system • •

• •

•

Government ensures adequate teachers in agreed number of target schools Government’s commitment to minimize disparities across regions and ethnic groups Sufficient number of teachers who can integrate subjectspecific software into teaching Adequate resources provided to school to deliver O-level technical subjects and practical options in A-level technology subject. Enough mathematics and science teachers in disadvantaged schools to deliver Oand A-level science and technology subjectsZonal and divisional offices are committed to monitoring and supervision Provincial offices committed to SBM Principals, ISAs, and zonal monitoring panels supervise and monitor SBA Government is committed to

22

Appendix 1 Design Summary Targets/Performance Indicators trained in SBM, education system management, and educational leadership by 2006 Capacity of 9 provincial training development units strengthened 1,000 principals and 90 zonal monitoring panels trained to supervise and monitor SBA by 2006 Monitoring Mechanisms Assumptions and Risks committed to decentralization of education

• •

Management Efficiency of School System • 100 School Management Council (SMCs) operational by 2008 • 1,100 schools trained to develop cost -recovery programs by partnering with external organizations by 2007 • SBA results integrated with national examination system by 2007 • Linkages and coordination between MOE and provincial and zonal authorities strengthened by 2007 • Capacity of MOE to monitor project activities and conduct monitoring and evaluation activities strengthened by 2008 All outputs delivered by end of year 5 (2009) 1. Facilities Upgrading and Provision of Equipment • Needs and conditions of 1,100 schools determined; baseline conditions defined by 1 st quarter of 2005 Number of schools below the baseline determined and schools categorized by 2005 Development needs of 800 Secondary Education Modernization Project I schools determined by 2005 SDPs prepared by SMC for 1,100 schools (start 2005, finish by 2006) Monitoring implementation of SDPs (start 2006, finish 2009) School infrastructure and facilities developed to accepted baseline (in phases from year 2 to year 5) Computers and accessories provided to 1,100 schools according to SDP (start 2006, finish 2008) 1,100 schools provided with multimedia rooms, equipment, and materials (start 2006, end in 2008) Science labs and activity rooms provided for O-level (start 2006, finish in 2008) Science facilities in 1C schools in underprivileged areas upgraded to • Statistics and report from needs analysis study of 1,100 schools MOE statistics Project monitoring system, quarterly progress reports, and midterm review report Project management office progress reports ADB project performance reports ADB project completion report Reports from provincial and zonal offices

• •

•

Government is committed to make SMCs operational Schools able to develop partnerships with external organizations Government policy to emphasize on SBA results

Project Outputs Quality and equity of secondary school education improved

•

• • • • • • • • •

• •

•

•

•

•

•

•

• •

•

MOE and provincial education authorities agree on baseline conditions Teachers able to apply modern teaching-learning methods Teachers who receive international training will remain and share expertise with other teachers Sufficient number of teachers who can integrate subjectspecific software into their teaching Schools will maintain all new facilities in good working order Schools in disadvantaged areas will have the support to prepare suitable SDPs

Appendix 1 Design Summary • Targets/Performance Indicators underprivileged areas upgraded to 1AB status (start 2006, finish 2008) Subsidies to help disadvantaged schools for Internet access and computer operations (start 2006, finish 2008) Learning Materials, & Teaching Methodologies 10,000 teachers trained in modern teaching-learning methodologies, SBA, and TLRs production by 2008 international staff development for 100 teachers in SBA and modern teaching methods by 2007 Educational courseware for core Oand A-level subjects procured in three languages and distributed to 1,100 schools by 2006 Teaching-learning manuals provided to teachers in SBA, TLRs production, innovative teaching methods, and CAL At least 200, 000 A-level students computer literate by 2007 25,000 IT guides distributed to 1,000 schools by 2006 Monitoring Mechanisms • • • ADB review missions Independent consultant’s monitoring and progress evaluation reports • •

23

2. • • •

• •

•

•

• •

•

3. Special School and Student Support Programs • • • • • • At least 1,000 teachers trained as teacher-librarians by 2007 Pilot project to hire 100 graduates with national diploma in ICT (start 2006, finish 2008) Career guidance and counseling system in 1,000 schools (start 2005, end 2008) School stipends for 12,000 students (start in 2006, finish in 2009) Teaching incentive program to attract 200 teachers to rural and disadvantaged areas

•

Assumptions and Risks Adequate funds to attract computer technicians to work in the schools in rural areas School principals able to integrate SBM Enough teacherlibrarians to make use of school libraries Teachers make use of multimedia room to prepare TLRs Host schools will share resources and expertise and with cluster of schools Enough trained mathematics and science teachers in rural and disadvantaged areas to implement O/A-level science and technology. Adequate local funding to sustain teacher salaries and maintain facilities Government committed to provide rural students with access to mathematics and science and technology at upper secondary level Government committed to guidance and counseling and ongoing assistance to maintain program after project completion

Capacity of provincial and zonal offices strengthened

1. • • •

Strengthening of Zonal Offices “Train-the-trainer” program to develop 25 “Master Trainers” and about 450 zonal facilitators At least 300 ISAs trained in use and production of TLRs by 2006 Training program to strengthen competence of principals, ISAs, and zonal monitoring panels to supervise and monitor SBA (start 2005, finish 2007)

•

• •

Zonal and divisional offices are committed to carry out monitoring and supervision Provincial offices are committed to SBM Principals, ISAs, zonal monitoring panels are capable

24

Appendix 1 Design Summary Targets/Performance Indicators 2007) 2. Strengthening of Provincial Offices • One international and one domestic consultant in education system management for each province (finished by 2006) Train-the-trainer program to train senior and middle management in provincial ministries of education on SBM and educational leadership techniques (5 master trainers by 2005, at least 50 provincial ministry staff trained by 2006) Support for Decentralized Education Management SMCs start-up grants (start 2006, finish 2008) 1,000 school principals and SMCs trained in SBM and use of ICT for school management (in phases by 2008) Introduction of ICT into the school administration system in phases (completed by 2007) Awareness program on SBM and SBA for general public Developing School Partnerships and Sustainability Train-the-trainer program to produce 50 local experts to advise SMCs on sustainability measures ( by 2007) Streamlining National Examination System Consulting services to NETS for streamlining national testing and evaluation process and computerizing operations (by 2006) Capacity of NETS strengthened to integrate SBA results into national examination system (by 2007) Modernizing curriculum 8 options within O level technical studies and civic curriculum developed by NIE (by 2008) Capacity Building of Central Ministry Capacity of MOE to establish coordination with provincial and zonal authorities developed (by • MOE commitment to modernize curriculum • • Monitoring Mechanisms Assumptions and Risks to supervising and monitoring SBA in schools

•

Government is committed to make SMCs operational ISAs will train teachers in the production of TLRs and follow-up in the schools on a consistent basis

Government education policies and reforms implemented

1. • •

• • 2. •

•

All schools will be able to develop partnerships with external organizations

3. •

•

•

NETS will have the support of MOE to implement policy on integrating SBA results into the national examination

4. •

5. •

Appendix 1 Design Summary • Targets/Performance Indicators zonal authorities developed (by 2007) Capacity of MOE to monitor project activities and conduct monitoring and evaluation activities strengthened (start 2006, finish 2008) Monitoring Mechanisms •

25

Assumptions and Risks

MOE is committed to coordinate with provincial and zonal offices

Project Inputs 1. 2. 3. 4. 5. Civil Works Equipment Furniture and Vehicles Learning Materials Consulting Services Staff Development Survey Studies Pilot Initiatives Stipends $9.6 million $8.9 million $1.4million $1.9 million $2.6 million 108 person-months International 162 person-months Domestic $2,2 million $0.2 million $0.5million $2.4 million $3.7million $2.3 million • $1.3million $2.7 million $39.7 million $6.4 million $0.9 million $47.0 million $35.0 million • • • • • ADB project disbursement documents Project monitoring reports, progress reports, and project accounts Project monitoring indicators • • • Adequate counterpart funds will be available Contracts will be awarded timely Equipment and other teachinglearning resources will be procured and installed in schools timely Sufficient number of personnel will be available for training Quality improvements can be sustained by the schools through public-private partnerships and other sustainability measures School computer laboratories, science laboratories, and activity rooms are sustainable Consultants are mobilized timely Government is committed to provide more equitable distribution of quality secondary education facilities Government is committed to implementing the reforms and policies

•

• •

6. 7. 8. 9.

10. Special School Grants 11. Incremental Recurrent Costs 12. Project Management 13. Taxes and Duties 14. Subtotal Base Cost 15. Contingencies 16. Interest Charges 17. Total 18. ADB Input

26

Appendix 2

SECTOR AND SUBSECTOR ANALYSIS A. Overview of Secondary Education in Sri Lanka

1. Education in Sri Lanka is free in government schools (94% of schools) and in state-run tertiary educational institutions. Some achievements of the Sri Lankan education system are remarkable. Sri Lanka’s literacy rate of 92% is one of the highest in Asia, and enrolment in primary level schooling is 95%. Females make up around 50% of the total student population. 2. The general education system of Sri Lanka comprises four stages: the primary (grades 1–5), junior secondary (grades 6–9), and senior secondary consisting of the ordinary level (Olevel) (grades 10–11), and the advanced level (A-level) (grades 12–13). The education system consists of four different types of schools: (i) Type 1AB: cover the education cycle from grades 1–13, or grades 6-13 in some cases , and offer the full curriculum for the A-level, including arts, commerce, and science; (ii) Type 1C: cover the education cycle from grades 1–13, or grades 6-13 in some cases, but offer only arts and commerce for the A-level; (iii) Type 2: cover grades 1–11, and prepare students for the GCE O-level examination at grade 11; and (iv) Type 3: cover the primary education (grades 1–5) or up to grades 1–8. 3. Currently about 10,000 government schools enroll approximately 4 million students. Among those, 323 national schools (either 1AB or 1C) are directly administered by the Ministry of Education (MOE), while the rest are administered by the provincial education authorities. More than 2,300 1AB and 1C schools and 4,200 type 2 schools enroll 0.98 million senior secondary students. Type 1AB schools are generally located in prosperous urban areas. Type 1C schools are normally situated in poorer urban and semi-urban areas. Type 2 and 3 schools are usually found in rural and remote areas. Approximately 75% of all schools are Sinhalalanguage and 25% are Tamil. However, the proportion varies across districts. In the Northern and Eastern provinces, 98% and 74% of schools are Tamil speaking, respectively. In the Central Province, Nuwara Eliya District also has a high percentage of Tamil-language schools (57%). B. Inequities in Access to Effective Secondary Education

4. The single biggest problem facing the secondary education system of Sri Lanka is the lack of universal access to effective secondary education. Among the 25 districts, the most advantaged districts with respect to offering senior secondary education are Colombo, Gampaha, Galle, Jaffna, Kandy, and Kurunegala. At the other end of the scale, the most disadvantaged districts in providing access to senior secondary education are Vavuniya, Mullaitivu, Kilinochchi, Mannar, Polonnaruwa, Nuwara Eliya, and Monaragala. 5. The extent of the overall problem of inequitable access to effective secondary education can be appreciated by considering Figure A2. The availability of effective secondary education is affected by (i) the area in which the student lives, whether rural, conflict affected, and so on; (ii) the income level of the parents, which affects their ability to supplement their child’s education with private tuition, or their ability to send the child away to a better school than those available in the immediate vicinity of the home; and (iii) ethnicity, since typically materials are initially produced in Sinhala, and the translations sometimes reach the Tamil community late, are not of good quality.

Appendix 2

27

6. The distribution of qualified teachers across the country is inequitable, as the national teacher transfer policy, which allocates teachers equitably, has not been implemented effectively. Acute imbalances exist between urban and rural, and between Sinhala- and Tamilspeaking schools. A shortage of trained teachers exists for all subjects in Tamil schools, except in grades 6–11 in the Western and Southern provinces. In Kilinochchi, over 35% of the teachers in the government school system are trainees, in Mullaitivu, nearly 30%. In five more districts, i.e., Mannar, Vavuniya, Batticaloa, Nuwara Eliya and Jaffna, from 1 to 2 of every 10 teachers are trainees. 7. Many secondary schools lack even the most basic facilities and infrastructure, and the facilities are not conducive to stimulating and effective teaching and learning. Many classrooms are overcrowded, and do not support activity-based learning. Water and sanitation are sometimes not available. Some schools do not have proper classrooms, or even partitioned areas, teachers or students have no storage areas to lock away their personal belongings. Many schools have an inadequately stocked or staffed library, or no library at all. 8. All senior secondary schools must teach science and technology and one or more technical subjects to the O-level. Therefore, all schools are required to have an activity room to support the acquisition of technical skills, activity-based learning, and practical work; and a general science laboratory to support the science and technology O-level. However, many schools have not been provided with activity rooms and sufficient equipment, and are unable to undertake a meaningful study of even the most popular technical subjects. Where facilities exist, they are often out of date or poorly maintained. C. Education Management and School-Based Management

9. The 13th Amendment to the Constitution in 1987 and the Provincial Councils Act No. 42 of 1987 devolved many functions of educational administration and decision-making authorities to the provincial education authorities, consisting of the provincial ministries and departments of education. In 1991, the National Education Commission was established as the highest body to formulate education policies. While MOE still holds the overall planning and implementation responsibility for general education and administers specific schools, including national schools, special schools for service personnel, and schools for specific development schemes, the provincial education authorities have become responsible for administering all state schools other than the specific schools noted. Below the provincial ministries and departments of education are zonal and divisional education offices, which are responsible for day-to-day school administration, implementation of education policies, and monitoring schools. 10. The current provincial system has been by and large settled after going through a few adjustments, but it is often criticized that the complex system with multiple layers has created unclear lines of command and duplication of functions at different levels. Moreover, inadequate human and financial resources at zonal and divisional levels have hindered development of effective monitoring and evaluation functions. Thus, MOE recognizes the importance of these offices and has initiated certain activities to strengthen them. For instance, it trained zonal and divisional officers in zonal planning for the secondary education development. 11. Education financing, particularly the management of capital budget, is still highly centralized, but has been gradually decentralized in recent years. In 2000, the Government introduced an education capital budget for provinces. In addition, the Government introduced a direct funding mechanism for schools to be responsible for managing and procuring education

28

Appendix 2

quality inputs at the schools. Though schools have required some time to adopt the new mechanism, and/or some schools have felt the new responsibility as a burden, the introduction of quality inputs is generally appreciated by schools as they are now allowed to identify and procure materials according to their needs in classrooms. 12. The Government has made various efforts to decentralize management authorities to schools. Historically, most schools have a functioning school development society, which generally supports the school by providing financial and labor contributions. The school development boards Act No. 8 was introduced in 1993, in which the school development boards were tasked to advise and assist the principal in matters connected with the development of the school, including maintaining the school development fund. The act was abolished in 1995, as it faced resistance from certain stakeholders, including those who feared that an introduction of the school development boards might lead to privatization of government schools. 13. In 2001 a school-based management (SBM) handbook for principals was drafted. It proposed establishment of the school management board/council, with functions similar to those for the school development boards proposed earlier. Although the handbook was not finalized then, the current Government has resumed the process of promoting SBM, including establishing a national consensus on the concept of SBM. MOE has also commenced a pilot project on SBM with 10 selected schools, and is planning to expand it with another group of schools. This is a critical time for the Government to establish a national consensus, and to gradually implement the SBM policy across the country. D. Reform of Assessment Systems

14. The Sri Lankan secondary education is an examination-dominated system that every year fails to produce an acceptable pass rate among students. This applies both at O- and Alevel. At the O-level, only 40% qualify for A -level, and only 30% qualify for science A-levels by gaining a credit pass in O-level science and technology. This partly explains why only around 22% of Sri Lankan A-level students take the sciences. The low pass rate in science and technology also arises from disparities in the availability of properly trained science teachers, laboratories, and the equipment needed to support technical subjects. Two other compulsory subjects have even higher failure rates (mathematics, at around 50% failing, and English language, with nearly 70% failing annually). All three subjects have been made compulsory at the O-level, but all three have not been given the support, in terms of teacher training and development, and teaching and learning resources, required to ensure they can be effectively taught. At the A-level, only around 40% of students qualify for university, but only about 10% of them gain places, as the capacity of the Sri Lankan state university is so small. This means that only 2% of the 20–25 age group are in university. 15. The examination domination and lack of practical orientation have led to the realization of the need for continuous assessment that includes practical work, projects, and assignments. Thus, in 2001, the school based assessment (SBA) system has been brought into the O-level curriculum, and now SBA marks are displayed on the O-level certificate. SBA is currently being brought into the A -level syllabus. However, the public perceives that schools are not competent to effectively deliver and mark SBA. Therefore, the National Examination and Testing Service believe that it is too early to integrate SBA marks into examination results. Instead, other benefits, such as considering the SBA grades when selecting students for technical colleges or for a professional program, may be more effective. This would raise people’s expectations and faith in SBA and pave the way for SBA marks to be integrated in the existing examination system .

Figure A2: Analysis of Problem: Lack of Universal Access to Effective Secondary Education. Poverty Rural/Urban Inequality National conditions contributing to main problem Effective Secondary Education is Not Universally Accessible Conflict-Affected Areas

Regional Disparity

Ethnic Divisions

EFFECTIVE secondary education: 1. Produces students that meet the country’s needs 2. Prepares students adequately for examinations 3. Provides opportunities for students to reach their full potential 4. Provides vocational as well as academic opportunities for students 5. Provides a relevant range of subjects 6. Enables students to develop as individuals 7. Provides a clean, healthy, and safe environment for students

Education system does not meet the education and training needs of the country

Inequitable distribution of educational facilities and resources

Inadequate national teacher support, pay, training and professional development program

Ineffective assessment system

Uneven distribution of information technology skills and resources School-based assessment and practical skills are not a key component of overall assessment (exam dominated system)

Inadequate funding of schools

Lack of joboriented skills among graduates, who are not adequately prepared to enter the job market

Inequitable distribution of science and vocationoriented subjects

Lack of equipment to support practical work in science and technical subjects

Inadequate school facilities, infrastructure and libraries

Disparity in exam performance and pass rates

Inequities in capacity of schools to generate funds to support school improvements

Poorly paid, unmotivated teachers

Poor teaching and teaching-learning resources development skills, lack of modern methods

Appendix 2

Lack of access to key information technology skills. training and computer-assisted learning

29

30

Appendix 3

EXTERNAL ASSISTANCE TO THE EDUCATION SECTOR
Source A. Asian Development Bank 1. Loans a. Science and Technology Personnel b. Skills Development Project c. Secondary Education Modernization Project I d. Distance Education Modernization Project Subtotal 2. Technical Assistance a. Skills Development Project b. Improving Education Planning c. Capacity Building for the Ministry of Vocational Training and Rural Industries Project Implementation Management d. Secondary Education Modernization Project I e. Postsecondary Education Modernization Project f. Secondary Education Modernization Project II g. Human Resource Investment Project h. Community Information Services for the Poor Subtotal Amount ($ million) Grant/Loan Year of Approval

20.0 18.8 47.9 45.0 131.7

Loan Loan Loan Loan

1997 1999 2000 2003

0.6 0.8 0.2

Grant Grant Grant

1998 1998 1999

0.3 0.5 0.5 0.6 0.8 4.3 136.0

Grant Grant Grant Grant Grant

1999 2000 2003 2003 2003

B.

Total Other External Sources (1998–2003) 1. Bilateral a. Sweden Support for Bachelor of Information Technology Degree at the Institute of Computer Technology, University of Colombo b. Norway NORAD: Design of Administrative Procedures for Universities c. Government of Japan d. Government of Japan d. Government of the United Kingdom e. Government of Germany f. Basic Education Sector Programme (GTZ) g. JICA Project for Improvement of Junior Schools, Phase One h. JICA Project for Improvement of Junior School, Phase Two i. Education Plan for Development of Mathematics and Science in Primary and Secondary Schools (JICA) j. Japan Bank for International Cooperation (JBIC) Small-Scale Infrastructure Rehabilitation and Upgrading Project II Subtotal

2.4

Grant

1998

4.8

Grant

2000

14.5 8.2 2.7 3.4 5.8 11.17 9.41 3.0

Grant Grant Grant Grant Grant Grant Grant Grant

1998 1999 1998 1998 2001 2000 2001 2003

50.0 for education subprojects 115.4

Loan

2003

Continued on next page

Appendix 3

31

EXTERNAL ASSISTANCE TO THE EDUCATION SECTOR—Continued
Source 2. Multilateral a. United Nations Development Programme b. ILO: Support for Job-Net at Ministry of Labor c. WB-IDA (i) Second General Education Project (ii) Teacher Education and Teacher Development (iii) Distance Learning Project NDF Secondary Education Modernization Project I e. ADB, OPEC fund, Germany, Netherlands North-East Community Restoration and Development Project Subtotal Total d. Amount ($ million) 0.4 2.0 69.4 61.9 3.0 7.0 40.0 Grant/Loan Year of Approval 1998 2002 1997 2001 2001 2000 2001

Grant Grant Loan Loan Loan Loan Loan & Grant

183.7 435

ADB = Asian Development Bank, GTZ = Deutsche Gesellschaft Fur Technische Zusammenarbeit, ILO = International Labour Organization, JBIC = Japan Bank for International Cooperation, JICA = Japan International Cooperation Agency, NDF = Nordic Development Fund, NORAD = Norwegian Agency for Development Cooperation, OPEC = Organization of Petroleum Exporting Countries (OPEC) Fund for International Development, WB-IDA = World Bank-International Development Association. Source: Asian Development Bank estimates.

32

Appendix 4

SCHOOL RESOURCE ALLOCATION PROCEDURE AND FUNDING FORMULA The targets schools will be categorized into several groups and receive various support according to needs and priorities. Procedures for school resource allocation and funding formula are described here. A. Participatory School Needs Analysis and School Selection

1. The needs analysis survey team from the central project management office (PMO) (the survey team) will prepare a list of schools that includes student’s enrolment data and the status of availability of facilities for each target school, based on the latest (2004) school census data. The survey team will make a list of schools per zone and distribute it to each zonal education office. The survey team will conduct a short training on participatory needs analysis for the zonal planning officers. Then, the zonal planning officers will conduct a workshop for the schools in their zones on conducting a self needs assessment. Each school will be represented by the principal, one teacher, and one school development society member. At the end of the workshop, each school will have prepared a needs analysis report. The report must incorporate information on expected support from various sources (North-East Community Restoration and Development Project, Small-Scale Infrastructure Rehabilitation and Upgrading Project, quality inputs, others). 2. Based on the needs analysis reports from the schools, within one month of loan effectiveness, the zonal planning officers will update the zonal list from the school census, and consolidate the needs analysis reports from the schools. The zonal planning officers will compare the needs for each school with the baseline conditions for secondary schools agreed under the Project. The zonal planning officers will propose a priority list for school resource allocation together with explanations for the priority list to the provincial PMO. Within two months of loan effectiveness, each provincial PMO will review and compare each zonal priority list, and prepare a priority list for school resource allocation in its respective province with explanations for the priority list. It will post the priority list in a public place in the provincial PMO. Based on the provincial priority lists, within 4 months of loan effectiveness, the survey team will prepare a draft resource allocation list for all target schools and submit it to the Steering Committee for approval. Within six months of loan effectiveness, the draft resource allocation list will be approved by the Steering Committee or returned to the PMO for revision. If returned, the survey team will work with the relevant Provincial PMO(s) and zones to submit a revised draft. Once the draft resource allocation list has been approved by the Project Steering Committee, the central PMO will inform each school of the approved resource allocation list through respective provincial PMO and zonal education offices. The approved resource allocation list should be made available to the public by posting it in the PMO, provincial PMO, and zonal education offices. The schools will use the resource allocation list as a basis to prepare the school development plan. B. Provision of Computer Learning Centers and Advance Level (A level) Science Laboratory

3. During the school needs analysis survey, approximately 350 schools will be identified to be provided with a computer learning center (CLC) and information technology training. One school in each of the 292 educational divisions and one more school in 61 divisions that do not have a 1AB school will receive a CLC. Zonal education offices will first decide the number of Sinhala-language and Tamil-language schools in proportion to the total number of type 1AB/1C schools by language of instruction within the zone. 4. Among the type 1AB/1C schools, those with more than 100 students in grades 10-13

Appendix 4

33

are eligible for a CLC. Eligible schools must demonstrate, in their school development plan, that they have the financial and management capacity to operate the facilities, including availability of teachers who will be in charge of CLC management; and access to electricity. If there are several candidates, schools located in rural areas will be given priority. 5. Type 1AB schools without a proper A-level science laboratory and type 1C schools that can be upgraded to type 1AB will be given either upgrading or new construction of an A level science laboratory. Prior to the provision of facilities, (i) the central Government (for national schools) or provincial councils (for provincial schools) must assure the provision of graduate science teachers; and (ii) provincial PMO s and zonal education offices must analyse the potential demand for enrolment in the A-level science stream in those schools. Only schools with a viable number of students for the A-level science stream will be given the facility. C. Funding Formula for School Development Grants

6. Based on the latest school census data, each zonal education office will categorize schools into five groups according to the number of students in grades 10–13 and in total (Table A4). The list will be compiled at the provincial PMO, and approved by the central PMO. Then, the central PMO will transfer grants to the project account of each provincial PMO every year. Table A4: Funding Criteria for School Development Grants and Computer Learning Center Start-up Operation Costs
Schools A. No. of Students (Grades 10-13) No. of Students (Total) CLC Not eligible Not eligible Not viable Viable Not eligible No. of Schools (est.) 65 Total Grant Amount ($)

Small Less than 100 Less than 250 schools B. Medium Less than 100 More than 250 Schools C. Large More than 100, schools less than 500 D. Large More than 100, schools less than 500 E. Very Large More than 500 schools Source: Asian Development Bank estimates.

$600 per year for 5 years $1,000 per year 375 for 5 years $600 per year 350 for 5 years $500 per year 350 for 2 years 40 $0

7. Each group will receive school development grants (SDGs) for 5 years, except for both groups of (i) 40 very large schools and (ii) large schools provided with a CLC (who will receive CLC start-up operation costs for the first 2 years). The very large schools will be excluded from the school grant scheme, as they have access to support from other sources. 8. The SDGs can be used for educational quality inputs as defined by the existing circular, 1 including consumable quality inputs, capital quality inputs, repair and maintenance of capital goods, and external consulting services. In addition, the SDGs can be used for certain supplies, works, and services that are not considered as quality inputs according to the circular. Such items include purchase of school furniture, installation of electricity supply, water supply, and repairs and maintenance of buildings. However, the following items in the negative list of the quality inputs also apply to the SDGs: (i) construction of new buildings and additions of buildings; (ii) telephone bills, electricity bills, and water bills; (iii) purchase of vehicles, maintenance of school vehicles; (iv) establishment services such as security services; and (v) salary payments. Procurement procedures at schools will follow the same procedure as that for the quality inputs.
1

Ministry of Education. 2002. Circular on Educational Quality Inputs from MOE. Colombo.

34

Table A 5.1: Cost Estimates by Item of Expenditure a ($' 000)
Foreign Component Exchange b A. Base Cost 1. Land and Civil Works a. Land 0 0 0 0 0 0 0 0 0 0 0 b. Civil works 0 9,588 9,588 0 3,639 3,639 38 5,499 57 450 5 2. Equipment 8,543 428 8,970 8,543 428 8,970 100 0 0 0 0 3. Furniture & Vehicles 257 1,111 1,368 257 1,111 1,368 100 0 0 0 0 4. Learning Materials 450 1,482 1,932 450 1,482 1,932 100 0 0 0 0 5. Consulting services a. International Consultants 2,160 0 2,160 2,160 0 2,160 100 0 0 0 0 b. Domestic Consultants 0 405 405 0 405 405 100 0 0 0 0 6. Staff Development and Training a. Foreign 1,307 0 1,307 1,307 0 1,307 100 0 0 0 0 b. In country training 0 929 929 0 929 929 100 0 0 0 0 7. Surveys and Studies 0 250 250 0 250 250 100 0 0 0 0 c 8. Pilot Initiatives/Special Programs 0 497 497 0 497 497 100 0 0 0 0 9. Stipends/Scholarships 0 2,400 2,400 0 2,400 2,400 100 0 0 0 0 d 10. Special School Grants 0 3,670 3,670 0 3,504 3,504 95 0 0 166 5 e 11. Incremental Recurrent Costs a. Incremental Recurrent Costs 0 2,250 2,250 0 1,200 1,200 53 0 0 1,050 47 b. Project Implementation 0 1,331 1,331 0 1,151 1,151 86 180 14 0 0 Base Costs before Taxes & Duties 12,717 24,341 37,058 12,717 16,996 29,713 80 5,679 15 1,666 4 f 12. Taxes & Duties 0 2,647 2,647 0 0 0 0 2,647 100 0 0 Base Costs after Taxes & Duties 12,717 26,988 39,705 12,717 16,996 29,713 75 8,326 21 1,666 4 B. Contingencies g 1. Physical Contingencies 636 1,349 1,985 636 850 1,486 75 416 21 83 4 h 2. Price Contingencies 371 4,037 4,408 371 2,496 2,868 65 1,540 35 0 0 Total 1,007 5,386 6,393 1,007 3,346 4,353 68 1,957 31 83 1 i C. Interest Charges 889 0 889 889 0 889 100 0 0 0 0 Grand Total 14,613 32,374 46,987 14,613 20,342 34,955 10,283 1,749 74 22 4 a Exchange rate of SLR100=US$1 has been used throughout the project period. b Base costs are as of February 2004. c Pilot initiatives include: (i ) Allowances paid to Nat'l Diploma on Information & Communication Technology graduates and (ii) Incentives for teachers to work in difficult areas. d Amounts granted to schools based on school bas ed development plans e Includes allowance paid to zonal officers for acting as master trainers and internet connection charges for rural schools f Computed at 10% for civil works & furniture and learning materials, and 15% for equipment. No taxes are included in other items. g Physical contingencies are estimated at 5% for all categories. h Price contingencies are estimated at an annual factor of 1.53% (2005) and 0.89% (2006-09) for foreign costs, and 6.0% (2005), 5.0% (2006), 4.5% 2007) and 5.0% ff (2008-09) for local costs. Inflationary effect on beneficiaries component has been absorbed in the government component. i Interest charges are computed at annual rate of 1% (semi-annual compound rate of 0.5%) during the grace period (8 years). j School Development Societies and/or School Management Council Source: Asian Development Bank estimates. Total Project Cost Foreign Local Exchange Curr. Total ADB Local Curr. Financing Source Government % Local % Total Share Curr. Share Beneficiaries Local % Curr. Share
j

Appendix 5

Table A 5.2: Detailed Cost Estimates and Financing Plan by Component and Item of Expenditures ($ million)a
Component / Category I Base Costsb A Improvements in Quality and Equity of Secondary Education Civil Works 0 9.588 9.588 Equipment 8.543 0.428 8.970 Furniture & Vehicles 0 1.111 1.111 Learning Materials 0.450 1.482 1.932 Consulting Services 0.460 0.118 0.578 Staff Development 1 0.752 1.584 Surveys and Studies 0 0.250 0.250 Pilots/Special Programs 0 0.497 0.497 Stipends/Scholarships 0 2.400 2.400 Special School Grants 0 3.670 3.670 Incremental Recurrent Costs (operations & maintenance) 0 2.250 2.250 Foreign Exchange Total Local Curr. Total Cost Foreign Exchange ADB Local Curr. Total Cost % Share Government Local % Curr. Share Beneficiaries Local % Curr. Share

0 8.543 0 0.450 0.460 0.832 0 0 0 0

3.639 0.428 1.111 1.482 0.118 0.752 0.250 0.497 2.400 3.504

3.639 8.970 1.111 1.932 0.578 1.584 0.250 0.497 2.400 3.504

38 100 100 100 100 100 100 100 100 95 53 78 100 100 100 100 100 100 100 86 89 80 0 75

5.499 0 0 0 0 0 0 0 0 0 0 5.499 0 0 0 0 0 0 0 0.180 0.180 5.679 2.647 8.326

57 0 0 0 0 0 0 0 0 0 0 17 0 0 0 0 0 0 0 14 11 15

0.450 0 0 0 0 0 0 0 0 0 1.050 1.666 0 0 0 0 0 0 0 0 0 1.666

5 0 0 0 0 0 0 0 0 5 47 5 0 0 0 0 0 0 0 0 0 4

0 1.200 1.200 Subtotal 10.285 22.545 32.829 10.285 15.380 25.664 B Provincial and Zonal Capacity Development Consulting Services 1.310 0.254 1.564 1.310 0.254 1.564 Staff Development 0.400 0.109 0.509 0.400 0.109 0.509 Subtotal 1.710 0.363 2.073 1.710 0.363 2.073 C Supporting Government Policies and Reforms for Improving Education System Management Consulting Services Staff Development Subtotal D Project Implementation Furniture & Vehicles Incremental Recurrent Costs Subtotal Base Costs before Taxes and Duties E Taxes and Dutiesc Base Cost after Taxes and Duties 0.390 0.075 0.465 0.257 0 0.257 12.717 0 12.717 0.034 0.068 0.102 0 1.331 1.331 24.341 2.647 26.988 0.424 0.143 0.567 0.257 1.331 1.589 37.058 2.647 39.705 0.390 0.075 0.465 0.257 0 0 12.717 0 12.717 0.034 0.068 0.102 0 1.151 1.151 16.996 0 16.996 0.424 0.143 0.567 0.257 1.151 1.409 29.713 0 29.713

Appendix 5

100 0 0 21 1.666 4 Continued on next page

35

Table A 5.2: Detailed Cost Estimates and Financing Plan by Component and Item of Expenditures—Continued 36
Total Local Curr. 1.349 4.037 0 ADB Local Curr. 0.850 2.496 0 Government Local % Curr. Share 0.416 1.540 0 21 35 0 Beneficiaries Local % Curr. Share 0.083 0 0 1.749 4 0 0 4

Component / Category II Contingencies Physical Contingencies d Price Contingencies e III Interest Chargesf

Foreign Exchange 0.636 0.371 0.889

Total Cost 1.985 4.408 0.889

Foreign Exchange 0.636 0.371 0.889

Total Cost 1.486 2.868 0.889

% Share 75 65 100

Appendix 5

Grand Total 14.613 32.374 46.987 14.613 20.342 34.955 74 10.283 22 Exchange rate of SLR100=US$1 has been used throughout the project period. b Base costs are as of February 2004. c Computed at 10% for civil works & furniture and learning materials, and 15% for equipment. No taxes are included in other items. d Physical contingencies are estimated at 5% for all categories. e Price contingencies are estimated at an annual factor of 1.53 percent (2005) and 0.89 percent (2006-09) for foreign costs, and 6.0 percent (2005), 5.0 percent (2006), 4.5 percent (2007) and 5.0 percent (2008-09) for local costs. Inflationary effect on beneficiaries component has been absorbed in the government component. f Interest charges are computed at annual rate of 1% (semi-annual compound rate of 0.5%) during the grace period (8 years). Source: Asian Development Bank estimates.
a

Appendix 6

37

PROJECT MANAGEMENT STRUCTURE A. Overall Management Structure

1. A feature of the Secondary Education Modernization Project II is the devolution of many project management functions to the provinces, which in turn, devolve day-to-day school monitoring to the zones. The Project will install and support a project manager in each provincial department of education. Provincial managers will provide strategic guidance and monitor the levels (zonal, divisional and school) below the province. The provincial project management office (PMO) will report to the central PMO. The central PMO will be mainly concerned with supervising the capacity building of the provinces, which, in turn, will supervise the capacity building of the zones. The latter will carry out training, mentoring, and supervision in schools, reporting back to the provinces to facilitate an effective project monitoring system. Figure A6 shows the management structure of the Project. Figure A6: The Management Structure of the Secondary Education Modernization Project II
Steering Committee Chair: Secretary, Ministry of Education (MOE)

Additional Secretary MOE

National Examination and Testing Service

Project Management Office (PMO) (project director, 5 specialists, domestic and international consultants, and administrative staff)

National Institute of Education

Provincial PMOs (one provincial project manager and secretary in each province)

Provincial Offices

Zonal Offices

Secondary School/Community

38
Activity

Appendix 7

IMPLEMENTATION SCHEDULE
Year 0
Q 3 Q 4 Q 1

Year 1 (2005)
Q 2 Q 3 Q 4 Q 1

Year 2 (2006)
Q 2 Q 3 Q 4 Q 1

Year 3 (2007)
Q 2 Q 3 Q 4 Q 1

Year 4 (2008)
Q 2 Q 3 Q 4 Q 1

Year 5 (2009)
Q 2 Q 3 Q 4

A. Needs Analysis Studies
1. Study SEMP II Schools 2. Study SEMP I Schools 3. Report B. Education System Development 1. Train 450 Zonal Specialists 2. Train Provincial Ministry Staff 3. Train and Develop SMCs 4. Monitor Training of Zonal SBAs 5. MOE- Provincial Coordination 6. Start-up EMIS and E -Governance 7. Streamline NETS Operations 8. Phase ICT into School System 10. Train International Staff/Teachers C. School-Based Training 1. Train Teachers in T-L Methods 2. Provide Training on School Planning 3. Train School Principals 4. Provide Public Awareness Programs 5. Train Teacher-Librarians D. School Sustainability/Partnering 1. Train Schools in Sustainability E. Develop Infrastructure/Facilities 1. Develop Schools Below Baseline 2. Develop Libraries 3. Develop Science Laboratories and Activity Rooms 4. Develop Multimedia Rooms 5. Upgrade 1C to 1AB

F. Improve Teaching-Learning
1. 2. 3. 4. 5. 6. Procure Educational Software Provide Computer Resources Provide other TLRs Provide ICT Learning Guides Develop Science Curriculum Deliver Career Guidance Program

G. Stipend/Subsidy Programs
1. Deliver Stipend Program 2. Provide ICT Subsidy for Poor Schools

H. School Incentive Programs
1. 2. 3. 4. Science Teaching Incentives Science Teaching Scholarships School Performance Incentives School Self-Improvement Grants

I.

Pilot Improvement Initiatives

1. Provide ICT Technicians 2. Pilot School Self-Improvement 3. Start-up 100 SMCs

J. Project Management Office
1. Central/Provincial Office Operations 2. Monitor/Audit 3. Select Consultants EMIS = education information management system, ICT = information & communication technology, MOE = Ministry of Education, NETS = National Examination & Testing Service, SBA = school-based assessment, SEMP = Secondary Education Modernization Program, SMC = school management council, T-L = teaching-learning, TLR = teaching-learning resource.

Appendix 8

39

PROCUREMENT OF EQUIPMENT AND PACKAGES
Amt ($ million) 1,848 238 1,782 1,188 317 2,640 317 238 1,980 10,547 297 238 193 231 95 169 1,222 ProcureUnit Rate Amt ment (excl. Taxes) (excl. Taxes) mode LCB LCB LCB LCB LCB LCB LCB LCB LCB 4.8 7.2 3.6 2.4 9.6 4.8 9.6 7.2 3.6 1,680 216 1,620 1,080 288 2,400 288 216 1,800 9,588 270 216 175 210 86 153 1,111

Item A Civil Works 1. Computer Rooms (new ) 2. Multimedia Rooms (new) 3. Libraries (upgrading ) 4. Multimedia Rooms 5. O -level Science Labs (new) 6. O-level Science Labs 7. A-level Science Labs (new ) 8. Activity Rooms (new) 9. Activity Rooms (conversion) Subtotal (A) Furniture 1. Tables 2. Chairs 3. Tables (CLC) 4. Chairs (CLC) 5. Book racks 6. Cupboards Subtotal (B-1) Equipment

Qty

Unit Rate

350 30 450 450 30 500 30 30 500

5.280 7.920 3.960 2.640 10.560 5.280 10.560 7.920 3.960

B-1

5,400 21,600 3,500 7,000 2,160 2,190

0.055 0.011 0.055 0.033 0.044 0.077

LCB LCB LCB LCB DP DP

0.05 0.01 0.05 0.03 0.04 0.07

B-2

1. Computers: a. For CLCs 5,250 1.380 7,245 ICB 1.200 b. Library/Multimedia Rooms 700 1.380 966 ICB 1.200 2. Printers 700 0.115 81 LCB 0.100 3. UPS 5,250 0.058 302 LCB 0.050 4. Airconditioners 1,050 0.650 682 ICB 0.565 5. Grades 10-11 Science Kit 100 0.575 58 IS/LCB 0.500 6. Grades 12-13 Science Kit 30 1.725 52 IS/LCB 1.500 7. Activity Room Equipment 1,000 0.863 863 ICB 0.750 8. Multimedia Equipment: a. Scanners 350 0.115 40 ICB 0.100 b. CD Writers 350 0.081 28 ICB 0.070 Subtotal (B-2) 10,316 B-3 Vehicles/Motorcycles 1. Vehicles for Central PMO 1 80 80 LCB 69.57 2. Vehicles for Provincial PMO 8 27 216 LCB 23.48 Subtotal (B-3) 296 C Learning Materials 1. Library Resources a. Books for Grades 10-13 236,200 0.005 1,063 IS/LCB 0.004 b. Other Printed Materials 1,000 0.33 330 IS/LCB 0.3 2. Educational Courseware 0 a. Subject-Specific Software 20 22 440 ICB 20 b. Curriculum Free Software 5 11 55 ICB 10 3. Career Guidance Materials 1,000 0.007 7 DP 0.006 4. Teaching Learning Guides 4,000 0.06 220 LCB 0.05 5. Testing/Evaluation Materials 1,000 0.01 11 LCB 0.01 Subtotal (C) 2,126 Grand Total 24,506 A = Advance, CD = Compact Disc, CLC = computer learning center, DP = Direct Purchase, ICB = International Competitive Bidding, IS = International Shopping, LCB = Local Competitive Bidding, O = ordinary, PMO = project management office, QTY = Quantity, UPS = Uninterruptable Power Supply.

6,300 840 70 263 593 50 45 750 35 25 8,970 70 188 257

966 300 400 50 6 200 10 1,932 21,859

OUTLINE TERMS OF REFERENCE FOR CONSULTING SERVICES Table A9: Allocation of International and Domestic Consultants by Project Component

40
Appendix 9

1. Improvements in Quality and Equity of Secondary Education 1.a Consulting Specialists
Type
Facilities Upgrading and Provision of Equipment

2. Provincial and Zonal Capacity Development 2.a
Strengthening of Zonal Offices

1.b
New Curriculum Options, Learning Materials, and Teaching Methodologies

1.c
Special School and Student Support Programs

2.b
Strengthenin g of Provincial Offices

3. Supporting Government Policies and Reforms for Improving Education System Management 3.a 3.b 3.c 3.d
Support for Decentralized Education Management Developing School Partnerships and Sustainability Streamlining National Examinations System Capacity Building of Central Ministry Total Months Intl Dom

1 2 3 4 5 6

7 8 9 10 11 12 13

School Planning and Administration Career Guidance and Counseling School Sustainability and Financing Education System Management Teaching-Learning Methodologies Teaching and Learning Resource Devt. Educational Courseware Science Instruction Technology/Technical Instruction Library Development Student / Instructional Evaluation Computer Assisted Learning Social Development

Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl Dom

3 3 3 6

1.5 2.5

2.5 2.5

7 8 3 6

1.5 2 20 16 1.5 2 1.5 2 32 64

3.5 4 12 5

5 6 64 85 4 6 4 6 3 5

2.5 4 2.5 4 3 5 2 5.5 2 5 2.5 5 2 4 2 3

1 1.5 1 2 1.5 2 1 2 2 4 5 1 1

3 7 3 7 4 7 4 7 4 7 5

Total Months:

6

54

17.5

61.5

96

8.5

7.5

2

17

108

162

Intl. = international consultant; dom . = domestic consultant. Source: Asian Development Bank estimates.

Appendix 9

41

A.

Outline Terms of Reference for International Consultants 1. School Planning and Administration Specialist (7 person-months)

1.

The specialist will have the following tasks: (i) Design a train-the-trainer program to train zonal officers, n-service advisors i (ISAs), and divisional directors to become planning facilitators in the target schools capable of helping schools prepare a school development plan (SDP). Train zonal officers in the procedures for assessing and approving the SDP. (ii) In coordination with the education system management specialist, design a trainthe-trainer program to train zonal officers, ISAs, and divisional directors in school-based management (SBM) and educational leadership techniques. Design in-country training program for facilitators to deliver school-based training to principals, teachers, school development society representatives in SBM and education leadership techniques. (iii) Deliver the initial train-the-trainer workshops to train 25 master trainers. (iv) Develop SBM and educational leadership manuals based on best practice. 2. Career Guidance and Counseling Specialist (3 person-months)

2.

The specialist will have the following tasks: (i) Develop an action plan to continue implementing the Secondary Education Modernization Project (SEMP) Career Guidance and Counseling Program (ii) Design a school-based training program to train head teachers in career guidance and counseling techniques and operating a career center in each school according to the SEMP’s implementation plan. (iii) Deliver training workshops to train core trainers who will be responsible for completing school-based training in career guidance and counseling techniques. (iv) Develop and provide operational support for a national career guidance website. 3. School Sustainability and Financing Specialist (5 person-months)

3.

The specialist will have the following tasks: (i) Design a train-the-trainer program to develop a team of domestic experts that can advise school management councils (SMCs) on mechanisms for sustaining school operations and developing partnerships with external organizations. (ii) Deliver workshops to train the team of domestic experts in public-private partnerships. Train the experts in sustainability measures in the school’s SDP. (iii) Monitor progress of schools in developing suitable and practical procedures and mechanisms for financing and sustaining school operations and implementing other improvement activities in the school development plan. 4. Education System Management Specialists (8 consultants, each 8 months for a total of 64 months, 1 consultant per province )

4.

The specialist will have the following tasks: (i) Design train-the-trainer program to train senior and middle management in the provincial ministries of education in SBM and educational leadership techniques. (ii) Deliver the initial train-the-trainer workshops to train 20 core trainers who will be the trainers of senior and middle management in provincial ministries of education. Coordinate planning and delivery of training programs with the school

42

Appendix 9

(iii) (iv) (v) (vi) 5. 5.

planning and administration specialist In conjunction with the school planning and administration specialists, develop SBM and educational leadership manuals based on best practice. Design and deliver in-country training for Ministry of Education (MOE) staff on establishing effective coordination with the provincial and zonal authorities. Work directly within one particular Provincial Training Development Unit (PTDU) to strengthen the training capacity of the unit. Design and deliver in-country training for MOE staff on procedures for monitoring project implementation and conducting monitoring and evaluation (ME) activities. Teaching-Learning Methodologies Specialist (4 person-months)

The specialist will have the following tasks: (i) Design a “Train-the-trainer” program to train ISAs, Zonal officers, and Divisional Directors to become trainers/facilitators in the target schools capable of providing school-based training for teachers in innovative teaching methods including student-centered approaches (ii) Deliver the initial “Train-the-trainer” workshops to train 5 Master Trainers who in turn will train 90 Zonal Facilitators in Teaching-Learning Methodologies. (iii) Design a program for the Zonal facilitators to monitor the application of new teaching-learning approaches by teachers in the schools. (iv) Deliver seminars on student-centered teaching approaches and activity based learning in secondary schools. (v) Develop teacher learning guides/user manuals on innovative teaching methods. 6. Teaching-Learning Resources Specialist (4 person-months)

6.

The specialist will have the following tasks: (i) Design a “Train-the-trainer” program to train ISAs, Zonal officers, and Divisional Directors to become training specialists/facilitators in the target schools capable of providing school-based training for teachers in TLRs production and use. (ii) Deliver the initial “Train-the-trainer” workshops to train 5 Master Trainers who in turn will train 90 Zonal Facilitators in TLR production and use. (iii) Design a program for the Zonal facilitators to monitor the TLRs in the schools. (iv) Deliver seminars on the development and use of TLRs in secondary schools. (v) Develop teacher learning guides/user manuals on methods of preparing TLRs 7. Educational Courseware Specialist (3 person-months)

7.

The specialist will have the following tasks: (i) Investigate the availability of educational software in the marketplace that matches the O-Level and A -Level subjects in Sri Lanka particularly in English, Math, Science, and Technical subjects. (ii) Assess feasibility of translating English software to Tamil and Sinhala languages. (iii) Recommend the best software to be purchased by the project. (iv) Prepare bidding packages for the purchase of relevant educational courseware (v) Monitor the procurement and delivery of the educational software and ensure that the products are usable and relevant to O-Level and A-Level subjects. 8. Science Instruction Specialist (3 person-months)

Appendix 9

43

8.

The specialist will have the following tasks: (i) Assess the relevance and appropriateness of the expanded O-Level and A -level Science curriculum. Prepare a report with recommendations on improving science curriculum and the teaching of science. (ii) Deliver seminars on best practices in the science teaching in secondary schools. (iii) Deliver training workshops to Master Teachers/ISAs on methods of teaching science and promoting activity-based learning in science subjects. (iv) Advise on environmental concerns, including waste management procedures 9. Technology/Technical Instruction Specialist (3 person-months)

9.

The specialist will have the following tasks: (i) Assess the relevance and appropriateness of the expanded O-Level ad A –level Technical Studies curriculum. Prepare a report with recommendations on improving and delivering the Technical Studies curriculum and teaching (ii) Deliver seminars in the teaching of vocationally oriented courses. (iii) Deliver training workshops to Master Teachers/ISAs on methods of teaching vocational courses at both O-level and A-level. (iv) Recommend to the Government the basic requirements to bring all schools up to the baseline with respect to teaching O-Level Technical subjects. 10. Library Development Specialist (4 person-months)

10.

The specialist will have the following tasks: (i) Assess the data from the school needs study and develop a plan for bringing all school libraries up to the defined baseline. (ii) Design a “Train-the-trainer” program to train ISAs/Master Teachers capable of training school teachers to become “Teacher-Librarians”. Deliver the initial “Trainthe-trainer” workshops to train 30 core trainers who will be the trainers of Master Teachers/ISAs in all zones of the country. (iii) Deliver seminars to Master Teachers and existing school librarians on the use of ICT usage in the library including web-based learning, CAL, and library management including computerization of library resources. (iv) Recommend to the government/PMO the basic set of equipment, furniture, and supplies needed for the multimedia room 11. Student and Instructional Evaluation Specialist (4 person-months)

11.

The specialist will have the following tasks: (i) Assess the results from SEMP I with respect to: (a) implementing SBA in the schools, (b) training teachers and principals in SBA, and (c) raising public awareness of the merits of SBA in the education system. (ii) Prepare a “Train-the-trainer” plan for ISAs, Zonal officers, Divisional Directors (iii) Work with NETS to plan the training of 90 zonal SBA specialists and identify staff from NETS that could serve as “Master SBA Trainers”. (iv) Deliver the initial “Train-the-trainer” workshops to train 5 “Master SBA Trainers” Develop a plan for implementing awareness programs to orient principals, and Zonal Monitoring Panel members to the objectives of SBA. (v) Design a training program to strengthen the capacity of Principals, ISAs, and Zonal Monitoring Panels to supervise and monitor SBA processes in schools. (vi) Deliver seminars on continuous assessment of student performance,

44

Appendix 9

(vii)

assessment of activity-based learning, teacher self-assessment of instruction, and development of assessment instruments. Support NETS on ways to streamline national testing and evaluation process including computerization of operations and examination results. Strengthen NETS capacity to fully integrate SBA into national examination system. Computer Assisted Learning Specialist (4 person-months)

12. 12.

The specialist will have the following tasks: (i) Assess the results from SEMP I with respect to: (a) implementing CAL in the schools, (b) training teachers in CAL, and (c) level of development of suitable software for student learning in O-Level and A-Level subjects. (ii) Assist the Library Development Specialist with training teachers and school librarians on the use of ICT in the library including web-based learning and CAL. (iii) Prepare a “Train-the-trainer” plan for training ISAs/Master Teachers and Divisional Directors to become CAL trainers. (iv) Deliver the initial “Train-the-trainer” workshops to train 20 core trainers who will train other Master Teachers/ISAs in all zones of the country. Outline Terms of Reference for Domestic Consultants 1. A domestic consultant will be recruited in each of above fields and work with the international consultant in the respective field (total 157 person-months).

B.

13.

The specialist will undertake the following tasks: (i) (ii) (iii) Assist the international consultant in delivering training workshops, and assist with the preparation of training materials and project reports Support project stakeholders in implementing action plans in a timely manner Provide training to provincial education offices, zonal offices, and school staff, and support project holders in creating stronger linkages and coordination between central ministry and provincial and zonal offices.

2. Social Development, Ethnicity and Gender Specialist (domestic consultant, 5 person-months) 14. The specialist will have the following tasks: (i) (ii) (iii) Assist the PMO in developing selection criteria and implementation procedures for the stipend program and incentive program, and ensure that gender equity, ethnic balance, and the poverty criteria are adequately considered. Incorporate inclusive learning content in all training programs developed under the Project for schools, teachers, and Government stakeholders. Conduct awareness raising programs for project stakeholders on gender-based stereotypes and constraints in secondary education. Assist in developing career guidance that encourage girls participation in science streams. Develop gender disaggregated data on project performance Assist NIE to develop a civics curriculum that promotes intercultural understanding and reconciliation. Assess current Government initiatives in promoting inter-ethnic understanding, share information, and conduct public awareness programs.

(iv) (v)

Appendix 10

45

STAFF DEVELOPMENT (TRAINING) PROGRAM
Component/ Type of Training/Workshop A. School-Based Improvements in Quality and Equity 1. TeachingMethodologies & SBA 2. Innovative Teaching Methods and SBA 3. School Development 4. School Based Management 5. Public Awareness Program of SBM 6. Teacher-Librarian Training 7. Career Guidance & Counseling 8. ICDL Computer courses B. Subtotal: Provincial and Zonal Capacity Development 1. Train-the-Trainer Program for ‘Master’ Zonal Trainers 2. Training of Core Trainers & Facilitators in SBM, SBA, CAL, T-L Methods, & School Planning 3. Master Trainers for Provincial Department Staff 4. Training of Senior/Middle Management in Provincial Departments 25 National 25 1 No. Persons Location Days Number Times Total Person-Days Intl. Local Remarks

10,000 School based 104 Overseas

1

20

200,000 10 teachers/school trained by zonal

30

2

6,240

Short-term study visits for teachers (1 interpreter per batch, 4 batches a year for 2 years) ( mainly in Asian Regional Centres) 25,000 Training on School Development Plans 25,000 Training for principals and SDSs 25,000 Orient public to merits of SBM

5,000 School based 5,000 School based 5,000 School based 1,000 School based 1,000 School based 1,500 School based

1 1 1

5 5 5

1

10

10,000 One teacher/school

1

10

10,000 At least one teacher trained per school

1

1 6,240

1,500 10 teachers per school 296,500

625 Training 25 master trainers

450 National

20

1

9,000 Training 450 core zonal trainers (cadre of 5/zone)

5 National

15

1

75 Training 5 master trainers

50 Provincial

2

10

1,000 Seminars and workshops

Continued on next page

46

Appendix 10

Staff Development (Training) Program—Continued
Component/ Type of Training/Workshop 5. Training for Provincial PMO Staff on Project Management, Civil Works Management, Financial Management No. Persons Location 8 National Number Times 1

Days 10

Total Person-Days Intl. Local

Remarks

80 Training 8 Provincial PMO

6. Short-Term Fellowships in Special Areas (innovative teaching methods, IT in Education, SBA) 7. Short-Term Fellowships in Educational Management , SBM, and EMIS. 8. Awareness Training Program in SBA Subtotal: C. Policy Implementation Support 1. 2. SMC Operations School Financing

92 Overseas

30

1

2,760

92 Fellowships for staff from zonal offices (training mainly done in Asian Regional Centres)

8 Overseas

30

1

240

8 fellowships for provincial project managers (training mainly done in Asian Regional Centres)

92 National

1

5

460 Open seminars at zonal level

3,000

11,240

500 School based 50 National 500 School based

1 5 1

5 1 5

2,500 100 SMCs in pilot trained 250 Train 50 experts or core trainers 2,500 Seminars at schools by core trainers

3. School training in School Financing

4.

NETS Seminars

20 National 50 National

2 5

5 5

200 Seminars 1,250 Seminars at NIE on content & delivery

5. Technical Subjects Curriculum Development 6. Study Tours for PMO Staff and MOE Technical Staff 7. 8. EMIS M&E Subtotal: Total:

10 Overseas

7

5

350

10 study tours/fellowships per year for staff 200 Seminars/workshop 200 Seminars/workshop

20 National 20 National

1 1

10 10 350 9,590

7,100 314,840

CAL = computer-assisted learning, EMIS = education information management system, ICDL = International Computer Drivers' License, IT = Information Technology, M&E = monitoring and evaluation, MOE = Ministry of Education, NETS = National Examination & Testing Service, NIE = National Institute of Education, PMO = project management office, SBA = school-based assessment, SBM = school-based management, SDS = School Development Society, SMC = school management council, T-L = teaching-learning.

Appendix 11

47

PROJECT IMPACT ON PEACE BUILDING, RECONCILIATION, AND SOCIAL COHESION 1. The task of reconstruction after prolonged civil conflict requires an analysis of system failures and conflict impact. An important dimension of civil conflicts is that they create divided societies. Education plays an important role in postconflict reconstruction, especially in the areas of reconciliation and building social cohesion.1 2. While education has an important function in reconstruction, failures in the education system can contribute to conflict situations. In Sri Lanka, both the Sinhalese majority and the Tamil minority have expressed grievances, past and present, based on relative deprivation of educational provision and opportunity. These perceptions of inequality and exclusion have been catalysts of conflict. 3. Prior to independence, the Sinhalese majority had grown resentful that the Tamil minority was overrepresented in higher education and influential positions in professional careers and civil administration. Nearly a decade after independence, English was still the national language and the country continued to be ruled by an English-speaking elite. Nationalist sentiment among the Sinhalese majority spurred the drive to elevate the status of Sinhala to the national language. In 1956, the Sinhala Only Law was enacted, sparking violent protests from the Tamil minority. The Sinhalese-Tamil conflict had its roots in this period of emerging resentment and hostility. 4. The Standardization Policy of 1971 augmented earlier tensions with its aim of reducing the number of Tamil students gaining entrance to universities. Successive discriminatory policies in education were paralleled by similar policies in other areas. The growing unrest of the early 1970s turned to violent conflict by the mid 1970s as fighting for an independent Tamil state in the north-east (Eelam) began. By the mid 1980a the conflict had spread from the north to much of the east, and continued for about 20 years. In 2000, a Norwegian team was invited to initiate negotiations between the Liberation Tigers of Tamil Eelam and the Government. Eventually, a cease-fire was reached in late 2001 and peace talks began in 2002. Since then, governments have shown genuine commitment to the peace process. 5. Although discriminatory policies in education and elsewhere have been reversed, and th the 13 Amendment to the Constitution established Tamil as an official language, along with Sinhala, society remains deeply divided by language and ethnicity. To avoid reconstructing the system of exclusion that preceded the conflict, these issues must be addressed when considering education reform. 6. Incorporating these themes in the design of education projects, addresses the international community’s commitment, expressed in para. 8 (v) of the Dakar Framework for Action, to “meet the needs of education systems affected by conflict, natural calamities, and instability; and conduct educational programs in ways that promote mutual understanding, peace, and tolerance, and that help to prevent violence and conflict. 7. A holistic approach to peace building and postconflict reconstruction includes four essential themes: security, governance, economic recovery, and social stability and development. The last theme, social stability and development, is the central focus of reconstructing education (footnote 1). Three key aspects are involved: (i) rebuilding the physical infrastructure of the education system, including buildings and supplies; (ii) regenerating human capacity of teachers, administrators, and school communities; and (iii) strengthening social
1

Colleta. 2003. Conflict and Development , What Are We Reconstructing? Paris.

48

Appendix 11

capital by addressing curriculum content. The Project will contribute to reconstruction, reconciliation, and social cohesion by focusing on these aspects in its inputs. A. Rebuilding the Physical Infrastructure

8. At the time of the conflict, education was disrupted by the closure of schools. Nearly 25% of schools in the north and east were closed, while 25.5% functioned in displaced locations with makeshift arrangements.2 Furthermore, 15,000 classrooms in 500 schools are reported to be fully or partially damaged. Libraries, laboratories, offices, electricity, water, and sanitation facilities were also damaged. 9. The condition of these schools and those in other impoverished areas is a source of division and exacerbates grievances among the affected communities. The Project aims to address this issue by improving access to quality education facilities for students from rural and underprivileged areas by upgrading the infrastructure and facilities of its target schools to a defined baseline standard. The Project places emphasis on supporting those secondary schools that have not received assistance from earlier projects. 10. During field visits to schools in the north-east, principals invariably articulated concerns about inadequate facilities, including classrooms, toilets, and electricity. Equity of access in component 1 is concerned with ensuring that there quality education facilities are distributed equitably in the country. The baseline was designed to ensure that disadvantaged secondary schools receive essential resources for offering the required O-level subjects in the curriculum. B. Regenerating Human Capacity

11. A crucial shortage of teachers exists in the north-east; this was emphasized by all schools visited. Compounding this situation is an influx of children due mainly to returning internally displaced people. The number of school-aged students in the north-east is expected to increase by one third to approximately 866,000 by 2007. 3 This will increase the demand for qualified teachers substantially. The shortage of teachers in disadvantaged areas is a considerable barrier to equitable provision of secondary education to disadvantaged minority groups. In this regard, the Project will seek assurance that the Government is committed to implementing an equitable and effective transfer policy. 12. The Project will ensure that target schools receive equitable benefits in terms of support from zonal trainers, provincial project managers, and capable teachers in the required medium of instruction. These strategies are particularly concerned with providing adequate education in areas deemed critical for more lucrative employment—a major issue for disadvantaged secondary school-aged youth. This is a key issue for future conflict avoidance, particularly because both the Liberation Tigers of Tamil Eelam in the north and Janatha Vimukthi Peramuna (People’s Liberation Army) in the south drew support primarily from disaffected youth. C. Strengthening Social Capital

13. This aspect of reconstruction is concerned with reasserting the socialization and valueforming functions of schooling. This entails developing curriculum content and teaching methods commensurate with the goal of shared values, social cohesion, and inclusive institutions. In this
2 3

Ministry of Education. 2001. School Census. Colombo. United Nations Children’s Fund, World Bank, and World Food Programme. 2003. Education Sector Report: Assessment of Needs in the Conflict Affected Areas of the North East. Colombo.

Appendix 11

49

regard, the Project will support the National Institute of Education with the development of civics within the curriculum, which would promote intercultural understanding and reconciliation. The Project will also require the zonal training specialists to provide school-based training in teaching approaches that foster greater understanding between language/ethnic groups. It will also promote training on student-focused teaching approaches and school-based assessment that brings a more practical orientation into teaching-learning activities. 14. Other agencies have done extensive work in the area of peace building. The United Nations Children’s Fund has produced resources for teachers through its Education for Conflict Resolution program. The Government of Germany has also incorporated concepts of peace building and social cohesion into its teacher education program. The Project will coordinate with other agencies to reinforce their efforts and avoid duplication in production of materials. 15. During the field visits, some schools reported activities with ”family schools” as part of a program initiated by the provincial government to promote interschool activities among Sinhala and Tamil schools with a view to fostering understanding and tolerance. While this initiative makes an important contribution to peace-building, several schools were not aware of these initiatives, although they were participating in some interschool sporting events. 16. The Project will also strike a balance between two important aspects of strengthening social capital in postconflict situations. The Project makes a point of providing its curriculum materials to separate language groups to achieve equity. Although this may be viewed as reinforcing division along language and ethnic lines, it is unavoidable from an equity perspective, at least at the outset until broader language acquisition is attained. Until that time, the Project addresses the potential negative effects by promoting English as a link language, within a more inclusive curriculum. D. Risks

17. The roots of conflict are bound up with inequality and the perception of relative deprivation among individuals and groups. The most obvious risk for the Project is that of exacerbating disparities between schools with selective inputs of information and communication technology (ICT) equipment. While the first priority of the Project is to bring disadvantaged schools up to the baseline, the Project is also sensitive to the Government’s desire to modernize the secondary education system with the injection of ICT. However, not all schools have the capacity to absorb ICT inputs. 18. To satisfy both aspects of the Government’s vision of modernizing secondary education without exacerbating disparities, the Project will ensure that all ethnic groups gain access to quality secondary education inputs. The Project will maintain an ethnic balance by expanding the Project to schools in the north-east and in plantation areas where Tamils and Muslims predominate. While the provision of ICT on a selective basis may create disparity, the Project is taking measures to avoid the perception of deprivation by balancing its selection process. 19. The Project carefully considers the important role of education in peace building, reconciliation, and social cohesion. Its emphasis on equitable access to quality secondary education in disadvantaged areas should have a positive impact on reversing perceptions of relative deprivation and exclusion. 20. Efforts to resolve the conflict may fail. If the conflict returns to the north east, school renovation in the area will be difficult. Nevertheless, the other peace-enhancing activities of the Project will continue.

50

Appendix 12

SUMMARY ECONOMIC AND FINANCIAL ANALYSIS A. Project Objectives and Economic Rationale

1. While Sri Lanka has achieved high enrolments in primary (95%) and lower secondary education (85%) and a high literacy rate (92%), the Government has been concerned with the quality of secondary education. The Proposals for a National Policy Framework on General Education in Sri Lanka prepared by the National Education Commission in 2003 pointed out that a dearth of science, mathematics, and information and communication technology (ICT)-qualified personnel in the job market is keeping the economy from expanding into new and demanding areas. To improve the quality of secondary education and meet the job market demands, laboratory, basic information and communication technology facilities, teaching-learning resources, teachers’ teaching skills, and principals’ managerial capacities need to be improved. 2. The Project will help the Government implement this policy by providing target schools (approximately 1,100 1AB and 1C schools) with computers, information technology facilities, Aand O-level science laboratories, multimedia/library rooms, and activity rooms along with necessary furniture and equipment. Not all of these facilities will be equally distributed to the entire target schools, but the Project will begin by carefully examining the viability and needs/requirements of each school during the initial needs analysis study. For instance, the Project will provide a new A-level science laboratory only for viable 1C schools to be upgraded to 1AB, for which the Government assures a supply of appropriate teachers.1 Target schools in the Project that will not be provided with full facilities and equipment will be given school development grants, which they can utilize according to t eir needs and priorities. All target h schools will also benefit from receiving school-based management/school-based assessment training, career counseling resources, an O-level science laboratory equipment kit, various teaching-learning resources, and supports from zonal training specialists thereby ensuring that the quality of the secondary education is improved in all target schools. 3. The O-level pass rate has significantly improved in the last 10 years from 19.5% in 1995 to 37.0% in 2000, and 41.0% in 2002. Beginning in 2002 a credit for school-based assessment became a part of the A-level qualification, which enabled about 5,000 more students to qualify for A-level and increased the overall pass rate by 1.6% in 2002. Based on this trend, one of the project goals—to increase the O-level pass rate to 60% by 2009—is an achievable target with the new investment by the Project. In addition to the improvement of the overall O-level pass rate, the Project aims to improve the percentage of students participating in the A-level science stream from 22% to 35%. An increase in students studying in the A-level science stream will help meet the needs of the job market, which demands a workforce with scientific/technical expertise. 4. The economic benefits of the investment in secondary education can be measured by potential increases in wages due to higher educational achievement of the graduates. When employees over 15 years are grouped by level of education and wages,2 the wage differential between those who passed O-level and those who did not is estimated at SLRs21,612 ($216)3 per year for 2001, and between those who passed A-level and those who did not at SLRs9,852 ($99) per year. Because one wage figure for the entire group of grades 1–10 is so broad, the first
1

2 3

According to the National Education Commission proposals, only about 450 out of 600 1AB schools have viable A-level science classes, mainly due to low number of students or teachers (p. 159). Labour Market Information Bulletin, Vol. 21/2002. Table 1.15, p. 13. Estimated as a weighted average with an assumption that an average wage for each wage category is SLRs2,000, SLRs 3,000, SLRs5,000, SLRs 7,000, and SLRs10,000, respectively. Monthly figures are multiplied by 12. At exchange rate of SLRs 100 = $1.

Appendix 12

51

comparison probably overestimates the impact of passing the O-level. Furthermore, figures for the wage differential are highly sensitive to the assumption for the average wage level for the highest income group. Thus, the wage differentials may be bigger or smaller than the estimates. 5. Another wage statistic is available from the Household Income and Expenditure Survey 2002. Annual wage differentials between grades 6–9 and O-level achievers and between O-level and A-level achievers are SLRs46,608 ($466) and SLRs43,740 ($437), respectively. These figures are much higher than those estimated in para. 4. Whichever figures are used however, the higher the education level, the higher is the wage level. 6. Based on this data, annual wage gains per student by passing O-level and A-level range from $150–470 and $100–440, respectively. These wide ranges make a calculation of the internal rate of return (IRR) on the investment difficult, as the rate is highly sensitive to the wage figures. To estimate the minimum impact of the Project, the lowest wage gains, i.e., $150 for O-level achievers and $100 for A-level achievers, are used as the base of the calculation (para. 7). The impact of the Project on the improvement of O and A-level pass rates is another sensitive variable for calculation of the rate of return. Three cases—(i) high improvement (60%), (ii) moderate improvement (55%), and (iii) low improvement (50%) in the O-level and A-level pass rates —are analyzed. 7. To calculate the IRR, the Project’s impact is assumed to appear in the second year of the project implementation. Second, because the Project directly covers only about 1,100 of 2,300 1AB and 1C schools and no type 2 schools, which enroll O-level students, 30% of the improvement in the O-level rates is assumed to be due to the Project. As for the A -level pass rates, for which only type 1AB and 1C schools are relevant, 40% of the improvement is assumed to be due to the Project. Other assumptions include a 1 year time lag between the completion of O- or A-level and employment, 10% unemployment among the O- and A-level achievers, constant real wage differentiations throughout their employment periods (43 years (17–60) for O-level achievers and 41 years (19–60) for A-level achievers), and 7 years of continuous impact of the Project’s investment after the implementation period. To sustain the Project’s impact, the following incremental recurrent costs are expected to be borne annually by the Government and beneficiaries during the implementation and for 7 years after the Project: 200 teacher incentives ($240 per teacher), 100 graduates with National Diploma in I formation and Communication n Technology ($800 per graduate), 450 zonal facilitator allowances ($480 per facilitator), 12,000 stipends for O- and A-level students in rural areas ($50/student per year), and operation and maintenance for school facilities for 1,000 schools ($300 per school) by the Government, and operation costs for 350 computer learning center (CLCs) ($720 per CLC) by the beneficiaries. 8. Under these assumptions, the Project is estimated to yield an IRR of 13%, even when improvement in the O- and A-level pass rates is low. The IRR goes up to 19% when pass rates improve moderately, and 22% improvement is high. An increase in the wage differentials will also significantly improve the IRR. For instance, an increase in wages by passing O-level from $150 to $200 will improve the IRR from 13 to 19% even in the low improvement case. B. Beneficiaries

9. The educational facilities and equipment provided by the Project are expected to be used not only by secondary students in the selected target schools, but also by more junior students in the same schools, students in neighboring schools, and school leavers and community members. Although the Project is not able to provide an equal amount of facilities to all of the target schools, in the interest of equity, the Project will ensure that each division has at least one 1AB school, where possible, or at least one well-equipped 1C school. Thus, 61 of the

52

Appendix 12

292 divisions in the country that currently do not have even a single 1AB school will be given priority. The Project will also provide scholarships for students who live in areas with no fully-equipped 1AB or 1C school nearby. A-level qualified students from type 2 schools are also eligible for the scholarships. 10. The direct beneficiaries of the Project are secondary school students, primarily those in rural and disadvantaged areas. In addition, other stakeholders will benefit from the Project such as community members, teachers, principals, in-service advisors, and zonal/provincial/central officers through various training and professional development programs. The Project will utilize as many existing teacher and government cadres as possible to make the project benefits more sustainable. At the same time, the Project will enlist some special school support programs and incentives to support the initial activities during the first stage of the Project. In addition, the Project will provide an incentive program for teachers to mitigate the severe teacher shortages in rural areas, to ensure that the expected benefits reach disadvantaged schools. These secondary beneficiaries are expected to help improve the existing school system for the secondary school students, in more efficient and effective ways. C. Education Budget and Financial Sustainability Table A12: General Education Expenditure (SLRs million)
Item Total Expenditurec (SLRs million) ($ million)a Recurrent Capitalc 1998 1999 2000 2001 2002 Actual Actual Actual Actual Actual 2003 Est. 2004 Est. 2005 Proj.c 2006 Proj.c 2007 2008 2009 Proj. Proj. Proj.

25,611 28,618 32,699 34,705 38,259 36,994 39,376 41,599 364 378 366 363 390 370 394 416 20,186 23,536 28,247 29,851 31,591 31,449 34,726 36,753

5,424 5,082 4,452 4,853 6,667 5,545 4,650 4,846 Domestic Funds c 4,684 5,424 2,819 1,934 2,301 3,106 2,679 3,308 3,729 Percentage 86.5 100 47.2 29.8 36.7 39.2 36.0 71.1 77.0 Foreign Funds b c 614 0 2,263 2,519 2,552 3,561 2,866 1,342 1,117 Percentage 13.5 0 52.8 70.2 63.3 60.8 64.0 28.9 23.0 of which SEMP II (est.) 239 1,206 1,298 1,290 665 Government 8 282 300 316 121 ADB 227 906 943 919 499 Beneficiaries 4 18 54 54 45 ADB = Asian Development Bank, SEMP II = Secondary Education Modernization Project II, SLR = Sri Lanka rupee a Annual average exchange rates from the Central Bank Annual Report 2002 are used for 1998–2002. Exchange rates for 2003–2006 are estimated at SLRs100 = $1. b Foreign projects and grants include the two World Bank-funded projects, one ADB-funded project, one Japanese-funded project, other smaller projects, and a part of grants and assistance to education. The figures for foreign financing include only the foreign exchange financing portions of the foreign-funded projects excluding domestic counterpart funds. In 1999, the Government spent SLRs935.4 million from domestic funds for the two World-Bank funded projects, even though no foreign exchange funds were disbursed. c As of August 2004, the Government projects the education budget only up to 2006, which does not take into account this Project. The capital budget for 2005–2006 in this table includes the estimated cost of this Project in addition to the government’s projections. Source: Ministry of Finance Budget Estimates, 2003 and 2004. Project cost estimates .

11. The growth of Sri Lanka’s real gross domestic product (GDP) averaged 5.3% between 1991 and 2000, decreased to minus 0.37% in 2001, and recovered to 4.0% in 2002. Per capita

Appendix 12

53

GDP was SLRs83,382 ($871) in 2002. Government education expenditure was 2.7% of GDP and 9.4% of the total government expenditure between 1988 and 2001. From 1999–2004, 80.0– 83.4% of the total education budget was allocated to general education. The low education expenditures in recent years run counter to the policy stipulated in the General Education Reforms prepared by the Presidential Task Force in 1997, and the policy recommendation made by the National Education Commission in 2003—that the Government increase education expenditures to above 5% of GDP. However, with severe budget constraints, the Government may not be able to drastically increase the education budget to 5% of GDP in the near future. 12. Table A12 summarizes the general education expenditure in Sri Lanka, and shows the magnitude of foreign-funded projects and foreign grants and the impact of the Project on the government budget. The Government has shifted its funding sources from domestic to foreign funds in recent years, mainly to implement the 1997 General Education Reforms. After the gradual implementation of the Project in the first year (2005), the impacts of the Project on the Government education budget will be equivalent to about 25% of the total capital budget in the second year, leaving plenty of room for other foreign development agencies to contribute. The project inputs will remain roughly constant from the year 2 to year 4. Thus the budgetary impact of the Project on the total education capital budget is readily within the recent trend. 13. The Project is designed to minimize capital investment in new buildings and facilities. Instead it will upgrade or rehabilitate existing classrooms, laboratories, and multimedia/library rooms; and convert available rooms into other functional rooms. Parents and communities are expected to contribute in-kind labor for construction and upgrading of facilities. During project implementation and for 7 years after the Project, the Government is expected to provide incremental recurrent costs for certain activities that the Project has initiated and facilities provided as discussed in the calculation of IRR. The total annual costs are estimated at $1.244 million a year, which is equivalent to approximately 0.3 % of the annual total general education budget, or 2.2 to 3.5 % of the annual capital budget in recent years, and is a sustainable level. 14. The Project is designed to encourage parents, graduates, and community members to contribute to the operational cost of the CLCs, activity rooms, and science laboratories supplied by the Project. Schools are expected to open the CLCs to communities and school leavers, and to collect user fees as a part of cost recovery. Their participation in financing school facilities is expected to enhance ownership of the project benefits and to ensure the sustainable utilization of the facilities even after project implementation. Reports from the on-going Secondary Education Modernization Project indicate that some of the CLCs provided by have collected user fees, while many others have not mainly due to the existing regulatory constrains. Very recently the Ministry of Education approved a circular to institute necessary regulations, and the schools are expected to gradually start collecting user fees. However, schools may require some time to establish a sustainable cost-recovery system. The Project will provide CLC recipient schools with initial operating costs to run the CLCs during the first 2 years. To promote and encourage schools to adopt cost-recovery/sustainability measures, the Project will provide special training to the target schools on how to develop partnerships with the private sector and other prospective supporters in the community. 15. In summary, the Project is expected to yield an adequate return on the investment, and is designed to provide lasting benefits. It has many unquantifiable but important educational and social benefits. The Project promises to ensure equity of access to and quality of the secondary education by prioritizing the distribution of physical and human resources to rural schools and students in disadvantaged areas. The impacts of the project costs on the Government budget during and after the implementation are feasible and easily within recent trends.

54

Appendix 13

SUMMARY POVERTY REDU CTION AND SOCIAL STRATEGY A. Linkages to the Country Poverty Analysis
Yes No Is the sector identified as a national priority in country poverty partnership agreement? Yes No

Is the sector identified as a national priority in country poverty analysis?

Contribution of the sector/subsector to reduce poverty in Sri Lanka: The overall goals of the Sri Lankan Government are to modernize the economy and enrich the labor market through a flexible education system, with particular emphasis on minimizing differences across regions, and reducing the disadvantages experienced in poor rural areas, and the conflicted affected areas. The 2000 report of the Government (A Framework for Poverty Reduction) proposes that the development of secondary education is necessary to ensure a trainable and mobile labor force that will provide the poor with access to greater earnings. The education strategy of the Asian Development Bank (ADB) in Sri Lanka falls within its overall strategies of poverty reduction, human development, and economic growth with special efforts to ensure equality of opportunity across gender. ADB support for the secondary education sector in Sri Lanka emphasizes access, quality, and capacity. The overall targets are poverty reduction, through an emphasis on pro-poor investments to strengthen public-private partnerships. In this respect, ADB supports reform efforts to (i) improve access and education quality, particularly in rural and conflict-affected areas; and (ii) promote social cohesion by providing educational opportunities. The ADB policy has six subsidiary priorities: (i) reach the poor, (ii) improve quality, (iii) increase efficiency, (iv) mobilize resources, (v) collaborate with beneficiaries, and (v) support innovation. In Sri Lanka students from government schools (94% of the schools) receive free education. The country’s adult literacy rate at 92%, is one of the highest in Asia. The country has ab out 10,000 government schools and 4,000,000 students. Females make up around 50% of the total student population. The positive impacts of basic education on the poor are low fertility; low population growth; and low infant, child, and maternal mortality. A lthough significant achievement has been accomplished in increasing the literacy rate, further development is needed particularly in science and technology in secondary education. Of 5– 14 year olds, 89.5% are in school; this drops to 54.5% for 15–19 year olds. Only 41% of students qualify for higher studies (2001). Among those who sit the A -level examination, around 52% receive a pass but less than 3 % of this number enters university. Each year, 140,000 people enter the job market, however 70% remained unemployed. The unemployed are between 14 and 25 years of age. Youth unemployment in youth has increased due to lack of competencies. This indicates that schools are not preparing its students for employment. The unemployment rate among those with A level (gr ades 12–13) and above is 18%, as the conventional education system with its traditional courses does not meet the emerging needs of the labor market, especially in information technology, marketing, and English language skills. The biggest problem facing the secondary education system is the lack of universal access to effective secondary education. In some respects, the disparities between some schools and others have been exacerbated by the developments made by Secondary Education Modernization Project and General Education Project 2 (World Bank financed). The computer learning centers (CLCs) and information technology (ITC) established by SEMP I and GEP 2 have left out secondary schools that have no computer learning center, and have received no benefits from outside. Lack of universal access to secondary education effects many schools all over the country; however, 13 of the 24 administrative districts are severely disadvantaged. Some of the schools are in disadvantaged situation because they are affected by (i) 20-years of ethnic conflict; (ii) income level of the parents, (iii) ethnic division; (iii) shortage of teachers; (iv) rural urban disparity; and (v) regional disparity. Disparities among the schools can be found in infrastructure, basic services, libraries, teaching and learning materials, level of teacher training, lack of qualified teachers in Mathematics, Science, ICT, level of school managerial autonomy, ability to raise funds for school development. The lack of access to science and technology results in children from disadvantaged districts being excluded from medicine, engineering technology and information technology, etc, which are the areas with the best employment and income prospects. Unequal distribution of education facilities in the country especially in the conflict-affected areas (north east region) and inherent poverty of the large number of rural families are major concerns in resolving disparities in education among the regions. The Project will focus on upgrading approximatel y 1100 secondary schools (1AB and 1C schools, 10-13 grades) and provide system wide support to all secondary schools. The Project gives emphasis on minimizing the disparities among schools especially for the north east region and the plantation areas.

Appendix 13

55

Project budget will be allocated to bring the approximately 1,100 selected 1AB and 1C schools to an acceptable quality standard, so that the significant disparities among schools by region and rural and urban areas will be minimized. Stipends program for the poor students should be selected from the disadvantaged schools. Improvement in secondary school system would provide effective secondary education opportunities for the students to learn science and technology. The Project will engage in policy dialogue with the Government to recruit science graduates as new teachers from the local areas. The improved quality of secondary education in science and technology subsequently would increase employability of the students especially for the poor students. B. Poverty Analysis Proposed Classification: Poverty Intervention ADB’s Poverty Reduction in Sri Lanka (2001) states that lack of access to high quality education has resulted in low human resource development am ong the poor. The household Survey of the Department of Census and Statistics (2002), noted that 23.9% of households are poor, a decline from 26.7% in 1995/96. Two types of poverty were analyzed in the 2002 household expenditure survey: relative and absolu te poverty. Approximately 25% of the population are estimated to experience absolute poverty. The geographic distribution of incidence of rural poverty varies from one province to another. Comparatively, Western Province happens to be most urbanized and developed, and the percentage of poor households varies from 12.2% to 36.4%. Poverty is less rampant in urban areas. The number of poor households in urban areas is 7.9% and in the rural sector 26.4%. In Uva and North Central provinces the number of poor households increased from 1995/96 to 2002.The civil conflict in the north and east has adversely affected the population in the areas, and poverty has increased significantly. Nearly 1.2 million people have been displaced by the ethnic conflict and one third of houses destroyed. The conflict has disrupted children’s education. Displacement, closure of schools, damage to school buildings, classrooms, libraries, water, sanitation facilities (15,000 class rooms in 500 schools), insecurity, and poverty have led to absenteeism, no enrollment, dropouts, and poor quality of education. Quality of education is absent in most rural areas. Schools do not possess the basic requirements such as, water, sanitation facilities, classrooms, desks, chairs, blackboards, and teaching materials. Schools in remote and difficult areas suffer from shortage of teachers, while teachers are in excess in urban areas. Nearly 27% teachers are untrained and this group generally constitutes the teachers in rural areas. The schools in small towns and rural areas are unable to provide education in science, technical subjects, and English. The number of A -level students in science courses in the districts of Kiliinochchi, Mannar, Nuwara Eliya, Polonnaruwa, and Trincomalee is very low. School buildings in these areas are in poor condition. The poor condition of schools has implications for performance of students. The pass rates of rural schools are very low. In the District of Colombo more than 50% of students pass the O level, while in Anuradhapura, Hambantota, Matale, ,Monaragala, and Plonnaruwa, districts, less than 35% pass the O level. Of the total schools in urban areas, 24.9% are 1AB schools, while in the rural sector 1AB schools account for only 4%. Almost 25% of 1AB schools are in Western Province. National 1AB schools, which are better equipped and managed by the Ministry of Education, are located in urban or semi-urban areas. Although education is free and uniforms are provided by the Government, poor parents are unable to meet transport cost and cost of textbooks. Private tuition fees especially for science subjects are beyond the reach of poor parents. Poor students have limited access to science education, and this results in imbalance in the quality of education of the poor and the non-poor. The schools in the semi-urban, rural, and conflict areas should receive priority in the resource allocation to improve access to quality education under the Project. Providing basic facilities, additional classrooms, libraries, science and educational equipment, to the disadvantaged school should be the major focus of the Project. Recruitment of teachers for science and English for the north-east region and disadvantaged districts should be included in the policy dialogue of the Project. Given the poor condition of the schools in the conflicted area, the Project should coordinate with North-East Community Restoration and Development Project, in north-east region to complement its school rehabilitation activities. The Project should also coordinate with the Small-Scale Infrastructure Rehabilitation and Upgrading Project and other aid-assisted projects to maximize the improvement of secondary schools in disadvantaged areas. C. Participation Process
Yes No Is there a stakeholder analysis?
1

During the project preparatory technical assistance, limited stakeholders’ consultation was done at the provincial level. During the implementation of the Project, participatory needs assessment of the schools in consultation with the provincial governments, school development societies and local communities should be done to allocate appropriate resources to the disadvantaged schools .
1

Following the Board Approval of the RPaper, Review of ADB’s Poverty Reduction Strategy, staff instructions to replace the PI/CPI classification with a new tracking system are under preparation in line with paragraph 83 of the R- Paper.

56

Appendix 13

Is there a participation strategy?

Yes

No

The Project would help the school development societies take an active role in developing and implementing school development plans. The Government has introduced school management councils (SMC) on a pilot basis. In the future, SMC will replace the school development societies, and are expected to facilitate the participation of parents and the community in developing the school development plan. D. Gender Development Strategy to Maximize impacts on Women
Is there a participation strategy? Yes No

The state policies in Sri Lanka ensure gender equality and guarantee women’s human and fundamental rights. The gender development index, which covers life expectancy, literacy, and education, shows that Sri Lanka’s achievement was 73%. However, the gender empowerment index that includes women’s position in decision-making was 27% in 2001. Women’s labor force participation was 37%. The enrollment of girls in O and A levels is 52% and 57.5 % respectively, and is relatively high compared with boys. However, the majority of the girls are enrolled in arts (66%) and less in science and commerce. The number of girls admitted to universities is low as girls fail to obtain admission to different faculties. The gender gap is also evident from female enrollment figures in computer-related courses (2003). Poverty, lack of mobility, stereotyped selection of subjects; and lack of access to science and technology education has deprived girls of the benefits of the secondary education system. District disparities in the availability of educational facilities such as qualified teachers in science and languages affect the children in remote areas more than those in the urban areas. Children from rural and remote areas ar e deprived of the possibility of higher attainment in language skills, and technical subjects compared with urban children. Poverty and parents’ concern for their girls’ security prevent girls from remote areas attending schools with science courses (1AB s chools) in the urban areas. The socialization process reinforces stereotyping of girls’ role and influences them to enroll subjects in arts. This limits women’s options for better employment. Female school dropouts tend to engage in low skilled jobs in the industrial zones, and or migrate to Middle Eastern or Far Eastern countries as housemaids. The percent of female teachers is higher than male— 60.3% of all teachers. However, women hold only 31.8% of managerial positions. The Project will include the following strategies to address gender issues: (i) The selection of schools for improvement and upgrading into 1 AB schools or better quality 1 C schools will give priority to the schools from semi urban, rural areas, and conflict-affected areas. That will help increase access to quality secondary education of girls from poor households. The student’s stipend program will include 50% girl students. The selection of teachers for training will include 50% female teachers. The improvement of basic facilities in schools will include building separate toilets for girls and female teachers. The managerial training program for existing principals will include 50% female principals, including female principals from the conflict -affected areas; The Project will increase the number of female teachers for managerial cadres from 31.8% to 40% by the end of the Project. The teacher’s training program on management and planning will include at least 50% female teachers. The human development program for the provincial education office, zonal offices, training of trainer program, and Ministry of Education will include at least 30% of female officials. The project management unit will include at least 40% of female staff. Female staff should be included in managerial positions in the unit; Female managers and experts should make up 40% of the provincial project management units. The project management information system and monitoring system will include a gender disaggregated database system for girl’s enrollment in 1AB and 1C schools, training of teachers and principals, and stipend program, scholarship for teachers by rural, urban, region, and conflicted areas. The Project will include a social development and gender specialist (domestic consultant) for 5 person-months to develop a gender action plan with special focus on the conflict-affected areas. The project management office staff will have expertise in social development and gender. The domestic consultant will coordinate with the project management office and help develop a gender action plan. The gender action plan will be based on the targets noted earlier and will elaborate strategies, plan, monitoring indicators, and budget.

(ii) (iii) (iv) (v)

(vi) (vii) (viii)

(ix)

Appendix 13

57

E.

Item

Social Safeguards and other Social Risks Significant/ Not Significant/ None Strategy to Address Issues Not significant The proposed civil works for construction of computer learning rooms, libraries, laboratories, and conversion of the existing rooms to new uses in selected schools by partitioning and extending the existing buildings do not envisage any land acquisition and resettlement work. However, resettlement plans will be prepared and implemented whenever the need for resettlement is identified. A resettlement framework has been prepared to ensure that if resettlement needs are identified, the Implementing Agency follows the procedures for involuntary resettlement in compliance with both ADB’s Policy on Involuntary Resettlement, and the Government’s National Involuntary Resettlement Policy. The Project will require user fees from the school development societies for operation costs for computer laboratories in schools as feasible. The stipend program will be targeted to the poor students to support their enrollment in 1AB schools. Laborers engaged in construction work will be provided with fair wages. Male and female laborers will be paid equal wages for equal work. No child labor will be used. Tamils make up the largest ethnic minority of Sri Lanka. They are concentrated in north-east region and in the plantation areas in the upcountry. The second ethnic minority—the Muslims—mostly reside in Eastern Province. Sri Lanka is recovering from 2 decades of armed conflict. North-east region has been particularly affected as most of the fighting took place in the area. A cease-fire has been declared and negotiations are taking place. An estimated 65,000 people have been killed, and 800,000 internally displaced from the north east. Livelihoods, particularly for the poor, have been destroyed in the conflict-affected areas. Social fabric has been severely damaged and ethnic tensions have been accentuated. Women and children have particularly suffered from the breakup of the social fabric and conflict. All aspects of the education system are severely damaged in the north-east. Nonenrolment, dropouts, absenteeism, and po or learning quality are aggravated as a consequence of displacement, poverty, households with only one head, damaged infrastructure, and lack of human resources. Approximately 50,000 children are out of school. The school dropout rate (15%) is four times the national average. A major aim of the Project is to reduce tension among the ethnic groups, and promote peace and social cohesion. Modernizing the secondary education system in the selected schools may have risks in creating disparities among schools particularly in the semi-urban, rural, and conflicted areas. The Project may incur risks in allocating too many resources to a small number of 1AB schools because of lack of absorptive capacity of the schools. Some schools may not have adequate teachers and other facilities.

Plan Required Resettlement framework was prepared Supplementa ry Appendix I provides the resettlement framework.

Resettlement

Affordability

Not significant

None

Labor

None

None

Indigenous Peoples

Significant

Yes Appendix 14, provides the ethnic minority development framework.

Other Risks/ Vulnerabilities

Uncertain

The Project will include activities in the different project components to mitigate risks.

58

Appendix 14

ETHNIC MINORITY DEVELOPMENT FRAMEWORK A. Project

1. The Project will directly benefit approximately 1,100 type 1AB and 1C schools and will provide system wide support to approximately 2,300 secondary schools. B. Background

2. The population of Sri Lanka in 2000 was estimated at 18.5 million. The Sinhala population constitutes 74%, Tamils 18%, and Muslims 7%. The Tamils constitute the largest ethnic minority group in the country. Jaffna is the principal center of their religious and cultural life. Tamils have their own cultural identity. The Muslim population is mainly concentrated in Eastern Province, where they are the largest ethnic group in the Ampara district. Although Muslims use Tamil as their language and the medium of instruction in education, their way of life is quite distinct from Tamils. 3. In 1956, Sinhala was designated as the official language. As a result the number of Tamils employed by the state, and admitted into higher education institutions became limited. Since the 1970s, Tamil separatism and militancy has increased. The conflict between the militant groups and the Government continued for 20 years. The whole country has suffered from the ethnic conflict, especially the north-east where most of the fighting took place. 4. Education in the north and east regions was severely affected by the conflict. Nonenrollment of children for schooling, school dropouts, and absenteeism were the major repercussions on education. Around 25% of the schools were closed and 15,000 classrooms were damaged. Approximately 50,000 children are out of school. After the ceasefire, enrollment has increased due to returning internally displaced people. A severe shortage of teachers (18%) occurred in the area. Further the widespread poverty caused by loss of livelihood and property affected the education of children. The north east region has the lowest percentages of students in A-level science and mathematics, and the highest percentages of unqualified teachers. Girls are deprived from accessing educational facilities due to lack of security. In addition, traditional attitudes regarding education of girls, often results in school dropout. Some communities in these areas are reluctant to send their girls to school. C. Legal Framework

5. The constitutional provisions for ethnic minorities are found in articles dealing with fundamental rights, proportional representation, language policy and devolution. The 1978 Constitution, Article 18 declared Sinhala to be the official language of Sri Lanka. The 13th Amendment to the Constitution declared Tamil language to be an official language. English is declared to be the link language. The 16th Amendment passed in 1988 declared that Sinhala and Tamil to be the languages of administration and language of the courts throughout Sri Lanka.

Appendix 14

59

D.

Objective of the Ethnic Minority Development Framework

6. The ethnic minority development framework is to ensure that ethnic minorities in the project area have equal access to project benefits. The framework will provide the provincial education authorities and the ethnic minority communities with participation in planning and implementation of the Project according to the needs of the secondary school system in the province. E. Proposed Strategies for Improvement of Education of Ethnic Minorities

7. The following strategies will be included in the Project to improve the quality of education for the ethnic minorities: (i) The Project is expected to cover 195 (1 AB and 1C) schools in the northeast to improve educational opportunities for Muslim, Tamil, and Sinhala students. Once the need analysis is conducted, the first priority is to promote access by improving the condition of the disadvantaged schools, including schools in the conflict-affected areas in North East Province. Deployment of Tamil-speaking information and communication technology technicians in the north-east and central provinces to provide technical assistance in computer learning. Of the total 100 fellowships for teachers, at least 25 will be for Tamil-speaking teachers. Female teachers will be given preference in science and information technology training. Policy dialogue will be initiated under the Project to recruit Tamil-speaking teachers for mathematics, science, and English in areas where they are underrepresented. For the stipend program, priority will be given to students from the northeast and central provinces (Muslim and Tamil); At least 50% of the total stipend in north-east region will be allocated for female students. Tamil-speaking specialists will be trained as zonal training specialists/facilitators. Training of cadres and zonal facilitators will focus on promoting intercultural harmony and ethnic understanding in schools. In-school training of teachers and principals will include methodology for promoting interethnic understanding in schools and society; Awareness raising on gender issues will be included in the training program for the zonal planning facilitators, principals, and teachers. Schools will be encouraged to use Internet facilities for both subject learning as well as communicating between Sinhala and Tamil schools. Support will be provided to National Institute of Education to develop a civics curriculum to promote intercultural understanding and harmony among students. The use of three languages in computer learning will be encouraged by providing subject-specific software in English, Sinhala, and Tamil. A trilingual provincial project manager will be recruited to manage the Project in north-east region and management staff in the Ministry of Education to encourage interethnic understanding.

(ii)

(iii) (iv) (v) (vi)

(vii) (viii) (ix) (x)

60

Appendix 14

F.

Impact of the Project

8. The upgrading of schools and the school-based capacity development of principals and teachers will improve the quality of education, especially in disadvantaged areas in the north-east and plantation areas. 9. The stipend program will help poor students, especially girls, to gain access to information and communication technology resources and quality secondary education facilities. Provision of science laboratories, activity rooms, libraries, furniture, and other equipment will increase school enrolment and minimize school dropouts. 10. The software package in English, Sinhala, and, Tamil, and training of zonal specialists, teachers, and principals for promoting ethnic harmony will improve interethnic understanding. Use of Internet facilities and communication among the students from the different ethnic groups and development of a civic curriculum will promote intercultural understanding and harmony among the students. 11. With access to quality education and acquisition of new skills, graduates should be able to enter the local and international job markets. The unemployment problem of the youth in the area will also be minimized with the opening of job opportunities in the private sector. G. Strategy for Education Management

12. The initial work of the Project at the school level will start with the needs assessment, with input from the school authority and the school development. The school will receive training from zonal facilitators to prepare a school development plan. The responsibility of implementing the plan is also vested with the school. In this way, schools will become more active in planning their own affairs. This process helps them to identify school problems, conduct needs assessments, and identify actions. The Project’s education management information system will include disaggregated monitoring indicators by ethnic minorities and gender to ensure that boys and girls from all ethnic groups have equal access to the project resources and benefits. H. Budget and Finance

13. The Project’s budget will allocate adequate resources for the various components and activities of the Project targeted in north-east region and plantation areas in the upcountry.


				
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