Documentof The World Bank FOR OFFICIALUSE ONLY ReportNo: 43955-BD PROJECT APPRAISAL DOCUMENT ONA PROPOSEDCREDIT INTHEAMOUNT OFSDR 80.3 MILLION (USSl30.7 MILLIONEQUIVALENT) TO THE PEOPLE'SREPUBLIC OF BANGLADESH FORA SECONDARY EDUCATIONQUALITY & ACCESS ENHANCEMENT PROJECT June 27,2008 HumanDevelopment Sector South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate EffectiveApril 30,2008) Currency Unit = Taka Taka1 = US$0.0144 US$ 1.00 = Taka 69.50 FISCALYEAR July 1 - June30 ABBREVIATIONS AND ACRONYMS AD Assistant Director ADB Asian DevelopmentBank ADP Annual DevelopmentProgram AHT Assistant HeadTeacher BANBEIS Bangladesh Bureauof EducationInformation and Statistics BBS Bangladesh Bureauo f Statistics B.Ed Bachelor of Education BISE Board of Intermediate and Secondary Education DD Deputy Director DE0 District Education Officer Dm> Department for InternationalDevelopment DG Director General DID Difference inDifference DPHE Department of Public Health and Engineering DPP Development Project Proposal DSC Development Support Credit DSHE Directorate o f Secondary and HigherEducation EC European Commission EAP Education Awareness Program EMF EnvironmentalManagement Framework EMP EnvironmentalManagement Plan ESDSC Education Sector Development Support Credit FMS Financial Management System FSSAPII Female Secondary School Assistance Project I1 FY Fiscal Year GDP Gross Domestic Product GOB Government o f Bangladesh HSC Higher Secondary Certificate HT HeadTeachers IDA International Development Association IUFRs InterimUnauditedFinancial Reports KPI KeyPerformance Indicator LGED Local Government EngineeringDepartment MEW Monitoringand Evaluation Wing M&E Monitoringand Evaluation MIS Management Information System MoE MinistryofEducation FOROFFICIAL USE ONLY M o F MinistryofFinance MPO Monthly Pay Order MTR Mid-Term Review NCTB National Curriculum and Textbook Board NSPP National Social ProtectionProject N T R C A Non-government Teachers Recruitment and Certification Authority PAD Project Appraisal Document PCT Procurement Core Team PEDP11 Primary EducationDevelopment ProgramI1 PIM Project Implementation Manual PMT Proxy Means Testing PPT Project PreparationTeam PTA Parent-Teacher Association SEQAEPU Secondary Education Quality and Access Enhancement Project Unit SMC School Management Committee ssc Secondary School Certificate TDP Tribal Development Plan TIMSS Trends inMathematics and Science Study UP0 Upazila Project Office U S E 0 Upazila Secondary EducationOfficer Vice President: Praful C. Pate1 Country Director: Xian Zhu Sector Director: MichalRutkowslu Sector Manager: MichelleRiboud Co-Task Team Leaders: Nazmul Chaudhury and Irajen Appasamy This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not be otherwise disclosed without World Bank authorization. BANGLADESH SecondaryEducationQuality& Access EnhancementProject CONTENTS Page I STRATEGICCONTEXTANDRATIONALE . ..................................................................... 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for Bankinvolvement ......................................................................................... 2 C. Higher level objectives to which the project contributes.................................................... 2 I1 PROJECTDESCRIPTION . ................................................................................................... 3 A. Lending instrument ............................................................................................................. 3 B. Project development objective andkeyindicators.............................................................. 3 C. Project components ............................................................................................................. 4 D. Lessons learnedandreflectedintheproject design............................................................ 8 E. Alternatives considered andreasons for rejection .............................................................. 9 I11 IMPLEMENTATION . ......................................................................................................... 11 A. Institutional and implementation arrangements................................................................ 11 B. Monitoringand evaluation o foutcomesh-esults................................................................ 11 C. Sustainability..................................................................................................................... . . . 12 D. Critical risks andpossiblecontroversial aspects............................................................... 12 E. Loadcredit conditions andcovenants............................................................................... 16 I V APPRAISAL SUMMARY . .................................................................................................. 17 A. Economic and financial analyses...................................................................................... 17 B. Technical........................................................................................................................... 17 C. Fiduciary ........................................................................................................................... 19 D. Social................................................................................................................................. 20 E. Environment...................................................................................................................... 21 F. Safeguard policies............................................................................................................. 21 G. PolicyExceptions andReadiness...................................................................................... 21 Annex 1: Countryand Sector or ProgramBackground ......................................................... 23 Annex 2: Major RelatedProjectsFinancedby the Bank and/or other Agencies .................29 (ii) Annex 3: Results Framework and Monitoring ........................................................................ 30 Annex 4: Detailed Project Description ...................................................................................... 40 Annex 5: Project Costs .................................................................................... 50 Annex 6: Implementation Arrangements ................................................................................. 51 Annex 7: Financial Management and DisbursementArrangements ..................................... 63 Annex 8: Procurement Arrangements ...................................................................................... 72 Annex 9: Economic and Financial Analysis ............................................................................. 82 Annex 10: Safeguard Policy Issues ............................................................................................ 92 Annex 11: Project Preparation and Supervision ..................................................................... 99 Annex 12: Documents in the Project File ............................................................................... 100 Annex 13: Proxy Means Testing(PMT) ................................................................................. 101 Annex 14: Participation Agreements with Implementing Partners ..................................... 108 Annex 15: Risk Mitigation Measures for Issues Raised in the Detailed Implementation Review........................................................................................................................................ 126 Annex 16: Statement o f Loans and Credits ............................................................................ 128 Annex 17: Country at a Glance ............................................................................................... 130 Annex 18: Map (IBRD 36185) ................................................................................................. 132 - 1 - BANGLADESH SECONDARY EDUCATIONQUALITY AND ACCESS ENHANCEMENT PROJECT PROJECT APPRAISAL DOCUMENT SOUTHASIA SASHD Date: June 27,2008 Team Leader: Nazmul ChaudhuryJIrajen Appasamy Country Director: Xian Zhu Sectors: Secondary education (100%) Sector Managermirector: Michellefiboudhiichal Themes: Educationfor all (P) Rutkowski Project ID: P106161 Environmentalscreening category: Partial Assessment Lending Instrument: Specific Investment Loan [ 3 Loan [XICredit [ 3 Grant [ 3ProjectFinancingData Guarantee [ 3 Other: For LoansICreditslOthers: Total Bank financing (US$m.): 130.70 Recipient: Economic Relations Division, MinistryofFinance Bangladesh ResponsibleAgency: Government of Bangladesh, Directorate o f Secondary and Higher Education (DSHE), Ministryo f Education(MoE), ShikkahBhavan 16, Abdul Ghani Road, Dhaka, Bangladesh Tel: 956339019553542 Fax: 9564098 Email: - Expectedeffectiveness date: August 15,2008 Expectedclosing date: June 30, 2014 - 2 - I Does the project depart from the CAS in content or other significant respects? Re$ PAD A.3 [ ]Yes [XlNo 1 Does the project require any exceptions from Bank policies? Re$ PAD D.7 [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes IN0 I s approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated "substantial" or "high"? Re$ PAD C.5 [XIYes [ ]No Does the project meet the Regional criteria for readiness for implementation?Re$ PA^ n 7 [XIYes [ ] N o Project development objective Re$ PAD B.2, Technical Annex 3 The key project development objectives are to improve the quality o f secondary education, systematically monitor learning outcomes, and to increase access and equity inproject upazilas. Project description[one-sentence summary of each component] Re$ PAD B.3.a, TechnicalAnnex 4 The proposed project, covering 121upazilas, would consist of: (a) improvingeducation quality and monitoring learning levels inproject areas; (b) improving equity and access inproject areas through provision o f stipends to poor girls andboys; (c) strengthening the institutional capacity o f M o Eboth at central and local levels; and (d) establishing an effective monitoring and evaluation system. Which safeguard policies are triggered, ifany? Re$ PAD D.6, Technical Annex 10 Environmental Assessment (OP/BP 4.01). The activities proposed under the project do not pose significant environmentalrisks. Environmentalmitigation measures proposedunder the project would help in enhancing project benefits and inavoidinglminimizing adverse impacts on environment. Indigenous Peoples (OPBP 4.10). The project calls for special attention to the needs o f tribal chldren even though the incidence o f indigenous households i s very low inthe project areas. Mitigationmeasures proposed under the project will lead to enhanced access to quality educationfor these children. Significant, non-standard conditions, if any, for: Nil Board presentation: Nil Loadcredit effectiveness: Nil Covenants applicable to project implementation: Disbursement Condition (a) To be eligible for disbursements o f stipends and tuition, DSHE/SEQAEPU will: (a) by March 1and September 1o f eachyear, commencing 2009, carry out a comprehensive review o fthe progress o f the project duringthe precedingacademic year; (b) ascertain that stipends and tuition activities have been carried out inaccordance with the agreed Project Implementation Manual and the Stipends Manual; and (b) promptly furnish IDA with the findings and recommendations of such review, as well as a work program for the following academic year. Other Covenants (b) Project Management. M o E will establish andmaintain at the DSHE: (a) a SEQAEP Unit responsible for implementingthe Project, and to be headedby a Project Director, who will be accountable to the Director-General, DSHE; (b) a Monitoring and EvaluationWing (MEW) - 5 - responsible for coordinating stipend projects andrelated secondary education activities, monitoring and evaluation of the Project, as well as maintaining a database and documentation. (c) The Recipient shall: (a) cause the Directorate of Secondary and HigherEducation (DSHE) to carry out project implementation activities inaccordance with the annual operational plans andthe Project ImplementationManual (including the Stipends Manual, and Procurement Plan), as revised and agreedwith IDA; (b) ensure that the established SEQAEP Unit and the MEW is competently and fully staffedfor the entire Project period; and (c) provide adequate annual budgetallocationsto the SEQAE Project, including counterpart funding. (d) DSHEwill maintainUpazilaProject Offices inthe Upazilasinthe ProjectArea, and adequately staff themwithpersonnelhavingqualifications and experience satisfactory to IDA. (e) Accounts/Audit. The Recipient shall: (a) maintain separate accounts for the Project in a format acceptable to IDA; (b) furnishto IDA audit reports conducted by independent auditors, acceptableto IDA, within six months fi-om the endof each fiscal year; and(c) furnishquarterly InterimUnaudited Financial Reports (IUFRs) (within45 days fi-om the end of each quarter) commencing from Credit Effectiveness untilProject closure. MoEDSHE will maintainthrough the Project's implementation period a computerized financial management systemacceptable to IDA. MoEDSHE will appoint private audit firms to audit annually the disbursemento f stipends and tuition underthe Project. (0 Implementation. DSHEshall: (a) cause everyeducationalinstitutionunder the Projectto establish and maintain untilcompletion ofthe Project, a SchoolManagement Committee and a Parents Teacher Association, with Terms ofReference acceptable to IDA; and (b) enter into an annually renewable CooperationAgreement with eachEducationalInstitution, satisfactory to IDA; the Cooperation Agreement will be signed by eachEducational InstitutionbyDecember 31for that Educational Institutionto be eligible for the subsequent Academic Year. (g) Monitoring and Evaluation, Research andReporting. DSHE will maintain aManagement Information Systems (MIS) under terms and conditions satisfactory to IDA. DSHEwill usethe MIS for, inter alia, trackingKey Project Indicators relative to the stipendprogram, and for monitoring and evaluatingthe progress o fproject implementation. (h) DSHEwill: (a) prepare, under terms ofreference satisfactory to IDA, and furnishto IDA,onor about November 30,2010, a report integratingthe results o f the monitoring and evaluationactivities on the progress achievement inthe carrying out o f the Project; and (b) carry out aMid-TermReview with IDA,byFebruary 28,201 1, or such later date as IDA will request. (i)EnvironmentandSocialCovenants.TheRecipientshallcomplywiththeagreedEnvironmentand Social safeguards. - 1 - I.STRATEGICCONTEXTANDRATIONALE A. Country and sector issues 1. Bangladesh, with 145 million people and a per capita GNI o f $490, has recorded impressive progress in poverty reduction and certain human development outcomes. Per capita GDP growth has been above 5 percent since early 2000s, while headcount poverty has declined from 59 percent in 1991 to 40 percent in 2005. Gross primary enrolment rate is around 90 percent, secondary enrolment has more than doubled since independence, and the Millennium Development Goal (MDG) gender parity target has already been achieved at both the primary' and secondary education level. These are all remarkable feats when compared to countries at similar level o f income inthe region. At the secondary level, the Ministry o f Education (MoE) oversees a unique system o f public-private partnership which combines public financing with private provision o f education. More than 98 percent o f the secondary schools are managed and operated by the private sector with financial support from the government. Furthermore, the Government o f Bangladesh (GOB)has launched several reform measures in the education sector. GOB,with support from a series o f programmatic Education Sector DevelopmentSupport Credits from the World Bank, has been implementing a comprehensive policy reform agenda to ensure systemic improvement ingovernance, quality and relevance o f secondary education. 2. Much of the achievement inthe three-fold increase inoverall secondary enrolments and seven-fold increase in female enrolments since 1980 has been a result o f successful expansion o f the private sector via supply-side incentives and a gender-targeted program since the early 1990s. To address the supply constraint, supply-side incentives were given to private providers to open secondary schools in rural areas, and additional fiscal incentives to promote co-educational schools. To address demand side constraints, the female secondary stipends program which provides stipends and tuition waivers to female students was introduced - conditional upon maintaining regular attendance, passing grades, and remaining unmarried while in secondary school. Data show that significant progress has been made in enhancing access and equity: Female enrolment in secondary schools increased from 1.1 million in 1991to more than 4 million in 2006 and overall secondary enrolment increased from 4 million to over 9 million. Female gross enrolment rate more than doubled from 25 percent in 1992 to 60 percent in 2005, while overall gross enrolment rate also doubled from 27 percent in 1992 to 56 percent in2005. Interms o f gender-equity, female-to-male ratio increased from 62 percent in 1992 to 114percent in 2005 (i.e. share o f females intotal enrolments i s now close to 55 percent, compared to under 40 percent in early 1990s). 3. Despitethese achievements, there remain significant challenges: Internal efficiency and quality remains low. Drop out rates increase sharply after Grades 8 (48 percent at Grade 10 compared to 12 percent at Grade 8). As a result, completion rate at the secondary level is as low as 20 percent. While Secondary School Certificate (SSC) pass rates have shown improvement over the past few years, the number o f students appearing for the SSC examinations has decreased. Household and school sample-based testing o f basic numeracy and literacy skills reveal low overall levels o f learning quality as well. There is very little nationally or internationally comparable assessment o f quality o f learning. 1InBangladeshPrimary level consists ofGrades 1-5, while secondary level consists ofGrades 6-10. - 2 - Many poor children are still left out of the secondary school system, and this problem is becoming particularly acute for poor boys. Overall improvement in gross enrolments masks large disparities by poverty status. For instance, in 2005, the secondary school Gross Enrolment Rate (GER) among the richest fifty percent o f the population was 75 percent compared to 38 percent for the poorest 50 percent. Moreover, the GER is almost 10percent lower for poor boys compared to poor girls, and poor boys have experienced slower growth in GER over time compared to poor girls. While there has been significant enrolment growth for even poor girls duringthe decade o f the stipendprogram, enrolment levels for poor boys has remained stagnant. Female-to-male ratio among the poor, consequently, has overshot from 70 percent inmid-1990s to 120 percent in2005, reflecting a growing gender imbalance against poor boys. Institutional capacity remains weak despite past capacity-building efforts. Management, coordination and implementation capacity needs to be strengthened both at central and regional levels, particularly given the rapid staff turnover within the MoE. School level capacity also needs to be strengthened to ensure greater effectiveness o f interventions, and transparency and accountability. Monitoring and evaluation remains weak at both the project and ministv level. Capacity for effective monitoring and evaluation remains inadequate despite several efforts to strengthen technical capacity at M o E and its Management Information System (MIS) cell, the Bangladesh Bureau o f Education Information and Statistics (BANBEIS). In addition, rigorous evaluations on the impact o f programshave not been undertaken. 4. To build upon the successes o f the past decade, and to address challenges that still persist, GOBhas requested the Bank for further assistance. This signals a strongcommitment by the government to continuedinvestments to support improvementsinthe quality ofeducation and equity. B. Rationalefor Bankinvolvement 5. The rationale for Bank support is compelling. First, IDA has been supporting the pioneering stipend program since 1993 (FSSAP I1993-2001, FSSAPII 2002-2008) and the program is now implemented nationwide with GOB,Asian Development Bank (ADB), and the Norwegian Agency for Development Cooperation (NORAD) covering the remaining non-IDA sub-districts. Second, support to secondary education complements the large multi-donor support to primary education (Primary Education Development Program I1- PEDP 1I) and thus, expands, broadens, and deepens the equity and access focus in line with the MDG agenda. Third, supporting the achievement o f high quality secondary education i s a critical foundation for higher levels o f education and skills which are likely to have a significant impact on economic development. Fourth, in line with MoE's reforms under the IDA- supported Education Sector Development Support Credit series to improve governance, enhance accountability and improve teacher quality, the proposed project would help this agenda by supporting GOB efforts in developing a system o f objective pro-poor targeting scheme and in strengthening monitoring systems. Finally, past experience indicates the value added o f the Bank in bringing in comparative global experience, and a constructive critique in implementation, monitoring and evaluation. C. Higher levelobjectivesto whichthe projectcontributes 6. The proposed Project contributes to Bangladesh's long-term objective o f human capital development for sustaining economic growth and poverty reduction. The objectives o f the project are well aligned with the recent Poverty Reduction Strategy Paper (PRSP)* and the Bank's Country 'Unlocking the Potential: National Strategyfor Accelerated Poverty Reduction, Government o fPeople's Republic o fBangladesh, 2005. The PRSP lays out an ambitious agenda and commitment to systemic reforms. To generate - 3 - Assistance Strategy (CAS).3 The PRSP lays out the education sector strategy for Bangladesh focusing - on enhancing the quality o f education, ensuring equitable access and better utilization of scarce resources. The strategies provide policy directions, specify targets, and recommend actions required to attain these targets. The CAS emphasizes empowering the poor as one o f the two pillars. The CAS also identifies improving educational quality to be a critical challenge. It proposes to assist in these areas by strengthening the accountability - as part of governance agenda its cross-cutting theme. The proposed project's objectives are in line with those o f GOBas articulated in the PRSP - by aiming to improve the quality of education at the secondary level, while enhancing access o f education to the poor, it can play an important role ineffectively operationalizingGoB's strategy the education sector. 11. PROJECTDESCRIPTION A. Lendinginstrument 7. The proposed Bank instrument is a Sector Investment Loan (SIL) financed through an IDA credit. GOBis committedto increase access insecondary education to poor girls and boys, raise student learning levels, and ensure greater accountability at school level. Thus, the proposed operation i s the first o f its lund in Bangladesh. Lessons from this operation will be critical for GOBin restructuring its stipend programs, in enhancing secondary teacher and student performance, as well as in making schools more accountable to the community. Hence, the proposed project would contribute substantially to GoB's efforts inensuring education for all at secondary level. B. Projectdevelopmentobjectiveandkeyindicators 8. The key project development objectives are to improve the quality o f secondary education, systematically monitor learning outcomes, and to increase access and equity inproject upazilas. 9. The proposed Key Project Indicators(KPIs) are given inTable 1below. a/ Refersto the share of primary school completerswho complete Grade 10. b/ SSC passrateis basedon appearancein SSC Examinations. "Poor" refers to ProxyMeansTest (PMT) stipend beneficiaries; the baselinepassratefor the differentiatedincome groups are proxiedusingthe currentpassratesof students who would qualify for the stipendsbased on the PMT model. growth and reduce poverty, the PRSP focuses on: (a) employment generation; (b) nutrition; (c) maternal health; (d) quality o f education; (e) sanitation and safe water; (f)justice system; and (g) local governance. 3Country Assistance Strategy for the People's Republic of Bangladesh - FY06-09, Report No. 35193, The World Bank, 2006. - 4 - 10. These targets have been agreed upon, based on an examination o f past trends and a careful analysis o f the impact the project i s expected to have on improvements in these indicators during the project period. C. Project components 11. The proposed project would consist of: (a) improving education quality and monitoring o f learning levels in project areas; (b) improving equity and access in project areas through provision o f stipends to poor girls and boys; (c) strengthening the institutional capacity of MoE both at central and local levels; and (d) establishing an effective monitoring and evaluation system. The project will be implemented in 121 upazilas inBangladesh (see Annex 4) out o f a total o f about 500 upazilas. Component 1 - Improving Education Quality and Monitoring Learning Levels (Total: US$ 37.4 million,IDA: US$33.1 million) 12. The objectives of this component are to: (a) increase education quality through the provision of incentive awards based on academic performance to students, teachers and institutions; (b) improve student performance in English Language and Mathematics; (c) organize facilities and establishing a program to develop the reading habit in students; and (d) measure systematically learning levels by administering internationally comparable and national curriculum-based numeracy and literacy testing, that raise awareness of policy makers and stakeholders and help them adjust policies and interventions. Sub-component I.I: Incentive Awards to Students, Teachersand Institutions 13. This sub-component focuses on providingmonetary incentives to encourage rural students, teachers and institutions to reach and maintain higher levels o f achievement, understanding quality improvement as a continuous and long-term process. Incentives will be provided to students, teachers and institutions: StudentAwards: Achievement Award o f Taka 500 to best performing girls and boys based on final examination marks inGrades 6-9 inall project institutions (8 per institution); SSC Pass Award o f Taka 1,500 to each poor student (based on Proxy Means Test) who passes the SSC examinations or equivalent. TeacherAwards: Awards o f Taka 10,000 per institution per subject for Mathematics and Englishteachers if 70 percent or above o f students appearing in the SSC or equivalent examination achieve passing marks in these subjects. SSCInstitutionalAward 0 Awards o f Taka 20,000 to institutions based on improvements in annual increase in students appearing and passing the SSC examination and equivalent. Awards o f Taka 75,000 to institutions achieving 90 percent promotion rate from Grades 6-9 with minimumenrolment o f200 students fromGrades 6-10. Sub-component1.2: Supportfor EnglishLanguage andMathematics Learning and Teaching 14. This sub-component aims to: (a) assist students in improving their performance in English Language and Mathematics (subjects with the poorest results in SSC and equivalent examinations); and (b) improve classroom teaching-learning processes and interactioninEnglish Language andMathematics. 15. The sub-component activities will have two underlying thrusts: (a) improving conceptual understandingand basic slulls o f students at Grades 6-8; and (b) providing supplementary revision geared - 5 - to the SSC and equivalent examinations in the two subjects at Grades 9-10. The project would finance the following key activities in support of the provision o f additional classes for English Language and Mathematics: (i) capacity building of teachers at upazila level; (ii) follow-up sessions with teachers at cluster level; (iii)in-school supervision of classroom teaching by mobile teacher resource team members; and (iv) orientation of Head Teachers and Assistant Head Teachers to provide appropriate school-level support to teachers. Sub-component 1.3: Developing the ReadingHabit 16. The objective of this subcomponent i s to help students develop the reading habit using a participatory approach. The project would partner with a specialized agency in the establishment and management o f reading programs in4,400 project educational institutions focusing on poorly performing schools based on the 2007 SSC and equivalent examinations. 17. The project would finance: (a) setting up o f a reading program at classroom level for Grades 6-10; (b) provision of age- and ability-appropriate books in Bangla and English; (c) training of teacher organizerdlibrarians to maintain the effective operation o f the reading program; (d) a simple end-of-year test; and (e) annual Book Prize/Award incentive systembased on the number o fbooks read. 18. The planned reading program is to begin in January 2009 for the first batch o f 1,000 institutions. The selected agency would monitor their implementation tasks internally on a monthly basis and submit quarterly reports to the SEQAEP Unit, which would have oversight responsibility for smooth implementation of this sub-component. Sub-component 1.4: Assessment of Education Quality 19. ms sub-component aims to systematically measure the quality o f learning by administering internationally comparable and national curriculum-based numeracy and literacy testing on a sample basis, which will be representative at a national level. The results of these independent assessments will be fed back to policymakers and stakeholders to raise their awareness about the quality of education, and adjust quality-related policies and interventions accordingly. The long-term vision i s to build the appropriate capacity to mainstream the assessment system. It will finance: (a) the development of testing instruments for Mathematics and English; (b) the administration of the instruments, and processing and analysis o f data; and (c) the dissemination and feedback to stakeholders from central to community levels. External third-party agencies will needto be hiredfor executingthe assessment activities. Component2 -ImprovingEquityandAccess (Total: US$106.7 million,IDA: US$87.5 million) 20. The objective of this component i s to increase access and retention o f poor girls and boys, and ensure their completion o f secondary schooling through provision of stipends and tuition, based on pro- poor targeting and educational criteria. Sub-component 2.1: PMT-based Stipendr;and Tuition to the Poor 21. The objective ofthis sub-component is to increase access and retention o f poor girls and boys, based on pro-poor targeting and educational criteria. This sub-component finances stipends and tuition to poor girls and boys. A pro-poor targeting of stipends and tuition program will be implemented, based on Proxy-Means Testing (PMT) (see details in Annex 13). This involves six key steps: (a) selecting verifiable indicators basedon poverty analysis; (b) identifyingpoor households based on these indicators; (c) processing o f appeals cases where applicants claim o f unfair exclusion; (d) disseminating beneficiary lists after verification and appeals process; (e) preparing award confirmation forms based on educational - 6 - compliance criteria; and (0 disbursing stipends and tuition through the banking system. The variables selected in the PMT formula are subject to revision based on the lessons learnt from the pilot and in concurrence with MOE experts provided that the agreed variables are inthe 2005 Household Income and Expenditure Survey (HIES) data. Out o f the current 121 FSSAPII upazilas, PMT targeting will be implemented in 60 randomly chosen upazilas starting from Academic Year 2009. After a rapid assessment o f the PMT operational modality, targeting will be scaled-up to cover all 121 upazilas from Academic Year 2010 onwards. Agrani Bank, which has been involved inthe disbursement o f stipends in the FSSAP program over the last decade, will be responsible for the disbursement o f stipends and tuition. The Local Government Engineering Department (LGED) will be the PMT administrator. Currently GOB and IDA are in the process o f developing a Social Protection project (the National Social Protection Project (NSPP)) targeted to ultra-poor urban households. Both the Education and Social Protection projects are working together with LGEDto unify the targeting system. This will build synergies across sectors and help buildgovernment capacity towards an ultimate national targeting system. 22. Under the PMT-based stipends and tuition program, eligible students belonging to the poorest 50 percent o f households inproject upazilas will receive stipends and tuition and eligble girl students from households that lie between the 50' and 80' consumption percentile will receive tuition only. It i s expected that the stipend and tuition program would support about three million student-years for education in Grades 6-10 during the project period, which covers 10 semesters o f five academic years starting from January 2009 (first phase: 60 upazilas) and 8 semesters o f four academic years starting from 2010 (second phase: all 121 upazilas). Tuition only program would benefit an additional 1.4 million girl- years in that period. Both categories o f beneficiaries will have to meet the following criteria to remain in the program: (a) maintaining 75 percent average attendance; (b) maintaining 33 percent pass marks in final examinations; and (c) remaining unmarried till completion o f secondary school (Grade 10). Sub-component 2.2: General Stipends and Tuition Program 23. The objective o f this sub-component i s to ensure a smooth transition from the continuing female stipend and tuition program to the PMT-based program. The project will support two types o f program: (a) existing female stipends and tuition program in all upazilas for the remainder o f the academic year 2008 and in the 61 non-PMT upazilas for the 2009 academic year; and (b) the pro-poor self targeting (PPST) scheme that was piloted under FSSAPII would also be financed in all 424 schools for the remaining of the 2008 academic year, and would be continuedinthe roughly 200 schools inthe non-PMT upazilas for academic year 2009. Sub-component 2.3: Improving School Facilities 24. The provision o f improved school facilities is likely to lead to better health outcomes for children and increase their aptitude to learn. This sub-component i s intended to attract and retain girls and boys in schools, through the provision (using community participation) o f safe drinking water and sanitation facilities to selective schools based on needs assessment. It will provide safe drinking water and twin latrine facilities, based on agreed guidelines. Component 3 - Institutional Capacity Strengthening (Total: US$ 9.9 million, IDA: US$ $8.4 million) 25. The objectives o f this component are to: (a) strengthen the existing structure for managing and implementing the proposedproject; (b) develop and strengthen the capacity to implement programs aimed at increasing educational quality, and to deliver financial support to targeted beneficiaries effectively; (c) strengthen accountability at school and upazila level; and (d) raise education awareness amongst stakeholders with focus on education quality, targeting, and accountability. - 7 - Sub-component 3.I: Project Management 26. The overall responsibility for the proposed project would lie with the Directorate of Secondary and Higher Education (DSHE), as the implementing agency. It will be assisted by two units: DSHEMonitoring and Evaluation Wing (MEW) and DSHEEEQAEP Unit. The MEW will support DSHE to establish an effective monitoring and evaluation unit primarily to strengthen M&E capacity to monitor, review and evaluate project activities regularly; monitor, review and coordinate all DSHE stipends programs; monitor and evaluate other DSHE programs; and coordinate the dissemination o f national assessment of learning achievement, and maintain a repository o f integrated databases, relevant reports and studies. The objective of the SEQAEP Unit is to enable DSHE to establish a strong management capacity to implement the proposed project. It will be staffed with a modest number o f key technical, procurement, and financial management staff. In addition, project management and implementation capacity will be augmented through the use of several government and private specialized agencies. Sub-Component 3.2: Institutional Capacity Building 27. The objective is to strengthen the capacity o f M o E to provide services at central, upazila, and community levels. Staff development will be an essential part o f capacity-building, especially for a project that has many new and innovative initiatives that require careful monitoring for program learning. T h ~ sub-component will finance orientatiodworkshops, and in-country and international training. s Sub-Component 3.3: School Management Accountability 28. The objective is to support MoE's efforts to increase accountability and transparency at the school level through the strengthening o f School Management Committees (SMCs), Parent Teacher Associations (PTAs) and training to these stakeholders. Activities under this sub-component will support: (a) formation o f PTAs and SMCs; (b) training and capacity building of these PTAs and SMCs, and (c) SMCPTAs inconducting social audits andenhance accountability. Sub-Component 3.4: Education Awareness and Community Mobilization 29. The objective o f this sub-component is to build and increase awareness among all key stakeholders, with emphasis on the community and beneficiaries. Since the proposedproject places greater focus on quality and introduces new approaches such as pro-poor targeting based on proxy means testing, it is important that these messages are effectively communicated to all stakeholders. Two types o f activities will be supported: (a) educational awareness programs; and (b) community mobilization. Component4 MonitoringandEvaluation(Total:US$1.7 million;IDA: US$1.7 million) - 30. The objective o fthis component i s to: (a) systematically document all project input,process, output, and outcomes; and (b) linkproject interventions with outcomes. Sub-Component 4.I: Monitoring 31. The objective o f this sub-component is to strengthen capacity to monitor through systematic integration o f various data streams (e.g., beneficiary verification, stipend disbursement, school enrolment, learning assessments), increasing database and processing capacity, training on educational management information systems, and provision o f specialized technical assistance. A comprehensive and integrated data monitoring system would be inplace to ensure that all project inputs,process, outputs, and outcomes - 8 - are tracked. This sub-component will finance: (a) annual census o f project institutions; (b) collection and maintenance o f the PMT database; and (c) third party periodic monitoring o f education institutions and PMThousehold verification. Sub-Component 4.2: Evaluation 32. This sub-component aims at carrying out rigorous impact evaluation through development o f a detailed baseline survey (household and school-based), and follow-up surveys (one before MTR and another just before project completion) to be able to measure the effectiveness and impact of project interventions - e.g. incentive awards, additional classes in English and Mathematics, reading habits and PMT based stipends. The baseline survey will also provide critical information to calibrate the KPIs (see details inAnnex 3). D. Lessonslearnedand reflectedinthe projectdesign 33. Based on the experience o f previous projects in Bangladesh, as well as international experience, key lessons incorporatedinthe project design include: Quality ofeducation. One o f the main lessons from the implementation of FSSAPIIhas been that the impact from interventions such as teacherihead teacher training and the provision o f incentives for quality education diminishes if the core problems impinging upon education quality are not tackled upfront, especially inan environment o f low-quality education. Furthermore, provision o f safe drinkingwater and toilet facilities is likely to reduce the burden o f disease and increase students' aptitude to learn. The Project attempts to address the issues affecting the quality o f secondary educationby focusing on areas of poor performance by students such as in Mathematics and English, sowing the seed for a systematic measurement o f student learning, andproviding better school facilities. Efforts to improve quality will only produce results if there are effective teachers in the classrooms. Efforts to improve quality will not succeed unless there are capable teachers. Teacher provisioning was a significant challenge in the past in secondary schools, but, with a few exceptions, most schools now have the requisite number o f teachers, and the focus is now on improvingteacher quality through changes in classroom practices. This i s being supported through the focus on strengthened on-site support to teachers based on lessons from FSSAPII, linked to recurrent teacher training, as well as dissemination of good teaching practices. Maintaining gender balance. Over the last two decades, Bangladesh has been highly successful in expanding girls' access to secondary education, to the extent that the ratio o f girls to boys i s currently about 55 percent. Whilst keeping the focus on girls will always be important for various socio-economic reasons, it i s equally important to consider the problem o f poor boys in enrolling and completing secondary education. Hence, the Project now provides stipends to poor boys, while upholdingthe focus on girls. An area where greater emphasis is needed i s in increasing the number o f female teachers in secondary education, given that research has shown that parents are less willing to send their daughters to school with only male teachers. In this regard, GOBis implementing a policy giving priority to female teacher recruitment. Additionally, international experience also indicates that the school environment has to cater specifically to girls' needs. This Project, therefore, incorporates the safe water and sanitation program featured inprevious FSSAPprojects. Reaching and retainingpoor students in school. The lesson from implementation o f the FSSAPIand I1 and the recent pro-poor self targeting pilot on access and retention o f poor students in secondary education, revealed that it i s necessary to: (a) have a systematic method o f selecting poorer students; (b) raise adequate awareness among communities; (c) provide adequate amount o f stipends to meet basic - 9 - school costs; and (d) conduct appropriate evaluation to assess impact. The Project will introduce a Proxy- Means Testing approach which allows selection o f poor students systematically, community awareness raising, validation o f eligibility, and provides for an appeal process. Moreover, the stipend amounts are based on household survey data. Enhancing access through demand-side interventions. The Government's strategy to promote education for girls through demand-side interventions has boosted access. In particular, the Female Secondary Stipends program provides stipends and tuition waivers to female students inrural areas from Grades 6-10 (with close to four millionreceiving stipends annually). The Government has extended this provision to Grades 11-12 as well, through its own resources. It has been estimated that an additional year of the stipend program can increase female secondary enrolment by as much as eight percent. Thus, the Project focuses on the provision o f stipends and tuition for both poor girls and boys to ensure their retention duringthe whole cycle of the secondary system. Community Involvement. Community involvement i s essential for improving service delivery in remote and disadvantaged areas and for ensuringproject sustainability. International experience indicates that when communities have meaningful responsibilities, control over resources, and are accountable, they become actively engaged inproject activities. These will bolster community participation. Capacity Building of SMCs/PTAs. It is recognized that communities play an important role in the successful implementation o f educational activities. The implementation of the management accountability sub-component under FSSAPII showed that community participation i s enhanced if school level stakeholders are aware of their roles and responsibilities, including accountability. The capacity o f SMCs needs to be enhanced to ensure that they play their roles effectively. This is being addressed through various initiatives - training o f SMC members on roles, responsibilities and mechanisms to ensure quality in schools, and building greater awareness among communities of project activities to ensure greater accountability and transparency. Similarly, the role o f PTA has to be strengthened to establish a strong linkbetweenteachers and parents for ensuring appropriate student learning and support. Sustainability of previous operations. Lessons from FSSAPI and FSSAPII implementation indicate the need to design and support institutional arrangements for project implementation to maximize institutional development impact, and ensure sustainability. Under these operations, the Upazila Secondary Education Offices were established, and a Program Monitoring Unit was created to provide direct linkage with DSHE and support stipends programs in general. This Project will build upon these achievements, and strengthen DSHE management, with an emphasis on boosting upazila and school-level capacity supported by appropriate outsourcing o f specialized and technical activities. Ensuring rigorous project evaluation. Establishing a comprehensive monitoring and evaluation system i s critical in ensuring that the approaches adopted by the project under various components are properly evaluated. This will help determine whether the project i s meeting its goals and objective, and also provide informatioddata for real-time corrective action. Under the Project, extensive emphasis i s placed on these aspects, and adequate resources have been provided to enable research, surveys and rigorous impact evaluations to be undertaken. E. Alternatives considered and reasons for rejection 34. Several alternative approaches and design elements were considered: Continuation of current stipends program. The stipend program, as it currently exists, was only targeted to girls, to encourage families to send their girl child to secondary school. However, gender -10- parity has now been achieved - female-to-male ratio increased from 62 percent in 1992 to 114 percent in 2006. The significant challenge is to get the poor, both boys and girls, into school, as the GER at the secondary level i s only around 38 percent for the poorest fifty percent o fthe population. Keeping the value of stipends constant. When the female stipend program was instituted in the early 1990s, the value o f the stipend was based on the cost o f attending secondary school. Given that the stipend amount has not been enhanced since the beginning o f the program, the real value of the stipend has eroded significantly. While it did attract girls to come to school, enrolment rates among the poor have continued to languish with almost no increase over the past decade. This i s mainly due to the increasing direct and indirect costs o f schooling. Hence, if the value o f the stipend is not increased, it will not be enough to attract poor families to send their children to school. Thus, the stipend amount has been revised to reflect the prevailing direct costs o f schooling for an average poor household. Management Structure. Three options were considered: (a) a pure project implementation unit; (b) a small team managing project implementation activities through substantial outsourcing; or (c) mixture o f (a) and (b), which involves a modest number o f key technical, procurement and financial management staff, complemented by other government/private specialized agencies. The first two options were discarded because they do not lend easily to institutional development and project sustainability, and they render coordinationdifficult across various M o E units. The third option was selected because itbuildson the strength of the present set-up and provides for strengthened capacity, as well as allows better coordination within DSHE/MoE and institutionalization o f project activities. Focus on supply-side interventions. While building schools and classrooms is an option, it was rejected because such interventions are unlikely to attract children into schools, particularly the most disadvantaged. Providing incentives (stipends) to families to encourage their children to enroll into secondary schools, and making institutions more accountable to parents were considered to be more effective in enhancing access and improving quality. Hence the approach used in the Project focuses on the demand-side -i.e. providing stipends to children while improvingthe quality of educationprovided. Enhancing skills in all subjects. Evidence shows that the two subjects that Bangladesh students are weakest in are English and Mathematics. Given that international evidence shows that proficiency in these two subjects i s highly correlated to overall performance at the secondary level, as well as longer term earnings o f the individuals, it was decided that the project would focus on improving performance in these two subjects through provision o f additional tutoring in these subjects, and inculcating a culture o f reading, rather than usinglimited financial resources ina diffused manner on all subjects. Focusing only on policy reforms. IDA has been engaged with the Government of Bangladesh on a series o f policy reform initiatives (the programmatic Education Sector Development Support Credit (ESDSC 1-111) series) that have attempted to address systemic governance issues in order to raise the quality and cost-effectiveness o f service delivery, and improve equity o f access to secondary education. While these policy reforms have ledto improvements inthe overall governance and quality o f the system, through assisting the government in the implementation o f specific interventions underlying the reform program, the project will complement the government's policy reforms, as well as enhance their effectiveness. -11- 111. IMPLEMENTATION A. Institutional and implementation arrangements 35. The project will be implemented over a five-year period (2008-2013) in 121 rural upazilas. At the national level, under the guidance o f a Steering Committee chaired by the Secretary, MoE, the overall responsibility for the proposed project would lie with the Directorate o f Secondary and Higher Education (DSHE), as the implementing agency. DSHE will be assisted by two units: DSHEMonitoring and Evaluation Wing and DSHEBEQAEP Unit. The Program Monitoring Unit (PMU), supported by FSSAPII, was successful in improving coordination o f the stipend programs within DSHE, and helping DSHE to monitor stipend projects. In order to consolidate gains from the integration o f the FSSAPII within the DSHE through the Program Monitoring Unit (PMU), and ensure effective coordination o f MoE's stipend program, the current D S H E R M U will be upgraded as a Monitoring and Evaluation Wing (MEW), headed by a Director, and reporting directly to the Director General, DSHE. Basedon FSSAPII experience, DSHEBEQAEP Unitwill be set up with a modest number o f key technical, procurement, and financial management staff. In addition, project management and implementation capacity will be augmented through the use o f several government andprivate specialized agencies. 36. Agrani Bank, a long-standing banking partner in the FSSAP program, will disburse stipends to students and tuition to schools as per a participation agreement with MoE. BANBEIS will be responsible for conducting annual school census in the 121 upazilas under a Memorandum o f Understanding with MOE. LGED will be administrating the proxy-means test under a participation agreement. The Department o f Public Health and Engineering (DPHE) will enter into a participation agreement with the SEQAEP Unit to implement water and sanitation activities (See Annex 14-Draft Agreements). 37. Upazila Secondary Education Offices (USEOs) will be responsible for assuring the timely and accurate processing o f the forms required for stipend and tuition payment, facilitating timely payment o f stipends by Agrani branch offices, and working with SMCs, school management and PTAs to implement the quality, outreach and school management and accountability component activities. School Management Committees (SMCs) will be responsible for ensuring school performance consistent with the agreed criteria and reporting. B. Monitoringand evaluation of outcomesh-esults 38. A comprehensive and integrated data monitoring system will be in place to ensure that all project inputs, process, outputs, and outcomes are tracked from the very beginning. The MEW will monitor and review all stipend programs under DSHE, coordinate the dissemination o f national assessment o f learning achievement, and maintain a repository o f integrated databases and relevant reports and studies. LGED, as the PMT administrator, will collect, process and maintain a dynamic database associated with all PMT- related activities. This also includes collecting project school data forms on teachers, enrolments, attendance, examinations and other education compliance data on PMT beneficiaries and integrating that information with the PMT database. The SEQAEP Unit Data Processing Center (SEQAEPDPC) will collect and process data associated with non-PMT related activities, usingthe data platform developed by LGED, to facilitate an integrated database. Data on non-PMT related activities would be forwarded to LGEDto merge with the PMT database for integrated data analysis. 39. T o supplement the internal monitoring mechanism, the Bangladesh Bureau o f Educational Information and Statistics (BANBEIS) would provide an independent monitoring on the inputs, processes and outputs associated with various components o f the project. BANBEIS will conduct a Census o f all project schools in 121Upazilas, on an annual basis, and prepare annual report based on Census data. - 12 - 40. A rigorous impact evaluation will be undertaken to linkproject interventionsto outcomes. Because the evaluation requires a complex panel survey - comprehensive baseline survey before any intervention, resurveying the same households, children, and schools, after project implementation, the impact evaluation activities will be carriedby an independent survey firm. 41. Semi-annual and Mid-Term Review. Semi-annual reviews will be undertaken jointly by the SEQAEP Unit and IDA. Supervision coverage will be expanded through visiting a larger number o f sites. Additional supervision visits will also be undertaken on a random basis, to review overall implementation on project activities including fiduciary issues. A mid-term review (MTR) would be held approximately in January 2011. T w o months prior to the MTR, a comprehensive report on project progress and achievements would be prepared by the external evaluation agency and submitted to the SEQAEP Unit. The reports would provide the basis for review o f the Project. C. Sustainability 42. The sustainability o f this project will ultimately depend on the success of the implementation o f the quality interventions, the PMT mechanism and capacity development. To ensure sustainability o f quality interventions, these interventions will be rigorously evaluated, and the design refined as needed. The capacity o f LGED to be the PMT administrator will be significantly enhanced. A sustained education awareness and community mobilization campaign will also be designed and implemented to ensure that all stakeholders are fully informed about the targeting procedures to be followed under the PMT. In addition, the PMT will be rolled out in phases to ensure smooth implementation. If the mechanism i s found to work effectively, GOBi s likely to extend implementation to the whole country in phases. Finally, emphasis is beingplaced inthe project on buildingcapacity of key stakeholders at all levels - e.g. SMCsETAs, upazila offices, and DSHE. 43. The fiscal sustainability o f the project will be dependent on the willingness of Government to meet recurrent costs associated with the project. Fiscal simulations have been undertaken to analyze the additional budgetary implications for mainstreaming the project under various scenarios. These simulations show that the Government will be able to absorb the additional recurrent costs which would make these investments sustainable. D. Criticalrisksandpossible controversialaspects I I E E E -1 - I m I jT E . m . m . . . . . I. I* I I - 16- E. Loadcredit conditions and covenants Disbursement Condition T o be eligible for disbursements o f stipends and tuition, DSHEBEQAEPU will: (a) by March 1 and September 1 o f each year, commencing 2009, carry out a comprehensive review o f the progress o f the project during the preceding academic year; (b) ascertain that stipends and tuition activities have been carried out in accordance with the agreed Project Implementation Manual and the Stipends Manual; and (b) promptly fmish IDA with the findings and recommendations o f such review, as well as a work program for the following academic year. Other Covenants Project Management. M o E will establish and maintain at the DSHE: (a) a SEQAEP Unit responsible for implementing the Project, and to be headedby a Project Director, who will be accountable to the Director-General, DSHE; (b) a Monitoring and Evaluation Wing (MEW) responsible for coordinating stipend projects andrelated secondary education activities, monitoring and evaluation o f the Project, as well as maintaining a database and documentation. The Recipient shall: (a) cause the Directorate o f Secondary and Higher Education (DSHE) to carry out project implementation activities in accordance with the annual operational plans and the Project Implementation Manual (including the Proxy Means Testing Manual, and Procurement Plan), as revised and agreed with IDA; (b) ensure that the established SEQAEP Unit and the MEW is competently and fully staffed for the entire Project period; and (c) provide adequate annual budget, allocations to the SEQAE Project, including counterpart funding. DSHE will maintain Upazila Project Offices inthe Upazilas inthe Project Area, and adequately staff them with personnel having qualifications and experience satisfactory to IDA. 0 Accounts/Audit. The Recipient shall: (a) maintain separate accounts for the Project in a format acceptable to IDA; (b) furnish to IDA audit reports conducted by independent auditors, acceptable to IDA, within six months from the end o f each fiscal year; and (c) furnishquarterly Financial Monitoring Reports (within 45 days from the end o f each quarter) commencing from Credit Effectiveness until Project closure. M o E D S H E will maintain through the Project's implementation period a computerized financial management system acceptable to IDA. M o E D S H E will appoint private audit firms to audit annually the disbursement o f stipends and tuition under the Project. Implementation. DSHE shall: (a) cause every educational institution under the Project to establish and maintain until completion o f the Project, a School Management Committee and a Parent-Teacher Association, with Terms o f Reference acceptable to IDA; and (b) enter into an annually renewable Cooperation Agreement with each Educational Institution, satisfactory to IDA; the Cooperation Agreement will be signed by each Educational Institution by December 31for that Educational Institution to be eligible for the subsequent Academic Year. Monitoring and Evaluation, Research and Reporting. DSHE will maintain a Management Information Systems (MIS) under terms and conditions satisfactory to IDA. DSHE will use the M I S for, inter alia, tracking Key Project Indicators relative to the stipend program, and for monitoring and evaluating the progress o fproject implementation. DSHE will: (a) prepare, under terms ofreference satisfactory to IDA, and furnish to IDA, on or about November 30, 2010, a report integrating the results o f the monitoring and evaluation activities on the progress achievement inthe carrying out o f the Project; and (b) carry out a Mid-Term Review with IDA, byFebruary28, 2011,or such later date as IDAwill request. - 17- Environment and Social Covenants. The Recipient shall comply with the agreed Environment and Social safeguards IV. APPRAISAL SUMMARY A. Economic and financial analyses 44. Cost-Benefit Analysis. This analysis covers only the project period from 2008 to 2013. For the cost streams, the analysis uses: (a) aproject cost of US$155.7 million (financed by GOBand IDA); (b) private, direct costs o f schooling incurred by households; and (c) the opportunity costs o f earnings foregone by childrengoing to school. For the benefits stream it used(i) increased life-time earnings and probabiIity o f employment o f workers who have higher levels o f educational attainment; and (ii)increased cycle completion rates. The cost benefit analysis done for the project found an internal rate o f return (IRR) o f about 22.2 percent and a net present value o f about US$74.2 million assuming a 12 percent discount rate. Sensitivity analysis was also conducted and they show an IRR o f over 21 percent under all mediumhigh case assumptions of changes ininternal and external efficiency. 45. Fiscal Sustainability Analysis. Based on the proposed cost-sharing arrangements, projections were made on the fiscal sustainability o f the project under a base case and a highcase scenario. Assuming that the PMT approach i s adopted across the country, the long-term sustainability will be dependant on two key factors: (a) the availability of revenue to meet the additional recurrent costs that will inevitably arise as a result of adopting the strategy o f providing demand-side stipends to the poor; and (b) the willingness of Government to meet those new recurrent costs at possibly the expense o f other budget claims. Through its continued support for the female secondary stipend program, the Government has indicated its commitment to support demand-side interventions at the secondary level. GOBhas made it clear that it regards the successful development and continuance of high-quality and equitable secondary education as one of its hghest priorities. 46. Simulations were conducted to estimate and analyze the additional budgetary implications for mainstreaming the PMT targeting. The results show that the additional annual recurrent cost implications o f supporting poor students once the project ends will be an additional US$25-27 million or so. Simulations show that the increasesinrecurrent budget available inthe first year subsequent to the end o f the project (between 2013/14 and 2014-15) are about $30 millioninthe base case scenario and about $70 million in the high-case scenario. Hence, under both circumstances, the Government will be able to absorb the additional $25-27 million increase in recurrent costs, which would make these investments sustainable. B. Technical 47. PMT Administration. Given the complexities involved in the PMT initiative, several options were explored to identify a specialized agency to serve as a PMT administrator. Based on the assessment on key criteria including substantial presence with local level staff, experience with large-scale and systematic data collection and data processing under time-bound deadlines, and capacity for mobilizing the community locally, LGED (Local Government Engineering Department) was selected. Thus, DSHEEEQAEPUnit and LGEDwill enter into a Participation Agreement that would include procedures and implementation arrangements related to: (a) awareness and community mobilization regarding the PMT process; (b) collection of on-demand applications to identify poor girls and boys; (c) dissemination o f beneficiary list after verification and appeals process; (d) the preparation o f Award Confirmation Forms (ACF) based on educational compliance criteria; and (e) a time-bound action plan to carry out those services. - 1 8 - 48. PMT would be introduced in a phased manner. It will be implemented in 60 randomly selected upazilas in the first year and after a rapid assessment o f the operational modality, it will be scaled up to cover all 121 project upazilas from the second year. This "phase-in" approach will allow other stipend programs, including that in GOB-funded areas, to explore the possibility o f using this PMT-based targeting scheme. Moreover, similar targeting schemes are being piloted in other sectors in the country. Lessons o f implementation experience from this PMT-scheme and other pilots will be useful, to the extent possible, inrealizing a long-termvision to develop a common targeting platform. 49. Disbursement of Stipends and Tuition. Following the partnership adopted in the FSSAPII project, Agrani Bank will continue to serve as the primary agency in the disbursement o f stipends and tuition in the proposed project. A new Participation Agreement between M o E and Agrani Bank, incorporating lessons of experience over the last decade, will include: (a) the provision o f service charge to Agrani Bank based on actual disbursement; (b) the process o f stipends and tuition disbursement; (c) a time-bound action plan completing disbursements; and (d) the process o f reconciling financial statements. In addition, the Participation Agreement would include accountability measures to ensure that Agrani Principal Office, and upazila branches provide quality and timely services following the agreed disbursement schedule. 50. Monitoring and Evaluation. To facilitate a systematic and integrated data monitoring system, the current D S H E R M U will be upgraded as a Monitoring and Evaluation Wing (MEW) and given the task to monitor and review all stipend programs under DSHE, coordinate the dissemination o f national assessment o f learning achievement, and maintain a repository o f integrated databases and relevant reports and studies. As the PMT administrator, LGED will collect and process data, and maintain a dynamic database associated with all PMT-related activities. The SEQAEP Unit data processing center (DPC) will collect and process data associated with Non-PMT related activities, usingthe data platform developed by LGED, to facilitate an integrated database. T o supplement the internal monitoring mechanism, the Bangladesh Bureau o f Educational Information and Statistics (BANBEIS) will be deployed to provide an independent external monitoring on the inputs, processes and outputs associated with various components o f the project. BANBEIS will conduct annually a census of all project schools in 121 upazilas, and prepare annual reports based on census data. Furthermore, independent survey firm(s) will carry out a detailed baseline survey (household and school-based), and follow-up surveys (one before MTR and another just before project completion) to measure the effectiveness and impact of project interventions. 51. English Language and Mathematics - Teaching Content and methodology. English (EL) and Mathematics (Math) have been identified as the most problematic subjects for secondary schools with the highest failure rates in the SSC examinations. H o w can the project help bridge the conceptual and s h l l gaps? There i s considerable depth in understanding within Bangladesh o f learner centered-approaches to EL and Mathteaching. Organizations are being identified as potentialpartners for ELto develop training programs and materials for teachers in project institutions. The scope is more limited for Math but the Bangladesh Mathematical Olympiad movement, while aimed at brighter students, has identified learner- centered pedagogical processes to help weaker students. 52. With regard to issues outside the scope o f this project which impinge on this sub-component, there are concerns about the NCTB curricula inEL and Math, and the proficiency o f teachers recruited. While project activities could continue with the expectation that student learning and examination performance would benefit from project interventions, students would benefit enormously from curriculum and textbook development, and examination reforms. Similarly the recruitment o f suitably qualified teachers with adequate subject-based training would greatly enhance student learning and achievement. M o E has embarked on reforms inthese areas such as the establishment o f NTRCA which ensure qualified teachers are hired in the system, and production o f good quality textbooks. These provide a sound framework for the planned quality interventions (see Annex 1 for details on GOBreforms). - 19 - 53. Implementation Capacity. The Directorate o f Secondary and Higher Education (DSHE), the proposed implementing agency, will face a challenge if it were to implement the project fully with its current capacity. Therefore, DSHE's capacity will be strengthened through a SEQAEP Unit, which will be responsible mainly for planning, implementation, coordination, and reporting, and a proposed Monitoring and Evaluation Wing, responsible for monitoring and evaluation under the project, as well as other DSHE's operations. At the upazilas level, Upazila Secondary Education Officers recruited under the FSSAP programs, and likely to be transferred to the revenue budget, will enable DSHE to coordinate with educational institutions, and other local level stakeholders. In addition, DSHE's capacity will be boostedthrough use o f other special agencies such as BANBEIS, LGED, and Agrani Bank. 54. School Management Accountability. The primary entity on which school management accountability will rest would be the School Management Committees, supported by Parent-Teacher Associations. Both the SMCs and PTAs will be trained on their roles and responsibilities in school management. In order to ensure proper information dissemination, the proposed project would feature education awareness and community mobilization campaigns focusing on major project activities. Furthermore, to ensure greater transparency provision would be made for public disclosure at the local level and for social audits. C. Fiduciary Financial Management (FM) 55. Although, like most o f the government departments, DSHE has no financial management organization, it has been providing financial management support to project implementation through project specific FMstaff under the Project ImplementationUnits. DSHE has been appointing the teachers o f government colleges on deputation in the key positions and hiring remaining staff under the project. The capacity attained through the training and hands on experience of the key FSSAPII FM staff could not be adequately sustained due to application o f government procedures on transfer and posting o f teachers. However, the capacity attained would be partially sustained by retaining in the financial management section o f the SEQAEP Unit to be established, the Accounts Officers and some other accountingstaff on the basis o f needs assessment. 56. An appropriate FM system for the project has been agreed with adequate staffing, internal control measures, disbursement arrangement, and internal and external audit arrangements meeting the requirements o f Bank's OP/BP 10.02. A project organogram for SEQAEP has been drawn up indicating staff positions in the financial management section o f the SEQAEP Unit and the reporting mechanisms, which i s adequate for the project. The job descriptions and the requisite qualifications for the key positions are specified in the TORS, which are included in the Project Implementation Manual. A Financial Management Specialist (FMS) with a professional accounting qualification and having appropriate project financial management experience will be appointed to lead the FM section of the SEQAEP Unit. The FMS will be responsible to the Project Director for duly discharging all project FM functions with the assistance of other FM staff in the section. The F M S will have exposure to GOBand World Bank's financial management and disbursement requirements and hands on experience on use o f computerizedaccounting systems. Agrani Bank, the commercial bank that carried out the disbursements to beneficiary students and schools under FSSAPII, will be used in the project and the Participation Agreement provides a ready framework to negotiate an improved one based on the lessons learnt (see Annex 7 for details). Procurement 57. Bangladesh has undertaken procurement reforms which i s a major step forward in improving the public procurement environment. Though key policy reform actions have already been completed, - 2 0 - including mandating the new procurement act/rules, with associated procedures and all documentation, implementation o f the national procurement act i s still a key challenge. There are still a number o f potential governance, institutional, and implementation challenges, including inadequate enforcement o f regulations, inadequate adherence to the provision o f procurement approval process, delays in contract awards, ineffective contract administration, allegations o f irregularities, and political interference. Considering all these factors, the procurement under the proposed project remains a challenge requiring special measures to address associated risks (see Annex 8 for more details). 58. Procurement Risks and Measures. As mentioned inthe procurement annex, the project i s considered as a "Medium risk" operation from public procurement point of view. The assessment i s based on general environment for public procurement inthe country as well as the previous experience with DSHE inIDA financed projects. A number o f special measures are underway inthe country, and as part o f the ongoing procurement reform, a second follow-on reform project under implementation i s expected to make the reform efforts sustainable. Concurrently, a number o f measures will be specifically introduced in this project to minimize procurement risks. Detailed arrangements specific to this project are described in Annex 8 (Procurement Arrangements). 59. Procurement Responsibility. DSHE will implement all project components. (See Annex 8 for more details about the procurement arrangements). D. Social 60. Indigenous Peoples: OP 4.10 i s applicable for this Project even though the incidence o f indigenous households inthe coverage area is very low. Out o f an estimated total population of about 36 million in 121project upazilas, the estimated indigenous population i s less than one percent (mainly concentrated in 19 upazilas). This Project has been classified as category B. Inorder to comply with OP 4.10, the project will consider culturally appropriate measures to ensure that benefits flow to indigenoushouseholds. 61. Participatory Approach. The SEQAEP preparation process included consultations with relevant stakeholders including indigenous groups. In addition, through technical assistance expertise on indigenous people in Bangladesh, a study, which included consultation with indigenous population groups and educational institutions, was carried out to help identify measures by which indigenous households can be helped to benefit from the project in a culturally appropriate manner. A Tribal Development Plan (TDP) was prepared based on this study - the analysis and the proposed measures are shown in Annex 10. The TDP was completed in April 2008, and has been disclosed on the Ministry o f Education website (www.moe.gov.bd). 62. Planned Social Outcomes: The Project uses poverty status as its prime targeting tool. The incidence o f poverty among indigenous households is high. Therefore, the targeting o f indigenous households in the program is implicit in its poverty-focus. However, in order to maximize the inclusion o f indigenous children, all children from indigenous households o f appropriate secondary school going age will be considered eligible for the stipend program, irrespective o f their poverty status, provided they comply with the required educational criteria. 63. SEQAEP will implement an awareness campaign that includes specific messages about inclusion o f indigenous children in the 19 upazilas with indigenous population. A provision will be included in the Cooperation Agreement with institutions for hiring qualified indigenous teachers and teaching aides to better address the learning and cultural needs o f indigenous children. The monitoring and evaluation system developed for the project will also specifically monitor benefits accruing to the indigenous children and their schooling progress. -21 - E. Environment 64. An Environmental Assessment (EA) was prepared for the project. The main purpose of the assessment was to assess the water supply and sanitation conditions in the secondary schools, identify environmental impacts and suggest mitigation measures for any adverse impacts caused by the project. The EA was undertaken and completed inFebruary 2008. The EA has been disclosed on the Ministry of Education website (www.moe.gov.bd). 65. Inrecent times, arsenic contamination i s the main threat constraining use o f groundwater from the shallow aquifer in the schools. It is a major problem which i s thought to affect about 26 percent o f all wells inthe country or some 18 to 22 millionpeople. Insecondary schools, about 12percent o f tubewells are arsenic-contaminated. Lack of clean toilet facilities is also an important constraint to children enrolling and staying inschool. 66. The Environmental Management Framework (EMF) and Environmental Management Plan (EMP) prepared for the project addressed a number of issues, mitigation and monitoring arrangements. The project will support the provision of safe drinkmgwater (through digging o f shallow or deep tubewells as needed) and separatetoilet facilities for boys and girls. 67. DPHE will enter into a participation agreement with DSHE for routine monitoring o f water quality of tube-wells, and a MIS software will be developed to record and analyze the water quality testing at the SEQAEP Unit. F. Safeguardpolicies Safeguard PoliciesTriggeredby the Project Yes N o EnvironmentalAssessment (OPBP 4.0 1) [XI 11 Natural Habitats (OPBP 4.04 [I [XI Pest Management (OP 4.09) [I [XI Physical Cultural Resources(OPBP 4.11) [I [XI Involuntary Resettlement (OPBP 4.12) [I [XI IndigenousPeoples (OPBP 4.10) [XI [I Forests (OPBP 4.36) [I [XI Safety of Dams (OPBP 4.37) [I [XI Projects inDisputedAreas (OPBP 7.60)* [I [XI Projects on InternationalWaterways (OPBP 7.50) [I [XI 68. EnvironmentalAssessment (OP/BP 4.01). The nature o f activities proposed under the project does not pose significant environmental risks. Environmental mitigation measures proposed under the project would help in enhancing project benefits and in avoiding/minimizing any adverse impacts on environment. 69. Indigenous Peoples (OP/BP 4.10). The project calls for special attention to the needs o f tribal children. Mitigation measures proposed under the project will lead to enhanced access to quality education for these children. G. Policy Exceptions and Readiness * By supporting theproposedproject, theBank does not intend toprejudice thefinal determinationof theparties' claims on the disputedareas - 22 - 70. No policy exceptions are sought. The FSSAP projects have been in implementation since the early 1990s and have been supported by IDA and GOBhas now invited IDA to support the proposed project under the same implementing agency -DSHE. The fiduciary arrangements for SEQAEP are being put in place; GOBhave demonstrated their commitment through budget allocations; disclosure requirements are being met; and monitoring and evaluation arrangements have been agreed upon and indicatorshargets specified. - 23 - Annex 1: Country and Sector or ProgramBackground BANGLADESH: SecondaryEducationQuality & Access EnhancementProject I.Background 1. Bangladesh has recorded substantial progress in poverty reduction -- about one percentage point per year since 1990 - that too in the face o f extremely weak initial conditions, continued political imbroglio, fragile institutions and poor governance, frequent large-scale destructionby natural calamities, and the negative global image generatedby these. Economic growth has been remarkable. The advent of democracy in the early 1990s was accompanied by increased pace in economic reforms with greater macroeconomic stability, a trend towards trade openness, and economic deregulation. Growth in GDP per headhas increased from one percent duringthe 1980s to over three percent since the early 1990s: per capita growth has moved to an even higher trajectory o f four percent since FY03. Bangladeshis among the handful of countries that have sustainedpositive per-capita growthineach year since the early 1990s. 2. Amidst many odds, progress on social measures in Bangladesh has been encouragmg. Gross primary enrolment rates are around 90 percent, and the secondary enrolment rate has more than doubled to 57 per cent (WB calculation from the latest data) since independence. Bangladesh has already met the Millennium Development Goal (MDG) on gender parity in primary and secondary schooling. The child mortality rate has halved, and life expectancy has increased by more than 15 years. The decline ininfant and child mortality rates, from 140 and 95 respectively in 1972 to about 60 and 30 in 2000, was among the fastest inthe developing world. 3. However, the progress so far still leaves much to be attained. Some 40 per cent o f the population i s still under the poverty line. The administrative data shows overall literacy rate at 65 per cent. Functional literacy i s estimated to be much less. Completion rates are very low. The nation-wide survival rate to Grade 5 is 53 per cent. Barely one out o f 5 children entering Grade 6 completes Grade 10. Besides, quality o f education i s a major concern at all levels. Child malnutrition rates are among the highest in the developing world, and maternal mortality rates, albeit lower than in India, Palustan, and Nepal inthe region, remain among the highest inthe developingworld outside o f Sub-Saharan A h c a . 4. Bangladesh's development vision and strategic agenda for poverty reduction, outlined in the Government's Poverty Reduction Strategy Paper (PRSP), recognize these critical challenges. The PRSP was presented to the Boards o f IDA and IMF in early 2006, and the two Boards agreed that it provided a cohesive policy framework for implementing a pro-poor growth strategy. In supporting the implementation o f the PRSP, and earlier the Interim PRSP, the Bank has provided a series o f budget support programmatic operations in the form o f Development Support Credits (DSCs). The Bank is working with the Government to maintain a good macroeconomic policy framework, widen trade liberalization, strengthen the effectiveness and accountability o f the national Board o f Revenue, restructure National Commercial Banks (NCBs), implement an agreed Public Financial Management Improvement Plan (PFMIF'), streamline a transparent procurement process, strengthen the Anti- Corruption Commission, and move toward appropriate and cost-effective power generation, among other things. I..EducationSector 5. Education programs are organized under two ministries - the Ministry o f Primary and Mass Education (MoPME) and the Ministry of Education (MoE) - in keeping with the importance attached to education in Bangladesh. Bangladesh has made significant strides in improving access to educational opportunities at the primary and secondary level. However, improving the quality o f education remains a - 24 - challenge. Issues surrounding the education system, particularly in secondary education, are described in more detail below. (a) Primary Education 6. Primary education inBangladesh spans grades 1to 5. While most primary school children study in government and registered aided non-government schools (55 percent and 21 percent, respectively), there i s a wide range o f providers. For example, 9 percent o f primary school students are enrolled in NGOs while 5 percent are enrolled in recognized madrasas. In2005 the primary school Net Enrolment Rate (NER) in Bangladesh was 62.9 percent. While the NER i s relatively high compared to some neighboring countries which are richer, there is considerable variation by income group within Bangladesh. The NER o f children from the poorest quintile is only 57 percent compared to a NER o f 77 percent for children from the richest quintile. 7. There has been a significant improvement inprimary school completion rate, from 67 percent to 74 percent between 2000 and 2005. Further, unlike low participation and completion rates for girls in neighboring countries like India and Palustan, there is not only gender parity in the primary sector, however, girls also have higher completion rates than boys. Even though there i s no national primary school leaving exam, nor do most secondary school require entrance examinations, the transition rate to secondary schooling i s low, particularly for children from poor households. The transition rate to secondary education is relatively low for the poorest children (58 percent) compared to that o f children from the richest quintile (83 percent). In other words, about 42 percent o f children from the poorest households who complete grade 5 do not enter secondary school. 8. Apart from completion and transition rates, given there are no systematic learning assessments, there are limited data on the quality o f education. Sample-based studies o f learning assessment tests of primary school students inBangladesh indicate relatively l o w levels o fnumeracy and literacy slulls. 9. Given that Bangladesh needs substantial improvement in providing quality education in order to achieve the Millennium Development Goals (MDGs) and Bangladesh's Education for All (EFA) targets, since 2004 the Government has launched several reform measures to address this issue. Eleven development partners (DPs) are working with MoPME to support the Primary Education Development Program I1(PEDP 1I) - a six-year sector-wide program aimed at strengthening educational access, quality and efficiency. (b) Secondary Education 10. Secondary education in Bangladesh spans grades 6 to 10. Bangladesh has pursued a service delivery strategy in the secondary education sector which combines public financing with private provision. Given the historical continuity o f this policy strategy (through Britishand Palustan periods as well), it is not surprising that the secondary education sector i s dominated by registered aided non- government schools. These aided non-government schools accounted for 98 percent o f the secondary enrolment share in 2003 (BANBEIS census 2004). There is also a strong historical precedence o f engaging various types o f non-state providers in provision o f secondary education, notably, madrasas. Unlike most madrasas in South Asia which shun both modem curriculum and female students, most secondary school madrasas in Bangladesh are registered, teach modem subjects (e.g., mathematics, science) alongside traditional religious subjects, and are co-educational. While 81 percent o f the share o f secondary enrolment i s in secular aided non-government schools (henceforth referred to as schools), 17 percent o f the enrolment share i s in registered reformed aided non-government madrasas (henceforth referred to as madrasas) (Table 1). - 25 - Type of School Enrolment 2003 Share of Total (000s) Enrolment ( percent) GovernmentSchools 223 2 RegisteredAided Schools 7,904 81 RegisteredAidedMadrasas 1,664 17 11. Government schools are fully funded and do not charge any fees to pupils who qualify for admission to those schools. In registered non-government schools and madrasas, public financing is provided primarily in the form o f teacher salary where the government funds at least 9 teachers per institution. Since teacher salary i s essentially covered by the government, government aided schools are supposed to only charge a nominal tuition fee to pupils. Furthermore most o f these secondary schools and madrasas are supported with additional government payments to cover tuition for female students under various female stipend projects. Enrolment Trendsin SecondaryEducation 12. While there has been a steady upward trend in secondary school enrolment rates since the 1 9 7 0 ' ~ ~ enrolment rates accelerated during Trend in Secondary School Enrollment the 1990's, particularly for girls. Much o f the achievement in the 3 5.0 I three-fold increase in overall .-i 0i 4.0 secondary enrolments and seven- E fold increase in female enrolments C C since 1980 has been a result o f 2.0 I --c Boys successful expansion of the private 1.0 sector via supply-side incentives and w - C a gender-targeted program since the 1970 1975 1980 1985 1990 1995 2000 2005 early 1990s. It was during this period that Bangladesh achieved gender-parity in access to secondary schooling. While enrolment growth plateaued between 2000-2005, preliminary estimates show a 10 percent increase in enrolment between 2005 and 2007. Gender and IncomeEquity in SecondaryEducation 13. While there has been overall growth in both net and gross enrolment rates, the growth in enrolment has been particularly pronounced for girls. Girls constitute the majority o f students in secondary schools, and are rapidly on their way towards parity in madrasas. Thus, overall there are now more girls enrolled inthe secondary school sector than boys (Table 2). 14. Overall improvement in gross enrolments masks large disparities by poverty status. For instance, in 2005, the gross enrolment rate (GER) among the richest fifty percent of population was 75 percent compared to 38 percent for the poorest fifty percent o fpopulation (Table 3). - 2 6 - Table 2: Enrolmentby Gender I Madrasa School # of madrasas # of schools (inpercentage) YOof female students (inpercentage) % of female students Rural 92.49 47 86.5 53.6 Urban 7.5 1 39 13.5 51.4 Metropolitan cities 1.44 28 3.8 49.1 Dhakacity 0.75 29 1.9 48.3 All area 100.00 46 100 53.2 Source: BANBEIS, Ministry of Education, Government of Bangtzdesh Table 3: GrossEnrolmentRates(GER) andNetEnrolment Rate(NER) by gender and poverty status GER (Age 11-15) NER(Age 11-15) 1995 2005 1995 2005 Boys Poor 25% 34% 18% 25% Rich 69% 71% 47% 49% All 48% 52% 33% 37% Girls Poor 22% 42% 18% 33% Rich 61% 78% 47% 61% All 44% 60% 35% 47% Both Poor 24% 38% 18% 29% Rich 65% 75% 47% 55% All 46% 56% 34% 42% I Source: World Bank Staff estimates usingHIES 1995 and 2005 Note: Poor refers topoorestfifipercent of thepopulation and rich refers to the richestfifi percent. 15. While there has been significant enrolment growth for even poor girls during the decade of the stipend program, enrolment levels for poor boys has remained stagnant. Female-to-male ratio among the poor, consequently, has overshot from 80 percent in mid-1990s to 125 percent in 2005, reflecting a growing gender imbalance particularly against poor boys (Table 4). Quintile Male Female Poorest 8.25 11.13 2 12.89 14.39 3 20.52 20.02 4 26.57 25.22 Richest 31.78 29.24 Quality of SecondaryEducation 16. Upon completion o f grade 10, students appear for the Secondary School Certificate (SSC) examination. That i s the first time students are tested under a quasi-uniform system in Bangladesh. -27 - Eligibility for public sector employment and admission to higher tertiary education is contingent upon graduation and SSC marks, irrespective o f type o f secondary school or SSC board. In line with a historical tradition going back to the British period, the few government secondary schools (publicly financed and operated) located primary in district headquarters are considered `model' high schools which serve as standard bears o f quality to be emulatedby the plethora of aided non-government schools operating in rural areas. In general, the overall quality o f aided government schools which primarily serve poor rural areas i s low relative to the select government-run secondary schools. 17. Drop out rates increase sharply after grade 8 - 48 percent at grade 10 compared to 12 percent at grade 8. As a result, completion rate at the secondary level i s as low as 20 percent. While Secondary School Completion (SSC) pass rates have shown improvement over the past few years (they have increased from about 45 percent in2002 to 59 percent in2007), the number o f students appearing for the SSC examinations has decreased a bit. Household and school sample-based testing of basic numeracy and literacy skills reveal low overall levels of learning quality as well. 18. While pass rates have improved overall, two subjects where performance remains low is English Language and Mathematics. Many students fail their SSC examination because they cannot pass in English or Math and the two subjects consistently have the highest failure rate at SSC. 19. Inmathematics the problems start for many students back inprimary school, especially inGrade 3 where subject content suddenly becomes more challenging. For example, havingjust grasped the basic concept of multiplication in Grade 2, students are then required to use their developing knowledge to solve long multiplication problems in Grade 3, and to apply it to complex fractions and decimals in Grades 4 and 8. This speedy progression results in a loss of conceptual understanding and mathematical skills with a consequent loss o f confidence for many students. By the time they reach secondary school they are convinced that they cannot do mathematics. 20. For English the weak proficiency levels o f primary school teachers results in many of them findingit difficult to teach the Communicative Englishpresentedinthe NCTBtextbooks effectively. The children do not absorb the new vocabulary or grammatical structures inprimary school and hence are at a disadvantage when it comes to understanding English at secondary level. Inaddition the limited scope for using English, either spoken or written, outside o f the primary or secondary school classroom results in few opportunities for teachers or students to practice their English. Hence, as with mathematics, students enter secondary school with limited English language slulls and are convinced that they cannot do English. GovernmentReforms in SecondaryEducation 21. To address these problems and improve governance in the sector, the Government began implementinga substantive policy reform agenda to ensure systemic improvement, quality and relevance o f secondary education. This has been supported by the World Bank through three programmatic Education Sector Development Support Credits which have focused on: (i) greater transparency in the use and allocation o f resources, tylng resource allocation to performance and accountability and greater stakeholder participation; (ii) streamlining the teacher recruitment process based on agreed criteria and standards to make it more transparent and to ensure the selection o f best candidates as teachers free from all hnds o f influences; and (iii)enhancing competition in textbook production and publishing and improving relevance o f the cumcula. 22. The Government has successhlly implemented these reforms. As regards systemic improvement, the Government has linked financing o f institutions to performance, leading to the suspension o f government subsidies to the worst performing institutions. The composition o f school management committees has been reformulated to ensure greater community voices, particularly o fthe women members of the communities, in monitoring institutions' activities. As regards financial management system, a number o f measures have -28 - been taken in order to enhance transparency and accountability inthe spending and allocation of resources. Widespread dissemination of information about performance of institutions, comparison of institutions' performances, incentives for better performance and support for those lagging behind because of various social reasons are payingtheir due dividends. 23. The government has established a Non-Government Teacher Registration and Certification Authority (NTRCA) whch administers a testing and certification process for those who have the minimum required qualifications and aspire to be secondary school teachers. NTRCA creates a pool of potential teachers from which SMCs recruit teachers for their respective schools following a rigorous process. NTRCAhas already adrmnisteredtwo rounds oftests withthe helpof the education boards and other relevant agencies since late 2005. This has already led to better remitment of qualified teachers and reduction in rent-seelungandcollusionin the h n gofteachers. 24. The National Curriculum and Textbook Board (NCTB), has now been streamlined along its two important functions. The process of textbook selection, productionand publication-the oversight function of the textbook wing -- hasbeen made transparent and competitive whch has led to a reduction incollusion and rent seelung in the process of textbook production. The curriculum wing - unencumbered by its previouslyundefinedroleintextbook production-now fully focuses on curriculum related issues. 25. The proposed project, through undertahng interventions aimed at enhancing the quality o f schooling, monitoring learning outcomes, and improving equitable access, will complement and operationalize the ambitious reformagenda beingimplementedby the Government. -29 - Annex 2: Major RelatedProjectsFinancedby the Bank and/or other Agencies BANGLADESH: Secondary EducationQuality& Access EnhancementProject Latest Supervision (ISR) Ratings Sector Issue Project (Bank-financed projects only) Implementation Development Progress (IP) Objective (DO) IDA-financed Increase equitable access to primary and Bangladesh- General Education(Credit S S secondary schooling, improve quality o f 2118-BD) - (Closed April 20,1997) education; and strengthen management capacity. (OEDevaluation: Satisfactory) Improve and expand non-formal education; Bangladesh-Non-Formal Education S S strengthen capacity to deliver program through (Credit 2822-BD)(Closed June 30, NGOs and district administration 2001MOED evaluation: Satisfactow), Improve access to secondary education and IBangladesh-Female Secondary School I S S improve opportunities for rural girls Assistance Project (Credit 2469-BD) (Closed June 30,20Ol)(OED evaluation: Moderately Satisfactory) Improve school quality and system efficiency; Bangladesh-Primary Education S S establish a cost-effective and better managed Development (Credit N-038-BD) (closed education system; and ensure universal coverage December 31,2003) (OED evaluation: and equitable access to quality primaryschooling Satisfactory) Improve and expand non-formal education; Bangladesh-Post-Literacy and Mu Mu strengthen capacity to deliver programs through Continuing Education for Human NGOs ,and improve links to labor market Development Project (Credit 3467-BD, opportunities co-financed with Swiss Agency for Development Co-operation (SDC); note project is closed. Improve the quality of, and girls' access to Bangladesh-Female Secondary School S S secondary education nrural areas Assistance Project I1(Credit 3614-BD) Improve access to educational opportunities for Bangladesh-Primary Education M S M S the disadvantaged, enhance education quality, Development Program I1(Credit 3857- and improve institutional capacity BD) with 10other development partners, ledby ADB Address systemic governance issues inorder to Three phases: Education Sector S S raise the quality and cost-effectiveness o f service Development Support Credits(ESDSC, delivery, and improve equity o f access to ESDSCII & ESDSCIII) secondary education Reduce the number o f out-of-school children Bangladesh-Reaching Out-of-School S S through improved access, quality and efficiency ChildrenProject (Grant H-1020) with inprimary education, especially for the (SDC) disadvantaged children, insupport o f EFA Goals Other Development Agencies Improve quality and increase access to secondary Asian Development Bank - Secondary education Education Development Program- Enhance quality o f secondary education by ADB - TeachingQuality Improvementin improvingteaching quality Secondary Education Project (US$68.9 million) Facilitate a more gender sensitive equitable EC-Programto Motivate, Train and society bypromoting girl-friendly secondary Employ Female Teachers inRural schools Secondary Schools (PROMOTE) - Euro 29.2 million - 30 - Annex 3: ResultsFrameworkand Monitoring BANGLADESH: SecondaryEducationQuality& Access EnhancementProject Arrangements for Results Monitoring 1. Given the data-intensive design and the diverse nature o f the project components, the results monitoring arrangement will aim to facilitate a systematic and integrated data collection and utilization system. There will be five major players in this arrangement: (i) SEQAEP unit; (ii) Administrator PMT (LGED); (iii)external monitoring agency (BANBEIS); (iv) Monitoring and Evaluation Unit o f DSHE (MEW); and (v) independent evaluation survey firmand learning assessment agency. 2. LGED, as the PMT administrator, will collect, process andmaintain a dynamic database associated with all PMT-related activities that includes tracking each child (with a unique ID)from the start of the PMT application process, welfare score rankings, ranking verification, beneficiary selection, award confirmation, disbursement o f stipends and tuition, and their schooling progress including switching of schools or other interruptions. LGED will also collect project school data forms on teachers, enrolments, attendance, examinations and other education compliance data on PMT beneficiaries and integrate that information with the PMT database. 3. The SEQAEP data processing center will collect andprocess data associated withnon-PMTrelated activities, using the data platform developed by LGED, to facilitate an integrated database. Non-PMT components include stipend and tuition data under existing FSSAP-modality, school physical facilities, and quality interventions such as incentives, teacher training, additional classes support and reading programs. 4. To supplement the internal monitoring mechanism, BANBEIS will be deployed to provide an independent external monitoring on the inputs,processes and outputs associated with various components o f the project. BANBEIS will conduct a Census o f all project schools in 121 Upazilas, on an annual basis, and prepare annual report based on Census data. 5. An independent survey firm will carry out a detailed baseline survey (household and school- based), and follow-up surveys (one before MTR and another just before project completion) to measure the effectiveness and impact o fproject interventions. Inaddition, an independent agency will be deployed to administer student learning assessment tests. 6. The SEQAEP unit will have real-time access to the above data streams from LGED, BANBEIS, independent impact evaluation survey firm and testing agency so that it can readily and efficiently utilize them for results-based planning and implementation. At the ground-level, the SEQAEP unit will work with local educational offices to disseminate relevant data results so that schools, communities and parents can make information-based education decisions. 7. MEW will monitor and review all stipend programs under DSHE (including that o f the project), and maintain a repository o f integrated databases and relevant reports and studies. Supervision Strategy 8. Program implementation will be reviewed semi-annually. Each mission will: (i) selected sites visit in the country to review progress in overall implementation, including, access and equity, quality, financial management, procurement and safeguard issues; (ii)follow-up on issues highlighted in evaluations and studies undertaken under the project; (iii)identify any studies to be undertaken in the following six months; (iv) agree upon an implementation plan for the following six months; (v) assess progress on agreed KPIs, (vi) review SOEs/IUFRs and audits; and (vii) agree on any adjustments that - 3 1 - need to be made to project design. Inaddition, field visits will be carried out on a random basis between the formal supervision missions. Impact EvaluationMethodology 9. The Female Secondary School Assistance Program (FSSAP) was the first Conditional Cash Transfer (CCT) intervention funded by the World Bank over a decade ago (e.g., at the time the Bank was only engaged inpolicy dialogue with Brazil and Mexico). While this was the first CCT under the Banks' lending portfolio and an influential program that has inspired similar gender-targeted interventions in several countries, an absence o f randomization or a properly defined control and treatment group with baseline and follow-up data, (due to rapid scaling-up o f the program) made it difficult to establish the causal impact o f the program. There has been a strong correlation o f the program with reversing the initial bias against females in enrolment, and the strong influence o f the program in cultivating wide-spread political and social `buy-in' o f gender equity and importance o f secondary schooling ingeneral, but there continues to be lingering debate as to the magnitude o f this impact on enrolments. 10. The success o f the proposed Project will be assessed via several outcomes: (a) increased completion rates in secondary school cycle; (b) increased pass rates in SSC exams; (c) increased number o f students appearing for the SSC exams; (d) number o f national learning assessment undertaken; (e) improved gender balance; and (0 increased share o fthe poor children enrolled insecondary schools. 11. Most rigorous causal inference will be established on the impact of the PMT-based stipend and tuition intervention. While all project upazilas will share common project interventions from the start o f the project, only a subset upazilas will receive the PMT-based intervention during the first year. Out of the 121FSSM-I1upazilas, PMT-based conditional stipends for both girls and boys will be implemented only in 60 randomly chosen upazilas duringthe first year o f the project, while the remaining upazilas will operate under the existing FSSAP-I1modality. Targeting will be scaled-up to cover all 121IDA upazilas from the second year o f the project onwards. Control groups will come not only from the 61 randomly chosen upazilas which did not get the PMT intervention during the first year, but from a matched subset from remaining upazilas under GOBfunding which will continue operating under the old system for at least the next few years. This i s the first time in Bangladesh that PMT-type implementation will be experimented on such a large scale. It is imperative to not only establish a causal impact of this CCT on enrolments and other outcomes such as learning achievements, but also to assess the efficiency o f the PMT targeting modality. Lessons learned from the evaluation will not only help to inform scaling-up o f PMT inIDA-fundedupazilas, but for the rest o fthe country as well. 12. A comprehensive child, household, community, and school-level household baseline survey will be fielded in a sample o f IDA (and GOB)funded areas before any changes in existing project modalities. The baseline survey will be funded by IDA-executed trust-fund. One year after the PMT component i s implemented in the 60 randomly chosen IDA-funded upazilas, the same baseline sample will be re- surveyed using IDA-executed trust-fund. Subsequent follow-up surveys on the original baseline sample will be funded by GoB-executed project funds. Given that we will have a baseline survey before any project intervention and several rounds o f follow-up surveys, randomized phasing-in of treatment, and a control group which will remain as control, we can use a range o f econometric analysis for the impact evaluation (e.g., differences-in-difference (DID), DID with identification o f exogenous treatment, DID with regressiondiscontinuity design, DIDwith andwithout propensity score matching, etc). 13. While the World Bank will be responsible for the technical analysis o f the impact evaluation, an independent survey firm with a solid track record will carry out the baseline and follow-up surveys using the baseline sample-frame. This requires the services o f a survey firms with considerable experience in conducting panel surveys - longitudinal surveys o f same set o f pupils, households, communities, and schools. The panel data will be essential for conductingthe impact evaluation. - 32 - 14. The research indicators and outcomes indicators associated with the PMT-based stipend component i s as follows: Was it well targeted? What was the fraction o f households which misreportedtheir actual assets? Didcommunity-based selection work as well aspure PMT? Diditbringinmore pupilsto secondary school from poor households? Didit improve the gender balance insecondary schoolenrolments? What happened to girls who no longer receive the stipend because they were identified as belonging to non-poor households? Didit improve the grade transitionrate ofpupilsfrom poor households? Did it improve quality of learning (examination results, numeracy and literacy assessments) of pupilsfrompoor households? Didithave any adverseimpact on quality o f learningonpupilsfrom non-poor households? What was the impact on child (female and male) labor supply and time-use? Besides the PMT-based stipend and tuition program, the following project interventions will be subject to impact evaluation: (a) incentive awards to students, teachers and schools (b) additional classesto students inEnglishand Maths (c) establishment o freadingprograms inproject schools 16. Since these non-PMT interventions will be implemented in all IDA-funded project upazilas from the first year, they will be evaluated via non-randomized impact evaluation techniques (such as differences-in-differences and propensity score matching) using non-IDA project upazilas as control group. Impact/Outcome indicators associated with these quality interventions will be (i)grade transition rates; (ii)SSC exam results (overall and subject-specific); (iii) standardized student test results (subject specific); and (iv) school enrolments (disaggregatedby gender and poverty-status where applicable). Data on these outcome indicators would be collectedbefore the interventions, at the mid-tern and at the end o f the project inboth treatment and control schools. The control sample o f schools in GOB-funded upazilas will be selectedvia propensity score matching. - 33 - Results Framework PDO Project Outcome Indicators Use o f Project Outcome Information The key project development objectives 1. Completion rate in Grade 10 These PDO indicators will be used are to improve quality o f secondary to monitor the overall progress education, systematically monitor 2. Numbero f students appearing in towards project goals. learning outcomes, and to increase access ssc and equity inproject upazilas. The indicators will be 3. SSC passrate for (a) poor; and disaggregated by gender where (b) non-poor relevant. 4. Monitor learning levels in Inaddition, impact evaluation o f secondary schools (in keyproject interventions (described Mathematics and English) inPart Bofthe Annex) will complement the monitoring o f KPIs 5. Gender parity (male/female) in andprovide a linkage between enrolment inGrades 6 to 10 outcomes and interventions. increases 6. Percentage share o fpoor chddren intotalenrolment insecondary schools Intermediate Outcomes Intermediate Outcome Use o f Intermediate Indicators Outcome Monitoring Component 1- Improving Education Quality and Monitoring Learning Levels Sub-Component 1.1:Incentive Awards to Students, Teachers and Institutions Increase educationquality through the Number o f students, teachers and These intermediate outcomes will provision o f incentive awards based on institutions receiving various monitor the provision o f monetary academic performance to students, categories o f incentive awards incentives to rural students, teachers and institutions teachers and institutions to reach and maintain higher levels o f Sub-component 1.2: Supportfor achievement, understanding quality English Language and Mathematics improvement as a continuous and Learning and Teaching long-term process. Improve student performance inEnglish Number o f institutions supported by These will be useful inassessing Language and Mathematics the additional classes support quality improvement by monitoring program (a) capacity building o fteachers at upazila, cluster and school level; and (b) provision o f additional Sub-Component 1.3:Developing the support inEnglish and Reading Habit Mathematics. Organizing facilities and establishing a Number ofinstitutions having a The expected direct output i s the program to develop the reading habit in established reading programs numbero fstudents enrolled as students book readers and the number o f books read by each reader. Sub-component1.4: Assessment of Education Quality - 34 - Measure systematically the quality o f Number o f national learning These will monitor the possibility learningby administering internationally assessmenttests undertaken. o f long-term capacity to comparable andnational cumculum- mainstream the assessment system. basednumeracy and literacy testing. Component 2 - ImprovingEducation Equity and Access Sub-component2.1: PMT-based Stipends and Tuition to thePoor Increase access and retention o fpoor girls Numberof eligible poor girls and Monitoring o f these intermediate andboys, based on pro-poor targeting and boys receiving stipends outcomes will help inassessingthe educational criteria accesslequity progress and Number o f eligible poor girls and eventually inachieving KPINo. 4 boys receiving tuition &KPINo. 5. Poor girls andboys as a percentage oftotal enrolment Sub-component 2: General Stipends and Tuition Program Continue the ongoing stipends andtuition Number o f eligible girls andboys This will monitor beneficiaries in programuntilthe PMT-based stipends receiving stipends and tuition existingFSSAPII stipendprogram programis implemented inall 121 before the new PMT-based stipend upazilas programis scaled-up inall 121 project upazilas. Sub-component 2.3: Improving School Facilities Attract and retain girls and boys in Number o f schools with tubewells These intermediate outcomes will schools, through the provision (using tested for arsenic monitor the provision o f safe community participation) o f safe W i n g drinking water and sanitation water and sanitation facilities Number o f schools with safe facilities inproject schools. dmlungwater at the school with new tubewells Number o f schools with new latrines for girls and boys Component 3 InstitutionalCapacity - Strengthening Sub-component 3.1: Project Management Strengthen the existing structure for A hlly functional SEQAEP Unitis managing and implementing the proposed established project Sub-Component 3.2: Institutional CapacityBuilding Develop and strengthen the capacity to A Monitoring and Evaluation Unit implement programs aimed at increasing (MEW)is established withinDSHE, educational quality, and to deliver headed by a Director, and staffed financial support to targeted beneficiaries with appropriate qualified personnel effectively - 35 - Sub-Component 3.3: School Management andAccountability Strengthen accountability at school and Person-months of in-country training These indicators will provide upazila level andinternational training, and feedback on the efficacy o f training at upazildcommunity level mechanisms aimed at making the systemmore accountable to the beneficiaries. Sub-component 3.4: Education Awareness and CommunityMobilization Raise education awareness amongst Numberoftraining sessions These indicators will provide stakeholders with focus on education undertaken feedback on the efficacy o f quality, targeting, and accountability. mechanisms aimed at information dissemination. Component 4 - Monitoring and Evaluation Sub-Component 4.I:Monitoring Systematically document all project Number ofM I S reports These indicators willtrack progress input, process, output, and outcomes towards aclueving a systematic Number o fPMT reports project monitoring. Number o f School Census reports Number o f learning assessment reports Sub-Component 4.2: Evaluation Carrying out rigorous impact evaluation Completion o fbaseline survey, These will help inmeasuring the to measure the effectiveness and impact follow-up survey at mid-term and impact o fthe project intervention o fproject interventions end-line survey at the project on access, quality and management completion. o f secondary schools. Impact evaluationreports on key project interventions on quality and PMT. I - - 30 30 0 0 c n m zE z * m v) E e, 0 E E o m o c m m z ' cc 0 I \o m 0 - o c 0 c I mrn m h l ' c o m o c m h l o c m ' c m o m o c 0 c VIN 2 2 o c 0 - m - 0 c m h l ' o ::" t- o m m w g N mO 3m 3 0 QI 7 I t- m 3 0 0 m 3 m 0 z N 10 o m w I m 3 W N 3 3m 3 2 N m m O I- 0 0 N m v, tDo - m 0 m I .- 1 5 a 2 g v) I 00 0 0 0 I z z 0 0 0 0 0 0 O e 0 m l n I- d I- 1 % 10 0 0 0 m 0 rn 0m 0 3 - 0 b 00 0 03 03 ev) .-* sBt m .e * 5 a s 2R s8 d 3x m 2x 5 * 5 * 0 0 2 I Q\ m -0 0 I rn - 0 0 - W 2 0 - 0 0 2 I- 2 \o v, 0 O 0 W I- % g -40 - Annex 4: DetailedProjectDescription BANGLADESH: SecondaryEducationQuality & Access EnhancementProject I.Background 1. Bangladesh has recorded impressive progress in poverty reduction and certain human development outcomes. Gross primary enrolment rate i s around 90 percent, secondary enrolment has more than doubled since independence, and the Millennium Development Goal (MDG) gender parity target has already been achieved at both the primary (Grades 1-5) and secondary (Grades 6-10) education level. These are all remarkable feats when compared to countries at similar level o f income in the region. At the secondary level, M o E oversees a unique system o f public-private partnership which combines public financing with private provision of education. More than 98 percent o f the secondary schools are managed and operated by non-government sector with financial support fi-om the government. 2. Much o f the achievement in the three-fold increase in overall secondary enrolments and seven-fold increase in female enrolments since 1980 has been a result o f successful expansion o f the private sector via supply-side incentives and a gender-targeted program since the early 1990s. GOB,with IDA'S support, initiated the first Female Secondary School Assistance Project (FSSAP) (1993-2001) which played a key role in fostering gender parity in access to secondary schooling in rural areas. IDA funded implementation in 119 upazilas, while GOBand other development partners (ADB and NORAD) financed the intervention in the remaining upazilas. The ongoing FSSAP-I1 (2002-2008) has helped to sustain the previous intervention while initiating a series o f innovations to pilot measures to improve quality, equity and accountability. However, key challenges remain. These include: (a) l o w systemic quality as reflected in low completion rates, and declines inthe number o f pupilsappearing for SSC examinations; (b) many poor children are still left out o f the secondary school system, and this problem i s becoming particularly acute for poor boys; (c) institutional capacity remains weak with management, coordination and implementation capacity needing to be strengthened all the way fi-om the central to the school level; and (d) monitoring and evaluationremains weak. 3. T o build upon the successes o f the past decade, and to address challenges described above, this new operation will retain many o f the previous funding modalities with MoE, while galvanizing the focus on improving quality and expand the reachto bothpoor girls and boys. The project will be implemented inthe 121upazilas4that FSSAPII i s currently being implemented in. 11. ProjectDevelopmentObjective 4. The key project development objectives are to improve the quality o f secondary education, systematically monitor learning outcomes, and to increase access and equity inproject upazilas. Two upazilas have now been divided into four, so the original total o f 119 has increased to 121. -41 - 111. The Projectby Component Component 1-ImprovingEducation Quality and MonitoringLearningLevels (Total: US$ 37.4 million,IDA: US$33.1 million) 5. The objectives o f this component are to: (a) increase education quality through the provision of incentive awards based on academic performance to students, teachers and institutions; (b) improve student performance inEnglishLanguage and Mathematics; (c) organize facilities and establish a program to develop the reading habit in students; and (d) measure systematically learning levels by administering internationally comparable and national curriculum-based numeracy and literacy testing, that raise awareness o f policy makers and stakeholders and help them adjust policies andinterventionsaccordingly. Sub-Component I.I:IncentiveAwards to Students, Teachersand Institutions 6. This sub-component focuses on providing monetary incentives to encourage rural students, teachers and institutions to reach and maintain higher levels o f achievement, understanding quality improvement as a continuous and long-term process. Incentives will be provided to students, teachers and institutions: Student awards: 7. Student Achievement Award - The best performing girl and boy student in the final examination in Grades 6 - 9 (8 per school) in all the project institutions each year will receive Taka 500 based on the annual class examination. 8. SSC Pass Award - All students selected through the Proxy Means Test (Component 2 below) who pass the SSC or equivalent examination will receive Taka 1,500. Teacher Awards: 9. SSC Incentive Award for English Language and Mathematics Teachers - English and Mathematics teachers will be eligible for an award o f Taka 10,000 based on the following criteria: (a) At least 80 percent o f the enrolled students in Grade 10 would have to appear in the SSC examination; and (b) Of these, at least 70 percent would have to pass in English or Mathematics. Ifthese criteria are met, teachers who have taught these subjects in Grades 9 and 10 would be eligible for the award. Institutional Awards: 10. Based on lessons learned from over the last three years under FSSAPII, three categories o f incentive awards have been developed. Institutions will be eligible for this Taka. 20,000 award (paid directly into institutional accounts) based on year on year improvements inpass rates inthe SSC examinations provided they meet the following criteria (based on number o f students appearing inthe SSC examination): 0 5 percent increase in the number o f SSC or equivalent pass rates in comparison to the previous year (base student number should be 50 or above); 10 percent increase inthe number o f SSC pass students (base student number 30-49); 0 5 percent increase in the number o f SSC pass students in comparisonto the previous year (base student number 0-29. 0 Institutions showing negative progression compared to previous years will not be considered for this award. - 42 - 11. This incentive award i s intended to encourage institutions to focus not only on SSC examinationresults but also on learning achievement at every grade level. Institutions achieving 90 percent weighted average promotion rate (Grades 6 - 10) would be awarded Taka 75,000. These annual awards would be paid directly into institutional accounts. 12. The impact o f these incentives will be carefully evaluated through both quantitative and qualitative surveys (see Annex 3). Based on the results of this evaluation, needed adjustments will be made. The results will also be used to inform the Government about the usefulness of adopting similar measures innon-project areas. Sub-component 1.2: Supportfor English Language and Mathematics Learning and Teaching 13. This sub-component aims to: (a) assist students in improving their performance in English Language and Mathematics (subjects with the poorest results in SSC and equivalent examinations); and (b) improve classroom teaching-learning processes and interaction in English Language and Mathematics. 14. English Language (EL) and Mathematics (Math) have been identified as the most problematic subjects for secondary school students in Bangladesh with the two subjects consistently having the highest failure rate at SSC examinations. The objective o f this component is to improve student performance inEnglishand Mathematics. The Government is attempting to address this through various initiatives undertaken by M o E and donor agencies. The proposed project aims to complement these initiatives through focusing on the poorest performing rural institutions-those acheving lower than 45 percent pass rate inSSC examination as seen inBand 1o f Table 1below. Key activities planned for this sub-component are: (a) provision o f training for teachers, differentiated by institutional performance levels, and post-training support for 55,000 ( o f which female teachers constitute16 percent) rural secondary level EnglishLanguage and Mathematics teachers from 7,000 project schools; (b) additional classes in the two subject areas to be conducted in about 3,000 schools (Band 1) beforejafter regular classes or during school holidays; and (c) orientation programs for 10,000 Head Teachers (HTs) and Assistant HeadTeachers. 15. Training packages for English Language and Mathematics have been developed to improve teacher preparation and delivery o f classroom instruction. Training interventions would comprise the following: (a) An initial six-day training program (including modules for improving language proficiency and grammar) has been planned for teachers from schools with an SSC pass rate o f 45 percent and below (see Table 1 for interventions to be delivered to three bands o f schools). Training content and methodology will focus on weaker students, and directed to two -43 - levels o f students - (i) 6-8 and (ii) Grades Grades 9 and 10. Training sessions are expected to take place in various appropriate venues with the aim of providing training as close as possible to schools. Four interactive day-long follow-up sessions, one in every quarter, would take place at the cluster level for every year o f the project, starting January 2009. The aim i s to build capacity and share good /innovative practices at this level, encouraging professional interaction among isolated rural teachers. The objectives o f these follow-up sessions are: to provide teachers with opportunities to further clarify concepts and issues discussed during the initialtraining inlight o fpost-training classroom teaching experiences; to share a range o f classroom management and pedagogical issues they face in the classroom and identify possible solutions; to share innovative practices being implemented in schools to improve quality; and to provide support to one another by reviewing individual teacher experiences. For teachers in Bands 2 and 3, materials presented in the initial six day program will be made available duringthe four l-day follow-up sessions at cluster level. The third element in the training package comprises classroom observation o f teachers by mobile teacher resource teams drawn from the pool of Master Trainers. EnglishLanguage and Mathematics resource persons would travel to institutions to support teachers in the classroom over the whole period o f the project. Duringthese visits, a uniform observation protocol will be used by trainers who will observe teachers teaching, provide them with feedback and advice after the lesson, and make recommendations for improving their performance. Visits to schools will be made once every six months and summaries of classroom observation findings will provide an important input into the quarterly l-day cluster level sessions. Resource persons will send reports on school visits and classroom observations to the Quality Section, SEQAEP Unit. Trainers would be drawn from selected faculty members from the Teacher Training Colleges and other higher education institutions; teachers registered with the National Teacher Registration Authority who have not been recruited in schools; experienced teachers who have retired recently; and outstanding upazila or district level teachers who would partner the M T s as co-trainers. The approximately 300 M T s (150 for each subject) and co-trainers would be trained by 10 -15 Core Trainers (CTs) for each subject, selected from the best trainers in the country. Selected members from the CT group would be responsible for the development and field testing o f training materials. The logistics, quality and content o f training would be the responsibility o f the Quality Section o f the SEQAEP Unit, supported by national and international consultants, one each for the two subject areas. 17. Additional Classes in English Language and Mathematics. This activity would focus on teachers providing additional classes to their students before or after school, or during school holidays, in two time blocks o f six months each: (a) March to August for Grades 6 - 8 with classes focusing on enhancing students' understanding o f basic concepts and basic slulls in EL and Math; and (b) September to February for Grades 9 and 10 to support Grade 10 students inthe runupto the SSC examinations inMarch. The main focus at this level is on improving student performance in the SSC examinations. Regular class teachers engaged in teaching EL and Math would teach these additional classes to their regular students, for which they will receive extra remuneration. Apart from the capacity-building activities for teachers described above, the project will provide additional instructionalmaterials to supplement existing classroom materials. 18. Orientationprogramsfor Head Teachers (HTs) and Assistant Head Teachers (AHTs). A three-day capacity building program will be developed for Head Teachers and Assistant Head -44 - Teachers to ensure school-based support for teachers. BothHTs' and AHTs' support are required so that alternative arrangements could be put in place when teachers attend training programs. The program will also provide detailed information on the classroom observations that mobile resource teams would conduct, encouraging participants to practice observing their own teachers, usingthe prepared common observation protocols. Sub-Component I.3: Developing the Reading Habit 19. The objective o f this subcomponent i s to help students develop the reading habit using a participatory approach. The project would finance: (a) setting up o f a reading program at classroom level for grades 6-10; (b) provision of approved age- and ability-appropriate books in Bangla and Englishtaken from the list o f books agreed during pre-appraisal and attached to this Annex as Appendix; (c) training o f teacher-organizers to maintain the effective operation of the institution's library and the reading program as a whole; (d) a simple end-of-year test; and (e) an annual Book Prize/Award incentive system based on the number o fbooks read. 20. The project would partner with a specialized agency in the establishment and management o f reading programs inproject educational institutions. The agency will be selected based on agreed criteria to provide technical services during implementation. Given the specific nature o f this task, these criteria for selection would include: (a) experience in conducting book reading programs for students in Bangladesh; (b) experience o f conducting the book reading program in at least 1,000 secondary schools in Bangladesh; (c) having established a reader evaluation system in Bangladesh; and (d) proven track record o f effective delivery o f library services andreadinghabit programs at school level inBangladesh. 21. Once the consultancy is initiated, a Book list for this activity will be finalized in consultation between the selected firm, M o E and other key stakeholders. This Book list will be submittedto IDA for no-objection. 22. The services provided include establishment o f the readingprogram ininstitutions as well as monthly monitoring o f institution-level activities. A quarterly monitoring report will be submitted by the agency to the Quality Section o f the SEQAEP Unit which has oversight responsibility for implementation o f this subcomponent. Sub-component 1.4:Assessment of Education Quality 23. This sub-component aims to systematically measure the quality o f learning by administering internationally comparable and national curriculum-based numeracy and literacy testing on a sample basis, which will be representative at a national level. The results o f these independent assessments will be fed back to policymakers and stakeholders to raise their awareness about the quality o f education, and adjust quality-related policies and interventions accordingly. The long-term vision i s to build the appropriate capacity to mainstream the assessment system. It will finance: (a) the development o f testing instruments for Mathematics and English; (b) the administration o f the instruments, and processing and analysis o f data; and (c) the dissemination and feedback to stakeholders from central to community levels. External third-party agencies will need to be hired for executing the assessment activities. The Mathematics questionnaires will be based on the Trends in Mathematics and Science Study (TIMSS) to facilitate international comparison o f achievement in numeracy skills. The English questionnaire will be developed based on NCTB curriculum. - 45 - Component 2 - Improving Equity and Access (Total: US$ 106.7 million, IDA: US$ 87.5 million) 24. The objective o f this component is to increase access and retention of poor girls and boys; ensure their completion o f secondary schooling through provision o f stipends and tuition based on pro-poor targeting and educational criteria; and improve school environmental conditions by selectively providing water and sanitation facilities. Sub-component 2.1: PMT-based Stipends and Tuition to the Poor 25. This sub-component aims to increase access and retention o f poor girls and boys, based on pro-poor targeting and educational criteria. This sub-component will finance stipends and tuition to poor girls and boys from the poorest 50 percent o f households in project upazilas, identified using Proxy-Means Testing (PMT) which is detailed out in Annex 13 below. Out of the current 121 FSSAPII upazilas, targeting will be implemented in 60 randomly chosen upazilas starting from Academic Year 2009. After a rapid assessment o f the PMT operational modality, targeting will be scaled-up to cover all 121upazilas fromAcademic Year 2010 onwards. 26. Stipends. Stipends will be provided to eligible boys and girls twice a year at the stipulated rates given in Table 3 below. These rates are based on per student education expenditure in an average poor household, as estimated from the latest national Household Income and Expenditure Survey (HIES 2005). Students will be selected intwo stages: (a) Stage I:selectionofpoorboysandgirls;and(b)Stage11:forthoseselectedinStageI,selectionof eligible girls and boys who meet the education criteria. Stipends will be deposited directly into the Bank accounts (in Agrani Bank) o f eligible students. It i s expected that the stipend benefits would support about 3 million student-years for education in Grades 6-10 during the project period, which covers 10 semesters o f five academic years starting from January 2009 (first phase: 60 upazilas) and 8 semesters o f four academic years starting from 2010 (second phase: all 121 upazilas). 27. The education criteria to remain eligible for receiving the stipends are: (a) maintaining 75 percent average attendance; (b) maintaining 33 percent pass marks in final examinations; and (c) remainingunmarried till completion o f secondary school (Grade 10). 28. Tuition. Two categories o f students will be eligible to receive tuition: (a) poor boys and girls receiving stipends; and (b) girls from households that lie between the 50' and 80' consumption percentile. Tuition support will be provided directly to educational institutions on behalf o f eligible boys and girls at the stipulated rates given in Table 3 below. These rates are based on existing tuition levels prescribed by MoE. Duringthe project period, it is estimated that 4.2 million student-years o f secondary education would benefit fkom tuition support. - 4 6 - Monthly First Second Grade Tuition Semester Semester 6 15 90 90 7 15 90 90 8 15 90 90 9 20 120 120 10 20 120 180 29. Each eligible institution will be requiredto enter into an annually renewable Cooperation Agreement specifying their commitment to comply with project rules and regulations. LGED will be the PMT administrator, and will be required to undertake the following tasks: (a) the selection o f poor girls and boys through the PMT process; (b) the verification o f the accuracy o f PMT information; (c) data collection (student, teacher, and school); and (d) the preparation o f lists of beneficiaries. Agrani Bank will be responsible for the disbursement o f stipends and tuitions (as was the case inthe FSSAPIIproject). Sub-component 2.2: General Stipends and Tuition Program 30. The objective o f this sub-component i s to continue the ongoing stipends and tuition program until the PMT-based stipends program i s implemented in all 121 upazilas. Using existing FSSAPII stipend modalities, support will be provided to two types o f programs: (a) existing stipends and tuition program; and (b)pro-poor self targeting (PPST) scheme. 31. Non-Targeted (Existing;) Stipends and Tuition Program. This program would support stipends and tuitions for girls (identical to the existing FSSAPIIprogram) for the second semester o f Academic Year 2008 in all 121 upazilas, and both semesters o f 2009 academic year in non- PMT upazilas (61upazilas). The programwill be phased out inthe 2010 academic year. 32. Pro-poor Self-Targeting Stipends and Tuition Program (PPST). Under FSSAPII, a poverty targeted stipend program (for boys and girls) was piloted in424 schools. These schools will be supported under the same scheme for the second semester o f Academic Year 2008, and these institutions innon-PMT upazilas for the 2009 academic year (about 200 schools) will also be supportedinthe same manner. The programwill bephasedout inthe 2010 academic year. Sub-component 2.3: Improving School Facilities 33. This sub-component is intended to attract and retain girls and boys in schools, through the provision (using community participation) of safe dnnking water and sanitation facilities to selective schools based on needs assessment. The provision o f improved school facilities i s llkely to leadto better health outcomes for children and increase their aptitude to learn. This component will finance the provision o f safe drinking water and twin latrine facilities, based on agreed guidelines. Activities would include: (a) testing o f existingproject schools tube-wells for arsenic contamination; (b) provision o f safe drinkingwater at schools without tube-wells; (c) provision o f twin latrines for boys and girls; and (d) support a school awarenessprogram and monitoring and evaluationactivities. Component 3 InstitutionalCapacity Strengthening(Total: US$9.9 million, IDA: US$8.4 - million) - 4 7 - 34. The objectives o f this component are to: (a) strengthen the existing structure for managmg and implementing the proposed project; (b) develop and strengthen the capacity to implement programs aimed at increasing educational quality, and to deliver financial support to targeted beneficiaries effectively; (c) strengthen accountability at school and upazila level; and (d) raise education awareness amongst stakeholders with focus on education quality, targeting, and accountability. Sub-component 3.I:Project Management 35. Inorder to ensure smoothproject implementation, the project management structure will need to be strengthened. With guidance from a Steering Committee chaired by the Secretary, MOE, the overall responsibility for the proposed project would lie with the Directorate o f Secondary and Higher Education (DSHE), as the implementing agency. It will be assisted by two units: DSHEEEQAEP Unit, led by a Project Director and the proposed DSHEMonitoringand Evaluation Wing (MEW), ledby a Director. SEQAEP Unit 36. The objective o f this Unit i s to enable DSHE to establish a strong management capacity to implement the proposed project. Based on FSSAPII experience, SEQAEP Unit will be staffed with a modest number o f key technical, procurement, and financial management staff. Its main functions will be to plan, manage, implement and coordinate activities under the proposed project. In addition, project management and implementation capacity will be augmented through the use o f several government and private specialized agencies (for example, services in areas such as Proxy-Means Testing, banking, educational testing, library establishment and management, etc.). Monitoring and Evaluation Wing 37. The objective o f this MEW is to enable DSHE to establish an effective monitoring and evaluation unit primarily to: (1)strengthen M&E capacity o f DSHE to monitor, review and evaluate project activities regularly; (ii) monitor, review and coordinate all DSHE stipends programs; (iii) monitor and evaluate other DSHE programs; and (iv) coordinate the dissemination o f national assessment o f learning achievement, and maintain a repository of integrateddatabases, relevant reports and studies. The MEW will play a key role in ensuring effective coordination o f stipend programs, particularly inenabling the M o E to scale up successful targeting and other key interventions under the proposed project in other GOBstipend programs. Inthe longer term, it i s envisaged that MEW would evolve as a full-fledged monitoring and evaluation entity. Sub-Component 3.2: Institutional Capacity Building 38. The objective i s to strengthen the capacity o f M o E to provide services at central, upazila, and community levels. Staff development will be an essential part o f capacity-building, especially for a project that has many new and innovative initiatives that require careful monitoring for program learning. Inaddition, it i s planned that staff capacity at the secondary upazilas offices be strengthened mainly through focused training. This sub-component will finance orientatiodworkshops, and in-country and internationaltraining. Sub-Component 3.3: SchoolManagement Accountability - 4 8 - 39. The objective i s to support MoE's efforts to increase accountability and transparency at the school level through the strengthening o f School Management Committees (SMCs) and Madrasah Management Committee (MMCs), Parent Teacher Associations (PTAs) and provision o f training to these stakeholders. Drawing on the lessons from FSSAPII, activities under this sub- component will support: (a) formation o f PTAs and SMCs; (b) training and capacity building of these PTAs and SMCs; and (c) supporting schools to conduct social auditing and implementing school card system. Sub-component 3.4: Education Awareness and Community Mobilization 40. The objective i s to build and increase awareness among all key stakeholders, with emphasis on the community and beneficiaries. Since the proposedproject places greater focus on quality and introduces new approaches such as pro-poor targeting based on proxy means testing, it is important that these messages are effectively communicated to all stakeholders. Two types o f activities will be supported: (i)educational awareness programs; and (ii)community mobilization. Activities would include the use o f several multimedia services. Component4 MonitoringandEvaluation(Total: US$1.7 million;IDA: US$1.7 million) - 41. The objective o f this component is to: (a) systematically document all project input, process, output, and outcomes; and (b) linkproject interventionswith outcomes. Sub-Component 4.1: Monitoring 42. The objective o f this sub-component is to strengthen capacity to monitor through systematic integration of various data streams (e.g., beneficiary verification, stipend disbursement, school enrolment, learning assessments), increasing database and processing capacity, training on educational management information systems, and provision o f specialized technical assistance. A comprehensive and integrated data monitoring system would be inplace to ensure that all project inputs, process, outputs, and outcomes are tracked. 43. This sub-component will finance: (a) annual census o f project institutions; (b) collection and maintenance o fthe P M T database; and (c) data collection, analysis and dissemination. Given the data-intensive design and the diverse nature o f the project components, monitoring arrangements will include the following key players: (i) willmonitorandreview all MEW stipend programs under DSHE, coordinate the dissemination o f national assessment o f learning achievement, and maintain a repository o f integrated databases and relevant reports and studies; (ii) asthePMTadministrator,wouldcollect,processandmaintainadynamicdatabase LGED, associated with all PMT-related activities. This also includes collecting project school data forms on teachers, enrolments, attendance, examinations and other education compliance data on PMT beneficiaries and integrating that information with the P M T database; and (iii)SEQAEPDPC will collect and process data associated with Non-PMT related activities, using the data platform developed by LGED, to facilitate an integrated database. 44. To supplement the internal monitoring mechanism, BANBEIS will provide an independent monitoring on the inputs, processes and outputs associated with various components o f the project. BANBEIS will be financed to conduct a Census o f all project schools in 121 Upazilas, on an annual basis, and prepare annual report based on Census data. Sub-component 4.2: Evaluation -49- 45. This sub-component aims at carrying out rigorous impact evaluation through development o f a detailed baseline survey (household and school-based), and follow-up surveys (one before MTR and another just before project completion) to be able to measure the effectiveness and impact of project interventions. The baseline survey will also provide critical information to calibrate the baseline K P I s (see Annex 3 above for details o f impact evaluation strategy). - 50 - Annex 5: ProjectCosts BANGLADESH: SecondaryEducationQuality & Access EnhancementProject Financing (US$ Currency (US$ Million) Million) Component I Subcomponent IDA GOB Total Total Local Foreign 1:ImprovingEducationQuality and MonitoringLearning Levels 1.1 Incentive awards to Students, Teachers and Institutions 9.9 2.0 11.8 11.8 11.8 1.2 Support for English and Mathematics Learning and Teachmg 18.4 2.4 20.7 20.2 0.5 20.7 1.3 Developingthe Reading Habit 3.9 3.9 3.5 0.4 3.9 1.4Assessment of Education Quality 0.9 0.9 0.9 0.0 0.9 Subtotal (1) 33.1 4.3 37.4 36.5 0.9 37.4 2: ImprovingEquity and Access 2.1 PMT based Stipend and Tuition to 77.8 14.8 92.6 the Poor 92.6 0.0 92.6 2.2 General Stipends and Tuition Program 6.8 4.0 10.8 10.8 10.8 2.3 Improving School Facilities 2.9 0.5 3.4 2.2 1.2 3.4 Subtotal (2) 87.5 19.3 106.7 105.5 1.2 106.7 3: Institutional Capacity Strengthening 3.1 Project Management 2.4 1.5 3.9 2.7 1.2 3.9 3.2 Institutional Capacity Building 1.1 1.1 0.4 0.7 1.1 3.3 School Management Accountability 3.1 3.1 2.9 0.2 3.1 3.4 EducationAwareness and Community Mobilization 1.8 1.8 1.8 0.1 1.8 Subtotal (3) 8.4 1.5 9.9 7.8 2.1 9.9 4. Monitoringand Evaluation 4.1 Monitoring 1.2 1.2 0.5 0.7 1.2 4.2 Evaluation 0.5 0.5 0.5 0.0 0.5 Subtotal (4) 1.7 1.7 1.o 0.7 1.7 Grand Total 130.7 25.1 155.7 150.7 5.0 155.7 84% 16% 100% 97% 3% 100% -51 - Annex 6: ImplementationArrangements BANGLADESH: SecondaryEducationQuality & Access EnhancementProject 1. Whilst a Steering Committee would provide overall guidance and policy support in respect of the proposedproject, the overall responsibility for the proposed project implementation would lie with the Director-General, Directorate o f Secondary and Higher Education (DSHE), as the implementing agency. It is proposed that the Director-General would be assisted by two units: SEQAEP Unitheadedby a Project Director, andthe proposed Monitoring and Evaluation Wing (DSHEMEW) headed by a director within DSHE. Project Management would be augmented by involving specialized agencies. Field level coordination will be carried out by Upazila Secondary Education Offices established under FSSAP (see attached: Implementation Arrangement matrix, Kqv Roles and Responsibilities, Job Descriptions for Key Stafi Organogramsand Staffing). 2. DSHE/SEQAEP Unit. DSHEPOU, under the ongoing FSSAPII, would be converted into a SEQAEP Unit with a modest number o f key technical, procurement, and financial management staff. It would be led by a Project Director, with appropriate qualifications and experience. The SEQAEP Unit would be mainly responsible for: (a) planning, coordination, implementation and monitoring o f project activities; (b) procurement and financial management; and (c) reporting on project progress. The SEQAEP Unit would consist of four sections: (i) the Quality Section, headed by a Deputy Director, would be responsible for coordinating the implementation of incentive awards to students, teachers and institutions (sub-component 1.l), support for Englishand Mathematics learning and teaching (sub-component 1.2), developing the reading habits (sub-component 1.3), and assessment o f education quality (sub-component 1.4); (ii) Access Section,headedbyaDeputyDirector,wouldberesponsible for coordinating the PMT-based stipends and tuition to the poor (sub-component 2.l), and implementing existing stipends and tuition program (sub-component 2.2), and the school facilities improvement program; (iii) the Finance Section, supported by a Financial Management Specialist, would be responsible for project financial management. In addition, three functions would report directly to the Project Director, namely: Project Operations, including Procurement (sub-component 3.l), Institutional Capacity Building (sub-component 3.2), School Management Accountability (sub- component 3.3), and Information and Education Awareness (sub-component 3.4). The SEQAEP Unitwould also comprise adataprocessing facility. 3. DSHEMonitoring and Evaluation Wing (MEW). The Program Monitoring Unit (PMU), supported by FSSAPII, was successful in improving coordination o f the stipend programs within DSHE, and helping DSHE monitor stipend projects. In order to consolidate gains from the integration of the FSSAP-I1within the DSHE through the Program Monitoring Unit (PMU), and ensure effective coordination of MoE's stipend program, as well as to strengthen DSHE's capacity for monitoring and evaluation, it i s proposed that the current DSHEPMU be upgraded as a Monitoring and Evaluation Wing, headed by a Director, and reporting directly to the Director General, DSHE. It would consist o f two sections: (i)a SEQAEP cell, headed by a Deputy Director, would be responsible for coordinating the implementation o f monitoring and evaluation o f SEQAEP project activities (Component 4) and MoE stipend programs; and (ii)a Monitoring and Evaluation cell would be responsible for monitoring other non-stipend DSHE activities, including monthly payment order, teacher development, and physical facilities. 4. Participating Specialized Agencies. Project management capacity would be enhanced through the participation of several government agencies as implementing partners (see draft - 52 - agreementsinAnnex 14), which would include: (i) Agrani Bank for disbursement o f stipend the and tuition; (ii) Bangladesh Bureau o f Education Information and Statistics (BANBEIS) for the the preparation o f annual education EMIS statistics, focusing on project upazilas; (iii)the Local Government Engineering Department (LGED) to serve as the Proxy-Means Testing (PMT) Administrator; and (iv) the Department o f Public Health Engineering for conducting tubewell testing for arsenic contamination. In addition, a specialized agency would be contracted as an additional partner to provide technical support in implementing the sub-component on development o freadinghabits. 5. Upazila Level Coordination. At the field level, the Upazila Secondary Education Offices, expected to be financed under the revenue budget, would facilitate project implementation activities o f Educational Institutions willing to enter into a co-operation agreement. Key functions would include: (i) support the PMT Administrator in PMT-related activities; (ii)collect, verify and submit educational data to respective agencies (PMT Administrator, BANBEIS, and SEQAEP Unit); (iii) help SEQAEP unit to plan, implementand monitor project activities (except PMT-related activities); and (iv) report on progress on educational institutions, and their compliance with project criteria and procedures to SEQAEP Unit. 6. Educational Institutions. The project will enter into a Co-operation Agreement with participating educational institutions (schools and madrasahs), specifylng the obligations o f participating educational institutions (e.g. compliance with project criteria and procedures, level of project support, and reporting requirements). The key requisite for educational institutions to become eligible for participationinproject activities would be the formation and functioning of a School Management Committee (SMC) and a Parent-Teacher Association (PTA). The educational institutions would be responsible, inter alia, for: (i) enrolling poor eligible girls and boys; (ii)providing educational forms for preparation o f Award Confirmation Forms; (iii) providing educational data; and (iv) implementing school-level project activities, including Water and Sanitation, Developingthe ReadingHabit, IncentivesAwards and PMT-related activities. 7. Operations Manual. The project would be implemented according to an agreed Project Implementation Manual, a PMT-based Stipends Operation Manual, and detailed agreed guidelines. Agreed amendments to these manuals and guidelines will be made periodically to incorporate adjustments duringproject implementation. - 53 - R O L E S Key activities Main Supporting IInternal Monitoring IDecision-making Sub-component1.1 -Incentivesto Students,Teachers, and Institu Ins 1. Identify awardsrecipients basedonagreed SEQAEP Unit Consultant criteria 2. Work out disbursement modalitiesfor SEQAEP Unit USEOs/ DPC students, teachers and institutions SEQAEP Unit 3. Organize annual awards ceremony at upazila SEQAEP Unit USEOs/ DPC level for all stakeholders SEQAEP Unit cs Learningand USEOs/ DPC SEQAEP Unit PD, SEQAEP SSC performance levels SEQAEP Unit 5. Prepare lists o f core trainedmaterial SEQAEP Unit Consultant developers/master trainers and co-trainers USEOs/ SEQAEP Unit 6. Preparation and implementation o fprogram at SEQAEP Unit Consultant, central, upazila and institutional level USEOs/ DPC SEOAEP Unit 7. Complete the contracting process with the SEQAEP Unit RHIA SEQAEP Unit PD, SEQAEP selected Reading Habit implementing agency (RHW 8. Coordinate with RHIA for planning and SEQAEP Unit RHIA SEQAEP Unit PD, SEQAEP implementationo f the program USEOs/ DPC SEQAEP Unit 9. Reviewquarterly progress reports prepared by SEQAEP Unit RHIA SEQAEP Unit PD, SEQAEP RHIA USEOs/ DPC SEQAEP Unit Sub-component1.4 Assessment of LearningOutcome - 10. Prepareplans andprograms for testing SEQAEP Unit Consultant SEQAEP Unit PD, SEQAEP assessment (Mathematics and English at Grade 8) 11. Implement programs andprepare reports SEQAEP Unit USEOs/ DPC SEQAEP Unit PD, SEQAEP SEQAEP Unit I I I I Sub-component 2.1 -PMT-basedstipends and tuition 12. Select beneficiaries (booth, processing, I P M T I USEOs ISEQAEP UnitiMEW 1PD, SEQAEP preliminary listing, appeal, final listing) Administrator (PMTA)/LGED 13. Collect SEQAEP forms from schools USEOs PMTNLGED SEQAEP Unit PD, SEQAEP 14. PrepareACF PMTNLGED DPC SEQAEP SEQAEP Unit PD, SEQAEP I15. Approve ACF and send to Agrani Bank, SEQAEPUnit P M T A L G E D - PD, SEQAEP together with financial authorization letter I (Access & Finance) 16. Disburse stipendsand tuition, and Submit Agrani Bank USEOs/ financial statements 17. Preparehalf-yearly report (including PMTNLGED reconciliationreport) Agrani Bank Sub-component 2.2 -Generalstipends and tuition 18. Collect SEQAEP forms from schools I USEOs IDPC SEQAEP ISEQAEP Unit 1PD, SEQAEP - 54 - R O L E S Key activities Main Supporting InternalMonitoring Decision-making 19. PrepareACF DPC SEQAEP SEQAEPUnit SEQAEP Unit PD, SEQAEP 20. Approve ACF and sendto AgraniBank, SEQAEPUnit DPC SEQAEP SEQAEP Unit PD, SEQAEP together with financial authorizationletter (Access& I21. Disburse stipends andtuition, and Submit I AgraniBank 1 USEOs I SEQAEPUnit/MEW I PD, SEQAEP I financial statements 22. Prepare half-yearlyreport(including I DPCSEQAEP SEQAEPUnit, I SEQAEPUnit/MEW 1PD, SEQAEP reconciliationreport) 1IAgraniBank USEOs 24. Prepareguidelines SEQAEPUnit DPHE SEQAEPUnit PD, SEQAEP 25. ImplementProgram SEQAEPUnit USEOs, DPC DPHEEEQAEPUnit PD, SEQAEP 26. Prepare andimplementSEQAEPactivities PD, SEQAEP SEQAEPUnit MoE~~XJ~E MoE 27. PrepareandImplementMEW activities Director,MEW MEW DGDSHE MoE 28. Carryout ProcurementActivities SEQAEPUnit SEQAEPUnit SEQAEPUnit PD, SEQAEP (Procurement) 29. Carry out FinancialManagementActivities SEQAEP Unit SEQAEPUnit SEQAEPUnit PD, SEQAEP (Finance) 30. Prepareprojectreports PD, SEQAEP SEQAEPUnit, DGDSHE MoE DPC. MEW Sub-component 3.2 -StrengtheningInstitutionalCapacity 31. Preparecapacity-buildingprograms I SEQAEPUnit I Consultant I SEQAEPUnit I PD, SEQAEP _.- (including-training) 32. Implementprogramsandpreparereports Training SEQAEPUnit SEQAEPUnit PD, SEQAEPI Provider MoE 33. Prepareprograms(includingtraining) SEQAEP Unit Consultant SEQAEPUnit PD, SEQAEP 34. Implementprograms andpreparereports Training SEQAEPUnit SEQAEPUnit PD, SEQAEPI Provider MoE Sub-component 3.4 -EducationAwareness and Community Mobilization 35. Preparecommunicationstrategiesandplans SEQAEPUnit Consultant SEQAEP Unit PD, SEQAEPI MoE 36. Developmaterialsandimplementprograms, Consulting fm SEQAEPUnit SEQAEP Unit PD, SEQAEPI andpreparereports MoE Sub-component 4.1 -Monitoring 37. Prepareandimplement SEQAEPUnit SEQAEPUnit Consultant SEQAEPUnit PD, SEQAEP monitoringplans, andreports 38. Prepareandimplement SEQAEP Unit MEW SEQAEPUnit DGDSHE MoE monitoringplans, andreports & Consultant 39. ConductannualEMIS census of 121upazilas BANBEIS SEQAEPUnit DGDSHE MoE & Consultant 40. Conductindependentmonitoring(sample- SEQAEP Unit BANBEIS DGDSHE MoE based) Sub-component 4.2 -Evaluation 41. Conductbaseline survey SEQAEP Unit Tech. Asst. MEW PD, SEQAEP 42. Conductissue-basedandperiodic studies MEW Consultants DGDSHE MoE 43. Conductfinal evaluationstudy SEQAEPUnit/ Consultants DGDSHE MoE MEW - 55 - Key Roles and Responsibilities and Central and Local Levels Key Roles and Res possibilities Providesoverarchingpolicy and operationalguidance for the Project DDeveloping aregulatory framework achievingthe objectivesof the project DDuring project implementation:issuing guidelinesto divisional, district and upazila level officials DSign Memorandumof Understandingwith relevantGovernment agencies Facilitate SEQAEP Unit and MEW inits planning and implementation Higher Education(DSHE) responsibilities Financial oversight on project implementation Liaise with MoE on project implementationactivities Making support availablefrom appropriate DSHE line wings SEQAEP Unit Settingup guidelines andregulations, anddevelopingoperations resource Operational structure manuals for project implementation responsiblefor day-to-day Plan, implement and manage Project activities, andpreparebudget Projectfunctioning, including estimatesheports Stipend, tuition andincentives Deliver stipend, tuition andincentivedgrantsto students, teachersand operations, training and institutions educationactivities Oversee/executecontracts for goods, works and services communicationand Plan and cany out procurement activities awareness campaigns, and M&E, Oversee andmanage awareness/communicationscampaigns undertakenby procurement, and finance. contracted agencies Prepareannualprogressreport Sign Participatiodcooperation'sAgreements Prepare semi-annualestimatesfor incentivesto students, teachers and institutions Establishandrunsystemto ensure compliancewith eligibility criteria Establishformal agreements with institutions grant recipients Preparethe recipient list of awardees for incentivesand grants Track andmaintainrecords of all transactionson incentivesand grants Maintain contact with Agrani Banksregardingmanagementincentives/grants resources Identify problemsand seek solutionsto issuesarising from incentives/grants programmanagement Stipend andTuition Preparesemi-annualestimatesfor stipends to studentsandtuition to institutions Establishand runsystemto ensure compliancewith eligibility criteria Establishformal agreements with institutions grant recipients Preparethe recipient list of awardees for stipend and tuition Track and maintainrecords of all transactions on stipend and tuition Maintain contact with Agrani Banksregardingmanagementstipend and tuition resources Identifyproblemsand seek solutionsto issues arising from stipendtuition programmanagement Monitoring and Evaluation Monitoring: Maintaincontact with contractedmonitoringagency's central data unit Maintain contact with Upazila SecondaryEducationOffices (USEOs) and Local PMT Administrator (LGED) for collecting data on incentivesand stipend Liaise with project implementingentities/SMCs Evaluation: Ensurequality, consistencyof data collected Produce/overseeproduction of semi-annualstatisticaldata reports Produce/overseeproduction of semi-annualanalysis o f Projectprogress Oversee production of impact studies of Project effectiveness Research:Conductingspecial ad hoc studies to assessspecific issues under - 56 - Unit Key Roles and Res possibilities the Projectas needed(e.g. changes inquality, changes inenrolment rates) Feeddatdinformation into annual monitoringandprogressreports Administration and Finance Maintainday-to-day administrationof staffing, logistics, personnel management. Maintainclose contact with MOF and organize audits and liaise with accounts department Preparethe budgetnecessary for release of funds Makeproposalsfor fund release semi-annually Channel funds to recipiententities Prepareannual financial reports Ensurethat institutions adhere to guidelinedcriteria regardingutilization of resourcesincoordinationwith MEW and other relevantagencies Keepfinancial accounts, reportson financial progress, ensure internal control and auditing Maintainacomputerized financial managementsystem Contributeto preparationof progressreports, semi- and annual plans Liaise with relevant unitswithin MoE, andother Government agencies Agrani Bank Ensuretimely transfer of funds, includingstipend, tuition and incentives, upon SEQAEP request Providetimely disbursement statements, reconciliation reportsandother relevant documents PMTAdministrator Undertakeinitial communitymobilization Conduct PMT survey and preparebeneficiary list PrepareACF basedon PMTresults Preparesemi-annualmonitoringreport and annual statisticalreport Upazila SecondaryEducation Act as focal point for providinginstitutional datdinformation, facilitate Officer disbursementsof stipend, tuition and incentives Providesupport to the local PMT administration(LGED) for conductingPMT survey and relevant activities School ManagementCommittee Responsiblefor managingthe institutions Arrange signingthe comprehensive cooperationagreement with the project - 57 - Position Key tasks Education/ Experience and Skills Qualifications A. SEQAEP Jnit Project mProvide technical and project management Minimum10years ofproject Director leadership to a team comprising o f staff and management and monitoring and consultants incarrying out project activities evaluation experience, preferably in under SEQAEP, including procurement and stipends programmanagement financial management, reporting directly to Abilityto work inforeignaided the Director General, DSHE projects ina team environment Plan, implement, manage, supervise, monitor, Ability to coordinate with various and coordinate all SEQAEP activities ministries and agencies mCoordinate among all SEQAEP partner Proficiencyinwriting andspeaking agencies having entered into a Participation English Agreement or Memorandum o fUnderstanding management Basic computer skills (Word, Excel, or consultants engaged inSEQAEP activities etc.) mBe responsible for regular reporting on SEQAEP activities to IDA Deputy Assist the Project Director, incarrying out the Master's Degree, Minimumatleast 5 years o fproject director, following sub-components: (i) Incentives to preferably inthe management, andmonitoring and Quality Students, Teachers, and Institutions; (ii) field o f evaluation experience, particularly in Support to English Language and educational stipends program Mathematics Learning and Teaching; (iii) management or Ability to work inforeignaided Development o f the Reading Habit; and (iv) related field projects ina teamenvironment Assessment o f Learning Outcomes; and (v) Trained in Abilityto coordinate stipend- educational awareness campaign educational projects @Assist Project Director inplanning, development, Proficiencyinwriting andspeaking implementing, managing, monitoring and specifically English evaluating, coordinating andpreparing education quality, Basic EMIS/Statistical skills documents relatedto respective sub- incentives, and Basic computer skills (Word, Excel, components teacher etc.) mReport directly to the ProjectDirector development Deputy mAssist the Project Director, incarrying out the Master's Degree, Minimumat least 5 years o fproject director, following sub-components: (i) PMT-based preferably inthe management, andmonitoring and Access stipends programs; (ii) Ongoing Stipends and field o f evaluation experience Component Tuition Program; (iii) Improving School educational Abilityto work inforeign aided Facilities; and (iv) School Management and management or projects ina team environment Accountability, as well as data processing related field Abilityto coordinate education activities Trained inM&E programs Assist Project Director inplanning, Proficiencyinwriting and speaking implementing, managing, monitoring and English evaluating, coordinating and preparing Basic EMIS/Statistical skills documents related to respective sub- Basic computer skills (Word, Excel, components etc.) mReport directly to the Project Director Procurement Assist Project incarrying out procurement At least Minimumfive years' experiencein officer relatedtasks under SEQAEP, including Bachelor's IDAprojectrelatedprocurement updating the procurement plan, preparing Degree inany Ability to work inforeign aided bidding documents and requesting for subject, projects ina team environment - 58 - Position Key tasks Education/ Experience and Skills Qualifications proposals, short-listing consultants, evaluating preferably in Proficiencyinwriting and speaking bidsiproposals, and awarding contracts management English Be responsible for procurement monitoring Training in Basic EMIS/Statistical skills Report directly to the Project Director procurement Basic computer skills (Word, Excel, management etc.) Financial Prepare a financial management manual A professional Ten years experience infinancial Management Assist the PD inpreparation of annualbudget qualification management (of which at least three Specialist estimates, revisedbudgetandprepare financial (CA/CMA) having years ina managerialposition inany [seeTOR plan Masters Degree in government/semi government for details) Prepare annual and quarterly disbursement Accounting or in organizations), GOB budget, fund forecasts Business release andreporting formalities, Obtainquarterly semi-annual fundrelease Administration/ World Bank's fund operating Reconcile fhds transferredand disbursed Commerce or conditions & reporting requirements. Maintain appropriate financial records equivalent Have hadhands-on experience in (registers, books, records, ledgers, etc.) Microsoft or similar c6mputerized Ensureinternalcontrolthroughapplication o f Accounting appropriatepolicies andprocedures Proventrack recordo f ability to Ensure early adoption o fa Computerized develop a Chart o fAccounts Accounting System(CAS) befitting the relevant computerized Developa comprehensive Charto fAccounts accounting system andthe report Maintain computerizedrecords andinventory Strong organizationalandplanning on fixed assets skills with the ability to work Prepare financial statementsandother monthly independentlyas a team player and and quarterly reports underpressure Obtainfinancial statements fiom School Strong intelpersonal communicative ManagingCommittees skills, experience inteam leadership Interface with internal auditors andFAPAD andparticipatory management. Report to directly to Project Director Abilityto impart trainingto the project staff on financial management system I Director mLead and manage MEW small team o f staff Masters Degree, Minimumat least 7 years ofproject and consultantsin carrying out M&E activities preferably inthe management andmonitoring and for SEQAEP and DSHE, reporting directly to field o f evaluation experience, preferably in the Director General, DSHE educational stipendsprogrammanagement Plan, implement, manage, monitor and management, or Ability to work inforeign aided evaluate, coordinate and document M&E related field, with projects ina team environment programs under SEQAEP knowledge o f m Ability to coordinate withvarious Coordinate M&Eactivities among all DSHE economics or ministries and agencies programs (stipends and other DSHE statistics m Proficiency inwritingand speaking programs) andprovide feedback to Trained in English MOEDSHE educational D Basic computer skills (Word, Excel, development, etc.) andor monitoring and evaluation Deputy mAssist Director, MEW incoordinating M&E Master's Degree, D Minimumat least 5 years ofproject director, activities under SEQAEP, reporting to the preferablyinthe management, andmonitoring and SEQAEP Director, MEW field o f evaluation experience, particularlyin Cell mAssist Director, MEW inplanning, educational stipends program implementing, managing, monitoring and management or Ability to work inforeign aided evaluating, coordinating andpreparing related field, with projects ina team environment documents (including progress reports) for knowledge o f B Ability to coordinate stipend- SEQAEP-related M&E programs economics, projects mAssist Director. MEW incoordinating M&E statistics. or BProficiencyinwriting and speaking - 59 - Position Key tasks Education/ Experience and Skills Qualifications I activities among all DSHE stipends programs computer science English Trained in Basic EMIS/Statistical skills stipend-related Basic computer skills (Word, Excel, activities etc.) Deputy 1Assist Director, MEW incoordinating M&E Master's Degree, Minimumat least 5 yearso fproject director, activities under DSHE, reporting to the preferably inthe management, and monitoring and Other Director, MEW field o f evaluation experience Programs 1Assist Director, MEW inplanning, educational Abilityto work inforeign aided implementing, managing, monitoring and management or projects ina team environment evaluating, coordinating and preparing related field, with Ability to coordinate education documents (including progress reports) for knowledge o f programs DSHE-related M&Eprograms economics, Proficiencyinwriting and speaking statistics, or English computer science Basic EMIS/Statistical skills Trained inM&E Basic computer skills (Word, Excel, etc.) I--- I L I d \o I c > o c z P s 0 3 n W cdz ow0 v) T c u T t m m m m -63 - Annex 7: FinancialManagementandDisbursementArrangements BANGLADESH: SECONDARYEDUCATION QUALITY & ACCESSENHANCEMENT PROJECT 1. A Financial Management (FM) assessment was carried out to identify the FM environment and capacity o f the country and the entity- the Directorate o f Secondary and Higher Education that will implement the project with a view to assess the financial management risks underlying the Project and the capacity o f the entity and the Project financial management arrangement that would needto be inplace to meet the fiduciary requirement o f the proposed Project. 2. Country Issues. Over the last several years, GOB has been addressing key weaknesses in financial management identified in the Country Financial Accountability Assessment (CFAA), through a series o f reform programs supported by DFID, WB and a few other development partners. However, due to the fragmented approach to Public Financial Management (PFM) reforms, there has been uneven improvement on the PFM system across the government agencies and institutions. A joint WB, DFID, and GOB review o f Institutional Arrangements for Public Expenditure, Financial Management and Procurement completed in June 2005 revealed that Bangladesh's public expenditure institutions need to be significantly strengthened. The review that was carried out under Public Expenditure and Financial Accountability (PEFA) Performance Measurement Framework also confirmed that linksinthe public financial accountability chain in Bangladesh continue to be weak. Internal and external controls remain weak, as reflected in the lack o f accounting information in line ministries, delays in the publication o f audit reports, unsatisfactory quality o f the external audit function, and ineffective Parliamentary oversight of the whole budget process. 3. Though GOB has taken several further steps to improve its public financial management and procurement systems and the overall trajectory o f change has been positive, the pace o f progress has been slower than anticipated. The recently approved GOB document on "PFM Vision & Medium Term Rolling Action Plan" develops time-bound reform actions and remedial measures to improve financial management and accountability. Among the reform actions proposed are measures aimed at strengthening line ministry's financial management function. Donors have recently agreed with the government to provide implementation support to the PFM reforms through a MultiDonor Trust Fundto be administered by World Bank. 4. Efforts are also underway to tailor and apply the PFMmeasurement framework at the sector level and this would be an opportunity to reflect the environment o f MOE systematically. T o identify the sector specific public financial management issues, a financial management assessment o f the education sector was conducted at the beginning o f multiple operations o f the Education Sector Development Support Credit (ESDSC) program. MOEhas been keen to address the issues identified and had agreed with IDA on a medium term Financial Management Improvement Plan (FMIP) comprising actions to: (a) strengthen the Financial Management Unit (FMU); (b) improve reconciliation o f accounts; (c) introduce internal audit; (d) respondbetter to resolution o f audit findings; and (e) strengthening follow up on recommendations o f the Public Accounts Committee. Significant progress has been made in implementation o f these agreed actions over the period o f implementation o f three ESDSC operations in the series. Despite the weak overall country financial management environment, fiduciary risk in donor-funded projects has been greatly minimized due to the government policy stipulating additional implementation arrangements inthose projects -64- 5. Implementing Agency. The Directorate o f Secondary and Higher Education @SHE), a department under the Ministry of Education WOE) has been implementing a number of Education Projects both GOB and donor funded. Like most o f the government departments DSHE has no financial management organization. A Deputy Director (Finance) assisted by a few staff looks after limited financial management and the related coordination functions in respect o f the recurrent budget o f the directorate. There has beenno sustainable financial management capacity developed in the DSHE that has been implementing the Bank and other donor funded projects for over a decade. DSHEhas beenproviding financial management support to projects' implementationthrough project specific FM staff under the Project Implementation Units, by appointing the teachers o f government colleges on deputation in the key positions and hiring remaining staff under the project. DSHE's experience in implementing the similar project, lies with the POU established under FSSAPII. The capacity attained through the training andhands on experience of the teachers could not be sustained due to application o f government procedures on transfer and posting o f teachers. However, the capacity attained would be partially sustained byretaining inthe financial management section o fthe SEQAEP UNIT to be established, the Accounts Officers and some other accounting staff o f the feeder operation FSSAPII, onthe basis o fneeds assessment. 6. Risk Analysis and Mitigation. Before mitigation, the overall FM risk is rated as "Substantial". This i s mainly due to the non existent entity FM capacity o f DSHE, the prevailing culture o f appointing public college teachers without the requisite skills on the key FMpositions o f the projects, the GOB rules restricting retention o f the FM staff o f the feeder project in the follow on project, the culture of use of project vehicles by the line ministry, MOE and other powerful ministries' non relevant officials overtaking the more deserving candidates in the overseas training courses o f the project ,arbitrary slashing by planning commission o f genuine budget estimates o f the project, delays in releasing GOB share o f project fund and delays in providing authorization for use of DesignatedAccount, the provision for payment o f allowance to trainees and resource providers and payment to government institutions for contracted management o f training events without having MoF's concurrence and the computerized accountingsystem functional inFSSAPIInotbeingrelevant for the project. 7. Considering DSHE and M o E 's commitment and upon the agreement reached on identified mitigating measures with dated FM action Plan, the residual risk i s "Modest". bsk assessment, mitigation measures and determination o fresidualrisks are shown inTable 1below: -Financial RiskAssessment Risk Initial Risk Mitigation I - FMRisk Condition FM After Mitigation Inherent Risk Country Level H H PFM institutions and system lack capacity for Various reforms on country level PFM detecting financial irregularities in a timely ongoing and planned but unlikely to manner, including taking corrective actions. have any impact in short term EntityLevel S S The entity does not have the FMorganization The capacity would remain unchanged Not Applicable- The project or capacity to oversee or monitor the project untilLine Ministries'(and attached does not have the leverage FMperformance Departments') financial management to induce changes in GOB'S organization, functions and reporting organizational structure lines are discussed and decided under the PFM reform programthat has been undertaken to be implemented through a Multi Donor Trust Fund -65 - Risk Initial RiskMitigation FMRisk Condition FM After Risk Mitigation Control Risk S M Budget DSHE andMOE apprises IDA with an updateon lack ofparticipatoryand coordinated The FMSwill preparetheproject steps taken on these issues- approachwithin sectionsof SEQAEP budget inconsultationwith the other BeforeNegotiations unit might not produce an adequate and sections ofthe SEQAEP unit under a realisticbudget structuredbudget preparationprocess. MOEwill set a service standard lengthyapprovingtiers- DSHE, MOE, applicableto DSHE anddifferent PlanningCommission, ERDwith no sections/wingso fMOEandwill servicestandardswould leadto wastage exploreways of improvingtimeliness ofprojectinput on follow upandmight inscrutinizingandapprovingprocess impacton quality ofbudget prepared by authoritiesbeyondits boundaries. hurriedly consideringthe leadtime requiredinapprovalprocess The MOE approaches ERD to agree arbitraryslashing by planning that project's proposedallocationin commission/ERD ofgenuinebudget ADP/RADP underPA is not reduced, requirement underProjectAid, despite since IDA funding hasno constraint no constraintinIDA financing. Accounting M L Computerized accountingsystem(CAS) being Adequatefunding for aCAS has been usedinFSSSAPI1 notbeingrelevantfor the provisionedinthe projectdocuments new project, the delays inprocurement and andthe packagehasbeenincludedin implementationofanew system will affect the initial ProcurementPlan. producing project financial information with The projectFMS to be recruitedwill accuracy andtimeliness have the requisiteskills(T0R agreed) to assist earlyprocurementand implementationof thenew systemand to operateit andalso use an MSExcel based systemuntila computerized systemis functional. Internal Control S M Involvementof FM staffincross checkingo f Under Implementationarrangement, disbursement of stipends andother payments suchdisbursementshavebeenshown onquality enhancement to students, teachers asjoint responsibilitiesofAccess and andschoolsmaybe compromised for urgency Finance sections of SEQAEP unit. A time boundwork planwill beprepared showingresponsibilityof each. Absence of financial managementcontrolon A FinancialManagementFramework disbursementfor School HygieneProgram (integratedwith proc. framework) that may weaken the fiduciary assurance has beenagreedwill be includedin the OperationsManual. FM Sectionmay be asked to carryout paymentsrelatingto training or operational FMManualwill clearlyprovide the travel for DSHE,MOE andother high officials documents and approval to be required on adhoc basis without adequate support for eachtype of transactionsand all docs. sectionsof SEQAEP UNITwill adhere to that. Audits during FSSAPIIindicatesno Fundsflow S significantleakage.Disbursement M Leakageof funds in disbursementof stipends throughthe commercialbank- used in to schoolsat dispersedlocations FSSAPIIwith more stringentreporting - 66 - Risk Initial RiskMitigation FMRisk Condition FM After Risk Mitigation andreconciliation obligation, Special arrangementmade with MOF in depositingstipendsto students' A letter confirming MOF's releasingGOB funds semi-annually on account, bettermanagementof Award agreement, will be academic semesterbasisunder FSSAPII and Confirmation List, supervisionof local submittedto IDA Before requiredfor the project, maynot be continued EducationOfficers will minimize the Negotiations. risks. MOF may not agree to let the Designated MOE gets the required Accountbe openedwith Agrani Bankthat arrangementconfirmedby MOFIPC MOE andthe SEQAEP needsto hold the DA under terms of throughamemorandumissuedby UNITagreedto take the ParticipationAgreement MOF. suggestedsteps during implementations. MOEobtains MOF's prior agreement Implementationmay suffer due to delay in obtainingMOF's authorizationto use DesignatedAccount FM stafftakesdue diligencein preparationandtimely submissionof Authorization Requests, MOEmakes quick endorsementand follows up for MOF's acceleratedaction Financial Reporting M Reportingproject expendituresby project Formatandcontents of IUFRs and IUFRsdiscussedinitially at componentsas partof IUFRsmaybe DPPheads ofreporting will be appraisalwill be formally constrained until an appropriately harmonized. agreed during Negotiations. programmedcomputerizedaccountingsystem A CAS will beprocured, (CAS) is functional implementedandmadefunctional To bemonitoredthrough early on. initial procurement plan and supervisionsof implementation. Auditing S The auditreportmay not capture A Statementof Audit Needs(SAN) SAN will be agreedduring accountabilityand corruptionissues will be agreedwith the C&AG with the 1st Implementation adequately audit focus on testingcontrols SupervisionMission preventingcorruptionand detecting transactionswith corruptpractices Remedieswill be applied Inadequateresponses of the DSHEandMOE systematically.Consequences ofnot to the audit issues might reducethe audit respondingto audit issuesontime will impact be disseminatedat ProjectLaunch Workshop ResidualFM Risk Rating S M RiskRatings: L=Low, M=Moderate, S=S Strengths 8. The project has the following strengths inthe area o f financial management: (a) the project is a follow on project and hence some o f the key staff who will be retained in the project have adequate s h l l s in Bank`s and GOB'S disbursement and financial reporting procedures and operating a computerized Accounting system; (b) A qualified accountant agreed to be appointed as FM Specialist will be able to lead the FMteam in due discharge o f its functions( c) a generic Project Accounting Manual is in place that provides a Government control framework for donor assisted projects; (d) Agrani Bank- the commercial bank that carried out the disbursements to - 67 - beneficiary students and schools under FSSAPII, will be used inthe project and the Participation Agreement provides a ready framework to negotiate an improved one based on the lessons learnt (e) a system o f flow o f financial information from various Upazilas to DSHE/SEQAEP UNIT and at central level exits. Weaknesses 9. Weaknesses were identified and their resolutions suggested inthe FMrisk sections above. 10. Project Description and Financial Management Issues. The proposed lendingis a Sector Investment Loan (SIL) financed through an IDA Credit o f US$130.7 million with the objectives to improve quality o f secondary education and increase access there to inthe project's target area o f 121 out o f 500 upazilas in Bangladesh, matching exactly the project area of the nearly completed feeder operation, the Female Secondary Stipend Assistance Project 11. The proposed project would consist o f four components : (1) improving education quality and monitoring o f learning levels in project areas(33.lm); (2) improving equity and access inproject areas through provision o f stipends to poor girls and boys (87.5m); (3) strengthening the institutional capacity o f M o E both at central and local levels (8.4m); and (4) establishing an effective monitoring and evaluation system( 1.7m). The key financial management issue in the project is centered around reaching the substantial project fund in stipends and other q2uality based incentives to the targeted students, teachers and the schools in dispersed locations across the project area . The proposed project has the strength that it i s the 31d stipend project o f the Bank and the implementing agency has been implementing a number o f similar projects funded by other development partners and the Government. Another key strength is the involving in the disbursement o f stipend , the same commercial bank channel that was engaged in the feeder project under a Participation Agreement. Audits duringFSSAPII indicatedn o significant leakage o f fund. The proposed project's design that includes disbursement through the commercial bank- used in FSSAPII with more stringent reporting and reconciliation obligation, depositing stipends to students' bank account, better management o f Award Confirmation List involving LGED ,an agency independent o f MOE, close supervision o f local Education Officers will minimize the risks o f leakage in the fund disbursement. The internal control arrangements o f key functions under various components and sub-components have been tabulated in the Annex-6 - Implementation Arrangements ,clearly allocating roles and responsibilities for each significant steps inthe implementation process. 11. Project Financial Management: The project financial management arrangement, as assessed and agreed, together with the implementation of the actions in the action plan would be adequate to meet the project financial management needs complying the requirements of Bank's OPBP 10.02. The status as assessedand arrangements agreed on various aspects o f financial managements are stated below. 12. Staffing: Recipient's ability to successfully implement a project fulfilling the fiduciary requirements o f the various stake holders are largely affected by the adequacy and quality o f the financial management system used in the project implementation and continued existence o f FM staff with adequate qualifications and appropriate experiences .A new project organogram for SEQAEP has been drawn up indicating staff positions in the financial management section o f the SEQAEP UNIT and the reporting mechanisms, which is adequate for the project. The job descriptions and the requisite qualifications for the key positions are specified in the TORS, included in the PIP/Operational Manual for the project. A Financial Management Specialist (FMS) with a professional accounting qualification and having appropriate project financial - 68 - management experience will be appointed to lead the Financial Management section o f the SEQAEP Unit. The F M S will be responsible to the Project Director for duly discharging all project FM functions with the assistance o f other FM staff in the section. The F M S will have exposure to GOB and World Bank's financial management and disbursement requirements and hands on experience on use o f Computerized Accounting Systems. The TOR for the F M S has already been agreed and the selection o f the appointee would be finalized before negotiations in order for the person to be in place right from the start up o f the project. The provisions for other FMstaffhavebeenmade inthe project documents and ithasbeenagreed that such staffwouldbe inplacewithinthree monthsfrom the project effectiveness. 13. Budgeting: Project budget will be prepared by the Project Director with the assistance o f the project FMS in coordination with the heads of other sections of the SEQAEP UNIT, on the basis o f approved procurement plan and implementation plan. The SEQAEP UNIT will submit the annual original and revised budget to the planning wing o f the MOE for obtaining Planning Commission's approval under Annual Development Plan (ADP) and Revised ADP. SEQAEP UNIT will undertake the due diligence inpreparing realistic budgets so that neither the project implementation is constrained by lack o f fund due to inadequate budgetary provisions, nor the project is questioned for failure to achieve implementation progress commensurate to budgetary provisions. Actual expenditures for the project would be comparedwith budget each quarter. The reasons for budget variances would be discussed in the IFRs. During the implementation of the FSSAPII, the project faced implementation delays due to arbitrary slashing by the Planning Commission of ADP allocations o f IDA resources genuinely requested by the project, although there was no limitation on availability o f IDA resources. IDA would appreciate that the External Relations Department (ERD) in consultation with the Planning Commission confirms that this project will not face such constraints. 14. MOF will monitor the budget implementation through issuance of authorization for use o f Designated Account and quarterly release o f GOB funds. Any genuine necessity for deviation from the budget will be met by obtaining the approval through Revised Annual Development Plan(RADP). 15. Fund Flow and DesignatedAccount: IDA'Spart o f project funds will flow mainly through a Designated Account (DA) inAgrani bank to be opened as a Convertible Taka Account. Under a Participation Agreement ,Agrani Bank will, through its branches across the project area , carry out the actual disbursement o f stipends ,tuitions and other supports to the beneficiary teachers, students and institutions and will provide a reconciliation o f fund actually disbursed to the beneficiaries with the fundreceived from the DSHEBEQAEP. The poor students will be targeted through Proxy Means Test (PMT) to be carried out by LGED with the involvement o f Upazila Secondary Education Officers . Funds will flow from the Project to the Agrani Bank on the basis o f Award Confirmation Forms prepared by PMT Administrator and approved by the Project Director and Agrani Bank will disburse the funds to the beneficiary institutions, teachers and the students' bank account. Withdrawals o f fund by students will be allowed under certain control mechanisms in presence o f bank officials, U S E 0 and the school teachers, Project fund for other activities will also flow through direct payments and issuance o f special commitments as and when required. The authorized limit for the DA and minimumapplication size for direct payment will be agreed with loan department and will be reflected in the Additional Instructions (Disbursement Letter). 16. All project expenditures under PMT based stipend program, goods, works, consultants' and other services and training will be funded 100 percent by IDA including taxes thereon. There would be matching GOB funding o f 15 percent in respect o f Additional support for students and - 69 - teachers and support under ongoing stipend program. GOB would be funding 100 percent of Project Operating Expenditures and 100 percent o f PMT based and Ongoing Tuition Programs. GOB'Sshare o f project financing under stipend and tuition programs will be released on a semi- annual basis corresponding to the academic semester o fthe schools. The CAO, MOE will transfer the funds so released to the designated branch o f Agrani Bank for onward transfer to its branches for disbursement to beneficiaries as per instructionso f DSHEBEQAEP UNIT. The GOB fund for the remaining categories will be accessible following observance o f quarterly fund release procedures initiated by D S HE and approved by MOE for three quarters and also by MOF and MOP for 4th quarter. The GOB fund so released will not flow directly to the project; all bills for expenses incurred as approved by the Project Director will be presented to the CAO, MOE for payment after pre-audit incross cheques to the providers o f goods and services. 17. Disbursement mechanisms and checks and controls for payment to the beneficiaries o f stipends and various other quality enhancement interventions have been described in the Operations Manual for the project, Participation Agreement with Agrani Bank attached as Annex 14a and implementation arrangements -table under Annex 6. 18. Disbursement. IDA's share o f the project cost will be disbursed under transaction based traditional WB disbursement procedures initially. IDA will require full documentation where contracts for (i)goods exceed US$300,000 equivalent, (ii)works exceed US$500,000, (iii) consulting firms exceed US$lOO,OOO, and (iv)individual consultants exceed US$50,000. Expenditures below the above threshold will be claimed through Statement of Expenditures (SOEs). After the mid-term review, disbursements may be switched over on the basis o f Interim Un-audited Financial Reports (IUFRs) if the Recipient so prefers and IDA finds that project financial management system i s working satisfactorily and is generating timely and reliable full set o f IFRsthat are acceptable to IDA. 19. Disbursement o f IDA funds will be made through these disbursement categories. Table 2 below shows the share o f IDA financing: Table 2 - ShareofIDA Financing 1. GoodsandWorks 8.7 38% 3.3 2. Awards andGrants, andGeneralStipends 36.4 100% 36.4 3. PMT-basedStipends 72.5 100% 72.5 4. Consultants' services, Training, Studies andWorkshops 18.5 100% 18.5 I 5. Tuition I 14.4 I 0% I - I 6. OperatingExpenditures 5.2 0% Total 155.7 130.7 The 100% financing by IDA o f the major project activities will augment the implementation speed, reduce the transaction costs, provide safeguards for IDA funds from the misuse that often - 70 - have beenreported inthe audit report o f FSSAPIIand a number o f other projects inthe Bank's portfolio. 20. Accountingand Reporting. The project will follow GOB Project Accounting Manual in maintainingbooks o f accounts and incomplying with monthly, quarterly and annual financial reportingrequirements o f various government agenciesas well as the WB. Untila computerized accounting system is fully functional, basic books of accounts will be maintainedmanually using spread sheets for analysis and reporting by GOB code o f accounts and project components. Manual/computerized Registers will be usedto adequately record acquisition anduse o f all project fixes assets. PhysicalInventory at the end o f each financial year will ensure updated status on usability condition and safe custody o f the assets. IDA, through an IDFGrant has been supportingthe GOB incomputerization of its Project Accounting Manual with the objective to provide universal software to all the development projects. This project's accounting system will promptly adopt such universal system whenever it is ready. The project will provide InterimUn- auditedFinancialReports (IUFRs) on a quarterly basis showingproject progress on all components on a user fnendly format. The format and contents o f the IFRshave been discussed with the DSHEandMOEduringproject appraisal, formal agreement will bereached during negotiations. 21. InternalAudit. Since the MOE or DSHE does not have the capacity and exposure to internal audit functions o fthe projects, internal audit for the project will be conducted annually byhiringa chartered accountants firmonthe basis ofaTOR to be agreedduringproject negotiations. The firmwill be selected through appropriate competitive process to be prior reviewedby IDA.The internal audit report would be submitted to the Secretary, MOEwith a copy to the DG, DSHE. 22. ExternalAudit. The audit covenants o fFSSAPII, Cr. 3414-BD have been complied with. Replies have been gwen and necessary actions taken on observations which neededclarifications from the Bank's perspective. The MOE andthe C&AG are inthe process o fresolving audit observations relatingto Government policy and procedures through an action plan coveringyear- wise number of unsettled observations and tripartite meetingschedules with FAPAD. The annual financial statement o f SEQAEP will be audited by the Foreign Aided Project Audit Directorate of C&AG and will be submittedto IDAwithin six months o f the endo f each fiscal year. A Statemento f Audit Needs (SAN) will be agreedwith the C&AG extendingthe audit focus on testingcontrols preventingcorruption and detectingtransactions with corrupt practices. As the annual project financial statementsshouldreflect the transactions andbalances associated with special accounts and statementso f expenditure ,the audit opinion on financial statements will notbe requiredto make specific reference to them. However, S A N will spell out a requirementfor the audit to include test checks on SOE and DAs. The following audit report will be monitoredinthe Audit Report Compliance system (ARCS) - see Table 3 below: ImplementingAgency Audit Type Auditor Deadline Directorate of Project's Annual Financial Foreign Aided Project Six months Secondary and Higher Statements Audit Directorate under from the end Education (DSHE) Comptroller & Auditor of each fiscal General year -71 - 23. Supervision Plan. The initial supervision will focus on compliance with all agreed actions, terms, and conditions including Project FMstaff being assigned and on board, identifying any FMor disbursement issues inproject implementation and agreeing onredressingmeasures. DSHE's readiness for access to Project funds, procurement, installationand puttinginto operation o f a computerized project accounting system for Project financial management, production o f first IFRs on time, use o f internal controls on FMfunctions and the Statement o f Audit Needs to be agreed with CAGwill be closely reviewed. Inaddition, supervision efforts will focus on sampling expenditures below prior-review thresholds, identifying types o f SOE samples intended to be included inaudits, reviewing payment processes against the defined control framework, and monitoring the progress o f institutionalpreparedness and strengthening, 24. Agreed Financial ManagementAction Plan. MOEDSHE will appoint a qualified Accountant as FinancialManagement Specialist for the project by August 20,2008. The recruitmentnotice was published innews papers on June 22. - 72 - Annex 8: ProcurementArrangements Bangladesh: SecondaryEducationQuality & Access EnhancementProject A. General 1. Total value o f the project i s US$155.7 million; IDA Credit will finance US$130.7 million, and GOBwill finance US$25.0 million. Total procurement o f US$20.1 million under the project will involve consultancy services including training o f US$11.4 million followed by goods of US5.4 million, and Works o fUS$3.3 million. 2. Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement Under IBRDLoans and IDA Credits" dated May 2004 revised October 2006; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated May 2004 revised October 2006, and the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loadcredit, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the Bank inthe Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. Within the overall context o f Bank guidelines, local procurement o f goods, works, and services (for which the shortlist entirely comprised o f national consultants) will follow the Government's Public Procurement Act 2006 (goods: =us$l,ooo,ooo ICB All contracts. NCB First contract regardless o f value in N C B and thereafter, all contracts valued US$500,000 or more =US$300,000 ICB All contracts =us$200,000 QCBS / QBS All contracts. =US$50,000 IC- Qualifications, All contracts references. Section V o f the Consultant Guidelines evelopmentdiamond' Bangladesh Asla Income 2006 Population. mid-year(millions) 144.3 1493 2,403 GNIpercapita (Atlas method, US$) Life expectancy 490 766 650 GNI(Atlas method, US$ billions) 70.7 - 1143 1562 Average annual growth, 2000-06 Population(%) 19 17 19 Laborforce (%) 2.2 2.1 2.3 Gross primary M OSt recent estimate (latest year available, 2000-06) capita enrollment Poverty(%of population belownationalpovertyline) 50 Urbanpopulation (%of fotalpopulatlon) 26 29 30 Lifeexpectancyat birth (pars) 84 64 59 1 Infant mortality (per 1000live births) 54 62 75 Childmalnutrition (%ofchildren under5) 46 Access to imDrovedwatersource Access to an improvedwatersource(Xofpopuiation) 74 84 75 Literacy(%ofpopulation age d+) 47 58 61 Gross primaryenrollment (%ofschool-agepopulation) 0 9 m 0 2 -8 angladesh Male 0 7 115 08 __Lowincomegroup Female 111 05 96 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1986 I996 2005 2006 lconomlc ratios' GDP (US8 billions) 212 40.7 60.0 819 Grosscapitalfonnation1GDP 6.7 20.0 24.5 24.7 Exports Of goods andSeNiCeSlGDP 5.4 111 6.6 8.0 Trade Gross domestic savings1GDP 9.8 P.4 8.1 8.4 Gross national savingslGDP 14.6 19.8 30.3 33.7 1 Currentaccount balancdGDP -5.1 -3.2 4.9 13 Interestpaynents1GDP Domestic Capital 0.5 0.5 0.3 savings formation TotaldebtlGDP 38.1 37.7 315 Total debt servicelexports 28.4 114 5.6 Present value of debtlGDP 22.0 Present value of debtlexports 96.5 Indebtedness 1986-96 1996-06 2005 2006 2006-10 (average annualgronlh) GDP 4.2 5.4 8.0 6.6 6.8 -6 angladesh GDP percapita 18 3.4 4.0 4.8 5.1 Lowincome gmup ~ Exports of goods andservices 117 0.0 15.6 25.8 14.2 STRUCTURE of the ECONOMY 1986 1996 2005 2006 (%of GDP) Growth of capital and GDP (Oh) Agriculture 319 25.7 20.1 8.6 15- Industry 215 24.9 27.2 27.9 Manufacturing 14.0 15.4 6.5 8.2 Services 46.5 49.5 52.6 52.5 Household final consumption expenditure 856 83.2 76.4 76.1 M ~ 03 02 03 05 m Generalgov't finalconsumption expenditure 4.3 4.4 5.5 5.5 I -0CF -GDP Imports of goods andservices P.2 8.7 23.0 25.2 1986-96 1996-06 2005 2006 (average annualgronlh) Growth of exports and Imports (YO) Agriculture 2.3 3.6 2 2 4.9 Industry 6.5 7.0 6.3 9.7 Manufacturing 6.7 6.3 62 0.8 Services 3.8 5.5 6.4 6.4 Householdfinal Consumptionexpenditure 3 2 3.5 5.1 4.6 Generalgov't finalconsumption expenditure 4.0 6.2 7.6 6.0 Gross capitalformation 6.7 8.6 0.7 8.3 Imports of goods andservices 7 5 6.0 8.1 6.2 Note 2006data are prelimmaryestimates This tablewas producedfromthe Development Economics LDB database 'The diamonds showfour keyindicators inthecountry(1n b0ld)compared mth its income-groupaverage If data are missing,thediamond wII be incomplete - 131- Bangladesh PRICES and GOVERNM ENT FINANCE 1986 1996 2005 2006 Inflation (%) Domestic prices I (%change) Consumer pnces 24 7 0 6 6 Implicit GDP deflator 80 42 5 1 5 2 4 Government finance 2 /%of GDP, includes current grants) 0 Current revenue 9 5 9 0 0 5 1)7 01 02 03 M 05 Current budget balance 4 1 22 2 1 2 2 Overailsurplusldeficit -3 1 4 5 -3 4 -3 3 -GDPdeflator -CPI TRADE I 1966 1996 2005 2006 (US$ miilions) G o r t and import levels (US$ mill.) Totalexpofls (fob) 819 3.864 8,573 0.4P 15.000 ~ Rawjute P 4 91 96 )16 I Leatherand leatherproducts 61 241 221 257 Manufactures 466 3,205 7.819 9,535 Totalimports (cif) 2,364 6.947 11870 13,301 Food 356 570 1607 1372 Fuelandenergy 342 274 1,602 2,004 Capital goods 1003 t918 1794 1456 Exportpnce index(2000=00) 46 65 I19 2 2 Import pnce index(2000=00) 46 79 134 XI Terms of trade (ZoOo=00) 96 1)6 69 67 BALANCEof PAYMENTS 1986 1996 2005 2006 (US$ millions) ,Current account balance to GDP (%) Exports of goods andservices to43 4,437 9,750 11752 2 - imports of goods andservices 2,567 7,604 13,917 15,664 Resourcebalance -1544 -3,B7 4.167 -3.9P Net income -P6 55 -641 -702 Net current transfers 586 1821 4,290 6,436 Currentaccount balance -1084 -1291 -518 624 Financingitems (net) 12P 274 679 466 Changes in net reserves -P6 to17 -161 -336 3 Memo: Reserves includinggold (US$ millions) 1676 2,095 2,296 Conversion rate (DEC,iocal/US$) 29 9 40 9 618 67 2 I EXTERNAL DEBT and RESOURCE FLOWS 1986 1956 2005 2006 /US$ miilions) Composition o f 2005 debt (US$ mill.) Total debt outstanding anddisbursed 6,062 15.341 18,935 I iBRD 61 46 0 0 G 688 IDA 2,450 5.7n 8.666 9,297 F U R I Total debt service 448 672 791 IBRD 5 6 0 0 IDA 26 92 223 242 Compositionof net resource flow Official grants 553 596 571 Official creditors 843 548 339 Pnvate creditors 55 -30 -9 Foreign direct investment (netinflows) 2 )1 602 Portfolio equrty(net inflows) 0 -117 1 C 308 World Bank program Commitments 383 168 500 0 A IBRD E Bilater& Disbursements 337 279 547 403 B IDA -- D Other rmltilateral - F Private -- Pnncipalrepayments 8 54 153 ff2 C-IMF G- Si-ort-term Net flows 330 225 394 231 Interestpayments 25 45 70 70 Net transfers 305 180 325 161 Note This tablewas producedfrom the Development Economics LDB database 9/26/07 - 132 - Annex 18: Maps BANGLADESH: SecondaryEducationQuality& Access EnhancementProject (IBRD 36185) 88° 89° 90° 91° 92° Tetulia BANGLADESH Panchagar Patgram SECONDARY EDUCATION QUALITY Atwari PANCHAGAR AND ACCESS ENHANCEMENT PROJECT Boda Baliadangi Dimla PROJECT UPAZILAS Domar Debiganj THAKURGAON Hatibanda Bhurungamari NILPHAMARI UPAZILA HEADQUARTERS 26° Jaldhake Thakurgaon Kaliganj Khansama Nilphamari DISTRICT HEADQUARTERS 26° Ranisonkail LALMONIRHAT Kishorganj Nageswari Fulbari Pirganj Aditmari Birganj DIVISION HEADQUARTERS Haripur Gangachara Lalmonirhat KURIGRAM Kaharol Saidpur Kurigram NATIONAL CAPITAL Bochagan DINAJPUR Badarganj Rangpur Kaunia Razarhat UPAZILA BOUNDARIES Chirirbandar Taraganj RANGPURPirgachha Ulipur Biral Parbatipur DISTRICT BOUNDARIES Dinajpur Mithapukur Rahumari Chilmuri Sundarganj DIVISION BOUNDARIES Fulbari Nowabganj Pirganj Razibpur INTERNATIONAL BOUNDARIES Sadullapur Birampur Gaigandha GAIGANDHA Hakimpur Ghoraghat Palasbari Fulchari Bakshiganj Panchbibi Jhinaigati JAIPURHAT Gabindaganj Dewanganj Shapahar Dhamoirhat Jaipurhat Shaghata Sribardi Haluaghat Islampur Durgapur Kalmakanda Tahirpur Bishambarpur Dwarabazar Companiganj Jaintapur 25° Patnitala Kalai Nalitabari Dhubaura Porsha SHERPUR Gowainghat NAOGAON Khetal Sibganj Sonatola Sunamganj Kanairghat Badalgachhi Jamalganj Chatak 25° Mohadebpur BOGRA Melandaha Sherpur Purbadhala Bholahat Akkelpur Nakla Dharmapasha Dupchachia Gabtali Madarganj Phulpur NETRAKONA SUNAMGANJ SHLHET R A J S H A H I MYMENSINGH Zakiganj Shariakandi Jamalpur Netrakona Barhatta Sylhet Beani Gomastapur Niamatpur JAMALPUR Mohanganj Biswanatn Golapganj Bazar Manda Mymensingh Dirai Naogaon Adamdighi Kahalu Bogra Atpara Muktagacha S Y L H E T Shibganj Nachol Guaripur CHAPAI Raninagar Dhunot Jagannathpur Fenchuganj Nandigram Sarishabari Kendua Modan NAWABGANJ D H A K A Balaganj Barlekha Tanor Sherpur Kazipur Khaliajuri Bagmara Atrai Madhupur Ishwarganj Sulla Chapai Phulbaria Golpalpur Trisal Nabiganj Rajnagar Nawabganj Mohanpur Singra Tarail Ajmiriganj Kulaura Godagari Nandail HABIGANJ RAJSHAHI Durgapur Raiganj Itna Sirajganj Moulavibazar Natore NATORE Ghatail Baniyachang Paba SIRAJGANJ Bhuapur Hossainpur Karimganj Puthia Taras TANGAIL MOULAVIBAZAR Gurudaspur Kamarrhandi Gafargaon Kishorganj Mithamoin Rajshahi Ullapara Katihati Bhaluka KISHORGANJ Kamalganj Srimangal Bagatipara Shakhipur Pakundia Astogram Habiganj Charghat Baraigram Belkuchi Katiadi Nikli Bahubal Chatmohar Delduar Lakhai Basail Sripur Bajitpur Bagha Lalpur Bhangura Shahzadpur Tangail PABNA Chauhali Faridpur GAZIPUR Kuliarchar Nasirnagar Chunarughat Ishardi Kapasia Monohardi Atgharia Bhairab Madhappur Daulatpur Bheramara Mirzapur Sarail 24° Bera Nagarpur Kaliakoir Gazipur Sibpur Belabo Pabna Santhia NARSINGDI Brahmanbaria I N D I A 24° Mirpur Kaliganj Daulatpur Saturia Palas Raipur Sujanagar Dhamrai BRAHMANBARIA Kushtia Ghior Savar Narsingdi Gangni Kumarkhali Manikganj DHAKA Nabinagar KUSHTIA Sibalay Rupganj Akhaura Khoksa MANIKGANJ Singair Bancharampur Meherpur Araihazar Pangsa DHAKA Kasba Alamdanga MEHERPUR Harirampur NARAYANGANJ Sailkupa RAJBARIRajbari Sonargaon Nawabganj Muradnagar Mujibnagar Harinakundu Faridpur Keraniganj Baliakandi NarayanganjHomna Brahmanpara Damurhuda Chuadanga JHENAIDAH Sripur Char Dohar Serajdikhan Bandar Bhadrassan Srinagar Debiduar CHUADANGA Gazaria Jhenaidah Madhukhali FARIDPUR Munshiganj Daudkandi Burichang Sadarpur Kotchandpur Magura Mohaminadpur MUNSHIGANJ Nagarkanda Lohajang Tangibari Chandina Jiban Nagar Kaliganj MAGURA Comilla Baghaichari Salikha Boalmari Bhanga Sibchar Janjira Matlab Barura Maheshpur Kachua SHARIYATPUR Muksudpur Chaugacha Alfadanga MADARIPURShariyatpur Naria CHANDPUR COMILLA Panchari Hajiganj Dighinala Bagherpara Chandpur Jessore Lohagara Chauddagram Kasiani Madaripur Bhedarganj Laksam KHAGRACHARI Narail Rajoir Shahrasti Pashuram Jhikargacha NARAIL Goshairhat Faridganj Fulgazi Khagrachari K H U L N A GOPALGANJ Kalkini Damudya Nangalkot Haimchar Sarse Ramganj 23° Gopalganj Matiranga Manirampur Abhaynagar Kalia Kotalipara Raipur Chatkhil Senbag Feni JESSORE 23° Muladi Tungipara Agailjhara Hizla LAKSMIPUR Chhagalnaiya Daganbhuiya Ramgar Mohaichar Laigadu Phultala Terakhada Gaurnadi Begumganj FENI Kalaroa Keshabpur Daulatpur Ujirpur BARISAL Laksmipur Mollahat Sonagazi Manikchari Nannerchari C H I T T A G O N G Mehendiganj Dumuria Khulna Banaripara Noakhali Rupsa Babuganj Satkhira Tala FakirhatChitaimari Nazirpur NOAKHALI Companiganj Mirsharai Laksmichari Barkal Batiaghata Sarupkati Fatikchari Bagerhat PIROJPURJhalakati Barisal Bhola Kachua Jurachari Nalchiti CHITTAGONG Kawkhali Rangamati Debhata BAGERHAT Kawkhali I N D I A JHALAKATI Daulatkhan Ramgati Sitakunda Asasuni Paikgacha Dacope Rampal Rajapur Pirojpur RANGAMATI SATKHIRA Bakerganj Rauzan Hathazari Kaptai Morelganj Bhandaria Burhanuddin Sandwip Rangunia Kaliganj Betagi Tajumuddin KHULNA Mongla Kathalia Bauphal BHOLA Mirzaganj Hatiya Boalkhali Rajasthali Belaichari Koyra Patuakhali Shyamnagar Sarankhola Chittagong Mathbaria Bamna B A R I S A LLalmohan Patia Dashmina Monpura Rowangachari BORGUNA Anwara Chandanais Galachipa Char Fasson Borguna Amtali Bandarbon Satkania BANDARBON Patharghata Ruma 22° Lohagara Banskhali 22° PATUAKHALI Kalapara Kutubdia Chakaria Lama Thanchi Alikadam NEPAL BHUTAN Moheshkhali COX'S BAZAR Nakhyangchari Ramu I N D I A Cox's Bazar Bay of Bengal Ukhia MYANMAR BANGLADESH DHAKA I N D I A 21° Teknaf 0 20 40 60 Kilometers MYANMAR This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any IBRD JUNE 0 20 40 Miles endorsement or acceptance of such boundaries. Bay of Bengal 36185 2008 90° 91° 92°