Document of The World Bank FOR OFFICIAL USE ONLY Report No. 12529-ME STArF APPRAISAL REPORT MEXICO SECOND PRIMARY EDUCATION PROJECT MARCH 11, 1994 MICROGRAPHICS Report No: 12529 ME Type: SAR Country Department II HL'man Resources Operarions Division Latin America and the Cribbean Regional Office This document has a resicted disMtibution and may be used by recipients only in the performance of their offlcial duties. Its content may no otherwise be disclosed without Wodd Bank authoroizaon CURRENCY EQUIVALENTS Currency Unit = New Peso (N$) USS1.00 = 3.12 New Pesos (Feb. 1993) FISCAL YEAR January 1 - December 31 ACADEMIC YEAR September 1 - June 30 ACRONYMS AND ABBREVIATIONS ANAM National Agreement for Basic Education Modernization (Acuerdo Nacional para la Modernizacion de la Educaci6n Bdsica) CAPFCE Federal School Construction Agency (Comite Administrador del Programa Federal de Construcci6n de Escuelas) CAS Country Assistance Strategy CONAFE National Council for Educationai Development (Consejo Nacional de Fomento Educativo) at SEP CONALITEG National Free Textbook Commission (Comisi6n Nacional del Libro de Texto Gratuito) CONAPO National Population Council (Consejo Nacional de Poblaci6n) COPLADE State Planning Council (Consejo de Planificaci6n del Estado) DGEI General Directorate for Indigenous Education (Direcci6n General de Eaucaci6n Indigena) at SEP DGEIR General Directorate for Evaluation (Direcci6n General de Evaiuaci6n, Incorporaci6n y Revalidaci6n) at SEP DGPPP General Directorate for Planning, Programming and Budgeting (Direcci6n General de Planeaci6n, Programaci6n, y Presupuesto) at SEP LGE General Education Law (Ley General de Educaci6n) MIS Management Information Systew NAFIN National Financing Agency (Nccional Financiera, S.N.C.) PAM Teacher Training Program (Programa de Actualizaci6n del Magisterio) at SEP PARE Bank's first Primary Education Project, Ln. 3407-ME, 1991 (Programa para Abatir el Rezago Educativo) PAREB Second Primary Education Project (Programa para Abatir el Rezago en Educaci6n Bdsica) PCU Project Coordinating Unit at the Federal level in CONAFE PME Education Modernization Program (Programa para la Modernizaci6n Educativa, 1989- 1994) PRODEI Bank's Initial Education Project, Ln. 3518-ME, 1992 (Proyecto para el Desarrollo de la Educaci6n Inicial) SCEP Servicios Coordinados de Educaci6n Pzdblica, former SEP delegation in the states essentially replaced by SEE SEB Undersecretariat of Basic Education (Subsecretaria de Educaci6n Bdsica) at SEP SEE State Education Entity (State Secretariat of Public Education or equivalent organization) SEP Federal Education Secretariat (Secretaria de Educaci6n P7blica) SHCP Federal Finance and Public Credit Secretariat (Secretaria de Hacienda y Credito Pablico) SNTE National Teachers Union (Sindicato Nacional de Trabajadores de la Educaci6n) SOLIDARIDAD National Solidarity Program (Programa Nacional de Solidaridad) SOPE State Secretariat of Public Works (Secretaria de Obras Pfiblicas del Estado) SPCU Project Coordinating Unit at the State level located in SEEs TAC Technical Advisory Committee TWP Teaching Career Program (Programa de la Carrera Magisterial) at SEP UPE Education Publications Unit (Unidad de Publicaci6n Educativa) at SEP FOR OFFICIAL USE ONLY MEXICO SECOND PRPMARY EDUCATION PROJECT STAFF APPRAISAL REPORr TABLE OF CONTENS LOAN AND PROJECT SUMMARY ................................ I. THE ECONOMIC AND SOCIAL CONTEXT .1 H. THE PRIMARY EDUCATION SYSTEM . ............3............... 3 A. Overview. 3 R Issues in Primaiy Education. 4 Quality ..... 4 Efficiency. 9 EquitY .12 C. Goverment Strategy for the Education Sector .13 D. Bank Role and Experience in the Education Sector .15 E. Lessons Learned from Past Operations .16 m THE PROJECT .20 A. Project Concept and Objectives .20 B. Project Areas and Target Population .20 C. Project Components .21 D. Project Description .23 Component A. Human Resoumces Development .23 Component B. Educational Material Resources .25 Subcomponent B 1. Teaching Materials and Student Educational Packages .25 Subcomponent R2. Reading Corners .. ............... 25 Subcomponent B.3. Textbooks and Educational Materials for Indigenous Education .................. : ..... 26 Subcomponent B.4. Improvement of Physical Infrastnucture .27 Component C. Institutionl Strengthening .29 Subcomponent C. 1. Management Capacity .29 Subcomponent C.2. Teacher Incentives .32 Subcomponent C.3. Improvement of the Supervision System 32 Subcomponent C.4. Books and Materials Distnbution System 33 Subcomponent C.S. Project Administration .34 This report is based on the findings of the appraisal mission that visited Mexico in November, 1993. The ndssion was composed of Mmes./Messrs. Antonio Gomes Pereira (mission leader), Eduardo Wlez. Manuel Vra, John Innes, Rosaria Iroza, Robert Etheredge "LA2HR), Silvia Elena Arevalo, Carlos Heymans and Maria Elena Anderson (consultangs). Messrs/Mme. ithn Nguyen, Rosita V Esnuda, KWin Rost (L42HR), and Rebecca Cary (consultant) contributed to the report at headquarters. Peer reviewers are Mwchelle Riboud (EC4IIR) and Luis Pisani (LA4HR). Messrs. Edilberro L. Segura and Kye Rbo Lee are the Department Director and Division Chief respectively, for this operation. Ths document has a restricted distnbution and m be used by recdpients only in the perfornwn of icir official duties. its contnts maw not othevws be disclosedwithout Word Ba authoizadion. - ii'- IV. PROJECT COST, PROCUREMENT, DISBURSEMENT, AND AUDITS . ....... 35 A. Project Costs and Finaning ............................... 35 B. Procurement ......................................... 37 C. Disbursements ....................................... 40 D. Accounts and Audits .................................... 41 V. PROJECT MANAGEMENT AND SUPERVISION ..................... 42 A. Project Implementation ............................ ..... 42 Project Preparation .............................. 42 Project Readiness and Implementation ........... ............ 42 Project Monitoring .............................. 43 Annual Implementation Reviews ........ ............. . 43 Mid-Term Review ................................. 44 B. Project Supervision ...................... 44 C. Project Launch Seminar ...... ........................ 44 VI. PROJECT BENEFITS AND RISKS .. 45 A. Project Benefits . ..................................... 45 B. Impact on Women ...................................... 45 C. Environmental Inpact ................................... 45 D. Project Risks ......................................... 46 E. Program Objective Category ......... ...................... 46 VII. AGREEMENTS REACHED AND RECOMMENDATION ................ 46 ANNEXES 1. Comparative Education Indicators 12. Strengthening of Planning and Policy 2. Primary Education Efficiency Analysis Indicators 13. Terms of Reference for Process 3. Educational Expenditures Evaluation & Information Systems 4. Government Policy Letter 14. Terms of Reference for Studies 5. Decentralization of Education Budget 15. Teacher Incentives by Project State 6. Marginality Ranking and Project 16. Project Management and Flow of Areas Funds 7. Indigenous Populations 17. Costs and Financing 8. Participating Municipalities and 18. Project Disbursements Beneficiaries by Project State 19. Monitoring Indicators 9. Financial Implications of Extension of 20. Amnnal and Mid-Term Reviews Basic Education 21. Supervision Plan 10. Teacher Training 22. Project Implementation Schedule 11. Physical Infrastructure and 23. List of Documents in Project File Distribution Network MAP - IBRD No. 25451 MEXICO SECOND PRIMARY EDUCATION PROJECT LAN AND PROJECT SUMMARY Borrower: Nacional Financiera, S.N. C (NAFIN) Gumrantor: United Mexican States Beneficiaries: The Federal Education Secretariat (SEP) through the National Council for Educational Development at SEP (CONAFE), and State Education Entities (SEEs) in ten Mexican states (Campeche, Durango, Guanajuato, Jalisco, Michoacan, Puebla, San Luis Potosi, Tabasco, Veracruz, and Yucathin). In addition, the four states (Chiapas, Oaxaca, Guerrero, and Hidalgo) assisted under the first Primary Education Project (Ln. 3407-ME, 1991) would also benefit from the management training program under the proposed project's Institutional Strengthening component. Amount: US$412.0 million equivalent. Terms: Repayment in 15 years, including 5 years of grace at the standard variable interest rate. Project The project would improve primary school students' academic Objectives: achievement levels and reduce the high repetition and dropout rates within ten of the country's poorest states, contribute to raising the human capital level, redressing some of the country's social and economic imbalances as part of the Government's social compensatory program. These objectives would be achieved through: (a) training teachers and administrators; (b) providing classroom-tested educational materials for both teachers and students, including specific materials for indigenous populations; and (c) strengthening the institutional capacity of the education system, particularly at the state level, to carry out its mandate within a decentralized system. The project would further benefit the four states being assisted under the first Primary Education Project by including their senior-level officials under the project's management training program. Project The project consists of three major components: the Human Description: Resources Development Component (17.5 percent of total project costs) would provide in-service training and assistance to upgrade the skills of primary school teachers, principals, and supervisors, emphasizing the role of principals and supervisors in providing pedagogical assistance to teachers in classroom teaching. The Educational M ial Resources Component (52.5 percent of total - iv - project costs) would: (a) provide educational materials for both teachers and students; (b) supply classroom library and reference books and promote their use; (c) design and deliver bilingual textbooks and materials for indigenous schools; and (d) rehabilitate, replace, or build urgently needed educational facilities to replace inadequate schools and meet new enrollment demand. The Institutonal Strengthening Component (30.0 percent of total project costs) would: (a) strengthen education management capacity at both central and state levels by (i) providing management training for planning and policy analysis, (ii) installing project monitoring, evaluation, and information systems, (iii) conducting education studies to prepare future investments at the preschool and secondary education levels, and (iv) supporting project promotion and diffuision activities; (b) provide incentives for teachers to work in remote, indigenous, or hardship areas; (c) improve the supervision system; and (d) strengthen the textbooks and materials distribution system. The project would be coordinated by CONAFE at the central level and implemented by SEEs, which would be responsible for the delivery, operation, and management of educational services at the state level. Project By raising children's cognitive achievement as well as their Benefits: probability of completing the primary education cycle, the project benefits would consist of a higher rate of human capital accumulation, contributing to economic development. Due to the project's targeted nature within the Government's social compensatory program, project benefits would also include a more equal distribution of economic opportunities amOng Mexican children, especially for underserved indigenous populations. The project would improve the quality of primary education through in- service training of teachers and administrators and enhance the system's efficiency through investments in institutional strengthening, thus contributing to better allocation and increased productivity of human resources in the sector and helping meet the challenges of a recently decentralized education system. Altogether, benefits would accrue to approximately 1.5 million children, 53,000 teachers, and 1,140 administators. Because half of the students would be girls, secondary benefits would include lower ferdtlity and improved health status and educational attainment of their children. Project The main project risks are associated with possible delays in Risks: project execution due to the slow improvement of institutional capacity of implementing agents at the state and, where applicable, community levels. The risk of weak institutional capacities is addressed under the project through technical assistance in key areas of management such as planning, information, and evaluation. The project would benefit from CONAPE's experience at the central level, which is curny implementing the first Primaty Education - v - Project as well as the Initial Education Project (Ln. 3518-ME, 1992) and would easily tasfer successfl operational expertise as well as familiarity with Bank processes and procedures to the proposed project. At the state level, SEEs would have had two years of operating a decentralized educational system, by the project's effectiveness. At the local level, participation of School Councils (formed under the 1993 General Education Law) would benefit from the experience of similar community organizations already operating in different sectors and other Bank-financed projects. The risks identified dunng early project preparation posed by the disparity in salaries for federal and state teachers (who would now all belong to the state system) have been practically eliminated: salanes have been leveled in all but three of the participating staves, and these three states are scheduled to complete this process in 1994. Pbverty Catgory: The project would support a program of targeted interventions. The project would support the national policy of compensation for regional disparities in education. Project interventions would be targeted not only to ten of the poorest states but also to the poorest regions and most indigenors areas therein. The proposed project and first Primary Education Project together would cover the 14 poorest states in the county (out of a total of 32 states). Major urban areas within the selected regions have been excluded. - vi - Project Cost Summary Local Foreign Total ---US$ million- Human Resources Development 99.8 2.6 102.4 Educational Material Resources Teaching Materials & Student Packages 85.6 85.6 171.2 Reading Corners 4.8 2.1 6.9 Indigenous Education 3.9 2.0 5.9 Infrastructure Improvement 93.8 24.7 118.5 188.1 114.4 302.5 Institutional Strengthening Management Capacity 11.6 5.3 16.9 Teacher Incentives 97.5 0.0 97.5 Improvement of Supervision System 16.6 3.4 20.0 Books & Materials Distribution System 7.6 2.8 10.4 Project Administration 26.6 1.0 27.6 159.9 12.5 172.4 BASE COST 447.8 129.5 577.3 Physical Contingencies 5.0 1.4 6.4 Price Contingencies 26.3 6.7 33.0 TOTAL PROJECT COST' 479.1 616.7 Financing Plan LoAl Foreign Total -TS$ million- Federal Govenunent 204.7 0.0 204.7 IBRD 274.4 137.6 412.0 Total Estimated Disbursements Tlmetable IBRI) F1scal Year 1994 199S 1996 1997 1998 1999 Annual 30.0' 52.0 88.0 112.0 80.0 50.0 Cumulative 30.0 82.0 170.0 282.0 362.0 412.0 Economic Rate of Return: Not Applicable Y Includes taxes and duties estimated at about US$44.3 million. ' Includes Special Account deposit of US$25.0 million and retroactive financing of up to US$6.0 million for eligible expenditures incurred on or after Cctober 31, 1993. - vii - BASIC DATA SHEET Mexico Year A. General Country Data GNP Per Capita (US$) 3,030 1991 Area (Thousand Square Kilometers) 1,958 1993 Population Estimate (Millions) 83.3 1991 Urban Population (% of Total) 73 1991 Population Projection, Year 2000 99.0 1992 B. Social Indicators Crude death rate 5.4 1990 Average Annual Rate of Population Growth (%) 1.9 1990 Total Ferility Pate 3.2 1991 Infant Mortality Rate (per 1,000 live births) 36.0 1991 Life Expectancy at Birth (years) 70.0 1991 Adult Illiteracy Rate (% of persons 15 and over) 11.8 1991 C Education Statisfics Primary (Net)(Grades 1-6)(%) 98.0 1991 Lower Secondary (Grades 7-9)(%) 58.0 1991 Total Primary Enrollment (millions) 14.4 1991 Federal (%) 71.i 1991 State (%) 22.5 1991 Private (%) 6.4 1991 Primary School and Efficiency Data Number of Teachers (thousands) 479.6 1991 Student/Teacher Ratio 30.0 1991 Incomplete Schools (% of all primary schools) 14.9 1991 Unitary Schools (% of all primary schools) 22.7 1991 Repetition Rate (%) 9.8 1992 Dropout Rate (%) 4.6 1991 Completion Rate (%) 58.1 1991 Education Expenditure Data Total Public Education Spending (% of GDP) 4.3 1991 Federal Education Spending (% of Total Public Education Expenditures) 82.8 1991 Federal Education Spending (% of Total Federal Exrenditures) 9.4 1991 Federal Pri- -,' Education Spending (% of Federal Education Expenditures Among Levels) 39.8 1991 Sources: Social Indicators of Development, 1991-92; INEGI Censo de 1990; World Development Report, 1993; SEP and Bank staff stimaes, 1993. viii - ElUCATION GLOSSARY Completion rate For six-ye-r primary education, the ratio between the number of students r sJing grade 6 in a given year T and the number of students entering grade 1 in year T-6, as a close approximation of the percentage of students of a given cohort to complete six- year primary school. Dropout rate Percentage of students who abandon the system without completing the education cycle, e.g., primary school. Educational attainment Number of formal school years achieved by a student. Educational achievement Magnitude achievement in any subject area, generally measured on the basis of national curriculum learning objectives. Enrollment ratio Ratio of total enrollment in a given school cycle (e.g., primary) to the population in the corresponding age group. Incomplete school Primary school with fewer than the six official primary education grades. Net enrollment rate Percentage of children of a given age group enrolled in their corresponding grade level. Promotion rate Percentage of the students enrolled in a given grade who enroll in the next higher grade the following year. Repetition rate Percentage of the students enrolled in a certain grade who are not promoted to the next grade and who therefore enroll again in the same grade the following year. Transition rate Percentage of the students completing one school cycle (e.g., primary) who enroll in the first grade of the next upper cycle (e.g., secondary) the following year. Unitary school Multigrade school with a single teacher (see Incomplete School). MEXICO SECOND PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORr I. THE ECONOMIC AND SOCIAL CONTE 1.1. Over the past seven years, Mexico has consistently implemented a highly successful economic reform program buttressed by macroeconomic stabilization policies which reduced inflation from over 105 percent in 1986 to less than 10 percent in November 1993, reversing the decline in economic growth from a negative 3.8 percent to a positive 2.6 percent over the same period, thereby restoring confidence and extnml creditworthiness in the Mexican economy. A far-reaching trade liberalization process has opened the economy to internatonal competition. The ongoing process of privatization, aiming to enhance domesuc economic efficiency, has resulted in the sale or closure of over two-thirds of state enterprises. More recently, reforms have been initiated in the agricultua sector, and even the communal farming ownership system, the ejido, is being restructured. Further liberalization of the Mexican economy through the North American Free Trade Agreement (NAFTA) with the United States and Canada will represent an unprecedented integration of large economies at very different stages of development. This rapid assimilation into the world marketplace has increased the competitive pressure on domestic industrial sectors, and Mexico appears determir- I to upgrde its labor force level as a prerequisite to take full advantage of these econo, dc opporuities for sustined growth. 1.2. The stabilization program has highlighted issues in social development Despite its macroeconomic achievements, Mexico's potential growth is stdl constained by relatively low levels of human capital accumulation and widespread poverty. The illiteracy rate for the adult population is still at 12.4 percent, higher than the rates for Argentina, Costa Rica, Chile, and Venezuela. The average number of years of schooling for persons aged 25 and over is 6.5, which is lower than those of Chile (7.5) and Colombia (7.1). The average primary education repetition rate for Mexico is 9.1 percent (Annexes 1 & 2). The bulk of unemployment is composed of young individuals with a low level of education, and about 20 percent of unemployed males have not completed primary education. An analysis of the determinants of unemployment in Mexico reveals that the probability of being unemployed decreases significantly with age and with education level. The impact of education as an explanatory variable for workers' income is twice as high as that of any other examined variable. Consequently, Mexico's capacity to compete in the international market will hinge on its ability to harness an educated and skilled labor force, increase the productivity of its workers, adopt modern production processes and technologies, and develop new skldls as a more diversified structure of labor demand unfolds The economics of education have repeatedly suggested that primary education is the cornerstone for a modernized human capital stock. -2 - 1.3. The continuing inadequacies in human resources are caused in part by poverty, and in turn they contribute to the perpetuation of poverty.Y' A 1991 Bank study summarizes the incidence of poverty in Mexico as follows: (a) 19.5 percent of the population live't in extreme poverty (i.e., with a per capita income below US$360 per annum in 1984 prices); (b) 76.6 percent of the extreme poor are located in rural areas; (c) 37 percent of the rural population in Mexico are classified as extremely poor; and (d) the extreme poor have large families, the highest dependency ratios, and the lowest educational levels.2' Real per capita incomes in the richer (mainly northern) states are more than twice those in the poorer (mainly southern) states. Given that labor is the principal asset of the poor, improvement in the provision and quality of education represents a key mechanism for reducing inequality and lowering the number of individuals living in absoiute poverty. The retums to schooling, however measured, have demonstrated that more and better schooling is an important policy tool for poverty alleviation, through increased productivity and income, and for non- economic success. Basic education, by conveying the skills of reasoning, communication, and numeracy, enables workers to interact more efficiently, follow instructions better, and complete increasingly complex tasks, which are crucial for job performance, workplace and community participation, and overall social advancement. 1.4. The severe curtailment of public investment in the 1980s and the recent liberalization process have created a need for investment in human resources to support continued economic growth. The Government has a clear perception of social needs and is assigning high priority to the development of human resources through investments in education, particularly at the primary level. Full success of the adjustment program requires policies L.at are effective in promoting a more equal distribution of gains and opportunities of macroeconomic reforms. Through improved basic schooling, a more capable labor force will be developed, which will contribute to offset regional imbalances and make more Mexicans active beneficiaries of development. In pursuit of this strategy, the Govermnent of Mexico asked for, and the Bank supported, a Primary Education Project (PRogmma para Abatir el Rezago Educativo, PARE, Ln. 3407-MIE, 1991) with a total investnent of US$352 million in four of the poorest states. In 1992, the Government sought and the Bank approved an Initial Education Project (PRODEI, Ln. 3518-ME, 1992) for the ten poorest states, including the four in PARE, with an investment of US$115 million. In 1993, the Government asked for a second major follow-up investment in primary education for the rnext ten poorest and educationally least developed states.3' The Bank started project preparation in February and appraised it in October/November. This report analyzes and supports the proposed Second Primary Education Project, Programa para Abatir el Rezago en Educaci6n Basica, PAREB. Behrman, J. The Action of Human Resources and Poverty on One Another. Washington, D.C.: The World Bank, 1990. 21 World Bank, Mexico in TIansition: Towards a New Role for the Public Setor, Washington, D.C.: The World Bank, 1991. 31 The first Primary Education Project, PARE, covered the states of Chiapas, Oaxaca, Guerrero, and Hidalgo. According to the composite index of marginality used for targeting purposes (Annex 6), Hidago is actually the I0th most disadvanaged state but was selected under PARE (1991) to maximize previous social sector imNestments in the same four states. The report will refer to the ten proposed proect states as the "next poorest" as a matter of convention. -3 - H. THE PRIMARY EDUCATION SYSTEM A. Overview of Sectoral Organization and Achievements 2.1. Since 1950, Mexico has made great strides in increasing both the access to and the quality of public education: adult illiteracy has decreased from 40 percent to 12 percent; the number of schools has tripled, the number of teachers has quintupled, and school enrollments have increased sevenfold as the total population increased only threefold. By 1980, 25 percent of children aged 4-5 attended preschool, 91 percent of children aged 6-14 attended primary school, and the enrollment rate in lower secondary school reached 48 percent. By 1992, 68 percent of children aged 4-5 had access to preschool education and net enrollment rates at the primary and lower secondary levels reached 98 percent and 58 percent, respectively. In 1992, total primary school enrollment (grades 1-6) was 14.8 million children, attended to by a network of 88,918 primary schools and about 510,800 teachers (about half the 1.1 million teachers), or an average of 29 students per teacher (Table 1), a substantial improvement over the 45 students per teacher ratio in 1970. In July 1993, the length of the school year was increas,d from 187 to 200 days, to be enforced by all states as part of the General Education Law (LGE) (paras. 2.18 & 2.32-2.38). Ahble 1. Mexican School System - 1992/1993 Students Teachers No. (000s} | % (OOOs) Institutions IInitial _ r 117.9 0.5 3.3 _1,495 Preschool 1,858.9 11.2 114.3 51,554 Basic 19,031.3 74.7 748.5 108,950 Primary 14,828.2 58.2 510.8 88,918 Secondary 4,203.1 | _16.5 __237.7 20_032 Upper Secondary 2,177.2 8.5 151.0 6,833 Higher Education 1,306.7 5.1 138.8 2,239 btal 25,492.0 100.0 1,155.9 171,071 2.2. The formal education system in Mexico includes two-year preschool, nine years of mandatory basic education (recently established by integrating the six-year primary education and three-year lower secondary education cycles, para. 2.36), three or four additional years of secondary education, and undergraduate and graduate university programs. A well- designed and mainly non-formal initial education (ages 0 through 3) program precedes preschool. Of a total enrollment of 25.5 million students at all education levels in 1992/93, 57 percent were enrolled at the primary level (gades 1-6). Post-basic education starts at the upper secondary level, leading to either the liberal arts baccalaureate (80 percent of level enrollment) or the vocational track. Higher education lasts from three to six years, depending on the career pursued, and the universities have a semi-autonomous relationship with the Federal Education Secretariat (SEP). The public sector provides educational services for 90 percent of total enrollment. -4 - 2.3. In May 1992, the Government tansferred the management and operation of all initial (ages 0-3), preschool (ages 4-5), primary (grades 1-6), special, and lower secondary education (grades 7-9) and of teacher training institutions to the states (para. 2.34). All the facilities along with technical and administrative staff were transferred to the states with a corresponding budget of N$20.3 billion (US$6.6 billion) for 1993. Currently, SEP maintains direct responsibility only for the education system in the Federal District and for upper secondary education nationwide. SEP's leadership role w}'l focus on: (a) preparation and enforcement of educational policy norms; (b) curriculum development and textbook production; (c) design and financing of compensatory and special programs for an equitable distribution of education services; (d) support of educational research; and (e) operation of the evaluation systems. The total SEP budget for 1993 was N$41.7 billion (US$13.4 billion) and, for 1994, is N$44.8 million (US$14.3 million). 24. Primary education is provided in three modalities (enrollment shares in parentheses): general primary education (92.9 percent); bilingual or indigenous education addressing the needs of 46 ethnic groups in 23 states (6.3 percent);-l and the CONAFE (National Council for Educational Development, Consejo Nacional de Fomento Educativol model, designed to overcome the problem of building and staffing schools in the most remot rural areas (0.8 percent).§' Only the first two modalities would be supported by the proposed project. B ssues in Primary Education 2.5. Despite recent educational achievements, key problems remain to be addressed under three sets of issues: quality, efficiency, and equity. Quality 2.6. Low ducational Achievement. Although no nationwide achievement tests are systematically conducted in Mexico, data from periodic testing suggest that effective learning in school requires substantial improvement. A 1988 SEP evaluation on Spanish, mathematics, and the natural and social sciences indicated that students' average scores in grades 4-6 were dismal, only slightly above 20 out of a possible score of 100.7' A 1992 study found that Mexican students mastered only 53 percent and 30 percent of the national core curriculum in Spanish and mathematics, respectively Al These low educational achievements were associated with inappropriate curriculum, poor teaching quality, high V During the past 12 years, enrollment in the bilingual modality has increased at an annal rate of 5.6 percent, indicative of stronger demand and faster population growt rate in indigenous comnunities. SEP's General Directorate for Indigenous Education (DGEI) is responsible for the sector. 5 CONAFE is a semi-autonomous institution of SEP and is curently coordinat PARE and PRODEI. §' This community-oriented program relies on young teachers recruited among basic education graduates, who receive teacher training, texbooks, and mateials designed by CONAFE. The 18,798 CONAFE schools were built and are maintained by the community For one year of service, teachs receive accommodations provided by the community, a monthly stipend, and a three-year scholarship to purse upper secondary studies. In 1991/92, total enrollment in this program was 380,000. Y' World Bank. Mexico: Primarv Education ProieM, Report No. 9770-ME, Washington, D.C.: 1991. et Palafox, J.C., Prawda, J. and V6eez, E., PriM, School Ouality in Mexico - A View from LAkT* No. 33, The World Bank: 1992. teacher absenteeism, inadequate supervisory capacity, insuficient didactic materials, dilapidated physical facilities, deficient management practices, and several nonschool factors such as parents' lack of involvement in school issues. 2.7. Inappropriate Curriculum. The primary school curriculum had not been revised for 20 years until 1992, when the National Agreement for Basic Education Modernization (ANAM) introduced a new integrated curriculum stressing basic skills (para. 2.35). Implementation of the new primary education curriculum stared in "992/93 with the lowest grades; the proposed project will support it with teacher training (paras. 3.8-3.13) and updated educational materials (pamns. 3.14-3.19). A curriculum plan for grades 7-9, published in September 1993, will be implemented in a gradual process through 1995. The proposed project would support four studies to assess the quality and appropriateness of the basic education curricula (para. 3.25(c)). 2.8. Pbor Teaching Quaity. Only 30 percent of Mexican teachers, and less than ten percent of the indigenous education teachers, possess the required college-level teaching qualification or licenciaturm. Thus, many teachers lack the theoretical background and methodological skills needed to foster good interaction with the stdents, teach children effectively in the crucial lower grades, make the best use of textbooks and other instructional materials, and identify and orient chldren with learning disabilities. These deficiencies are exacerbated by: (a) the low quality and old-fashioned curricula of the teacher truning schools (Escuelas Normales); (b) the insufficient length and frequency of in-service training progams, which currently cover too many topics with little relevance to classroom teaching; and (c) the lack of financial resources to assist rural teachers to attend tramng progams offered in urban areas. Rural teachers are those most in need of training because of their relative inexperience, lack of supervision, and the added difficulty of handling multigrade teaching of children from deprived communities. The case of unitary (22.7 percent of all primay schools) and incomplete schools (14.9 percent) deserves special attention because effective management of multigrade classrooms (almost the rule in rural schools) is one of the key ways to improve teaching quality, requiring coordinated action between training, provision of educational materials, and supervision. Disadvantaged socioeconomic conditions add to the learning difficulties of children in rural communities, whose families have little or no educational background. Teachers must leam how to deal with these situations on the job. The project would provide better-designed and more comprehensive in-service teacher training offered in convenient locations (paras. 3.8-3.13), which would be followed up by a continuum of technical supervision with improved pedagogical inflection (para. 3.29). 2.9. TIeacher Absenteeism and Misallocation. Teacher absenteeism in nrual areas stems from: (a) difficult working and living conditions; (b) the long disunces teachers have to commute from their residences; (c) the amount of time teachers must spend (an average of four working days a month) just to cash their bimonthly checks; and (d) the paucity of incentives (e.g., training opporunities. hardship pay, or faster promotion) to accept rural assignments. As a result, teacher absenteeism is high, and many students lose a lot of class days each year (an average of 56 days or 28 percent of the school year in the worst cases). In addition, a high turnover rate among rural teachers (approximately 17 percent each yea.) leads to the assignment of inexpenenced entry-level teachers to the most crucial inital grades and difficult locations. Difficulties are further compounded by hiring and teacher assignment practices which are influenced by the National Tbachers Union (SNTE), which supports -6- teacher tansfers to urban areas. resulting in overstaffing of many urban schools and understaffing in rural schools. Low teacher salaries have been a demotivational factor, having deteriorated in real terms by more than 33 percent from 1983 to 1990. Since 1990, however, a concerted effort has been made to redress this situation and teacher salaries have risen by 18 percent in real terms. Teacher salary levels have doubled from the equivalent of 0.9 times the 1985 per capita GDP to 1.8 times the 1993 per capita GDP, and have risen 36 percent more rapidly than the minimum wage over the same period. Providing incentives for teaching in remote nural areas under PARE has yielded good preliminary results of teacher attendance as measured by the number of effective school days. Similar teacher incentives would be provided for the ten project states, relying on community support for monitoring the presence of teachers in classrooms (paras. 3.26-3.28). 2.10. Inadequate Supervision. Teacher supervision is intequent and highly inadequate in the poorest states. This results in: (a) little or no feedback on teacher performance; (b) no systematic follow-up on school improvement in student achievements; (c) weak control over teacher attendance; and (d) insufficient supervisors' input to timely textbook and materials distribution. The problem is especially acute in rural schools, which typically lack a principal, have the least experienced teachers, and are most in need of supervision. Inadequate supervision is a multifaiceted administrative problem, strongly influenced by the SNTE, and involving supervisors' training and difficult work conditions such as lack of transportation and adequate offices. The number of schools allocated to each supervisor (between 10 and 24) and their location in remote areas make frequent visits almost impossible. Shortages of transport and budgetry allocations for per diem costs further exacerbate the problem, as supervisors must use public transportation and pay their own expenses. As a consequence, isolated mrual schools are for the most part left unattended. There are no supervision offices, and supervisors must borrow working space in schools or other public buildings or work out of their own homes. The project would improve the supervision system thmugh specific traing, the creation of a broader supervision framework, the financing of traewl incentives, and the provision of vehicles and supervision offices (pam. 3.29). 2. 11. Shortages of Library Books and Other lUaching Materials. Support materials such as library books, maps, models, posters, school supplies, audiovisual aids and basic equipment for the natural sciences demonstrably increase educational achievement and attainment. The lack of school library books is problematic, since few mrral Mexican schoolchildren have access - at school or at home - to any reading material besides their schoolbooks. The lack of early reading stimulation can retard children's progress in developing reading and writing skills. The absence of additional educational materials is particularly serious among indigenous children who often do not speak Spanish, have less qualified teachers, and exhibit the worst education indicators. A recent preliminary assessment of the impact of PARE indicates that the Reading Corners program2' has not been sufficiently incorporated into classroom strategies, mainly because most teachers do not 2' The Reading Corns Program (P,gnma de Rincones de Lectura) has been oped since 1986 by SEP's Educauional Publications Unit (UPE) to provide studems and teachers with both an easy-access hlbra and the motivational tools to promote its regular use. The program sarted on a small scale but its concept is national in scope; the program is being expanded with support provided by Bank projects. -7 - know how to use them. ' The project would provide: (a) sets of educational materials for classroom and school use, includirg instructions for appropriate use of classroom materials, textbooks, and Reading Corners (paras. 3.15-3.17); (b) reference books for teachers (para. 3.17); and (c) textbooks and reading materials for indigenous schools (paras. 3.18-3.19). 2.12. Deficiencies in Textbook Production and Distribution. For over 30 years, Mexican children have benefitted from a national federally-funded textbook production system. Since 1959, the National Free Textbook Commission (CONAUTEG) has asserted the right of each student to own a full and free set of textbooks for all subjects of prnmary education. Production of textbooks (not under the project) has been impressive, with over 90 million low-cost, well-designed and -illustrated educational books being produced in 1992/93 alone. Textbook distribution, however, is a major problem, particularly in rural regions, since many poorer states lack the resources and administrative capability for timely delivery of textbooks. Since textbooks and teacher guides are all too often the only didactic materials students and teachers can rely on, deficient distribution diminishes the quality of education. To help correct these deficiencies, the project would strengthen the distribution system by providirg for the construction of regional warehouses in strategic locations and the devising of state-specific distribution plans and mechanisms (para. 3.30). 2.13. Dilapidated Physical Facilities. In 1992, a total of about 81,000 classrooms needed rehabilitation. In addition, there is a current shortage of classrooms, estimated at nearly 23,460 at the primary education level based on enrollments and projected demand, which represents a total investment cost of over US$660 million. While multi-shift schools could mitigate this type of shortage to a certain extent, such programs have proved difficult to implement in rural areas due to infrastructure limitations. In addition, many schools lack toilets, many classrooms lack sufficient desks, chairs, and other furniture and equipment, and schools often have no funds for basic physical maintenance. 2.14. For decades now, school construction has been under the responsibility of the Federal School Construction Agency (CAPFCE), a SEP body with strong technical capacity and extensive bidding experience. CAPFCE also manages and supervises most federally funded school construction. Under PARE, difficulty of access to mrual communities resulted in high unit costs of construction. The experience with the "Municipal Funds" approach sponsored by the National Solidarity Program (SOLIDARIDAD) under the Decentralization and Regional Development Project (Ln. 3310-ME, 1991) has led to reduced costs and increased local participation with only a small loss in quality. Under the proposed project, the diversity of geographic location would make it necessary to take advantage of both CAPFCE and participatory approaches to school construction (paras. 3.20-3.23). 2.15. Need for Greater Community hrtlcipation. Community participation in school- related activities enhances the community's responsibility for bettering academic performance and fostering a positive learning environment. Historically, a centralized bureaucracy has coexisted in Mexico with a strong tradition of community organization. However, two key issues remain: (a) the lack of structures for community participation in many areas; and (b) the failure to make full use of them in others. One of the geat successes of 101 Epeleta, J. et al. Phgrama wa Abaur el Reago_ Fucatiio. Evaldad6n Cuolitatva del Imn"ao. Mexico D.F.: Cent de Investigacid6n y de Esmwos Avanzados del Instito Polit*nico Nacional, 1993. -8 - SOLIDARIDAD has been to meld these two tendencies into a process of actual decentralization and effective community participation. Community participation, via community committees, Municipal Education Councils, parents associations, or School Councils (Consejos Escolares de Participaci6n SociaOU is an effective vehicle for social commitment and a catalyst for practical and regular involvement with the school. The creation of School Councils in each school with the joint participation of parents, teachers, and local leaders is expected to foster closer cooperation between local communities and their schools. The different types of entities participating in the project (authorities at the national, state and local levels, professionals in national and state institutions, teachers, and the communitty at large) need to be adequately and timely informed about project activities to develop interest and start participation in the project. The proposed project would enhance participation through: (a) enlisting Schools Councils to support and monitor teacher attendance; (b) involving communities in school construction (para. 3.20); (c) transferring resources for school maintenance to municipalities; (para. 3.22); and (d) implementing an intensive project promotion effort among authorities and communities (para. 3.25(d)). 2.16. Lack of Evaluation. Limited resources and technical capacity contribute to difficulty in monitoring and evaluating academic achievements and teaching standards across the system. SEP's General Directorate for Evaluation (DGEIR) is the only public institution undertalking evaluation research on qualitative and quantitative aspects of the education sector. However, such evaluation research is typically limited in its sample coverage, periodicity, scope, depth of analysis, and accessibility. At the state level, practically no capacity for evaluation exists. This reduces the eli-iency and jeopardizes the sustainability of educational investment programs. The result is a system in which the selection of the most productive investments and most effective r'fonrms are clouded by scarce understanding of the impact brought about by previous programs and policies. The project would foster the capacity for sustainable measurement of the quality of education both at the central and state levels, including a project process evaluation (para. 3.25('b) 2.17. Inadequate Managerial Capacity. State governments have assumed full responsibility for managing their basic education systems, which until 1992 were under the federal goverunent. Existing managerial abilities in the states, although generally satisfactory, vary from one state to another, and weaknesses are still expected durng the early years of decentralization. However, the state administrative structures are not entirely new, since for decades the federal government developed field offices at the state level (Serucios Coordinados de Educaci6n P(dlica, SCEPs), which gathered considerable experience in operating the state education systems. 2.18. The 1992 ANAMi formally transferred the administrative apparatus, the schools, their assets and staff to state administrations; redefined SEP's normative functions; and required a new SEP structure to comply with those functions. The 1993 LGE confirmed the distribution of responsibilities between the federal and state govenmnents. SEP's internal regulations and procedures (Reglamentos Internos) are still being revised to conform with the LGE, but the operation of the system in general and, in particular, the delivery of educational services in the states have not been hampered by their absence. LI School Counwils and Municipal Eduaion Councils were established by the 1993 WE. -9 - 2.19. Effective integration of the transferred primary education systems into the existing state systems presented practical difficulties at first. Differences in teacher salaries and benefits between the state and federal systems, separately negotiated with differtnt labor union chapters, made it very hard to unify the systems in most states. Nevertieless, the gradual equalization of state and previously-federal teacher salaries, started in December 1992, is nearly completed. Only three states have not finished the process, but are due to do so in 1994. Altogether, 427,000 teachers and education workers will have benefitted from approximately $160 million of salary supplements from federal and state funds. 2.20. Before May 1992, the SCEPs had been in charge of translating central policies into concrete actions in the field. Since that time, the SEEs (State Secretariats of Public Education or equivalent organizations) have been created to take over the educational systems transferred by the federal government and integrate them with the previously existing state systems. In most cases, the structure and staffing of the former federal SCEPs in the states formed the basis of the SEEs. These SEEs will need to devote more time to policy analysis and strategic planning. Federal authorities are providing technical assistance to the states to help them build up their institutional capacities through the SEP's General Coordination for Education Decentralization. SEP intends to provide this service on a permanent basis at the request of state governments and is establishing a resident representative office in each of the states. SEP, however, does not have sufficient qualified human resources to provide all the required adequate technical assistance, particularly in key areas such as policy analysis, educational planning, information management, distribution systems, and evaluation. The project would finance an integrated management training program in educational planning and policy analysis (para. 3.25(a)) and the strengthening of project monitoring, evaluation, and information systems at both federal and state levels (para. 3.25(b)). Efficiency4V 2.21. High Repetition Rates. Mexico is beset by problems of high repetition rates - a typical Latin Amencan proxy for school failure - leading to a costly and inefficient education system. In 1993, official estimates for primary education repetition rates in Mexico were 9.1 percent. Independent estimates, using a different methodology, place nationwide repetition rates at 16.5 percent for the first grade and at 50 percent in the poorer states.!3) Recent estimates suggest that these inefficiency costs amount to nearly 12 percent of total expenditures in primary education.Al The problem is further aggravated by wide repetition rate disparities between and within states. SEP data for 1993 reveal that repetition rates vary from 4.6 percent in the Federal District to 14.9 percent in Oaxaca (Annex 2), and 14 states have rates of 10 percent or more. Other sources suggest that repetition rates higher than 30 percent can be observed for the first two grades in many rumral schools. A 12 Within this section, there wil be mention of several alternative measurements of school efficiency levels, which likely provide a more objective view against an international and comparative backdrop. Nevertheless, official Mexican statistics are being used for the project, particularly for monitoring and other indicators purposes. 13/ Schiefelbein, E., Output of the SMMG Model with Data from the GDPPB. Santiago, Chile: UNESCO-OREALC, Siri System, June 1991. W' Carlson, S.: Transforming the Vicious Circle: The Costs and Savings of School lnefficiency in Mexico, A View from LATHR," No. 8: The World Bank, 1991. - 10- preparatory case study on two rural schools of Oaxaca revealed that the percentage of students who repeated at least one year over a seven-year period were 48 percent and 63 percent, respectively.1Lv 2.22. High Dropout Rates. Low internal efficiency in Mexico is also characterized by high rates of primary school dropout. Every year, about 0.7 million children (or 4.6 percent of enrollments) drop out from schools, half of them before completing the third grade, i.e., before achieving functional literacy. Again, there are wide disparities among the states, from 0.6 percent in Baja California to 13.9 percent in Chiapas; 11 states exhibit rates of 5 percent or higher (Annex 2). The Government is addressing this issue by: (a) improving the quality of teaching through upgrading of teacher skills, strengthening the supervision process, and increasing the supply of didactic materials; and (b) granting scholarships (Becas de SOLIDANDAD) in the poorest areas to a limited number of students (up to 8 per class, or 24 per school) based upon continued attendance. Since the latter approach has a high cost per beneficiary (about US$600 per student), the proposed project would support only the first element of this strategy (paras. 3.8-3.13), which has more widespread benefits. 2.23. Low Completion Rates. The net effect of these high repetition and dropout rates is a low rate of students completing the full six years of primary education. In 1991/92, only 58 percent of the students entering the first grade were likely to complete the sixth grade. Wide disparities in completion rates exist between states, ranging from 31 percent in Chiapas to 82.4 percent in the Federal District. This implies that access to the upper level of basic education (grades 7-9) also varies greatly between states. Children from the poorer southern states are only half as likely as those from the northern states to gain access to grades 7-9. Many of the factors responsible for low quality, such as teacher training and absenteeism, insufficient didactic materials, and incomplete schools (paras. 2.6-2.20) are responsible for these low efficiency rates. 2.24. High rates of grade repetition, as well as substantial numbers of students dropping out of school, reflect the low efficiency rates. Approximately 50 percent of the reasons can be attributed to socioeconomic factors that affect the lives of children in the project area, such as poor nutrition, the need for children to participate at an early age as members of the labor force, or migradon of the family in search of seasonal work for the heads of household. Other factors can be traced to educational conditions such as poor training of teachers, lack of adequate educational materials, teachers not speaking students' native languages, materials not available in native languages, and deficient technical supervision.L6' The lowest quality and efficiency indicators are observed in states with higher proportions of rural and indigenous populations. The completion rate of indigenous children for primary schooling is only 27 percent compared with 58 percent for all children, and their repetition rate is 42 percent compared with 9 percent for all children. Research has shown that improving the quality of instructional inputs can increase student learning and motivate parents to keep their children in school longer, thereby increasing the efficiency of the system. The project would finance investments in improving the efficiency of education through teacher training (paras. ' Myers, R., School Repetition and Dropout - Case Studies of Two Rual Schools in the State of Oaxaca. Mexico. Report prepared for The World Bank, 1993. 16' Ibid. - 11 - 3.8-3.13), updated educational materials (paras. 3.15-3.19), and improved supervision strategies (paras. 3.8-3.13 & 3.29). 2.25. 2 inancial Constraints and Patterns of Federal Education Spending. Both efficiency and quality in the education system are heavily affected by limitations in the availability of financial resources and by the way the federal government allocates resources to the states. Federal education spending declined sharply in the 1980s, but has recovered rapidly since 1991, evidence of the heightened importance the Government is placing on education as a core element of future economic growth. The federal education budget grew rapidly during the 1970s from 1.6 percent of GDP in 1970 to 3.1 percent in 1980, a period when real GDP growth averaged about 7 percent per annum. Since 1982, federal spending on education dropped from 3.7 percent of GDP (14 percent of the total federal budget) to 2.6 percent of GDP (12.1 percent of total federal budget) in 1986 as a result of the economic crisis, affecting all sectors. Real federal spending in the 1990s has regained pre-crisis levels, reaching an estimated 4.1 percent of GDP in 1993 (Annex 3). Compared with many other Latin American countries, Mexico has maintained low levels of education spending in relation to GDP, particularly in per pupil spending on primary education. Mexico's education expenditures as a percentage of GDP per capita averaged 4.1 percent in the 1980s, whereas those of Chile, Costa Rica, and Venezuela averaged 4.5 percent, 5.1 percent, and 5.5 percent, respectively. Although the situation is improving, financial constraints still hamper the education sector, particularly in the provision of sufficient teaching materials and adequate salaries for teachers. Given the high level of Government commitment to education, it is anticipated that there will further, albeit small, increases in the percentage of GDP and of the federal budget allocated to education over the next few years, plateauing to a level of about 4.5 percent and 13.0 percent, respectively. Such expenditure increases, along with the positive policies adopted by the Government to improve quality (para. 2.35), are anticipated to make a major positive impact on school achievement. 2.26. Unbalanced Educational Expenditures. The repercussions of the deep budget cuts in the education sector in the mid-1980s will remain for the medium-term. These budget declines were accompanied by an increase in total enrollments, teaching staff, and number of schools, resulting in drastic reductions in real per pupil expenditures. Between 1982 and 1990, federal spending for primary education decreased in real terms at an average annual rate of 1.2 percent, while enrollments increased at an average annual rate of about 5 percent. In censtant 1980 pesos, spending per pupil decreased by 47.4 percent in that period, resulting in a scarcity of teaching materials and a reduction in the reMal value of teachers' salaries of nearly 40 percent. The detenoration of the education budget is also reflected in the inbalance between investment and recurrent expenditures. Almost 95 percent of federal spending now goes to recurrent costs (personnel and operating costs), up from 81 percent in 1980. Only about 5 percent of the budget is invested in buildings, teacher training, education materials, and classroom aids (Annex 3). 2.27. Inadequate Intra-Sectoral Allocation. There has been a long-term and increasing bias in favor of higher educaton expendiures. In fact, the index of public subsidizationLy 12' The index of public subsidization meaures the percentage by which the private rate of rturn exceeds the social rate of return. h G. Psacharopoulos and Y. Ng, Earnings and Education in Latin America. Assessing Priorities for School Imestent. World Bank Policy Research Worldng Paper 1056, 1992. - 12 - shows that higher education is the most heavily subsidized level of schooling (41 percent) and primary education the least subsidized (12 percent). Government policies addressing educational financing and allocation of spending are outlined in its Policy Letter (Annex 4). Equity 2.28. Allocation of Federal Government Expenditure. Public educational resources have traditionally been allocated by the federal government, accounting for over three-quarters of the actual educational expenditures, with private financing and contributions from states' own resources providing the balance. The percentage of expenditures from the federal government dropped from 86.3 percent in 1985 to 78.2 percent in 1991, whereas the state expenditures increased from 8.7 percent in 1985 to 16 percent in 1991 (Annex 3). Because of the national salary policy, which divides the country intO three zones to reflect cost-of- living differences, unit costs have been higher in the richer states: in 1992, they were N$1,154 per student in the non-project states compared with N$948 in the project states. This explains why the ten proposed project states, which account for 41.0 percent of national primary education enrollment in federally-funded schools, received only 38.2 percent of the federal allocation for primary education in 1993. Since these poorer states are less able to supplement federal allocations from their own resources (Annex 5), the Government has introduced compensatory education programs as a key element in reducing inequity in the education system by channeling more resources to the poorest states. The project states were chosen based on selected educational and poverty indicators, which make up a marginality index (Annex 6), and include San Luis Potosi, Veracruz, Michoacan, Puebla, Jalisco, Guanajuato, YucatAn, Durango, lTbasco, and Campeche (para. 3.3); the states of Chiapas, Oaxaca, Guerrero, and Hidalgo (covered under PARE) would also benefit directly from management training programs for SEEs (para. 3.25(a)) and indirectly from other institutional strengthening programs at CONAFE (paras. 3.25(b)-(d)). Primary education statistics for the project states are included as Annex 2. To ensure that federal allocations are maintained at a level in line with the compensatory scheme, monitoring of both federal and state allocations to primary education would be tracked on a regular basis and reviewed on an annul basis (paras. 6.1 & 7.2(v)). 2.29. Difficult School Access. Poverty not only causes low educational efficiency, but also limits access to school for children in rural and indigenous areas. In primary education, the net enrollment rate has remained at 98 percent for the past five years, but this nationwide figure disguises regional pockets of low matriculation. In the state of Campeche, for example, 30 percent of the schools are incomplete, i.e., they cover only the first three or four grades of instruction. Moreover, on a national basis, 0.4 million children still have no access to primary education at all, and a further 0.7 million children drop out of school each year. The population still without access to primary education is characterized by extreme poverty, geographic isolation, and early entry into low-paying positions in the labor market. The proposed project would increase access to prinary education for poor children living in the most deprived and remote municipalities within the ten states, particularly those children in indigenous schools (e.g., 91 percent of indigenous schools in the state of Veracruz would be covered), and schools temporarily without teachers (paras. 3.3-3.6). 2.30. Lack of Initial and Preschool Education. Both initial and preschool education increase the reurn on pnmary and secondary school investments and raise participant - 13 - productivity and income levels. In 1991, the total number of children benefitting from initial education in Mexico represented 2.8 percent of this age group. Overall, preschool services were offered to 2.8 million children in 1991-92, only 10 percent of whom lived in rural or indigenous areas. To respond to these needs, in 1992 the Bank supported PRODEI to help Mexico develop non-formal education for 1.2 million poor children by training 910,000 parents (mostly mothers) in the ten poorest states in the care and education of their young (aged 0-3) children. The Bank is supporting preschool education in the proposed project through a pre-investment study in preschool education (para. 3.25(c) & Annex 14, Part A). The study would be completed within the first two years of project implementation and would be reviewed jointly with the Bank. 2.31. Shortage of lextbooks for Indigenous Schools. Even though Mexico has the greatest mnuber of indigenous population in Latin American (between 7 and 12 million, according to estimates), quality education for these groups has received only superficial attention. The bilingual approach applied in indigenous schools has not been adequately supported by national programs. Because of their language and cultural characteristics, indigenous children have found themselves in a disadvantageous learning situation whenever they have been exposed to books and other reading materials designed to be used by Spanish- speaking children. Annex 7 provides statistics on Mexico's indigenous population and on educational services currently being provided to them. The proposed project would finance the production of textbooks and reading materials for the indigenous primary schools of 17 ethnic groups scattered throughout the ten project states (paras. 3.18-3.19). C. Government Strategy for the Education Sector 2.32. To address these issues, the Government has implemented over the last five years a comprehensive reform of the education sector. A national plan was launched in 1989 to ransform the education system; in 1992, the system was decentralized to the states; and in 1993, a national teaching career program was instituted, mandatory nine-year basic education established, and the LGE passed. These measures have been buttressed by a budget recovery for the sector (para. 2.25). The Government's sectoral policies are outlined in a Policy Letter, which is in Annex 4. At negotiations. the Govenment presented a final Policy Letter for the education sector (para. 7.1(a)). 2.33. An overall policy statement on education was made in 1989 by the incoming administration to embody the commitment to build up Mexico's human capital. This document, the Education Modernization Program 1989-94 (PME), was later incorporated into the National Development Plan 1989-1994 and identified and set the basic framework for taclding pressing issues of national education: decentralization, need for quality and modernization, linkages between schooling and production, community participation, scientific and technological advances, and need to increase the education budget. The PME had four overriding objectives: (a) to decentralize the system; (b) to improve the quality of education; (c) to raise the level of schooling throughout the population; and (d) to strengthen community participation. Additionally, the need to increase resources for education and the commitment of federal and state governments to commit resources thereto, within available resources, nav been clearly expressed dhrough both the PME and the LGE. - 14- 2.34. Decentralization. Basic education was decentralized to the states in May 1992 through the ANAM, which transferred from the federal government to the states the management of initial, preschool, primary, lower secondary, and special education and teacher training. To carry out their new.mandate, the states received all related facilities and equipment and technical and administrative elements of the educational system as well as corresponding budgetary allocations. An integrated model %-as implemented to address not only the structural framework of the system, but also issues of curricular contents (para. 2.7), re.-aluation of the teaching function (paras. 2.8-2.9), community participation (para. 2.15), and the nonnative (para. 2.3) and compensatory (paras. 2.3 & 2.28) roles of the central Government. 2.35. Quality of Education. The Goverunent's strategy to improve the quality of education incluaes three elements: (a) upgrading of teachers; (b) updating of curricula; and (c) provision of instructional materials. To support excellence in classroom teaching, foster teacher interest in professional improvement, and offer better salaries based on refined performance evaluation, the national Teaching Career Program (ICP) was launched, later to be enhanced by an in-service teacher training strategy widening performance standards for teachers to include class planning and evaluation activities, teaching strategies, and community interaction. A second quality-related input involves the redefinition and updating of the stuidy programs. The new curriculum, which was confirmed by the 1993 LGE, stresses a back-to-basics approach, emphasizing reading, writing, and practical math, with history and geography replacing the previous integrated 'social sciences" discipline. The third quality enhancement element is the maintenance and upgrding of the nationwide free textbook program, strengthened by the "Reading Corners" program (paras. 2.49 & 3.17), and the provision of teaching materials and students' packages (paras. 3.15-3.16) and indigenous textbooks and materials (paras. 3.18-3.19). 2.36. Schooling Level in Society. The Government is seeking to raise the general schooling level by: (a) facilitating school access to wider population segments; (b) prolonging mandatory school services; and (c) increasing students' retention and their learning achievements. To reach broader social segments, the SEP is extending a wide range of compensatory education progrms targeted at underserved populations through PARE (paras. 1.14, 2.42-2.50 & 2.59) and PRODEI (paras. 1.14, 2.51 & 2.59), bilingual education programs, and the CONAFE model (para. 2.4). The proposed project would expand the Government's compensatory program to reach an additional 1.5 million children in disadvantaged communities. To augment the length of learning experience, the Government (i) increased the school year from 187 to 200 days and (ii) established a new nine-year basic education mandate. This commitment to higher levels of basic education stems from results of econometric studies which suggest that length of schooling plays a significant role in explaining cross-country growth differentials.A8' The cost implications of the proposed reform would be analyzed under the project through a study (para. 3.25(c) and Annexes 9 & 14), but the Goverrnent does not expect any significant additional budget commitments due to existing unused capacity in secondary schools. To increase retention of students in the La' In January 1993, compulsory and free nine-year basic education was enacted by integrating the six- year primary education and the three-year lower secondary cycle, consistent with with UNESCO recommendations and the policies followed by other Latn American counties at a similar developmental - 15 - school system and raise their academic achievements, the Government is undertaking necessary measures to enhance the quality of the teaching-learning experience through teacher and administrator training (paras. 3.8-3.13) and provision of updated books and educational materials (paras. 3.14-3.19). 2.37. Community Participation. To make national education more democratic and relevant to social promotion, the Government is reorganizing the education system to involve communities in various aspects of school life, drawing the commitment of teachers, parents, students, education authorities, and community members and leaders. Since the PME, and mainly through the ANAM and the LGE, principles were stated, operational strategies recommended, and mechanisms created to provide local communities with sufficient structure and support for effective participation in school matters. "Councils of social participation" were created at the community, municipal, and state levels, respectively, and are starting to contribute valued input into the decision-making process. 2.38. Increasing Education Resources. Both the PME and the LGE express the Government's commitment to increase financial resources for primary education and provide special assistance to keep rural children in school. Recent education expenditures have confirned this commitment, and it is expected that this level of commitment will at least be maintained in the foreseeable future (para. 2.25 & Annex 3). Review of federal and state budget allocations would occur during the proposed project's annual and mid-term reviews (paras. 5.4-5.5 & Annex 20). I). Bank Role and Experience in the Education Sector 2.39. Prior to the 1990s, the primary focus of Bank assistance to the education sector was on technical training, which reduced the shortages of skilled technicians, long considered a major constraint to industrial growth. Through the First, Second, and Third Technical Training Projects (Lns. 2042-ME (1981), 2559-ME (1984), and 3358-ME (1991), respectively), the National System for Vocational and Technical Education with 252 vocational training centers and an enrollment of approximately 300,000 students was established, and about 40 mobile training units were constructed to provide practical training to conmnunities in marginal areas. The Manpower Training Project (Ln. 2876-ME, 1987) supported retraining for the unemployed and in-service training for workers in small enterprises. These projects have met their objectives and targets, and there have been no notable implementation problems. These activities are being consolidated by the Labor Market and Productivity Enhancement Project (Ln. 3542-ME, 1992). 2.40. Following the 1985 earthquake, the Bank financed the reconstruction, rehabilitation, and reinforcement of public schools in five states (Colima, Guerrero, Michoacan, Chiapas, and Oaxaca) and in Mexico City through the Earthquake Rehabilitation and Reconstruction Project (Ln. 2665-ME, 1986). Under the Decentralization and Regional Development Project (Ln. 3310-ME, 1991), the Bank is supporting rehabilitation of 14,328 schools and reconstruction of 2,006 classrooms and 2,540 annexes for poor and indigenous populations in the rural areas of the same four states covered by PARE, also supported by the Bank. - 16 - 2.41. In the 1990s, the Goverunent requested major Bank support for primary education. The 1991 PARE and the 1992 PRODEI, currently under implementation, seek to increase education quality through a variety of targeted interventions in the states with the worst educational indicators. With recent emphasis placed on Government policies for basic education, the Bank can make a significant contribution to human resources development by addressing the critical issues of quality, efficiency, and equity in primary education. E. Lessons Learned from Past Operations 2.42. Relevant lessons from the implementation of ed ication projects in Mexico, chiefly PARE, but also PRODEI, are discussed in this section. 2.43. Compensatory Projects and Education Quality. The compensatory PARE led to an increase in primary education expenditures for four of the poorest states by 2.2 percent in 1991, 3.7 percent in 1992, and 24.3 percent in 1993 when project implementation accelerated substantially. In particular, non-personnel expenditures per student increased by 6 percent in 1992 as a result of the compensatory programs, and by 305 percent in 1993, contributing to a subsequent quality improvement of primary education in those states.)9 While the education impact on students cannot be measured reliably over the short-term, there have been reductions in repetition and dropout rates in the PARE states. In Hidalgo, for example, the repetition rate declined from 12.4 percent in 1990/91 to 9.4 percent in 1992/93 and the dropout rate from 4.1 percent to 3.6 percent, resulting in an increase in the terminal efficiency rate from 58.7 percent to 67.0 percent over this period. Based on these positive results, the proposed project would cover the next ten poorest states in Mexico, channeling the resources mostly to non-personnel costs, which would be inshumental in improving the quality of primary education in those impoverished states; the four PARE states would also benefit from the management capacity building subcomponent. By 1998/99 the project states' share of all SEP primary education expenditures would increase fim 38.3 percent in 1993 to 40.3 percent, and the expenditure per student in the project states would increase rapidly, thereby reducing the gap between richer and poorer states. 2.44. ITrgeting. The first project targeted four of the economically and educationally poorest states. However, since even the poorest states were found to have municipalities at different levels of development, the efficiency of investment is being further maximized by focusing most project activities not only on the next ten poorest states, but also on the 511 poorest municipalities (out of a total of 934) within these ten states ("project areas") (paras. 3.3-3.6). 2.45. Decentralization. PARE has been carried out withdthe support of state Coordinating Units, which have played a successful role in implementation. Based on that experience, the proposed project would expand support to decentralization by: (a) involving the participant states' SEEs in the project preparation process; (b) creating state-level Coordinating Units (SPCUs, Unidades de Coordinaci6n Estatal) for project implementation and monitoring (para. 3.32); (c) providing technical assistance and human resources development to 12' The non-personnel federal expenditures per student per year increased from US$14.26 without the project to US$22.98 with the project in 1991, and most dramatically from US$13.99 without the project to US$56.76 with the project in 1993. - 17 - strengthen the SEES in the areas of planning and policy analysis, educational management information, and evaluation systems (para. 3.25); and (d) empowering School Councils to carry out school construction and maintenance (paras. 3.20-3.23). 2.46. Teacher Training. The PARE has shown that its teacher training courses were too short and needed to be reinforced with practical in-service supervision. Consequently, under the proposed project, the courses would be expanded in length and content and follow-up technical assistance in classroom performance has been designed to provide for a more active role by supervisors and principals after the formal training period (paras. 3.8-3.13). 2.47. Teacher Incentives. The evidence from PARE suggests that financial incentives for teachers serving in the most remote rural schools has been successful in many ways. Teacher absenteeism has been significantly reduced, the number of teachers willing to fill teaching positions in isolated schools has increased, and teacher turnover has been reduced to a minimum. Attaching the incentive to the school rather than to the teachers has succeeded in promoting teachcr stability. Community cooperation in helping oversee teacher attendance has increased parental commitment to other parts of school life, such as transportation of educational materials to the school and the use of the Reading Corners. Under the proposed project, the teacher incentives program would be extended to the project areas, focusing on schools without teachers and on multirade and indigenous schools (paras. 3.26-3.28). 2.48. Instructional Materials. The provision and use of instructional materials (such as paper, pencils, maps, games, and globes) under PARE has contributed to: (a) more active learning in those poor schools; (b) more cooperative classroom work; and (c) more productive use of teachers' time in the classroom. Some materials of poor quality had to be replaced, and teachers had to be trained to use the materials adequately. The proposed project would: (a) expand the provision of instmctional materials to the project areas; (b) carry out a more careful selection and design of didactic materials; and (c) train teachers on how to get the best educational results from these materials (paras. 3.15 & 3.17). 2.49. Reading Corners. From PARE, it was learned that the Reading Corners program can: (a) complement teachers' strategies; (b) stimulate students' interests and reading habits; (c) expand the benefits of selected reading to poor families; and (d) support teachers' continuing education through the provision of reference materials. The proposed project would: (a) strengthen the Reading Corners in the project areas; (b) increase the number and selection of titles, including books with regional content; and (c) introduce reference and technical materials to support teachers' classroom and community activities (para. 3.17). 2.50. Indigenous Texbooks. The development and production of new textbooks for indigenous schools under PARE yields two main lessons: (a) the participatory strategy used by the General Directorate for Indigenous Education (DGE) in developing these materials through close dialogue with indigenous leaders, teachers, schoiars and parents has been highly successful and unanimously supported; and (b) the visual improvement of the textbooks by using indigenous colors and iconography has increased communication effectiveness. The proposed project has incorporated these two features in the design and production of textbooks and other instructional materials for 17 additional ethnic groups in the project areas (paras. 3.18-3.19). - 18 - 2.51. Environmental Education. PRODEI has indicated that environmental education can and should be promoted from the early years of a child's life through: (a) the development of good health and hygienic habits; (b) consideration for the micro-enviromnent, particularly the domestic environment; and (c) the formation of a positive attitude toward natural resources and public facilities. The proposed project would finance an assessment of enviromnental education at the basic education level in Mexico and offer recommendations that could lead to further action (para. 3.25(c) & Annex 14, Part C}. 2.52. Educational Materials Distribution System. A preparatory study concluded that textbook distribution has been hampered by the absence of: (a) a comprehensive and participatory plan of delivery to schools; and (b) adequate transportation from warehouses to schools. In addition, the design of regional warehouses built under the first project needed some adjustments to better perform their required functions. Accordingly, the proposed project would: (a) require a logistical distribution plan to be developed by each state, including the use of state or municipal transportation along with community-based initiatives; and (b) provide vehicles for supervisors to use for both supervision (para. 3.29(d)) and distribution of educational materials (para. 3.30). 2.53. School Construction Models. A preparatory study has indicated that construction costs have been higher in isolated rural communities and that technical supervision has been insufficient, thereby undermining the quality of construction. Furthermore, construction costs have been higher than expected and construction of schools in remote rural areas under the Decentralization and Regional Development Project via the SOLIDARIDAD municipal funds (a strategy not applied under PARE) was able to mobilize community contributions and reduce construction costs. The proposed project would therefore: (a) maintain PARE's strategy for urban areas and more readily accessible rural areas, but with closer cost-control instruments; (b) introduce a decentalized and participatory approach modeled after the SOLIDARIDAD experience for more remote rural areas; and (c) strengthen the technical supervision of construction by local CAPFCE and private supervisors (paras. 3.20-3.23). 2.54. Project Implementation Experience. The General Directorate for Planning, Programming and Budgeting (DGPPP) under which the Project Coordinating Unit (PCU) operated had limit2d experience in working with Bank projects, thus there were some delays in PARE start-up. Now, the coordinating team, operating under CONAFE's direction, has learned to successfully coordinate, monitor and evaluate the activities of PARE. For the proposed project, the experienced PCU team would be retained and complemented. In addition, specific staff training has been planned to furtier improve their skills (paras. 3.25(a) & 3.31-3.33). Bank-Wide Education Projects 2.55. Project Design. Feedback from several education projects in Latin America indicates that a proper policy framework and adequate institutional capacity are major factors determining the success of project implementation. The proposed project, based on experience gained from PARE, focuses on improving the quality and efficiency of primary education on the basis of (a) a clearly stated Govermment policy framework and (b) improvement of the institutional capacity of central and state education entities. - 19 - 2.56. Project Management. When a project implementation unit is created separately from the existing organizational units, existing units often miss the opportunity to acquire technical expertise during the process of project implementation and to strengthen their institutional capacity. Moreover, externally-financed projects and the overall national program can develop simultaneously without proper synchronization. On the basis of such lessons, the proposed project has been explicitly designed to fit within the overall national program, and most project activities would be implemented and supervised by the SEEs through their existing operational structures, in coordination with the PCU and some central SEP units. F. Rationale for Bank Involvement 2.57. The Bank's most recent Country Assistance Strategy (CAS) for Mexico dated May 18, 1993 focuses on strengthening human resources and enviromnental protection and stimulating pnvate sector-led growth. The CAS was presented to the Board with the Highway Rehabilitation and Traffic Safety Project (Ln. 3628-ME, 1993) on June 24, 1993. The proposed Second Primary Education Project, PAREB, is consistent with the CAS. After the successful implementation of Mexico's economic adjustment program, the Bank has shifted its emphasis to investment lending geared towards assisting sustained growth and poverty alleviation programs. To support growth, the Bank will help the Government enhance the country's institutional capacity for efficient allocation and use of public resources. To support poverty alleviation programs, the Bank will assist the Government's efforts in targeting the poor for public resources. The Bank is supporting major initiatives in the human resources sector aiming at improving the quality and efficiency of social services, the labor market, and nutrition (in the near future) through projects and well-targeted sector work. Future proposed projects in education would focus on preschool and secondary education and on the modernization of technical training, backed in all cases by sector work. This proposed project represents the analytical foundation for this additional support in education. The Bank, with its long involvement in Mexico and with its experience in other countries, is in a unique position to play a catalytic role in: (a) increasing investments in primary education, thus helping to accumulate human capital, the lack of which is a serious constraint to growth; and (b) focusing on the most disadvantaged states and areas within these states, thus addressing the needs of the poor and contributing to a more equitable distribution of educational and economic opportnities. 2.58. The Bank has acquired significant experience in assisting primary education worldwide and has become the single most important source of external financing for the primary, education sector in Mexico. The Government has shown interest in involving the Bank more closely in policy and program development in the human resources sector in general and has requested the Bank's support for the basic education sector in particular. 2.59. By focusing on the poorest states, the proposed project would complement a set of Bank-financed projects targeted on the poor, including: (a) the 1990 Basic Health Care Project (Ln. 3272-ME) to extend health care services to 13 million uninsured poor in four of the poorest states (Chiapas, Oaxaca, Guerrero, and Hidalgo) and in the Federal District; (b) the 1990 Low-Income Housing Project (Ln. 3140-ME); (c) the 1990 Third Technical Traninmg Project to provide vocational training to adolescents from poor families, and unemployed; (d) the 1991 Decentralization and Regional Development Project to improve the - 20 - irdhastructure and productive capacity of rural communities in the four poorest states; (e) the 1991 Water Supply and Sanitation Sector Project (Ln. 3271-ME), to improve the living conditions of 24 million people, most of whom are in the lowest segments of society; (f) the 1991 Primary Education Project (PARE), to improve the quality and efficiency of primary education in the four poorest states; (g) the 1992 Initial Education Project (PRODEI), to support the early development of 1.2 million children in the ten poorest states of Mexico; and (h) the 1992 Labor Market and Productivity Enhancement Project to retrain unemployed workers, upgrade unskilled workers, and improve employment services for the poor. M. THE PROJECr A. Project Concept and Objectives 3.1. The objective of PAREB is to assist the Governmern in improving the quality and efficiency of primary education in ten southern states with a high incidence of poverty and low educational indicators (Campeche, Durango, Guanojuato, Jalisco, MichoacAn, Puebla, San Luis Potosi, Tabasco, Veracruz, and Yucatfin) in order to reduce their educational deficiencies and bring them closer to the national average. It would also reinforce management capacity in the four states (Chiapas, Oaxaca, Guerrero, and Hidalgo) covered by PARE. The proposed project draws on the experience of PARE and would support the Government's policy of providing compensatory assistance to the less developed states. 3.2. The expected improvement in quality and efficiency of primary education would be reflected in: (a) a decrease in repetition and dropout rates; (b) an increase in the level of children's cognitive achievement; and (c) a more effective management of the primary education system. These are high-priority objectives of the Government (paras. 2.32-2.38 & Policy Letter (Annex 4)), to be pursued by the states in the context of the decentralization policy (paras. 2.33-2.34). B. Project Areas and Tlrget Populaion 3.3. The ten states included in PAREB were selected based on three indicators: (a) the CONAPO (National Population Council) poverty index;20' (b) the primary education completion rate as a proxy for internal efficiency;A and (c) the indigenous education rates. Out of the ten project states, all are below the median and the mean of the CONAPO index (Annex 6) and all but one have primary education completion rates lower than the national 20/ The CONAPO index is a poverty index based on the results of 'principal components analysis", using 1990 census data and composed of several municipal indicators: (a) population; (b) percentage Of population 15 years or more who are illiterate; (c) percentage of population over age 15 without primary school education; (d) percentage of households without electricity; (e) percentage of overcrowded households; (f) percentage of occupants in households without a constructed floor; (g) percentage of population in localities with fewer than 5,000 habitants; and (h) percentage of population with fewer than two minimum salaries (about N$14 on countrywide average per minimum daily salary). 211 The school completion rate for primary education was chosen because it results from a number of factors affecting educational performance, including high repetition and dropout rates, a large number of incomplete and single-teacher schools in remote rural areas, inadequacy and shortage of educational materials, and poorly trained teachers. These educational deficiencies largely parallel weak economies and inability of the states to channel the resources necessary to improve education. -21 - average (Annex 2). In 1991, the ten states made up 39 percent of the population aged 6-11 in the country, 39 percent of the total primary enrollment, and 38 percent of enrollment in then federally operated (and now state) primary schools. lb reenforce the management capacity of the four states under PARE (which encountered some start-up difficulties due to institutional weakmesses, see para. 2.54), their managers would also benefit from the management training subcomponent. 22 3.4. Within the ten project states, project areas were selected on the basis of the municipality's poverty and educational indicators. In line with the national policy of basic education decentralization, each participating state conducted a diagnostic study to determine which areas within the municipalities should be included in the project. As a result, the project targets the neediest people living in areas where economic conditions are most severe and educational marginality most critical. A total of 511 municipalities (54.7 percent) w--re thus selected out of 934. The selected municipalities comprise 56 geographic regions, including 29 regions of high sierras and deep tropical valleys or semi-arid plateaus where indigenous peoples predominany live. State capitals and most major urban areas were excluded. Approximately 97 percent of project areas are poor, rural, and isolated villages of fewer than 1,000 inhabitants, lacking basic services like water, sewerage and electricity, and where the average family income is less than the minimum wage. By targeting the poorest areas, the project would also indirectly concentrate project activities in areas of high indigenous concentration (see Box next page). 3.5. The project would cover 13,858 schools, or 38 percent of the primary schools in the ten states. Approximately 1.5 million children are enrolled in the project schools, representing 27.5 percent of primary school enrollment in the project states, or 10.4 percent of the national primary school enrollment. The selected schools are served by 52,859 teachers, representing 29 percent of the teaching force in the ten states, or 11 percent of the national teaching force at the primary education level (Annex 8). 3.6. Poverty, usually associated with poor health and nutrition, also correlates with a low level of education. Average adult illiteracy in the project states is estimated at 13.7 percent, higher than the national rate of 11.8 percent. Average primary school completion rate for the ten states is 52.6 percent; dropout rates average 5.5 percent; and repetition rates stand at 18.7 percent, all worse than the national averages of 58.1 percent, 4.6 percent and 17.1 percent, respectively (Annex 2). C Project Components 3.7. The project has been organized into three major components, as follows: A. Human Resources Development (US$107.9 million or 17.5 percent of total costs including contingencies), to provide in-service training and upgrading for classroom teachers, principals, supervisors, and selected technical personnel; B. Educational Material Resources (US$324.2 million or 52.5 percent of total costs including contingencies), to provide good educational materials and facilities, 221 "Project staes" in this report will refr strictly to the ten staes previously identified (pama. 3.1). - 22 - INDIGENOUS PEOPLE AND THE PROJECT Mexico has the largest indigenous population in Latin America, approximately 8.7 million people (over three times the popuation of Costa Rica), corresponding to 10.4 percent of the national population. The indigenous population is massively occupied in the primary sector (76 percent compared to 22.6 percent counrywide) and geographically concentrated, with 78 percent living in one-third of the country's 2,403 municipalities. Being of indigenous origin is synonymous with backwardness and poverty. Educational indicators have remained significantly lower in indigenous than in non-indigenous areas of Mexico as shown below: Education Indicators - General vs. Indigenous Populations (%) Primary Education (PE) Adult Educ. Attainent Preschool Enrollment Enrollnent Repetition Completion % With 6- Adult Rate Rate Rate year PE Illiteracy General 67 98 9 58 68 12 Population _ Indigenous 41 72 42 27 14 46 ,Population ____ _ Indigenous schools suffer from specific shortcomings: (a) the absence of culturally- oriented textbooks and appropriate educational materials, a particularly serious problem among indigenous children who do not speak Spanish; and (b) 90 percent of indigenous teachers do not possess the officially required licenciatura. The project wtuld devote US$125 million (or approximately 22 percent of total project cost) to support the education of indigenous children by providing for teacher training and incentives, textbooks, didactic materials, Reading Corners, and school construction/rehabilitation and maintenance. Indigenous populations are targeted for project interventions in the ten project states which, together with the four PARE states, comprise 81 percent of Mexico's indigenous population. Using a more explicit targeting mechanism weighted heavily with poverty and indigenous population indicators, the project would benefit, on a relative scale, indigenous areas more. The teacher training courses would enroll an estimated 31,900 indigenous teachers, or 10.5 percent of all project teacher training instances. All indigenous schools in the project areas will receive the teacher incentives program, and 43 percent of the incentive recipients would be indigenous teachers. These same schools would also benefit from construction/rehabilitation and maintenance programs, and DGEI would develop native educational materials for the Reading Corners in indigenous schools. Textbooks and reading materials would be developed in the 17 main native languages spoken in the project areas: Chol, Chontal, Huasteco, Huichol, Maya, Mazahua, Mexicanero, Nahuatl, Purepecha, Tepehuano, Totonaco, three variants of Nahuatl, and one each of Huasteco, Maya, and Totonaco, covering about 90 percent of all ethnic groups in the project states. Book contents would be gathered through ethno-linguistic field research conducted through a participatory strategy successfully developed under PARE; about 126,000 textbooks, 126,000 student workbooks, and 5,000 guidebooks wrould be printed. The project would thus add to the eight languages for which materials were developed under PARE. Indirecdy, by developing technical know-how at DGEI, the project would also assist the production of textbooks and materials in 21 other languages that DGEI is working on in other states; eventually, indigenous textbooks will have been produced for 46 of the country's 56 main indigenous groups. - 23 - namely: (i) teaching materials, school supplies, and school library books both Spanish and bilingual (US$190.3 million); and (ii) urgently needed rehabilitation or replacement of approximately 6,900 classroom and other school facilities (US$131.7 million); and C. Institutional Strengthening (US$184.5 million or 30.0 percent of total costs including contingencies), to strengdten the management capabilities and skills of educational organizations at the national, state, and local levels. It would: (i) strengthen the management capacity of SEP and of SEEs by supporting improvements in planning and policy analysis and in the monitoring, evaluation, and information systems, conducting selected studies to help design future education programs, and designing and carrying out project promotion; (ii) provide work incentives for approximately 7,000 teachers serving in isolated areas; (iii) support a more effective educational supervision system; (iv) strengthen the textbook delivery and materials distribution system; and (v) finance the project administration at the central and state levels. D. Project Description Component A. Human Resources Development (US$107.9 million including contingencies) 3.8. The objective of the human resources development component is to produce more effective teaching and learning conditions in rural schools by enhancing specific teacher skills and tying teacher career advancement to objective performance criteria and by introducing an integrated pedagogical foundation to educational supervision. The contents of the training courses have been selected to fill areas of expertise not covered by the teacher education curricula in colleges and Normal Schools, but deemed critical to teaching under the special circumstances of project schools. The training program has borrowed from the experience of PARE and its components have been accepted by the PAM program, which intends to apply similar training concepts to other states. Teachers who graduate from the training courses would be eligible for the '1CP career advancement program (Annex 10 provides an in-depth description of the teaching training strategy). 3.9. Training Program. The training program would be administered to all project teachers, principals, supervisors, and assistant supervisors. Each program participant would be required to take a five-day summer program (40 hours) consisting of the three core courses - Educational Resources, Educational Problem Prevention, and Remedial Education - plus a number of other courses over seven one-day workshops (a total of 42 hours), approximately once a month on a Saturday over the following school year. Teachers would be required to take one state-specific course, either Written Language or Mathematics (depending on their specialty), and, where applicable, Multigrade Class Teaching (for new teachers likely to be assigned to a multigrade school) and a choice of one or more indigenous teaching courses (for teachers in indigenous areas): Bilingualism in Indigenous Education, Spanish as a Second Language, or Use of Indigenous Texts and Materials. Emnphasis would be on the teaching requirements of the first and second grades where the highest repetition and dropout rates are found. For administrators, a course in Pedagogical Counseling would be required of supervisors, principals, and technical assistants, while supervisors would take an additional course in Supervision. Educational supervision would be pushed beyond the -24 - present concern with administrative control. To this end, an innovative "pedagogical network" concept would be applied throughout the training courses and follow-up activities, thereby training principals and supervisors to provide teachers with guidance on sound educational principles and effective classroom techniques. Teacher trainers would be selected primarily from well-performing graduates of this group, principals, and supervisors. 3.10. Each year, the training program participants would be selected according to the priority needs of the area in which they work, using the same index used to target the 511 project municipalities (paras. 3.3-3.4); it is expected that all project participants would be trained by the fifth year of the project. This approach provides further incentives for teachers and administrators to work in the most disadvantaged localities by providing them the means for earlier career advancement under the TCP. Training centers would be housed in either an existing Normal School or in a secondary or technical vocational school with a wide geographical distribution to minimize travel and lodging costs. No additional physical infrastructure would be required for the training centers, but the project would finance required computers and audiovisual materials and equipment. The Govermnent's list of selected training centers was reviewed at appraisal and found satisfactory. The project would also finance the costs of transportation and meals, training materials, and remuneration (equivalent to overtime pay) for trainers, supervisors, and school principals for participation in the Saturday workshops. 3.11. The training program would operate under the same steering unit in the Undersecretariat for Basic Education (Subsecretaria de Educaci6n Bdsica, SEB) which oversees the PAM to avoid course content duplications and to ensure that credit points for successful program completion are properly recorded under the TCP. The summer courses would be integrated with a regular PAM one-week summer workshop to update curricular contents. A Central Technical Group attached to SEPs normative units for general and indigenous primary education would be responsible for overall planning of training activities, designing the courses, and developing training materials. This group would, in turn, be responsible for training the State Technical Groups and for following up and evaluating all project training activities in the states. State Technical Groups would similarly be organized in project SEEs for general and indigenous primary education, respectively. The State Technical Groups would be responsible for organizing the training courses for state trainers, teachers, and supervisors, and for evaluating the performance of trainers. Both the central and state Technical Groups would be made up of technical staff members of SEP and SEE, respectively, serving on a full-time basis. The State Technical Groups, together with the state trainers, would conduct follow-up activities to the Saturd workshops to encourage teachers to pursue further training through continued use of the Reading Corners and other self-training opportunities. 3.12. Printed training materials would be specifically developed for each training course. They would include study guides, a bibliography, a trainer's manual, evaluation instruments, and an anthology of selected readings. Posters and promotional materials would also be developed and distributed to encourage teacher participation in the training program. Materials developed for PARE have been revised for use in this project. 3.13. Beneficiaries would include all of the estimated 52,859 existing teachers in the project municipalities, who would participate in the required three general primary and the - 25 - one state-specific courses; of this number, approximately half would also each take either Written Language or Mathematics, depending on their concentration. Over the project life, an estimated 6,780 new teachers would attend the Multigrade Class Teaching course, while the indigenous education training courses would enroll an estimated 30,390 participants per course in the 12-day (summer and workshops) courses, and 1,520 in the 5-day (summer only) courses. Altogether, a total of approximately 302,985 teacher training instances would have been carried out. An estimated 8,730 participants would take the Pedagogical Counseling course, and 945 would take the Supervision course, for an aggregated total of about 9,680 participants. Component B. Educational Material Resources (US$324.2 million including contingencies) 3.14. The objective of the educational material resources component is to improve the quality of learning, student performance, and school attendance and thereby reduce student dropout and repetition rates through the provision of: (a) school and classroom teaching and learning materials; (b) student educaticnal supplies; (c) books for the Reading Corners; (d) texts and educational materials for indigenous education; and (e) urgently needed rehabilitation or replacement of inadequate school facilities and construction of new classrooms to meet expanding enrollment. 3.15. Subcomponent B.1. Teaching Materials and Student Educational Packages (US$179.2 million including contingencies). Packages of teaching materials containing maps, charts, posters, anatomic models, and other items would be distributed to each project school. Schools having access to electricity would receive an additional package of audiovisual equipment, including audio cassettes, a radio, a tape recorder, and an overhead projector. The package for schools without electricity would cost, on average, approximately US$3,850, and for those with electricity, about US$4,600. Each classroom would receive a package of grade-specific materials, including rulers, dictionaries, games, geometric solids, and chalkboards. Multigrade classes would have appropriately designed packages servicing all grades taught. These packages would cost approximately US$276 each per year for multigrade classes and US$160 for each of the six primary grades. 3.16. All students would receive a package of school supplies, including notebooks, pencils, crayons, dictionary, and rulers to encourage more active participation in learning both in school and at home, and to relieve the financial burden on their families. Packages would be differentiated in the number of items included according to the type and level of marginality of the community involved. The cost of a package would range from US$8 to US$13 per student per year. The Bank would finance non-durable student educational packages on a declining basis. The project would support an improved distribution system for both the national textbooks and the project materials (para. 3.30). 3.17. Subcomponent B.2. Reading Corners (US$7.1 million including contingencies). The proposed project would support the production and distribution of Reading Corners packages, through SEP's Education Publications Unit (Unidad de Publicaci6n Educativa, UPE) to all project classrooms. The Reading Corners program was included in PARE and was requested by the proposed project's participating states. During project preparation, it was observed that existing Reading Corners were often underused due to (i) insufficient mumbers of books and/or (ii) placement of the Reading Corners within a central and often - 26 - bureaucratized library system. Under the project, more books would be available, schools would be encouraged to provide books in the classrooms themselves, and teachers and principals would receive training on how to use and promote the Reading Corners. There are two versions of the Reading Corners package, one with at least 200 books (for schools with five or less classrooms) and the other with at least 350 books (for schools with six or more classrooms). These are higher numbers of books than under PARE or other Reading Corners elsewhere, which would make the books more accessible to students through teachers or directly in each classroom. Each package consists of books on various subjects, selected to enrich the educational experience of students, broaden their cultural outlook, and reinforce their reading skills. The books are used to supplement textbook materials, or they are borrowed by teachers, students, and the community for side reading. A further improvement to the program under the proposed project consists of a supplementary package of at least 15 educational reference books for teacher self-training and at least 30 books with regional content for each classroom. Training in the regular use of Reading Corners would be provided as part of the teacher training curriculum and reinforced through the pedagogical network. SEP's DGEI would also develop a special package of reading materials with native educational contents for Reading Corners in indigenous schools (paras. 3.18-3.19). 3.18. Subcomponent B.3. Textbooks and Educational Materials for Indigenous Education (US$6.2 million including contingencies). Language textbooks and reading materials for the Reading Corners would be developed in the 17 native languages spoken by the major ethnic groups in the project areas, which would cover the languages of about 90 percent of the indigenous population in the project states.L3' Content material for the books would be gathered through ethno-linguistic field research conducted under DGEI. A participatory methodology for text design and various visual presentation and communication modalities has already been developed with PARE support by a DGEI team, which would remain to develop indigenous textbooks under the project and other DGEI-sponsored programs. 3.19. Indigenous language textbooks and Reading Corners materials would be developed for the six primary grades. A technical group, with a DGEI coordinator and a state-level representative for each of the 17 languages, would be in charge of coordinating the selection and preparation of the native language texts. Each indigenous group representative would, in turn, head a four-member working group with direct responsibility for developing the respective textbooks and other instructional materials. The DGEI coordinator would supervise the work and ensure that national educadonal norms are observed. An outside consultant would advise the working groups and provide technical support during the first project year. Preliminary versions of textbooks, student workbooks, and teacher guidebooks for grades 1 and 2 would be designed, produced, and field tested on a pilot scale during the first project year; results and recommendations of the field tests would be incorporated into the final version which would then be printed and distnbuted. This process would be repeated for grades 3 and 4 during the second year, and those for grades 5 and 6 during the third year. This slow start-up period is required due to the large number and complexity of 23 The languages are Chol, Chontal, Huasteco, Huichol, Maya, Mazahua, Mexicanero, N6huatl, Puarpecha, Tepehuano, Totonaco, three variants of Nahuad, and one each of Huasteco, Maya, and Totonaco. For a broader perspective of the project's impact on indigenous education, see the Box Indieenous People and The Project on page 22. - 27 - indigenous languages, the need for appropriate treatment of cultural differences, and the small number of experts available. About 126,000 textbooks, 126,000 student workbooks, and 5,000 guidebooks for bilingual teachers would be evenually printed. 3.20. Subcomponent BE4. Improvement of Physical hnfrastructure (US$131.7 million including contingencies). School rehabilitation and/or construction subprojects would be implemented by the SEEs, following one of two strategies depending on the educational needs, location, access, and productive capacity of the project municipality. The first is a community participation strategy modeled after the successful SOLIDARIDAD program, which would be used for schools located in remote areas unlikely to generate contractor interests beyond the immediate vicinity and where the community is willing and able to contribute the required labor and time. It is expected that about 50 percent of construction/ rehabilitation under the project would fall under this modality. A basic design from the CAPFCE menu of school prototypes would be selected by in consultation with local School and Municipal Education Councils, with variations as applicable to accommodate local and regional diversity in climate, ecology, and available materials. This building modality does not use public bidding and operates through School Councils under the oversight of municipalities and under technical supervision provided by State Secretariats of Public Works (Secretarfa de Obras Pgiblicas del Estado, SOPE) (para. 3.23), with guidance from a self- help construction handbook. This handbook is being designed based on existing SOLIDARIDAD material, with necessary modifications to reflect the type of civil works to be carried out and the local or regional conditions. Contracting for small works such as rural schools would be done directly with local contractors for al or part of the work, using regionalized reference prices, and the community would contribute labor and locally available materials. The second strategy would be to transfer management, proement, and supervision responsibility to CAPFCE for the estimated remaining 50 percent of the imfrastructure works (located mainly in more urbanized areas or with easy access), which are considered '.arge enough to attract a number of contractors through a public bidding process. Annex 11 provides a more detailed description of the civil works to be carried out under the project. 3.21. School construction needs were determined by SEEs in each state through a survey of schools in the project areas. Civil works requirements were based on the need to: (a) improve existing school facilities, replacing rented or dilapidated classrooms or those that cannot conform to functional pedagogical or architectural standards; and (b) expand schools to accommodate current and expanding enrollments. Prioritization of infrastuure subprojects would be made by SEEs in consultation with State Planing Councils (Consejo de Panificaci&n del Estado, COPLADE) according to an Operational Manual (pam. 3.23) which would clearly state selection criteria including, er alia, overrowed conditions, grossly inadequate facilities, and consultation with supervisors. The Operational Mamnal would furher ensure that the following procedures, inter alia, be followed: (a) the CAPFCE prototype designs would include technical drawings, budgets, and technical specifications for at least three designs using different constuction materials for classrooms, sanitary services, and latrines; (b) evidence of rightful ownership of land by SEP or state governments through donation or purchase would be a condition for subproject approval; (c) in the case of civil works to be carried out through the community model, financial resources would have been transferred to the respective municipal government (ayunmentos). Teachers for new classrooms would be provided and financed by state governments, but this number is -28 - expected to be small (approximately 350) and sustainable under state education budgets. Assurance of teacher availability would be obtained prior to authorizing new classroom construction under the project; and (d) School Councils would have been created and fully operational to provide consultation and maintenance (para. 3.22). At negotiations, the Government arovided assurances that bv October 31 of each Year. starting in 1994. the Government would present: i) a list of schools and/or classrooms to be constructed/rehabilitated in the next year: (ii) ewdence that lnd is available to the SEEs for civl works: (iii) ewdence that adequa¢e staffing plans. includinf budgetarv allocations thereto have been pnalized- and Civ) evidence that local School Councils have been created and ar or erational rpaa. 7. 1(b)). 'lb meet urgent enrollment needs for the schoolyear 1994195, a small number of classrooms (approximately 315) would be constructed/ rehabilitated according to the CAPFCE model, subject to (a) all prior conditions related to this subcomponent and (b) an ex-ante review by the Bank scheduled for August 1994. 3.22. New and rehabilitated classrooms would be provided with appropriate classroom furniture, including student desks and benches and teacher desks and chairs. All schools in the project would be provided with bookcases and shelves as needed. The cost of classroom funiture and equipment has been included in the rehabilitation and construction costs. The project would support an innovative maintenance program for schools based on the operational experience (but not the financing mechanism) of the successful three-year-old Escuela Digna program. 4/ Municipalities would receive each year a fixed amount based on the number and type of facilities in the municipality (an estimated average of US$320 per facility) for infrastructure and furniture maintenance. The ayuntamientos, in coordination with the School Councils, would ensure that maintenance is carried out either by obtaining the services of a local contractor or by purchasing materials and carrying out the maintenance work themselves with the help of the community. In a relatively few cases (for about 5,500 existing classrooms), maintenance activities are more broadly defined to include some rehabilitation services necessitated by years of lack of maintenance. Because there is no previous local experience with systematic maintenance programs, the project would phase in implementation of the maintenance program in selected areas to test mechanisms tOr trnsf*r of maintenance funds to the ayuntamientos and to monitor their performance. Based on the results of this maintenance modality, the program would be expanded to cover the remaning project areas. The project would also finance printing of a maintenance handbook (currentlv being developed with technical assistance from international architects) which would be widely disseminated in the project areas, and the promotion program (para. 3.25(d)) would include stressing the importance of maintaning school buildings and furniture. 3.23. An Operational Manual for the implementation of the physical infucture subcomponent is being prepared by CONAFE in consultation with CAPFCE, with technical assistance from iemtional experts. Technical supervision of on-going civil works will be carried out by supervisors at CAPFCE and at SOPEs for the CAPFCE and community 24 The Escuela Digna ("Pride in Schools") is a SOLIDARIDAD-supported program for school repair and maintenance. Using a participatory approach, part of the costs is funded by the Federal Government (50 percent in the richer states, and 75 percent in the poorer states), part by the state (40 percent and 15 percent, respectively), and 10 percent by the local community. Since 1990, 80,000 schools have been assisted by the program. Under the project, the proposed maintenance would draw from federal funds and contnbutions (monetary, labor, or inkind) from local communities. - 29 - participation models, respectively, under terms of reference satistactory to the Bank. Each year, technical supervision reports would be presented and discussed during the annual and mid-term reviews (paras. 5.4-5.5) as part of the ex-ante review of infrastructure subprojects for the coming year, and audits of project accounts (para. 4.16) would include a specific review of a sample of infrastructure subprojects to verify that they were procured in a manner consistent with Bank guidelines, meet the minimum quality standards, and were priced within prvailing regionalized standar unit prices. At negotiations. CONAFE presented to the arnk a satisfactory drft Operational Manual for inrastructure subproiects (pam. 7.1(c)). As a condition of loan effectiveness, the Government will present. satisfactory to the Bank: (i) a inalized Operational Manual for istructure improvement: (ii) a hanbook for self-help construction: and Niii) a handbook for buidn and furniture maintenance (para. 7.2(a)). As a condition of disbursement for irastructure subproiects. the Government wll present terms of reference for technical supervision of infrastructure subprojects under both the -CAPFCE and communitv participation models. satfactora to the Bank pam. 7.3(a)). Component C. Istitutional Strengthening (US$184.5 miDion including contingencies) 3.24. The main purpose of the Institutional Strengthening Component is to assist state governments m developing manageial capacity commensurate with their newly acquired resonsibility for operating a decentralized basic education system. The project would support: (a) development of the management capacity at SEP, mainly CONAPE, and in project SEEs in the areas of (i) planning and policy analysis, (ii) monitoring, evaluation, and information systems, (iii) education studies, and (iv) project promotion and diffusion; (b) implementation of a teacher incentives program; (c) improvement of the supervision system; (d) improvement of the texbook and materials distribution system; and (e) administration of the project. The four states under PARE would also receive assistance directly thuough management training for planing and policy analysis (para. 3.25(a)) and indirectly through institutional strengthening activities at CONAFE aras. 3.25(b)-(d)). 3.25. Subcomponent C1. Manageent Capacity (US$17.6 million including contingencies). In the context of the 1992 decentralization agreement, SEEs are facing new administrative challenges which require an improved set of management skills and tools to carry out tasks previously conducted by SEP and SCEPs. The following activities would be financed by the project: (a) Maagement rining for Plnning and olicy Analysis. The project would strengthen the capacity of the state education planning bodies, enhancing skills among high-level officials through an integrated management training and technical assistance program in educational policy analysis and planning (Annex 12). The training would cover the following topics: (i) education quality and efficiency; (ii) methodologies for policy analysis and sector performance assessment; (iii) options to reform initial, basic, secondary, and hiu - education; (iv) the relationship between education, work and employment; (v) education financing; (vi) resource allocation modeling; (vii) strategic use of data collected from the education management information system; and (viii) evaluation and measurement of educational achievements. Other education issues which would be included in the trainng include decentralization, curriculum reform, and language of instruction. The project would provide 90 staff-months for overseas training fellowships and 380 staff-months of local training. Local training - 30- would be provided by educational and training institutions with recognized expertise in the relevant topics. The overseas training would be provided through workshops and internships in internationally recognized educational and research institutions. Participants would be nominated by the SEEs and selected according to predetermined criteria. Education officials in the four PARE states would be included under this program. At negotiations, the Government presented the selection criteria for the management training component. s ecifically for the overseas training fellowships. satisfactor to the Bank (para. 7.1(d)). (b) Monitoring, Evaluation and Information Systems. The project would support the strengthening of CONAFE's institutional capacity by developing its monitoring, evaluation, and infornation processing and analysis capabilities. The project would provide technical assistance to help develop an integrated project management informalion system (MIS) to be implemented at both central and state levels which would allow close monitoring and evaluation of project activities as well as sustainable measurement of educational quality through (i) reviewing the content of data registers, (ii) improving data collection processing and data analysis, and (iii) supporting the diffusion of information to all levels of the educational system. Project data collected and processed through the project MIS would add to the data banks of the country's existing education inforTation systems and enhance CONAFE's capacity for policy planning and analysis and for assessment of educational quality in conjunction with DGEIR. CONAFE is undertaking an information needs study to determine the requirements of the project MIS. Consultants would carry out the design and development of the process evaluation system, building on data to be collected through the project MIS, which would assess the quality and short-term effects of various (sub)-zwnponents vis-a-vis project outcomes. Terms of reference and consultant short list of the process evaluation system have been reviewed and found satisfactory. Results of the monitoring and process evaluation systems would be discussed with the Bank during the annual implementation reviews and be made available to the states. Terms of reference for the process evaluation system are included as Annex 13. At negotiations. the Government provided assurances that the project MIS and the process evaluation system would be &ul operational no later than December 31. 1994 (para. 7.1(e)). The project would also finance development of the capacity for sustainable assessment of the quality of primary education by supporting the DGEIR in conducting one round of test applications in June 1996 on a sample of primary education students in the project states. Cognitive achievement by subject would be measured across variables such as age, grade, gender, type of school, grade, educational modality, and geographical area. Additional data relative to school inputs, family and community characteristics, and social and economic enviromnent would control for school and non-school factors. This round of tests and other technical assistance would help Mexico participate in the next international comparative study of the International Assessment of Educational Progress, anticipated to take place in 1997. At negotiations. the Government provided assurances that: (i) tests. questionnaires, and administrative manuals for the testing of primary education students would be presented for Bank review no later than December 31. 1995: and Cii) it would carv out the testing in June 1996 and anaze and disseminate the results in a manner satisfactorv to the Bank (para. 7.1() - 31 - (c) Education Studies. The proposed project would support studies to assess preschool, secondary, environmental, and science education to support sector policies and programs. The studies would be coordinated by CONAFE and SEB and its associated General Directorates and carried out by selected researchers acceptable to the Bank. The project would finance technical assistance, survey design, and the collection, processin, analysis, and dissemination of data and results. The Preschool Education Study would identify major quantity, efficiency, and equity issues affecting this education level, to appraise the relevance, efficiency, and effectiveness of preschool education programs and recommend strategies on how to improve this level of education to meet the LGE requirements. The Secondary Education Study would be conducted along five dimensions: (i) a diagnostic study on the major issues facing secondary education, incluling quality, internal and external efficiency, curriculum, and equity; (ii) the socioeconomic characteristics of secondary education dropouts based on aggregated data from SEP statistics, CONAPO indicators, and household surveys, with an aim toward developing targeting criteria for possible investment projects; (iii) the working conditions of teachers and supervisors, attitudes toward their profession, opinions on problems in secondary education, and opinions about their training needs; (iv) the characteristics of effective secondary education schools; and (v) the financial implications of the new nine-year basic education mandate. The Environmental Education Study would review the literature and the current state of education on the environment in Mexico, including contents of progams at different levels, public and private institutions involved, and official commitnents and resources invested in environmental education. Strategies would be devised on how to systematize the fragmented experiences and recommendations would be made on how to orient them more directly to the country's environmental concerns. The Science Education Study would provide analysis of a pilot experience on cost-effective science teaching in primary schools. The exercise would consist of implementation of two different models of science education in a sample of 270 (180 experimental and 90 control) schools in the project states under supervision from SEB and the SPCUs. The models would be selected during the first project year after reviewing the most important experiences in Latin America. The study would start in the 1995/96 academic year and finish with the 1996/97 school year. Terms of reference for the education studies (Annex 14) were discussed at appraisal. At negotiations. the Government confirmed agreement on the final terms of- rference, implementation schedules. and consa short lists for the education studies. satisfactora to the Bank (para. 7. 1(g)). Interim and/or final results and conclusions of all studies, and follow-up action, as appropriate, would be discussed during the project almual and mid-term reviews. The main follow-up action would be the preparation of investment projects for preschool and secondary education. (d) Project Promotion and Diffusion. The project would finance technical assistance to CONAFE and the project states for developing a strategy to promote the project, inforim about its activities and benefits, and stimulate and sustain the interest of all segments involved (decision-makers at different authority levels, SEP and SEE - 32 - officials, teachers, principals, and supervisors in the schools, parents and community leaders, and multi-ethnic communities) to play their respective roles and contribute to the project. The project would make extensive use of a variety of media such as radio and television, videotapes and murals, and booklets and leaflets. 3.26. Subcomponent C2. Teacher Incentives (US$104.3 including contingencies). The objective of this subcomponent is to increase teachers' time on task by providing monetary incentives to teachers for serving in schools of rural and isolated communities with difficult access and limited living conveniences (Annex 15). This system was tested in PARE with 2,700 teachers and was deemed effective at ensuring and increasing their classroom availability (para. 2.47). Although no formal evaluation has been conducted as yet, reports from supervisors and information from parents and PARE staff suggest that student attendance has improved and fewer failures and a lesser tendency to drop out have been reported. Incentives would be linked to the school and not with the teacher, and would not be considered to be part of his/her salary and would be financed by the Bank on a declining basis. 3.27. The project would apply basically the same criteria of school marginality as PARE. Top priority would be given to remote project schools with the greatest need for teachers and indigenous schools. Multigrade schools with two or more teachers in isolated areas would be given a second priority. The Government has presented to the Bank a satisfactory list of target schools and localities selected for the first project year. At negotiations. the Government conrement on the list of tgMet schools and localities selected where teacher incentives will be granted for the first Year of the project and that the selection of schools for subsequent 3ears of the project will be discussed and agreed ex-ante with the Bank at the annual and mid-term reviews (para. 7.1(h)). 3.28. The per-month incentive is equivalent to the average primary teacher's basic monthly salary,v25 and is paid every three months provided the teacher has been present at the school throughout the period. Residence in the community, however, has not been always possible, and incentive teachers would be allowed to live in nearby villages. The local community and the School Council would certify that the teacher has been regularly involved with classroom teaching during the incentive period. Any minor absence would be noted and deducted from the payment unless the teacher makes up for the lost time. About 7,000 teachers would benefit from the incentive by the end of the project. Of these, approximately 3,000 (43 percent) would be from indigenous primary schools and 4,000 from general rral primary schools. Approximately 1,400 teachers would participate in the first year, and a similar number would be added each subsequent project year. 3.29. Subcomponent C-3. Improvement of the Supervision System (US$21.9 million including incentives). The project would support the improvement of the supervision system by: (a) amplifying the role of supervisors from strictly administrators to pedagogical advisors; (b) establishing supervision offices in strategic locations to facilitate supervision activities and lessen supervisors' travel burdens; (c) offering travel incentives to encourage more frequent supervision; and (d) purchasing vehicles for supervisors' use. ;5 The basic salary represents about two-thirds of teachers' total pay. The incentive would increase total pay by about 60 percent. - 33 - (a) Change in Supervisors' Role. Supervisors and education administrators would receive extensive training (paras. 3.25(a)-(b)) and would become active members of the "pedagogical network". Supervisors' school visits would become opportunities for exchanges on teaching problems and for providing technical assistance in the classroom instead of just instances for administrative control. To reinforce their pedagogical contribution, supervisors would be eligible for selection for special training to become course trainers (as would be principals). (b) Supervision Offices would be built and equipped to supplement the existing supervision network. They would be placed in strategic locations to ensure access to schools to be supervised, usually on the grounds of an existing school, and would have simple document reproduction facilities to duplicate educational or informational materials. The proposed project would finance the construction, furnishing, and equipment for 519 supervision offices and 80 sector chief offices. The location of supervision and sector chief offices was reviewed at appraisal and found satisfactory. (c) Travel Incentives would be given to 926 supervisors and 160 sector chiefs in the project areas. Travel incentives would help defray some of the supervisors' travel expenses and encourage a more active role in promoting the quality of teaching in the ural schools through a regular program of school visits. The incentives would be paid quarterly against visit reports as verified by the School Councils. The value of the incentive every quarter would be approximately US$350 for supervisors and US$190 for sector chiefs (the difference is due to the higher frequency of travel required of supervisors). (d) Vehicles. About 80 vehicles would be provided, to be used mainly by supervisors for school and community visits. Supervisors may pay for the fuel and use of the vehicles from their per diem allocation, or they may use public transportation or their own vehicles, whichever is more convenient. The vehicles would also be used by the supervisors to carry textbooks and other educational materials from regional warehouses to their zone schools. 3.30. Subcomponent C.4. Books and Materials Distribution System (US$11.6 million including contingencies). The project would support improvement of the existing distribution system for textbooks, educational materials, maintenance materials, and school furniture to ensure that all materials reach the schools when they are needed. Inadequate storage facilities and poor distribution logistics have long hampered the Government's national free textbook program (para. 2.12). Using early PARE experience, each state has carried out an analysis of the flow of materials through the varous steps of the distribution network from the supplier at one end to the school at the other and estimated the transportation times and costs in order to assess the need for warehouse space and distribution means while optimizing the use of other available state and community resources. The project would finance the construction of 68 regional warehouses (see Annex 11, Physical Infrastructure and Distribution Network) and vehicles, which would serve mostly (but not exclusively) the project areas. The design and location of these warehouses would be determined by an analysis of the distribution plan presented by each project state, nine of which have been carried out. The proposals for distribution and inventory systems already submitted have been reviewed and generally found satisfactory; all systems would be integrated under a consistent framework. CONAFE is currently carrying out this integration - 34 - process, particularly in defining common norms (e.g., average transport and storage times, waste and loss standards etc.) which would serve as monitoring indicators. Progress in the development, integration, and implementation of the distribution and inventory system would be reviewed annually (para. 5.4 & Annex 21). 3.31. Subcomponent C-5. Project Administration (US$29.1 million including contingencies). The project would finance salaries, technical assistance, vehicles and equipment, and operating costs of the PCU and SPCUs. Overall authority for project nmanagement would be vested in CONAFE's Director General, with operational responsibilities lying with the PCU. To better benefit from experience under PARE, a PCU would be created that would integrate the operations of both projects; this has the added benefit of reducing administrative costs for the first two years of the proposed project during which PARE will be paying part of the PCU operating costs. The PCU would be staffed by one General Coordinator, assisted by two technical units (one for project monitoring and evaluation and the other for institutional support), and six line Directors (one each for training, didactic materials, incentives, infrastructure, institutional development, and administration). Each Director would be assisted by one or more analysts and regional coordinators who would split their supervision and support duties on a geographical basis. J This flat organizational structure was chosen to facilitate teamwork and reduce management levels and has been found satisfactory by the project team during a post- appraisal mission. Technical Advisory Committees (TACs) would be established at both central and state levels early in the implementation process to assist the PCU and to secure necessary support and cooperation from all SEP and SEE sectors, and other institutions involved in project activities. The central TAC would be presided by the General Director of CONAFE and would comprise the PCU General Coordinator and, inter alia, representatives from SEB, the Undersecretariats for Education Coordination and for Primary Education, DGEI, DGEIR, the National Pedagogical University, UPE, and CAPFCE. State TACs would be presided by the SEE General Director (or equivalent) and would comprise the SPCU General Coordinator and line Directors (para. 3.32), and, inter alia, the state-level Directors for primary and indigenous education, SOPE, and CONAFE, and a representative of the supervisors. The composition of the TACs will vary slightly from state to state due to their different educational organizational structures, but the overall framework and organizing principles have been reviewed and found satisfactory. 3.32. At the state level, SPCUs would have the responsibility for carrying out the project. Each SPCU would be staffed on a full-time basis by one General Coordinator, assisted by one technical unit and one institutional support unit, and five line Directors (training, incentives/evaluation, didactic materials, infrastructure, and financial administration). The General Coordinator and possibly other managers would be existing high-ranking officials in the SEEs (to secure the states' ownership of the project). SPCU staff below the management level would be recruited from the existing SEE administrative structure and their salaries would continue to be paid by the states. The proposed SPCU structure has been reviewed and found satisfactory. The PCU and SPCU organigrams, other project management arrangements, and the flow of funds are described in more detail in Annex 16. At W' CONAFE is dividing the combined 14 PARE and PAREB states into two administrative regions: Region I comprises Durango, Guanajuato, Jalisco, Michoacin, Puebla, San Luis Pbtosi, and Vracruz; Region 2 comprises Campeche, Chiapas, Guerrero, Hidalgo, Oaxaca, 'Ibbasco, and Yucatfin. - 35 - neRotiations. the Government confirned agreement on the staffing plan and terms of reference for keversonnel in the PCU and SPCUs and on the comaosition of the TACs at both central and state levels (para. 7.1(i)). As a condition for loan effectiveness. CONAFE will present evidence that the central PCU is staffed satisfactorily in accordance with the staffing plan agreed at negotiations (para. 7.2(b)). 3.33. The relationship between CONAFE, the PCU, and SPCUs (and by extension, between SEP and SEEs) under the project would be government by Participation Agreements signed betwveen SEP and SEEs in each of the participating states. Witi each such participation agreement, a technical annex would set out specific guidelines and monitoring indicators matched to the needs of each state. The four PARE states would sign agreements covering only their participation in the management training program (para. 3.25(a)). At negotiations. the Government confirmed agreement on the final content and form of the participation agreement and technical annexes for carring out activities under the project to be signed with each of the project states plus the four under PARE (pam. 7.1(j)). As a condition for loan effectiveness. the Government will present evidence that for at leas four project states: (i) participation agreements. includLng technical annexes. will have been signed: and (ii) the respective SPCUs will have been satisfactonrly staffed (para. 7.2(c)). As conditions for disbursement to each proiect or PARE state, (i) participation agreements incl-udng technical ann_exes will have been signed. and (i) for project states, the SPCU will hav been staffed satisfactorilyN satisfactoiv to the Bank (para. 7.3(b)). IV. PROJECT COST, PROCURFMENT, DISBURSEMENT, AND AUDIT A. Project Costs and Financing 4.1. Project Costs. The total project cost, including physical and price contingencies and taxes, is estimated at about US$616.7 million equivalent, of which about US$138.6 million would be foreign exchange; taxes amount to about US$44.3 million (Annex 17). The table below summarizes the estixmated costs by component. Investment costs amount to 57 percent of base costs and incremental recurrent costs amount to 43 percent of base costs. Recurrent costs are usually higher in human resources projects as they emphasize quality improvements rather than expansion of infrastructure. Project costs are estimated at October 1993 price levels and include physical contingencies of 5 percent for civil works and equipment, furniture and vehicles. Price contingencies are calculated at 2.5 percent per year for 1994- 98. These rates have been applied to local and foreign costs as well, assuming that periodic currency rate adjustments would compensate for the difference between international inflation on a US dollar base and local inflation rates. 4.2. Estimated construction costs for the project area are based on unit prices per square meter derived from current contracts and costs analyses for similar standards of construction in corresponding facilities in the four PARE states. Estimated educational facilities rehabilitation costs are calculated as a percentage of new construction costs. Estimated costs of equipment, furniture, vehicles, and educational materials are based on unit prices per item obtained in recent international and local purchases. Estimates for technical assistance and studies are based on current rates for local and foreign experts. Cost estimates for training, salaries and operaing costs are based on actual costs of PARE. - 36 - Project Cost Summary Lca Fbreign Ibtal --US$ million-- Human Resources Development 99.8 2.6 102.4 Educational Material Resources Teaching MateriaL & Student Packages 85.6 85.6 171.2 Reading Comers 4.8 2.1 6.9 Indigenous Education 3.9 2.0 5.9 Infrastructure Improvement 93.8 24.7 118.5 188.1 114.4 302.5 Institutional Strengthening Management Capacity 11.6 5.3 16.9 Teacher Incentives 97.5 0.0 97.5 Improvement of Supervision System 16.6 3.4 20.0 Books & Materials Distribution System 7.6 2.8 10.4 Project Administration 26.6 1.0 27.6 159.9 12.5 172.4 BASE COST 447.8 129.5 577.3 Physical Contingencies 5.0 1.4 6.4 Price Contingencies 26.3 6.7 33.0 TOTAL PROJECT COST27 479.1 616.7 4.3. ncrement Rcurmrnt Costs. During the implementation period, the project would add an average of about US$52.7 million per year to the recurrent expenditres budget of the SEP Operating costs generated by the project are estimated to grow, in October 1993 prices, from US$30.5 million in the first year of project implementation to US$70.9 million in the last year of project implementation. The incidence on the SEP budget would thus remain small and manageable and is fully consistent with the Government's commitment to compensatory programs through CONAFE and to increase the share of its prinary education expenditures going to the poorest states. No additional budgetary commitments are required from the project states as the financing of the project would fall under the federal government's compensatory scheme. Recurrent costs under the project, in 1993 US$ millions, are estimated as follows: 94195 95/96 96/97 97/98 98/99 30.5 45.4 50.5 66.1 70.9 These incremental operating costs would be generated mainly by educational materials for students, incentives for teachers and monetary support for supervisors, salaries for incremental staff, operation and maintenance of infrastructure, furniture, equipment and vehicles, office supplies, and travel and subsistence costs for supervision activities. While togedter these recurrent costs amount to 43 percent of total project costs (a level not Z' Includes taxes and duties estmted at about US$44.3 million. - 37 - uncommon for primaly education projects) as noted in para. 4.1, the yearly average amounts to less than one percent of the federal transfers to all states in 1993 and thus should be easily absorbed by the states after project completion. Incremental recurrent costs would be financed by the Bank on a declining basis. 4.4. Project Financing. The proposed project would be financed by the Bank and the federal government. The proposed loan of US$412.0 million would finance about 67 percent of total project costs, or 72 percent of project costs net of taxes and duties of about US$44.3 million. The loan would finance 100 percent of foreign exchange expenditures and 63 percent of local expenditures, net of taxes, would be financed. Such levels of local cost fincing are justified under the project due to the highly targeted nature of project activities (rural communities of difficult access unlikely to attract any international bidding interest) and to the significant portion of investment funds going directly to local residents (through community participation civil works, indigenous educational materials, incentives for teachers and others, etc.). This is common in primary education projects both in Mexico and elsewhere in the region. The loan would be made to Nacional Financiera, S.N. C (NAFIN), which would make the funds ava1able to CONAFE for the execution of the project. The federal government would finance US$204.7 million, or 33 percent of total project costs including taxes. iMnancing Plan LAcal Foireign Total -US$ million- Federal Government 204.7 0.0 204.7 IBRD 274.4 137.6 412.0 TOTAL 479.1 137.6 616.7 B. Procurement 4.5. The project would include procurement of new construction and rehabilitation of educational facilities, furniture, office and computer equipment, audiovisual equipment, educational materials, library books, four-wheel drive vehicles, studies and consultant services. Procurement of civil works, goods and consultant services would be done following procedures consistent with Bank guidelines. For International Competitive Bidding (ICB), implementing agencies would use the stuidard bidding documents (SBDs) issued by the Bank, with such modifications as agreed by the Bank to be necessary for the purpose of the project. For Local Competitive Bidding (LCB), SBDs, satisfactory to the Bank, would be used. All procurement would be done by CONAFE except for civil works and for school furniture as follows: (a) procurement of civil works for warehouses would be done by CAPFCE; (b) procurement of civil works for infrastructure improvements would be done by CAPFCE for the CAPFCE model and by SEEs though municipalities for the community modality; and (c) procurement of furniture would be done by CAPFCE for CAPFCE infrastructure subprojects. For the purpose of comparing foreign and local bids for goods during ICB evaluation, domestic manufacturers would be allowed a margin of preference in accordance with Bank guidelines. The table on the next page shows project cost breakdown by procurement methods. Annex 16 shows administion and procurement responsibilities. - 38 - 1hble 3. PROCUREMENT METHODS BY CATEGORY (US$ million) Non-Bank Category ICB LCB Other Financed Total Civil Works (CAPFCE) -- 43.0 30.0 -- 51.9 (21.5) (15.0) (26.0) Civil Works (community) -- -5 53.2a' -- 74.3 (26.6) (37.1) Equipment and Furnitute 3.2 3.5 6.7k' -- 13.4 (3.2) (3.2) (6.1) (12.5) Vehicles -- -- -- 3.1 3.1 (0.0) (0-0) Education Books & Didactic 70.0 6.0 902-'& -- 85.2 Materials (63.0) (5.4) (8.3) (76.7) Student Educational Packages 80.0 13.0 12.7V -- 105.7 (40.0) (6.5) (6.3) (52.8) ming -- 106.3 -- 106.3 (106.3) (106.3) Trainig Materials -- 1.3 0.4b' -- 1.7 (1.3) (0.4) (1.7) Techmical Assistance & Studies -- 6.7 -- 6.7 (6.7) (6.7) 'Teacher and Supervisor - - 168.4d_ 168.4 Incentives, Incremental Salaries & (92.2) (92.2) Other Opeating Costs Tbtal 153.2 66.8 393.6 3.1 616.7 (106.2) (37.9) (267.9) (0.0) (412.0) Note: Figures in parentheses are amounts estimated to be financed by the Bank. a/ Diwet contracting with communities or local contractors. To be prcred through shopping. ¢' Includes US$6.1 million of direct contracting for proprietary materials. ' Includes US$14.9 million of direct contracting for mainan ecurrent costs. 4.6. Civil Works. Procurement for the construction of new facilities or the rehabilitation works on the existing network, including repairs and structural reinforcement, amounting to about US$126.2 million, would be conducted by: (a) CAPFCE through its state-level units; and (b) SEEs through municipalities, with technical assistance from CAPFCE, SEEs, and SOPEs to ensure adherence to technical standards and guidelines (paras. 3.20-3.23 and Annex 11). Both CAPFCE and the SOPEs in the project states have adequate administrative capacity and ample experience in managing school construction. For the CAPFCE modalit, although packaging would be encouraged, contracts are not expected to exceed US$10.0 million. Because most works would be small and scattered throughout rural communities in ten project states, ICB wuld not be practical and the works would be procured through: (a) LCB for packages of works costing US$300,000 or more but less than US$10.0 million, totalling about US$43.0 million; and (b) comparison of price quotations from at least three qualified suppliers (shopping) for contracts estimated to cost less than US$300,000, up to an aggregate of US$30.0 million; no other procurement method is - 39 - expected for the CAPFCE modality. For the community modality, works would be small and would not exceed US$50,000. Therefore, direct contracting would be allowed, provided that no competitive procedures can be reasonably applied, for works under US$50,000, up to an aggregate of US$53.2 million (plus US$14.9 million for maintenance recurrent costs). Direct contracting would be carried out based on agreements between the municipality and the community, the municipality and School Councils, or the municipality and local contractors. 4.7. Equipment and Furniture. Equipment and furniture for educational facilities and offices amount to about US$13.4 million. Approximately 24 percent of estimated costs, or US$3.2 million, would be procured by SEP/CAPFCE and CONAFE at central and state levels using ICB procedures satisfactory to the Bank. Packages of furniture and equipment valued at US$150,000 or more and less than $350,000, up to an aggregate of US$3.5 million, not expected to attract foreign bidders, would be procured using LCB procedures acceptable to the Bank. Furniture and equipment packages costing less than US$150,000 would be procured on the basis of comparison of price quotations from at least three qualified suppliers (local or international shopping), up to an aggregate of US$6.7 million. 4.8. Educational Books and Didactic Materials. Educational and printed books and materials amounting to about US$70.0 million would be procured through ICB by CONAFE at the central level for packages costing US$350,000 or more. Packages costing US$150,000 or more and less than US$350,000, up to an amount of about US$6.0 million, would be procured using LCB procedures acceptable to the Bank. For packages costing less than US$150,000, procurement would be done on the basis of price quotations from at least three qualified suppliers, up to an aggregate of US$3.1 million. Procurement of library books and printed materials which are proprietary and obtainable from only one source (for the Reading Corners, which draw from a selection of existing books, see para. 3.17) would be done through direct contracting with local and international publishers that hold the copyrights; the packages handled under this method seldom exceed US$10,000 and would not exceed an aggregate amount of US$6.1 million. In cases where authors hold the copyright, publishers would enter into an agreement with the author and printing would be done through direct contracting with the publisher. SEP has many years of experience developing books, selecting books from national and international markets, and publishing them. 4.9. Student Educational Packages. Educational supplies and materials would be purchased through ICB for packages costing US$350,000 or more up to a total of about $80.0 million equivalent, through LCB in packages costing US$150,000 or more and less than US$350,000 up to a total of about $US13.0 million, and through price quotations from at least three qualified suppliers for packages costing less than US$150,000 and up to US$12.7 million. 4.10. Training Materials. No ICB is expected for procurement of training materials. Training materials would be purchased through LCB in packages costing US$150,000 or more and up to $350,000 for a total of about US$1.3 million. Local shopping would be used for printing of training materials costing US$150,000 or less up to a total of US$0.4 million. - 40 - 4.11. Other Purchases Not Subject to Financing Under the Project. The purchase of four-wheel drive vehicles amounting to an estimated US$3.1 million would be financed by the Borrower. 4.12. Techmical Assistance, Training and Studies. Individual consultants and consulting firms carrying out technical assistance, studies or training would be hired following Bank Guidelines for consultants (August 1981) Bank Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency. During appraisal, the timetables for contracting the individual consultants for technical assistance and training and the studies under the proposed project component were reviewed and found satisfactory. The selection and appointment of consultants for studies and technical assistance would be consistent with the above mentioned Bank guidelines and would be done using standard documents satisfactory to the Bank. 4.13. Prior Review. Prior review would be required for all ICB and the first contract packages for all LCB and shopping for: (a) civil works by CAPFCE; (b) equipment and furniture; (c) educational books and didactic materials; and (d) non-durable educational student packages. Prior review would also be required for the first three contracts covering three different states for civil works for (i) infrastructure subprojects by CAPFCE, (ii) infrastructure subprojects under the community modality, and (iii) warehouses. All terms of reference for consultant contracts would be subject to prior review. Review of selection and hiring of consultants would occur as follows: (a) for individual consultants, in view of the substantial number of contracts expected in the project for technical assistance and training, contracts would be reviewed by the Bank when the value of the contract is US$50,000 or more or when so required under specific (sub)components. All contracts with individual consultants under this threshold would be subject to prior review and monitoring by NAFIN (limite aut6nomo), up to an aggregate amount of US$1.5 million; (b) for consulting firms, all documentation for contracts valued at US$100,000 or more would be reviewed ex-ante by the Bank, provided that the aggregate for contracts exempt from review would not exceed US$2.5 million. All other procurement and consultant documentation would be subject to selective random ex-post review at a ratio of not less than one in every ten contracts by the Bank and would be kept by CONAFE and CAPFCE at central and state levels for periodic review during Bank supervision missions. With the above procedures, the Bank's prior review would cover, in value aggregate, approximately 40 percent of Bank-financed contracts which, due to the decentralized nature of the project and the large number of individual contracts of relatively small value, is considered satisfactory. C. Disbursements 4.14. The proposed project would be implemented over a period of approximately six years and is expected to be completed by June 30, 1999 and closed by December 31, 1999. The proceeds of the loan would be disbursed during a six-year period as follows: (a) civil works, 50 percent of expenditures for new construction and for rehabilitadon of existing educational facilities; (b) equipment and furniture, 100 percent of foreign expenditures, and 90 percent of local expenditures; (c) durable didactic materials (including printed educational materials), 90 percent of expenditures; (d) non-durable student packages, 75 percent of total expenditures until an aggregate amount of US$25.0 million are reached, thereafter at a rate of 50 percent until an aggregate amount of US$45.0 million are reached, and at a rate of 25 percent for the -41 - remainder; (d) teacher and administrators training, 100 percent of expenditures; (e) technical assistance, studies, public campaigns, and staff training, 100 percent of total expenditures; (f) teacher and supervisor incentives, at a rate of 75 percent of total expenditures until an aggregate amount of US$20.0 million is reached, at a rate of 50 percent until an aggregate amount of US$50.0 million is reached, and at 25 percent for the remainder; (g) incremental operating costs, including salaries, travel allowances for project supervision, operation and maintenance of buildings, furniture and equipment, and office supplies and materials at a rate of 75 percent until an aggregate amount of US$15.0 million is reached, at a rate of 50 percent until an aggregate amount of US$25.0 million are reached, and at a rate of 25 percent for the remainder (Annex 18). The Bank's contribution for incremental recurrent costs, on a declining basis, would go mostly toward student packages, incentives for teachers and supervisors, and a portion of project administration; the sharply declining percentages would enhance the sustainability of the project beyond Bank financing within the Government's budgetary allocations.' Retroactive financing of up to US$6.0 million equivalent (one percent of project costs) would be provided to help cover, eligible start-up expenditures for technical assistance, mostly for technical input and bidding specifications for educational materials and civil works and for education studies, made on or after October 31, 1993. 4.15. Proceeds of the proposed loan would be disbursed against expenditures that would be presented to the Bank and fully documented for civil works contracts of US$2.0 million or maore, for goods contracts of US$350,000 or more, and for consultant contracts of $50,000 and $100,000 for individuals and firms, respectively, subject to prior review as per pam. 4.13. Claims for expenditures under contracts below those amounts and other expenditures not covered by a contract, such as work incentives, teacher and staff training costs, incremental salaries, travel allowances, etc. would be disbursed against presentation of Statements of Expenditure (SOEs), for which the supporting documentation would be retained by the SEP, CONAFE, CAPFCE, and each SEE for periodic inspection by the Bank and by external auditors. In order to facilitate project implementation, a special account in U.S. dollars of US$25.0 million would be established at the Banco de Mexico. Withdrawals from the Special Account would be supported by the required documentation at the exchange rate prevailing on the date of expenditure. Separate project accounts would be established and monitored by the PCU in CONAFE and the SPCUs in each of the ten states and in the four states that would have institutional strengthening only. At negodations. the Go&ernment provided assurances that the Bank. in consultation with the Government. could suspend disbursement to a project state which is non-ertfwming under its legal obligations (par. 7.1(k)). DL Accounts and Audits 4.16. The PCU would maintain records and accounts adequate to reflect, in accordance with sound accounting practices, the resources and expenditures in connection with the execution of the project. Central records would reflect the resources and expenditures in connection with the execution of the entire project. Other sets of records, one for each state, would be maintained by the respective SPCUs, under supervision by the central PCU and would reflect the resources and expenditures in connection with the execution of the project in or for the respective project state. Data from these state cost centers would be sent to the central PCU for consolidation purposes. At negotiations, the Government provided assurances that - 42 - CONAFE would: Q) have the records and accounts fincluding all SPCU accounts and technical supervision reports for infrastructure subproiects) for each fiscal year audited by indeperdent and qualified auditors. in accordance wvith generally accepted auditing standards and procedures. and with the specific current understanding with the Mexican authorities: (lii furnish to the Bank. no later than six months after the end of each 3ear. a certifed coey of the agreed audit reports: (Wii) furnish to the Bank such other information concerning tlhe records and accounts as well as the audit as the Bank would from time to time reasonablyi request (para. 7.1(1)). For all expenditures with respect to which withdrawals from the Loan Account were made on the basis of statements of expenditure, and for all expenditures with respect to which withdrawals were made from the Special Account, SEP and CONAFE would provide to NAFIN all records and accounts necessary to allow the timely performance of its obligations, and to the independent auditors, both the records and the supporting documentation. V. PROJECT MANAGEMENT AND SUPERVISION A. Project Inplementation 5.1. Project Preparation. The primary responsibility for project preparation has rested with CONAFE, which has been gathering valuable experience with Bank projects through the on-going PARE and PRODEI, with technical support from SEP's Undersecretariat for Basic Education and from the SEEs. In particular, CONAFE has been able to draw on the experience and preliminary findings under PARE (paras. 2.42-2.54), and has been instrumental in shaping the project to conform with and be complementary to the overall Govermment strategy for the education sector. At the state level, SEEs will have benefitted from two years' experience of operating a decentralized education system by the anticipated start of implementation. Technical assistance was provided under grants financed by the Japanese Grant Fund for the field preparation of various project components. Detailed information was assembled on target populations for the satisfactory selection of the 511 project areas. 5.2. Project Readincss and Implementatiors. Project preparation has proceeded to an advanced state of readiness for implementation. The teacher training courses have already been designed and would use the existing administrative capacity at PAM, SEP's teacher training program (paras. 3.9-3.11). Didactic materials and student packages were determined using CONAFE's extensive micro-planning experience and would benefit from the distribution experience under PARE (paras. 3.15-3.16). For the Reading Corners, UPE, the originator of this proven program, has completed the preliminary selection of books and CONAFE, which would implement it, has extensive experience in book procurement (para. 3.17). A satisfactory participatory methodology for design of indigenous textbooks has already been developed and field tested by DGEI and a team of specialists under PARE; technical groups which would coordinate the selection and preparation of native language texts have already started to assemble (paras. 3.18-3.19). Infrastructure construction/ rehabilitation subprojects would be carried out according to a detailed Operational Manual, a draft of which was discussed and agreed at negotiations, and receipt of a satisfactory final version is a condition of loan effectiveness (para. 3.23). Prototype designs for new and rehabilitated schools have been reviewed and found satisfactory, and civil works would start - 43 - after ex-ante reviews in August and October 1994 of the schools selected for infrastructure improvement (paras. 3.20-3.23). The selection criteria for the management training program was discussed and agreed during negotiations, and satisfactory terms of reference and consultant short lists are already in place for the process evaluation and management information systems and the education studies (paras. 3.25(a)-(c)). The schools in which teacher incentives would be granted during the first project year have already been selected and were reviewed and agreed during negotiations (paras. 3.26-3.28). The content of training programs for supervisors (paras. 3.25(a)-(b)) and the location of supervision offices (para. 3.29(b)) have been reviewed and found satisfactory. Nine of the ten project states have submitted plans for distribution and inventory of textbooks and educational materials (para. 3.30). The project's General Coordinator has been appointed, with excellent experience in education and management (especially micro-planning), and the PCU at CONAFE stands ready to benefit from the PARE experience due to the proposed integrated PARE-PAREB PCU structure. Many qualified professionals involved in the preparation of the project are expected to be appointed to the PCU. At the state level, a number of highly qualified individuals were identified and have been actively involved in the preparation of the project; it is also etpected they will be retained to staff the SPCUs. The staffing plans for the PCU and SPCtJs were discussed and agreed during negotiations, and the appointment of key personnel, satisfactory to the Bank, would be a condition of loan effectiveness (paras. 3.31-3.33 & Annex 16). To ensure timely and efficient project implementation, various start-up activities, including those related to technical and bidding specifications for educational materials and civil works and those related to the education studies, have been undertaken and would be eligible for retroactive financing (para. 4.15). 5.3. Project Monitoring. Project implementation would be monitored continually by CONAFE and the state SEEs and analyzed in preparation for the annual and mid-term reviews. To assist in the monitoring of project implementation, a comprehensive and well- focused list of monitoring indicators, matched to individual states, would be used; these monitoring indicators would include process and budget indicators and some proxy measurements for quality improvement (Annx 19). At negotiations. the vernent confirmed agreement on the set of overall and state-specific project oroeress and performance inicators to be monitored duinng project implementation and presented and reviewed during the annual and mid-term revews. satisfactorM to the Bk (para. 7. 1(m)). 5.4. Annual Implemeon Reviews. The annual reviews would take place in October of each year, starting in 1995, and would: (a) analyze the previous year's performance and budget execution against project objectives and sector policies outlined in the Govermnents policy letter; (b) analyze the proposed work plan and budget for the following year; (c) discuss adjustments to be made in project's implementation schedule; (d) analyze the results of the process evaluation; and (e) assess changes in budgetary allocations at the state level. The proposed work plan and budget for the following year would have to be previously defined at the central and state levels and contain a detailed description of targets and planned activities. Plans for civil works would specify type and schedule of construction and provide evidence of ownership or donation of land and of adequate staffing. At negotiations, the Government provded assurances that SEP/CONAFE and SEEs would conduct, ioit with the Bank. the Federal Finance and Public Credit Secretariaat,8' and NAFIN annual ' Secrera de Hacienda y Crilto PNblco, SHCP. -44 - DOrLect implementation reviews by October 31 of each year. starting in 1995 (para. 7. 1(n)). At negotiathons. the Government provided assurances that the PCU and SPCUs would Prepare and present to the Bank annual vrogress reports on the implementation of the project and plans for the next Year. with targets and budgets in each progect state. by September 30 of each year. starting in 1994 (para. 7.1(o)). 5.5. Mid-Telm Review. A comprehensive mid-term review would be conducted in October 1996 to assess project performance and initial impact in light of project objectives and Govermnent policies in addition to review activities normally covered under annual implementation reviews. The mid-term review would have a strong focus on the formulation and carrying out of sectoral policies, particularly for institutional strengthening at both central and state levels and inter-institutional cooperative arrangements. A more detailed description of the annual and mid-term reviews is in Annex 20. The PCU would be responsible for hiring consultants and preparing the final terns of reference for the mid-term review, based on experience accumulated under the project and the final or preliminary results of studies, satisfactory to the Bank, and for preparing the report with recommendations. At e_tain th Gt govded assunces that: ) terms or reece f the mid-term reie wl be reared and presented to the -Bank for riew by March 31. 1996: (ii) an in-deeth mid-term mrew will be conducted in October 1996. by SEP/CNAEand SEEs. ointy with the Bank. SH C_P aNd IN. under terms of reeence __OAE ad M_ _ __ ___e satifathory to the Ban!k. to assess roe-ct performance and initial iact: and ti-i on t_he basis of this revew, action plans. satisfactoay to the Bank. wyould be iitiated b& Januaiv 31. L997(para. 7.1(p)). P. Project Supervision 5.6. The proposed project would require close and intensive supervision, particularly in the initial years. Bank missions would visit each participating state at least once a year during the first two years of the project. For each of the first two years, supervision requirements are estimated at about 20 staff-weeks of headquarters staff. From the third year on, supervision requirements would decrease to about 16 staff-weeks of headquarters staff each year. Local supervision would play an important role, particularly for supervision of the civil works components; it is calculated that an additional ten staff-weeks per year of local supervision would be required. A supervision plan and strategy is included as Annex 21, and an overall project implementation schedule is in Annex 22. C Project Launch Seminar 5.7. To facilitate project start-up activities and familiarize new PCU and SPCU staff and SEE project-related staff with the project and with Bank procedures and bidding documents, a project launch seminar would be conducted early during the project. At negotiantons. the Government confirmed agreement that i" vould conduct. jointlv with the Bank. a project launch seminar within tw, months of loa. efectiveness which will include the following agenda: (i) rvew of implementation plans and monitonng and evaluation activities: and (ii) vi of Droject manaement rquirements and Bank pmrcedures for procurement. disbursements. auditinf and hirng of consul as (a. 7.1(q)). - 45 - VI. PROJECI BENEFIS AND RISKS A. Project Benefits 6. 1. The proposed project would support the Goverunent's programs for improving both the quality and efficiency of primary education, focusing on ten states with high incidence of poverty and low education indicators. The level of cognitive achievement of children as well as their probability of completing the prinary education cycle are expected to increase. Benefits would thus consist of a higher rate of human capital accumulation contributing to economic development. They would also consist of a more equal distribution of economic opportunities among Mexican children. Since the entire project would focus on the poorest states in Mexico, the compensatory Basic Education Program, supported by this and previous Bank-financed projects would contribute to the Governmentfs goal of redressing inequity- in primary education. .4t negotiations. the Government provided assurances that progress in the coapensatorj Basic Education ProRram and in the allocation af federal and state Rovernment educational budgets in the proiect states will be reviewed during the annual and mid-term reviews, with a view toward increasing the share f resources allocated to the voorer states or pDimary educaion (para. 7.1(r)). The project wold improve the efficiency of public resource use by reducing repetition and dropout rates and by increasing the amount of mvestments with high social rates of returm. Teachers, supervisors and principals would improve their productivity through systematic on-the-job training, and would contribute to the qualty and efficiency of the primary education system in the selected states. Institutional strengthening would contribute to a better allocation and increased productivity of human resources within the sector, and to an enhanced capacity to evaluate and monitor educational policies and programs. Additional benefits are expected for female beneficiaries, as research has demonstrated that increasing the level of education of women has a significant positive effect on the health sttus and educational attainment of their children and contributes to lower fertility. The impact may be particularly significant for girls from the indigenous population. Altogether, approximately 1.5 million primary school children, 53,000 teachers, and 1,140 supervisors would raise their human capital. B. Impact on Women 6.2. Approximately half of the children who would benefit from an improved quality of educational services in the project area would be girls. Their opportunities to have access to higher levels of education and better work opportnities would thus improve. Further benefits can be expected as research has shown that increasing the level of education of women has a significant positive effect on the health status and on the educational attainment of their children and contributes to lower fertlity. The impact may be particularly significant for girls from the indigenous population. C Environmental Impact 6.3. The project would have an indirect positive impact on the environment through greater emphasis on enironmental concerns in teacher training activities and in the content of educational materials and through a study on envmironmental education. The project would have no direct enviromuental effects and is classified as C - 46 - D. Project Risks 6.4. The main project risks lie in the complexity of the implementation arrangements among a relatively large number of institutions and entities within a still-evolving decentralization process. More specifically, risks are associated with possible delays in project execution due to the slow improvement of institutional capacity of implementing agents at the state and, where applicable, community levels. To mitigate risks associated with lack of inter-institutional coordination, TACs composed of representatives of the various implementation agents would be formed at both central and state levels to ensure adequate communication and cooperation. The risk of weak institutional capacities is addressed under the project through technical assistance in key areas of management such as planning, information, and evaluation. The project would benefit from CONAFE's experience at the central level, which is currently implementing the first Primary Education Project as well as the Initial Education Project and would easily transfer successful operational expertise as well as familiarity with Bank processes and procedures to the proposed project. By the project's anticipated start, SEEs would have had two years of operating a decentralized educational system. At the local level, participation of School Councils (formed under the 1993 LGE) would be phased in to allow for adequate training and adaptation of experience from similar organizations already operating in different sectors. The risks identified during early project preparation posed by the disparity in salaries for federal and state teachers (who would now all belong to the state system) have been practically elinminated: salaries have been leveled in all but three of the participating states, and these three states are scheduled to complete this process in 1994 (para. 2.19). E. Program Objective Category 6.5. The project would support a program of targeted interventions. The project would support the national policy of compensation for regional disparities in education, which was spelled out in the 1993 LGE. Pro,ect interventions would be targeted not only to ten of the poorest states, but also to the poorest areas therein. The proposed project and first Primary Education Project together would cover the 14 poorest states in the country. Most municipal capitals and major urban areas within the selected regions have been excluded. VII. AGREEMENIS REACHED AND RECOMMENDATION 7.1. At negotiatons: (a) the Government presented a final Policy Letter for the education sector (pam. 2.32); (b) the Government provided assurances that by October 31 of each year, starting in 1994, the Government would present: (i) a list of schools and/or classrooms to be constructed/rehabilitated in the next year; (ii) evidence that land is available to the SEEs for civil works; (iii) evidence that adequate staffing plans, including budgetary allocations thereto, have been iinalized; and (iv) evidence that local School Councils have been created and are operational (para. 3.21); -47 - (c) CONAFE presented to the Bank a satisfactory draft Operational Manual for infrastructure subprojects (para. 3.23); (d) the Government presented the selection criteria for the management training component, specifically for the overseas training fellowships, satisfactory to the Bank (para. 3.25(a)); (e) the Government provided assurances that the process evaluation system would be fully operational no later than December 31, 1994 (para. 3.25(b)); (f) the Government provided assurances that: (i) tests, questionnaires, and administrative manuals for the testing of primary education students would be presented for Bank review no later than December 31, 1995; and (ii) it would carry out the testing in June 1996 and analyze and disseminate the results in a manner satisfactory to the Bank (para. 3.25(b)); (g) the Government confirmed agreement on the final terms of reference, implementation schedules, and consultant short lists for the education studies, satisfactory to the Bank (para. 3.25(c)); (h) the Government confirmed agreement on the list of target schools and localities selected where teacher incentives will be granted for the first year of the project and that the selection of schools for subsequent years of the project will be discussed and agreed ex-ante with the Bank at the annual and mid-term reviews (pam. 3.27); (i) the Government confirmed agreement on the staffing plan and terms of refeence for key personnel in the PCU and SPCUs and on the composition of the TACs at both central and state levels (pam. 3.32); (;j) the Goverrnent confirmed agreemen on the final form and content of the participation agreement and tecbnical annexes for carrying out activities under the project to be signed with each of the project states (para. 3.33); (k) the Govement provided assurances that the Bank, in consultation with the Government, could suspend disbursement to a project state which is non- performing under its legal obligations (pam. 4.16); (1) the Goverment provided assrances that CONAFE would: (i) have the records and accounts (inchlding all SPCU accounts and technical supervision reports for infrastructure subprojects) for each fiscal year audited by independent and qualified auditors, in accordance with generally accepted auditing stndards and procedures, and with the specific current understanding with the Mexican authorities; (ii) furnish to the Bank, no later than six months after the end of each year, a certified copy of the agreed audit reports; (iii) firnish to the Bank such other intrmation concerning the records and accouns as well as the audit as the Bank would from time to fime reasonably request (par. 4.17); - 48 - (m) the Govenmment confirmed agreement on the set of overall and state-specific project progress and performance indicators to be monitored during project implementation and presented and reviewed during the annual and mid-term reviews, satisfactory to the Bank (para. 5.3); (n) the Government provided assurances that SEP/CONAFE and SEEs would conduct, jointly with the Bank, the Federal Finance and Public Credit Secretariat (SHCP), and NAFIN annual project implementation reviews by October 31 of each year, starting in 1995 (para. 5.4); (o) the Government provided assurances that the PCU and SPCUs would prepare and present to the Bank annual progress reports on the implementation of the project and plans for the next year, with targets and budgets in each project state, by September 30 of each year, starting in 1994 (para. 5.4); (p) the Government provided assurances that: (i) terms of reference for the mid- term review will be prepared and presented to the Bank for review by March 31, 1996; (ii) an in-depth mid-term review will be conducted in October 1996, by SEP/CONAFE and SEEs, jointly with the Bank, SHCP, and NAFIN, under terms of reference satisfactory to the Bank, to assess project performance and initial impact; and (iii) on the basis of this review, action plans, satisfactory to the Bank, would be initiated by January 31, 1997 (para. 5.5); (>) the Government confirmed agreement that it would conduct, jointly with the Bank, a project launch seminar within two months of loan effectiveness which will include the following agenda: (i) review of implementation plans and monitoring and evaluation activities; and (ii) review of project management requirements and Bank procedures for procurement, disbursements, auditing and hiring of consultant (para. 5.7); and (r) the Government provided assurances that progress in the compensatory Basic Education Program and in the allocation of federal and state government educational budgets to project states will be reviewed during the annual and mid-term reviews, with a view toward increasing the share of resources for primary education allocated to the poorer states (para. 6.1). 7.2. As conditions of loan effectiveness: (a) the Government will present, satisfactory to the Bank: (i) a finalized Operational Manual for infrastructure improvement; (ii) a handbook for self- help construction; and (iii) a handbook for building and fiurniture maintenance (pama. 3.23); (b) CONAFE will present evidence that the central PCU is staffed satisfactorily in accordance with the staffing plan agreed at negotiations (para. 3.32); and - 49 - (c) the Government will present evidence that for at least four project states: (i) participation agreements, including technical annexes, will have been signed; and (ii) the respective SPCUs will have been satisfactorily staffed (pam. 3.33). 7.3. As conditions of disbursement: (a) for infrastructure subprojects, the Government will present terms of reference for technical supervision of infrastructure subprojects under both the CAPFCE and community participation models, satisfactory to the Bank (para. 3.23); and (b) for disbursement to each project or PARE state, (i) participation agreements including technical annexes will have been signed, and (ii) for project states, the SPCU will have been staffed, satisfactory to the Bank (pam. 3.33). 7.4. Recommendation. Subject to the above conditions, the proposed project would constitute a suitable basis for a Bank loan of US$412.0 million equivalent to NAFIN, with the guarantee of the United Mexican States, to be repaid over a period of 15 years, including 5 years of grace. Retroactive financing of up to US$6.0 million equivalent would be provided to help cover eligible start-up expenditures made on or after October 31, 1993. - 50 - [This page left blank] - 51 - MEXICO SECOND PRIMARY EDUCATION PROJECr ANNEXES 1. Comparative Education Indicators 2. Primary Education Efficiency Indicators 3. Educational Expenditures 4. Government Policy Letter 5. Decentralization of Education Budget 6. Marginality Ranking and Project Areas 7. Indigenous Populations 8. Participating Municipalities and Beneficiaries by Project State 9. Financial Implications of Extension of Basic Education 10. Teacher Training 11. Physical Infrastructure and Distribution Network 12. Strengthening of Planning and Policy Analysis 13. Terms of Reference for Process Evaluation & Information Systems 14. Terms of Reference for Studies 15. Teacher Incentives by Project State 16. . Project Management and Flow of Funds 17. Costs and Financing 18. Project Disbursements 19. Monitoring Indicators 20. Annual and Mid-term Reviews 21. Supervision Plan 22. Project Implementation Schedule 23. List of Documents in Project File -53 - ANNEX 1 COMPARATIVE EDUCATION INDICATORS COMPARATIVE EDUCATION INDICATORS % of Age Group Enrolled Primary Primary Primary Pupils Primary (1990PW Net Pupil/ Repetition Reaching Unit Cost Primary Country P a EnrollMY Teacher Ratei - Grade 4k' as ratio of Unit Prtmary Secondary (%) Ratiof GDP per Costs' lbtal |Female lotal mle 1990 1990 (%) (%) Capita , . _ _ _ _ . _ ___ Argentina 106 19 9 73 0.011 142 Bolivia 82 78 34 31 82 25 53 0.12| 73 Brazil 108 39 88 23 19 59 0.06 214 Chile 98 97 74 77 86 29 - 13 97 0.10 203 Colombia 110 111 52 57 73 30 12 73 0.05 62 Costa Rica 102 101 42 43 87 32 11 90 0.90 175 Dominican Republic 95 96 47 17 62 0.04 25 Ecuadorb' 117 116 56 118 31 6 74 0.09 97 El Salvador 78 78 26 26 70 40 8 66 0.11 63 Guatemala 79 47 4 60 0.04 35 Hondurms 108 109 16 61 0.11 115 Jamaica 105 105 60 63 99 37 99 0.08 127 |Mexico 112 110 53 | 53 981 31 9 [ 84[ 0.04 114 Nicaragua 98 101 38 441 75 33 9 84 Panama 107 105 59 62 92 20 20 61 0.12 257 Paraguay 107 106 30 30 95 25 9 77 0.03 50 Peru 126 70 95 281 14 82 0.01 23 Uruguay 106 106 77 231 97 0.05 26 Venezuela 92 94 35 1 411 61 23 10 86 0.09 13 Note: Many countries use the ages of 6 to 11 for primary school enrollment cohort; however, in some countries primary school ages include children of other ages as well. In this instance, enrollment will exceed 100%. 3! World Development Report, 1993 P Social Indicators of Develooment 1991-1992, except fbr Mexico where the official national average is reported. Independent estimates report higher (adjusted) estimates; while comparative (adjusted) studies report lower estimates. s' In constant 1990 US$. In ImDrovinm the Ouality of Primary Education in Latin America: Toward the 21st Centurv, LAT Regional Studies, 1993. -54- ANNEX 2 PRIMARY EDUCATION EFFICIENCY INDICA41ORS EFFICIENCY INDICATORS FOR PRIMARY EDUCATION BY STATE (191-1992) States Ranked by Completion Dropout Repedtion Unit Cost Educational Index Rate Rate Ratea Rankingb-' per Studentce NATIONAL AVERAGE: 58.1 4.6 9.1 493.4 Primary Education I States (average): 44.8 7.9 13.2 525.8 1. Chiapas 31.0 13.9 13.0 3 488.2 2. Guerrero 40.2 8.1 13.6 2 586.2 3. Oaxaca 43.8 6.4 14.9 1 425.9 4. Hidalgo 64.0 3.1 11.2 9 470.6 Primary Education II States (average): 52.6 5.5 10.2 473.7 1. Veracruz 45.0 6.9 11.3 8 503.5 2. YucatAn 44.4 6.5 11.8 6 497.0 3. Campeche 44.6 6.0 11.3 7 546.7 4. Durango 56.2 7.2 8.6 16 655.0 5. Tabasco 53.2 6.1 10.0 13 403.0 6. Michoacdin 50.3 3.7 12.2 4 427.3 7. Puebla 58.0 4.9 9.7 14 396.2 8. Jalisco 57.9 5.0 6.6 26 426.1 9. Guanajuato 59.4 4.7 9.1 25 391.7 10. San Luis Potosi 57.4 4.1 11.2 10 490.7 Non-Project States (average): 68.1 2.9 7.5 Da. 1. Sinaloa 56.7 5.2 8.2 18 517.9 2. Zacatecas 57.3 5.3 10.1 12 491.8 3. Nayarit 58.2 4.7 6.9 25 574.9 4. Chihuahua 59.2 4.6 7.3 21 590.3 5. Colima 58.1 4.8 7.2 22 584.1 6. Sonora 64.0 3.7 8.3 17 543.7 7. Quinta Roo 62.9 1.3 11.8 5 546.3 8. Queretaro 68.6 2.2 10.2 11 381.9 9. Tamaulipas 68.7 3.4 6.4 27 504.5 10. Mexico 69.6 2.3 7.7 19 466.9 11. Baja California Sur 69.3 1.9 7.2 23 781.4 12. Coahuila 72.3 2.5 6.1 29 620.5 13. Nuevo Le6n 75.4 2.9 5.5 31 517.2 14. Morelos 78.3 2.1 6.0 30 420.6 15. Baja California 76.5 0.6 7.6 20 687.5 16. Tlaxcala 74.3 1.4 6.2 28 531.3 17. Aguascalientes 74.3 1.1 7.0 24 495.0 18. Distrito Pederal 82.4 1.5 4.6 32 575.4 Source: SEP and Bank staff esthiates, 1993. Y Ranking is based on an index of the average percentage deviation from the national average for the three indicators. bI 1990 N$. -55 - ANNEX 3 EDUCATIONAL EXPENDITURES ibble 1. RECENT TRENDS IN TOTAL EDUCATION EXPENDITURES (1982-1991) Olher Total Local & Total Totan Other Total (State & Total Current Constant As% of Year SEP Secretariats Federal Municipal) Private Pesos Pesos GDP (miillions ofl l (%) (%) (%)~M m 1982 Pe-sos)l 1982 368,608 46,819 80.6 14.3 5.1 515,327 515,327 5.3 1983 488,667 64,400 82.0 13.4 4.6 674,436 354,221 3.8 1984 826,712 101,510 74.5 16.6 8.9 1,245,464 411,044 4.2 1985 1,332,034 148,510 77.1 15.1 7.8 1,918,991 404,168 4.1 1986 2,112,674 271,339 76.3 14.3 9.4 3,125,720 377,731 3.9 1987 5,034,274 484,806 78.3 12.0 9.7 7,046,794 375,179 3.7 1988 10,120,060 956,954 80.0 11.0 9.0 13,842,634 351,711 3.5 1989 12,998,225 1,754,249 76.5 14.9 8.6 19,281,682 390,768 3.8 1990 17,662,556 3,964,136 74.6 17.1 8.3 29,015,496 455,617 4.3 1991 24,910,704 5,199,639 78.2 16.3 5.5 38,498,782 498,876 4.5 Source: SEP, 1993. Note: All figures in millions of nominal pesos except where stated. Table 2. RECENT TRENDS IN TOTAL SEP EXPENDITURES: BY SELECTED LEVELS OF EDUCATION (1982-1991) (Percentage of Total) Primary Lower Upper Techncal/ Other Total Total Year School Secondary Secondary Vocational University Education Infra- Misc.h/ Nominal Constant (Grades 1-6) (Grades 7-9) (Gr. 10-12) (College) Levels a/ structure Pesos Pesos 1982 30.4 13.1 10.2 6.2 10.4 12.2 6.8 10.7 515,327 515,327 1983 25.0 12.7 9.8 6.1 12.5 13.2 8.2 12.5 674,436 354,221 1984 22.5 12.3 7.1 4.4 9.9 16.8 6.6 20.4 1,245,464 411,044 1985 22.2 13.7 9.7 4.6 10.2 17.6 6.0 16.0 1,918,991 404,168 1986 22.7 12.9 13.8 4.9 11.4 18.3 4.8 11.2 3,125,720 377.731 1987 24.1 15.0 10.7 4.2 13.0 19.9 4.0 9.1 7,046,794 375,179 1988 23.0 14.9 11.7 5.5 12.3 18.4 4.6 9.6 13,842,634 351,711 1989 21.0 15.0 12.4 6.5 9.7 18.5 3.8 13.1 19,281,682 390,768 1990 23.0 16.0 10.6 5.5 9.9 18.3 4.0 12.7 29,015,49 455,617 3 1991 23.3 15.7 9.6 5.0 10.1 18.8 4.0 13.5 38.498,782 498,876 2 Source: SEP, 1993. - Note: All figures in percentage of millions of nominal pesos. W Other includes other levels of education such as initial and post-graduate. b' Miscellaneous includes culture, recreation, sports, and planning and administration activities at the central level. 41 ffl ~Table 3. SEP ANNUAL ENVESTMENT & RECURRENT EXPENDITURE BY PROJECT STATE (1987-1991) (Millions of Current Pesos) 1987 19818 19819 199019 PQSt Recurnt invest- Total icRrwmat Invest Total Recurrent lIvest- -oa Recurrent Invest Tota Recunent Inves- Tota National ~ ~ ~ et en ea wn * Average 76,29.5 95.7 76,390.21 146,582.8 253.5 146,83.3 206,945.0 216.0 207161.0 262,178. 57.3 262,755.8 347,756. 884.2 348,640.5 Camnpechie 29.3079. 37.1 29.345.4 56,176.9 113.3 56,290.2 80,247.5 95.3 80,342.8 98,228.11 301.9 98.53U. 132,648.2 511.4 133.159.6 DUMngO 69,733.9 68.2 69,802.1 129,587.1 167.3 129,754.3 191,030.9 183.3 191,214.2 210,046.1 482.3 210,528.4 259,125.1 726.8 259,851.9 Guamjiuaa) 86,055.5 191.3 86,246.8 179,671.3 256.2 179.927.j 235,993.1 224.3 236.217.4 307,871,.3 609.9 308,481.2 410,011.8 983.7 410,995.5 Jalisco 107,107.5 144.5 107,252.0 198,822.6 505.8 199,328.4 290,477.9 374.5 290.852.4 404,199.0 1,045.5 405.244.5 548,951.7 1,437.7 550,389.4 Miclioac4ia 126,836.3 108.3 126,944.~ 242,743.3 349.9 243,093.2 335,834.1 306.5 336,140.6 430,401.2 549,9 430,951.1 590,177.0 1,379.3 591,556.3 Puebla 95,397.6 118.7 95,516.31 186,292.0 365.1 186,657.11 265,445.3 306.6 265,751.9 343,820.1 738.3 344,558.3 470,428.5 134.2 471,772.7 &L. Pbrosl 75,872.7 78.3 75,951.0 147,212.9 233.6 147,446.5 207,438.6 203.7 207,642. 265,609.q 765.4 266,374.4 358,175.5 1,022.8 359,198.3 Takbasco 59,677.3 165.9 59,843.2 111,918.5 172.0 112,090.5 151,034.51 141.0 151,175.5 188,104.4 518.5 188.622.9 260,858.81 893.7 261,752.5 Veracrz 175,805.0 281.8 176,086.8 343,666.1 835.3 344.501.6 511,093.7 691.4 511,785.2 644,815.3 1.118 645,934.2 855.553. 1,635.9 857,189.6 Yucathn 47,045.8 60.9 47,106.7 91,129.6 163.2 91,292.8 124,947.7 136.0 125,083.7 154,950.31 302.6 155,252.9 193,225.2 575.2 193,8004 Project 872,839.7 I,2550 874,094.5 1,687,220.4 3,161.6 1,690,382.0 2,393,543.4 2,662.6 2,396,20.0 3,048,044.7 6,433.2 3,054,477.9 4,079,155.6 9,30017 4,088,456.3 Area Total Totalz National 2,36,130 2,967 2,368,097 4,544,067 7,858 4,551," 6,415,296 6694.5 6,421,991 8,127,532 17,897 8,145,4291 10,780,447 27,409 10,807,856 Proect states 36.9% 42.3% 36.9% 37.1% 40.2% 37.1% 37.3% 39.8% 37.3% 37.S% 35.9% 37.5% 3.% 33.9% 37.8% sare of iTota Souwce: SEP and Bank staff estimaes, 1993. Table 4. EDUCATION EXPENDITURES By pROJECT sTATE (1988l199) 1988 199 MO99 19 ProJect States Federal IState IPrivate Total IFederalI State Private Total Fedenal State Private Tota Federa State Private Total National Average 76.31 15.0 8.7 13,842.61 75.6 15S.8 8.61 19,281.7 76.0 16.0 8.0 29,015.5 78.2 16.3 5.5 38,498.8 Campeche 87.61 11.4 1.0 98.51 84.3 14.8 0.9 145.6 83.9 15.2 0.9 197.555 88w9 10.5 0.6 270.9 DuiaWg 76.8 IS.9 7.3 248.1 78.9 14.2 6.9 346.2 75.2i 16.7 8.11 428.712 78.9 15.31 5.8 535.0 Guanajuap 69.0 23.0 8.0 410.7 72.4 19.41 8.2 527.4 71.3 19.9 8.81 717,205 76.7 17.41 5.9 955.5 Jalisco 58.4 23.6 18.0 794.81 59.1 24.3 16.6 1.133.6 58.8 22.7 18.8 1,454.062 61.7 23.5 14.8 1,640.6 Michoacan 82.71 1 1.8 5.5 460.91 83.5 11.01 5.5 607.6 78.8 15.41 5.8 829,8931 83.4 12.8 3.8 1.127.7 Puebla 75.01 16.0 9.0 481.81 76.6 14,8 8.6 662.6 75.4 15.01 9.6 865.911 83.4 1031 6. 'I 1.163. 1 00 San Luis 'Potosi 85.0 9.0 6.0) 273.31 84.9 9.3 5.81 373.2 84.7 8.9 641 491.461 90.8 4.9 4.3 643.1 Tibbasco 67.71 28.9 3.4 239.9 72.6 24.0 3.4 316.9 70.4 26.0 3.61 442.126 79.6 18.4 2.0 691.9 Wmcrumz 64.71 29.6 5. 45.6 66.5 28.11 5.4 1.174.9 63.71 30.5 5.81 I.S84,403 72.4 23.61 4.0 2,020.7 Yucata 72.11 22.2 5.7 197.81 71,7 22.9 5.41 276.0 79.21 14.2 6.6 327.2 80. 1 1571 4.2 457.2 Project Area Total 73.9 19.1 69.6 4,051.4 79.1 19.6 68.9 5464.0 74.1 18.5 74.4 7,338.5 79.6 15.2 51.7 9,505.8~ National Tota Current Pawo) 11,077.0 2,170.9 1,253.1 13,84.6 14,565.5 3,415. 1,651.3 19,M81. 22,182.5 4,763.1 2,401. 29,01.5 30,110.3 6,258.4 2,130.0 38,4988 -01 ~ ~0 Project Sakte's Share of National ITotal 25,7% 393 277% 28.1% 27A.4 32.7% 277%, 28.9% 23.2% 31,9%, 27.7% 25.1%, 24.2% 26.1% 27.7%1 24.7% ~ Soutte: SEP and Bank staff esdtemas, 1993. > 59- ANNEX 4 POLICY LETTER LETIER OF SECIOR POLICIES (TRANSLATION FROM SPANISH TEXT) SECRETARIAT OF PUBLIC EDUCATION SUBSECRETARIAT OF EDUCATIONAL COORDINATION Letter No. Mexico, D.F., March 4, 1994 Mr. Edilberto Segura Director, County Department II Latin America and the Caribbean Region World Bank Washington, D.C. In accordance with World Bank requirements for financing the "Progam to Reduce Failure Rates m Basic Education (PAREB), I am pleased to inform you about the main points of the National Educational Policy with respect to basic education: A. GENERAL POLICY 1. Over the past five years, the Mexican Government has carried out structural reforms aimed at: redefining the role of the State; modernizing the economy and creating conditions to encourage sustained growth of productive capital and to respond effectively to the most pressing needs of the Mexican people. 2. It has become obvious to the Government that the main priority for a modem Mexico is investment in human capital. Unless the economically active population (PEA) is comprised of a critical mass of educated, hard-working citizens, it would not be very realistic for our country to set ambitious goals with regard to domestic production and international competitiveness. Education has assumed its essential role in the country's overall preparation of plans to achieve comprehensive development. 3. The 1989-94 Education Modernization Program, part of the 1989-94 National Development Plan, was undertaken to transform the country's educational system; in 1992, basic educational and teacher trainig services were tansefeed to states; and in 1993, the professional teaching career program was instituted and nine years of basic education became mandatory. The 1973 Federal Education Law was replaced by the General Education Law. The Government pledged to provide a quality, efficient educational system and to seek a new relationship between government and society and among the three levels of govenment, as well as more active social participation in education. 4. Constitutional Reforms. Articles 3 and 31 of the Constitution were amended in 1993 to: (a) guarantee all individuals the right to an education and the Goverunent's -60- ANNEX 4 POIICY LETTER obligation to provide it; (b) extend mandatory education to the secondary school level; (c) ensure the national character of basic education; (d) make parents responsible for seeking mandatory education for their children; and (e) end the uncertain legal status that affected educators. 5. State-Administered Education. Under the framework of the National Agreement for Basic Education Modernization, and as a substantive part of the reorganization of the educational system, over a six-month period in 1992 the Federal Government transferred educational institutions to state governments, including all technical and administrative elements, duties and obligations, property and real estate, as well as financial resources, which the Secretariat of Public Education had been using to provide preschool, primary, secondary, special and teacher-training services. Under the auspices of this new state-administered educational system, an enormous effort was made in terms of administration and concerted planing, includig the transfer of approximately 100,000 schools, 22 million items of property, agreement with state governments on their joint responsibility for providing educational services and hiring a teaching and administrative staff of approximately 700,000 teachers and workers, and graning N$16 billion to make state governments responsible for the education of 13.5 million students, 10.2 million of them at the primary level. State- administered education has consolidated the national redistribution of authority, strengthened state and municipal levels of decision-making, and encourged better coordination between local authorities and the community. State educational systems thus become extremely important and are responsible for providing basic and teacher- taining services, while the Federal (Cental) Educational System is responsible for national educational policy and uniformity. In order to ensure proper operation of basic educational and teacher-training services, tie Federal Government agreed with state governments to provide ongoing technical and administrative assiste, as well as any other type of assistance that states may require, and that states are required to inprove control, monitoring and inspection procedures in order to view development of the state educational system in a more objective, precise and standardized manmer. School, Municipal and State Councils were created for the same purpose; these Councils, with social participation in the educational process, will monitor educational activities, propose and manage resources and solutions to problems under their jurisdiction. Liewise, state govemments are obliged to provide the Federal Govermment with reliable, timely infbrmation on financial and budgetary resources dealing with planning, programming and statistics. Chapter II, section four, of the General Education Law also males provision for assigning the assessment of the national educational system to the Secretariat of Public Education, making all public and private institutions responsible for assisting and cooperating with educational authorities in order to carry out this assessment, including providing required data and support in order to carry out statistical and analytical reviews. -61- ANNEX 4 POUCY LETTER State-administred education also implies the decentralization of educational activities from state govenments to municipal authorities. This process is currently being developed and is strengthened by established mechanimsm contained both in the General Education Law and in the agreements formalizing state-administered education. 6. Quality of Education. The achievement of quality education with sufficient coverage is the key objective of the educational policy proposed by the 1992 National Agreement of Basic Education Modernization. To achieve this, three basic strategies were set forth: (a) reorganization of the educational system; (b) reformulation of the curriculum and teaching materials; and (c) public appreciation of the role of teachers. The reorganization of the educational system is now underway, and local-level decision-making on educational services, a key element in achieving improvement in the quality of education, is beginning to take shape accordingly. As part of the strategy proposed in the National Agreement, a comprehensive reform of the curriculum and of teaching materials has started and will be completed this year. Thanks to this reform, a new preschool education curriculum came into effect in 1992 which is more in line with the country's public education needs; it includes parents' participation and is better organized so that Mexican children can progress in a gradual and systmatic manner. New primary education curricula and programs came into effect in 1993, along with the first new set of free textbooks, as a result of curriculum reform. With this reform, it is expected that students will learn reading, writing, oral expression and mathematics in a natural, effective and creative manmer; acc,ire sufficient knowledge about the natural and social world in which they live; study history, geography and civics in a systematic manner; lear about and appreciate other types of human communication and expression such as music and literature, become aware of human rights, and acquire a solid background in human values. Likewise, in 1992, in response to the broad consensus of teachers, specialists and parents, a new curriculum and basic course program were instituted to replace the previous area program, increasing the teaching of Spanish language and mathematics to five hours per week. Educational content is now more relevant, of better quality, and covers more class time, as required in the 200-a school year specified by the Genefal Education Law. This implies an increase of 150 hours per year which will be used to enrich the learning process. In the country's educational process, teachers are the main protagonists of educational reform. This encourages and strengthens public appreciation of the role of teachers while promoting the processes of teacher training, in-service courses, improving salaries, and strengthening the professional teaching career. During this Administation, teachers have received yearly salary increases which have raised their standard of living while exceeding the rate of inflation. Even the lowest teacher salary has improved substantially from 1.57 to nearly 3.5 times the minimum -62 - ANNEX 4 POLICY LETTER salaries between 1988-1993. Federal and state governments are also committed to continuing their gradual, sustained efforts to promote better salaries. A new instrument to recognize teachers' work, the professional teaching c-areer program, came into effect in 1993, retroactive to 1992. This consists of a horizontal promotion system which reinforces teacher incentives and salaries. The objectives of this career program are to: (a) increase the quality of education by acknowledging and encouraging the work of the best teachers; (b) increase interest in in-service courses for teachers by providing high salaries to better teachers; (c) recognize teachers' performance and tenure as well as their academic training, knowledge and participation in in-service courses; and (d) acknowledge the dedicated, professional contributions of teachers at the levels and in the areas in which they work, particularly those who teach in schools in underprivileged communities. 450,000 basic education teachers, 57% of those eligible, have joined the professional teaching program. 7. Educational Efficiency. In 1991 the Mexican Government began the Solidarity Schools program with the joint efforts of the Secretariat of Public Education, the Secretariat of Social Development under the National Solidarity Program, and state governments, which pooled their resources and worked together to reduce inequality and inefficiency in those elementary schools with the country's lowest levels of educational efficiency. This program's strategy is to diversify the provision of materials and benefits to students, teachers, schools and communities and thereby reduce educational imbalances and promote the integrated development of those schools with the poorest performance rates. Under the project entitled Proposal for Teaching Written Language and Mathematics (PALEM), the Secretariat of Public Education provides teachers of the first two grades of primary school with technical and pedagogical inputs to support childrenfs leaming of reading, writing and mathematics in the classroom according to the standard syllabus, and thereby try to avoid the need for children to repeat a school year. Another effort aimed at increasing the final efficiency of primary education is thc project entitled Preventive and Compensatory Assistance, better known as Assistance for Children with Leaming Disabilities. The purpose of this program is to prevent the need fo.r children with learning disabilities to repeat a school year. It also provides special learning materials to provide such children in grades one and two with special learning materials to help them complete two grades in one school year, as well as materials which are appropriate for the level of maturity of those students who are older than their classmates. The policy of adding missing grades to those schools which do not offer complete primary education is being continued, and schools taught by only one teacher are being converted into schools with two or three teachers, as needed. These measures -63 - ANNEX 4 POLICY LETIER have contributed to an improvement in the index of primary education efficiency from 55 to 61.1% between 1988-1992. 8. Compensatory Role. After state governments assumed the responsibility of operating the educational services previously handled by the Secretariat of Public Education at the state level, the Federal Govermment has been better at -- to promote its compensatory role, since it is better able to design and implement targeted programs to solve the problems and handicaps of more disadvantaged social groups and regions. Thus, PARE (Programa pam Abatir el Rezago Educativo) began in 1992 in four states with the lowest educational indices (Oaxaca, Guerrero, Hidalgo and Chiapas). In its first year, the program assisted 615,000 primary school students in 9,000 schools by means of efforts to improve students' performance, reduce the shortage of classrooms, train teachers, increase the distribution of books and learning materials, and strengthen school supervision and assessment. In order to improve both the quality and efficiency of preschool education among preschool-aged children and expand its coverage, financed in parallel by a World Bank loan, preparation of the Initial Education Development Program (PRODEI) began in 1993 in ten states in which 52% of the population under the age of four lives in poverty. The objectives of this Program are to: prepare children of low-income families to begin their schooling, improve their performance and stay in school; train parents, especially mothers, in improved child-rearing practices; and strengthen the technical capacity of participating states. In 1994, PAREB (Programa pam Abatir el Rezago en Educaci6n B&sica) will begin operating in ten states, under the coordination of CONAFE, which is responsible for carrying out the above-mentioned compensatory programs. Educational alternatives for rural, indigenous and disadvantaged urban populations have also been improved, since the majority of children who do not receive primary education belong to these groups. In this context, strong encouragement has been given to indigenous education, over the past ten years, enrollment has grown at an annual rate of 4.2%, while overall enrollment in the same period has seen a decline of 0.5%. The purpose of this type of service is to try to provide indigenous populations with a primary education whose general and specific contents allow students to realize their potential and which reinforces their indisputable right as members of an ethnic group to preserve and cultivate their respective values, customs, and traditions. Primary school textbooks and preschool teaching materials are being published for al! of the country's ethnic groups. By 1997, all required materials are expected to be ready for all languages and their dialects, depending on preponderance and the availability of experts to prepare them. Work is also being done on Spanish language texts, and 50% of the anticipated required texts are expected to be met by the end of 1994. Regular and special training programs and strategies are being improved so that more teachers can join the indigenous education service to teach regular and -64 - ANNEX 4 POLICY LEITER community courses. A new indigenous education model will be developed and initiated through CONAFE, to strengthen the teaching of native languages arid ease transition to Spanish. In order to serve those non-indigenous rural communities with 5 to 29 school-age children and which lack regular educational services because of their geographic location and difficult access, CONAFE operates a community education model. This model tries to facilitate the learning of reading, writing, mathematics and science in a critical and analytical manner, with a view to providing basic education geared towards life, work, and study. In 1992, 84,754 students in 7,853 communities were served. In order to serve groups who require specialized educational schemes, the following programs are in operation: the Primary Education Model for Migrant Children, serving children of migrant farm workers who relocate periodically; the Accelerated Primary Education Service (SEAP 9-14) for children who have joined the job market too early; and the Drop-out Education Model for children between the ages of 10 and 14, offered by the National Institute of Adult Education. Compensatory programs, supported by external financing, use these resources to implement measures that encourage children to stay in school, especially those that are aimed at improving the quality of education as demonstrated by better learning, both concrete and permanent. The Mexican Government, at its various levels, is gradually absorbing the costs of the measures taken during project operation so that they become institutionalized automatically, thereby assuring their stability and continuity. In particular, the Federal Government will continue supporting the poorest states, in relation to their financial ability, until their educational indicators reach the national average. 9. Texbooks. In order to make primary education truly free as stipulated in the Mexican Political Constitution, the National Commission on Free Textbooks (CONALITEG) was created in 1959 to produce and distribute books at no cost to students in all of the country's public and private schools. These textbooks guarantee the teaching of a minimum level of knowledge and skills to be learned by all Mexican children, with no distinction in terms of their economic or social status, this embodies the principle of educational fairness and social justice. Nearly 100 million books were distributed in 1992 to students and teachers. 10. Comuunity Participation. The magnitude and significance of the task of educational modernization requires the participation of all levels of society and is a national responsibility. The General Education law therefore requires educational authorities to promote social participation in activities which are aimed at strengthening and increasing the quality of public education and expanding the coverage of educational services. In order to meet this requirement, social participation councils have been created at national, state, muniicipal and school levels; these councils have enabled -65 - ANNEX 4 POLICY LETrER parents, teachers, educational authorities and members of the community to participate in day-to-fy educational work and in reorganizing the school system. 11. Educational Resources. Both the National Agreement for Basic Education Modernization and the General Education Law of 1993 indicate the need to allocate greater budget resources to public education. In terns of federal educational expendiures, the Government has made serious attempts to recover levels prior to the 1982 crisis. In fact, total expenditures (public and private) in 1993 were 5.3% of GNP The Government now assigns the greatest importance to education, since it is the cornerstone of economic growth, as will be shown by the increasing participation of the educational budget within the total federal budget. Along with compensatory programs carried out by the Federal Governent, states, in keeping with the expanded role of the state-adminstered educational system, have increased budget amounts to promote education. Thus, in agreements signed between the Federal and state governments to formalize the National Agreement for Basic Education Modernization, states undertook the obligation of presenting to their respective legislatures each year a proposal for state resources - in keeping with their respective public financial status - to be used for basic education and teacher taining, in increasing real terms, in addition to those received from the Federal Government. The Federal Government promised to transer funds, in keeping with available resources as provided for in the National Expenditure Budget approved for each fiscal year, to state govemments so that they are able to administer the schools utnsferred to them, meet commitnents assumed under the Agreement, and raise the quality and coverage of the educational services for which they are responsible. Whenever possible, these transfers should imply greater resources each time. If states use these resources for purposes other than those agreed, appropriate measures will be taken with respect to any relevant civil and criminal administrative responsibilities, as stated in current legislation. B. SPECIC ISSUES 12. Nine Years of Mandatory Education. With the amendment of Article 3 of the Mexican Constitution, secondary education became mandatory. Basic education now includes nine years of mandatory education: six years of primary school and three years of secondary school. The country has sufficient capacity in place to serve all those who require secondary education in accordance with the new constitutional requirement. In order to expand coverage, the criteria for educational service planning have been streamlined, and micro-planning exercises are being carried out to identify needs and install services, even in small communities through the use of televised secondary school teaching (which has proved effective over the years). The Federal Government has allocated resources for the purchase of satellite dishes for localities where television signals either do not reach or are unclear. In order to expand basic education, the Secretariat of Public Education has designed a Basic Education Popularization Program, to be implemented in 1994, which will encourage parents' and students' interest in requesting preschool and secondary -66 - ANNEX 4 POLICY LETTER education services, especially in the most disadvantaged areas, and in preparing new strategies, types and sources of financing in order to meet new demands and achieve coverage similar to that of primary education. Encouragement for televised secondary school education will be particularly important in view of the successful results achieved in this type of teaching. Similarly, work is being done on designing new, more efficient teaching materials, with emphasis on free textbooks, based on new primary and secondary curricula and programs. 13. Development of Early and Preschool Education. One of the Mexican Government's key objectives has been to achieve the highest possible levels of nutrition, physical and mental health, and of educational development among children from birth to age 5. The main strategies include: (a) The National Action Program, under the framework of the "World Children's Summit - UNICEF", to ensure increased federal expenditures for the health of infants, preschoolers and mothers; nutrition; education; basic sanitation; and assistance to children in particularly difficult situations, in order to reduce the indices of mortality, illness, malnutrition and unsanitary conditions, among others. (b) The program to provide preschool, primary and secondary education to all who require it. This program is a result of the Government's obligation to provide such services, stipulated in the Constitution as revised on March 5, 1993. (c) The Early Education Development Program, to provide guidance to parents on educating and treating their children from birth to age 5 and beyond. The basic policy behind all these strategies is to give priority to the poorest rural and indigenous populations as well as underprivileged urban people, in order to achieve equality in education. 14. Reduction of Salary Differences. Under the state-administered educational system, state authorities are committed to reducing by four percentage points per year the difference between the combined salary of transferred workers and that of workers who were already part of the state educational system. In order to carry out this process, general guidelines on calculating the reduction of salary differences in each state were drawn up and agreed upon with the National Teachers' Union (SNTE), with the participation of specific commissions to define salary differences in each state. Payment of salary differences began in December 1992, retroactive to the beginniDg of the school year in September. Thanks to the budget efforts of those states with significant differences, the agreed commitment to gradually reduce differences was -67 - ANNEX 4 POLICY LETER completed, and the process has concluded throughout the country, with the exception of three states in which it will be completed in 1994. The program benefits 427,000 educational workers, with a cost to Federal and state governments of over N$500 million. 15. CONAFE:s Role. CONAFE, a decentralized agency with a public interest and its own legal status and equity capital, was created in 1971 to collect additional economic and technical resources, both domestic and foreign, and use them to further the development of Mexican education. Based on the Parastatal Agency Law (which regulates this type of institutions), it has complete autonomy to develop its own functions, subject only to its governing authority. Conceived as an alternative solution to the country's educational problems, CONAFE faces the challenge of generating ideas and activities to bring education to the most disadvantaged rural areas and to collect and administer resources for educational programs in an efficient, effective and imaginative manner. Among its most relevant achievements is the CONAFE primary education model which has served scattered localities in which children would otherwise have not had this opportunity. The Mexican Government has granted CONAFE full responsibility to conduct the PAREB, both in direct management of most activities and in coordinating the activities of other federal or state agencies dealing with the project. In carrying out its duties, it enjoys autonomy guaranteed by the Law, without being conditioned by any fumre regulations. Other institutions play a secondary, but no less important, role in managing resources. 16. Flow of Funds and Levels of Responsibility. The decision to use a more centralized flow of funds, mainly under the control of CONAFE, as opposed to a decentralized flow of funds, was made for two important reasons. First, funds would come from the federal account, "international loans (branch 0026)" to SEP and states; by law, the funds in this federal account cannot be combined with state funds. Second, according to the Constitution, each state is autonomous, and therefore state treasury funds are considered inalienable rights. Thus, it is much more desirable to maintain central control of PAREB funds in order to avoid the risk of financial control. In keeping with the state-level strategy, states would be responsible for administering subcomponent accounts. 17. IFderal Compensation Scheme. The Federal Government is incorporating funds for PAREB in a special account. Federal compensation funds will be disbursed as stated in the PAREB description. States are not obliged to participate, but may contribute incremental budget allocations for basic education (see participation agreements). 18. Educational Pblicy. Federal and state govermments and private institutions regulate their respective educational activities based on article 3 of the Constitution and its regulatory statute contained in the General Education Law, issued on July 12, 1993 and published July 13, 1993, which, as stated in its first transitional article, became law the day after publication (July 14, 1993). All other regulatory provisions which - 68- ANNEX4 POLICY LETTER are not in opposition to this Law remain in effect. Thus, the General Education Law is pennanendy in effect and requires no additional regulations. The operation of the Secretariat of Public Education and its agencies is clearly regulated by SEP's Internal Regulations, which authorized officials may modify or update in the future, as slated for the next administraton based on a previously evaluated consolidation of state- administered education. 19. Participation in the International Assessment of Educational Performance. In order to continue encouraging the process of exchanging experiences and horizontal cooperation, Mexico is participating in Phase m of the International Assessment of Educational Performance. The purpose of this study is to compare learning rates among children in various countries between the ages of 9 and 13 in the areas of mathematics and science, and to identify the types of cultural environments and educational practices associated with high academic performance. The results of this study may be used, in a comparative framework at an international level, to identify the relationship between academic performance and Mexican cultural and educational factors, and to facilitate decision-making on raising the quality of education. The results will also be used to experiment with new methods and techniques to improve the institutional technique of educational assessment in Mexico, n order to provide feedback on curriculum design, teacher training and the production of learning materials at various levels of basic educadon. The above is a brief summary of the National Educational Policy, dealing with basic education, which we hope will serve as a frame of reference for the objectives, actions and goals of PAREB. Sincerely, ESTEBAN MOCTEZUMA BARRAGAN UNDER-SECRETARY OF EDUCATIONAL COORDINATION cc: Lic. Fernando Solana Morales, Secretary of Public Education Dr. GuiUermo Ortiz Martinez, Under-Secretary of Finance and Public Credit Lic. Carlos Ruiz Sacrisdn, Under-Secretary of Expenditures, Secretariat of Finance and Public Credit Lic. Jos6 Angel Gurria T1evifto, General Director of National Finance Ing. Jos6 A. Carranza Palacios, General Director of CONAFE Act. Fernanco Agraz Rojas, General Director of Planning, Programming and Budget, SEP Mr. Kye Woo Lee, Chief, Human Resources Operations Division, Department II, Latin America and the Caribbean Regional Office, World Bank -69 - ANNEX S DECENTRALIZATION OF EDUCATION BUDGET DECENTRALIZATION OF EDUCATION BUDGET Pre-DecentmHzation 1. Prior to April 1992, the educational budget was distributed under a centralized budgetary systen to the SCEPs at the state level, which remained organically part of SEP. Little discretion was given to the states in terms of reallocating resources. The system was highly centralized and became increasingly inflexible over time. Actual expenditures in any one state were driven by agreed targets and objectives for that state, with the application of unit costs. TWo biases favoring the richer states tended to operate under this system. First, teacher salaries are indexed to one of three cost-of-living zones, resulting in higher per capita salary expenditures in the better-off states; since salaries constitute 96% of primary school costs and 99% of lower secondary school costs,J' this results in relatively higher allocations to the richer states. Second, given the lack of resources for investments, budget allocations were made based on existing ifrastructue - which had not changed since the mid-1980s - and thus favored those richer states with more facilities. Ibble 1. State Contributions to Primary Education Expenditures, 1992 Share of State Budget State Primary Spend on Primary Education Unit Cost (percentage) (New Peso) Primary Education E States 1. Campeche 16.3% 786.3 2. Dupo 40.4% 845.8 3. Guanajuato 12.3% 214.0 4. Jalisco 23.5% 621.3 5. Michoacin 13.2% 213.7 6. Puebla 24.7% 450.7 7. San Luis Pbtosi 9.8% 657.8 8. Tabasco 4.8% 243.8 9. Veracruz 29.4% 554.2 10. YucatAn 10.1% 240.3 Source: SEP, 1993. Note: Excludes Distrito FedA. 2. The contributions of the project states to primary education financing is highly variable. As Ikble 1 indicates, in 1992, state contributions to total primary education expenditure within the state nged from 4.8% (Trbasco) to 40.4% (Durango). These contributions are highly correlated to the states per capita income. Liewise, the share of the states own resources allocated to education strongly mimics the states' primary educational unit costs, ranging from N$243.8 (Tabasco) to N$845.8 (Durango) per student. 11Excluding b=ay capital imsnuu. -70 - ANNEXS DECENTRAUZATION OF EDUCATION BUDGET Decentraization - The Budget Process 3. The decentralization of the education budget has changed the nature of the control and allocation of governmental resources for education which has been historically highly centralized. Fiscal relations between the federal government and the 31 states and the Federal District are defined by the Constitution. SHCP is responsible for taxation and revenues, including the revenue-sharing formulae affecting local governments. National Development Plans and sector expenditure budgets are approved by the planning authorities, excluding those financed by parstatals from their own revenues. Before the decentralization, the federal government funded both capital and recurrent costs of education through sharing capital costs with state and municipal administratons through agreements (convenios). Since decentralization, the federal government has given direct managerial responsibility to the states and transferred funds for basic education for the operation of the system to the states, giving them more discretion in the use of the funds. 4. The national education budget is developed according to each five-year National Development Plan (the current Plan runs through 1994). SEP develops annual operating programs (Pgrgnmas Operautivos Anuales, POAs) in May/June of every year, basing state allocations according to agreed physical targets and associated costs, taking into account the projected enrollment and population projections. In the past, various categories of expenditures have not been fungible, but decentralization is allowing states more control over how to spend their budgets. The reality, however, is that the extremely high percentage of recurrent expenditures in the federal transfers leave little room for states to adjust their spending according to their own priorities. Education funds are distributed beginning in Jamuary of every year. Each month, a portion of the budget (usually 8%) is disbursed to the states and only in September of every year do states get an additional increment to allow for price contingencies. The specific price contingencies are determined during the May/June POA annual exercise. 5. Educational budgets will continue to need to be enhanced by state budgets. Local governments, including state and municipals, use standard budgeting and accounting formats which divide expenditures by input categories: (a) personnel costs; (b) goods and services; (c) general expenses; (d) equipment and plants; (d) public works and construction; (e) miscellaneous expenditures; and (f) debt service. State Comptroller offices will be counted on increasingly to promote improved budgeting practices. Iuancial Efficiency Due to Decentralization 6. Decentralization should promote two areas of efficiency. First, SEEs will have greater freedom to make investment and program choices based on their respective policies and priorities and reflecting state-level demand; this is important because Mexican states are very heterogeneous and thus exfhibit a wide variety of demand for educational services. Second, decentralization will foster local accountability in the management of educational resources, both in the execution of projects and the operation of services. Under the project, selected SEE officials will benefit from management training programs which will raise the institutional capacity at the state level and allow them to apply funds more efficiently. -71- ANNEX 5 DECENTRALIZATION OF EDUCATION BUDGET Table 2. Relationship Between Unit Cost, Salary Zone, Educational Efficiency and Publkc F1nances in Education -Education Sector- Primary Educatton States Ranked by Lowest Tbtal Federal State Ibtal Federal Salary Composite Share of Tbtal Unit Costs Unit Unit Unit Unit Unit ZoneS Indexy' Tbtal Fed'I. Within Each Group Costal Coste' Costi Costil Cost0 Financings' Rank National Average 1314.6 1330.5 950.4 493.4 831.9 Zone If - 3.8 PARE Average 1118.6 1230.8 724.4 525.8 766.5 Zone II - 5.2 7. Oaxaca 1062.2 1092.0 601.2 425.9 655.5 Zone 1 -31.0 5.9 11. Guerew 1111.2 1406.2 220.7 586.2 869.1 Zone U -49.7 5.6 13. Chiapas 1139.6 1214.6 1030.1 488.2 824.9 Zone n -98.0 5.6 15. Hidalgo 1161.3 1210.5 1045.6 470.6 716.5 Zone n 10.0 3.7 PAREB Average 1113.0 1307.5 863.9 473.7 738.9 Zone I - 3.8 1. Guanajuato 829.0 979.5 588.2 391.7 606.8 Zone 1 2.8 4.1 2. Puebla 854.4 1195.8 291.4 396.2 605.6 Zone I 0.1 4.6 4. Jalisco 961.4 1263.6 541.8 426.1 652.2 Zone I 0.9 4.6 5. San Luis Fbtosi 1023.1 1224.6 318.9 490.7 746.2 Zone II 4.0 3.2 8. Michoacan 1072.6 1075.8 1888.3 427.3 656.4 Zone I -3.4 5.6 10. Veacruz 1099.5 1301.9 797.1 503.5 799.4 Zone U -35.7 7.1 12. YucatAn 1114.9 1445.6 635.9 496.9 763.7 ZonelI -30.2 2.0 19. Durango 1295.5 1574.5 697.9 655.0 1036.3 Zone I -22.1 2.6 20. Tabasco 1312.9 1382.7 1278.3 403.0 660.2 Zone Im -20.1 2.7 28. Campeche 1566.6 1630.8 1601.6 546.7 864.9 Zone m -23.9 1.3 Non-Project States 1372.7 1523.1 1702.9 478.6 832.0 Zone II - 2.4 3. Mexico 945.0 1215.8 791.2 466.9 683.1 Zone 1 29.1 7.3 6. Queretaro 1061.8 1133.1 1100.3 381.9 600.6 Zone 1 24.4 1.6 9. Zacatecas 1075.6 1265.2 652.1 491.8 788.3 Zone H -7.7 2.1 14. Tlaxcala 1131.8 1517A 390.4 531.3 821.6 Zone 1 46.3 1.2 16. Motelos 1197.8 1282.0 1160.0 420.6 641.0 Zone U 43.9 1.7 17. Sinaloa 1199.4 1499.5 900.4 517.9 799.6 Zone n -8.7 2.8 18. Nayrit 1272.1 1549.2 493.3 574.9 856.0 Zone U -1.3 1.7 21. Aguascalientes 1332.0 1430.1 1891.5 495.0 746.4 Zone 11 46.9 1.3 22. Nuevo Leon 1340.1 1539.8 1308.7 517.2 798.0 Zone 11 33.6 3.1 23. Coahuila 1406.6 1596.0 1444.9 620.5 925.6 Zone m 31.9 3.3 24. Chihuahua 1425.4 1489.3 1495.3 590.3 879.5 Zone U 4.8 3.7 25. Colina 1454.8 1695.9 1071.4 584.1 979.5 Zone II 5.2 0.9 26. Quintana Roo 1515.4 1572.5 2018.5 546.3 834.9 Zone m 21.6 1.3 27. Sonora 1528.4 1670.1 1561.5 543.7 834.9 Zone U1 8.5 2.6 29. 131maulipas 1681.9 1396.3 7778.6 504.5 757.2 Zone 11 27.5 3.5 30. Baja California 1748.9 1926.8 1757.6 687.5 1031.6 Zone m 44.8 2.3 31. Baja California Su019.2 2114.7 3134.2 781.4 1153.4 Zone m 31.3 1.0 Source: SEP, 1992. Note. Distrito Federl is not mcluded. 3' Total educational expendiuns per student are in N$ (N$1 = 1000 pesos; US$1 =N$3.12) for the 1991-92 school year. Primary educational unit costs ate for (normal) prinary school during 1990-91 school year. Federal, state and private unit cost means per pupil cost in schools operated by federal, state governments and private organizations. respectively. Y Official reported unit costs. 5' Salary zone I is the lowest and zone m (touristic and border) is the highest. W Ranking is based on a primary schol index of the average percentage deviation from te nadonal average for the completion rate, dropout rate and reption rate for 1991 school year. f Expenditumes ate expressd in shares of crent pesos for the 1991-92 budget year. -72 - ANNEX 6 MARGINALITY RANKING AND PROJECT AREAS MARGINALITY RANKING OF STATES STATE CONAPO UNIFORM COMPLETIONI UNIFORM INDIGENOUS | COMPOSITE I INDEX I SCALE RATE I SCALE POPULATION | INDEX CHIAPAS at 0.81 100.00 31.0 100.00 885,605 31.06 OAXACA a 0.62 93.14 43.8 72.94 1,208,821 28.70 GUERRERO a' 0.71 96.39 40.2 80.55 360,374 26.72 YUCATAN bI 0.23 79.06 44.4 71.67 628,945 24.17 VERACRUZ tI -0.11 66.79 45.0 70.40 704,891 22.94 PUEBLA hI 0.39 84.84 58.0 42.92 611,388 21.18 CAMPECHE hI 40.33 58.84 44.6 71.25 105,994 18.73 SAN LUIS POTOSIW b 0.14 75.81 57.4 44.19 248,993 18.34 MICHOACAN b -0.39 56.68 50.3 59.20 126,756 17.00 HIDMALGO 0.02 71.48 64.0 30.23 383,665 16.43 DURANGOb -0J.30 59.93 56.2 46.72 21,901 15.58 JALISCO bt -0.31 59.57 57.9 43.13 30,010 15.02 TABASCO bI -0.60 49.10 53.2 53.07 59,993 14.74 GUANAJUAIO D -0.30 59.93 59.4 39.96 10,839 14.49 ZACATECAS -0.40 56.32 57.3 44.40 1,081 14.37 SINALOA -0.61 48.74 56.7 45.67 37,290 13.59 QUEREU-TARO 0.02 71.48 68.6 20.51 24,884 13.56 CHIHUAHUA .0.55 50.90 59.0 40.80 74,716 13.44 NAYARTr 40.74 44.04 58.2 42.49 29,386 12.39 TAMAULIPAS -0.25 61.73 68.7 20.30 10,489 12.11 MtUCO -0.68 46.21 69.6 18.39 397,336 11.37 QUINTANA ROO -0.84 40.43 62.9 32.56 164,919 10.86 COLIMA -1.09 31.41 58.1 42.71 1,826 10.41 TLAXCALA -0.45 54.51 74.3 8.46 28,437 9.46 SONORA -1.21 27.08 64.0 30.23 57,547 8.42 AGUASCALIENTES -0.83 40.79 74.3 8.46 771 7.26 COAHUILA -1.05 32.85 72.3 12.68 4,513 6.71 MORELOS -0.76 43.32 78.3 0.00 24,900 6.65 NUEVO LE6N -1.15 29.24 75.4 6.13 5,783 5.35 BAJA CALiPORNIA SUR -1.45 18.41 69.3 19.03 3,372 5.30 BAJA CALIFORNIA -1.96 0.00 76.5 3.81 22,427 0.63 a/ States under PARE bi States under proposed Second Prmary Education Project PROJECT SCHOOL MUNICIPALITIES List A - Campeche, Durango, Guanajuato, Jalisco, Michoacan Campeche Durango Guanajuato Jalisco Michoacan Calikni Mezquital . Ocampo Ipa de Allende Puruandiro Campeche Pueblo Nuevo San Felipe San Sebastian Del 0. Penjanuillo Carmn General Simon Bolivar San Diego de la U. Tomatlan Angamacutiro Champoton Tamazula San Luis de la Paz Cabo Corrientes Morelos Escarcega San Ditms Xichu lbxcacuesco Tangamandapio Hecelchakan Canelas Tierra Blanca Cuautla Villamar Hopelchen Tepebuanes Doctor Morm Cuautitlan Ixtlan Palizada San Bernardo Atarjea Purificacion Pajacuaran lTnabo Guanacevi Victoria La Huerta ibrigancicuaro Ocanpo Santa Catarina Juchitlan Panindicuo Canalan Jerecuaro Ejutla Tlazazalca Santiago Papasquiaro. Coroneo Ayutla fluaniqueo Tbpia Casimiro Castillo Chinicuila Dugo Atengo flmbiscazio Otaez Tonaya Coalcoman San Juan de Guadalupe lapalpa Aquila Coneto de Comonlort Tbliman Arteaga Cuencame Alemajac de Brizuela Coagua ya Guadalupe Victoria Chiquilisan L. Cardenas Hida1go Venustiano Carranza Querendaro Inde Tlcuitatlan de C. Cuitzeo Mapimi Gomez Farias Tbrimbaro Nuevo Ideal Zapotitlan de V. Sta A Maya Nombre de Dios Tonila Zinapecuaro San Juan del Rio Zapotiltic Huandacareo El Oro Zacoalco de Tones Tancitaro Panuco de Coronado lbxpan Chamapan Rodeo Manuel D. Jilotlan de los D. Taretan San Luis del Cordero Quitupan Nuevo Parangaricutiro San Pedro del Gallo Pihuuno Periban Suchil Tamazula de G. Ziracuaretiro Manzanilla de la Paz Trgambato Tbcalitian Cheran Mazamitla Nahuatzen e Valle de Juarez Los Reyes lizapan el Alto Paracho Guachinango Chilchota i Hostotipaquillo Susupuato Mixtlan Tlzantla II,3 Campeche Durango Guanajuato Jalisco Michoacan Tequila Irimbo San Cristobal de la B. Ocampo Cuquio Epitacio Zapotlanejo Jungapeo Ixtlahuacan del Rio Aporo Amatitan Hidalgo Jocotepec Contepec Degollado Senguio Tototlan Juarez Atotonilco el Alto Zitacuaro Poncitlan Lagunillas Ayotlan Tzintzuntzan Zapotlan del Rey Acuitzio La Barca S. Escalante Canadas de Obregon Tiquicheo Jesus Maria Turicato Arandas Tzitzio Acatic Caracuaro Mexticacan Madero Valle de Guadalupe Nocupetaro San Miguel el Alto Huetamo San Diego de Atejandria Tacamnbargo Jalostotitlan San Lucas ibpatitlan Ario Yahualica de G. Aguililla San Julian La Huacana Union de San Antonio Buena Vista Teocaltiche Churumuco San Juan de los Lagos Nuevo Urecho Encarnacion de Diaz Paracuaro Ojuelos Gabriel Zamora Villa Hidalgo Tepalcatepec Lagos de Moreno Apatzingan Chimaltitan Mujica Mezquitic Maravatio Bolanos Tocumbo San Martin de B. Patzcuaro Z f Huejuquilla el Alto lTxpan t z Santa Maria de los A. Zacapu > Villa Guerrero Huejucar Coloilan Totatiche .__________ -__ Manuel M. Dieguez ,_______ B'C PROJECr SCHOOL MUNICIPALITIES List B - Puebla, San Luis Potosi, Ibbasco, Veracruz, Yucatan Puebla San [MS Pbtos. Ilbasco Veracruz Yucatan Thzco Villa de Ramos Jonuta Chiconamel Tlixcacalcupul Jolalpan Villa de Arista Balancan Tantima Chemax Ctila Honey Santo Domingo Ibnosique Tempoal Tahdziu Tlacuilotpec Venado Emiliano Zapata Planton Sanchez Chankom Pahuatian Salinas Huimanguillo lbntoyuca Uayman TlpAca Villa Hidalgo Cardenas Chalma Yaxkaba Tlaola Villa de Guadalupe Cunduacan Chontla ThnoZon Chiconcuautla Guadalcazar Comalcalco Tepetzintla Espita bpala Calorce Macuspana Cidalhepet Cenotillo Z*uateuda Chalcas acotialpa lxcaepec Chichimila Amixtan Moctezuma Teapa Tancoco Dzitas Coaropec Vaegas Jalapa Texcatepec Kaua Ahuacatlan Cedral l1amatlan Panaba Caniocuautla Villa de la Paz Zontecomatlan Thimin lpaio de Rodriguez Matehuala Zacualpan Thum Hemoiegido ;aleana Aquismon Tlachwhilco Peto Xbcbiapulco ibTlajas Huat: ootla Chacsinkdn Cuautemapan luncanhuitz de Sanos Ixbui.'an de M. Sucila ' ibaila de Ocamnpo San Anlonio Benito Juarez Valladolid Ixtacaraxtitan iTuquian de Escobedo Chiconsepec Tecom Hucydalpan Xilida Filomeno Mats Cuncuuil ItPec Ebano Mecatlan Chikinudnnot Huitzilan de Serdan Tamasopo Coahuitlan Mayapan Olintda Huehuetlan Zozocolco Tekit Huehuetla Tuunchale Coyuda Sudzal Caxhuacan Tampamobon Coxquihui Canmayniyec Xochitlan V.S. San Martin Chalchicuautla Espinal Timucuy Zongozonda San Vicente Tancuayalab Chumatlan Sotuta Zapodthan de Mende Coxcatlan Las Minas Tbabo Chichiquila Axtla de Terrazas Tlacolulan Akil Quimixdan Tamuin Tatatila Tecoh Chilchoda Tanpacan Tonayan XDcchel La Fragua CD. Wiles Atzalan Abala Coyomeapan Alaquines Altonga Kantunil Eloxochitlan Lagunillas Jalacingo Hoctun San Sebastian T]acot. Santa Catarina Coacoatzintla Mani Zoquitlan San Ciro de Acosta Tepetlan Tzucacab Ste. Catarina Tlalt. Rayon Chinconquiaco Tekax Ahuadan Villa Juarez Juchique de Feraer Homun Coatzingo Rioverde Ixhuacande los R. Kanasin Xochiltepec Ciudad del Maiz Ayahualulco Izamal Ih; Cutyuca Ciudad Fernandez Cosautlan Huhi Psiebl Son Ladis Noeld Tabasco ewcruz Yucatan San Martin Totolwpec San Nicolas Tolendno Xico Oxkutzcab lTpi de RodriguP Cardenas Ixhuadancillo Tuxmeuac Zacaula Cerrilts Aquila Seye Axutla La Perla Chumayel San Miguel btidan Calcahualco Tlhmek Tecomatlan Alpadahuac Tekal de Venegas Pedalcizgo Coscomatepec Muna San Pablo Anicano Mariano Escobedo Santa Elena Chinanda Chocaman Tbmax Guadupe Maltrata lbnkas San hse Chiapa Atzacan Teya San Nicohs Buenos Aites Huatusco lxil Guadalupe Victoria Mixda de A. Mama Sau Juan Atenco Atlahuilco Sanahcat Tepqahualco Tlaquilpa Ciza,a San Antonio C. Soledad Atz. Hocaba Niclas Bravo Tehuipango Tepakan Vic:ee Guerrero Astancinga Cansahcab San Gabriel Chilac Tequila Mococha Alepexi Los Reyes Chapab Aialpan San Andres T. Cacalchen Zinacatepec Zongolica Tekanto Chapulco Texhbacan Dzan CK Zapotitlan Magdalena Baca San Jose Mhahuatan Xoxocotla Acanceb Tiacotepec de B. JZ. Tezonapa Motul Atzitzintla Soteapan Conkal Palmar de Brmo Mecayapan Sacalum Quecholac Pajapan Tetiz Canada Morelos Zaragoza Celestun Yehualtepec Hucyapan de 0. Ucu Tepexco S. Andres Tuxtla Kinchil San Diego de la Mesa T. Santiago luxtila Hunucma Tepemaxalco Catemaco Maxcanu Acteopan Soconusco Chochola Tlapanala Chinaineca Halacho Huehuetlan el Grande Oteapan Opichen Tepeojuma Samahil Athmluacan __.-v.._t Q;0 -77 - ANNEX 7 INDIGENOUS POPULATIONS INDIGENOUS POPULATIONS AND EDUCATION 1. A recent World Bank studyl' on indigenous people in Latin America shows that indigenous people represent a large proportion of the population of a few Latin American countries. The major indigenous population centers are in Guatemala, Mexico, Bolivia, Ecuador and Perd. There are approximately 400 different indigenous languages throughout Latin America and individual countries have from 7 to 200 languages. While many indigenous people are bilingual, others are monolingual in their native language. 2. The general situation of the indigenous people in the Latin American region is as follows: (a) Poverty among Latin America's indigenous population is pervasive and severe. Living conditions are deficient even when compared with those of other sectors of the poorest population; (b) Indigenous people have less education than non-indigenous people and there are strong correlations between schooling attainment and indigenous origins and between schooling attainment and poverty category. Indigenous children are more likely to repeat grades at the primary level and more likely to drop out of school altogether. Children of indigenous origins are born with many socio-economic disadvantages and are unable to keep up with their non-indigenous peers; and (c) Indigenous worker earnings, on average, are less than two-thirds the salary of their non-indigenous counterparts. Indigenous individuals are more likely to have a second job and they generally tend to work more hours than their non-indigenous counterparts. Much of the earnings disadvantage of indigenous workers can be attributed to lower human capital endowments. 3. Access to education in indigenous areas will help amelic.rate poverty and increase earnings. One of several frequently noted methods of improving access to education among indigenous population is the implementation of bilingual education. Country analysis reveals that parents' skills and educational attainment are reflected in the schooling and other human capital characteristics of their children. Laws that will protect and promote indigenous language, culture, customs, resources, and social organization and that will also implement mechanisms to guarantee equal access to justice for indigenous people are needed. In recognition of the importance of addressing the concerns on the country's indigenous populations, the Mexican Government signed Agreement Number 169 with the International Labor Office (ratified on September 4, 1990) accepting a series of obligations to support indigenous people in every aspect of their lives. This agreement forms the basis for supporting indigenous education programs in Mexico. 4. Mexico's indigenous population accounts for about 14.2% of its population; other countries with a larger share are Bolivia (56.8%), Guatemala (43.8%), Peru (40.8%) and Belize (14.7%). The rest of the countries in Latin America register less than 10% of their !' G. Pscacharopoulos and H. Patrinos, Indifenous Peonle in Latin America: An Emirincal Analvsis, Regional Studies Progmm, Report No. 50, Tbe World Bank, August 1993. -78 - ANNEX 7 INDIGENOUS POPULATIONS populations as indigenous, with most having about one percent. There are approximately 72 indigenous languages in Mexico;21 this ranks behind Brazil (208), Peru (85), and Colombia (78), while other countries in Latin America register about ten indigenous languages on average. Table 1. Mexico - Languages and Indigenous Primary Education by State State Number Number Pbpulation (Languages) Of Centers of Teachers Attended National Total 7,361 24,555 564,698 Baja California 34 107 2,575 (Cochimi, Kmial, Mixteco, Pai-Pat) Canmpeche 45 160 1,283 (Maya) Chiapas 1,734 5,033 125,463 (Chol,- Kakchiquel, Mame= Tojolabal, Tzeltal, Tzotzil, Zque, Maya) Chihuahua 246 517 10,498 (Guarijio, Pima, Tarahumara, Tepehuano) Durango 120 249 4,033 (Hwuchol, Nahuatl, Tepehuano) Guerrero 686 3,012 61,767 (Amuzgo, Mixteco, Nahuatl, T7apaneco) Hidalgo 580 1,970 44,490 (Nahuatl, Otomi, Tepehua) Jalisco 62 136 2,309 (Huichol) Mexico 121 444 11.093 (Mazahua, Otomi) Michoacan 140 815 17,099 (Mazahua, Nahuawl, Otomi, Purepecha) Morelos 2 19 446 (Nahuatl) Nayarit 98 212 - 4,706 (Cora, Huichol, Nahuatl, Tepehuano) (continued) ' DGEI. 79- ANNEX 7 INDIGENOUS POPULATIONS State Number Number Pbpulation (Languages) Of Centers of Teachers Attended Oaxaca 1,326 4,969 129,273 (Amuzgo, Cuicateco, Chatino, Chinanteco, Chacho, Chontal, Huave, Mazateco, Mixe Mixeco, Nahuatl, Thqui Tzotzil, Zapoteco, Zoque) Puebla 580 1.836 45,483 (Mazateco, Mixteco, Nauwatl, Otonu, Popoloca, Totonaco) Queretaro 76 226 5,118 (Otomi) Quintana Roo 82 202 3,323 (Maya) San Luis Pbtosf 244 944 16,303 (Huasteco, Nahuatl, Pame) Sinaloa 30 105 2,088 (Mayo) Sonora 89 295 3,900 (Huarijio, Mayo, Papago, Pima, Seri, Yaqw) Tabasco 91 300 6,623 (Chol, Chontal) Tlaxcala 7 49 982 (Nahuatl, Otoui) Veracruz 803 2,510 55,400 (Oiinanteco, Huasteco, Mazateco, Mixe, Nahuatl, Oton. Popoluca, Tepehua, Totonaco, Zapoteco, Zoque) Yucatan 165 445 10,143 (Maya) Totals 7,361 24,555 564,698 Source: SEP, 1993. PARTCIPATING MUNICIPALlTIES & NUMBER OF BENEFICIARIES BY PROJECr STATE |Schools in Total Primary Total Primary Total Super- Total Sector State No. of Selected No. of Project Primary School Primary School Super- visors in Sector Chiefs in Municip. Municip. Schools School Students in School Teachers visors Project Chiefs Project L_______ _ I ________ I Enroll. Project Teachers in Project _ _ Campeche 9 9 712 399 102,015 42,970 3,453 1,473 47 39 7 7 Durango 39 31 2,335 855 241,406 46,633 9,991 1,969 186 65 17 9 Guanajuato 46 12 4,393 890 766,797 72,469 23,902 2,597 264 33 22 5 Jalisco 124 83 5,337 2,141 979,070 154,801 30,360 5,599 210 163 25 33 Michoacan 113 78 4,501 2,360 689,681 341,971 23,492 11,686 223 155 31 29 Puebla 217 82 3,858 1,107 788,872 155,249 23,694 4,712 247 113 16 20 San Luis Potosi 56 45 3,074 1,750 362,331 125,822 13,508 6,130 213 114 16 18 Tabasco 17 12 1,949 1,205 297,246 178,957 9,024 5,338 104 73 12 9 Veracruz 207 79 8,870 2,483 1,101,767 260,006 40,101 9,454 344 150 34 14 0 Yucatan 106 80 1,257 668 243,647 122,766 7,921 3,901 95 80 13 13 Total 934 511 36,286 13,858 5S7,282 1,501,644 185,436 52,859 1,933 985 193 157 National 2,402 2,402 85,081 85,081 14,396,900 14,396,900 487,915 487,915 16,478 16,478 N.A. NMA. Total as a Percentage of 39% 21% 43% 16% 38% 10% 38% 11% 12% 6% N.A. N.A. m National . Z _ _ Source: SEP, 1993. N.A. - Not available. 04 0 C oz '4- -81- ANNEX 9 FINANCIAL IMPLICATIONS OF EXTENSION OF BASIC EDUCATION FINANCIAL IMPLICATIONS OF EXTENSION OF BASIC EDUCATION 1. Some very preliminary estimates of the financial implications of implementing the policy to extend mandatory basic education from 6 to 9 years, through the inclusion of the three-year lower secondary cycle, have been made by SEP but were not available for the preparation of the project. An initial but very rough estimate of the impact can be made using the latest unit costs for lower secondary school education and the unattended student cohort. Currently, only 67% of the lower secondary school cohort or 4.1 million students are enrolled, leaving an unattended population of some 2.1 million students. Presently, 86% of those students completing the primary education cycle continue to lower secondary (this is high by international standards). Initially, implementation will focus on raising this index to closer to 100%, whilst programs such as PARE and PAREB will result in a larger percentage of students completing their primary cycle. 2. The cost implications of extending basic education are complicated by a number of factors: (a) there are four main types of secondary education (normal, vocational, distance and special) with varying unit costs; (b) a significant, but highly variable, proportion of places in secondary school classrooms are vacant, thus a number of children could be absorbed at little increase in operating costs as the basic infrastructure already exists; and (c) the location of unattended children in relation to physical infrastructure is not fully known at present, thus making it difficult to estimate construction requirements. There is thus the need for a detailed assessment of the cost implications of this policy, which will be supported under the project as part of the secondary education study (Annex 14, Part B.5). 3. In the meantime, upper and lower cost estimates can be calculated as follows: (a) Lower Boundary - Raising Coverage to 100% of Sixth Grade Completers. The lower cost boundary would be that in 1994/95 all sixth grade completers would be accommodated in lower secondary. Assuming that 50% of these incremental 660,000 students would be accommodated in existing classrooms and 50% would require new classrooms and that due to cost savings assumed in the filling of vacant space in existing classrooms (para. 2 above), incremental unit costs would be 50% of average unit costs, the incremental cost for 1994/95 would be US$121 million in recurrent costs and US$204 million in investment costs (for classroom construction). Combined, these costs would amount to an increment of 5% of the 1993 basic education budget or 2.5 % of the total education budget. (b) Upper Boundary - Raising Coverage to 100% of the Cohort in the First Year. In 1993 prices, this unattended population would entail incremental recurrent costs of about US$747 million per anm. This would amount to an increase of 5.5% in the total education budget for 1993 of US$13.6 billion or 11.2% for the basic education budget of US$6.7 billion. In addition, there would be the need for the construction and furnishing of at least an additional 42,000 classrooms at total cost of US$1.3 billion and for the training of an additional 105,000 teachers costing a further US$880 million over the four-year training cycle of implementation in one year. These costs would add up to US$2.9 billion or 21.2% of the total 1993 budget. -82 - ANNEX 9 FINANCIAL IMPLICATIONS OF EXTENSION OF BASIC EDUCATION 4. Likely Scenario - Implementaton oe l Years. In reality, it will take several years to implement this policy as modalities to cover rual populations still have to be developed, additional teachers tained, and new classrooms created - most likely over a period- of about ten years. On this basis, and assuming a constt rate of attending the unmet demand over a ten-year period and with anmial growth in cohort size of 1.0% per annum, the incremental costs for the five-year period 1994/95 to 1998/99 (i.e., the PAREB period) in constant 1993 US$ would be as follows: Incremental Costs and Physical Targets of Expanding Basic Education - Uniform Rate of Implementation over 10 Yeaws Starting in 1994/95 (US$ million, 1993 prices) ITEM 1994/95 1995/96 196/97 1997/98 1998/99 A. Costs Incremental Recrrent Costs 76.2 152.4 228.6 304.8 381.0 Investment Costs 128.5 131.1 133.7 136.4 139.1 Teacher Training 89.8 89.8 89.8 89.8 89.8 Total Costs 294.5 374.3 452.1 531.0 609.9 B. Phyical Achevement Indicators Percentage Enrollment in Lower Secondary 70% 73% 76% 79% 82% Number of New Classrooms Completed (cumulative) 4,200 8,400 12,600 16,800 21,000 Additional Teachers Trained (cumulative) 10,500 21,000 31,500 42,000 52,500 5. Thus the incremental cost for 1994/95 would represent about 2.2% in the total education budget of 1993, rising to 4.5% by 1998/99. Whilst not excessive given an anticipated growth rate in real per capita GDP of about 2% per annum over this period, such increases require that the Government allocate an increased share of GDP to education - an objective the Government is fully committed to. However, the opportmity cost of increasing enrollment in lower secondary education while there are so many deficiencies in primary education should be taken into account. While Mexico currently has an unfilled capacity within the secondary education system, resulting in small marginal costs for expansion, it remains to be seen whether adequate institutional capacity exists or can be developed to properly manage this anticipated growth. Under the project, studies wili be conducted to examine various elements of the secondary education system (Annex 14, Part B) and recommend reform and/or investment programs. -83 - ANNEX 10 TEACHER TRAINING TEACHER TRAINIG PROGRAM STRATEGY 1. Summary. The objective of the human resources development component is to contribute to more effective teaching through: (a) enhancing the skills of teachers in the most critical areas of pedagogical problems typical of their school environment; and (b) developing educational supervision more focused on teachers' need for technical assistance in the classroom. A comprehensive in-service taining program will be implemented to improve the educational skills of teachers, school principals and supervisors. A pedagogical network concept will be applied in the design of the taining courses and follow-up activities. School principals and supervisors would be trained to provide guidance and technical support to teachers in the day-to-day application of good educational principles and techniques to their classroom practice. Training would take place through one-week intensive courses during the summer recess, followed by seven one-day Saturday training seminars, once a month throughout the school year. Approximately 61,420 teachers are expected to participate in the training program. Of these, 47,500 would be general primary school teachers, 5,360 indigenous primary school teachers, and 8,560 school principals and supervisors. The component will also provide the rural teachers with opportunities to meet some of the training requirements for advancement in their teaching careers. Description of the lfanng Program 2. The Pedagogical Network. The teacher and his work in the classroom is the main focus of the in-service training program. Teachers in mral schools often work alone in one- room situations where professional exchange with peers is not available and the only technical support must come from sporadic supervisor visits. Multigrade classes are almost the rule in rural schools. Teaching literacy and numeracy becomes more difficult with children from homes with little or no educational background. Disadvantaged socioeconomic conditions often add to the learning difficulties of children in rural communities. Teachers must learn how to deal with these situations on the job. 3. Teachers, principals, supervisors, and assistant supervisors are considered members of a pedagogical network, and will be charged with making the improvement of teaching their continuing concem throughout the school year. Educational supervision would thus be given an added educational dimension beyond its present emphasis on administrative controls, to reinforce teacher training and encourage better teaching in the classroom. The training program has been designed to support and strengthen the concept that good teaching performance is dependent upon an effective operation of this pedagogical network of teachers, principals, and supervisors. The training courses and seminars are built around all participants working together to develop the necessary skills and following up on practical experience in the classroom. 4. The Training Program. In-service training for primary teachers and school management staff (school principals and supervisors) in the project schools is proposed as an activity directly focused on improving classroom practice in some critical areas where teacher shortcomings have long been recognized as determinant factors in poor student achievement, wasteful grade repetition and early abandonment of school. - 84 - ANNEX 10 TEACHER TRAINING 5. Specific areas of teaching skills which are of special relevance to the socioeconomic and educational characteristics of the population in the target areas are: (a) teaching classes including children of several grade levels (multigrade classes); (b) teaching and reinforcing literacy and numeracy to children of very low cultural and educational backgrounds; (c) teaching literacy and numeracy to children whose families speak a language different from the official; (d) utilizing a variety of educational resources to achieve results in the classroom; and (e) recognizing problems of slow learners and using appropriate techniques to help them. Special pedagocial attention would be given to literacy-oriented needs of first- and second-graders. 6. The content of training courses will be designed to fill in areas of expertise not covered by the teacher education curriculum in colleges and Normal Schools, and which are critical to teacher performance under the special circumstances prevalent in the project schools. Training courses will be coordinated with other existing teacher training programs such as the PAM, which is designed to introduce new curricular contents. Duplication of training contents with existing PAM courses will be avoided. At the same time, training courses in the project are also expected to receive recognition toward career advancement urder the TCP. Promotion points will be granted for participation in the training courses and workshops, and this is expected to ensure teacher attendance. 7. The training program includes a five-day (40 hour) sumnmer course followed by seven one-day (6 hour) workshops, approximately once a mnonth on Saturdays. Four courses (one each year) will be required for all teachers, school prhicipals, supervisors and assistant supervisors in the project area. They are: (a) Multigrade Class Teaching (b) Educational Resources (c) Educational Problem Prevention (d) Remedial Education All participants will also take one or more of the following, depending on their concentration: (a) Written Language (b) Mathematics (c) State-specific course Emphasis will be on the pedagogical requirements of the first and second grade of the primary school curriculum. 8. Teachers of indigenous primary schools will have courses in: (a) Bilingualism in Indigenous Education (b) Spanish as a Second Language (c) Use of Indigenous Language Texts and Materials 9. Printed training materials will be specifically developed for each course. They will include an anthology of appropriate readings, study guides, suggested activities, bibliography and glossary of terms, training manuals, and evaluation instruments. Posters and - 85 - ANNEX 10 TEACHER TRAENING promotional materials will also be developed and distributed to encourage teacher participation in the training program. Most training materials needed for the project have already been developed and used in the teacher training courses of the PARE project in the states of Chiapas, Guerrero, Hidalgo, and Oaxaca. These materials will be revised and updated for use in this project. 10. Selection of Trainers. Trainers will be selected through a special 40-hour course in Pedagogical Counseling attended by school principals, supervisors, and assistant supervisors. Supervisors will be required to attend an additional six-day course on the Pedagogical Role of the Supervisor. Some trainers will also be selected from among experienced teachers who have earned the respect of their peers. All selected trainers will attend preliminary intensive courses in the topics they are expected to cover. 11. Location of Training. Training will be conducted in training centers especially equipped for the purpose with libraries and audio-visual resources. Two centers, each housing between five and ten training groups, will be selected in each region. The center will be either an existing branch of the National Pedagogical University or a Normal School, or else a secondary or technical vocational school. No additional physical infrastructure will be required for the training centers, but an audio-visual room will be set aside and provided with equipment and materials to be used by teachers in the area as additional learning resources during the school year, as well as for the Saturday follow-up workshops. 12. Saturdav workshops will be held once each month during the school year for a total of seven. The workshops will be six-hour sessions and will be attended by the same group participating in the intensive summer course, together with their school principals, supervisors, and assistant supervisors. The topic of the workshop will be the same as the summer course, and it will focus on a review of the concepts and teaching techniques learned and thw teachers' experience with actual classroom practice using those concepts and techniques. Problems encountered and solutions devised by teachers will be discussed, plans to correct difficulties during the following month will be proposed and analyzed, and needs for technical assistance from supervisors or supplementary reference materials will be reviewed. 13. The Saturday workshops are intended to reinforce and expand on the subject matter of the intensive courses, and relate it to the teacher's experience rather than to teach additional topics. Training in the various topics will be interrelated through the common link of classroom experience, and will involve teachers and supervisory staff sharing the same interest and activity. Each new Summer course will start with a review of the training activities of the previous year and will build upon them to csevelop the new topic. 14. Organization of the Trainig Program. A Central Technical Group attached to each of the normative units of general primary education and indigenous primary education of SEP will be responsible for planning all training activities, designing the courses and developing the required training materials. These central Technical Groups will also be responsible for training similar technical groups at the state level, and for follow-up and evaluation of all project-related tmning activities conducted by the states. State Technical Groups will similarly be organized in each participating state for general primary and -86- ANNEX 10 TEACHER TRAINING indigenous primary education, respectively, and will be responsible for organizing the training courses for state trainers and for teachers and supervisors as well as for evaluation of trainer performance. 15. Both the Central and State Itchnical Groups will be made up of permanent technical staff members of SEP and the state educational entity respectively. Each group will have a Coordinator and the members will serve on a full-time basis. The members of the STG, together with the state trainers, will form a pedagogical network to follow up on the monthly Saturday workshops and to encourage fuirter collegial self training activities by the teachers and continued use of the libraries and other training resources. -87 - ANNEX 11 PHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK PHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK 1. In order to meet both the current and expanding education needs, SEEs in each state conducted an analysis of their classroom and storage/distribution capacities. The school portion of this subcomponent was based on the need to improve deteriorated facilities and expand existing or construct new facilities to meet rising enrollments. The distribution portion or this subcomponent was based on the need to improve both the storage capacity and the logistics of providing educational textbooks and materials to the schools in a timely manner. A. School and Classroom Construction 2. Construction of schools and classrooms will be undertaken under one of two modalities: (a) through CAPFCE (for schools in less remote, easier access locations); and (b) through a community-based method drawing from experience under the SOLIDARIDAD model. It is estimated that the project will apply both modalities more or less in equal proportion. An Operational Manual has been drafted to cover both modalities. Technical staff at the SPCUs will coordinate the construction and supervision procedures for CAPFCE and community subprojects. 3. CAPFCE Model. CONAFE, in coordination with CAPFCE, will select the sites falling under the CAPFCE model. Funds will flow directly to CAPFCE, which will be responsible for planning and supervising construction subprojects, which will be carried out by its state-level branch offices. 4. Community Model. SPCUs will discuss and agree upon subproject proposals with School Councils and municipal authorities. The community would contribute (in-kind and/or money) an average of 10 percent (possibly less for the poorest communities) of the work value. The construction will be implemented by School Councils according to the procedures set forth under the Operational Manual and supervised by the municipality. Actual construction will be carried out by a combination of community members and local contractors, guided by a self-help handbook to be designed and produced under the project. The municipality will provide technical assistance through its permanent employees or ad hoc specialists. The Operational Manual will include the administrative steps for disbursing funds to the municipalities (ayuntamientos) as work progresses. This arrangement entrusts the municipality to play the role of financial and administrative intermediary and makes the School Councils responsible for construction. If a municipality is unable to fulfill this task, state SOPEs would be an acceptable alternative. Table 1 below outlines the various entities involved in the community construction model. 5. Out of three provided CAPFCE prototypes, School Councils (in coordination with SPCU and the municipality) will select the one best suited to the local availability of land, materials, and resources. T-he prototypical project classroom (both for CAPFCE and community schools) will b. 6x6 meters, large enough to accommodate up to 36 students, or 30 students and extra space to provide for a Reading Corner, multigrade instruction, or more - 88 - ANNEX 11 PHYSICAL INFRASTRUC1'URE AND DISTRIBUTION NETWORK participatory teaching/learning interaction. This size is considered to be optimal, allowing for greater flexibility than the 6x5.3 used in PARE. In order to avoid or reduce technical errors in design and inconsistent budget estimates (main causes for poor construction quality, delays, and cost overruns under PARE), the Bank will approve prototype designs with blueprints and review budget esimates based on sndard regionalized unit prices on a yearly basis. Construction will also include, as necessary, adequate sanitary conditions, including the construction of toilets and latrines and the provision of potable water through sinks, central mater system connections, deep wells, and other appropriate means. Table 1: Procedures for Construction of Schools/Classrooms Community Construction Model ILTask R Rponsible Cordiateawd ith 1. Elaboration of Subproject Proposal SEE Municipality 2. Approval of Subproject Proposal SPCU SEE 3. Elaboration of Preliminary Budget SPCU SOPE 4. Validation of the Proposal COPLADE SEE 5. Necessary Modifications SPCU SEE 6. Selection of Prototype, and Contract Modality SEE/SPCU Municipality & School Council 7. Technical and Budgetaiy Revisions SOPE Municipality & School Council 8. Final Approval of Subproject Proposal SEE NAFIN, DGPPP (for ex- CONAFE/BM (ex-post review) post review) 9. Elaboration of Technical Requements SOPE School Council & SPCU 10. Community Organization and Mobilization Municipality SEEtSPCU 11. Project Implementation Agreement Municipality SPCU 12. Execution of Civil Works Community/School Council SPCU 13. Supervision and Technical Assistance Municipality SOPE 14. Final Subproject Acceptance School Council SPCU CONAFE (ex-post : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ review ) 6. Furniture. Furniture for those schools built by CAPFCE will be put out to bid by CAPFCE, while furniture for those constructed by the community or SOPE will be put out to bid by CONAFE. 7. Superviion and lchnical Assistance. To upgrade the quality of construction, five percent of the building cost would be allocated for supervision and technical assistance undertaken through CAPFCE or independent consultants. In addition, two percent of the building value will be given to either CAPFCE, the municipality, or SOPE for managing the project. For community-built schools, technical assistance will be given by the municipality, or if local expertise is lacking, by SOPE. -89- ANNEX 11 PHYSICAL INFRASTRUCrURE AND DISTRIBUTION NETWORK B School Maintenance 8. The lack of maintenance of school buildings and furnishings is now requiring major investnents in replacement. The traditional and centralized maintenance system has been both expensive and insufficient. Effective school maintenance requires community participation through hands-on school-related responsibilities. All (whether existing or new) schools in the project areas will be included in the maintenance subcomponent (see Table 2). For both CAPFCE- and community-built schools, maintenance funds will be transferred to the municipalities as School Councils will set repair or maintenance priorities. Given the lack of previous experience w-th systematic maintenance, guidance to School Councils for maintenance activities will be phased in to allow for adequate training, assisted by a handbook for maintenance to be designed and produced under the project. Bank financing for maintenance will be given on a declining basis so that by the last year of the project, all maintenance would be carried out with local resources. 9. Costs. School maintenance costs are estimated to total N$1,000 (US$320) per classroom over the project's five-year period, or an average of $64 per classroom per year. A small number of existing classrooms (about 5,500) will require more extensive maintenance and/or minor rehabilitation to bring them up to standard. Table 2: School Maintenance Costs (over five years) i Type Classroms Cost (US$ mullions)!l A. Existing Schools Maintenance 5,544 '.1 Major Maintenance or Rehabilitation 63,761 4 B. New Classrooms Maintenance 8,560 2.7 Total | N/A 30.2 10. Procedures. A handbook designed under the project would guide School Councils and others involved in maintenance activities. The School Council's existence and full functioning are conditions for participation in the maintenance program. The yearly schedude of schools to receive maintenance funding will be done by supervisors in coordination with the municipal government, on the basis of building age, use, and School Council commitment to implement the maintenance program as described in the handbook. C. Supervision Offices 11. The role of supervisors will be amplified under the project to include pedagogical elements. To ensure that adequate and frequent supervision is provided in all project areas, the proposed sites for supervisor and sector chief offizes will provide for easy accessibility to the project schools. The construction of the offices will be via competitive bidding coordinated by CAPFCE. -90 - ANNEX 11 PHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK DI Warehouses 12. Transportation of textbooks and other instructional materials from Mexico City to central warehouses in the states has been relatively expeditious and safe, but serious problems have occurred between the state warehouses and the classrooms due to storage and transportation difficulties and overburdened officials, resulting in the loss of or damage to materials. The current system, based on rental of intermediary facilities or temporary loan of public or private space, is neither a functional or a long-term solution. These problems will be addressed through investment in an improved distribution network, tailored to the conditin.ns prevailing in each state. 13. Design and Costs. The Government has planned the construction of 68 warehouses as a crucial link in state-wide books and materials distribution networks. The project design will: (a) conform to agreed upon criteria and requirements; (b) be modular, to meet differing capacity needs; and (c) take advantage of warehouse models designed by CAPFCE for PARE, which have been revised and improved. The location of warehouses will be deternined by individual state studies of distribution needs (see Part E below). Construction of warehouses will be carried out by CAPFCE, at a total cost of US$4.1 million, as shown in Table 3 below: Mhble 3: Warehouse Construction by State No. Total Cost Total Cost (N$ OOOs) (US$ OOOs) Campeche 3 547.4 175.5 Durango 4 875.9 280.7 Guanajuato 3 656.9 210.6 Jalisco 10 1,532.8 491.3 Michoacan 11 1,970.8 631.7 Puebla 13 2,408.7 772.0 San Luis Pbtosi 6 1,532.8 491.3 Tabasco 6 1,094.9 350.9 Veracruz 9 1,204.4 386.0 Yucatan 3 985.4 315.8 Total 68 12,810.0 4,105.8 14. Economic Justification. Under net present value calculations, the construction of warehouses would be viable if the annual cost of leasing a warehouse exceeded N$22,616 (US$7,415) per year (assuming it has a 25-year useful life). In fact, the average cost of renting a substitute warehouse is N$32,730 (US$10,730). Thus the construction of the warehouses is justified. The prevailing justification for warehouse construction, however, is more qualitative than quantitative. In the beneficiary tiunicipalities, selected on the basis of extreme poverty, no facility is available for proper book storage. For over forty years now, several factors (poverty, isolation, weather conditions) have prevented books from reaching the poorest schools and classrooms in an acceptable condition and in a timely manner. The constucton of strategically located warehouses will remedy this situation. -91- ANNEX 11 PHYSICAL INFRASTRUCURE AND DISTRIBUTION NETWORK E. Distribution of Materials 15. Each project state will draw up distribution plans, including proposed location of warehouses, to make best use of existing roads and highways while giving appropriate consideration to geographical features such as mountains, rivers, etc. The distribution plas will also take into account the location of and logistics surrounding existing facilities, including sectoral headquarters, warehouses, location of facilities currently used as provisional warehouses, and the optimal part-time use of education supervisors for delivery of books and materials. 16. Distribution Plans. The distribution plans will be shown in a table which will contain the following information: (a) Existing warehouses, regardless of type (b) Type of warehiouse (regular, temporary, loaned space, schoolhouse, etc.) (c) Local capacity in square meters (d) Problems, such as lack of security, flooding, etc. (e) Losses due to such problems (in % and N$) (f) Municipalities served by each warehouse (g) Number of schools in municipality (in line with the municipality in item 6). (h) Warehouse capacity required in m2 to meet peak demand (i) Maximum distance between warehouse and furthest school served (j) Estimated cost of transport between warehouse and schools (k) Annul cost of operation (warehouse staff salary, leases, etc.) 17. The proposed distribution system will be presented in a format which would inchlde the following information: (a) Warehouse concerned under the proposed plan; this will include existng ones which are the responsibility of SEP that do not have too many problems (b) Work to be done: build, repair, lease, enlarge (c) Municipalities that will be served by the warehouse (d) Warehouse capacity (mi2) that will be required by each mumicipality; this should include anticipated enrollment increasesldecreases, and where this is not possible to anticipate, it may be assumed that the requirements will be the same as the prior year (e) Total warehouse capacity (all warehouses) (f) Maximum distance between warehouse and furthest school served (g) Estimated cost of transport between warehouse and schools (h) Annual operating costs; in cases where the warehouse is located at a regional office or sectoral offlice, security costs for that warehouse will be zero (i) Cost of the investment and value of the construction, repair, or modification to be undertaken (j) Annual investment amortization cost of the investment; either 17 or 25 years at an interest rate similar to that paid by PARE. 18. In order for the proposed system to be worth embarking on, the amount invested will need to be less than the savings. In other words, the annual recurrent costs of the current -92 - ANNEX 11 PHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK system (losses + transportation + operating costs) less the recurrent costs of the proposed system (transportation + operating costs) should be greater than the annual amortization of the investment. If in the first analysis the comparison is unfavorable, then it will be necessary to either reduce the investment or find ways of increasing the recurrent cost savings. This could possibly be done by relocating warehouses closer to schools served. L: Construction Unit Costs 19. Analytical Framework. The unit costs for each type of construction were established after assessing different building methods and administrative procedures. The analysis started with the most representative type of construction, the single room schoolhouse, and generalized to other construction types. Smaller, community-based civil works are less expensive than larger ones put out for bidding. To identify the square meter cost, the following steps were taken: (a) An analysis was performed on a sample of representative construction budgets worth considering because (i) their figures concurred with previous data and (ii) standard models were used. The resulting cost per rn2 was N$913 for SOLIDARIDAD subprojects; (b) Under the 1991 Decentralization and Regionalization Development Project (Loan 3310-ME), SOLIDARIDAD would award the municipality an average of 8 percent of the value of the civil works for project management. The proposed project will pay 7 percent, reducing the average N$913 per m2 to N$905 per m2; (c) The SOLIDARIDAD budgets, however, were only estimates, and if the allocated resources were insufficient, then the community needed to contribute more. This was confirmed by local officials, and is evidenced by half-finished schools, waiting for more resources the following year. Therefore, it will be necessary to add a sufficiunt amount to cover the unpredictable budget modifications. For this, CAPFCE data was used, since the main causes of budget overruns are the same ones as for SOLIDARIDAD, nainely remoteness of the construction sites, and construction during the rainy season. The difference in CAPFCE's costs estimates and final costs has been found to be an average 47 percent. If this percentage is applied to N$905, the result will be N$1,330 per in2, which is the base cost of construction, including all the necessary work in a schoolhouse, such as site preparation, eaves and paving for walkways; and (d) School construction costs also include a 5 percent increase to cover exterior work, such as courtyard enclosures, sidewalks, drainage for rinwater runoff, as applicable. Therefore, N$ 1,330 plus 5 percent equals N$1,397 per in2; this last figure fonns the basic unit cost of classroom construction. 20. Construction Base Costs. A similar method was used to calculate the unit costs for the various facilities to be built under the subcomponent, taking into consideration the requirements of individual units. The costs (summarized in Table 4) are listed as follows: -93- ANNEX 11 PIHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK (a) Schools. Applying the estimated cost of N$1,397/m2 to an average schoolhouse of 36 rn2, results in a cost of N$50,300 or US$16,122. Approximately 35 percent of CAPFCE civil works projects in the stte of Cbiapas, for example, fall wit this cost estimate; (b) iblets. A module of 9 m2, consisting of 3 toilets, 2 sinks and a urinal, will cost US$6,058; (c) Latrines. A module of 4 units with 4 m2, will cost US$2,147; (d) Warehous. A module of 96 m2 with toilet, will cost US$47,436; (e) Supervors' Office. A module of 36 rn2 with toilets would cost of US$17,756; (f) Classroom Furniture. Each classroom will be furnished with 30 individual deskchairs, a teacher's table and chair,- a blackboard and a bookshelf for the Reading Corner and other insutional materials, costing US$1,250; and (g) lbtable Water. The water solution cannot be as easily generalized depending on the conditions existg in each region and even each school case. The average cost of a ckistern was estimated at US$1,282. Table 4: Construction Unit Coss size costs Type (sM2) UnitCost Cost Cost __ ; ~~~~~~~~(N$/mi2) (N$) Community Clsoms 36 1397 50,300 16,122 Toilts 9 2100 18,900 6,058 Latiri-s 4 1675 6,700 2,147 Warehouses 96 1542 148,000 47,436 Supervisor' Offices 36 1539 55,400 17,756 Classroom Funiture N/A N/A 3,900 1,250 Potable Water N/A N/A 4,000 1,282 - 94 - ANNEX 11 PHYSICAL INFRASTRUCTURE AND DISTRIBUTION NETWORK Table 5: Baseline Data for Calculation of Construction Unit Costs Project E!KeIUtDr Cost VAT Sub-total Spo. &Admin. Total Project E'wcutor (N$ (?I) % Amu (N$) |(N$) % Amut $ ($ Hidalgo-l Contzactor 22,584 2,258 24.842 4 994 25,836 53 487 Hidalgo-2 SOLIDARIDAD 30,689 1,676 32,365 8 2,589 34,954 36 Hidalgo-3 SOLIDARIDAD 31,979 1,805 33,784 8 2,703 36,487 36 1,014 Hidalgo4 SOLIDARIAD 31,220 2,349 33,569 8 2,686 36,255 48 Vera Cruz-1 Contractor 33,627 3,362 36,989 4 1,480 38,469 49 785 Vera Cruz-2 Contractor 15,806 1,580 17,386 4 695 18,081 30 603 lhbasco Contractor 40,200 4,020 44,220 4 1,769 45,989 48 958 Guanajuato Contractor 45,554 4,555 50,109 4 2,004 52,113 49 1,064 [MUE BASEr CAPFCE 29.097 2.910 32,007 4 1.280 33.287 32 1.040 Chiapas-73 CAPFCE 27,750 2,775 30,525 4 1,221 31,146 32 992 Chiapas-74a CAPFCE 27,223 2,722 29,945 4 1,198 31,143 32 973 Chiapas-74b CAPFCE 30,814 3,081 33,895 4 1,356 35,251 32 1,102 Chiapas-83a CAPFCE 24,550 2,455 27,005 4 1,080 28,085 32 878 Chiapas-83b CAPFCE 25,814 2,581 28,395 4 1,136 29,531 32 923 Chiapas-90a CAPFCE 43,050 4,305 47,355 4 1,894 49,249 32 1,539 Chiapas-90b CAPFCE 45,314 4,531 49.845 4 1,994 51,839 32 1,620 Chiapas-92a CAPFCE 48,550 4,855 53,405 4 2,136 55,541 32 1,736 Chiapas-92b CAPFCE 54,814 5,481 60,295 4 2,412 62,707 32 1,960 Chiapas-93a CAPFCE 51,550 5,155 56,705 4 2,268 58,973 32 1,843 Chiapas-93b CAPFCE 44,814 4,481 49,295 4 1,972 51,267 32 1,602 Chiapas-94 CAPFCE 41,550 4,155 45,705 4 1,828 47,533 32 1,485 Chiapas-97 CAPFCE 42,814 4,281 47,095 4 1.884 48,979 32 1,531 Chiapas-98 CAPFCE 29,814 2,981 32,795 4 1,312 34,107 32 1,066 Chiapas-99a CAPFCE 35,909 3,591 39,500 4 1,580 41,080 32 1,284 Chiapas-99b CAPFCE 46,814 4,681 51,495 4 2,060 53,555 32 1,674 Chiapas-103 CAPFCE 26,146 2,615 28,761 4 1,150 29,911 32 935 Chiapas-104 CAPFCE 39,814 3,981 43,795 4 1,752 45,547 32 1,423 Chiapas-107a CAPFCE 50,550 5,055 55,605 4 2,224 57,829 32 1,807 Chiapas-107b CAPFCE 58,814 5,881 64,695 4 2,588 67,283 32 2,103 Chiapas-108a CAPFCE 51,050 5,105 56,155 4 2,246 58,401 32 1,825 Chiapas-108b CAPFCE 52,314 5,231 57,545 4 2,302 59,847 32 1,870 Chiapas-109 CAPFCE 44,314 4,431 48,745 4 1,950 50,695 32 1,584 Chiapas-I lOb CAPFCE 58,814 5,881 64,695 4 2,588 67,283 32 2,103 Chiapas-lI la CAPFCE 48,550 4,855 53,405 4 2,136 55,541 32 1,736 Cbiapas-1 12b CAPFCE 30,064 3,006 33,070 4 1,323 34,393 32 1,075 Chiapas-1 14a CAPFCE 50,550 5,055 55,605 4 2,224 57,829 32 1,807 Chiapas-1lSa CAPFCE 40,550 4,055 44,605 4 1,784 46,389 32 1,450 Chiapas-I15b CAPFCE 33,146 3,315 36,461 4 1,458 37,919 32 1,185 Chiapas-1 16a CAPFCE 52,550 5,255 57,805 4 2,312 60,117 32 1,879 Chiapas-I 16b CAPFCE 50,314 5,031 55,345 4 2,214 57,559 32 1,799 Chiapas-1l9 CAPFCE 51,064 5,106 56,170 4 2,247 58,417 32 1,826 Chiapas-121a CAPFCE 49,550 4,955 54,505 4 2,180 56,685 32 1,771 Chiapas-121b CAPFCE 46,814 4,681 51,495 4 2,060 53,555 32 1,674 Chiapas-122a CAPFCE 46,550 4,655 51,205 4 2,048 53,253 32 1.664 Chiapas-122b CAPFCE 40,227 4,023 44,250 4 1,770 46,020 32 1,438 Chiapas-124a CAPFCE 43,550 4,355 47,905 4 1,916 49,821 32 1,557 Chiapas-124b CAPFCE 33,064 3,306 36,370 4 1,455 37,825 32 1,182 Chiapas-127 CAPFCE 46,550 4,655 51,205 4 2,048 53,253 32 1,664 CAPFCE Averag 1,527 July CAPFCE Estimate 1,040 Difference (%) 47 Average Cost per tn2 of 913 boxed area -95 - ANNEX 12 STRENGTHENING OF PLANNING AND POUCY ANALYSIS STRENGTHENING OF PLANNING AND POLICY ANALYSIS Justification 1. The decentralization process under way in Mexico presents new opportunities that challenge educational planners, policymakers, and administrators both at the central avnd at the state level. Concretely, the major challenge is how to continue expansion while quality is improved. The move to decentralization calls for the involvement of authorities at the local, regional, and central levels of policymaking and representatives of the community. Increased participation and negotiation in all areas of decisionmaking are necessary at this particular time. 2. The main lessons learned from previous education projects in Mexico, LAC and other parts of the world should be made available in accessible state-of-the-art to planners and decisionmakers, so that they can study them to learn how to apply them in their local environments. An agreement was reached with Mexican authorities on a series of workshops focused on a range of educational issues such as increasing the quality of education systems so that people leave school with the means to apply knowledge, skij%s and values required for better living; achieving equity in the distribution of educational resources and opportunities to extend education to people of different socioeconomic backgrounds; and improving the efficiency of the educational system through cost-effective strategies. 3. The workshops should provide an opporunity for reflection, discussion and leaming to high level state education officials to examine policy options to maximize efficiency, quality, and equity in the provision of education. The workshops will also challenge these officials to tink about the problems they face in new ways, consistent with the most up-to- date knowledge. About 470 staff-months of fellowship, 90 for overseas traiing and 380 for local traiiing, will be provided for these workshops during the five years of the project. Content 4. An overseas workshop on education assessment will deal with state-of-the-art techniques to properly measure education achievement. The following topics will be included: (a) purpose of test and testing programs; (b) the use of test-derived data to improve education; (c) type of test (non-referenced and criterion-referenced tests); (d) different test formats; (e) planning for a test; (f) reliability and validity; (g) test equating; (h) standardization; (i) field work, data collection; (j) how to analyze and use test results effectively; and (k) how to present test results. This workshop will be offered to central and state level officials in charge of education assessment. It will also cover aspects related with how to establish a state assessment capacity and how to develop and operate an assessment program. About 15 fellowship months of staff training will be provided for this workshop during the first two years of the project. -96 - ANNEX 12 STRENGTHENING OF PLANNING AND POUCY ANALYSIS 5. A local workshop on measurement issues in education assessment will be offered to state level staff in charge of technical issues. About 22.5 fellowship months of staff training will be provided bor this workshop during the first three years of the project. 6. A local workshop on research methodologies and techniques for evaluation of education projects, including methodological designs, survey and qualitative analysis, data collection instruments design, summative and formative evaluation, impact and process evaluation, and research and decision making will be provided to central and state staff. About 20 fellowship months of staff training will be provided during the first and the third year of the project. 7. Two local workshops on education statistics will be provided. The first one, on issues of the education management information system, will be offered to central and state directors for a total of 10 fellowship months during the first and t.ie third years of the project. The second, on education indicators and education statistics data6ses, will be offered to central and state technical staff for a total of six fellowship months of staff training durng the second and fourth years of the project. 8. An overseas workshop on planning and policy analysis will be offered during the first and second years of the project covering the following topics: planning and policy analysis in education systems, educational policy design, education information systems, conducting and using education survey research and evaluation studies, policy analysis tools and techniques, resource allocation modeling, planning for implementation, education and labor market outputs, school governance issues, and multicultur I education. About 54 fellowship months of staff training will be offered to central and state directors. 9. Several seminars will be offered on project administraton to PCU and SPCU staff. The first one, on management and monitoring, will be offered the first, third and fifth years of the project for a total of 33 fellowship months of staff training. The second, on cost account, will be offered the first and third years of the project for a total of 17 fellowship months of staff training. The third one will cover aspects on organization development and will be offered the first and third years of the project for a total of 30 fellowship months of staff training. 10. A series of visits to new and imnovative education models on multigrade schools (Guatemala's Nueva Escuela Unitaria and Indigenous Education Project, PRONEBI; Colombia's Escuela Nueva; El Salvador's EDUCO schools; Chile's 900 schools) and on the assessment systems of Chile and Colombia, will be financed during the first four years of the project. A total of 16 fellowship months of cental and local staff training will be provided. 11. Two kinds of workshops on education microplanning will be provided. The frst one, on methodological and technical aspects for local state planning units will provide for 35 fellowship months of training the first three years of the project. The second will be directed to central and state directors on how to use microplanning for educational decision making. A total of 25 fellowship months for -staff training wi}l be provided. - 97 - ANNEX 12 STRENGTHENING OF PLANNING AND POLICY ANALYSIS 12. Currently, a series of visits have been organized to exchange experiences with PARE implementors. The visits have proved to be successful to disseminate good lessons. The PAREB project will provide for 70 staff months to support exchange visits between participants during the five years of the project. 13. Before the decentralization, DGPPP was in charge of conducting the annual progmming and budgeting exercise at the state level. Currently, DGPPP norms the exercise but each SEE has the direct responsibility of implementing the annual programming and budgeting. Local seminars will be offered during the first two years of the project, to train PCU and SPCU staff in programming and budgeting strategies, budget implementation and evaluation., 14. To faiiliarize PCU and SPCU staff with disbursement and procurement procedures, the project will finance about 21.1 fellowship months of staff training to attend international and national seminars and workshops on these topics during the five years of the project. 15. To improve the capacity for statistical analysis and data manipulation among staff involved with the project at the central and state levels, a workshop on the use statistical packages will be offered eight times during the liif of the project for a total of 30 staff months of training. -98- ANNEX 13 TERMS OF REFERENCE FOR EVALUATION & PROJECT MIS TERMS OF REFERENCE A. Process Evaluation 1. Objectives. The main objective of the process evaluation is to assess the quality and the short-term effects of the project's main subcomponents, specifically: teacher training, teacher incentives, supervision, pedadogical network, book distribution, Reading Corners, books for indigenous schools, and community participation. This will complement the monitorirg evaluation (conducted directly by the PCU and the SPCUs) to assess whether the projects structure and strategies are being adequately implemented and how this strucure and the related activities should be changed or adjusted to meet the project's objectives. 2. Methodology. Process evaluaticn will rely mainly on systmatic observations at participating communities and schools and will be based mainly on a case study approach combining quantitative as well as qualitative research techniques. 3. "ne Frame. The observations will be undertaken during the whole implementation cycle of the project, but mainly during the first four years of project implementation to provide feedback for management decisions. 4. Elements of Research Proposal for Process Evaluation. The process evaluation proposals should include: (a) Specification of main research (process evaluation) questions; (b) Sampling framework; (c) Proposed measures and indicators as well as draft instruments; (d) Definition of logistics of field work; (e) Definition of schedule of field work; (f) Definition of methods for data treatment, including data processing and analysis. Qualitative evaluation methods will be required (direct observation, structured and semi-structured interviews, open-ended questionnaires, focus groups, etc); (g) Implementation schedule specifying the tasks to be undertaken and their respective durations; (h) Proposed staffing; (i) Detailed budget including costs by activity and type of expenditures, i.e., direct (personnel and others) and indirect costs for each process evaluated; and (j) Coordination mechanisms with project administrators should be discussed with CONAFE and state authorities and incorporated into the proposal. 5. Criteria for Proposal Selection. The criteria for proposal selection include the pertinence between the methodological and technical aspects of the proposal and the specified elements; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and experience of the researchers in education research, particularly in process evWaluation. -9 - ANNEX 13 TERMS OF REFERENCE FOR EVALUATION & PROJECT MIS B Project Management Information System 6. Genera! Objectives. To develop an information system based on simplified data collection formaK; and analytical and feedback procedures to improve project planning, budgeting, and management. The project MIS will be designed to allow statistical information to improve the overall CONAFE-PCU management. The project would support the integration of databases into an efficient information storage and retrieval system at the central and local levels (CONAFE and SPCUs), built around appropriate hardware and management software. The design of the system will reflect information needs idertified during a preparatory study, the results of which will be reviewed at negotiations. 7. Information System Design (a) Objective. To design a system to provide timely and valid information for follow-up purposes and problem identification during project implementation; (b) Technical Requirements. The information system is required to: (i) be based on portable hardware and software such as standard microcomputers, Unix-like operating systems, and so called 4th generation programming languages to shorten the system development time, preserve independence from vendors, and alleviate problems of high personnel turnover; and (ii) include the following: specification of the different databases needed and their relationship; the information structure to identify sources and users of information for planning and management purposes; a system stucture to identify information volumes and the different applications; a technology structure to specify the software and hardware to be used; a training program for administrators and operators; data collection instruments; data collection and dissemination procedures, including operation manuals; and an implementation schedule, including specification for software and hardware acquisition, and pilot testing and overall implementation; and (c) Cnrteria for Proposal Selection. The criteria for proposal selection must include the pertinence between the methodological and technical aspects of the proposal and the specified system characteristics; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and researchers' experience with information system design. -100- ANNEX 14 TERiMS Gi REFERENCE FOR STUDIES TERMS OF REFERENCE FOR STUDIES A. Preschool Education Study 1. Objectives. The study attempts to generate the necessaty infonmation to: (a) analyze the preschool education sector; (b) identify and discuss the major issues and constraints pertaining to the sector; (c) describe the Governments' preschool education strategy; and (d) make recommendations for improvements in the quality, efficierny and access to preschool education. 2. Specific Issues. The specific issues to be included in the study are: (a) The extent to which the current structure of preschool education is adequately serving Mexico's needs for human resources development, and evenally how such structure and the related strategies should be changed or adjusted to meet thosc; needs; (b) The extent to which preschool education quality is adequate in terms of learning achievement and students' psycho-social development; (c) The search for the most cost-effective modality(ies); and (d) The demands of preschool education expansion. 3. Methodology. The study will be based on secondary information analysis. The following elements must be included in the final report: (a) An historical overview and documentation about the significant improvements of access to preschool education in Mexico, including enrollments, teahhing staff, and number of schools; a description of different forms of preschool education (formal and informal systems); an eammination of the public expenditures, by type of expenditure and unit costs, in preschool education; (b) A description of the administrative structure of the sector, stressing the role of SEP and the states in the context of the recent education decentralization; (c) A description of the education strategy of the Govemment for the preschool sector as descrlbed in the 1992 ANAM and the 1993 LGE; (d) An analysis of the main issues in the preschool education sector, including equity and access; internal efficiency; quality of preschool education; characteristics of the teaching staff, including quality of teaching, teachers' formation and inservice training; supervision system; infrastrucre; resources allocation; and community participation; and (e) A list of recommendations responding to the issues discussed in part (d). 4. Time Frame. The study would be undertaken during the first year of the project by a researcher or a group of researchers, with high qualifications and experience in research and education policy analysis, under the technical direction of the General Directorate for Preschool Education. -101- ANNEX 14 TERMS OF REFERENCE FOR STUDIES 5. Elements of Researcb Proposal. The final research proposal should include the following elements: (a) Specification of report contents; (b) Description of information that will be used for each section; (c) Definition of schedule of data analysis and report writing. A final report should be produced and delivered to CONAFE and the Bank; (d) Detailed budget, including direct (personnel and others) and indirect costs; and (e) Coordination mechanisms with CONAFE. 6. Criteria for Proposal Selection. The criteria for proposal selection include the pertinence between the proposed sources of information and the report contents; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and experience of the reseachers in education policy analysis and education research. D. Secondary Education Studies 7. Introduction. According to the 1993 LGE, one of the most pressing policies of the education system is to expand mandatory basic education to also inclu'X the first three years of secondary education. The objective of the secondary education stuaies would be to help establish Government policies to improve coverage at the same time that the quality, relevance, and cost-effectiveness of secondary education are improved. Besides the assessment of internal and external efficiency to see the extent to which the current secondary education curriculum is adequately serving Mexico's needs for human resources development, it is necessary to analyze the following aspects: management, curriculum, teacher training, finance, and fcilites Five studies will be supported under the project to examine: (a) Secondary Education Assessment; (b) Socioeconomic Analysis of Secondary Education Dropouts; (c) Teacher' and Supervisors' Working Conditions and Attitudes; (d) Effective Secondary Education Schools; and (e) Financial Implication of Basic Education Expansion. Rl. Secondary Education Assessment 8. Objectives. The diagnostic study on secondary education attemnpts to generate the necesay information to: (a) analyze the secondary education sector; (b) identify and discuss the major issues and constraints pertining to the sector; (c) describe the Governmenfs secondary education strategy; and (d) make recommendations for improvements in the quaity, efficiency and access to secondary education. 9. Specific Issues. The specific issues to be included in the study are: (a) The extent to which the curret stmcture of seondary education is adequately serving Mexico's needs for human resource development, and eventually how such structure and the related strategies should be changed or adjusted to meet those needs; - 102 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES (b) The extent to which secondary education quality is adequate in terms of learning achievement; (c) The search for the most cost-effective modality(ies); and (d) The nature and costs of secondary education expansion. 10. Methodology. The study will be based on secondary information analysis. The following elements must be included in the final report: (a) An historical overview and documentation about the coverage and access to secondary education in Mexico, including enrolhnents, teaching staff, and number of schools; a description of different modalities of secondary education, by private and- public sub-systems; and an examination of the public expenditures, by type of expenditure and unit costs; percentage of GNP and of government spending; -(b) A description of the administrative structure of the sector, stressing the role of SEP and the states in the context of the recent education decentralization. Particular attention should be given to whether the decentralized system of managig, organizing and financing the secondary system is adequate, and how financing and management should be changed to meet future needs, including to what extent decision making should be decentralized to individual schools and directors. (c) A description of the education strategy of the Government for the secondary education sector as described in the ANAM and LGE; (d) An analysis of the main issues in the secondary education sector, including equity and access; internal efficiency, including transition rates from prinary to secondary, dropout and repetition rates, student-teacher ratios, completion rates; characteristics of the teacher's body, including quality of teaching (if available, quality of inputs, including textbooks, teaching and learning materials, supervision, school construction and maintenance, laboratories and workshops; and quality of output as defined by learning and achievement, including results of standardized tests in subject areas), teachers' formation and inservice training; supervision system; infastructure; resources allocation; and community participation; and, (e) A list of recommendations responding to the issues discussed in part (d). 11. lTne Frame. The study would be undertaken during the first year of the project by a researcher or a group of researchers, with high qualifications and experience in research and education policy analysis, under the technical direction of the Subsecretariat for Secondary Education. 12. Elments of Research Proposal. The final research proposal should include the following elements: (a) Specification of report contents; (b) Description of information that will be used for each section; -103- ANNEX 14 TERMS OF REFERENCE FOR STUDIES (c) Definition of schedule of data analysis and report writing. A final report should be produced and delivered to CONAFE and the Bank; (d) Detailed budget, including direct (personnel and others) and indirect costs; and (e) Coordination mechanisms with CONAFE. 13. Criteria for Proposal Selection. The criteria for proposal selection include the pertinence between the proposed sources of information, and the report contents; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and experience of the researchers in edscation policy analysis, and education research. B.2. Socioeconomic Analysis of Secondary Education Dropouts 14. Objectives. The study aims at identifying the socioeconomic and demographic characteristics of secondary education dropouts as well as the geographical location of the dropouts to propose ways to increase access to secondary education by underprivileged groups. 15. Methodology. The study will be based on secondary infbrmation analysis. Two sets of information will be analyzed: (a) SEP aggregate data (municipality and state level) about secondary education coverage and internal efficiency indicators (absorption rate, repetition, dropout, and efficiency rate), and CONAPO poverty indicators; and (b) individual data (individuals and families) from the INEGI household surveys on labor and employment. The first set will be analyzed to identify the geographical location of secondary education backwardness (rezago) and its correlates with poverty indicators. The second set will be analyzed to identify the socioeconomic characteristics of secondary education dropouts. 16. TIme Frme. The study would be undertaken under contractual arrangements with CONAFE over the first year of the project by a researcher or a group of fesearchers, with high q. ilifications and experience in research and education policy analysis, under the technical direction of the Subsecretariat for Secondary Education. 17. Elements of Research Proposal. The final research proposal should include both type of analysis, ad should specify the following elements: (a) Report contents; (b) Description of informadon that will be used for each type of analysis, including the models to be analyzed, including comparison by socioeconomic groups -including gender, geographical region, income, ethnicity, rural/urban/urban marginal. Multivariate analysis must be used; (c) Definition of schedule of data analysis and report writing. A final report should be produced and delivered to CONAFE and the Bank; (d) Detailed budget, including direct (personnel and others) and indirect costs; and (e) Coordination mechanisms with CONAFE. -104- ANNEX 14 TERMS OF REFERENCE FOR STUDIES 18. Criteria for Proposal Selection. The criteria for proposal selection include the pertinence between the proposed sources of information, the methodological and technical aspects, and the specific research elements; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and experience of the researchers in survey research and statistical analysis. B.3. Teachers' and Supervisors' Working Conditions and Atitudes 19. Objectives. The study aims at collecting and analyzing, for the first time in the country, information about secondary education teachers, school principals, and supervisors. The information will include: (a) socioeconomic and family background characteristics; (b) experience in the sector; (c) working conditions; (d) pedagogical practices; (e) attitudes toward the secondary education curriculum, and problems facing secondary education; and (t) self-reported training needs. 20. Methodology. The study requires survey information from a national sample of secondary education teachers, school principals, and supervisors. 21. ISme Vrame. The study would be undertaken during the second year of the project by a researcher or a group of researchers, with high qualifications and experience in survey research and education policy analysis, under the technical direction of the Subsecretariat for Secondary Education. 22. Elements of Research Proposal. The final research proposal should include the following elements: (a) Specification of main research questions; (b) Sampling framework; (c) Proposed measures and indicators as well as draft instruments for data collection; (d) Definition of logistics of field work; (e) Definition of schedule of field work; (f) Definition of methods for data treatment, including data processing, and analysis. (g) Implementation schedule specifying the tasks to be undertaken and their respective durations. This element should also include report schedule; (h) Proposed staffing; (i) Detailed budget including costs by activity and type of expenditures, i.e. direct (personnel and others) and indirect costs for each process evaluated; and (.i) Coordination mechanisms with project administrators should be discussed with CONAFE and state authorities and incorporated into the proposal. 23. Criteria for Proposal Selection. The criteria for proposal selection include the pertnence between the methodological and technical aspects of the proposal and the specific research elements; the pertinence of the schedule proposed (adequate relation between tasks -105 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES and time proposed for implementation); and experience of the researchers in survey research and statistical analysis. B.4. Effective Secondary Education Schools 24. Objectives. Identify the educational characteristics of effective secondary education schools. Effective schools are those with high internal efficiency indicators, including educational achievement. 25. Specific Issues. Describe what education inputs effective school use and how they use them. What process factors distinguish these schools from others in their same education districts. Attention should be given, among others, to the school environment, school goals and expectations, school sense of community, and school instructional leadership. Teachers and principals' attitudes, and behavior need to be included in the analysis. 26. Methodology. A case study approach (combining qualitative and quantitative methodologies) should be used to study a selected controlled sample of 6 to 8 schools where students get high scores in cognitive test (DGEIR could be used as a source of information). 27. T1me Frame. The study would be undertaken during the first year of the project by a researcher or a group of researchers, with high qualifications and experience in research and education policy analysis, under the technical direction of the Subsecretariat for Secondary Education. 28. Elements of Research Proposal. The final research proposal should include the following elements: (a) Specification of main research questions; (b) Sampling framework; (c) Proposed measures and indicators as well as draft instruments for data collection (at district --supervisor level; school --school principal and teachers; and classroom and student level); (d) Definition of logistics of field work; (e) Definition of schedule of field work; (f) Definition of methods for data treatment, including data processing, and analysis. (g) Implementation schedule specifying the tasks to be undertaken and their respective durations. This element should also include report schedule; (h) Proposed staffing; (i) Detailed budget including costs by activity and type of expenditures, i.e. direct (personnel and others) and indirect costs for each process evaluated; and (j) Coordination mechanisms with project administrs should be discussed with CONAFE and state authorities and incorporated into the proposal. 29. Criteria for Proposal Selection. The critera for proposal selection include the pertinence between the methodological and technical aspects of the proposal and the specific -106 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES research elements; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implementation); and experience of the researchers in qualitative analysis and survey research analysis. B.5. Financial Implications of Basic Education Expansion 30. Objectives. One implication of the General Law of Education is the mandatory expansion of basic education to include the three grades of lower secondary education. This is based on two assumptions: (a) that education is a public good, and without public subsidy people would invest in less than the socially optimal amount of education; and (b) the expansion, through public subsidy, will promote equity by removing the ability to pay as a condition for access. Given scarce public resources, it is critical that a detailed assessment be made of the costs and timetable for full implementation. The study should yield reliable and detailed cost estimates, along with a recommendation of a strategy and timetable for its implementation. 31. Specific Issues. The cost implications of extending basic education are complicated by a number of factors: (a) there are four main types of secondary education (normal, vocational, distance, and special) with varying unit costs; (b) a significant, but highly variable, proportion of places in secondary school classrooms are vacant, thus a number of children could be absorbed at little increase in operating costs as the basic infrastructure already exists; but (c) the location of unattended children in relation to physical infrastructure is not fullly known at present, thus making it difficult to estimate construction requirements. 32. The study will look at each of these issues in detail, and take these issues into account. Estimates will be made of the following incremental costs: (a) Capital - costs of constructing additional schools and classrooms; costs of training additional teachers; other investment costs. (b) Recurrent - costs of additional teachers' salaries; didactic materials; student materials; and other operating costs. 33. It is also necessary to study the available, but unused capacity, which apparently is large and could absorb a significant proportion of the increase in most urban areas with minimal cost increases. The rural scenario, in which the Government is planning to expand distance education modality ("TV Secundaria"), needs to be studied separately. 34. In the 1993-1994 academic year, no increase was observed in the enrollments in secondary education. The Govermment is designing a campaign to stimulate enrollment. The cost associated with these campaigns will need to be included in the study. 35. Methodology. In order to assess alternative policies for expanding secondary education, two factors need to be taken into account: public resources and demographic pressure. Regarding public resources available for public education, it is necessary to analyze the trend in public spending on education as a share of the total education budget and in the government budget as a share of GNP. The expectation of the economic growth in the - 107 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES future needs to be analyzed to see if there is the potential for increasing government spending. Regarding demographic conditions, it is necessary to analyze tie changes and shift in population trends, specifically the grwth of secondary school-age population. A comparison between the growth of public spending on education and the growth of the school-age population will indicate if enrollment might increase. To complete this analysis, it is necessary to project the resources available for expanding secondary education starting from initial conditions including: current GDP, annual growth rate (economy and school-age population), government budget (total and for the sector), share of government budget in GDP and share of education budget in the government budget. Then, different scenarios need to be studied depending on the assumptions related to changes in share of government budget in GDP and of education in government budget, including altemative strategies and timetables for the full implementation of their policy. 36. Tlme Frame. The study would be undertaken during the first year of the project by a researcher or group of researchers, with appropriate qualifications and experience in economic research. The study should be completed by August, 1995 and will be subject to joint review by the Government and the Bank. 37. Elements of Research Proposal. The final research proposal should include the following elements: (a) methods for estimating and analyzing the cost of expanding secondary education enrollments, including measurig unit and marginal costs; (b) sources of infbrmation; (c) critena for defnition of different scenanos (combining modalities, expansion of existing schools, etc); (d) Implementation schedule specifying tasks to be undertaken and their respective durations; (e) Proposed staffing; and (f) Detailed budget including costs by activity and type of expenditures, i.e. direct (personnel and others) and indirect costs for each process evaluated. 38. Criteria for Proposal Slection. The criteria for proposal selection include the pertinence between the methodological and technical aspects of the proposal and the specific research elements; the pertinence of the schedule proposed (adequate relation between tasks .nd time proposed for implementation); and experience of the researchers in economic and financial analysis. C Study on Environment and Educaton 39. Objectives. The main objective of the study is to improve environmental education at basic levels of Mexican schools on the basis of a review of the state of the current state of the literature and experience on education and environment in Mexico, including contents of educaton programs at different education levels, institutions (public and private) providing educational services, and resources invested in environmental education. -108 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES 40. Specific kisues. The specific issues to be included in the study are: (a) To identify the policy frmnework on enviromnental education and the extent to which the current programs are adequately serving the national policy on science and technology; (b) To assess how the curriculum, at different education levels in both formal and non-formal systems, has incorporated environmental concerns into the school culture and the overall teaching and learming process, and how it has possibly affected students' attitudes and behavior toward natural resources, their use and conservation; (c) To describe the contents of environmental education in teacher training programs, textbooks, teacher guides, Reading Corners, and other teaching and learning materials; (d) To analyze how environmental education has been disseminated or supported through mass-media mechanisms; (e) To specify the impact of natural hazards (earthquakes, floods, etc.) on educational fcilides, school readiness, and teacher and student training; and (f) To identify the resources invested in environmental education. 41. Methodology. The study will be based on secondary information analysis applied with a historical perspective. The data-gathering process would include not only the identification of the corresponding and updated bibliography but also visits to authorities and scholars, specialized sectors at SEP and other institutions, and a representative group of schools. A list of conclusions and reconmendations responding to the specific issues would be included in the final report. 42. Tlie Frame. The study would be undertaken under administrative arrangements with CONAFE over four months of the first year of the project by a researcher with high qualifications and experience in environmental education in Mexico. The researcher would be required to submit a research proposal prior to the study. 43. Elements of Research Proposal. The final research proposal should include the following elements: (a) Specification of report contents; 0b) Description of information that will be used for each section; (c) Definition of schedule for information gathering and analysis, and report writing. A final report would be delivered to CONAFE and the Bank; (d) Detailed budget, including dirct (personnel and others) and ndirect costs; and (e) Coordination mechanisms with CONAFE. 44. Criteria for Proposal Selection. The criteria for proposal selection include the consistency between the proposed sources of information and the report contents; the adequacy of the schedule proposed (adequate relation between tasks and time proposed for inplementation); and experience of the researchers in environmental education. - 109 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES DI Teaching Science at Primary Schools 45. Objectives. To evaluate and select an innovative and cost effective approach to teach primary school children of Mexico the basic scientific foundations of everya life and environment, and raise their awareness of the scientific understanding of technology. The selected approach would be recommended to be adopted as a national strategy for science education at the prunary education level in Mexico. 46. Specific Issues. Two models of science teaching in primary rural schools will be evaluated in order to generate the necessary empirical data to establish their comparative cost-effectiveness. The specific issues to be evaluated are: (a) The impact of the models on students' cognidve achievement in sciences, problem solving, and attitdes toward self, school, and society; (b) The administrative feasibility of each model implementation; and (c) The search for the most cost-effective modality. 47. Structure of the Study. The study will be based on a teaching experiment developed (under the Second Primary Education Project) in about 270 classrooms (approximately 120 primary schools ) of Mexico during two school years. The study would be undertaken over a three-year period by a group with high qualifications and experience in research and education policy analysis. A final report on the experiment is due in October 1997. 48. Research Methodology. To assess the impact of different models of science education, a cost-effectiveness analytic framework wiUl be applied. To the extent that cognitive achievement, problem solving, and students' attitudes can be measured, a cost- benefit approach wil be implemented. The cost analysis should focus on differences in the cost between the different modalities of science education. The examination of model effecfiveness will use the educational production function tools. 49. The fllowing elements must be included in the evaluation proposal: (a) The evaluation would look for the following three possible effects of different models on the student: (i) Changes in cognitive achievement; (ii) Changes in problem solving skills; and (iii) Changes in attitudes toward science and technology, self, school, and society. (b) The evaluation would contemplate three testing points in time for assessing the possible differential effects of different models: (i) A base line, at the beginning of an academic year, measuring attitudes, problem-solving slklls, and knowledge about the learnImg objectves of the science curriculum; (ii) Effects observable at the end of an academic year, after the students have experienced the models; and (iii) Effects observable at the end of the folowing year. This requires a longitudinl panel data gathered from the same cohort of students. -110 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES (c) The sample design should take into account the different types of primary schools in the states of the project. Students from schools not participating in any of the two models will serve as the first control group, but students in each model will form a control group when compared with students in other models; (d) The unit of observation will be the student. Because students from the same school will have many characteristics in common, a more aggregate exercise using the school as a unit of analysis will fail to test the hypothesis we are interested in, because of masking of individual differences through averaging; (e) The dependent variables to be included should be as follows: (i) Continuous cognitive and problem solving skills measures; and (ii) attitude measures. (f) The independent variables will include measures of parents' socioeconomic background; student gender and age; community socioeconomic characteristics; school/teachers characteristics, such as school nature and modality, school - expenditure per student, teacher quality, school quality, through and index of quality of school inputs; and (g) Hypothesis testing. Crosstabulation and regression analysis will be used in order to attempt to detect any significant effects of particular models on students' achievement and attitudes, as follows: (i) The regression will be of the general type: Y = f(Model, region, background, individual, and school characteristics), where Y is one of the dependent variables discussed above; and (ii) To measure the cost-effectiveness of each model, the study will require identification of the costs of each model, including supervision of imnplementation, teacher training, materials, etc. 50. Elements of Research Proposal. The final research proposals should include the following elements: (a) Specification of main research (evaluation) questions; (b) Design of sample; (c) Design of information gathering instruments; (d) Definition of logistic of field work, including mechanisms to reduce the attrition rate; (e) Definition of schedule of field work; (f) Definition of data processing; (g) Definition of statistcal models and methods of analysis to be used. (h) Implementation schedule specifying the tasks to be done and their respective durations. This element should also include report schedule. A report should be produced and delivered to CONAFE and the Bank after the first two measures. The final report should include the results from all measures and the cost-effective analysis; and (i) Detailed budget, including costs by activity and type of expenditures, i.e., direct (personnel and others) and indirect costs. The implementation schedule -11 1- ANNEX 14 TERMS OF REFERENCE FOR STUDIES and the budget would allow the contract to be divided into several phases and payments to allow Bank review and approval on intermediary steps (e.g., questionnaire and test design, sample selection, review of first report). 51. Criteria for Proposal Selection. The criteria for proposal selection include the pertinence between the methodological a id technical aspects of the proposal and the specified research elements; the pertinence of the schedule proposed (adequate relation between tasks and time proposed for implemenation); and experience of the researchers in education research, particularly in education evaluation. 52. Study Coordination and Preparation. CONAFE, as the agency responsible for the proposed project, will coordinate the experiment/study in conjunction with SEB and SEEs, which will be responsible of the substantive matters. 53. A specialist will be hired to serve as study/experiment coordinator at CONAFE under terms of refrence agreed upon with the Bank. Resources must be available for easy mobilization and frequent visits to the study-related activities in the project states and schools. In the SEEs and SPCUs, liaison personnel must be selected and trained in a timely manner, in order to cooperate with the coordinator in the experiment monitoring process. The coordinators contract would start in March, 1995 and end with the final report delivery. 54. A consultant would be hired in February, 1995 for four months (under terms of reference agreed upon with the Bank) to lead the preparation process, including curriculum, materials and teacher training design. The consultant's activities would be based on a close dialogue with the Mexican authorities and other information-gathering strategies. 55. The following activities would be developed by these consultants: (a) Teaching Experiment. The study will be conducted as a step-by-step assessment of an actual teaching experiment taking place in project schools and classrooms during the school years of 1995-96 and 1996-97. A curriculum will be designed, teachers will be trained on the selected methodologies, and instructiomnal materials have to be developed, as follows: (i) Curriculum Design a. A curriculum will be developed by SEB and CONAFE for the first, third, and sixth grades, and the necessary equipment purchased or made. Reference has to be made to the best examples of modem or hands-on science teaching methods available. b. To help SEB design such curriculum, it is recessary to gather information on the best experiences carried out (mainly in Latin America) in science teaching at prinmry education level. C. Tvo different approaches to science teaching at this level would be selected to be tested in the schools. The final report would recommend (with justification based on cost-effectiveness) the best one to be applied to the Mexican schools. -112 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES (ii) Teacher Training a. Current teachers in different types of project schools will be selected to be adequately and timely trained to play their roles as expected in their respective schools and classrooms. b. Two two-week (80 hours each) training sessions will take place in August, 1995; and August, 1996. A detailed program for the teacher training programs must be agreed upon with the Bank. c. Training must be given by experienced trainers (acceptable to the Bank) in terns of content and methodology. Each trainer specializes in one of the two approaches. (iii) Instructional Materials and Guides. Grade-related materials (according to the curriculum) must be developed (made, printed, purchased). Concrete experience and local experiments must be emphasized over "bookish" description and formulation. Simple kits must be bought or locally developed. (b) School Selecidon. A random sample of 270 (180 experiment + 90 control) classrooms will be selected (and confirmed by an agreement) to participate in the study, along the following lines: (i) In each of the selected states (about 4) a set of representative (first, third and six-graders; peri-urban, rural, indigenous schools, etc.) classrooms would be selected in order to achieve a total four-state figure of 180 experiment classrooms; (ii) The 90 control classrooms should be located either in the same school as a corresponding experiment classroom or in a comparable school of the same municipality or state; (ii) Each study school and classroom needs to be monitored either by the national coordinator or the state coordinator. An early visit should be paid to each selected school to recommend the experiment and support the science teacher; (iv) Supervisors and school principals must be oriented (during their training programs or during visits to their schools) on the objectives and strategies of the experiment. Their support is extremely important for the success of the study in the schools; (v) Some occasional visitors would be invited (possibly for a three-day seminar with education authorities and the consultant) to: discuss the strategies and results of their curricular, methodological and teacher tning experiences; make specific recommendations on these topics; and identify a basic bibliography on the subject; and (vi) A mid-term evaluation would be undertaken in June 1996 to assess the experiment development and make recommendations. CONAFE, other SEP sectors, three external consultants, representatives of the ten state SPCUs, and approximately ten project teachers would take part in this evaluation. (c) Calendar (i) Consultant, and Mexican counterparts selected: January 1995 (ii) Consultant starts preparation: February 1995 -113 - ANNEX 14 TERMS OF REFERENCE FOR STUDIES (iii) International (Latin Amer.) experiences discussed: February 1995 (iv) Coordinator hired (CONAFE): March 1995 - October 1997 (v) Seminar for experience reporting: March 1995 (vi) Study schools selected: April 1995 (vii) Trainers selected: May 1995 (viii) Curriculum designed and equipment selected: Ju 1995 (ix) Teachers selected to be trained: June 1995 (x) Training strategies developed: July 1995 (xi) First teacher training session: August 1995 (xii) Experiment takes place from September 1995 through June 1997; Second teacher training session: August 1996 (xiii) Progress reports due: 1995 - June, October; 1996 - February, June, October; 1997- February, June (xiv) Final report due: October 1997 (xv) Action plan developed by SEP: June 1998 -114 - ANNEX 15 TEACHER INCENTIVES PROGRAM TEACHER INCENTIVES PROGRAM 1. Objectives. The program seeks to promote regular attendance by teachers, so that through their regular presence in the classroom, quality teaching will be fostered. This is particularly targeted to isolated schools in rural and indigenous communities, which have identified problems of teacher -bsenteeism or frequent turnover. 2. Goals. The subcomponent intends to provide approximately 21,100 teacher/years worth of incentives to approximately 7,000 teachers in the project states over the course of the project life, as illustrated in TAble 1: Tbble 1: Teacher/Years Selected by State and Project Year 94195 95/96 96/97 97/98 98/99 Ibtal Caampeche 67 134 201 268 335 1,005 Durango 63 126 188 251 314 942 Guanajuato 97 195 292 390 488 1,462 Jalisco 238 476 713 951 1,189 3,567 Michoacan 320 640 961 1,281 1,601 4,803 Puebla 147 293 440 586 733 2,199 San Luis Potosi 42 84 127 169 211 633 TIabasco 74 148 221 295 369 1,107 Veracruz 333 665 998 1,330 1,663 4,989 Yucatan 28 56 84 112 140 420 Total 1,409 2,817 4,225 5,633 7,043 21,127 3. Desciption. For incentive granting purposes, "isolated commuunities" means those: (a) located beyond at least one-hour walking distance off the man roads or two- hour vehicle ride on secondary roads; and (b) marked by low income levels and lack of basic services. 4. The incentives can be given to teachers in any type or level of teaching position, with the exception of teachers who already have another SEP compensation for working in small and dispersed communities. 5. A bilingual teacher with no formal teaching title or licenciatura can be granted the incentives, if the director of the respective Normal School approves of the grant, and the -115 - ANNEX 15 TEACHER INCENTIVES PROGRAM teacher is committed to continuing the formal teacher training studies and is willing to submit a progress report every six months. 6. The incentive will be linked to the school and not to the teacher. Therefore: (a) more than one teacher per school can be grnted the incentives; and (b) if the teacher leaves that school, he/she will not carry that incentive with him/her. 7. As soon as they are selected for the program, the teacher is informed and receives complete information on the program and obligations implied. 8. Criteria, for School Seleton. The schools were selected in accordance with the following criteria: (a) General Primary Schools: (i) Schools closed for extreme isolation and the lack of teachers and which are committed to be reopened upon receiving the incentive; (ii) Unitary schools in general located far away from main roads; (iii) Two-teacher schools in zones of average marginality and extremely difficult access; and (iv) Three-teacher schools in zones of extreme poverty and difficult access with frequent teacher turnover; and (b) Indigenous Primary Schools: (i) All primary schools; and (ii) The incentive progamm can support the creation of new indigenous schools when justified by the demand. 9. Role of the School Council. The incentives will be granted to teachers with previous endorsement by the School Coucil of the recipient school. The School Council will monitor and verify the teacher's attendance. If the Council agrees, teachers can compensate for school absences by giving classes on weekends or by extending the school year so that the students can have the 200 school days required by law. 10. Costs. The monthly incentive corresponds to N$950 (=US$305) per month or N$11,400 (US$3,650) a year, and the projected disbursement is three times per year based on actual teacher attendance. In order to keep up with inflation, the program will add 10 percent per year to the established teacher salary. The incentive amount will be revised every July by SEP/DGPPP. 11. Starting with the school year of 1994/1995, the program will cover 20 percent of the projected number of eligible teachers, so that it can reach all the estimated eligible teachers by the fifth project year, as outlined in Table 2. -116- ANNEX 15 TEACHER INCENTIVES PROGRAM abble 2: ¶Uacher Incentives by State Base Costs (thousands of N$) 1994/95 1995196 1996/97 1997/98 1998/99 Total Unit Cost 11.4 12.6 13.8 15.24 16.8 Campeche 763.8 1,688.4 2,773.8 4,084.32 5,628.0 14,938.3 Duango 718.2 1,582.6 2,599.9 3,825.24 5,275.2 14,001.1 Guanajuato 1,105.8 2,457.0 4,029.6 5,943.60 8,198.4 21,734.4 Jalisco 2,713.2 5,992.6 9,844.9 14,493.24 19,975.2 53,019.1 Michoacan 3,648.0 8,069.0 13,256.3 19,522.44 26,896.8 71,392.6 Puebla 1,675.8 3,694.3 6,069.2 8,930.64 12,314.4 32,684.4 San Luis Potosi 478.8 1,063.4 1,747.1 2,575.56 3,544.8 9,409.7 a'hasco 843.6 1,859.8 3,055.3 4,495.80 6,199.2 16,453.7 Veacruz 3,796.2 8,381.5 13,769.6 20,269.20 27,938.4 74,155.0 Yucatin 319.2 705.6 1,159.2 1,706.88 2,352.0 6,242.9 ToWa 16,062.60 35,494.20 58,305.00 85,846.92 118,322.40 314,031.12 PROJECI AUTHORITY MATRIX Direction/ Central Central State State-level Local Component Subcomponent Activity Planningj Irmplementation Technical Implementa- Tebhnical Participation Beneficiaries .______ I Assistance tion Assistance Huma; Resnarces Development Training of SEP CONAFE, Central SEEs State N/A Teachers & lachers & DGEP & DGEI Technical Technical Principals Administrators Gmup, PAM, Groups Consultants Training of SEP CONAFE, Consultants SEEs N/A N/A Supervisors Supervisors DGPPP, DGPRL & DGEP Educational Teaching Materials & Student SEP CONAFE DGEP, DGEI SEEs N/A Community Teachers & Material Packages & Consultants (distribution) Students Resources Reading Corners SEP & UPE CONAFE DGEP, DGPPP SEEs N/A N/A Teachers & & Consultants Students Indigenous Texts & Materials DGEI CONAPE Consultants SEES N/A Community Indigenous (input) Students astructure Construction - SEP & CAPPCE & N/A State-level N/A N/A Students & Improvement CAPFCE NAFIN CONAFE CAPFCE & Teachers SEES Construction - SEP & N/A N/A SEEs & SOPE & Communities Students & Community SEEs Munici- Statelevel & School Teacbers .________ ________ __________ palities CAPFCE Councils Maintenance SEEs N/A N/A Munici- SOPE Communities, Students & palities Supervisors & Teachers School Councils Istitutional Managemt Planning & SEP CONAFE DGPPP, SEEs N/A N/A High-level 0 Strengthening Capacity Policy Analysis DGEIR & officials at P i Consultants central & sa _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~~~~~~levels Project MIS SEP CONAFE DGPPP, SEES Consultants N/A PCU & DOEIR & SPCUs 0 Consultants Direction/ I Central Central State State-level Local Component Subcomponent Activity Planning lImplementation Technical Implementa- Technical Participation Beneficiaries Assistance tion Assistance Education SEB CONAFE Consultants SEEs (liaison N/A Teachers (for SEP Studies for science science study) study) Project SEP CONAFE Consultants SEES N/A Municil alities Education Promotion Authorities. Students & .________ Parents Teacher Incentives SEP CONAFE DGPPP, SEES N/A School Teachers DGPRL & Councils DGEP improvement Supervision SEP CONAFE & N/A SEEs & N/A N/A Supervisors of Supervision Offices CAPPCE State-level System CAPFCE [ravel SEP CONAFE N/A SEEs N/A N/A Supervisors .___________ lIncentives Books & Materials Distribution SEP & CAPFCE & CONALITEG State-level N/A N/A Teachers & NAFIN CONAFE & Consultants CAPFCE & Students _____ ____ SEEs _ _ _ _ __ _ _ _ _ Project Administraion CONAFE PCU Consultants SPCUs Consultants N/A Project Note: Implementation at the central (CONAFE) and state (SEEs) levels will be carried out/coordinated by the PCU and SPCUs, respectively. .t 0 I! illYff ORGANIZATIONAL STRUCTURE OF THE PROJECT COORDINATING UNIT | &UE Oeaeal Director Techical Adisor,. Comitteel PCU General fI Dordinator r I -. I .~~~~~~b II _ . .t tIo Traiming Di4aci Material Inceetives Infrastructawe sdiistrais -o 4 1 d sti, 4 amd u-Ii Mz 2Xt1 4446Xa=:1 ' '''I . 2- :-1~~~~~~~~~~mo~ce~ ~ cen ~oduto 'rcim Ic4nt . AB3 ; it~~~~ ORGANIZATIONAL STRUCTURE OF STATE PROJECr COORDINATION UNITS | E Geseral Director Technical Advisory 1.............................................................. Cnittee E l 5P~~~~~W Oeiteral Director TechniSc Su1 rt Taierits! as Didactic hterials I rastructure Uo4stration General Prizary Inceatives Didactic Materials Og ztion AMo1atingI I|disenoDs im y superisio Readitg Orners Procure|Prt Pocuesentc CAi -121- ANNEX 16 PROJECT MANAGEMENT & FLOW OF FUNDS 0 1~~~~~~ WI! ~~~~~~~~~~~~~~~~~aW X 1 ~~~~a dg if>ut -122- ANNEX 16 PROJECT MANAGEMENT & FLOW OF FUNDS TERMS OF REFERENCE FOR PCU AND SPCUS General Principles 1. The organization of the PCU under PAREB draws from the experience accumulated by the PCU of PARE, particularly highlighting the need for: (a) a more horizontal organizational structure that promotes empowerment and initiative at the lower levels; (b) strong emphasis on analytical and qualitative measures as opposed to the meeting of rigid preset targets; (c) a higher role for SPCUs given the decentralization and greater autonomy of SEEs; (d) an improved monitoring and evaluation system with easily appreciable benefits, which would prompt usage on a regular basis; and (e) institutional strengthening, particularly of financial functions (e.g., procurement, accounding, cost control). 2. The proposed organizational struture rests on two general principles: (a) small, dynamic units composed of experienced individuals of high quality; and (b) an integration of central- and state-level activities along technical and administrative functions, which would facilitate both a more integrated perspective and faster and more informed action. The first principle is reflected is the number of personnel programmed at the central level: whereas for PARE (which comprises four states) the PCU staff numbered 37, the combined PARE- PAREB unit (which now comprises fourteen states) only requires 68. The costs savings would be passed on to the SPCUs in the form of high salaries to attract high-quality professionals. 3. Specific objectives of the new structure include: (a) strengthening of policy and strategic analysis in support of more informed decision-making; (b) raising the standard for operational expertise and capability of all PCU and SPCU personnel; (c) developing and implementing a project MIS to assist the PCU and SPCUs in the collection and analysis of data; (d) consolidating and strengthening administrative and financial functions; and (e) developing and implementing an integrated process monitoring and evaluation system to regularly monitor project activities and results and suggest improvements therein. Specific Terms of Reference 4. The PCU's main duties would be to: (a) manage project resources, monitor expenditures and arrange for audit accounts; (b) consolidate the yearly work review and plan of project execution; (c) prepare required information for the annual and mid-term implementation reviews; (d) liaise with state project offices and through NAFIN with the Bank; (e) manage contracts for technical assistance and studies; and (f) monitor project objectives, goals, processes, and deadlines. The PCU would also handle, through CONAFE administrative and technical departments and in collaboration with the SEEs, planning for procurement of buildings, equipment and materials, including preparation of itemized lists with specification and tender documents, tender procedures, supervision, quality control and distribution. - 123 - ANNEX 16 PROJECT MANAGEMENT & FLOW OF FUNDS 5. SPCUs would be responsible for coordinating activities of all participating agencies and monitoring project implementation at the state level, with special emphasis on: (a) implementation of civil works programs including contracting; (b) timely acquisition and distribution of educational materials; (c) implementation and monitoring of the teacher incentives program; and (d) proper functioning of the supervision system. The SPCU Coordinator should come from the respective SEE to enhance state ownership and participation in the project; wherever possible, officials previously involved in the preparation of the project would be retained in the SPCU so that their experience can be easily transferred. At the operational level, select state employees would be transferred to the SPCUs but would remain on the state payroll. -124- ANNEX 17 PROJECT COSTS PROJECT COST SUMMARY (US$ muillion) Local Foreign Total % FE %9,soBase Human Resources Development 99.8 2.6 102.4 2.5% 17.7% Education & Material Resources Teacher & Student Materials 85.6 85.6 171.2 50.0% 29.7% Reading Comners 4.8 2.1 6.9 30.4% 1.2% Indigenous Education Materials 3.9 2.0 5.9 33.9% 1.0% Infrastructure Improvement 93.8 24.7 118.5 20.8% 20.5% Institutional Strengthening . Management Capacity 11.6 5.3 16.9 31.4% 2.9% Teacher Incentives 97.5 0.0 97.5 0.0% 16.9% Supervision System Improvement 16.6 3.4 20.0 17.0% 3.5% Distribution System 7.6 2.8 10.4 26.9% 1.8% Project Administration 26.6 1.0 27.6 3.6% 4.8% Base Costs 447.8 129.5 577.3 22.4% 100.0% Physical Contingencies 5.0 1.4 6.4 21.9% 1.1% Price Contingencies 26.3 6.7 33.0 20.3% 5.7% Total Project Costs 479.1 137.6 616.7 22.3% 106.8% Note: Figures may not add up due to rounding. SUMMARY ACCOUN1n BY PROJECT COMPONENT (US$ million) _______________________ [HR Educ. Reading Indg InaSt. Mgmt. Teacher Supn. Distr. Admin- Phys. Phys. Price Price Devel.I Mat'ls. ComersMalsj Improy. Cpcty. Incent. System Systemj istration Total Cont % Cont. [Cont. % Cont. INVESTMENT COSTS1 Civil Works-1- -- Classrooms & Schools 0.0 0.0 0.0 0.0 95.1 0.0 0.0 0.0 0.0 0.0 95.1 1 5.0 14.8 6.7 20.0 Warehouses & Spn Ofcs 0.0 0.0 0.0 0.0 I 0.0 0.0 0.0 10.3 7.6 0.0 17.9 1 5.0 2.8 6.8 3.8 Equipment & Furniture 0.0 0.0 0.0 0.0 9.3 0.0 0.0 1.2 0.6 0.9 12.1 5.0 1.9 5.9 2.2 Vehicles 0.0 0.0 0.0 0.0 I 0.0 0.0 0.0 1.2 1.3 0.3 2.8 5.0 0.4 6.1 0.5 Didactic Materials 0.0 70.7 6.9 4.1 0.0 0.3 0.0 0.0 0.0 0.0 82.1 0.0 0.0 3.8 9.8 Training 0.0 0. 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Teacher & Admn Trainitng 99.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 99.1 0.0 0.0 5.4 16.7 Manaement Training 0.0 0.0 0.0 0.0 0.0 1.7 0.0 0.0 0.0 0.0 1.7 0.0 0.0 2.8 0.2 Training Materials 1.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.6 0.0 0.0 1 3 6 0.2 Promotion 0.0 0.0 0.0 0.0 I 0.0 10.3 0.0O 0.0 0.0 0.0 10.3 0.0 0.0 5.2 1.7 Technical Assistance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.0- -- Local Consultants 0.0 0.0 0.0 1.8 0.0 1.4 0.0 0.0 0.0 0.2 3.3 0.0 0.0 3.3 0.3 Int'l Consultants 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.6 0.0 Studies 0.0 0.0 0.0 0.0 0.0 3.1 0.0 0.0 0.0 0.0 3.1 0.0 0.0 3.8 0.4 Total INVESTMENT COSTS 100.7 70'.7 6.9 5.9 104.4 16.9 0.0. 12.7 9.5 1.3 329.1 1.9 19.9 5.4 55.8 RECURRENT COST 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0I Student Packages 0.0 100.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ~100.5 0.0 0.0 5.2 16.5 Incremental Salaries 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 23.5 23.5 1 0.0 0.0 5.5 4.0 Teacher Incentives 0.0 0.0 0.0. 0.0 0.0 0.0 97.5 0.0 0.0 0.0 97.5 1 0.0 0.0 6.9 21.0 Support to Supervisoms 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.3 0.0 0.0 6.3 1 0.0 0.0 5.8 1.2 Travel Allowances 1.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.7 0.0 0.0 5.3 0.3 Operaion & Maintenance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Civil Works 0.0 0.0 0.0 0.0 13.5 0.0 0.0 0.2 0.1 0.0 13.7 0.0 0.0 7.8 3.3 Vehicles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0 .8 0.0 1.4 0.0 0.0 7.6 0.3 Equipment & Furniur 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.1 0.0 0.0 0.7 0.0 0.0 7.9 0.24 Odier Operating Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.8 2.8 0.0 0.0 5 3 0.5 7btal RECURRENT COSTS 1.7 100.5 0.0 0.0 14.0 0.0 975 7. 0.9 26.3 248.2 0.0 0.0 6.1 47.2 lbtal BASELINE COST 102.4 171.2 6.9 5.9 118.4 16.9 97.5 20.0 10.4 27.6 577.3 1.1 0.0 5.7 103.0- Physical Continencies 0.0 0.0 0.0 0.0 5.2 0.0 0.0 0.6 0.5 0.1 6.4-- -- - Price Contingencies 5.5 1 7.9 0.1 0.3 8.1 0.8 6.7 1.3 0.7 1.5 33.0 1.2 1.3- Tobtal PROJECr COSTS 107.9 179.2 7.1 66.2 131.7 117.6 10. 219 1. 2.2 6.7 .1 12 54 130 lhxes 00 17.9 0.7 0.6 113.2 1.13 5. . . . 4. . . Ibreign Exchange 28 89.6 2.1 2.>74 55 00 38 3. . 3. . . z Note: Figures may not add up due to rounding. -126- ANNEX 17 PROJECT COSTS SUMMARY ACCOUNTS BY YEAR (US$ million, contingencies included) 11994/95 1995/96 1996/97 1997/98 1998/991 Total INVESTMENT COSTS Civil Workcs . Classrooms & Schools 0.0 25.7 26.3 26.9 27.4 106.3 Warehouses & Spn Ofcs 0.0 4.6 5.0 5.0 5.3 19.9 Equipment & Furniture 1.8 2.8 2.9 3.0 2.9 13.4 Vehicles 0.0 1.0 0.8 0.7 0.6 3.1 Didactic Materials 3.9 38.8 39.6 1.7 1.3 85.3 Training Teacher & Admn Training 22.6 13.6 22.9 21.3 23.9 104.3 Management Training 0.7 0.5 0.4 0.1 0.1 1.8 Training Materials 0.0 1.1 0.2 0.2 0.0 1.5 Promotion 1.2 3.1 2.6 1.9 2.0 10.8 Technical Assistance Local Consultants 1.1 0.9 1.2 0.2 0.1 3.5 Int'l Consultants 0.0 0.0 0.0 0.0 0.0 0.0 Studies 0.5 0.7 2.0 0.0 0.0 3.2 Total INVESTMENT COSTS 31.8 92.8 103.9 61.0 63.6 353.1 RECURRENT COSTS . Student Packages 18.1 23.8 18.9 25.0 19.9 105.7 Incremental Salaries 4.3 4.3 5.3 5.4 5.5 24.8 Teacher Incentives 6.5 13.3 20.5 28.0 35.9 104.2 Support to Supervisors 0.6 1.5 1.5 1.5 1.6 6.7 Travel Allowances 0.3 0.4 0.4 0.4 0.4 1.9 Operation-& Maintenance ______ Civil Works 0.0 1.4 2.9 4.5 6.1 14.9 Vehicles 0.0 0.2 0.3 0.5 0.6 1.6 Equipment & Furniture 0.0 0.1 0.1 0.2 0.3 0.7 Other Operating Costs 0.6 0.6 0.6 0.6 0.6 3.0 Total RECURRENT COSTS 30.4 45.6 50.5 66.1 70.9 263.5 Total PROJECT COSTS 62.2 138.4 154.4 127.1 134.5 616.7 Note: Figures may not add up due to rounding. -127 - ANNEX 17 PROJECT COSIS SUMMARY ACCOUNTS COST SUMMARY (US$ million) LOCal Foreipn Total % FE % Total INVESTMENT COSTS Civil Works _ Classrooms & Schools 76.1 19.0 95.1 20.0% 16.5% Warehouses & Spn Ofcs 14.3 3.6 17.9 20.1% 3.1% Equipment & Furniture 8.4 3.6 12.0 30.0% 2.1% Vehicles 1.4 1.4 2.8 50.0% 0.5% Didactic Materials 42.5 39.6 82.1 48.2% 14.2% Trainiug I Teacher & Admn Training 97.2 2.0 99.2 -2.0% 17.2% Management Trining 1.4 0.3 1.7 17.6% 0.3% Training Materials 1.3 0.3 1.6 18.8% 0.3% Promotion 6.2 4.1 10.3 39.8% 1.8% Technical Assistance ______ _ Local Consultants 3.3 0.0 3.3 0.0% 0.6% Int'l Consultants 0.0 0.0 0.0 ERR 0.0% Studies 2.5 0.6 3.1 1i.4.- 0.5% Total INVESTMENT COSTS 254.6 74.6 329.2 22.7% 57.0% RECURRENT COSTS Student Packages 50.2 50.2 100.4 50.0% 17.4% Incremental Salaries 23.4 0.0 23.4 0.0% 4.1 % Teacher Incentives 97.5 0.0 97.5 0.0% 16.9% Support to Supervisors 6.4 0.0 6.4 0.0% 1.1% Travel Allowances 1.4 0.3 1.7 17.6% 0.3% Operation & Maintenance Civil Works 11.0 2.7 13.7 19.7% 2.4% Vehicles 0.7 0.7 1.4 50.0% 0.2% Equipment & Furniture 0.5 0.2 0.7 28.6% 0.1% Other Operating Costs 2.2 0.6 2.8 21.4% 0.5% Total RECURRENT COSTS 193.3 54.7 248.0 22.1% 43.0% Total BASELINE COSTS 447.9 129.3 577.2 22.4% 100.0% Physical Contingencies 5.0 1.4 6.4 21.9% 1.1% Price Contingencies 26.3 6.7 33.0 20.3% 5.7% Total PROJECT COSTS 479.2 137.5 616.7 22.3% 106.8% Note: Figures may not add up due to rounding. -128- ANNEX 17 PROJECT COSTS COMPONNENS BY YEAR .1994/95 19S/96 1996/97 1997/981 1998/99 Total Total l____I I II N$ US$ Huiman Resources Development 71.4 46.0 69.9 63.6 68.7 319.6 102.4 Education & Material Resources Teacher & Student Materials 56.2 182.7 166.7 72.4 56.2 534.2 171.2 Reading Corners 11.6 5.9 4.1 0.0 0.0 21.6 6.9 Indigenous Education Materials 2.3 3.7 4.8 3.8 3.8 18.4 5.9 Infrastructure Improvement 2.5 85.4 89.7 94.1 97.8 369.5 118.4 Institutional Strengthening Management Capacity 9.0 13.9 16.2 7.4 6.1 52.6 16.9 Teacher Incentives 20.3 40.6 60.8 81.1 101.4 304.2 97.5 Supervision System Improvement 2.0 14.0 15,5 15.5 15.3 62.3 20.0 Distribution System 0.0 7.7 8.0 8.2 8.7 32.6 10.4 Project Administration 17.8 16.1 17.4 17.4 17.4 86.1 27.6 Base Costs 193.1 416.0 453.1 363.5 375.4 1801.1 577.3 Physical Contingencies 0.3 4.9 4.9 4.9 4.9 19.9 6.4 Price Contingencies 1.2 10.6 23.3 28.4 39.5 103.0 33.0 Total Project Costs 194.6 431.5 481.3 396.8 419.8 1924.0 616.7 Note: Figures may not add up due to rounding. 129- ANNEX 18 PROJECT DISBURSEMENTS WITHDRAWALS OF THE PROCEEDS OF THE LOAN Amount of the Category Loan Allocated Percent of Expenditures (expressed in US$ to be financed million equivalent) I. Civil Works CAPFCE 32.0 50% Community Model 24.0 50% 2. Equipment and Furniture 8.0 100% of foreign expenditures and 90% of local expenditures '. Educational Books & Didactic 70.0 90% Materials 4. Student Educational Packages 50.0 75% of expenditures to an aggregate of US$25 (non-durable goods) million; 50% of expenditures to an aggregate of US$45 million; and 25% for the remainder 5. Training Teacher Training 95.0 100% Management Training 1.8 100% Training Materials 1.7 100% 6. Technical Assistance & Studies 6.7 100% 7. Teacher Incentives & Support 55.3 75% of expenditures to an aggregate of US$20 to Supervisors million; 50% of expenditures to an aggregate of US$50 million; and 25% for the remainder 8. incremental Operating Costs 27.5 75% of expenditures to an aggregate of US$15 (salaries, travel allowances, million: 50% of expenditures to an aggregate of operation & maintenance. US$25 million; and 25% for the remainder office supplies & materials) 9. Unallocated 40.0 Total 412.0 -130- ANNEX 18 PROJECT DISBURSEMENTS ESIIMATED SCHEDULE OF DISBURSEMENtI (in US$ million) Bank Fiscal| Quarter Enig| Disbursed Cumulative Dish. as % Balance of t _Year During Quarter Amount of Total Loan 94 June 30, 1994 30.0 30.0 7 382.0 Sept. 30, 1994 J 11.5 41.5 370.5 95 Dec. 31, 1994 13.5 55.0 357.0 March 31, 1995 13.5 68.5 343.5 June 30, 1995 13.5 82.0 20 330.0 Sept. 30, 1995 22.0 104.0 308.0 Dec. 31, 1995 22.0 126.0 286.0 96 March 31, 1996 22.0 148.0 264.0 June 30, 1996 22.0 170.0 41 242.0 Sept. 30, 1997 28.0 198.0 214.0 Dec. 31, 1997 28.0 226.0 186.0 March 31, 1998 28.0 254.0 158.0 June 30, 1998 28.0 282.0 68 130.0 Sept. 30, 1998 20.0 302.0 110.0 Dec. 31, 1998 20.0 322.0 90.0 98 March 31, 1999 20.0 342.0 70.0 June 30, 1999 20.0 362.0 88 50.0 Sept. 30, 1999 20.0 382.0 30.0 99 Dec. 31, 1999 20.0 402.0 10.0 March 31, 2000 10.0 412.0 100.0 0.0 al Includes Special Account deposit of US$25.0 million and retroactive financing of up to US$6.0 million for eligible expenditures incurred on or after October 31, 1993. PROJECT MONITORING INDICATORS A. PROJECT-SPECIFIC PROCESS INDICATORS Componenti Sub- Activity | Sub-Activity Unit | Year I Year 2 Year 3 Year 4 Year 5 I Component 7794-6/95 7/95-6/96196 -6/97 7197-6/98 7198-6199 Human Risources Training of Teachers particip. 57,550 29,337 57,550 57,550 57.550 Developmxent Teachers & Administmtors particip. 7,784 945 N/A Indigenous School Teachers particip. 6,448 9,168 8,029 1,455 6,448 :___________ Indigenous School Administrators particip. 1,081 220 N/A Educational Teaing Materials & Student Distribute teaching materials (one- Material Educational Packages time investment per school) Resources Campeche package- N/A 199 200 N/A Durango school 427 428 Guanajuato 445 445 Jalisco 1,056 1,057 Michoacan 1,180 1,180 Puebla 554 555 San Luis Potosi 873 874 TIbasco 602 603 Veracruz 1,278 1280 Yucatan 333 335 Distribute teaching materials (one- time investment per 2-grade cycle; multigrade is one cycle) Campeche package- N/A 855 855 N/A Durango cycle 2,355 2,353 O Guanajuato 2,353 2,352 Z Jalisco 3,069 3,066 Michoacan 5,429 5,428 Puebla 2,753 2,751 z San Luis Potosi 2,258 2,256 Cl Tabasco 3,227 *3,226 Z Veracruz 5,413 5,411 Z Yucatan _ 2,112 2,112 . _ g __ _ >t-X Notes: 1. Percentages indicate degree of fulfillment of required fall complement (e.g., percenrage of staffing goals) unless specifically indicated in the unit cohlmn that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. Component1 Sub- Activity SubActivity Unit YrYear 2 Year 3 Year4 3 Year S Component 7/94-6/95 | 7/95-6196 7I96-6/97 7 7/97-6/98 7/98-6/99 Distribute student packages Campeche package 42,970 42,970 42,970 42,970 42,970 Durango 46,633 46,633 46,633 46,633 46,633 Guanajuato 72,469 72,469 72,469 72,469 72,469 Jalisco 155,491 155,491 155,491 155,491 155,491 Michoacan 341,971 341,971 341,971 341,971 341,971 Puebla 157,898 157,898 157,898 157,898 157,898 San Luis Potosi 125,822 125,822 125,822 125,822 125,822 Tabasco 178,957 178,957 178,957 178,957 178,957 Veracruz 275,706 275,706 275,706 275,706 275,706 Yucatan 122,766 122,766 122,766 122,766 122,766 Reading Corners (RC) Distribute RC packages (combined) Campeche package 167 414 294 Durango 43 1,234 236 N/A Guanajuato 62 1,124 654 Jalisco 410 2,460 1,640 Michoacan 1,242 2,598 1,894 Puebla 560 806 752 San Luis Potosi 505 1,756 1,198 Tabasco 520 1,354 1,000 Veracruz 835 1,842 1,976 Yucatan 292 314 698 Indigenous Texts & Materials Design & test materials Grades 1-2 end dates 6/30/95 Grades 3-4 6/30/96 Grades 5-6 6/30/97 Produce & distribute materials nbe Grades 1-2 numbr NIA 55,045 55,045 55,045 55,045 0 Grades 3-4 Of41234 41,234 41,234 Grades 5-6 textbooks 41282066 28 066 1 Infrastructure Operational Finalize Operational Manual & Condition of Z Improvement Manual & handbooks for self-help end date effectiveness handbooks construction & maintenance X Notes: 1. Percentages indicate degree of fulfillment of required full complement (e.g., percentage of staffing goals) unless specifically indicated in the unit column that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. . Component Sub- Activity Sub-Activity Unit Year 1 Year 2 Year 3 Year 4 Year 5 Component 7/94-6/95 7/95-6/96 7196-6/97 7/97-6/98 7/98-6/99 Construction/ Discuss final construction/ 8/31/94 Annual Mid-Term Annual Annual Rehabilitation rehabilitation modalities & list of end date 10/31/94 Review Review Review Review subprojects for the coming year Build & equip new classrooms Campeche number 39 39 39 39 Durango of class- 40 81 81 81 41 Guanajuato rooms 76 76 76 76 Jalisco 92 92 92 89 Michoacan 145 145 145 145 Puebla 75 120 120 120 39 San Luis Potosi 43 43 43 43 Tabasco 47 49 48 49 Veracruz 76 145 145 145 69 Yucatan 37 37 37 38 Replace & equip classrooms Jalisco number N/A 75 75 75 75 Michoacan of class- 82 82 82 82 Puebla rooms 11 11 11 9 San Luis Potosi 37 37 37 39 Tabasco 47 47 47 46 Rehabilitate & equip classrooms Campeche number 69 69 69 70 Jalisco of class- 60 60 60 60 Puebla rooms 42 84 84 84 38 Tabasco 35 70 70 70 35 Yucatan _ 120 120 120 120 O Maintenance Design maintenance program end date 8/31/94 _ Implement community maintenance % of I I program schools N/A 25% 50% 75% 100% z ._ (cumul..) _ J _ 7 Ci> X Notes: 1. Percentages indicate degree of fulfillment of required full complement (e.g., percentage of staffing goals) unless specifically indicated in the unit columnn that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. Component Sub- ' Activity | Sub-Activity | Unit Year 1 Year 2 Year 3 7 Year 4 Year 5 _________Component ______________________1____ 7/94-6/95 J7195-6/96 j7/96-6/97 7/97-6/98 j7/98-6/99 Planning & Carry out training courses 50 42 44 | I 6 Policy Analysis X Project MIS & Install project MIS end date 12/31/94 Project MIS fully operational praoess Design process evaluation system end date 9/30/94 system Implement process eval. system start date 12/31/94 Process evaluation system fully operational Conduct sample testing miestone Samnple test Test in 6/96 Conduct IEAP test milestDne Conduct ts date Education Preschool Education start/end 9/94-8/95 Studies dates Secondary Education Assessment start/end 9/94-8/95 Dropout dates 9/94-8/95 Financial Implications 9/94-8/95 Teacler Attitudes 7/95-6/96 Effective Schools 7/95-6/96 Environmental Education start/end 7/94-6/95 dates Science Education start/end 2/95-12/97 dates Discuss study results & agree on follow-up action plans w/Bank Preschool Education end dates N/A Ann. Review Z Secondary Education (5) Ann. Review M-T Review Z Environmental Education M-T Review Science Education Ann. Review M-T Review Ann. Review Ann. Rev. Z Project Implement promotional campaign 100% 100% 100% 100% 1% C) Promotion Z Notes: 1. Percentages indicate degree of fulfillment of required full complement (e.g., percentage of staffing goals) unless specifically indicated in the unit column that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. Component Sub- Activity Sub-Activity Unit Year I Year 2 | Year 3 Year 4 Year S Component J 7/94-6/95 | 7/95-6/96 7196-6/97 7/97 6/98 7/98-6/99 Teacher Incentives Implement incentives program Campeche number 67 134 201 268 335 Durango of 63 126 188 251 314 Guanajuato teachers 97 195 292 390 488 Jalisco receiving 238 476 713 951 1,189 Michoacan incentives 320 640 961 1,281 1,601 Puebla 147 293 440 586 733 San Luis Potosi 42 84 127 169 211 Tabasco 74 148 221 295 369 Veracruz 333 665 998 1,330 1,663 Yucatan 28 56 84 112 140 Improvement Supervision Build & equip supervision offices of Supervision Offices Campeche number 6 5 5 5 System Durango 5 9 9 9 3 Guanajuato 4 5 5 4 Jalisco 20 21 21 20 Michoacan 22 22 22 22 Puebla 15 15 15 15 San Luis Potosi 15 15 15 15 Tabasco 10 10 10 9 Veracruz 18 19 19 19 Yucatan 11 10 10 10 Build & equip sector chiefs' offices Campeche number N/A 1 2 1 1 Durango 1 2 2 1 Guanajuato 1 I 1 0 0 Jalisco 4 4 4{ 2 Michoacan 3 4 . 3 Puebla 3 2 2 San Luis Potosi 2 3 2 2 Tabasco 1 2 1 1 Veracruz 2 2 2 2 Yucatan I 2 2 2 - Z Notes: 1. Percentages indicate degree of fulfillment of required full complemert (e.g., percentage of staffing goals) unless specifically indicated in the unit colunm that they are cumnulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. Component Sub- Activity Sub-Activity Unit Year 1 Year 2 Year 3 J Year 4 Year 5 Component I|I__ 7/94-6/95 7/95-6/96 7/96-6/97 7/97-6/98 7/98-6199 Travel Grant incentives to supervisors Incentives Campeche person- 15 39 39 39 39 Durango years 32 68 68 68 68 Guanajuato 17 36 36 36 36 Jalisco 68 152 152 152 152 Michoacan 70 155 155 155 155 Puebla 26 57 57 57 57 San Luis Potosi S0 113 113 113 113 Tabasco 34 76 76 76 76 Veracruz 67 150 150 150 150 Yucatan 35 80 80 80 80 Grant incentives to sector chiefs Campeche person- 5 10 10 10 10 Durango years 6 13 13 13 13 Guanajuato 2 5 5 5 5 Jalisco 17 33 33 33 33 Michoacan 13 30 30 30 30 Puebla 6 14 14 14 14 San Luis Potosi 7 18 18 18 18 Tabasco 4 10 10 10 10 Veracruz 6 14 14 14 14 Yucatan 6 13 13 13 13 Books & Materials Distribution Finalize distribution and inventory end date 8/31/94 systems for all states Build & equip warehouses & number distribution systems (warehouses of 2 30 29 29 27 : are made up of several modules, modules for a total of 68 warehouses) O Implement distribution of materials % N/A 100% 100% 100% 100% _ Project Administration Staff PCU Condition of PCU fully staffed and TAC established end date effectiveness 3 Staff SPCUs in states who have Condition of Q Z signed participation agreements end date effectiveness SPCUs fully staffed and state TACs established Notes: 1. Percentages indicate degree of fulfillment of required full complement (e.g., percentage of staffing goals) unless specifically indicated in the unit colunm that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate andcipated dates. Componenti Sub- I.Aivity Sub-Activity Unit Year I Year 2 Year 3 Year 4 Year 5 Component 7__ _94-6195 f7195-6196 7196-6197 7197-6198 7198 699l Sign participation agreements Condition of number effectiveness of states signed w/ at (mile- least 4 states stone (6/30/94) dates) Signed for all states (9/30/94) Conduct project launch seminar Within 2 milestone mos. of date effectiveness (8/31194) Conduct annual reviews end dates N/A 10/31f95 N/A 10/31/97 10/31/98 Conduct mid-term review milestone N/A N/A 10/31196 date _ _ _ 3 0 z 0- z c:i Notes: 1. Percentages indicate degree of fulfillment of required full complement (e.g., percentage of staffing goals) unless specifically indicated in the unit column that they are cumulative (i.e., add up to 100% over the life of tie project). 2. Dates in parentheses indicate anticipated dates. B. OTHER INPUTS AND QUALITY/OUTCOME PROXY INDICATORS Indicator | Unit Year Year 2 Year 3 Year 4 Year 5 Review and agreement w/Bank on federal and state budgetary end dates 10/31194 |Annual Mid-Term Annual Annual allocations for the project and for primary education in general |Review Review Review Revie Increase in total federal education budget allocated to primary education Nationwide increase in Campeche allocation to To be reviewed with the Bank during October of each year, Durango primary starting in 1994 Guanajuato education in (Annual and Mid-Term Reviews) Jalisco real terms Michoacan Puebla San Luis Potosi Tabasco Veracruz Yucatan Increase in state education budgets allocated to primary education Campeche increase in Durango allocation to To be reviewed with the Bank during October of each year, Guanajuato primary starting in 1994 Jalisco education in (Annual and Mid-Term Reviews) Michoacan real terms Puebla San Luis Potosi Tabasco Veracruz Yucatan O Number of new teachers hired (combined project areas) z Of which in multigrade schools number To be recorded and reviewed annually i Of which in indigenous schools I . . ~~~~~~~~~~~~~z Number of new students enrolled (combined project areas) Q Of which in multigrade schools number To be recorded and reviewed annually Of which in indigenous schools > > Notes: 1. Percentages indicate degree of fulfillsent of required full complement (e.g., percertage of saffing goals) unless specifically indicated in the unit column that they are cumuladve (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. I Indicator Unit Year 1 Year 2 Yar3 Year 4 Year5 l Reduction in dropout rate (combined project areas) % decrease In multigrade schools from 1993/94 N/A N/A 1% N/A 2% In indigenous schools baseline Reduction in repetition rate (combined project areas) % decrease In multigrade schools from 1993/94 N/A N/A 2% N/A 3% In indigenous schools baseline _ Percentage of teachers with at least 3 years experience assigned to lst & % N/A 15% 25% 35% 45% 2nd grdes (combined project areas) Thachers who stay in assigned schools (combined project areas) % N/A 50% 65% 75% 85% Prcentagc of School Councils established and operational in % of project 75% 100% 100% 100% 100% communities receiving infrastructure improvement (combined project communities areas) Usage of warehouses % N/A 70% 75% 80% 85% Average length of storage in warehouses change from N/A decrease decrease decrease decrease previous year _ Wastage of books and materials in warehouses % N/A N/A < 7% < 5% < 2% 0 z z Notes: 1. Percentages indicate degree of fulfilment of required full complement (e.g., percentage of staMng goals) unless speifically indicated in the unit column that they are cumulative (i.e., add up to 100% over the life of the project). 2. Dates in parentheses indicate anticipated dates. -140- ANNEX 20 ANNUAL & MID-TERM REVIEWS ANNUAL AND MID-TERM REVIEWS 1. Annual Implementation Reviews. The annual reviews would be organized by SEP/CONAFE and the SEEs and would take place in October of each year, starting in 1995, with the participation of SEP/CONAFE and SEEs senior staff, authorities from SHCP and NAFIN, and Bank staff. The purpose of the annual implementation reviews would be to evaluate project performance against implementation plans and agreed monitoring indicators; provide management with feedback on project achievements, and issues and areas needing improvement. Each review would include: (a) implementation of sector policies as expressed in the Govermnent's letter of sector policies; (b) review of federal and state budgetary allocations for public education as per the project implementation indicators; (c) analysis of the previous year's performance (i.e., targets, budgetary allocations, functioning of implementation arrangements, main issues, and remedial actions to overcome the constraints); (d) review of work plan and budget for the following year; (e) modifications in project design, if needed, to adjust to changing circumstances; and (f) state-level management and operation of the decentralized education system, i.icluding budgetary allocations. Thus the annual reviews would provide for on-going refinements in project strategies and plans, consistent with the overall objectives of the project. 2. In August and October 1994, CONAFE would review with the Bank the proposal for civil works to be carried out under the project for 1994 and 1995, respectively; this review process would be repeated during each annual review, starting in 1995, and examine all proposals for civil works subprojects ex-ante. Review criteria for construction and/or rehabilitation of schools and classrooms would be included in an Operational Manual and cover: (a) appropriate location as identified through the agreed targeting criteria; (b) construction modality (CAPFCE or community); (c) meeting of prior requirements (i.e., availability of land and of teachers and corresponding budget allocations and existence of School Councils); (d) choice of building prototype according to local needs; (e) availability of a maintenance program; and (f) in the case of community construction, (i) ability and willingness of the community and/or local contractors to carry out the work and (ii) readiness of municipalities to enter into contractual obligations with SEEs and the community to supervise the civil works. A further review criteria would ensure that the share of CAPFCE construction subprojects falls within 50 percent of all infrastructure improvement subprojects. For construction of warehouses, the review would confirm that state-specific distribution systems, satisfactory to tie Bank, will be implemented in such a way as to ensure a consistent flow of textbooks and educational materials from the new or existing warehouses to the schools; in addition, the review will assess the states' proposals for maximizing use of warehouse space, including options for other uses. The August 1994 review would include a specific examination of the distribution and inventory control system to ensure that the states' proposals have been adequately integrated to provide a consistent system for monitoring and controlling the flow of materials. 3. The Mid-Term Review to be conducted in October, 1996 would follow the same format as the annual implementation review meetings, but the analysis of project achievements would be expanded with additional emphasis on the implementation of: (a) sectoral policies, regulatory framework, and progress of decentralization; (b) results (final or preliminary) of studies and their recommendations; (c) preliminary results of the monitoring and evaluation -141- ANNEX 20 ANNUAL & MID-TERM REVIEWS system; and (d) workings of the Technical Advisory Committee and effectiveness of inter- institutional cooperative arrangements. In addition, the mid-term review would result in an agreed updated set of targets and actions for the subsequent years of project implementation. Final terms of reference for the mid-term review would be developed and presented to the Bank for review by March 31, 1996. 142- ANNEX 21 SUPERVISION PLAN PROJECT SUPERVISION PLAN 1. To familiarize PCU and SPCU staff and other concerned authorities with Bank procedures, a project launch seminar will be conducted within two months of loan effectiveness, stressing, inter alia, the Bank's guidelines on procurement, disbursement, and auditing requirements. A computerized instructional guide on Bank procedures, currently being developed, will be introduced. This computerized guide will be further developed by the PCU to include instructions on specific project components and procedures for staff use. 2. Due to the large number of project activities and areas, there will be two supervision missions each year. The annual and mid-term reviews (Annex 20) would constitute the main missions; this will occur in October of each year, once federal and state budget allocations have been made. These reviews will concentrate on the managerial and institutional aspects of the project, quantifying project progress against monitoring indicators (Annex 20), resolving administrative bottlenecks, and setting a clear direction for project activities in the coming year, particularly as concerns budgetary and program allocations. Anmnal reviews will have a forward-looking character, with special attention paid to civil works and the warehouse and book distribution systems. The mid-term review in October 1996 would be more comprehensive to include in-depth discussion of sector policies and other institutional issues affecting the implementation of the project. Annual and mid-term reviews will last two weeks, including field visits in the participating states for a better assessment of project progress. 3. Whereas the annual and mid-term reviews will have a strong management and administrative focus, supervision missions scheduled for April of each year, starting in 1995, would be geared to assess the pedagogical and community participation elements of the project. Field visits will be scheduled to assess, inter alia: (a) the benefits of the project's training programs for both teachers and administrators; (b) the quality and use of textbooks and educational materials (including Reading Corners and textbooks designed for indigenous schools); (c) the quality of infrastructure subprojects (including maintenance); (d) the degree of School Council and community participation; (e) the extent to which parents and influential community members are aware of the project and are contributing thereto; (f) the effectiveness of the incentives programs; and (g) the expanded role of supervisors and the effectiveness of the pedagogical network. Implementation strategies to improve project performance would be discussed with SPCU staff and local officials. Due to the large number of project areas involved, the project would also employ local consultants to perform periodic field visits and provide technical assistance to SPCUs, municipalities, School Councils and others as required. Supervision reports from field visits will be discussed during the annual and mid-term reviews. 4. The mid-term review in October 1996 will provide an opportunity to update an agreed set of targets and activities in fution of the experience gathered since project start-up. It is expected that by this time, the project MIS and process evaluation systems will have provided valuable observations on project performance as well as recommendations on where improvements might be sought. At that time, a new supervision strategy may also be devised and implemented as required. - 143 - ANNEX 21 SUPERVISION PLAN Supervision Schedule (Headquarters Staff & International Consultants) mt V1994 199 _ 1996 197-19997 April NIA Task Manager I SW Task Manager I SW Educators (2) 2 SW Educators (2) 2 SW - o_ect lAunch Archiect I SW Architect I SW August Task Manager 1 SW Implementation Spec. 1 SW Educator I SW To be Procurement Spec. I SW Determined Disbursement Spec. I SW Implementation Spec. I SW task Manager 1 SW First Annual Review Mid-Tnrm Review October Educator I SW Task Manager 2 SW Task Manager 2 SW Education Econ. I SW Education Econ. 2 SW Education Econ. 2 SW Architect I SW Educators (2) 4 SW Educators (2) 4 SW Financial Anal. 1 SW Procurement Spec. 2 SW Architect 2 SW Financial Anal. 2 SW Procurement Spec. 2 SW Implementation Spec. 2 SW Financial Anal. 2 SW l___________________ Implementation Spec. 2 SW Total 1OSW 19SW 20 SW SW __ ____ 1__ -144 - ANNEX 22 IMPLEMENTATION SCHEDULE Task Name ~~~~~1994 1995 1996 11997 1998 I 999 Task Name OW31_ _4_ 10 0 31C~IQZQ3Ql4QlU2ZQ3Q4'CllZ3Q QiO2 A. HUMAN RESOURCES DEVELOPMENTU K Develop selection criteria I Implement trainin program B. EDUCATIONAL MATERIAL RESOURCES B.1. Purchase & distribute teachina materials 8.1. Purchase & distributestudent packages 8.2. Reading Corners (RC) Select books for RC iI Purchase & distribute RC books -- Develop special RC books Produce/purchase & distribute special RtC booksT 8.3. Indigenous Books & Materials** U Develop Ind. material/Grades 1 & 2j Test ind. materials/Grades; 1 & 2I Produce & distribute In. materials/Grades I & 2 Develop ind. material/Grades 3 & 4 Test ind. materials/Grades 3 & 4 I I Produce & distribute ind. materials/Grades 3 & 4 t Develop ind. material/Grades 5 & 6i II Test ind. materials/Grades 5 &6 Produce & distribute ind. materials/Grades 5 & 6II I Ii~ 5.4. infrastructure Improvements lEU lm i miin ii Ei Develop school prototypes I I Develop 0perational Manual &handbooks I I 11 Finalize 0perational Manual & Handbooks j I i i l! L Formn School Councils- Review of school construction/rehabilitation for 1994 FI Review of school construction/rehabilitation for 1995 Constructionlrehabilitation Establish maintenance programs C. INSTITUTIONAL STRENGTHENING C.1. Management Capacity C.1 .(a) Management Training Develop training programI ItI Devetop selection crieriaI Conduct training . _I___ C. 1.(b) Project MIS Conduict information needs study Emnplement MIS MIS fully operationalj j C.l db) Monitoring & Evaluation (ME) System UUU*J m Develop proposal for M&E system Establish M&E system M&E system fully operational I I Implement M&E system C.1 .(c) Education Studies Finalize consultant proposals Condc pecolstudy II Review of results & recommendations Conduct secondary education studies liii As-sessment of current state I i Review of results &recommendations I Socioeconomic analysis of dropouts Review of results & recommendations II I Financial implications of 9-year program I Review of results & recommendations Working conditions of teachers & supevsr Review of results &recommendations I I Effective schoolsI - 145 - ANNEX 22 IMPLEMENTATION SCHEDULE Effective schools Review of results & recommendations Conduct environmental education study Review of results & recommendations Review of results & recommendations- C.1 Ad) Project PromotionEM UK Design promotional program Conduct promoltion C.2. Teacher Incentives U Identify incentives schools Grant incentives C.3. Improvement of Supervision C.3.f a) Redefine Supervisors! Role C.3.(b) Supervision Offices m E Un U E E E *UU Review supervision offices construction for 1994 A Review supervision offices construction for 1995 A Build & equip superv4sion offices 1-T C.3.(c) Grant Travel Incentives C.3.f d) Purchase Vehicles C.4. Books & Materials Distribution System Determine warehouse locations Review warehouse construction for 1994 A Review warehouse construction for 1995 A Build & equifp warehouses Purchase vehicles C.5. Project Adminirstration U Establish central PCU Finalize participaton agreements Have participation agreements signed In 4 states Establish state SPCUs in participating states Meet conditions of effectiveness Review of infrastructure & distributon SystemsA Annual Review Year 1I Mid-Ternm ReviewA Annual Review Year 3A Annual Review Year 4 A Milestone A Summary -146 - ANNEX 23 LIST OF DOCUMENTS IN PROJECT FILE LIST OF DOCUMENS IN PROJECT FILE A. Studies and Reports on the Project Arango, M., 1993. Estudio Diagn6stico Sobre Participacion Social en Escuelas Pimarias. Perspectivas para el Programa PAREB, CONAFE-World Bank, Mexico. Behrnan, Jere R., 1990. The Action of Human Resources and Poverty on One Another, The World Bank, Washington, D.C. Estados Unidos Mexicanos, 1992. Acuerdo Nacional piara la Modernizacion de la Educaci6n Bdsica. Mexico, May 18, 1992. Ezpeleta, Justa, 1993. Pro grama para Abatir el Rezago Educativo. Evaluaci6n Cualitativa del Impacto. Centro de Investigaci6n y de Estudios Avanzados del Instituto Politecnico Nacional, Mexico City. Gardu8lo, Le6n, 1993. Reporte de Evaluaci6n del Programa Para Abatir el Rezago Educativo - Estado de Guerrero, CONAFE-World Bank, (Vols. 1 & 2), Mexico. Gonzalez, Guillermo, 1993. Diagn6stico Sobre Refetici6n y Deserci6n. Estudio de Caso en Seis Escuelas de Oaxaca, CONAFE-World Bank, Mexico. Hicks, E., 1993. Estudio Evaluativo Sobre Actualizaci6n de Maestros e Incentivos al Docente del Programa Para Abatir el Rezago Educativo. PARE, CONAFE-World Bank, Mexico. Molina, Z., 1993. Andlisis de la Situaci6n Actual del Desarrollo del Pogranma Para Abatir el Rezago Educativo (PARE) en el Estado de Oaxaca, CONAFE-World Bank, Mexico. Myers, R. G., 1993. School ftgetition and Dropout. Case Studies of iWo Rural Schools in the State of Oaxaca. Mexico. Report prepared for the World Bank. Pscharopoulos, G. and Ng. Y., 1992. Earnings and Education in Latin America. Assessg Priorities for School Investment. World Bank Research Working Paper 1056. Rumbaitis, M. and F. Rojas, 1993. Estudio Diagnostico Sobre Repeticion y Desercion en Escuelas Marginadas de Oaxaca CONAFE-World Bank. Schiefelbein, E., 1991. Output of the SMMG Model with Data from the GDPPB. UNESCO-OREALC, Siri System, Santiago, Chile, June 1991. SEP, 1993. La General de Educaci6n, SEP, Diaio Oficial de la Federaci6n, Distrfito Federal, Mexico, July 13, 1993. SEP, 1993. Sistematizacion de a Evaluacion Educativa para Elevar la Calidad de la Educaci6n en los Estados GSECED) (Propuesta). DGEIR. SEP, 1993. Propuesta de Investigaci6n - Meaoramiento v Desarrollo de la Educaci6n Secundaria. SEP, 1993. Investigaci6n. Atenci6n a la Demanda de Educacion Preescolar v Secundaria £1971-72. 1981-82 a 1992-93 - 147 - ANNEX 23 LIST OF DOCUMENTS IN PROJECT FILE SEP, 1992. Compendio Estadistico del Gasto Educaivo. 199. DGPPP. SEP, 1992. Compendio Estadistico por Entidad Federativa. 1992. DGPPP. SEP, 1992. Estadistica Bdsica del Sistema Educativo Nacional. Inicio de Cursos 1991-1992. DGPPP. SEP, 1990. ftntuario de Estadistica Educativa-Indiena DGEI. SEP, 1989. PraErama para la Modernizaci6n Educativa 1989-1994. V 1. Mexico, Poder Ejecutivo Federal. B. General Studies and Reports Carison, S., 1991. Transforming the ViCiOUS Circle: The Costs and Savings of School Inefficiency in Mexico - A View from LATHR, No. 8, The World Bank. INEGI, 1992. Censo de Poblaci6n de 1990, Mexico. Levy, S., 1991. Poverty Alleviation in Mexico, World Bank SWP No. 679, 1991. Palafox, J.C., J. Prawda, and E. Velez, 1992. Primary School Quality in Mexico - A View from LATHR, No. 33, The World Bank. World Bank, 1992. Social Indicators of Development, 1991-92. World Bank, 1991. Basic Education in Mexico: Trends. Issues and Policy Reconmmendations. Report No. 8930-ME, 1991. World Bank, 1991. Mexico in Transition: Towards a New Role for the Public Sector. Report No. 8770-ME, 1991. World Bank, 1993. World Development Report - 1993. UNESCO, 1991. World Population Projections - 1992-93. C. Other Documents Govermnent of Mexico - Letter of Sector Policies, March 4, 1994. CONAFE, 1993. Centro de Trabajo con Incentivo a Docentes - Ciclo Escolar 1994-1995, Programa para Abatir el Rezago in Educaci6n Bdsica, Noviemfbre 30, 1993. UNITED STATES OF AMERICA MEXICO SECOND PRIMARY t; ,,,,,,,,,,p, -.s r ,8,< EDUCATION PROJECT h. Pt& AL ,:COMPONETS 94TfUflONt SW~TI0HENHG COMPOE ONL J11, (~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~FRS PMARAY EDUCATION FOJSCa STATEUI ''- '' SE ' A!CAPifALZ - t ^ tm@R -+ b O , 0 MPA ACSMS OR TOWNS ~~~~~~~~\ ± ~~~~~~~~~~~~~~~~~~~~~~~~~PR*NOMAIRPOUS '''- 0TM-.&, S I ' 14\ , MIN IfO.IONAI. BO(J° ARN Mw5 saq GUlf of M4e x,- - X -~~ ~~o L ip,is-' ' " - +~~~~~~~~~~~~~~~~~~~~~~~~~~d Va. ,. . OCEAN 2V ~ ~ ~ ~ vcf> X - S°> 2r Prb Lbb$Q"m) k + f r~~~~~~~~~~~~~~~~~~~~~~~~~c~.w |~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~. ' . or C-npeche _~~~~~~~O. ,)td CA - Chw e -r - )~~~~~~ ~ ~ ~ ~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ B~ J ELIZE iqe 2q0 ago A" UQWOMEIS flu bow.dgvfe.. / ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~GUATEMALA i ' jpdg~.s,t.pxe s\* I. .ndemm..9HN - 110n' ' 1t X v A; DECEN~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~EE