Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00006032 IMPLEMENTATION COMPLETION AND RESULTS REPORT ON A CREDIT IN THE AMOUNT OF SDR 136.2 MILLION (US$185 MILLION EQUIVALENT) AND ADDITIONAL GRANTS IN THE AMOUNT OF USS$23.958 MILLION AND US$10.85 MILLION FROM THE GLOBAL PARTNERSHIP FOR EDUCATION AND AN ADDITIONAL CREDIT IN THE AMOUNT OF SDR 34.9 (US$50 MILLION EQUIVALENT) TO NEPAL FOR THE NEPAL SCHOOL SECTOR DEVELOPMENT PROGRAM (SSDP) PROGRAM-FOR-RESULTS March 14, 2023 Education Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective {February 28, 2023}) Currency Unit = Nepalese Rupee (NPR) NPR 132.27= US$1 US$1.33 = SDR 1 FISCAL YEAR July 16 – July 15 ABBREVIATIONS AND ACRONYMS AARAP Audit Arrears Resolving Action Plan ADB Asian Development Bank AF Additional Financing ASIP Annual Strategic Implementation Plan AWPB Annual Work Plan and Budget BPEP Basic and Primary Education Project CDC Curriculum Development Center CEHRD Center for Education and Human Resource Development CPF Country Partnership Framework CPS Country Partnership Strategy DEO District Education Office DLI Disbursement-Linked Indicator DLR Disbursement-Linked Result DOE Department of Education DP Development Partner DRR Disaster Risk Resilience DTCO District Treasury Controller Office ECED Early Childhood Education and Development EDCU Education Development and Coordination Unit EFA Education for All Program EGR Early Grade Reading EGRA Early Grade Reading Assessment EMF Environmental Management Framework EMIS Education Management Information System ERO Education Review Office ESS Environmental and Social Standard ESSA Environmental and Social Systems Assessment ETC Education Training Center EU European Union FM Financial Management FMAP Fiduciary Management Action Plan GMS Grants Management System GON Government of Nepal GPA Grade Point Average GPE Global Partnership for Education IA Implementing Agency ICRR Implementation Completion and Results Report ICT Information and Communications Technology IO Intermediate Outcome IPF Investment Project Financing ISR Implementation Status and Results Report IVA Independent Verification Agency JFP Joint Financing Partner JICA Japan International Cooperation Agency LC Learning Center LEG Local Education Group LG Local Government LIFE Low-Tech Intervention for Foundational Education M&E Monitoring and Evaluation MOCPA Ministry of Cooperatives and Poverty Alleviation MOE Ministry of Education MOEST Ministry of Education, Science and Technology MOU Memorandum of Understanding NASA National Assessment of Student Achievement NCF National Curriculum Framework NEB National Education Board NEGRP National Early Grade Reading Program NER Net Enrolment Rate NGO Nongovernmental Organization OAG Office of Auditor General OOSC Out-of-School Children PAD Program Appraisal Document PAP Program Action Plan PCF Per Capita Financing PDO Program Development Objective PforR Program-for-Results PPE Preprimary Education PPTS Pro-poor Targeted Scholarship PSF Program Support Facility PSS Pro-science Scholarship PTA Parent-Teacher Association REACH MDTF Results in Education for All Children Multi-Donor Trust Fund RED Regional Education Directorate RF Results Framework SEE Secondary Education Examination SESP School Education Sector Plan SIP School Improvement Plan SMC School Management Committee SMF Social Management Framework SOPG Standards, Operational Policies, and Guidelines SSD School Sector Development SSDP School Sector Development Program SSRP School Sector Reform Program SSTP School Sector Transformation Program SuTRA Sub-National Treasury Regulatory Application SWAP Sectorwide Approach TA Technical Assistance TOC Theory of Change TST Time Spent Teaching TSU Technical Support Unit UNICEF United Nations Children’s Fund USAID United States Agency for International Development VDC Village Development Committee Regional Vice President: Martin Raiser Country Director: Faris H. Hadad-Zervos Regional Director: Lynne D. Sherburne-Benz Practice Manager: Keiko Inoue Karthika Radhakrishnan, Mohan Prasad Aryal, Maya Task Team Leader(s): Sherpa ICR Main Contributor: Suzana Nagele de Campos Abbott TABLE OF CONTENTS DATA SHEET ........................................................................................................................... I I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES .................................................... 1 A. CONTEXT AT APPRAISAL AND THEORY OF CHANGE .................................................................1 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................6 II. OUTCOME ...................................................................................................................... 7 A. RELEVANCE ............................................................................................................................7 B. ACHIEVEMENT OF PDOs (EFFICACY) ........................................................................................8 C. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 14 D. OTHER OUTCOMES AND IMPACTS (IF ANY) ........................................................................... 14 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 16 A. KEY FACTORS DURING PREPARATION ................................................................................... 16 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 18 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 20 A. QUALITY OF MONITORING AND EVALUATION ....................................................................... 20 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 22 C. BANK PERFORMANCE ........................................................................................................... 23 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 24 V. LESSONS AND RECOMMENDATIONS ............................................................................. 25 ANNEX 1. RESULTS FRAMEWORK, DISBURSEMENT LINKED INDICATORS, AND PROGRAM ACTION PLAN ...................................................................................................................... 27 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 67 ANNEX 3. PROGRAM EXPENDITURE SUMMARY ................................................................... 69 ANNEX 4. BORROWER’S COMMENTS ................................................................................... 70 ANNEX 6: SSDP AND PFORR RFS........................................................................................... 71 ANNEX 7: COVID-19 SCHOOL SECTOR RESPONSE (IPF COMPONENT) .................................... 73 The World Bank Nepal School Sector Development Program (P160748) DATA SHEET BASIC INFORMATION Product Information Program ID Program Name Financing Instrument Nepal School Sector Development P160748 Program-for-Results Financing Program Country IPF Component Nepal Yes Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Finance Ministry of Education, Science and Technology Program Development Objective (PDO) Original PDO The Program Development Objective is to improve the quality, equitable access, and efficiency of basic and secondary education in Nepal by supporting the Government's School Sector Development Program. 1 The World Bank Nepal School Sector Development Program (P160748) FINANCING FINANCE_TBL Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Administered Financing 185,000,000 185,000,000 188,545,205 IDA-59710 23,958,000 23,958,000 22,961,425 TF-B0095 10,850,000 8,237,136 8,237,136 TF-B3579 50,000,000 50,000,000 46,505,367 IDA-69040 Total 269,808,000 267,195,136 266,249,133 Non-World Bank Administered Financing Borrower/Recipient 5,739,000,000 6,734,600,000 4,478,870,000 US: Agency for International 0 5,500,000 0 Development (USAID) Asian Development Bank 120,000,000 120,000,000 132,840,000 AUSTRALIA: Australian Agency for International 3,000,000 0 0 Development EC: European Commission 72,000,000 99,500,000 75,260,000 FINLAND: Ministry for 23,000,000 28,610,000 23,710,000 Foreign Affairs JAPAN: Japan International 15,000,000 13,800,000 14,120,000 Cooperation Agency (JICA) NORWAY: Ministry of 21,000,000 33,900,000 40,490,000 Foreign Affairs UN Children's Fund 3,000,000 3,000,000 2,800,000 Foundation/s (identified) 36,000,000 36,000,000 36,000,000 Total 6,032,000,000 7,074,910,000 4,804,090,000 Total Program Cost 6,301,808,000 7,342,105,136 5,070,339,133 KEY DATES Program Approval Effectiveness MTR Review Original Closing Actual Closing P160748 24-Mar-2017 19-Sep-2017 15-Jul-2021 16-Jul-2022 ii The World Bank Nepal School Sector Development Program (P160748) RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 05-Aug-2019 50.43 Additional Financing Change in Program Action Plan 09-Jun-2020 62.59 Change in Results Framework Reallocation between and/or Change in DLI Change in Program Action Plan 21-Aug-2020 62.59 Additional Financing Change in Disbursements Arrangements Change in Fiduciary 08-Jul-2021 137.92 Change in Results Framework Change in Loan Closing Date(s) Change in Disbursements Arrangements Change in Program Action Plan 21-Dec-2021 165.33 Change in Loan Closing Date(s) 30-Jun-2022 184.98 Change in Results Framework Reallocation between and/or Change in DLI Change in Disbursements Arrangements KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial RATINGS OF PROGRAM PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 28-Jun-2017 Satisfactory Moderately Satisfactory 0 02 08-Jan-2018 Satisfactory Moderately Satisfactory 0 03 23-Aug-2018 Satisfactory Moderately Satisfactory 30.00 04 20-Mar-2019 Satisfactory Moderately Satisfactory 30.00 05 15-Oct-2019 Moderately Satisfactory Moderately Satisfactory 50.43 06 01-May-2020 Moderately Satisfactory Moderately Satisfactory 62.59 07 22-Dec-2020 Moderately Satisfactory Moderately Satisfactory 123.72 iii The World Bank Nepal School Sector Development Program (P160748) 08 23-Sep-2021 Moderately Satisfactory Moderately Satisfactory 139.12 09 25-Mar-2022 Moderately Satisfactory Moderately Satisfactory 167.32 SECTORS AND THEMES Sectors Major Sector/Sector (%) Education 100 Early Childhood Education 6 Public Administration - Education 20 Primary Education 37 Secondary Education 37 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Human Development and Gender 100 Education 100 Access to Education 40 Teachers 0 Student Assessment 20 Education Governance, School-Based 20 Management Standards, Curriculum and Textbooks 20 ADM STAFF Role At Approval At ICR Regional Vice President: Annette Dixon Martin Raiser Country Director: Qimiao Fan Faris H. Hadad-Zervos Director: Amit Dar Lynne D. Sherburne-Benz Practice Manager: Keiko Miwa Keiko Inoue Karthika Radhakrishnan, Task Team Leader(s): Dilip Parajuli, Mohan Prasad Aryal Mohan Prasad Aryal, Maya Sherpa iv The World Bank Nepal School Sector Development Program (P160748) Suzana Nagele de Campos ICR Contributing Author: Abbott v The World Bank Nepal School Sector Development Program (P160748) I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL AND THEORY OF CHANGE Context 1. At the time of appraisal of the School Sector Development Program (SSDP), Nepal had made significant progress in poverty reduction and human development but remained among the poorest countries in the world, with a per capita gross national income of US$762 (2015). The poverty headcount had fallen from 30.8 percent in 2003/04 to 25.2 percent in 2010/11 (Central Bureau of Statistics), and Nepal had achieved the first Millennium Development Goal of halving extreme poverty ahead of time. It had achieved gender parity in education, a significantly larger proportion of the population had better access to water and sanitation services, electricity, and tele-connectivity, and a markedly smaller share of children were malnourished, and overall child and maternal mortality rates had declined. However, the twin shocks of mega earthquakes in April–May 2015 and a massive disruption of trade (September 2015–January 2016) had resulted in a huge toll on people’s livelihoods and were expected to have pushed more people into poverty. 2. Nepal continued to transition from a post-conflict status through a complex and challenging political landscape. The then newly promulgated Constitution in 2015 emphasized political devolution and the development of a federal structure, reflecting political commitment to greater inclusion. The new Constitution introduced a series of reforms toward a federal structure. The federal structure created three tiers of government including 753 local governments (LGs) and seven provinces, coming into effect in 2017 with elections in November of that year. However, lack of consensus over the specifics of federalism, especially the roles and responsibilities, and implementation delays resulted in social tension as peoples’ expectations were not met. Amid this, Nepal stood out for a relatively stable macroeconomic performance, despite the slowdown in growth due to the shocks of earthquakes and trade disruption. 3. Nepal’s new Constitution guaranteed free and compulsory education up to the basic level (Grades 1–8) and free education up to the secondary level (Grades 9–12). The Government of Nepal (the Government, the GON) aimed to elevate access to secondary education and improve quality of education and efficacy of the education system. In this framework, the GON had launched a seven-year School Sector Development (SSD) Plan in 2016 that focused on enhancing the quality of education. 4. Nepal had made impressive gains in access, equity, and completion rates in education in the previous two decades. The net enrolment rate (NER) for primary education increased from 71.0 percent in 1998 to 96.0 percent in 2016; enrolment of girls increased from 61.0 percent to 96.6 percent during the same period. The primary completion rate increased from 58.0 percent in 2004 to 80.0 percent in 2016, and the percentage of out-of-school children (OOSC) among children ages 5 to 12 decreased from 21.0 percent in 2003/04 to 14.8 percent in 2010/11. Gender parity was achieved in the NER at the basic (Grades 1–8), and secondary (Grades 9– 12) levels. Disparities in education access across income groups and ethnic/caste groups decreased significantly. 5. These gains were accompanied by significant increases in inputs, reflecting strong and continued government commitment to reforms and inclusion. From 2002 to 2015, the number of schools increased by almost 30 percent, leading to a decrease in commute time to schools; the number of teachers at the primary level increased by 71 percent, resulting in a reduction in the pupil-teacher ratio from 36 to 25; and the percentage of fully trained teachers increased from 31 percent in 2004 to 95.7 percent in 2016. Two reforms in P a g e | 1 of 73 The World Bank Nepal School Sector Development Program (P160748) particular had been instrumental in transforming education in Nepal: (a) decentralization of education service delivery and (b) introduction of targeted demand-side programs. The Seventh Amendment of the Education Act 2001 strengthened the ability of communities to establish and manage schools, provided they had a functional and accountable school management committee (SMC). The decentralization of education—supported in part by the World Bank through previous operations such as (a) the Basic and Primary Education Projects (BPEPs) (BPEP I, 1992–1998 and BPEP II, 1994–2004); (b) the Community School Support Project (2003–2008); (c) Education for All Program (EFA, 2004–2009); and (d) the School Sector Reform Program (SSRP, 2009–2016)— marked a crucial departure in the national education policy and was a powerful force for expanding access. The second reform—the expansion of demand-side intervention schemes—was instrumental in enhancing equity and inclusion. It played a crucial role in bringing children from marginalized groups to schools through (a) scholarship programs for female students and children from disadvantaged caste/ethnicity groups, income groups, and geographic regions; (b) provision of free textbooks; and (c) provision of salary and non-salary per capita financing (PCF)-based grants for quality enhancement. 6. Other key achievements included the following: (a) initiation and completion of several rounds of the National Assessment of Student Achievement (NASA); (b) initiation of early childhood education and development (ECED) and early grade reading (EGR) programs as important elements of basic education; and (c) continued implementation of the Education Management Information System (EMIS) to regularly collect school- level data. The data were then used for planning, including for the allocation of PCF to schools and the bottom- up budgeting process of the Department of Education (DOE) whereby District Education Offices (DEOs) made budget proposals through their district-level annual work plans and budgets (AWPBs), which in turn were informed by school improvement plans (SIPs) submitted by schools. 7. Despite these achievements, several challenges remained to improve learning outcomes, equitable access, and system strengthening. These included (a) low and unequal quality of education at the basic and secondary levels with learning outcomes that varied significantly by geography, school, and individual/household characteristics; (b) nonnegligible incidence of out-of-school status of school-age children in basic education and low transition to and retention in secondary schools, particularly for children from disadvantaged backgrounds; and (c) systematic constraints facing the school sector. 8. Low learning outcomes were evidenced by the low levels of competencies found in NASA for Grades 3, 5, and 8 in reading, mathematics, and science: fewer than 20 percent of students could master their respective competencies in problem-solving, reasoning, and other higher-order applied knowledge. An analysis of inequality in student achievements using NASA data indicated that inequality was large, and mostly associated with parental backgrounds (incomes, occupation, and social group), geographical location, and school types (lower for community schools compared to private schools). Overall, boys outperform girls in all subjects except Nepali. 9. Several underlying factors were associated with low levels of learning: (a) the school curriculum, particularly for secondary school, did not cater to the needs and aspirations of diverse student populations; (b) the public examinations (Grades 8, 10, and 12) tended to encourage rote learning-based educational practices and did not build students’ cognitive competencies, and noncognitive skills were not standardized for comparison over time and were disproportionately biased against students from disadvantaged backgrounds; (c) nonexistent or minimal incentives rendered otherwise good policies ineffective (for example, decentralization of school management to SMCs stumbled during implementation as centrally recruited teachers were not accountable to local SMCs); and (d) the teacher performance management system was P a g e | 2 of 73 The World Bank Nepal School Sector Development Program (P160748) inadequate and did not monitor teacher time spent on teaching (TST), thereby wasting scarce resources intended for quality education due to poor teacher management. 10. OOSC in basic education and low transition to and retention in secondary school affected mostly children from disadvantaged backgrounds. Close to 14 percent of children ages 5 to 12 years from disadvantaged backgrounds were out of school. Further, of 100 children who started Grade 1, only 17 completed Grade 10, reflecting low retention particularly at the secondary level. Children from economically poor households and from certain geographic areas were much less likely to transition to secondary. Low levels of learning and low transition rate also affected enrollment in science stream at the secondary level. Access to science education at the secondary level was also an issue due to limited number of community schools offering science stream at Grades 11-12. In 2016, only about 3.5 percent of Grade 11-12 students were enrolled in science stream with only about 9 percent of community schools offering science stream in Grades 11-12. 11. The school sector also faced systematic constraints that affected learning outcomes. These included (a) a need to enhance the reliability and utilization of EMIS data and monitoring and evaluation (M&E) systems (self-reported administrative data were still without independent verification); (b) a potential to significantly improve the school grants management system (GMS) by making grants allocation based on a robust funding formula, introducing a performance-based funding component, and building a system to verify compliance with funds eligibility; and (c) weak financial management (FM) practices and weak internal control environments across all levels, which were expected to be an additional requirement in the federal structure, highlighting a need to strengthen the fiduciary system, including implementation capacity, across all levels. Theory of Change (Results Chain) 12. The Theory of Change (TOC) of the SSDP Program-for-Results (PforR) is presented in the Program Appraisal Document and summarized in table 1. Table 1. Results Chain at Approval and as Adjusteda Results Activities/Intermediate Outcomes Outcomes PDOs Results Area 1: • Strengthen ECED and EGR programs. • Improved learning, Improved teaching- • Revise and implement National Curriculum Framework focus on tracking learning and student (NCF). teacher TST, learning outcomes • Develop textbooks and learning materials. implementation of • Improve student assessment and examination system. alternative mode of • Improve school and teacher management. learning and catch- • Implementation of alternative mode of learning during up programs COVID-19 school closures with the involvement of • Improved survival teachers rate to Grades 8 and • Implementation of catch-up programs 12 Results Area 2: • Provide pro-poor and pro-science scholarship (PSS) for • Improved access to Improved equitable target population. basic and secondary access to basic and • Provide incentive grants for secondary schools for education in 15 most secondary education offering science stream. disadvantaged districts as ranked in Improved the equity index quality, Results Area 3: • Enhance fiduciary system. • Improved equitable Strengthened • Strengthen EMIS. compliance with access and education system, • Support program management and audits. eligibility and efficiency of sector planning, • Align the implementation arrangement to the new utilization guidelines basic and management, and federal structure reflecting the role of and strengthening of school grants secondary governance the LGs. education in P a g e | 3 of 73 The World Bank Nepal School Sector Development Program (P160748) Results Activities/Intermediate Outcomes Outcomes PDOs Results Area 4: • Develop and implement remote learning methods for • Maintained access to Nepal by Investment Project continued learning for all children. basic education in supporting Finance (IPF) • Support to subnational level to support safe school grant-supported LGs the Component on reopening and continued learning • Improved resilience Government’s COVID-19 School for continued SSDP Sector Response learning Project Note: a. Adjustment to the original TOC is shown in italics. Rationale for PforR Support and Program Scope and Boundaries 13. The rationale for PforR support included the following: (a) the disbursement-linked indicators (DLIs) would provide stronger focus on accountability for results and outcomes (as opposed to inputs) and incentivize government ownership and implementation of critical reforms and policies in the school education sector; (b) the PforR operation would further strengthen the use of country systems for program implementation, fiduciary, environmental, and social systems, and monitoring arrangements that had become more advanced during the implementation of earlier operations in sectorwide approach (SWAP); (c) the Ministry of Education (MOE)1—the executing agency for the program—was already experienced with DLI-based operations funded by the World Bank; (d) the Ministry of Finance had a strong preference for a PforR operation; (e) the Asian Development Bank (ADB)—a major co-financier in the program—was also using a results-based lending instrument, equivalent to the World Bank’s PforR instrument for its financing for the program; and (f) the PforR provided several advantages over the IPF instrument with respect to flexibility and efficiency in supporting a fairly large national program harmonized across strategic interventions, implementation arrangements, and financial and technical assistance (TA) support from a large number of development partners (DPs). 14. The GON’s seven-year SSD Plan (FY2017–FY2023; US$11.3 billion) was expected to contribute directly to the country’s aim to graduate from least developed country by 2022 and attain middle-income country status and to meet the Sustainable Development Goal targets for education by 2030. The World Bank’s PforR2 was designed to support a five-year time slice of the Government’s SSD Plan. The SSDP (FY2017–FY2021) was to be financed by the GON and 10 joint financing partners (JFP): the World Bank, ADB, Australia, European Union (EU), Finland, Global Partnership for Education (GPE), Japan International Cooperation Agency (JICA), Norway, Results in Education for All Children Multi-Donor Trust Fund (REACH MDTF), and United Nations Children’s Fund (UNICEF).3 For this, the JFPs had adopted a set of 10 DLIs, including a larger number of disbursement-linked results (DLRs). Off-budget TA was also provided by some DPs and JFPs, including UNICEF, World Bank, ADB, Norway, and Foreign Commonwealth and Development Office. The scope of the GON’s program and that of the PforR are described in table 2. Table 2. Original PforR Scope Government program Program Supported by PforR Name SSDP Implementation FY2016/17–FY2022/23 FY2016/17–FY2020/21 period Geographical scope Nationwide Nationwide 1 Ministry of Education, Science, and Technology (MOEST) has been the successor of MOE since 2018 2 Throughout this Implementation Completion and Results Report (ICR), the acronym SSDP is used to refer to the Government’s School Sector Development Plan and its framework, as financed by the Government and its DPs. The term PforR is used to refer to the World Bank’s and the GPE’s financing of the SSDP. 3 Australia withdrew as a JFP during the first year of SSDP implementation. P a g e | 4 of 73 The World Bank Nepal School Sector Development Program (P160748) Government program Program Supported by PforR Program objectives The SSDP’s 12 objective areas were (a) basic To improve the quality, equitable access, education; (b) secondary education; (c) literacy and efficiency of basic and secondary and lifelong learning; (d) teacher management education in Nepal by supporting the and training; (e) governance and management; Government’s School Sector Development (f) DRR and school safety; (g) monitoring, Program. evaluation, and assessment; (h) examination and accreditation; (i) capacity and institutional development; (j) information and communication technology (ICT) in education; (k) health and nutrition in schools; and (l) budget and finance. Activities or outputs • Covers all levels of school education: basic Same as the government program, education (one year of ECED/preprimary– excluding reconstruction of schools in 31 Grade 8) and secondary education (Grades 9– earthquake-affected districts and with a 12) particular focus on • Finances both the recurrent (salaries and • Enhanced teaching-learning through remuneration of teachers and administrative revision of curriculum, reforms in staff and central- and field-level organization assessment and examination system, and management costs) and the development provision of block grants to unaided expenditures covering all MOE activities schools and performance grants to related to the school sector excluding teacher community schools, and improved pension and non-school-based technical and teacher redeployment and teacher vocational education TST; • Development expenditures include school • Reduced disparity in access and grants, student scholarships, textbooks and participation through targeted learning materials, infrastructure, curriculum programs including OOSC scheme at and material development, ICT, teacher the basic level and pro-poor professional development, teacher scholarship at the secondary level; and qualifications upgrading, and capacity- • Strengthened education system strengthening activities through enhanced fiduciary management system, GMS, and EMIS. Program USSS$11.312 billion (FY2016/17–FY2022/23) USS$6.461 billion (FY2016/17–FY2020/21) expenditure including reconstruction of schools in 31 GON: US$5,739 million earthquake-affected districts implemented IDA: US$185 million through the National Reconstruction Authority Other JFPs/ non-JFPs: US$293 million Financing gap: US$244 million Financiers GON, World Bank, ADB, Australia, EU, Finland, GON, World Bank, ADB, Australia, EU, GPE, REACH MDTF, JICA, Norway, UNICEF, Finland, GPE, REACH MDTF, JICA, Norway, USAID, WFP, and national and international and UNICEF NGOs Note: NGO = Nongovernmental organization; USAID = United States Agency for International Development; and WFP = World Food Programme. Program Development Objectives (PDOs) 15. The PDO of the PforR was to improve the quality, equitable access, and efficiency of basic and secondary education in Nepal by supporting the Government’s School Sector Development Program. Key Expected Outcomes and Outcome Indicators 16. The key expected outcomes and associated outcome indicators for the PforR were as follows: • Outcome 1: Improved quality of education P a g e | 5 of 73 The World Bank Nepal School Sector Development Program (P160748) o Percentage of students displaying grade-level competency on core subjects4 in Grade 8 measured through NASA (Target: second competency-based test conducted for Grade 8, which reported 3 percentage point increase from baseline) o Share of schools tracking teacher time-spent-teaching (TST) (Target: TST enhancing monitoring system operational in 90 percent of all community schools) o Survival rate to Grade 8 and Grade 12 (disaggregated by gender) (Target: Grade 8 - all: 92; boys: 91.2; girls: 93; Grade 12 - all: 25; boys: 12 percentage point increase from Year 1; girls: 12 percentage point increase from Year 1). • Outcome 2: Improved equitable access o NER in basic and secondary education in 15 most disadvantaged districts as ranked in the equity index (disaggregated by gender) (Target: basic - all: 92.9; boys: 94.3; girls: 91.5; secondary - all: 48.0; boys: 49.3; girls: 46.8). • Outcome 3: Improved efficiency o Percentage of funds disbursed to schools in compliance with eligibility and utilization guidelines (Target: 95). Program Results Areas and DLIs 17. The PforR was clustered around the three results areas along with six associated DLIs, as presented in Table 3. Table 3. Results Areas and DLIs of the PforR Results Area DLIs Results Area 1: Improved teaching-learning and • National Curriculum Framework (NCF) revised and implemented (DLI 3) student learning outcomes • Examination and assessment system reforms undertaken to improve teaching and learning (DLI 4) • Improved school management and accountability system (DLI 5) • Improved teacher management and accountability (DLI 6) Results Area 2: Improved equitable access to basic • Improved equitable access to basic and retention in secondary schools (DLI and secondary education 2) Results Area 3: Strengthened education system, • Strengthened governance, fiduciary management, data systems, and sector planning, management, and governance institutional capacity for results-based program implementation (DLI 1) B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Revised PDOs Outcome Targets, Result Areas, and DLIs 18. The PDOs were not revised, but the PforR was restructured six times, of which three restructurings were processed together with three Additional Financings (AFs), also attributed to evolving federalism and the COVID- 19 pandemic, as summarized in Annex 5. Detailed changes to the Results Framework (RF), including the DLI matrix are provided in the “Technical Note to Implementation Completion and Results Report (ICR) to SSDP (P160748) available on World Bank SharePoint.”.” Other Changes 19. The closing date was extended twice5 for a total of 12 months from the original July 15, 2021, to July 16, 2022. The program’s PAP and implementation arrangements were modified to reflect Nepal’s new federal structure (Section III.B). The AF provided by GPE through its Accelerated Funding Window to help address impacts of the COVID-19 pandemic was provided through an IPF instrument since it was processed under 4 Core subjects include Nepali, mathematics, and general science. 5 GPE COVID-19 grant was extended from December 31. P a g e | 6 of 73 The World Bank Nepal School Sector Development Program (P160748) emergency procedures. The COVID-19 AF had three components: (a) Component 1: Remote learning methods for continued learning for all children, including children with disabilities and children from marginalized backgrounds; (b) Component 2: Support to provinces and local government to support safe reopening and continued learning; and (c) Component 3: Management, coordination, and monitoring and evaluation. Rationale for Changes and their Implication for the Original Theory of Change 20. The rationale for changes for each of the AFs and restructurings is provided in Annex 5. Their implication for the original TOC is shown in italics in Table 1. The original program’s TOC remained relevant throughout the implementation. The marginal reduction in the end target of one PDO indicator relating to teacher TST during the June 2020 restructuring due to implementation delays as a result of federal transition did not have an impact on the original TOC. New PDO indicators were added as a result of the AF. The end-line targets of PDOs and DLIs continued to meet the original intent of the respective result areas. II. OUTCOME A. RELEVANCE Relevance of PDO 21. The relevance of the PDO is rated High. The World Bank’s PforR was well aligned with the World Bank Group’s Country Partnership Strategy (CPS) at approval (2014–2018; Report No. 83148-NP) and continued to be fully aligned with the World Bank Group’s Country Partnership Framework (CPF) for Nepal for FY19–23 (Report No. 121029-NP) discussed at the Board on August 7, 2018, and extended to FY24 by the corresponding Performance and Learning Review (Report No. 168048-NP, January 2022). Specifically, the program focused on two transformative engagement areas: public institutions (Focus Area 1) and inclusion and resilience (Focus Area 3). Under Focus Areas 1, the SSDP contributed to Objective 1.2 (Strengthened institutions for public sector management and service delivery). Through its AFs and restructurings, the SSDP maintained its relevance during implementation by supporting and partnering with LGs in strengthening the implementation of federalism. Under Focus Area 3, the SSDP contributed to Objective 3.1 (improving equity in access to quality education). Together, both transformative engagement areas (public institutions and inclusion and resilience) contribute to poverty reduction and shared prosperity at the country level. Further, the World Bank’s COVID-19 Response Program: Shifts in World Bank Group CPF (for Nepal) highlights that the CPF continues to be relevant, albeit with some shifts aimed at striking a balance between pivoting to address the short- and medium-term needs from the COVID-19 crisis and the focus on the long-term economic development path. The SSDP maintained its relevance to this minor shift in strategy through AFs and restructurings that adapted the program to the short- and medium-term needs arising from the COVID-19 crisis, in full congruence with the World Bank’s country program in Nepal. Relevance of DLIs 22. The relevance of DLIs is rated High. The DLI matrix was well detailed, containing a baseline for each DLI and DLR, the allocated amount (that was commensurate with the action or intermediate outcome [IO] supported), possibility for rollover of amounts, deadlines for achievement, and financing formulas for DLRs. The verification protocols were equally well elaborated, containing detailed definitions and descriptions of DLR achievements, position on scalability of disbursements, and protocols to evaluate DLR achievement, including the data source/agency, verification entity, and verification procedure. The DLIs/DLRs included a variety of outputs, IOs, and outcomes. They were reasonable in terms of expected achievement during implementation, P a g e | 7 of 73 The World Bank Nepal School Sector Development Program (P160748) with well-distributed timing and well balanced in terms of incentivizing actions as needed to put in place policies and procedures needed for program implementation and at the same time recognizing results. 23. The DLI matrix was aligned closely with the PforR’s RF, with two PDO indicators represented by a DLI and eight IO indicators supported by DLIs to recognize progress toward IOs, with allocations reflecting the importance of respective reforms or initiatives, and part of the overall DLI framework adopted by the nine JFPs. The six original DLIs financed by the World Bank-supported PforR were selected based on (a) priority results areas identified in the World Bank’s Education Strategy Note (2016), (b) strategic focus on the education quality enhancement as envisaged in the Government’s SSDP, (c) identification of a few key actions and results that would support fundamental system-level transformations, and (d) local and global evidence on what works (including lessons from the SSRP and EFA). The six DLIs comprised 26 DLRs that were: sequenced to incentivize in initial years the institutional outputs required to achieve subsequent years’ DLRs, priced according to the importance of measures supported and based on reasonably expected time required for achievement of targets. 24. The DLI matrix maintained its relevance throughout implementation. It was adjusted substantially on three occasions (Annex 5) to adjust it to Nepal’s new evolving federal structure and strengthen subnational governments to support devolution, to reflect the impact of the COVID-19 pandemic, and subsequently to introduce minor changes in wording and disbursement arrangements (for example, to allow rollovers and extend dates for compliance). The achievement of DLRs led directly to the achievement of IO and PDO indicators. The DLI/DLR matrix, as adjusted, is provided in Annex 1. Rating of Overall Relevance 25. Rating of overall relevance is High, based on similar ratings for relevance of the PDO and DLIs to the achievement of the PDO and recognizing that PDOs maintained their relevance throughout implementation, while DLIs provided the incentives needed for achieving the PDOs B. ACHIEVEMENT OF PDOs (EFFICACY) 26. Efficacy is assessed in the following paragraphs, disaggregating the PDOs into three sub-objectives, corresponding to each of the PforR’s results areas. A split evaluation has not been prepared since the PforR’s PDO was not adjusted, the key indicators and targets were by and large adjusted only marginally, and, in fact, through Additional Financing the operation’s scope, and hence the indicators defined to measure progress, were considerably expanded within the original PDO definition. The PforR’s expected—and actual—achievements were significantly beyond what had been envisaged at appraisal. As a PforR with pooled financing to a large program, the financing from the World Bank helped leverage government and partner financing to support the same set of program results. The overall outcomes under the program are a result of financing from multiple partners (including the World Bank and GPE). The results framework (Annex 1) describes how selected PforR interventions helped contribute to each PDO. The following assessment describes progress in relation to the PforR’s RF, including key indicators, and its DLI/DLR matrix which was a subset of the government program’s RF and overall DLI matrix. Assessment of Achievement of Each Objective or Outcome Outcome 1: Improved quality of education of basic and secondary education 27. Results in improving the quality of education of basic and secondary education are assessed as Substantial. Several reforms were implemented under the program to improve the quality of education, P a g e | 8 of 73 The World Bank Nepal School Sector Development Program (P160748) including the National Early Grade Reading Program (NEGRP) and TST. The results of NASA for Grade 8 in 2020 show that the share of children performing at the grade level was 32.1 percent for mathematics and 37.8 percent for science (PDO indicator 1) as compared to 46.25 percent for mathematics and 43.81 percent for science from 2017 (PDO indicator 1). The scores for Nepali language could not be compared because of lack of sufficient linking items between NASA 2017 and NASA 2020. While the PforR supported several reforms to improve learning outcomes, including NEGRP, TST, teacher redeployment, improved curriculum, the implementation of these reforms was delayed in the initial years due to the federal transition. The PforR target for NASA Grade 8 was measured in FY2020 when implementation had just started to accelerate and hence the result may not measure the full impact of the reforms and interventions implemented under SSDP. Due to COVID 19 school closures, it was not possible to conduct another round of NASA in the subsequent years. Though the results of National Assessment of Reading and Numeracy (NARN; Grade 3) introduced during June 2020 restructuring could not be compared to the baseline, an assessment carried out by USAID in a sub-set of NEGRP districts showed that there were positive effects of the NEGRP, and that for all Early Grade Reading Assessment (EGRA) sub-tasks and across grades, the effect of EGRP at end-line was positive. The share of children in Grade 3 reaching 45 correct word per minute and 80 percent comprehension increased from 5.9 percent at baseline to 9.4 percent at endline.6 28. The target for TST operational in 15 percent of community schools in Year 2 and the revised target of TST operational in 229 LGs in Year 4 were fully achieved (PDO indicator 2A). To sustain improvements in the quality of education following COVID-19 school closures, 520 LGs implemented different alternative learning modalities according to a survey conducted by the Center for Education and Human Resources Development (CEHRD). Of these 520 LGs, 422 (against a target of 171) were noted to implement modes of learning that involved teachers, that is, teachers teaching in small groups in community schools (PDO indicator 2B).7 Catch- up programs were implemented by 400 LGs (PDO 2C). Finally, the survival rate to Grade 8 improved but fell short of fully achieving the target while the survival rate to Grade 12 exceeded expectations (PDO 3). The total survival rate to Grade 8 increased from 76.6 percent to 83.5 percent (against a target of 92 percent); for boys, it increased from 75.9 percent to 83.3 percent (against a target of 91.2 percent); and for girls, it increased from 77.4 percent to 83.8 percent (against a target of 93 percent) (PDO 4). The total survival rate to Grade 12 increased from 11.5 percent to 33.1 percent (against a target of 25 percent), and for girls, it increased to 33.9 percent, exceeding the survival rate for boys (PDO 4).8 The retention rate to Grade 12 increased from 11.5 percent to 29.2 percent, exceeding the government’s SSDP results framework target (25 percent). 29. The PforR aimed to support improved quality of education defined as improved teaching-learning outcomes through support to (a) strengthen ECED and NEGRP, (b) revise and implement the NCF (DLI 3), (c) develop textbooks and learning materials, (d) improve student assessment and examination system (DLI 4), and (e) improve school and teacher management and accountability (DLI 5 and DLI 6, respectively). Following the COVID-19 pandemic, the GPE AF aimed to maintain the access to and quality of basic and secondary education by supporting activities to (a) develop and implement remote learning methods for continued learning for all children and (b) support the subnational level for safe school reopening and continued learning. A discussion of the impact of the COVID pandemic on quality is provided in the assessment below. 6 ADB, SOFRECO, FBC, School Sector Development Plan SSDP 2016-2021, Nepal, Final Evaluation Report, February 2022. 7 Note that the DLI achievement states 277 LGs as this number excludes the ones included under TST which implemented both TST and alternative mode of learning. 8 The PforR’s RF did not disaggregate the Grade 12 baseline into survival rates for boys and girls; it did establish targets of a 12- percentage point increase from Year 1 for both, but in the absence of baseline values it is not possible to assess whether the target was met. P a g e | 9 of 73 The World Bank Nepal School Sector Development Program (P160748) 30. Efforts to expand access to and improve the quality of ECED and NEGRP have been an important factor to help improve the quality and learning outcomes in basic education. The gross enrollment rate in ECED/preprimary education (PPE) reached 89.6 percent (81 percent at baseline), and 74.9 percent (62.4 percent at baseline) of children entering Grade 1 had been enrolled in ECED/PPE in 2021/2022. Several activities such as training of ECED teachers and providing child-friendly learning conditions have helped expand access to ECED and EGRP. About 19.1 percent of ECED/PPE teachers have received the required one-month training. An Education Review Office (ERO) study conducted in 2019 reported that 78 percent of schools selected, in the sample of 452 schools, met the minimum standards for ECED related to learning management and planning quality in 15 districts.9 Nearly 39.7 percent of schools (that is, 11,072 schools) across the country met at least three10 out of the five minimum standards for ECED. As per the NEGRP verification report, by the end of the program a total of 10,912 schools conducted the classroom-based early grade assessment (against the Year 2 IO indicator 1.2 target of 3,000 schools). The NEGRP was rolled out in a phased manner. As part of the program, a NEGRP minimum package was developed which included (a) teaching materials, (b) teacher training and classroom support, (c) community mobilization, (d) student assessment, and (e) (M&E. The NEGRP was rolled out in 38 districts during the implementation of Program. The rollout in 18 districts was delayed due to COVID- 19 school closures (section III B). The verification by the independent verification agency (IVA) confirmed substantial achievement of the NEGRP target in 38 districts. 31. The National Curriculum Framework for School Education 2017 has been approved for the education system from ECED to Grade 12, and textbooks and learning materials have been revised. The new Grade 9 curriculum for the five compulsory subjects (English, Nepali, mathematics, science and technology, and social studies) and revised textbooks were piloted in 2020/21. Based on the pilot, the curricula will have been further refined, finalized, and approved for being used in all schools across the country. The MOEST’s online learning platform/portal (Sikai Chautari) has been institutionalized and fully operationalized. The online portal is a dynamic repository of e-resources for core subjects, as defined by the NCF for basic and secondary education. At least 3,793 schools have access to the online portal, benefitting over 1,314,716 students, of which 52.4 percent are girls. 32. The program has supported the development of examination and standardization guidelines, but the capacity for conducting examinations at the subnational level requires strengthening, as does teachers’ capacity to carry out classroom-based assessments. Progress was achieved in (a) approving a repository or sample standardized test items for mathematics, science, and English subjects for Grades 8 and 10; (b) developing standardization guidelines for Grade 8 by the National Examination Board (NEB) and approving by the MOEST for the standardization and uniformity of examinations through all LGs; (c) implementing a single-subject certification policy for Grades 11 and 12; and (d) standardizing the Secondary Education Examination (SEE) to make it competency based and provide reliable and valid measures of learning levels. The Government approved a framework to conduct the SEE at the provincial level within the new federal structure, and preparation for conduction of standardized SEE in April 2023 is at the final stage. The NEB is also preparing to standardize the Grade 12 examination to enable comparison of results between years, regions, and population. The single-subject certification in the SEE was reported to be instrumental in increasing students’ enrollment in Grade 11.11 The share of children from disadvantaged backgrounds with a grade point average (GPA) of at least 1.6 in the 2077 SEE was 75 percent against a target of 70 percent (DLR target). The ERO has released the NASA 9 Data from the EMIS are not yet available for this indicator. 10 (a) Qualified ECD teachers (with secondary education and 90 hours of practical training); (b) child-friendly tap (for easy access to drinking water; and (c) toilet (with soap and water) 11 ADB, SOFRECO, FBC, School Sector Development Plan SSDP 2016 –2021, Nepal, Final Evaluation Report, February 2022. P a g e | 10 of 73 The World Bank Nepal School Sector Development Program (P160748) report for Grade 10, and based on the recommendations of this and previous NASA reports, the CEHRD has prepared an action plan with budget allocated to address its recommendations. Future priorities will entail developing teachers’ capacity to carry out classroom-based assessments and ensuring adequate resources at the local and provincial levels for support to schools. 33. Several activities and programs were implemented to improve school management and accountability. These included (a) providing block grants to schools to increase accountability and (b) implementing performance-based grants to address accountability and performance issues. For teacher management and accountability, these included (a) increasing the levels of teacher TST and (b) reducing the number of teachers to be redeployed. The MOE approved a revised Grants Manual for Community Schools, including guidelines for block grants to eligible community schools, performance grants to unaided12 schools eligible for block grants and community schools meeting basic accountability requirements, and pro-science enhanced grant. A total of 500 eligible unaided schools received block grants to meet teachers’ salaries and operating expenses (provided they met the requirement including social audits, EMIS, monitoring TST, and functional SMCs and parent- teacher associations [PTAs]) against the end target of 700 schools. A total of 3,010 community schools that met the above requirements and performance levels related to TST, student attendance and retention rates, availability of textbooks, and separate toilets for girls received performance grants in FY2017/18 and FY2018/19. Verification has been completed for the 400 LGs implementing performance-based grants. Further, 200 schools that were selected as model schools in 2017 were provided with science and ICT labs, libraries, mathematics, science, and English language kits, and access to the Sikai Chautari online learning portal, all in accordance with the Guidelines for the Establishment and Operation of Model Schools and the development of detailed school- specific quality improvement plans. 34. Limited teacher capacity and inadequate needs-based continuous professional development are among the key factors for the low learning levels; the PforR supported several measures to improve teacher management and accountability. The MOE revised the policy and guidelines on reallocation of teachers based on status and norms of teacher deployment and approved policy and guidelines aimed at improving TST. By completion, the teacher redeployment efforts had exceeded expectations: the number of teachers to be redeployed nationally was reduced by 72 percent of the baseline. Out of 12,835 teachers to be redeployed within or across LGs at baseline, 9,241 teachers have been redeployed. As a result of these efforts, 3,000 basic and 1,500 secondary schools have a full complement of mathematics, science, and English teachers. About 78.1 percent of teachers (78.4 percent female) at the basic and 79.1 percent teachers (77.4 percent female) at the secondary levels in community schools have received teacher professional development training in Nepal.13 35. The activities supported in response to the CoVID-19 school closings under the IPF component are presented in Annex 7. Outcome 2: Improved equitable access to basic and secondary education 36. Results in improving the equitable access to basic and secondary education are assessed as High. As a result of efforts described in the following paragraphs, the PforR helped achieve significant progress in expanding equitable access, especially at the secondary level. Nepal made impressive gains in education access and gender parity, across all levels. Between 2010 and 2020, the gross enrolment rate at the ECED/PPE level 12Community schools which have not received any permanent teacher position from the Government are categorized as unaided schools. 13 School Level Educational Statistics of Nepal – Consolidated Report 2019/2020 (FLASH). P a g e | 11 of 73 The World Bank Nepal School Sector Development Program (P160748) increased from 66.2 percent to 87.6 percent. The NER for basic and secondary education in the 15 most disadvantaged districts (PDO4), disaggregated by gender, was overachieved for basic level and nearly fully achieved for Grade 12. The NER for basic education in the 15 most disadvantaged districts increased from 85.1 percent to 92.2 percent (against a target of 91.4 percent) and for girls, it increased from 83.6 percent to 90.9 percent (against a target of 90 percent). The NER for secondary education in the 15 most disadvantaged districts increased from 29.1 percent to 44.1 percent (against a target of 44.3 percent), and for girls, it increased from 27 percent to 43.4 percent (against a target of 43.1 percent). 37. The PforR aimed to support improved equitable access to basic and secondary education (DLI 2) in 15 most disadvantaged districts through provision of (a) pro-poor and pro-science scholarships for target populations, (b) incentive grants for secondary schools for offering science stream; and (c) primary education to OOSC using the flexible service delivery approach, covering both children who never attended school and those who attended school but dropped out. 38. The PforR supported equitable access and inclusion by introducing the PPTS and PSS schemes in secondary education. A mechanism to select pro-poor students utilizing the proxy means testing approach to identify the target population was developed and approved. Standards, operational policies, and guidelines (SOPG) on the implementation of PPTS and PSS were approved (DLR 2.1). Implementation of both schemes was carried out gradually, first PPTS in Grades 9 and 11 and PSS in Grade 11 in 25 districts and then PPTS in Grades 9 through 12 and PSS in Grades 11 and 12 in 50 additional districts. PPTS was implemented for Grades 9 and 11 in 25 districts (DLR 2.2) and then expanded to 50 additional districts as well as students from Grades 10 and 12. The PSS scheme for eligible economically poor students (those opting for science subjects in Grades 11 and 12) was also implemented, in a phased manner starting from Grade 11 in 25 districts, followed by Grades 11 and 12 in 50 additional districts (DLR 2.3). All scholarships were conditional on a minimum level of attendance and promotion to the next grade for continued eligibility. Over the implementation period, 27,682 students in Grades 9 through 12 received PPTS and 1,774 students in Grades 11 and 12 received PSS. Of these, more than 50 percent were girls. These scholarships, together with other actions, including the single-subject certification policy, teacher management, and deployment, contributed to increasing the total survival rate to Grade 12, as described above. Further, PSS helped increase the share of students in science subjects in Grades 11 and 12 from 4 percent at the baseline to 17.2 in 2022 (against a final target of 15 percent). In addition, in FY2021/22, 36,704 students (Grades 9–12) were selected as eligible scholarship recipients. These students will receive scholarships in FY2022/23. 39. PSS was complemented by pro-science grants provided to schools to incentivize schools to establish and strengthen science and mathematics streams, thereby increasing enrolment in these streams. The PforR supported the development of specifications and guidelines for the establishment and operation of ‘model schools’ and detailed school-specific quality improvement plans. The 422 model schools (against a target of 540) that received these grants were provided with science and ICT labs, libraries, and mathematics, science, and English language learning kits. These grants helped in increasing the share of students in science subjects (described in paragraph 38 above). 40. Using the equity index, the SSDP targeted 15 priority districts focusing efforts to reduce OOSC. The OOSC program in the targeted districts followed either a school-based approach or a nonformal learning-based approach. A school-based approach to reduce the OOSC number employed enrolment campaigns and other incentives. The nonformal learning-based approach strengthened and used learning centers (LCs) to reach out to the OOSC and implement the OOSC program. The OOSC number was reduced by 6.76 percent nationwide (against the target of 5.6 percent) during the SSDP period. P a g e | 12 of 73 The World Bank Nepal School Sector Development Program (P160748) Outcome 3: Improved efficiency of basic and secondary education through strengthened education system, sector planning, management and governance 41. Results in improving the efficiency of basic and secondary education are assessed as Substantial. The PforR supported improved efficiency defined as a strengthened education system, sector planning, management, and governance through support to (a) enhancement of the sector’s fiduciary system; (b) strengthening of EMIS; and (c) program management and audits,, following the first restructuring aligning the program’s implementation arrangement to the new federal structure, reflecting the role of and strengthening the LGs. The Government has not yet passed a Federal Education Act. While this was not contemplated in the context of the SSDP, the passing of this act is seen as crucial to help clarify the roles and responsibilities and functioning of the three tiers of government or education services delivery, including teacher management and other sectoral issues within the new Constitutional framework. Nevertheless, without this, the PforR has helped improve efficiency of basic and secondary education within the existing framework while preparing for a future institutional framework. 42. The PforR helped strengthen the sector’s fiduciary systems. This goal became all the more of a priority following the move to a federal structure, as education has become the responsibility of LGs, and funding is channeled to them under conditional grants provided in the federal budget.14 Several activities and actions were completed to address this, including (a) a revision of the grants manual for the community schools, including guidelines for block grants and performance-based grants for schools meeting minimum standards (DLR 5.2) and for pro-science grants; (b) development of the Sub-National Treasury Regulatory Application (SuTRA) application for planning, budgeting, and accounting that allows subnational government exchange financial information with the federal institutions (the Ministry of Finance and the Financial Controller General’s Office; (c) development, testing, training, and piloting of the school accounting software in 2,425 schools; and (d) staffing and training and capacity strengthening for AWPBs on program activities and of LGs’ staff on fiduciary management. In FY2017/18, 3,010 community schools received performance grants. By FY2021/22, 400 LGs had implemented performance grant scheme. Similarly, 500 schools received block grants against a completion target of 700. A total of 1,890 (against the target of 2000) schools were verified as using an advanced or the basic version of school accounting software. Although performance varies across different schools and LGs, school grant management has improved and all community schools are required to submit their SIPs, prepared within the context of their AWPB to obtain funding. Financial progress through SuTRA has made budget expenditure records available. In FY2019/20, it was found that 99.75 percent of funds disbursed to schools followed eligibility and utilization guidelines according to audit observations against a target of 95 percent (PDO 7). Additional actions to strengthen the fiduciary systems were reported under the PAP (Annex 1). 43. The PforR helped improve the EMIS, and there have been significant improvements in reporting, quality of data, and use of the EMIS and continued strengthening of the use of EMIS data in planning at the school, LG, and provincial levels. It is now being utilized by seven provinces and 753 LGs. By November 2020, about 60 percent of community schools were able to upload their EMIS data into the central database using a web-based portal. The EMIS has become the main monitoring tool, and two ‘flash’ reports have been produced utilizing data from the EMIS. The PforR supported the design, approval, and carrying out of three rounds of EMIS verification. The EMIS verification described above also found improvement in accuracy in self-reported student 14Although the majority of funding comes from the federal budget, provincial and local governments receive non-earmarked funds from revenue sharing mechanisms, equalization grants, and local resources and can allocate some of these funds to education. Within the federal organization, community schools may receive additional funding from LGs’ own resources, such as for teachers’ salaries over and above those financed by the Federal Government through conditional grants. P a g e | 13 of 73 The World Bank Nepal School Sector Development Program (P160748) and teacher data compared with only 85 percent at the baseline. Following the COVID-19 pandemic, a new module was established in the EMIS to monitor the number of children with access to alternative learning modalities during school closures. Also, the SSDP supported the development of school profile cards for use in social audits to improve school performance annually, collecting feedback on performance, and linking them with performance grants. However, due to COVID-19 school closures, implementation of this was delayed in view of delays in issues guidance to LGs and schools on the need to complete social audits using the schools’ profiles generated from the EMIS. As per the SSDP’s 2022 Budget Review Mission Aide Memoire (March 2022), only 15 percent and 49 percent of schools had completed their social audits for the school years 2021/22 and 2020/21, respectively. Despite this progress with the EMIS and its use for reporting, the final evaluation report found that there was a noticeable gap between LG education staff and head teachers with respect to use of the EMIS for monitoring and planning, limited awareness about the system and its role in M&E, and inadequate capacity to use the system. 44. Several activities were implemented to help strengthen the capacity of sector staff, especially at the LG and school levels following the adoption of a federal structure. Of particular importance was ensuring adequate staffing, including that of a designated education officer in the LGs, and capacity development for preparing AWPBs and SIPs, implementation, monitoring including use of EMIS, and reporting. In all, 630 LGs have an education officer. The Government reported having trained 500 education officers, 500 finance officers, and 500 M&E officers. Also, 20 percent of LG education officers have received training in planning, budgeting, FM, and procurement. Rating of Overall Efficacy 45. The overall efficacy is rated Substantial, based on the Substantial ratings for Outcomes 1 and 3 and High rating for Outcome 2. C. JUSTIFICATION OF OVERALL OUTCOME RATING 46. The overall outcome is rated Satisfactory, based on the High relevance rating and overall Substantial efficacy rating. The timely restructurings and AFs to address the financing gap and continued High relevance helped achieve the program’s overall development objective at completion. The Program contributed highly towards improving equitable access to basic and secondary education and substantially towards improving quality and efficiency in basic and secondary education. D. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 47. The SSDP implemented several activities to support girls’ access and retention in education, even during COVID-19, and during program implementation, Nepal made impressive gains in gender equity in key education outcomes (Section II.A). The gender-specific activities implemented were (a) community change and social awareness campaigns underscoring the benefits of girls’ education to bring girls back to school; ( b) PPTS at the secondary level with additional weightage for girls to increase retention; (c) PSS to enable girls to be more competitive for employment in high-demand science, technology, engineering, and mathematics; (d) enrollment of OOSC into formal and nonformal education with more girls enrolled; and (e) improvements in EMIS to collect and report gender-disaggregated data for more efficient targeting to reduce inequity and improve educational outcomes for girls. PPTS and PSS were rolled out nationwide based on poverty profiles of the households, with preferential treatment for girls. Girls were eligible for the scholarships if their households were in the three poorest quintiles; boys were eligible only if their households were in the second quintile. There P a g e | 14 of 73 The World Bank Nepal School Sector Development Program (P160748) was a greater focus on girls’ enrollment for Grades 11–12 science stream, especially those from marginalized communities. The original targeting mechanism was also designed to discourage child marriage—one of the conditions for benefiting from PPTS and PSS was that the child should not be married before prescribed age. However, the revised scheme (FY2021/22) did not include this targeting mechanism to encourage girls to continue secondary education regardless of marital status. The share of girls benefiting from PPTS/PSS in FY2021/22 was 57.4 percent. The share of girls in OOSC brought to schools was 63.6 percent. 48. Institutional strengthening. As a PforR, the operation did not include a separate TA component to support institutional strengthening. Still, the PforR’s Objective 3 (Improved Efficiency) recognized the strengthening of institutions through results achieved under DLI 1 (Strengthened governance, fiduciary management, data systems, and institutional capacity for results-based program implementation) and DLI 5 (Improved school management and accountability system). Under the PforR, TA was supported through DLR 1.3 on satisfactory completion of the capacity-strengthening AWPB on key Program Support Facility (PSF) activities to support the achievement of the DLIs and establishment and operationalization of the technical support unit. The budget allocated for PSF activities in the AWPB was as follows: US$2.6 million for FY2017/18, US$6.24 million for FY2018/19, US$4.45 million for FY2019/20, US$8.24 million for FY2020/21, and US$4.67 million for FY2021/22. The results were expanded during implementation to address the enormous institutional structure and capacity challenges following implementation of the new federal structure. Results included strengthened fiduciary management, including a reduced number of audit observations, the establishment of a separate budget code for the IPF component, the development and implementation of a Program Implementation Manual/grant management system and procedures and report on the grants released to individual schools, the integration of SSDP activities into the AWPB system, the reporting of school-level expenditures through standardized accounting software, and the approval of revised EMIS guidelines. These results are described in Section II.B. In addition, TA to support hands-on implementation of these activities was provided by joint TA (US$5 million from the ADB/EU) and a separate World Bank technical support in the areas of PPTS schemes, assessments and examinations, and piloting of LIFE and TaRL to mitigate learning losses due to COVID-19 school closures. By completion, the school education sector was one of the most devolved arrangements in implementing and operating under the new federal structure. Poverty Reduction and Shared Prosperity 49. Out-of-school school-age children in basic education and low transition to and retention in secondary school affected mostly children from disadvantaged backgrounds. Children from economically poor households and from certain geographic areas were much less likely to attend school and transition to secondary (Section I.A). By targeting the NER in basic and secondary education in 15 most disadvantaged districts as ranked in the equity index, the PforR helped improve equity and hopefully helped affect poverty by improving the prospects of children from disadvantaged backgrounds. In fact, the SSDP exceeded expectations in terms of increasing equitable access to both basic and secondary education (Section II.B). 50. School closures especially affected the students from lower socioeconomic backgrounds and deprived communities as they had even more limited access to active forms of remote learning than the non-poor student population (16 percent as opposed to 24 percent) and more limited access to teachers than the non-poor student groups (21 percent as opposed to 27 percent). Building system resilience, including digitized learning programs, climate disaster awareness, and preparedness, and ensuring equity in access during emergencies were therefore critical in sustaining improvements in outcomes for students from disadvantaged backgrounds. The implementation of alternative modes of learning—which catered to the students’ different access to technology—and catch-up programs were especially relevant to children from disadvantaged backgrounds. P a g e | 15 of 73 The World Bank Nepal School Sector Development Program (P160748) III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 51. The PforR was well aligned with the World Bank Group’s Nepal CPS 2014–201815 and the World Bank’s Education Strategy for Nepal.16 The CPS aimed to support Nepal to increase its economic growth and competitiveness (Pillar 1) and increase inclusive growth and opportunities for shared prosperity (Pillar 2) through the achievement of Outcome 2.2: More equitable access to education and skills development of higher quality and relevance. The CPS included a cross-cutting theme on the need to address systemic constraints to public sector governance and improve the efficiency, effectiveness, and accountability of public expenditure. The PforR was designed to contribute to these themes through improved quality, equity, efficiency, governance, and management of education services. The World Bank’s Education Strategy for Nepal was focused on improving student learning outcomes and skills attainment through (a) alignment of performance incentives at each level of service delivery—central, district, school, and classroom; (b) system strengthening for improved service delivery; and (c) consistent and cross-cutting focus on the labor market. 52. The World Bank had been a long-standing partner to Nepal providing continuous support to the country’s education sector, with its assistance increasingly focused on the implementation of broad, national programs; the PforR’s design benefited from lessons learned from this support. The EFA and SSRP were implemented by the MOE through SWAP, with financial contributions from the Government and a group of DPs. The SWAP supporting a national program harmonized across financing vehicles and across strategic reforms and interventions at all levels of school education, along with common monitoring and reporting arrangements. This continued assistance by the World Bank and DPs, in an environment of continued high commitment by the Government, helped achieve impressive results (Section I) and create the conditions for a PforR as a next level of support in the sector. In this sense, the DLI-based (with a focus on results rather than inputs) reforms in school and teacher management and accountability and system strengthening in data and fiduciary arrangements were expected to help increase the focus on quality improvements, equitable access, participation and learning outcomes. 53. The SSDP FY2017–FY2021 and the PforR were prepared, and designed to be implemented, within the framework of the Local Education Group (LEG). The LEG had representation from the Government, Nepal’s DPs, international NGOs, and different civil society organizations, which had a long-standing history of engagement with the Government and in the sector. The LEG met periodically under the MOE’s leadership to discuss education strategy and coordinate joint support to the strategy, programs, and activities, and its members were key participants in all semiannual and quarterly reviews of the SSDP. The projects and programs highlighted above were all supported together with other DPs, some of which also financed off-budget government programs, including TA for the SSDP, under both the EFA and SSRP. 54. The USS$6,461 million SSDP (FY2017–FY2021) was to be financed by the Government from its internal resources (US$5,739 million) and, in addition to the World Bank (US$185 million) and GPE (US$23.9 million), nine other DPs and non-JFPs: (a) the ADB (US$120 million), (b) Australia (US$3 million), (c) the EU (US$72 million), (d) Finland (US$23 million), (e) the GPE and the REACH MDTF (US$22 million), (f) the JICA (US$15 million), (g) Norway (US$21 million), (h) UNICEF (US$3 million), and (i) non-JFPs (US$14 million). There was a financing gap of US$244 million for part of the program period from 2019 through 2021 that was expected to 15 World Bank, Report No. 83148-BP, dated May 1, 2014. 16 World Bank, Nepal Education Strategy Note (2016). P a g e | 16 of 73 The World Bank Nepal School Sector Development Program (P160748) be covered by additional financing from internal and/or external resources based on satisfactory implementation in the first three years (2017–2019). The financing gap was deemed to pose only moderate risk, assuming there were no unforeseen circumstances such as economic or natural shocks. 55. The SSDP’s original budget estimate (US$6,461 million) included both ongoing expenditures and incremental budget required for additional interventions. Capital costs accounted for 6.7 percent in the first five years and were to decline thereafter. ECED, basic education, and secondary education accounted for 3.8 percent, 65.7 percent, and 25.4 percent of total projected SSDP expenditures, respectively. The share of secondary education in the SSDP increased compared to 15 percent under the SSRP, due to new interventions such as separate head teacher positions; trained subject teachers for mathematics, science, and English; promotion of science education; model school program; and ICT. The share of the SSDP capital budget is 9.1 percent (higher than the SSRP’s 2.3 percent) and includes infrastructure support and ICT. Teacher management and professional development, governance and management, M&E, capacity development, and organization and management accounted jointly for 13.5 percent of total projected SSDP expenditures. 56. The SSDP aimed to enhance efficiency and effectiveness in sectoral financing. It would improve effectiveness by (a) costing prioritized quality-improving interventions; (b) introducing plans for a more robust medium-term expenditure framework in line with the SSDP expenditure framework, to ensure appropriate annual budget allocations; (c) revising the school grant system to support performance-based financing and improvements to EMIS to make it more reliable and boost the effectiveness of PCF grants; (d) creating additional teacher positions in secondary education and rationalizing teacher management; and (e) allocating an increased amount of the SSDP expenditure to secondary education. It would further enhance efficiency by (a) improving the FM system for bottom-up planning and budgeting process and timely fund release to schools; (b) revising the school grant mechanism to make it both need based and performance based and increasing flexibility with fewer earmarked grants; and (c) using results-based funding. In addition to the required recurrent expenditure items across program components/activities, the additional investment was to fund transformational areas, including those to achieve the DLIs on governance and EMIS, pro-poor targeting, bringing OOSC to schools, curriculum and examinations reforms, improved school management and teacher accountability, and rationalization. 57. The PforR carved out a subset of the SSDP’s objectives and activities, including TA, to be financed and monitored by DPs and adopted a modified RF and key indicators and DLI matrix and DLRs. The PforR financed a slice of all activities within the SSDP and included some indicators from the SSDP RF. While it would have been preferable to select all indicators among the SSDP’s indicators and DLIs relevant to that subset of objectives and activities (Section IV.A), it was noted that the SSDP RF was ambitious but did not include details of specific interventions to achieve the desired outcomes/ results. Hence, the World Bank’s PforR, which was approved a year after the start of the SSDP, focused on transformational interventions through targeted DLIs and indicators to achieve the desired results. 58. The SSDP was designed to use the government systems for program implementation, oversight, FM, procurement, safeguards, M&E, and reporting but could not consider the evolving institutional changes that would be in place following the transition to federalism embodied in the 2015 Constitution approved two years earlier. The MOE would serve as the executing agency with overall responsibility for policy guidance and oversight for implementation. A Steering Committee was to be established to oversee the coordination, monitoring, and implementation of the program. The DOE would be the main implementing agency (IA) with the responsibility for preparing the Annual Strategic Implementation Plan (ASIP) and AWPB. An Implementation Committee under the DOE would be responsible for overall implementation and coordination of SSDP activities P a g e | 17 of 73 The World Bank Nepal School Sector Development Program (P160748) across the DOE and other central-level agencies. Regional Education Directorates (REDs) and the DEOs would execute the program at the regional and district levels. Grant Management Units within the DEOs would be responsible for administering the grants going to schools. SMCs would be responsible for managing school-level activities, and the PTAs were to monitor them. ETCs and resource centers were to provided training management and monitoring support to schools. 59. The PforR’s overall risk was assessed as Substantial but did not consider the challenges that the adjustment to the federal structure would have on institutional capacity. The main risks to achieving the intended results were political and governance risks, the risks related to the weak fiduciary environment and institutional capacity for implementation, and design risks. Political and governance risks were considered High in view of an uncertain political environment, frequent changes of government, the absence of LG and poor enforcement of anticorruption and public sector ethics regulation. The institutional capacity risk was rated Substantial in view of the dispersed nature of activities across the entire country, possible staff turnover, and gaps in M&E arrangements and operational guidelines. Fiduciary risks were considered Substantial in view of delays in financial reports and auditing, inadequate internal controls, less than developed complaint mechanisms, and inefficient procurement systems. The PforR design risk was also rated Substantial in view of the challenging but transformational reforms included in the DLIs and DLRs. These risks were mitigated through measures identified in the technical, fiduciary system, and environmental and social system assessments, including (a) DLI-based financing as incentives to bring intended results in outcomes, processes, and reforms; (b) implementation of a PAP containing critical actions identifies to achieve results and DLIs; (c) strengthened capacities of all implementing and monitoring agencies at all levels; and (d) implementation and technical support from the World Bank and Nepal’s DPs. The risk analysis did not consider that an eventual adjustment to the institutional framework for implementation that would be required would exacerbate the institutional, governance, and capacity risks, especially in view of the need to adjust responsibilities, procedures, and systems to LGs with differing abilities. B. KEY FACTORS DURING IMPLEMENTATION 60. The SDR 136.2 million (US$185 million equivalent) IDA credit for the SSDP was approved by the World Bank’s Board of Directors on March 24, 2017, signed on June 22, 2017, and became effective on September 19, 2017. 61. The program’s implementation period was affected by two important factors, Nepal’s transition to federalism and the COVID-19 pandemic, both of which placed additional challenges on what was already a complex operation from the start and generated a need for AF. As a result, its implementation counted upon greatly increased resources, from the World Bank and GPE. 62. Following federal, provincial, and local elections in 2017, adapting to the new three-tier structure for a new federal state, as approved in Nepal’s 2015 Constitution, presented enormous challenges to program implementation as well as opportunities to help ensure that the federalization in the education sector could proceed smoothly. The task was massive. At the subnational level, funds, functions, and functionaries previously managed by the central, district, and village authorities were moved to the seven new provinces and 753 local levels. For this, new legislation, institutions, and administrative procedures needed to be approved and established, as constitutionally prescribed. At the same time, the central-level authorities were being streamlined to concentrate their focus on national policies and oversight. This profound restructuring was expected to result in improved outreach and service delivery in the medium term but was expected to take time and effort before becoming fully operational. Hence, implementation was challenged. P a g e | 18 of 73 The World Bank Nepal School Sector Development Program (P160748) 63. The SSDP was affected by the massive changes in Nepal’s institutional framework, as the shift to a federal structure in the education sector affected both the program’s implementation arrangements and its implementation capacity. The program’s implementation arrangements were affected as follows: (a) the MOEST continued to serve as the SSDP’s executing agency, but the DOE which was the IA was dissolved and merged with a newly established the CEHRD under the MOEST;17 (b) the 29 former ETCs became seven provincial ETCs; (c) school education section at the provincial level under the Ministry of Social Development took over the SSDP responsibilities previously assigned to the REDs; (d) functions that were previously carried out by the DEOs were transferred to the LG offices; (e) Education Development and Coordination Units (EDCUs) were established within the chief district offices in all 77 districts to facilitate program implementation during the transition process and provide technical reinforcement at the local level; (f) the MOEST placed responsibility for several functions on EDCUs including compiling school-level EMIS data, and the roles and responsibilities of the EDCU would include liaising between the federal and local government and providing technical support to LGs and schools implementing SSDP activities during the federal transition process. This also created tension between the EDCU and LGs because the constitutionally provided mandate of managing school-level responsibilities by LG was also somehow continued to be entertained by the EDCU. Over and above the difficulties of adjusting to new institutional arrangements, roles, and responsibilities, the shift to federalism brought the challenge of a program designed under a centrally managed governance structure to one implemented mostly by LGs that lacked the institutional structure, capacity, and basic tools for planning budgeting, monitoring, procuring, and reporting. As a result, the SSDP’s safeguard, fiduciary, and implementation capacity risks increased significantly. The shift in the structure and responsibilities of different levels before and after the federal transition is presented in detail in the Technical Note to ICR to SSDP (P160748) available on World Bank SharePoint. 64. On the positive side, the SSDP’s implementation at the same time that Nepal was transitioning to federalism presented a historic opportunity to help transform the education system, but this required developing strong foundations for LGs’ governance systems and strengthening their institutional capacity. The Local Government Operations Act of 2018 placed planning, monitoring, and management of basic and secondary education under the jurisdiction of the new LGs. Although this delegation was expected to make the LGs more accountable to the local communities and provide more support to improve quality, success was ultimately dependent upon LG-level capacity and governance systems. Risks to positive outcomes were dependent upon (a) short- to medium-term disruptions to education service delivery as systems were reconfigured, with possible long-term consequences to students; (b) possible technical and political misalignments involved in implementing national-level programs across several governments at different levels; and (c) heterogeneity in LGs’ capacity/governance that could heighten existing inequities. 65. Under the framework of the LEG and as agreed during the May 2019 midterm review, the Government and DPs jointly prepared an AF proposal and a restructuring to the PforR to reflect the Government’s devolution of education and new responsibilities. The GPE grant of US$23.9 million was to help cover a financing gap in the SSDP and to set the foundations for a strong LG-level governance structure in education, with focus on system accountability and incentives, complementing the then ongoing efforts to counter capacity and resource constraints at the local level. It was also designed to help mitigate risks from potential disruptions in service delivery during the federal transition. Given the existing momentum and its results focus, the original PforR instrument was particularly suited to supporting the federal transition by directly incentivizing the Government’s ownership and implementation of critical reforms and policies, while offering flexibility to tailor interventions to local contexts. DLRs focused on LGs included those related to (a) integrating SSDP activities into 17 The DOE, the Non-formal Education Center, and the National Center for Education Development were merged to form the CEHRD. P a g e | 19 of 73 The World Bank Nepal School Sector Development Program (P160748) their AWPBs; (b) publishing open data on grants released to schools; (c) reducing the number of OOSC; and (d) rolling out the early grade reading program. 66. Shortly after the GPE AF was declared effective in February 2020, Nepal began to suffer the impact of the COVID-19 pandemic, compounding the factors that challenged implementation. The first case of COVID- 19 was detected in the country on January 24, 2020. The MOEST announced a nationwide closure of all educational institutions on March 16, 2020. The cabinet later announced a three-phase approach to ease the lockdown in June, but the education sector, international and domestic flights, public transport, and large gatherings remained closed after the first-phase easing, leaving an estimated 8.2 million children out of school. Given the variation in household access to different types of technologies, Nepal could not follow remote or distance learning solutions and e-learning strategies adopted by many countries in their education sector responses to the COVID-19. Rather, Nepal opted for a multichannel approach to help reduce pandemic-related learning gaps. In the short term, the Government planned to utilize a combination of high- (online learning) and low-tech (mass broadcasting tools such as radio and television) approaches and devote resources to accelerate digital development and reduce the digital divide in the medium term. 67. The government’s efforts to address the CoVID 19 impact in the school sector is described in Annex 7. The COVID-19 pandemic also put stress on public finances as a result of a decline in revenue and the need to increase spending for the immediate education sector investments and preparedness response. The June 2020 restructuring helped address this challenge by including the provision of advancing DLR disbursements. The disbursement mechanism of the PforR was adjusted to allow the Government to withdraw up to SDR 34.05 million (equivalent to US$46 million) of the credit as a rolling advance against results not yet met or verified. When the DLI for which an advance was disbursed was achieved, the amount of the advance was recovered from the amount disbursed. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION M&E Design 68. The PforR was to be monitored based on its RF, with five PDO indicators and IO indicators, its DLI matrix, including DLRs, and its PAP that contained measures to be implemented to strengthen the program, as identified in its technical, fiduciary, and environmental and social systems and risk assessments. The PDO was succinct and well formulated, but it represented a subset of the Government SSDP’s objectives. Its supporting RF contained SMART18 indicators and targets comprising a mix of process, output and outcome indicators, covering all three of the PforR’s results areas. DLIs were a logical and balanced mix of outputs and outcomes, also covering the three results areas and targeting the most critical reforms aimed at system strengthening, equitable access, and quality enhancement. The PforR’s results area were not mapped one on one to the SSDP, but rather the PforR’s results areas were defined by thematic priorities. The results areas/objectives of the SSDP were merged within these thematic priorities. The PforR’s and the SSDP’s objectives and DLI matrices are presented in Annex 6. As explained in paragraph 57, the World Bank’s PforR was approved a year after the start of the SSDP. While the SSDP RF focused on outcomes and outputs and contained more than 70 indicators, the PforR RF focused on transformational interventions through DLIs/indicators, which were the subset of the SSDP RF, to achieve the desired results. The indicators and DLIs chosen as part of the 18 Specific, measurable, actionable, realistic and time bound. P a g e | 20 of 73 The World Bank Nepal School Sector Development Program (P160748) PforR RF clearly reflected the TOC and were appropriate for monitoring the progress toward the achievement of the PDO. 69. At appraisal, the MOE’s Monitoring, Evaluation, and Supervision Division and the DOE’s Planning and Monitoring Division were to be responsible for the M&E function of school education at the central level. The EMIS at the DOE was to be the main database system capturing information related to schools, students, and teachers. The ERO was to implement periodic NASA and conduct independent performance audits of schools and institutions under the MOE system to promote the accountability of the institutions and improve the quality of education. 70. The PforR also envisaged support for improving the overall M&E system for the generation of reliable, timely, and adequate information on results. These included (a) strengthening EMIS by operationalizing web- based EMIS for capturing real-time data on schools, students, and teachers and independent verification of EMIS to increase data accuracy; (b) conducting independent third-party verification of the achievement of DLRs by an IVA contracted by the MOE on the basis of detailed verification protocols that had been developed during preparation and included in program documents; and (c) improving school GMS to enhance compliance with eligibility and utilization of school/student grants. M&E Implementation 71. The institutional arrangements for M&E and its implementation were affected by the devolution of responsibilities following federal transition. The web-based EMIS had to be strengthened and used to collect information on students, teachers, and schools twice a year (once at the beginning and once at the end of the academic year), and school and LG officials required significant training in data entry and use of data. At the federal level, the CEHRD with its EMIS unit had to consolidate the data into the EMIS report presenting progress toward program objectives and targets. At the school level, SMCs and head teachers required training for data entry and the preparation of school-level EMIS. Most of the schools were able to submit EMIS data online, although with delays. Some counted upon support from neighboring schools or respective LGs for assistance with uploading and other technical support. Pandemic-related school closures and communication difficulties introduced further delays in providing timely updates. The ERO under the MOEST continued to be responsible for developing and conducting NASA and other periodic assessments as needed. It carried out the following assessments during implementation: NASA Grade 8 in 2017, NASA Grade 5 in 2018, NASA Grade 10 in 2019, NASA Grade 8 in 2020, and National Assessment for Reading and Numeracy for Grade 3 in 2020. 73. The PforR’s RF and DLI/DLR matrix were revised several times during implementation (Section 1.B). This was both to reflect the SSDP’s revised institutional responsibilities and to adjust key indicators and DLRs to reflect implementation experience. The RF introduced in the GPE financing for COVID-19 response followed the operation’s IPF structure. M&E Utilization 74. The EMIS was used by the Government and the DPs to monitor progress toward the SSDP’s performance indicator targets and trigger disbursements based on compliance with individual DLRs. The data fed into periodic LEG joint review meetings and budget review meetings, whereupon DPs reviewed progress, including that related to independent verification of compliance with DLRs. The data were also used to prepare a final evaluation report. However, given delays and difficulties with data collection, not all information was available at closing but was largely received by the end of the operation’s grace period. The data were also used for the World Bank to monitor progress toward targets in its RF and trigger disbursements based on independent P a g e | 21 of 73 The World Bank Nepal School Sector Development Program (P160748) verification. Finally, the data available have been used to prepare the next stage of World Bank and DP support to the Government for the education sector. Justification of Overall Rating of M&E Quality 75. Overall M&E quality is rated Substantial. Despite the initial delays in providing information given changes in the institutional framework and the limited capacity of the LGs and schools that became responsible for M&E, reporting became more streamlined in the later years during implementation. EMIS also helped track progress of remote learning initiative at the school level. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE Environmental and Social 76. In accordance with the World Bank’s Policy on ‘Program-for-Results Financing’, the World Bank conducted an Environmental and Social Systems Assessment (ESSA) of Nepal’s existing environmental and social management systems for the education sector and concluded that the program’s environmental and social impacts were expected to be low. The ESSA found that the existing legal and regulatory frameworks governing the education sector was satisfactory for safeguarding both environmental and social systems. In addition, the borrower had sector experiences in implementing education projects. The ESSA also identified challenges/gaps associated with limited capacity to implement the Environment Management Framework (EMF) and Social Management Framework (SMF) at the district and school levels. Accordingly, the ESSA identified key actions/measures to address these challenges which were included in the PAP: (a) revision of the EMF and SMF; (b) adequate budget provision in the AWPB; (c) strengthening of beneficiary feedback and grievance redressal mechanisms; and (d) enhancing of institutional capacity through staffing and training. 77. While the IA (CEHRD) completed the actions as proposed in the PAP, the implementation status was Moderately Satisfactory. The EMF and SMF were revised as agreed, but screening was introduced only for the selected model schools. However, the CEHRD showed its commitment to address the various environmental and social risks by requesting beneficiary schools to nominate safeguard focal persons, recruiting dedicated environmental and social experts, providing relevant environmental specifications and clauses in the model school bid document, conducting quarterly environmental and social compliance monitoring in schools, and developing a Safeguard Resource Book (Nepali version) which outlined procedures for safeguard implementation, procurement, construction, and information dissemination. In addition, the CEHRD conducted an environmental and social risk management orientation program for 223 officials at the federal, provincial, and district levels (EDCU) and a two-day virtual awareness program for head teachers (principles), SMCs, and design consultants of 100 model schools. The main challenges experienced during implementation of environmental and social risks were the institutional arrangements following the evolving federal structure. The diverse capacity of LGs in terms of human resource and knowledge to address safeguard issues remained a challenge. Additional budget provision for environmental and social risk management in all three tiers of government, especially at the local level, was also needed. 78. Under the AF (COVID-19 School Sector Response (GPE), a separate Environment and Social Management Framework was prepared and implemented as per the World Bank’s Environmental and Social Framework. The project submitted the environmental and social, and safety compliance monitoring report. P a g e | 22 of 73 The World Bank Nepal School Sector Development Program (P160748) Fiduciary 79. The integrated fiduciary systems assessment identified elements of strength in existing fiduciary systems while acknowledging that there were also significant fiduciary risks. The strengths included (a) a sound government budget process with regard to timeliness, classification, and execution by Treasury; (b) transparency of the budget process with daily reports, budget documents, and annual financial statements published on time; and (c) a systematic external audit of government expenditures, including in the education sector, by the Office of the Auditor General. Actual expenditures under the PforR as per OAG report is presented in Annex 3. Risks included (a) the large number of cost centers and beneficiaries which posed significant risks in the absence of robust accountability mechanisms; (b) low capacity on planning, budgeting, and monitoring across all levels; and (c) inadequacies in the internal control framework with the MOE. Mitigation measures, including those related to strengthening systems, building capacity, staffing, and providing TA, were identified to improve the performance of fiduciary systems, some of which were included as DLIs. The PforR addressed the fiduciary risks in two ways: (a) through DLI-based financing (monetary incentives) by including a DLI on strengthening governance, fiduciary, data, and capacity and (b) through the PAP by integrating key fiduciary measures. The measures also included the need to implement, monitor, and update annually an approved Fiduciary Management Action Plan (FMAP) to continuously improve fiduciary management. Review of the FMAP on a semiannual basis was to further help strengthen the fiduciary management system. 80. During implementation, the PforR’s revised institutional arrangements following the federal transition increased fiduciary risks due to the lack of capacity, adequate reporting procedures, internal controls, and accountability mechanisms in over 761 cost centers and 28,000 schools. Fiduciary assessments carried out during implementation suggested several actions to mitigate the increased risks, including (a) developing mechanisms for LGs to report on activities implemented; (b) carrying out financial and performance audits to provide assurances of utilization of program funds; (c) establishing a Fiduciary Management Committee led by the Ministry of Finance; (d) building capacity for fiduciary management at all three levels of government and in community schools; and (e) engaging a procurement expert and establishing a system to share complaints regarding fraud with the World Bank. The PforR’s PAP was revised to include several actions directly related to fiduciary management that were deemed necessary to strengthen the SSDP’s overall fiduciary framework. Compliance with these is described in the PAP in Annex 1. 81. Other than the challenges that revised institutional arrangements posed to fiduciary management, the main issue related to resolving audit arrears first from the SSRP and then from the SSDP operation. These issues led to the inclusion of a time-bound Audit Arrears Resolving Action Plan (AARAP) in the PAP in the June 2021 AF, including the following actions: (a) responsibility and timeline to resolve audit issues, (b) timeline for responding to preliminary audit reports and World Bank comments, and (c) process/timeline for declaration of ineligible expenses. Though the preparation of AARAP has been delayed, the ineligible expenditures have been refunded by the Government in February 2023. C. BANK PERFORMANCE Quality at Entry 82. Building upon earlier financial and technical assistance (section IV.A), the team sustained a strong dialogue with the Government and the LEG to help design a flexible, coordinated, and results-based instrument in support of the SSDP, with harmonized implementation arrangements. As a next step in the support of Nepal’s education sector, the World Bank and GPE support was provided under a PforR lending instrument that allowed for delivering results for a government program at the sectoral level, expanding the use of government systems, P a g e | 23 of 73 The World Bank Nepal School Sector Development Program (P160748) and hence strengthening them and harmonizing funding for the program from multiple DPs. The team correctly identified the need for TA and support by including an IPF component under the PforR. The PforR’s RF and DLI matrix were both complex, but the key indicators and DLI protocols were well formulated, with measurable targets within the established M&E design. Risks were well identified, especially the political/governance and institutional/fiduciary risks in view of an uncertain political environment, frequent changes of government, and the absence of the LG, which was worrisome in view of the dispersed nature of activities across the entire country. The impact of passage of the new Constitution on the program was not explicitly contemplated, but the team confirmed that this had been considered and that having an instrument in place to support the new structure and responsibilities would provide a head start in supporting the GON to implement the federal structure. Quality of Supervision 83. The World Bank’s implementation support team inherited a well-designed and well-prepared operation that was ready for implementation. The team faced mammoth challenges almost immediately and throughout implementation. The repeated challenges related first to a major adjustment in its implementation arrangements, responsibilities, and especially weaker capacities that affected all aspects of the program, then to additional needs to ensure expected impact that stemmed from an unprecedented pandemic, and finally to the AF requirements that surfaced as a result of supporting the financing gap as well as federal transition and the pandemic. Implementation support was timely, hands-on by international staff based in the country office and country office-based team, results focused, well documented, and constantly focused on adjusting, restructuring the PforR, and securing required funding—all in response to the GON’s needs and in coordination with its DPs—to keep the program on track toward the achievement of its objectives. The program’s three AFs and multiple restructurings were complex, requiring adjustment of implementation arrangements while helping build capacity at the local level and modifying DLIs/DLRs, the RF, and the PAP. They were processed on time as required for keeping the program’s design and implementation relevant and on track. The Program Documents for the AFs and restructurings were well prepared within the framework of the LEG to ensure complementarity of assistance that was responsive to the Government’s technical and financial needs and that of its SSDP. Justification of Overall Rating of Bank Performance 84. Based on the above, overall World Bank performance is rated Satisfactory. The program was well designed and the World Bank made every effort to make adjustments during implementation to ensure the achievement of objectives. D. RISK TO DEVELOPMENT OUTCOME 85. While not without risk—Nepal is highly vulnerable to climate-related disasters that can have major economic risks—there are several important factors that mitigate the risk to development outcome. The Government’s track record in obtaining impressive gains in education access and gender parity over the past decade reflects its strong, sustained commitment to improving access, quality, and equity in education, despite several adverse events including an earthquake, flood, and, most recently, the COVID-19 pandemic. The continued priority assigned by the Government is reflected in SESP 2022–2032 that provides continuity to and expands upon the SSDP 2017–2023 supported by the PforR. The Government has committed to an increased budget allocation for the SESP 2022–2032 compared to previous years. The World Bank is working with the Government and DPs to design a next stage of assistance (School Sector Transformation Program [SSTP] 2023– 2027) that would support the first five years of the SESP. The proposed SSTP operation is expected to finance outcomes/results associated with improvements in quality of basic and secondary education through enhanced P a g e | 24 of 73 The World Bank Nepal School Sector Development Program (P160748) service delivery; improved local governance; and strengthened capacity on implementation, FM, and M&E. World Bank assistance would be provided through a PforR instrument with an IPF component to strengthen further the use of country systems for program implementation, fiduciary and safeguard management, and monitoring in the federal context. V. LESSONS AND RECOMMENDATIONS 86. Efforts to show measurable improvements in quality of learning are challenging and must be defined with carefully identified targets. The PforR aimed to support improved quality of education through support to (a) strengthen ECED and NEGRP, (b) revise and implement the NCF, (c) develop textbooks and learning materials, (d) improve student assessment and examination system, and (e) improve school and teacher management and accountability. But, delay in implementation of activities, as in the case of the PforR due to federal transition can impact achievement of results. Further, when activities to enhance quality involve improvements to assessment systems, comparability of assessment systems utilized at the baseline (if there was one) and the new system often does not allow comparison of numbers. Then, complementary objectives, such as expanding equitable access and inclusion—Objective 2 under the PforR—if satisfactorily achieved (which was the case) through implementation of PPTS that targeted poor students and OOSC, invariably affect quality as students with different backgrounds factor into the overall quality achievements. Finally, exogenous occurrences, such as the COVID-19 pandemic, affect quality improvements and survival rates. To address this, design of results frameworks that measure quality of learning should be carefully calibrated to ensure that impact can be measurable (i.e., no discontinuity in assessment comparability) and achievable/ actionable (i.e., if endogenous or exogenous events affect the likelihood of achievement of targets, the IR and PDO targets are reevaluated and adjusted). 87. The response to pandemics and other exogenous crises should be tailored to the realities of different income (and gender) groups. School closures especially affected the students from lower socioeconomic backgrounds and deprived communities as they had even more limited access to teachers and active forms of remote learning than the non-poor student population. The Government’s COVID-19 response plan, supported by the PforR addressed the needs of students that: (i) had access to all tech services; (ii) had limited access to tech services; (iii) had access to computers or mobile phones but no regular access to internet; (iv) had access to mobile phones (non-smart phones); (v) had access to TV and/or radio; (vi) did not have access to any of those media; and (vii) had additional needs such as those with disabilities, or from poor, marginalized communities. Building system resilience, including digitized learning programs, climate disaster awareness, and preparedness, and ensuring equity in access during emergencies were therefore critical in sustaining improvements in outcomes for students from disadvantaged backgrounds. The implementation of alternative modes of learning—catered to the students’ different access to technology—and catch-up programs were especially relevant to children from disadvantaged backgrounds. The Government’s approach was effective, and projects catering to beneficiaries of different socioeconomic backgrounds and needs should define activities catered to their access challenges. 88. Major events, such as federalization, affect projects in multiple ways from institutional arrangements to capacity and financing, but an ongoing sectorwide operation offers an instrument to help the Government identify adjustments required and define an agenda for addressing them. Following federal, provincial, and local elections in 2017, adapting to the new three-tier structure for a new federal state presented enormous challenges to program implementation as well as opportunities to help ensure that the federalization in the education sector could proceed smoothly. This profound restructuring was expected to result in improved outreach and service delivery in the medium term but challenged implementation. While having the PforR under implementation at the time of this major event allowed Nepal’s DPs, including the World Bank, to adjust the P a g e | 25 of 73 The World Bank Nepal School Sector Development Program (P160748) design of their assistance to the new structure of government and provide just-in-time support to the new institutions. By completion, the school education sector was one of the most devolved arrangements in implementing and operating under the new federal structure. The Project’s experience shows that when there is a major event exogenous to the Project that affects its implementation, that event may be very relevant to all activities and projects, and the existence of an ongoing vehicle of support offers an opportunity to jump in and provide valuable just-in-time support to a government priority. 89. Complementing the federalization described above, PforR operations are especially beneficial in helping address the management, fiduciary, and other broad institutional issues that are required to produce results at the sectoral level in coordination with DPs; it is important to have dedicated financing for TA needs for this to be successful. The SSDP aimed to enhance efficiency and effectiveness in sectoral financing through implementation of several activities, including ensuring appropriate annual budget allocations and improving the FM system for bottom-up planning and budgeting process and timely fund release to schools under a revised school grant mechanism to make it both need based and performance based. Results included strengthened fiduciary management, with a reduced number of audit observations, the integration of SSDP activities into the AWPB, the reporting of school-level expenditures through standardized accounting software and significant improvements in reporting, quality of data, and use of EMIS, and continued strengthening of the use of EMIS data in planning at the school, LG, and provincial levels. As a PforR, the operation did not include a separate TA component to support institutional strengthening. TA to support hands-on implementation of these activities was provided through multiple sources but was not harmonized or planned adequately to support the critical reforms: joint TA (US$5 million from the ADB/EU), separate World Bank technical support, and Program Support Fund. A harmonized and well-planned TA is critical to support achievement of results in a large program with diverse capacity of implementation agencies. . P a g e | 26 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 1. RESULTS FRAMEWORK, DISBURSEMENT LINKED INDICATORS, AND PROGRAM ACTION PLAN Annex 1A. RESULTS FRAMEWORK (i) PDO Indicators Objective/Outcome: Improved teaching-learning and student learning outcomes Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of students Text - Second competency- Not achieved displaying grade-level based test conducted competency on core subjects for Grade 8, which in Grade 8 measured through reported 3 percentage NASA point increase from baseline 28-Feb-2017 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Enhanced teacher time- Text Limited teacher TST enhancing TST monitoring system TST monitoring system spent-teaching (TST) accountability (low monitoring system operational in 229 operational in 229 operational in 90% of Page 27 of 73 The World Bank Nepal School Sector Development Program (P160748) operational levels of TST) all community schools LGs. LGs. 15-Jul-2016 16-Jul-2022 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): The indicator was adjusted two times: (i) During the June 2020 restructuring, the indicator was adjusted due to the delay in implementation as a result of federal transition and to recognize the role of LGs in the achievement of the result in the federal context; (ii) During the June 2021 restructuring, the indicator was split into two to recognize/ monitor the efforts of teachers in remote learning due to school closures. At the end of the project, the revised indicator was overachieved and substantially achieved against the original indicator. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of LGs that have Text N/A 171.00 422.00 implemented alternative mode of learning during 15-Mar-2021 15-Mar-2021 16-Jul-2022 COVID-19 schools closures Comments (achievements against targets): This indicator was introduced during the restructuring in June 2021 (TST indicator was split) to ensure and incentivize the effort of teachers in remote learning during school closures. The indicator was overachieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of LGs that have Text N/A 400.00 400.00 Page 28 of 73 The World Bank Nepal School Sector Development Program (P160748) implemented catch-up 01-Apr-2021 16-Jul-2022 16-Jul-2022 program Comments (achievements against targets): This indicator was introduced during the Additional Financing approved in July 2021. Target was fully achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Survival rate to Grade 8 and Text Grade 8 Grade 8 All: 92 Boys: Grade 8 All: 83.5, to Grade 12 (disaggregated All: 76.6 percent 91.2 Girls: 93 Grade Girls:83.8, Boys: 83.3. by gender) 12 All: 25 Boys: 12 Grade 12: All: 33.1, Boys: 75.9 percent percentage point Girls:33.9, Boys: 32.2 Girls: 77.4 percent increase from Year 1 Girls: 12 percentage point increase from Grade 12 Year 1 All: 11.5 percent 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): The target for Grade 8 was not fully met but the target for Grade 12 was overachieved. Objective/Outcome: Improved equitable access to basic and secondary education Page 29 of 73 The World Bank Nepal School Sector Development Program (P160748) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion NER in basic and secondary Text Basic: Basic All: 92.9 Boys: Basic All: 91.4 Boys: Basic: Total 92.2; Girls education in 15 most All: 85.1 94.3 Girls: 91.5 92.8. Girls:90.0 90.9; Boys: 93.4 disadvantaged districts as Secondary All: 48.0 Secondary All: 44.3 ranked in the equity index Boys: 86.5 Boys: 49.3 Girls: 46.8 Boys: 45.6 Girls: 43.1 (disaggregated by gender) Girls 83.6 Secondary: Total 44.1; Girls 43.4; Boys 44.9 Secondary: All: 29.1 Boys: 30.4 Girls: 27. 15-Jul-2016 16-Jul-2022 09-Jun-2020 16-Jul-2022 Comments (achievements against targets): The baseline was revised based on available data during June 2020 restructuring. Based on this, the annual and end targets were updated. The target for Grade 8 was overachieved and Grade 12 was fully achieved. Objective/Outcome: Strengthened education system, sector planning, management and governamce Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of funds Percentage 0.00 95.00 99.75 Page 30 of 73 The World Bank Nepal School Sector Development Program (P160748) disbursed to schools in 15-Jul-2016 15-Jul-2021 15-Jul-2021 compliance with eligibility and utilization guidelines Comments (achievements against targets): For the FY 2019-20, out of the total SSDP expenses of NPR 97,398.90 million, the total ineligible expenses are NPR 246.19 million which is 0.25% of total expenditure. (ii) Intermediate Results Indicators Results Area: Results Area 1: Improved teaching-learning and student learning outcomes Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Improved ECED and EGRP Text n.a. (i) Classroom-based (i) Classroom-based EGR Assessment EGR Assessment carried out in 3,000 carried out in 10,912 community schools; community schools; (ii)Number of schools (ii) Number of schools meeting minimum meeting three out of standards for ECED is the five minimum 8,000 standards for ECED is 11,072 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Page 31 of 73 The World Bank Nepal School Sector Development Program (P160748) Achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion National Curriculum Text Secondary curriculum Grade 9 new Grade 9 new Framework (NCF) revised does not adequately curriculum curriculum and implemented serve the needs of implemented implemented diverse student population. 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Achieved Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Assessment and examination Text Letter grading and The ERO has analyzed (i) MOEST (i) MOEST system reforms undertaken single-subject and reported Grade approves a framework approves a framework to improve teaching and certification 10 standardized for conducting the SEE for conducting the SEE learning introduced in Grade examinations of the exams at the exams at the 10 NEB results and NASA provincial level. (ii) provincial level. (ii) results for the ERO has analyzed ERO has analyzed previous year in NASA results for the NASA results for the Inadequate capacity to actionable form previous year in previous year in carry out high-quality Page 32 of 73 The World Bank Nepal School Sector Development Program (P160748) competency-based actionable form. actionable form. assessments Public examinations (Grades 8, 10, and 12) not standardized 15-Jul-2016 16-Jul-2022 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Improved teacher Text Number of teachers Number of teachers to The end-of-project for management and identified nationally be redeployed this indicator was accountability for redeployment reduced by 60% of the reported as baseline achieved.Number of teachers to be redeployed reduced by 72% of the baseline. 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Page 33 of 73 The World Bank Nepal School Sector Development Program (P160748) Overachieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of schools receiving Text Serious accountability 700.00 500.00 block grants problems in the current model of community schools are hard to address. 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Substantially achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of schools Text Accountability and 7,500.00 3010 community implementing performance- performance issues schools received based grants for meeting are hard to be performance grants in minimum accountability addressed through a FY 2017/18 and FY requirements supply-based 2018/19. approach. 15-Jul-2016 16-Jul-2022 16-Jul-2022 Page 34 of 73 The World Bank Nepal School Sector Development Program (P160748) Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Large-scale Number 0.00 3.00 5.00 primary/secondary learning assessments completed 15-Jul-2017 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Grade 8- 2017; Grade 5: 2018; Grade 10: 2019; Grade 8:2020, Grade 3:2020 Results Area: Results Area 2: Improved equitable access to basic and secondary education Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of out-of-school Text - 280,000.00 280,895 children brought to schools or LCs 28-Feb-2017 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Overachieved. Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 35 of 73 The World Bank Nepal School Sector Development Program (P160748) Target Completion Implementation of pro-poor Text Scholarship schemes (a) PPTS scheme (a) Standards, (a) Standards, targeted scholarships (PPTS) are not pro-poor implemented in operational policies operational policies and pro-science targeted targeted Grades 9, 10, 11, and and guidelines (SOPG) and guidelines (SOPG) scholarships (PSS) 12 in all districts (b) on the on the PSS scheme implementation of implementation of Share of science implemented in PPTS and PPS PPTS and PPS enrolment in Grades Grades 11 and 12 in all approved (b) PPTS and approved (b) PPTS and 11 and 12 is very low. districts PPS is rolled out PPS is rolled out nationally as per the nationally as per the updated SOPG for updated SOPG for implementation (c) implementation (c) Share of girls Share of girls benefitting from PPTS benefitting from PPTS and PPS is 45 percent and PPS is 57.4 percent 15-Jul-2016 16-Jul-2022 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Original and revised fully achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of secondary Text Low enrolment of 500.00 422 (model schools) schools receiving pro-science students in science grants to offer science streams Page 36 of 73 The World Bank Nepal School Sector Development Program (P160748) stream 15-Jul-2016 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Substantially achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Share of students enrolled in Text Low enrolment of 15.00 17.20 science subjects in Grades 11 students in science and 12 streams 15-Jul-2016 16-Jul-2022 28-Feb-2022 Comments (achievements against targets): Overachieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Students benefiting from Number 0.00 7,000,000.00 8,214,510.00 direct interventions to enhance learning 15-Jul-2016 16-Jul-2022 16-Jul-2022 Students benefiting from Number 0.00 3,500,000.00 4,071,252.00 direct interventions to enhance learning - Female Page 37 of 73 The World Bank Nepal School Sector Development Program (P160748) Comments (achievements against targets): Results Area: Results Area 3: Strengthened education system, sector planning, management and governance Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Strengthened governance, Text Enhanced fiduciary (a) Audit a) Percentage of audit (a) Percentage of fiduciary management, data system is not in place. observations observation of SSDP audit observation of systems, and institutional decreased to 4% of no more than 5% of SSDP no more than capacity for results-based total non-salary grants total SSDP 0.25% of total SSDP program implementation 85% accuracy in self- to schools (b) 97% expenditure (b)97% expenditures; (b) reported student and accuracy in self- accuracy in self- 96.68 accuracy in teacher data (from the reported student and reported student and EMIS data (as per 2014 Public teacher data (from teacher data (from OOSC verification Expenditure Tracking third round of EMIS third round of EMIS report); (c) School Survey) verification) verification) ; (c) level expenditure School level reporting through expenditure reporting school accounting Absence of a system through school system software to verify school funds accounting system piloted in 1890 eligibility and software piloted in schools utilization compliance 2000 schools Need for enhanced and specific institutional capacity (TA) for results-based program Page 38 of 73 The World Bank Nepal School Sector Development Program (P160748) implementation 15-Jul-2016 16-Jul-2022 16-Jul-2022 28-Feb-2022 Comments (achievements against targets): Achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Enhancing feedback Text School profile cards District and school School profiles from School profiles from mechanism to schools not used for profile cards used in EMIS generated and EMIS generated and conducting social social audits in all used in social audits used in social audits audits in schools schools by linking with annually to improve annually to improve school performance school performance school performance grants 15-Jul-2016 16-Jul-2022 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Results Area: IPF Component on CoVID 19 School Sector Response Project Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of basic education Text 0.00 1,500,000.00 2,622,344 Page 39 of 73 The World Bank Nepal School Sector Development Program (P160748) level (pre-primary to Grade 31-Mar-2020 15-Jul-2022 16-Jul-2022 8) students who can access inclusive distance learning supported through the project Comments (achievements against targets): Number of pre-primary, primary and lower secondary students who can access inclusive distance learning programs via, radio, TV, learning portal, mobile phones) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of basic education Text 0.00 15,000.00 15,000.00 teachers in community schools trained in (i) 31-Mar-2020 16-Jul-2022 16-Jul-2022 addressing learning gaps; and (ii) digital skills Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of grade - specific Text 0.00 3,000.00 2,086.00 lessons supported through the project broacasted 31-Mar-2020 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Page 40 of 73 The World Bank Nepal School Sector Development Program (P160748) Number of grade - specific lessons supported through the project broadcasted through radio, TV, mobile and made available on learning portal and through mobile apps. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of children from Text 0.00 190,000 695,351 marginalized background/ with no access to media or 31-Mar-2020 16-Jul-2022 16-Jul-2022 internet provide with printed learning packs and materials. Comments (achievements against targets): Number of children from marginalized background/ with no access to media or internet provide with printed learning packs and materials. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of children provided Text 0.00 1,500,000 4,455,411 access to programs and sensitization campaigns to 31-Mar-2020 16-Jul-2022 16-Jul-2022 minimize the negative impacts of school closures, with a focus on girls Comments (achievements against targets): Number of programs and sensitization campaigns that include (i) messages on the importance of education with special focus on girls and CwD and; (ii) Ministry of Health and Population endorsed messages on disease prevention and good hand washing practices; and (iii) schedule of TV and radio programs Page 41 of 73 The World Bank Nepal School Sector Development Program (P160748) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Learning portal functional Text Learning portal The learning portal is The learning portal is developed functional functional. 31-Mar-2020 16-Jul-2022 28-Feb-2022 Comments (achievements against targets): Enhanced learning portal including integrated learning management module will be functional Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of children Text 0.00 400,000 674,854 supported with accelerated learning program to mitigate 31-Mar-2020 16-Jul-2022 16-Jul-2022 the learning loss during school closure Comments (achievements against targets): Schools will assess learning of students post CoVID, provide remedial instruction to accelerate learning for children falling behind. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of grant-supported Text 0.00 3,000.00 3,559.00 schools reopened 31-Mar-2020 16-Jul-2022 16-Jul-2022 Page 42 of 73 The World Bank Nepal School Sector Development Program (P160748) Comments (achievements against targets): Number of grant-supported schools that reopen safely Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of of grant- Text 0.00 3,000.00 3,559.00 supported schools equipped with minimum hygiene 31-Mar-2020 16-Jul-2022 16-Jul-2022 standards for prevention of CoVID 19 Comments (achievements against targets): Number of of grant-supported schools equipped with minimum hygiene standards for prevention of CoVID 19 Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion School reopening framework Text NA School reopening The school reopening and distance learning framework and framework was guidelines disseminated to distance learning developed, approved sub-national governments guidelines and disseminated to disseminated to LGs. subnational governments 31-Mar-2020 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): School reopening framework and distance learning guidelines disseminated to sub-national governments Page 43 of 73 The World Bank Nepal School Sector Development Program (P160748) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Project Implementation Text NA roject Implementation Project Manual developed Manual is developed Implementation Manual is developed and approved 31-Mar-2020 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Project Implementation Manual for Project developed Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Evaluation of distance Text NA Evaluation of distance A survey on distance learning program conducted learning program learning program was conducted conducted by CEHRD in September 2020. 31-Mar-2020 16-Jul-2022 16-Jul-2022 Comments (achievements against targets): Evaluation of distance learning program conducted ANNEX 1B. DISBURSEMENT LINKED INDICATORS DLI IN01176444 TABLE Page 44 of 73 The World Bank Nepal School Sector Development Program (P160748) DLI 1: Strengthened governance, fiduciary management, data systems and institutional capacity for results-based program implementation (Text) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) 85% accuracy IDA DLIs: IDA DLIs: GPE DLIs: IDA DLIs: IDA DLIs: in self- DLR 1.3: DLR 1.4: 4 DLR 1.9: 65 DLR 1.6: DLR 1.12: reported Satisfactory percentage additional Percentage School level student and completion points LGs have of audit expenditure teacher data of capacity improvemen integrated observation reporting (from the strengthenin t in teacher SSDP s of SSDP for through 2014 public g AWPB on and student activities in FY2019-20 school expenditure key PSF data their AWPB no more accounting tracking activities accuracy (provided than 5.0% of system survey) compared to that the LGs total SSDP software IDA DLI: DLR discrepancy under DLR expenditure piloted in 1.1 in the 1.7 have s. GPE DLIs: 2000 Absence of a Enhanced sample continued to DLR 1.11: schools DLR Original values system to fiduciary verification integrate 100 1.13: verify school system in survey SSDP additional Integrated funds place carried out activities in LGs have EMIS policy eligibility and in year one, their AWPB) made data guideline utilization or 95% DLR 1.10: on approved. compliance accuracy in 100 conditional the same additional grants verification LGs have released to Need for survey made data individual enhanced and carried out on schools, specific in year conditional consistent institutional three. DLR grants with the capacity for 1.5: released to Grant results-based Page 45 of 73 The World Bank Nepal School Sector Development Program (P160748) program Satisfactory individual Managemen implementati completion schools, t Guideline, on of capacity consistent public on strengthenin with the user-friendly g AWPB on Grant websites (or key PSF Managemen accessible activities. t Guideline, spaces) GPE DLIs: public on (provided DLR 1.7: 75 user-friendly that the LGs LGs have websites (or under DLR integrated accessible 1.8 and DLR SSDP spaces)(prov 1.10 have activities in ided that continued to their AWPB. the LGs make such DLR 1.8: 200 under DLR data public LGs have 1.8 have on user- made data continued to friendly on make such websites (or conditional data public accessible grants on user- spaces)) released to friendly individual websites (or schools, accessible consistent spaces)) with the Grant Managemen t Guideline, public on user-friendly websites (or accessible Page 46 of 73 The World Bank Nepal School Sector Development Program (P160748) spaces) IDA DLIs: IDA DLIs: GPE DLIs: IDA DLIs: IDA DLIs: DLR 1.3: DLR 1.4: DLR 1.9: 65 DLR 1.6: DLR 1.12: Satisfactory 95% additional Percentage School level completion accuracy in LGs have of audit expenditure of capacity the integrated observation reporting strengthenin verification SSDP s of SSDP for through g AWPB on survey activities in FY2019-20 is school key PSF carried out their AWPB 0.25% of accounting activities in year (provided total SSDP system three. DLR that the LGs expenditure software 1.5: under DLR s. GPE DLIs: piloted in Satisfactory 1.7 have DLR 1.11: 1890 IDA DLI: DLR completion continued to 100 schools DLR 1.1 of capacity integrate additional 1.13: Enhanced strengthenin SSDP LGs have Integrated Actual values g AWPB on activities in made data EMIS policy fiduciary system in key PSF their AWPB) on guideline place activities. DLR 1.10: conditional approved. GPE DLIs: 100 grants DLR 1.7: 75 additional released to LGs have LGs have individual integrated made data schools, SSDP on consistent activities in conditional with the their AWPB. grants Grant DLR 1.8: 200 released to Managemen LGs have individual t Guideline, made data schools, public on on consistent user-friendly conditional with the websites (or grants Grant accessible Page 47 of 73 The World Bank Nepal School Sector Development Program (P160748) released to Managemen spaces) individual t Guideline, (provided schools, public on that the LGs consistent user-friendly under DLR with the websites (or 1.8 and DLR Grant accessible 1.10 have Managemen spaces)(prov continued to t Guideline, ided that make such public on the LGs data public user-friendly under DLR on user- websites (or 1.8 have friendly accessible continued to websites (or spaces) make such accessible data public spaces)) on user- friendly websites (or accessible spaces)) 6,000,000.0 6,000,000.0 20,300,000. 7,700,000.0 6,600,000.0 19,000,000. Allocated amount ($) 65,600,000.00 0 0 00 0 0 00 6,000,000.0 6,000,000.0 20,300,000. 7,700,000.0 6,600,000.0 18,438,066. Disbursed amount ($) 65,038,066.00 0 0 00 0 0 00 Comments (achievements against targets): All DLRs except DLR 1.12 fully achieved. DLR 1.12 was high substantial achievement. DLI IN01176445 TABLE DLI 2: Improved access to basic and retention in secondary schools (Text) Page 48 of 73 The World Bank Nepal School Sector Development Program (P160748) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: DLR 2.2: DLR 2.3: DLR 2.4: DLR 2.5: DLR 2.8 PPTS in PPTS in 250,000 Percentage Standards, Grades 9 Grades 9, cumulative of poor operational and 11, and 10, 11, and number of students policies and Scholarship PSS in Grade 12 and PSS OOSC with at least guidelines schemes are 11 in Grades 11 brought to a GPA of 1.6 (SOPG) on not pro-poor implemente and 12 schools or in 2077 SEE the targeted. d in 25 implemente Learning exam is implementa IDA DLIs: districts d in Centers. 70%.GPE tion of PPTS DLR 2.1: Share of additional DLIs: DLR and PPS Original values PPTS and science 50 districts. 2.7: OOSC approved. PSS schemes enrolment in GPE DLI: have been DLR 2.9 approved Grades 11 DLR 2.6: reduced by PPTS and and 12 is very OOSC have 5.6% PPS is rolled low been nationwide. out reduced by nationally as 30% in 15 per the Targeted updated Districts SOPG for implementa tion. IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: DLR 2.1: DLR 2.2: DLR 2.3: DLR 2.4: DLR 2.5: DLR 2.8 Actual values PPTS and PPTS in PPTS in 280,895 Percentage Standards, PSS schemes Grades 9 Grades 9, cumulative of poor operational approved and 11, and 10, 11, and number of students policies and Page 49 of 73 The World Bank Nepal School Sector Development Program (P160748) PSS in Grade 12 and PSS OOSC with at least guidelines 11 in Grades 11 brought to a GPA of 1.6 (SOPG) on implemente and 12 schools or in 2077 SEE the d in 25 implemente Learning exam is implementa districts d in Centers. 75%.GPE tion of PPTS additional DLIs: DLR and PPS 50 districts. 2.7: OOSC approved. GPE DLI: have been DLR 2.9 DLR 2.6: reduced by PPTS and OOSC have 6.76% PPS is rolled been nationwide out reduced by nationally as 55.2% in 15 per the Targeted updated Districts SOPG for implementa tion 6,000,000.0 6,000,000.0 7,200,000.0 6,000,000.0 7,200,000.0 10,000,000. Allocated amount ($) 42,400,000.00 0 0 0 0 0 00 6,000,000.0 6,000,000.0 7,200,000.0 6,000,000.0 7,200,000.0 10,000,000. Disbursed amount ($) 42,400,000.00 0 0 0 0 0 00 Comments (achievements against targets): All DLRs fully achieved. DLI IN01176446 TABLE DLI 3: NCF revised and implemented (Text) Baseline FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 Total (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Page 50 of 73 The World Bank Nepal School Sector Development Program (P160748) 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) Secondary IDA DLIs: IDA DLIs: IDA DLIs: curriculum DLR 3.1: DLR 3.2: DLR 3.3: does not Revised NCF Revision of Grade 9 new adequately approved curriculum curriculum Original values serve the for Grades implemente needs of 9-12 d. diverse approved. student population IDA DLIs: IDA DLIs: IDA DLIs: DLR 3.1: DLR 3.2: DLR 3.3: Revised NCF Revision of Grade 9 new Actual values approved curriculum curriculum for Grades implemente 9-12 d. approved. 8,000,000.0 0.00 8,000,000.0 8,000,000.0 0.00 Allocated amount ($) 0.00 24,000,000.00 0 0 0 8,000,000.0 0.00 8,000,000.0 8,000,000.0 0.00 Disbursed amount ($) 0.00 24,000,000.00 0 0 0 Comments (achievements against targets): All DLRs fully achieved. DLI IN01176447 TABLE Page 51 of 73 The World Bank Nepal School Sector Development Program (P160748) DLI 4: Assessment and examination system reforms undertaken to improve teaching and learning (Text) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) IDA DLIs: IDA DLIs: IDA DLIs: DLR 4.1: DLR 4.2: DLR 4.3: (i) Analysis of Single MOEST Letter grading results for subject approves a and single nationally certification framework subject representati policy for for certification ve and Grades 11 conducting introduced at competency and 12 the SEE Grade 10 -based NASA implemente exams at Grade 8 d. the Inadequate (carried out provincial capacity to in Feb- level(ii) ERO Original values carry out high March 2017) has analyzed quality disseminate NASA results (NASA) d by August for the 2017 with previous time-bound year in Public specific actionable examinations action plan form. DLR (Grades 8, 10, for relevant 4.4: Policy 12) not agencies guidelines standardized for the implementa tion of NASA for Grades 5 and 8 Page 52 of 73 The World Bank Nepal School Sector Development Program (P160748) involving the production of proficiency descriptors and proficiency levels aligned with the SDG 4.1 indicators and guided by the Global Proficiency Framework and Policy Linking Toolkit, developed and approved. IDA DLIs: IDA DLIs: IDA DLIs: DLR 4.1: DLR 4.2: DLR 4.3: (i) Analysis of Single MOEST results for subject approves a Actual values nationally certification framework representati policy for for ve and Grades 11 conducting competency and 12 the SEE -based NASA implemente exams at Page 53 of 73 The World Bank Nepal School Sector Development Program (P160748) Grade 8 d. the (carried out provincial in Feb- level(ii) ERO March 2017) has analyzed disseminate NASA results d by August for the 2017 with previous time-bound year in specific actionable action plan form. DLR for relevant 4.4: Policy agencies guidelines for the implementa tion of NASA for Grades 5 and 8 involving the production of proficiency descriptors and proficiency levels aligned with the SDG 4.1 indicators and guided by the Global Proficiency Page 54 of 73 The World Bank Nepal School Sector Development Program (P160748) Framework and Policy Linking Toolkit, developed and approved 6,000,000.0 6,000,000.0 0.00 0.00 16,000,000. Allocated amount ($) 0.00 28,000,000.00 0 0 00 6,000,000.0 6,000,000.0 0.00 0.00 16,000,000. Disbursed amount ($) 0.00 28,000,000.00 0 0 00 Comments (achievements against targets): All DLRs fully achieved. DLI IN01176448 TABLE DLI 5: Improved School Management and Accountability System (Text) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) Absence of IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: incentives DLR 5.1: DLR 5.2: DLR 5.3: DLR 5.4: mechanism to Revised Performanc Number of Performanc Original values address grants e-based unaided e-based persistent manual grants for schools grants accountability approved schools receiving implemente challenges in for meeting block grants d in 400 LGs Page 55 of 73 The World Bank Nepal School Sector Development Program (P160748) Community Community minimum reaches 500. Schools. Schools, accountabili including ty guidelines requirement for block s grants to implemente eligible d in 3,000 unaided schools (permitted) Community Schools, performanc e grants to unaided schools eligible for block grants and Community Schools meeting basic accountabili ty requirement s, and pro- science enhanced grants IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: Actual values DLR 5.1: DLR 5.2: DLR 5.3: DLR 5.4: Revised Performanc Number of Performanc Page 56 of 73 The World Bank Nepal School Sector Development Program (P160748) grants e-based unaided e-based manual grants for schools grants approved schools receiving implemente for meeting block grants d in 400 LGs Community minimum reaches 500. Schools, accountabili including ty guidelines requirement for block s grants to implemente eligible d in 2950 unaided schools (permitted) Community Schools, performanc e grants to unaided schools eligible for block grants and Community Schools meeting basic accountabili ty requirement s, and pro- science enhanced Page 57 of 73 The World Bank Nepal School Sector Development Program (P160748) grants 8,000,000.0 8,000,000.0 0.00 8,000,000.0 8,000,000.0 0.00 Allocated amount ($) 32,000,000.00 0 0 0 0 8,000,000.0 7,840,000.0 0.00 8,000,000.0 8,000,000.0 0.00 Disbursed amount ($) 31,840,000.00 0 0 0 0 Comments (achievements against targets): All DLRs achieved. DLR 5.2 is 98% achieved. DLI IN01176449 TABLE DLI 6: Improved Teacher Management and Accountability (Text) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) number of IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: teachers DLR 6.1: DLR 6.2: TST DLR 6.3: DLR 6.4 (a): DLR: 6.4 (b): DLR 6.6 At identified Revised enhancing Number of TST 171 LGs least 400 nationally for policy and monitoring teachers to enhancing have LGs have redeployment guidelines system be monitoring implemente implemente on operational redeployed system d alternative d catch-up Original values reallocation in 15% of all reduced by operational mode of program Limited of teachers community 25% of the in 229 LGs learning teacher based on schools baseline. during accountability COVID- status and (low levels of norms of period TST) (teacher teacher deployment, involvement Page 58 of 73 The World Bank Nepal School Sector Development Program (P160748) and policy in the and alternative guidelines mode of aimed at learning). improving DLR 6.5: TST Number of approved teachers to be redeployed reduced by 60% of the baseline. IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: IDA DLIs: DLR 6.1: DLR 6.2: TST DLR 6.3: DLR 6.4 (a): DLR: 6.4 (b): DLR 6.6 At Revised enhancing Number of TST 171 LGs least 400 policy and monitoring teachers to enhancing have LGs have guidelines system be monitoring implemente implemente on operational redeployed system d alternative d catch-up reallocation in 14.5% of reduced by operational mode of program of teachers all 72% of the in 229 LGs learning based on community baseline. during status and schools COVID- Actual values norms of period teacher (teacher deployment, involvement and policy in the and alternative guidelines mode of aimed at learning). improving DLR 6.5: TST Number of approved teachers to Page 59 of 73 The World Bank Nepal School Sector Development Program (P160748) be redeployed reduced by 72% of the baseline. 9,000,000.0 9,000,000.0 9,000,000.0 3,435,000.0 11,565,000. 20,000,000. Allocated amount ($) 62,000,000.00 0 0 0 0 00 00 9,000,000.0 8,700,000.0 9,000,000.0 3,435,000.0 11,565,000. 20,000,000. Disbursed amount ($) 61,700,000.00 0 0 0 0 00 00 Comments (achievements against targets): All DLRs achieved. DLR 6.2 was 96.7% achieved. DLI IN01176450 TABLE DLI 7: Proficiencies and habits strengthened in early grades (Text) FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY21/22 (July 16, (July 16, (July 16, (July 16, (July 16, (July 16, Baseline Total 2016 - July 2017 - July 2018 - July 2019 - July 2020 - July 2021 - July 15, 2017) 15, 2018) 15, 2019) 15, 2020) 15, 2021) 16, 2022) GPE DLIs: GPE DLI: DLR 7.1: All DLR: 7.2 All LGs in 20 LGs in 18 Districts additional Original values N/A have districts implemente have d the NEGRP implemente minimum d NEGRP package in (provided Page 60 of 73 The World Bank Nepal School Sector Development Program (P160748) at least 80% that all LGs of in Year 2 community have schools continued to implement NEGRP) GPE DLIs: GPE DLI: DLR 7.1: All DLR: 7.2 All LGs in 20 LGs in 18 Districts additional have districts implemente have d the NEGRP implemente Actual values minimum d NEGRP package in (provided at least 80% that all LGs of in Year 2 community have schools continued to implement NEGRP) 0.00 1,000,000.0 0.00 3,958,000.0 0.00 Allocated amount ($) 0.00 4,958,000.00 0 0 0.00 930,000.00 0.00 3,038,425.0 0.00 Disbursed amount ($) 0.00 3,968,425.00 0 Comments (achievements against targets): All DLRs substantially achieved. The disbursement was made based on extent of implementation of NEGRP components in the schools in districts/ LGs. Page 61 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 1C. PROGRAM ACTION PLAN PAP_TBL Achieved Action Timing Completion Measurement (Yes/No) Web-based Education Management Due Date 15-Jul-2019 Yes web-based EMIS operational in all districts Information System (EMIS) software upgraded and implemented by DOE EMIS verification survey carried out on a Other 1st round by July 2017, Yes Final report of each round of verification survey regular basis 2nd round by March 2019, 3rd round by March 2021 Comments: Two rounds of EMIS verification has been completed. It was agreed that EMIS verification for this FY will be done as part of the OOSC verification. Office of Auditor General (OAG) Audit Other July 15 every year Yes Analysis report published Report analyzed to calculate the share of audit observations on three heads: (i) total budget release; (ii) budget release on construction; and (iii) budget release on salary Comments: Audit report for FY 2019/20 has been submitted. Selection of pro-poor targeted (PPTS) and Other September 30 of each Yes List of grade 9 and grade 11 students selected for pro-science scholarship (PSS) students year starting from 2017 the scholarship using MOCPA data base published. following the ‘approved scholarship scheme’ completed Page 62 of 73 The World Bank Nepal School Sector Development Program (P160748) Comments: scholarships were released to some students for the FY20-21 following some delay as a result of COVID-19 school closures. Annual monitoring on enrollment of poor Other July 15 every year Yes Report published on retention of poor students and students, and students enrolled in science enrollment share of science students, and stream, including feedback mechanism for rectification of previous year’s inconsistencies necessary improvements in subsequent years, carried out Comments: The DLI achievement report has been received and verification is currently ongoing. In addition, the government has approved a new guidelines to implement PPTS/ PSS to improve efficiency and effectiveness. Curriculum Development and Evaluation Other July 15, 2017 Yes Decision published in the MOE/CDC website Council (CDEC) gives consent for revision of NCF with policy directives on articulating issues to be addressed including, among others, catering to the needs of secondary students with diverse learning needs, and NCF concept paper with all aspects of Due Date 28-Feb-2018 Yes Approved NCF concept paper curriculum and textbook revision, teacher preparation, reduction in number of compulsory subjects and implementation arrangement approved Single-subject certification policy Other Approval Dec 2017; Yes Approved document approved for Grades 11 and 12 Implementation starting 2018 academic session International expertise (individual or Due Date 28-Feb-2017 Yes MOU signed with international and national agency) and national partners mobilized partners to support Education Review Office (ERO) on competency-based National Page 63 of 73 The World Bank Nepal School Sector Development Program (P160748) Assessment of Student Achievement (NASA) (design and analysis) A separate budget code is established for Other March/April 2017 Yes A separate budget head established in GON Budget ERO to be effective starting FY 2017/18 document MOEST approves a framework for Due Date 10-May-2022 Yes The action is considered achieved when MOEST has conducting the SEE exams at the provincial approved the framework with actionable activities level. including timeline for completion towards SEE standardization. Comments: This action is at risk of being achieved as stated in the key issues section for management attention Monitoring plan for the implementation of Other Preparation/updating; Yes Monitoring Plan prepared/ updated, implemented, Teacher Redeployment plan (across- june every year; and annual progress submitted district, intra-district, intra-LGs) as per the Implementation every approved Policy and Guidelines year prepared/updated and implemented Implementation mechanism (logistics, Other Implementation Yes SSDP Steering Committee approves the staffing, operational modality) for mechanism May, 2017: implementation mechanism monitoring TST approved and monitoring Monitoring: every year Number of schools implementing TST program of TST program implementation Comments: TST has been implemented in 229 LGs. Budget has been provisioned for all community schools to implement TST Communication and information Other Designed: March 2017; Yes Number of dissemination program at field level dissemination program designed and Implementation: every implemented at field level year Develop and implement a comprehensive Other July 15 every year Yes M&E plan and implementation report M&E plan to strengthen the M&E system Page 64 of 73 The World Bank Nepal School Sector Development Program (P160748) Implementation and monitoring of Key Other Implementation and Yes Internal control mechanism guideline will be elements of internal control mechanism at monitoring every year included in the SSDP PIM the LG level Implementation of approved Fiduciary Other July 15 every year Yes Approval of FMAP by Steering Committee and Management Action Plan (FMAP) initiated, Budget and Finance Committee and discussion of monitored, and updated annually monitoring report by Budget and Finance Committee and Steering Committee Adequate budget for Program activities, Other March/April every year Yes Approved AWPB and ASIP. AWPB includes PAP and including DLI related activities, Program PSF line item with adequate budget, TSU is Action Plan (PAP) and Program Support operational Facility (PSF), reflected in Annual Strategic Implementation Plan (ASIP) and AWPB (Annual Work Plan and Budget) every year Annual Fiduciary Review completed Other November every year Yes Completed review Approval of revised EMF and SMF for SSDP Due Date 31-Mar-2017 Yes Approved EMF and SMF by the Steering Committee and published on MOE/DOE website Central, district and local capacity building Other February/March every Yes Formal endorsement of annual plan and budget plan with budget allocation prepared to year allocation in the ASIP/AWPB address environmental and social system issues (school safety and sanitation, citizen engagement, beneficiary feedback, GRM, and gender issues) updated annually Develop a time-bound Audit Arrears Due Date 15-Jul-2021 No The AARAP will include (i) responsibility and Resolving Action Plan (AARAP) timeline to resolve audit issues; (ii) timeline for responding to preliminary audit reports and WB comments and (iii) process/ timeline for declaration of ineligible expenditures Page 65 of 73 The World Bank Nepal School Sector Development Program (P160748) Comments: The AARAP has been delayed; however the ineligible expenditures have been refunded by the Government in February 2023. Page 66 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Dilip Parajuli, Mohan Prasad Aryal Task Team Leader(s) Maya Sherpa Team Member Karthika Radhakrishnan Team Member Shambhu Prasad Uprety Procurement Specialist(s) Franck Bessette Financial Management Specialist Timila Shrestha Financial Management Specialist Rashmi K C Khadka Team Member Annu Rajbhandari Environmental Specialist Satish Kumar Shivakumar Disbursement Officer Shwetlena Sabarwal Team Member Alejandro Welch Team Member Jaya Sharma Social Specialist Sunita Gurung Team Member Junko Funahashi Lead Counsel Supervision/ICR Karthika Radhakrishnan, Mohan Prasad Aryal, Maya Sherpa Task Team Leader(s) Shambhu Prasad Uprety Procurement Specialist(s) Bishwa Raj Basaula Financial Management Specialist Junko Funahashi Lead Counsel Tara Devi Shrestha Team Member Page 67 of 73 The World Bank Nepal School Sector Development Program (P160748) Jaya Sharma Social Specialist Satish Kumar Shivakumar Disbursement Officer Shwetlena Sabarwal Team Member and TTL between 2017-19 Deepika Shrestha Team Member Uttam Sharma Team Member Annu Rajbhandari Environmental Specialist B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY17 9.279 133,993.56 FY18 2.125 5,518.59 FY19 4.275 306,325.63 FY20 15.673 220,968.76 FY21 5.400 86,067.50 FY22 2.175 3,762.75 FY23 1.125 1,760.85 Total 40.05 758,397.64 Supervision/ICR FY18 70.005 660,821.54 FY19 58.694 480,072.07 FY20 57.513 568,782.33 FY21 60.296 1,122,827.83 FY22 46.397 1,262,472.01 FY23 27.631 273,771.15 Total 320.54 4,368,746.93 Page 68 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 3. PROGRAM EXPENDITURE SUMMARY Source of Program Type of Co- Estimates AF in AF in AF in Total Actual Expenditures Financing (US$, millions) Financing at August August July Revised (Disbursement) Appraisal 2019 2020 2021) Amount Actual % of (GPE (GPE (IDA) Appraisal ESPIG COVID- 19 ) 19) Government program Joint 6,461 1,045.6 7,506.6 5,070.3 78 GON Joint 5,739 995.6 6,734.6 4,478.9 78 IDA Joint 185 50 235 235.1 127 Total from other JFPs/non- 293 23.96 364.3 348.2 119 JFPs GPE COVID-19 (IPF Parallel 10.85 8.24 8.2 n.a. component) Financing gap 244 164.5 n.a. Government program 7,342.1 revised amount (without financing gap) Note: The difference between the ‘Estimates at Appraisal’ presented in this table and the figures presented in the datasheet is a result of, (a) inclusion of AFs in the original amount, and (b) financing gap not included in the datasheet. ‘Estimates at Appraisal’ presented here are from the Program Appraisal Document (PAD). 19 Education Sector Program Implementation Grant Page 73 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 4. BORROWER’S COMMENTS No comments were received from Government of Nepal. Annex 5: Restructuring/AFs under the Project, Key Changes and Justification Restructuring Key Changes ISR No./Date Rating DO IP No. 1 • AF (GPE) - US$23,958,000 to help reduce the financing gap S MS August 2019 • DLI matrix (introduce new DLRs for GPE fixed - DLRs 1.7 and DLR 1.9, three DLRs for GPE variable - DLRs 1.8, 1.10, and 1.11, two DLRs for GPE equity - DLRs 2.6 and 2.7) and new DLI 7 and three DLRs for GPE learning - DLRs 7.1, 7.2, and 7.3 • Reflect a change in implementation arrangements to accommodate new federal structure and reflect the role of LGs • Revise PAP to enhance the implementation and M&E capacity of the implementing agencies at the federal, provinces, local, and school levels No. 2 • RF (introduce new PDO indicator on % of Grade 3 student reading grade-level MS MS June 2020 text with proficiency and adjust PDO and IO indicators to changes in DLI/DLRs and reflect role of LGs). Update the target for PDO indicator on “NER in basic and secondary education in 15 most disadvantaged districts ” based on updated baseline data. • DLI matrix and reallocation (introduce new DLR 7.4, reallocate fund from DLR 6.4 to DLR 7.4 in light of the slight reduction in target for DLR 6.4, adjusted DLRs 1.2, 1.6, 5.4, and 6.4 to reflect federal structure and DLRs 1.12, 2.4, 2.5, 3.2, 3.3, 4.3, 5.2, 5.3, 6.2, and 6.4 due to delay in data collection, introduce rollover provision and incentivize partial achievement of results, update verification protocols, include provision for advance of funds) • PAP (revised in line with changes to DLRs, one activity dropped—Grade 10 standardized examinations analyzed) since this was covered under DLR 4.3 No. 3 • AF (GPE) - US$10.85 million to introduce an IPF component to address the MS MS June 2020 COVID-19 pandemic’s impact on basic education system and school closures • RF (introduce 12 new IO indicators to monitor progress of newly introduced IPF component) • Disbursement arrangements (reflect IPF disbursement mechanism) No. 4 • AF - SDR 34.9 million (US$50 million equivalent) to maintain and improve MS MS June 2021 implementation of the SSDP so that the PDO can be achieved and sustained by supporting pro-poor targeted scholarships (PPTSs) and catch-up programs to reduce dropouts and mitigate learning losses • Changes to the RF o Remove indicator on % of Grade 3 student reading grade-level text with proficiency. This indicator was introduced in June 2020 restructuring; however, the results could not be compared. The baseline used Grade 2 level text while the end line used Grade 3 level text. o Split indicator on TST enhancing monitoring system operational in 400 LGs to incentivize learning during school closure with the involvement of teachers. Page 73 of 73 The World Bank Nepal School Sector Development Program (P160748) Restructuring Key Changes ISR No./Date Rating DO IP o Introduce new PDO indicators to monitor catch-up program and adjust IO indicators in line with changes to DLRs • DLI matrix (introduce 5 new DLRs - DLRs 1.13, 2.8, 2.9, 4.4, and 6.6; adjust some DLRs; extend rollover provision to new closing date; and drop DLR 7.4 - increase of 2.2 percentage point over baseline of Grade 3 students’ reading grade-level text with fluency and comprehension) • Closing date (extended from July 15, 2021, to July 16, 2022) • Disbursement arrangements (rollover provision) • PAP (revise one action related to Grade 10 examination in line with DLR changes and introduce new action on fiduciary management) No. 5 • Closing date of GPE COVID-19 accelerated fund (extended from December MS MS December 31, 2021, to July 16, 2022) to provide additional time for completion of 2021 activities No. 6 • DLI matrix and reallocation (adjust DLI 7 - proficiencies and habits MS MS June 2022 strengthened in early grades to make them fully scalable, combine Year 2 and Year 3 results, introduce minor revisions to wording and verification of DLRs 7.1, 7.2, and 7.3) • Disbursement arrangements (scalability) Note: DO = Development objective; IP = Implementation progress; ISR = Implementation Status and Results Report; MS = Moderately Satisfactory; S = Satisfactory. ANNEX 6: SSDP and PforR RFs SSDP Objectives PforR Objectives PforR Includes the Following SSDP Objectives 1. Improved access to quality basic education 1. Improved teaching-learning 1, 2, 4, 5, 8, and student learning outcomes 2. Improved access to quality secondary education 2. Improved equitable access to 1, 2, 5 basic and secondary education 3. Literacy and lifelong learning 3. Strengthened education 4, 5, 7, 9, 12 system, sector planning, management, and governance 4. Teacher management and professional development 5. School governance and management 6. Disaster risk reduction and school safety 7. Monitoring, evaluation, and assessment 8. Examination and accreditation 9. Capacity and institutional development 10. Application of ICT in education 11. Health and nutrition in schools 12. Budget and finance SSDP DLIs PforR DLIs 1. Reading proficiencies and habits strengthened in early 1. Strengthened governance, grades fiduciary management, data Page 73 of 73 The World Bank Nepal School Sector Development Program (P160748) systems and institutional capacity for results-based program 2. Increased teaching-learning processes through NCF 2. Improved access to basic and revision and access to activity-based mathematics, science, retention in secondary schools and English language materials 3. Improved teacher management, availability, and 3. NCF revised and accountability, including improved deployment of trained implemented subject teachers for mathematics, science, and English in basic and secondary schools 4. Assessment and examination system reforms undertaken 4. Assessment and examination to improve teaching learning system reforms undertaken to improve teaching and learning 5. Model Schools piloted with comprehensive quality inputs 5. Improved school and innovative teaching and learning management and accountability system 6. Reduction in disparities in access, participation, and 6. Improved teacher learning outcomes management and accountability 7. Increased access and participation in secondary education 7. Proficiencies and habits strengthened in early grades 8. Provision of adequate Disaster Risk Reduction (DRR) resilient safe school facilities at all levels 9. Improved governance and strengthened fiduciary management 10. Enhanced reliability and transparency of EMIS data, including school-level data DLIs for AF for FY2021/22 (i) Integrated EMIS policy guideline approved (ii) Standards, operational policies, and guidelines (SOPG) on the implementation of PPTS and PSS approved (iii) PPTS and PSS is rolled out nationally as per the updated SOPG for implementation (iv) Policy guidelines for the implementation of NASA for Grades 5 and 8 involving the production of proficiency descriptors and proficiency levels aligned with the SDG 4.1 indicators and guided by the Global Proficiency Framework and Policy Linking Toolkit, development and approved (v) At least 400 LGs have implemented catch-up program Page 73 of 73 The World Bank Nepal School Sector Development Program (P160748) ANNEX 7: CoVID-19 School Sector Response (IPF Component) 1. Addressing the potential impact of COVID-19 on learning was challenging in Nepal; the Nepal Education Cluster, led by the MOEST and CEHRD, and co-led by UNICEF and Save the Children, developed a scenario-based Education Cluster COVID-19 Contingency Plan to mitigate and respond to the potential impacts on the education sector. The plan aimed to ensure management capacity, strengthen disease prevention and resilience in schools, and support continuity of education and learning. It considered three scenarios in the event of school closures, of up to mid-July, up to September, and for the majority of the 2020–2021 academic year (April to March), and laid out plans to support children who (a) had access to all tech services; (b) had limited access to tech services; (c) had access to computers or mobile phones but no regular access to internet; (d) had access to mobile phones (non-smart phones); (e) had access to TV and/or radio; (f) did not have access to any of those media; and (g) had additional needs such as those with disabilities or from poor, marginalized communities. To protect learning in the face of school closures, the Government rolled out Alternative Learning Facilitation Guidelines 2020 and an Emergency Action Plan to facilitate learning through multi-modal learning platforms, including radio, television, phone, online, as well as temporary LCs and door-to-door visits to facilitate learning for children with disabilities. It also disseminated offline learning materials to students. Educational institutions were reopened in December 2020 but again closed from April to September 2021 and then from January through February 2022 in response to different variants. 2. The GPE AF was approved through the GPE’s Accelerated Funding Window on August 2 1, 2020, to finance the Government’s response to mitigate learning losses due to COVID-19 school closures. As an IPF, the GPE AF introduced fiduciary and safeguard requirements different from those of the PforR. Disbursement procedures adopted the traditional prefinancing by the Government as conditional grants to LGs followed by reimbursement by the World Bank based on Statements of Expenditures. Procurement was to be carried out in accordance with the World Bank’s Procurement Guidelines, prioritized as fast - track emergency procurement. Safeguard issues, while considered Moderate for risk in the AF, followed the World Bank Environmental and Social Standards (ESS). ESSs 1, 2, 3, 4, 7 and 10 were considered directly relevant in managing the AF’s environmental and social risks. The achievement of specific IOs related to the COVID-19 IPF component is presented in the table below. The intermediate results achieved under COVID-19-Supported Activities is presented in Annex 1. During the recurring school closures and reopenings due to COVID-19, the World Bank, in partnership with MoEST and LGs, supported pilots in Nepal to fast-track and accelerate learning recovery. The first pilot implemented between January 2021 and July 2021, called Low-Tech Intervention for Foundational Education (LIFE), used mobile-phone-based tutoring and demonstrated strong learning gains in Nepal. LIFE was implemented by teachers both during school closures and while schools were open (January–March 2021) and when schools closed as a result of the second surge of COVID 19 cases (April–July 2021).20 It led to about 30 percent gains in foundational numeracy. The World Bank also supported the Teaching at the Right Level (TaRL) pilot in the classrooms between December 2021 and March 2022 (10 weeks). The TaRL pilot was implemented by teachers in the classrooms and has shown large learning gains in both foundational literacy and numeracy.21 Both these pilots have contributed to the development of the GON’s Recovery and Accelerated Learning Plan to be implemented under the new School Education Sector Plan (SESP; 2022–2032). 20 Radhakrishnan, K., S. Sabarwal, U. Sharma, C. Cullen, C. Crossley, T. Letsomo, and N. Angrist. 2021. Remote Learning: Evidence from Nepal during CoVID-19. Washington, DC: World Bank. 21 Radhakrishnan, K; U. Sharma; S. Gupta. 2022. Teaching at the Right Level: Experience from Nepal. Page 73 of 73