Document of The World Bank FOR OFFICIAL USE ONLY ReportNo: 39704-ZR PROJECT APPRAISAL DOCUMENT ONA PROPOSED GRANT INTHEAMOUNT OFSDR99.2 MILLION (US$lSO.O MILLIONEQUIVALENT) TO THE DEMOCRATIC REPUBLIC OF CONGO FOR AN EDUCATIONSECTOR PROJECT May 4,2007 Human Development 3 Central Africa 2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not otherwise be disclosed without World CURRENCY EQUIVALENTS (Exchange Rate Effective March31,2007) Currency Unit = Francs Congolais 437.00 = US$1 US$1.51326 = SDR 1 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS AAFM Administrative, Accounting and Financial IMF InternationalMonetaryFund Manual AAP Africa Action Plan INT DepartmentofInstitutionalIntegrity AfDB African DevelopmentBank IRC InternationalRescue Committee AIDS AcquiredImmuneDeficiencySyndrome ISR ImplementationStatusReport BCC Banque Centrale du Congo (CentralBank LCS Least-Cost Selection o f Congo) BCECO Bureau Central de Coordination (Central M&E Monitoring andEvaluation Office for Coordination) BP BankProcedure MASSN Ministere des Affaires Sociales et de la Solidarite' Nationale (Ministry o f Social Affairs and National Solidarity) CAF CountryAssistanceFramework MDG Millennium DevelopmentGoal MinistPre de I 'Enseignement Primaire, Secondaire et ~~ CDD Community Driven Development MEPSP Professionnel (Ministry of Primary, Secondary and ProfessionalEducation) CFAA Country Financial Accountability MESU Ministere de I'Enseignement Supirieur et Universitaire Assessment (Ministry of HigherEducationandUniversities) CFO ChiefFinancialOfficer MRS Ministere de la Recherche Scientifique (Ministry of ScientificResearch) COBOL Common-BusinessOriented Language MTEF MediumTerm ExpenditureFramework CP ~~~~ CapacityBuilding NCB NationalCompetitiveBidding CPA ~~ ContractedProcurementAgent NGO Non-GovernmentalOrganization CPAR CountryProcurementAssessment Review NM Non-Mecanisis (Not regularized) CRC Citizen's ReportCard OP OperationalPolicy FOROFFICIAL USE ONLY CRS Catholic Relief Services PA Postes atitorisis (Authorized positions) DDR Disarmament, Demobilization & PAD Project Appraisal Document Reintegration DFID Departmentfor International Development PADEM Pacte de Modernisation de 1'Enseignement Supirieur et Universitaire (Pact to Modernize Higher Education) DRC DemocraticRepublic ofCongo PDO Project DevelopmentObjective EAD Entitis Administratives Dbcentralisies PER Public ExpenditureReview (DecentralizedAdministrative Entities) EFA Educationfor All PETS Public ExpenditureTracking Survey EMRRP Emergency Multi-Sector Rehabilitation & PFM Public Financial Management ReconstructionProject EN Ecole normale (Teacher training school) PIU Project Implementation Unit EO1 Expressionof Interest PMCU Project Management and Coordination Unit EPSP Enseignemenf Primaire, Secondaire et PPF ProjectPreparationFacility Professionnel (Primary, Secondary and Professional Education) ESMF Environmental and Social Management PROVED Province Educative (Provincial EducationDirectorate) Framework EU EuropeanUnion PRSP PovertyReduction Strategy Paper EUSRP EmergencyUrban & SocialRehabilitation PTA Parent-TeacherAssociation Project FC Francs Congolais (Congolese Francs) PTS Paie Transitoire Simplifiie (Simplified Temporary Payment System) This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not be otherwise disclosed without World Bank authorization. FiscalYear TransitionalSupport Strategy TSS UN IIUnitedNations ~ UNDB UnitedNationsDevelopmentBusiness GP GoodPractice UNDP UnitedNationsDevelopment Program HIPC HeavilyIndebtedPoor Countries UNESCO United Nations Educational, Scientific and Cultural Organization HIV HumanImmunodeficiencyVirus HLNC High-LevelNationalCommission IAPSO Inter-AgencyProcurementServicesOffice UNICEF UnitedNationsChildren'sFund IBRD International Bank for Reconstruction & UPE UniversalPrimaryEducation Development ICB InternationalCompetitiveBidding UPN UniversitP PPdagogique Nationale (National Pedagogical University) IDA InternationalDevelopmentAssociation USAID United StatesAgency for InternationalDevelopment IFMIS Integrated Financial Management WGI World-WideGovernance Indicators InformationSystem IGF Inspection GPnkrale des Finances (GeneralInsoectionof Finances) Vice President: Obiageli K.Ezekwesili Country Director: Pedro Alba Sector Manager: Laura Frigenti Task Team Leader: Susan Opper DEMOCRATICREPUBLIC OF CONGO EDUCATIONSECTORPROJECT Table of Contents A. STRATEGIC CONTEXT AND RATIONALE.................................................................. 1 1 6 Higher level objectives to which the project contributes ................................................ Rationale for Bank involvement...................................................................................... Country and sector issues ................................................................................................ 2. 1. 3. 7 B. PROJECTDESCRIPTION ................................................................................................. 8 2. Project development objective and key indicators .......................................................... 1. Lendinginstrument.......................................................................................................... 8 8 3. Project components.......................................................................................................... 9 4 Lessons learned and reflected inthe project design...................................................... 12 5 .. Alternatives considered and reasonsfor rejection......................................................... 15 C. IMPLEMENTATION ....................................................................................................... 16 2. Institutionalandimplementation arrangements ............................................................ 1. Partnership arrangements .............................................................................................. 16 17 4. 3. Monitoring and evaluationo f outcomes/results ............................................................ Sustainability ................................................................................................................. 18 19 5 . Critical risks and possible controversial aspects ........................................................... 21 6. Grant conditions and covenants..................................................................................... 22 D. APPRAISAL SUMMARY................................................................................................ 24 24 Technical ....................................................................................................................... Economic and financial analyses................................................................................... 2. 1. 26 Fiduciary........................................................................................................................ 26 4. 3. Social ............................................................................................................................. 27 29 Environment.................................................................................................................. Governance.................................................................................................................... 6. 5. 29 7. Safeguardpolicies.......................................................................................................... 30 . . 8. Policy Exceptions and Readiness .................................................................................. 30 Annex 1: Country and Sector Background............................................................................ 31 Annex 2: Major Related Projects Financed bythe World Bank and other Agencies ...........47 56 Annex 4: DetailedProject Description................................................................................. Annex 3: ResultsFramework and Monitoring...................................................................... 62 Annex 5: Project Costs .......................................................................................................... Annex 6: ImplementationArrangements .............................................................................. 72 73 Annex 7: Financial Management andDisbursementArrangements..................................... 79 Annex 8: Procurement Arrangements ................................................................................... 99 Annex 10: Safeguard Policy Issues ..................................................................................... 116 Annex 9: Economic andFinancial Analysis........................................................................ 105 Annex 11:Project Preparationand Supervision.................................................................. 120 122 Annex 14: Country at a Glance ........................................................................................... 129 Annex 13: Statement ofLoans and Credits......................................................................... Annex 12: Selected Documentsinthe Project File............................................................. 128 Annex 15: Monitoringand Evaluation Arrangements ........................................................ 132 Annex 16: Critical Risksand GovernanceResponse.......................................................... 134 Annex 17: Education SectorPolicy Letter .......................................................................... 139 Map N o IBRD33391 CONGO, DEMOCRATIC REPUBLIC OF ZR EDUCATION SECTOR PROJECT PROJECTAPPRAISAL DOCUMENT AFRICA AFTH3 Date: May 4,2007 Team Leader: Susan Opper Country Director: Pedro Alba Sectors: Primary education (89%); General Sector Manager: Laura Frigenti educationsector (8%); Tertiary education (3%) Themes: Education for all (P) Project ID: PO86294 Environmental screening category: B - Partial I Assessment LendinnInstrument: Specific InvestmentLoan [ ] Loan [ ] Credit [XI Grant [ 3 Guarantee [ 3 Other: For Loans/Credits/Others: Total Bank financing (US$m.): 150.00 IDA Grant 49.00 101.00 150.00 Total: 49.50 101.00 150.50 Borrower: Democratic Republic of Congo ResponsibleAgency: Ministry ofPrimary, Secondary and ProfessionalEducation S.E.M.Maker MwanguFamba, Minister Croisement des Avenues Batetela et Cliniques Congo, Democratic Republicof Tel: 243 081 99 08 976 Estimateddisbursements (Bank FYIUS$m) TY 8 9 10 11 12 4nnual 10.9 49.3 42.4 28.2 19.2 hmulative 10.9 60.2 102.6 130.8 150.0 Project implementation period: Start September 30,2007 End: June 30,2012 Expectedeffectivenessdate: September 30, 2007 I IExpected closing date: December 31,2012 Does the project depart from the CAS in content or other significant respects? Re$ PAD A.3 [ ]Yes [XINO Does the project require any exceptions from Bank policies? R& PADD.7 Have these beenapproved by Bank management? I s approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risksrated"substantial" or "high"? Re$ PAD C.5 [XIYes [ ] N o Does the project meet the Regional criteria for readiness for implementation? Re$ PAD D.7 [XIYes [ ] N o Project development objective Ref: PAD B.2, TechnicalAnnex 3 To prevent further deterioration in the delivery o f essential services for primary education and prepare ground for a sustainable development and financing of the sector that will facilitate donor coordinationand future transition to a sector wide program. Project description Re$ PAD B.3, TechnicalAnnex 4 *Increase access and equity at primary level by providing resources to reduce the cost o f education to households (reduce primary school fees) and rehabilitating 1570 classrooms which will boost the demandfor and supply ofeducation. *Improve quality o f primary education by providing textbooks inmathematics and reading for every pupil in grades 1-2 o f primary school, and by creating research capacity to assess and monitor quality o f education which i s instrumental to future quality improvement. *Strengthencapacity for policy planning, budgetingand program execution inpivotal areas for the sector includingteacher career structure andteacher training, andthe development o fa sector wide mediumterm strategy for education. Which safeguard policies are triggered, ifany? Re$ PAD 0.6, TechnicalAnnex 10 Environmental Assessment (OP/BP/GP 4.01) Involuntary Resettlement (OP/BP 4.12) Significant, non-standard conditions, if any, for: Re$ PAD D.7 Covenants applicable to project implementation: Effectiveness Covenants: The Government will: (i) Enact an inter-ministerial Arr&te`(bylaw) in form and substance satisfactory to IDA, setting up an exclusive nomenclature and levels o f fees to be levied in connection with primaryeducation; (ii) Establish (a) the Project Management and Coordination Unit (PMCU) in form and with functions satisfactory to IDA and with the following staff having qualifications and experience satisfactory to IDA: a National Coordinator, a CFO, an Accountant, a Treasurer, a Civil Engineer, and a Monitoring and Evaluation specialist; and (b) adopt the Project Operations Manualinform andsubstance satisfactory to IDA; fiii) Establish an operational fiduciary management system satisfactory to IDA including: (a) the adoption o f the Manual o f Financial and Accounting Procedures in form and .. 11 substance satisfactory to IDA; (b) the recruitment o f an international auditing firm satisfactory to IDA, under terms and conditions satisfactory to IDA, to carry out internal audit activities under the Project; and (c) install a software for financial management, accounting and procurement withinthe PMCU; (iv) Recruit the Procurement Agent on terms and conditions satisfactory to IDA; (v) Recruit the independent(a) external financial auditing firm and (b) technical auditor. Progress in fulfilling the effectiveness conditions was as follows at the time negotiations were completed inApril 2007: The inter-ministerial Arr&te' (bylaw) setting up the nomenclature and levels o f fees received IDA'Scomments during negotiations. The MEPSP i s scheduling sign-off in the Council ofMinisters byJune. The MEPSP has allocated office space for the PMCU. The inter-ministerial technical team established by Arr&te'(bylaw) no 0508/2005 (January 26, 2005) to prepare the Project will continue up to Grant effectiveness. The team i s preparing the advertisements for all six PMCU positions noted above. The PPF provides for the National Coordinator and CFO to sign contracts by July 2007; they will be financed initially from the PPF until the Grant becomes effective. The MEPSP i s overseeing preparations o f the Project Operations Manual, the outline o f which was discussed with IDA at negotiations. The PPF provides financing for a consultant, to sign a contract by July 2007, to helpproduce the final draft Manual. A consultant to be financed from the PPF is scheduled to signa contract by July 2007 to draft the Manual o f Financial and Accounting Procedures. An additional consultant, also financed from the PPF, i s scheduled to sign a contract by August 2007 to install software for financial management, accounting and procurement for the PMCU. The inter-ministerial technical team i s preparingthe TOR for recruitment o f an international auditing firm for the Project's internal audit activities. IDA has approved the TOR for the Procurement Agent. Recruitment will be underway before June 2007. The inter-ministerial technical team is preparing the TOR for recruitment o f the independentexternal financial auditing firm and technicalauditor. Dated covenants: (i) By July 31, 2008, the Recipient will have established an appropriate structure comprising representatives o f relevant institutions and education sub-sectors including primary, secondary and higher education and adult literacy to oversee the formulation and implementation o f the comprehensive education strategy including an appropriate legal framework and financing plans for all relevant sub-sectors including primary, secondary and higher education and literacy programs; (ii) By December 31, 2008, the Recipient will have: (a) formulated the comprehensive education strategy described above; (b) carried out studies designedto promote equity and to improve school achievement rates including inter alia: i)a feasibility study to establish a sustainable and efficiently performing students' transportation scheme; ii)a ... 111 nutrition study to supplement students' nutrition status within the school environment; and iii)a health study aimed at sustaining good health for students within the school environment. Conditions for disbursement: No withdrawal shall be made for payments o fprimary school teachers' salaries and payments for primary school operating cost subsidies until the Recipient has furnished to the Association evidence satisfactory to it that each o f the actions described below has beentaken in a manner satisfactory to the Association: (i)Nowithdrawalshallbemade:(a) forpaymentoftheinitialinstallmentoftheteachers' salaries (Category 6 o f the Grant) unless the Beneficiary has provided evidence that: i)an Arr&te'ministe'riel (ministerial bylaw) has beenenacted freezing any transfer o f personnel in primary school; and an Arr&te' inter-ministe'riel (inter-ministerial bylaw) has been enacted freezing the opening or accreditation o f new public primary schools until a comprehensive census o f primary schools, students, classrooms and teachers has been completed; ii)all teachers currently enrolled into the public payroll schedule furnished by SECOPE are integrated into the Paie Transitoire SimpliJie'e(PTS, Simplij?ed Temporary Payment System) ;iii)a comprehensive list comprising the names o f all teachers to be progressively integrated into the public payroll system and to be paid with the proceeds o f the financing allocated to Category (6) has been delivered to IDA; and iv) SECOPE has been granted exclusive authority to handle all payments o f teachers' salaries; (b) for payment o f each subsequent installment o f teachers' salaries under Category (6) unless the Beneficiary has submittedto IDA an audit report related to the use o fthe proceeds o f the preceding installment for teachers' salaries satisfactory to IDA; (ii) withdrawalshallbemadeafter December31, 2008: (a) forpaymentoftheinitial No installment o f the Subsidies for School Operating Costs (Category 7 o f the Grant) unless the Beneficiary has provided evidence that: i)a comprehensive list identifying all public primary schools eligible to receive subsidies for school operating costs through the proceeds o f the financing allocated to Category (7) has beendelivered to IDA; and ii)the Beneficiary has adopted a comprehensive school map covering its territory; and (b) for payment o f each subsequent installment o f subsidies for school operating costs under Category (7) unless the Beneficiary has submittedto IDA an audit report related to the use o fthe proceeds o f the preceding installment for subsidies for school operating costs. iv A. STRATEGICCONTEXTAND RATIONALE 1. Countryandsector issues 1.1Countryissues 1. The Democratic Republic of Congo (DRC) has made extraordinary progress inthe last few years. The success o f its democratic elections in 2006 can be a turning point to reverse decades o f deterioration, provided that action i s taken to consolidate the post-election situation. A significant part o f the challenge lies in the education sector, where the Government's commitment to free and compulsory primary education goes hand-in-hand with the need to deliver a "peace dividend" in terms o f visible results on the ground. If the new Government cannot present such a dividend, there i s a risk o f regression to violence, triggered by unmet expectations. The regional ramifications could be serious because o f the influence o f the DRC - Africa's third largest country - on the stability o fthe entire African continent. 2. Severely deteriorated living conditions render the social situation explosive inmany parts o f the country. It is highly polarized in political preferences while being one o f the poorest countries inthe world despite rich endowmentsinnatural resources. The annual Gross Domestic Product (GDP) per capita o f about US$120 i s six times below the average for Sub-Saharan Africa (SSA). The DRC ranks 167 out of 177 countries surveyed by the UnitedNations Human Development Index. 3. The country has beentaken close to bankruptcy by decades o f mismanagement and years o f conflict. It gained independence from Belgium in 1960, and in multi-party elections Patrice Lumumba was elected prime minister. He was murdereda year later. In 1965 Mobutu Sese Seko took power through a coup d'Ctat, introducing a one-party system that lasted until 1997. The Mobutu regimebroughtthe country to near-collapse. Fromthe mid-1990s to 2001, the DRC was the main battlefield for Africa's first continent-scale war that caused around four million casualties and massive displacement o f the population. The conflict exacerbated ethnic tensions and secessionistmovements,posing a long-term challenge to the transition to peace. 4. Despite this legacy, the DRC made remarkable progress since 2001 moving from conflict to reconstruction. A peace accord was signed in South Africa in 2002. By late 2003, a fragile peace prevailed as a Transitional Government was formed. Inthe democratic elections o f 2006, the population elected the President and the National and Provincial Assemblies. Governors were indirectly elected through the Senate. By early 2007, the newGovernment was formed. 5. On the economic front, the efforts made since 2001 are paying off. Real GDP growth has averaged five percent a year since 2003. Increased export and inflows of foreign direct investment (FDI), together with renewed donor involvement, structural reforms in the public sector and a more stringent monetary policy have been vital. Even if the macroeconomic situation has improved, it is still fragile. Inflation reached about eighteen percent year-on-year by March 2007. Major structural reforms need to be implementedin order for the country to reapthe fruits o f its rich base o f natural resources and to increase well-beingfor its citizens. 6. Growth and stability are a prime concern, and indeed a prerequisite, for sustainable improvementsinthe education sector. It is badly financed, however, at currently less thantwo percent o f GDP. Other SSA countries provide an education budgetthat on average i s about five percent o f GDP. 1 7. Corruption and poor governance impede the DRC's progress. The latest Corruption Perception Index released by Transparency International ranked the DRC among the ten most corrupt countries in the world (156 out o f 163 countries). There is, however, a trend o f improvements registered inthe Worldwide Governance Indicators (WGI, 2006), suggestingthat reforms which the Transitional Government took to strengthen unsatisfactory economic and financial control environments are having some effect. While the WGI still ranks the DRC as very weak, it also registers strong improvements in the ability o f the government to formulate and implementregulatory policies for private sector development, andinpolitical stability, voice and accountability. 8. The new Government i s well aware o f the importance o f combating poor governance and corruption and has put this at the top o f its agenda (see Annex 16: Critical Risks and Governance Response). The Poverty Reduction Strategy Paper (PRSP), finalized by the Transitional Government in 2006, i s a key instrument for programming domestic and external investments over the mediumterm. It, too, addresses poor governance as the root cause o f the crisis which ledto state failure and civil war. 1.2 Education Sector Issues 9. The configuration o f the education system presents daunting challenges as a result o f the decades o f generalized disruption. The most formidable constraint i s the lack o f a sustainable financing mechanism for the delivery o f education services. Less than ten percent o f the national budget (2006) is allocated to education. This chronic under-funding is the main factor that perpetuates low enrollment rates and the extremedegradation inthe quality o f services delivered. 10. Equity o f access i s a problem - especially at the base o f the system. Even compared with other African countries, the DRC has low coverage at the primary stage, whereas it has similar levels o f coverage at the secondary and tertiary stages. Gross enrollment ratios in the DRC are estimated at 64 percent for primary, 23 percent for secondary and 6 percent for tertiary'. 11. The Constitution (2005) stipulates that primary education is compulsory and fee-free, but affordability limits access and seriously challenges the Government's pro-poor objectives. As households are made to take on the major part o f financing for schools and teachers' salaries in order to compensate for the lack o f public resources, this shuts out children from poor households. Especially vulnerable are the children inrural areas, and girls. This reality prevents the education system from expanding towards bothMillenniumDevelopment Goals (MDGs) for education: (1) universal completion o f primary school, and (2) closing the gender gap in education. Untilthe affordability issue i s addressed, most other neededreforms inthe education sector cannot be effectively tackled. 12. Quality i s abysmal and i s manifest in low retention rates. Only about a third o f children in urban centers and a fifth o f those inrural areas who enter school reach the fifth grade. No recent research has analyzed the determining factors on quality o f education inthe DRC, but it i s clear that the elements known internationally to have an impact on quality are largely impaired or missing in the Congo. These include direct inputs (textbooks - which are the most important resource for teachers and students inpoor settings; infrastructure; and trained teachers), the time available for teaching, the nature o f the teaching-learning process, and school climate. Less is Lack o f recent census data and sampling difficulties due to geographic inaccessibility mean that gross enrollment ratios are subject to a wide margin of error despite the improved sector analysis o f recent years. 2 known about factors outside the pedagogical, institutional and management structure, such as parental support for children's learning, other than that parents pay fees. 13. The deplorable degradation o f physical facilities also impacts on access. Schools which have decayed from decades o f neglect or have been destroyed during recent conflict have not beenrepaired. This rendershundreds o f classrooms unusable. The destruction is widespread, so the backlog incapital development and maintenance is immense. An estimated one-third of the country's schools are in such poor condition that they offer no shelter from inclement weather. Very few schools have functioning latrines. Government estimates that at least US$l50 million would be needed over 2007-2010 to rehabilitate 3,000 primary schools and 1,100 secondary schools (750 primary and 275 secondary schools a year) to reach the MDGs in20-25 years. Few schools have learning materials. The majority o f Congolese students never see the written word until they take the national examination at the end o f primary school. Most o f the country's 238,000 primary school teachers are relatively old and have not had their skills updated for decades. Pre-service training o f new entrants, which i s mostly offered through the pedagogical stream o f secondary education (humunite'spe'dagogiques),does not confer adequate pedagogical or professional skills. 14. The system i s not responding adequately to the special schooling needs o f children and young adults made vulnerable by the years of conflict: child soldiers, street children, refugees and orphans. The Ministry o f Social Affairs and National Solidarity (MinistBre des Affaires Sociales et de la Solidarite'Nationale, MASSN) has a new constitutional mandate for literacy, but lacks sufficient knowledge of which programs may actually be operating. There is no national policy on resourcing non-formal education, nor guidelines on its role v i s - h i s formal education incombating illiteracy on a massive scale. 15. The environment in which education services are delivered must be defined and improved. The prolonged period o f economic decline and the isolation o f large areas o f the country during times o f conflict fostered pragmatic adaptation to evolving needs. Haphazard growth and mismanagement widened the discrepancy between the formal and legal framework on the one hand, and actual practice on the other. The resultingduality and lack o f clarity infunctions and responsibilities in the system's administration, aggravated by incomplete decentralization, created massive internal and external inefficiencies which constrain the education sector's development today. Accountability relationships between the schools and parents, on the one hand, and between schools and policy-makers on the other, have successively deteriorated and needurgentlyto be rebuilt. 16. Despite all odds, a solid foundation still exists to undertake sound planning, but it needs to be strengthened. This calls for updating the legal framework for the education sector, revamping professional norms and standards, empowering local communities, and improving teacher quality at an affordable price. It means redefining an appropriate role and financing strategy for Government in service delivery, in partnership with the religious organizations, which run roughly seventy percent o f all public primary and secondary schools. In addition, local communities need to be empowered to exert their role as oversight bodies and participate effectively inschool-level decisions. 1.3 Governmentresponse 17. The first statements o f the new democratically elected Government, which outline the key principles o f a recovery strategy, accord high priority to improving the delivery o f education 3 services. Education i s one o f five pillars in the recovery strategy; especially prominent i s the goal to provide free basic education for all. Taken as a whole, the Government's principles for recovery outlined inthe Governance Compact as a binding agreement betweenGovernment and Parliament also address critical supporting factors for improving education services: improving governance and fighting corruption; restoring security throughout the country; rebuilding infrastructure, including inthe transport, water and energy sectors; and improving the delivery o f health services. An organic budget law for decentralization i s being drafted and will have an impact onthe above results. 18. The new government's emphasis on education amplifies the already significant achievement o f the Transitional Government which endorsed a Letter o f Education Sector Policy (2006; see Annex 17) to guide the sector's reconstruction. The commitment to rebuild the sector also carries through inrecent strategic documents including the Education for All (EFA) Action Plan and a proposal for reforming higher education (Pacte de Modernisation de I'Enseignement Supe`rieur et Universitaire, PADEM - Pactto Modernize Higher Education). 19. At the operational level, there i s the nucleus o f a Government-led initiative to integrate efforts to improve education into a coherent, Sector-Wide Assistance Program (SWAP). This dynamic i s ledby ajoint working group created by three ministrieso f education: the Ministry o f Primary, Secondary and Professional Education (MEPSP); the Ministryo f Higher Education and Universities (MESU); and the Ministryo f Social Affairs andNational Solidarity (MASSN). The group i s a focal point for engaging with external partners,promoting synergies across the various investments in the sector. The PRSP process further encouraged regular liaison between the education sector and the ministries o f Budget, Finance, and Civil Service to improve the budget preparation process (allocation o f public spending to reflect the priorities o f the education sector), as well as to strengthen accountability chains for allocated funds to reach intended beneficiaries. Research indicates that, if properly directed, additional investments in the sector could enable the DRC to reach a 75 percent gross enrollment rate inprimary school by 2012 - a realistic target for broadening access. 20. The national authorities have stepped up their dialogue with education sector stakeholders: the religious organizations, parent associations, teachers and civil service unions. Whereas the dialogue has at times been volatile - negotiations alternated with massive teacher strikes - the Government managed to end strikes inlate 2005 by using domestic budget resources to respond, to the extent possible, to the teachers' demands for higher salaries. This action brought an average 100 percent increase in primary and secondary teacher salaries nationwide, generating an immediate positive impact on the reduction o f the elevated co-financing from households - particularly regarding the feefrais de motivation (FDM, Fees for teachers' motivation) that has become directed toward teachers' salaries. Still, the direct contribution from parents via these FDM (which finances both the top-up "salary incentives" for teachers who draw a salary from the public sector, andthe entire salary ofteachers who are not onthe public payroll) is equivalent involume to about halfofthe public financing o fteachers. The FDMare fees set by each school and constitute roughly half the total amount of the various fees that parents must pay to send their childrento public primary schools. 21. The increase in salaries decided at the start o f school year 2005-2006 was accompanied by two other policy interventions. The first intervention was the announcement that the Government would start using HIPC funds (funds released due to the International debt relief initiative for Heavily Indebted Poor Countries) to introduce a block grant program aiming at 4 reducing running costs apart from teacher salaries at publicly administered schools. Such runningcosts are partly charged as school fees known asfrais defonctionnement (FDF, Fees for school's running costs). The program originally covered about 22,900 primary and secondary schools and disbursedapproximately US$530 a year in identical annual tranches to each school. The combination o f targeting less than half o f the country's schools and neglectingthe differing needs in schools - in terms o f size o f enrollment, age and degree o f deterioration o f the buildings and facilities - led to increasing inequities and inefficiencies. As a follow-up, the Government has set new criteria for allocation o f block grants according to the size o fthe school, and sanctions are in process to address specific cases o f improper handling o f the funds, in accordance with the inter-ministerial circular that governs the distribution o fthese grants. 22. The second policy intervention was the announcement that all but four fees were no longer to be charged for primary school (Arr&te'No MINEPSP/CABMIN/6635/2005, September 3, 2005). The four fees to be allowed were: the Minewal, school insurance, and two forms o f examination fees. This announcement was probably the most significant o f all the measures because it established the illegitimacy o f the two main fees charged at the primary school level: the FDM and FDF. Together, these two make up more than three quarters o f all fees paid by households to sendtheir children to public schools. After the announcement was made, calculations showed that the financial loss would be more than US$lOO million a year, if no other sources o f revenue were forthcoming to fill the gap. Therefore, although the Government did raise salaries significantly and initiated a block grant program to offset the collection o f FDF, this compensation package was not enough. A package at least twice the size would have been necessary. To that amount should be added the costs o f providing schooling for the estimated five million school-age childrenwho currently do not attend primary school at all. 23. The recent decisions mark significant progress toward the goal o f decreasing school fees and increasing teacher salaries, but these measures have not been adequate to eliminate the main hurdles to access. TOO,the September 2005 package was undertakenon an emergency basis. There was no guarantee o fprogressive increases to the far higher salary levels that teachers were demanding. 24. To have a sustainable impact, the Government needs to increase its effort to improve and broaden access to education through a combination of: i)an increase in domestic and external resource mobilization, including persuading donors to scale up aid efforts; ii)an increase intotal spendingon education (currently at about 2 percent o f GDP); iii)an increase inthe share o f the education budget allocated to primary; and iv) an improvement inthe quality o f service delivery carefully calibrated with implementation o f the ongoing decentralization process and civil service reform, as the latter impact on teachers and education administrators. 25. The authorities are fully aware that the comprehensive reform o f the public administration i s the context inwhich a new statute on teachers will needto be formulated. Government drafted (2003) a framework for civil service reform with technical support from a multi-donor program. This aims to define the key missions o f priority ministries and public service agencies at central andprovincial levels, and upgrade the skill levels and productivity o ftheir staff. The first set o f actions (for the triennium 2004-2006) have included: (i) audit o f service delivery mechanisms, especially at the local level, covering health, education and justice; (ii) an operational audit of ministries to prepare their reorganization; and (iii) obligatory retirement program for staff an who has passedthe legal retirementage by the end o f 2004. 5 26. Inthe meantime, donors contributed roughly US$60 million for education up to 2006, most o f which targets primary education. With support from the United Nations Children's Fund (UNICEF), the UnitedNations Educational, Scientific and Cultural Organization (UNESCO) and the Belgian Cooperation, the MEPSP has developed a new curriculum for primary level and distributed this to schools. For academic year 2004-2005, with support from the Belgian Cooperation, reading and mathematics textbooks for grades 5 and 6 were deliveredto all primary schools inthe country, and for academic year 2007-2008, the Belgian Cooperationhas decided to provide textbooks for grades 3 and 4. The Government has also been using an estimated total US$20 million from various InternationalDevelopment Association (IDA)-financed multi-sector programs (Emergency Multi-Sector Rehabilitation and Reconstruction Project - EMRRP, Emergency Early Recovery Project, Post-Conflict Economic Recovery Credit and Emergency Trust Fund) to rehabilitate classrooms mainly in primary and secondary schools, and procure learningmaterials, furniture, and laboratory equipmentfor all levels o f education (see Annex 2). With UNICEF support, the MEPSP is targeting some 3,000 schools for intensive support to school management at local level, while also mounting a new campaign nationally to encourage enrollment, particularly for girls. Importantly, there i s consensus among the multilateral and bilateral partners on the urgency o f concerted action to reduce primary school fees. Selected partners have begunto orient their support directly to this imperative. The UnitedStates Agency for International Development (USAID) and Oxfam International are piloting some small-scale initiatives whereas the World Bank through the Emergency Urban and Social Rehabilitation Project (EUSRP) approved inMarch 2007 i s supporting the government to finance block grants to primary and secondary schools on a national level to continue offsetting the fees otherwise requiredfor runningcosts (FDF). 27. The proposed Education Sector Project plays a significant role in the consensus already reached on working together, through an education sector SWAP, especially to support progressive elimination o f primary school fees. Discussions are underway on the modalities for the external partners to contribute to a multi-donor trust fund that would scale up the financing available for the government to put into the education sector budget in order to offset the charging o f school fees. The modalities are expected to be agreed after the grant for the proposed Education Sector Project becomes effective. 2. Rationale for Bank involvement 28. The challenges faced by the education sector inthe DRC are enormous. The sector involves more than twelve million students within a highly pyramidal distribution where the probability that a child who starts primary school would ever reach a tertiary institution i s only two percent. The internal inefficiency o f the system is low as evidenced by the low survival rates between levels or grades, and there are abysmally low primary school access rates, fostered by a disproportionate and compulsory co-financing from households that make the system unviable and unsustainable inthe long run. 29. The sector needs are immense in many regards: data collection; mapping o f real school needs; reorganization and simplification of the cumbersome administrative structures, including payment o fteachers; financial assistancefor dealing with direct and indirect costs o f education at all levels; empowering local communities to participate in school-level decisions; and an urgent infrastructure boost, among others. Prioritizing policies of assistance to the sector i s therefore a critical exercise that needs to be undertaken to obtain the largest social returns for the proposed 6 Project. IDA funds are, inthis sense, the most important tool the DRC Governmenthas inorder to address the immediateneeds on a large scale. 30. No other major donor i s involved in sector-specific service delivery issues in tandem with macro issues (e.g. public expendituremanagement) which impact on long-term education sector development. Current donor coverage for education, despite the evolving support for a SWAP, i s uneven. The financial flows o f other donor investments are not managed by government systems. Inthis respect as well, the Bank leads inadapting its instrumentsinorder to strengthen anduse country systems, with appropriate safeguards. 31. The Bank's role i s critical at this juncture in the DRC's history insofar as the Bank's presence lends credibility to the process and strengthens the hands of the reformers within government and civil society. The Bank also acts as a catalyst to galvanize support from other development partners, as witnessed through the process in 2006 that resulted in an agreed framework of joint action to support the new government's priorities in the education sector. Without sufficient external financial support, however, it i s likely that many reform programs would be false starts. 32. The Bank has also accumulated broad-scale, on-the-ground experience in all provinces o f the DRC. The Bank team has provided the main analytical underpinnings for sector development since 2001,through the analysis o f education finance including in-depthstudies o f the teacher salary payment system, enrollment trends, education for under-served groups, institutional and policy assessment. In addition to the in-depth and comprehensive Country Status Report on the education system (World Bank, 2005b), the Bank has carried out a Country Financial Accountability Assessment (CFAA, 2005), a Country Procurement Assessment Review(CPAR, 2004), a Public ExpenditureReview (PER, a second one has begunin2007), a survey o f users o f public services (BERCI, 2004, see Annex 12), a Risk & Vulnerability Assessment to help prepare the IDA-financed Emergency Social Action Project, as well as a more comprehensive Poverty Report (Poverty Diagnostic and Priorities o f the Poor, 2005). The proposed Education Sector Project draws on these experiences and findings. The Project intends to provide the financing needed to accelerate development in key areas and generate further analytical work to guide future IDA investments. As this i s the Bank's first stand-alone education sector project after re-engagement, it is expected that projects in other areas such as secondary, technical or higher education will follow. 3. Higher level objectives to which the project contributes 33. The Education Sector Project contributes to the higher level objectives set out by the Transitional Support Strategy (TSS) inFebruary2004 to mitigate the acute risks perpetuatingthe erosion o f social capital inthe DRC. The TSS recommends revitalizing education to consolidate the process of recovery and stabilization on grounds that through investments in the social sectors, the population will quickly see concrete results on the ground. The Project will also provide the building blocks to devise a medium term education sector development program. The proposed approach for the Project is anchored in a joint donor diagnosis articulated in the new Country Assistance Framework (CAF) of support to the newly elected Government, the context in which the Project will operate. The CAF i s framed in the perspectives of the PRSP and the Bank's Africa Action Plan (AAP), in which good governance i s the central element driving capacity building for an effective State. Both PRSP and AAP endorse progress toward MDGsas animportant indicator ofprogress indevelopment. 7 B. PROJECT DESCRIPTION 1. Lendinginstrument 34. The lending instrument i s an IDA sector investment grant in the amount o f US$l50 million. 2. Projectdevelopmentobjectiveand key indicators 35. The Project Development Objective (PDO) i s to prevent further deterioration inthe delivery o f essential services for primary education and to prepare the ground for a sustainable development and financing o f the sector that will facilitate donor coordination and future transition to a sector wide program. 36. Success in achieving this objective will be observed in improved quality, and higher enrollment rates at the primary school level, mainly as a result o f a lower financial burden on households for the subsistence o f the system. It cannot be expected that significant policy change will happen quickly. The ground must be prepared through technical work to understand specific issues more thoroughly, and through coalition and consensus building, as first steps for the newGovernment to take on amore ambitious set ofreforms. 37. The focus on primary education i s motivated by its underdeveloped status in the DRC in terms o f the historical trends in enrollment growth, the importance o f primary education to the poor, and the priority that the newly elected Government has accorded to universalizing basic education. By also focusing on the broader institutional and financing framework for the sector, the Project embeds the support to primary education ina conscious effort to sustain these gains inthe longerterm. 38. Inorder to achieve its objectives, the Project will provide support for: (i) reducing primary school fees and providing free access to textbooks to increase equity in the supply o f primary education services; (ii) buildingquality through monitoring learning achievement and improving the status for teachers; (iii)restoring access to primary education o f at least minimal quality, especially in areas affected by the conflict o f the last decade; (iv) providing technical assistance and material support to build the system capacity o f government and prepare policies which update and re-structure the legal governance, financing, and administration o f the education sector; and (v) strengtheningaccountability relationships and empowering local communities to enable them to take part inschool-level decisions and oversee the supply o f education services. 39. The Project will cover the entire country. All public and public-subsidizedprimary schools will be targeted by the support for reducing school fees and distribution o f textbooks (Components 1and 2). The same i s true for classroom rehabilitation, although two-thirds o f the classrooms rehabilitated will be inareas most affected by the war. 40. The outcome indicators o fthe Project will be (see also Annex 3): (i) Growth inthe Gross Enrolment Ratio (GER) from 64% in2007 to 75% in2012. (ii) Increase inprimary education completionrate from 29% in2007 to 35% in2012. (iii) Reform o fteacher career structure (training, deployment, salary, incentives) approved. (iv) Education sector strategy (including mediumterm financing plan) with indicators agreed with donors and approved by the Government. 8 3. Projectcomponents (See Annex 4 for detailed descriptionand Annex 5 for detailed cost breakdown) Component 1:IncreaseAccess and Equityat PrimaryLevel (Estimated costs, includingcontingencies: US$104.52 million) 0 Sub-componentla:Rehabilitate primary school infrastructure (US$28.73 million). 41. The sub-component will provide support to rehabilitate primary school infrastructure and establish a sustainable national strategy for school rehabilitation through (i) and technical studies work on such issues as norms for low-cost construction, community participation, good governance; financial, technical and logistics management; as well as maintenance; (ii) rehabilitation o f about 1570 primary school classrooms (approximately 260 schools) and the school directors' offices and latrines; equipment (desks, storage closets for textbooks); and (iii) capacity building for the Infrastructure Directorate o f the MEPSP and the provincial education authorities and school personnel in such fields as strategic planning, low-cost techniques, financial and procurement management, contracting out works to the private sector, decentralized community-managed school construction, and maintenance through the carrying out o fworks andthe provision o f goods, services and training. 0 Sub-Component lb: Rehabilitate the Universite`Pe`dagogiqueNationale (UPN, National Pedagogical University) (US$3.38 million). 42. This large university, located in Kinshasa, i s the only high level institution in the country that i s exclusively focused on training teachers and tertiary level teacher educators, and pedagogical research. The University i s critical for providing DRC with resources to support its education sector reforms, but i s constrained by lack o f facilities and equipment. The Project will provide support to rehabilitate UPN (classroom blocks, latrines, and offices; as well as equipment and pedagogical materials including desks and laboratory equipment) through the carrying out o fworks and the provision o f goods. 0 Sub-component IC: EquityofAccess to Primary Education(US$70.10 million). Improve 43. This finances expenditures to empower the government to (i) eliminate parents' monetary contributions to sustain operating costs for primary schools; and (ii) integrate 30,000 primary school teachers into the public payroll for public primary schools. These are teachers who are already operational on the ground and who are inthe pipeline, according to agreed criteria, to be financed through the public sector pending availability of funds. Presently these teachers are financed by fees collected through the FDM. Project support will apply to primary teachers and primary schools only, in keeping with the focus on the MDGs. Project funds for this sub- component will be channeled through the country's mechanism for paying teacher salaries. 44. The Project will also support strengthening accountability and empowering local communities to participate in school-level decisions. Citizen's Report Cards (CRCs) conducted on an annual basis during the Project aim to permit students and parents to assess primary education along basic quality dimensions. A Needs Assessment o f training needs for parent committees, parent-teacher associations (PTAs), and teachers' trade unions will establish a program at local levels for strengthening their capacity for planning, budgeting, financial management, and fighting corruption. The objective i s to empower school communities to work better in their function as oversight bodies, and strengthen their abilities to influence school 9 management in more efficient ways. In addition, a communication strategy that covers all phases and components o f the Project will be formulated. The strategy i s to facilitate both the flow o f information and the dialogue on the fee policy, governance, corruption, tendering o f contracts under the Project and other service delivery issues. The Project will assess compliance through technical audits and through focus group discussions with school management and parent committees. Additional support activities are insub-component 1d. 0 Sub-ComponentId: StrengthenSafeguards inTeacher Pay System (US$2.3 1million). 45. The Service de ContrGZe de la Paie des Enseignants (SECOPE, Department for Monitoring the Payment ofTeacher Salaries) at MEPSP is the agent designated to assist the BudgetMinistry for payment o f teachers' salaries and to transfer central Government block grants to schools to subsidize operating costs. The SECOPE database i s a vital planning and management tool for the education sector yet is maintained on out-of-stock hardware (computers) and software (Common-Business Oriented Language or COBOL). This presents imminent risk o f breakdown that would have serious political consequences if teachers could not be paid. This sub- component will provide services to enhance safeguards inthe Government's teacher pay system through: (i) strengtheningSECOPE's capacity at the central and provincial level inthe field o f database planning and management, as well as resources management and monitoring; (ii) providing goods (upgraded computers, software, and internet connections for the SECOPE central and Provincial offices); (iii) carrying out o f information and communications campaigns on the policy to eliminate primary school fees; (iv) training of parent groups in monitoring the fee-free policy for primary schools; (v) transportation costs o f audits comprising mixed teams from the Ministries o f Finance, Budget and Primary, Secondary and Professional Education (EPSP, Enseignement Primaire, Secondaire et Professionnel), and independent third party observers; and (vi) carrying out o f two Public Expenditure Tracking Surveys (PETS) o f payments o f salaries for primary education teachers and fees for operating expenditures in primary education. One PETS will establish baseline conditions. A second PETSwill follow in the Project's fourth year. Component2: ImproveQualityofPrimaryEducation (Estimatedcosts, including contingencies: US$28.76 million) 0 Sub-Component2a: ProvideTextbooks (US$26.01 million). 46. The initial objective o f this component was to provide reading and mathematics textbooks for grades 1, 2, 3 and 4 to complement the grades 5 and 6 textbooks financed by the Belgian Cooperation for academic year 2004-2005. Since the Belgian Cooperation has decided to provide textbooks for grades 3 and 4, the IDA Grant would focus on support for (i) acquisition o f textbooks for grades 1 and 2 inmathematics and reading, ina ratio of 1textbook per student, and 1 textbook and the corresponding teacher's guide per teacher for all public schools and government supported private schools. This will represent a total o f about 11million textbooks and 278,000 teachers' guides; (ii) training inspectors, school advisers and school directors inthe use o f textbooks; (iii) production and distribution to primary schools o f 172,000 manuals inthe care and management o f textbooks; (iv) establishment o f a database in the MEPSP to track textbook stocks in the schools; (v) carrying out study tours in selected countries with good experience in developing databases to track textbook stocks; (vi) training of Curriculum and Learning Materials Division staff o f the MEPSP in evaluation o f textbook content and in definition of textbook pedagogical and technical specifications; and (vii) carrying out of a book 10 sector study aimed at gathering relevant information and knowledge to develop and implement an adequate national textbook policy. 0 Sub-Component2b: BuildCapacity to Assess LearningAchievement (US$2.75 million). 47. This sub-component will improve institutional capacity to assess learning achievement and conduct research on learningand retention in school inorder to inculcate a culture o f monitoring the quality of education inthe DRC. The activities aim to take the next step, to buildout from previously modest, donor-led standardized assessments o f learning achievement, and will also include research into determinants o f quality and its impact on learning achievement and retention inschool. The sub-component aims to establish a partnership between the UPN andthe Inspectorate who will administer the assessments. The Project will support (i)international technical assistance to train relevant staff at UPN inresearch on learning achievement, statistical sampling, diagnostic learning assessment tools and assessment design, including for the preparation o f the survey to be carried out inprimary education; (ii) establishing capacity within UPN to provide baseline information on learning achievements inprimary schools; (iii) carrying out two rounds of assessments inselected primary schools. 0 Component 3: Strengthen Institutional and Financial Capacity o f the Education Sector (Estimated costs, including contingencies: US$5.06 million) 48. The objective o f this component i s to contribute to revising the legal and institutional framework o f the education system, and to reinforce institutional capacities for planning, budget formulation, and program execution. Key aspects include the career structure o f teachers, teacher training, and development o f coherent, technically sound and results-oriented strategies for education sector development which are based on realistic financing plans andbudgets. 0 Sub-Component 3a Support Policy Reform-Teacher Career Structure (US$0.91 million). 49. This sub-component will provide technical advisory services to support policy reform inthe field o f pre-service and in-service teacher training, including inter alia: (i)analysis o f existing resources and reform options for pre-service teacher education; (ii) evaluation o f existing in- service teacher training experiences and options for scaling up; (iii) feasibility studies for reform, including study tours in selected countries; (iv) assistance to a National Commission to be created to review the career structure and reward system for teachers and draft the policy document on the proposed reform; and (v) information and communication activities to help build national consensus on reform proposals. The new training policies will be formulated in tandem and linked with the Government's redefinition o f the career structure o f teachers within the ongoing civil service reform. Expectedresults are: (i)new statute on teachers' careers and a salaries, formulated and adopted within the civil service reform; (ii) a plan to modernize the system o f pre-service teacher training; and (iii) strategy and action plan for in-service teacher a training with the view to providing certification in line with the new statute and guidelines on teacher qualifications. 0 Sub-Component 3b Support Preparation o f a Sector-wide Education Strategy (US$4.15 million). 50. This sub-component will provide support to the formulation and implementation of: (i)a comprehensive education strategy including an appropriate legal framework and financing plans for all relevant sub-sectors including primary, secondary and higher education and literacy programs; and (ii) pilot programs designedto increase literacy and school remediation across the 11 country; as well as (iii) establishment o f an appropriate structure comprising representatives the o f relevant institutions and education sub-sectors, including primary, secondary and higher education and literacy to oversee the formulation and implementation o f the comprehensive education strategy referred to above; (iv) carrying out o f workshops, seminars, publicity campaigns and technical audits aimed at disseminating the new comprehensive education strategy and fostering sustainable dialogue between key stakeholders in the education sector including parents, teachers, school administrators and representatives o f civil society; and (v) carrying out o f studies designed to promote equity and to improve school achievement rates including inter alia: (a) a feasibility study to establish a sustainable and efficiently performing students' transportation scheme; (b) a nutrition studyto supplementstudents' nutrition withinthe school environment; and (c) a health study aimed at sustaining good health for students within the school environment. The technical assistancewill include support for updating the Zoi cadre (organic law) to define the roles and responsibilities o f the State at all levels, the religious organizations, rural and urban communities and parents in financing and managing schools; as well as financial modeling techniques and designing medium term expenditure frameworks (MTEF). Component 4: ProjectCoordinationand Management (Estimated costs, including contingencies: US$l1.17 million) 51. The Project will strengthenproject management and coordination o f the Steering Committee comprised o f the MEPSP, the MESU, the MASSN, the Ministryo f Finance and the Ministry o f Budget with an increment in resources required to operate a Project Management and Coordination Unit (PMCU) described elsewhere inthis document. The Project will also provide financing for the acquisition o f technical advisory services, computer equipment, office materials, supplies and vehicles requiredfor the Project; and the provision o f training (including study tours) to enhance the capacity and expertise o f the ministry staff involved in carrying out the Project. PPF: (US$l.O million) 52. An IDA-approved Project Preparation Facility (PPF) was under implementation to complete activities requiredfor readiness for Project implementation. The PPF was to be managed by the Bureau Central de Coordination (BCECO), but following the Department o f Institutional Integrity (INT) general investigations inthe DRC, the government and IDA agreed instead that an implementationunit that already manages another IDA-financed operation inthe DRC would handle procurement and financial management for the PPF under a Grant Agreement with IDA, and a service contract with the above-mentioned Steering Committee (see Institutional and ImplementationArrangements, below). 4. Lessonslearnedand reflectedinthe projectdesign 53. The design o f the Project incorporates lessons learned from: (i) Bank operations in recent conflict-affected countries including Afghanistan, East Timor, Iraq, Kosovo, Tajikistan; (ii) current Bank operations inDRC, particularly the EMRRP and budget support operations, as well as the findings o f the INT investigation in 2006; (iii) abolition efforts and education sector fee financing strategies to reach the MDGs in education in low-income countries; and (iv) international research on effective approaches for stimulating demand from the poor (e.g. free 12 textbooks and lower school fees) and to improve quality (support for textbooks, teachers and management). Lessonhighlightsare below. 54. Bank operations inconflict-affected countries: (i) Investments during the emergency recovery and stabilization phase of a country following a period o f conflict will be more effective if they are oriented into a cohesive development strategy - even an iterative one. Reconstructionefforts ineducation should be integrated into the broader development framework o f debt relief, poverty reduction, promotion o f economic growth, and other measures to transition to normal operating conditions. This implies balancing investments between essential inputs (as learning materials, teacher training) and technical assistance instrategic planning to strengthenthe education sector ministries' participation in the macro process o f stabilizing recurrent budgets and re-establishing the mechanisms that regulate institutionalprocedures (such as the handlingofteachers' salaries). (ii) To maintain the focus on education as a priority during post-conflict reconstruction and development, the coordination o f external donors i s key. Promoting complementarity among donor initiatives will leverage the country's capacity to implement programs and develop reform policies in education. The Project builds on the efforts o f the Bank's education team, incollaborationwith the Belgian Cooperation and the UnitedKingdom's Department for International Development (DFID), which established regular donor consultations to ease the DRC Government's task in coordination. Principles were agreed to at the Education Round Table of September 2004. A Comite` de Concertation (Cooperation Committee) o f government, donor and civil society representatives in education meets regularly and supports the evolving efforts to develop a SWAP. 56. Bank operations inthe DRC Investing in education only through sub-components in multi-sector projects constrains the ability to bring results as it limits the Bank's engagement in the education sector policy dialogue. This is because the multi-sector projects provide inadequate administrative budget for education sector experts to participate. As a consequence, multi-sector projects which include education tend to focus on simple civil works investments. This does not allow the Bank to achieve the neededbalance o f investments inthe education sectorto support sustainable development. Deteriorated roads outside urban areas, and security risks, make it difficult to execute and supervise the progress o f investment activities. The Project will support the use o f a combination o f local education authorities and consultants and contracted agents who have mechanisms for reaching remote areas. It is essential to the success and sustainability o f the Project to empower the technical, sector ministries. Unlike the EMRRP where BCECO i s the implementing agency, the sector ministries directly involved in education are responsible for the oversight o f the proposed Project. A Project Management and Coordination Unit that i s adequately staffed, and that also builds capacity within the participating ministries during the Project's lifetime, will equip the education authorities at the central and decentralized levels to carry out their roles effectively during the Project; and improve chances that this will continue after the Project closes. 13 (vi) Implementation must be accompanied by effective and timely monitoring and evaluation o f progress and results. There must be flexibility to adjust duringthe course o f execution if this becomes necessary to improve the results of the Project. Sector analytic work during the preparation phase o f the Project has begun to strengthen the DRC's own capacity to obtain reliable and timely data. This aspect must continue to receive sufficient attention and resources duringthe Project. (vii) Previous IDA-financed operations inthe DRC have demonstrated that it i s possible to use the country's own systems, with appropriate safeguards, to transfer earmarked budget support from the central ministerial and Treasury level, to schools using the teacher salary payment system. In particular, grants designed to address the demand-side problem-namely that the user fees are too highfor poor parents to send their children to school -have successfully beenimplementedin2005 and 2006 usingHIPC funds. 56. Fee abolition efforts inprimary education: (i) Equality o f opportunity in severely impoverished environments could only be achieved by ending the practice o f charging fees inpublic schools. However, the elimination o f fees - even for primary education - should be sequenced, particularly in fkagile economies (like the DRC) which are unable to deliver the basic minimum services. The process o f eliminating school fees requires long term commitment from government and donors. (ii) Removing school fees i s not effective unless accompanied by complementary measures. At a minimum, a strong dissemination campaign is needed to inform the public and administrative authorities through the media, written circulaires (circulars), and through face-to-face discussion. Accompanying measures should include investments in quality, and planning to address the follow-on effects at secondary and higher education. In all cases where African countries (as Uganda, Malawi, Tanzania, Kenya) have removed fees as part o f efforts to achieve Universal Primary Education (UPE), the increase in enrollments has led to deterioration inthe quality o f primary education and to increased demand on secondary education. Ifthese follow-on effects are not adequately addressed, there i s a risk that enrollments will decrease over time if quality declines (as the case o f Nigeria) and if there are supply constraints on middle and upper levels o f schooling (as Ghana). Accordingly, the Project includes support for quality inputs (textbooks, teacher training) and for building capacity to assess quality and learning achievement. The Project will be accompanied in parallel by analytical work especially on secondary education. (iii) The negative consequences o f removing primary school fees are less severe (as in Tanzania) where there i s a planned schedule for phasing out the fees, government systematically programs funds (as in use o f HIPC) to close the financing gap left by cessation o f fee revenues and finances quality inputs. Ideally, the government commits to far-reaching restructuring o f the public sector to increase spending on education from domestic resources. The proposed Project provides balanced support by including assistance for formulating the sector wide financing plan in addition to emergency investmentsingoods and civil works. The Project is also coordinated with other donors who are preparing co-financing to help close the funding gap inthe education sector. 14 (iv) `Leveling down' the quality o f education couldbe unpopular with those more able to pay, and could lead to expansion o f the private sector in education. The Project supports sector wide planningand updating the loi cadre (organic law) that will address private - public partnerships indelivering education services. (v) User fees limit access to school and contribute to attrition and absenteeism from school. However, despite increasing enrollment, abolishing fees may not change the fact that the poorest children, especially girls, are least likely to attend school and are the most likely to drop out. There are opportunity costs o f school attendance that may persist even after financial constraints are lessened. The Project will provide opportunities for feedback from parent groups, and monitor results o f diagnostic instruments on the private rates o f return to primary education, to identify constraints on demandfor education. Inaddition, the Project will support the government informationand education campaigns, including efforts promoting girls' education. (vi) Local discretion in publicly managed schools can support quality improvements and the use o fpublic funds for intendedpurposes. Since the elimination o f school fees could also reduce teacher accountability to parents, measures are needed to strengthen school and community level parent committees in monitoring the use o f public funds, to encourage local accountability o f teachers and administrators to communities. The local participation must be supported by transparent and bindinglegal documents - such as the DRC developed in using the HIPC funds to offset fees for school operating costs - and incorporated into the sector's legal framework. 5. Alternatives consideredand reasonsfor rejection 57. Include education as a component in a larger, multi-sector program: rejected. Including education as a sub-component in a larger Project managed by a non-education expert reduces the prospects o f the Bank's participation in education sector policy dialogue with adequate education expertise. This also risks inadequate operations support to the education sub- component duringProject execution. 58. Extensive investment in operations in each sub-sector through a sector-wide assistance program (SWAP) o f investments:rejected. There are three main reasons: (0 The education sector in the DRC is not yet ready for such an ambitious investment because the overall policy framework i s not coherent. Decisions cannot be taken in several key areas (e.g. secondary education) until extensive analysis identifies appropriate options. (ii) Inthepost-election period, there isawindow ofopportunity to influencekeypolicy, governance and financing issues. Responding quickly with a project that provides targeted support to restore minimum operating conditions inprimary schools for visible results on the ground, while simultaneously supporting work on systemic issues to prepare the way to implement more ambitious reform, i s believed to be a more sustainable strategy than deferring action by taking time to prepare a more ambitious SWAP. (iii) The DRC has limited capacity for development planning, for carrying out national programs such as for civil works, and procurement management i s weak by international standards. 15 59. Exclusive focus on primary or basic education: rejected. There i s broad consensus that investment in primary education is priority because o f its pro-poor benefits and because of the need to prepare better quality students who will continue through the education system. However, if investments in primary are not made in concert with the formulation o f an overall sector development plan that has a tenable financing strategy, there i s little assurance that the support for primary education inthe Projectwill be sustained beyond its lifetime. C. IMPLEMENTATION 1. Partnershiparrangements 60. Government has designed investmentso fthe proposed Project to build synergies with and to help scale up, other donor programs in related areas (see Annex 2). The following complementarities are o f key importance: School rehabilitation: The 1570 classrooms rehabilitated under this Project will bring the total number of classrooms rehabilitated by the various ongoing projects to 4000. Primarv school textbooks: The textbooks in mathematics and in reading for grades 1 and 2 provided by the Project will complement the provision o f textbooks inthe same subjects for grades 3 to 6, financed by the BelgianCooperation. Assessing quality and learning achievement: The Project's support to build up a culture o f monitoring quality through standardized assessments o f primary school students builds on smaller scale standardized assessments o f grade 4 pupils supported by UNESCO and UNICEF at various periods since 1999. Capacity building for education sector planning & management, and school management: Support under the Project complements the programs o f UNESCO and the African Development Bank (AfDB) for training educational planners and building up an Education Management Information System; and UNICEF's capacity buildingprogram for school head masters and school management committees. Reform o f teacher training and career structure: The support for policy reform and consensus buildingunder the Project links with the government's larger policies and programs o f civil service reform and decentralization. Support for reduction o f primary school fees: The financing for primary school operating cost subsidies follows on, after the bridge financing for the same purpose provided by the EUSRP. 61. The proposed Project support for reducing school fees will be implemented through the Government's own systems, in particular the teacher salary system. These same mechanisms can accommodate additional support from other donors duringthe life o f the Project and specific co-financing arrangements with the DFID and Belgian Cooperation are plannedto follow Grant effectiveness. 16 2. Institutionaland implementationarrangements 62. Project implementation will be for five years. Effectiveness i s expected inthe first quarter o f fiscal year (FY) 2008. 63. Institutional arrangements are designed to strengthen capacity in the sectoral ministries to manage development projects. The institutional arrangements will place responsibility for Project implementation with the group o f three mandated for education: MEPSP, MESU and MASSNinclose collaborationwith the Ministries ofFinance andBudget. 64. Overall Project Management: At Project start, none o f the three education ministries above has the technical capacity that conforms to World Bank standards. To overcome this, and to build capacity within the ministries for the future, a Project Management and Coordination Unit (PMCU) will be established. The primary responsibility of the PMCU will be to handle execution on a day-to-day basis. Project funds will support the recruitment o f individual consultants and accounting firms on a competitive basis for the senior posts in the PMCU. In addition, a Contracted Procurement Agent (CPA) will be recruited on the basis o f its documented experience in procurement management conforming to IDA standards. This entity will be engaged by the PMCUthrough a service contract to manage the procurement o f all components underthe Project. Implementationwill follow the Project Operations Manual, the annual Project Action Plans, and the Procurement Plan (the plan for the first 18 months was approved at negotiations) that will be updated on a rolling basis according to World Bank procedures. The Procurement Plansets out the procurement methods for each activity listed. The service contract between the PMCU and the procurement agent will list all activities for which the latter i s responsible. 65. To ensure transparency in the decision making process and a mechanism for the coordination o f multiple ministries in Project execution, a Steering Committee (SC) comprised o f high level representatives o f the MEPSP, MESU, MASSN, and Ministries o f Finance and Budgetwill oversee all Project implementation and decision making. The SC was created during Project preparations (Arrite' Inter-Ministe'riel EPSP-ESU-AS N00510/2005, Inter-Ministerial Bylaw EPSP-ESU-AS No0510/2005 - dated 26 January 2005) and currently oversees the PPF as well as the inter-ministerial team of technicians who prepared the Project, as a precursor to the PMCU. The SC i s chaired by the MEPSP since the bulk o f Project resources are inthis domain. 66. The responsibilities of the three principal parties are summarized below. See Annexes 6 and 7 for further explanation: 0 The inter-ministerial Steering Committee (SC) is the decision making body for the Project. It shall meet at least once ineach calendar quarter. The SC responsibilities include: (i)coordination o f the Project activities with Government strategy, policy development, and relations with other development partners; (ii) approving annual work programs and related budgets; and (iii)providing strategic guidance for efficient executiono fthe Project. 0 The Project Management and Coordination Unit (PMCU) will be created before grant effectiveness, as the operational arm o fthe SC to implementactivities. It will be responsible for all aspects o f financial and technical management including: (i) preparing and costing detailed annual implementation plans based on the Action Plans approved by the SC; (ii) managingProject resources (including financial management and managing the contract for the procurement agent for the civil works sub-components, the procurement of textbooks, 17 vehicles, consultants and all other procurement under the Project; (iii) recruiting external auditors; (iv) monitoring implementation progress and impacts, (v) compiling activity, evaluation, financial and audit reports; (vi) coordinating with technical departments o f the MEPSP, MESU, MASSN, and the Ministries o f Finance, Budget, Civil Service, Infrastructure, and Interior; and (vii) ensuring coordination of Project activities with those o f other international and domestic partners. The PMCU personnel, to be recruited on a competitive basis, comprise: a) a National Coordinator; b) an international accounting firm for financial control and internal audit o f the Project; c) a team o f nationals comprising a Chief Financial Officer (CFO), an Accountant, and a Treasurer; d) an Operations Officer specialist in Monitoring and Evaluation; e) a Civil Engineer; f) a specialist in Information Technology; and g) support staff. The external auditing function will be contracted out. 0 The ContractedProcurementAgent (CPA): A contract will be signedbetweenthe PMCU and a procurement agent, whereby the procurement agent will act as a service provider according to specific terms o f reference (TOR). The procurement agent will manage procurement and execution o f all civil works and procurement o f equipment for schools under the Project, large size contracts for goods which include textbooks, computers, and laboratory equipment, vehicles, and the selection o f consultants. 67. In addition to setting up the PMCU, the Project will also finance training to strengthen ministerial capacity especially at MEPSP, MESU, and MASSN to assist project management. Specific training plans will be designed and carried out for ministry staff that will be designated bythe SC. 68. The respective roles o f PMCU, the CPA, and the various ministries and units involved in Project execution, and accountability procedures, will be detailed in the Project Operations Manual that will be finalized by the PMCU by Effectiveness. The Manual will also document all financial management arrangements for the Project (see Annex 7). 3. Monitoringand evaluation of outcomes/results 69. The Monitoring and Evaluation (M&E) o f the Project will support M&E activities at different stages o f Project implementation - on a continuous basis during implementation, at mid-termandproject end-and at differentlevels (see Annex 15). 70. At the aggregate level, monitoring and evaluation will be consolidated by the PMCU, for which an M&E Officer will be recruited. International consultants will be recruited on a short- term basis to conceptualize, design, and set up the Project M&E system andto train national staff on M&E activities. The system will include indicators identified by the Project, which are Project-specific, other sector-specific variables, and data from other donors. Citizens' Report Cards (CRCs) and the communication strategy play important roles for monitoring Project implementation regularly from the school level. CRCs conducted on an annual basis will serve as instrumentsfor strengthening accountability relationships, and monitoring transfers as well as quality aspects in the Project. The communication strategy will facilitate both the flow o f information and the dialogue on the fee policy, governance, corruption, tendering o f contracts under the Project and other service delivery issues. Public Expenditure Tracking Surveys (PETS) will add to instruments for monitoringthe flow o fpublic resources to schools. 71. At the disaggregated level, the Direction des Infrastructures Scolaires (Direction o f School Infrastructures) and the Direction des Manuels Scolaires et Materiels Didactiques (Direction o f 18 Textboooks and Didactic Materials) o f the MEPSP, and the Direction de 1'Alphabe'tisation (Direction o f Literacy) o f the MASSN, will be responsible for collecting and analyzing data for their respective activities. All data collected will feed into the Project M&E system for monitoring progress o f Project implementation as well as the national statistical system. The Project will finance the settingup o f databases for each o fthe units mentionedabove. 72. The PMCU will be responsible for producing the following time-bound reports for evaluation o f Project implementation: monthly reports on project activities; quarterly reports to IDA and the Ministries; yearly reports to IDA and the Ministries; and a midterm review two years after Grant effectiveness. 4. Sustainability 73. The Project design has been kept simple, and investments are balanced across several domains. Over half o f IDA'Ssupport for this Project i s in the various areas of: civil works (school rehabilitation), goods (textbooks, school desks, computers, and vehicles), training, workshops and consultant services. Prospects are strong that Project benefits and results inthese areas will be delivered and sustained. First, these inputs have highprobability for visible results on the ground, thus responding to the Government's interest to deliver a post-election dividend. Second, to promote sustainability o f the one-time investments in rehabilitation (Component 1) and textbooks (Component 2), the Project will provide schools with guidelines for maintaining textbooks and learning materials, and assist schools and the National Pedagogical University to establish their own maintenance plans for classrooms and the school grounds. During the first half o f the Project, the Grant will cover recurrent costs associated with maintenance, in line with the Country FinancingParameters approved for the DRC inFebruary 2005. 74. Since nearly half o f proposed investments o f the Project supports the reduction or elimination o f primary school fees, the Project i s vulnerable to risks o f changes in Government commitment and/or to risks that schools unilaterally determine to continue charging highfees to parents. The critical reforms needed inthe sector - backed by an updated legal and regulatory framework - require commitment from Government actors in addition to the ministries managing the Project. In particular, support i s needed from the Ministries o f Finance, Plan, Budget and Civil Service, as well as from the religious organizations, national Parent Association(s) and unions. IDA i s working with the International Monetary Fund (IMF) and Government to ensure that the implied future budgetary outlays, beyond the life o f this Project, are accounted for in a credible and sustainable Government macro-economic strategy. In addition, the Project has taken the following measures to mitigate political risk: (i)an inter- ministerial Arrite' setting out the school fees i s a condition for Grant effectiveness, and (ii) to facilitate input from key stakeholders inthe Project and the policies it will helpto develop for the sector, the Government has agreed through the Financing Agreement for the Project to establish appropriate structures to coordinate the formulation o f the education sector strategy and the Policy Reform o f Teachers' Career Structure, in which representatives from stakeholders and civil society are members. These measures respond to the chief concerns o f the other external donors and international non-governmental organizations (NGOs) who express interest in providing additional support for the reduction o f school fees if appropriate guarantees are in place. 75. Research linked with the Project's preparation and financed by IDA and other respective donors i s examining the levels o f decentralized public administration and individual schools to 19 document the extent to which fees are being reduced, especially following the Government's announcement at the beginning o f the school year 2005-2006 which prescribed that only four main fees (Minewal, school insurance, and two forms o f examination fees) were allowed to be charged for primary school (Arrgte` No MINEPSP/CABMIN/6635/2005, Bylaw No. MINEPSP/CABMIN/6635/2005,dated September 3,2005). Preliminary results indicate that parents still pay high fees, and in particular, they still pay for fees which are no longer allowed. The Project aims at ensuringthat school fees are lowered at school levels by monitoring the situation on the ground and by interventions that will empower stakeholders (parents, teachers' unions, parent committees, parent-teacher associations or PTAs, students, civil society, etc) and keep them well informed about the fee policy. The Project communication strategy aims to ensure that all parents are informed about their rights, and the Project provides resources for training to strengthen civil society's powers to oversee and influence decisions at school levels. CRC surveys will be used as an instrument for empowering parents as well as to get feedback on implementation and results on the ground. These interventions will seek to strengthen and establish sustainable accountability relations between beneficiaries and service providers. 76. For the longer term, the sustainability o f the Project's contribution to reverse acute deterioration of the education sector depends upon the timeliness and robustness o f the country's economic recovery, and increase inpublic expenditures for education. The focus inthis Project on developing a technically and fiscally sound sector development program and financing plan should make a significant contribution to the sustainability o f the Project's specific direct investments,as well as other investments inthe sector. 77. The Project has also taken important measures for: 0 Institutional and financial sustainabilitv: The Project has integrated good governance and anti-comption measures into the Project design. Following the recommendations of a recent INT inspection, the Project team took measures to redesign the Project's institutional arrangements to avoid agents about which the investigationhad raised questions inrelationto other ongoing projects. The Project's supervision methods emphasize monitoring that includes clear roles and responsibilities for all stakeholders involved; strengthened checks and balances in procurement and payment systems; action plans for anti-corruption and financial management; and technical and financial audits to be conducted systematically throughout the Project's lifetime. It directly supports reinforcing the capacity o f government and administrative infrastructure through: (i) the establishment of the PMCU; (ii) training, professional development, and capacity building for personnel in central and decentralized administration in areas including financial and procurement management; cost effectiveness inschool construction; textbook evaluation andpolicy formulation; assessment of education quality and learning achievement; (iii) appropriate safeguards in line with the CFAA and CPAR; and (iv) adherenceto the Project's FinancialManagement Action Plan (FMAP). 0 Social sustainabilitv: The confidence level between civil society (religious organizations, teachers' unions, parent committees, and PTAs) and education administration i s a key element inthis Project. Itwill assist the authorities to gainthe confidence o f stakeholders by: (i)providingefficient andtransparent service; (ii)enabling stakeholders to participate in decision making and monitor resource use in the education sector including school rehabilitation, learning achievement, flow o f funds fiom central government transfers; (iii) updating the legal framework for the education sector); (iv) promoting information and 20 communication between central education authorities and the population and local administration, and withinthe populationitself. 5. Critical risks and possible controversialaspects 78. The risks are summarized inthe following table (more details are provided inAnnex 16). Risk RiskRating RiskMitigation Measure . before Mitigation The fragile post-election political an( S Government actions to increase tangible results on the iecurity situation may lead to disruption! ground which build on the marked improvement over the n the Government's commitment to thc last few years in the overall political context: the Project 'roject. will address current inequities in the education sector and . provide"quick wins". International community and financial support to facilitate successful implementation of the elections; economic and political monitoring of the democratic institutionsbeingbuilt up; security sector reformon-going. lecentralization reform rapidlj H 1 Agreed conditions, incl. on procurement and financial mplemented without sufficient plannini management, must be met before disbursements of Project )r capacity could lead to administrativt finds. mdmanagerialchaos. . Project M&E system with integrated performance milestones. I Multipleindependenttechnicalandfinancial audits. Training and institutional capacity building under the Project. ,ack o f government ability to cove] H 1 Reasonable macroeconomic assumptions calibrated with nultiplicity of school fees currently paic [MF and based on in-depth analysis (Economic Sector )y parents (the project is financiall) Work). #ustainableunder certain assumptions 01 :conomic growth and budget reallocatior I Use gradual approach to shift burdenof school fees from o increase the share o f education in tota parents to government through increased public ublic expenditures). zxpenditure. I Assist government in developing strategy for engaging 3dditionaldonorswhere there are financinggaps. nefficient use o f Project resources due tc S I Education is target sector in CFAA, CPAR, PER and :orruption, mismanagement or non. results of thorough analyses of the Public Financial ransparencyin governmentsystems. Management (PFM) system are integrated into the Project iiesign, including financial management and anti- :orruption safeguards; a special procurement agent has Jeen selected after recommendationsof INT investigation. I Computerizationof key government units complemented ~yadequate training in accountability and transparency at illlevelsofthesystem. I Clear understanding with government (SC) regarding :xpectations. 21 lchools continue to charge high fees to H . Government policy on school fees documented in larents despite the Project's funding and Constitution and inter-ministerial Arr&te'(bylaw) on fees; o endangerthe Project's maingoal. stronginterestfrom donors and other sources. . Stakeholders' power and oversight function is strengthened; communication strategy ensures stakeholders are informedabout the fee policy and their roles in making it work; Annual CRCsto monitorfees. . Government channels for transfer of funds are strengthened through better budget tracking under improvedexpenditure chain. :oordination among the five ministries M . Competitively recruited directorate to manage Project nay prove difficult and jeopardize day-to-day implementation as operational arm of ficient Projectexecution. governmentministerial SC for the educationsector. Inclusion of Ministrieso f Finance and Budget in SC to enhancealignment ofactionwith realistic financingplans. . Close cooperation during Project execution with the Government-donor Comitd de Concertation (Cooperation Committee)ina sector-wideapproach. Yeak implementationcapacity and delays S . Choice of project implementation unit, recourse to n implementingthe Project contractmanagement (incl. ProcurementAgent) and use of agentdexperts with proven track record of results (e.g. SECOPE). andProcurementPlanprovideclear roadmap. .. Project Operations Manual and detailed cost estimates Bankexperiencewith similar biddingdocuments. .Introduction o f monitoring and tracking reinforced with hands-onimplementationsupport and capacity buildingin areaswhere there areproblems. I Conclusion: Overall, the Project risk i s graded as S (Substantial). 6. Grant conditions and covenants 79. By Grant effectiveness, the Government will: (i) Enact an inter-ministerial Arr&te' (bylaw) in form and substance satisfactory to IDA, setting up an exclusive nomenclature and levels o f fees to be levied in connection with primary education; (ii) Establish (a) the Project Management and Coordination Unit (PMCU) in form and with functions satisfactory to IDA and with the following staff having qualifications and experience satisfactory to IDA: a National Coordinator, a CFO, an Accountant, a Treasurer, a Civil Engineer, and a Monitoring andEvaluation specialist; and (b) adopt the Project Operations Manual inform and substance satisfactory to IDA; (iii) Establish an operational fiduciary management system satisfactory to IDA including: (a) the adoption o f the Manual of Financial and Accounting Procedures in form and substance satisfactory to IDA; (b) the recruitment o f an international auditing firm satisfactory to IDA, under terms and conditions satisfactory to IDA, to carry out internal 22 audit activities under the Project; and (c) install a software for financial management, accounting andprocurementwithinthe PMCU; (iv) Recruit the Procurement Agent onterms and conditions satisfactory to IDA; (v) Recruit the independent (a) external financial auditing firm and (b) technical auditor. 80. Progress in fulfilling the effectiveness conditions was as follows at the time negotiations were completed inApril 2007: The inter-ministerial Arrgte' (bylaw) setting up the nomenclature and levels o f fees received IDA'Scomments during negotiations. The MEPSP i s scheduling sign-off inthe Council o fMinistersby June. The MEPSP has allocated office space for the PMCU. The inter-ministerial technical team established by Arrgte' (bylaw) no 0508/2005 (January 26, 2005) to prepare the Project will continue up to Grant effectiveness. The team i s preparingthe advertisements for all six PMCU positions noted above. The PPF provides for the National Coordinator and CFO to signcontracts by July 2007; they will be financed initially from the PPF until the Grant becomes effective. The MEPSP is overseeing preparations of the Project Operations Manual, the outline o f which was discussed with IDA at negotiations. The PPF provides financing for a consultant, to sign a contract by July 2007, to help produce the final draft Manual. A consultant to be financed from the PPF i s scheduled to sign a contract by July 2007 to draft the Manual o f Financial and Accounting Procedures. An additional consultant, also financed from the PPF, is scheduledto sign a contract by August 2007 to install software for financial management, accounting and procurement for the PMCU. The inter- ministerial technical team i s preparing the TOR for recruitment o f an international auditingfirm for the Project's internal audit activities. IDA has approved the TOR for the Procurement Agent. Recruitment will be underway before June 2007. The inter-ministerial technical team is preparing the TOR for recruitment o f the independentexternal financial auditingfirm and technical auditor. 81. Datedcovenants: (i) By July 31,2008, the Recipient will have established an appropriate structure comprising representatives o f relevant institutions and education sub-sectors including primary, secondary and higher education and adult literacy to oversee the formulation and implementationof the comprehensive education strategy including an appropriate legal framework and financing plans for all relevant sub-sectors including primary, secondary and higher education and literacy programs; (ii) By December 31, 2008, the Recipient will have: (a) formulated the comprehensive education strategy described above; (b) carried out studies designed to promote equity and to improve school achievement rates including inter alia: i)a feasibility study to establish a sustainable and efficiently performing students' transportation scheme; ii)a nutrition studyto supplementstudents' nutritionstatus withinthe school environment; 23 (iii) and health study aimed at sustaining good health for students within the school environment. 82. Conditions for disbursement: No withdrawal shall be made for payments for payments o fprimary school teachers' salaries and payments for primary school operating cost subsidies until the Recipient has furnished to the Association evidence satisfactory to it that each o f the actions described below has beentaken in a manner satisfactory to the Association: (i) Nowithdrawalshallbemade:(a) forpaymentoftheinitialinstallmentoftheteachers' salaries (Category 6 o fthe Grant) unless the Beneficiary has provided evidence that: i)an ArrCte` ministe`riel(ministerial bylaw) has beenenacted freezing any transfer o f personnel in primary school; and an ArrCte` inter-ministe`riel (inter-ministerial bylaw) has been enacted freezing the opening or accreditation o f new public primary schools until a comprehensive census o f primary schools, students, classrooms and teachers has been completed; ii)all teachers currently enrolled into the public payroll schedule furnished by SECOPE are integrated into the Paie Transitoire SimplijZe (PTS, SimpliFed Temporary Payment System) ;iii)a comprehensive list comprising the names o f all teachers to be progressively integrated into the public payroll system and to be paid with the proceeds o f the financing allocated to Category (6) has been delivered to IDA; and iv) SECOPE has been granted exclusive authority to handle all payments o f teachers' salaries; (b) for payment o f each subsequent installment o f teachers' salaries under Category (6) unless the Beneficiaryhas submitted to IDA an audit report related to the use o fthe proceeds o f the preceding installment for teachers' salaries satisfactory to IDA; (ii) Nowithdrawal shallbemadeafterDecember31, 2008: (a) for payment ofthe initial installment o f the Subsidies for School Operating Costs (Category 7 o f the Grant) unless the Beneficiary has provided evidence that: i)a comprehensive list identifying all public primary schools eligible to receive subsidies for school operating costs through the proceeds o f the financing allocated to Category (7) has been delivered to IDA; and ii)the Beneficiary has adopted a comprehensive school map covering its territory; and (b) for payment o f each subsequent installment o f subsidies for school operating costs under Category (7) unless the Beneficiary has submitted to IDA an audit report related to the use o f the proceeds o fthe preceding installment for subsidiesfor school operating costs. D. APPRAISAL SUMMARY 1. Economicand financial analyses 83. As the DRC starts to recover from decades o f conflict, economic crisis, and mismanagement, the Project will: (i) Provideaninjectionofresourcesintotheseverelyunder-resourcededucationsector; (ii) Preventfurtherdeteriorationinthedeliveryofessentialservicesforprimaryeducation; (iii) Reducethe burdenoffinancing education largely borne by households ina country where estimated per capita income is among the lowest inthe world; and (iv) Initiate the establishment o f broader accountability mechanisms between service providers, beneficiaries, andthe political level. 24 84. Severe cuts in Government funding, and the withdrawal of external aid inthe early 1990s, left households to bear most o f the cost o f education services (see Annex 1). Government education spending i s starting to recover but is still very low. In primary and secondary education, public expenditure per pupil in 2002 was 3.7 percent of the level in 1980. Actual expenditurein2006 onprimary education remains low at less thanUS$20 per pupilper year. 85. The DRC spending pattern on education is atypical even when compared with other poor African countries: (i) total public spending on education i s much lower than average (about 2 percent o f GDP compared with an average o f about 5 percent); (ii) share o f education in the Government expenditure (9.1 percent in 2006) i s the lowest on the continent; (iii) share o f the primary education (43 percent o fthe education budget) should increase significantly to reach the African average or values recommended in the Education for All (EFA) - Fast Track Initiative (FTI) framework; (iv) student to teacher ratio could be increased by up to 10 percent without expected decline in quality but with substantial savings; and (v) average teacher take-home pay including parents' contributions i s relatively high at about 6 times the per capita GDP, but falls to 3 times the GDP per capita, on average, when only the official salaries are counted. 86. The economic and financial analyses conducted duringProject preparation (Annex 9) show that financial sustainability of the Government's decision in2005 to eliminate many of the fees that households were paying depends essentially on four policy parameters: (i) Increaseinthesizeofthepublicsector(asmeasuredbytheproportionofpublicrecurrent expenditures inthe nominal value o fthe GDP) from its current 8.6 percent in2006 to 12 percent by 2011. (ii) Increase in resource allocation to primary education (interms o f recurrent expenditures) from its current estimated 20 percent to reach 27.5 percent by 2011. (iii) Renegotiation of the terms of the work contract between the State and the teachers, and adoption o f a long-term perspective for the upgrade o f the teacher compensation and career structure; (iv) Improvement of efficiency and controlling unit cost through the rationalization o f the numberofteachers andtheir rigorous allocation according to needs andthe school map. 87. The specific set o f actions agreed with the Government will entail the progressive regularization, through 2012, o f 30,000 teachers who are not on the payroll (non-mecanisks, NM - not regularized) but whose situation has been recognized by the Provincial authorities and SECOPE as authorized to be operational and paid throughthe public payroll, provided that funds are formally allocated through the national budget. Specifically, the criteria for selecting teachers to be regularized are: (i)teachers working ina registeredschool which grew beyond the authorized original license o f number o f teachers to operate (postes autorisks, PA - authorized positions); and b) teachers working in a non-registered school which SECOPE has approved to be registered provided the national budget allocates funds for the payment o f these teachers' salaries. In addition, the Government will eliminate once and for all the levies charged at the school level directly related to running operating costs (FDF), including the occasional charges for one-time expenditures fiais d'interventions ponctuelles, FDIP - fees for specific purposes). 88. The DRC will need the above policy actions to meet the double challenge o f expanding the system to pursue UPE and close current access gaps in gender, as well as promoting equity of access by reducingthe financial burdenon households. Substantial scaling up o f donor funding 25 will be required for years to come, to help meet the financing gap in education and progress towards the two education MDGs. Only a substantial commitment o f the Government to increase in parallel both the share o f education in the national budget and the share o f primary education in the education budget (see Annex 9) will make any o f these reforms sustainable in the long-term, However, even if financial sustainability is not be achieved inthe five years of the Project, the Project as a whole will yield significant positive economic returns through increased participation, better quality o f education and increased institutional capacity. In addition, the World Bank contribution to the Project i s an IDA grant, so this will not contribute to the country's debt load. 2. Technical 89. This i s a technically solid Project. Its design draws from in-depth sector analysis which helped bring to the fore the key issues for restoring minimum operating conditions in primary schools, and for preparing for more fundamental investmentsoverall inthe sector. The Project design also draws upon poverty assessments carried out inconjunction with the PRSP, technical work on financial analysis and modeling in collaboration with the IMF, numerous social assessments and research on school fees documented inthis Project Appraisal Document or PAD (see Annex 12). The Bank and Government teams' experience managing ongoing IDA-financed projects in all provinces o f the DRC further helpedrefine the technical design and methodology o fthe proposed Project. 90. Giventhat affordability i s the chief constraint on pro-poor access to primary education, and given the weak capacity in the public sector, the history o f a de facto public-civil society partnership in education service delivery, as well as results and durable elements from existing IDA and other donor-supported projects in the sector, the proposed Project focuses on the following approaches: (i) lowering costs o f education to households, to improve equitable access to primary education; (ii) providing learning materials and stimulating a market for textbooks and improving their quality; (iii) introducing schemes to produce qualified teachers and support their practice more effectively; (iv) enabling the public (including local authorities) and civil society groups to manage education service delivery and participate in school level decisions effectively (i.e. updating the Zoi cadre - organic law - to define the role that the religious organizations and civil society play inmanaging education; buildingnational capacity for school rehabilitation, enabling and empowering stakeholders to be better informed and participate in decisions at school level); (v) promoting coherence in service management and delivery by linking formulation o f new policies in education with macro-structural reforms including civil service and public expenditure management; (vi) providing for suitable contracting out arrangements for Project implementation; and (vii) systematic attention to monitoring and evaluation o f results, outputs, and outcomes. 3. Fiduciary 91. The financial management assessment o f the participating ministries conducted during Project preparation revealed the following weaknesses: (i) o f sufficiently qualified staff; (ii) lack absence o f an accounting system acceptable to IDA; and (iii) o f familiarity with IDA lack procedures for reporting, disbursement arrangements and auditing. To address these weaknesses, it was agreed to create a PMCU to reinforce the ministries, and to staff the PMCU with consultants competitively selected for the required expertise, and to outsource the internal audit 26 function. Therefore, financial management, disbursement, and audit functions for the proposed Project will be undertaken inthe following manner: The PMCU will be responsible for all aspects o f financial management, accounting and auditing o f the Project. In particular, these include: designing and establishing a computerized Financial Management System (FMS); approving disbursemento f funds to implementingpartners; maintainingup-to-date accounting records and ledgers; recording fiduciary transactions for all activities pertaining to the Project; fiduciary reporting; submittingaudit reports; and ensuring that a proper internal control system is inplace to achieve accountability at all levels. A service contract will be signedbetweenthe PMCU and a procurement agent to define the agent's responsibilities interms o fprocurement and reporting. Disbursement from the IDA grant will be transaction-based (replenishment, reimbursement). A Special Account in US Dollars and maintained by the PMCU, will be opened in a commercial bank on terms and conditions acceptable to IDA. The Special Account will finance all eligible expenditures except for the cash transfers for teachers' salaries. IDA will transfer funds on a quarterlybasis, for each of the five years ofthe Project, into an earmarked account at the National Treasury located at the Central Bank o f Congo, to be used for the sole purpose o f the Government's payment o f i)the identified primary school teachers to be added to the public payroll, and ii)subsidies for primary school operating costs in return for abolishing fees for this purpose. These grants will be transferred along with the pay envelope using the existing procedures for payment o f teachers' salaries. These procedures involve an officially mandated role for SECOPE (a unit ofthe MEPSP) to establishthe list ofqualifying teachers andmonitor delivery o fthe salary payments to teachers. The Ministry o f Finance will be responsible for authorizing release o f these funds from the Treasury. The Ministry o f Budgetwill be responsible for the signature ofthe validation orders which are infact summary payroll statements. Each installment payment will be audited as described in the disbursement conditions elsewhere inthe current document. A qualified, experienced and independentexternal auditor will be appointed on approved TOR. This will cover all aspects o f the Project activities, including eligibility o f expendituresandphysicalinspections. 4. Social 92. Inaddition to the extensive social assessments and analytical work noted above, the Project preparation team consulted a wide range o f stakeholders including the religious organizations, African Association o f Pygmies, teacher trade unions, indigenous NGOs and community based organizations, as well as education authorities from ministry to school levels. The Project team worked closely with other key donors as part o f a harmonized strategic effort through which a joint diagnosis and ajoint programming are beingprepared for the DRC. 93. Findings across the board highlight inequity o f access at the base o f the DRC's education system as its defining characteristic. The pattern o f participation in education at all levels is largely a manifestation o f the distortion effects o f access equated with the inability to pay fees. Rough estimates point to households paying on average twenty percent o f their income for each 27 child they send to school. The (lack of) affordability o f education i s also a key determinant o f persistence in primary education. The mean age o f children from poor and rich households in each class suggests that children from poor households enroll late and tend to drop out; a greater proportion o f children from rich households get enrolled at the right age but they tend to repeat classes and stay inschool. 94. The situation in the DRC exemplifies many o f the challenges faced by post-conflict countries. Significant progress has been made over the last years, but challenges remain daunting. Inline with the improved situation, key stakeholders inthe education sector, including the teachers' unions andreligious organizations who hadassumedmanagement of schools during the long periodwhenGovernment was absent from the sector, are calling for an endo fthe over- reliance on financing from households. The Constitution, which was approved by referendum in December 2005, called for obligatory and fee free primary education. Since this was not backed by adequate budgetary resources for Government to replace all school fees, there were sporadic outbreaks o f civil unrest especially over the issue o f teachers' salaries, which would take the largest cut if school fees were removed. Negotiations are ongoing, but there i s inherent risk to the already fragile stability ofthe country. 95. The Project i s addressing these issues through attention to demand side issues and to targeting public spendingto basic education. The Project responds to immediate fiscal shocks by proposing cash transfers (Component 1) for Government to increase the primary school teacher force on payroll and for schools as a compensation for completely abolishing FDF, including the FDIP. The Project also contributes to providing for free accessto textbooks inall public schools and Government assisted private schools (Component 2). As participating in primary school becomes more affordable, the social impact should be seen inan increased proportion o f children aged 5-14 who are inschool, and inprogress toward equity o f access for girls. 96. It i s striking that the user surveys referred to earlier in the current document reveal that parents seemedto accept that education was not useful. Parents were willing to pay, but saw this as a social and moral value to send their children to school. Parents did not see the usefulness in terms o f economic value (their children's subsequent employment). The Project has been designed around an assumption, based on documented research, that parents will find education to be o f greater value ifthey can see visible improvements inthe availability o f essential inputs- textbooks, teachers trained to use them, classrooms which offer adequate shelter from the elements - and can see that this translates into learning inthe classroom. This i s the rationale for including a sub-component to scale out assessments o f learning achievement and to build up a culture o f monitoring the relationship between quality o f education, learning and retention in school. It i s expected that this will help to raise teacher awareness that they are accountable for learning in the classroom, and that the research will also generate specific recommendations which can be fed into the policy work on teacher development and other areas. 97. The extensive consultations also enabled the Bank team to probe the dynamics o f local participation around the school. What i s striking i s that parents and parent committees are not involved in the life o f the school, although they have beenpressuredto contribute financially to its operation. Parent committees are seen primarily as the liaison between parents and school management, to extract payments for teachers and school fees. This highlights the need for direct interventions to train and sensitize local parent committees that they have a role in monitoring the important reform initiatives (e.g. elimination o f FDF) as well as a role for 28 keeping schools accountable for results and quality o f primary education. Moreover, parent committees ought to be assistedwith a legal base should they call for sanctions. 5. Governance 98. The Project faces high risks and has therefore integrated good governance and anti- corruption measures into the design (see Annex 16). Three guiding themes in each o f the Project's four components have been integrated into the design: (i) performance, through monitoring targets whose attainment will be the indication o f success; (ii) anticipation, through planning and programming all interventions on the basis o f thorough analysis o f the situation on the ground; and (iii)participation and transparency, through mechanisms which allow stakeholders to influence and share control over decision-making. In particular, following the recommendations o f a recent INT inspection, the Project team took measures to redesign the Project's institutional arrangements in January- February 2007, to avoid agents which the INT investigationhadraised questions inrelationto other ongoing projects. 99. The Project design takes into consideration to build up the presently weak accountability relationships between service providers (schools) and beneficiaries (parents and students), as well as between service providers and policy-makers (national and local authorities). Parents' committees, PTAs, and teachers' trade unions will be strengthenedthrough training inplanning, budgetingand financial management, as well as anti-comption. An entry point for strengthening accountability i s to give voice to beneficiaries by introducing citizen report cards. 100. Accountability relationships between service providers and political levels will be strengthened by Project interventions which aim at creating a legal basis for regulating roles and responsibilities. Service providers are to deliver primary education in line with instructions or according to a contract, and policy makers (national and local levels) use instruments o f financing, regulation, monitoring and evaluation to exert control and oversight. Such a contract i s missing for the great majority o f public schools (especially those run by religious networks). The Convention (Agreement) that dates from the end o f the 1970s to regulate the roles and responsibilities for public schools managed by religious networks i s long overdue for an update insome form andwillbe addressedwith support from the Project. 101. A communication strategy will further strengthen accountability, including participation, transparency and performance. It will provide for consistent messages being conveyed to all relevant stakeholders: government officials inimplementingagencies; contractors, suppliers, and consultants who may be involved in bidding on the Project; service providers (including school management boards and school directors) members o f civil society affected by the Project (parent committees, parents, students, teachers, teachers' trade unions). The objective is to inform about particular events o f the Project (e.g. public delivery o f textbooks to schools), to highlight noteworthy achievements in quality, cost-effectiveness, and sustainability, as well as any incidents o f alleged collusion, fraud, or corruption. Further, feedback from each o f the groups noted above will be important for monitoring and improving the Project. 6. Environment 102. The Project i s classified as environmental category B. OP (Operational Policy) / BP (Bank Procedure) / GP (Good Practice) 4.01 Environmental Assessment and OPBP 4.12 Involuntary Resettlement are triggered because o f the rehabilitation activities at primary schools and the National Pedagogical University, although no new land acquisition i s envisaged. Most 29 investments will be small and unlikely to have more than some localized, temporary environmentalimpacts, easily mitigatedthrough the application o f sensible site selection criteria, good construction practices, and diligent management practices in the operational phase. No Project support will be provided in areas with activities involving involuntary resettlement. Activities that would have adverse impacts on social groups within the community and/or in neighboring communities cannot be funded. Capacity building of the implementing agents is expected to have positive impact on the physical environment. An Environmental and Social Management Framework (ESMF) and a Resettlement Action Plan (RAP) were,produced during preparations and disclosed in the DRC and through the World Bank Infoshop in January 2006. Recommendations are being operationalized into the Project Operations Manual and Technical Guidelines which describe the roles and responsibilities o f all actors who will implement the ESMF. The PMCU is responsible for the implementation o f the ESMF's provisions and necessary resources to cover the cost o f the anticipated activities have been budgeted in the Project's overall financing plan. The M&E framework has beendesigned to capture data on the identification and mitigation o f environmental and social impacts, including the Project's contribution to the pro-poor objective o f reducing primary school fees. Annex 10 provides further details. 7. Safeguardpolicies Safeguard Policies Triggeredby the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [XI [I Natural Habitats (OP/BP 4.04) [I [I Pest Management (OP 4.09) [I [I Cultural Property (OP 11.03, beingrevisedas OP 4.11) [I [I Involuntary Resettlement (OP/BP 4.12) [XI [I Indigenous Peoples (OP 4.20, beingrevisedas OP 4.10) [I [I Forests (OP/BP 4.36) [I [I Safety o fDams (OP/BP 4.37) [I [I Projects inDisputedAreas (OP/BP/GP 7.60) [I [I Projects on International Waterways (OP/BP/GP 7.50) [I [I 8. PolicyExceptionsand Readiness 103. There are no policy exceptions required for the Project. The Government team i s working towards meetingthe conditions for Effectiveness agreed duringnegotiations. These are detailed in Section C6 of the PAD and include standard operational requirements (Le. financial management; recruitment o f a procurement agent; recruiting o f an auditor, etc.). All these conditions are expected to be met by the Effectiveness date. This should guarantee a prompt jump start o fthe implementationactivities. 30 Annex 1:Country and Sector Background 1. CountryBackground 1. The Democratic Republic of Congo (DRC) is one of the poorest countries inthe world, with an estimatedGDP per capita of about US$120. This is six times below the average for countries inSSA despite that the DRC is the richest innaturalendowments. Key social indicators pointto widespread poverty and suffering of the Congolese population. Under 5 mortality, for example, i s 22 percent higher inthe DRC compared with the SSA average - a newborn child has only an 80 percent chance of surviving its 5 year birthday inthe DRC. About 13 percent of all newborns die before they reachtheir first birthday. One percent of Congolese women dies when pregnant or giving birth. The primary gross enrolment rate is about 64 percent inthe DRC, whereas it i s about 92 percent inSSA countries. ChartAl.l. Key Social and Economic Indicatorsin the DRC and SSA Countries 800 - 600 - Primary Infant mortality Under 5 Mortality Maternal mortality GDP per capita enrolment rate (per 1000) (per 1000) (per 100000) (current USD) (%) Source: World Bank Development Gate, 2006 2. After 50 years as a Belgian colony, the Congo became independentin 1960. Conflict inthe immediate post-independenceperiod was followed by corruption and mismanagement under the Mobutu Sese Seko regime (1965-1997), which brought the country to near-collapse. From the mid-1990s to 2001, the DRC was the main battlefield for Africa's first continent-scale war, resulting in around four million casualties and many more displaced. The conflict exacerbated ethnic tensions and secessionist movements, posing long-term challenges to the transition to peace. 3. A ceasefire was agreed after the assassination of President Laurent Kabila in 2001. The period of national dialogue that ensued established a tenuous peace that allowed the country to resume productive activities to reverse the damage of decades of mismanagement and unleash 31 the country's growth potential. Aided by the resumption o f support from the Bretton Woods institutions, the country made considerable progress at the macroeconomic level. Within a few years, the Government had succeeded in breaking hyperinflation through restrained monetary and fiscal policies. The economy started a steady growth, and the debt burden became less onerous when the DRC was granted debt relief on Naples terms by the Paris Club in 2002, and on Cologne terms when it reached the Decision Point under the enhanced HIPC Initiative in 2003. 4. On June 30, 2003, an all-inclusive government o f national unity was appointed following agreements reached through the inter-Congolese dialogue. This new period enabled the launching o f in-depth structural reforms in economic governance, public expenditure management and transparency, poverty reduction, financial sector, and public enterprises. The cornerstones o f public policy were three-fold: i)to restore institutional unity while allowing for necessary decentralization; ii)to implement urgent pro-poor policies and actions; and iii)to provide rapid financial support inthe eastern and northern provinces which were still devastated and indisarray from the last round o f conflict duringwhichthese areas hadbeenadministeredby a variety of armedgroups. 5. A new Constitution was adopted by national referendum in December 2005. It proposed a new territorial organization - increasing the number o f provinces from 11to 26 inthe medium term - and provided for direct elections of the provincial assemblies and executive. The Transitional Government's PRSP, released in July 2006, sets out a series o f medium-term development objectives to move forward with pro-poor programs and particularly to improve service delivery inthe social sectors. Finally, backed up by a large contingent o f peace-keeping forces from the United Nations (more than 17,000 troops), the country held its first free democratic elections in two rounds in July and October 2006. The Transitional Government's President, JosephKabila, was confirmed as the newdemocratic president, with almost 60 percent o fthe votes. 6. The country is now at a turning point to embark for the first time in decades on a sustained path o f growth and development. Yet, many challenges constrain progress. The most basic i s the tremendous deficit interms of human development. Out o f 177 countries surveyed in the UnitedNations HumanDevelopmentIndex, the DRC currently ranks 167. Another issue is the security environment. The DRC i s highly polarized interms o fpolitical preferences and portrays a clear picture o f ethnic divisions and secessionist movements which erupt inviolent clashes. A further threat to the country's development is given by the poor governance standards. According to the last Corruption Perception Index released by Transparency International, the DRC ranks 156 out o f 163 countries in the world. The DRC ranks 175 out o f 175 countries surveyedinterms o f the ease o f doingbusiness, according to the index elaborated by the World Bank. Despite this ranking, however, the DRC managed to attract about US$1 billion in FDI during2006. 32 2. Sector Background 7. The Country Status Report (World Bank, 2005b) released in January 2005 presented an extensive overview o f the challenges the education sector faces inthe DRC. Four problems are critical: i)a relatively low coverage at the primary level, with huge inequalities in access; ii)a serious deterioration inthe quality o f education at all levels; iii)a proliferation o f administrative structures inthe education sector; and iv) a low level o f public spending, with an inefficient and inequitable system of education financing. The current annex draws on the findings o f the Country Status Report (World Bank, 2005b) and updates its conclusions with more recent research that was conducted in2006 andpart o f 2007. 2.1 Sector overview 8. The education sector inthe DRC i s overseen by four ministries: (i) Ministry of Primary, the Secondary and Professional Education (MEPSP); (ii)the Ministry of Higher Education and Universities (MESU); (iii) Ministry of Scientific Research (MRS); and (iv) the Ministry of the Social Affairs and National Solidarity (MASSN). 9. The MEPSP regulates the activity of the first three levels o f education: pre-primary, primary, and secondary. Only the primary level is compulsory under the Congolese law. The staff roster for EPSP entails, as of December 2006, 225,723 agents working directly in schools and 1,791 agents at the ministerial offices in the capital and the provinces. The EPSP group is approximately 37 percent o f all civil servants in the country. The MESU and MRS encompass the higher education sector and involve 34,631 agents, approximately six percent o f the civil servants' payroll. Finally, the MASSN oversees, among other activities, those related to non- formal education, basically including literacy centers, centers o fprofessional training, and school catch-up courses. The total staff devoted to these activities is approximately 5,600. 10. The personnel affected to the education sector inthe DRC i s about halfthe size ofthe public sector. This becomes an important factor interms o f the recurrent expenditureso f the national budget, withthe education sector bearing slightly more thanhalfthe public sector wage bill. 11. This magnitude o f the education sector i s enormous: around 49,500 institutions, 458,000 teachers, and roughly 12.2 million students (see Table Al.1). The primary education level alone represents, on average, 59 percent o f the system, comprising about 29,000 schools, 238,000 teachers, and an estimated 8.2 million students. The secondary education level represents about 39 percent o f the total, with around 19,000 schools, 209,000 teachers and 3.7 million students. Finally, the pre-primary and the higher education sub-sectors make up around 1 to 2 percent of the system. The system is highlypyramidal as only about 40 percent of the students entering primary school ever reach secondary level, and only a small minority attend at tertiary level or the university. The probability that an incoming primary education student reaches higher education is two percent. 33 TableAl.l Dimensionsof the educationsector in the DRC (estimatesfor 2006) Pre-primary Primary Secondary Higher Non-formal Total agents Abs %tot. Abs %tot. Abs %tot. Abs %tot. Abs %tot. Schools 1,200 2.3 29,000 56.6 19,000 37.1 430 0.8 1,600 3.1 51,230 Teachers 3,000 0.7 219,000 49.1 209,000 46.8 10,400 2.3 4,800 1.1 446,200 Students 70,000 0.6 7,000,000 63.2 3,700,000 33.4 250,000 2.3 57,500 0.5 11,077,500 Source: World Bank estimations. For pre-primary, primary, and secondary, we used RDC (2005a) and on the ground estimations of: a) total number of schools (registered and non-registered); b) total teachers (regularized and non-regularized) by Johan Verhaghe (consultant). For higher education, we used estimationson enrollment and enrollment growth from World Bank (2005b). For non-formaleducation, we usedUNESCO(2006) and extrapolatedto the rest of the country on the basis of public and private sector ratios of Kinshasa to the rest o f the country in each of the three categories (schools, students, and teachers) for allthreeEPSP levels of education. 12. Many factors contribute to the low survival rates across the system. One is the combined effect o f high repetition and high dropout rates. Both indicators combined account for a 40 percent impact at the grade 1 level. Another factor negatively affecting retention i s the large number o f over-age pupils. Only about 12 percent o fpupils infirst grade are aged 6 or less (net admission rate). Half o f the pupils start school (grade 1) at age 10 or more. Even if the older children succeed in moving along grades smoothly, by the time they reach grade 3 or 4, the opportunity cost to stay inschool increases importantly vis-a-vis their possibility o f entering into remunerative activities or coping with the burdeno f housekeeping activities. 13. Added to the above inefficiencies are severe problems o f access. The Gross Enrolment Ratio (GER) inprimary i s an estimated 64 percent, but eventhis low average nationally conceals large differences across gender: the GER for males hovers around 72 percent, compared with 56 percent for females. There are also striking asymmetries across provinces, as well as between urban (72 percent) and rural (44 percent) areas. A huge mass o f an estimated five million school-aged children still remains without access. 14. Interestingly, it does not appear that the system's absorption capacity i s the main limiting factor on internal efficiency and the low access to school. There appears to be scope within the education sector's present capacity to accommodate sudden expansion if required. The average primary school involves around 241 students and 8 teachers, at a rate o f about 32 students per teacher. Both indicators are relatively low by SSA standards. Likewise (see Table A1.2 below), potential expansion at other levels appears to be feasible: the secondary level studentheacher ratio i s 18, and the corresponding student/school ratio i s 195, at a rate o f around 11teachers per school. Only the universities present a larger use o f existing capacity with around 580 students per institution, butagain, with a relatively low studentkeacher ratio (24). 34 Table A1.2 Basicindicatorsof size, by level of education Pre-primary Primary Secondary Higher Non- education education education education formal All levels Studentsper institution 58 241 195 581 36 216 Students perteacher 23 32 18 24 12 25 Teachers per institution 3 8 11 24 3 9 Source: World Bank estimations. For pre-primary, primary, and secondary, we used RDC (2005a) andon the ground estimations of: a) total number of schools (registered and non-registered); b) total teachers (regularized and non-regularized) by Johan Verhaghe (consultant). For higher education, we used estimations on enrollment and enrollment growth ffom World Bank (2005b). For non- formal education, we used UNESCO (2006) and extrapolated to the rest of the country on the basis of public and private sector ratios of Kinshasato the rest of the country ineach of the three categories (schools, students, and teachers) for all three EPSP levels ofeducation. 2.2 Organizationof the sector 15. The bulk o f the education sector i s represented by the primary and secondary levels. The central Government i s the "organizing power" (pouvoir organisateur) and, despite its limited fiscal resources, has the capacity to manage teacher deployment and conduct examinations. The religious organizations assumed responsibility for managing the majority o fprimary (72 percent) and secondary (64 percent) schools through contracts ("Conventions") with the State in the late 1970s and have continued because o f the severe lack o f public financing for decades. Together with parents who have been willing to pay high school fees, the religious organizations have been responsible for the survival o f the public education system through decades o f official neglect. Yet, the Loi-cadre (1986) - the legal framework that inprinciple governs the sector - makes no reference to the religious organizations. The "Conventions" from the 1970s, which were specifically created to regulate the State's partnership with the religious organizations, are out o f date. 16. Decentralized administration o f primary and secondary education is foreseen by the Constitution, and a new law on decentralization has recently been passed, although not fully implemented. In the interim, the current territorial/ administrative structure and division of responsibilities for primary and secondary education within the public administration are based on a law enacted in July 1998. The heads o f administrative structures at decentralized level, Entite`s Administratives De`centralise`es (EAD), oversee education services along with other central government services within their jurisdiction. Only some EADs have a juridical status, and whereas the law provides for each EAD to have a consultative council nominated by the government, in reality no such councils have been formed. Prior to the general elections o f 2006, provincial governors (who often head the EADs) were nominated by the National Government, but are now elected by the Senate. Provincial Assemblies have been directly elected by the people, but their roles and responsibilities for education have not yet been spelled out. The central Government i s responsible for the determination o fthe minewal (the annual per capita user fee levied on students since 1997 i s currently 100 FC), the salaries o f teaching personnel, the opening/ closure/ approval o f schools, the general inspection and the end o f cycle examinations. The EADs are responsible for management o f educational institutions, proposing some o fthe fees and the opening and closure o f classes. 35 17. The resources o f the EAD are comprised o f local taxes and intergovernmental transfers (re'trocessions). Re'trocessions were set at 20 percent o f revenues collected inthe provinces until the enactment ofthe DecentralizationLawthat doubledthat proportion. Upto the passing ofthis law, only ten percent o f these revenues were automatically transferred to the EADs in the province. The extent to which there will be or have been changes in this regard is presently unknown. The central Government directly pays the wages o f primary and secondary education personnel through the civil servants' payroll and should finance the functioning o f services inthe provinces as well as other running costs o f the schools. Inrecent years, however, little has been paid apart from wages - and at that, not all teachers are on the public payroll. Effective decentralization will depend in part on the clear assignment o f fiscal responsibilities, tax and expenditureassignments, as well as fiscal transfers (both tax and non-tax revenue) betweenthe central Government and the EADs. The delegation o f authority needs to be combined with effective control over local administrative structures, local revenues and financial resources transferred from the center. 2.3 The financingof education 18. Any analysis o f the financing o f the primary and secondary education sub-sectors in the DRC needs to single out the contribution from the Government (public financing) and the contribution from households (private financing). In regard to the former, a key feature i s the highly inequitable public financing across levels o f education. Table Al.3 shows that, whereas public pre-primary and primary education present similar levels o f per pupil spending from the government (around US$1.5 a month), public secondary education students receive almost 90 percent more, and students attending public higher education institutions receive, on average, greater than 8 times more. 19. A second characteristic o f the public financing o f the system i s the sharp deterioration inthe level o f State funding over time. In 1980, the proportion o f the national budget allocated for education was 25 percent. This fell to 17 percent in 1983, and two years later to 7 percent. The proportion continued to drop until2004, when budget allocations to education started to increase. The sharp fall occurred mainly through declining teachers' salaries, which hardly rose innominal terms for years. In 2002, the social sectors represented only an approximate 7 percent o f total public expendituresinthe national budget, compared with 18 percent for defense, 14 percent for the Presidency, and 4 percent, each, for security services and public works. Among the social sectors, the only ministries for which the public expenditureswere higher than 1 percent were: the MEPSP (2.25 percent), the MESU(1.27 percent), and the Ministry o f Health (1.52 percent). Since 2004, the education sector expenditures have been steadily increasing. Yet even the 2006 budget shows only a meager 9 percent in terms o f total Government expenditures (salary and non-salary recurrent expenditures, capital expenditures and debt services). Interestingly, as pointed out above, the education sector represents more than half the wage bill o f the national budget. 36 TableA13 Publicfinancingo fthe fionnaleducationsector inthe DRC Perpupil Lmlo feducation eqendiiure Ratiotoprimary (US dollars, 2006) level ~~ ~ Pre-primaty 1.o Primaty 17 1.o Secondary 32 I.9 Highereducation 146 8.B Ssmc: WorldBank estimations onthe basis o fTable A I .l, A1.2 Table andRDC (2006a). 20. Private financing o f education increased to compensate for decreasing public funding since the mid-1980s and became the predominant source o f financing at all levels o f education. Household financing o f education takes two forms: the financing o f education in private institutions and the financing o f education in public institutions. The size o f the private sector for primary and secondary levels i s very small nationwide (on average less than 10 percent in all provinces, except Kinshasa), so it affects a relatively small portion o f the universe o f students, and quite plausibly, the relatively better-off. Yet, the bulk o f the public system, both for primary and secondary, is financed by the students or their parents, since the absolute levels o f public expendituresare very low andhave beenso since the mid 1980s. 21. For education at public institutions, students are requiredto pay a number o f charges. Table A1.4 lists the percentage distribution o f the main fees usually charged, by province, at the primary school level. The minervul (referred to in section 2.2) i s the least burdensome o f all these levies. Roughly half o f all school fees fall under the category o f FDM, which contributes to finance teachers' salaries, either in the form o f a top-up to the official salaries paid by the Government or by fully covering the "unofficial" salary o f teachers who remain NM. The second largest category o f school fees i s the so-called FDF. These fees are usually required by schools to cover the operation costs o f schools, and can account for up to thirty percent o f all school fees insome cases. FDIPare also frequently usedby the schools as a one-time charge for a particular expenditurethat may represent, for example, a large share o f an average maintenance charge to replace a roof on a classroom. Fruis d'exumen (exam fees) are usually charged to cover the costs associated with the end o f cycle examinations and certificates. Although these charges are only leviedon pupils ingrade 6, the relative weight o f this levy could reach up to 34 percent o fthe total school fees insome provinces (e.g. Equateur). Finally, thefruis d'imprimerie (printing fees) are usually charged to cover the expenditure associated with identity cards for students and report cards. Although the various fees described above are the most common, there are often numerous additional charges set at central, provincial andor school levels. These can involveprimes d'ussurunce scoluire (insurance for students), fruis depromotion scoluire (to meet expenditures of provincial gatherings of teachers and administrators o f the province), and puis deformation (to meet travel and per diem expenses o f inspectors for school visits). 37 Table A1.4 Listof mainschoolfees paid per student, by province % oftotal ~~ Province Minerval FDM FDF FDIP Printingfees Examfees Total Bandundu 2.2 52.1 19.3 9.1 3.2 14.2 100 Bas-Congo 1.5 43.3 30.4 9.5 1.9 13.4 100 tquateur 2.4 25.3 24.0 10.8 3.8 33.8 100 KasaFOccidental 3.4 34.1 26.2 3.4 4.1 28.7 100 Kasa'i-Oriental 3.4 42.2 23.1 4.4 3.8 23.1 100 Katanga (Lubumbashi) 1.7 40.8 18.0 23.5 2.1 13.9 100 Katanga (Rest) 2.9 32.1 22.5 10.7 3.3 28.5 100 Kinshasa 0.8 58.5 15.2 16.8 0.7 8.2 100 Maniema 5.2 37.6 22.0 1.6 2.1 31.4 100 Nord-Kivu 1.5 58.0 20.5 11.1 1.4 7.5 100 OrientaleProv. 4.0 39.8 34.5 3.1 2.3 16.4 100 Sud-Kivu 1.6 52.2 16.0 10.7 0.9 18.7 100 Average 2.0 46.8 21.0 11.8 2.0 16.4 100 Source:World Bank estimations on the basis ofWorld Bank (2005b) and onthe ground collection of data by Johan Verhaghe (consultant). 22. The multiplicity o f school fees charged by public schools in the DRC reveals how households have been expected to finance not only local school costs, but also the cost o f administration o f the education system. In principle, the system for levying, collecting and distributing these charges is well laid out, although the practice varies considerably both in relation to the official procedure as well as across provinces. Very rough estimates o f the total incidence o f the collection o f these school fees show that, at the primary school level, they represent a compulsory co-financing o f the system by households at around US$lSO million a year. This co-financing by households i s a 1:l match, on average, with what the national Government invests inprimary education per year. 23. It is worth noting that private schools have similar charges, the main difference being that the FDF cover all operational expenses for the school; hence, there are no separate FDM for teachers, since teachers' salaries are paid out o f the general pupil charges. In principle, the school fees in private schools are set by the management in consultation with the chef de sous- division (sub-division chief) and the school committee, comprising teachers and parents o f students. In addition, private schools charge for the renting o f books; this also exists in some public Catholic schools at the secondary level. 24. Data collected through a public school survey during preparation o f the Country Status Report (World Bank, 2005b) showed an astonishing variation in charges across provinces and across schools. These findings are corroborated by follow-up surveys o f fees for the 2004-2005 school year. It should be pointed out, however, that the accounting system at the school level i s often in disarray and responses to survey questions on receipts and expenditures are erratic, incomplete, and not entirely internally consistent. Important capacity-building efforts (training o f personnel as well as equipping schools with basic stationery and accounting books) are required to re-organize the system o f school finances to enable schools to monitor receipts and expenditures effectively. 38 25. The public neglect o f the entire education sector for decades, and the heavy reliance on household funding, especially teachers' salaries, prevents the system from expanding to give the population universal access and the prospects o f completing basic education. The DRC i s very much off-track towards the fulfillment o f the MDGs, and until the fee issue i s addressed, most other neededreforms inthe sector cannot be effectively tackled. 2.4 What is behindthefrais de motivation (FDM)? 26. The origin o f FDA4 charged at the primary school level i s tied to two key factors: i)low official salary levels; and ii)a high rate o f non-registered schools and non-regularized teachers. Eachofthese issues i s discussed inseparate sub-sections below. 2.4.1 The analysis of teacher salaries 27. The average salary for a primary education teacher holding a 4-year diploma inteaching is about US$28 a month. For teachers who hold a 6-year diploma, the average official salary i s around US$30 a month. Ifthe teacher has finished a 3-year tertiary teacher training course, the salary is, on average, US$37 a month. For the purposes o f comparison, the monthly salary o f a school director i s around US$54. These salary levels (only three times the GDP per capita) are low by SSA averages (between six and seven times the GDP per capita). The low base of teachers' salaries has forced public schools to start charging FDM to top up the salaries in attempts to retainteachers and keep schools operating. 28. Salary scales for teachers inthe DRC present several noteworthy characteristics. First, pre- primary, primary, and secondary school teachers share the same salary scales. This means that a teacher with the same qualifications - for example, a 3-year diploma in teaching obtained at a pedagogical tertiary institution (a "G3" diploma) - will earn the same regardless o f the level (or grade within level) taught. 29. A second characteristic i s that there are three different elements in the current net salary received by a teacher: i)the base salary; ii)the indemnith (allowances); and iii)theprimes (top- ups). The base salary is the only component that was originally designed to account for qualifications and years o f experience. Starting withthe first year o fwork, there i s an increase in the base salary every three years (e`chelons) of accrued experience within the same qualification (grade). The indemnite`s are a monetary compensation for the cost o f living o f a particular regional location. They involve two components: a housing allowance (only paid to teachers working inKinshasa) and a transport allowance. Finally, the primes are lump sum additions to the base salary: ancient prime (old top-up) and nouvelle prime (new top-up). Although the principle in creating them was the same for both - namely to increase the level o f salaries without changing the base o f calculation for retirement - these primes differed in their application. The ancient prime was a lump sum increase to the salaries based on qualification (the highest qualified got higher primes), but identical across the country. The nouvelle prime, instead, differs inboth regards: it i s identical for certain types o f qualifications (e.g. D 4 and D6 receive the same absolute increase); and it i s different for different parts o f the country (i.e. teachers working in Kinshasa receive a higher absolute rise than teachers in the rest o f the country). 30. Differences across the three aforementioned components o f the salary created the current configuration o f a three-zone salary system for teacher payments inthe DRC. Table Al.5 below depicts this system. The three zones comprised: i)the province of Kinshasa; ii)the city o f 39 Lubumbashi (within the province o f Katanga); and iii)the rest o f the country. Absolute salary levels are, on average, twice as highinKinshasa as inthe rest o f the country, whereas salaries in Lubumbashi are about 60 percent lower than Kinshasa, but 30 percent higher than the rest o f the country. Table A1.5 Official average primary education salary levels, by salary zone and teacher qualification (US dollars a month) Primarylevel qualifications D4 D6 G3 Directors Salary zone YOdiff YOdiff Average Average w/rest of YO diff Average w/rest of YO diff Average salary w/rest of w/rest of country salary country salary country salary country Kinshasa 58 106 60 99 67 83 86 59 Katanga (Lubumbashi city) 37 33 39 31 47 27 66 21 Restof the country 28 30 37 54 Source: WorldBankestimationsonthe basisofinformationprovidedby SECOPE. D4= Schoolteacherwitha4-year secondary-levelteachingdiploma. D6 = School teacher with a6-year secondary-levelteachingdiploma. G3 = School teacherwith a3-year tertiary-levelteachingdiploma. 31. The key aspect behindthe large differences between Kinshasa and the rest o f the country i s the differential monetary compensation for transport (nine times higher inthat province thanthe rest; see Table A1.6). The transport allowance for Kinshasa explains 30 percent o f teacher salaries inthis province. Other than that, the key differential between Lubumbashi and the rest o f the country i s the nouvelle prime, which represents more than 60 percent o f the current salary levels inthat city. Table A1.6 Key components determining the level of official salaries of primary school teachers -Average levels by salary zone and teacher qualification (US dollars a month) D4 D6 Provinceand division Base salary Old topup New topup TramP@rtstim allowance Housing Transpartstion alloxalre salary Total Basesalary Oldtopup Newtopup allowance pllmame salary ~~ Kinshasa 6 4 26 5 17 58 7 5 26 5 17 60 % oftotal salary I1 8 44 8 29 IO0 12 9 43 8 28 IO0 Lubumbashi 6 4 19 0 2 31 7 5 19 0 2 34 % of total salary 19 I 4 61 0 6 IO0 22 16 57 0 5 100 Rest of the country 6 4 12 0 2 24 7 5 12 0 2 26 % oftotal salary 25 I 8 49 0 8 IO0 28 ' 20 45 0 7 100 World Bank estimationson the basisofinformationprovidedby SECOPE D4 Schoolteacherwith a 4-year secondary-levelteachingdiploma. - D6 Schoolteacherwith a 6-yearsecondary-lweiteachingdiploma. - 40 32. A final characteristic to note interms o f teacher salaries i s that, although the salaries remain low inabsolute terms, the current levels o f official salaries increased between 75 percent and 200 percent in September 2005, when the newprime was added. Inabsolute terms, Kinshasa got the largest absolute increase. In relative terms, however, the increase for teachers in Lubumbashi was the most significant of all three salary zones (between 150 and 200 percent), and the Kinshasa zone the least significant (between 90 and 125 percent). Therefore, the last wave o f teacher salary increases inthe DRC helpednarrow the gap betweenKinshasa and the rest of the country, especially Lubumbashi, but created a gap between Lubumbashi and the rest o f the country (see Table Al.7). Table A1.7 Latest increaseinteacher salaries Comparative analysisby salary zone and - teacher qualification(US dollars a month) Primary level qualifications D4 D6 Salary zone Salary up to Salary from Sept 2005 Oct 2005 on `YOincrease Salary up to Salary from Sept 2005 Oct 2005 on YOincrease ~~ Kinshasa 32 58 79 34 58 68 Katanga (Lubumbashi city) 12 37 199 15 37 156 Rest of the country 12 28 125 15 28 93 Source: World Bank estimations on the basisof informationprovidedby SECOPE. D4 = Schoolteacherwith a4-year secondary-levelteachingdiploma. D6 = Schoolteacherwith a 6-year secondary-levelteachingdiploma. 33. To sum up, official salaries for teachers inthe DRC received an important boost at the start of school year 2005-2006, and mostly as a result o f demonstrations and strikes in two o f the biggest cities o f the country: Kinshasa and Lubumbashi. The rise in salaries may have partially satisfied teachers, probably helpingto offset an important part o f what FDM constituted up to that moment: the greatest portion o f teachers' take-home pay. Yet, this measure was unable to eliminate FDM, which have been a fundamental financing element o f the system that still tops up, on average, 50 percent of all "real" teacher salaries. Added to that, the extension o fthe two- zone salary systemto the current three-zone configuration increased the inequities o f the system, where teachers with a similar level o f qualification can earn up to thirty percent more inabsolute terms if they, for example, move from any place within the province of Katanga to within the district borders o fthe city o f Lubumbashi2. * Although differential cost o f living adjustments may have been part o fthe consideration in creating the three salary zones, it is still questionable whether it might have been better to create at least ten or more different zones rather than only three. These differential increases in salaries for teachers located in different regions o f the country 41 2.4.2 The status of NMteachers 34. A second reason FDMare still collected at the school level i s because o f the large portion o f the teacher corps that is not on the public payroll and therefore not included in the SECOPE database. This category o f teachers is referred to as NM. The characteristics o f this group o f teachers may vary widely although all o f them share the same treatment: their "salaries" are financed entirely by school fees. According to the Provincial Education Directorates (PROVEDs), the branches o f the Ministry o f Education in the provinces, around 38 percent o f the teacher force is NM (see Table A1.8 below). This national average hides important asymmetries across provinces. For example, the Province o f Katanga outside o f Lubumbashi, together with Maniema and Nord Kivu, has around 60 percent o f teachers fully financed by parents. Kinshasa, Lubumbashi, Bas-Congo, and Bandundu have less than a quarter o f teachers inthis situation. 35. The group o fNMteachers i s not homogeneous; it consists mainly o f four sub-groups: (i)Teachers working inregistered schools and whose positions have been authorized by SECOPE, but who are not yet incorporated into the public payroll due to budgetary constraints. This group o f teachers is known as postes autorids (PA, authorized positions) and constitutes the priority group inthe pipelineat SECOPE. (ii)Teachersworkinginregisteredschools, whosepositions havenotbeenauthorized yetby SECOPE, but who are currently operational on the ground. This group may entail teachers who were added at schools to keep upwith enrollment growth (e.g. a school may have built a new 5th grade ina school originally authorized to have only up to 4thgrade). Inthis situation, usually: a) schools (or networks) are in the process o f requesting authorization from authorities (either preparingthe paperwork or awaiting final authorizationfrom the authorities); or b) schools have unilaterally decided to increase their current teacher force, but have not started the authorization process. (iii)Teachers working in schools which have formally been authorized by SECOPE to function, but have not yet been registered (by SECOPE). These teachers are in the pipeline to be incorporated in the public payroll system pending sufficient funds (&coles d mecaniser). Therefore, this group o f teachers i s NM, but they belong to the priority group to be incorporated into the public payroll system. (iv) Teachers working in non-registered schools, where the school has not been authorized because it didnot submit, or complete, the documentation for authorization. exacerbatedthe debate on how much a school teacher should earn and, in some cases, e.g. Goma, led to situations where the FDMstilloutweigh the portion o f the salary paid by the public sector. 42 Table Al.8 Primary educationworkforce, by status and province - Primarylevelteachers YOwithin provinces Province Registered Notregistered Registered Notregistered (mecanisis) (non-mecanisis) Total (mecanisis) (non-mecanisds) Total Bandundu 25,791 7,09 1 32,882 78.4% 21.6% 100% Bas-Congo 12,928 3,263 16,191 79.8% 20.2% 100% Equateur 15,786 11,556 27,342 57.7% 42.3% 100% Kasai-Occidental 10,47 1 2,693 13,164 79.5% 20.5% 100% KasaY-Oriental 9,873 10,896 20,769 47.5% 52.5% 100% Katanga(Lubumbashi city) 8,947 2,591 11,538 77.5% 22.5% 100% Katanga(Rest ofprovince) 5,332 5,764 11,096 48.1% 5 1.9% 100% Katanga(Total) 14,279 8,355 22,634 63.1% 36.9% 100% Kinshasa 11,946 3,383 15,329 77.9% 22.1% 100% Maniema 3,704 6,003 9,707 38.2% 61.8% 100% Nord-Kivu 6,967 12,871 19,838 35.1% 64.9% 100% OrientaleProv. 13,802 11,683 25,485 54.2% 45.8% 100% Sud-Kivu 9,628 5,735 15,363 62.7% 37.3% 100% Total 135,175 83,529 218,704 61.8% 38.2% 100% Source: WorldBankestimationsonthe basis o finformationcollectedby JohanVerhaghe (consultant) at SECOPEandthe PROVEDs. 36. Teachers ini)and iii)above have beenvetted by the education authorities and are the priority for regularization; whereas the remaining two groups merit further analysis o f feasibility for regularization. SECOPE i s in process o f documenting which o f the total 83,500 NM teachers falls into each o f the four groups and i s most advanced interms o f the PA (group i)above). The group o f PA comprises approximately 24,500 teachers (see Table Al.9 below), which i s around 11 percent o f the total teacher force or about one third o f the positions estimated to need regularizing at the primary school level. Interestingly, this is around 10 percent o f the corresponding teacher force in each province, except for Equateur, for which it represents more than 20 percent. 37. It i s important to bear in mind that, although this partial picture o f the situation o f non- regularized schools and teachers brings some clarity on one o f the priorities for policy reform, the second group on which more analysis is needed contains a potentially very large group o f teachers whose regularization would have considerable budgetary impact should they all be taken onto the public payroll as civil servants. 43 \ Table A1.9 Primary education workforce, by status and province - (further disaggregationwithin the non-registered category) Primarylevelteachers %within provinces Not registered Not registered Province RegisteredAuthorized Non-authorized Total Registered Authorized Non-authorized Total positions positions positions positions Bandundu 25,791 2,758 4,333 32,882 78,4% 8.4% 13.2% 100.0% Bas-Congo 12,928 2,343 920 16,191 79.8% 14.5% 5.7% 100.0% iquateur 15,786 5,488 6,068 27,342 57.7% 20.1% 22.2% 100.0% Kasa'i-Occidental 10,471 1,022 1,671 13,164 79.5% 7.8% 12.7% 100.0% Kasa'i-Oriental 9,873 2,063 8,833 20,769 47.5% 9.9% 42.5% 100.0% Katanga(Lubumbashi city) 8,947 1,42 1 1,170 11,538 77.5% 12.3% 10.1% 100.0% Katanga(Rest of province) 5,332 1,074 4,690 11,096 48.1% 9.7% 42.3% 100.0% Katanga (Total) 14,279 2,495 5,860 22,634 63.1% 11.0% 25.9% 100.0% Kinshasa 11,946 995 2,388 15,329 77.9% 6.5% 15.6% 100.0% Maniema 3,704 1,237 4,766 9,707 38.2% 12.7% 49.1% 100.0% Nord-Kivu 6,967 2,384 10,487 19,838 35.1% 12.0% 52.9% 100.0% Orientale Prov. 13,802 2,080 9,603 25,485 54.2% 8.2% 37.7% 100.0% Sud-Kivu 9,628 1,692 4,043 15,363 62.7% 11.0% 26.3% 100.0% Total 135,175 24,557 58,972 218,704 61.8% 11.2% 27.0% 100.0% Souree: World Bank estimationson the basisof information collectedby Johan Verhaghe (consultant) at SECOPEand the PROVEDs. 2.4.3 The financial implications of the collection of FDM 38. The previous subsections addressed the two main reasons why schools started collecting FDM: (i) official salary levels; and (ii) important number of teachers that remains out o f low an the public payroll system. The financial implications at the teacher level are depicted in Table A1.10 below. It shows that, on average, teachers who are NMget a matching 1:1top-up to their official salary levels. In fact, while the (weighted) official salary in the DRC i s around US$32, the (weighted) average contributionfrom FDMis approximatelyUS$28. 39. The significance o f these figures is that they indicate potential minimum salary levels for teachers. It i s also important to note, once again, that figures differ widely across provinces following a pattern o f higher top-up being paid in the comparatively better-off provinces, and lower top-ups inpoorer provinces. This contrasts with the broad uniformity o f the official salary system across the country, but in some way also suggests that from a strictly technical point o f view, the official salary system would do well to take better account o f the differential cost o f living adjustments needed to attract teachers. To illustrate, the two poorest provinces o f the country (Bandundu and Equateur) have the lowest absolute private contribution to teacher salaries. In the case o f Bandundu, in particular, the Catholic network o f schools which runs about 40 percent o f all public primary schools inthe province, decided to stop requiring FDMto top upthe Government salaries o f mecanids (regularized) teachers. The schools inthis province are only allowed to collect FDM to pay the NM teachers. Better-off provinces like North and Sud Kivu, on the other hand, contribute proportionally more through the FDM to top up teachers' salaries. 44 Table A1.10 "Real salaries'' earned by primary education teachers, by status (US dollars a month) Teachersonthe payrollsystem Impact of FDM (%they representofofficial (mecanbds ) Teachersnot teacher salaries) Ratio of "real currently on the salaries''earned by Province payrollsystem registeredteachers pori- to non-registered Official "Real mecanires ) Noa-mecanis~es Nom teachers salaries FDM salaries" mecaniskes Bandundu 29.3 0.0 29.3 17.4 0.0 59.5 1.68 Bas-Congo 28.9 38.3 67.2 20.0 132.4 69.2 3.36 Jiquateur 28.8 6.1 34.9 14.8 21.2 51.4 2.36 Kasa'i-Occidental 29.2 10.4 39.7 24.4 35.7 83.3 1.63 Kasa'i-Oriental 29.3 21.8 51.0 17.4 74.3 59.5 2.93 Katanga(Lubumbashi) 38.1 43.5 81.6 38.3 114.1 100.5 2.13 Katanga(Rest of province) 28.9 38.3 67.2 38.3 132.3 132.3 1.76 Kinshasa 59.5 55.1 114.6 55.1 92.7 92.7 2.08 Maniema 29.1 30.5 59.5 35.7 104.8 122.8 1.67 Nord-Kivu 29.2 41.8 71.O 28.7 143.1 98.4 2.47 OrientaleProv. 28.6 19.1 47.8 27.0 66.9 94.2 1.77 Sud-Kivu 28.9 32.2 61.1 28.7 111.3 99.3 2.13 Total 32.3 28.1 60.4 28.8 86.9 89.2 2.10 -World Bankestimationsonthe basisofinformationcollectedby Johan Verhaghe (consultant)at SECOPE andat the PROWDs 40. It i s critical to note that the current cohabitation of a system with regularized and non- regularized teachers creates asymmetries within the system, and within schools in some cases. As Table A1.10 shows, on average, the "real salaries" for regularized teachers are more than double those for NMteachers. 41. Several conclusions can be derived from the analysis o f the collection of FDM at the primary school level in the DRC. The first and most important i s that the problem i s directly related to the inability of the public system to finance fully the two elements of the teacher supply: quantity (teacher needs) and price (salary needs). As the systemoperates with a demand exceedingly greater than the supply, the system adjusts by price (much higher "real salaries") and quality (lower number o f qualified teachers on the ground due to the insecurity in stream of payments, even with household co-financing). The quantitative impact in monetary terms is shown inTable A1.11below. 45 Table Al.11 Frais de motivation (FDM, teachers' motivation fees) and their impact, by status of the school students attend Total students Total spent on Average FDM Average FDM Province involved FDM paid per teacher paid per student (estimated) (US dollars a (USdollarsa (USmonth) dollarsa month) month) Bandundu 924,394 123,436 8.7 0.3 Bas-Congo 559,3 15 560,415 29.2 0.8 hquateur 764,147 267,164 10.4 0.4 Kasa'i-Occidental 455,303 174,993 17.4 0.5 Kasa'i-Oriental 975,724 404,500 19.6 0.4 Katanga (Lubumbashi) 186,95 1 488,586 40.9 3.O Katanga (Rest) 179,789 424,936 38.3 2.9 Kinshasa 352,692 844,987 55.1 2.5 Maniema 578,73 1 327,053 33.1 1.o Nord-Kivu 299,656 660,750 35.3 2.3 Orientale Prov. 749,367 579,507 23.1 0.8 Sud-Kivu 892,609 474,779 30.5 0.5 Total 6,918,679 5,331,106 28.5 0.7 Source: World Bank estimations onthe basis of World Bank (2005b) and on the ground collection of data by Johan Verhaghe (consultant) 42. The approximate 7 million students actually coming to class in any primary school in the DRC, registered or not, spend around US$5.3 million a month, only to cover the price o f teaching. This represents, on average, US$0.7 per student a month or, alternatively, a co- financing o f US$28.5 towards the take-home pay of the teacher force. If we take into consideration the fact that there are about 5 million school-aged children outside o fthe education system at the primary school level, the financial implications o fproviding UPEfor all children o f school age are simply staggering for the salary considerations alone. This does not even take into account the massive capital investmentswhich would also be neededto improve quality. 46 Annex 2: Major RelatedProjectsFinancedby the World Bank and otherAgencies 1. External assistance to education has increased since 2003 within an evolving framework of coordination. The World Bank has the greatest input in both financial investment and sector analytic work. The proposed Education Sector Project injects considerably more resources into the sector and is an organizing force sector-wide. The Project is a pathfinder for joint work on the development of a sector strategy and sector planning and financing work involving all sub- sectors o f education and the donor community. The prospect o f additional donor co-financing after Project effectiveness indicates that the Project's Steering Committee can be a model for a future, more ambitious SWAP that would increase and enhance the predictabilityo f support for the education sector longer term. 2. These future prospects are taking off from an exceptionally modest level o f donor financing ineducation. During2003-2005, education received less than five percent of all donor activity. Table A2.1 (below) presents an overview showing main sectors of focus and total levels o f disbursement. The total disbursed assistance provided by various donors amounted to about US$3.3 billion (excluding humanitarianaid, the total assistance was at US$2.2 billion) o f which investmentineducation was approximately US$60 million. 3. Preliminary estimates o f probable donor commitments under the Country Assistance Framework (CAF) show that the support to education should increase compared with its standing vis-a-vis other sectors in 2003 - 2005 (see Chart A1.2 below). The estimated US$250 million for education i s largely from the World Bank through the approved EUSRP's US$40 million component for primary education (grants to offset school fees) and the US$150 million proposed for this Education Sector Project. The balance inthe CAF education commitments i s largelythe 35 million (approximately US$47 million) Belgian Cooperation financial programming for education over 2008-2010, a third o f which i s earmarked for sectoral support in primary education. Other partners have not yet announced specific commitments, but DFIDhas signaled that it i s considering a significant contribution to co-finance this IDA Education Sector Project especially inregard to actions aimed at reducing primary school fees. 4. External partners' assistance ineducation focuses on primary education (see Tables A2.2 and A2.3 below), which i s consistent with the DRC's policy priorities and the global encouragement o f the MDGs and EFA. Apart from Belgium, the bilaterals (notably, Japan, Canada, Italy, Sweden, Switzerland, France, and the United States) on the whole are funding comparatively small-scale projects. On a similar scale, internationalNGOs typically integrate education among other activities intheir projects, mainly targeting provinces affectedby conflict. 47 Table A2.1: DRC- Donor activity all sectors -2003-2005 Aid (including Aid (excluding humanitarian) humanitarian) Donors Sectors Recent Trend Share Millions Share ("A) (us9 W) Netherlands CommunityDrivenDevelopment 184.8 6 158.5 7 No change (CDD), Disarmament, Demobilization& Reintegration (DDR), Humanitarian Belgium Capacity Building (CP), CDD, 153.5 5 146.3 Positive DDR, Health, Education, Humanitarian UnitedStates Agriculture, CP, CDD, DDR, 349.7 11 141.7 Negative Humanitarian, Environment, Education United CP, Humanitarian,Infrastructure 192.8 6 104.2 5 Positive Kingdom-DFID Other Bilaterals Budget support, CP, CDD, 277.4 8 198.3 9 No change Education, Health, Humanitarian, Democracy United Nations Agriculture, Humanitarian, CP, 561.0 16 200.0 9 Negative (UN)Agencies CDD, Health, Education, Democracy EuropeanUnion Agriculture, CP, CDD, DDR, 500.5 15 167.1 8 Negative (EU) Health, Humanitarian, Democracy, Infrastructure IMF CP, CDD 194.7 6 194.7 9 No change WorldBank Budget support, Agriculture, CP, 812.5 24 806.6 36 Positive CDD, DDR, Education, Health, [nfrastructure,Social Protection ~~ AfDB Budget support, CP, Agriculture, 89.0 3 83.0 4 No change Health, Education Total 3.315.9 100 2,200.4 100 48 Chart A2.1: DRC-Possible donor commitments* -- CountryAssistance Framework(millions of US dollars) GROWTH -OTHER ' COMMUNITY RECOVERY HEALTH GOVERNANCE GROWTH-TRANSPORT - GROWTH - POWER -- EDUCATION HIV/AIDS WATER AND SANITATION GROWTH-AGRICULTURE GROWTH - FORESTRY GROWTH - MINING SOCIAL PROTECTION * Amounts are basedon preliminary estimates, to be confirmed. 5. The support from multilaterals has been strategic in building alliances, as exemplified by the Protocol of Collaboration agreed in 2002 between the Government and EFA partners: UNESCO, the United Nations Development Program (UNDP), UNICEF, the United Nations Population Fund (UNFPA) and the World Bank. Of note i s that UNICEF has the longest standing, continuous involvement in education inthe DRC; it has been active in education since 1995. In 2005, UNICEF's portfolio was just over US$5 million. The African Development Bank (AfDB) is supporting UNESCO (UA 5 million) to carry out projects aiming at institutional capacity building. In 2006, the World Bank was instrumental in includingthe DRC as a focus country for the global (joint UNICEF-World Bank) initiative supporting the reduction of school fees ("School Fee Abolition Initiative"). The World Bank i s also leading efforts to assist the DRC to prepare a finding request to the EFA Fragile States Initiative to bolster ongoing work to generate a strategic longer term financing plan for the sector to accompany the country's future application for financing under the EFA-FTI. 6. This IDA Education Sector Project i s designed to complement the programs in education highlightedabove, to enable the DRC to achieve broader and more lasting progress inreversing the sector's deterioration. The proposed project builds on the regular Government and development partner consultation committee (Comite` de Concertation des Acteurs du Secteur de Z'Education en RDC) that is gainingprominence since 2003 as an informal avenue for ministries to re-engage in the sector with donors, to coordinate inputs more coherently. An education donor Round Table in September 2004 helped to consolidate consensus in favor o f 49 Government's decision to use HIPC funds to reduce school fees. As documented elsewhere in this Project Appraisal Document, the Round Table was a springboard for bolder policy statements on the elimination o f school fees which now figure in the Constitution and the Education Sector Policy Letter from the period o f the Transitional Government, and as part o f the mainpillars o fthe recovery programpromulgatedbythe newly elected Government. 7. The most distinctive advance the Project seeks i s in the reduction o f school fees. Whereas donors and international NGOs are unanimous on this priority and engaged in the policy dialogue, few partners have committed funding duringthe past few years. This i s partly because o f competing priorities to finance, for example, the election process. The largest existing program o f support for reducing school fees - apart from the World Bank's support - i s the USAID US$7 million 3-year pilot (2005-2008) that consists of financing community income generating activities to create and maintain local school funds to pay fees. The USAID program operates at sites inEquateur and SudKivuProvinces. Table A2.2: Main areas of multilateraland bilateraldonor assistance inthe educationsector Specific area Primary Secondary Technical- Higher supported Education Education Vocational Education Education Policy UNESCO,UNICEF, World Bank WorldBank development WorldBank, Belgian Cooperation,DFID, UNDP, USAID Education UNICEF, UNESCO management (financedby AfDB), World Bank School WorldBank, Japan, World Bank, Belgian WorldBank, Japan, UNHCR, infrastructure & USAID,UnitedNations Japan, Cooperation, UNDP equipment HighCommissionsfor UNHCR UNHCR, Refigees (UNHCR) AfDB Japan, Canada Teacher training UNICEF, USAID, BelgianCooperation,French UNESCO 1AfDB Cooperation Curriculum and UNICEF, Belgian textbooks Cooperation,UNESCO, EuropeanUnion Scholarships WorldBank, Belgian Cooperation 50 Table A2.3: NGOswith activitiesinEducation Name Main Education-relatedActivities Oxfam In Kinshasa and selected provinces: Oxfam supports local NGOs, community groups and schools to improve water and sanitation facilities including school latrines; and provides some financial support for teacher training and school committees. Care International Finances literacy programs for demobilized children in Maniema Province. Catholic ReliefServices (CRS) Provides support for primary education in Nord-Sankuru (Katako-Kombe, Lodja, Lubeh, Bena-Dibele), province o f Kasai'Oriental. Save the Children Finances literacy programs in the Western Provinces; reintegration o f demobilized children in Nord Kivu, Sud Kivu, Northern Katanga and Kasai` Oriental. War Child UK Supports programs o f social reinsertion for children who are victims o f armed conflict inthe Northern Equateur province. International Rescue Committee Institutional and financial support to local NGOs and social services in (IRC) education, literacy, remedial classes for disadvantaged children including street children, child ex-combatants, orphans inSud Kivu. Christian Aid Institutional and financial support to the DRC Civic Education Network activities and assistanceto street children inthe provinces o fNord Kivu and Sud Kin. 8. The proposed Education Sector Project links support for reducing school fees (in Component 1) with the critical imperative o f structural reforms in the civil service vis-a-vis the role of the private sector, to improve the overall conditions for teachers' salaries and career pattern (in Component 3). The key to success will be government's ability to use Component 3b o f the Education Project to continue harmonizing work - begunduring Project preparation-with other donors, other projects, and analytical work (e.g. PER, Governance and Public Service) which focus on governance and structural reforms in the public sector, especially in regard to the civil service salary system. The Education Sector Project contains activities to complement the civil service reform while the Project also uses that broader context to offset risks o f distortion if salary issues in education are treated in isolation. As part o f preparations, the Education Sector Project generated financing scenarios to outline a feasible roadmap for the Government to meet the public wage bill for teacher salaries as the system is progressively updated to incorporate teachers in government approved schools - who are currently being paid only through school fees. 9. The Project's support for Government to establish a sector-wide education strategy (in Component 3) concentrates financial and technical assistance on systemic financial and legal regulating functions o f the sector which must be reformed in order for institutional capacity building and further reform to be effective. This complements the emphasis o f the Comite` de Concertation (Cooperation Committee) to progress on a SWAP, as well as the discrete institutional capacity building activities o f UNESCO (training ministerial planning directorates, 51 inspectors, and school heads), UNICEF (training school heads and school-parent management committees for some 3000 primary schools in Bandundu, Bas Congo, Equateur, Kinshasa, Maniema, Nord Kivu and Sud Kivu) and to some extent the bilateral donors (e.g. USAID) and NGOs (e.g. OXFAM International). 10. UNESCO, with the AfDB support, is also working with the MEPSP Planning Directorate and SECOPE to improve education sector databasemanagement as well as to set the groundwork for a more comprehensive school mapping (carte scolaire). DFID intends to finance the technical assistance to complete the carte scolaire and a census o f teachers, to make up for the shortcomings o f the census conducted under the civil service reform. This i s harmonized with the proposed Education Sector Project to ensure the Government will meet disbursement conditions for the grants for teachers' salaries and subsidies for school operating costs. Related to the school mapping i s that the proposed Education Sector Project (in Component 1) will support the MEPSP to formulate new norms for low cost school construction so the DRC can more affordably go to scale nationally with a school construction program. Presently, since the DRC lacks a carte scolaire, the Education Sector Project's support for civil works inthe primary sector i s limited to rehabilitation o f existing sites. The rehabilitation builds on lessons learned and adds to the overall number of infrastructure rehabilitated through the education components o f several existing multi-sector projects financed by the World Bank (see Table A2.4), and the smaller scale investments inschool infrastructure by several o fthe bilateral donors. 11. Finally, the Education Sector Project's investmentintextbooks for mathematics and reading for primary grades one and two i s designed to complete the provision o f books in the same subjects for grades three to six by the Belgian Cooperation. Table A2.4. RelatedWorld BankProjects Projects ID# Effective Closing Amount Latest Objectives of Projects (US% IP/ DO million) Emergency Early PO75660 12/08/01 Closed 50.0 S I S The Project assisted the Recovery Government to: (i)strengthen Project institutional capacity and formulate economic policy; and (ii) address urgent needs including the pilot o f a higher education scholarship scheme to promote excellence ineducation. Emergency PO57296 11/08/02 12/31/08 454.0 s / s Aim is to (i)initiate a long-term Multi-Sector process for reconstruction and Rehabilitation& economic rehabilitation; (ii) Reconstruction prevent further deterioration o f Project social services - rehabilitating (EMRRP) schools, enhancing food security, delivering health care, restoring water, and energy supply ; and (iii) lay foundation for future policy and institutional reforms including the education sector. 52 Projects Project Effective Closing Amount Latest Objectives of Project ID# (US% IP/DO million) PrivateSector PO71144 12/02/03 04131110 120.0 s / s To increase the competitiveness Development& o f the economy and contributing Competitiveness to economic growth by assisting with: (a) improving the investment climate; (b) supporting reform of public enterprises in the mining, telecoms, financial, transport, and energy sectors; (c) stimulating economic diversification and development in the Katanga region through CDD approaches; and (d) facilitating the reintegration o f retrenched workers in the local economy through support for training, business development services and finance. Emergency PO81850 12/05/03 9130108 214.0 s / s Aim is to: (i)introduceor restore Economic& economic governance system and Social implement key reforms; (ii) Reunification complement actions underway to address urgent needs, finance rehabilitation in parts o f the country where no major economic assistance program has been under implementation; and (iii)prepareextensionofEMRRP to all partsofthe country. Post- PO82443 05/13/04 Closed 200.0 s / s The objective is to assist the Reunification Government with foreign Economic exchange to: (i)support the RecoveryCredit continued implementation of economic reforms; (ii) support civil service reform, and in particular the retirement of staff, and (iii)complete process of debt reduction and restructuring relatedto arrears. 53 Projects Project Effective Closing Amount Latest Objectivesof Project ID# (US$ IP/DO million) Multi-sector PO82516 10/08/04 01/3 1111 102.0 MS/U The objective is to mitigate the Human negative impact of the Immunodeficiency HIVIAIDS epidemic on the Virus (HIV) stabilization, recovery, and /Acquired Immune development of DRC by: (i) Deficiency reducing risk of sexual, Syndrome (AIDS) intravenous and vertical transmission of HIV; (ii) improving health status and quality of life of people living with HIVIAIDS; (iii) mitigating socio-economic impact of the epidemic on vulnerable groups. Includes support for micro-projects prepared by beneficiaries, including schools. Emergency PO78658 11/09/04 0313 1/08 100.0 U/MS Objectives are to help Demobilization consolidate peace and promote Reintegration economic stability and sustainable development in DRC and Great Lakes region by (i) demobilizing up to 150,000 ex-combatants and help support their return to civilian life, (ii) promote reallocation o f Government expenditure from military to social andeconomic sectors. Emergency Social PO86874 07126/05 0313 1/09 60.0 MU/ Aim is to (i)improve access of Action MU the poor to social and economic services, and (ii) increase availability and management of development resources at community level: education, infrastructure, incomegeneration(pilotbasis). Transitional PO91990 12/08/05 Closed 90.0 s / s Objective is to: (i) support Supportfor selected strategic targets of Economic Interim PRS, (ii) reinforce Recovery essential state functions especially for benefit of the underprivileged, (iii) help government consolidate policy achievements including reduction o f primary school fees, (iv) support improved governance in key sectors to ensure fiscal and environmental sustainability in the longrun. 54 Projects Project Effective Closing Amount Latest Objectives of Project ID# (US$ IP/ DO million) EmergencyLiving PO88619 09123IO5 09130110 82.0 S I S Aim is to assist in improving Conditions living conditions by Improvement strengthening the socio- economic situation in key urban centers by: (i)improving delivery of basic services including education in provincial capitals and medium urban centers, (ii) restore transport links to reconnecttwo isolatedregions. Health Sector PO88751 04/13/06 06130110 150.0 UIMU Aim is to (i)ensure that target Rehabilitation population of selected health support care zones has access to, and use, a well-defined package of quality essential health services, (ii) strengthen capacity of local communities, implementing partners and government officials at all levels of planning and monitoring. EmergencyUrban P104497 07110107 05131111 182.0 N A The aim is to help DRC face and Social (expected) urgent post-elections Rehabilitation challenges by: (i) providing Project (EUSRP) resources to maintain macro- economic stability and find critical expenditure in the immediate future; and (ii) address urgent rehabilitation and social needs in Kinshasa. US$40 million of the Project finances grants to offset school fees for operatingcosts. * IP=Implementation Progress; DO=Development Objective; S=Satisfactory; MS=Moderately Satisfactory; MU=Moderately Unsatisfactory;U=Unsatisfactory;NA=Not Applicable 55 Annex 3: ResultsFrameworkandMonitoring ResultsFramework OutcomeIndicators Prevent further deteriorationinthe Growth in GER from 64%3 in2007 Provide indicatorsto monitor delivery of essential services for to 75% in 2012 (totals and progress inreversing deterioration in primary educationand prepare disaggregated by gender). delivery ofprimary education groundfor a sustainable services, to put on track to pursue development and financing ofthe Increase inprimary education the MDGs. sector that will facilitate donor completion rate from 29% in2007 to coordinationand future transition to 35% in2012 (totals and Provide policy recommendations a sector wide program. disaggregated by gender). and costed programoptions, and baselinedata for an educationsector Increase girls to boys ratio in developmentprogram with a primary schoolfrom 85% in2007 to realistic financing plan that will 95% in2012. attract more ambitious level of funding from donors. Reform ofteacher career structure (training, deployment, salary and Monitor progress inMDG2 and incentives) approvedby the MDG3, the PRSP, andthe Government. Government's commitment to education. Educationsector strategy(including mediumterm financing plan) with indicatorsagreed with donorsand approvedby Government. IntermediateResults Results Indicators for Each Use ofResultsMonitoring One per Component Component Component One: Component One: Component One: Access and equity inparticipation in About 1570classrooms rehabilitated Monitor progress inrebuilding primary schoolare improved. and equippedwith desks by 2012. primary education. Draft guidelines for efficient use of resources for school construction on large scale. Compliancewith Arr&te`(bylaw) on Follow-up on Government's abolition ofprimary schoolFDF as commitmentto fee-free primary measuredby annualCRC surveys education. that show reduction inschool fees from first surveyto last survey. Monitor progress toward the MDG goals. Data is from Government sources and subject to wide margin of error (see World Bank, 2005b); will be verified and indicatorsrevisedas appropriate. 56 Component Two: ComponentTwo: ComponentTwo: Quality ofeducationservices offered About 11milliontext booksand Assess availability of textbooks in inprimaryschool is improved. 278,000 teachers' guides inreading the schools andto measureimproved and inmathematicsfor primary efficiency inthe system. grades 1and2 producedand distributedto schools achievinga Buildpartnershipbetweenthe public ratioof 1textbook per student and 1 andthe private sectors as well as textbook andthe corresponding address the issuesoftextbook guideto eachteacher byend o f publishinginnationallanguages. Project. Assess quality aspects, including In-servicetraining inuse o f accountability relations, in primary textbooksreaches80% ofprimary education. inspectorsandschooladvisersby end o fProject. The Governmentadoptsanupdated textbook policyby 2011andbegins implementationbeforeend of Project. CRC surveyshows improvementsin quality as measuredby less teacher absenteeism, increased availability o ftextbooks, improvedresponse from schools to parents' concerns. Nationalpupillearningassessment mechanismfor grade 4 o fprimary is inplace. ComponentThree: ComponentThree: ComponentThree: Educationsystem legal, institutional, A newteachers' statute is approved Monitor improvementsinpolicy andfinancial capacity is bythe Governmentand reforms, e.g. civil service/teachers strengthened as a foundationfor implementationhasbegun. career inthe educationsector. developmentinthe educationsector. Reformedguidelinesfor pre-service Draftguidelines for supportto and in-serviceteacher training are teacher trainingandto definenew developedand are beingapplied. career profiles. Loi cadre (organic law) andthe Monitorstrengthenedaccountability Conventionof Partnershipsare relationshipsbetweenschools and updated or replacedby2011. policylevels. An educationsector strategyand The educationsector strategyis an mediumterm financing planhave essentialfoundation for harmonizing beenapprovedbythe Government. internationalsupportandmobilizing domesticand externalresources. 57 u 3 i? a .53 .e B m m Annex 4: DetailedProjectDescription 0 COMPONENT 1: IncreaseAccess and Equityat Primary Level . (Estimated costs, including contingencies: US$lO4.52 million) Sub-ComDonent la: Rehabilitate Primary school infrastructure (Estimated costs, including contingencies: US$28.73 million) 1. Issues: School infrastructure inthe DRC is extremelydegraded, andthe deteriorationis most acute in the war-torn areas o f the North and East. Government estimates that 750 primary schools would need to be rehabilitated each year over 2007 - 2010, to strike a pace capable o f reaching the MDGs in 20-25 years. Government lacks the capacity to respond. This i s partly because o f a funding shortfall; partly because unit costs (US$lO,OOO per classroom) o f construction using the current norms and standards are too high to make economical use o f resources. Many communities have constructed classrooms at lower cost, but assessments show that few community sponsored structures are durable. There i s also a need to retrofit nearly all the more than 26,000 existingprimaryschools with functioning latrines. 2. Objective: (a) improve access to primary education by restoring severely deteriorated classrooms so they can be brought back to use, rehabilitating a proportionally greater number o f classrooms in areas o f the country which were most affected by conflict, and (b) establish a sustainable national strategy for school rehabilitation and construction that will keep pace with increases inprimary school enrollment. 3. Strategy: The Project will rehabilitate school infrastructure in existing Government- registered schools, staffed with teachers. In the first eighteen months o f the Project, a classic approach will be used whereby tenders are issued and the selected contractors will follow the existing school building norms and standards. This approach i s being used to execute the education sub-component o f the EMRRP that aims to rehabilitate 126 schools in approximately four years. Also inthe first year o f the Project, the Infrastructure Directorate o f the MEPSP will be assisted ina technical reviewo f norms and guidelinesto propose appropriate school building options emphasizing low-cost durable techniques which will be more economical to scale out rehabilitation nationally. Validated results o f this study will be incorporated into the second batch o f rehabilitation under the Project. The Project midterm review will particularly assess progress in remote access areas and recommend any further adjustments in the rehabilitation strategy. 4. TheProjectwill finance: (a) Studies and technical work: (i)one study on norms and standards for low-cost construction; (ii) an evaluation o f existing experience in the DRC involving community participation, which will especially assess governance structures for managing funds and technical/logistics management; (iii) preparation, printing, distribution o f a maintenance manual for school buildings and furniture to schools. The manual will be distributedin training workshops at provincial level, which the Project will also finance. (b) Rehabilitation o f about 1570 classrooms (approximately 260 schools); the directors' offices and latrines; equipment (desks, storage closets for textbooks in each rehabilitated school). 62 (c) Capacity building for the Infrastructure Directorate o f the MEPSP in (i)strategic planning, emphasizing low-cost techniques, (ii) financial and procurement management for contracting out large-scale civil works to private enterprises, (iii) mechanisms for contracting through a decentralized community-managed school construction and rehabilitation approach; and (iv) maintenance, with attention to the respective roles o f . central, Provincial and school-level authorities. Sub-Component1b :Rehabilitate theNationalPedagogical University (Estimated costs, including contingencies: US$3.38 million) 5. Issues: The National Pedagogical University(UPN) i s the only highlevel research institution that i s exclusively focused on education. It trains personnel for the Pedagogical Institutes (Instituts Supe'rieursPe'dugogiques) which train secondary school teachers. The UPN has also begunto offer doctoral programs inpedagogy. The University conducts research and i s a focal point for donor technical assistance for the sector since the university can be contracted for tailor made training programs. The UPN resources are important, in view o f the studies and pilot programs expected in the future education reforms inthe DRC. The UPN is constrained by the lack o f facilities and equipment; its physical infrastructure i s severely degraded. 6. Strategy: Rehabilitate the classroom blocks, latrines, and offices which are essential for training trainers for teachers inthe education system. 7. The Project will finance: (i) rehabilitation o f classroom blocks, latrines, and offices related to core in-service training and, (ii)equipment (desks for students, specific equipment and pedagogical materials for in-service training laboratories). . Sub-ComponentIC : Improve Equityo fAccess to Primary Education (Estimated costs, including contingencies: US$70.10 million) 8. Issues: Fee-free primary education i s a pillar in the Government's pro-poor strategy. The national Constitution stipulates that primary education i s obligatory and fee-free. Government has not built up domestic resources to implement this. Some fees were waived on a limited geographic basis for girls enteringprimary school inthe first year. This was accomplished with UNICEF support. For academic years 2004-2005 and 2005-2006, the Government used HIPC resources to offset a portion o f the fee for school operating costs (FDF) and intends to continue this practice through July 2007. A bolder step was taken through the ministerial bylaw (Arrgte' No MINEPSP/CAPIMIN/6635/2205 dated September 3,2005) that abolished all but four fees as from academic year 2005-2006. However, the reality on the ground i s that fees are still being charged as they cannot simply be abolished without replacement income. The strongest prospect for significant, sustainable progress inphasing out primary school fees is, as argued elsewhere in this document, to obtain support from external partners to help fill financing gaps over a period in which Government progressively increases the education sector allocation of the national budget. External partners support this strategy, provided there i s a clear roadmap. This needs to be based on a number o fpolicy decisions, including: timing o f steps to increase the allocation to education from the national budget, teacher salary policy (which i s tied to ongoing civil service reform), improving efficiencies (e.g. increasing pupil-teacher ratios inprimary), and striking an adequate balance betweenpublic and private sectors inthe delivery o f education services. The Project finances capacity strengtheningactions to prepare and adopt neededpolicies. To guide 63 and anchor the effort, Government has prepared a Letter o f Education Sector Policy, in addition to the PRSP document, and has agreed as a condition o f effectiveness for the Project to issue an inter-ministerialArr&te` (bylaw) to establish which fees are allowed, andtheir amounts. 9. Objective: The objective i s to assist Government to keep up the momentum and concrete results from its policy to eliminate primary school fees. 10. Strategy: The Project will focus on the largest fees households have been paying and will provide cash transfers on a temporary basis i.e. over the lifetime o f the Project ina two-pronged approach to help Government make up for revenue lost from fee income. 11. The Project will finance: expenditures to empower the government to (i) eliminate parents' monetary contributions to sustain operating costs for primary schools; and (ii) integrate 30,000 primary school teachers into the public payroll for public primary schools. These are teachers who are already operational on the ground and who are in the pipeline, according to agreed criteria, to be financed through the public sector pending availability o f funds. Presently these teachers are financed by fees collected through the FDM. Project support will apply to primary teachers only, inkeepingwith the focus on the MDGs. Project funds for this sub-component will be channeled through the country's mechanism for paying teacher salaries. Conditions for disbursementwill apply, as specified elsewhere inthis document. 12. The Project will also support strengthening accountability and empowering local communities to participate in school-level decisions. Citizen's Report Cards (CRCs) aim to permit students and parents to assess primary education along basic quality dimensions. Annual CRCs will also be used as instruments for monitoring reductioninschool fees and improvements in quality o f service delivery. A Needs Assessment o f training needs for parent committees, PTAs, and teachers' trade unions will establish a program at local levels for strengthening their capacity for planning, budgeting, financial management, and fighting corruption. The objective i s to empower school communities to work better in their function as oversight bodies, and strengthentheir abilities to influence school management inmore efficient ways. Inaddition, a communication strategy that covers all phases and components o f the Project i s proposed. The strategy i s to facilitate both the flow o f information and the dialogue on the fee policy, governance, corruption, and service delivery issues. The Project will assess compliance through technical audits, including focus group discussions with school management and parent committees. Additional support activities are insub-component 1d. 13. Through parallel measuresinComponent 3, the Project will assist Government inimproving internal efficiency and raising the cost-effectiveness o f the education system, particularly as regard to the pupil-teacher ratio. The aim is that by Project close, the domestic budget can sustain the 30,000 additional primary teacher salaries with no co-financing fiom parents and minimal or no funding from external donors, as well as ensure that the FDF and the FDIP are abolished without a rise inother fees to compensate at school level. . Sub-component Id: StrengthenSafeguards inthe Teacher Pay System (Estimated costs, including contingencies: US$2.31million) 14. Issues: The Service de ContrGle de la Paie des Enseignants (SECOPE) at MEPSP i s the agent designated to assist the Budget Ministryfor payment o f teachers' salaries. SECOPE also facilitates transfer o f Government's block grants to schools to subsidize the FDF. The latter i s helping to restore public confidence in the Government as it re-engages in the sector. The 64 SECOPE database on teachers and schools i s vital for education sector management and planning, yet i s maintained on out-of-stock hardware (computers) and software (COBOL). The risk of breakdown is imminent. The consequences would be serious including possibilities o f civil unrest ifteachers were not paidbecause o f the size o f the teaching corps, the strength o f the teachers' unions, and the influence of the religious organizations which are managing the majority o fpublic schools. 15. Objective/ Strategy: Strengthen safeguards in the Government's teacher pay system by strengtheningSECOPE and capacity in other relevant ministries(e.g. Budget), ensuring that the support underthis Project complementsand i s integratedwith the support providedthrough other sources (inter alia, UNESCO, Belgian Cooperation, the IDA-financed EUSRP). 16. The Project will finance: services to enhance safeguards in the Government's teacher pay system through: (i) strengthening SECOPE's capacity at the central and provincial level in the field o f database planning and management, as well as resources management and monitoring; (ii)providing goods (upgraded computers, software, and internet connections for the SECOPE central and Provincial offices) and (iii)carrying out o f information and communications campaigns on the policy to eliminate primary school fees; (iv) training o f parent groups in monitoring the fee-free policy for primary schools; (v) transportation costs o f audits comprising mixed teams from the Ministries of Finance, Budget and EPSP, and independent third party observers); and (vi) carrying out o f two Public Expenditure Tracking Surveys (PETS) o f payments of salaries for primary education teachers and fees for operating expenditures in primary education. One PETS will establish baseline conditions. A second PETS will follow in the Project's fourth year. a COMPONENT 2: Improve Quality of Primary Education (Estimated costs, including contingencies: US$28.76 million) 17. Objective: Contribute to improving quality and internal efficiency o f primary education, by: (i)improving the availability o f textbooks and teachers' guides in core subjects; (ii) providing in-service teacher training in the use o f textbooks; (iii) building capacity to assess learningachievement nationally. Sub-Comuonent2a: ProvideTextbooks (Estimated cost, includingcontingencies: US$26.0 1 million) 18. Issues: The DRC education system i s markedby a shortage o f textbooks and other learning materials. The shortage i s especially acute at the primary level. Most primary schools have no textbooks. In some areas, pupils complete their primary school without seeing a printed word. The MEPSP has a Curriculum and Learning Materials Division and a Committee for textbook evaluation and approval. These units need to be strengthenedin order for DRC to achieve the important next steps in building its domestic capacity to assure an adequate availability of textbooks and other learningmaterials inschools. 19. Objective: To address the shortage o f textbooks, the Belgian Cooperation provided textbooks in reading and mathematics for primary grades 5 and 6. The books were purchased off-the-shelf and distributedthroughout the DRC during school year 2004-2005. The Belgian Cooperation has also decided to provide textbooks for grades 3 and 4 for school year 2007-2008. The objective of this sub-component is to provide textbooks and teachers' guides for grades 1 65 and 2 in the same subjects. The sub-component will also build capacity in the Curriculum and Learning Materials Divisionfor textbook evaluation, selection, procurement, and distribution. It will also helpthe MEPSP produce a new textbook policy that will lay out the responsibilities o f the public and private sectors as well as address the issue o f textbook publishing in national languages. 20. Strategy: Inorder to provide primary schools with textbooks, which conform to the primary school curriculum o f year 2000, existing titles will be selected and adapted. International and national publishersand authors will be invitedto propose titles for selection. Giventhe country circumstances, the sub-component will adopt the approach o f the Belgian Cooperation and select one title per subject/grade. The adaptation, production and delivery o f the books to the regional education offices (PROVEDs) o f the selected titles will be procured through international competitive bidding. Distribution from the regional education offices to the schools will be entrusted to transporters and distributors selected through national competitive bidding. The books will be the property o f the individual schools, which will loan them to pupils and teachers free o f charge. Each pupil will receive a set o f 2 textbooks (1 inreading and 1 in mathematics). Each teacher will receive a set o f 2 textbooks and the corresponding teachers' guides. The sub- component will also train inspectors, school advisers, and school directors in the use o f textbooks. It will prepare, print and distribute to schools a manual inthe care and management o f textbooks. It will develop a database in the MEPSP to track textbook stocks in the schools. The sub-component will build capacity in the Curriculum and Learning Materials Division in textbook evaluation, selection, procurement, and distribution on the job. It will also organize: (i) study visits to selected countries with good databases for textbook stocks tracking; (ii) training in evaluation o f textbook content; and (iii) training in definition o f textbook pedagogical and technical specifications. The sub-component will also conduct a book sector study to provide background documentation for the formulation o f national textbook policy. 21. The Project will finance: (i) acquisition o f about (a) 11 million textbooks inreading and in mathematics for primary grades 1 and 2 and (b) 278,000 teachers' guides in the same subjects; (ii)training ofinspectors, school advisers andschool directors inthe use oftextbooks; (iii) production and distribution to schools o f 172,000 manuals in the care and management o f textbooks; (iv) establishment o f a database to track the textbook stocks in the schools; (v) carrying out study tours to selected countries with good experience in developing databases to track textbook stocks inthe schools; (vi) training o f the MEPSP staff in evaluation o f textbook content; (vii) training in definition o f textbook pedagogical and technical specifications; and (viii) carrying out o f a book sector study aimed at gathering relevant information and knowledge . to develop and implementan adequatenational textbook policy. Sub-component 2b: BuildCapacity to Assess Learning Achievement (Estimated costs, including contingencies: US$2.75 million) 22. Issues: Quality i s low inthe DRC because o f inadequate inputs, although this has not been assessed empirically. The monitoring o f students' and teachers' performance i s hampered by the lack o f systematic assessments and incentive mechanisms to improve students' learning. The present learning assessment system relies almost exclusively on grade repetition and the examination at the end o fprimary school for indicators o f students' achievement. Because o fthe widespread practice o f topping up exam fees with "motivation payments" to proctors, pupils' examination results may indicate more the ability to pay rather than actual learning achievement. 66 Other achievement tests are ad hoc. The existing program lacks sufficient diagnostic learning assessment methods and tools. Fewteachers are trained, intheir everyday use inthe classroom, to assess pupils' learning needs as a way o f monitoring the quality o f schooling outcomes, which would help make the system learning-driven and promote retention in school, the core result expected by the MDGs. 23. Objective: Build up domestic capacity to establish a culture o f defining and monitoring standards for educational quality, and specifically to assess primary school students' performance against those standards. These activities will also provide outcome indicators o f the Project's inputs (e.g., textbooks, teacher training) against baseline conditions, and assist Government indeveloping further strategies. 24. Strategies: Strengthendomestic capacity (UPN, Inspectorate) to institutionalize assessments o f learning achievement and research on learning and retention inschool to establish a culture o f monitoringthe quality o f education inDRC. The activities will buildout from the modest, donor led standardized achievement tests at grade 4 o f primary school (which provide important baseline data) to establish a partnership between the UPN and the Inspectorate who would administer the assessments. The Project activities will also broaden the assessment efforts, to include research on the relationbetweenquality, learning achievement, and retention inschool. 25. The Project will finance: (i) internationaltechnical assistance to train relevant staff at UPN in research on learning achievement, statistical sampling, diagnostic learning assessment tools and assessment design, including for the preparation o f the survey to be carried out inprimary education; (ii)establishing capacity within UPN to provide baseline information on learning achievements in primary schools; and (iii) carrying out two rounds o f assessments in selected primary schools. 0 COMPONENT 3: Strengthen Institutional and Financial Capacity of the Education Sector (Estimated costs, including contingencies: US$5.06 million) 26. Issue: The education sector capacity to implement its development agenda i s severely compromised by the lack o f a functional legal and institutional structure. There are large discrepancies between the formal legal framework, mostly a sequel o f the centralized government o f the pre-war period, and actual practice, shaped in large part by ad-hoc responses to years o f government neglect and unmet needs. A key result o f this evolution i s the change from state to mostly household financing o f education. Re-establishing the previous regulatory framework i s not economically viable and would furthermore miss the opportunity to forge a beneficial partnership with the components o f society (e.g. religious organizations) which sustained education intimes o f crisis. This cannot be done without developing a clear response to the teachers' insistent demand to renegotiate the terms o f their work contract. Nor can it be done outside the framework o f a sector strategy that sets goals, defines priorities and funding responsibilities, and allocates public resources according to stated objectives. Finally, it cannot be done inisolation from the structural reforms which are beingimplementedat the macro level, including the public expenditure reform, civil service reform, and decentralization reform. 27. Objective: This component will contribute to revisingthe legal and institutional framework o fthe education system, and reinforcing institutional capacities for planning,budget formulation, and program execution in pivotal areas for the sector including teacher career structure and 67 teacher training, and the development o f a sector wide medium term strategy for education, buildingonthe PRSP goals and integrating long-term financial constraints. Sub-Component 3a: Support Policy Reform o fTeacher Career Structure (Estimated costs, including contingencies: US$O.91 million) 28. Issues. One o fthe most disastrous impacts o fthe crisis inthe 1990s and the years o f conflict i s the continuous and concomitant decline inthe teachers' morale and professionalqualifications. Existing teachers' pre-service and in-service training methods and quality do not confer sufficient professional expertise. The pre-service training o f primary school teachers i s mostly provided by the 4000 secondary schools which have a 3-year pedagogical stream (humanite`s pe`dagogiques) o f theoretical training that follows an initial 3-year common program for all secondary school students. The quality o f the humanite`s pe`dagogiques i s widely seen as mediocre. On-the-job training and skill upgrading opportunities are scarce, irregular and depend mostly on donor-funded projects. Teachers also resent the vulnerability o f their compensation system, which lacks retirementbenefits and relies heavily on financial contributions from parents that recently have come under attack from many parts. 29. There are three principal issues which are interconnected and which need to be dealt with jointly: i) Inadequacy o f primary school teachers' knowledge o f subject content and didactic skills, which require a significant overhaul o fthe selection and training methods; ii) Theneedtolinkthisoverhaultoanewandimprovedsocialandprofessionalstatus ("revalorisation"). This improvement should not be limited to salary issues, but rather adopt a broader approach that includes stricter selection criteria, better defined career structure, and promotion and other incentives linked to both academic achievement and actual performance. iii) Finally, former graduatesofthe "humanite`spe`dagogiques, who will continue to " constitute the bulk o f the profession for many years to come, will likely block this reform unless it i s accompanied by easily accessible skill upgrading programs, which would enable them to make progress toward the new professional standards and seek a certification at this level. 30. The magnitude o f these issues i s too great to treat them simply from the perspective o f a more favorable compensation system. The deficiencies are structural and institutional, and must be addressed at these levels. There is no consensus among education authorities on a vision for reform, although there is noticeable support for transforming the humanite`s pe`dagogiques into a system o f Ecoles normales (EN, Teacher training schools) to strengthen the base o f initial professional training. Proponents are inspired by pilot activities which began in the 1980s in three schools, although these pilots dissipated without proper evaluation. 31. Objective:This sub-component will assist the preparation o f a policy to be adopted for the reform o f pre-service and in-service teacher training. The policy will also recommend a career structure and links between professional training, actual performance and salary levels for education staff. Expected results from this component are: (i) a new statute on teachers' careers and salaries, formulated and adopted within the civil service reform; (ii) a plan to modernize the system o f pre-service teacher training; and (iii)strategy and action plan for in-service teacher a 68 training with the view to providing certification in line with the new statute and guidelines on teacher qualifications. 32. Strategy: The recently initiated civil service reform provides a unique opportunity to rethink the career structure of primary school teachers and link it with an upgraded system o f professional training and standards. The new training policies supported under the Project will be formulated intandem and linkedwiththe Government's redefinition o f the career structure o f teachers within the ongoing civil service reform. The Project will support policy dialogue and coalition building, and analyses to prepare the policy reform. Specifically, a high-level structure (possibly a National Commission) will be created to review the career structure and reward system for teachers inthe context o fthe education system's renewal and the broader civil service reform. Membershipo f this structure (Commission) will include stakeholders including religious organizations andteachers' representatives, inaddition to Government. 33. The Project will finance: technical advisory services to support policy reform inthe field o f pre-service and in-service teacher training, including inter alia: (i) analysis o f existing resources and reform options for pre-service teacher education; (ii) evaluation o f existingin-service teacher training experiences and options for scaling up; (iii) feasibility studies for reform, including study tours in selected countries; (iv) assistance to a structure (National Commission) to be created to review the career structure and reward system for teachers and draft the policy document on the proposed reform; and (v) information and communication activities to help buildnational consensus on reformproposals. 9 Sub-Component 3b: Support Preparation o f a Sector-wide Education Strategy (Estimated costs, including contingencies: US$4.15 million) 34. Issues. Many action plans have beendeveloped over the emergency recovery period. These include the EFA Action Plan and the Pacte de Modernisation de I'Enseignement Supe`rieur et Universitaire (PADEM, Pact for Modernizing Higher Education). Yet, many issues persist to challenge the formulation o f a coherent sector wide strategy: (i) the legal framework for the education sector i s no longer appropriate, (ii) multiplicity o f project, program and reform the proposals fragments the sector and sets up competing rather than prioritized needs, (iii) few action plans are based on realistic cost projections that integrate domestic financing constraints, (iv) large parts o f the sector, especially higher education and non-formal education, lack reliable development plans and finally (v) there i s no agreement on a resource allocation formula between sub-sectors that would confirm the priority o f primary education while recognizing the needto find core programs inother sub-sectors. Government has demonstrated highpriority for addressing these issues in the Transitional Government's overall Letter o f Development Policy and the education pillar inthe new government's recovery program. 35. Objective: This sub-component will put inplace a process that aims to (i) consensus reach on a more appropriate legal framework, which clarifies the role o f the state and formally recognizes the current partnership arrangements with the religious organizations and the families with respect to school management and education financing, (ii)fill in current gaps in the education strategy and (iii) establish priorities and rigorous financing plans. By the end o f help the Project an education sector strategy linkedto a realistic long-term financing plan and backed by an initial Medium Term ExpenditureFramework (MTEF) and three annual updates will have beenproduced. 69 36. Strategy: This sub-component will be carried out through a series o f linked actions, overseen by a national level structure (possibly a second High-Level National Commission, HLNC). The work will be carried out infour separate sequences. (i) Sequence 1: the Legal Framework. A reformed legal framework constitutes the foundation o f the sector strategy and should be undertaken as priority. Activities duringthis , first sequence will aim to generate recommendations to Government, to be taken into consideration in completing the revision o f the loi-cadre (organic law), which dates from 1986, and the partnership conventions between the state, the churches and other religious organizations, which date from the late 1970s. with(ii) Sequence 2: Filling in the Knowledge Gaps. While undertaken concomitantly Sequence 1, this second sequence i s nonetheless independent and consists in: (a) producing a national policy on non-formal education (essentially adult literacy programs) and recommending an execution strategy based on pilot activities to be tested and evaluated with resources from the Project, and (ii) completing the reform agenda o f PADEM by producing an overall financing strategy for higher education and agreeing on internal reforms to improve efficiency. (iii) Seauence 3: Building Capacity for an MTEF. A team will be trained in MTEF design data collection and financial modeling techniques. An initial MTEF should be produced within eighteen months o f this activity start and will be updated yearly. Outcomes from previous sequences will feed into the yearly MTEFs. (iv) Sequence 4: Stratem Development. This sequence uses results from previous activities to set goals for the education system, priorities and credible financing plans. It i s essentially a consultation and consensus-building phase. 37. The High-Level structure (High-LevelNational Commission, HLNC) will be composed o f representatives from the MEPSP, the MESU, the MASSN, the Ministryo f Finance, the Ministry o f Budget, the Ministry o f Planning, the Ministry o f Civil Service and representatives from key stakeholders. A precursor technical committee for the HLNC was established during Project preparation. 38. The Project will finance: support to the formulation and implementation o f (i)a comprehensive education strategy including an appropriate legal framework and financing plans for all relevant sub-sectors including primary, secondary and higher education and literacy programs; and (ii) pilot programs designedto increase literacy and school remediation across the country; as well as (iii) establishment o f an appropriate structure comprising representatives the o f relevant institutions and education sub-sectors, including primary, secondary and higher education and literacy to oversee the formulation and implementation o f the comprehensive education strategy referred to above; (iv) carrying out o f workshops, seminars, publicity campaigns and technical audits aimed at disseminating the new comprehensive education strategy and fostering sustainable dialogue between key stakeholders in the education sector including parents, teachers, school administrators and representatives o f civil society; and (v) carrying out o f studies designed to promote equity and to improve school achievement rates including inter alia: (a) a feasibility study to establish a sustainable and efficiently performing students' transportation scheme; (b) a nutrition study to supplementstudents' nutrition withinthe school environment; and (c) a health study aimed at sustaining good health for students within the school environment. The technical assistance will include support for updating the Zoi cadre 70 (organic law) to define the roles and responsibilities o f the State at all levels, the religious organizations, rural and urban communities and parents in financing and managing schools; as well as financial modeling techniques and designing a Medium Term ExpenditureFramework (MTEF). 0 COMPONENT4: Proiect Coordination andManagement (Estimated costs, includingcontingencies: US$11.17 million) 39. The Project will strengthenproject managementand coordination o f the Steering Committee comprised of the MEPSP, the MESU, and the MASSNwith an increment in resources required to operate a Project Management and Coordination Unit (PMCU) described elsewhere in this document. The Project will also provide financing for the acquisition o f technical advisory services, computer equipment, office materials, supplies and vehicles required for the Project; and the provision o f training (including study tours) to enhance the capacity and expertise of the ministrystaff involvedincarrying out the Project. PPF:(US$1.O million) 40. An IDA-approved Project Preparation Facility (PPF) was under implementationto complete activities requiredfor readiness for Project implementation. The PPF was to be managed by the BCECO, but following the INT general investigations in the DRC, the government and IDA agreed instead that an implementation unit that already manages another IDA-financed operation in the DRC would handle procurement and financial management for the PPF under a Grant Agreement with IDA, and a service contract with the above-mentioned Steering Committee (see Institutionaland ImplementationArrangements, elsewhere inthis document). 71 Annex 5: ProjectCosts ProjectCost by Componentand/or Activity usLocal million usmillion Foreign usTotal million Component 1:IncreaseAccess Primary School 20.5 77.3 97.8 Component2: Improve Quality Primary Education 8.9 16.8 25.7 Component 3: Support to Education Sector 2.9 1.4 4.3 Management Component4: Project Operating Costs 10.0 3.7 13.7 PPF 0.9 0.1 1.o Total Baseline Cost 43.2 99.3 142.5 Physical Contingencies 2.2 1.o 3.2 Price Contingencies 3.8 1.o 4.8 Total Project Costs' 49.2 101.3 150.5 Interest during construction Front-end Fee TotalFinancingRequired 49.2 101.3 150.5 'Identifiable taxes and duties are approximately US$0.5 million, and the total project cost, net of taxes, i s US$150 million. 72 Annex 6: ImplementationArrangements 1. Project execution directly involves three ministries. These are the Ministry o f Primary, Secondary and Professional Education (MEPSP); the Ministry o f Social Affairs and National Solidarity (MASSN); and the Ministry of Higher Education and Universities (MESU). At Project start, the ministries do not have technical capacity that conforms to World Bank standards. Some functions will therefore be contracted to specialists to assist with Project implementation, overseen by a Steering Committee (SC) o f the ministries involved in Project execution. As part of Project implementation, the Ministries' and other stakeholders' capacities will also be strengthenedthrough training and mentoring, systematically involving them in the execution processeso fthe Project. 2. Among the functions which will be outsourced through a Procurement Agent is the procurement for all civil works and school furniture, textbooks, computers, laboratory equipment, vehicles and all consultants. A second function that will be strengthened by contracted services i s the financial management o f the Project at the Project Management and Coordination Unit (PMCU). 3. The PMCU i s the execution arm o f the SC. The SC will ensure overall transparency in decision making processes for the Project as well as mechanisms which coordinate multiple ministries inProject execution. For example, the Ministryof Finance and the Ministryo f Budget have a direct role inexecuting the Project's support to reduce primary school fees since this will use the country's system for the payment o f teachers' salaries. The relationships are outlined in Chart A6.1 below. The Project Steering Committee (SC) 4. The SC, which was created during Project preparation by an inter-ministerial bylaw (Arr2te` Inter-Ministeriel EPSP-ESU-AS No0510/2005 dated 26 January 2005) prescribed that there be representatives of: MEPSP, MESU, MASSN. The Government subsequentlydecided to increase the membership to include representatives from the Ministries o f Finance and Budget and the Arrite` (bylaw) will be amended accordingly. The SC is chaired by the Minister o f Primary, Secondary and Professional Education since the bulk of Project resources are inthis ministry's domain. As the SC i s the decision making body for the Project, its responsibilities include: (i) coordination o f the Project activities with Government strategy, policy development, and relations with other development partners; (ii) approving the Project's annual work plans and budgets; and (iii)providing strategic guidance for efficient execution o fthe Project. The SC i s to meet at least once a calendar quarter. 73 Chart A6.1 OverallProjectManagement Decision Level Ministry o f SocialAffairs Higher E d u c c ---- Ministry of ~~ Universities (MESU) I-- STEERING COMMITTEE Secondaryand Professional Education 1 f v Project and Management and Coordination Unit (PMCU) eG1 MEPSP ?4 MASSN MESU I SECOPE Planning PlanningDirectorate Directorate PlanningDirectorate I I I I I I Literacy Directorate Civil Works School Infrastructures Directorate National I I I Pedagogical I University Program and Didactic Material Directorate Provincial Directions ProvincialDirections Provincial Directions andlocal services and local services and local services 1 I 1 I .3 3 % 2 E 'E Stakeholder and Development Partners 1 I " a 3 / 74 TheProjectManagementand CoordinationUnit (PMCU) 5. The PMCU will be created under the SC to handle Project execution on a day-to-day basis. The PMCU management and procedures will be described in the Project Operations Manual, prepared with World Bank assistance according to international standards. The PMCU will be the Bank's main counterpart and focal point for implementation o f the Project. The PMCU will be responsible for all aspects o f financial and technical management including: (i) preparing and costing detailed annual implementation plans based on the Action Plans approved by the SC; (ii) managing Project resources (including financial management, managing the contract with the Procurement Agent); (iii) recruiting external auditors; (iv) monitoring implementation progress and impacts, (v) compiling activity, evaluation, financial and audit reports; (vi) coordinating with technical departments o fthe MEPSP, MESU, MASSN, Ministry o f Finance, Ministry o f Budget, Civil Service Ministry; and (vii) ensuring coordination o f Project activities with those o f other international and domestic partners. 6. The PMCU (see Chart A6.2) will retain staffing resources appropriate to its level of operations, and sufficient to maintain accounting records relating to project financed transactions, and to prepare the project's financial reports. Personnel will be recruited on a competitive basis and will include: (i) a National Coordinator; (ii) international accounting an firm for financial control and internal audit of the Project; (iii)team o f nationals comprising a a CFO, an Accountant, and a Treasurer; (iv) a Civil Engineer; (v) an Operations Officer specialist in Monitoring and Evaluation; (vi) a specialist in Information Technology; and (vii) support staff. The external auditing function will be contracted out. ChartA6.2 ProjectManagementand CoordinationUnit (PMCU) [ National Coordinator iI International Support Staff Accounting Firm AdminAssistants (2) Internal audit Drivers(3) 1 I I / National firm Civil Engineer Operations Financial Officer: Management Monitoring & CFO Evaluation Treasurer Accountant 75 PMCUcooperationwith importantMinistriesfor implementation: 7. Whereas the PMCU will be responsible for all aspects o f technical execution and financial management o f the Project, it will work together with staff o f several ministries and their decentralized levels o f administration that will help guide and monitor the various processes o f introducing, implementing,and monitoring Project financed activities intheir respective areas: The MEPSP technical departments and General Inspectorate at the central level will participate and benefit from in-service training related to the textbook program o f Component 2; the technical departments o f MEPSP and MESUwill participate inand benefit from, respectively, the rehabilitation and provision o f equipment for primary classrooms and the National Pedagogical University (Component 1); UPN and the General Inspectorate will benefit from the learning assessment and related research (Component 2); The MASSN, benefiting from technical assistance under the Project, will lead in developing the national literacy policy and pilot literacy activities; Central level and Provincial education authorities, school heads and management committees will benefit from institutional strengthening financed by the Project; this will particularly benefit SECOPE as a measure to reinforce the teacher salary payment system and mechanisms for block grant transfers to schools, and as a measure to improve the information management system in the education sector. Central, Provincial and local authorities and school level committees will also be involved in all phases o f the school rehabilitation program that will function on a national basis. The technical departments o f MEPSP, MESU,MASSNand the Ministries o f Finance and Budget who participate in strategic analysis of budgeting and financing for the education sector as a system will benefit from technical assistance under the Project (Component 3); The MEPSP, MESUand MASSN, from whom certain staff will be designated by the SC to be trained under the Project, will benefit from capacity building that will enhance the ministries' prospects to manage future projects after this Project closes. Contracted Procurement Agent (CPA) 8. A Procurement Agent will be contracted under a services contract, by the PMCU, to provide the procurement services ofall components o fthe Project according to specific TOR. 9. All TOR and technical specifications for contracts awarded under the Project will be developed by the Procurement Agent in collaboration with the relevant ministry units, and these TOR and technical specifications will be approved by the PMCU. The contracts will be signed by the PMCUand overseen by it, evenincases where the contracts are directly supervisedby the CPA. The major procurement contracts to be managed by this entity concern the rehabilitation o f primary school classrooms and latrines, procurement o f equipment (e.g. desks), the rehabilitation o f the National Pedagogical University and procurement o f its equipment, computers, textbooks, vehicles, and all consultants. 76 10. Disbursement for the contracted activities will be managed by the PMCU (see Annex 7 for the Project Special Accounts). The Procurement Agent will be responsible for providing the financial reporting directly related to procurement, as requiredby the PMCU. The PMCU will carry out the overall financial reporting required by the Financing Agreement. Further details are provided inAnnex 7 on FinancialManagement and DisbursementArrangements. ImplementingPartners for the Payment o f Primary School Teachers' Salaries and for Primary Schools for Operating Cost Subsidies 11. IDA will transfer funds for the grants to a designated account in the Central Bank o f the DRC. The funds will be released upon payment authorization and payment order issued by the MinistryofFinance, following the BudgetMinister's confirmation that the payroll list is correct and the salary payments have been committed (via the Directeur de la Paie, Director of Payments). Only teachers who are verified to be on the payroll will qualify to receive the grants. The central office o f SECOPE will be responsible for furnishing the list o f qualified teachers to the Minister o f EPSP, for transmittal to the Budget Ministry. The grants will be released from the Central Bank, following the existing procedures for the payment o f teachers' salaries, using the country's procedures and division o f roles, responsibilities at Provincial and local levels to ensure salary payments reach the teachers. Further details on the payment o f the teachers' salaries and the primary school operating cost subsidies are set out in Annex 7 on Financial Management and Disbursement. Implementationand Monitoringof ProjectActivities 12. The Project is expected to be fully implementedwithin five years o f effectiveness. Besides the standard early activities, most o f which are to be completed as Effectiveness conditions (e.g. setting up the PMCU, for which the office premises have already been designated by MEPSP), the first activities o f the Project will include selecting the external financial auditors, signing contracts for textbook procurement, launching the study on school construction norms, and consolidating the list o f primary school classrooms for the first batch for rehabilitation according to the selection criteria which were agreed duringProject preparations. 13. By Effectiveness, the Project Operations Manual will be finalized with technical assistance from a consultant financed by the Project Preparation Facility (PPF). The Manual includes: (i) a description o f the relationship between the various actors involved in implementation; (ii) a detailed description o f procurement and financial management procedures to be adhered to by each actor; (iii)description o f specific arrangements for key activities, including environmental a safeguards. Interms o f format, the Manual will draw on the existing manuals for the EMRRP and other manuals of IDA-financed projects inthe DRC. Interms of content, the main tools are the present Project Appraisal Document and the detailed tables of estimated Project costs, by activity as well as the draft TOR for the key functions (e.g. Procurement Agent) and actions agreed between the government and IDA. To ensure transparency, copies o f the Project Operations Manual will be widely disseminated to all Projectparticipants. 14. The process o f issuingtenders and selecting firms for the civil works (rehabilitation) and for procurement o f the primary school textbooks, as well as certain consultancies including for the literacy activities, start under the PPF phase. These will be overseen by the national preparation team from MEPSP, MESU and MASSNthat was designated by the SC, combining efforts with 77 the Procurement Agent who should be recruited (internationally) with assistance from a Project Implementation Unit o f another IDA-financed Project, agreed by the SC to handle financial management and procurement under the Education Sector PPF. Expressions o f interest for the contracts above will be evaluated prior to Effectiveness in order to assure the Project readiness for implementation. 15. The selection o f the Project Coordinator; a team o f nationals comprising a CFO, an Accountant, a Treasurer; a Civil Engineer; and an Operations Officer specialist in Monitoring and Evaluation will be completed prior to Effectiveness. The contract with the CPA will cover its procurement services for the latter part o f Project preparation and the period after Effectiveness. The draft contract will be submitted to IDA for no-objection. Prior to Effectiveness, the Government will also adopt the Project Operations Manual in form and substance satisfactory to IDA and establish an operational fiduciary management system satisfactory to IDA including: (i) adoption o f the Manual o f Financial and Accounting the Procedures, (ii) the recruitment o f an international accounting firm to carry out internal audit activities o f the Project, and (iii) installation o f a software for financial management, accounting and procurement withinthe PMCU. 16. Once the PMCU i s operational and the Project Operations Manual i s issued, the main tasks o f the PMCU will be to ensure that (i) Procurement Agent progresses rapidly to finalize the the contracts for the first batch o f civil works and all activities in the agreed procurement plan; (ii) the MEPSP has communicated the list of teachers who qualify to be taken onto the public payroll, financed from transfers from the Project; and (iii) management o f day-to-day activities and reporting. This includes oversight and support to the technical departments o f the MEPSP, MESU and MASSNand liaison with the Ministries of Finance and Budget; supervision of the Procurement Agent; communication with the World Bank; reporting and liaison with other project implementingactors as detailed inthe Project Operational Manual. 78 Annex 7: FinancialManagementand DisbursementArrangements ExecutiveSummary 1. The financial management (FM) arrangements for the Project have been designed with consideration for the country's post-conflict situation. The arrangements aim to facilitate disbursementsand to ensure effective use o fProject resources and funds while the country's own systems are used to the extent possible. To this end, overall coordination o f the financial management aspects o f the Project will be the responsibility o f the Project Management and Coordination Unit (PMCU) to be set up within the participating education sector ministries, except for the PPF phase when financial management will be carried out by a Project Implementation Unit (PIU) already managing other IDA-financed projects. The principal objective o f the Project's FMS will be to support the Project in the use o f resources to ensure economy, efficiency and effectiveness in delivering the results required to achieve Project objectives. The FMS must be capable o f producing timely, understandable, relevant and reliable financial information that will enable the Project's management to plan, implement, monitor and assess the Project's overall progress toward its objectives. 2. The financial management department o f the PMCU composed o f three staff will be headed by a qualified, experienced Financial Manager selected on a competitive basis. The department will be further strengthenedthrough the recruitment o f a firm of accountants to provide support. The financial management department o f the PMCU will be responsible for (i)approving payments to the CPA and other contracted service providers, suppliers o f equipment and goods, and implementingagents; and (ii) submittingconsolidated Financial Monitoring Reports (FMR) and audited financial statementsto IDA. The auditing firm, recruited on a competitive basis, will assist the PMCU financial management team to ensure adequate and effective use o f Project funds. The auditing firm will provide a qualified, experienced staff to review any request o f payments by the implementing agents and carry out the regular internal audit activities o f the Project. These will include the verification o f eligibility o f expenditures as well as physical inspection o f works and goods acquired by the Project. The findings o f the auditor will be used by the PMCU and the Project Steering Committee to make decisions regarding Project implementation, and regarding payments and contracts for the various service providers and implementingagents. 3. One designated bank account will be opened in U S Dollars in a commercial bank on terms and conditions acceptable to IDA. The account will be maintainedby the PMCU. Funds will be disbursedto contractors and providers o f services, equipment, and goods subject to the approval o f the National Coordinator o f the PMCU. Disbursement under components 2, 3, and 4 from the IDA grant, as well as the civil works incomponent 1, will be transaction-based (replenishment, reimbursement). 4. Disbursements under component 1 for financing primary school teachers' salaries and primary school operating cost subsidieswill be tranche-based, and subsequent payments will be made subject to an audit satisfactory to IDA o f the use o f the funds o f the previous tranche. For the financing o f primary school teachers' salaries and subsidies for primary school operating costs, IDA will transfer funds on a semester (every six months) basis, for each o f the five years o f the Project, into an earmarked account at the National Treasury located at the Central Bank o f Congo (Bunque Centrule du Congo,BCC). This account will be used for the sole purpose o f the Government's payment o f salaries to primary school teachers and payment o f subsidies for 79 primary school operating costs to help eliminate the practice o f corresponding fees charged at school level. These funds will finance (i) the salary for a specifically identified list of teachers (by name) who are currently not "mecanisds" but who are already identified by the Service de ContrGlede la Paie des Enseignants (SECOPE) progressively to be added inits official database o f teachers who will be financed through the public payroll system, and (ii)subsidies for operating costs o f a defined list o f qualifying primary schools. The list o f qualifying teachers and schools will be transmitted to IDA before the initial tranche installment o fthe two respective purposes i s made. The financing from the Project for salaries o f these identifiedteachers will be transferred through the existing procedures for payment o fteachers' salaries. 5. These procedures are inline with the officially mandated role o f SECOPE to establish the list o f qualifying teachers, to update data and information on teachers' status (recruitment, promotion, departure, transfer, reallocation) and to monitor delivery o f the salary payments to teachers. The Ministryo f Finance will be responsible for authorizing release o f these funds from the Treasury after the Budget Minister has signed the verification (liquidation) orders which are summary payroll statements. Specifically, based on the Budget Minister's verified payroll statement (liquidation de la liste de paie), the Treasury issues a disbursement authorization (ordonancement)which is validated by the Finance Minister who then gives origin to a payment order. Similar arrangements will be applied for the payments o f primary school operating cost subsidies(to offset the FDF and FDIP). However, for the purpose o fthis Project, disbursements for the grants for operating cost subsidies will be effective subject to the completion o f the implementation o f the component 1 o f the E M W which i s providing bridge financing for the same purpose. This condition does not apply to the above-mentioned teacher salary payments. 6. The overall conclusion o f the financial management assessment o f the EPSP payroll system is that in order to progress towards satisfaction o f the World Bank's minimum financial management requirements, the Government and the MEPSP should adopt an action plan described in detail in this FM assessment report. This includes completion o f a comprehensive census o f primary schools, students, classrooms and teachers prior to disbursement o f the first tranche o f funds from the Project to finance the identifiedprimary school teachers' salaries, as well as updatingthe teachers' database and rosters managedby SECOPE, taking into account the pending request for authorization to add teachers to the public payroll. This will be done in collaborationwith the Ministries o fFinance and Budget. 7. Any payment o f tranche under component 1 that involves primary school teachers' salaries and financing for primary school operating subsidies will be immediately audited by the government control institution, Inspection Ge`nirale des Finances (IGF, General Inspection o f Finances). The audits will include inspection and field visits on the ground. Upon receipt o f a satisfactory audit report as well as completion o f the additional disbursement conditions described elsewhere in this Annex, the Central Bank will receive the amount necessary for the next tranche payment - and the process will be repeated. 8. The PMCU will be responsible for the accounting and reporting standards, including the FMRs for all sub-components of the Project, under terms and conditions which are specified in the Financing Agreement and the Project Operations Manual, which includes detailed procedures for the payment o f the teachers' salaries and operating costs and other activities financed by the project. 80 9. Qualified, experienced and independent auditors ("external auditors") will be appointed on approved TOR and will conduct an audit every six months unless and untilit i s established to the satisfaction o f IDA that the fiduciary risks are diminished to a level that would require an audit only once a year. The external financial audit, including eligibility o f expendituresand physical inspections, will cover all aspects o f Project activities as well as payments o f the salaries o f the teachers who are identified to be added to the public payroll and who will thus be formally incorporated into the SECOPE database, and the payment o f subsidies for primary school operating costs. Inaddition, there will be separate, independentaudits o f each installment o f the Project's funds that are used to pay these teachers' salaries and subsidies for school operating costs. The latter audits will be carried out by a team o f auditors composed o f representatives o f MEPSP (SECOPE) and the Ministries o f Finance (staff o f the IGF,, and Budget, along with an independent third party observer. Following the first tranche transferred by the Project, any subsequent installments will be released subject to the submission o f the audit report o f the use o f the preceding payment by IDA o f funds for teachers' salaries and primary school operating cost subsidies, and a satisfactory report on the same remitted to IDA. In addition, annual citizen's report card surveys will be used for monitoring the implementation o f the Project from a school level. Furthermore, two Public Expenditure Tracking Surveys (PETS) will be conducted to trace the flow o f public funds, including teachers' salaries and school operating costs, to school level. One PETS will be conducted inthe first year o f the Project, and a second PETS in year four. Due to the risks embedded in the Project and the need to monitor its performance so as to ensure sustainable results, activities in all four Components o f the Project will also be subject to technical auditing, including o f procurement, on a sampling basis every year. 10. An anti-corruption action plan will be developed within four months after Grant effectiveness and will specify oversight mechanisms by the civil society (e.g. parent committees, trade unions, etc.) inmonitoringresults on the ground, development o f effective communications strategies (to inform beneficiaries, publicly disclose the name o f companies and amounts o f contracts signed and similar information about the Project), investigation o f wrongdoing, and sanctioning those found guilty. Among the good governance and anti-corruption measures, the World Bank will schedule supervision missions with greater frequency (a minimum o f three per year) duringthe first years of Project implementation. DRC Economicand FinancialControlEnvironment 11. The DRC has experienced a long period o f instability and conflict during which the administrative and regulatory institutions in the country seriously deteriorated. Tremendous efforts are being taken to reestablish these. The open and democratic process o f the recent elections opens a new phase inthe country's history after decades o f mismanagement. 12. The existingcapacity to assume financial management responsibility inthe ministries and at decentralized administrative levels i s weak. A recent, joint IMF/World Bank assessment o f the DRC's eligibility for assistance under the enhanced Initiative for Heavily Indebted Poor Countries (HIPC) provides insight into the status o f the country's public sector management. This, together with other analyses including the CFAA completed inMay 2005, portrays a highly unsatisfactory economic and financial control environment. In-depth structural reforms have been launched in the areas o f economic governance, public expendituremanagement, financial 81 Key weakness Priorityrecommendations Outdatedandpoorlyadapted legaland The legalandregulatoryframework for publicfinance regulatoryframework management must be completelyrevamped, inparticularthe FinancialLaw(organic law). Inadequatebudgetpreparationcycle 1Reviewthe budgetcycle and establishthe budgettimetableby law. Non compliancewith standardbudgetexecution Strengthenex ante budgetarycontrolsto ensure adherenceto procedures normalbudgetexecutionproceduresand limitthe incidenceo f exceptionalprocedures. Inadequatedebt management Strengthencoordinationbetweenthe units involvedinpublicdebt management. Irregular, incomplete,unreliableproductionof Produce andpublishexecutionreportsina timely mannerusing reports the computerizedpublic expendituresystem database. Lack ofan accountingframeworkthat meets Finalize, adopt, and effectively implementa double-entry standardnorms accountingframework. Weak managementandcontrol ofpublic funds Strengthenthe procedures for openingandmaintainingbank due to proliferation ofbank accounts accounts, ensuringproper reportingoftransactions. Weakness ofex post administrativeoversight of Reinforcethe capacityofthe InspectorateGeneralo f Government. expenditureexecution Major needfor training andhumanresources Establishstrategies andplansto improvecapacityofstaff responsiblefor managementandtrackingo fpublic finances, 14. Although there is cause for cautious optimism, it will take a longtime for these reforms to yield substantialimprovements in the management of public funds. Given the fragility of the fiduciary environment, and the challenge that with multiple sector ministries involved in the Project there is joint ownership of the Project accounts, the only financial management and disbursement arrangements which provide the fiscal and fiduciary safeguards required for Projects financedby IDA are the arrangementsdescribedinthe presentAnnex. 82 InstitutionalArrangementsfor FinancialManagement The Steering Committee CSC) 15. The Project's implementation arrangements are designed to reinforce the education sector to assume responsibility for managing a similar development project in future. To this end, a Steering Committee (SC) will take up the responsibility for overall policy guidance and oversight o f Project implementation, including its financial management aspects. The SC will ensure that Project funds are used according to the agreed objectives. The Project Management Coordination Unit CPMCU) 16. Responsibility for the financial management and operational aspects o f the project will be assigned to the Project Management Coordination Unit (PMCU) set up at the MEPSP. The PMCU will implement and manage the project activities, including activities pertaining to monitoring and evaluation, as well as managing project funds. The PMCU will be adequately staffed at all times with professional staff who ensure effective coordination between the executive divisions o f the Ministries involved in the Project, the CPA, and other contracted implementingactors. The PMCUwill beheaded by a Project Coordinator (PMCU Coordinator). The financial management team, which consists o f competitively selected consultants, will be responsible for: (i) maintaining PMCU expenditure accounts; (ii)approving payments to the CPA and other service providers, contractors and suppliers o f goods; (iii)consolidating the project financial statements (budget, FMRs and annual accounts); and (iv) auditing and reporting to IDA. 17. Internal auditing and financial control functions which are under the responsibility o f the PMCU will be outsourced through contracts to firms with qualifications and experience satisfactory to IDA. Such an arrangement will enable the PMCU to focus on its main responsibility o f coordination and supervision. The firm that will be contracted for the internal auditing function will provide staff to be located on the PMCU premises. 18. The PMCU will directly implement specific (selected) activities, and manage the contract for the Procurement Agent. The contract with the Procurement Agent will clearly specify the activities covered by its contract in the context o f this Project. The PMCU will also supervise implementation o f the IDA transfers into the earmarked account at the National Treasury, to be used for payment o f the identified primary school teachers' salaries and grants for primary school operating cost subsidies. Financialmanagement assessment of the three Ministriesparticipatingin the project 19. The capacity assessment conducted during the project preparation phase revealed capacity shortages in the three ministries in respect o f financial management and procurement. These weaknesses include: (i)the lack o f sufficiently qualified staff in the areas o f financial management (ii) the absence o f an accounting system acceptable to IDA; (iii)non-familiarity o f ministry staff with IDA financed-projects and procedures for reporting requirements, disbursement arrangements and auditing. Furthermore, the CFAA confirmed the lack o f an adequate tracking and reporting system and a formal accounting system within the ministries. Therefore, the FMS the ministries normally have in place does not meet the Bank financial management requirements. 20. The overall conclusion o fthe financial management assessment is that inorder to satisfy the World Bank's minimum financial management requirements, an independent PMCU at the 83 MEPSP using IDA financial management procedures should be established. For this purpose, three consultants (Financial Manager, Treasurer and an Accountant) will be recruited to lead the financial management function. An auditing firm will be recruited to lead the internal audit function. Management o f the designated account ("Designated Account") will be the responsibility o f the PMCU and controlled by the auditing firm. The PMCU will be responsible for auditing andreporting to IDA. Summary of the assessment of the teacher payrollsystem 21, Teachers' payroll inthe DRC i s managedwithinthe framework o f the government's overall payroll system described in detail inthe CFAA report, as well as in an independent assessment commissioned to assist this Project's preparation (Verhaghe 2007). The CFAA mission found two methods being used in Government's overall personnel payroll preparation: (a) the mechanized payroll (partially computerized, and for which the only supporting documentation for the expenditure i s a computer listing by name); and (b) a manual payroll system. The management of the Government's payroll expenditure i s the responsibility o f the Payroll Directorate o f the Budget Ministry. Lists of names are submitted by the line ministries to the Payroll Directorateupon whichthe payroll payments are based. 22. In practice, validation to update payroll slips is performed manually by the six Validation Divisions, based on payroll rosters, lists o f names submitted by the ministries, or notes from Civil Service to the Payroll Directorate requestingthe validation o f the global payroll envelope rather than the detailed list o f names. The validation orders constituted by a summary payroll statement are signed by the Minister of Budget. The payment authorization orders are also prepared after inputtingupdated slips pendingthe endorsement o fthe validation. The statements o f the amounts to be validated (accompanied by validated orders) are then signedby the Minister o f Finance. The payment instructions are signed by the Delegated Payment Authorization Officer prior to payment by the BCC. Inthe case o f the provinces, the payroll i s processed by overall ceiling for all employment statusestaken together. 23. The teacher payroll inspection unit called SECOPE i s a specialized unit o f the MEPSP created by ministerial bylaw (No. DEPS/CCE/001/0121/85 dated September 24, 1985). SECOPE i s responsible for monitoring and verifying the payroll for that ministry. SECOPE draws up a payroll list containing details o f each teacher. In order to be paid, teachers sign the payroll list. Individual pay slips were discontinued inthe mid-1980s. Currently, SECOPE issues two separate listings: one for the base salaries and one for the specific bonuses called "primes." 24. The following are the main weaknesses identifiedinthe reviewo fthe EPSP payroll system: (i) Supporting documentation for payment o f salaries i s not complete, particularly with respect to pay slips, and copies o f the listings signed by the teachers are not sent to SECOPE, the MEPSP Public Accountant or the Delegated Payment Authorization Officer (Ordonnateur Delegue?; (ii) The handlingo fcashby the school headspresents a risk; (iii) Statutory deductions are not appliedto salaries; (iv) There is a lack of financial reporting to or by SECOPE on the payment o f the teachers' salaries; 84 (v) Amounts to be paid to teachers are calculated on the basis o f information providedby SECOPE, while payments are made on the basis o f the listings prepared by the Government's delegated payment agents (Gestionnaires) inthe Provinces, usinginput from the heads of schools; (vi) There are discrepancies between the listings o f SECOPE and those o f the school heads due to delays inupdatingthe teachers' database androsters by SECOPE. 25. The overall conclusion o f the financial management assessment o f the payroll system i s that in order to satisfy the World Bank's minimum financial management requirements, the governmentand the MEPSP should adopt an actionplan consisting ofthe following: (i) Complete the general census of teachers and qualified primary schools prior to disbursement of IDA funds to be used for payment o f teachers' salaries, and update the teachers' database and rosters managed by SECOPE taking into account the pendingrequest of authorization; this will be done incollaboration with the Ministry o fFinance and the Ministry of Budget; (ii) Submit the report o f a detailed assessment o f the payroll system relating to teacher salaries, with the relevant report indicating the necessary safeguards and government guarantees to adopt inthe area; the assessment and recommendationswill need to be coordinated with the new payroll procedures and systembeingimplemented; (iii) StrengthenSECOPE's capacity (interms ofequipment, humanresources) to fulfill its originally mandatedresponsibilities related to financial reporting and auditing. The Contracted Procurement Agent (CPA) 26. A contract will be signed between the PMCU and the CPA through which the latter will act as a service provider for all procurement under the Project. The agreement will state the scope o f work and specific responsibilities o fthe CPA withrespect to the Project. 27. For the purposes o f payment o f the Project funds to the CPA, the latter will open a separate bank account denominated in US Dollars in a commercial bank in the DRC, on terms and conditions acceptable to IDA. This bank account will be audited by the internal and external auditing firms contracted at the PMCU. The Project's technical audits will also cover the activities carried out by the CPA and will include physical inspections on the ground. A report on the status o f the implementationof the FMaction plan will be requiredto support the request for disbursement o f funds to the above-mentioned CPA bank account. Summary RiskAnalysis 28. The main financial and fiduciary risks associated with the Project are summarized and rated interms of severity intable A7.1. The table also specifies the risk mitigation measures which have been incorporated into the Project and identifies those which are conditions for Project effectiveness. 29. This table i s followed by table A7.2. This table sets out the FMAP, i.e. the actions which must be taken to ensure a strong and effective FMS will be in place for the Project to deliver services quickly over a large geographic area to a wide variety o f stakeholders. The objectives o f the Project's FMS are to: (i) ensure that funds are usedonly for their intendedpurposes in an efficient and economical way while implementingagreed activities; (ii) the preparation o f enable accurate and timely financial reports; (iii)ensure that funds are properly managed and flow 85 smoothly, rapidly, adequately, regularly and predictably to implementingagencies; (iv) enable Project management to monitor the efficient implementation o fthe Project; and (v) safeguard the Project's assets and resources. 30. Insum, it i s stipulated that the implementingagencies should have an adequate number and mix of skilledand experienced staff. Their internal control systems should ensure the conduct of orderly and efficient payment and procurement processes, and proper recording and safeguarding o f assets and resources. The accounting systems should support the Project's requests for funding and meet its reporting obligations to the providers o f Project financing including IDA and any other donors. The system should also be capable o f providing financial data to measure performance when linked to the outputs of the Project. Lastly, an independent,qualified auditor should be appointed to reviewthe Project's financial statements and internal controls. TableA7.1 Riskassessment and mitigationmeasures RiskMitigating Measures Remarks Incorporated into Project Design Inherent H risk Country level H The Government o f DRC is No The CFAA report outlined significant highly committed to a reform Public Financial Management (PFM) program that includes the weaknesses at government as well as strengthening o f budget sector ministry level in terms o f (i) classifications and budget formulation and execution, implementation of an interim financial reporting, and oversight Integrated Financial systems; (ii)weak linkage between Management Information agreed policies, budget planning and System (IFMIS). A new legal execution; (iii)inadequate tracking framework is being prepared. and reporting systems, or formal However, there are still accounting system within the weaknesses in auditing and ministries; (iv) lack o ftransparency or preparation of consolidated predictability in public resource accounts; efforts are management at central government continuing to strengthen and public enterprise levels; and (v) capacity. insufficiently qualified staff in the areas offinancial management. UseofIDA FMprocedures. 86 RiskMitigatingMeasures Conditions Remarks Incorporated into Project for Design Effectiveness Entitylevel H Creation of a PMCU and use Yes The assessmentofthe three Ministries o f IDA FM system revealed significant internal control requirements: weaknesses, lack of accounting FM system requirements systems acceptable to IDA, and non- include, among others, the familiarity o f the staff with IDA requirement that the financed-projectsandFMprocedures. Government will adopt an action plan consisting of a census of teachers, updating the teachers' database, and other safeguards prior to disbursement o f IDA funds for teachers' salaries and school operating costs. The Government will adopt an anti-corruptionplan and other safeguards withinthe first four months aftef project effectiveness. Projectlevel S Recruitment o f a Financial Yes The Government system for payment Management Agent (FMA) o f teacher salaries may not be with significant experience on sufficient to ensure the transparent a competitivebasis. management of project funds for teachers' salaries. The PMCU will adopt measures to strengthen ex- ante and ex-post control o f payroll lists to ensure proper entitlementto grants. Control S Risk Budgeting M Annual work plan and budget No required each year. The project's Financial Procedures Manual (FPM) will define the arrangements for budgeting, budgetary control and the requirements for budgeting revisions. Annual work plan andbudgetrequired. 87 RiskMitigating Measures Remarks Incorporated into Project Design Accounting S The project will adopt Yes The accounting system currently used international accounting by MEPSP doesnotcomply with IDA standards, and accounting FM requirements and does not procedures and policies will support making management be documented in the FPM. decisions. The FM finctions will be carried out by qualified individual consultants supported by an FMA and installation of a computerized accountingsystem. Training in IDAFMproceduresplanned. Internal H Manualo fProceduresrequired Yes The distribution of responsibilities control before grant effectiveness and between the three ministries and the recruitment ,of an internal SC required clarifications. Internal auditor. audit function does not exist. FundsFlow H (i)Payment requests will be No Funds, especially for implementation approved by the Financial agencies, teachers' salaries, grants for Manager prior to school operating costs, and the disbursement o f funds to PMCU, may not be used in an contractorsor consultants and efficient and economical way, or teachers. exclusively for intendedpurposes. (ii)Performance audits will be conducted and integrated The complexity, the nature o f some to ensure a close link between activities financed under this Project physical progress and and the weak financial and banking financialreporting. sector, may result in delays in the (iii)AFMAwillberecruited disbursemento f fundsto agencies and to carry out regular physical beneficiaries. inspections, to assess the eligibility of expenditures and to review the quarterly FinancialMonitoringReport. (iv) Audit o f the payment of each tranche o f the teachers' salaries and school operating costs. Financial S (i) To reduce delays and Yes The PMCUmay lack qualifiedstaffin Reporting ensure proper financial specific areas of the Project such as reporting, a computerized disbursements, accounting and accounting system will be put budgeting leading to delays in in place and will be under the submission of the Project accounts supervisiono fthe FMA. andthe FMR. (ii) Recruitment of an additional accountant. 88 Remarks Auditing M (i) The project's institutional Yes The auditingprofession inthe DRC is arrangements allow for the still generally weak. International appointment o f adequate auditing standards are followed in the externalauditors. industry. Audit reports are generally (ii) Annual auditing timely, and management letters arrangements will be carried contain issues that assist management out for the entire period of to ensure the continuing adequacy of the financial management Project implementation. arrangements. Performance and technical audits will be conducted to ensure a close link between physical progress and financialreporting. (iii) internalauditorwillbe An recruited to carry out regular physical inspections and to assess the eligibility o f expenditures. (iv) Each tranche payment under Component 1 will be audited prior to the disbursement of following tranche. Overall H Risk Rating * H-High,S-Substantial,M-Moderate, L-Low 89 TableA7.2 FinancialManagementAction Plan(FMAP) I r RemedialAction Recommended Responsible Deadline Issue body Staffing Recruitment of the Financial Manager, the Accountant PMCU Effectiveness andthe Treasurer ofthe PMCU Information System Acquisition and installation of accounting software for PMCU Effectiveness accounting the project. software Administrative, Produce AAFM of proceduresthat also includes detailed PMCU Effectiveness Accounting and procedures describingthe teachers' payroll system Financial Manual (AAFM) Internal Auditing TOR for the selection of the auditing firm responsiblefor PMCU Effectiveness andFinancial the internal audit activity agreed and expressions of Controller interest advertised. (outsourcedto an Selection of the Auditor completed, and agreed by the auditing firm) Bank External Financial TOR for the selectionofthe External Auditors agreed and PMCU Effectiveness Auditing expressionsof interest advertised. Selectionofthe External Financial Auditor completed TOR for the selectionofthe technical auditors agreed. PMCU Effectiveness Auditing Recruitmentcompleted. Conduct (consultant) a detailed assessment of the payroll PMCU Disbursement paymentofprimary system relating to teacher salaries, with the relevant ofthe first schoolteacher report indicating the necessary safeguards to employ in tranche ofthe salaries this area. IDA funds for Completethe census of teachers and schools; draw up the the payments list o f beneficiariesof IDA funds for teachers' salaries. ofteachers Set up (by arrtrk ministerial, ministerial bylaw) the `salaries structure and composition of the team of auditors responsible for the ex-post control of the payment of the identified teachers' salaries as well as the mechanismfor allocating, distributing, reporting, and monitoring of payments. Implementation of the Component 1 of the EUSRP is PMCU Disbursement schooloperating completedand audit reports are acceptable to IDA. o fthe first cost subsidies School mappingcompleted and list of primary schools to tranche of benefit is transmittedto IDA. IDA funds for ArrCfe infer-minisreriel (inter-ministerial bylaw) EPSP/ the payments Finance/ Budget sets out the mechanisms for allocating, ofprimary distributing, reporting, and monitoring grants for school schools' operatingcost subsidies. operating costs Selection of the consultant completed and contract PMCU 3 months after Tracking Survey signed. effectiveness The government will develop and adopt an anti- ~~~~ PMCU 4 months after corruptionplan effectiveness 90 FinancialandAdministrativeManagement 31. Upon Effectiveness, the overall coordination o f the fiduciary aspects o f the Project will be underthe responsibility o fthe PMCU: Overall Responsibilities 32. The Financial Department o f the PMCU will be responsible for all financial management, accounting and audit aspects o fthe Project. Inparticular, it will be responsible for the following: (i)designingand establishing acomputerized FMS; (ii) approving disbursement o f funds to implementing partners; (iii)maintaining up-to-date accounting records and ledgers; (iv) recording fiduciary transactions for all activities pertaining to the Project for which the Financial Department o f the PMCU i s held responsible; (v) fiduciary reporting; (vi) submitting audit reports; and (vii) ensuring that a proper internal control system i s in place to achieve accountability at all levels. 33. At least three sets o f financial reports will be prepared and consolidated by the Financial Department o f the PMCU, namely the annual budget o f the project, the quarterly Financial Monitoring Reports (FMRs), and the project financial statements. Administrative. accounting and financial manual (AAFM) o fprocedures 34. The accounting systems and policies, administrative (including procurement) and financial procedures employed by the project will be documented in the project's AAFM. This will be used by (i) Project staff as a reference manual; (ii) to assess the acceptability o f the the IDA Project accounting, reporting and control systems; and (iii)the auditors to assess Project accounting systems and controls and to design specific Project audit procedures. Specific procedures will be documented for each significant accounting function. They will be written to depict document and transaction flows, and will cover the following aspects: flow o f funds; record keepingand maintenance, the chart o f accounts, formats o f records and books o f account; authorization procedures for transactions; planning and budgeting; financial reports (including formats, linkages with Chart o f Accounts and procedures for reviewing these); and auditing arrangements. The AAFM will also describe the PMCU organizational chart and administrative andprocurement procedures as agreed inSchedule 3 o fthe GrantAgreement. 35. The PMCU will prepare an annual work plan and budget for implementingProject activities taking into account the Project's objectives. The work plan and budgets will identify the activities to be undertaken and the role o f respective parties in implementation. Annual work plans and the budgets will be consolidated into a single document by the PMCU, which will be submittedto the SteeringCommittee for approval, and thereafter to IDA for no objectionno later thanNovember 30 of each year proceeding the year the work planshould be implemented. The consolidation will be done after the PMCU ensures, through its technical department, that the plan and budget meet the Project objectives. Staffing, 36. The PMCUwill retain staffing resources that are adequate for the level o f Project operations and activities and are sufficient to maintain accounting records relating to Project financed transactions, and to preparethe Project's financial reports. Training and capacity buildingplans will also be designedfor all potential staff. The financial management department o fthe PMCU 91 will be composed of a qualified and experienced Financial Manager (CFO), in charge o f supervising the overall financial management function o f the Project, and an experienced Accountant and a Treasurer. The management accounting and internal auditing functions will be outsourced to a firm. The firm will assist inthe management o fthe withdrawal applications. Record keepingand maintenance 37. The FMteam o f the PMCU will be responsible for maintaining the Project's records related to expenditures incurred by the PMCU. All accounting documents o f contracted implementing agencies including the CPA will be kept at their premises and made available upon request during supervision missions and audit missions carried out by internal and external auditors (auditing firms ). For ex-ante control purposes, the listings signedby the teachers andthe payroll statementswill be kept at the premises o fthe SECOPE offices inthe provinces. Financial Reporting 38. Consolidated financial reports (FMRs) will be designed to provide quality and timely information on Project performance to Project management, and relevant stakeholders. Formats of the periodic FMRs to be generated from the FMS will be developed using the World Bank's Guidelines for Borrowers on Financial Monitoring Reports. The quarterly FMR includes financial statements (e.g. sources o f funds and Project revenues, uses o f funds; statement o f expenditures classified by Project component, disbursement category, expenditure types and ' implementingagent, showing comparisons with budgets; cash forecast, physical progress report, notes to the FMR, Special Account activity statements and information on contracts above and below the prior review threshold). The FMRwill include the use o f IDA funds transferred to the National Treasury account for the teachers' salaries and the grants for school operating costs. 39. The firm in charge o f the internal auditing functions will monitor and review all the reports submitted. The finding of the reviews o f the FMR will be used by the PMCU to approve payments and withdrawal applications. In compliance with International Accounting Standards and IDA requirements, the Project will produce annual financial statements. These include: a Balance Sheet that shows Assets and Liabilities; a Statement o f Sources and Uses o f Funds showing all the sources o f Project funds, expendituresanalyzed by Project component and credit category; a Statement o f Cash Receipts and Payments which recognizes all cash receipts, cash payments and cash balances controlled by the project; a Special Account Activity Statement; an Implementation Report containing a narrative summary o f the implementation progress o f the Project; and a Summary o f Withdrawals using FMR, listing individual withdrawal applications by reference number, date and amount; Notes related to significant accounting policies and accounting standards adopted by management and underlying the preparation o f financial statements. The FMRs and financial statements, whose format will be developed by project Effectiveness, will be submittedfor audit at the endof each year. Integrated Financial Management System 40. For the Project to deliver on its objectives, a computerizedFMS will be developed based on software to be acquired by the PMCU. The system should integrate budgeting, operating and accounting systems to facilitate monitoring and reporting. The formats o fperiodic reports would be developed and agreed withProject management. 92 Audit arrangements InternalAuditing and Management accounting 41. A separate Internal Audit and Management Accounting Department outsourced to an international auditing and accounting firm will be established at the PMCU. The role o f the department will be to ensure that the Project's fiduciary procedures and regulations are adhered to by all the implementingagencies. The selected firm will inspect accounting procedures used by the PMCU and the MEPSP to ensure that they conform to the established procedures. This inspection will cover the verification of expenditures including payments o f the identified primary school teachers' salaries, primary school operating cost subsidies, civil works and acquisition o f goods and equipment. The scope of the firm's mission will also include review of the quarterly FMR as well as any financial statements submittedto IDA by the PMCUand other entities. The AAFM as well as the TOR for the selection o f the firm will contain a description o f the roles andresponsibilities ofthe internal audit department andthe arrangements that guarantee the necessary level of independence. ExternalFinancialAuditing 42. A firm o f qualified independent auditors will be contracted by the PMCU to carry out the audit of the financial statements o f the Project on a semester (every six months) basis. The selection of the successful firm will be based on TOR that set forth the scope o f the audit. The audit firm will also be recruited on terms that meet IDA requirementsrelating to independence, qualifications and experience. The scope o f the audit will cover the activities performed by any entity managing Project funds, mainly the PMCU. The audit also includes the transactions relating to the primary school teachers` salaries and subsidies for primary schools' operating costs. The audited financial statements together with the auditor's report and management letter covering identifiedinternal control and accounting system weaknesses will be submittedto IDA no latter than four months after the end o f each accounting period (semester). A single audit opinion will be issuedwith respect to Project income and expenditures, special accounts and the FMRs. A second audit opinion will be issued on specific controls such as compliance with procurement procedures and FMR requirements and consistency between financial statements and management reports and review o f the use of the teachers' salaries and primary school operating cost subsidies. The audit report will thus refer to any incidences of non-compliance, and ineligible expenditures identifiedduringthe audit mission. 43. In addition, the PMCU will set up an ex post auditing mechanism (MEPSP, Ministries o f Finance and Budget) and the AAFM will set out the detailed procedures for payment o f the identified primary school teachers' salaries and primary school operating cost subsidies. No expenditures o f IDA funds on teachers' salaries or grants for schools' operating costs will be made unless an audit satisfactory to IDA has been carried out with respect to payments made underthe precedinginstallment, and a satisfactory report onthe same remittedto IDA. External Technical Auditing 44. A firm will be contracted to review procurement, as well as verify the physical existence of goods, works, equipment, and services acquired through the Project. This audit will be conducted on an annual basis. The selection ofthe successful firm will be based on TOR that are acceptable to IDA. The TOR will also set out the scope o f the audit. The audited documents 93 together with the auditor's report will be submittedto IDA four months following the end o f the FY. Closing the accountability cycle: following up on audit queries 45. The duties o f the Management o f the PMCU and the Steering Committee will include the review o f audited financial statements and internal and external audit findings. The firm o f independent auditors (internal auditing department of the PMCU) will require corrective actions to be taken by the PMCU and any other implementation agencies as relevant, to address any weaknesses in the fiduciary management system or incidence o f non-compliance with procedures. The internal auditing department will also use the results o f the audits inmonitoring the performance of other agencies such as SECOPE and the IGF in regard to the Teachers salaries. This arrangement i s intendedto ensure the satisfactory follow-up o f audit findings. Conclusion of the Assessment 46. The recruitment o f qualified and experienced consultants at the PMCU and the outsourcing o f the internal auditing functions to an auditing firm will enable the establishment o f a financial fiduciary management system for the project that satisfies the Bank's minimum requirements under OPBP 10.02. The financial management arrangements, including the actions intendedto strengthen them, will be adequate to provide, with reasonable assurance, accurate and timely information required by IDA on the status o f the Project. The actions which are required by Grant effectiveness to facilitate the establishment o f this system are set out inthe FMAP. Supervision Plan 47. Financial management supervision missions will be conducted over the Project's lifetime, at least on a semi-annual basis. However, due to the high fiduciary risks associated with the Project, the budget allocationfor supervision missions will be higher duringthe first two years o f Project execution in order to increase frequency o f controls (at least four supervision missions per year). The objective o f the supervision missions is to ensure that adequate and effective FMSs are maintained throughout the Project's lifetime. Regular reviews will be carried out to ensure that expenditures incurred by the Project remain eligible for IDA funding. The Implementation Status Report (ISR) will include a financial and procurement management rating for the component. Disbursementarrangementsand flow of funds Designated Account 48. To facilitate Project implementation and reduce the volume o f withdrawal applications, one Designated Account denominated in US Dollars will be opened in a local commercial bank on terms and conditions acceptable to IDA. The Designated Account will finance civil works contracts relating to the renovation o f schools and the rehabilitation o f the National Pedagogical University as well as the purchase o f textbooks, and other project expenditures including the purchase o f goods and vehicles, training and workshops, consultant services and the PMCU's operating costs. The contract signed between the PMCU and CPA for procurement services under the Project will also be financed from the Designated Account. The Designated Account will be managed by the PMCU lodged at the Ministry o f Primary, Secondary and Professional Education (MEPSP). As part o f its overall fiduciary project oversight, an international auditing firm will berecruitedto control the PMCUmanaging the Designated Account. 94 49. The authorized ceiling o fthe designated account would be US$300,000. 50. The Designated account will be used for all payments less than 20 percent o f the authorized allocation and replenishment applications will be submitted at least once a month. 51. The Designated Account will be audited every six months by external auditors acceptable to IDA as part of the overall Project audit. Disbursement from the IDA grant under components 2, 3 and 4 as well as the civil works in component 1, will be transaction-based (replenishment, reimbursement). The option o f disbursingthe funds through direct payments on contracts above a pre-determinedthreshold will also be available. Withdrawal applications for such payments will be accompanied by relevant supporting documents such as copies o f the contract, contractors' invoices and appropriate certifications. Replenishment o f the bank account opened at the Central Bank o f Congo for component 1 financing o f primary school teachers' salaries and grants for school operating cost subsidies will be made through direct payments and will be tranche-based. Replenishment o f the bank account opened by the CPA will be included in the scope o fthe audit o fthe Project. Local taxes 52. Funds will be disbursedin accordance with Project categories o f expenditures, as shown in the Financing Agreement and inline withthe agreed country financing parameters. Financing of each category o f expenditure will be authorized at 100 percent, except for local expenditures under the civil works, goods, textbooks, and services (categories 1, 2, 3, 4 and 5) which will be financed at 100 percent excluding local taxes (TCA). In accordance with Bank standard procurement requirements, contracts will continue to be approved "all taxes included" for local expenditures. The PMCU will, however, claim invoiced amounts excluding taxes. The Government will take appropriate steps to cover the tax portion o f contracts signed by the PMCU with contractors and suppliersof goods and services. Disbursemento ffundsto service providers, contractors and suppliers 53. The PMCU will make disbursements to service providers, contractors and suppliers o f goods and services for specified activities under Components 1, 2, 3, 4 and 5 o f the Project. Payments will be made in accordance with the modalities specified in the respective contracts for goods, works and services, and in accordance with Bank procurement guidelines. Disbursementswill be made in the respective contract currencies, not to exceed the amounts stipulated in the contract for each respective currency. The PMCU will promptly provide IDA with signedcopies o f contracts above the prior review threshold in order to ensure timely payments when withdrawal requests are submitted to IDA. Summary sheets enclosed with the withdrawal applications will include the contract number shown on the system "Client Connection," inorder to facilitate disbursements. In addition to a review o f supporting documents, the PMCU will consider the findings o f the internal auditing firms prior to the approval o f the payments. Payments to contracted agents will also be made on the basis o f services contracts. The PMCU, with the assistance of the auditing firm, will reserve the right to verify the expendituresincurred under a services contract ex-post, and refunds might be requested for non respect o f contractual clauses. Misappropriatedactivities could result inthe suspension o f financing for a given entity. Disbursementof funds for teachers' salaries and primary school operating cost subsidies 54. IDA will transfer tranches on a semester (bi-annual) basis for each o f the five years o f the Project, into an earmarked account at the National Treasury located at the BCC. This account 95 will be used for the sole purpose o f the Government's payment o f the identified primary teachers' salaries and grants for primary school operating cost subsidies, to help reduce the practice o f charging fees (the FDM and FDF and FDIP, respectively). Conditions o f disbursement will apply for the payment of Teachers' Salaries Installments (Category 6 in Allocation o f Grant Proceeds, below) and for the School Operating Costs Subsidies Installments (see Category 7)before IDA transfers respective funds to the Treasury Account. 55. The conditions for disbursementare as follows: No withdrawal shall be made for payments untilthe Recipient has furnished to IDA evidence satisfactory to it that each o fthe actions described below has beentaken ina manner satisfactory to IDA: (i) No withdrawal shall be made: (a) for payment o f the initial installment o f the Teachers' Salaries (Category 6 o f the Grant), unless the Beneficiary has provided evidence that: i)anArrdte` ministe`riel has been enacted freezing any transfer o f personnel in primary schools; and an Arrdte` inter-ministe`riel has been enacted freezing the opening or accreditation o f new public primary schools untila comprehensive census o fprimary schools, students, classrooms and teachers has been completed; ii)all teachers currently enrolled into the public payroll schedule furnishedby SECOPE are integrated into the PTS; iii) a comprehensive list comprising the names o f all teachers to be progressively integrated into the public payroll system and to be paid with the proceeds o f the financing allocated to Category (6) has been delivered to IDA; and iv) SECOPE has been granted exclusive authority to handle all payments of teachers' salaries; (b) for payment o f each subsequent installment o f teachers' salaries under Category (6) unless the Beneficiary has submitted to IDA an audit report related to the use o f the proceeds o f the preceding installment for teachers' salaries satisfactory to IDA; (ii) No withdrawal shall be made after December 31, 2008 (i.e. the point at which the bridge funding o f the EUSRP ends) : (a) for payment of the initial installment o f the Subsidies for School Operating Costs (Category 7 o f the Grant) unless the Beneficiary has provided evidence that: i)a comprehensive l i s t identifying all public primary schools eligible to receive subsidies for school operating costs through the proceeds o f the financing allocated to Category (7) has been delivered to IDA; and ii)the Beneficiary has adopted a comprehensive school map covering its territory; and (b) for payment o f subsequent installment o f subsidiesfor school operating costs under Category (7) unless the Beneficiary has submittedto IDA an audit report related to the use o f the proceeds o f the preceding installment for subsidies for school operating costs 56. The funds will be made available in local accounts opened at the BCC, and the utilization will follow the government personnel expenditure system for primary school teachers. Appropriate corrective action will be sought from the SteeringCommittee where such actions are identified as needed, as a result o f the scrutiny o f the auditing firm, the external auditors, and Bank staff duringsupervision missions to verify expendituresand performance. 96 Uses o f Statement o f Expenditures 57. Disbursementsfor all expenditures would be made against full documentation, except for the following items o f expenditures: (a) contracts for works inan amount less than US$500,000; (b) contracts for equipment and goods in an amount less than US$250,000; (c) contracts for consulting firms in an amount less than US$lOO,OOO equivalent per contract, and contracts for individual consultants in an amount less than US$50,000 equivalent per contract, as well as all operating costs, which would be claimed on the basis o f Statement o f Expenditures(SOEs). All supporting documentation for SOEs would be retained at the PMCU or by each implementation partner and readily accessible for review by periodic IDA supervision missions and external auditors. 97 Allocationof IDA Grant Proceeds(excludingtaxes) Category Amount of the Grant Allocated YOof Expendituresto be (Expressedin SDR) Financed (1) Civil Works (a) Primary schools (a) 13,200,000 100% (b) UPN (b) 2,200,000 (2) Goods, Vehicles 4,600,000 100% (3) Textbooks 10,700,000 100% (4) Training, workshops 5,500,000 100% (5) Consultant services 12,600,000 100% I I (6) Teachers' Salaries 24,700,000 100% Installments (7) School Operating Costs Subsidies 20,100,000 100% Installments (8) Operating Costs 4,300,000 100% (9) Refinancing o f the Project 660,000 Amount payable pursuant to Preparation Advance Section 2.07 o f the General Conditions (10) Unallocated 640,000 TOTAL 99,200,000 98 Annex 8: ProcurementArrangements General 1. Procurement for the proposed Project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated May 2004, and the provisions stipulated in the Legal Agreement. The general description o f various items under different expenditurecategories i s described below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, estimated costs, the need for prequalification, prior review requirements,and time frame are agreed betweenthe Recipient and the Bank Project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual Project implementation needs and improvements ininstitutional capacity. 2. A CPAR was prepared by the Government with World Bank support and presented at a workshop heldinJune 2004. This assessment identifiedmajor flaws inthe country's procurement rules and systems - with outdated procedures and compromised administrative capacity. While remedial measures are being designed and implemented, national procedures cannot yet be used for the purposes o f implementingBank-financed projects. Overall, procurement arrangements for the Project build on experience to date withearlier Bank-financedProjects. 3. Procurement of Works: Works procured under this Project would include (i)the rehabilitation of about 260 schools including approximately 1570 classrooms scattered in all provinces, and (ii) the rehabilitation of the National Pedagogical University (UPN) in Kinshasa. The procurement will be done using the Bank's Standard Bidding Documents (SBD) for International Competitive Bidding (ICB) for rehabilitation o f the National Pedagogical University estimated to cost US$1,400,000 and National Competitive Bidding(NCB) procedures agreed with the Bank for the rehabilitation of classrooms. Contracts estimated to cost less than the equivalent o f US$500,000 will be awarded on the basis of NCB. Contracts estimated to cost less than the equivalent o fUS$l00,000 can be procuredthrough prudent shopping procedures. 4. Procurementof Goods: Goods procuredunder this project would include: (i) the purchase and distribution o f textbooks, including a teacher's guide, for primary grades 1-2 in French and mathematics estimated to cost US$14,800,000; and, (ii) school furniture, computers, laboratory equipment, vehicles, and related products. The procurement o f textbooks, computers, and vehicles will be done through ICB using the Bank's SBD. Contracts estimated to cost less than the equivalent of US$250,000 will be awarded on the basis of NCB. Office equipment and purchase o f off-the-shelf items may be procuredthrough prudent shopping procedures inpackages estimated to cost US$50,000 equivalent, or less, per contract. 5. DirectContracting: Goods and works whichthe Association agrees meet the requirementsfor Direct Contracting may, with the Bank's prior agreement, be procured in accordance with the provisions o f said procurement method. 6. Procurement from UN Agencies: Equipment, such as computers and vehicles estimated to cost less than US$2,000,000 equivalent per contract may be procured directly from Inter-Agency Procurement Services Office (IAPSO) in accordance with the provision of paragraph 3.9 o f the Procurement Guidelines. 99 7. Procurement of non-consulting services under this Project would use N C B procedures agreed with the Bank and would include the distribution o f textbooks inall provinces by different means of transportation deemed to be the most convenient and economical way to reach all schools, many of which are inremote areas o fthe country. 8. Selection of Consultants: The consulting services under this Project will be selected on a competitive basis and are related to the selection o f (i)the Project Manager (National Coordinator), (ii) an international accounting firm for the internal audit functions o f the Project; (iii)ProcurementAgent,(iii)teamofnationalscomprisingaCFO,Accountant,andTreasurer a a (iv) a Civil Engineer; (v) an Operations Officer specialist inMonitoring andEvaluation; and(vi) a specialist in Information Technology as well as (vii) technical auditors, (viii) technical assistance inspecific areas including literacy, textbook selection, andpublic sector planning, (ix) consultants for civil works (studies and supervision), and (x) for the Project midterm review and final evaluation. 9. Consulting firms for all assignments estimated to cost the equivalent o f US$lOO,OOO or more will be selectedthough Quality and Cost Based Selection (QCBS) methodology. For assignments costing less than US$lOO,OOO, QCBS or Least-Cost Selection (LCS) procedures may be used provided the assignment meets the requirements o f paragraph 3.6 inthe case of LCS. Consultant services provided by firms estimated to cost less than the equivalent o f US$lOO,OOO may be contracted by comparing the qualifications o f consultants in accordance with paragraph 3.7 o f the Guidelines. Assignments estimated to cost the equivalent of US$200,000 or more would be advertisedfor Expressions o f Interest(EOI) inUnitedNations Development Business (UNDB), in DgMarket online and inat least one newspaper of wide national circulation inDRC. Inaddition, EO1for specialized assignments may be advertised inan international newspaper or magazine. In the case of assignments estimated to cost less thanUS$200,000 the assignment will be advertised nationally. 10. Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions o f paragraph 2.7 o fthe Consultant Guidelines. 11. Operational Costs which would be financed by the Project such as material and supplies, finding of the Project Management and Coordination Unit (PMCU), would be procuredusingthe implementingagency's administrative procedures described in the Project Operations Manual to be reviewedandfoundacceptable to the Bank. ProjectProcurementArrangements 12. The Project activities span three central ministries: the Ministry o f Primary, Secondary and Professional Education, the Ministry o f Higher Education and Universities; and the Ministry o f Social Affairs and National Solidarity. All of them lack experience in procurement and none of them has any mechanism in place for procurement management acceptable to IDA. For these reasons, a Procurement Agent will be selected to assist the PMCU. All the procurement activities o f the Project will be carried out by the Procurement Agent which will act as a service provider for procurement. The Procurement Agent activities under the Project will be governed through a service contract with PMCU. The contract will be subject to approval by IDA. 13. After Effectiveness, the PMCU will implement the Project and be responsible for all aspects o f technical managementexcept the rehabilitation o f schools and the UPN where the Procurement 100 Agent has a clear advantage over the PMCU. The PMCU personnel will be recruited on a competitive basis. All TOR and technical specifications providedby the ProcurementAgent will be approved by the PMCU. The contracts will be signed by the PMCU and supervised under the PMCU's responsibility. 14. Most o f the issues/risks concerning the procurement component for implementation of the Project have been identified and include the current low procurement capacity inthe three central ministries. The corrective measures which have beenagreed are the use of a Procurement Agent and the training o f the staff in the ministries, starting in 2007, in accordance with the recommendations and action plan o fthe CPAR. 15. Considering the safeguards needed to be put inplace as described in this Annex, the overall project risk for procurement i s high. ProcurementPlan 16. The Recipient developed a Procurement Plan for Project implementation which provides the basis for the procurement methods as well as identifyingthe thresholds for prior review for each item. This planwas agreed betweenthe Recipient and IDA at negotiations and is available at the PMCU. The Procurement Plan will also be available inthe Project's database and on the Bank's external website. Publicationof resultsand debriefing 17. Publication of results o f the biddingprocess will be requiredfor all ICBs, NCBs, and Direct Contracting. Publication should take place as soon as the no objection i s received, except for Direct Contracting and NCB, which may be done quarterly and in a simplified format. For selection o f consultants, disclosure o f results i s also required. All consultants competing for the assignment would be informed o fthe result ofthe technical evaluation (number o fpoints that each firm received) before the opening o f the financial proposals, and at the end o f the selection process the results should be published. The publication of results in selection of consultants applies to all methods, however for QCBS and Single Source Selection (SSS) the publication may be done quarterly and in a simplified format. Losing bidders/consultants will be briefed on the reasons why they were not awarded the contract, if the losing biddedconsultants request explanation. Fraud, coercion and corruption 18. The Procurement Agent, the PMCU, and BiddedSuppliedContractors shall observe the highest standard o f ethics during the procurement and execution of contracts financed under the Project inaccordance with paragraphs 1.15 & 1.16 of the Procurement Guidelinesandparagraphs 1.25 & 1.26 of the Consultants Guidelines. Frequencyof ProcurementSupervision 19. In addition to the prior review supervision to be carried out from World Bank offices, it i s recommendedto have one supervision mission every six months to visit the field to carry out post review ofprocurementactions. Detailsof the ProcurementArrangementInvolvingInternationalCompetition 20. Goods and Works and non-consulting services (a) List of contract packages whichwill be procured following ICB and direct contracting: 101 Ref. Contract Estimated Procurement Domestic Review Expected No. (Description) Cost Method Preference by Bank Bid-Opening (US$ (yedno) (Prior / Post) Date million) 1 Rehabilitationof US$1.5 ICB Yes Prior June 2008 the National Pedagogical I University (UPN) 2 ITextbooks I US$12.9 ICB No Prior I March2008 Equipment, US$8.1 ICB No Prior March2008 Vehicles (b) ICB Contracts estimated to cost above US$500,000 for works and above US$250,000 for goods per contract and all direct contracting will be subjectto prior review by the Bank. 21. Consulting Services (a) List of Consulting Assignments recruitedinternationally: I I Review b: Expected Descriptionof Estimated Selection Bank (Prior Proposals Comments Assignment cost Method Post) Submission (US$ Date million) [nternational financial US$2.7 QCBS Prior Sept2007 Forthe 5 years managementfirm o f the Project ProcurementAgent US$2.0 QCBS Prior Sept 2007 iFor the first 3 years ofthe project (contract subjectto renewal) QCBS Prior Sept2007 Once every 6 audits monthsfor 5 vears Externalaudits of USS0.30 QCBS Prior Sept 2007 Once every6 xocurement monthsfor 5 lyears QCBS Prior Oct 2007 19people- EvaluationSystem- months Zoncept, design,and mdementation Medium-term :xpenditures USs0.39 QCBS Prior March2008 7people- iamework(MTEF) months 102 Review by Expected Ref. No. Descriptionof Estimated Selection Bank (Prior / Proposals Comments Assignment Cost Method Post) Submission (US% Date million) 7 Formulatesector US$0.39 QCBS Prior March2008 3 people- strategy months Ref. Descriptionof Estimated Selection Review by Expected No. Assignment cost Method Bank(Prior / Proposals Comments (US% Post) Submission million) Date ProceduresManual for administrative, 1 accounting, and US$0.02 ICB Prior May 2007 PPF financial management ofthe Project Settingup ofthe FMS 2 ofthe Project US$O.Ol ICB Prior May 2007 PPF Evaluationof existing US$0.09 ICB Prior April 2007 PPF 3 literacy programs 4 Textbook expert US$0.09 ICB Prior Aug 2007 PPF 5 Technicalaudits ofthe US$O.l5 ICB Prior April 2008 Once ayear Project for 5 years 6 Projectmid-term US$0.06 ICB Prior November 2008 1mid-term evaluation 1final - evaluation 7 Literacy experts US$0.35 ICB Prior Aug 2007 4 missions per year for 5 - years 8 Study for reforms Sept 2007 teacher career US$0.30 ICB Prior 9 people- - structures months 9 Study on Legal Nov 2007 framework of sector US$0.06 ICB Prior 2 people- months 10 Conceptualizepilot Nov 2007 literacy programs US$0.13 ICB Prior 4 people- months Training for pilot US$0.35 ICB Prior March2008 4 people- 11 literacy programs months per year for 5 years 12 Evaluationofpilot US$0.06 ICB Prior August 2008 1mid-term literacy programs 1final 103 1 Descriptionof Selection Review by Expected Assignment Method Bank(Prior / Proposals Comments Post) Submission million) Date 13 ITechnical assistanceon IIUS0.62 ICB Prior Nov 2007 4 people- learningachievement monthsper methodology year for 5 years 14 Develop US$0.029 ICB Prior Nov 2007 communications strategy 15 Assessment of stake- US0.029 ICB Prior Nov 2007 Holders' training needs 16 Train civil society US0.418 ICB Prior Dec 2007 - 0.5 - 3 people- groups (e.g. parent 2011 monthslyear committees)and for unions 5 years 17 Develop Citizen Report US0.145 ICB Prior NOV 2007 - 1person- Cards 2011 month per year for 5 years (b) Consultancy services estimated to cost above US$lOO,OOO per contract for firms and $50,000 for individual consultants and Single Source Selection of consultants (firms) for assignments estimated to cost above US$lO,OOO will be subject to prior reviewby the Bank (c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 of the Consultant Guidelines. 104 Annex 9: Economicand FinancialAnalysis 1. Rationalefor GovernmentInterventioninthe DRC EducationSector 1. Education has significant and positive economic and socio-political outcomes in the DRC. The mainjustification for public intervention inthe education sector is education's contribution to poverty reduction. Results from the most recent Poverty Report on the DRC have established that investinginexpanding and improving basic education and literacy has a significant positive impact on wealth creation and on household assets, although compared with other SSA countries, there are somewhat lower gains in wealth and assets observed in the DRC due to the collapse o fthe private economy and low public sector wages. 2. While education i s a key determinant o f household wealth status, education for all i s a goal unlikely to be achieved without significant Government intervention to offset the cost o f education, and make it affordable across social layers, geography and gender. Household surveys inthe DRC (BERCI, 2004, see Annex 12) show that for three children out o f four who are not enrolled, the reason for not going to school was the inability o fparentsto pay for the cost o f schooling. This result is confirmed by qualitative analyses using focus groups. The affordability issue i s more prevalent in rural than in urban areas, and i s significant among all quintiles o f wealth except the highest one. High cost o f education to families also generates a significant gender bias: both focus groups and survey data have confirmed that when faced with affordability issues parents typically withdraw their youngest child first, hoping that the child can still attend school at a later age, before withdrawing girls, and finally other male children. Therefore, Government intervention in, and funding of, education i s necessary both to boost access and to realize equity. 2. EconomicAnalysis of the Project Component 1:Increase Access and Equity at Primary Level. 3. The mainpriority to improve access and equity i s to break the poverty-illiteracy cycle. At the local level, and particularly in war-affected areas, priorities also include the need to provide resources for the rehabilitation o f schools. Paradoxically, the need for new schools i s not a factor as decisive as one would have expected given the lack o f public expenditures on basic infrastructure for social services. The relative availability o f schools inmany areas i s essentially due to the response o f the private sector, religious groups and other civil society components to the need o f the population that could not be met through public provision. It also reflects stagnant enrollment rates. 4. The project addresses the above issues by reducing the cost o f education to households and rehabilitating 1570 classrooms, which will boost both the demand for, and supply of, education. Expectedresults include a turn around from the decade-long decline o f the gross enrollment rate inprimary education to an increase ofenrollment rates from 64 percent in2007 to 75 percent by Project end in 2012. The proportion o f girls i s also expected to grow from 85 percent to 95 percent duringthe same period. 105 Component 2 Improve Quality ofPrimary Education 5. While solving the affordability issue i s the most important agenda from a poverty reduction perspective, parents are also raising important questions about quality. Improving quality would normally reduce repetition and subsequentlyreduce the cost o f educating a childthrough primary education. Due to lack o f empirical research, little i s known on the determinants o f education quality inthe context o f DRC. The project addresses this issue from two different angles. First, textbooks will be provided to every school child. Research inSSA countries confirms that this i s one o f the most cost-efficient interventions with respect to quality o f education. Second, the project seeks to create a research capacity to assess and monitor quality o f education, which i s instrumental to future quality improvement. Component 3: StrengthenInstitutionalandFinancialCapacity ofthe EducationSector. 6. The education sector capacity to implementits development agenda is severely compromised by the lack o f functional institutions. This component will strengthen capacity for policy planning, budgeting and program execution in pivotal areas for the sector including teacher career structure and teacher training, and the development o f a sector wide mediumterm strategy for education. 7. In conclusion, this shows that the project has a design that is in accordance with the diagnostic o f the education system as analyzed through the Country Status Report (World Bank, 2005b) and other analyses reported elsewhere inthis PAD. The economic impacts o fthe Project, through the increased participation, better quality o f education and increased institutional capacity, will be significant, and the project as a whole will yield significant positive economic returns. 8. Table A9.1 below, which presents a stylized PDO-level cost benefit analysis, highlights the Project's main benefits. TableA9.1: Cost-benefitAnalysis of the Project konomiccosts and ben fits PDO costs Benefits A. Reversedownturn in Project costs: US$104.5 a) 2.5 million additional students in enrollment, completion and million primary education by Project end. parity ratio: GER grows from Longterm effects are reduced poverty 64% in2007 to 75% in2012, and better social cohesion. completion rate grows from Recurrent costs: substantial, 29% in2007 to 35% in2012, as a result o f shifting the b) better equity as reduced education and Girls to Boys ratio grows burdeno fpaying fees from cost will lead to higher enrollment rate from 85% in2007 to 95% in household to public sector. among the poor 2012. See estimatesbelow under c) higher enrollment rates o f girls different scenarios. yield high social and economic returns (smaller households, better family health status and higher level o fassets cf. Poverty Report) 106 I B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improve quality o fEducation Project costs: US$28.8 a) Reading materials readily available mi11ion inall schools. Expected impact on learning achievement is not yet I quantifiable but international Recurrent costs: Negligible experience shows that it is likely to be substantial across all categories o f schools b) reduceddropout rates are likely c) capacity to monitor quality and undertake related research is instrumental for future improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C. Reform teacher career Project costs: US$5.06 a) More efficient partnership between structure (training, million State and civil society will improve deployment, salary and efficiency o f school operations incentive structure); renovate legal and institutional Recurrent costs: substantial b) better motivatedteachers framework and prepare as a result o f salary increase. c) clear strategic direction and strategy and action plan See estimates below under coherent budget allocation, in line different scenarios. with priorities 3. FinancialAnalysisof the Project 3.1 What would berequiredto reachinternational EFA benchmarks? 9. Financial simulations developed within the framework o f the Country Status Report (World Bank, 2005b) identified policy variables with the greatest impact on expenditures, and highlightedthe trade-off that the government will need to make to meet the goal o f UPE while improving quality at all levels. More importantly, these simulations have also shown that the requirements for external financing are considerable, because of the enormous needs at the primarylevel. This sectiontakes these simulations one step further by including anevaluation o f the Project impact on government finances by taking into account the increase inrecurrent costs resulting from the Project, likely budget shortfalls and prospects for reducing them, the Government's current fiscal situation and the overall level o f recurrent costs requiredto operate the sector adequately. 10. Table A9.2 below recapitulates how the DRC's spendingpattern on education is somewhat atypical even when compared to other poor African countries: i)the share o f education in Government expenditures i s the lowest on the continent, ii)the share o f primary education in total education expenditures should increase significantly to reach the African average or values recommended inthe EFA-FTIframework, iii)studentsto teacher ratio could be increased by up to 10 percent without expected decline in quality while generating substantial savings, and iv) average teachers' income, including parents' contributions, are relatively high at 8.1 times the per capita GDP, but fall to more reasonable levels when only official salaries are accounted for, at 4.3 and 2.0 times the GDP per capita, for Kinshasa and outside Kinshasa, respectively. 107 Table A9.2 :International Comparisons Share of Share of Student Average Educationin Primary to Teacher Government Education Teacher Wage as a Budget in Total Ratio multipleof ("/I Education per capita Budget(YO) GDP DRC (2005) 9 I 43 I 37 I 8.1 Cameroon(2002) 15 40 57 3.9 Republic of Congo(2002) 10 39 65 2.3 CentralAfrican Republic (2002) 10 52 d a 4.9 Uganda(2002) 30 47 53 2.9 Chad (2003) 25 49 66 5.4 Average SSA (2001) 19 49 42 4.6 FTIIndicative Framework 20 I1I 50 11I 46 III 3.5 11. Giventhese characteristics o f the education system, three different scenarios were formulated with different assumptions for key policy factors, with the aim to identify ways to minimize the financing shortfalls generated by the Government decision in 2005 to eliminate the teachers' bonuses paid by families (FDM). To reduce expenditure, various realistic efficiency gains are introduced gradually, including a reduction o f repetitionrates from 17% percent to 10 percent in 2015. Macro-economic data have beenset inline with most recent Bank and IMFprojections o f economic growth and fiscal revenue. All scenarios aim to achieve a completion rate o f primary education o f 100 percnet by 2015, which i s consistent with PRSP goals, but rather optimistic given the starting point. The scenarios also exclude capital expenditures, which are assumed to be covered by external financing. 0 Scenario 1assumes no compensation for teachers' lost income from FDM, while official salary levels remain unchanged with reference to the per capita GDP. Key funding allocation parameters are also kept unchanged from their 2005 level, i.e education receiving a low priority in Government budget (8.8 percent o f total expenditures) and primary education share remaining stable intotal spendingon education, at 43.4 percent. This scenario, since it affects teachers' morale and disruptsthe working climate at school as confirmed by recent teacher strikes triggered by the Government decision to eliminate the bonuses, is the worst case scenario from a political perspective. It does, however, leave a relatively minor financing gap for the period 2006-2011, an estimated FC 18 billion (est. US$35 million), or 8 percent o f projected primary education expenditures. The financing gap becomes unsustainable thereafter, and rises to FC 106 billion (est. US$212 million) during the 2011-15 period or 21 percent o f total primary education expenditures. 108 0 Scenario 2 seeks gradually to align the key policies illustrated in Table A9.2 with regional standards and FTI-recommended values, and shifts the responsibility o f paying the teachers' bonuses to the state. A key implication is the alignment o fthe budget share allocated to education with the stated PRSP goal o f 25 percent. Despite its proposed significant increase in resources to education, this scenario leaves a financing gap estimated at FC 410 billion (est. US$ 0.8 billion) in2006-2010, and FC 620 billion (est. US$1.2 billion) in 2011-2015, which i s equivalent to 53 percent and 35 percent o f total expenditures on primary education, respectively. To attenuate this funding shortfall, an alternative scenario would be to stabilize teachers' remuneration after the initial increase, which would translate into a gradual decline of their real remuneration. This alternative scenario remains unsustainable inthe long run. 0 Scenario 3 i s a result o f significant efforts, both to reduce expenditure and increase funding. Expenditure is reduced by assuming that teachers accept an initial 25 percent reduction in their total earning (including FDM) before this earning starts increasing again at a moderate rate to stabilize over the long term around 6 and 4 times the per capita GDP for Kinshasa and outside Kinshasa, respectively. Funding i s improved by increasing the share o f primary education intotal education expenditure up to 60 percent as soon as 2010. This scenario also assumes that students to teacher ratio could increase to 50:l inKinshasa and 40:l outside Kinshasa, which i s not optimal but still lower than most countries inthe comparator group. Inthis scenario, the shortfall remains relatively highin2006-2011 at FC 110 billion est. US$220 million), or 28 percent o ftotal primary education expenditures, but declines rapidely thereafter to become sustainable in 2011- 2015 at FC 30 billion (est. US$60 million), or 3 percent o f total primary education expenditures. 12. Chart A9.1 summarizes the financial state o f the education sector for these scenarios by 2015. While these scenarios are only indicative at this stage, they have the merit to help identify the most sensitive policies at play. They also show that the financing gap in2011-2015 couldbe considerable, reaching as high as 53 percent o f expected expenditureson primary education for Scenario 2, but with certain policies, this shortfall could be reducedto an acceptable level by 2015. Assuming that transition rates from primary to secondary education, and from secondary to higher education, are stabilized at their current levels, financial sustainability depends essentially on four policy parametersbelow: 0 Increasing resource allocation to education to reach 25 percent o f fiscal revenues by 2015; Increasing the share o f primary education in the next 5 years from 43 percent to 60 percent in 2006-2011, before reducing this level to 50 percent in the 2011- 2015 period; 0 The renegotiation o f the terms o f the work contract between the State and the teachers, and adopting a long term perspective for the upgrade o f the teacher compensation and career structure; 0 Improving efficiency and controlling unit cost through the rationalization o f the number o fteachers andtheir rigorous allocation accordingto needs. 109 Chart A9.1: Resources Shortfall Resources Shortfall in % of Projected Education Budgets 60% 50% 40% 30% E2006-2010 E2011-2015 20% 10% 0% I Scenario 1 scenario 2 scenario 3 3.2 What is politically feasible? 13. It i s unlikelythat the new Government, which i s under pressure to stabilize the post-election situation and eager to show a "post-election dividend" would win support by announcing cuts in teacher salaries. Furthermore, no matter how prominently the new Government promotes universal basic education, it may be difficult to reallocate domestic resources on the order o f the first two policy parameters suggested inthe previous section. What, then, would be a politically feasible approach for the new Government to show traction on its commitment to phase out school fees, while also showing sensitivityto the situation o fteachers? 14. To answer this, the Project preparation team generated another set o f scenarios focused on the fees which make up three-quarters of the overall fee burden for primary education: FDM, FDF, and FDIP. The interest that guidedthese calculations was to explore the extent to which the new Government could continue to improve on the package o f policy interventions initiated by the previous Government: the practice o f subsidizingthe FDFwhile also improving the salary conditions o f practicing teachers. Would it be possible, in fact, to take a much bolder step and completely abolish the FDF and FDIP? Could the Government take a greater number o f practicing (primary school) teachers onto the public payroll, thus offering betterjob stability and reducing the number of teachers who would otherwise be paid entirely through the FDM? Would it be financially feasible to take both o f these steps, evenunder more cautious projections about growth rate o f the public sector and the level to which the national budget could increase allocations to education? 15. Using similar assumptions as inthe scenarios above regardingthe introduction o f efficiency gains and assuming a five percent annual average growth rate o fthe economy, the new scenarios outlined two key parameters o f effort requiredo f Government: 110 (i) Steady increase of recurrent expenditure in the public sector as a percentage of the GDP, from the present level o f 8.6 percent to 12 percent by the end o f the Project. This would entail that the 2006 envelope for recurrent expenditure would increase nominally by year 2011 by around 78 percent. (ii) Reallocationto primary and secondary education (EPSP budget) within the recurrent portion o f the national budget to increase from the current 20 percent to 27.5 percent by the end o f the Project. This means that the 2006 allocation o f recurrent expendituresfor primaryeducation would increase innominal terms by 75 percent by 2011. 16. The combined effect of increasing the share o f primary education expenditure within an overall increased public sector budget could raise the total expenditurefor primary education by 144 percent by year 2011, in nominal terms. This is only recurrent spending. The scenarios exclude capital expenditures. 17. Three new scenarios were developed for supporting the reduction o f school fees. Each scenario embeds the previous one and adds a new policy variable. The scenarios follow below, andTable A9.3 at the end o fthis section summarizes the impact o feach scenario. Scenario 1 0 DescriDtion: This involves only the part o f FDMthat completely finances primary school teachers who are NM (in either registered schools i.e. PA, or non-registered schools). Government estimates that around 25,000 primary school teachers are PA, and that an additional 59,000 teachers are operational on the ground, but not drawing public salaries (estimates providedby SECOPE and the Provincial branches ofthe Ministry of Education). In the latter group, only about a quarter (15,000 teachers) are believed to be working in situations, which are deemed fully "viable" by the national and local governments; that is, these teachers have been identified for inclusion in the public payroll pending availability o f funds. This scenario would thus entail "regularizing" roughly a maximum o f about 40,000 NMteachers by takingthem onto the public payroll. Qualitative assessment: Insofar as all these NMteachers are currently being financed by FDM, this policy measure would automatically benefit households whose children attend schools where the roster o f teachers has not yet been fully regularized. In these cases, putting teachers onto the public payroll should result in an automatic abolition of FDM, provided that what parents were paying was, on average, less or equal to the official salary level that the subsequently regularized teachers would receive. However, if the new payment from the Government could not cover the entire amount that the teachers were making formerly when fully paid through the FDM, there i s a risk that the schools would continue charging this fee to top up the salaries o f these teachers. In sum, the extent to which the actual take home pay o f the teachers newly incorporated into the public payroll differs from what they were getting from fees before will determine the potential for actually reducing the level o f the FDM at school level. In addition, in cases where the teachers newly taken onto the public payroll would be working in schools alongside teachers who had been paid public salaries all along - and who are also getting top-ups from parents - the potential for reducing the FDM at school level would be even lower since the newly regularized teachers may claim that they, too, should have an additional top-up. 111 0 Financial implications: As this option may have an immediate impact in about 20 percent o f the public school system, but not more, the largest potential impact on enrollment overall could be about 10percent, but only for the first year. The evolution of financing needs for the Government show an important financial gap o f roughly US$25 million inthe first two years o fthe project, quickly going down across time and rendering this approach fully feasible by the last year o f the Project (2011-2012). The financing needs would therefore be largest inthe first three years o f this initiative; and the average needon a yearly basis would be around US$12 million. Scenario 2 DescriDtion: This involves both the FDM and the FDF, which together represent between 75 percent and 80 percent o f all school fees at the primary school level. Inthis case, this scenario retains the regularization o f teachers as above but supplements this with full abolition of the FDF and the FDIP. As a compensation for the revenue loss to cover school operating costs, the Government would implement a compensation system by which lump sum grants are distributedto all registered primary schools. Criteria for distribution would take into consideration school size, among other indicators. Finally, the system could use the same disbursement mechanisms currently prevailing for the allocation o f HIPC funds to 22,900 primary and secondary schools. 0 Pros and cons: This alternative adds the potentially attractive political move for Government to completely abolish a couple very significant fees, and to reduce another major fee (FDM) while stabilizing the situation for a sizable number o f primary school teachers by taking them onto the public payroll. Since schools will be automatically compensated for the elimination o f these fees, this alternative should automatically impact enrollment more greatly thanthe effects foreseen for Scenario 1. 0 Financial implications: The impact on enrollment o f scenario 2 i s estimated to be twice as large as Scenario 1, meaningthat enrollment inpublic primary schools could grow by 20 percent inthe first year. The size o fthe financing gap i s fairly large at the start (about US$50 million for the first two years) but it decreases over time (reaches about US$30 million by 2011). The average annual financing gap i s approximately US$43 million. Yet, the decreasing trend inthe gap means that this alternative would eventually become sustainable later on, say, by 2015. Scenario 3 0 Description: This goes one step further inthe process o f abolishing school fees. On top o f the regularization approach (as above for primary school teachers) and abolition o f FDF and FDIP, it tackles the bulk of the system: the FDMused as top-ups for salaries. Inthis case though, the compensation package is slightly different as it needs to add to the lump sum grants to primary schools an additional amount that will directly impact on teachers' salaries. It is critical to remember that the immediate abolition o f top-ups for salaries would automatically lead to a de facto reduction o f about 50 percent in the amount o fteachers' take-home pay. Therefore, the only way o f carrying out a successful full abolition o f both FDF (including FDIP) and FDM- i.e. 75 percent to 80 percent o f all primary school fees across the country - i s to implement an immediate compensation package to both schools and teachers o f about the same magnitude o fthe financial loss in each case. 112 Pros and cons: This option is, by far, the most comprehensive o f the Scenarios analyzed for moving towards a full abolition o f primary school fees. In this case, the policy reform envisaged would have an immediate impact on enrollment that would be sizeable: estimated increase o f 40 percent in the first year, and almost 100 percent cumulative in5 years. This would helpput the country quickly on track for reaching the MDGs in terms of access. Teachers would receive a second increase in salaries (after the important one they received in September2005) that would finally validate their red market prices, bringing the system to a new equilibrium that, especially in the regions outside Kinshasa, would probably attract people to teaching, increase their real pocket salaries, and plausibly increase quality as a result. Financial imDlications:The cumulative financing gap would be around US$900 million over 5 years, which would make the situation for Government unsustainable in the longer term due to the increase inboth the quantity (caused by the enrollment upsurge) and price o fteachers. Therefore, although this Scenario is attractive intheoretical terms to redress the burden that school fees represent for parents and immediately increase primary school enrollments, the automatic impact on the national budget would be such that the Government would face high and increasing financial gaps. In addition, there would be both financial and political costs ifthis alternative would leadto strikes or civil unrest causedby pressure groups perceivingthat teachers are favored, Table A9.3: Financial implications of three scenarios for abolishingprimary school fees Financial implications Sector-wide approach - Policy :ompensation Total financinggap - reforms package for Effect on Shock Measuredinterms ofthe gap inrecurrent mbedded revenueloss enrollment (specific educationalpolicyapplied) expenditures at primaryeducationlevel (in millions ofUSdollars) Completeregistrationofall schools currentlyinthe Cleanupof Minor (10% increax i pipelineat SECOPEf Completeregularizationoft system None 1styear only) - I 2007 2008 2009 2010 2011 Total teachersinbothformerly registeredschools(pstes 24.9 23,l 13,7 3,7 -6.8 58.6 autorisk) andnewlyregisteredones Cleanupof system+ Schoolfee 51.0 52.9 455 37.7 29.5 216.6 - abolition schools policy Cleanupof system+ Lumpsum f Significant(40% Schoolfee reachersalariesincreaSein 1styear, 5% Scenario2 f Immediatereductionofallfrais de 144,3 161.0 169.6 204.8 230.9 910.7 abolition ncreax(IN%) annualincrew in motivurion in2007 -policy following4 years) 113 3.3 Toward a financing strategy for EPSPas a whole 18. The analysis o f scenarios presented above depicts the magnitude o f the potential financing gaps involved if a set o f reforms dealing with different degrees o f reduction o f school fees took place inthe primary school system. As referred above, Table A9.3 illustrates the gaps: a) at the level o f recurrent spending (i.e. without considering the impact on necessary and complementary capital expenditures); b) for the primary school level o f education (although both pre-primary and secondary school sub-sectors were also modeled). Any analysis o f potential reforms introduced to gradually eliminate user fees inprimary education, however, needs to incorporate an overview o f how the entire EPSP sub-sector will adjust and cope with the needs o f all three levels of education involved. 19. The parts o f the EPSP sub-sector other than primary are also plagued with problems. There i s very limited supply o f pre-primary education in the public sector (less than 15 percent o f all pre-primary schools in the DRC are public), except for the province/city o f Kinshasa where the private sector has a significant contribution. The secondary level has a larger overall coverage in the public sector thanpre-primary, but secondary education i s halfthe size o fthe primary and, on average, charges higher school fees partly because it suffers from a higher rate o f non- regularized teachers. 20. Table A9.3 above showed that the amount o f public funding that would be necessary to eliminate the financial contribution parents currently make to send their children to public primary education is enormous, and not feasible to be dealt with in the absence o f a firm commitment from the national Government to increase the overall allocation to education inthe national budget. Given the obvious needs in other sub-sectors o f EPSP, it is also important to explore how the rest o f EPSP would fare if a disproportionate effort were made to increase resources for primary duringthe lifetime o fthe Project. 21. Table A9.4 below presents a detail o f the financing gaps within EPSP if scenario 2 were to be implementedand different strategies for increasing the percentage allocation to education in the national budget were carried out along the scale of a moderate increase to a large boost during the lifetime o f the project4. The message is clear. In the absence o f other sources of income, it i s impossible for the Government to enhance the public education system without a commitment that will ultimately more than double current education spending within a few years. And yet, even with a moderate increase in the education share o f an ever increasing national budget, an entire set of complementary reforms would be needed, for instance, to eliminate school fees at the primary level. This suggests that only by fostering a healthy environment for sustained rates o f economic growth and by reaching international standards for the allocation o f public funds to education (e.g. 20 percent), the DRC will be able to achieve a significant expansion o f access within its education system at all levels. Notethat the simulationexerciseuses a set ofassumptionsofvaried implications,the most importantbeingthat: a) the GDP ofthe country grows 5% rate annually for the next 5 years; b) the size ofthe public sector, as measuredby the national budget remains constant as a percentage of the GDP; c) the share of primary education within the education budget grows until reaching the 50% mark; and d) no reform other than the one implemented at the primaryeducationlevel is undertakenduringthe lifetimeofthe project. 114 Base Year Lifetime o f the project Total 2006 II 2007 2008 2009 2010 2011 cumulative Education's importance in budget increases slowly Assumptions % EPSP Education on national budget 9.4 9.9 10.4 10.9 11.4 11.9 % PnmaryEducation on educaaon budget 40 42 44 46 48 50 Financing available by sub-sector(millions of USdollars) PrnW 72 101 116 134 153 175 Others (Re-Pnmary, Secondary) 61 81 90 99 109 119 Total 134 182 206 233 262 294 1,176 Educational needs by sub-sector (millions of US dollars) Prunary 123 144 156 169 175 Others (Pre-Prmary, Secondary) 64 79 92 107 124 Total 187 222 247 276 299 1,232 Financing gap by sub-sector (millions of US dollars) Prlmary (22.5) (27.3) (22.2) (15.6) 0.3 Others (Re-Pnmary, Secondary) 17.1 10.9 7.3 1.9 (5.5) Total (5.4 (16.4) (14.9) (13.7) (5.1) (55.5) WEducation'simportanceinbudgetincreasesmoderately(expected) Assumptions % Education onnational budget 9.4 10.4 11.4 12.4 13.4 14.4 % Pnmary Education onnational budget 40 42 44 46 48 50 Financing available by sub-sector (millions of USdollars) Primary 72 106 128 152 180 212 Others (Pre-Primary, Secondary) 61 86 98 112 128 144 Total 134 191 226 265 308 356 1,346 Educational needsby sub-sector (millions of USdollars) Primary 123 144 156 169 175 Others (Pre-Pnmary, Secondary) 64 79 92 107 124 Total 187 222 247 276 299 1,232 Financing gap by sub-sector (millions of USdollars) Primary (17.3) (15.9) (3.6) 11.5 37.4 Others (Pre-Primary, Secondary) 21.3 19.6 20.9 20.9 19.6 Total 4.0 3.6 17.4 32.5 56.9 114.4 Scenario 3: Education's importance i n budget increases quickly Assumptions % Education on national budget 9.4 11.4 13.4 15.4 17.4 19.4 % PrunaryEducation onnational budget 40 42 44 46 48 50 Financing available by sub-sector(millions of USdollars) PnmW 72 116 150 189 234 286 Others (Pre-Primary, Secondary) 61 94 116 140 166 194 Total 134 210 266 329 400 480 1,684 Educational needsby sub-sector (millions of USdollars) Primary 123 144 156 169 175 Others (Pre-Primary, Secondary) 64 79 92 107 124 Total 187 222 247 276 299 1,232 Financing gap by sub-sector (millions of USdollars) pnmaty (7.1) 6.4 33.3 65.4 111.0 Others (Pre-Primary, Secondary) 29.5 36.9 48.2 59.1 69.6 Total 22.4 43.3 81.5 124.5 180.6 452.2 w I)WeassumethattheGDPgrowatanannualrateof5%throughouttheilfebmeoftheproject.TheproprhonofthenationalbudgetinternofGDP ISheldconstant at 26.3% 2) Budgetaryallocahonsby sub-sector havebeen eshmated from the last AmmendedBudget2006. We assumethat capital expenditureswill remam at 25% of total expendimesby sub-sector. We also assumethat the proportionof expenditureson pre-primaryand secondaryeducabonremansconstant at 34%, the current eshmatedallocation. 3) EPSP refersto the pre-primary,primary, and secondarylevelsof education.T h e highereducation level is not simulatedheredue to their budgetingbeing w e d out by adifferentMinishy. Annex 10: SafeguardPolicyIssues Environmentaland SocialManagementFramework(ESMF)and ResettlementAction Plan (RAP) The Project has beenclassified as a "B" category for environmental screening purposes. 1. This annex summarizes the guidelines and decision-making processes that will be used to avoid or minimize adverse environmental and social impacts o f the Project, ensuring that its implementation meets with the requirements o f the International Development Agency o f the World Bank as described in its safeguard policy on Environmental Assessment (OP 4.0) and Involuntary Resettlement (OP 412). These safeguard policies have beentriggeredbecause o f the rehabilitation activities at primary schools and at the National Pedagogical University, although no new land acquisition i s envisaged. 2. No major environmental or adverse social impacts are expected. However, small-scale civil works may have minor adverse environmental and social impacts. The ESMF and the RAP disclosed in the DRC and through the World Bank Infoshop during Project preparation have therefore outlined mechanisms to address the safeguards challenges: a screening and review process for potential environmental and social impacts; procedures to avoid or mitigate prospective adverse impacts on the environment; a complaint mechanism; and procedures for monitoring and evaluation. ProhibitedActivities 3. Screening and review will take place prior to the submission o f rehabilitation activities for funding. To avoid adverse impacts on the environment and people, the ESMF and the Project Operations Manual and Technical Guidelines specify activities which are eligible / not eligible for support. For example, the Project will not support new land acquisitions or the expansion o f existing settlements in protected areas or areas proposed for protection. Where settlements already exist, proposals for funding must be in compliance with national land management regulations, and provisions in protected area management plans. N o track upgrading or road rehabilitation o f any kind will be allowed inside natural habitats and existing or proposed protected areas. No Project support will be provided if activities involve involuntary resettlement. Activities which will have adverse impacts on social groups withinthe community and/or in neighboring communities cannot be funded. Prohibited activities also include the use o f construction materials which contain asbestos. Rolesand Responsibilities 4. Overall responsibility for implementingthese guidelines lies with the Project Management and Coordination Unit (PMCU). It will ensure that the guidelines are appropriately disseminated and that Project staff have the requiredskills and receive training to ensure that the safeguards procedures and screening process will be followed as prescribed, and that no activities prohibited underthese guidelines are funded. The PMCU is responsible for proper monitoring of social and environment issues and will incorporate necessary changes to the guidelines and procedures based on recommendations from monitoring exercises and inagreement with the World Bank. Screeningand Analysis ofAlternativeDesigns 5. All activities supported by the Project funds must avoid or minimize negative environmental impacts by exploring viable alternative designs and by following the Project Operations Manual 116 and Technical Guidelines. It i s anticipated that most adverse impacts will be highly localized and be temporary in nature, easily mitigated through the application o f sensible site selection criteria for the rehabilitations, good constructionpractices, and diligent management practices in the operational phasewith specific guidance on how to manage environmental aspects. Standard operating procedures for various types o f rehabilitation projects will be incorporated into the Technical Guidelinesproviding technical designs and costs. 6. The Project covers the entire country and aims to rehabilitate 1570 primary school classrooms and the National Pedagogical University. The Infrastructure Directorate o f the Ministry o f Primary, Secondary and Technical Education will carry out an initial screening o f schools which may be recommended for rehabilitation. A screening checklist will be used to classify the schools into three categories: Rehabilitation with low or no environmental impacts: Rehabilitation activities will follow the standard operating procedures, and may be submitted for consideration without any environmental evaluation; Rehabilitation expected to generate moderate impacts: This will require preparation o f a simple environmental evaluation and incorporation o f recommended mitigation measures in the tender documents prior to submission. Rehabilitation activities in this category are eligible for support, but only if appropriate measures are taken to reduce and avoid negative impacts. Activities which require an environmental evaluation include proposals which involve large-scale or sensitive landandwater use changes, or extensive rehabilitation. Rehabilitation with signiJicant andor excessive environmental risks: This should not be submittedfor consideration, andwill not be supported. There will be no involuntary resettlement. Therefore, assessment will include screening for possible involuntary resettlement, usingthe Resettlement Action Planprepared for the Project. 8. The above will generate a list o f schools for possible rehabilitation. More detailed technical assessmentswill then be required, and will be conducted by firms contracted by the Procurement Agent the PMCUwill contract for the Project. The TOR for the firms will specify that they must use the more detailed environmental screening instrument that was disclosed in the ESMF and that i s beingincorporated into the Project Operations Manual. 9. Decisions on the sites to be rehabilitated are made by the Project Steering Committee upon recommendation, and with information provided by, the Project Management and Coordination Unit (PMCU). The PMCUbases its recommendations on the proposals of the firms. The CPA forwards these proposals after vetting them, in consultation with the environmental unit o f the Ministryofthe Environment. 10. As part o f the selection requirements, all rehabilitation proposals must include a brief description o f the existing environment at the site, any known environmental sensitivities, and any sites affected with known paleontological, historical, cultural, religious or unique natural values. The contracted firms, assisted by the CPA and ministry technicians, will expand on the environmental information collected through reference to existing reports and studies (if available), through discussions among community members or through new data collection if necessary. Rehabilitation proposals which do not provide adequate environmental data cannot be considered for financing untilthey meetthe above requirements. 117 Resettlement 11. Proposals must be carefully reviewedby the CPA, inconsultation with the authorities o f the Ministryfor Primary, Secondary and Professional Education, the Ministry for HigherEducation and Universities, the Ministryofthe Environment, provincial and local education authorities, and the managers o f the educational institutions concerned, to ensure that the Project does not fund any rehabilitation leading to involuntary displacement, loss o f income, or source o f income restrictionto commonly heldresources. Ethnic Minorities 12. The Project will follow the key principles o f the World Bank's policy concerning ethnic minorities (Operational Policy 4.20 on Indigenous Peoples), which are to "ensure that indigenous peoples do not suffer adverse impacts during the development process.. .,and that they receive culturally compatible social and economic benefits." These concerns are met through the design o f the Project itself, the screening form and the monitoring and evaluation framework, including external assessments. The PMCU i s tasked to review rehabilitation proposals to ensure that all groups in the population have been consulted and will benefit from Project activities in the Project areas. Mitigation Measures 13. The Project will apply appropriate mitigation measures to reduce or avoid negative impacts on people or the environment. The ESMF and Project Operations Manual provide specific guidelines on managing environmental aspects such as work place debris, including the removal of asbestos. Where rehabilitation proposals trigger environmental evaluation and the need for an impact mitigation plan, the tenders to be issued for the rehabilitation work will include a description o f the mitigation activities required. To produce this, the CPA will work with the environmental unit o f the Ministry o f the Environment. The PMCU will oversee this process to ensure that no tenders are issued without the required mitigation plans. The firms who are selected will be obligated by contract to carry out the mitigation actions as well as the construction activities for rehabilitation. Monitoring 14. The promotion o f sound management o f environmental and social impacts i s incorporated into the Project's monitoring and evaluation framework. Approved projects with environmental and/or social impacts will be supervised and monitored by the technicians o f the CPA, in consultation with the MEPSP technicians and Provincial education authorities, and oversight by the PMCU. The technicians o f the CPA and MEPSP engineers will monitor execution o f the rehabilitations on an ongoing basis, at least at mid-point and completion, following the information provided instandard sheets inthe Project Operations Manual. 15. General monitoring and evaluation o f the Project, including monitoring and evaluation by independent entities or consultants, will pay particular attention to issues concerning the environment, social impacts and ethnic minorities and resettlement/land acquisition. The findings and any recommendations from the above will be recorded in quarterly reports to be furnishedto the PMCU and sharedwith WorldBank implementation support missions. 118 CapacityBuildingand Training 16. The Project provides for training to strengthen environmental and social awareness, and to build capacity for environmental and social impact assessment and mitigation measures within the PMCU, the participating ministries and provincial authorities, the CPA and other contracted firms and participating schools. By incorporating the environmental unit o f the Environment Ministry in the training and screening processes, the Project is harmonizing environmental assessment capacity building in the present Project with interventions in other IDA Projects which finance rehabilitation inthe education sector. ComplaintMechanism 17. Complaints about environmental, ethnic minority or settlement issues will be handled as follows: Step 1: Persons potentially affected or concerned present their complaints orally or inwriting to the local education authorities who are responsible for the activity in question. The authorities will respond, on the record, within fourteen (14) days. The persons bringing the complaint(s) will be exempt from all administrative or legal charges (notary public, legal fees) associated with filing the complaint. The authorities will transmit a report on eachdispute to the CPA. Step 2: Inthe event that a local or provincial level education authority does not resolve the issue to the satisfaction o f the person(s) who brought the complaint, the case i s referred to the PMCU andthe ProvincialAssemblyfor reviewandaction. Step 3: The PMCU i s expected to work with the local authorities (mayors), the authorities at provincial level (PROVED), and others as they may be involved, to bring final resolution to all complaints and other sources o f conflict during all steps o f identification, conception, planning, implementation, and monitoring o fthe Project activities. 119 Annex 11:ProjectPreparationand Supervision Planned Actual PCNreview October 28,2004 October 27,2004 Appraisal November 22-30,2005 Nov 22 - Dec19,2005 (Second Appraisal January 17- February 10,2007) Negotiations December57,2005 December 19-23,2005 (SecondNegotiations April 19-26,2007) Board approval May 31,2007 Planneddate of effectiveness September 30,2007 Planneddate of mid-termreview December31,2009 Plannedclosing date December31,2012 Key institutionsresponsible for preparationof the project: Ministries of: (i)Primary, Secondary and Professional Education; (ii)Higher Education and Universities; (iii)Social Affairs and National Solidarity; (iv) Finance; (v) Budget; (vi) Civil Service. Peer reviewers: Birger Fredriksen (Consultant, AFTHD); Keiko Miwa (Senior Education Economist, ECSHD); Richard Cambridge (Operations adviser, AFTOS); Thomas Walton (Lead Regional Coordinator, Environmental Safeguards); Rosita Maria Van Meel (Senior Education Specialist, SASHD); Juan Prawda (Lead Education Specialist, LCSHE); Robert Prouty (Lead Education Specialist, HDNED); Kai Kaiser, PRMPR (Senior Economist), and Norbert Mugwagwa (AFTHD). Bankstaffand consultantswho worked on the Projectincluded: Name Title Unit Susan Opper Sr. Education Specialist, TTL AFTH3 JuanDiego Alonso Economist AFTH3 MouradEzzine LeadEducation Specialist AFTH3 William Saint LeadEducation Specialist AFTH3 SakhevarDiop Sr. Education Specialist AFTH3 Sajitha Bashir Sr. EducationEconomist AFTH3 Luc Gacougnolle EducationPlanner HDNED Peter Materu Senior Education Specialist AFTH3 BrendanHorton LeadEconomist AFTP3 Keiko Kubota Senior Economist AFTP3 120 Helena Maria Grandao Ramos Public Financial Specialist AFTP3 Gilles Marie Veuillot Legal Counsel LEGAF T. MpoyKamulayi Legal Counsel LEGAF Renee Desclaux DisbursementOfficer LOAG2 Agnes Albert-Loth DisbursementOfficer LOAG2 L e i f Jensen LeadFinancialMgt Specialist AFTFM JosephKizito Sr. Financial Mgt Specialist AFTFM Jean Charles Kra Sr. Financial Mgt Specialist AFTFM Pierre Morin Senior Procurement Specialist AFTPC Philippe Mahele Procurement Specialist AFTPC Luc Lapointe Consultant, Procurement AFTPC Nadege Nouviale Program Assistant AFTH3 Astania Kamau Program Assistant AFTH3 Jean-Bernard Rasera Consultant, Sector Analysis AFTH3 Maude Svensson Consultant, Governance AFTH3 BernardKwindja Consultant, Education AFMCD Gabrielle Rooz Consultant, Finance AFTH3 SouleymaneZerbo Consultant, Civil Works AFTH3 Fay Chung Consultant, Teacher Training AFTH3 Richard Akoulouze Consultant, Teacher Training AFTH3 Binta Rassoulala Aw Sal1 Consultant, Nonformal AFTH3 Education Bank funds expended to date on project preparation: 1. Bankresources: US$670,000 2. Trust funds: US$141,000 3. Total: US$811,000 EstimatedApproval and Supervision costs: 1. Remaining costs to approval: US$15,000 2. Estimated annual supervision cost: US$200,000 121 Annex 12: SelectedDocumentsin the ProjectFile (i)WorldBankDocuments Proiect Documents Aides Memoires Back-to-office Reports Project Concept Note Project Concept Note Review Quality Enhancement Review Project Appraisal Document Integrated Safeguard Data Sheet Project PreparationFacility Other World Bank and Consultant Documents Al-Samarrai, S. and H. Zaman. (2002) "The Changing Distribution o f Public Education Expenditure in Malawi," Africa Region Working Paper No. 29, March, World Bank, Washington. Avenstrup, R., X Liang and S. Nelleman. (2004) "Kenya, Lesotho, Malawi and Uganda: Universal Primary Education and Poverty Reduction," a case study from Reducing Poverty, Sustaining Growth. A Global Exchangefor Scaling UpSuccess Scaling UpPoverty Reduction: A Global Learning Process and Conference Shanghai, May 25-27, 2004, World Bank, Washington. BERCI (2004) "Etat des lieux des mkanismes de gestion et de l'efficacitk de la fourniture des services de base au niveaulocal en RCD," Kinshasa. Colleta, N. and M. Sutton (1989) "Achieving and Sustaining Universal Primary Education: International Experience Relevant to India," World Bank Working Paper 166, Population and HumanResourcesDepartment. World Bank, Washington. Duraisamy,P., E. James, J.I. Laneand J-P. Tan. (1997)"Is there a Quantity-Quality Tradeoff as Enrollments Increase? Evidence from Tamil Nadu, India," World Bank Research Working Paper 1768, World Bank, Washington. Gelb, Ngo, and Ye (2004); "Implementing Performance Aid inAfrica: The Country Policy and InstitutionalAssessment", World Bank Kagia, R and Patrinos,A (forthcoming); "Maximizing the performance o f Education Systems: The Case of Teacher Absenteeism", World Bank IMFWorld BankHIPC2003 122 iTerme,RA. (2002) "The Elimination o f User Fees for Primary Education inTanzania: A Case Studyonthe PoliticalEconomy o fPro-Poor Policies," June, PREM, World Bank, Washington. Kattan, R.B. and N. Burnett. (2004) User Fees in Primary Education, Education Sector HumanDevelopmentNetwork, June, World Bank, Washington. Lavvy, V. (1992) "Investment in Human Capital. Schooling Supply Constraints in Rural Ghana," World Bank, Washington. Leal, F.C. (1996); "Who Benefits from Public Education SpendinginMalawi? Results from the Recent EducationReform," World Bank DiscussionPaper No. 350, December. Mauro, P (1998); "Corruption: Causes, Consequences, and Agenda for Further Research", Finance and Development Mossige, A. et. al. (2003); Une Etude Pilote de Risques et de la VulnCrabilitC en RCpublique Dimocratique du Congo (A Pilot Study on Risk and Vulnerability inthe Democratic Republic o f Congo) (World Bank Working Report, Washington, D.C.). Murphy, P. (2002); "Achieving Universal Primary Education in Uganda. The Big Bang Approach,"Education Notes, World Bank, Washington. Rijckeghem, C, and Weder, B (1997); "Corruption and the Rate of Temptation: Do Low Wages inthe Civil Service Cause Corruption?", IMF SwaroopandRajkumar(2002); "Public Spendingand Outcomes: Does Governance Matters?", World Bank Tiongson, E. (2004); "Education Policy Reforms," Research Note, ESSD, World Bank, Washington. UNESCO (2006); Statistiques du Secteur de 1'Education: Prk-primaire, Primaire, Secondaire, Education Non-Formelle; Ville Province de Kinshasa, 2005-2006 (Education Sector Statistics: Pre-Primary, Primary, Secondary, Non-Formal Education; City Province o f Kinshasa, 2005- 2006), Project d'Appui au Secteur de l'Education (PASE), Composante I1: Systbme d'Information pour la Gestionde 1'Education (SIGE); Cellule Technique pour les Statistiques de 1'Education. Verhaghe, Johan (2006); "Notre BeauMCtier" (Our Beautiful Profession): Ensuringthe Quality o f Primary School Teachers inthe DRC, UnpublishedManuscript. (2007). "SIDA: Salaire InsufJisant Dfficilement Acquis (Salary Insufficient and Acquired with Dfficulty): Addressing the issue o f effective teacher payroll expenditure in the DRC", UnpublishedManuscript. 123 World Bank (2000a). Project Appraisal Document - Education Development Project - Bosnia and Herzegovina Report No. 20170 BIH (Human Development Sector Unit, Europe and Central Asia Region) (2000b). Project Appraisal Document - Education and Health Project - Kosovo. Report No. 20288 (Human Development Sector Unit, Europe and Central Asia Region). (2001). Project Appraisal Document Fundamental School Quality Project East Timor. Report No. 22294-TP. (Human Development Sector Unit, East Asia and Pacific Region). (2003a). Project Appraisal Document Education Modernization Project Republic of Tajikistan Report No. 25806 (Human Development Sector Unit, Central Asia Regional Office, Europe and Central Asia Region). (2003b). "World Development Report 2004: Making Services Work for Poor People" (2005a). "Democratic Republic of Congo: Poverty Diagnostic and Priorities of the Poor (Poverty Reduction and Economic Management SectorUnit). " (2005b). "Education in the Democratic Republic of Congo: Priorities and Options for Regeneration", A World Bank Country Study, Washington, DC. (2005~).Program Document for a Proposed Grant to the Democratic Republic of Congo for a Transitional Support for Economic Recovery Operation. Report No. 33785-ZR (Poverty Reduction and Economic Management Sector Unit). (2006). "A DecadeofMeasuring the Quality of Governance", Washington, DC. (ii)DRCGovernmentDocuments A r r W inter-ministiriel EPSP-ESU-AS No.0510 26/01/2005 portant creation du Comite National de Pilotage du Programme (Inter-ministerial bylaw creating the Program Steering Committee) Democratic Republic of the Congo (2004) "Minimum Partnership Program for Transition and Recovery of the Democratic Republic o fthe Congo", November, Kinshasa. Ministhe de I'EPSP et la CoopCration belgo-congolaise (2005). Foumiture de manuels scolaires. Module de Formation des Enseignants. Utilisation Efficiente des Manuels ((A Nous 1'Ccole)) (Textbook provision: Training Module for Teachers Efficient use of textbooks - Our School D) 124 RDC (2003) Pacte de Modernisation de 1'Enseignement Supe`rieur et Universitaire, PADEM (Pact for Modernizing Higher Education), Ministere de I'Enseignement SupCrieur et Universitaire,Kinshasa, RCpubliqueDCmocratiquedu Congo. (2005a) Annuaire Statistique de la RDC 2001/2002 (Statistical Yearbook of the DRC, 2001/2002), MEPSP with the technical and financial support from UNICEF, Kinshasa, RCpubliqueDCmocratiqueduCongo. (2005b) Lettre de politique de de`veloppement (Letter of Development Policy). Kinshasa, RCpubliqueDCmocratiqueduCongo. (2005~)Projet d'Appui au Redressement du Secteur Educatif Congolais :Cadre de Gestion Environnementale et Sociale (Education Sector Support Project : Environmental and SocialManagementImpact Framework), Kinshasa, RCpubliqueDCmocratiqueduCongo. (2005d) Projet d'Appui au Redressement du Secteur Educatif Congolais :Cadre de Re`installation Involontaire (Education Sector Support Project :Resettlement Policy Framework), Kinshasa, RCpubliqueDCmocratiquedu Congo. (2006a) De`cret N" 06/109 du I1 Juillet 2006 Portant Amenagement du Budget de 1'Etatpour 1'Exercice 2006 (Decree #06/109 of July 11,2006, Containing the Ammendment o f the National Budget for the Fiscal Year 2006), Ministere du Budget, Kinshasa, Republique DCmocratiquedu Congo. (2006b) Document Strate`gique pour la Reduction de la Pauvrete` (Poverty Reduction Strategy Paper), Kinshasa, RCpubliqueDemocratique duCongo. (2006~)Plan Strate`giquepour la Re`habilitation et la Revitalisation de 1'Universite` de Kinshasa (Strategic Plan for the Rehabilitation and the Revitalization of the University of Kinshasa), UniversitCde Kinshasa, RCpubliqueDCmocratiquedu Congo. (iii)DeveloDmentPartners Boyle, S., A. Brock, J. Mace and M. Sibbons. (2002) "Reaching the Poor The `Costs' of Sending Children to School. A Six Country Study Synthesis Report," August, Department for International Development, London. Educationfor All (2007); "Education for All GlobalMonitoringReport 2007" Feezel, C. Lee, S., Miller-Grandvaux, Y. (2005); School Fees Reduction Program inthe DRC. (USAIDKinshasa, USAID/Africa Bureau, USAID/EGAT/Office of Education), Unpublished Manuscript IMF International Monetary Fund (2005); Democratic Republic of Congo: Fifth Review.. . )) (( . 125 Mehrotra, S.K. (1998); "Education for All: Policy Lessons from High Achieving Countries," UNICEF Staff Working Papers Evaluation, Policy and Planning Series. No.EPP-EVL-98-005, September, Paris. Protocole d'Accord entre le Gouvernement de la Rbpublique Dbmocratique du Congo et les Parrains de 1'Educationpour Tous UNESCO, PNUD, UNICEF, FNUAP, Banque Mondiale (Protocol of Agreement between the Government of the Democratic Republic of Congo and the partners for Educationfor All -UNESCO, UNDP, UNICEF, UNFPA, World Bank) (2002) Tomasevski, K. (2003) School Fees as hindrance to Universalizing Primary Education. Background Study for EFA Global MonitoringReport 2003," UNESCO. Watkins, K.(2000) The Oxfam Education Report. Stylus Publishing: Herndon, Virginia. (iv) Others Asagwara Prince, K.C. (1997) "Quality of Learning inNigeria's Universal Primary Education Scheme, 1976-1986," The Urban Review, Vol. 29, No. 3, p.189-203. Bedi, A.S., P.K. Kimalu,D.K. Manda and N.Nafula. (2004); "The Decline inPrimary School Enrolment inKenya," TheJournal of African Economies 13:1, p. 1-43, March. Delamonica, E., S. Mehotra and J. Vandemoortele. (2004); "Education for All: How Much Will it Cost?"; Developmentand Change, Vol. 35, No. 1, p. 3-30. Deininger, K. (2003); "Does Cost of Schooling Affect Enrollment by the Poor? Universal Primary Education inUganda," Economics ofEducation Review.Vol. 22, No. 3, p. 291-305, Fiske, E.B. and H.F. Ladd. (2003); Balancing Public and Private Resources for Basic Education: School Fees in Post-Apartheid South Africa," Terry Sandford Institute of Public Policy, DukeUniversity. Kadzamira,E. and P. Rose. (2003); "Can Free Primary EducationMeet the Needs ofthe Poor? Evidence from Malawi," International Journal of Educational Development, Vol. 23, p. 501 - 516. Lemon,A. (2004); "Redressing School Inequalities inthe EasternCape, South Africa," Journal of SouthernAfrican Studies,Vol. 30, No.2, June. Mehrotra, S.K. (1998); "Improving Cost-effectiveness and mobilizing Resources for Primary Education inSub-SaharanAfrica," Prospects,Vol. 28, No. 3, p. 469-498, September. Mukudi, E. (2004); "The Effects of User-fee Policy on Attendance Rates among Kenyan ElementarySchoolchildren," International Review of Education, Vol. 50, No. 5-6. 126 Najamus, S. (1998); "The Willingness to Pay for Primary Education inRural Pakistan," Ph.D. Dissertation, JohnHopkins University. Sperling, G. and R. Balu. (2005); "Designing a Global Compact on Education," Finance and Development,Vol. 42, No. 2, June. Tanaka, S (2001); "Corruption in Education Sector Development: A Suggestion for Anticipatory Strategy", International Journal of Educational Management Tilak, J. (1999); "Education and Poverty in South Asia," Prospects, Vol. XXIX, No. 4, Issue No. 12. Tomasevski, K. (2003); Education denied: Costs and Remedies.Zed Books. Transparency International (2004); "Corruption inthe Education Sector: An Introduction" 127 Annex 13: Statementof Loans and Credits OriginalAmount in US$ Millions Project FY Purpose IBRD IDA SF GEF Cancel. Undisb. ID P104497 2007 Emergency Urban and Social 0.00 180.00 0.00 0.00 0.00 180.00 Rehabilitation PO88751 2006 Health Sector Rehabilitation 0.00 150.00 0.00 0.00 0.00 140.39 support PO88619 2005 Emergency Living Conditions 0.00 82.00 0.00 0.00 0.00 65.55 Improvement PO86874 2005 Emergency Social Action 0.00 60.00 0.00 0.00 0.00 5 1.32 PO82516 2004 Multisectoral HIV/AIDS 0.00 102.00 0.00 0.00 0.00 74.80 PO81850 2004 Emergency Economic & 0.00 214.00 0.00 0.00 0.00 81.23 Social Reunification PO78658 2004 Emergency Demobilization & 0.00 100.00 0.00 0.00 0.00 4.17 Reintegration PO71144 2004 Private Sector Development 0.00 120.00 0.00 0.00 0.00 47.43 & Competitiveness PO57296 2003 Emergency Multi-Sector 0.00 579.00 0.00 0.00 0.00 303.32 Rehabilitation & Recovery Total: 0.00 1587.00 0.00 0.00 0.00 948.21 DEMOCRATIC REPUBLIC OF CONGO STATEMENT OF IFC'S Heldand DisbursedPortfolio In MillionsofUS Dollars Committed Disbursed IFC IFC FY Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. Approval 2003 Celtel DROC 3.00 0.00 0.00 0.00 3.00 0.00 0.00 0.00 2005 PCB Congo 0.00 0.45 0.00 0.00 0.00 0.45 0.00 0.00 Total portfolio: 3.00 0.45 0.00 0.00 3.00 0.45 0.00 0.00 Approvals PendingCommitment FY Company Loan Equity Quasi Partic. Approval Total pending 0.00 0.00 0.00 0.00 commitment: 128 Annex 14: Countryat a Glance Congo, Dem. Rep. at a glance 9/14/06 sub- K e y Development Indicators Saharan LOW Congo, Dem. Rep. Africa income Age distribution. 2006 (2005) Male Female Population,mid-year (millions) 57.5 741 2,353 110-74 Surface area (thousandsq. km) 2,345 24,265 29,265 Population growth (%) 3.0 2.1 1.8 6064 Urban population (% of total population) 32 35 30 50-54 4044 GNI (Atlas method. US$ billions) 7.0 552 1,364 30-34 GNI per capita (Atlas method, US$) 120 745 580 20-24 GNI per capita (PPP. international$) 720 1,981 2.486 10-14 04 GDP growth(%) 6.5 5.3 7.5 20 10 0 10 20 GDP per capita growth (%) 3.4 3.1 5.6 percent (most recent estimate, 2000-2005) 7 Poverty headwunt ratioat $1 a day (PPP. %) 44 Poverty headcount ratio at $2 a day (PPP, %) 75 Under4 mottalityrate (per 1,000) Life expectancyat birth (years) 44 46 59 Infantmortality (per 1,000 live births) 129 100 80 Child malnutrition (O hof children under 5) 31 29 39 200 Adult literacy,male (% of ages 15 and older) 81 73 150 Adult literacy. female (% of ages 15 and older) z 54 50 Gross primary enrollment. male (% of age group) 99 110 100 Gross primary enrollment,female (% of age group) 87 99 50 Access to an improvedwater source (% of population) 46 56 75 0 Access to improved sanitation facilities (% of population) 30 37 38 OCongo. Dem Rep BSub-Saharan Afnca Net Aid Flows 1980 1990 2000 2006 * (US$ mi//ions) Net ODA and official aid 428 897 184 1.815 (Growth of GDP and GDP per capita (%) TOP3 donors fin 2004): United Kingdom I 3 8 301 Belgium 170 95 27 265 United States 11 32 13 190 Aid (% of GNI) 3.1 10.5 4.7 28.8 Aid per capita (US$) 15 24 4 32 Long-Term Economic Trends [1saGDP gs - Consumer prices (annual % change) 00 O! 46.6 81.3 550.0 21.3 GDP implicit deflator (annual % change) 51.4 109.0 515.8 21.5 GDP per capita Exchange rate (annual average, local per US$) 0.0 0.0 69.0 473.9 Terms of trade index (2000 = 100) 100 131 1880-80 1880-2000 2000-06 (average annual growth %) Population,mid-year (millions) 28.0 37.8 50.1 57.5 3.0 2.6 2.8 GDP (US$ millions) 14,395 9,350 4,306 7,103 1.6 -4.9 4.4 (% of GDP) Agriculture 26.8 31.0 50.0 46.0 2.5 1.4 0.4 Industry 35.0 29.0 20.3 25.3 0.9 -8.0 9.2 Manufacturing 15.2 11.3 4.8 5.5 1.6 -8.7 3.1 Services 38.2 40.0 29.7 28.7 2.0 -12.3 5.5 Householdfinal consumption expenditure 81.5 79.1 88.0 66.9 3.4 4.5 General gov'tfinal consumption expenditure 8.4 11.5 7.5 6.8 0.0 -17.4 Gross capitalformation 10.0 9.1 3.5 14.5 -5.1 -0.7 Exportsof goods and services 16.5 29.5 22.4 34.5 9.6 -0.5 7.8 Imports of goods and services 16.4 29.2 21.4 42.7 10.7 -2.4 25.2 Gross savings 7.9 0.8 -3.5 12.9 -13.3 Note: Figuresin italics are for years other than those specified. 2005 data are preliminaryestimates.,,indicates data are not available. a. Aid data are for 2004. Development Economics.Development Data Group (DECDG) 129 Congo, Dern. Rep. Balance of Payments and Trade 2000 2005 (US%millions) Total merchandiseexports (fob) 692 2,042 Total merchandiseimports(cia 669 2,465 Voice and acmunfabilify Net trade in goods and services 46 -922 Workers'remittancesand compensationof employees(receipts) Regulatoryqualify Current account balance -199 -451 Rule of law as a % of GDP -4.6 -6.3 Control of comption Reserves,induding gold 51 360 0 25 50 75 100 Central Government Finance I m2004 Counws permntile rank (0-100) 02000 hghW Y d M S mpy tetter ,slings (% of GDP) Revenue 5.2 8.2 Soum: Kaufmann-KraayMartNni, World Bank Tax revenue 3.5 6.3 Expense 6.6 Technology and Infrastructure 2000 2004 Cash surpiusldeficit -4.0 Pavedroads (% of total) Highestmarginaltax rate (%) Fixedlineand mobilephone Individual 60 50 subscribers(per 1,000people) 0 37 Corporate 40 40 Hightechnologyexports (% of manufacturedexports) External Debt and Resource Flows Environment (US%mi//ions) Total debt outstandingand disbursed 11,692 11,841 Agriculturalland (%of land area) 10 10 Total debt service 25 121 Forestarea (% of landarea,2000 and 2005) 59.6 58.9 HlPC and MDRldebt relief(expected;flow) 10,389 Nationallyprotectedareas(% of land area) 5.0 Total debt (% of GDP) 271.6 180.2 Freshwaterresourcesper capita(cu.meters) 16,114 Total debt service(% of exports) 2.5 5.8 Freshwaterwithdrawal(% of internalresources) 0.0 Foreigndirect investment(net inflows) 23 0 C02 emissionsper capita(mt) 0.05 0.03 Portfolio equity(net inflows) 0 0 GDP per unit of energy use (2000 PPP$ per kg of oil equivalent) 2.3 2.1 Composition of total external debt, 2004 Energyuseper capita(kg of oil equivalent) 292 293 (US$ millons) IBRD Total debt outstandingand disbursed 81 0 Disbursements 0 0 Pnnupal repayments 0 0 Interestpayments 0 0 US$ millions IDA Total debt outstandingand disbursed 1,188 2,050 Disbursements 0 226 Private Sector Development 2000 2005 Total debt service 0 46 Time requiredto start a business (days) - 155 IFC (fiscalyear) Cost to start a business (% of GNI per capita) 503.3 Total disbursedand outstandingportfolio 0 24 Time requiredto registerproperty(days) -- 106 of which IFCown account 0 24 Disbursementsfor IFC own account 0 20 Rankedas a majorconstraint to business (% of managers surveyedwho agreed) 0 2 n.a. n.a. Grossexuosure 0 5 Stock marketcapitalization(%of GDP) Newguarantees 0 7 Bank branches(per 100,000people) I Note: Figures in italicsare for years otherthan those specified. 2005 data are preliminaryestimates. ..indicatesdata 8/23/06 are not available. -indicates observation is not applicable. DevelopmentEconomics,DevelopmentData Group (DECDG). 130 Millennium Development Goals Congo, Dem. Rep. W/tbselected targets to achieve between 1990and 2015 (eshmate closestto date shown, +/- 2 years) Goal 1: halve the rates for $1 a day poverty and malnutrltlon 1990 1995 2000 2004 Povertyheadcount ratio at $1 a day (PPP, % of population) Povertyheadcount ratioat national poverty line (% of population) Share of incomeor consumptionto the poorest qunrtile (%) Prevalenceof malnutrition(% of children under 5) 34 31 Goal 2: ensure that chlldren are able to complete primary schoollng - Pnmaryschool enrollment (net,Oh) 54 Primarycompletion rate(% of relevantage group) 46 42 Secondaryschool enrollment (gross, %) 22 24 18 Youth literacyrate (% of peopleages 15-24) 69 70 Goal 3: ellmlnate gender disparity Ineducatlon and empower women Ratioof girls to boys in primaryand secondaryeducation (%) 80 Women employed inthe nonagnwltural sector (% of nonagriculturalemployment) 26 Proportion of seats heldbywomen in nationalparliament (%) Under-5mortality rate (per 1,000) 205 205 205 205 Infant mortalityrate (per 1,000live births) 129 129 129 129 Measlesimmunization(proportionof one-year olds immunized, %) Maternal mortalrtyrati Births attended by ski Goal 6: halt and beginto reverse the spread of HlVlAlDSand other majordiseases Prevalenceof HIV (% of population ages 15-49) 3 2 Contraceptive prevalence(% of women ages 15-49) 31 Incidenceof tuberculosis (per 100,000people) 133 366 Tuberculosis cases detected under DOTS (%) 42 52 70 Goal 7: halve the proportion of peoplewlthout sustalnable access to basic needs Accessto an improvedwater source (% of population) 43 46 Accessto improvedsanitation faciliies (% of population) 16 30 Forest area (% of total landarea) 62 0 59.6 58.9 Nationally protectedareas (% of total landarea) 5 0 C02 emissions(metrictons per capita) 0.1 0.1 0.0 0.0 GDP per unit of energy use (constant 20W PPP $ per kg of oil equivalent) 5.0 3.3 2.3 2.1 Goal 8: develop a global partnership for development Fixed line and mobile phonesubscribers (per 1,000people) 1 1 0 37 Internet users (per 1,000people) 0 0 0 1 Personal computers (per 1,000people) Youth unemployment(% of total laborforce ages 15-24) Iducatlon Indicators (%) Measleslmmunlzatlon (%of 1-yearolds) CT lndlcators (per 1,000 people) "1 IW] 75 1998 2003 XIM 2004 1990 1995 2oW 2034 ---O-Primary net enrollmentratio (..) +Ratio of girls to boys in primary & 0Congo,Dam Rep 0Sub-SaharanAtnca 0Fixed+ mobilesubscnbers secondaryeducation Internet users Note: Figuresin italicsare for years otherthanthose specified...indicatesdataare not available 8/23/06 Development Economics,Development Data Group (DECDG). 131 Annex 15: Monitoring and Evaluation Arrangements 1. Overview 1. The Project activities emerge from discussions with government andanalytic work on how to coordinate and improve the utilization o f scarce education system resources. The Democratic Republic o f Congo i s a country where there will be insufficient funding for the education system over the next twenty years, making it a candidate for eventual EFA-FTI funding. The Monitoring and Evaluationplan for this Project uses a modified FTI approach based on: i) the use of a results-based framework with indicators and targets which are country- specific and agreed upon by country partners and donors as a result o f the PRSP process; ii) M&E that will be built into the use o f planned systems for data collection and analysis with the country driving the M&E process and being supported by capacity buildingfor M&Eunderthe proposed Project; iii) donorharmonizationinmonitoring,reportingandanalyticalwork; iv) school level monitoringthrough annual CRC surveys and a communication strategy. 2. Continued work on donor coordination will be supported under the Project (Component 3) and includes discussion about key indicators for education sector success as well as specific co- financing arrangements for the Project after effectiveness. Where possible, the Bank and government teams will work to ensure that key indicators will be the same across projects, and that data from all levels feed into national data analysis systems. 2. Approaches to M&E 3. Monitoring for specific Project activities will provide information for process and outcome evaluations, and to assess how the Project contributes to strategic objectives for the sector. There are four aspectsto monitoringand evaluation undertakeninthe context o fthe Project: i) Monitoring for accountability o f government commitment to reforms, based on the implementation o f a set o f key country-specific policy targets (access, equity, quality, efficiency). Monitoring compliance with the Arrete' on school fees will be central to assess commitment to the policy o f fee-free primary education. A format for demonstrating outcome measurements for key indictors o f the PRSP i s also under consideration; see also Table A9.1 inAnnex 9 o fthis PAD. ii) Monitoringandevaluationforeducationprogramimprovementfocusedonasetof core indicators which are Project-specific (see Annex 3 and Annex 10). iii) Analyticworkfordevelopingknowledgeforeducationreformandforwardplanning and capacity building(Component 3). This provides important baseline data. iv) Monitoring for accountability of donor harmonization and financial support. This should be undertakenboth by the education ministries and by the donor coordination group to ensure that projects fit government strategy and are sustainable. Since 2003, donors inDRC have worked together through the PRSP and have created a Comite'de Concertation en Education (Cooperation Committee for Education), together with the 132 government partners, to identify key strategies for developing the education sector and indicators to gauge progress. 3. How the Projectwill Manage M&E 4. As outlined in Section C.3.of the Project Appraisal Document, there will be several layers o f monitoring and evaluation. 5. Data will be collected by the PMCU from the schools and Provinces, analyzed and submitted to IDA in quarterly reports, using the formats in Annex 3 for tracking progress in Project activities, and additional indicators. Specific component indicators will also be found in the component outlines o fthe Project Operations Manual. 6. Monitoring will include all aspects o f the Project's annual work program and the operational sub-project cycle, as well as regular feedback into improving Project design and functioning. Drawing upon qualitative and quantitative measures, Project evaluation will focus on the implementation o f activities and the degree o f conformity with the established work program; economic, social and environmental impacts o f the activities; and institutional development including beneficiary involvement and capacity to manage and sustain the activities. 7. In addition to the oversight responsibilities o f the Steering Committee and the specific monitoring functions o fthe PMCU and the CPA, the Project will have an annual technical audit, the conditions o f which will be defined in the Project Operations Manual. The audit will be conducted by independenttechnical auditors acceptable to IDA. The technical audit will assess the Project's performance against the results indicators for each component (Annex 3), as well as reviewprocurement, statements o f expenditures, and verify the physical existence (and delivery) o f goods, equipment, and services acquired through the sub-components o f the Project. This i s in addition to the audits on use of the cash transfers for teachers' bonuses, and PETS, as described for Component 1 o f the Project. Annual citizen's report card surveys will complement technical audits and PETS, to provide regular monitoring from the viewpoint o f beneficiaries and other community stakeholders. 8. Guidelinesfor annual and quarterly reports will be included inthe Project Operations Manual. Regular reporting requirements include outputs such as the number o f activities implemented; impact and viability o f projects, such as number o f teachers provided with training inthe use of textbooks; activity disbursementsand recurrent cost expenditures. Other annual reports prepared by the PMCU will address environmental aspects. The PMCU will also be responsible for the Project Mid-Term Review, conducted incollaboration with IDA, and a final report at the end o f the Project, with recommendations from the Government. The report should be finalized no later than six months after the end o fthe Project. 133 Annex 16: Critical Risksand Governance Response 1. CriticalRisks 1. The Project entails risk that the Government and IDA will be unable to deliver the Project as outlined since its effectiveness depends on a number o f factors outside the Project's control. An Anti-corruptiodGovernance Note was drafted incompliance with the World Bank procedures to circulate inaccompaniment to the Project Appraisal Document and should be read alongside the latter document. 2. To mitigate risksto the proposed Education Sector Project, the Government and World Bank teams conducted a thorough risk assessment jointly with key donors active in the education sector and inpromoting good governance. The main risk areas were agreed to be ingovernance and corruption, political and macroeconomic risks. Partnersalso agreed that although riskswere substantial, the risks o f not intervening were also high, given the Government's strong commitment to build up democratic institutions. There was consensus that urgent action was needed to take advantage o f existing windows o f opportunity in the post-election period and prevent deterioration o f the situation. Donors further agreed on the criticality o f working together in a harmonized way to avoid giving conflicting messages to the new Government. In the high-risk setting of the DRC, mixed signals from donors could undercut progress on governance. 3. There i s a new Government Program from February 2007 that i s based and interlinkedwith the PRSP and the common framework for donor assistance (CAF). The Government Program attaches priority to security sector reform, decentralization, anti-corruption, strengthening public financial management, civil service reform, and transparency. A detailed plan for March - December 2007 i s outlined in the Governance Compact, which forms part o f the Government Program and which constitutes a bindingdocument betweenthe Government and the Parliament. 4. The decentralization process in particular carries opportunities, risks, and several uncertainties. The new Constitution, approved by referendum in 2005, foresaw: (i) territorial reform with an increase in the number o f provinces from 11 to 26; (ii) transfer o f significant responsibilities from the center to the provinces; and (iii) fiscal decentralization with increased intergovernmental transfers. An organic law for decentralization is being drafted, and a permanent committee on decentralization has been added at the National Assembly. Currently some decentralized structures exist and operate without a proper legal framework, notably the governors and provincial assemblies, o f which the latter are newly created. The organic decentralization law will assign roles and responsibilities for these as well as for other decentralized structures, including provincial governments and sub-provincial levels. 2. RiskMitigation Strategy 5. The risk matrix derivedjointly by the World Bank education team and donors was used first to identify the general risks and risk mitigation measures, and then as an entry point for identifyingmore specific corruptionand governance risks at sector andproject level. Riskswere rated on a scale from 1 to 4, from low to high. In all areas, there were risks rated as "high" before risk mitigation measures. This considered the political risk o f pursuingdecentralization too fast without adequate systems inplace (political risk); the Government not increasing budget allocations to education (macroeconomic risk); corruption inthe flow o f funds (governance and corruptionrisks); and, schools continuing to charge high school fees despite donors' contribution 134 (other risk). These risks could all be mitigated by measures proposed to take place within or outside o f the Education Sector Project. After risk mitigation, risk ratings decreased, and none were rated as "high". TableA16.1 SummaryJoint RiskAnalysis Risk Risk RiskMitigation Measure RR Comment Rate after 0 Mitig. Politicalrisks The fragile political and security -Democratic S institutions are beingbuilt up with M Unstableregion, resourcerich situationleads to conflicts (either the support ofthe internationalcommunity. country, longhistory of conflict, widespreador local) or civilian unrest Security sector reform on-going and short history of democracy, (triggered by highexpectationsthat arl strengthened.Dialoguewith other countries in not met). This could leadto the regionintensified.The educationprojectwil disruptions ingovernment's address current inequitiesinthe system. Itwill commitmentsto the Project, provide"quick wins'' to households all over the undermineresults/effectivenessand country (Le. reducedschool fees, teacher cause country developmentfailures. salaries, training). Decentralizationreform implemented H Agreed conditions, incl. on procurement and M Decentralizationis partofthe new without sufficientplanning and financial management, must be met before Constitutionand might be capacity.This could leadto manageriz disbursements.Projectproposes reforms in implementedrapidly as a power- and administrative chaos at provincial payment system for disbursementofteachers' sharingmechanismafter the new level, which would impede Project salaries.M&E system with integrated Governmentis formed. executionand increasethe performancemilestones. Multiple independent opportunities for corruption. technical andfinancial audits. Training in financial managementpracticesfor effective projectimplementationis providedto cadres in the MPSP andthe Ministry ofPlan The political commitment to educatior M Hands-onsupport to Government's reform L The Government's commitmentto reform is low. Politicalcommitmentir efforts, incl. capacitybuilding. Donor the policy on fiee school fees is crucial for effectiveProject community engaged in dialoguewith key strong, as documented inthe implementation. stakeholdersto help strengthenthe constituency Constitution, the PRSP, the Letter for reform. on EducationSectorPolicy, President's speeches, as well as inter-ministerialArrgtd on fees. Strikesor civilian unrest as aresult M The projectis plannedand implemented in close L of pressure groupsperceivingthat cooperationwith Civil Service reform. Salaries teachers are favored. are proposedto increase gradually and broadly amongthe teacher collective.Discussionfor a phased implementation of similar reformsis -engagedwith other arms ofthe civil service. Macroeconomicrisks Insufficient rate of economic growth M Reasonablemacroeconomic assumptions L Project's impacton inflationrate is and high inflationrates underminesthi (including inflationrate), calibrated with IMF financial stability ofthe Project. and basedon in-depthanalysis(ESW) shared difficult to forecast and agreedwith donor partnershavebeen used throughoutthe designofthe Project.The burden o f school fees has beenshiftedgraduallyfrom parentsto governmentthrough abalancedpublic budget consistentwith fiscal stability. Insufficient progressinother sectors o M The Bank and other donorssupportthe DRC L Project's results dependenton other the economy, in particularsecurity, through multi-sectoralprograms.The Project sectors, such as healthandfood infrastructure, health system will indirectly improveand affect other sectors security for primary school improvements, and food security, through increasinghouseholds' purchasing attendance, infrastructurefor both hinders accessto schoolingand power.Assessmentsand feasibility studies access to schoolingand textbooks, deliveryofthe Project's goods and includedalongsidedirect investmentsin :tc. services, inparticulartextbooks. rehabilitation, textbook provision,teacher training; monitoring and evaluationduring -Project execution. 135 I Donors' funds increaseraoidlv and in I .~ M lTheBankandother donors areworkingcloselv ..- II Experiencefromotherpost-conflict an uncoordinatedmanner after the on aCountryAssistanceFramework(&F) in- countriesis that donor funds DRC's first democratic elections.This DRC.The EducationSectorProjecthasbeen increasetoo rapidly the first few would challengealready low preparedjointly with other donors, who are years after peace.After 3-4 years, absorptioncapacity, andthreatenthe eitherfinancingand implementingpartsofthe when absorptivecapacitiesare being Project's efficiency. Projector complementingitwith coordinated rebuilt, donorstend to withdraw assistance.An analysisof donors' current and funds andprovide insufficient aid in plannedinterventionsis presented inAppendix relationto countries' capacity. 2 ofthe PAD, "Major RelatedProjectsFinanced by the Bankand/or other Agencies". Agreed budgetreallocationsand H Budget executioncloselymonitoredin Securityand/or strongpressure increasesin educationspendingare not cooperationwith the IMF. Budgetprocess groupsmightneedto be prioritized forthcomingdue to lackof liquidity or strengthened.Donorssupportreformof security inorder to keepthepeace. other pressingbudget priorities. sector. Policydialogue. Governance and corruption risks H Basedonfield experiences as well as analysiso iecent INTinvestigationpointed neficient useof Projectresourcesdu the education sector inthe CFAA, CPAR, PER, )utprocurement irregularitiesin o cormption, mismanagementor non. INTreview, CAF, high-risk operationswithin )ther Bankprojects.NewWB ransparency ingovernmentsystems. the Projecthavebeenidentified andrisk iafeguardsandroutineshavebeen mitigationmeasuresproposed. ntrcducedinaccordanceto INT Recommendationshavebeenadheredto, for indings. instancere. procurementand paymentsystems. A thoroughanalysisof the Financial Managementsystemhasbeenundertakenwithi: the preparationofthe Project, includingaspeck FMriskanalysisandaFMactionplanagreed with the Government(See Appendix 6 ofthe PAD). There are appropriatefinancial managementsafeguards inthe LegalAgreemen institutional arrangements for the Project's implementation,Project OperationsManual, an' ProcurementPlan; monitoredjointly with other donorsandthroughIDA implementation support. Governmentchannels for transfer of funds are strengthenedthroughbetter budget tracking(PETS)underimprovedexpenditure chains that reduceopportunitiesfor conuption. Computerizationofkey governmentunits complementedby adequatetrainingin accountabilityandtransparencyat all levelsof the system. A strongmeasurableresults framework that ties the flow of moneyto concrete andmeasurable resultshas been introducedinorder to reducethe risk ofmisuse of Bankresources (See Appendix 3 o fthe PAC 2apacity inpublic and privatesectors M The choice ofprojectimplementationunit and D execute projectobjectivespromptly use ofagentswith proventrackrecordofresult! ndefficientlyis weaker than (e.g.SECOPE, contractingin of international xpected. expertise on acompetitive basis- intargeted - areas)were guidedby concerns of low capacity Specialmonitoringand trackingprocedureswe1 introducedwiththe aim of facilitatingand improvingimplementationcapacity, reinforced with hands-onimplementationsupportand capacity buildinginareas where thereare problems.More informationabout civil service capacity will follow the IMFBank forthcoming Civil Servicemission inFebruary2007. It is als expected to speedupthe Government's on-goin civil service reform. 136 rcoordinationand communication M IA directorateto managethe Proiectday-to-dav L amongthe three ministriesmay prove implementationwill be recruitedona ~ difficult andjeopardize efficient competitivebasis. It will act as the operational projectexecution. arm ofthe Government's ministerial Steering Committee for the educationProject.Close cooperationwith the Government-donor CornitP de Concertation inasector-wideapproachwill facilitatecommunicationflows about the ongoingcontributionofthe Projectto the agreed developmentobjectivesfor the sector. Other risks Schools continueto charge high fees H Stakeholders'(parents, teachers' unions, other to parentsdespite Donors' supportto civil society)power is strengthenedwithin the the government to implementits Projectthroughcommunications,consultation policyofphasingout school fees. Thii andtraining. Informationandtransparencyare would endangerthe Project's mainair key within the Project; media,direct informatior of increasingaccess to primary to nationallobbyingorganizations (PTAsand schoolingthroughreducedschool fees trade unions), and out-reachto schools.The strongcommitment ofthe Governmentto abolishschool fees and give DRCcitizens a "peace dividend" would addto the likelihoodof widespread andaccurate information. M The Bankand other donorssupportthe DRC Informationandmeasureof higherthanexpectedratesof throughmulti-sectoralprogramswhere HIV/AIDS, TB, malaria, etc. hasn HIV/AIDS, TB or malariaaffect HIV/AIDS is integrated, includingawareness beenpossibleinall areasdue to lac Projectimplementation. raising,etc.Healthprogramsinclude awareness o f security.Conflictsincreaserisk raising,bednets, etc. anti-malariameasures. o f HIV/AIDS. 3. Governance Concerns Integrated into Project Design 6. Measures to counteract corruption and to build up institutions and capacity for financial management require the integration o f anticorruption approaches in the early stages o f Project design. From the identification stage, by considering the country and sector environments as well as the nature o fpotential Project activities, the Project was designedwith a heightenedfocus on governance. Three guiding themes in each o f the Project's four components have been integrated into the design: (1) performance, through monitoring targets whose attainment will be the indication o f success; (2) anticipation, through planning and programming all interventions on the basis o f thorough analysis o f the situation on the ground; and (3) participation and transparency, through mechanisms which allow stakeholders to influence and share control over decision-making. 7. The design enhances oversight mechanisms, disclosure of information, timely handling o f complaints, and strengthened supervision. It seeks to increase the accountability o f implementingagencies and service providers through instrumentsthat give voice to beneficiaries (through citizen report cards, communication strategy, strengthened parents committees, and more). There is an enhanced focus on internal controls, supervision, audits, and fiduciary arrangements for Project implementation. Action plans for financial management and anticorruptionhave beenproposed, as well as anticorruption safeguards, andrigorous control and supervision systems for procurement and contracting. 8. The Project's supervision methods emphasize monitoring which includes clear roles and responsibilities for all stakeholders involved; strengthened checks and balances in procurement and payment systems; thorough risk analysis, including risk mitigation measures, action plans for anticorruption and financial management, corruption safeguards, and technical and financial audits to be conducted systematically throughout the Project's lifetime. Procurement procedures have been analyzed in-depth. In particular, following the recommendations o f a recent INT 137 inspection, the Project team took measuresto redesignthe Project's institutional arrangements to avoid agents which the INT investigation had raised questions in relation to other ongoing projects. 138 Annex 17: Education Sector Policy Letter - @pu64ue Dimocratiquedu Congo I* Ministere de I'Enseignement Primaire, Secondaire et Professionnel 139 REPUBLIQUE DEMCICRATIQUEDU CONGO Les Minisfres ARRETE INTER-MINISTERIEL EPSP-ESU-AS no a$%.DUA&d2006 PORTANT POLITIQUE EDUCATIVE EN REPUBLIQUE DEMOCRATIQUE DU CONGO Le Ministre de I'Enseignement Primaire, Secondaire et Professionnel ; Le Ministre de I'Enseignement Superieur et Universitaire ; Le Ministre des Affaires Sociales ; Vu la Constitution de la Republique DGmocratique du Congo , specialement en son article 91 ; Vu le Decret no 03/25 du 16 septembre 2003 portant organisation et fonctionnement du Gouvernement de Transition ainsi que les modalites pratiques de collaboration entre le President de la Republique , les Ministres et les Vice-Ministres, specialement en son article 24 ; Vu le Dkcret no 03/27 du 27 septembre 2003 fixant les attributions des Ministres specialement en son article ler,point 8-32 ; Vu tel que modifie et complete a ce jour le Dkcret no 05/001 du 03 janvier 2005 portant nomination des Ministres et Vice-Ministres du Gouvernement de Transition ; Vu la volonte maintes fois exprimke par le Gouvernement de la Rkpublique Dkmocratique du Congo de redresser le systeme educatif congolais longtemps plonge dans la routine et I'empirisme ; Soucieux de rkorganiser le bon fonctionnement du systeme educatif par la mise en awvre d'une bonne gouvernance dans I'intMt d'un developpement integral, integre et harmonieux du pays ; Considerant la necessite pour le pays de disposer d'un texte de politique educative qui definit les priorit& du Gouvernement en matiere pc 140 de I'education, les options strat4giques a entreprendre ainsi que la determination du nlveau de responsabilite de tous les intervenants dans le systeme educatif congolais ; ConsidCrant la charte congolaise des Droits de I'Homme et du peuple ; Reaffirmant son adhesion a la Declaration universelle des droits de I`homme, 6 la Declaration des droits de l'homme et des peuples, a la Declaration mondiale sur I`education pour tous, a la Convention relative aux droits de I'enfant, a la declaration mondiale sur I'enseignement superieur pour le 21"` siecle, aux Objectifs de ddveloppement du Millhaire et a la charte africaine des droits de I'homme et des peuples ; Convaincu du r61e capital que joue 1`6ducation dans le d6veloppement du pays ainsi que dans I`intggration nationale, africaine et mondiale ; Considerant les resolutions et les recommandations issues de diffkrentes assises sur I`enseignement national, notamment les Etats GBneraux de I`education de janvier 1996 ; Constatant que certaines dispositions de la Loi-Cadre n086-005 du 22 septembre 1986 de I'enseignement national ne r6pondent plus aux exigences et aux besoins actuels de notre pays ; Preoccupe par le niveau de destruction et I`etat de deterioration du systeme educatif atteint par le pays ; Determid a accorder une attention particuliere au secteur educatif en tant que vecteur privilegie du developpement ; Prenant en compte I'imperatif de 1'4ducation pour tous en vue d`enrayer les inegalites sociales ; et a Persuade de la priorit4 a accorder 2 la formation A tous les niveaux la recherche scientifique et technologique afin de doter le pays des competences necessaires a son progres ; Conscient du r6le que doivent jouer les langues nationales et locales dans le processus educatif du peuple ; Soulignant la necessite d`assurer au peuple les ressources que requiert la realisation des objectifs B atteindre dans le secteur Bducatif ; Adh6rant a I'idke que I'dducation doit permettre le plein 6panouissement des citoyens responsables et vecteurs de developpernent 141 Invitant tous les partenaires a soutenir le Gouvernement dans la r&alisation des objectifs assignes au nouveau systeme educatif en vue d'accroitre leur assistance et d`harmoniser leurs interventions qui doivent s`inscrire dans le cadre des priorites du secteur ; Engage a promouvoir la culture de la paix et a lutter contre les antivaleurs telles que la tricherie, la corruption, la loi du moindre effort, etc. .. Prenant I'engagement de s`impliquer resolument au redressement du systeme &ducatif congolais ; Prenant en compte les mutations intervenues dans I'environnement interne et externe du secteur educatif et determine a s'ouvrir aux differents defis a relever pour reduire la pauvrete de maniere durable et permettre a tous les citoyens de contribuer a la reconstruction du pays ; PreoccupC par I'allegement de la charge financiere qui p h e actuellement sur les familles, considede comme le frein principal a la scolarisation et qu'il y a lieu de prBner la gratuite de I`enseignement primaire ; Considerant I'etat gen6ral du systkme educatif congolais caracterisk par : - la devalorisation de la fonction enseignante et I`insecurite sociale professionnelle de I'enseignant entrainant la perte de la vocation - enseignante, la fuite des cerveaux ; la sous-qualification d'un bon nombre d'enseignants ; - la mauvaise gestion des ressources; - I'absence d`une politique de formation continue du personnel - educatif; les infrastructures insuffisantes, vetustes, inadaptees et tres - inegalement reparties ; les effectifs plethoriques d'apprenants par rapport a la capacite d'accueil specialement dans les grands centres; - I'absence d`une planification en matiere d`implantation des - etablissements d`enseignement et de creation des filieres d'etudes; I'insuffisance et le manque criant d`equipements et des materiels - didactiques appropries ; Le manque des programmes d'enseignement, des manuels scolaires, des guides pedagogiques, et d`autres supports pedagogiques ; --- - I`inversion des valeurs ; les taux d`admission et de scolarisation en r4gression constante ; les disparites croissantes entre les sexes et les milieux; I`accroissement du taux d`analphabetisme, d`abandon redoublement; 142 - les taux d'encadrement defiant les normes pkdagogiques dans bon -- nombre d'ktablissements d'enseignement; I`insuffisance du contr8le et de I'evaluation; I'inadaptation des programmes de formation aux realites et aux besoins du pays ainsi qu'a I'evolution de la science et de la - technologie ; la modicite de la part du budget de I`Etat alloue au systeme educatif avec comme corollaire, la prise en charge des salaires des enseignants et du fonctionnement des etablissements par les - I`inversion des valeurs dont I`impunite. parents d'eleves et d'btudiants ; Considerant la necessite de fonder I'action educative sur une politique gouvernementale globale et coherente ; Vu I'urgence et la nkessite ; ArrGtent : ARTICLE le` la finalite du nouveausysteme Cducatif. :De La finalit6 du nouveau systeme educatif est de former des hommes et des femmes compktents, impregnes des valeurs humaines, morales, spirituelles, culturelles, civiques et artisans creatifs, bstisseurs d'une nouvelle societC congolaise, democratique, solidaire, prospere et pacifique. II s'agit avant tout de liberer I'homme de toutes les pesanteurs qui I'emp&chent de participer efficacement au developpement de son pays, en suscitant en lui le savoir-&e, c'est-h- dire des attitudes et des comportements qui le disposent a agir pour la promotion de sa condition competent pour participer a la construction de sa socikte , ainsi que du de vie et en le dotant du savoir et du savoir-faire qui le rendent savoir-vivre qui constitue le socle de la vie en societe. C'est dans cet ordre d'idkes que s`inscrivent les axes prioritaires sur lesquels repose le nouveau systhme educatif, a savoir : -- - I`affirmation de I'kducation comme priorite absolue ; I`organisation d'une education pour tous et par tous ; '8 la rehabilitation de I'education aux valeurs humaines, morales, spirituelles et civiques. 143 Leur rkalisation requiert une programmation 2 court, a moyen et 3 long termes. Elle exige que d&s 2 present des efforts soient portes sur : La mise a jour du cadre juridique du systeme educatif ; La revision fondamentale des structures et des programmes d`enseignement ; L`amelioration des mecanismes de gestion administrative ; La mobilisation des ressources financikres ; La rehabilitation et la construction des infrastructures scolaires et acadgmiques et leur repartition equitable 2 travers le territoire national ; La revalorisation de la carriere du personnel oeuvrant dans le systeme educatif ; La prise en compte reelle du partenariat comme mode de gestion essentiel du nouveau systeme educatif ; Le renforcement de la formation des enseignants en cours d'emploi et du personnel oeuvrant dans le systeme educatif ; L'evaluation reguligre des curricula ; La dotation des etablissements de I'enseignement national en equipements et en supports didactiques appropries ; L'elaboration de la carte scolaire et universitaire ; La remise gratuite des manuels scolaires aux &Eves ainsi que des guides aux maitres du primaire. Article 2 :Des objectifs du systeme educatif Les differents types d'objectifs que doit poursuivre I`action educative se resument comme suit : 1.1. Les objectifs gkneraux : 1) Les objectifs humanistes. I 1 s'agit de transformer I`apprenant pour lui-m6me en lui transmettant Ades reflechir , comprendre connaissances et des informations, en dbveloppant ses capacites a I acreer et a evaluer en un mot, former , I'homme de culture : un &re ayant un sens moral eleve et qui est soucieux du bien, du beau du vrai et de la justice, un homme qui vit I en societe en harmonie avec autrui et avec son environnement. 2) Les objectifs socio-politiques. L`action gducative vise A integrer I'homme dans sa communaute, a former des hommes et des femmes conscients de leur appartenance a Pf une nation et 2 la societe congolaise, ayant un sens aigu du bien commun, une culture de la democratie, de la tolerance et de la paix. 144 3) Les objectifs economiques L'action educative pour une nouvelle societe doit ouvrir I'ecole aux pr6occupations konomiques du pays. En effet, elle doit cesser d'etre une education qui apprend pour apprendre et devenir une education qui apprend pour produire. Desormais, la societe congolaise doit former des hommes capables de transformer leur milieu par I'acquisition des connaissances, aptitudes, attitudes et habitudes favorables, non seulement a la saine consommation, mais surtout a la production et a I'epargne. 4) Les objectifs professionnels L'education doit susciter chez I'apprenant I'amour du travail productif et le choix d'une profession, 1.2. Objectifs spkcifiques 1) Au niveau pr&colaire -- creer les structures d'6ducation la oh elles sont inexistantes ; le rendre obligatoire et gratuit ; - former les enseignants. 2) Au niveau primaire : -- reformer les programmes ; - rendre obligatoire et gratuit I'enseignement ; privilegier I'etude et I'assainissement du milieu dans les programmes - de formation ; promouvoir I'acquisition d'aptitudes pratiques en rapport avec les activites vitales du milieu ; - creer ou rehabiliter les infrastructures. 3) Au niveau secondaire ; - reformer et moderniser les programmes de tous les cycles dans le sens de la professionnalisation et en vue de les adapter aux besoins de dheloppement national ; - rendre I'apprenant capable, en fonction de son type d'apprentissage, de trouver des reponses aux problemes particuliers de son metier de son milieu. 145 4) Au niveau superieur et universitaire : - former une elite intellectuelle et des cadres superieurs de conception, capables de participer au developpement du pays, de - transformer la societe pour la rendre plus humaine; promouvoir la recherche scientifique dans les divers domaines de connaissances pour le developpement du pays. 5) Au niveau de I'education non formelle: - former des alphabetiseurs et des formateurs d`apprentissage - professionnel A travers le pays ; cr6er des infrastructures (bibliotheques publiques, etc.) d'kducation non formelle a travers le pays ; - accorder une attention particuliere a I`alphabetisation des femmes et des jeunes filles ainsi qu'a celle des groupes defavorises. Article 3 :Des principaux probl&mesa r6soudre La nouvelle socikte 21 construire devra tenir compte a la fois des evolutions actuelles du monde dominees par la mondialisation des economies et des societes et par I'imperatif d`un dkveloppement national plus exigeant en termes de ressources financi6res et humaines et des performances technologiques. La mondialisation des economies et le developpement des technologies de I'information et de la communication qui sous-tendent cette evolution, ptacent le pays darts la nkessitk de s'irnpliquer dans une dynamique de cornpetitivit-4 et de grandes performances a rkaliser pour &re de son temps sans, toutefois, perdre son identitk. Dans cette perspective, la mise en valeur de son enorme potentiel humain et economique constituera, pour le pays, un atout majeur pour assumer le futur, dans un monde qui devient a la fois ouvert et competitif. Dans cette mGme optique, I'effort porte sur une gestion dkmocratique du pays, sur la rentabilitk economique et sur I'assainissement de la gestion financiere, devra reposer sur la valeur intrinseque des hommes et des femmes reconcilies avec les valeurs kthiques, morales et culturelles. - Ainsi l`education des populations ne doit pas seulement se limiter au niveau de I`kcole, mais elle devra egalement &re assumke par I'ensemble de la societe. Aussi, les questions ci-apres appellent un -- nouvel examen : le budget alloue 2I I'kducation ; les objectifs et les orientations de I'education 146 --- les programmes d'enseignement ; les supports didactiques ; I'organisation et la planification du systkme 6ducatif ; - I`inadequation entre les objectifs d`une formation de masse et les - strategies pour sa realisation ; I'inadequation entre la formation et I'emploi ; - - la formation, la prise en charge et I'kvaluation des formateurs ; I'evaluation des acquis des apprenants et des conditions d'apprentissage, Article 4 :Des axes prioritaires Les efforts importants a deployer pour organiser efficacement le systkme educatif afin qu'il puisse rbpondre aux besoins specifiques du pays portent sur les grandes priorites qui sont : 9 I`accessibilite a une education de base de qualite pour tous : o I'education de la petite enfance ; o I`enseignement primaire ; o I'enseignement special et integre pour les enfants vivant avec handicaps ; o I'alphabGtisation, celle des femmes en particulier ; 9 I'enseignement technique et professionnel de qualite ; 9 I`enseignement superieur et universitaire et la recherche- developpernent ; 9 la prise en compte des specificites de differentes provinces ; > la formation des formateurs ; + la formation continue ; 3 La prise en compte des problemes spkcifiques de la jeune fille et de la femme en matiere d'education ; 9 L`education non forrnelle. En rapport avec chacune de ces priorit&, il importe de definir la politique a mettre en ceuvre, de planifier les actions a mener et de preciser les modalites d`administration et de gestion du systgme 6ducatif national. 4.1, L`acc&sa une education de base de qualite pour tous Etendre la scolarisation 3 tous les jeunes sans discrimination de sexe, de religion, d'ethnie, etc. Une importance particuliere doit &re accordee a l'education des jeunes filles et des femmes. - Lgducation de la petite enfance. Les structures d`bducation prescolaire sont quasi inexistantes dans le pays, a I'exception de quelques ecoles maternelles, creches, et centres communautaires d'eveil situ& dans les centres urbains. I 1 est nkessaire de g4n6raliser progressivemen d`kducation, de la rendre obligatoire parce qu'elleh f P cette forme 147 Jcontribue au prolongement de I'Gducation familiale et a la mise en place des structures de formation d`un personnel specialise pour ce niveau ; J prepare I'enfant a aborder le cycle primaire. - I`enseignement primaire Rendre accessible, obligatoire et gratuite la scolarisation au niveau primaire. Cette education vise a assurer I'epanouissement de la personnalite de I'enfant en harmonie avec son milieu familial et social. --- Aussi, est-il important aux niveaux prescolaire et primaire : que I'enseignement se donne en langue nationale et/ou locale ; que les manuels et les materiels didactiques s`inspirent du milieu. L`enseignement spkcial et integre pour les enfants vivant avec handicaps L`enseignement special, formel et non formel, s'adresse aux hommes et aux femmes de tous ages atteints d`un ou de plusieurs handicaps, aux defavoris6s et aux exclus et lutte contre les inegalit6s en matiere de I'education. I t est donc necessaire de Ilktendre partout ob le besoin existe dans le pays. - L`kducation non formelle celle des femmes en particulier. Institutionnaliser I'alphabetisation basee sur les besoins reels des d'aIphab6tisation, Ies centres sociaux, Ies centres d`a pprentissage bknkficiaires, en implantant et en developpant les centres professionnel et d'education permanente pour adultes et les centres de recuperation. La realisation de cet objectif peut se concretiser dans le cadre des programmes nationaux d'alphabetisation des masses (et particulierement celle des femmes), car I'alphabetisation doit &re avant tout une alphabetisation pour le developpement ; 4.2. L'enseignement secondaire technique et professionnel Mettre un accent particulier sur un enseignement technique et professionnel de qualitk. Realiser au prealable un inventaire exhaustif et rigoureux des professions pouvant finaliser les filieres de formation afin d'etablir une adequation entre la formation et I'emploi sur des bases prealablement definies. Restructurer I'organisation des @colestechniques et professionnelles, par la mise sous I'autoriti! d'une seule tutelle la gestion et I'administration de toutes les formations professionnelles et techniques eparpilli!es travers le pays. 148 Accorder a ce secteur les moyens necessaires consequents pour son developpement . 4.3. I`enseignement sup&ieur, universitaire et la recherche - developpernent. - Parachever la reforme de I`enseignement superieur ,universitaire et de la recherche scientifique en vue de renforcer leur efficacite et les doter des plans sectoriels ambitieux mais realistes. Renforcer les capacites des institutions d`enseignement superieur et universitaire a exercer leur mission traditionnelle d'enseignement - formation, de recherche et de service a la collectivite. Dans cette optique, le Gouvernement Cree des universiths technologiques, pbdagogiques ainsi que des instituts supdrieurs techniques et pedagogiques. Concernant la recherche, le Gouvernement ameliorera les conditions en modernisant I'&quipement, en formant et en recyclant le personnel et en accordant un financement consequent a ce secteur. 4.4. La prise en compte des specificit& de diffkrentes provinces. Dans le respect de I`unitd dans la diversit&, le nouveau systgme &ducatif doit concevoir un programme national minimum d'enseignement de base applicable sur toute I'ktendue de la Republique et compikte par des apports specifiques a chaque milieu. 4.5. La formation des formateurs. Dans le souci d'assurer aux apprenants un enseignement de qualite, le nouveau systeme educatif doit benbficier des moyens adkquats pour que les formateurs a tous les niveaux soient form& conformement aux exigences du nouveau systgme hducatif national et benkficient d'actions de formation continue. 4.6. L a formation continue Afin d'assurer une meilleure adaptation des adultes au developpement technique, technologique , ainsidoit qu'aux exigences de la societe moderne, le nouveau systkme mettre un accent particulier sur la formation 149 4.7. L'education non formelle Dans le cadre de cette formation, on orientera les apprenants vers I'exercice d'un mktier. Article 5 :Des strat6gies d'action. Face a I'etat de delabrement avance de notre systeme educatif et a I`eventail des defis a relever pour la sauvegarde et la reconstruction de ce systeme, le Gouvernement doit &laborer un plan national de cette reconstruction, qui devra &re une composante du plan de dkveloppement national. Les actions a entreprendre pour la mise en place du nouveau systkme Bducatif doivent tenir compte : 5.1.Des conditions socio-konomiques, notamment : - du taux de croissance de la population ; - - du niveau croissant du ch6mage et du sous-emploi ; du manque de qualification d `une grande partie de la main d'ceuvre --- nationale ; du taux croissant de I'analphabetisme surtout chez les femmes ; des capacites financieres, materielles et humaines du pays ; des indicateurs de la pauvrete. 5.2.De l`6volution de la science et de la technologie, de m&me que de I'0bIigation d'un developpement durable des ressources . 5.3.Du renforcement de la cooperation en matiere d'education. 5.4.De la necessite d'instituer un organe de suivi, d'encadrement et d'evaluation. Article 6 :Du partage des responsabilites. Bien que I'Etat soit le principal responsable du systkme educatif, celui-ci ne peut cependant se developper de maniere harmonieuse sans que la famille, I'ecote et la societe travers ses entites decentralisees, s'associent pour mettre en cornmun les ressources intellectuelles, morales, materielles et financikres et partager les responsabilites et les tdches pour la realisation des objectifs educatifs communs. Des mecanismes juridiques, divers suivant les niveaux, les matigres, les conditions de lieu et de temps, definiront clairement les droits et devoirs des partenaires. De faGon generale on reconna'itra 150 A I`Etat, en tant que pouvoir organisateur et premier partenaire, le rble : de definir les objectifs, les finalites et les stratPlgies de I'education et d'en assurer le contrble et I`evaluation ; d'arreter les mesures generales de fonctionnement de I'enseignement 3 tous les niveaux ; de planifier le developpement de I'enseignement national ; de veiller a la mise sur pied des structures administratives, pedagogiques et financieres par lesquelles pourra s'exprimer le partenariat ; de negocier et de formaliser les accords de cooperation internationale, bilaterale, ou multilat&-ale pour qu'ils soient benbfiques a I`Plducation nationale dans tous ses aspects, y compris les aspects specifiques. de prendre en charge le financement du syst6me 6ducatif. Aux partenaires, notamment les entites decentralisees, les parents, les etablissements d'enseignement, les confessions religieuses, les entreprises, les O.N.G, les promoteurs des ecoles priv4es et diverses autres organisations, le rble : de participer activement et democratiquement aux structures arrStPles, a la d4finition des finalites, des objectifs et des strategies pedagogiques, a la revision et a la modification des programmes, au contr6le et a I`evaluation de I'enseignement ; d`assurer le suivi et I'utilisation rationnelle de la formation dispensee, de veiller a la conformite de I'enseignement avec les exigences du monde de travail et les besoins du milieu ; de contribuer de diverses fasons au ressourcement moral, humain, materiel et financier de I'education ; de favoriser les activites para-scolaires et para-acadhmiques. Le niveau, la nature et les modalites de participation des partenaires a tous les niveaux doivent Stre precises. Article 7 :Des moyensop6rationnels La mise en route du nouveau systeme educatif sera d'autant plus facilitee qu'il sera dote de moyens operationnels en vue d'assurer son efficacite. II s`agit de definir son cadre d'execution et de prevoir des mecanismes d'encadrement et d`kvaluation pour le deroulement de differentes phases de la politique educative, le plan national de reconstruction et de developpement du systeme educatif et la loi organique organisant le secteur, s'inscrivent dans cette optique. a court, moyen et a systeme de`veloppement dudu 7.1. S'agissant plan national de reconstruction et de educatif, iI fixe les &tapes de realisation long termes des actions a entreprendre. I 151 Le plan prevoit trois phases de realisation : une phase d'urgence au cours de laquelle it sera surtout question de repondre aux urgences de maniere a assurer le maintien de I`existant avant de proceder aux innovations commandees par la mise en place du nouveau systhme ; une phase de mise en place des fondements du nouveau systeme educatif, par I`elaboration des programmes de la &forme et leur experimentation a travers des structures renovees, decentraIis4es et soumises 2 une evaluation constante pour des ajustements eventuels ; Enfin, une phase de consolidation et d'extension au cours de laquelle le nouveau systeme educatif sera definitivement operationnel a tous les niveaux et sur I'ensemble du territoire national. 7.2. Quant 5 la Loi-cadre, iI s`agit d`un instrument juridique important sans lequel les differentes structures du secteur educatif manqueraient de coherence. Cette loi ne devrait pas seulement se limiter 5 determiner le mode de fonctionnement et d'organisation du systeme educatif, mais egalement integrer l'imperatif democratique qui guide desormais les actions de I'Etat et donc s'inscrire dans la dude par rapport au principe d'alternances propres aux regimes democratiques. Aussi, est-it souhaitable de soumettre le projet aux d6liberations du Padement. Article 8 :Du financement de I'education En vue de la construction du pays, le Gouvernement de la Republique a pris I`option de I'economie qui presente I'avantage : -- d'exclure le dirigisme; de promouvoir dans un esprit de partenariat les initiatives des individus, des groupes ou des collectivites humaines; - de favoriser, dans un esprit de r6ciprocite et de discernement, I'ouverture des hommes et de la societe vers les autres, vers les marches et les technologies exterieurs, bref vers tout ce qui conduit - au progres et au bien-&re de tous ; de susciter la participation communautaire la mobilisation des ressources financikres. Pour atteindre les objectifs vises en matiere d'education, le secteur doit Stre dote de ressources financieres importantes et consequentes. Fond4 sur le principe de partenariat, le financement du nouveau - systeme educatif sera assure : par I`Etat (financement direct) e$ @ 152 - par les partenaires actifs du secteur (financement indirect). Le financement direct represente I'engagement de I'Etat d'affecter progressivement a ce secteur une part conskquente du budget national, effort qui sera complete par des apports de la cooperation bilaterale et multilaterale. Le financement indirect proviendra des apports en nature et en espece des partenaires actifs de I'education a savoir : les entit& decentralisees, les parents, les ecoles, les confessions religieuses, les promoteurs des &coles privees agreees, les entreprises, les O.N.G. et autres organismes tant nationaux qu'internationaux. Les activites d'autofinancement des etablissements seront aussi encouragees comme appoint au financement indirect. La Loi-cadre fixera les modalit& de participation de differents partenaires au financement du secteur educatif et determinera la compensation 2 leur accorder notamment en matiere administrative et fiscale. En clair, il faut prendre en compte les indications suivantes en cette matiere : - le renforcement de la responsabilite de I'Etat, principal partenaire qui doit, non seulement contribuer au financement de I'education a raison d'un pourcentage important du budget national, mais aussi faire bkneficier a I`education des apports de la cooperation tant bilaterale que multilat&-ale ; - la maximisation de la contribution des partenaires, bbneficiaires - directs et indirects de I`education et de la recherche scientifique ; la repartition de I'intervention de I'Etat suivant le poids demographique de chaque province en tenant compte des populations scolarisees et scolarisables a tous les niveaux ; - la fixation du niveau de financement de I'education par les provinces et les entites dkcentralisees pour les reseaux d'enseignement ; - I'appel aux confessions religieuses et autres associations enseignantes pour contribuer 2 la rehabilitation des infrastructures de leurs reseaux d`enseignement en dehors de participation dgfinie par leurs statuts propres ; - l`incitation des O.N.G, promoteurs des ecoles privees et autres associations a participer au financement conformement a leur objet social et leur champ d'action. - La creation du Fonds de Promotion de I'Education cornme appoint au financement direct 8 charge de 153 Article 9 :Du suivi et evaluation Pour garantir la bonne execution de la politique educative, le Gouvernement de la Republique disposera d'un organe interministeriel charg6 d'assurer le suivi et I'evaluation des engagements y souscrits. Article 10 : Les Secretaires Gengraux de I'Enseignement Primaire, Secondaire et Professionnel, de I'Enseignement Superieur et Universitaire et des Affaires Sociales sont charges chacun en ce qui le concerne de I'execution du present ArrGt6 qui entre en vigueur 2 la date de sa signature. Fait a Kinshasa, le d~/oJ-/n406 Pour le Gouvernement de la RepubliqueDemocratique du Congo LE 154 (Translatedfrom the original French) PREAMBULE The Governmentof the DemocraticRepublicofthe Congo, Inview ofthe Constitution; Considering the need to base education development on a comprehensive and coherent government policy; Consideringthe Congolese Charter on HumanRightsandthe Rightso fthe People; Reaffirming its adhesion to the Universal Declaration on Human Rights, to the Declaration of Human Rights and the Rights of the People, the World Declaration on Education for All, the Convention on the Rights o f the Child, the World Declaration on Higher Education for the 21" Century, the Millennium Development Objectives, and the African Charter on Human Rights and the Rightsof the People; Convinced of the crucial role that education plays inthe development o f the country, as well as inintegrationonthenational, African and global levels. Considering the resolutions and recommendation issued by various conferences on national education, notably the General Statement on Educationo f January 1996; Notingthat certainprovisions of LawNo. 86-005 o f September 22, 1986 onNational Education no longer meet the current demands and needs o f our country; Concerned about the level ofdestruction anddeteriorationofthe nation's education system; Seekingto reorganize the proper functioning o f the State by implementing good governance for sustainable, integral, integrated and harmonious development o fthe country; Determined to pay particular attention to the education sector as a privileged factor in development. Takinginto accountthe importance of education for all inview o fcurbing social inequalities. Convinced that priority is to be givento all levels oftraining, andto scientific andtechnological research, inorder to provide the country with the expertise necessary for its progress. Consciouso fthe role that nationaland local languages mustplay inthe education process; Emphasizing the need to provide the people with the resources required to achieve the objectives for the education sector; Subscribing to the view that education must enable the fill development of citizens to be managers and vectors for development; Invitingall partnersto support the Government incarrying out the objectives that have been set for the new education system in view o f increasing their assistance and coordinating their activities, which should be withinthe context o fpriorities for the sector; Committed to promoting the culture of peace and to fight against anti-social values such as cheating, corruption, laziness, etc. Making the commitmentto be resolutely involved inturning around the Congolese education system; 155 Taking into account the changesthat have taken place inthe internal and external environment o f the education sector, and determined to face the various challenges that arise, in order to reduce poverty in a sustainable manner and to allow all citizens to contribute to the reconstruction o fthe country. Concerned about reducingthe financial burdenpresentlyborne by families, which is considered to be the principal barrier to education, andto advocate for free primary education. Adopts the present wording o fthe education policy ofthe Democratic Republic o fthe Congo. 1. GeneralContext The history o f our country has beenmarked by various crises which have hindereddevelopment andjeopardized the Nation's future. Within this context, the education system i s one o f the most affected sectors. It i s characterized notably by: the downgrading of the teaching function and the professional social insecurity o f the teacher, leadingto the loss o f calling for the teaching professionand brain drain; the under-qualification o f a large number o fteachers; poor management o fresources; absence o f a continuous training o f education personnel; inadequate, outdated, unsuitable andvery unequally apportioned infrastructure; over-abundant number o fpupils inrelationto intake capacity especially inthe major centers; the absence o fplanning for the settingup of educational institutions and creationof channels o f education; noticeable insufficient or lack o f equipment and appropriate teaching materials; lack o fteaching programs, textbooks, teaching manuals andother pedagogical support; reversal o fvalues; admission rate and schooling inconstant decline; increasing disparity betweensexes and social background; rise inthe level o f illiteracy, dropout and class repetition; supervision level below the education norms ina large number o f teaching institutions; inadequate control and evaluation; failure o f training programs to adapt to the realities andto the needs o f the country as well as the development o fscience andtechnology; the small portion o fthe State budget allocated to the education system; with the consequence o f studentsand parentsbearingthe cost o f salaries and runningo fthe institutions; the decline invalues including indiscipline. 156 The different sector reforms inoperation since 1961did not provide a coherent education policy. The building of a new Congolese society must rely on human resources capable o f harnessing the enormous potential of the country. In fact, human resources constitute the true wealth and real engine o f growth through which other resources will be harnessed. 2. Aim of the New EducationSystem The aim o f the new education system is to educate competent men and women imbued with human, moral, spiritual, cultural and civic values; they should further be creative artisans, buildersofa new democratic, united,prosperous andpeacefulCongolese society. This involves, above all to liberate man o f all burdens which prevent him from participating effectively inthe development o f his country, by arousing inhim a feeling o f well-being, i.e. the attitudes and behavior which will enable him to work towards the improvement o f his living conditions, and the expertise that would make him competent to participate in the development o f society, as well as the proper behavior which constitute the pinnacle o f life within society. Itis alongthese lines that the priority areas ofthe neweducation system are based, Le.: - declarationofeducationasanabsolutepriority; - organizationofeducationforallandbyall; - rehabilitationofvaluebasededucation. Attainment o f the above requires short, medium and long term programs. Actions to be taken now must be based on the following; updatingthe legal framework o fthe education system; fundamental review o fthe education structures andprograms; improvement o fthe mechanisms o f administrative management; mobilization of financial resources; rehabilitation and construction of schools and academic infrastructure and their equitable distribution across the nation; enhancement o f education personnel's careers; the actual taking into account o f partnerships as an essential means o f managing the new educational system; strengthening o f "on the job training" for teachers as well as other education service personnel; regularevaluationof curricula; provision o f appropriate equipment and teaching aids to national education institutions; development o f a school mapping; distribution o f free text books to students as well as teacher's guide for primary school teachers. 157 3. Objectivesof the EducationSystem The differenttypes o fobjectives which the education policy mustpursueare as follows: 3.1 General Objectives: 1) Humanist objectives This involves transforming the learner by passing on knowledge and information, by developing his ability to reflect, to understand, to create and evaluate, in short to train a cultured man, a beingwith a highsense o f morals and who is concerned about what is good, beauty, true justice -amanwholivesinharmonywithothersandwithhisenvironment. 2) Socio-political objectives The education policy aims at integrating man within his community, training men and women who are conscious o f their belonging to a nation and the Congolese society, having a keen sense o fthe common good, a culture o f democracy, o ftolerance and peace. 3) Economic Objectives The education policy for a new society must expose the school to the economic concerns o f the country. In fact, it must cease to be an education which teaches for the sake o f teaching, and become an education which teaches to produce. Henceforth, the Congolese society must train men capable o f transforming their community, by the acquisition of knowledge, aptitude, attitudes and good habits not only inhygienebut especially inproduction and saving. 4) Professional Objectives Education must arouse inthe student the love for productive work and love for the choice o f a profession 3.2 Specijic objectives: 1) Pre-school level to create structures o f education where they do not exist; make them free and compulsory; train teachers. 2) Primary level - programreform; - compulsory education; - emphasizeenvironmental studiesandhealthwithintheprograms; - promotetheacquisitionofpracticalskillsinrelationtovitalactivitiesinsociety; - createorrehabilitate theschoolinhastructure; 3) Secondary level - reform and modernize programs of all cycles towards vocations and adapt them to the development needs o fthe nation; 158 - ensure students are capable inrelationto their fields ofstudy-findsolutions to particular problems o ftrade and the local community. 4) Tertiary level and university - trainanintellectualeliteandinnovativehighlevelpersonnel capable ofparticipatinginthe development o fthe country to transform the society andmake it more humane; - promotescientificresearchindifferentareasforthedevelopmentofthenation. 5) Nonformal education level - trainliteracyandvocationaleducationtrainersthroughoutthecountry; - createnonformaleducationinfrastructure (public libraries, etc)throughoutthecountry; - payspecialattentiontoilliteracy amongwomenandyounggirlsaswell asunderprivileged groups. 4. Major Challenges The new society to be built-upmust take into account both current world development which is dominated by globalization o f economies and societies, and the need for a more demanding national development in terms o f financial and human resources and technological performance. The globalization of economies and development o f information and communications technology which support this evolution makes it necessary for the country to be ina position o f competitiveness and to be highperforming to keepup with the times, without losing its identity. To this end, the exploitation o f the country's enormous human and economic potential will constitute a major asset for facing the fbture, in a world which i s both open and competitive. In this vein, the effort placed on democratic management of the country, on a profitable economy and on prudent financial management, must in turn depend on the intrinsic values o f men and women who are reconciledwith their ethical, moral and cultural values. Thusthe education ofthe people mustnot only be limitedto the school level but mustequally be tackled for the whole society. Also, the following questions must be examined: the budget allocated to education; the objectives andorientation ofeducation; education programs; support to education; organization and planning o fthe education system; matching objectives o fmass training and the strategies for achieving them; relationbetween training andemployment; training, managing and evaluating trainers; evaluation o f learners' knowledge and learningconditions; 159 5. Priority Areas Important efforts to be employed to organize the education system efficiently to enable it to address the specific needs o fthe country are based on major priorities which are: 9 accessto quality basic educationfor all: o early childeducation o primary education o specialized and integrated education for children with disabilities o literacy education for women inparticular 9 quality technical andvocationaleducation 9 tertiary anduniversityeducation anddevelopment research 9 consideration ofthe specific needs ofdifferentregions 9 training oftrainers 9 continuous on-the-job training 9 consideration ofspecific problemsofthe girl childandwomeninthe areaofeducation. With each o f these priorities, it is necessary to define the policy to be put in place, to plan the actions to take and to specify the modalities for administration and management o f the national education system. 5.1Access to quality basic educationfor all Expand education to all young persons without discrimination o f gender, religion, ethnicity etc. Emphasis must be placedon girl-child and women education. 1) Early child education The pre-school education structure is almost non-existent inthe country with the exception o f a few nurseries, crkches and community day care centers located inurbancenters. It is necessary progressively to extendthis form o f education andmake it compulsory because it - contributes to the extension of family education and setting up structures for training specialized personnel for this level; - preparesthechildforprimaryeducation. 2) Primary education Make education accessible, free and compulsory at the primary level. This level aims at ensuring the development o f the personality o f the child in harmony with his family environment. Also, it is important at the pre-school andprimarylevel that - teachingisthroughthenationallanguageand/or locallanguage - themanualsandteachingmaterialsoriginatefromwithinthesociety. 3) Special and integratededucationfor children with disabilities 160 Special education within the formal system and non formal education are to target men and women o f all ages with one or more disabilities, the underprivileged and the marginalized in order to tackle inequalities inthe area o f education. 4) Nonformal education of women inparticular The aim is to institutionalize literacy based on the real needs o f the beneficiaries, by setting up and developing literacy centers, social centers, centers for vocational and permanent education for adults and rehabilitation centers. The achievement o f this objective can be concretized within the framework o f national mass literacy programs (and especially women's education) because literacy must, above all, be literacy for development. 5.2 Secondary technical and vocational education This is to place particular emphasis on quality technical and vocational education. The aim is to identify an exhaustive list o f vocations to be introduced into training, in order to establish a conscious relation between training and employment. This sector must be provided with the necessarymeans for its development 5.3 Tertiary, university,and research development The aim is to complete reform o f tertiary, university and scientific education in order to strengthen their effectiveness and ambitious but realistic plans for these sub-sectors. The capacities o f higher education institutions and universities must be strengthened to enable them to play their traditional role o f teaching, training, research and service to the community. To this end, the government i s creating technological, as well as technical and educationcolleges. Regarding research, the Government will improve the conditions by modernizing equipment, by training and retraining personnel and providing the necessary financing to this sector. 5. 4 Consideration of theparticularities of the different provinces Respecting the notion o f unity in diversity, the new education system must look at a minimum national program o f basic education applicable throughout the republic and complement it by specific inputsfrom each region. 5.5 Training of trainers With a view to ensuring quality education for students, the new education system must benefit from adequate means so that trainers at all levels are trained according to the needs o f the new national education systemand that they benefit from refresher courses. 5.6 Continuing education To ensure a better adaptation o f adults to development, technical, technological as well as the demands o f modern society, the new education system must place special emphasis on vocational training. 5.7Nonformal education Withinthis training, learners will be directed towards learning a trade. 6. Action Strategies Due to the advanced state of deterioration o f our education system, and the plethora o f challenges to confront inorder to save and reconstruct the system, the Government must develop 161 a national plan for this reconstruction, which must be a component o f the national development plan. Actions to take to set up the neweducation system mustconsider: 6.1 Socio-economic conditions,notably: - populationgrowthrate; - increasinglevelofunemploymentandunder-employment; - lackofqualificationofamajorpartofthenationalmanpower; - growingratesofilliteracyespeciallyamongwomen; - material, financial, andhumancapacityofthecountry; - povertyindicators. 6.2 Development in science and technologv, as well as the obligation of a sustainable developmentof resources. 6.3 Strengthening cooperationin education 6.4 Theneed to institute a Unitfor follow-up, supervision and evaluation 7. Sharingof Responsibilities Although the state i s mainly in charge o f the education system, the system cannot develop harmoniously without the family, the school and the society through their decentralized entities pooling together intellectual, moral, material and financial resources, and sharing the responsibilities and tasks to achieve the common objectives for education. Different legal devices, depending on the level, subject areas, ground conditions and time, will clearly define the rights and duties o f all partners. Generally the following will be established: The state as public organizer andfirst partner - its role: - to define the objectives, results and strategies of education andto ensure monitoring and evaluation - tosetoutgeneralmeasuresforoperationsofeducationa1alllevels; - toplanthedevelopmentoftheeducationsystemnationally; - to ensurethat administrative, teaching andfinancial structures aresetupthroughwhichthe partnershipwill operate; - tonegotiateandformalizeinternational, bilateral, andmultilateralcooperationagreementsto benefitall aspects o fthe national education system; - totakechargeoffinancingtheeducationsystem. Partners, notably decentralized entities, parents, educational institutions, religious groups, NGOs, owners o f private schools, and various other organizations should have the following roles: 162 to actively and democratically participate in the structures set up in relation to the goals, objectives and strategies o f the education system, reviewing and revision o f programs, and monitoring and evaluation o f education; to ensure follow-up and reasonable use o f the education provided, to ensure conformity o f education with the demands o fthe labor market andthe needs o fthe community; to contribute in various ways to the moral, human, material and financial resources o f education; to encourage out o f school activities. The level, nature andmodalities o fparticipationo fpartners at all levels mustbe clarified. 8. Operational Methods The implementation o fa new education system will be better facilitated ifit is providedwith the operational means to ensure its effectiveness. The framework for implementation must be defined. Mechanisms for supervision and evaluation o f the different phases o f the education policy must be put in place. The national plan for reconstruction and development o f the education system and the law underlyingthe sector are part o fthis framework. 8.1 The national plan for reconstruction and development of the education system must set out the actions to undertake in the short, medium and longer term. The plan shouldhave three stages: - emergency reconstruction, to maintain the existing system before proceeding with more widespread change and reform; - layingthe foundationfor anewsystemofeducation throughnewstructures, decentralized administration; - consolidationandexpansion sotheneweducationsystembecomes operational at all levels throughout the country. 8.2 Theframework is an important legal instrument without which the different structures of the sector would lack coherence. This legal framework should not only determine the mode o f operation o f the education system, it should also integrate democratic approaches as mandatory imperatives henceforthto guide the actions o fthe State. It i s also desirable to submit the proposal to parliament for discussion. 9. Financing of Education Inreconstructing the country, the Government hastakenthe economic paththat: - promotespartnershipthroughtheinitiativesofindividuals,groups,orsocialcollectivities; - encourages opening education to the demands of society, toward external markets and technologies; inshort towards all that leads to progress and the well beingo f all; - encouragescommunityparticipationinmobilizingfinancialresources. To achieve these objectives, the sector must be provided with adequate financial resources. 163 Based on the principle o f partnership, the financing o f the new education system will be ensured by: - theState(direct financing) and - partners(indirect financing). Direct financing represents the commitment of the State progressively to allocate a sizeable portion o f the national budget to the education sector, an effort which will be complemented by bilateral and multilateral support. Indirect financing will come from support inkindand cash from active partnerso f education i.e. decentralized entities, parents, schools, religious bodies, private approved school proprietors, companies, NGOs, and other national and international organizations. Self-financing o f schools will also beencouraged as support to indirect financing. The legal framework will set the modalities o fparticipationo f the different partners infinancing the education sector. The following points mustbe considered: strengthening the responsibility o f the state, the principal partner which must not only contribute to financing o f education through a sizeable portion o f the national budget, but also enable education to benefit from bilateral and multilateral cooperation; maximizing the contribution of partners, direct and indirect beneficiaries; distributingthe state contribution according to demographic patterns ineach region; fixing the level o f financing of education by the provinces and decentralized entities for education; appealing to religious bodies and other associations to contribute to the rehabilitation of infrastructure inthe education system, beyondparticipationdefinedby their own statutes; giving incentives to NGOs and other promoters o fprivate schools to participate infinancing; creating an Education Promotion Fund as an additional financing mechanism for the direct financing by the state. 10. Monitoring and Evaluation To ensure proper implementation o f the education policy, the Government will have an inter- ministerial organ charged to monitor and evaluation the aforementioned actions. 164 10¡E 15¡E CENTRAL AFRICAN REPUBLIC 25¡E 30¡E S U D A N To 5¡N Ubangi To Bangasso 5¡N To Kembe Bangui To Zongo Juba Bondo Faradje Libenge Uele Businga DEM. REP. Titule Gemena Buta Watsa Kibali OF CONGO Aketi Isiro To Imese Akula Lisala Bumba O R I E N TA L E Pakwach Wamba Oubangui UGANDA Bongandanga Congo Mongbwalu Bunia Banalia Lulonga A ruwimi Lake Basankusu Bafwasende ts. M Albert Yangambi Beni E Q U AT E U R Kisangani Butembo Margherita Peak 0¡ Wanie Rakula Mbandaka Boende itumba(5,110 m) 0¡ CONGO M Lake GABON Tshuapa Lubutu N O R D Edward Lake Bikoro Luilaka Salonga Ikela Lomami Lomela K I V U - Lowa Goma Victoria To Ruhengeri Inongo gnoo C Ulindi Lake Kivu Yumbi Betamba To RWANDA Kutu Kalima Bukavu Kibuye S U D - Bandundu Buna Lodja Kindu KINSHASA Kasai Lukenie K I V U Uvira To ATLANTIC B A N D U N D U K A S A I M A N I E M A Kama Bujumbura BURUNDI Mangai Sankuru Ilebo OCEAN O R I E N TA L KINSHASA Bulungu KASAI Malela Kenge Lusambo Kasongo Lulimba 5¡S CABINDA Kikwit Idiofa OCCIDENTAL 5¡S (ANGOLA) B A S - C O N G O Kongolo To TANZANIA Pointe- Boma Mbanza-Ngungu Mbuji- Noire Kwilu Kananga Lukuga Kalemie Lake Matadi Feshi Mayi To Kabinda Tanganyika Damba Kwango Kabalo Tshikapa Kasai Moba Mwene-Ditu Manono DEMOCRATIC REPUBLIC K ATA N G A Luvua OF CONGO Lomami Kapanga Kamina Pweto A N G O L A Lulua Lueo Mts. a Lake SELECTED CITIES AND TOWNS Kilwa Mweru Sandoa PROVINCE CAPITALS Lubudi MitumLbufira 10¡S NATIONAL CAPITAL To RIVERS 0 100 200 300 400 Kilometers Dilolo Kolwezi Luwingu Z A M B I A Likasi Lake MAIN ROADS To Lucano Lualaba Malawi NOVEMBER 0 100 200 Miles I RAILROADS Lubumbashi IBRD PROVINCE BOUNDARIES This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank ZAMBIA To Sakania 33391 Group, any judgment on the legal status of any territory, or any Kitwe ALAW 2004 INTERNATIONAL BOUNDARIES endorsement or acceptance of such boundaries. M 25¡E 30¡E