Document of The World Bank FOR OFFICIAL USE ONLY Report No: 56404-TG CATALYTIC FUND PROGRAM DOCUMENT ON A PROPOSED GRANT FROM THE EDUCATION FOR ALL – FAST TRACK INITIATIVE CATALYTIC FUND IN THE AMOUNT OF US$45 MILLION TO THE REPUBLIC OF TOGO FOR A EDUCATION AND INSTITUTIONAL STRENGTHENING PROJECT (PERI) September 16, 2010 Human Development Sector Education Unit Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Currency Equivalents Currency Unit = CFA Franc (CFAF) US$1.00 = CFAF 509 (as of July, 8, 2010) Fiscal Year January 1 – December 31 ACRONYMS AND ABBREVIATIONS AeA NGO Aide et Action AFD French Development Agency (Agence Française de Développement) AFDB African Development Bank AFTEN World Bank Environment and Natural Resources Management Department AGETUR Contract Management Agency (Agence d’Exécution des Travaux Urbains) BAP Budgeted Action Plans CAP Teacher Professional Exam (Certificat d’Aptitude Professionnelle) CAS Country Assistance Strategy CCP Coordinating Committee CDD Community Driven Development CF Catalytic Fund CMA Contract Management Agency CONFEMEN Conference of Francophone Ministers of Education (Conférence des Ministres de l’Education ayant le Français en partage) COGEP School committee (Comité de Gestion des Ecoles Primaires) CPAR Country Procurement Assessment Review CSC Construction Strategic Council CSE High Level Education Steering Committee (Conseil Supérieur de l’Education) CSR Country Status Report CTC Construction Technical Unit CWIQ Core Welfare Indicator Questionnaire DA Designated Account DAF Direction of Finance (Direction des Affaires Financières) DANIDA Danish cooperation DPEE Direction of Education Planning and Evaluation (Direction de la Planification de l’Education et de l’Evaluation) DRE Regional Directorates (Direction Régionale de l’Education) ECD Early Childhood Development EDIL Community School (Ecole D’Initiative Locale) EFA-FTI Education For All - Fast Track Initiative EMIS Education Management of Information System ENI Primary Teacher Training Institute (Ecole Normale d’Instituteurs) ii ENIJE Preschool Teacher Training Institute (Ecole Normale d’Instituteurs pour les Jardins d’Enfants) EPTT AFD-financed Education project (Education Pour Tous au Togo) ERGG Economic Recovery and Governance Grant ESMF Environmental and Social Management Framework ESP Educator Sector Plan EU European Union FM Financial Management GDP Gross Domestic Product GFRP Global Food Response Program GMT Grassroots Management Training GtZ German Cooperation HDI Human Development Index HIPC Heavily Indebted Poor Countries HIV/AIDS Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome IBRD International Bank of Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IFAC International Federation of Accountants IFR Interim Financial Report IMF International Monetary Fund ISA International Standards of Auditing IsDB Islamic Development Bank ISN Interim Strategy Note ITC Implementation Technical Committee LEDG Local Education Donor Group LCS Least Cost Selection LICUS Low-Income Countries Under Stress LYA Last Year Available M&E Monitoring and Evaluation MASPFPEPA Ministry of Social Affairs, Women Empowering and Protection of Children and Elderly (Ministère de l’Action Sociale, de la Promotion de la Femme, de la Protection de l’Enfant et des Personnes Agées) MDG Millennium Development Goal MEPSA Ministry of Primary, Secondary Education and Literacy (Ministère des Enseignements Primaire, Secondaire et de l’Alphabétisation) MESR Ministry of Higher Education and Research (Ministère de l’Enseignement Supérieur et de la Recherche) METFP Ministry of Technical Education and Vocational Training (Ministère de l’Enseignement Technique et de la Formation Professionnelle) MICS Multiple Indicators Cluster Survey MoU Memorandum of Understanding MTEF Medium Term Expenditure Framework NCB National Competitive Bidding NGO Non-Governmental Organization iii OHADA Organization for the Harmonization of Business Law in Africa (Organisation pour l’Harmonisation en Afrique du Droit des Affaires) PASEC CONFEMEN Education System Analysis Program (Programme d’Analyse des Systèmes Educatifs de la CONFEMEN) PEMFAR Public Expenditure Management and Financial Accountability Review PERI Education and Institutional Strengthening Project (Projet Education et Renforcement Institutionnel) PCR Primary Completion Rate PCU Projects Coordination Unit PDC Projet de Développement Communautaire PDO Project Development Objective PFM Public Finance Management PLAN TG NGO PLAN Togo PNDCC Community Driven Development National Project (Projet National de Développement Conduit par les Communautés) PPMR Long-Term Micro-Achievement Program (Programmes Pluriannuels de Micro-Réalisations) PRGF Poverty Reduction Growth Facility PRSP Poverty Reduction Strategy Paper PURP Poverty Reduction Emergency Project (Programme d’Urgence de Réduction de la Pauvreté) QCBS Quality and Cost Based Selection RFP Standard Request for Proposal RPF Resettlement Policy Framework SIL Sector Investment Loan SSA Sub Saharan Africa STP Permanent Technical Secretariat (Secrétariat Technique Permanent) SWAP Sector Wide Approach Prograrn TFP Technical and Financial Partner TOR Terms of Reference UCG Accounting and Procurement Unit (Unité Comptable et de Gestion) UNAIDS United Nation Programme on HIV/AIDS UNICEF United Nation Children’s Fund WAEMU West African Economic and Monetary Union WFP World Food Program WHO World Health Organization Regional Vice President: Obiageli K. Ezekwesili Country Director: Madani M. Tall Sector Director: Tawhid Nawaz Sector Manager: Christopher J. Thomas Task Team Leader: Mathieu Brossard Donor Coordination Agency: Olivier Cador (AFD) iv TOGO EFA-FTI CATALYTIC FUND GRANT TABLE OF CONTENT Page A. STRATEGIC CONTEXT AND RATIONALE .................................................................... 1 A.1 Country and sector issues ...................................................................................................... 1 A.2 Rationale for FTI/CF and World Bank involvement ......................................................... 3 A.3 Higher level objectives to which the project contributes.................................................... 4 B. PROJECT DESCRIPTION ................................................................................................... 4 B.1 Financing Instrument ............................................................................................................ 4 B.2 Development objectives and key performance indicators .................................................. 5 B.3 Project components ................................................................................................................ 6 B.4 Justification of Project design ............................................................................................... 7 C. IMPLEMENTATION ............................................................................................................. 8 C.1. Partnership arrangements ................................................................................................... 9 C.2. Institutional and Implementation Arrangements .............................................................. 9 C.3 Monitoring and evaluation of outcomes/results ................................................................ 12 C.4 Sustainability ........................................................................................................................ 14 C.5 Risks ...................................................................................................................................... 15 C.6 Effectiveness and disbursement conditions ....................................................................... 19 D. APPRAISAL SUMMARY .................................................................................................... 20 D.1 Economic and financial analyses ........................................................................................ 20 D.2 Technical ............................................................................................................................... 21 D.3 Fiduciary ............................................................................................................................... 21 D.4 Social ..................................................................................................................................... 22 D.5 Environment and Safeguard Policies ................................................................................. 23 D.6 Policy Exceptions and Readiness ........................................................................................ 23 v Annex 1: Country and Sector Background .............................................................................. 24 Annex 2: Major Related Projects Financed by the World Bank and/or other Agencies ..... 26 Annex 3: Results Framework and Monitoring ........................................................................ 27 Annex 4: Detailed Project Description ...................................................................................... 34 Annex 5: Project Costs and proposed financing of the ESP over the CF grant period ....... 55 Annex 6: Institutional Arrangements ....................................................................................... 56 Annex 7: Financial Management and Disbursement Arrangements ..................................... 61 Annex 8: Procurement Arrangements ...................................................................................... 70 Annex 9: Economic and Financial Analysis ............................................................................. 77 Annex 10: Safeguard policy issues ............................................................................................ 81 Annex 11: Project Preparation and Supervision ..................................................................... 84 Annex 12: Documents in the Project File ................................................................................. 86 Annex 13: Statement of Loans and Credits .............................................................................. 88 Annex 14: Country at a Glance ................................................................................................. 89 Annex 15: Map ............................................................................................................................ 91 Additional Annex 16: Summary of the MEPSA School building strategy ............................ 92 List of tables Table 1: ESP Objectives and Sub-Objectives and Supporting Partners ................................. 3 Table 2: Number of teachers’ recruitment, past and planned................................................ 14 Table 3: Description and rating of risks and mitigation measures ........................................ 15 Table A2.1: Issues and results of the most recent World Bank-financed Projects in Education ..................................................................................................................................... 26 Table A2.2: Summary of Donor main Contributions to education sector............................. 26 Table A3.1: EFA-FTI Indicative Framework Indicators and Targets for Togo .................. 33 Table A4.1: Distribution of primary school classroom built by Institutions/Projects: ........ 34 Table A4.2: Classroom Unit cost (per square meter –HO) according to different approaches ................................................................................................................................... 35 Table A4.3: Number of firms either pre-qualified or with building records, by region ...... 36 Table A4.4: Number of textbooks delivered by UNICEF project and remaining gap ......... 40 Table A4.5: Distribution of teachers by type of training, primary schools, 2007. ................ 45 Table A4.6: Pupil-Teacher Ratio by region, 2007.................................................................... 45 vi Table A5.1: Financing of the ESP by level of schooling and source of funding (2010-2013 MTEF Summary), in k US$ ....................................................................................................... 55 Table A5.2: Distribution of spending of the EFA-FTI operation by sub-component and year, in k US$ .............................................................................................................................. 55 Table A5.3: Distribution of spending of the EFA-FTI operation by type of spending and year, in k US$ .............................................................................................................................. 55 Table A7.1: Summary of FM risk assessment .......................................................................... 62 Table A8.1: Summary of Project preparation actions plan .................................................... 73 Table A9.1: Macro-economic indicators and budget priority for education, 1995-2007 ..... 77 Table A9.2: Distribution of recurrent expenditure by level of education, in %, 2007 ......... 79 Table A9.3: International comparison of public recurrent unit cost, by level (expressed as % of per capita GDP), 2007 ....................................................................................................... 79 Table A9.4: Distribution of expenditure by type and level of education, in %, 2007 ........... 80 Table A10.1: Responsibilities regarding expropriation .......................................................... 82 Table A16.1: Distribution of primary school classroom built by Institutions/Projects: ...... 93 Table A16.2: Classroom Unit cost (per square meter –HO) according to different approaches ................................................................................................................................... 93 List of figures Figure 1: Organization chart of the Project ............................................................................. 11 Figure 2: Results Framework for the project........................................................................... 13 Figure A4.1: Recurrent spending other than teachers’ salaries, in %, LYA ........................ 42 Figure A4.2: Spending per student and Exam Pass Rate, primary schools, 2007. ............... 43 Figure A4.3: Consistency of teacher deployment index, 2008/09 or LYA ............................. 52 Figure A8.1: External aid as % of GDP, 2004-2006 average .................................................. 78 The World Bank’s core team for this operation was led by Mathieu Brossard (AFTED). The team members were: Yacinthe Gbayé (AFTED), Cherif Diallo (AFTED), Kokou Amelewonou (AFTED), Itchi Ayindo (AFTPC), Alain Hinkati (AFTFM), Olav Christensen (HDNED), Africa Olojoba (AFTEN), Abdoul-Wahab Seyni (AFTCS), Serge Theunynck (AFTED), Jean-Claude Hameidat (AFTED), Alexandra Tran (AFTED), Youmna Sfeir (AFTED), Rachidi Radji (AFTED), Michael Drabble (LCSHE), William Experton (AFTED), Peter Materu (AFTED), Andy Tembon (AFTHE), Daria Goldstein (LEGAF), Anthony Molle (LEGAF), Said Hanafy (LEGAF), Franco Russo (AFTED), Victoria Gyllerup (AFTRL), Dung-Kim Pham (AFTED), Rose-Claire Pakabomba (AFTED), Danièle Jaekel (AFTHE), Cornelia Jesse (AFTED), Jee-Peng Tan (AFTED), Giuseppe Zampaglione (AFTSP), Mohamed Diaw (CFPPM), Norosoa Andrianaivo (AFTED) and Chantal Tiko (AFMTG) vii A. STRATEGIC CONTEXT AND RATIONALE A.1 Country and sector issues 1. Located in the Gulf of Guinea between Benin and Ghana, Togo is a country with an estimated population of 7.1 million (2010 UN projections). Per capita income (US$437 in 2009) is low compared to Sub-Saharan Africa (US$1,082) and Low Income Countries (US$524) averages. Togo’s growth performance has been among the weakest in Sub-Saharan Africa, with per capita income declining by an average of one percent annually since the early 1980s. Togo has a very poor human development index (HDI), ranking 159 out of 182 countries. Since 1990, Togo experienced a long period of socio-political crisis that ended with the parliament elections in October 2007. Encouraged by the success of those elections and the new government’s reform platform, donors reengaged with Togo after more than 15 years of very limited assistance. Togo reached the Heavily Indebted Poor Countries (HIPC) Initiative decision point in November 2008 and expects to reach Completion Point by end-2010. 2. Togo’s general education system is divided into four levels: (i) a three-year pre-school cycle designed for 3-5 year olds, (ii) a six-year primary cycle designed for 6-11 year olds, (iii) a seven-year secondary education cycle designed for 12-18 years old, consisting of a four-year junior level and a three-year senior level and (iv) a higher education system (two public universities and private institutions). There are also (i) technical and vocational education at the junior and senior secondary levels and (ii) literacy programs. 3. Due to the long-lasting socio-political crisis coupled with economic mismanagement and the withdrawal of donor support, the education sector has made little progress towards the Millennium Development Goal (MDG). The major issues facing the education sector are described below: 4. Low completion: The primary completion rate (PCR) is the same in 2009/10 as it was ten years ago (63%). Although Togo is still in the top-half of Sub-Saharan countries, reaching 100% completion rate remains a challenge. There is almost universal access to primary first grade but the education system still faces a high level of drop-outs. Only 61% of grade 1 new entrants complete the primary cycle (compared to 71% on average in SSA). The problem of drop-outs is due to both a lack of classrooms (11% of Togolese schools have not enough facilities for providing education to all the six grades of primary1) and to the fragility of demand for schooling. 5. Recent school fees abolition: Consistent with the emphasis on reaching the MDG, the Government abolished the pre-primary and primary school fees in 2008/09. It helped reduce the burden for households and has started to effect access to school for the poorest families 2. Nevertheless, the public financial compensation (so far FCFA 2 billion annually) for counter- balancing the loss of resources for schools is far below the needs. Moreover, only a slight proportion of the financial compensation is managed by the school itself. 1 In the regions of Kara, Savanes and Centrale, the proportions of such schools are even higher (see ESP). 2 The enrolment in Pre-school and in Grade 1 has increased by respectively 54% and 27% between 2007/08 and 2008/09. Access rate to Grade 1 jumped from 107% in 2007 to 129% in 2009. 1 6. Disparities: In 2006, PCR was 61% for girls and was 76% for boys3. Disparities between rural and urban areas and between levels of family income were even larger. PCR in rural areas was only 60% (compared to 84% in urban areas) and PCR for the 40% poorest families was only 52% (compared to 88% for the 20% richest). 7. Poor quality: 28% (equal to African average) of pupils leaving school after completing the primary cycle do not stay sustainably literate at adult age. It is associated with: (i) the significant shortage of teaching material, in particular textbooks (one mathematics textbook per 2.1 pupils, and one reading textbook per 2.0 pupils), (ii) discontinued teacher training delivery in 2002 due to budget constraints that prevented the hiring of new teachers (36% of teachers are non-trained parent-teachers) and (iii) the lack of resources for operating budget at the school level (teachers’ and staff’s payroll costs account for 95% of total recurrent expenditure in primary education, one of the highest percentages in Africa). 8. Weak management and institutional capacity: Procurement and financial management capacities in the Ministries of Education are largely improvable, in particular due to the quasi- absence of externally-financed projects during the last 15 years. As another key issue regarding need for improvement capacity, Togo is one of the lowest achievers in terms of consistency in teacher deployment. 9. Government Strategy: In 2008/09, following an exhaustive process of technical work and consultation with stakeholders and civil society, the Government4 prepared a letter of sector development policy, a 2010-2020 Education Sector Plan (ESP, Plan Sectoriel de l’Education) and a 2010-2012 Sector Medium Term Expenditure Framework (MTEF) for the three first years of ESP implementation. Those documents reflect the views of both national and international partners and there is a strong consensus around the main sector issues and policies for addressing them. The ESP and the MTEF are in line with the education strategy of the Government’s Poverty Reduction Strategy Paper (PRSP, see also part A.3). The letter of development policy was adopted by the Council of Ministers in June 2009 and the ESP was approved by a Presidential Decree signed in March 2010. The ESP was endorsed by the Local Education Donor Group (LEDG) in March 2010. The ESP is an exhaustive, sector-wide plan, with a wide range of realistic targets and policies on all sub-sectors. It is in line with the FTI objectives. The ESP’s priority objective is to achieve universal quality primary education by 2020. It proposes a balanced development of the education and training system as a whole with emphasis on improving quality and external efficiency of post-basic education for contributing better to economic growth. 10. The ESP has been prepared in close collaboration with the LEDG. The ESP is articulated in four main objectives and includes all the interventions planned by donors (see table 1 below). 3 Education Sector Plan (indicators computed thanks to the CWIQ 2006 household survey) 4 In particular, the four Ministries in charge of the education sector. 2 Table 1: ESP Objectives and Sub-Objectives and Supporting Partners ESP Objectives and Sub-objectives Supporting partners Objective 1: Balancing the educational pyramid while reducing disparities in access Sub-obj. 1: Enhancing early childhood care and development PLAN TG/EFA-FTI AFD/WFP/DANIDA/IsDB/PLAN Sub-obj. 2: Achieving universal access and completion of primary education TG/PDC-IDA/UNICEF/EFA-FTI Sub-obj. 3: Halving the adult (15-45 years old) illiteracy rate PLAN TG/DANIDA/EFA-FTI Sub-obj. 4: Increasing access and retention in lower secondary education to the extent of available resources, and linking the development of upper secondary education to a better quality and more job market-oriented higher education system Sub-obj. 5: Increasing access to technical secondary education GtZ, AFD Sub-obj. 6: Increasing access to vocational training GtZ, AFD Sub-obj. 7: Increasing equity in access to quality higher education Objective 2: Improving efficiency and quality of education service WFP/IsBD/PLAN TG/PDC- Sub-obj. 1: Reduce significantly drop-out rate in primary education IDA/EFA-FTI Sub-obj. 2: Reducing significantly drop-out rate in secondary education Sub-obj. 3: Reducing significantly drop-out rate in higher education AFD/IsDB/PLAN Sub-obj. 4: Developing assessment and results-based management TG/UNICEF/EFA-FTI Sub-obj. 5: Improving the quality of pedagogical support IsDB/UNICEF/EFA-FTI Sub-obj. 6: Reviewing curricula UNICEF Sub-obj. 7: Developing and promoting academic research Sub-obj. 8: Increasing availability of textbooks and learning materials for students and IsDB/UNICEF/EFA-FTI teachers Sub-obj. 9: Promoting school health in order to improve learning capacity and social WFP integration Sub-obj. 10: Promoting access to ICT Objective 3: Developing effective partnerships with civil society Sub-obj. 1: Involving occupational institutions in the preparation of the curricula of technical, GtZ, AFD vocational and technological education and training Sub-obj. 2: Designing and promoting public-private partnership Objective 4: Improving management and governance AFD/DANIDA/AeA/ /PLAN Sub-obj. 1: Decentralizing resources’ management TG/UNICEF/EFA-FTI AFD/DANIDA/AeA/ /PLAN Sub-obj. 2: Promoting good governance in the education system TG/UNICEF/ EFA-FTI A.2 Rationale for FTI/CF and World Bank involvement 11. As appraised by the LEDG using the EFA-FTI Appraisal Guidelines, the ESP is sound technically and realistic in terms of implementation and absorption capacity (see Donor’s Appraisal Report). Nevertheless it lacks funding, as the government’s financial resources remain severely constrained and donors are few in Togo. Resources focused explicitly on achieving universal quality primary education from the EFA FTI Catalytic Fund (CF) would make a significant and essential contribution to the implementation of the ESP first phase (2010-2013), also supported by other development partners (Agence Française de Développement (AFD), 3 UNICEF, Islamic Development Bank (IsDB), DANIDA) and international NGOs (Plan Togo and Aide et Action). 12. The World Bank reengaged with Togo in May 2008, when arrears to IDA were cleared and the Board endorsed an Interim Strategy Note (ISN) for FY08-2010 and approved a US$175 million Economic Recovery and Governance Grant (ERGG). The Country Assistance Strategy (CAS), to be prepared in 2010, will support PRSP activities and in particular the enhancement of human capital. A.3 Higher level objectives to which the project contributes 13. At the international level, the project will contribute to the attainment of the education MDGs. At the national level, the project (and the ESP as a whole in which the project is imbedded) will support the PRSP adopted by the Council of Ministers on June 21, 20095. One of the four pillars of the PRSP is developing human capital. The education strategy in the PRSP is in line with the ESP, both in terms of objectives and in terms of monitoring indicators. B. PROJECT DESCRIPTION B.1 Financing Instrument 14. Based on the success of the Ministries in charge of the Education Sector (MEPSA, METFP, MESR and MASPFPEPA) in preparing a credible full sector-wide ESP and after discussions with the LEDG and with the EFA-FTI Secretariat, it has been agreed to process a request for an EFA-FTI Catalytic Fund Grant6. The Local Education Group (including Government and donors) agreed to have the World Bank as the supervision entity of the grant. 15. The financing instrument selected is a sector investment grant, which is the most appropriate for Togo considering the quasi-absence of projects during the last ten years and the lack of financial management capacity. The possibility of a development policy instrument was considered, but rejected because (i) the PRSP is in a very early stage of development and (ii) the national financial management system is weak due to an environment characterized by weak governance and transparency systems at all levels even if progress have been achieved according to the ERGG mission in December 2008. 16. The EFA-FTI operation will i) share the Project Coordination Unit (PCU) of the MEPSA with the AFD-funded EPTT project, and ii) build the MEPSA departments’ capacity -through a learning by doing process- in order to progressively transfer the responsibilities from the PCU to the MEPSA Departments. This approach -in line with the aid effectiveness principles and with the EFA-FTI partnership framework- will pave the way for support through pooled funding and sector budget support in the future (after this first EFA-FTI operation). 5 The PRSP is in line with the Letter of Development Policy, sent by the Government, on April 28, 2008 to the World Bank President in order to seek support in the form of the Economic Recovery and Governance Grant. The Letter of Development states “the main specific objectives of the education sector aim to reduce the contribution of families to the financing of basic education, to lower school dropout rate and school year repetition rate�. 6 At an early stage of preparation of the operation, a request to the EFA-FTI Transition Fund was envisaged but this Fund is not yet operational. 4 B.2 Development objectives and key performance indicators 17. The objectives of the Project are to (i) increase coverage of and retention in basic education, (ii) support improvements in the quality of teaching, and (iii) strengthen institutional and community capacity in implementation and management of the Project. 18. This operation supports the implementation of the first phase of the 2010-2020 Government’s Education Sector Plan (ESP) that has the longer-term objective to reach universal quality primary completion by 2020 (see the Table 1 in part A.1 above). 19. This operation will use a sub-set of the ESP indicators to track the attainment of the objectives for the CF grant. With the exception of the primary completion rate, the key performance indicators are more output indicators than outcome indicators because the length of the project (three years) is too short to achieve substantial improvements on most outcome indicators, in particular on quality (student learning). The key performance indicators are the following (see also Annex 3 for the full list of indicators and results and monitoring framework): (i) Increase in Primary Completion Rate7 (both FTI and IDA Core Indicator) from 63% in 2009 to 74% in 2013; (ii) Direct project beneficiaries (number) – of which female (%) (IDA Core Indicator) as captured by an increase of the cumulative number of students enrolled in schools constructed/extended up to 75,000 in 2013; (iii) Improvement of the Reading Textbooks:Students Ratio8 from 1:2.0 in 2009 to 1:1.4 in 20139; 10 (iv) Improvement of the Mathematics Textbooks:Students Ratio from 1:2.1 in 2009 to 1:1.5 in 201311; and (v) A time-bound implementation plan to support capacity-building of the communities and of the MEPSA and skills’ transfer from the Project Coordination Unit (PCU)12 is approved by the MEPSA and at least 75 percent of activities for each year are successfully implemented, as evaluated by the joint donor supervision mission. The plan includes the indicator on the number of communities that receive Grassroots Management Training (GMT). 20. The EFA-FTI Indicative Framework for Togo is included in Annex 3. The Indicative Framework includes the main indicators for the ESP. They will be jointly monitored and 7 The Primary Completion Rate is defined as the total number of students regardless of age in the last grade of primary school, minus the number of repeaters in that grade, divided by the number of children of official age for completing primary level. 8 The Ratio reading Textbooks:Students is defined as the number of reading textbooks that fulfill a need, divided by the number of students in primary school. As an example, if a school has 100 reading textbooks for Grade 1 but only 80 grade 1 students, only 80 textbooks are counted as fulfilling a need. 9 This improvement matches with an increase of the number of textbooks from 415 000 to 612 000 10 Same as the previous indicator with the exception of mathematics instead of reading 11 This improvement matches with an increase of the number of textbooks from 395 000 to 572 000 12 The capacity building plan was prepared using the “EFA-FTI Guidelines for Capacity Building Assessment�. 5 assessed by the MEPSA and the LEDG and will serve to measure progress towards the achievement of the education MDGs and EFA goals. 21. The Gender Parity Index in primary education (FTI and IDA Core Indicator)13 will also be monitored. The ESP goal regarding that indicator is an increase from 0.84 in 2009 to 0.90 in 2013. Only indirect impacts from the Project are expected as a result of building new classrooms in locations where enrolment ratios, and consequently, gender parity indices are the lowest. There is also international evidence that building schools with separated latrines (which is the case of this Operation) has a significant impact on girls’ attendance. B.3 Project components 22. The Operation will feature three components (see Annex 4 for detailed description and Annex 5 for detailed cost breakdown). (i) Component 1: Access and retention (US$ 22.6 million) 1.1 Construction of new classrooms and related facilities in selected urban areas of the Recipient’s territory. 1.2 Carrying out of specific development projects consisting of construction of new classrooms and related facilities in selected rural areas, through the provision of Sub- grants to eligible school-based management committees (COGEP). Specifically the component will apply the new construction strategy developed by the MEPSA during the preparation of the ESP14 and build about 815 new classrooms (163 in Year 1, 285 in Year 2 and 367 in Year 3). The classrooms’ construction management will be delegated by the Ministry to either a contract management agency (urban) or school-based management committees (rural). The classrooms will be disability-friendly and they will be complemented with gender-friendly latrines15 and water access. (ii) Component 2: Inputs for Quality (US$ 14.7 million) This component supports critical inputs for improving quality, as referenced in the analytical work prepared16: 2.1 Provision of textbooks in core subjects (e.g. mathematics and reading) for public and community primary schools. 2.2 Carrying out of specific development projects consisting of supply of teaching materials and support to teaching and learning quality enhancement programs, including, supply of 13 The Primary Gender Parity Index is defined as the ratio of the female-to-male values of the gross enrolment rate in primary education 14 The construction strategy is detailed in the document Stratégie Nationale du MEPSA en matière de constructions scolaires du primaire, MEPSA, Togo, August 2009 which is included in the project document file. A summary has been translated in English and is presented in Additional Annex 16. 15 There is international evidence that separated latrines for girls impact positively on girls’ enrolment. 16 See the 2007 Light Education Country Status Report 6 pedagogical material, textbooks, stationery, school building maintenance, and school furniture maintenance, through the provision of Sub-grants to eligible COGEP17. 2.3 Construction of a regional teacher training institute in each of the Kara, Golfe, and Centrale regions. (iii) Component 3: Institutional Strengthening (US$ 7.7 million) 3.1 Strengthening of the school building management capacity and supervision of the Ministry and of the communities. 3.2 Capacity building of the MEPSA by (i) setting up a system for learning assessment, (ii) improving consistency of teachers’ deployment across schools, (iii) supporting the preparation of credible implementation plans for pre-school and literacy development; and (iv) supporting the preparation of a credible implementation plan regarding school health, nutrition and HIV/AIDS. Those areas have been selected as priority areas after consulting the donors on their capacity-building activities in order to be complementary to the other donors’ support. In particular the EPTT project builds capacity in statistics, in sector policy planning and monitoring and in teacher training (EPTT components 1 and 4)18. The pre-identified areas for the EFA-FTI project constitute the most important remaining gaps for ensuring a smooth implementation of the ESP and for improving system management. A time-bound capacity building implementation plan has been prepared (using the “EFA-FTI Guidelines for Capacity Building Assessment� and other references19) and will be monitored during the annual joint sector reviews. B.4 Justification of Project design 23. The components, sub-components and activities have been selected in order to be complementary to the other donors’ support to the ESP. 24. One of the main lessons derived from experience of previous EFA-FTI projects in other countries has been the need for simple project designs, closely tied to the Government ESP, and with strong Government ownership in order to speed-up implementation and disbursement. Learning from these lessons, this project is derived from the Government’s Medium Term Expenditure Framework 2010-2012, is focused on a limited number of interventions included in the ESP, and puts emphasis on enhancing implementation and management capacity for future step up of the current project activities. 25. Strong focus is put on capacity building activities because (i) MEPSA has not implemented a World Bank project for more than 10 years, (ii) capacity building/strengthening will support the implementation of the key ESP policy reforms20 and (iii) there is a rationale in 17 See Annex 4 for details 18 The capacity building activities of the EPTT project are supported by three full-time international experts located in the MEPSA. 19 See E. Orbach, Assessing organizational capacity tool, World Bank 20 As key examples: improving teacher deployment consistency, transferring responsibilities at the school/community level for an increased accountability and, setting up a learning assessment system 7 building capacities first with minimal investment activities and then progressively moving towards scaled-up investment activities. 26. School building is a very pressing priority for external support. There is a growing demand for schooling (enhanced by the recent school fee abolition) but Government has not been able to build the necessary classrooms, due to budget constraints. Government financing patterns prioritize payroll cost, leaving a financing gap in the provision of infrastructure. 27. Lessons learned from recent experiences in school buildings in Togo include: (i) the country has the asset of experience in community-based approaches (73% of the classrooms built during the last 4 years) although not with the Ministry of Education; (ii) delegation of school construction management is more efficient than direct management by the Ministry; and (iii) community-based approaches are by far the more cost-effective, allowing 20% to 25% saving compared to centrally-based approaches, mainly because it allows local competition of small contractors (see Additional Annex 16 for the details). These lessons in Togo are consistent with international knowledge21. During the project preparation, a census of firms in capacity to build classrooms (with records in school building or pre-qualifications status from a donor/NGO) was conducted. The census showed that there are 379 firms either with records in school buildings or pre-qualified for building, and they are geographically well distributed (see Annex 4). 28. The new school building strategy draws on lessons learned from community-based experiences in the country. It benefits from a wealth of existing documentation and experience of the past EU-financed Programme Pluriannuel de Micro-Réalisations (PPMR) and the World Bank-financed Projet d’Urgence de Réduction de la Pauvreté (PURP) as well as from the current World Bank-financed Community-Driven Development (CDD) project (Projet de Développement Communautaire -PDC). The MEPSA also draws on lessons of the similar experience of the Benin Ministry of Education, which is implementing a similar strategy with the support of the Benin CDD project. The implementation will place importance on training of COGEP and on the monitoring and evaluation (M&E) system to timely inform the Ministry of eventual difficulties for rapid corrections. A census of the different training received by the communities through the different projects has been prepared. It is estimated a total of 1,441 villages has received at least one type of training during the last 5 years. C. IMPLEMENTATION 29. The EFA-FTI operation (embedded in the ESP) will be implemented by the MEPSA and in particular by its PCU, as is currently the case in the implementation of the AFD-funded EPTT project which supports the ESP as well. The PCU will be re-enforced by this operation to enhance its capacity to implement two projects. Due to the high volume of activities and for accountability purpose, it has been agreed with the MEPSA and AFD that each project would require a specific coordinator that will work closely together. The key elements of the implementation arrangements are described below. The implementation arrangements are detailed in the Project Operations Manual. 21 See S.Theunynck, School Construction Strategies for Universal Primary Education in Africa. Should Communities Be Empowered to Build Their schools?, Africa Human Development Series, World Bank, 2009 8 C.1. Partnership arrangements 30. After more than a decade with limited external assistance, Togo has made significant progress on political and economic reforms, and has regularized its relations with key development partners, including the World Bank, the IMF, the AfDB, and the European Union. The main donor partners intervening specifically in the education sector are AFD (coordinating agency), UNICEF, DANIDA, IsDB, the World Bank and some international NGOs such as Plan Togo and Aide et Action. 31. The ESP has been prepared by Government in close collaboration with the LEDG. All the interventions planned by donors are included in the ESP (see details of the donor financing for the next three years in Annex 5). The ESP was appraised using the EFA-FTI appraisal guidelines in December 2009, and was endorsed by the LEDG in March 2010. 32. The objective of increased aid coordination in the education sector is addressed through a Statement of Intent (Cadre Partenarial) between the Government and the LEDG that was signed in March 2010. The Statement of Intent describes the mutual roles and responsibilities of signatory partners, including the monitoring and evaluation of the ESP advancement through a common set of indicators. The Statement of Intent includes the organization of annual joint reviews of the ESP (see also section C.3). 33. Although the World Bank has been chosen by the Local Education Group (including the Government) to be the supervising entity for this EFA-FTI operation, it is important to underscore that this Operation was prepared by the MEPSA in partnership with the LEDG, led by AFD and with also a significant assistance from UNICEF. The World Bank and the MEPSA will report to the LEDG on the progress made on the implementation of the Project and on the achievement of its objectives. 34. The EFA-FTI project will (i) share the PCU of the MEPSA with the AFD-funded EPTT project which is already following World Bank procurement and financial management rules, and (ii) build the MEPSA departments’ capacity -through learning by doing process- in order to progressively transfer the responsibilities from the PCU to the MEPSA Departments. C.2. Institutional and Implementation Arrangements 35. Project implementation arrangement. The project implementation unit established in MEPSA for the AFD-financed EPTT project already follows largely World Bank finance management and procurement procedures. The unit will be strengthened to become a Projects Coordination Unit (PCU). Under the supervision of the MEPSA General Secretary, the PCU will (i) implement all the activities of the two projects (EPTT and EFA-FTI), (ii) liaise with the ESP coordination structures and the MEPSA departments and (iii) transfer skills to MEPSA departments during the projects implementation. The PCU will report to the MEPSA General Secretary. 36. In addition to the EPTT coordinator and the EFA-FTI coordinator, the PCU will include two sub-units: (i) an Accounting and Procurement Unit (Unité Comptable et de Gestion - UCG) which will be responsible of the fiduciary and procurement aspects of the projects and (ii) a Construction Technical Unit (CTC) which will be responsible for the school building component regarding technical aspects, and capacity-building of communities. 9 37. The UCG will comprise the following core group of experts: two procurement specialists (one already recruited by the EPTT project), a financial comptroller (already recruited by the EPTT project) and two accountants (to be recruited with qualifications and experience satisfactory to the World Bank). 38. The CTC is advised by the Construction Strategic Council (already in place) which includes MEPSA and the donors and NGOs involved in school building activities in Togo. The CTC will comprise the following core group of experts: a Construction Program Manager, a civil works specialist which will be responsible for the technical aspects of the construction program, a M&E specialist which will coordinate the production and use of the flow of data needed to monitor the project, a Communities Training Coordinator to coordinate the capacity- building program for communities and five decentralized Grassroots Management Training (GMT) experts which will be regionally distributed to support Regional Directorates (DRE) and coordinate supervision and capacity-building regional sub-programs. The Construction Program Manager will coordinate with the Procurement Officer as well as with the Financial Comptroller to ensure all activities are conducted according to procedures acceptable to the World Bank. 39. Given the current lack of capacity of the MEPSA, the PCU will have the responsibility to strengthen the capacity of the key MEPSA departments (in particular the Direction des affaires financières –DAF, and the Direction de la Planification de l’Education et de l’Evaluation – DPEE) through specific training and learning-by-doing. The UCG will gradually transfer its responsibilities to the DAF and the CTC will gradually transfer its responsibilities to the DPEE. A time-bound capacity building and skills-transfer plan has been prepared and will be monitored during project implementation. 40. Implementation at the community level. The project is designed to strengthen grassroots communities’ responsibilities in order to improve accountability and efficiency in service delivery22. In particular, the communities, through school-based management committees (COGEP) and after being trained, will be in charge of the management of the classroom buildings and of the school grants sub-component. The COGEP include parents, village representatives and teachers of the school. In rural areas, school building procurement will be carried out according to simplified procedures that are already used in the World Bank- financed Community Development Project. The COGEP will be supervised by the Regional Directorates (DRE) with the support of the decentralized PCU staff. Each specific COGEP will receive the required basic training on the Simplified Guidelines for Procurement and Disbursement for Community-Based Investments in case it has not yet received such training through a previous project. The procedures are detailed in the Operations Manual and in the Financial Management Manual. 41. Procurement and financial management have been assessed by the World Bank and the recommendations made on arrangements will be monitored (see Annexes 7 and 8). 42. The organization chart below indicates the functional connections that exist between the different units and actors involved. 22 See World Development Report 2004, Making Services Work for Poor People; World Bank, September 2003 10 Figure 1: Organization chart of the Project ESP High Level Steering Commitee (CSE) ESP Coordinating Committee (CCP) with a Construction Strategic Permanent Technical Secretariat (STP) Council (CSC, includes MEPSA General Secretary donors) DPEE Projects Coordination Unit (PCU) DAF Accounting and Construction DPEE Procurement Technical Unit Unit (UCG) (CTC) Budget and Statistics and Accounting Two Prog.. Manager School Procurement Mapping officers Monitoring and Evaluation Material and Expert Equipment and Equipment School Financial Civil Works Buildings Analyst + Expert Two accountants IT Grassroot Management Evaluation and Training Expert Surveys Regional Directorates (DRE) Director PCU Decentralized Staff Support and Capacity Building Reg. Coordinators School Building Division Decision and Supervision Contract Agreement Inspectorates Inspector Private Sector Communities Trainers/Moderators Schools School Committee Communautés Construction Use of school grants Contractor Village Community Textbooks reception Association 11 43. The supervision of the project will be facilitated by the recruitment of an Extended Term Consultant based in Lomé who will support project implementation and supervision under the management of the World Bank Task Team Leader and in close collaboration with the Country Manager. C.3 Monitoring and evaluation of outcomes/results 44. A joint Government/Donors monitoring and evaluation framework has been established for the ESP with key performance indicators selected. The Ministries in charge of education will be responsible for collecting data on those indicators, which includes FTI indicative framework indicators and project-specific indicators. 45. The Results Framework for the EFA-FTI Operation is based on the Logical Diagnostic Tool recently developed by the World Bank Africa Region 23. It consists in using typical results chains that presents the input/output/outcome/impact causal logic. Objectives are organized into a hierarchy and are linked to performance indicators (see below and Annex 3). 46. The DPEE will take the lead on monitoring and evaluation activities for the ESP and the EFA-FTI project, supported by the M&E specialists from both the PCU and the STP. It will draw on successes of the 2008/09 and 2009/10 school censuses where the Ministry was able to collect all the key school data in a very short period of time. 47. The project will finance capacity building activities for the DPEE such as the setting up of a student learning assessment system and other activities (see description of the component 3 in Annex 4), in complement to the activities supported by the EPTT project (capacity building in statistics, in sector policy planning and monitoring). 48. The Government will organize annual joint reviews to assess progress made in implementing the ESP and the projects supporting it (this project included). The Government and donors supporting ESP will review the previous year’s activities and budget execution and discuss the draft budgeted action plan, procurement plan, and budget program for the coming year. Key documents will include: (i) the annual performance report (concerning physical and financial execution) for school year N-1/N; (ii) draft financial and technical audit reports for year N-1/N; (iii) an analysis of indicators and performance for year N-1/N (commenting on deviations from targets and their reasons); (iv) the draft action plan and the draft procurement plan (to be annexed to the action plan) for year N+1, for validation; and (v) the updated Sector MTEF for the period N+1-N+3. 49. In addition to the joint review, another World Bank supervision mission will be organized annually, six months after the joint review, in order to monitor specifically the EFA-FTI Operation. 23 N.O. Mugwagwa, V. Gyllerup, Powerpoint Results in Bank Projects. Africa Region Experience with Results Framework 12 Figure 2: Results Framework for the project 1.1. Improved availability of Build classrooms in urban (with 1. Increased access and AGETUR executing agency) and rural retention in primary satisfactory built schools in under equipped areas (Ind.1.1.III) (with communities) areas according to education (Component agreed procedures (Ind.1.1.I, 1.1.II) 1) (Ind.1.I) Provide public/EDIL primary schools with Mathematics and Reading textbooks (Ind.2.1.III) 2.1. Improved availability of textbooks (Ind.2.1.I, Ind.2.1.II) Develop new curricula and new textbooks with Gov. owned copyright Increased (Ind.2.1.IV) coverage and retention of primary Disclose in schools the individual education, 2.2. Increased resources and school grant amount and calculation improvement 2. Improved responsibilities for school method availability of committees and improved s in quality of teaching, teaching material and accountability (Ind.2.2.I) Provide school grants to school strengthened number of trained committees institutional teachers (Component and 2) 2.3. The regional teacher training community centers are running (Ind. 2.3.I) Build and equip regional teacher capacity training institutes and Regionalize (PDO) training and recruitment of teachers 3.2c. Improved consistency in (Ind. 2.3.I) teacher deployment (Ind. 3.2.II) Build capacity of MEPSA (central and decentralized administration) and 3.1. Improved efficiency and communities for school building management of school building management program (Ind.3.1.I, Ind.3.1.II) Build capacity of MEPSA according to 3.2a. Improved capacity of the the time-bound capacity-building and MEPSA for ESP implementation skills transfer implementation plan (Ind.3.I) (Ind 3.I) 3. Strengthened institutions and 3.2b. Learning assessment system up and running (Ind 3.2.I) Support the set-up of a monitoring communities system able to routinely assess student (Component 3) (Ind learning 3.I) 3.2d. ECD and Literacy implementation plans approved Support the preparation of ECD and and implementation started (Ind. Literacy implementation plans 3.2.III, Ind.3.2.IV) 3.2e. School health, nutrition and HIV/AIDS implementation plan Support the preparation of school approved and implementation health, nutrition and HIV/AIDS started (Ind.3.2.V) implementation plan 13 C.4 Sustainability 50. The sustainability of this operation is enhanced by its strong foundation in the Government’s ESP (2010-2020) and Sector MTEF (2010-2012). This ensures strong Government ownership of the project, with the vision, goals and implementation arrangements articulated by the Government’s senior management responsible for the sector. It is important however, not to underplay the challenge: although macro-economic performance has improved over the past couple of years, the system still remains relatively fragile. 51. The financing gap has been estimated thanks to a process of policy dialogue on the key sector trade-offs and with the use of a sector-wide financial simulation model. The approach used was in line with what is good practice for preparing a sector MTEF, based on three pillars24: (i) a bottom-up multi-year cost estimates (based on needs), (ii) a top-down multi-year projections of resources envelope targets (what is affordable and implementable according to capacities) and (iii) an institutional (political-administrative) decision–making process to integrate the above two pillars by making the necessary trade-offs. 52. The financing gap of the 2010-2012 sector-wide MTEF is US$182 million but it accounts only for a gap regarding investment costs; there is no gap on recurrent costs (with the exception of the school grant to be funded under the EFA-FTI Operation). The EFA-FTI CF application is projected to comprise about 6.8 percent of the overall program costs and would close 25 percent of the financing gap. It is expected that part of the budget support from European Union (US$ 59 million for 2010-2012) will also help to reduce the remaining gap on investment as well as expected resources from World Food Program for the school feeding program. UNICEF plays a leading role in advocacy for additional financing. There are also good prospects from AFD and Germany for financing the TEVET sub-sector. In case these financings do not materialize, the only effect would be to reduce investment activities, without affecting recurrent activities. 53. There is no sustainability issue regarding salaries of the necessary new teachers as evidenced by the fact the Government planned that 2,900 new teachers will be annually hired in the period 2010-2012 (see table below). Table 2: Number of teachers’ recruitment, past and planned Actual Planned Level of schooling 2005 2006 2007 2008 2009 2010 2011 2012 Pre-school and Primary 1039 915 0 1655 0 2000 2000 2000 Lower Secondary 509 308 0 439 0 750 750 750 Upper Secondary 188 188 0 338 0 150 150 150 Total 1736 1411 0 2432 0 2900 2900 2900 Source: MEPSA Department of Human Resources 54. Fiscal sustainability. The fiscal implications for sustainability of the project are very modest. In line with Government policy, most of the project expenditure is on investment items and particularly civil works. The project does not finance public service salary and the only 24 See Medium Term Expenditure Frameworks: From Concept to Practice. Preliminary Lessons from Africa, February 2002, World Bank, Africa Region Working Paper Series No. 28 14 recurrent costs of the project are the school grants that account for only $ US1.8 million per year. It is expected this school grant will merge with the Government grant for compensating school fee abolition on a mid-term perspective. There are on-going discussions with the Government in order to increase the school subsidies (for compensating the school fee abolition) and then take over from the additional financing of the EFA-FTI CF for providing more resources at the school level. 55. Institutional sustainability: The ability of the sector to fulfill its ambitious objectives is directly related to the stability of the senior management team and core directors in the system. The World Bank team is encouraged by (i) the fact the current management team has been maintained for the past three years, including most of the central and regional directors25 and (ii) the recent recruitment by the Ministry of Education of professional staff recently graduated, at medium management positions in the key central departments. C.5 Risks Table 3: Description and rating of risks and mitigation measures Risk factors Description of risk Risk Mitigation measures Residual rating risk rating Country and/or Sub-National Level Risks Macroeconomic Macroeconomic M The IMF and the World Bank will M Framework management: continue to closely monitor the Main risk could stem from Government’s macroeconomic an inability of the performance, including providing Government to maintain a ongoing advisory assistance to the stable medium-term financial sector reform program through a framework or from the Financial Sector and Governance project vulnerability of the Togolese recently approved, and supporting a economy to climatic or coordinated regional response to the food commodity price shocks, and oil price increases. such as the recent sharp The World Bank support to address rising increases in international food prices in Togo includes the food and oil prices. These Community Development Project, shocks could result in, approved in June 2008 which contains among others, a risk of some targeted measures to support food falling back into arrears or production. This is supplemented by exacerbating the already additional financing under the Global precarious financial situation Food Response Program (GFRP). A of several banks, with a further additional financing for the possible adverse spillover to Community Development Project is being the region. prepared to continue supporting the School feeding component of the ongoing project and introduce a new component to support temporary employment, create income opportunities, and support the rehabilitation of environmentally fragile areas. 25 An anecdote that is representative of the current professional spirit in the MEPSA is the fact that the Head of the Statistics Unit obtained a grant to study abroad during one year but finally decided to go for the distance learning program in order to stay in service at MEPSA in a period of time when his skills and experience were key for preparation of the ESP and related projects. 15 Country On May 30, the World M The IMF, the World Bank, the AFDB and M Engagement with Bank Board discussed an Paris Club creditors have coordinated World Bank Interim Strategy Note (ISN) closely with the Government to ensure a covering the period FY08- coordinated arrears clearance process and 10. As part of this Interim to avoid a subsequent relapse into arrears. Strategy, an Economic These arrangements, together with the Recovery and Governance prudently designed macroeconomic Grant (ERGG) was framework under the PRGF would approved which was used mitigate the risk of Togo falling back into for the clearance of Togo’s arrears before reaching the HIPC arrears to IDA and budgeted completion point (projected for end fiscal needs in the period 2010). immediately after arrears clearance. This has led to the lifting of the suspension of World Bank disbursements for Togo after more than six years of suspension. Normalization of relations with the World Bank has (i) set the stage for provision of regular IDA resources; (ii) facilitated Togo’s efforts to reestablish relations with the rest of the international community, including both other creditors and donor agencies; and (iii) paved the way for Togo toward debt relief under the HIPC Initiative. Governance/ Public Sector management H The Economic Recovery and Governance S Systemic and institutions: Grant and subsequent annual Corruption With weak institutional development policy operations will capacity and remaining support critical governance reforms in governance and public finance management (PFM) and transparency problems, key public enterprises. project and fiduciary risks Also, a LICUS grant is financing an will remain significant. evaluation of the procurement system and preparation of a new procurement code Transparency, consistent with the West African Accountability and Economic and Monetary Union corruption in public sector (WAEMU) Directive, and providing technical assistance to improve economic governance of the state-owned enterprises operating in the cotton and phosphate sectors. A Public Expenditure Management and Financial Accountability Review (PEMFAR) update during CY2008, jointly with other donors, has provided input to strengthening the PFM reform agenda. The CDD approach pursued through the LICUS Trust Fund grant and through the new Community Development Project 16 will build capacity at the community level. Other donors, including the European Union and the AfDB, are also providing assistance to strengthen institutional capacity. Other (for Despite progress in building M There is a risk that the security and M example security consensus, a resurgence of political situation deteriorate following risks, influence of non-reformers the last presidential elections (held on political/election or of other political tensions March 4, 2010). However, the political risks, country could delay or stall risk is mitigated by the strong engagement with implementation of the commitment to reform by the top political other donors, Government’s reform echelons. Close coordination with the social and program. A delay could IMF, AfDB and other donors and the environmental jeopardize the attainment of intensified dialogue will help ensure that risks at the country program objectives, dampen top priority is given by the Government to level) donor support, and cause reform in the phosphates, energy, cotton political instability. Also, and financial sectors. The first PRSP, slow progress in addressing discussed by the Boards of the the most pressing social and IMF/World Bank in December 2009, has economic problems could provided an opportunity to foster national lead to instability in volatile consensus across the Togolese society areas and adversely affect and among Government representatives security conditions, the on a medium-term reform agenda. business climate and macroeconomic management. Sector-specific Risks Institutional Following the Presidential S Use of PCU staff contracted by the M stability Elections in March 2010, Projects high-level political changes Institutional arrangements with a high- and/or reorganization in the level sector-wide committee and a four Ministries currently in coordination committee with a permanent charge of the education technical secretariat comprising sector could impede professionals from the four Ministries in progress in the charge of education sector (see Annex 6) implementation of the ESP Project activities are focused on primary and EFA-FTI operation. education whose charge is only on one Ministry. Operation-specific Risks Implementation Implementation capacity S Consideration of implementation capacity M capacity risk arises from the lack of in the objectives, grant amount, and sufficient professional staff implementation plan for the EFA-FTI and weak institutional operation, based on the capacity capacity and coordination in assessment conducted during project the wake of the 15 year preparation history of socio-political Strong focus on capacity strengthening instability and very limited activities in the projects supporting the foreign assistance. ESP (in particular the AFD-funded project, UNICEF project and the proposed EFA-FTI project), including the provision of technical assistance in key area. Contracting of the PCU staff directly by the project Design of the EFA-FTI Operation with a gradually scaled up implementation approach in mind and intensive 17 supervision Adequate training of grassroots communities (in the form of school-based management committees, COGEP), involved in the implementation of activities according to simplified procedures acceptable to the World Bank (notably regarding school construction management in rural areas) and to play an effective role in increasing accountability in the use of funds (regarding school grants) Use of the network of communities trained (and relevant documentation) in the previous CDD projects (World Bank- funded and EU-funded) for the EFA-FTI project. Procurement MEPSA has a long S Full compliance with IDA Procurement M experience in procurement Guidelines which override national but not with the World regulations. Bank’s procurement Submission to the World Bank before procedures. negotiations of an acceptable 12 months procurement plan Recruitment of an additional procurement consultant in the PCU before effectiveness and nomination of a civil servant counterpart in MEPSA in capacity to learn. Procurement training for implementation entities. Financial Weak financial management H Implementation of recommendations of S management and risk that funds will not the financial management assessment (see be used for the intended Annex 7), in particular recruitment of two purpose. additional qualified finance specialist/accountants in PCU, along with Control risks. annual external audits and implementation of a computerized accounting system. Preparation of a financial and administrative procedures manual Transparency via advertisement in the local newspapers of the list of schools receiving grants and textbooks and amount to be received. Audit and Public Expenditure Tracking Survey (in particular regarding textbooks and school grants) will be done within the project. Social and The environmental M To address potential negative impacts L Environmental screening category is B consistent with the requirements of these safeguards safeguard policies, the Government has prepared an Environmental and Social 18 Management Framework and a Resettlement Policy Framework. Environment and Safeguard World Bank colleagues will be consulted if the project objectives or components should change. Overall risk (including reputational risks) S M Risk Rating: H (High Risk), S (Substantial Risk); M (Moderate Risk), L (Low or negligible Risk) 56. In IDA’s assessment, the potential benefits of the proposed operation outweigh the residual risks and warrant EFA-FTI Catalytic Fund assistance for implementing critical activities in a coordinated fashion with other donors, while supporting risk mitigation actions to maximize the project implementation in a timely way. C.6 Effectiveness and disbursement conditions Conditions for effectiveness: a) The Recipient has adopted the Project Operations Manual; b) The Recipient has established the PCU within MEPSA; c) The Recipient has recruited for the PCU (i) a Project coordinator; and (ii) a procurement specialist; d) The Recipient has adopted an Agreed Annual Work Plan covering the period between the Effective Date and December 31, 2011 and the World Bank has issued its Annual Confirmation relating thereto, and e) Ratification and Legal Opinion (Standard condition of Effectiveness). Conditions for disbursement of all components: No withdrawal shall be made in respect of an Agreed Annual Work Plan unless the World Bank has issued its Annual Confirmation for such Agreed Annual Work Plan Conditions for disbursement of Components 1.2 (school buildings in rural areas) and 2.2: No withdrawal shall be made until the Recipient has recruited for the PCU a communities training coordinator Conditions for disbursement of Component 1.1 (school buildings in urban areas) and 2.3: No withdrawal shall be made until the Recipient has contracted the Delegated Contract Manager under terms and conditions satisfactory to the World Bank Specific dated covenants: a) The Recipient shall, no later than four months after the Effective Date, appoint external auditors; and b) The Recipient shall, no later than four months after the Effective Date, recruit for the PCU a financial management specialist and an accountant. 19 D. APPRAISAL SUMMARY D.1 Economic and financial analyses 57. There is a clear budget priority for education. The share of public recurrent budget26 allocated to education was 22.7% of domestic resources in 2009, higher than the FTI benchmark of 20% and of the African average of 20.4%. 58. During the 1995-2007 period, total expenditure for education increased (in constant 2007 prices) from CFAF 35.7 to 45.8 billion, which corresponds to a 2.1% average annual growth rate. Expenditure in education is mainly recurrent spending; in 2007 capital expenditure was only CFAF 1.7 billion while recurrent expenditure was CFAF 44.1 billion. 59. Despite a comparatively high budget allocation for education, due to the high demographic pressure, the current public investment in Togo is not sufficient to support the needs, in particular for reaching Universal Primary Completion. Togo is one of the less aided countries on the continent. During the 2004-2006, the total external aid accounted for only 3.8% of GDP, compared to an average of 10% of GDP in Africa. 60. Households are still asked to contribute a lot to sector financing even if the recent school fee abolition (started in 2008/09) goes towards reduction of that contribution for pre-primary and primary. In 2006 households were financing on average 35.6% of the cost of education (and 45% of the cost of primary education). Since then, the school fee abolition has reduced this share but the household contribution is likely to stay high, in particular because the school fee abolition did not concern the community schools (Ecole d’Inititative Locale, EDIL) of which functioning is almost entirely funded by parents. 61. Public spending distribution by level of schooling is in line with the development needs. The share for primary education (40%) is a bit lower than both the African average (44%) and the EFA-FTI reference benchmark (50%). Nevertheless, due to a share for education in the budget higher than the FTI reference (28% in Togo compared to 20% in the EFA-FTI indicative framework), primary education receives 11% of total recurrent expenditure, which is higher than what is recommended in the indicative framework (10% = 50% x 20%). Additionally, the fact that lower secondary education is more advanced in Togo than on average in Africa (Gross Enrolment Ratio of 60% in Togo versus 50% for the African average) warrants a higher share of expenditure allocated to secondary education. 62. Recurrent expenditure is not sufficiently allocated towards teaching material, at all levels of education. In primary education, 95% of recurrent expenditure is allocated to salaries. Recurrent expenditure other than teachers’ salaries is only 10% in Togo, much lower than the EFA-FTI reference benchmark (33%). It has negative effect on the availability of textbooks and other teaching material in classrooms. 63. A thorough financial analysis and financial simulation exercise was carried out in order to plan realistic ESP targets and sound policy reforms (for all levels of education) that address the key issues presented above. The policy choices aimed to ensure the sustainability of the ESP are presented in the letter of sector development policy. The Government prepared a 2010-2012 26 Debt service excluded 20 Sector MTEF in line with mid-term implementation capacity and with longer term ESP targets. The MTEF includes all financing for the sector, both from Government and from donors (see Annex 5). D.2 Technical 64. The project is designed to support the Government of Togo in implementing the first phase of the ESP, as described in the 2010-2012 MTEF of which activities are planned to be funded by both Government and donors. 65. The activities of the ESP and of the project are related to the findings from a recent sector study (Light Country Status Report prepared in 2007 -CSR) which highlighted the main strengths and weaknesses of the education system. The priority issues identified include limited and inequitable access to primary education resulting mostly from supply constraints, poor quality and low internal efficiency (high repetition and dropout rates), lack of resources allocation to school level and low institutional capacity for consistency in teachers’ deployment. 66. The design of the school building component, with a community-based approach for constructions in rural areas, was based on lessons learned from international research27 and from the experience of the recent/on-going CDD projects implemented in Togo. D.3 Fiduciary 67. Based on the quasi-absence of education World Bank projects for ten years and the assessment of weak implementation capacity, the MEPSA will therefore require technical assistance and training to enhance capacity. Procurement and financial management capacity has been assessed. Annexes 7 and 8 describe financial management and procurement risks and provide the agreed action plans to mitigate such risks. 68. Financial Management (FM). The conclusion of the FM assessment is that FM arrangements for the Project need to be improved in order to satisfy the World Bank’s minimum requirements under OP/BP10.02, after which they will be adequate to provide, with reasonable assurance, accurate and timely information on the status of the Project as required by the World Bank. The main areas of improvement are (i) the preparation of a Financial and Administrative Procedures Manual, (ii) the recruitment of one additional Financial Management Specialist and one accountant with qualifications and experience satisfactory to the World Bank, (iii) the development and implementation of an accounting software, and (iv) the recruitment of a financial external auditor with qualifications and experience satisfactory to the World Bank. The FM risk for the project is rated as High and is expected to reduce to Substantial when mitigating actions are implemented. 69. Procurement assessment. MEPSA has experience in the procurement of works, particularly for classrooms constructions. The procurement process is conducted at central level and the supervision of works is done at regional level. Nevertheless, the national procurement system and procedures are being reviewed (under the national procurement system reform), there is no standard bidding documents, and no national procurement manual acceptable to the World 27 See S.Theunynck, School Construction Strategies for Universal Primary Education in Africa. Should Communities Be Empowered to Build Their schools?, Africa Human Development Series, World Bank, 2009 21 Bank. Then, the main issues/risks regarding the procurement for project implementation are lack of: (i) procurement specialist; (ii) internal control; and (iii) appropriate record keeping. 70. The measures agreed upon to strengthen the framework of procurement within the MEPSA are: (i) recruiting an additional procurement consultant in the PCU and nominate a civil servant as a procurement officer of the project; (ii) strengthening, through specific training and learning-by-doing, the procurement capacity of procurement officers; (iii) set-up an internal control through the project financial and administrative manual; and (iv) use of World Bank Procurement Guidelines and standard bidding documents for international competitions and use other World Bank’s approved documents for national competitions. 71. Procurement Implementation Arrangements. For project implementation purposes, the Government and the World Bank agreed to use three levels of procurement implementation entities: (i) the central level with MEPSA Project Coordination Unit, (ii) the urban level with Contract Management Agency and (iii) the rural level with grassroots Communities. 72. Procurement by MEPSA: The Project Coordination Unit (PCU) through the two procurement specialists and the nominated civil servant procurement officer will be responsible for the coordination of all procurement activities. To strengthen the capacity of MEPSA, the Procurement Specialists will work together with the Procurement Officer. 73. Procurement by Contract Management Agency (CMA): The World Bank agreed with the Government to delegate the constructions of classrooms in urban areas and of regional teachers’ training centers and their supervisions to a Contract Management Agency (CMA). A contract will be signed between the MEPSA and the CMA. 74. Procurement by Grassroots Communities: The procurement activities at Community level will concern essentially the construction and equipment of classrooms. The school-based management committees (COGEP) will carry out the implementation of procurement under the supervision of DRE through the decentralized staff of the PCU. Prior to disbursement to the communities, they will receive systematically the required basic procurement and disbursement trainings. For the implementation of this CDD approach, the MEPSA will benefit from the support of the World Bank financed current CDD project (PDC) management and will use the simplified procedures and materials used by the CDD project. 75. The procurement activities will be carried-out on the basis of the Procurement Plan agreed between the Government and the World Bank for project implementation. The Procurement Plan will be updated in agreement with the World Bank at least annually. D.4 Social 76. The social issues that are of particular concern include the lack of parity in terms of access (i) between boys and girls, (ii) between urban and rural areas and (iii) across regions to the detriment of the poorest regions. While the EFA-FTI Operation will be implemented on a national scale, it will use specific criteria for school selection which aims to improve the equity of public education financing. In particular, the EFA-FTI Project will (i) target school buildings in rural areas and under-served regions, (ii) build classrooms that are gender and disability- friendly and (iii) base school grants’ amount on the schools’ context and existing resources in the school. 22 D.5 Environment and Safeguard Policies 77. The project has triggered OP 4.01 Environmental Assessment and OP 4.12 Involuntary Resettlement due to potential negative environmental and social impacts related to the construction of schools. The environmental screening category is B. To address potential negative impacts consistent with the requirements of these safeguard policies, and thanks to financial assistance from UNICEF, the Government has prepared an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) disclosed in January 2010. The ESMF and RPF lay out guidelines to mitigate the potential negative impact of construction and information process with affected populations, the planting of trees, the use of environmentally friendly construction equipment, strict enforcement of work safety measures, strong supervision of work quality, and others. Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [X] [] Natural Habitats (OP/BP 4.04) [] [X] Pest Management (OP 4.09) [] [X] Cultural Property (OPN 11.03, being revised as OP 4.11) [] [X] Involuntary Resettlement (OP/BP 4.12) [X] [] Indigenous Peoples (OD 4.20, being revised as OP 4.10) [] [X] Forests (OP/BP 4.36) [] [X] Safety of Dams (OP/BP 4.37) [] [X] Projects in Disputed Areas (OP/BP/GP 7.60)* [] [X] Projects on International Waterways (OP/BP/GP 7.50) [] [X] D.6 Policy Exceptions and Readiness 78. The project is entirely consistent with World Bank Policy and requires no exceptions from World Bank policies, and meets the regional criteria for readiness for implementation. 79. The status of projects’ conditions of effectiveness and disbursement is as follows: Planned date for completion The Recipient has adopted the Project Operations Manual 12/15/2010 The Recipient has established the PCU within MEPSA 11/15/2010 The Recipient has recruited for the PCU (i) a Project coordinator; and (ii) a procurement 01/15/2011 specialist The Recipient has adopted an Agreed Annual Work Plan covering the period between the 12/15/2010 Effective Date and December 31, 2011 and the World Bank has issued its Annual Confirmation relating thereto The Recipient has recruited for the PCU a communities training coordinator 01/15/2011 The Recipient has contracted the Delegated Contract Manager under terms and 01/15/2011 conditions satisfactory to the World Bank * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas 23 Annex 1: Country and Sector Background Togo EFA-FTI Catalytic Fund Grant 1. Located in the Gulf of Guinea between Benin and Ghana, Togo is a country with an estimated population of 7.1 million (2010 UN projections) which is growing at 2.7 percent annually and likely to double in 25 years. With a population density of 119 people per sq. km, it is much denser than the Sub-Saharan African average (35 people per sq. km). Per capita income (US$437 in 2009) is low compared to Sub-Saharan Africa (US$1,082) and Low Income Countries (US$524) averages. Togo’s growth performance has been among the weakest in Sub- Saharan Africa, with per capita income declining by an average of one percent annually since the early 1980s. As a result, poverty has increased significantly and it is estimated to affect 61.7 percent of the total population (2006), 74.3 percent of the rural population and more than 90 percent in the northernmost region (Savanes). Togo has a very poor human development index (HDI), ranking 159 out of 182 countries. Togo has not been badly affected by the global economic crisis to date, though downside risks remain. 2. Since 1990, Togo experienced a long period of socio-political crisis that ended with the parliament elections in October 2007. Encouraged by the success of those elections and the new government’s reform platform, donors reengaged with Togo after more than 15 years of very limited assistance. New Presidential elections were held in March 2010 and were well received by the observers. Togo reached the Heavily Indebted Poor Countries (HIPC) Initiative decision point in November 2008 and expects to reach Completion Point by end-2010. 3. Togo’s general education system is divided into four levels: (i) a three-year pre-school cycle designed for 3-5 year olds, (ii) a six-year primary cycle designed for 6-11 year olds, (iii) a seven-year secondary education cycle designed for 12-18 years old, consisting of a four-year junior level and a three-year senior level and (iv) a higher education system (two public universities and private institutions). There are also (i) technical and vocational education at the junior and senior secondary levels and (ii) literacy programs. 4. Due to the long-lasting socio-political crisis coupled with economic mismanagement and the withdrawal of donor support, the education sector has made little progress towards the Millennium Development Goal (MDG). The major issues facing the education sector are described below: 5. Low completion: The primary completion rate (PCR) is the same in 2009/10 as it was ten years ago (63%). Although Togo is still in the top-half of Sub-Saharan countries, reaching 100% completion rate remains a challenge. There is almost universal access to primary first grade but the education system still faces the important problem of a high level of drop-outs that hinder the completion rate. Only 61% of grade 1 new entrants complete the primary cycle (compared to 71% on average in SSA). The problem of drop-outs is due to both a lack of classrooms (11% of Togolese schools have not enough facilities for providing education to all the six grades of primary28) and to the fragility of demand for schooling. The cost of schooling for households is the main factor reducing school demand (in particular for poorest families). In 2006, due to the existence of community schools (EDIL) with teachers paid by parents and to the 28 In the regions of Kara, Savanes and Centrale, the proportions of such schools are even higher (see ESP). 24 existence of school fees, the financial contribution of households for primary schooling was 45% of the total recurrent cost. 6. Recent school fees abolition: Consistent with the emphasis on reaching the MDG, the Government abolished the pre-primary and primary school fees in 2008/09. It helped reduce the burden for households and has started to effect access to school for the poorest families29. Nevertheless, the public financial compensation (so far FCFA 2 billion annually) for counter- balancing the loss of resources for schools is far below the needs. Moreover, only a slight proportion of the financial compensation is managed by the school itself. 7. Disparities: In 2006, PCR was 61% for girls and was 76% for boys. Disparities between rural and urban areas and between levels of family income were even larger. PCR in rural areas was only 60% (compared to 84% in urban areas) and PCR for the 40% poorest families was only 52% (compared to 88% for the 20% richest). 8. Poor quality: 28% (equal to African average) of pupils leaving school after completing the primary cycle do not stay sustainably literate at adult age. It is associated with: (i) the significant shortage of teaching material, in particular textbooks (one mathematics textbook per 2.1 pupils, and one reading textbook per 2.0 pupils), (ii) discontinued teacher training delivery in 2002 due to budget constraints that prevented the hiring of new teachers (36% of teachers are non-trained parent-teachers) and (iii) the lack of resources for operating budget at the school level (teachers’ and staff’s payroll costs account for 95% of total recurrent expenditure in primary education, one of the highest percentages in Africa). 9. Weak management and institutional capacity: Procurement and financial management capacities in the Ministries of Education are largely improvable, in particular due to the quasi- absence of externally-financed projects during the last 15 years. As another key issue regarding need for capacity improvement, Togo is one of the lowest achievers in terms of consistency in teacher deployment. 10. Government Strategy. Following an exhaustive process of technical work and consultation with stakeholders, the Government prepared in 2008/09 a letter of sector development policy, a 2010-2020 Education Sector Plan (ESP) and a 2010-2012 Sector Medium Term Expenditure Framework (MTEF) for the three first years of ESP implementation. The letter of development policy was adopted by the Council of Ministers in June 2009 and the ESP was approved by the Head of State in March 2010. The ESP is an exhaustive, sector-wide plan, with a wide range of ambitious –but credible- targets and policies on all sub-sectors. The priority objective is to achieve universal quality primary education by 2020. It proposes a balanced development of the education and training system as a whole with emphasis on improving quality and external efficiency of post-basic education for contributing better to economic growth. 29 The enrolment in Pre-school and in Grade 1 has increased by respectively 54% and 27% between 2007/08 and 2008/09. Access rate to Grade 1 jumped from 107% in 2007 to 129% in 2009. 25 Annex 2: Major Related Projects Financed by the World Bank and/or other Agencies Togo EFA-FTI Catalytic Fund Grant 1. Since 1980, World Bank lending to the education sector in Togo consisted of 4 IDA credits totaling $36.9 million. The last project in the education sector was the Education Rehabilitation Project, which closed in June 30, 2001. The objective of the project was to reverse the rapid deterioration in the education sector in Togo following several years of social and political unrest and a decade of declining enrolment and quality. The Table A2.1 below illustrates the issues and results of the two most recent World Bank education projects in Togo. Table A2.1: Issues and results of the most recent World Bank-financed Projects in Education Latest Supervision Rating Implementation Development Project Sector Issues Progress (IP) Objective (DO) Technical Education and Counterpart funding; Change of the Project Vocational Training – Coordinator; Unavailability of the training Unsatisfactory Unsatisfactory P002872 (1991-1998) tax. Financial management issues; Risen Education Rehabilitation – number of auxiliary teachers; Procurement Satisfactory Satisfactory P002889 (1996-2001) bottlenecks causing delay in Project implementation; Weak overall management 2. Several donors are supporting the education sector in Togo. The main donors include Islamic Development Bank, PLAN International TOGO, DANIDA, AFD, IDA and UNICEF (see Table A2.2 below and Table A5.1 in Annex 5). Table A2.2: Summary of Donor main Contributions to education sector Development Partners Area of Support Amount Duration Primary (School construction, US$4 million 2010-2012 IsDB Textbooks, furniture) PLAN TOGO Pre-primary, primary, Literacy US$5 million 2010-2012 Primary & Literacy (School US$430,354 2010 DANIDA constr., well drilling) Primary (Technical Assistance, US$14 million 2010-2012 AFD Teacher Training, local development) Primary (capacity building at local US$303,426 2010-2012 AFD/AeA level) Primary (School construction, US$5 million 2010-2011 UNICEF Capacity Building, Textbooks) Primary (school construction, US$2 million 2010-2012 PDC IDA school feedings) European Union Global Budget Support US$33.2 million 2009-2011 Still in research 2010-2011 WFP School Canteens for funding 26 Annex 3: Results Framework and Monitoring Togo EFA-FTI Catalytic Fund Grant 1. The Togo Education Sector Plan 2010-2020 identifies four main objectives for the sector: (i) Achieving universal primary completion by 2020, (ii) Expanding coverage of preschool, including the development of community experience to the benefit of rural people, particularly the most disadvantage, (iii) Increasing access and completion of lower secondary education especially in rural areas and (iv) Developing upper secondary education, technical and vocational training and higher education in line with the demands of the Togolese economy. 2. The current operation is embedded in the Education Sector Plan and aims to support the implementation of its first phase (2010-2013), focusing on the first main ESP objective. The Project Development Objective (PDO) is to increase coverage of and retention in basic education, support improvements in the quality of teaching and strengthen institutional and community capacity in implementation and management. 3. The Results Framework below is based on Logical Diagnostic Tool recently developed by the World Bank Africa Region30. It consists in using typical results chains that presents the input/output/outcome/impact causal logic. Objectives are hierarchized and linked to performance indicators. 4. Indicators are named after the component and sub-component they are referring to. For instance, the indicators for monitoring the sub-component 2.1 (Textbooks) are numbered from “Ind. 2.1.I� to “Ind. 2.1.IV�. 5. The Gender Parity Index in primary education (FTI and IDA Core Indicator)31 is not included in the project’s results and monitoring framework because there will not be direct impact of the project on gender. Nevertheless, the indicator will also be monitored as one of the key ESP indicator. The ESP goal regarding that indicator is an increase from 0.84 in 2009 to 0.90 in 2012. Although, indirect impacts from the Project are expected as a result of building new classrooms in locations where enrolment ratios, and consequently, gender parity indices are the lowest. There is also international evidence that building schools with separated latrines (which is the case of this Operation) has a significant impact on girls’ attendance. 30 N.O. Mugwagwa, V. Gyllerup, Powerpoint Results in Bank Projects. Africa Region Experience with Results Framework 31 The Primary Gender Parity Index is defined as the ratio of the female-to-male values of the gross enrolment rate in primary education 27 1.1. Improved availability of Build classrooms in urban (with 1. Increased access and AGETUR executing agency) and rural retention in primary satisfactory built schools in under equipped areas (Ind.1.1.III) (with communities) areas according to education (Component agreed procedures (Ind.1.1.I, 1.1.II) 1) (Ind.1.I) Provide public/EDIL primary schools with Mathematics and Reading textbooks (Ind.2.1.III) 2.1. Improved availability of textbooks (Ind.2.1.I, Ind.2.1.II) Increased Develop new curricula and new coverage textbooks with Gov. owned copyright and (Ind.2.1.IV) retention of primary Disclose in schools the individual education, 2.2. Increased resources and school grant amount and calculation improvemen 2. Improved responsibilities for school method ts in quality availability of committees and improved of teaching, teaching material and accountability (Ind.2.2.I) Provide school grants to school strengthened of trained teachers committees institutional (Component 2) and 2.3. The regional teacher training community centers are running (Ind. 2.3.I) Build and equip regional teacher capacity training institutes and Regionalize (PDO) training and recruitment of teachers 3.2c. Improved consistency in (Ind. 2.3.I) teacher deployment (Ind. 3.2.II) Build capacity of MEPSA (central and decentralized administration) and 3.1. Improved efficiency and communities for school building management of school building management program (Ind.3.1.I, Ind.3.1.II) Build capacity of MEPSA according to 3.2a. Improved capacity of the the time-bound capacity-building and MEPSA for ESP implementation skills transfer implementation plan (Ind.3.I) (Ind 3.I) 3. Strengthened institutions and 3.2b. Learning assessment system up and running (Ind 3.2.I) Support the set-up of a monitoring communities system able to routinely assess student (Component 3) (Ind learning 3.I) 3.2d. ECD and Literacy implementation plans approved Support the preparation of ECD and and implementation started (Ind. Literacy implementation plans 3.2.III, Ind.3.2.IV) 3.2e. School health, nutrition and HIV/AIDS implementation plan Support the preparation of school approved and implementation health, nutrition and HIV/AIDS started (Ind.3.2.V) implementation plan 28 6. Presented as the classical way, the results monitoring framework for the operation is the following: PDO Key Performance Indicators Use of Information The objectives of the Project are (i) to increase coverage of and retention in basic education, (ii) support improvements in the quality of teaching, and (iii) strengthen institutional and community capacity in implementation and management of the Project. 1-Primary completion rate Improved coverage and retention in 2-Direct project beneficiaries (number) – of which basic education female (%) (Students enrolled in schools constructed/extended) Monitor the overall progress Increased availability of inputs for on the achievement of the Ratio textbooks: students in primary quality project's objectives Time-bound capacity building and skills’ transfer Strengthened institutional and 32 (from PCU) plan approved and at least 75 percent of communities’ capacity for activities for each year are successfully implemented, implementation and management as evaluated by the joint donor supervision mission. Intermediate Outcomes Intermediate Outcomes and Output Indicators Use of Information Component 1: School Building Additional classrooms built or rehabilitated at the Improved availability of satisfactory Monitor the progress on the primary level resulting from project intervention built schools achievement of the (number) component 1 objectives, in % of resources managed by CMA and communities particular regarding the according to agreed procedures potentiality of scaling-up the school building program School building program overall satisfaction of actors and beneficiaries Component 2: Quality Actual number of textbooks purchased and delivered to 2.1 Textbooks primary school (% compared to planned number) Monitor the progress on the Improved availability of textbooks New Mathematics and Reading textbooks with achievement of the Government- owned copyright completed component 2 objectives, in 2.2 School grants particular on the capacity of Increased resources and the Ministry to deliver Number of schools that received the grants compared responsibilities for school effectively the inputs to the planned number committees and improved necessary for improving accountability quality 2.3 Teacher training institutes The three regional teacher training institutes are Increased number of teacher training running institutes Component 3: Institutional strengthening Monitor the progress on the Number of communities having GMT training achievement of the 3.1 Capacity-building for, and component 3 objectives, in management of the school building particular on the effectiveness 32 The capacity building plan was prepared using the “EFA-FTI Guidelines for Capacity Building Assessment� and other references. 29 of the MEPSA capacity Number of financing agreements signed between strengthening and of the skills inspectorates and communities transfers from PCU staff to Improved efficiency and MEPSA staff in headquarters management of school building and regional offices and to program communities. 3.2 Capacity-building of the MEPSA for ESP implementation System for primary student learning assessment is up Improved assessment of student and running (0-4 scale, see footnote below for the learning details) Increased consistency in teacher Primary school teacher's deployment consistency index deployment Improved quality of ECD and Preschool and literacy implementation plans prepared Literacy and approved Improved school health, nutrition School health, nutrition and HIV/Aids implementation and HIV/AID implementation plan plan prepared and approved Target value Data collection and reporting Baseline Frequency and Data Collection Responsibility of Project Outcome Indicators 2011 2012 2013 2009 Reports Instruments Data collection Primary completion rate (%) (1.I) 63 68 71 74 Direct project beneficiaries (number) – of Annual, Education which female (%) (Students enrolled in 0 0 25 000 75 000 Statistical schools constructed/extended, cumulative) yearbook EMIS MEPSA/DPEE Ratio Mathematics textbooks: students in Annual, Education EMIS MEPSA/DPEE 1:2.1 1:2.1 1:1.7 1:1.5 Statistical primary (2.1.I) Ratio Reading textbooks: students in primary yearbook 1:2.0 1:2.0 1:1.7 1:1.4 (2.1.II) Annual, Capacity- Time-bound capacity-building plan: % of Plan External 75% 75% Building plan PCU/DRH activities completed(3.I) Approved evaluation progress report Intermediates Outcome/Output Indicators Additional classrooms resulting from project 80% of 80% of intervention, % compared to planned numbers 80% of 163 285 367 (1.1.I) % of resources manage by CMA and Annual, Project EMIS and communities according to agreed procedures PCU/ DPEE - 80% 80% 80% Progress Report surveys (1.1.II) Evaluation School building program overall satisfaction - Instrument 70% 70% of actors and beneficiaries (1.1.III) approved Actual number of textbooks purchased and 85% of 1.6 Annual, Project Technical audit delivered to primary school, % compared to - - PCU/DEPP - million Progress Report and survey planned number (2.1.III) 30 Completion of new textbooks in Mathematics Draft Final and Reading (2.1.IV) Actual number of schools with grant delivered Annual, Project Technical audit PCU/DPEE/DA - 75% 75% 75% compared to the planned number (2.2.I) Progress Report and survey F Number of regional teacher training institutes Annual, Project 0 0 0 3 Technical audit PCU/DPEE built and equipped (2.3.I) Progress Report Number of financing agreements signed Annual, Project Technical audit between inspectorates and communities - 80% 80% 80% PCU/DAF Progress Report and survey compared to planned number (3.1.I) Number of communities having GMT training Annual, Project Technical audit - 80% 80% 80% PCU/DPEE compared to planned number (3.1.II) Progress Report and survey Primary school teachers' deployment consistency index (R2 of the number of Annual, Education teachers and of students, calculated on the 0.55 0.57 0.58 0.60 Statistical EMIS MEPSA/DPEE 33 basis of all public/EDIL primary schools) yearbook (3.2.II) System for student learning assessment (0-4 34 0 1 2 3 scale ) (3.2.I) Completion of ECD implementation plan Draft Final Annual, Project Joint sector (3.2.III) PCU/DPEE Imple Progress Report reviews Completion of literacy implementation plan mentati Draft Final (3.2.IV) on Completion of a credible school health, started nutrition and HIV/Aids implementation plan - Draft Final (3.2.V) Arrangements for Results Monitoring 7. Institutional arrangements. The guiding principle of the project monitoring, evaluation and review processes is to strengthen and use the established systems of the Government. The DPEE will take the lead on monitoring and evaluation activities for the ESP and the EFA-FTI project, supported by the monitoring and evaluation specialists from both the PCU and the STP. 8. Data collection. MEPSA will be responsible for collecting data. The majority of the outcome and intermediate outcome level indicators have been selected from the agreed ESP indicators. Most of the indicators are available each year in the EMIS. 33 Conjointly, another indicator, capturing the same outcome but whose understanding is more widely shared, will be monitored: the difference between the smallest Inspectorate PTR and the biggest Inspectorate PTR. This difference is 55 in 2009 and an indicator for satisfactory implementation will be 50 in 2013 34 Following the Guidance Note on Education Core Indicators for IDA Countries (World Bank, July 22, 2009), this indicator is measured on a scale from 0 to 4, using the following set of criteria: Criteria STAGE 1 Official purpose of the assessment is to measure overall student progress toward agreed system learning goals YES NO on either one NO Assessment is given to a representative sample or census of the target grades or age levels YES of the two criteria NO Indicator Value 1 0 0 STAGE 2 Data are analyzed and results are reported to education policymakers and/or the public NO YES on any YES on any YES Results are reported for at least one of the following student subgroups: gender, urban/rural, geographic region NO one of the two of the YES The assessment exercise is repeated at least once every 5 years for the same subject area(s) and grade(s) NO three criteria three criteria YES Value 1 2 3 4 31 9. A consolidated performance report covering the period of the previous school year will be prepared each year. This report will focus on the extent to which objectives and outcomes have been achieved as opposed to monitoring progress on individual activities and accounting for inputs. The report will include assessment of progress towards meeting indicators and targets, and will include lessons learned and recommendations as a basis for discussions during the Government/Donors annual joint reviews. An important aspect of the reviews will be to assess progress against the ESP indicators which includes FTI indicative framework indicators and Project indicators. Specifically, it will be important to assess how the EFA-FTI project targets are reached, using the logical diagnostic tool in particular to find out what are the reasons of a potential non achievement of an outcome indicator. 10. In addition to the annual reports, PCU will be required to submit the project financial reports to World Bank supervision mission in order to monitor the EFA-FTI project. These reports will outline financial disbursements and commitments. 11. The Government will also carry out thematic studies in order to inform potential necessary revisions of the activities. These may be presented and discussed during the annual joint reviews. The pre-identified studies include: (i) Public Expenditure Tracking Survey on textbooks and on school grants, (ii) Student learning survey, (iii) Evaluation of the reasons of teachers’ deployment inconsistency, (iv) Evaluation of the school building program and (v) Evaluation of the skills transfers from PCU to MEPSA. 12. A study on learning achievement (PASEC survey) will be conducted in 2009/10 and will serve as baseline for monitoring quality of primary education 13. Capacity Development. In addition to the EPTT project that builds MEPSA capacity in statistics, economics and teacher training, the EFA-FTI project will support specific training for DPEE and DAF, in particular regarding procurement and financial management. Learning-by- doing mechanisms will be applied as much as possible. PCU will gradually transfer its responsibilities to the main departments of MEPSA. The project will also strengthen grassroots communities’ capacities to monitor and supervise school building and school committee management. 32 Table A3.1: EFA-FTI Indicative Framework Indicators and Targets for Togo Indicative 2009 INDICATOR framework 2011 2012 2013 2020 (Baseline) benchmark a) Resource mobilization Public domestically-generated revenues as % of GDP 14 - 18 17.4 17.4 17.5 17.7 19.0 Public recurrent education expenditure as a % of domestic revenues 20 22.7 22.8 23.1 23.4 26.0 Public recurrent education expenditure as a % of GDP 2.8 – 3.6 3.9 4.0 4.1 4.2 4.9 35 Primary education share of total recurrent education expenditure (%) 50 40 (2007) 47 47 48 44 b) Student flows Primary Intake rate, total 100/100 123 115 108 100 100 Girls’ intake rate 100/100 116 111 105 100 100 Boys’ intake rate 100/100 130 120 110 100 100 Primary completion rate, total 100/100 63 68 71 74 100 Girls’ completion rate 100/100 54 58 62 66 100 Boys’ completion rate 100/100 76 79 81 83 100 % of repeaters in primary school < 10 22 19 16 13 10 c) Service delivery Pupil-teacher ratio in publicly-financed primary schools 40:1 47:1 46:1 46:1 45:1 40:1 Average annual salary of public primary school teacher 3.5 – 3.6 6.1 (2007) 5.8 5.6 5.4 5.2 Recurrent spending other than teacher salary (public school) 33 23 (2007) 28 28 28 31 Annual instructional hours 850 - 1000 Private share of enrollments % of pupils enrolled in exclusively privately- 10 27 27 27 26 25 financed primary schools Unit cost for the construction of an equipped primary classroom (000 US$) 10 21 21 21 21 21 35 Including pre-school, literacy and primary education teacher training 33 Annex 4: Detailed Project Description Togo EFA-FTI Catalytic Fund Grant Project Component 1: School Construction US$ 22.6 million Context 1. In the past, the Ministry of Education and its donor partners supporting the education sector have given limited attention to school construction, financing less than 500 classrooms per year. Over time this leads to the creation of a substantial backlog of primary education facilities. The free primary education policy adopted in 2008 further exacerbated the classroom backlog. The lack of public investment in school facilities has been largely compensated by local initiatives of communities. In the past 4 years, 73% of all classroom construction was undertaken by local communities (financially supported by donors or NGOs). 2. The new Government’s objective to achieve EFA by 2020 requires the construction of about 1,060 classrooms on average per year from now to 2020. The Ministry has not built itself any primary classrooms for the last 4 years. It has maintained only limited implementation capacity through the construction of about 70 secondary classrooms per year through a centrally- managed process. The main challenge facing the Ministry thus is to strengthen its own capacity to manage and supervise the implementation of this new program. 3. During the five past years, 100% of public primary school facilities were built by donor- managed projects; one third by education projects (UNICEF, IsDB, AFD and NGOs) with some involvement of the Ministry, and two-thirds by multi-sector CDD projects (PPMR, PURP and PDC, respectively financed by the EU and the World Bank), with no involvement from the Ministry of Education (see table A4.1). While the IsDB centrally managed its program, all other programs have been using various types of implementation delegation. The AFD-funded project outsourced contract management to an agency (AGETUR); multi-sector projects successfully empowered local communities to implement their construction programs; and UN agencies used different levels of community participation and empowerment. Table A4.1: Distribution of primary school classroom built by Institutions/Projects: Project Year Cumulative 2006-2009 2006 2007 2008 2009 Total % Avg/year Government’s building projects 0 0% 0 1 Government domestic resources 0 0 0 0 Bilateral donors building projects 233 12% 58 AFD – ANST (Delegation to Ex. Agency) 3 100 133 233 58 AFD – EPTT (Delegation to Ex. Agency and to NGO) 3 Multi-lateral donors building projects 366 18% 92 4 UNICEF 33 33 8 5 IsDB (Islamic Development Bank) 300 300 75 3 EU (Project Adyse with NGO Aide et Action) 33 33 8 NGOs building projects 165 8% 41 3 Plan Togo 54 66 27 18 165 41 Multi-sectoral projects 1,224 62% 306 2 World Bank- PURP 54 54 54 54 216 54 3 EU- PPMR 252 252 252 252 1,008 252 Total 460 538 366 624 1,988 100% 497 1 Government has only built secondary schools during 2006-2009 (Source MEPSA 2009) 2 Source PDC, 3 Source AFD, 4 Source UNICEF, 5 Source IsDB 34 4. Of the three approaches, the community approach is by far the most cost-effective for scaling up (see table A4.2). Table A4.2: Classroom Unit cost (per square meter –HO) according to different approaches Construction Type Cost saving compared to Improved MEPSA centralized Classroom Apatam approach Mode of delegation FCFA/m2 FCFA/m2 All taxes All taxes Improved Classroom included, included, Apatam HO HO Centralized 121,300 73,700 -5% 0% MEPSA Government Domestic Resources 115,600 73,700 0% IsDB 127,000 -10% Delegation to Execution Agency 90,700 22% AFD – ANST (Delegation to Ex. Agency) 90,700 22% Community-based 69,033 36,350 40% 51% UNICEF 60,000 48% EU (Project Adyse with NGO Aide et Action) N/A Plan Togo 70,200 World Bank- PURP N/A World Bank - PDC 36,350 51% EU- PPMR 76,900 Average of all approaches 93,678 55,025 19% 25% Sources: same as table 1 5. Lessons learned from these various experiences include: (i) extensive local experience and knowledge in the implementation of community-based approaches; ii) delegation of school construction management is more efficient than direct management by the central ministry; (iii) community-based approaches are by far the most cost-effective, allowing for 20% to 25% of unit cost savings per classroom compared to centrally-based approaches, mainly due to local competition of small contractors. These lessons are consistent with the regional and international experience36. 6. In addition, the 2007 Country Education Status Report (summarized in the ESP) highlights several planning weaknesses, which need to be addressed, including: (i) too long distance to-school (7% students walk more than 3 km); (ii) inequitable treatment by the Ministry of community-generated schools (Ecoles D’Initiative Locale, EDILs) compared to public schools and (iii) crowded classrooms (on average 49 students per classroom; 41% classrooms accommodate more than 50 students). 7. A survey of local firms with the capacity for school construction schools was conducted as part of the project preparation. The survey results are summarized in table A4.3 below: 36 See S.Theunynck, School Construction Strategies for Universal Primary Education in Africa. Should Communities Be Empowered to Build Their schools?, Africa Human Development Series, World Bank, 2009 35 Table A4.3: Number of firms either pre-qualified or with building records, by region Multi- Lomé Maritime Kara Savanes Centrale Plateaux TOTAL region MEPSA 40 40 37 40 40 40 237 Aide et Action 7 0 14 32 5 5 63 Plan 3 0 4 / 3 1 11 PDC 27 0 3 / 3 13 22 68 Total 77 40 58 72 51 59 22 379 Source: MEPSA/DPEE Objective 8. The objectives of the present 3-year project are to: (i) apply the new construction strategy developed by the Ministry during the preparation of the ESP with the support of all donors; and (ii) provide resources for the construction of about 815 classrooms through the new strategy; and (iii) reduce supply disparities. 9. The Ministry of Education is conscious that the target -- 815 classrooms in 3 years -- is far below the identified classroom needs (1,060 per year on average for 2010-2020). Nevertheless it deliberately decided to set a reduced quantitative objective during this first FTI- supported project to concentrate its efforts (and maximize its chances of success) on building the institutional capacity to implement a new strategy with the potential for further scale up during subsequent phases. Elements of the capacity building program of the Ministry are detailed in sub-component 3.1. 10. This limited quantitative objective is deemed realistic, because it is equivalent to 54% of total construction implemented by other donors over the last three years. 11. Achievement of the objectives of this component will be measured by:  the number of 815 new classrooms resulting from project intervention; This objective is expected to scale-up gradually: 163 classrooms in the first year; 285 in the second year and 367 in the third year. Indicator for satisfactory rating: at least 80% of planned number.  the percentage of resources effectively managed by delegated entities (Contract Management Agencies (CMAs) and communities) according to agreed upon procedures, expected to be over 80% of total;  the overall satisfaction of actors and beneficiaries, expected to be over 70%; Strategy 12. The construction activities in the context of the EFA-FTI Operation constitute the launch of the Ministry of Education new construction strategy. This strategy is two-pronged:  A new planning strategy for construction by which some planning responsibilities are delegated to the Inspectorates. The central planning office will solely be responsible for macro-planning, i.e. the distribution of resource allocation to the Inspectorates on the 36 basis of specific criteria and priorities determined by the Cabinet in consultation with the Strategic Construction Council and the DPEE (Department of Planning and Evaluation). Inspectorates will be responsible for micro-planning, i.e. determining the precise location of the construction investments in the community, on the basis of criteria defined by the central office in line with the Ministry’s priorities.  A new implementation strategy for construction by which the management of school construction will be delegated by the Ministry to: (i) a Contract Management Agency (CMA) for investment in urban schools; and (ii) concerned local communities for investment in rural schools. The Ministry will therefore concentrate its efforts on its core responsibilities which cannot be delegated: design, evaluation and update of the construction strategy, definition/update of construction norms and standards, program financing, management of the delegation and contracting system, partner’s coordination, management of the overall monitoring and evaluation system. 13. The new implementation strategy draws on lessons learned from community-based CDD experiences in the country. It will benefit from a wealth of existing documentation and experience of the past EU-financed PPMR and World Bank-financed PURP as well as the current World Bank-financed CDD project (PDC). The Ministry will also draw lessons of the similar experience of the Benin Ministry of Education, which is experiencing a similar strategy with the support of the Benin CDD project. The implementation strategy will be a learning-by- doing process which will give a strong importance on the M&E system to timely inform the Ministry of eventual difficulties for rapid corrections. Implementation arrangements and Activities 14. In addition to be in charge of the project implementation, the Projects Coordination Unit (PCU) will provide technical support to the MEPSA. It will be financed by the donors. Given the current lack of capacity of the Ministry, the PCU will be responsible for: (i) the implementation of the construction strategy; (ii) strengthening the capacity of the DPEE and the DAF to ensure that these departments will have the capacity to take over the PCU’s responsibility at the end of the present project. A capacity-transfer plan, with predetermined benchmarks has been prepared and will be monitored during the project. The PCU will report to the MEPSA General Secretary. For construction matters, the PCU (and the ESP coordinating committee – CCP) are advised by the Construction Strategic Council (CSC) which includes construction experts from all donors involved. 15. The PCU will have two main sub-units: (i) an Accounting and Procurement Cell (UCG), which will be responsible for the fiduciary aspects of the construction program and gradually transfer its responsibilities to the DAF; and (ii) a Construction Technical Unit (CTC), which will be responsible for technical aspects, including the capacity-building program for communities, and will gradually transfer its responsibilities to the DPEE. The CTC will comprise the following core group of experts: a Manager of the construction program; a Communities Training Coordinator to coordinate the capacity-building program for communities; a civil works specialist responsible for the technical aspects of construction program; an M&E specialist to 37 coordinate the production and use of the data needed for monitoring; and five37 decentralized GMT experts which will be regionally distributed to support Inspectorates and Communities in the implementation of sub-projects. 16. The Department of Education Planning and Evaluation (DPEE) will have the responsibility to: (i) implement the new planning strategy; (ii) build its own capacity to gradually take over the responsibilities of the PCU; and (iii) supervise the work of the Regional Directorates and Inspectorates. The first responsibility includes defining and updating construction norms and standards; defining criteria for the macro- and micro-planning of classroom location; executing the macro-planning exercise to determine the resource allocation for each Inspectorate. The second responsibility regarding the department’s own capacity development is detailed in component 3.1. 17. The Department of Finance (DAF) will have the responsibility to finance the program, particularly to: (i) delegate management of financial resources to a CMA for the management of urban school programs; (ii) transfer grants to rural communities (COGEP) which have signed a Financing Agreement with their respective Inspectorate for the management of their school construction subprojects; and (iii) manage all contracts for goods and services out of the above mentioned contract and financing agreements. 18. The Regional Directorates (DRE) will have the responsibility to supervise the implementation of the rural school program managed by the Inspectorates and the communities. 19. The Inspectorates will have the responsibility to: (i) execute the micro-planning exercise to allocate resources for school construction to priority communities, on the basis of criteria established by the DPEE; and ii) to sign and manage Financial Agreements (FA) with selected priority rural communities in order to delegate to them the management of the school construction subprojects. The FA includes a transfer by the DAF of a grant to cover the estimated cost of the subproject; delegation by MEPSA of contract management according to standard plans and technical specifications, simplified bidding documents, simplified procurement and financial procedures, including standard formats for reporting; and the obligation to implement social and environmental mitigations measures as requested by the ESMF and RPF. 20. Selected Communities (represented by COGEP) will have the responsibility to: (i) sign the FA with the Inspectorate and manage the corresponding grant transferred to them to implement their school construction subprojects according to the terms and conditions of their Financial Agreements with their respective Inspectorates; (ii) participate in the GMT program to enhance their capacity to manage the subprojects, as described in sub-component 3.1; and (iii) manage the grant received to cover the estimated cost, including the management of procurement activities, contracts with construction contractors, furniture suppliers and technical site supervisors, report to Inspectorates; according to simplified procedures detailed in a specific section of the Operations Manual. The responsible entities for the community-based school construction subproject will be the COGEP. The COGEP’ heads will sign the Financial 37 There are six Regional Directorates but one is fully urban and then it is not concerned by the GMT program that applies only in rural areas 38 Agreement with their respective Inspectorates. In addition, communities will elect: (i) an Implementation Technical Committee (ITC) comprising 3-4 community members with skills and interest to provide a day-to-day support to the subproject, organize procurement and supervise the contracts for works and technical control; and (ii) a Village Communication Committee, comprising 2 members to ensure transparent and widespread dissemination of all relevant information to community members. Both committees will report to the COGEP and will be gender balanced. 21. The Operations Manual and the Project Financial and Accounting Manual include the description of the roles and responsibilities of each actor, with respective implementation procedures. It will be approved by the Government and the donors before effectiveness. 22. Activities financed by this component are the provision of Grants to select eligible communities for school investment subprojects. The grants are estimated to cover the cost of eligible expenditures such as civil works, furniture and technical site supervision. Cost and Financing 23. Unit costs of classrooms and other educational facilities have been carefully established. The unit cost of a classroom is estimated at $21,000 (value 2009) on the basis of actual average unit costs obtained by the past PPMR which represented the largest school construction program (1,000 classrooms) in the country during the 2006-2009 period. The standard floor plan uses simple, classic cement technology, but is sufficiently robust. Nevertheless, the MEPSA has revised its standard plan during project preparation with a view of addressing cost-effectiveness issues, minimize unit costs as much as possible, while maintaining an expected 30-year life-span and including disability-friendly features. The Ministry decided not to use the “apatam� approach, a low-cost model by which the government provides a minimum structure, while communities are invited to complete the remainder—because it results in sub-standard buildings and is perceived as being only supplied to second class citizen. The classroom standard plans and unit costs (one for rural areas and one for urban areas, designed for possible multi-story expansion) were discussed and approved by all major participating donors through a decision of the Construction Strategic Council. Because the Ministry has already adopted the free primary education policy, it decided with the agreement of the donors that no financial contribution would be requested from participating communities. The cost of this component is estimated at US$ 22.6 million (US$4.4 million in year 1, US$7.8 million in year 2 and US$10.46 million in year 3). 39 Project Component 2: Inputs for Quality US$ 14.7 million Sub-Component 2.1: Textbooks (US$ 7.2 million) Context 24. A large number of academic studies show a very significant impact of textbooks on student learning. In Togo, pass rates at the national end of primary exam are 3.8 percentage points higher when textbooks for reading are available to all students, compared to when there is no textbooks, all other things being equal (see CSR 2007). 25. In Togo, there is a substantial lack of textbooks in classrooms for all subjects. The textbook-student ratio is only 1:2.1 for mathematics and 1:2.0 for reading. UNICEF recently distributed textbooks to students and teacher guides (with financing from their own resources and Japan, Denmark and the Netherlands). However, the distribution program only covered the first three primary grades and the quantities were far too small for closing the textbook gap (see Table A4.4). Table A4.4: Number of textbooks delivered by UNICEF project and remaining gap Reading Mathematics UNICEF project 48,000 48,000 Remaining gap 767,496 809,496 Source: UNICEF Country Office 26. Curricula are outdated and the Government does not own the copyright of the textbooks currently used in classrooms. Objective 27. This sub-component has two main objectives: i) Increasing student learning by providing all public and EDIL students and teachers in primary schools with mathematics and reading textbooks and guides ii) Developing new textbooks in mathematics and reading based on the new competency- based curricula and with Government-owned copyright 28. To measure the achievement of these objectives, the following indicators will be monitored i) Actual number of textbooks purchased and distributed compared to planned number. Indicator for satisfactory rating: 85% ii) Complete new textbooks and teachers’ guidebooks in Mathematics and Reading (six of each, one per grade) 40 Strategy 29. The strategy is two-pronged: i) for the short-term, delivery of mathematics and reading textbooks and teacher guides to all public primary and EDIL schools to close the textbook gap ii) Support for the development of new textbooks and teachers guides in Mathematics and Reading based on the new competency-based curricula. Activities and Implementation arrangements 30. This sub-component will be executed by the Department of Pre-school and Primary Education (Direction des Enseignements Préscolaire et Primaire) of MEPSA in coordination with the PCU and the DAF (in particular for preparing the bidding documents). The activities will include: (i) the delivery of the books directly to schools, (ii) the preparation of the new textbooks and their pilot testing; and (iii) the finalization of these new textbooks. 31. The number of textbooks to be delivered to each school will be calculated by the DPEE, in collaboration with the DEPP. The number of books to be received by each school will be advertised in local newspapers and radio and displayed publicly in schools. 32. The operator in charge of the delivery to the schools will be selected through competitive bidding. The COGEP will accept book delivery for each school. A public expenditure tracking survey will be implemented for assessing the effective delivery rate. 33. Textbooks are then lent to pupils by the school. Pupils keep their books during the school year, against a minimal deposit (around 1/10 of the book cost) and returned the books at the end of the school year. 34. Regarding the development of the new textbooks, the different activities are listed in the Education Sector Plan and in the action plan for the preparation of the new curricula -which is supported by the AFD-funded EPTT project. Cost and Financing 35. The cost of this sub-component is estimated at US$7.2 million. The breakdown is as follows: US$6.4 million in year 1, US$0.5 million in year 2 and US$0.3 million in year 3. The EFA-FTI financing will be complemented by UNICEF’s ongoing financing. 41 Sub-Component 2.2: School grants (US$ 5.7 million) Context 36. In primary education, salaries account for 95% of total recurrent expenditure. The share of recurrent expenditure for spending other than teacher salaries (including non teaching staff salaries) is only 10%, which is much lower than the African average (30%) and the EFA-FTI Indicative benchmark (33%, see Figure A4.1). Consequently, very little resources are allocated to school level in Togo, compared to other countries in the region. Figure A4.1: Recurrent spending other than teachers’ salaries, in % , LYA 50 45 40 35 30 25 20 15 10 5 0 Sources: Togo: Education Sector Plan, Other countries: World Bank 37. In 2007/08, the Government abolished school fees in public pre-primary and primary schools and started to allocate an annual FCFA 2 billion to compensate for the loss of this substantial stream of funding. Nevertheless, out of the FCFA 2 billion, only FCFA 250 million (equivalent to an average FCFA 330 per pupil) are allocated to school committees38. 38. Some schools benefit comparatively more than others from resource allocations in the form of teachers, textbooks etc. Recurrent expenditure across schools ranges from less than FCFA 10 000 per pupil to FCFA 60 000 per pupil (see Figure A4.2). 39. Moreover, with the same level of resources per pupil and similar socio-economic context, some schools perform much better than others. This indicates a very weak relationship between resources and learning outcomes (see Figure A4.2). 38 530 million go for textbooks purchased at the central level, 510 million go for rehabilitation, 450 million go for paying community teachers in EDIL, 135 million go for school head’s transports, 64 million go to Regional and District Directorates and 61 million go for miscellaneous spending. 42 Figure A4.2: Spending per student and Exam Pass Rate, primary schools, 2007. 100 90 80 Exam 70 Pass 60 Rate 50 (in %) 40 30 20 10 0 Taux de ré ussite au CEPD (%) 0 10 000 20 000 30 000 40 000 50 000 60 000 Recurrent spending per student (FCFA) Source: Education Sector Plan 40. Consequently, there is a need to (i) provide more resources directly to the school level to compensate for the fees abolition; (ii) prioritize schools located in poorer areas and that received less resources per student compared to the average than other schools and (iii) provide incentives for a more results-based management approach. Objective 41. This sub-component has two main objectives: i) Increasing resource availability at the school level for teaching material and quality enhancement ii) Increasing the role of communities in school management 42. The following indicator will be monitored: The number of schools that effectively received the grants compared to the planned number of schools (satisfactory rate will be 75%) Strategy 43. The strategy is to provide selected public/EDIL primary schools with a school grant for quality enhancement activities. The COGEP (including community’s representatives) will decide on the use of the school grant among eligible expenditures (see the list below). 44. The school grant depends on school size, on context/location, on resources already available and on school performance to provide incentives - at the school level - for better quality. As an indirect side effect, it is expected that the school grant will have an impact on girls’ retention and repetition, because the gender ratio and repetition rate are included in the performance indicators used for the calculation of the school grant (see ESP). Activities and Implementation Arrangements 45. This sub-component will be executed by the DAF in the MEPSA in coordination with the PCU and the DPEE. The Regional Directorates and District Inspectorates will supervise the use of the grants. 43 46. The calculation of the school grant to be received by each school will be done annually by the DPPE using the methodology agreed upon by the MEPSA and the donors, included in the ESP. Every year, all public and EDIL primary schools will be eligible to receive a grant, based on the criteria, i.e. all public/EDIL schools with the exception of the schools already better endowed with resources than others and with weaker results. 47. The amount of the school grant to be received by each school will be displayed publicly in the school, at the District Inspectorate, at the Regional Directorate and disclosed through local media channels. The school grants will be transferred to the bank accounts opened by the different school boards (COGEP). 48. The list of the eligible expenditure is the following:  Pedagogical material  Textbooks  Stationery  Organization of the pedagogical days (Journées pédagogiques)  School building maintenance  School furniture maintenance  First Aid medical kit  Any other spending previously agreed to by the World Bank 49. Communication activities will be implemented targeting the school level regarding (i) the school grant calculation methodology and selection criteria; (ii) the eligible expenditures; iii) the control mechanisms; and (iv) the sanctions in case of mis-reporting of data to obtain a larger grant amount. 50. In addition to the regular annual financial audit, every year, a random sample of schools will receive unannounced control visits to check the data reported by the school. A public expenditure tracking survey is also planned to assess the percentage of grants effectively reaching the school level. 51. The control of the use of the grants will be done the same way it is done for other public resources reaching schools, i.e. through the regional/district offices of MEPSA (Directorates and Inspectorates). The impact of the school grant will be evaluated before the end of the project. Cost and Financing 52. The cost of this sub-component is estimated to be US$5.7 million with the following breakdown: US$1.8 million in year 1, US$1.9 million in year 2 and US$2.0 million in year 3. The EFA-FTI financing will be additional to the Government subsidies for compensating school fee abolition (US$4.5 million per year). 44 Sub-Component 2.3: Teacher training institutes (US$ 1.8 million) Context 53. Results from the Togo CSR 2007 indicate that teacher training helps to improve student learning. All other things equal, national primary exam pass rates of a primary school is 3.7 percentage points higher when all teachers in a school are trained, compared to when none are trained. 54. Nevertheless, due to resources’ constraints, Togo does not have any operational primary teacher training institute since 2002. It is only in 2009 that the regional institute of Notse reopens with a first promotion of 512 teacher students. Consequently, 66% of teachers in EDIL and public primary schools have never been trained (see Table A4.5). Table A4.5: Distribution of teachers by type of training, primary schools, 2007. Pre-service training Public+EDIL ENI 1 134 Professional Exam (CAP) 4 374 Others (ENIJE, CAPA) 13 Non trained 11 218 Total 16 740 % non trained 66% Source: Education Sector Plan 55. There are discrepancies in teacher deployment across regions. We count an average of 1 teacher per 41 pupils in the Plateaux region while it is only 1 teacher per 64 pupils in the Golfe region and 1 teacher per 56 pupils in the Savanes region of Togo (see Table A4.6). Table A4.6: Pupil-Teacher Ratio by region, 2007. Region PTR Plateaux 41.0 Centrale 43.8 Kara 44.3 Maritime 47.5 Savanes 56.4 Golfe 64.2 Togo Average 46.9 Source: Education Sector Plan Objective 56. The objective is two-pronged: (i) support the reactivation of teacher training (pre-service and in-service); and (ii) improve the consistency of teacher deployment across regions by linking training and deployment at the regional level (complementary to sub-component 3.2 which supports capacity building for the same issue). 45 57. Achievement of the objective of this sub-component will be measured by the number of regional teacher training institutes built and equipped Strategy 58. The strategy is to build three regional teacher training institutes (in the Kara, Golfe and Centrale region) to (i) complement the construction/rehabilitation of the three other regional training institutes (in Lomé, Savanes and the Plateaux region) by the AFD-funded EPTT project; and (ii) support a regionally-based teacher deployment process. Activities and Implementation Arrangements 59. The activity of building the 3 regional teacher training institutes will follow the same implementation arrangements as the school construction in urban areas (component 1). The MEPSA will delegate the implementation to a Contract Management Agency. 60. Each teacher training institute will be built to be able to enroll 300 trainees. Cost and Financing 61. The cost of this sub-component is estimated at US$1.8 million. The breakdown is as follows: US$0.1 million in year 1, US$0.4 million in year 2 and US$1.3 million in year 3. The EFA-FTI financing will be complemented by AFD financing, through the EPTT project, which will (i) build the regional teacher training institutes in the three other regions and (ii) support the preparation of teacher training curriculum. 46 Project Component 3: Institutional strengthening US$ 7.7 million Sub-Component 3.1: Capacity-building for, and management of the school construction program (US$ 3.1 million) Context 62. As described in Component 1, the Ministry’s capacity to manage the large con struction program to be implemented over the next 10 years, needs strengthening. The Ministry has some limited experience in managing the construction of secondary education facilities, through a centralized process, however, with poor results. On the other hand, most donors have successfully tested approaches based on the delegation of the construction activities to agencies (AFD with AGETUR) or to communities (UN Agencies, NGOs and more over CDD projects financed by the EU and the World Bank) which delivered altogether by far the largest programs of school construction, about 2,000 classrooms during 2005-2009, at an average cost of 40% less than centralized approaches. 63. The Ministry decided in 2009 to take over the leadership for the school construction programs, and to build its capacity to do so. First, it adopted a new construction strategy as described in component 1. Based on the learning experiences of other agencies, the Government based its strategy on the delegation of implementation responsibilities, either to CMA in urban settings or to communities in rural settings. Second, the Ministry decided to build the local actors’ capacity through a learning-by-doing approach. The challenge is to achieve, in the long term, a capacity of building 1,500 classrooms per year. Other countries’ experiences and studies indicate that this volume can only be achieved through a community-based construction approach. The experience of the neighboring country, Benin, where the Ministry of Education is partnering with the PNDCC provides substantial evidence. 64. Although the Ministry has little capacity for managing school construction and direct experience with community-based approaches, the situation is not similar for other actors. First, other donors accumulated substantial experience through their own programs. These experiences were shared with the Ministry during project preparation through the creation of the Construction Strategic Council, which plays the role of strategic advisor to the Minister and his cabinet. Second, there is a CMA, which has considerable experience and a good track record of managing construction contracts for basic facilities. Third, several hundreds of communities which participated in the PPMR, the PURP or are participating in the PDC received training and acquired capacity to manage subprojects. Forth, the PPMR and the PDC have already developed methodologies, procedures and tools (manuals, standard bidding documents and contracts), which were extensively tested and are available to the Ministry for adaptation as needed. Fifth, these projects, and those of NGOs already generated a large network of experienced and available experts. Sixth, these projects provided extensive business opportunities to small-scale local contractors familiar with the concept of community-based contracting (see table A4.3 in this Annex for the details). 47 Objective 65. The overall objective of this sub-component is to build the capacity of actors to successfully manage and implement 815 classrooms in three years, while simultaneously building the capacity to further scale up. The specific sub-objectives are to: (i) build the capacity of the central office of the MEPSA; (ii) build the capacity of its decentralized offices (Directorates and Inspectorates); and (iii) build the capacity of participating communities. 66. To measure the achievement of these objectives, the following indicators will be used: i) Annual number of Financing Agreements actually signed between the Inspectorates and communities compared to planned number. Indicator for satisfactory implementation: 80%. ii) Annual number of communities having received GMT training compared to planned number. Indicator for satisfactory implementation: 80%. Strategy 67. The overall strategy is to minimize the school building quantitative objective in order to concentrate efforts on capacity-building. The specific capacity-building strategies for each actor are as follows: 68. The strategy to build the MEPSA’s central capacity is based on two pillars: i) The central MEPSA will be supported by the PCU as described in component 1. For this purpose the PCU will be reinforced with experienced staff (program manager, GMT, civil works and M&E experts). The unit will have a dual role: (i) to deliver the construction program and (ii) to build the capacity of the DAF and DPEE. It is expected that the PCU would be phased out at the end of the 3-year period and subsequent programs would be managed by the MEPSA; ii) The Ministry is fully aware of the classic risk of making the PCU perpetual due to a lack of skills transfer. This risk is mitigated by a plan which details the transfer of skills and responsibilities prior to implementation. 69. The strategy to build MoE decentralized offices’ capacity is to provide them with decentralized technical assistance that will support them operating their new mandates. 70. The strategy to build communities’ capacity to implement school facility subproject s will be based on the use of the Grassroots Management Training (GMT) method developed by the World Bank’s Economic Development Institute (now the World Bank Institute). This training method is specifically designed for communities with low literacy levels to allow them to effectively acquire adequate skills for local governance, procurement, financial management and monitoring. This method has already proven efficient in similar country-situations such as Senegal and Benin where CDD operations, including school construction, were successful. The GMT method is based on illustrations and role plays. GMT experts deliver sessions to members of the COGEP, ITC and VCC (i.e. 7-8 people per community). Training modules of 2 days each include local governance, procurement, financial management, monitoring, and maintenance. In 48 turn, trainees expose their newly acquired knowledge and skills to their community peer at in village-meetings. Based on other countries’ experience, it is expected that 15% to 20% of the trainees become local experts with proficient expertise and gradually replace the external GMT trainers. Activities and Implementation Arrangements 71. The overall responsibility to deliver the capacity-building program for school construction will lie with the PCU. The selection of the PCU staff will be a condition for the grant effectiveness. The General Secretary will be responsible for reinforcing the DAF and DPEE with additional civil servants with adequate academic qualifications. 72. The GMT program to build communities’ capacity will be the responsibility of the GMT specialist in the PCU, to be selected among experts with a track record in GMT coordination. Training manuals will be adapted from existing manuals used by the PNDCC in Benin through a partnership agreement between the two projects. The adaptation will use to the maximum extent possible existing training materials developed by the Togolese PDC. Experts to deliver the GMT program to communities will be recruited by the PCU amongst experts with a solid track record in community-based approaches. Contracts will be based on a lump-sum amount and paid on the basis of output delivery. 73. The monitoring system for this component aims to provide to managers timely information on the actual implementation of the program. It will be based on a chain of information produced by the various implementing actors, channeled to the PCU which will gather process and analyze them, and timely disseminate relevant results to decision makers. The reporting formats to be used by all actors are detailed in the Operations. 74. The evaluation system of the component aims to timely identify potential or actual risks of mis- or substandard-management, as well as highlighting good and efficient practices. It will provide a strong basis for regular adjustment of the system to improve efficiency. It will be composed of the three following pillars:  An annual technical audit to review the progress of the school construction program and provide information on the efficiency of the overall construction activities. The audit report will review the cost efficiency of the construction through a unit costs review and will provide recommendations for areas of improvement;  An assessment of the beneficiaries’ appreciation; and  An ex-post procurement review by the World Bank of the procurement activities. 75. The communication system aims to guarantee the transparency of the flow of information to each individual actor from the decision-makers to the ultimate beneficiary, particularly as regards financial data. It will not only reinforce the awareness of each actor, but also aims to contribute to reduce the risk of mis-management and eventual corruption.  Simple information regarding the new construction strategy, eligible criteria for funding, procedures to access and utilize funds will be broadly disseminated to parents and communities through flyers given to students by teachers. 49  Information provided by both monitoring and information systems will be disseminated upward to policy-makers, horizontally to managers and directors, and downward to local governments, communities, and beneficiaries, through a range of specific formats adapted to the targeted audience. For instance, specific reports for high level staff, publication in newspapers to inform public opinion, and rural radios to inform communities.  Information regarding the flow of funds from the center to communities and the use of funds by communities, including procurement and financial management will be broadly disseminated by VCCs and posted in public places accessible to community members. 76. Activities will include:  Goods: Office equipment for the PCU and DPEE staff as needed to enable them to perform their tasks and vehicles for supervision of the program in the field.  Technical Assistance to: (i) prepare and deliver the GMT program to enhance communities’ capacity, including the production of GMT guides; (ii) provide local technical support to communities to manage their subprojects; (iii) execute technical audits and beneficiary assessments; (iv) broadcast information through rural radio station; (v) publish information in newspapers; (vi) update the Operations manual on the basis of technical audits and assessments; (vii) update standard plans and technical specifications as needed; (viii) duplicate/print documents such as flyers, operations manuals, reports; (ix) develop/update the monitoring and reporting system including computerized tools; and (x) evaluate program implementation, including the GMT part of it. Training will take different forms such as: (i) community meetings for GMT sessions, (ii) Inspectors, Directors and other MEPSA staff meetings to enhance capacity, share experience and self- assess performance; (iii) scholarships for MEPSA staff to develop specific skills in relation with the construction program; (iv) study tours to learn from similar experiences of other countries; and (v) video conferences with international experts and teams through Distance Learning Centers for staff of the MEPSA.  Operational expenses for: (i) logistics, transport and per diem for supervision activities by the different administrative levels of the system (PCU, Directorates, Inspectorates). Cost and Financing 77. The cost of this sub-component is estimated to be US$3.1 million (US$1. 2 million in year 1, US$0.9 million in year 2 and US$1.0 million in year 3). Financial support provided to the Inspectorates by the AFD-funded EPTT project will also benefit to the present project. 50 Sub-Component 3.2: Capacity building of the MEPSA for ESP implementation (US$ 4.6 million) Context 78. In addition to capacity building activities for school construction, there are other areas in which the capacity of the MEPSA needs to be strengthened to ensure successful implementation of the ESP. An assessment of the capacity gaps and discussions with the other donors regarding their capacity building activities helped to identify key areas for capacity building activities. It includes (i) the establishment of a system for student learning assessment; (ii) capacity building for improving consistency of teacher deployment across schools (in line with the sub-component 2.3 which will build regional teacher training institutes); (iii) support to the preparation of credible implementation plans for pre-school and literacy development; and (iv) support to the preparation of a sound implementation plan for school health, nutrition and HIV/Aids. 79. Capacity building and skills transfer implementation plan. Thanks to the support of UNICEF to MEPSA, a time-bound capacity building implementation plan (using the “EFA-FTI Guidelines for Capacity Building Assessment� and other reference guides39) has been prepared and will be implemented and monitored during the Project. It includes the progressive skills transfer from the PCU to the respective MEPSA departments in key areas such as procurement, financial management and civil works management (see also component 3.1). 80. Student learning assessment system. There is a clear need for setting up a system to monitor annual progress of student learning with a cross-country comparative perspective. The last learning assessment using standardized tests is outdated (PASEC in 2000/01). The available proxy indicator (literacy retention for people who completed primary school) is not the most appropriate indicator for measuring education quality. 19% of individuals which completed primary school are not life-long literate (these figures are calculated from the MICS 2000 and included in the ESP). Literacy retention in Togo is thus above the African average (29%), but is nevertheless low compared to what is expected from a good quality primary education system (a good quality system would lead to almost 100% of sustainable literacy among individuals having completed primary school). The recent school fee abolition succeeded in enrolling pupils that would have not attended school otherwise. Similar to the experiences in other countries (for instance Malawi), this sudden increase in the quantity of pupils may have adverse effects on quality (measured on average), because (i) there is a risk of a deterioration of average school conditions (class size etc.); and (ii) the “new� pupils in schools are mainly from the most disadvantaged groups (which often means a less academically supportive environment at home) and this may skew downwards the average level of student learning. 81. Consistency in teacher deployment. There is also a clear need for improving the system of teacher’s deployment across schools. Schools with the same number of students can have very different number of teachers. As an example, the number of teachers in schools with 300 students, varies from 2 (average class size of 150 students) to 14 (average class size of 21 students). The lack of consistency in teacher deployment has then dramatic impacts on schooling conditions’ equity. At the inspectorate level; the inspectorate pupil-teacher ratios (PTR) range 39 See E. Orbach, Assessing organizational capacity tool, World Bank 51 from 1:34 in Amou Nord up to 1:89 in Lomé Aéroport. Togo is one of the lowest achievers in terms of teacher deployment consistency. With a consistency indicator40 of 55%, Togo is far below the African average (71%, see Figure A4.3). The reasons of this weak teacher management are so not clear even if there are likely to be a mix of technical and political reasons41. There is a need for a detailed analysis of the factors and for the identification of the remedial actions. The building of regional teacher training institutes with regional-based deployment (sub component 2.3) could help, in addition to the activities of this sub-component. Figure A4.3: Consistency of teacher deployment index, 2008/09 or LYA 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Liberia Burundi Lesotho Moz Average Benin BF Cam Chad CAR Mali Guinea Niger Senegal Ethio Gabon Namibia Mada Ghana Congo DRC SL Rwanda Maurita Togo Zambia C. Ivoire Uganda Malawi G.Bissau Sources: Togo: DPEE/MEPSA, Other countries: World Bank 82. Early Childhood Development (ECD) and Literacy. There is a lack of sound action plans for ECD and literacy development. The two sub-sectors were analyzed and key innovative and financially sustainable strategic directions were identified, based on the scenario estimated with the help of a sector-wide financial simulation model42. These include community empowerment and capacity building. Nevertheless, (i) detailed implementation plans are not yet available (in particular partnership arrangements with communities, NGOs and the Ministry of Social Affairs); (ii) the new curricula and related teaching materials based on the new strategy have neither been finalized nor tested; and (iii) no consolidated information system exists for literacy programs operated by different stakeholders; and no learning assessment system for participants in ECD and Literacy programs exists. 83. School health, nutrition and HIV/AIDS implementation plan. The ability of the sector in Togo to deliver comprehensive school health services is hampered by weak capacity at 40 The consistency indicator usually used is the coefficient of determination (R2) between the numbers of teachers and the numbers of students, calculated on all public/EDIL schools 41 A usual reason in other countries for such inconsistency is the fact that most teachers prefer to be deployed in urban areas and find a way to stay in those areas or to be mutated to those areas. Nevertheless, in the case of Togo, it seems not to be the only explanation as there are urban areas with higher PTR than average. It may be explained by the bigger lack of classrooms in urban areas that refrain the MEPSA to deploy new teachers there (without double shift mode, there is the need for one classroom per teacher). The first year of the project will evaluate scientifically this hypothesis, find out the other causes and recommend remedial actions. 42 See “Pour la definition d’un programme national de développement des activités en faveur de la petite enfance au Togo� and “Pour la definition d’un programme national de développement de l’alphabétisation au Togo � working papers 52 central, regional and district levels43. In Togo, poor health, malnutrition and HIV&AIDS impacts the timing of enrollment, the attendance and academic performance of children. Many children in Togo are infected with several different types of worms, among which are geohelminths and the schistosomes44. HIV&AIDS has a considerable impact on the functioning of the education sector, affecting directly or indirectly children and teachers45. In Togo, it is estimated that there are approximately 68,000 AIDS orphans46. Increased school dropout and absenteeism can be observed in Togo when one or both parents are sick or dead. As for the teachers, with an HIV prevalence rate of 3.2%47, it is estimated that about 1,400 teachers (at all levels of the education system) are infected with HIV/AIDS48. The Government of Togo is committed to integrate concrete interventions on health, nutrition and HIV/AIDS in the education sector activities, but is impeded by the lack of a credible action plan. Objective 84. The objective is to strengthen MEPSA capacities for a successful implementation of the ESP and related projects. 85. To measure the achievement of this objective, the following indicators will be monitored i) A time-bound implementation plan to support capacity building in the MEPSA and skills transfer from the Project Coordination Unit (PCU)49 is approved by the General Secretary and at least 75 percent of activities for each year are successfully implemented, as evaluated by the joint donor supervision mission. ii) A system for learning assessment is set up and operational (IDA Core Indicator). On the 0-4 scale, the system reaches 3 in 2013 50 43 See Aide mémoire of the mission of Andy Tembon in 2009 44 www.dewormtheworld.org/pdf/togo.pdf (09/25/09) 45 Institute International de planification de l’Education (2006). L’impact de VIH/SIDA sur le système éducatif au Togo. (Tableau VIII – Décès du personnel enseignant entre 2000 – 2004, page 41). 46 WHO/UNAIDS/UNICEF, (2008). Epidemiological Fact Sheet on HIV and AIDS. Core data on epidemiology and response. TOGO. (WHO/Second Generation Surveillance on HIV/AIDS, Contract No. SANTE/2004/089-735). 47 WHO/UNAIDS/UNICEF, (2008). Epidemiological Fact Sheet on HIV and AIDS. Core data on epidemiology and response. TOGO. (WHO/Second Generation Surveillance on HIV/AIDS, Contract No. SANTE/2004/089-735). 48 Though it is difficult to predict the evolution of this situation, available empirical information suggest that each year about 140 teachers die from AIDS and the full time equivalent of the same number is lost in terms of teachers’ absenteeism due to their illness 49 The capacity building plan is being prepared using the “EFA-FTI Guidelines for Capacity Building Assessment�. 50 Following the Guidance Note on Education Core Indicators for IDA Countries (World Bank, July 22, 2009), this indicator is measured on a scale from 0 to 4, using the following set of criteria: Criteria STAGE 1 Official purpose of the assessment is to measure overall student progress toward agreed system learning goals YES NO on either one NO Assessment is given to a representative sample or census of the target grades or age levels YES of the two criteria NO Indicator Value 1 0 0 STAGE 2 Data are analyzed and results are reported to education policymakers and/or the public NO YES on any YES on any YES Results are reported for at least one of the following student subgroups: gender, urban/rural, geographic region NO one of the two of the YES The assessment exercise is repeated at least once every 5 years for the same subject area(s) and grade(s) NO three criteria three criteria YES Value 1 2 3 4 53 iii) The teacher deployment consistency index (R2 of the number of teachers and of students, calculated on the basis of all public/EDIL primary schools). Indicator for satisfactory implementation will be 60% in 2013 (to be compared to 55% in 2009)51 iv) An implementation plan on ECD in line with the key strategies of the ESP is completed and approved by the Government and the local donors. v) An implementation plan on literacy in line with the key strategies of the ESP is completed and approved by the Government and the local donors. vi) An implementation plan on School health, Nutrition and HIV/AIDS in line with the key strategies of the ESP is completed and approved by the Government and the local donors. Strategy 86. The strategy is to enhance the capacity of the Ministry of Education via the implementation of the time-bound capacity building and skills transfer plan. Activities and Implementation Arrangements 87. This sub-component will be executed by the MEPSA General Secretariat, in coordination with the PCU of MEPSA, and with the relevant MEPSA Departments (DPEE for the learning assessment, DRH for teacher’ deployment, DEPP for ECD, Direction de l’Alphabétisation et de l’Education Non Formelle (DAENF) for literacy). 88. The activities will include: (i) provision of technical expertise (short-term consultants and resident technical assistance); (ii) preparation of thematic studies and surveys; (iii) technical workshops; (iv) sharing of experience with other countries through study tours; and (v) purchase of materials and office supplies. 89. The learning assessment system will be built upon the PASEC survey conducted during the 2009/10 school year. The external international PASEC team will strengthen the national Ministry team’s capacity for designing, implementing and analyzing a student learning assessment. The National team will then replicate the assessment (without the PASEC team) in the following school years. Cost and Financing 90. The cost of this sub-component is estimated to be US$ 4.6 million broken down as follows: US$2.1 million in year 1, US$1.1 million in year 2 and US$1.4 million in year 3. The present project will also benefit from technical assistance provided to the Ministry team through the AFD-funded EPTT project, and capacity building activities funded by UNICEF and NGOs. 51 Conjointly, another indicator, capturing the same outcome but whose understanding is more widely shared, will be monitored: the difference between the smallest Inspectorate PTR and the biggest Inspectorate PTR. This difference is 55 in 2009 and an indicator for satisfactory implementation will be 50 in 2013 54 Annex 5: Project Costs and proposed financing of the ESP over the CF grant period Togo EFA-FTI Catalytic Fund Grant Table A5.1: Financing of the ESP by level of schooling and source of funding (2010-2013 MTEF Summary), in k US$ Recurrent Capital Rec+ Capital Level AFD/ Plan PDC of schooling Gov Gov EFA-FTI CF AFD AeA UNICEF Togo BID IDA DANIDA Total Pre-primary 5,971 807 699 72 7,550 Primary 211,119 7,359 39,044 7,841 0 4,817 4,703 4,105 2,100 254 281,342 Literacy 1,235 0 473 66 79 1,853 Secondary 135,823 8,522 144,345 TVET 33,945 90 34,035 Higher 96,664 3,629 100,293 Education Sector Wide 493 4,784 6,260 304 0 455 63 0 97 12,456 Total 484,757 20,901 45,000 14,100 304 4,817 5,297 4,167 2,100 430 581,874 Table A5.2: Distribution of spending of the EFA-FTI operation by sub-component and year, in k US$ Sub component 2011 2012 2013 Total School Building (1) 4,384 7,844 10,357 22,585 Textbooks (2.1) 6,392 524 253 7,169 School Grants (2.2) 1,829 1,928 1,981 5,738 Teacher Training Institutes (2.3) 56 438 1,310 1,804 Capacity-building for, and management of the school building program (3.1) 1,182 926 1,008 3,116 Capacity-building of MEPSA for ESP implementation (3.2) 1,185 579 896 2,661 Management and program coordination (3.2) 946 484 496 1,927 Total 15,973 12,723 16,303 45,000 Table A5.3: Distribution of spending of the EFA-FTI operation by type of spending and year, in k US$ 2011 2012 2013 Total Equipment and Furniture 1,189 901 1,622 3,712 Studies and surveys (incl. for civil works) 261 537 595 1,394 Training 575 456 489 1,520 Textbooks and other teaching material 6,392 41 514 6,947 Expertise, consultants fees 1,242 1,366 851 3,459 School Grants 1,794 1,844 1,969 5,608 Civil works 3,742 6,951 9,451 20,144 Other 778 627 812 2,217 Total 15,973 12,723 16,303 45,000 55 Annex 6: Institutional Arrangements Togo EFA-FTI Catalytic Fund Grant 1. Guiding Principles. The ESP is a sector-wide program that includes all the sub-sectors from early childhood to higher education through primary, secondary, technical and vocational education and literacy. External support is embodied in the ESP framework. External support is so far projects-based but the goal is to go towards sector budget support, once Government capacities will be enhanced enough. One other key issue is the move towards “decentralization�. The success of this move depends also on strengthening the capacity, in particular in the regions, local authorities and communities as well as on the establishment of accountability procedures at all levels. 2. Construction Strategic Council (CSC). Due to the high volume of school buildings that is planned and the need for a better Government/Donors harmonization, a Construction Strategic Council has been set up. It includes the MEPSA and all donors and NGOs involved in school building activities in Togo. It is chaired by the MEPSA General Secretary. The CSC first agreed on key issues regarding the new school building strategy and will now have the role to advise the Construction Technical Unit (CTC) of the Projects Coordination Unit (PCU) in all matter related to school construction. 3. Project implementation arrangement. The project implementation unit set up in MEPSA for the EPTT project already follows the IDA procedures. It will be strengthened to become a Projects Coordination Unit (PCU). Under the supervision of the MEPSA General Secretary, the PCU will (i) implement all the activities of the two projects (EPTT and EFA-FTI), (ii) liaise with the ESP coordination structures and the MEPSA departments and (iii) transfer skills to MEPSA departments during the projects implementation. The PCU will report to the MEPSA General Secretary. 4. In addition to the EPTT coordinator and the EFA-FTI coordinator, the PCU will include two sub-units: (i) an Accounting and Procurement Unit (Unité Comptable et de Gestion - UCG) which will be responsible of the fiduciary and procurement aspects of the projects (using procedures acceptable to the World Bank) and (ii) a Construction Technical Unit (CTC) which will be responsible for the school building component regarding technical aspects, and capacity- building of communities. 5. The UCG will comprise the following core group of experts: two procurement officers (one already recruited by the EPTT project), a financial comptroller (already recruited by the EPTT project) and one financial management specialist and one accountant (to be recruited with qualifications and experience satisfactory to the World Bank). 6. The CTC is advised by the Construction Strategic Council (already in place) and will comprise the following core group of experts: a Construction Program Manager, a civil works specialist which will be responsible for the technical aspects of the construction program, a M&E specialist which will coordinate the production and use of the flow of data needed to monitor the projects, a Communities Training Coordinator specialist to coordinate the capacity-building program for communities and five decentralized Grassroots Management Training (GMT) 56 experts which will be regionally distributed to support Regional Directorates (DRE) and coordinate supervision and capacity-building regional sub-programs. The Construction Program Manager will coordinate with the Procurement Officer as well as with the Financial Management Specialist to ensure all activities are conducted according to procedures acceptable to the World Bank. 7. Given the current lack of capacity of the MEPSA, the PCU will have the responsibility to build the capacity of the key MEPSA departments (in particular the Direction of Finance –DAF, and the Direction of Education Planning and Evaluation –DPEE) through specific training and learning-by-doing. The UCG will gradually transfer its responsibilities to the DAF and the CTC will gradually transfer its responsibilities to the DPEE. 8. The organization chart below indicates the functional connections that exist between the different units and actors involved. 57 ESP High Level Steering Commitee (CSE) ESP Coordinating Committee (CCP) with a Permanent Technical Secretariat (STP) Construction Strategic Council (CSC, includes MEPSA General Secretary donors) DPEE Projects Coordination Unit (PCU) DAF Accounting and Construction DPEE Procurement Technical Unit Unit (UCG) (CTC) Budget and Statistics and Accounting Two Coordinator School Procurement Mapping officers Monitoring and Evaluation Material and Expert Equipment and Equipment School Financial Civil Works Buildings Analyst + Expert Two accountants IT Grassroot Management Evaluation and Training Expert Surveys Regional Directorates (DRE) Director PCU Decentralized Staff Support and Capacity Building Reg. Coordinators School Building Division Decision and Supervision Contract Agreement Inspectorates Inspector Private Sector Trainers/Moderators Communities Schools Communautés COGEP Construction Use of school grants Textbooks reception Contractor Village Community Association 58 9. Regarding particularly the school construction, in order to implement its new strategy and to pave the way for scaling up to the other levels of education (pre-school and secondary), the MEPSA will develop the capacities of the DPEE as follows:  Capacity to develop and implement a monitoring and evaluation mechanism;  Capacity to develop and implement a training device at grassroots level;  Capacity to develop and implement a communication mechanism. 10. The capacities of the DAF will be developed in the following areas:  Management of devolved consultant contracts;  Management and transfer of funds to the communities;  General management of the program’s budget, involving numerous actors and decision- makers. 11. To achieve this capacity building, the PCU will provide support through training and ad- hoc actions and will be responsible for (i) the progressive transfer of responsibilities from members of the PCU to their counterparts and (ii) training and recycling DREs and Inspectorates for their missions. PCU experts will work closely with at least one DPEE/DAF/DRE counterpart appointed as representative to the program, by the MEPSA. In due course, all the missions and responsibilities covered by the Project Unit will be taken over by the DPEE and the DAF. 12. Community level. The project is designed to strengthen grassroots communities’ responsibilities in order to improve accountability and efficiency in service delivery52. In particular, the communities, through school committees (COGEP) will be involved in the implementation and management of the classroom buildings and of the school grants sub- component. The COGEP include parents, village representatives and teachers of the school. In rural areas, school building procurement will be carried out according to simplified procedures that are already used in the World Bank Community Development Project. The COGEP will be supervised by regional Directorates (DRE) with the support of the decentralized PCU staff. Prior to the grant disbursement to the COGEP, they will receive systematically the required basic training on the Simplified Guidelines for Procurement and Disbursement for Community-Based Investments. The procedures are detailed in the Operations Manual and in the Project Financial and Accounting Manual approved by the World Bank. 13. The management training and support mechanism will provide the communities with initial capacity building and the necessary support during implementation to enable them acquire full capacity to manage the construction work through hands-on experience. Capacity development will be required at grassroots level for the following aspects: (i) procurement, (ii) financial management, (iii) communication and transparency, (iv) monitoring and control, and (v) maintenance of school buildings and equipment. 14. The follow-up mechanism is set up to ensure that the activities are correctly performed, according to the procedures already established at central level by the MEPSA. It is a way of checking that the communities are indeed managing the construction projects in compliance with 52 See World Development Report 2004, Making Services Work for Poor People ; World Bank, September 2003 the set procedures, time schedules and norms. It involves verification and acceptance procedures as well as the transmittal of information and reports. These concerns all actors involved in school construction, i.e. the different administrative levels of the MEPSA and the communities. Monitoring and control will be carried out in succession as follows:  The communities will be responsible for following up on the activities of the sub- contractors (they sign a contract to this effect with a maître d’œuvre who certifies the works carried out)  The Inspections will be responsible for following up on the activities of the communities, and on training and support activities  The DREs will be responsible for checking the application of norms and procedures, the proper use of standard documents, and the effectiveness of training and support activities at community level.  The DPEE will be responsible for checking that the accepted procedures are respected at all levels (DRE/Inspections/Communities) at each stage of the strategy. It will benefit from the assistance of the Construction Technical Unit of the PCU.  The ESP coordination bodies and the Construction Strategic Consul will be responsible for (i) checking the effectiveness and efficiency of the implementation of the program as a whole, (ii) ensuring the timely and periodical setting up of technical and financial audits, post-procurement reviews and the beneficiary satisfaction survey, and (iii) proposing, as necessary, any adjustments and/or change of direction. 15. The communication and transparency mechanism will ensure that all actors are accountable for managing the funds under their responsibility vis-à-vis all the other stakeholders, the communities and public opinion. Transparency mechanisms will be set up at all levels. Transparency consists in all essential data on program operations being known by all stakeholders, including the general public. This device will ensure proper use of the funds and will constitute a means of sanction in case of failure to reach the set goals. 16. Project monitoring and supervision. The supervision of the project will be facilitated by the recruitment of an Extended Term Consultant based in Lomé who will support project implementation and supervision under the management of the World Bank Task Team Leader and in close collaboration with the Country Manager. 60 Annex 7: Financial Management and Disbursement Arrangements Togo EFA-FTI Catalytic Fund Grant Summary of the Financial Management Assessment 1. A World Bank mission has been conducted in Lomé on July 20 to 31, 2009 to assess the financial management capacity of the Ministry of Primary and Secondary Education and Literacy (MEPSA), and in particular of the unit established by the Government to handle the fiduciary management aspects of donors funded projects in the Education sector. This unit, currently named UCG (Unité Comptable et de Gestion), is supported by the EPTT project (funded by AFD) and will be strengthened to become the Project Coordination Unit (PCU) of the MEPSA. The assessment was based on field visit, on an FM Questionnaire and on various discussions with staff of the MEPSA and others donors involved in the education sector. 2. The objective of the assessment was to determine whether the UCG, had acceptable financial management capacity. The assessment was carried out in accordance with the OP/BP 10.02 and the Guidelines for Assessment of Financial Management Arrangements in World Bank Financed Projects issued by the Financial Management sector board on October 15, 2003. It includes an assessment of the budgeting, accounting, reporting, auditing, and internal controls systems. A Unit’s arrangements are acceptable if they are capable of recording accurately all transactions and balances, supporting the preparation of regular and reliable financial statements, safeguarding the Project’s assets, and are subject to auditing arrangements acceptable to the World Bank. These arrangements should be in place when project implementation starts and be maintained as such during project implementation. 3. The conclusion of the financial management assessment was that financial management arrangements for the Project needed to be improved in order to satisfy the World Bank’s minimum requirements under OP/BP10.02, after which they will be adequate to provide, with reasonable assurance, accurate and timely information on the status of the Project as required by the World Bank. The main areas of improvement include: (i) the development of a Project Financial and Accounting Manual, (ii) the recruitment of one FM specialist and one accountant with qualifications and experience satisfactory to the World Bank, (iii) the development and implementation of an accounting software and (iv) the recruitment of a financial external auditor with qualifications and experience satisfactory to the World Bank. As a result of the weaknesses identified, the financial management risk has been assessed as substantial after the implementation of the mitigation measures above. Summary project description 4. The Project Development Objective (PDO) is to increase coverage of and retention in basic education, support improvements in the quality of teaching and strengthen institutional and community capacity in implementation and management. Country assessment 5. The country environment is characterized by weak governance and transparency systems at all levels. Other main issues include: (i) a public expenditure management that has suffered from a 61 distorted budget cycle, and from problems in budget execution; (ii) a control environment with an internal audit system that is not fully effective and an external public audit body that is not established; (iii) delays in executing public expenditures due to lack of accountability and capacity; and (iv) a Treasury management system that is inadequate and not transparent. However following the completion of the PEMFAR in 2006 there have been some improvements. In particular, the December 2008 ERGG mission noticed that, significant progresses have been made in: (i) budget preparation, (ii) budget credibility, and (iii) budget implementation and control. Weakness remains in budget monitoring and reporting and external control oversight. Risk analysis 6. The FM risk assessment is summarized in the Table A7.1 below: Table A7.1: Summary of FM risk assessment Risk Risk Risk Mitigation Measure Conditionality Residual Rating Risk Rating Inherent Risks: S M Country: H As per ERGG mission (Economic None S Slow pace of public financial Recovery and Governance Grant) set up in management reforms December 2008, progress has been made on fiscal and accounting reforms. Weakness remains in budget monitoring, reporting and external control oversight. Entity Level One FM specialist and one accountant with Some additional The Ministry of Education has H experience and qualifications satisfactory staff including M no real capacity in managing to the World Bank will be recruited to one FM World Bank funded operations. reinforce the UCG. specialist and The project includes also technical one accountant assistance which will help to strengthen will be recruited. capacities in central departments of the ministry and at several other decentralization levels. Program level i. The program involves several S Separate designated accounts will be M donors (AFD): Risk of opened for each donor and the operational confusion of funds and delays manual will detail the reporting in recording by using the same requirements. The FM specialist of the FM unit for different financing PCU, will coordinate and supervise the job received from the donor of the other accountant. partners of the sector Project manuals to be available ii. Insufficient knowledge and S PCU/MEPSA staff and other stakeholders prior the M experience with IDA. FM to be trained on World Bank policies and effectiveness procedures may delay the procedures. IDA supervision to help project implementation identity and address weaknesses. iii. Governance and anti H Amendment of the external financial M corruption (GAC) aspects: Risk auditor ToR to include specific International Standards of Auditing (ISA) 62 of corruption and bad on fraud and corruption, realization of a governance that could not technical audit. As for management of allow to meet the key goals of school grant, transparency measures must the project especially at be taken including a mandatory disclosure decentralization level in each school of COGEP Annual Budget and the executing report Control Risks: H S Budgeting Budget preparation process S The FM analyst of the PCU will provide None M may be delayed as different support in preparing realistic budget stakeholders are involved in the consistent with their disbursement plans. project implementation. Budget may be based on unrealistic procurement plans and costing Accounting The accounting system is being H A specific computerized accounting Implementation S put in place by other donor; system will be acquired. Training will be of an appropriate delay in keeping reliable provided to all project staff. computerized accounting records and issuing accounting reliable financial statements system prior the might occur. effectiveness Internal Audit i. National internal control S i. The Project Financial and Accounting Project Financial M entity recently established does Manual will outline approval and and Accounting not have adequate capacity to authorization procedures with clear Manual to be cover project activities. The segregation of duties. Civil work experts available prior PCU does not have its own will be involved at each level in the the effectiveness internal audit unit. supervision of school building activities and they will provide clearance before any payment to executing agencies or communities. Internal control environment will be reviewed during FM supervision mission. ii. The FM staff of COGEP are H ii. Training will be provided to the FM S not qualified enough and then staff of communities such as COGEP the FM system regarding the under the project. In addition, the monitoring of school grant and accountants of decentralized level of the school building at MEPSA will make ex-post reviews of all decentralization level would expenditures committed locally by the not be reliable communities under school building activities or school grant operations. They will also review the adequacy of FM arrangements implemented by Communities or other executing agencies involved in the project. Relevant work tools will be provided to them by the Project Financial and Accounting Manual and training will be provided to them. External Audit Delays in the submission of the M Audit firm to be recruited in line with ToR will be L audit report. World Bank’s guidelines including finalized at the Unqualified audit firm may be reviewing the TOR to ensure quality negotiation. recruited. audits. This will be performed by using the Appointment of 63 recent World Bank assessment of the audit the auditor 4 firm in Togo. months after effectiveness Funds Flow i. Delays in the replenishment H PCU will open a Designated account in a None S due to challenges to generate reputable and stable commercial bank in and manage documentation of Togo. To mitigate any risk related to the expenditure in a timely manner. report-based disbursement, the World Bank FM Unit would provide appropriate training to the key stakeholders involved in the program prior the effectiveness and the task force will help resolve Funds flow issues during the program implementation. ii. Funds may be diverted or H Separate accounts will be opened by all Amendment of M used for non project eligible executing agencies to be involved in the current purposes especially at project. The capacity building activities Ministerial decentralization level planned, the appointment of external decree related to auditor and of a technical auditor will COGEP contribute to avoid having ineligible including expenditures. authorization of opening account in commercial bank Reporting Delay and difficulties in the S The use of report-based disbursement Agreement on M preparation of acceptable IFRs compounds the challenge to set up reliable IFR formats and and acceptable IFRs that meets the World contents at Bank’s requirement. Thus ,the appropriate negotiations formats for Interim Financial Reports would be designed and included as annexes to the manual of procedures: Two kinds of reports will be defined, one for the use of communities such COGEP, and the other to help the PCU to report to IDA. This would be discussed and agreed by the end of the negotiations. Training will be also provided to the project accounts staff. Overall Risk H S Risk Rating - H: High, S: Substantial, M: Moderate, L: Low 7. Strengths. Even if it was put in place recently, the PCU is already managing AFD financing with FM procedures similar to IDA procedures. Since the PCU is destined to enhance capacity of operational department staff of the ministry, some homologues of PCU staff will be designated and they could help to reduce operations delays when they start getting strong. 64 8. Weaknesses. Following are the weaknesses identified and the proposed actions plan: Significant weaknesses Activity/Action Responsibility Target Completion Accounting No Objection on TOR of 1. An appropriate computerized computerized accounting AFD/ MEPSA Before Negotiations accounting system is not yet in system to be acquired by other place donor and development of this system. 2. Weakness of Account staff of the Recruitment of a FM specialist Four months after PCU ( one accountant devoted now and one accountant with TOR MEPSA effectiveness to AFD project) acceptable to the World Bank External Audit 3. The Supreme Audit Institution is Prepare TOR for the external MEPSA During appraisal weak and has never audited the auditor that is satisfactory to and agreed on at Ministry IDA Negotiations Recruitment of external Four months after independent auditor under effectiveness TORs acceptable to IDA MEPSA Internal control 4. Financial, administrative and The manual will be in place Prior to accounting procedures manual does before the project starts ( MEPSA effectiveness not exist. Low experience of the manual included agreed IFR PCU and the Ministry in World formats and contents ) Bank project managing 5. As institution included in the MEPSA regarding their current status, the COGEP are not allowed Amendment of current to open account in commercial Ministerial decree related to Prior to bank but they need these COGEP including MEPSA effectiveness segregated account in managing of authorization of opening CF sub-grants account in commercial bank Conclusion of Financial Management Assessment 9. The conclusion of the assessment is that, by taking into account the mitigation measures proposed, the financial management arrangements will be adequate to carry out the project. Institutional and implementation arrangements 10. The implementing entity chosen is Togo Ministry of Primary and Secondary Education and Literacy (MEPSA). To strengthen the capacity of operational departments of this ministry, a project coordination unit (PCU) has been established and includes an Accounting and Procurement Unit (UCG) who is responsible for Fiduciary management aspects. 11. The UCG will comprise the following core group of experts: a procurement officer (already recruited by the AFD-funded EPTT project), a financial comptroller (already recruited by the EPTT project), one FM specialist and one accountant (to be recruited with qualifications and experience satisfactory to the World Bank). From our assessment the qualification and experience 65 of the financial comptroller are satisfactory even if he had low knowledge in World Bank FM procedures. 12. The World Bank has agreed with the Government and other donor partners, especially AFD, that the design of implementation arrangements will be done with the aim of skills transfers for actual enhancement of technical capacity of civil servants. It was agreed that Togo government will designate at central and decentralized levels counterparts/homologues of the UCG staff and these staff will work closely the specialists appointed. 13. Regarding School grants management and school building activities, it was agreed to involve school-based management committees (Comité de Gestion des Ecoles Primaires – COGEP) in these operations as delegated agencies (Agences de gestion déléguée). Thus, Togo government promised to take a Ministerial decree which will organize legal status of these Boards and allow them to open subsidiaries commercial bank accounts for the management of the project funds. This decree is expected to be taken before effectiveness. The COGEP will be composed of representatives of parents associations and local officials of the MEPSA. These arrangements will include double signatories on banks accounts, the set up of a sound financial management system including a proper filling of all expenditures, the drafting of periodic technical and financial reports to be validated by School inspectors and /or others civil work experts to be involved in the project. Public accountants, acting as finance controller, in decentralization level will be involved in an ex-post review of the COGEP fiduciary activities helped by work tools to be provided in the Project Financial and Accounting Manual. Annual technical audit will be carried out to ensure that activities financed meet the actual objectives of the project. Funds flow 14. In line with IDA procedure a segregated Designated Account (DA) will be opened and managed by the PCU .The Designated Account to be opened in a reputable and stable commercial bank in Togo acceptable to the World Bank will receive Grant proceeds on the basis of the Project’s periodic expenditures and cash needs expressed through the withdrawal applications. As DA, its cash withdrawal transactions would be authorized respectively by the Project Coordinator and the MEPSA Director of Administration and Finance (DAF). The account is set up to fund eligible expenditures based on the approved annual action plans. 15. The project will use report-based disbursement procedures for transferring funds to the Designated Account. The ceiling of the Designated Account will be based on cash forecast for two (2) quarters as provided in the quarterly IFR. The process for preparation of the IFR will be set out in the Project Financial and Accounting Manual. 16. Four (4) disbursement methods will be available for use under the project, i.e. direct method, reimbursement method, special commitment method and the advances method. The advances method will be applied for the replenishment of the DA. Further instructions on disbursement and details on the operation of the DA will be outlined in the disbursement letter. Regarding delegated agencies as COGEP, subsidiaries segregated account will be opened in commercial bank and manage with procedures in accordance with main lines which will be described in the Project Financial and Accounting Manual. Adequate fiduciary oversight arrangements will be in place within the COGEPs to manage the subsidiary accounts. 66 Disbursements to delegated agencies will be based on reports properly approved by civil work experts or other appropriate specialists. Catalytic Fund Grant Account managed par IDA IFR/DP/WA Designated Account in commercial bank managed by PCU IFR/WA Subsidiaries Account in Others Goods and services commercial bank providers Managed par delegated agencies as COGEP Legend: Direct Payments Reports / Documents Resources 17. Staffing. Two agents have been recruited in the UCG (a financial controller and a procurement specialist). The PCU is under consolidation. The FM staff of the MEPSA has not appropriate qualification in FM and no experience in IDA project managing. Then, the appointment of one FM specialist and one accountant is recommended in order to reduce delay in recording transactions and submission of IFR and Withdrawal Applications. 18. Accounting policies and procedures. A Project Financial and Accounting Manual has been developed in accordance with World Bank policies and procedures and will be implemented by the UCG. The project accounting procedures will be based on accrual basis using OHADA 67 principles. The financial report expected from delegated agencies such as COGEP will be based on cash basis accounting principles. A simplified financial manual will be provided for COGEP. 19. Internal audit and internal control. There is no internal auditor recruited within the project. The internal control will be organized through the Project Financial and Accounting Manual with appropriate segregation of duties and responsibilities. The public accountants of MEPSA at decentralization level, acting as finance controller, will be involved in ex-post reviews of statements of expenditures related to delegated agencies operating under their area. 20. Budgeting. Budget preparation process and its monitoring is defined in the Project Financial and Accounting Manual. The budget monitoring will be modernized by using the accounting software (rather than using Excel spreadsheet). However, at decentralized levels (delegated agencies), simple budget monitoring based for example on Excel spreadsheet is acceptable. 21. External audit. The project’s annual financial statements and Interim Financial Reports prepared by UCG as well as internal control system applied would be subject to an annual audit by a reputable, competent and independent auditing firm based on terms of reference that are satisfactory to IDA. The TOR for the engagement of external auditor will be agreed with IDA prior to the appointment of the auditor. The auditor will provide a single audit report with opinion(s) on the project’s annual financial statements and the Designated Accounts in compliance with IFAC Standards on Auditing. The auditor will be required to express an opinion on the accuracy and the relevance and eligibility of expenditures made under the project and the extent to which the Interim Financial Reports can be relied upon as a basis for the disbursements. In addition to the audit reports, the external auditor will be required to prepare a Management Letter giving observations, comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Financing Agreement. The audit scope would be tailored to the project’s specific risks, in accordance with World Bank requirements. There is no outstanding audit for projects being implemented by MEPSA, the project implementing agency for this Operation. 22. It will be required to the external auditor to manage samples of COGEP to be audited. The UCG will also be required to provide, no later than June 30 of the following fiscal year, a single audited annual financial statement, expressing opinion on the elements of the audit as described in the TORs. The selection of the auditor is expected to be completed no later than four months after effectiveness. 23. In addition, to the above audit arrangements, the World Bank will implement annual technical audit on the project activities. 24. Reporting and monitoring. The UCG will prepare quarterly IFRs during project implementation. The reporting format and procedures is documented in the Project Financial and Accounting Manual. IFRs are composed of the following FM aspects:  Financial reports: (i) sources and uses of funds by funding source and (ii) uses of funds by activities of the project;  Projected expenditures and cash forecast for the next semester (six months); 68  Bank reconciliation statement for the Designated Account and the Operations Account showing the cash balance available at end of the quarter under review;  List of payments for contracts subject to prior review;  List of payments for contracts not subject to prior review. 25. Quarterly Interim Financial Reports and annual project’s financial statements will cover all activities financed through the World Bank funds. The project’s annual financial statements will be subject to external audit as described below. The Interim Financial Report shall be delivered to the World Bank no later than 45 days after the end of the quarter. 26. The financial management indicators for the project are the following: (i) part of the budget disbursed every three months at the level of each component of the project; (ii) nature of the opinion from the external Auditor on the annual financial statements; (iii) number of internal control major weaknesses identified by the internal and the external auditors; (iv) scope of internal audit work performed as well as the statistics on the action plans implementation; and (v) rating of FM overall control risk. 27. Financial covenants. The following points of the financial covenants must be stated in the Financing Agreement: the Recipient (i) to maintain the project’s financial management systems including records, accounts, and preparation of related financial statements in accordance with accounting standards acceptable to the Association and to be audited; and (ii) to prepare and furnish to IDA un-audited IFRs. 28. Supervision plan. The project will be supervised on a risk-based approach. Supervision will focus on the status of financial management system to verify whether the system continues to operate well and provide support where needed. It will comprise inter alia, the review of audit reports and IFRs, advice to task team on all FM issues, review of annual audited financial statements and management letter. Based on the current risk assessment which is Substantial, on- site visit supervisions will be twice a year during the implementation and a review of transactions will be performed on that occasion. To the extent possible, mixed on-site supervision missions will be undertaken with procurement, monitoring and evaluation and disbursement colleagues. 69 Annex 8: Procurement Arrangements Togo EFA-FTI Catalytic Fund Grant Background--Procurement Reform 1. A Country Procurement Assessment Review (CPAR) for Togo was carried out in October 2003. The Togo CPAR and the action plan proposed for national procurement system reform was adopted by the Government on March 25, 2008. This action will support the modernization of the regulatory and institutional framework. Its objectives are to (i) improve the management of public contracts, (ii) modernize public procurement procedures, (iii) strengthen capacities of institutions and personnel involved in public procurement, (iv) establish an independent procurement control system, and (v) adopt anti-corruption measures. In addition, the plan provides for the gradual empowerment of the decentralized procurement entities, the definition of a strategic framework for capacity building in procurement and the updating of tools such as standard bidding documents and manual for the procurement procedures to ensure effective use of the procurement code. 2. Due to delay in the adoption of the CPAR, the level of implementation of procurement reforms action plan has been very slow and is rated unsatisfactory by the World Bank’s review. Only the creation of the National Committee of Coordination and Monitoring (NCCM) under the Ministry of Economic Planning and Finance has been completed. As part of the implementation of procurement reforms, a consultant evaluated, in September 2008, the national procurement system on the basis of OECD/DAC indicators and prepared, in December 2008, a new procurement law and procurement code with legal and institutional procurement framework in line with West Africa Economic and Monetary Union (WAEMU) Procurement Guidelines. 3. The new procurement institutional framework is comprised of (i) a Procurement regulatory entity, independent of procurement transactions and made up of members selected from the public and private sectors as well as representatives from civil society organizations. The entity shall be responsible for public procurement policy and audits and will deal with complaints from bidders; (ii) a Public Procurement Control Entity which will be responsible for controlling the quality of procurement transactions, and (iii) Public Procurement Units at Sector Ministries and decentralized Agencies at the local level whose responsibility it would be to ensure that the new procurement code was fully adhered to at the local level. The new procurement law has been and promulgated on June 30 2009. The adoption of the new procurement code is expected at end of 2009. 4. Guidelines. Procurement for the proposed project will be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits� dated May 2004, revised through May 2010; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers� dated May 2004 revised through May 2010, and the provisions stipulated in the Grant Agreement. The general descriptions of various items under different expenditure categories are described below. For each contract to be financed by the grant, the different procurement methods or consultant selection methods, the need for prequalification, the estimated costs, the prior review requirements, and the time-frame shall be agreed between the Borrower and the World Bank project team in the Procurement Plan. 5. Procurement Documents. The procurement will be carried out using the World Bank’s Standard Bidding Documents (SBD) or Standard Request for Proposal (RFP) respectively for all 70 International Competitive Bidding (ICB) for goods and recruitment of consultants. For National Competitive Bidding (NCB), the Recipient could use the bidding document approved by the World Bank or submit a sample form of bidding document to the World Bank for prior review which could be used throughout the project implementation period once agreed upon. The Sample Form for Evaluation of Reports developed by the World Bank will be used for evaluation of bids and proposals. Advertising procedure 6. General Procurement Notice (GPN), Specific Procurement Notices (SPN), Requests for Expression of Interest (EOI) and results of the evaluation and contracts award should be published in accordance with advertising provisions in the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits� dated May 2004 revised through May 2010; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers� dated May 2004 revised through May 2010. The borrower will keep a list of received responses from potential bidders interested in the contracts. 7. For ICB and request for proposal that involves international consultants, the contract awards shall be published in UNDB online and in dgMarket within two weeks of receiving IDA’s "no objection" to the recommendation of contract award. For Goods, the information to publish shall specify: (i) name of each bidder who submitted a bid; (ii) bid prices as read out at bid opening; (iii) name and evaluated prices of each bid that was evaluated; (iv) name of bidders whose bids were rejected and the reasons for their rejection; and (v) name of the winning bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. For Consultants, the following information must be published: (i) names of all consultants who submitted proposals; (ii) technical points assigned to each consultant; (iii) evaluated prices of each consultant; (iv) final point ranking of the consultants; and (v) name of the winning consultant and the price, duration, and summary scope of the contract. The same information will be sent to all consultants who submitted proposals. The other contracts should be published in national gazette periodically (at least, quarterly) and in the format of a summarized table covering the previous period with the following information: (i) name of the consultant to whom the contract was awarded; (ii) the price; (iii) duration; and (iv) scope of the contract. Procurement methods 8. Procurement of Works: The Works to be financed by IDA would include construction and rehabilitation of schools’ classrooms, latrines and teachers’ training centers. Contracts of works estimated to cost US$3,000,000 equivalent or more per contract shall be procured through International Competitive Bidding (ICB). Contracts estimated to cost less than US$3,000,000 equivalent may be procured through NCB. Contract estimated to cost less than US$50,000 equivalent per contract may be procured through shopping procedures. For shopping, contracts will be awarded following evaluation of bids received in writing on the basis of written solicitation issued to several qualified suppliers (at least three) who have a physical shop of the concerned goods. The award would be made, to the supplier with the lowest price, only after comparing a minimum of three quotations open at the same time, provided he has the experience and resources to execute the contract successfully. For shopping, the project procurement officer will keep a register of suppliers updated at least six monthly. 71 9. Procurement of Goods: The Goods to be financed by IDA would include: office and classrooms furniture, and equipments, vehicles, office supplies, school manuals and materials, etc. Similar Goods that could be provided by a same vendor would be grouped in bid packages estimated to cost at least US$300,000 per contract and would be procured through International Competitive Bidding (ICB). Contracts estimated to cost less than US$300,000 equivalent may be procured through NCB. Goods estimated to cost less than US$50,000 equivalent per contract may be procured through shopping procedures. For shopping, the condition of contract award shall be the same process as describe above for procurement of Works. 10. Selection of Consultants: The project will finance Consultant Services such as surveys, technical and financial audits, technical assistance, activities under the institutional strengthening component, engineering designs and supervision of works, trainers and workshops facilitators. Consultant firms will be selected through the following methods: (i) Quality and Cost Based Selection (QCBS); (ii) selection based on the Consultant’s Qualification (CQS) for contracts which amounts are less than US$50,000 equivalent and are relative to exceptional studies and researches which require a rare and strong expertise; (iii) Least Cost Selection (LCS) for standard tasks such as insurances and, financial and technical audits ; and (iv) Single Source Selection (SSS), with prior agreement of IDA, for services in accordance with the paragraph 3.9 of Consultant Guidelines. Individual Consultant (IC) will be hired in accordance with paragraphs 5.1 to 5.4 of World Bank Guidelines. Sole source may be used only with prior review of the World Bank. 11. Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines, if a sufficient number of qualified individuals or firms are available. However, if foreign firms express interest, they would not be excluded from consideration. 12. Sub-projects procurement: Some of the classrooms will be built using a CDD approach through which the procurement and management of contracts are delegated by MEPSA to local communities; the contracts will be awarded on the basis of the simplified procedures judged acceptable to the World Bank in the Project Financial and Accounting Manual. The PCU through his decentralized Agencies will be responsible for the compliance with the procedures agreed. 13. Procurement of consulting services other than consulting services covered by consultant Guidelines: Least Cost Selection (LCS) or shopping will be used. 14. Training, Workshops, Study Tours, and Conferences: The training (including training material and support), workshops, conference attendance and study tours, will be carried out on the basis of approved annual training and similar activities plan. A detailed training or workshop plan giving nature of training/workshop, number of trainees/participants, duration, staff months, timing and estimated cost will be submitted to IDA for review and approval prior to initiating the process. The appropriate methods of selection will be derived from the detailed schedule. After the training, the beneficiaries will be requested to submit a brief report indicating which skills have been acquired and how these skills will contribute to enhance his performance and contribute to the attainment of the project objective. 72 15. Operational Costs: Operating costs financed by the Project are incremental expenses, including office supplies, vehicles operation and maintenance, maintenance of equipment, communication costs, rental expenses, utilities expenses, consumables, transport and accommodation, per diem, supervision costs and salaries of locally contracted staff. They will be procured using the procurement procedures specified in the Project Financial and Accounting Manual. Assessment of the Agencies Capacity to Implement Procurement 16. The World Bank’s Procurement Specialist based in the Togo Country Office assessed the capacity of the Ministry of Primary and Secondary Education and Literacy (MEPSA). The assessment reviewed the organizational structure for implementing the project and the interaction between the project’s staff that will be responsible for procurement (procurement officer) and other entities concerned by Project’s components implementation. The assessment showed that the MEPSA have a long experience in procurement, but not with World Bank’s procurement procedures; there is no a procurement specialist in the Ministry. The assessment also showed that the national procurement procedures are being reviewed and there is no bidding documents, procurement manual, and procurement rules currently used at the National level acceptable to the World Bank; hence, no special exception may be stipulated in the Financing Agreement regarding compliance with IDA Guidelines, which override national regulations. 17. The main issues/risks concerning the procurement for implementation of the project identified are lack of (i) procurement specialist to handle the project procurement activities, (ii) procurement planning; (iii) contract awards advertisement; (iv) independent mechanism to handle bidders’ complaints; (v) internal control; and (vi) appropriate record keeping. The Ministry is not using the post-qualification system for goods and works bids evaluation; he uses the merit (points) system which is arbitrary and not economic. 18. The measures agreed upon to strengthen the framework of procurement within the MEPSA are: (i) strengthening, through specific training and learning-by-doing, the procurement capacity of procurement officers; (ii) recruit a procurement consultant and nominate an civil servant as a procurement officer of the project; (iii) set-up an internal control through the Project Financial and Accounting Manual; and (iv) use of World Bank Procurement Guidelines and standard bidding documents for international competitions and use other World Bank’s approved documents for national competitions. The Table A8.1 summarizes the project preparation actions plan: Table A8.1: Summary of Project preparation actions plan Task Completion Responsibility Submit to the World Bank an acceptable procurement plan of the first 12 Before Negotiations SG months of project implementation Nominate a civil servant of MEPSA as project procurement officer after Before negotiations SG agreement with the World Bank on the profile (qualifications). Recruitment of a procurement consultant Before effectiveness SG Procurement training for all implementation entities that will be involved in Within the end of the first SG procurement process year of implementation Preparation of Project Financial and Accounting Manual Before effectiveness SG 73 19. Based on the procurement capacity assessment, and on the experience on the ground, the overall project procurement risk is rated Average. 20. Procurement Implementation Arrangements. For project implementation purpose, Government and the World Bank agreed to use three levels of procurement implementation entities: the central level with MEPSA Project Coordination Unit, the urban level with Contract Management Agency and the rural level with grassroots Communities. 21. Procurement by MEPSA: The Project Coordination Unit (PCU) through the Procurement Specialist (PS) and the nominated civil servant procurement officer will be responsible for the coordination of all procurement activities. To strengthen the capacity of MEPSA, the Procurement Specialist will work together with the procurement officer. 22. Procurement by Contract Management Agency (CMA): The World Bank agreed with the Government to delegate the constructions of classrooms in urban areas and teachers’ training centers and their supervisions to Contract Management Agency (CMA). A contract will be signed between the MEPSA and the CMA. 23. Procurement by Communities: The procurement activities at Community level will concern essentially the construction and equipment of classrooms. The school committees (COGEP) will carry out the implementation of procurement under the supervision of DRE through the decentralized staff of the PCU. Prior to disbursement to the communities, they will receive systematically the required basic procurement and disbursement trainings. For the implementation of this CDD approach, the MEPSA will benefit from the support of the IDA financed current CDD project (PDC) management and will use simplified procedures and materials of this project agreed by the World Bank. 24. Procurement Plan. The Government developed a Procurement Plan for project implementation, which provides the procurement methods for each contract. The plan covers the first eighteen months of project implementation. This plan will be agreed between the Borrower and IDA Project Team during the negotiations and will be available at the Ministry of Primary and Secondary Education and Literacy (MEPSA); it will also be available in the Project’s database and in the World Bank’s external website. The Procurement Plan will be updated in agreement with the World Bank at least annually in conjunction with an updated Project Annual work program or to reflect an action plan following improvements in institutional capacity. All procurement will be carried out in accordance with the original or formally updated agreed procurement plan. 25. Fraud, Coercion, and Corruption. All procuring entities and staff, as well as Project Implementation Agencies, Borrower, bidders, suppliers, and contractors shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with paragraph 1.14 of the Procurement Guidelines and paragraph 1.22 of the Consultants Guidelines. 26. Frequency of procurement supervision missions and Audits. In addition to the prior review to be carried out from World Bank offices, the capacity assessment of the procurement activities has recommended supervision every six months and at least one World Bank annual Post Procurement Review (PPR); the ratio of post review will be at least 1 to 5 contracts. The Independent Post Review could be conducted through a consultant selected by the World Bank. 74 The project implementation agency shall send to the World Bank, every six month, the project procurement management report with details on implementation progress, problems and solutions proposed. A technical audit will also be carried out once a year during the project implementation, to report on the procurement process, contract management, fiduciary compliance, and the quality of the works and goods provided. Attachment 1: Details of the Procurement Arrangement involving international competition 1. Works, Goods, and non consulting services. (a) List of contract Packages which will be procured following ICB and Direct contracting: Goods 1 2 3 4 5 6 7 8 9 10 Ref Estimated Expected Estimated Pre Domestic Prior . Procureme Bids Contract DESCRIPTION Amount qualification preference Review Comments No. nt Method opening/clos Signature (US$) (yes/no) (yes/no) (yes/no) ing Date Date School Furniture 1 in 2011/12 192,544 ICB No No Yes 12/19/2011 04/02/2012 delegated to CMA 2 Textbooks 5,388,214 ICB No No Yes 01/19/2011 05/19/2011 (b) Prior review: all contracts of works estimated to cost above US$3,000,000, all contracts of goods estimated to cost above US$300,000 and the first two (2) contracts of each procurement method, irrespective of the amount, will be subject to IDA prior review as determined mandatory in paragraphs 2 and 3 of Annex 1 of the World Bank’s procurement Guidelines. (c) Post review: for each contract not submitted to the prior review, the procurement documents will be submitted to IDA post review in accordance with the provisions of paragraph 4 of Annex 1 of the World Bank’s procurement Guidelines. The post review will be based on a ratio of at least 1 to 5 contracts. 2. Consulting Services. (a) List of Consulting Assignments with short-list of international firms. 1 2 3 4 5 6 7 8 Amount Prior Ref Selection Estimated Estimated DESCRIPTION ESTIMAT. Review Comments No Method Bid Opening contract (US$ 000) (Yes/No) Date signing date Survey and monitoring of the civil works 1 71,238 QCBS Yes 11/30/2010 5/14/2011 ….. by CMA in 2010/11 (urban schools) Survey and monitoring of the civil works 2 124,668 QCBS Yes 8/16/2011 1/28/2012 ….. by CMA in 2011/12 (urban schools) Survey and monitoring of the civil works 3 by CMA in 2011/12 (teacher training 80,640 QCBS Yes 1/14/2011 6/28/2011 ….. institutes) 75 (b) Prior review: (i) each contract estimated to cost more than US$200,000 per contract for Firms ; (ii) all single source selection; (iii) the first two (2) contracts of each selection method irrespective of the amount ; (iv) all training; (v) all terms of reference of contracts that estimate cost is greater than US$10,000, and (vi) all amendments of contracts raising the initial contract value by more than 15 percent of original amount or above the prior review thresholds will be subject to IDA prior review mandatory in paragraphs 2 and 3 of Annex 1 of the World Bank’s Consultants selection Guidelines. For individual consultants, each contract estimated to cost more than US$100,000 will be subject to IDA prior review; in addition, the prior review of contract under this threshold will be determined on procurement plan on case-by- case basis. (c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. (d) Post review: For each contracts for services not submitted to the prior review, the procurement documents will be submitted to IDA post review in accordance with the provisions of paragraph 4 of Annex 1 of the World Bank’s Consultant Selection Guidelines. The post review will be based on a ratio of at leas t 1 to 5 contracts. 76 Annex 9: Economic and Financial Analysis Togo EFA-FTI Catalytic Fund Grant 1. Macro-economic context is getting better but is still severely constrained . Public resources for education sector depends on four main factors: (i) the global wealth of the country, represented by the Gross Domestic Product (GDP), (ii) the capacity of the State to generate Government resources from tax and non tax revenues, expressed as government resources in % of GDP, (iii) the external aid and (iv) the budget priority given to education sector. Table A9.1: Macro-economic indicators and budget priority for education, 1995-2007 1995 2000 2006 2007 GDP (billions CFAF) Current prices 602.2 871.9 1145.6 1194.9 2007 Constant prices 817.4 1 010.9 1 175.8 1 194.9 Government resources (billions FCFA) Current prices 105.2 120.9 189.4 214.5 2007 constant prices 142.8 140.2 194.4 214.5 As a % of GDP 17.5 13.9 16.5 18.0 From Domestic resources As a % of GDP 16.0 13.4 15.9 16.9 From external resources As a % of GDP 1.48 0.49 0.61 1.05 Expenditure on education Recurrent expenditure on education (2007 constant billions CFAF) 33.8 40.5 38.2 44.1 Capital expenditure on education (2007 constant billions CFAF) 1.9 4.9 5.2 1.7 From Domestic financing 0.7 0.6 2.7 1.7 From external financing 1.2 4.3 2.5 0.0 Total expenditure on education (2007 constant billions FCFA) 35.7 45.3 43.3 45.8 Recurrent education expenditure as a % of total recurrent expenditure (exluding debt service) 24.5 28.6 25.2 27.8 Recurrent education expenditure as a % of domestic revenues 25.9 29.9 20.4 21.8 Recurrent education expenditure as a % of GDP 4.1 4.0 3.2 3.7 Total education expenditure as a % of GDP 4.2 4.1 3.5 3.8 Source : Education Sector Plan 2. In real terms (constant 2007 CFAF) GDP has grown up from 817 billion in 1995 to 1 195 billions in 2007, representing an average annual growth rate of 3.2%. Due to a similar growth rate of the population, the GDP per capita (in real terms) is the same in 2007 as in 1995. In 2007 it is estimated to be around 197 000 FCFA per capita. 3. Government resources grew up (in constant 2007 prices) from 143 CFAF billion in 1995 to 214 CFAF billions in 2007. On average it corresponds to a 3.4% annual growth rate over the period. 77 4. Nevertheless, the fiscal space in Togo is still low compared to other African countries: government resources (excluding grants) equals 16.9% of GDP while the African median53 is 19.6% of GDP. The budget constraint is then tighter in Togo than in an average African country. 5. External aid received by Togo is very low compared to other African countries. Togo still suffers from a lack of external financing. During the 2004-2006 period, the external aid accounted for only 3.8% of GDP, to be compared to an average of 10% of GDP in Africa. Togo is one of the less aided countries on the continent (see Figure A8.1 below). Figure A8.1: External aid as % of GDP, 2004-2006 average 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Guinea Comoros Nigeria Liberia Eritrea Lesotho Gambia Zambia Benin Ethiopia Burundi Namibia Cameroon Ghana Mauritania Swaziland Niger C. Verde Tanzania Zimb Kenya Moz Congo Rwanda DRC Average Chad BF Malawi C. Ivoire G Bissau Senegal Uganda Sudan Madag CAR Togo Mali SL Source : OECD, DAC data 6. There is a clear budget priority for education. During the 1995-2007 period, total expenditure for education increased (in constant 2007 prices) from 35.7 to 45.8 CFAF billion, which corresponds to a 2.1% average annual growth rate. Expenditure in education is mainly recurrent spending; in 2007, capital expenditure was only 1.7 CFAF billion while recurrent expenditure was 44.1 CFAF billion. 7. Budget priority for education is high comparatively to other African countries. In 2007, recurrent education expenditure represented 21.8% of domestic revenues, to be compared to 18% on average in African countries. Expressed as a % of total government recurrent expenditure (debt service excluded), education represents 27.8% in Togo, to be compared to an African average of 20.4%. 8. Households are still asked to contribute a lot to sector financing. In 2006, before the school fee abolition that started in 2008/09, households were financing on average 35.6% of the cost of education (and the share was 45% in primary education). No data is yet available for the 53 Regarding this indicator, the median is more appropriate than the average due to the presence of oil-revenue countries that skew upwards the African average 78 period after school fee abolition but it is very likely that household financing still remain high because (i) the Government subsidies for compensating the fee abolition do not go to EDIL (community) schools and (ii) the school fee abolition only regards only pre-school and primary education. 9. Spending distribution by level of schooling is in line with the development needs . Recurrent expenditure (2007) is split by level of education as shown in the Table A9.2. The share for primary education (39%) is a bit lower than both the African average (44%) and the EFA-FTI reference benchmark (50%). Nevertheless, due to a share for education in the budget higher than the FTI reference (28% in Togo compared to 20% in the EFA-FTI indicative framework), primary education receives 10.9% of total recurrent expenditure, which is higher than what is recommended in the indicative framework (10% = 50% x 20%). Additionally, the fact that lower secondary education is more advanced in Togo than on average in Africa (Gross enrolment ratio of 60% in Togo versus 50% for the African average) legitimates for a higher share of expenditure allocated to secondary education. Table A9.2: Distribution of recurrent expenditure by level of education, in %, 2007 Level of education % of recurrent expenditure Pre-primary 1% Primary 39% Secondary 32% TVET 8% Higher 20% Source : Education Sector Plan 10. Recurrent public spending per pupil (unit cost) are comparatively low in post- primary levels. The public spending per pupil in Togo is similar to African average in primary education but significantly lower than African average in secondary, TEVET and higher education (see Table A9.3). It is noteworthy that higher education public unit cost decreased from 2.15 per capita GDP in 1999 to 1.3 per capita GDP in 2007 due to an important student enrolment increase not compensated by resources increase. Table A9.3: International comparison of public recurrent unit cost, by level (expressed as % of per capita GDP), 2007 African Ratio Togo 1999 Togo 2007 Average Togo/African (2007 or LYA) average 2007 Primary 11% 10% 11% 0.91 Lower Secondary 23% 29% 0.79 24% Upper Secondary 28% 57% 0.49 TVET N/A 61% 94% 0.65 Higher 215% 131% 314% 0.42 Source: Light Education CSR 2007, Education Sector Plan and World Bank data 79 11. Recurrent expenditure is not enough allocated towards pedagogical material . The share of spending for teaching material is very low in Togo, at all levels of education (see Table A9.4). In primary education, 95% of recurrent expenditure is allocated to salaries (of which 83% for personal salaries in public schools and 12% for teachers’ salaries in confessional private schools through a subvention to those schools). Recurrent expenditure other than teachers’ salaries is only 10% in Togo, much lower than the EFA-FTI reference benchmark (33%). 12. In particular very few resources go to the school level. Nevertheless, the education sector plan projects to increase spending other than teachers’ salaries and targets 23% in 2020, in order to have more spending towards quality improvement. Table A9.4: Distribution of expenditure by type and level of education, in %, 2007 Teachers Other salaries Material Transfers Total salaries Primary 89.6 5.3 5.1 0.0 100.0 Lower Secondary 84.2 10.0 5.9 0.0 100.0 Upper Secondary 80.3 14.1 5.6 0.0 100.0 TVET 47.6 33.8 12.1 6.4 100.0 Higher 38.8 24.7 36.5 100.0 Source: Education Sector Plan 80 Annex 10: Safeguard policy issues Togo EFA-FTI Catalytic Fund Grant 1. The project has triggered OP 4.01 Environmental Assessment and OP 4.12 Involuntary Resettlement due to potential negative environmental and social impacts related to the construction of schools. The environmental screening category is B. 2. OP 4.01 Environmental Assessment. OP 4.01 was triggered due to the construction of schools to be funded under the EFA-FTI project. To address the potential negative environmental and social impacts, Government (MEPSA) prepared an Environmental and Social Management Framework – ESMF (Cadre de Gestion Environnementale et Sociale - CGES). The ESMF was cleared by the World Bank Environment and Natural Resources Management (AFTEN) Department on October, 26, 2009. 3. The implementation of the ESMF will take into account the safeguard policies of the World Bank and will be in compliance with environmental laws of Togo for each subproject. The ESMF also determines the institutional arrangements for implementing the program, including those relating to capacity building. The strengthening of environmental and social management for the EFA-FTI project will achieve the following five specific objectives (i) identification of environmental impacts and social impacts arising from subprojects (ii) implementation of proposed mitigation measures, (iii) follow-thru the implementation of mitigation measures, (iv) capacity building, and (v) estimation of environmental and social costs. 4. The institutional arrangement has been simplified (based on field experience) to be operational. It puts forward the DPEE as responsible for implementing the Master ESMF and, the Environment Department (Direction de l’Environnement -DE) as a delegated manager of the process for environmental management of subprojects. This will lead to optimal building capacity of all actors involved and saves cost. 5. OP 4.12 Involuntary Resettlement. OP 4.12 was triggered due to the potential need for land acquisition which might lead to the loss of assets, loss of shelter, loss of access to economic assets or loss of livelihood. To address potential negative social impacts due to land acquisition, Government (MEPSA) prepared a Resettlement Policy Framework – RPF (Cadre Politique de Recasement des Populations – CPRP) to provide guidelines for remediating to inconveniences which may occur in case of land acquiring or temporary damage to private goods or source of revenues. The RPF was cleared by the World Bank Africa Safeguards Policies Enhancement Department (ASPEN) Department on October, 27, 2009. The RPF presents the general principles that will guide all resettlement operation in the context of the EFA-FTI project. If a sub-project requires one or more resettlement operations, the basic structure will develop the Resettlement Action Plan (RAP) in a partnership with the relevant institutions. The four steps of this plan are: (i) providing information for the local communities, (ii) defining the sub-project, (iii) in case of need, defining a RAP and (iv) approval of the RAP by the local organs and the institution in charge of the financing. The expropriation procedures includes: a request in expropriation, plan of expropriation and a decree setting the content, estate 81 investigation; declaration of public utility. The table A10.1 indicates the institutional actors in charge of the implementation of the expropriation. Table A10.1: Responsibilities regarding expropriation Institutional Actors Responsibilities STP/ DPEE  Diffusion of the RPF  National supervision of the resettlement Management of the resettlement fund  Payment of indemnities  Financing of sub-projects for rural and urban communities Approval Committees  Approval and Diffusion of RAP and summary RAP  Supervision of the process  Work in close cooperation with the communities or other execution bodies  Assistance to Community Organizations and the CVD/ COGEP DRE  Appointing Social Experts in charge of the RAP implementation coordination Regional  Appointment of Consultants to carry out the RAP and the follow-up and Coordination evaluation (CR-DRE)  Supervision of the compensations for the affected people  Follow-up of the procedure of expropriation and compensation  Submission of the reports of activities to the DPEE Traditional Chiefs  Recording of the complaints and claims  Identification and release of the sites which were to be subject of expropriation  Follow-up of the resettlement and compensations Village Community (CVD)  Diffusion of RAP and PSR  Treatment according to the procedure of conflicts settlement  Participation in the proximity follow-up. 6. The main text constituting the land tenure system in Togo rests on the ordinance N° 12 of February 6, 1974. The acquisition or the expropriation of the land necessary for the execution of public utility declared operations is governed by decree n° 45-2016 of September 1, 1945 which enforcement remains null and void. According to text on land property in Togo, any land owner must place at disposal for the State at the time of the allotment 50% of land for social works (road, schools, health centers). The State can place the expropriate land out at disposal of a local authority or a private person who must carry out the works of public interest operations. The expropriation of the land is the subject of the respect of a very rigorous procedure with the aim is to guarantee the rights of the expropriated people in the administrative as well as in the legal phase. 7. Despite a lot of concordances, the Togolese regulation (procedures and practices) in terms of involuntary displacement and the World Bank provisions of the OP 4.12 show discrepancies on: (i) criteria of eligibility and the categories of impact giving right to a compensation; (ii) the definition of the damage incurred; (iii) compensation alternatives; (iv) deadlines for compensation, (v) resettlement costs, economic rehabilitation and (vi) the follow-up and evaluation. Each time there is a difference between the two procedures, the provisions of the OP 4.12 will be applied. 82 8. The key stakeholders regarding safeguard policies are: - MEPSA (Project Coordination Unit, Direction of Education Planning and Evaluation, Environment Department, and Regional Directorates) - Local communities, towns and villages; - School Committees (COGEP); - Local NGOs ; - Construction Contractors; and - Supervising Architects/Consultants. 9. The best method of consultation and disclosure on safeguard policies is to hold a stakeholders meeting with the communities (Project Affected Persons) at the sites before the commencement of the project activities. As the sites have yet to be selected, it is not possible at this time to hold consultations with project affected persons although general consultations were held within the Ministry of Education and with NGOs. 10. The Project Coordination Unit includes a Communities/Grassroot Training Coordinator in charge of organizing the training of the school committees and communities where schools will be built. This training will include disclosure on safeguard policies and potential remedial actions to be taken, in line with ESMF and RPF recommendations. 83 Annex 11: Project Preparation and Supervision Togo EFA-FTI Catalytic Fund Planned Actual PCN review June 11, 2009 June 11, 2009 Decision meeting January 28, 2010 February 3, 2010 EFA-FTI CF Board approval May 7, 2010 May 7, 2010 Negotiations July 7-8, 2010 July 8, 2010 Signature October 29, 2010 October, 29, 2010 Planned date of effectiveness January 10, 2011 Planned date of mid-term review July 10, 2012 Closing date May 1, 2014 Key institutions responsible for preparation of the project:  Ministries of (i) Primary and Secondary Education and Literacy, (ii) Technical education and vocational training, (iii) Higher Education and Research, (iv) Economy and Finance, (v) Planning, Cooperation and Development and (vi) Social Affairs, Women empowering and protection of children and elderly.  Agence Française de Développement (Coordinating Agency)  UNICEF  UNESCO-Pôle de Dakar Reviewers: CN Stage: Rachidi Radji (Lead Human Development Specialist, AFTED); Marcelo Becerra (Sr. Education Economist, LCSHE); Shobhana Sosale (Sr. Operations officer, AFTED); Kouassi Soman (Sr. Operations Officer, EFA-FTI Secretariat);Warren Waters (Regional Environmental and Safeguards Advisor, AFTQK); Svetlana Khvostova (Information Specialist, AFTQK); Nathalie Lahire (Education Economist, AFTED); William Experton (Lead Education Economist, AFTED); Linda English (Sr. Education Specialist, EFA-FTI Secretariat) and Peter Ngomba (Sr. Education Specialist, AFTED). PAD Stage: Olav Rex Christensen (Sr. Education Specialist, HDNED); Susan Opper (Sr. Education Specialist, SASHD); Peter Holland (Education Specialist, LCSHE); Anna Victoria Gyllerup (Sr. Operations Officer, AFTRL); Dung-Kim Pham (Operations Officer, AFTED) ; Cristina Santos (Sr. Education Specialist, AFTED) ; Kara Suter (Consultant) ; Michael Drabble (Sr. Education Specialist, LCSHE) and Ayesha Vawda (Sr. Education Specialist, MNSHE). World Bank staff and consultants who worked on the Project included: Name Title Unit Mathieu Brossard Sr. Education Economist, TTL AFTED Yacinthe Gbayé Education Economist AFTED Cherif Diallo Sr. Education Specialist AFTED Kokou Amelewonou Extended Term Consultant AFTED Itchi Gnon Ayindo Sr. Procurement Specialist AFTPC Alain Hinkati Financial Management Specialist AFTFM 84 Olav Rex Christensen Sr. Education Specialist HDNED Africa Eshogba Olojoba Sr. Environmental Specialist AFTEN Abdoul-Wahab Seyni Sr. Social Development Specialist AFTCS Serge Theunynck Consultant, Civil works AFTED Alexandra Tran Consultant, Civil works AFTED Youmna Sfeir Extended Term Consultant AFTED Peter Materu Lead Education Specialist AFTED Andy Tembon Coordinator AFTHE Anthony Molle Counsel LEGAF Daria Goldstein Senior Counsel LEGAF Said Hanafy Extended Term Consultant LEGAF Franco Russo Operations Analyst AFTED Danièle Jaekel Operations Analyst AFTHE Cornelia Jesse Operations Officer AFTED Jee-Peng Tan Adviser HDNED Giuseppe Zampaglione Sr. Operations Officer AFTSP Mohamed Diaw Information Assistant CFPPM Norosoa Andrianaivo Language Program Assistant AFTED Chantal Leontine Tiko Program Assistant AFMTG Jean-Claude Hameidat Consultant, Education AFTED Nebghouha Mint Vall Consultant, Capacity-building AFTED Mamadou Ndoye Consultant, Education AFTED Michael Wilson Consultant, Education AFTED Koffi Segniagbeto Consultant, Statistics AFTED World Bank funds expended to date on project preparation: 1. World Bank resources: US$15,000 2. Trust funds: US$279,720 3. Total: US$294,720 Estimated Approval and Supervision costs: 1. Remaining costs to approval: US$20,000 2. Estimated annual supervision cost: US$150,000 85 Annex 12: Documents in the Project File Togo EFA-FTI Catalytic Fund Grant (i) World Bank Documents Project Documents Aides Memoires Project Concept Note Project Concept Note Review Quality Enhancement Review Project Appraisal Document Integrated Safeguard Data Sheet Project Preparation Facility Other World Bank and Consultant Documents World Bank (2009): Aligning skills development and development and competitiveness in Togo; Working paper World Bank (2009): La Zone franche Togolaise; Working paper (draft) World Bank (2009): Revue des dépenses publiques et de la responsabilité financière de l’Etat Volume 1 rapport principal in partnership with AfDB and EU. World Bank : Stratégie de facilitation du transport et du commerce pour faciliter la croissance économique 2009 ; rapport technique de base préparé dans le cadre du mémorandum économique du pays, version provisoire (ii) Togo Government Documents MEPSA (2005) : Plan national d’action de l’éducation pour tous MEPSA (2008) : Plan stratégique sectoriel de lutte contre les IST et le VIH/SIDA MEPSA (2009) : Cadre de gestion environnemental et social MEPSA (2009) : Cadre politique de recasement des populations METFP (2006) : Plan stratégique sectoriel de lutte contre les IST et le VIH/SIDA Ministère du secteur de l’éducation (2009) : Plan sectoriel de l’éducation République du Togo (2009): Document de stratégie de réduction de la pauvreté 2009-2011 République du Togo (2009) : Lettre de politique sectorielle de l’éducation Ministère du secteur de l’éducation/BM (2002) : Rapport d’Etat du système éducatif national (RESEN) Ministère du secteur de l’éducation/Pole de Dakar (2007) : Mise à jour du RESEN Ministère du secteur de l’éducation/AFD/BM (2008) : Note pour la définition d’un programme national de développement des activités en faveur de la petite enfance au Togo d’ici l’année 2020 Ministère du secteur de l’éducation/AFD/BM (2008) : Note pour la définition du cadre de développement de l’alphabétisation au Togo d’ici l’année 2020 86 Ministère du secteur de l’éducation/AFD/BM (2008) : Note pour la définition du cadre de développement de l’enseignement technique et de la formation professionnelle au Togo d’ici l’année 2020 Ministère du secteur de l’éducation/AFD/BM (2008) : Note pour la définition d’un cadre de politique éducative pour l’enseignement supérieur au Togo d’ici l’année 2020 Ministère du secteur de l’éducation/AFD/BM (2008) : Note pour la définition d’un cadre de politique sectorielle d’éducation au Togo (iii)Development Partners PNUD: Les sources de la croissance et le climat des investissements ; document de travail pour la préparation du DSRP UN, Department of Economic and Social Affairs: Togo Population profile 2007 and 2008 UN, Department of Economic and Social Affairs: World Urbanization Prospects The 2007 revision; revised May 2008 87 Annex 13: Statement of Loans and Credits Togo EFA-FTI Catalytic Fund Grant Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d P111064 2009 TG:Financial Sector and Governance Proj 0.00 12.00 0.00 0.00 0.00 8.98 -3.20 0.00 P113415 2009 TG:Emergency Infra.Rehab. & Energy Proj. 0.00 25.00 0.00 0.00 0.00 20.74 -2.55 0.00 P110943 2008 TG-Community Dev. Project ERL (FY08) 0.00 25.90 0.00 0.00 0.00 15.54 -0.47 0.00 Total: 0.00 62.90 0.00 0.00 0.00 45.26 - 6.22 0.00 TOGO STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. Total portfolio: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. Total pending commitment: 0.00 0.00 0.00 0.00 88 Annex 14: Country at a Glance Togo EFA-FTI Catalytic Fund Grant 89 90 Annex 15: Map Togo EFA-FTI Catalytic Fund Grant 91 Additional Annex 16: Summary of the MEPSA School building strategy Togo EFA-FTI Catalytic Fund Grant (Translated from French) 1. Togo aims to achieve Universal Primary Education by 2020. It also intends to improve quality and lower the student-teacher ratio to the level recommended by the Fast Track Initiative indicative framework (1 teacher for 40 students). In order to achieve these goals, there is a need for adding an average of 1060 new classrooms each year. The EFA-FTI project will be used to create 815 new classrooms over the next three years. Given the large volume of new school buildings planned under the FTI and the need for even more classrooms to meet the goal of Universal Primary Education, a new cost-effective and field-relevant strategy for school construction has been developed to enhance and build capacity within the MEPSA for achieving these objectives. 2. During the preparation of the EFA- FTI Catalytic Fund project, the World Bank supported the MEPSA in the development of its school construction strategy. An initial support mission led by Serge Theunynck, senior expert on infrastructure, was conducted from May 11 to 16, 2009. The aim of the mission was to assist the MEPSA in defining the strategy for its school construction program. This was followed by a MEPSA delegation study mission to Benin with the aim of learning and drawing inspiration from the experience of the National Community Driven Development Project or «Projet National d’appui au Développement Conduit par la Communauté» (PNDCC). These two missions made it possible to assess and identify both the strengths and the shortcomings of the situation in Togo. LESSONS LEARNED 3. The MEPSA has built no primary schools itself over the past four years (2006-2009). Construction work was limited to 271 secondary school classrooms, or approximately 72 classrooms per year. 4. The challenge for the MEPSA is to become a major actor in its primary school construction program. Taking into account its experience in secondary education, the rate of construction for the future primary school program will correspond to four times that currently accomplished by the MEPSA. To meet the technical and financial challenge of how best to scale-up at the lowest cost the MEPSA will need to adopt a cost-effective strategy to achieve the largest possible number of constructions given the resources available. 5. The Technical and Financial Partners’ (TFP) experience in this respect is valuable. Using three different approaches, they have built around 2000 primary school classrooms over the period 2006-2009 (see table A16.1): - The IsDB completed a 300-classroom program in 2009 using a National Competitive Bidding (NCB) process; - The AFD (MEPSA’s bilateral TFP) was responsible for 12% of total constructions, through a delegation of contract management to an execution agency (AGETUR); 92 - The other two multilateral TFPs (UNICEF and EU) carried out 18% of total constructions between 2006 and 2009. To do so, they employed a very economical community approach. Table A16.1: Distribution of primary school classroom built by Institutions/Projects: Project Year Cumulative 2006-2009 2006 2007 2008 2009 Total % Avg/year Government’s building projects 0 0% 0 1 Government domestic resources 0 0 0 0 Bilateral donors building projects 233 12% 58 AFD – ANST (Delegation to Ex. Agency) 3 100 133 233 58 AFD – EPTT (Delegation to Ex. Agency and to NGO) 3 Multi-lateral donors building projects 366 18% 92 4 UNICEF 33 33 8 5 IsDB (Islamic Development Bank) 300 300 75 3 EU (Project Adyse with NGO Aide et Action) 33 33 8 NGOs building projects 165 8% 41 3 Plan Togo 54 66 27 18 165 41 Multi-sectoral projects 1,224 62% 306 2 World Bank- PURP 54 54 54 54 216 54 3 EU- PPMR 252 252 252 252 1,008 252 Total 460 538 366 624 1,988 100% 497 1 Government has only built secondary schools during 2006-2009 (Source MEPSA 2009) 2 Source PDC, 3 Source AFD, 4 Source UNICEF, 5 Source IsDB 6. Of the three approaches, experience suggests that the community approach is by far the most cost-effective for scaling up (see Table A16.2). Table A16.2: Classroom Unit cost (per square meter –HO) according to different approaches Construction Type Cost saving compared to Improved MEPSA centralized Classroom Apatam approach Mode of delegation FCFA/m2 FCFA/m2 All taxes All taxes Improved Classroom included, included, Apatam HO HO Centralized 121,300 73,700 -5% 0% MEPSA Government Domestic Resources 115,600 73,700 0% IsDB 127,000 -10% Delegation to Execution Agency 90,700 22% AFD – ANST (Delegation to Ex. Agency) 90,700 22% Community-based 69,033 36,350 40% 51% UNICEF 60,000 48% EU (Project Adyse with NGO Aide et Action) N/A Plan Togo 70,200 World Bank- PURP N/A World Bank - PDC 36,350 51% EU- PPMR 76,900 Average of all approaches 93,678 55,025 19% 25% Sources: same as table A16.1 7. Moreover, international experience shows that taking advantage of community capacities to implement small classroom projects avoids the classical problem of limited absorption capacities. This has proved true in a wide variety of countries, such as Benin, Senegal, Mali, Guinea and Côte 93 d’Ivoire. Then, the community approach is not only the most cost effective but has proven success internationally so is the preferred approach. MAIN LINES OF THE STRATEGY 8. The MEPSA-managed school construction programs will use a single strategy. The TFPs will be encouraged to follow this strategy as their projects are completed and renewed. This strategy is detailed in the document of National Primary School Construction Strategy of the MEPSA. 9. The new strategy includes redefining previously adopted school mapping norms, construction design standards (blueprints) and planning criteria.. These will be applied uniformly throughout the territory. 10. The new school construction strategy is based on the principle of a school construction management delegation. This has the advantage of enabling the MEPSA time to concentrate on the educational tasks at the heart of its mission, while remaining in control of its school mapping and construction program. 11. There are two forms of delegation, depending upon the area: - In rural areas, the delegation of school construction management will be assigned to the communities (which we shall call the community approach). - In urban areas, the delegation of school construction management will be assigned to an execution agency. 12. The MEPSA is committed to refocus on its core functions: Within this framework, the MEPSA will be responsible for the (i) definition and review of the national construction strategy, (ii) definition and review of construction design standards, school mapping norms and planning criteria, (iii) program financing, (iv) organization and management of the contract agreement with the delegation, (v) coordination of all partners, and (vi) organization of follow-up, monitoring and evaluation. It will also be responsible for defining and monitoring g) training arrangements at grassroots level, (vii) capacity building, and (viii) communication mechanisms. GENERAL PRINCIPLES OF IMPLEMENTATION 13. The implementation strategy is based on the following general principles:  Focus by the Ministry on core functions: Definition and review of the national construction strategy, definition and revision of construction design standards, program financing, organization and management of the contract agreement with the delegation, coordination of all partners, organization of follow-up, monitoring and evaluation.  Delegation of the school construction management by the Ministry: The Ministry delegates the school construction management either to specialized agencies in urban areas or to the village communities in rural areas. 94  Empowerment of benefiting communities in implementation in rural areas.  Transparency: Due to the many actors involved, transparency is to be the guiding principle of program implementation. The principle of transparency covers all aspects, including that of the transfer and management of funds by all stakeholders involved, without exception. It also involves making all relevant technical and financial information available to the general public, including information on procurement and project management.  Control: All actors involved in the strategy, whether within the Ministry or not, will have a control function. Carried out in succession, these controls will ensure that the different stages of the strategy are correctly performed. The principles of transparency and control are closely related. Transparency ensures dissemination of the results of the controls and so their effectiveness. IMPLEMENTATION THROUGH DELEGATION OF THE SCHOOL CONSTRUCTION MANAGEMENT TO EXECUTION AGENCIES 14. The urban construction model is made up of a block of 3 or 6 classrooms, on 1 or 2 levels respectively, according to the standard plans supplied in the MEPSA’s National Primary School Construction Strategy Document. When the block is built on a single level, the structure will be designed to accommodate a possible future vertical extension. It will have a standard weatherproof flat roof. 15. In urban areas, the MEPSA will delegate the management of the construction contracts for engineering services, follow-up of work in progress, the construction work itself and the supply of furniture. These agencies will be selected on a competitive basis by the central level, i.e. by the MEPSA. 16. The execution agencies and DREs will follow the procedures and use the standard documents (plans, contracts, procurement outlines, etc.) developed by the MEPSA. 17. The Inspectorates are to be involved in following up the execution of the program projects in their area, in the same way as the relevant local authorities and the benefiting communities. IMPLEMENTATION THROUGH DELEGATION OF THE SCHOOL CONSTRUCTION MANAGEMENT TO THE COMMUNITIES 18. The architectural and technical choices for the rural construction model are based on the following four principles: pedagogical effectiveness, minimum cost, technical feasibility by small companies already established in the rural areas, and a durability of at least 30 years. 19. Construction will be implemented using a participatory and community approach in a framework of devolution. Thus, the MEPSA will delegate the school construction management to the beneficiary communities who will implement and manage their school construction projects. These communities will be supported, monitored and controlled by different types of actors directly from the MEPSA or recruited by the MEPSA. 95 20. Transfer of responsibility from the MEPSA to the communities will be made by way of Financing Agreements signed by the Inspectorate and each community concerned. 21. The COGEP (School Committee) is the most appropriate entity for assuming the missions delegated to the community. The responsibilities to be assigned to this entity are the: (i) implementation and management of school construction projects, (ii) setting up of a strategy for the mobilization of resources for managing and maintaining school buildings and equipment, and (iii) participation in the follow-up and evaluation system of the school construction projects as relevant. The structure of the COGEP will be modified on account of its new responsibilities; this entity will be called upon to include members of the Parent-Teacher Association and of the Village Development Committee (CVD), as well as a representative of the traditional authorities. 22. In order to receive the grant payments for the school construction program, the COGEP must open a bank account. This account should be opened in a bank or a microfinance institution that is acceptable to the MEPSA. 23. The community, represented by the COGEP, will set up a four-person technical committee for the school construction management, in order to facilitate implementation of the construction project. It will be mandated to: (i) advertise procurement notification and organize bid evaluation sessions, (ii) prepare the contracts for signature by the COGEP representative, (iii) keep a close follow-up on the progress of work by the sub-contractors, (iv) prepare the necessary documents to enable the COGEP make the contract payments, and (v) prepare the sessions to acknowledge completion of works and delivery of supplies. This committee should take the gender aspect into account and could also include someone living with a handicap, should the case arise. 24. The community approach is a three-way approach, implemented through: (i) management training at grassroots level, (ii) a follow-up and control mechanism, (iii) and a far-reaching communication and transparency mechanism. 25. In this process, the MEPSA is responsible for running and generally coordinating the program as a whole. The MEPSA will exercise its responsibilities through the DPEE, the DREs and the Inspectorates. 26. The management training and support mechanisms provide the communities with initial capacity building and the necessary support during implementation to enable them acquire full capacity to manage the construction work through hands-on experience. Capacity development will be required at grassroots level for the following aspects: (i) procurement, (ii) financial management, (iii) communication and transparency, (iv) monitoring and control, and (v) maintenance of school buildings and equipment. 27. The follow-up mechanism is set up to ensure that the activities are correctly performed, according to the procedures already established at central level by the MEPSA. It is a way of checking that the communities are indeed managing the construction projects in compliance with the set procedures, time schedules and norms. It involves verification and acceptance procedures as well as the transmittal of information and reports. The follow-up concerns all actors involved in 96 school construction, i.e. the different administrative levels of the MEPSA and the communities. Monitoring and control will be carried out in succession as follows: - The communities will be responsible for following up on the activities of the sub- contractors (they sign a contract with a technical support contractor who certifies the work is carried out) - The Inspectorates will be responsible for following up on the activities of the communities, and on training and support activities - The DREs will be responsible for checking the application of norms and procedures, the proper use of standard documents, and the effectiveness of training and support activities at community level. - The DPEE will be responsible for checking that the accepted procedures are respected at all levels (DRE/Inspectorates/Communities) at each stage of the strategy. It will benefit from the assistance of the EFA-FTI Project Coordination Unit. - The ESP coordination bodies and the Strategic Construction Committee will be responsible for (i) checking the effectiveness and efficiency of the implementation of the program as a whole, (ii) ensuring the timely and periodical setting up of technical and financial audits, post-procurement reviews and the beneficiary satisfaction survey, and (iii) proposing, as necessary, any adjustments and/or change of direction. 28. The communication and transparency mechanism ensures that all actors are accountable for managing the funds under their responsibility vis-à-vis all the other stakeholders, the communities and public opinion. Transparency mechanisms will be set up at all levels. Transparency consists of all essential data on program operations being known by all stakeholders, including the general public. This device will ensure proper use of the funds and will constitute a means of sanction in case of failure to reach the set goals. CAPACITY BUILDING 29. The implementation of the present strategy should constitute the foundations for the MEPSA’s overall construction program for the other levels of education (pre-school, secondary, literacy). As a result, capacity building appears to be a critical factor for the MEPSA in terms of sustainability and achievement of the ESP goals. 30. In order to implement its program, the MEPSA must develop the capacities of the DPEE including: - Capacity to develop and implement a monitoring and evaluation system; - Capacity to develop and implement a training tool appropriate for a grassroots level; - Capacity to develop and implement a communication strategy. 31. The capacities of the DAF will be developed in the following areas: - Management of consultant contracts; - Management and transfer of funds to the communities; - General management of the program’s budget, involving numerous actors and decision- makers. 97 32. Support from external resources is scheduled during the initial period (2010-2013). This will take the form of a Technical Construction Unit to be set up within the Project Coordination Unit, to work in close collaboration with the DPEE and the DAF, which are both involved in the construction process. This unit will also provide support through training and ad-hoc actions and will be responsible for the (i) implementation of the «Capacity building and support to communities» component, (ii) progressive transfer of responsibilities from members of the unit to their counterparts, and (iii) training DREs and Inspectorates for their missions. To this effect, unit experts will be responsible for providing support and transferring their skills to the appropriate division. In addition, they will work closely with at least one DPEE counterpart appointed as representative to the program, by the MEPSA. OUTLINE OF RESPONSIBILITIES AND IMPLEMENTATION 33. Implementation of the new strategy, particularly for the community aspect, involves a redeployment of the responsibilities and functional connections between the different departments and divisions of the MEPSA. The organization charts and the Matrix of the Primary School Construction Strategy (see MEPSA’s National Primary School Construction Strategy Document) indicate the functional connections that exist between the different actors involved, as well as the details of their missions and tasks. 34. The Project Coordination Unit’s presence for the duration of the 2010-2013 EFA-FTI project has a provisional impact on the pattern of program responsibilities. Within the framework of the EFA- FTI project, the Project Unit, and more particularly the Accounting and Management Unit and the Technical Construction Unit, will be responsible for (i) managing the construction program funds, (ii) carrying out the construction program’s «Capacity Building » component and (iii) providing the DPEE with technical support on the other components of the construction program, i.e. «Monitoring and Evaluation», and «Communication/Transparency ». In due course, all the missions and responsibilities covered by the Project Unit will be taken over by the DPEE and the DAF. 98