ICRR 14380 Report Number : ICRR14380 IEG ICR Review Independent Evaluation Group 1. Project Data: Date Posted : 06/30/2014 Country : Bolivia Project ID : P083965 Appraisal Actual Project Name : Bo-secondary US$M ): Project Costs (US$M): 10.00 9.97 Education Transformation L/C Number : C4365 Loan/ US$M): Loan /Credit (US$M): 10.00 9.97 Sector Board : Education Cofinancing (US$M): US$M ): Cofinanciers : Board Approval Date : 10/09/2007 Closing Date : 12/31/2010 03/31/2013 Sector (s): Secondary education (79%); Primary education (12%); Sub-national government administration (9%) Theme (s): Education for all (50% - P); Decentralization (25% - S); Administrative and civil service reform (25% - S) Prepared by : Reviewed by : ICR Review Group : Coordinator : Susan Ann Caceres Judyth L. Twigg Lourdes N. Pagaran IEGPS2 2. Project Objectives and Components: a. Objectives: The appraisal document (p. ix) states that the project development objective was "to support the Municipal Government's education strategy by : increasing access to secondary education for adolescents and young people and improving their permanence in the education system; improving quality and relevance of primary and secondary education; and strengthening the decentralized education management capacity of the Municipality of La Paz." The same objective was noted in the Financing Agreement (p. 5). On April 25, 2012 during a Level 2 Restructuring, four project development objective -level indicators were revised (see Section 4). b.Were the project objectives/key associated outcome targets revised during implementation? Yes If yes, did the Board approve the revised objectives /key associated outcome targets? No c. Components: The project had three components : Access and Permanence (appraisal US$ 4.90 million; actual US$ 6.72 million) was intended to expand coverage of secondary (grades 9 through 12) and upper primary (grades 7 and 8) education to unattended areas and overcrowded urban center districts . It was to support the national strategy of prioritizing equal opportunities to marginalized children by building two schools in the peri -urban areas out of the total of four planned, which was to create new places for 7,600 students. New classroom construction in existing schools was to provide an additional 12,000 new places, if two shifts were used . An Incentive Program for at-risk students was to be established to provide pedagogical support through after -school supplementary academics. Quality of Secondary Education (appraisal US$ 3.73 million; actual US$ 2.58 million) was to improve the quality of service delivery by enhancing the learning environment in three dilapidated schools (63 classrooms) and implementing an experimental maintenance program with three options depending on the size and complexity of the civil works . It was to strengthen educational communities and social organizations to promote the participation of these schools in the design and implementation of School Improvement Plans and grants. It was also to develop training materials related to the topics of democracy, gender equity, health and sexuality, the environment, multiculturalism, and life skills . Seven Pedagogic Resource Platforms (science and computer labs) were to become a central hub for workshops and pedagogical reinforcement for at -risk students. Management and Institutional Strengthening (appraisal US$ 0.86 million; actual US 0.64 million) was to finance activities to strengthen the Municipal Office of Human Development (OMDH), such as enhancing its financial and accounting practices, revising its procurement standards, purchasing equipment /furniture, and training OMDH staff. It was to finance the adaptation of an existing monitoring and information system for the Municipality and OMDH. An impact evaluation was planned to inform the design of the Municipality's future strategy in education and determine the impact of project interventions . The component was also to support assessments of student learning progress for the Municipality to inform the government on the status of learning (twice a year for all students in their second year of secondary schooling in math and language) and provide in-service training to teachers . The components were revised at an April 2009 restructuring as follows: Component One, Access to Education : primary schools were added as beneficiaries, modifications to the at-risk program were made to reflect the hiring of experienced teachers to develop remedial courses, and the eligibility criteria of the at-risk students were changed . Component Two, Quality of Education : the scope of the school infrastructure maintenance program was refocused to develop a framework to clarify roles and responsibilities within the regular maintenance program and participation of parents, teachers, and students in the school councils (Juntas Escolares); and a post-graduate program for teachers, principals, and municipal staff was set up . d. Comments on Project Cost, Financing, Borrower Contribution, and Dates: Project Cost : Costs for component one (access) were much higher than planned (137%), while costs for component two (quality) and three (management) were lower. The ICR explains that funds were reallocated among components due to increases in the cost of construction, equipment, and furniture . Financing : The project was financed solely by a credit from the International Development Association (IDA). Borrower Contributions : The Borrower did not make any contributions, nor were any planned . Dates : Level two restructuring of the project occurred four times : (1) in April 2009 to include primary schools as beneficiaries of the infrastructure activities (to recognize that different levels of schools shared one building ); (2) in September 2009 to modify the definition of operational costs to include teacher payments for the pedagogical activities; (3) in December 2010 to revise the scope of project activities to reflect municipal realities; and (4) in April 2012 to revise four PDO-level indicators. The closing date was extended twice . The first extension was approved on December 13, 2011, which changed the date from December 31, 2010 to September 30, 2012. The second extension was approved on May 7, 2012 and changed the closing date to March 31, 2013. The ICR does not state why the extensions were needed . 3. Relevance of Objectives & Design: a. Relevance of Objectives: Substantial under both the original and revised indicators /targets . At the time of appraisal, La Paz faced a growing demand for primary and secondary education . As enrollment increased, there was accompanying overcrowding in schools and an increasing student -teacher ratio. Schools operated in several shifts. As a result of these factors, quality was low and drop -out and repetition rates were high. The Municipality's 2020-2040 Development Plan focuses on increasing access to secondary education and improving quality of education at all levels . The Plan sets education as one of the main pillars within human development, particularly at the preschool and secondary levels . At the national level, the Government also includes human development as one of its main focal areas . The Bank's Country Partnership Strategy (FY12-15) outlines the Bank's role in supporting the country's efforts to improve the coverage and quality of education services . This municipal project was consistent with the broad areas of Bank engagement described in the Partnership Strategy, such as decentralization processes and youth engagement. Thus, the objectives of the project are substantially relevant for the Government and Bank; however, the ICR (p. 7) notes that the objectives were quite broad . The objectives remained the same over the life of the project. b. Relevance of Design: Modest under both the original and revised indicators /targets . There was a logical link between the project's objectives, activities, and outcome measures in relation to access and permanence. The at-risk program was coordinated with the regular schools to permit monitoring of students' learning and provide additional support to improve their retention . Civil works emphasized marginalized areas, as well as those with unmet demand to increase access and enrollment . The results chain was less developed for the objectives of quality, relevance, and strengthening decentralized management capacity. Design did not sufficiently address these aspects . In addition, outcome measures were not adequate to demonstrate achievement of these objectives (see Section 10a for shortcomings related to indicators and the Results Framework ). The ICR (p. 4) indicates that there was a need for better definition of some sub-components and activities. The restructuring did not change the design but revised the PDO indicators, and these changes did not alter the Results Framework in a substantive way . The restructuring scaled back the project's scope and to respond to municipal and country realities (Restructuring Paper, p. 1). 4. Achievement of Objectives (Efficacy): Increase adolescents' access to secondary education : Substantial under the original indicator /targets and Substantial under the revised indicators /targets . Outputs: 145 classrooms were constructed or rehabilitated within 12 schools (including provision of furniture ), which exceeded the revised target of 137 classrooms. This created 15,840 new spaces, which met the revised target (15,840), as well as original target (12,000). The ICR suggests that the construction and equipping of schools and classrooms was done in areas with overcrowding or unmet demand, specifically in peri-urban areas or marginal urban districts . Beneficiaries reported that students' travel time decreased with the greater proximity of the schools, which created cost savings related to transportation for parents . 63 sanitary facilities were constructed, which exceeded the revised target of 49. This intermediate outcome indicator was added during the April 2012 Level 2 Restructuring. 79 administrative offices were constructed and provided with furniture and equipment, which exceeded the revised target of 73. This intermediate outcome indicator was added during the April 2012 Level 2 Restructuring. Outcomes under the original indicators /targets: The original PDO indicator was to increase the gross secondary enrollment rate from 67.7% in 2005 to 77.1%. The change in the gross secondary enrollment rate in La Paz was not reported in the ICR, even though this was a key performance indicator to measure attainment of the objective for most of the life of the project. The Restructuring Paper (p. 6) explains that the original indicator measured enrollment rates throughout La Paz even though the project focused only on some of the districts . The revised indicator was changed to an output (number of students), rather than tracking the enrollment rate in project -supported schools, as the number of inhabitants in La Paz would not be available until the 2012 census was collected and analyzed (Restructuring Paper, p. 6). In the region's reply to the draft ICR, it was reported that the secondary gross enrollment for the four grades classified as secondary at the time of project appraisal increased from 98.3% in 2005 to 121.4% in 2012, based on 2012 census data. This exceeded the target of 9.4 points improvement. The enrollment rate for the six grades of secondary, the new education structure, was not provided. Outcomes under the revised indicators /targets: A new PDO-level indicator was implemented during the April 2012 Level 2 Restructuring. Secondary education enrollment increased from 3,416 students in 2008 to 6,311 students in 2013, which exceeded the revised target of 5,383 students. Improve the permanence of adolescents in the education system : Substantial under both the original and revised indicators /targets . Outputs: Curricular adaptations in mathematics and language were carried out for years 7 and 8 in primary and 1 and 2 in secondary. 156 teachers were trained in pedagogical support related to the Incentive Program . Training was carried out related to curriculum adaptation and evaluation techniques, and teaching tools . 10,131 students in grades 1 to 4 in secondary received support in math and language, which exceeded the original target of 7,075 students and the revised target of 9,768 students. The students served by the program had low grades and were located in the most populated macro -districts. Parents felt their children benefitted from the program, based on surveys (ICR, p. 12). Students expressed more motivation to continue their studies, as their skills improved with the support . Outcomes under the original indicators /targets: The promotion rate in secondary education in La Paz increased from 79.4% in 2005 to 89.9% based on 2011 census data, meeting the original target (84.2%). The secondary education repetition rate in La Paz decreased from 12.4% in 2005 to 6.7% in 2013, which met the original target (10.7%). The primary education repetition rate decreased from 4.2% in 2007 to 3.6% in 2010 (latest year where data were available). The ICR points out that these rates are for the entire municipality, not just project -funded schools. Outcomes under the revised indicators /targets: The promotion rate in secondary education in La Paz increased from 79.4% in 2005 (or 86.2% in 2008) to 89.9% based on 2011 census data, which (nearly) met the upwardly revised target of 90.9%. The original PDO indicator and target were changed during the April 2012 Level 2 Restructuring to include grade 6, consistent with the new education law (Restructuring Paper p. 6). The secondary education repetition rate in La Paz decreased from 12.4% in 2005 to 6.7% in 2013, which did not meet the revised target of 5.7%. The ICR reports that the baseline was revised to 8.3%, based on revised data (p. iii). The Restructuring Paper (p. 6) further reports that baselines and targets were revised to include grade 6, consistent with the new education law . The Implementing Agency (ICR, p. 38) clarified that the Ministry of Education adjusted its data in 2012, which resulted in differing baseline rates at preparation, restructuring, and preparation of the ICR . The ICR points out that these rates are for the entire municipality, not just project-funded schools. Additional Outcomes specific to project -funded schools: The promotion rate in the schools reconstructed by the project increased from 82.3% to 89.6%. The ICR reports high retention among students (99.3%) in the four new schools built by the project . Improve quality and relevance of primary and secondary education : Modest under both the original and revised indicators /targets . Outputs: 33 classrooms were built and equipped with audiovisual or computer equipment, which met the target . The ICR also reports that science and computer labs, multi -purpose rooms, libraries, and recreational spaces were established in 19 schools. 1,061 teachers, administrators, and members of the school councils (Juntas Escolares ) received training in civic values, which exceeded the target of 883 persons. Teachers used participatory methods and content from the Civic Values Program. The content of the training included : gender equity, multiculturalism, health and sexuality, and emotional intelligence . 85,029 secondary school students between grades 3 and 6 became involved in civic values activities, which exceeded the target of 20,000 students. 1,564 classroom projects were prepared on civic values . 96 student dialogues were conducted and 200 school fairs were held. 503 teachers, principals, and municipal staff received diplomas in civic values and active citizenship . One Education High Performance Center was established, which met the revised target of one . The Center complemented the resources provided in schools with learning materials, computers, and libraries . 11,000 beneficiaries (teachers, students, members of the community ) used the support of the Center in relation to management and curriculum planning (ICR, p. 26). The Center was used to provide training to teachers participating in the Civic Values Program and teachers in the Incentive Program . Staff from the Center also produced educational materials to support teachers (ICR, p. 26). PISA test content (from other countries) was analyzed to examine critical skills of students . Outcomes: The ICR reports that learning skills only slightly improved in math and language for students enrolled in the Incentive Program, based on pre and post test results (pp. 10 and 13). Comparative results for math in 2011 showed a slight increase in the percentage of students reaching a level of good (from 1% to 7% for grade 1; from 2% to 3% in grade 2; from 0.1% to 4% in grade 3; and from 0.38% to 3% in grade 4) and a level of satisfactory (from 5% to 8% in grade 1; from 5% to 8% in grade 2; from 4% to 10% in grade 3; and from 3% to 6% in grade 4) (ICR, p. 13). Strengthen the decentralized education management capacity of the Municipality of La Paz : Substantial under both the original and revised indicators /targets . Outputs: 2,068 Juntas Escolares (school councils) and 191 teachers and principals in secondary schools were trained. While the ICR reports increased participation, it does not describe the results attained from the plans or increased participation of management teams . An information management and monitoring system was put in place during the first year of the project by adapting the existing information system from another project . The system monitored the project's physical and financial implementation. OMDH was equipped and strengthened through the provision of furniture and computers . A study on roles and responsibilities in school maintenance was conducted, and the roles and responsibilities were defined. Outcomes under the original indicators /targets: 113 functioning education management teams were established . 92 school improvement plans were prepared by trained school management teams, which met the target . These plans covered 183 primary, secondary, and night schools, representing 40% of the schools in La Paz. Outcomes under the revised indicators /targets: In the April 2012 Restructuring the key performance indicator was changed to "strengthen capacity for decentralized education administration ." The revised performance indicator removed language to clarify that resources are handled at the central level, rather than by school committees . It also clarified that school committees help each of the schools using the building, as they can be used by more than one school. The ICR reported that 113 education management teams were established and 92 school improvement plans were prepared, meeting the target . In follow-up visits by OMDH, it was made clear that the goods that were acquired through the improvement plans were used . The ICR (p.15) reports that "directors, teachers, parents, and students of the schools using the same building collaborated on the maintenance and care of the school premises ....to identify issues related to infrastructure, learning materials, and goods." The ICR reports more efficient administrative procedures at the municipal level . For example, the time to process project payments was reduced from 90 to 60 days. 5. Efficiency: The ICR notes an internal rate of return (IRR) of 4.5%, while the appraisal document estimated IRR to be 5.9%. The ICR explains that the difference is attributable to increased construction costs (for example, the cost per classroom increased from US$ 5,392 to US$ 7,733), which meant that the project created fewer classrooms than anticipated. Similar methods were used to calculate the rates of return in the appraisal document and the ICR. Both documents estimated benefits from age -earnings and age working probability profiles obtained from household survey data.(ICR, p. 15 and p. 28). Studies confirm that individuals completing secondary education earn more than those only with primary education . The ICR reports high construction quality and efficiencies in building supervision over the life of the project . The Implementing Agency states that the new facilities were improved in aspects such as noise, waste disposal, and handicapped accessibility (ICR, p. 40). The number of beneficiaries reached through the quality and relevance activities (i.e. Incentive Program and Civic Values ) was higher than anticipated at appraisal . The project closed more than two years later than anticipated . As noted in the Restructuring Paper 2012 (p. 2), "construction, furniture, and equipment have been more costly than anticipated due to delays in project implementation and a significant increase in the cost of materials and labor in the years following project approval. This has resulted in reduced budget for the education quality and institutional strengthening aspects of the project." Project effectiveness delays also impacted implementation, and more recently, a second series of delays took place due to new institutional arrangements and infrastructure regulations issued by La Paz in May 2010, which established a Municipal Infrastructure Office (OMI) independent from the Municipal Office of Human Development. Efficiency : Modest ERR )/Financial Rate of Return (FRR) a. If available, enter the Economic Rate of Return (ERR) FRR ) at appraisal and the re -estimated value at evaluation : re- Rate Available? Point Value Coverage/Scope* Appraisal Yes 5.9% 100% ICR estimate Yes 4.5% 100% * Refers to percent of total project cost for which ERR/FRR was calculated. 6. Outcome: Original: Relevance of objectives was substantial, while relevance of design was modest . There was substantial achievement of three objectives related to access and permanence and of adolescents in the education system and capacity strengthening, but modest achievement related to quality /relevance. Efficiency is rated modest. Revised: Relevance of objectives was substantial, while relevance of design was modest . There was substantial achievement of three objectives related to access and permanence and of adolescents in the education system and capacity strengthening, but modest achievement related to quality /relevance. Efficiency is rated modest. The overall project outcome is weighted by the amount of the total loan disbursed before (74%) and after (26%) the April 2012 Restructuring, which changed the PDO outcome indicators, as follows : Outcome, original objectives = Moderately Satisfactory (4) x .74 = 2.96 Outcome, revised objectives = Moderately Satisfactory (4) x .26 = 1.04 Total: 4 or Moderately Satisfactory The At-Risk program supported the academic skills of 10,131 students; student promotion and retention increased in project schools . There were improvements in the secondary enrollment rate in La Paz, as well as an increase in the number of students enrolled in project -supported schools. However, there were only modest changes in quality and relevance, a. Outcome Rating : Moderately Satisfactory 7. Rationale for Risk to Development Outcome Rating: There are several factors that mitigate the risk to the development outcome . The Government benefits from grant financing for its national education priorities . It is expected that the infrastructure built by the project will be maintained, as maintenance roles and responsibilities have been clarified . The Municipal Government is promoting a culture of respect and responsibility in relation to school facilities, furniture, and learning materials . It has also launched a competition to reward schools that properly maintain their infrastructure . With the new schools and classrooms, enrollment is expected to be sustained . The Center for Higher Education Performance was established and is functioning, as the Municipality finances the salaries of the Center staff . Civic content has been integrated into ongoing municipal programs . However, some of the programs begun under this project have not continued (e.g. Incentive Program and Civic Values Program ). It is not clear whether the capacity of School Management Teams will weaken as newly elected members come on board and need training. Similarly, without follow-up training, teachers may not continue to use some of the pedagogical skills that they learned. Thus, there is a moderate risk to the development outcome . a. Risk to Development Outcome Rating : Moderate 8. Assessment of Bank Performance: a. Quality at entry: Preparation began for a national -level (rather than municipal-level) project and engaged the Government of Bolivia via dialogue and technical work on the challenges of education, which identified the transformation of secondary education as a critical priority . During this time, there were a number of political changes at the national and local levels that created some uncertainties in the education sector . The new government decided to pursue a Bank-financed project at the municipal level, instead of the national level, because of the availability of other donor resources for the national level (ICR, p. 1). The Bank, with support from the national government, engaged with the municipal government . The Bank took the earlier national dialogue and background work into its preparation of the project without fully understanding the municipal realities . Thus, preparation lacked a deep knowledge of the La Paz education context and municipal norms . As a result, unfeasible strategies were developed for the Civic Values Program, student assessment, and School Improvement Plans by the School Management Team . For example, multiple institutions were responsible for schools: the Ministry of Education was responsible for curriculum; the Municipality was to maintain infrastructure; and District Offices were responsible for personnel . Also, school committees were limited in their ability to receive financial resources, making autonomy at the school level more difficult (among other factors). Other preparation shortcomings reported in the ICR include : lack of definition of the content and reach of the Civic Values Program, and lack of alignment in the implementation strategies with municipal realities . The latter included few firms or universities to provide pedagogical training for the Incentive Program; School Management Teams could not receive and manage funds; inadequate allocation model for the School Improvement Plans; and unfeasible proposal to use service agreements with NGOs to run the Pedagogical Resource Platform. at -Entry Rating : Quality -at- Moderately Unsatisfactory b. Quality of supervision: Supervision was active and benefited from staff in the field office . Bank staff supported the Implementing Agency's staff in the areas of financial and procurement management and safeguard protection . At least two supervision missions were conducted each year . Solutions to implementation bottlenecks were provided by the Bank team. Supervision addressed many of the design shortcomings . The Bank team worked with the Implementing Agency to revise project activities related to the Incentive program, Civic Values Program, Pedagogical Resource Platform, School Committees, and infrastructure maintenance . Some of the weaknesses in the indicators in the Results Framework were rectified, while others were not (no indicators were added in to track outcomes related to quality and relevance ). Restructuring of the project took considerable time and was implemented late in the project . Also, the Bank missed the opportunity to address the overly ambitious development objectives (ICR, p. 20). Quality of Supervision Rating : Moderately Satisfactory Overall Bank Performance Rating : Moderately Satisfactory 9. Assessment of Borrower Performance: a. Government Performance: The Ministry of Education decided not to pursue a national secondary education project . When the project was refocused to the municipal level, the Ministry of Planning and Development approved the subsidiary agreement (with some delay) to enable the Municipality to assume the credit . During the early stage of the project, the Ministry of Education and Ministry of Planning and Development backed the Municipality's efforts. However, delays in the actions of the ministries negatively impacted project implementation . There was a delay in effectiveness for 14 months, given the time it took the Congress and Ministry of Finance to approve the agreements. This delay resulted in disbursement lags during the project . The OMDH was unable to access MOE data (including age information to select participants in the Incentive Program and information on students' grades to assess project outcomes ). The Ministry of Education was responsible for curriculum and placement of teachers in newly constructed classrooms, which were provided in a mostly timely manner . School Councils had to work with departmental offices of the Ministry to address unmet needs in specific subjects . The Ministry was slow in working with the Municipality to find legal solution to enable implementation of the School Improvement Plans and in approving the project's restructuring . Government Performance Rating Moderately Unsatisfactory b. Implementing Agency Performance: The Municipal Human Development Office (OMDH) was the Implementing Agency, instead of a separate unit. There was strong municipal level leadership and engagement during preparation . OMDH hired a coordinator and three specialists to strengthen its capacity and ensure adequate attention to supervision . It monitored activities closely and showed creativity to overcome design shortcomings . OMDH obtained regular feedback from stakeholders to improve implementation . Construction activities were well supervised, and improvements in technical specifications were incorporated in subsequent phases . A clear set of criteria was used to select project -supported schools. The Implementing Agency worked closely with the Bank to revise project activities as construction costs increased . The ICR notes improvements in administrative practices such as approval and payment of contracts, and supervision of civil works . Qualified staff were recruited, which strengthened the Implementing Agency's performance over the lifetime of the project . Fiduciary management was adequate and complied with covenants . The municipal bureaucratic process negatively impacted the project, extending the steps for approvals and thus lengthening the time to implement activities . Implementing Agency Performance Rating : Moderately Satisfactory Overall Borrower Performance Rating : Moderately Satisfactory 10. M&E Design, Implementation, & Utilization: a. M&E Design: The ICR (p. 7) suggests that the project's outcome indicators were broad and difficult to monitor, as they required Ministry of Education Data . Indicators were not derived from school data, but instead from across the Municipality, which was beyond the scope of the project's interventions . There were no indicators to measure improvements in quality and relevance in upper primary level for grades 7 and 8, but there were indicators to demonstrate improved permanence . An impact evaluation was proposed . b. M&E Implementation: Key performance indicators and targets were changed during the project . These changes were the result of new baseline data, as well as addressing some of the underlying M&E weaknesses . For example, a new indicator was added to measure increases in enrollment in project schools . However, during restructuring, no indicators were added to measure improvements in quality and relevance in upper primary level (grade 7 and 8). OMDH was responsible for project monitoring and evaluation . The information system that was revised during the project was used by OMDH for project monitoring purposes . OMDH prepared reports for the Incentive Program, the Civic Values Program, and the School Improvement Plan . Student learning results were included with the Incentive Program Report. The impact evaluation was not conducted due to difficulties in accessing data from the Ministry and the high cost to carry out the field work to gather student information, in comparison to the program cost . A final report of project activities was prepared . This report provided descriptions of the project's achievements and the satisfaction of beneficiaries . The planned student assessment of learning was not conducted; however, the Ministry examined PISA results from other countries and then assessed a sample of students from the Incentive Program with items from the 2006 PISA to examine the performance of its students . c. M&E Utilization: The ICR reports that OMDH regularly used progress reports and other types of data to evaluate project implementation. The results from the student assessment were used by the Implementing Agency to identify specific skill weaknesses of students . M&E Quality Rating : Modest 11. Other Issues a. Safeguards: The project was classified Category B for Environmental Assessment (OP 4.01), since it financed the construction of schools and rehabilitated classrooms or other facilities in existing sites . The ICR reports that environmental standards were followed during project implementation . Cards outlining the potential environmental impacts and mitigation measures were created and reviewed by the Municipal Environmental Unit. An environmental license was issued . The cards were used by the construction company and civil works supervisors to guide the construction process to ensure compliance with environmental safeguards . Given the high concentration of indigenous people living in La Paz (60 percent of the population), the project was developed in accordance with the Indigenous Peoples Policy (OD 4.20). The entire project is part of an Indigenous People's Development Plan . During preparation, there was consultation with stakeholders (in May 2007), and their feedback was incorporated into project design . However, the ICR does not specify the group of stakeholders, their feedback, or subsequent design changes . b. Fiduciary Compliance: There were complex municipal payment requirements that created several approval steps . This created delays in payments (up to 90 days). The delays were associated with the whole municipal payment administration system, not just that related to the project . The ICR also reports that revised procurement and financial management guidelines were implemented, which reduced the payment timeline from 90 days to 60 days. The ICR (p. 8) reports that external audits were conducted annually and were noted without observation . Procurement was consistent with the arrangements noted in the appraisal document . The Implementing Agency performed well, and capacity increased over the course of the project . The ICR indicates that the Implementing Agency had to process many more contracts than were envisioned in the appraisal document . OMDH legal and procurement teams were strengthened and were able to manage the large number of contracts (ICR, p. 15). Audits pointed to shortcomings in monitoring some goods acquired through the School Improvement Plans, which was due to sharing of goods among multiple schools . The Implementing Agency addressed this concern by adequately documenting the presence of the goods in the schools . c. Unintended Impacts (positive or negative): Since the buildings were used by more than one level, there were benefits to students in pre -primary and night schools. d. Other: None 12. 12. Ratings : ICR IEG Review Reason for Disagreement /Comments Outcome : Moderately Moderately Satisfactory Satisfactory Risk to Development Moderate Moderate Outcome : Bank Performance : Moderately Moderately Satisfactory Satisfactory Borrower Performance : Moderately Moderately Satisfactory Satisfactory Quality of ICR : Satisfactory NOTES: NOTES - When insufficient information is provided by the Bank for IEG to arrive at a clear rating, IEG will downgrade the relevant ratings as warranted beginning July 1, 2006. - The "Reason for Disagreement/Comments" column could cross-reference other sections of the ICR Review, as appropriate. 13. Lessons: The ICR provided several lessons (pp. 19-20), which IEG has synthesized to the following : Well defined results chains (objectives, activities, and outcome measures ) are crucial . In this case, the results chain was weak, which meant that there were insufficient activities to achieve some of the objectives, as well as indicators that were inadequate to measure the objective . The project successfully met its targets, while using fewer resources than initially planned, but because of design weaknesses, the project could not attain all of its objectives . Understanding local legal context and jurisdictional issues is needed during project preparation . The project's implementation strategies were not adequate for the municipality and required changes from the start. At entry, the Bank would have benefitted from the views and knowledge of local counterparts and staff in La Paz, which would have permitted identification of more appropriate strategies than what were designed. 14. Assessment Recommended? Yes No 15. Comments on Quality of ICR: The ICR is concise and well written. It provides good analysis of the factors that impacted project implementation. The ICR is frank on data limitations, which reduced the evidence to judge achievement of objectives. The ICR's description of project design is scant, as it mainly reports issues in preparation or entry . The ICR did not report data on one of the project's key performance indicators . In relation to the other key performance indicators, the ICR reported both original and revised targets, as well as actual values . The ICR did not weight the ratings to determine the outcome rating, even though the project's key performance outcome targets were revised. Thus, the ICR has a number of shortcomings, which make it only marginally satisfactory in terms of quality. a.Quality of ICR Rating : Satisfactory