Concept Paper

Project Number: 39293 June 2012

Democratic Socialist Republic of Sri Lanka: Education Sector Development Project

CURRENCY EQUIVALENTS (as of 30 May 2012)

Currency unit – Sri Lankan rupee/s (SLRe/SLRs)

SLRe1.00 = $0.0076 $1.00 = SLRe131.50

ABBREVIATIONS

A/L – advance level ADB – Asian Development Bank DMF – Design and Monitoring Framework DP – development partner ESDP – Education Sector Development Project ESDFP – Education Sector Development Framework and Program GCE – General Certificate of Education ICT – information and communications technology MOE – Ministry of Education O/L – ordinary level PEA – provincial education authorities PPTA – Project Preparatory Technical Assistance SBA – school cased assessment SLRM – Sri Lanka Resident Mission

NOTES

(i) The fiscal year (FY) of the government and its agencies ends on 31 December.

(ii) In this report, “$” refers to US dollars.

Vice-President X. Zhao, Operations 1 Director General J. Miranda, South Asia Department (SARD) Director S. Ra, Human and Social Development Division, SARD Team leader S. Shakil, Social Sector Specialist, SARD Team members B. Panth, Lead Education Specialist, SARD

B. Chin, Young Professional, SARD M. Mukai, Sr. IT Specialist (Business Process Management), OIST K.M. Tilakaratne, Sr. Implementation Officer, SARD N. Gunasekera, Sr. Social Development Officer (Gender), SARD S. Muthugala, Sr. Procurement Officer, SARD H. Wickremasinghe, Sr. Economics Officer, SARD

J. Perera, Safeguards Officer, SARD Peer reviewer S. Jagannathan, Senior Education Specialist, RSDD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

I. THE PROJECT 1

A. Rationale 1 B. Impact, Outcome, and Outputs 2 C. Investment and Financing Plans 3 D. Indicative Implementation Arrangements 4

II. TECHNICAL ASSISTANCE 4

III. DUE DILIGENCE REQUIRED 4

IV. PROCESSING PLAN 5

A. Risk Categorization 5 B. Resource Requirements 5 C. Processing Schedule 5

V. KEY ISSUES 5

APPENDIXES

1. Comparison of Financing Modality 6 2. Basic Project Information 7 3. Problem Tree 8 4. Preliminary Design and Monitoring Framework 9 5. Project Preparatory Technical Assistance 12 6. Initial Poverty and Social Analysis 21

I. THE PROJECT

A. Rationale

1. The Education Sector Development Project (ESDP) is a proposed Multitranche Financing Facility (MFF) which will finance the Government of Sri Lanka’s Education Sector Development Framework and Program (ESDFP) 2012-2016. The ESDFP, the key education strategy document, reflects the vision of the Government “to enable future Sri Lankan citizens with knowledge, attitudes, skills and values to fulfill the requirements of a modern national and global knowledge economy” as articulated in the Mahinda Chintana: Vision for the Future.1 The ESDFP incorporates core outputs from ADB’s long-standing engagement in modernizing Sri Lanka’s secondary education, and reforms pursued with other multi- and bilateral assistance.2 Using a sector wide phased approach with emphasis on results, the MFF will consolidate the gains of previous and ongoing investments in general education to move to the next level of reforms that will prioritize quality and relevance3.

2. Sri Lanka has made commendable gains in basic education 4 during the past two decades, having achieved universal primary enrollment and gender parity with 99% primary net enrollment, primary completion rates of 99% for boys and almost 100% for girls, and Grade 9 completion rate of 91% (93% for girls and 89% for boys) up from 78% in 2005.5 Despite the basic education foundation, inadequate equitable access and quality in secondary schooling does not equip graduates with relevant skills and aptitude for employability and the knowledge economy. Senior secondary participation rates are much lower at 65%. Only 83.5% children ages 5-19 attend school, compared to 99.4% in the 5-14 age bracket. Quality of learning at secondary level is unsatisfactory with only about 60% students passing the General Certificate of Education (GCE) O/L and A/L6 exams, with pass rates significantly lower in Mathematics, Science, and English subjects that are essential for the knowledge economy. School education is geared towards high stakes examination, and there are insufficient pathways to technical education and skills training.

3. Important reforms in the general education system over the past several decades have provided a solid underpinning for Sri Lanka as it transitioned from a low income country emerging from long-drawn conflict to a middle income country by 2010, moving towards stability and equitable growth. These include (i) compulsory education until the age of 14; (ii) empowerment of schools with direct financing to schools for school improvement; (iii) introduction of school-based assessment; (iv) a range of demand-side interventions including tuition-free schooling through senior secondary; school uniforms, textbooks and subsidized public transportation through junior secondary, school meals for primary school children in poor and disadvantaged area; and (v) accelerated programs for the northern and eastern provinces.

1 Mahinda Chintana: Vision for the Future. Development Policy Framework, Government of Sri Lanka. Ministry of

Finance and Planning, 2010. 2

Major ADB-financed projects in the subsector included Secondary Education Development Project (1993); Secondary Education Modernization Project (2000); Distance Education Modernization Project (2003); Secondary Education Modernization Project (2004); and the ongoing Education for Knowledge Society Project.

3 Appendix 1 presents a matrix explaining why MFF is a suitable and appropriate financing modality.

4 The school structure consists of Primary (Grades 1-5); Junior Secondary (Grades 6-9); and Senior Secondary

(Grades 10-13). Basic education comprises Primary and Junior Secondary. 5 Current enrollment data is based on the Ministry of Education Schools Census 2010 and Department of Census

and Statistics, Household Income and Expenditure Survey 2009/10. 6 GCE Ordinary Level is the examination at senior secondary level (Grade 11), and the GCE Advanced Level is the

terminal examination at senior secondary level (Grade 13).

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4. While these reforms have expanded access, there is widespread acknowledgement among policy makers that the overall education system needs substantial modernization and transformation as the country now moves towards increasing economic integration and vision of a knowledge-based society. In this regard, the main challenges are: student learning outcomes, especially in science and commerce streams; maintaining equitable access to education, particularly in rural areas; developing diversified pathways from secondary to post-secondary; strengthening provincial and local capacity and school autonomy; and increasing financing for both ICT and other physical infrastructure along with recurring maintenance and basic learning needs. Introduction of computer-aided learning has led to increased ICT infrastructure, but more is required for its effective utilization, maintenance and improvement.

5. The ESDFP provides a policy framework for a harmonized and programmatic approach to external assistance for general education. All development partners’ (DP) assistance is integrated into ESDFP under the coordination of the Ministry of Education (MOE). . .Based on the medium term expenditure framework, planned resource allocation for ESDFP 2012-2016 implementation is approximately SLR133 billion (just over $ 1 billion), with about SLR73 billion (55%) for development expenditures and SLR60 billion (45%) for recurring expenditures.7 A sector road map will be prepared to serve as a basis for extending the ESDFP for a further five year period (2017-2021). The ESDFP includes the flagship 1,000 School Program8, which aims to develop a network of quality secondary schools across the country offering science, arts and commerce streams up to GCE A/L, and intends to reduce urban-rural differences by developing rural schools with resources found in good quality urban schools which are more popular among parents. The 1000 School Program also benefits approximately 5,000 feeder primary schools, and district and zonal education offices.

6. The project is aligned with the Sri Lanka Country Partnership Strategy for 2012-2016 in which human resource and knowledge development is a key pillar, with emphasis on supporting selected strategic areas of ESDFP. It also builds upon lessons of previous operations and project evaluation. The project will also ensure synergies with the planned technical and vocational training project to strengthen pathways from secondary to post secondary.

7. The project is proposed to be financed as an MFF using a sector wide approach focusing on results aligned with the ESDFP.9 This approach will enable achieving results incrementally which would in turn build the capacity of the Government to utilize resources on priority areas and to reduce transaction costs. Rather than crowding out public financing for education, this approach will leverage an intensified focus for maintaining commitments in the medium term expenditure framework. The Project Preparatory Technical Assistance (PPTA) will consider design options based on the sector capacity and fiduciary assessment.

B. Impact, Outcome, and Outputs

8. The expected impact of the ESDP will be school graduates that are better prepared to meet the labor market requirements. The outcome will be a school system that improves learning outcomes of secondary school students. The project’s preliminary design and monitoring framework is in Appendix 4. The MFF will deliver the following four outputs:

7 SLR 55 billion of the SLR 73 billion for development expenditures (75%) is earmarked for the 1,000 School

Program. An amount of SLR 10 billion is allocated for science and IT curriculum. Recurring expenditures focus on the demand-side interventions and quality programs such as examinations reform and teacher development. To support the program and financing gaps, the Government is seeking support from development partners.

8 The 1000 School Program is an outcome of the Isuru school concept introduced under the ongoing EKSP.

9 A disbursement–linked indicator approach is proposed. ADB will finance against achievement of certain indicators,

while other development partners are supporting other results areas in the program.

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(i) Modernized high quality equitable secondary education.10 This will (a) improve the examination system by enhancing School Based Assessment (SBA) and integrating SBA scores in O/L and A/L results; (b) improve curricula and strengthen teaching of science and technology streams in secondary schools; (c) train facilitators and academic supervisors at the zonal level, and improve the school visit regimen; (d) strengthen computer-aided learning by integrating ICT into regular teaching and SBA; and (e) develop pathways from the secondary school system to vocational training.

(ii) Equitable and efficient school system.11 This will (a) upgrade school facilities at secondary schools in disadvantaged provinces; (b) improve school facilities in feeder primary schools in selected provinces; (c) recruit, train, deploy teachers and staff with appropriate skills; and (d) support targeted scholarship scheme for underserved students.

(iii) Strengthened school management and autonomy. 12 This will (a) implement a capacity building program for school leadership; and (b) introduce a financing facility for school infrastructure maintenance and improvement, including for ICT requirements, using a public private partnership approach where possible.

(iv) Effective program planning, management and implementation. This output will (a) provide for effective management of the ESDFP by MOE, including a streamlined monitoring for the whole education system; (b) support coordination of the sector wide program; (c) strengthen provincial and zonal education planning and management capacity; (d) develop an integrated Education Management Information System (EMIS).

C. Investment and Financing Plans

9. The MFF provides $200 million to the ESDFP (2012-2016), with an expected Tranche 1 of $120 million which will finance the facilities improvements, teacher and staff training, quality improvements, and infrastructure maintenance13. As the project proposes to disburse upon achievement of agreed indicators into the education sector budget, the financing plan is designed to contribute about 20% towards the overall cost of $1 billion of ESDFP. The World Bank is providing $100 million credit14, and AusAID is considering co-financing. ADB will seek co-financing from partners such as KOICA, KEXIM, and the Abu Dhabi Fund for Economic Development with whom preliminary discussions have already taken place.

Table 1: Tentative Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Banka 200.00 20

Cofinanciersb 200.00 20

Government 600.00 60 Total 1000.00 100

a ADB to provide $200 m. for 5 years; first tranche of $120 million in 2013.

b World Bank ($100 million); AusAID (TBD); others (to be leveraged by

ADB). Source: ADB estimates.

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Output 1 will focus on system-wide quality reforms and programs, impacting the full school system. 11

Output 2 will be targeted in three provinces selected in conjunction with the Ministry of Education, covering both secondary and feeder primary schools.

12 Some elements of Output 3 will be system-wide, while others will have system-wide impact but piloted or implemented in phases starting with targeted provinces

13 A detailed implementation and financing plan for Tranche 1 (3 year) will be developed by the PPTA. The second tranche, approved in 2015, may possibly support the next ESDFP, as the duration of the MFF will be for five years, spilling over to the next rolling framework. Advance contracting and retroactive financing will be considered.

14 Transforming the School Education System as the Foundation of a Knowledge Hub Project (TSEP). November 2011. World Bank. A collaborative financing agreement will be explored for this parallel financing.

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D. Indicative Implementation Arrangements

10. The MOE will be the Executing Agency, and the implementing agencies will be the MOE (including specialized agencies such as the National Institute for Education) and the Provincial Education Authorities (PEAs) for the targeted provincial interventions. A steering committee with inter-departmental representation will be established. The PPTA will explore the possibility of establishing a joint steering committee to oversee DP assistance to the ESDFP, ensure collaboration among all projects financing the ESDFP (including collaborative and co-financing arrangements), and coordinate the results indicators under the proposed sector wide approach. Structured consultations between the MOE and PEAs will be undertaken by the PPTA to ensure alignment of provincial education programs with the ESDFP, and their adequate reflection in the design of the project. A Program Management Unit within the MOE’s structure (building upon the Project Management Office that oversaw loans in secondary education modernization and EKSP) will provide planning and implementation support. It will coordinate closely with other MOE units for planning and 1,000 School Program. Financing and reporting arrangements for the project will be identified and developed by the PPTA, including consideration for joint review missions with other DPs. Consultant recruitment will be done in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended form time to time). Procurement will be in accordance with ADB Procurement Guidelines (2010, as amended from time to time).

II. TECHNICAL ASSISTANCE

11. A capacity development technical assistance (CDTA) of $400,000 is included as a component of a combined TA that is being prepared for Sri Lanka to strengthen Capacity and Implementation Support for Human Development. This will augment the MFF by strengthening country fiduciary and monitoring systems, especially the capacity of PEAs and zonal staff in financial management and procurement aspects, and for monitoring, reporting, and verification of indicators. A PPTA of $550,000 (TASF-others) is also included to undertake due diligence.

III. DUE DILIGENCE REQUIRED

12. Due diligence for the MFF and the first tranche conducted under the PPTA will include:

(i) Policy Framework and Strategic Road Map. The ESDFP and other government policies will be reviewed to strengthen the sector road map and financing plan.

(ii) Technical. A matrix of results indicators will be developed as part of the DMF (for the MFF and also for first tranche) identifying appropriate performance targets and disbursement linked indicators that the project will support, sequencing and other DP and government contributions. A sector capacity assessment, including of MOE, will also form part of the technical due diligence.

(iii) Economic and financial. An economic and financial analysis will be conducted in accordance with ADB guidelines.

(iv) Governance and Fiduciary Oversight. A fiduciary risk assessment of education sector will be carried out (in conjunction with other DPs and building upon existing reviews). A risk assessment and management plan will be prepared to help strengthen ESDFP’s implementation in the medium term, identifying any additional policy or institutional reforms required to strengthen the education sector and its governance, including financial management systems and capacity. A financing plan will be prepared to identify mechanisms for funding education sector budget, including fund flow and disbursement mechanisms. Procurement aspects will be reviewed to ensure compliance with required policies and procedures, and procurement capacity assessment of the EA conducted.

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(v) Poverty and social. Poverty, social and gender analysis will be conducted, building upon the Ethnic Minority Development Framework and the Gender Action Plans prepared for the sector under previous projects. The project will continue to focus on gender and regional equity and inclusive education.

(vi) Safeguards. For the MFF an assessment of environment, involuntary resettlement impacts, and impacts on indigenous peoples will be conducted, and appropriate frameworks and plans will be developed. The Initial Poverty and Social Analysis (IPSA) is given in Appendix 6.

IV. PROCESSING PLAN

A. Risk Categorization

13. The project is considered as low risk because the proposed loan amount is $200 million, safeguard categories are other than A, and it builds upon ADB’s previous sector experience in a series of loans in secondary education, and the association with MOE which is a strong executing agency.

B. Resource Requirements

14. The project processing team comprises staff from SAHS and SLRM. The project team and estimated time required include Social Sector Specialist/Mission Leader (20 weeks); Lead Education Specialist (3 weeks); Communications/IT Specialist (4 weeks); Sr. Implementation Officer (4 weeks); Sr. Procurement Officer (2 weeks); Senior Social Development Officer (Gender) (2 weeks); and Sr. Economics Officer (2 weeks), Senior Safeguards Officer (3 weeks). A PPTA is required to develop the project’s detailed design and to conduct due diligence. Detailed Terms of Reference for the PPTA are in Appendix 5.

C. Processing Schedule

Table 2: Proposed Processing Schedule Milestones Expected Completion Date

Concept paper approval June 2012 Start of PPTA Fact-finding mission 1

st Week of December 2012

Staff Review Meeting 3rd Week of January 2013 Loan negotiations 2nd Week of February 2013 Board consideration End March 2013 Loan effectiveness July 2013 Source: Asian Development Bank.

V. KEY ISSUES

15. Key issues are: (i) the use of a sector wide approach with disbursement linked results indicators to finance Government’s expenditures using treasury model; (ii) the need for careful selection, sequencing and phasing of indicators, and coordination with other development partners. Thorough assessment and due diligence will be carried out during the PPTA, and close consultation with and participation of Central Operations Services Office, the Controllers Department, the Office of the General Counsel, and the Strategy and Policy Department will be sought. A multi-phased and long term approach (using MFF) will reduce the risks of the complexity of the project. Financing expenditures against achievement of results will reduce transaction costs associated with large volume of small procurements in the sector and ensure coordination at the country level with other development partners to leverage results in the education sector.

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COMPARISON OF FINANCING MODALITY FOR THE PROPOSED SRI LANKA EDUCATION SECTOR DEVELOPMENT PROJECT

Unique issues for the proposed project

Comparison

MFF Project Loan Program Loan ADB’s support is required for the Government’s education sector medium-term expenditure framework and sector strategy (ESDFP 2012-16), which is a five year rolling development framework. Financing is required for the current five year framework, and likely for the subsequent framework. ADB wants to signal long term commitment to ensure achievement of sector outcomes over a sustained period of time.

MFF approach will enable us to support the five year sector framework, and support the strengthening of a road map which will underpin the subsequent five year framework.

Will not enable support over a long term continuing rolling framework.

While there are some policy actions that may be required, majority of the focus of the sector framework is on delivering results with specific targets.

The COBP for Sri Lanka includes financing for $80 million in 2013; and $40 m. in 2014.

MFF enables us to support a financing plan that can provide financing for the duration of ESDFP 2012-16, and gives the possibility for outer tranches to support the next phase of ESDFP.

Preparing two project loans within a two year time period does not make sense nor give a long term commitment.

ADB’s support is required for financing government expenditures against achievement of results. This approach requires strong capacity for implementation and monitoring by the national, provincial and zonal education offices; and improved processes/practice for procurement and financial management.

Phased approach with the two to three MFF tranches will allow for a fiduciary capacity and monitoring capacity strengthening plan to be implemented incrementally.

A program loan would allow budget support for a sector wide program. However, it would not provide for financing against meeting of results/outputs.

Need for strong coordination among multiple existing and new development partners.

Provides a platform for ADB to play strong role for sector coordination and enhanced credibility as a long term partner.

Still possible with a project loan, but will not signal the same level of commitment that an MFF would.

Appendix 2 7

BASIC PROJECT INFORMATION

Aspects Arrangements

Modality MFF (disbursement linked indicators approach)

Financing Asian Development Fund

COBP/RCOBP The project is included in Country Operations Business Plan 2012-2014

Classification Sector (subsectors): education (upper secondary education and education sector development)

Themes (subthemes): social development (human development), gender equity (gender in economic opportunities), and capacity building (institutional development)

Targeting classification: general intervention

Gender mainstreaming category: gender equity theme

Location impact: Rural (high), urban (medium), national (medium)

Safeguards (Tranche 1 & 2): Environment–B Involuntary Resettlement–B, Indigenous Peoples–B

Risk categorization Low risk

Partnership(s) TBA

Use of a PBA PBA supporting the implementation of the Government’s Education Sector Development Framework and Program, and related medium term expenditure framework, in coordination with other development partners.

Parallel PIU Parallel PIU will not be used.

Department and division

South Asia Department Human and Social Development Division

Mission leader and members

Sofia Shakil, Social Sector Specialist, SAHS/Mission Leader Brajesh Panth, Lead Education Specialist, SAHS Brian Chin, Young Professional, SAHS Mikio Mukai, Sr. IT Specialist (Business Process Management), OIST Nelun Gunasekera, Sr. Social Development Officer (Gender), SLRM Sarath Muthugala, Sr. Procurement Officer, BRM K.M. Tilakaratne, Sr. Implementation Officer, SLRM Hasitha Wickremasinghe, Sr. Economics Officer, SLRM

ADB = Asian Development Bank, ADF = Asian Development Fund, Bangladesh Resident Mission = BRM, OCR = ordinary capital resources, OIID = Infrastructure and Communications Division, PBA = Program based approach, PIU = project implementation unit, SAHS = Human and Social Development Division, SAOD = Office of the Director General, SLRM = Sri Lanka Resident Mission.

Source: Asian Development Bank.

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PROBLEM TREE

ICT = information and communication technology Source: Asian Development Bank

A school system that is inadequate for preparing well rounded youth with relevant skills for employability

Graduates ill prepared for subsequent

education, training and work (i.e., low external efficiency)

More than 16% youth

unemployment: social problems

High internal inefficiency (high dropout and repetition) further

strain the ability of limited resources to deliver on

education sector priorities

Unsatisfactory learning outcomes (low pass rates in

subjects critical for knowledge and relevant skills)

Sustainability of physical investments

(e.g. ICT infrastructure) at risk

Low participation rates for quality secondary

education among disadvantaged groups, widening gap between

urban and rural

Low enrolment (participation) rates at upper secondary level for

Science and other subjects essential for preparing students

for the knowledge economy

Access issues: Distance to rural

schools and parental

preference for “good urban”

schools

Inadequate learning

environment, particularly

infrastructure for science teaching;

inadequate modernized

learning material and limited use of

ICT linked to subject learning

Gaps in teaching: Lack of qualified teachers (esp. in rural areas and

science subjects); teaching towards

high stakes examination

Weak linkages and unclear pathways from secondary to

post-secondary and skills training;

training seen as an option for “weaker” students and not as

a pathway option for post-secondary

Insufficient funds at school level to manage school

improvement and maintenance; weak

school-based management

Weak capacity at provincial and zonal level to

provide adequate support to

teachers and schools; gaps in education and

academic management and planning capacity

Effects

Core Problem

Causes

Appendix 4 9

PRELIMINARY DESIGN AND MONITORING FRAMEWORK1

Design Summary Performance Targets and Indicators

with Baselines2

Data Sources and Reporting Mechanisms

3 Assumptions and Risks

Impact

School graduates better prepared to meet the labor market requirements

By 2020, [ ] % increase (female/male) of secondary graduates enrolling in higher education from [baseline] (2012)

[ ] % increase (female/male) of secondary graduates completing skills training from [baseline] (2012)

Unemployment rates for youth (female/male) with O- and A-level qualification or skills certificate reduced from [baseline] (2012)

Enrolment in Skills Training (MYASD) Annual school census, MOE Labor statistics, Labor Force Survey Tracer and impact studies

Assumption

Economy continues to create jobs and require new and higher level skills

Risk

Economic and social conditions could become unstable

Outcome

A school system that improves learning outcomes of secondary school students

Enrolment rates in science and commerce in secondary schools in the three selected provinces increased by [ ]% between 2012 and 2017

By 2017, [ ] % (male/female) of O- and A-level science graduates increased from [baseline] (2012)

Completion rates (male/female) for grades 6–11 and 6 - 13 students in selected provinces increased by [ ]% between 2012 and 2017

Pass rates of GCE O-level and A-level increased by [ ]% from 2012 [Baseline] to 2017 (Science and Commerce subjects)

For all indicators: School census, MOE Examination results (NETS) Project reports

Assumption

ESDFP has robust methodology for identifying and targeting secondary schools to ensure equity of access to quality secondary education

Risk

Quality improvements in curriculum and learning support do not keep pace with physical improvements

Outputs

1. Modernized and high quality secondary education

SBA rolled out/implemented as part of national examinations (O/L and A/L) and regularly reported to parents by

2016 Science and Commerce streams in GCE A/L offered at all upgraded secondary schools by 2017 (year wise targets to be agreed)

ICT programs integrated into teaching of mathematics and other key subjects by 2016 Zonal offices have at least # number of trained academic facilitators (Annual

values to be agreed, female focus)

By YYYY, frequency of zonal facilitator

For all indicators: MOE monitoring and EMIS reports

Assumptions

Government committed to full integration of SBA system and strengthening of zonal facilitation system

Ability to identify and recruit sufficient number of zonal facilitators

Coordination between MYASD and MOE on developing alternate pathways for students to further their skills training and certification

Risk

Resistance from parents on the broad implementation of SBA system due to

1 The indicative disbursement linked indicators are in bold and would be further reviewed, developed and targets

identified during PPTA 2 Baseline data and targets for all indicators to be established by PPTA (all indicators to include x (baseline) to y

targets) 3 PPTA will identify data source for each indicator when indicator is finalized

10 Appendix 4

Design Summary Performance Targets and Indicators

with Baselines2

Data Sources and Reporting Mechanisms

3 Assumptions and Risks

visits to schools increased to [x] times per month to ensure teacher performance monitoring

Creation of pathways from secondary schools to vocational training – x number of subjects with linkage to technical streams / qualifications developed

perceived quality issues

2. Equitable and efficient school system

School buildings and facilities upgraded in [x] secondary schools in accordance with the 1,000 school program (# of classrooms/facilities) by 2014; and [y] by 2016

Teachers and other staff with relevant skills recruited, trained and deployed in a timely manner to upgraded secondary schools (year wise targets

for # of teachers to be agreed)

Facilities improvements completed in at least [x] primary feeder schools in selected provinces (# of classrooms/facilities) by 2014; and [y] by 2016

At least # of teachers and other staff with relevant skills recruited, trained and deployed in a timely manner to the upgraded primary schools (gender targets, yearly targets)

At least # of scholarships awarded to [x] thousand youth (female/male) from disadvantaged areas in 2014; [y] in 2015; [z] in 2016

For all indicators: Annual school census, MOE Annual report of upgraded schools, MOE

Project progress reports

Assumptions

Project will maintain strict guidelines on scope of work per school.

Process for identifying target secondary and feeder schools is clear and transparent

Risks

Physical interventions not backed with timely education quality improvements Procurement processes delayed or counterpart fund availability may be limited

3. Strengthened school management and autonomy

# of principals and deputy principals completed school leadership program

(at least 50% female) by 2016

Financing facility for maintenance and improvement established with private sector participation, integrated into Program of School Improvement by 2014

Guidelines of the School Management Committee and School Development Committee for managing school operations prepared and published by 2016

For all indicators: Annual school census, MOE

Leadership program summary report

Project progress reports

Assumption

Government committed to strengthening of system including allocation of funding for schools

Risk

Capacity of schools to manage planning & finance

Appendix 4 11

4. Effective program planning, management and implementation

Efficient budget planning and timely release of funding by 2016

Expenditure reports on sector budget provided on quarterly basis, with (semi-) annual interim unaudited financial statements on eligible expenditures

Fiduciary capacity building program for zonal/provincial and national staff designed by 2014 and implemented by mid-2014; continued implementation in 2015, 2016

Online and fully integrated EMIS platform developed by 2014 and launched by 2015

Regular (monthly/quarterly) school visits to be incorporated as part of a broader EMIS system by YYYY

For all indicators: Approved sector framework and annual budget document

Interim/unaudited financial reports

Quarterly and annual progress reports from MOE

Activities with Milestones* Inputs Output 1: Modernized high quality secondary education

1.1 Enhanced SBA: standards and resources for teachers developed (Tranche 1)

1.2 Strengthened curriculum for science and commerce streams (Tranche 2)

1.3 Training of facilitators and academic supervisors (Tranche 1; continue Tranche 2)

1.4 Regular monitoring of teachers (Tranche 1) 1.5 ICT integration into subject teaching (Tranche 2) 1.6 Horizontal pathways from O’level to vocational developed (Tranche 2)

Output 2: Equitable and efficient school system

2.1 Beneficiary schools selected and school facilities upgraded (laboratories, others) (Tranche 1 & 2)

2.2 Teachers recruited and deployed for upgraded secondary and feeder primary schools (Tranche 1 & 2)

2.3 Beneficiary schools selected and facilities and resources for feeder primary schools provided (Tranche 1 &2)

2.4 Targeted scholarship scheme developed and implemented (Tranche 1)

Output3: Strengthened provincial and school management

3.1 Training program for school principals and deputy principals developed and implemented; possible regional training institute supported (Tranche 1)

3.2 A mechanism/facility to support school infrastructure maintenance and improvement designed and implemented (with private sector participation), as part of Program for School Improvement (Tranche 1 developed, Tranche 2 implemented)

Output 4: Effective program planning, management and implementation

4.1 Provincial, zonal staff training program developed and implemented (Tranche 1)

4.2 EMIS platform developed (Tranche 1) and implemented (Tranche 2) 4.3 Set up of PMU, consultants selected, procurement plans developed

and implemented and tranche 2 designed (Tranche 1) 4.4 Evaluation and tracer studies conducted (Tranches 1 and 2) *to be determined based on implementation/operational plan prepared by PPTA

Loan ADB: $200 million (indicative) Technical Assistance: $400,000 Government: $600 million Co/parallel financing: $200 million

ADB = Asian Development Bank, EMIS = Education Management Information System, ESDFP = Education Sector Development Framework and Program, ICT = Information and Communications Technology, MYASD = Ministry of Youth Affairs and Skills Development, NETS = National Evaluation and Testing Services, PPTA = Project Preparation Technical Assistance, SBA = School-Based Assessment. Source: Asian Development Bank.

12 Appendix 5

PROJECT PREPARATORY TECHNICAL ASSISTANCE A. Justification

1. The education sector has always played an important role in Sri Lanka with both parents and Government alike emphasizing the need to obtain a high quality education as a priority for all youth. Whilst there has been success in achieving strong primary education enrolment and high literacy levels, this foundation must now be harnessed and converted to an asset for the future. The end of the civil conflict and the anticipated rapid economic growth has made this a more urgent and necessary condition. In particular, the improvement of survival rates through secondary education and the increase in relevance of the knowledge and skills to meet the requirements of the private sector. The Government’s Education Sector Development Framework and Plan (ESDFP) 2012-2016 envisages a wide-ranging set of initiatives to address these challenges. The technical assistance (TA) will assess existing challenges and develop a project that is anchored in the Government’s ESDFP and is suitable for ADB financing in all dimensions: technical, financial/economic, institutional, sector policy, and safeguards; aligned with the new country partnership strategy and built on lessons learned from the previous ADB investments in the education sector in Sri Lanka. B. Major Outputs and Activities

2. The project preparatory technical assistance (PPTA) will deliver a number of outputs: (i) identification of priority activities for ADB support under the Multitranche Financing Facility (MFF), as well as specific results indicators against which disbursement would be made; (ii) validation of the school mapping process to select schools for the 1,000 school program in the provinces that will receive ADB support; (iii) technical assessment that includes the design for the proposed revisions to the school based assessment (SBA) system including a detailed process mapping of the existing system for collecting and reporting SBA test scores; (iv) capacity assessment including a review of the provincial education system, that includes the design and implementation plan for the revision of the Education Management Information System (EMIS) and detail options for introducing more regular, relevant and timely reporting to support decision making; and program for strengthening of the zonal offices in providing classroom-based training support to teachers; (v) design options for provision of school development grants that encourage autonomy and sustainability at the school level; (vi) governance assessment and action plan, integrating the fiduciary assessment and capacity assessment of the education system; (vii) design options for the project’s financing and disbursement mechanisms to provide financing against meeting of results indicators to the Government’s own program. 3. The PPTA will also prepare the facility administration manual to guide overall implementation of the proposed Education Sector Development Program (ESDP) MFF, and the detailed first tranche design. An economic and financial analysis will be carried out; as well as a fiduciary risk assessment. The PPTA will also conduct a poverty, social and gender analysis, building upon the existing frameworks to ensure gender and social equity and inclusion. Environment and social safeguards reviews will also be conducted, and appropriate frameworks developed.

Appendix 5 13

4. The major outputs and activities are summarized in Table A4.1.

Table A4.1: Summary of Major Outputs and Activities

Major Outputs Expected Completion Date

1. Sector Analysis (including road map, strategic context and policy framework), final DMF, with disbursement linked indicators 2. Subproject feasibility reports 3. Due diligence documents 4. Detailed project implementation arrangements/Facility Administration Manual (with tranche sequencing/financing plan)

November 2012

November 2012

December 2012

December 2012

C. Cost Estimate and Proposed Financing Arrangement

5. The PPTA is estimated to cost $550,000 equivalent, of which will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF-Others). The detailed cost estimate is presented in Table A4.2.

Table A4.2: Cost Estimates and Financing Plan ($'000)

Item Total Cost

A. ADB Financinga

1. Consultants a. Remuneration and per diem i. International consultants (16 person-months) 250.0 ii. National consultants (22 person-months) iii. Pool

120.0 50.0

b. International and local travel 50.0 c. Reports and communications 10.0 2. Workshops, training, seminars, and conferences 20.0 3. Surveys 20.0 4. Miscellaneous administration and support costs

b 7.0

5. Contingencies 23.0 Total 550.0

a Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-Others)

b Includes the budget for Vehicle Lease for Local Transport for estimated $5,000

Source: ADB estimates

D. Consulting Services

6. The TA will be implemented over a period of 7 months from the fielding of consultants, which is anticipated in June - July 2012. Consultants will be recruited in accordance with ADBs Guidelines on the Use of Consultants (2010, as amended from time to time). ADB will recruit the national consultants through a firm using bio-data proposal for the quality- and cost-based selection method (quality-cost ratio of 80:20). The international consultants will be recruited on an individual basis, allowing a flexible approach ensuring that the appropriate expertise for introducing results based financing approach can be recruited, and that a mix of skills conducive to working with an education sector program framework approach can be quickly recruited and

14 Appendix 5

deployed. The TA is expected to provide 16 person-months of international (individual) and 24 person-months of national consultants (firm), and another 6 person-months of international/national pool of consultants to be sourced through the firm. The first output of the PPTA would be clarity on the DMF, which will then help to sequence the sourcing of consultants. The summary of the consulting services requirement is provided in Table A4.3 below, and is indicative (will be finalized after the PPTA inception mission).

Table A4.3: Summary of Consulting Services Requirement Positions Person-Months Required

International Team Leader/Secondary Education Management Specialist 6 Financial Management, Governance and Fiduciary Specialist18

3

Education Economics and Financial Assessments 3 School Based Management & Monitoring Specialist 2 Student Testing/Assessment Specialist 2 Sub-total 16 National Education and Project Management Specialist/Coordinator Education infrastructure and planning specialist

5 4

Education Quality Specialist 5 Education ICT/MIS Specialist 2 Social Development Specialist 3 Environmental Specialist 2 Procurement Specialist 3 Sub-total 24 Pool of Consultants19 6 TOTAL 30

Source: Asian Development Bank 7. The outline terms of reference for the project preparatory TA consultants are described in paras. 8 to 24. 8. Team Leader/Secondary Education Management Specialist (international, 6 person-months). The consultant will have extensive international experience (8-10 years minimum) in project preparation of similar education sector reform programs and awareness of ADB project preparation requirements. Additionally, the consultant should be familiar with the Sri Lanka context and preferably have experience with the Ministry of Education. The consultant should have an advanced degree in management, economics or other related field, with a track record in working with ministries of education on sector wide programs, including for preparation of sector frameworks/road maps. The consultant will work closely with the senior officials within MOE, with relevant agencies of the MOE, provincial authorities; other relevant agencies and contracted consultants to provide strategic advice and assistance directed to supporting the implementation of the ESDFP. The consultant will be responsible for delivering all the PPTA outputs, ensuring that the final design report is produced in a format suitable to ADB that aligns with the requirements for the Report and Recommendation of the President to the Board of

18

Should a qualifying expert have skills to undertake the education economics and financial assessments, these two tasks can be undertaken by one individual, or separately.

19 Pool of consultants (6 person months – both national and international - will be recruited through the firm), and form part of the firm contract. This will be for design work relating to areas not anticipated and for augmenting the resources/inputs needed for the various identified areas, including all aspects of due diligence.

Appendix 5 15

Directors (RRP, including linked documents), as specified under ADB’s Streamlined Business Processes. S/he will provide leadership to the entire national and international team of consultants, coordinating their activities and outputs, ensuring close collaboration with Ministry of Education, and other relevant agencies. Key tasks include:

(i) Assess the ESDFP 2012-2016, and identify appropriate programs and activities to be financed by the MFF, including development of implementation timelines, sequencing of activities and reforms, identification of capacity building requirements, identification of necessary interventions to implement the ESDFP for the 2012-2016 period;

(ii) Advise the Government on the preparation of the sector roadmap based on a

continuing/rolling ESDFP for the 2017 – 2021 period; (iii) Finalize the Design and Monitoring Framework, including the Results Indicators

(Disbursement Linked Indicators) Matrix and the overall MFF design and Tranche 1 DMF;

(iv) Advise on coordination with relevant ESDFP stakeholders, including relevant

government departments (national, provincial, zonal), development partners and private sector representatives;

(v) Take responsibility for the collective work of the consulting team, including (a)

preparation of interim and final reports; (b) conduct of stakeholder consultations, workshops, analyses and surveys; (c) preparation of the Facility Administration Manual (FAM); (d) preparation of procurement plan; (e) preparation of safeguards-related documents; and (f) preparation of MFF financing plan and disbursement arrangements; and

(vi) administration of workshops, training, seminars and conferences and surveys.

9. Financial Management, Governance and Fiduciary Specialist (international, 3 person-months). The consultant will have an advanced degree in finance, economics or related field with extensive experience (8-10 years minimum) in public sector management and fiduciary assessments. The consultant will work closely with the Education Economist/Financial Assessments Specialist and will (i) prepare a financial management capacity assessment; (ii) review the proposed funding arrangements for ESDFP including government system of budget execution, accounting, and auditing; (iii) undertake fiduciary risk assessment of government mechanisms for fund releases, cash flow management, financial reporting, internal control for the school education sector, including delineation and mapping of responsibilities between central, provincial government levels for financial management of loan proceeds; (iv) assess the capacity of concerned government agencies for internal control, staffing requirements and skills, accounting hardware, software and training needs; (v) assess the capacity of external auditors to provide timely report in accepted auditing standards; (vi) design a fund flow mechanism and identify appropriate ADB disbursement procedures for the ensuing project, based on an assessment of EA/Implementing Agency’s capacity, and prepare detailed and disaggregated cost estimates for all elements of the ESDP, with detailed annotation for the cost tables; (vii) draw from the analysis of procurement needs to reflect on related risks; and (viii) prepare a risk mitigation plan for the project to monitor and implement.

16 Appendix 5

10. Education Economics and Financial Assessments (international, 3 person-months). The consultant will have expertise in economic analysis in the education sector, and will conduct the economic and financial assessments for Tranche 1 in accordance with ADB’s Financial Management and Analysis of Projects (2005). The consultant will also be experienced in costing and procurement under similar projects/programs, and have a mastery of Excel software. Key tasks include: (i) gathering necessary data to conduct the various required analyses, including analysis of the fiscal framework for education (the ESDFP); (ii) analyze recent and projected budgets and expenditures for the education sector, with a detailed analysis of the secondary education subsector; (iii) assess related policies and strategies and implications for access, quality and relevance, and overall efficiency of the secondary education subsector; (iv) assess the magnitude of investments required to implement and sustain key elements of the K to 12 reform agenda, including any incremental reforms proposed for support under the ESDP; (v) review existing analytical work and assess supply- and demand-side constraints to education access and education outcomes, as well as the projected poverty impact of the proposed Program, including impact of scholarship schedules; (vi) lead the economic and financial analyses for the proposed Program, including proposed strategies to ensure the financial sustainability of the program. 11. School Based Management & Monitoring Specialist (international, 2 person-months). The consultant should have excellent knowledge and experience (at least 8-10 years)in managing and improving school based management systems in other South Asian countries. The consultant’s responsibilities will include: (i) assessing the status of policies and strategies for recruiting and training of school principals and deputy principals; (ii) assessing the quality of training and development for school principals and deputy principals; (iii) conducting an assessment of quantitative and qualitative school based financial management; (iv) identifying good practices that encourage financial sustainability for school based management (v) developing framework and strategy for improving the current PSI system with better leadership capacity development and financial autonomy and sustainability of schools; (vi) supporting the ICT/MIS specialist in understanding information gathering processes and planning reporting mechanisms to enable efficient decision making. 12. Student Assessment and Curriculum Specialist (international, 2 person-months). The consultant should have excellent knowledge of student assessment systems particularly formative assessment systems, and of secondary education curriculum aspects. The consultant will (i) assess the current system of School Based Assessments with a particular focus on calibration of testing methodologies, reliability of test scores as an accurate reflection of student ability and integrity in reporting of test scores; (ii) recommend improvements to the SBA system including providing examples of materials or process that have been successfully used in other countries; (iii) assess the existing secondary education curriculum and the O/A level tracks, and identify aspects of the the curriculum that could enable the development of a pathway from O level track to technical/vocational education. Working closely with the national quality specialist, the consultant will prepare an indicative road map to review and reform the curriculum under the MFF. 13. Education and Project Management Specialist/Coordinator (national (or international), 5 person-months)20. The consultant should have excellent knowledge of public sector programs in Sri Lanka (and preferably also in the region), and should possess excellent

20

This role will be played by a Sri Lanka based consultant, but there are several consultants in Sri Lanka who are working on international rates already with ADB and other DPs. The team does not want to exclude a good national nor anyone who is classified as international.

Appendix 5 17

project design and management skills as well as demonstrated familiarity with ADB project preparation and due diligence. The consultant will also serve as the main coordinator for the inputs of all the national consultants, and work closely with the international team leader to ensure timely completion of all tasks. The consultant will work closely with the international Team Leader to ensure timely and quality due diligence for project design. Additional key tasks include: (i) designing the infrastructure maintenance facility using public private partnerships, working closely with the education infrastructure and planning specialist; (ii) preparing a plan for the strengthening the zonal facilitation system; (iii) identifying areas for improving EMIS and an action plan for implementation EMIS strengthening over the course of the MFF; (iv) preparation of the Facility Administration Manual as required by ADB guidelines.

14. Education Infrastructure and Planning Specialist (national, 4 person-months). The consultant will be experienced in finance and infrastructure development. The consultant will work with MOE to understand and validate the school mapping exercise that was conducted under the Government’s 1,000 school program and also support the planning of the new EMIS system. The consultant’s main responsibilities will include: (i) identifying the nature of the classroom/school physical requirements in the selected provinces, and assess the government’s plan for upgrading infrastructure in the selected provinces; (ii) working with the Environment Specialist, Social Development Specialist and Procurement Specialist in developing a strategy and roadmap for implementing the facilities upgrade to secondary school and primary feeder schools in the selected provinces; (iii) assessing the overall cost for implementing the proposed improvements; (iv) supporting the ICT/MIS specialist in understanding information gathering processes and planning reporting mechanisms to enable efficient decision making; and (v) work closely with the Education and Project Management Specialist on design of the infrastructure maintenance facility. 15. Education Quality Specialist (national, 5 person-months). The consultant will be a seasoned education sector specialist in Sri Lanka with at least 10 – 12 years of experience, with excellent knowledge of primary and secondary education, particularly with issues related to the development of curricula, student testing, school based assessment, and academic support for teachers. The consultant should have prior knowledge of the education system in Sri Lanka, and be familiar with all the major agencies related to assessment, curriculum, and the zonal education system. In addition s/he should posses and intimate knowledge of the ESDFP plan. Key tasks include: (i) assessing changes required to the secondary education curricula arising out of the implementation of the ESDFP reform agenda; (ii) review the implementation of the school-based assessment system and assess areas for improvement for large-scale implementation; (iii) reviewing teacher professional development aspects, and preparing a plan for improved school-based teacher development including strengthened zonal academic facilitation; (iv) for creation of alternate pathways for students, review the curriculum and identity appropriate action plan for introducing post-O level subject opportunities. For this, the consultant will be required to work closely with NIE, NETS, and also Ministry of Youth Affairs and Skills Development to explore pathways to technical education; and with the Ministry of Higher Education for other post-secondary options such as with the Sri Lanka Institute for Advanced Technology Education (SLIATE). 17. School Based Management Specialist (national, 2 person-months). The consultant should have excellent knowledge of the Program for School Improvement (PSI) in Sri Lanka with specific insight of the school leadership development programs being an advantage. S/he will work closely with the School Based Management & Monitoring Specialist in assessing the existing PSI system and developing recommendations for strengthening it (work closely with the Education/Project Management Specialist and Infrastructure Specialist on the maintenance

18 Appendix 5

facility). The consultant’s responsibilities will include: (i) assessing the status of policies and strategies for recruiting and training of school principals and deputy principals; (ii) assessing the quality of training and development for school principals and deputy principals; (iii) conducting an assessment of quantitative and qualitative school based financial management; (iv) identifying good practices that encourage financial sustainability for school based management (v) developing framework and strategy for improving the current PSI system with better leadership capacity development and financial autonomy and sustainability of schools.

18. Education ICT/EMIS Specialist (national, 2 person-months). The consultant should posses excellent knowledge of ICT/MIS systems with experience using these in the education sector. S/he will work closely with the Education Infrastructure and Planning Specialist and the School Based Management & Monitoring Specialist in developing a framework and strategy for a implementing a core EMIS system to help manage the administration of the school system. The consultant will (i) assess and map the current data collection process and reporting mechanism within the MOE and PEAs; (ii) identify priority areas that can be improved initially to have the maximum benefit in improving school operations and administration; and (iii) develop a high level architecture for a system wide EMIS for the schools network.

19. Social Development Specialist (national, 3 person-months). The consultant will have expertise in assessments of gender, social development and resettlement issues surrounding females, the poor, and other disadvantaged groups, preferably in the context of the education sector. S/he will have experience in the use of participatory methodologies to collect and analyze information and develop relevant action plans, as well as a good understanding of relevant ADB policies and requirements. The consultant will ensure collection of baseline sex-disaggregated and ethnic minority-based data to set the appropriate gender targets for inclusion in the Gender Action Plan, IP framework and DMF. The consultant will work with the Team Leader, Deputy Team Leader and Education Economics, Finance and Costing Specialist in conducting demand-side analyses, and will take lead responsibility in preparing poverty and social analyses and providing related inputs to design of ESDP interventions and implementation arrangements. The consultant will also have in-depth understanding of international best practices and policy on involuntary resettlement issues. Substantial experience in community mobilization and analysis of resettlement issues including a good understanding of resettlement checklists and guidelines of ADB or other international funding agencies will be an asset.

20. Specific responsibilities include:

(i) Review ADB’s Handbook on Social Analysis (2007), Poverty Handbook (2006), and other relevant ADB policies and documents;

(ii) Provide a summary assessment of gender issues in education (in particular in secondary education) in Sri Lanka, including supply- and demand-side factors affecting access to secondary education, quality of education, and learning outcomes; identify priority interventions to address these in the design of the proposed ESDP; and collect key sex-disaggregated baseline data to be monitored during project implementation;

(iii) Work with the Education Economics, Finance and Costing Specialist and the Team Leader to conduct poverty and social analyses, including a disaggregated analysis of social impacts and benefits of the proposed ESDP, and to develop the monitoring and evaluation framework;

(iv) Identify priority interventions and procedures to promote participation by and benefits to women, the poor, and other disadvantaged groups under the proposed ESDP, including developing the gender action plan.

Appendix 5 19

(v) Screen all sites identified for school construction to ensure that none of these sites will entail involuntary resettlement as defined in ADB’s involuntary resettlement policy and Operations Manual section F2 (OMF2) on involuntary resettlement;

(vi) Develop a resettlement plan in accordance with ADB’s involuntary resettlement policy and OMF2 if any of the sites for rehabilitation or expansion will result in involuntary resettlement; and

(vii) Assess land issues, titles, and the potential impact of the ensuing project. 21. Environment Specialist (national, 2 person-months). Key tasks include: (i) review the environmental implications of civil works and environmental settings of the proposed ESDP; (ii) review environmental risks of the proposed ESDP, and, where such risks are present (e.g., construction), examine the measures that could be taken during implementation to mitigate the risks; and (iii) conduct an initial environmental examination or environmental impact analysis for construction-related proposals for prospective university facilities, in accordance with ADB’s Environment Policy (2002) and Environmental Assessment Guidelines (2003); (iv) preparation of environmental assessment and review framework for the MFF, and IEE for the first tranche.

22. Procurement Specialist (national, 3 person-months). The consultant will have extensive experience in procurement in education and related projects, as well as good knowledge of Excel. Specific responsibilities include: (i) in coordination with MOE prepare a tentative list of civil works, furniture, equipment and supplies to be procured under the proposed ESDP, with focus on large packaged procurement packages (including preparation of bidding documents and requests for proposal). This should take into account: (a) information on existing facilities; (b) the requirements of the MOE 1,000 school program; and (c) assessments of the needs of individual educational institutions; and (ii) prepare a procurement capacity assessment or update any recent capacity assessments prepared by other donor agencies, including specific strengthening of the focus on secondary education; (iii) provide training and other support as needed to address any key procurement capacity gaps in relevant central and local institutions; and (iv) prepare the procurement plan for the investment components of the proposed ESDP, in conformity with ADB guidelines.

23. To facilitate the preparation of an effective procurement plan for the ensuing loan/grant project, in addition to undertaking (or updating) capacity assessment of the EA, the consultant will examine the national and/or international market capacity in the relevant sectors, suggest technically and economically sound procurement packaging, and identify, whenever possible, at least three or more suitable suppliers / manufacturers / contractors for each anticipated ICB or NCB procurement package under the project. Such identification is purely for the purpose of a preliminary market capacity assessment and does not represent in any way ADB's endorsement on or preference to any suppliers/manufacturers mentioned in the consultant's report. The consultant is required to include a similar disclaimer in its report. The consultant is also required to include a relationship disclosure statement if the consultant is affiliated to any of the potential suppliers/manufacturers/contractors identified in the report. If other procurement modes are recommended for inclusion in the procurement plan such as, for example, LIB or direct procurement, the consultant should provide reasoned justification for such recommendations. This approach also applies to the framing of consultant recruitment packages.

24. The consultant will share the conclusions of such market survey findings, the results of the EA capacity assessment, the proposed cost estimates for all procurement (including consulting services) packages, and the indicative procurement plan (including proposed prior and post review thresholds for goods, works and consulting services), with ADB's procurement division concerned. Depending on comments received from ADB, the consultant may be

20 Appendix 5

required to participate in tripartite discussions between ADB (both sector and procurement divisions) and, as necessary, the EA and take comments received into account in finalization of the indicative procurement plan and other deliverables.

E. Implementation Arrangements 25. The executing agency for the PPTA will be the Ministry of Education. The PPTA will be implemented from July 2012 – February 2013. A steering committee, headed by the Secretary, Ministry of Education, with participation of the Additional Secretaries from MOE, and other relevant officials, will provide overall guidance to the PPTA. MOE will also provide, in kind, qualified counterpart staff and adequate office accommodation for the consultants and working meetings. Disbursements will be done in accordance with ADB’s Technical Assistance Disbursement Handbook (May 2010, as amended from time to time). 26. The proposed TA processing and implementation schedule is listed in Table A4.4.

Table A4.4: Technical Assistance Processing and Implementation Schedule

Major Milestones Expected Completion Date

ADB concept paper clearance (including PPTA) June 2012 Reconnaissance mission June 2012 (upgrade March mission) PPTA Implementation July 2012-February 2013 PPTA Mid Term Review Mission October 2012 PPTA Draft Final Report December 2012 Loan Fact Finding December 2012 Final Report/Completion February 2012 ADB= Asian Development Bank; PPTA = project preparatory technical assistance. Source: Asian Development Bank.

Appendix 6 21

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Sri Lanka Project Title: Education Sector Development Project

Lending/Financing Modality:

Multitranche Financing Facility Department/ Division:

SAHS/SARD

I. POVERTY ISSUES

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy

The goal of Sri Lanka’s 10-year development framework is to achieve rapid economic growth that will benefit the entire population and stimulate social development of the country. In line with this goal, the government plans to make its education sector programs more focused on strengthening skills and the knowledge base, preparing its human resource base with skills for meeting the labor market requirements. The Education Sector Development Project (ESDP) will support the Government of Sri Lanka’s Education Sector Development Framework and Program (ESDFP) 2012-2016 which aims to promote high quality general education that is relevant for the national and global knowledge economy and society needs of Sri Lanka. ESDP will finance national level reforms and programs to ensure equitable access to quality education; strengthen sector governance, including sustainability and management, at the provincial level; and support quality of learning at the school level, including strengthening information communication and technology (ICT) based education. The ESDFP is aligned with the Government’s main strategy document, the Mahinda Chintana: Vision for the Future

21, which provides the strategic context for the

equitable development. The Project is also aligned to the Country Partnership Strategy (2012-206), which has a pillar for Human Resource and Knowledge Development. The Project will continue to support gender and regional equity, aligned to the Government’s Ethnic Minority Development Framework and the Gender Action Plan frameworks in place from previous projects. Sri Lanka has made commendable gains in basic education

22 during the past two decades, having achieved universal primary

enrollment with 99% primary net enrollment and gender parity. Primary completion rates are 99% for boys and almost 100% for girls. Grade 9 completion rate is 91% (93% for girls and 89% for boys) up from 78% in 2005

23.

Access and quality at the senior secondary level are a concern. While participation rates at the senior secondary level have been steadily increasing, they remain much lower than primary sector rates at 65%. The percentage of children age 5-14 currently attending school is 99.4%, whereas only 83.5% of children age 5-19 are currently attending school. The Project will address the remaining challenges of equity and regional disparities in education participation and learning outcomes.

B. Targeting Classification

General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2)

C. Poverty Analysis

1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed?

2. What resources are allocated in the PPTA/due diligence?

A Social Development Specialist will be engaged during the PPTA, and undertake social and gender analysis to

make the project design more socially inclusive, participatory and gender-equitable.

3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor

governance, and pro-poor growth)? Please explain.

There is opportunity for pro-poor design that has been identified in the concept paper and which builds on existing

and past experience. The project will target schools in rural areas to reduce the difference in access to quality

21

Mahinda Chintana: Vision for the Future. Development Policy Framework, Government of Sri Lanka. Ministry of Finance and Planning, 2010. 22

The school structure consists of Primary (Grades1-5); Junior Secondary (Grades 6-9); and Senior Secondary (Grades 10 – 13). Basic education comprises Primary and Junior Secondary. 23

Current enrollment data is based on the Ministry of Education Schools Census 2010; Department of Census and Statistics, Household Income and Expenditure Survey 2009/10.

22 Appendix 6

education between urban and rural areas. Targeted scholarships for students from poor families and girls will be

considered.

II. SOCIAL DEVELOPMENT ISSUES

A. Initial Social Analysis

Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit

from the project? The intended primary beneficiaries are children in targeted (three) provinces which will be identified jointly with government on the basis of ensuring regional and social equity aspects, but the project supports activities that impact the school system nationwide. This project will continue to support the education sector’s objective of making access to education inclusive, and has a strong focus on the socially excluded by targeting disadvantaged minorities and communities. . Other beneficiaries include zonal staff and teachers. 2. What are the potential needs of beneficiaries in relation to the proposed project? The potential needs of the beneficiaries are access to quality education, availability of relevant and qualified teachers and facilities to provide them with the basic soft skills and education required for the labor market. Better skills and mobility are articulated needs of teachers and zonal staff. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project

address them? The project is designed to support the Government’s 1000 School Program, which is itself a consolidation effort to streamline the number of primary schools feeding into a good quality secondary school. During the consolidation process, there are children studying in primary grades of secondary schools that will be phased out and enrollments transferred to the feeder primary schools. Similarly, students enrolled in upper grades of existing primary schools will be transferred to the secondary school. There is a potential constraint and risk of exclusion due to distances which the project will closely address. For zonal staff and teachers, the project will encompass capacity building as well as identify strategies for improving the mobility of zonal staff, particularly female.

B. Consultation and Participation

1. Indicate the potential initial stakeholders. The potential stakeholders include provincial governments, provincial education authorities, and zonal and school staff. Additionally, parents and school communities are important stakeholders. 2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g.,

workshops, community mobilization, involvement of nongovernment organizations and community-based organizations, etc.)?

Workshops, field visits and focal group discussions with zonal office staff, teachers. will be held during the PPTA. 3. What level of participation is envisaged for project design?

Information sharing Consultation Collaborative decision making Empowerment

4. Will a C&P plan be prepared during the project design for project implementation? Yes No A separate C&P plan will not be prepared but any framework for environment, IP, IR or GESI to be developed for

the project will include consultation and participation requirements at appropriate level.

C. Gender and Development Proposed Gender Mainstreaming Category: Gender Equity Theme

1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program? There is gender parity already in education, with girls’ participation rates slightly higher than that of boys. However, strengthening women’s participation in school management and provincial education planning is a relevant issue for this project to address. Further, girls’ participation in subjects such as science and commerce is lower at the senior secondary level, which impacts their readiness for the labor market in higher valued streams.

2. Does the proposed project/program have the potential to promote gender equality and/or women’s

empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making?

Yes No Gender action plan (currently under implementation) will be updated during PPTA. 3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality?

Yes No The project will benefit both male and female students through improvements in the quality of and access to secondary education.

Appendix 6 23

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Nature of Social Issue

Significant/Limited/ No Impact/Not

Known

Plan or Other Action Required

Involuntary Resettlement

While physical improvements and additional classrooms and buildings are likely to be supported, it is unlikely that any resettlement will arise. However due diligence will be conducted in compliance with ADB’s safeguard policies.

Unlikely/not known.

Resettlement Framework

Indigenous Peoples

There are ethnic and religious minorities in Sri Lanka (Tamils, Muslims) for which an Ethnic Minority Development Framework for the education sector is already in place and under implementation. The project is designed to ensure inclusion of the minorities.

Ethnic Minority Development Framework (to be updated)

Labor

Employment Opportunities

Labor Retrenchment Core Labor Standards

The project will enhance educational opportunities for women given its emphasis on improving the quality of secondary education.

No negative impact.

No Action

Affordability No significant issue anticipated. The sector already includes several demand-side interventions.

No impact. No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human Trafficking Others (conflict, political instability, etc.), please specify

The nation has come out of a long conflict, and there is peace. Should there be any set back in stability, women and minorities become vulnerable. The EMDF will capture this risk and the project will build in measures to address them in any eventuality.

Ethnic Minority Development Framework (to be updated)

IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT

1. Do the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant specialist/s?

Yes No 2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender analysis, and C&P during the PPTA/due diligence? Yes No Resources are included for gender and social analysis, and the safeguard due diligence. Money has been allocated for consultations and workshops.