Single Programming Document of

10th European Development Fund

- 1 - Single Programming Document of Aruba under the 10th European Development Fund

TABLE OF CONTENTS

Executive summary...... 5 PART A: COOPERATION STRATEGY ...... 6 1. EU Cooperation Objectives...... 6 2. Assessment of the political, economic, social and environmental situation ...... 6 2.1. Political Situation...... 6 2.2. Economic Situation ...... 8 2.3. Social situation...... 9 2.4. Environmental situation ...... 10 3. Policy agenda of the OCT...... 10 4. Assessment of past and ongoing EU cooperation ...... 13 5. Response strategy ...... 14 PART B : IMPLEMENTATION...... 15 1. Identification...... 15 2. Rationale and country context ...... 15 2.1. Country context and rationale for SPSP...... 15 2.1.1. Economic and social situation and poverty analysis ...... 15 2.1.2. National development policy...... 15 2.2. Sector context: policies and challenges ...... 16 2.2.1. Sector context and main features of the National Education Plan ...... 16 2.2.2. Educational sector budget and its medium term financial perspectives...... 16 2.3. Coordination between Government of Aruba and development partners...... 17 2.4. Assessment of the institutional capacity...... 18 2.5. Performance monitoring ...... 18 2.6. Macro-economic framework ...... 18 2.7. Public Financial Management...... 19 2.8. Eligibility for budget support ...... 20 2.9. Lessons learnt...... 20 2.10. Complementary actions...... 20 2.11. Donor coordination...... 21 3. Description ...... 21 3.1. Objectives...... 21 3.2. Expected results...... 21 3.3. Risks and assumptions ...... 22 3.4. Stakeholders ...... 22 3.5. Crosscutting Issues...... 23 4. Implementation issues...... 23 4.1. Method of implementation...... 23 4.2. Procurement and grant award procedures ...... 23 4.3. Budget and calendar...... 23 4.4. Performance monitoring and criteria for disbursement...... 24 4.5. General conditions for disbursement of all tranches...... 24 4.6. Evaluation...... 24 4.7. Communication and visibility ...... 25

Acronyms and abbreviations:

AOV Old Age Pension legal facility of Aruba AWG Aruban guilder APFA Government employers pension fund of Aruba AZV General health insurance legal facility of Aruba ACP African, and Pacific States CBS Central Bureau for Statistics DoE Department of Education (of Aruba) EC European Community EDF European Development Fund EIB European Investment EMIS Education Management Information System EU FDA 'Fondo Desaroyo Aruba' / Fund for Development of Aruba GDP HAVO/VWO Secondary level schools LFS Labour Force Survey MINJO Ministry of Justice and Education (of Aruba) NEP National Education Plan 2007-2017 of Aruba OECD Organization for Economic Cooperation and Development OCTA Association of Overseas Countries and OCTs Overseas Countries and Territories PANCAP Pan Caribbean Partnership against HIV and AIDS PFM Public Financial Management

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The Government of Aruba and the European Commission hereby agree as follows:

(1) The Government of Aruba, (represented by the Prime Minister Mr. Michiel Godfried EMAN) and the European Commission, represented by Mr Andris Piebalgs Member of the European Commission in charge of Development, hereinafter referred to as the Parties, have discussed and agreed on the general orientations for co-operation between Aruba and the European Union for the period 2008 – 2013.

During these discussions, the Single Programming Document (SPD) for Aruba was drawn up for the period 2011-2013 in accordance with the provisions for the Association of the Overseas Countries and Territories to the European Union as referred to in the Treaty on the Functioning of the European Union and in particular in its Article 198 and in the Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community, as revised by Council Decision 2007/249/EC.

(2) The agreement of the two parties on this Single Programming Document will be regarded as definitive within six weeks of the date of the signature, unless either party communicates the contrary before the end of this period.

Signatures

For the Government of Aruba For the European Commission Date: Date:

Executive summary Aruba experienced stable -driven growth since it obtained the status of an autonomous country within the Kingdom of the in 1986. Its economy is dependent on external factors like the economy in the US and the international oil and food prices. The recent international economic crisis led the current government of Aruba to focus more on the diversification of the economy via the establishment of a competitive investment climate conducive to entrepreneurship and a knowledge economy leading to innovation and sustainable economic development. A dynamic, modern and sustainable education system is considered by the government of Aruba as key in the delivery of the economy described above. The rate at which the Aruban population increased in the last 25 years put pressure on the educational system, public health care and the environment. A revamped educational situation should give the same opportunities to all members of the community and contribute to the prevention of problems identified in the Aruban society, such as drop outs from school, social exclusion, teenage pregnancy, crime and drug abuse. In 2006 the government of Aruba initiated a participatory process to develop a strategic plan for education. Consequently a strategic National Education Plan for the period 2007-2017 was finalized in 2007. This plan enforces the necessity to have an educational system that will develop a responsible, satisfied, global citizen, who is a life-long learner and contributes to the quality of life of his community. The three priority areas of the Plan are: 1. broader societal support for Education; 2. quality of educator workforce; 3. universal access to education. Through the response strategy the EU will support the implementation of the Aruban National Education Plan. Under the 10th EDF an allocation of EUR 8.8 Million has been reserved for that purpose. EU financial assistance to Aruba will take the form of sector budget support.

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PART A: COOPERATION STRATEGY

1. EU Cooperation Objectives

Part IV of the Treaty on the Functioning of the European Union and Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community (Overseas Association Decision)1 constitutes the legal framework for the relationship between the EU and the overseas countries and territories (OCTs).

According to Article 1 of the Overseas Association Decision, the OCT-EC Association's purpose is to promote the economic and social development of the OCTs and to establish close economic relations between them and the Community as a whole

According to article 15(a) of the OAD, education is a sector of EU-OCT cooperation. Articles 15(a) and 18 (g) of the OAD set out the objectives of possible EU/OCT cooperation in the field of education, which includes support for and the promotion of the optimal development of human resources in the OCT, amongst others through teacher training, improvement of quality of and wider access to education.

2. Assessment of the political, economic, social and environmental situation

2.1. Political Situation

As of 10 October 2010, the Kingdom of the Netherlands consists of four autonomous countries:

o Aruba, o Curacao, o , and o the Netherlands. Previously - the of Curaçao and Sint Maarten were part the autonomous country of the Netherlands , which was dismantled on 10 October 2010. The three other islands which were part of the , i.e. , Saba and , have since then become special municipalities of the Netherlands. All countries within the Kingdom have their own constitution and government, but are linked together through the Kingdom Charter, in which common values and principles of law are enshrined. They have full autonomy over their internal affairs, while the Kingdom is constitutionally responsible for their defence and external affairs. Queen Beatrix of the Netherlands is the constitutional monarch of the four countries of the Kingdom. In Aruba, Curacao and Sint Maarten she is represented by a Governor. Aruba has been an autonomous country within the Kingdom of the Netherlands since the 1st of January 1986. An eight-member Council of Ministers headed by a Prime Minister holds the executive power. The

1 as amended by Decision 2007/249/EC (OJ L 109, 26.4.2007, p. 33). Aruban government is represented in the Hague by a Minister Plenipotentiary, who represents Aruban affairs in the Netherlands and takes part in the deliberations of the Ministerial Council of the Kingdom, composed of the Dutch government and the Ministers Plenipotentiary of the three autonomous countries of Aruba, Curaçao and Sint-Maarten. The Ministerial Council of the Kingdom deals with defense and external affairs. The Aruban government is responsible to a 21-member Parliament, the “Staten”, which is elected every four years in a multi-party system. Aruba has a stable parliamentary system and a history of pacific political elections and transition of power. Aruba’s judicial system, which is based on the Dutch one operates independently of the legislative and the executive. Jurisdiction, including appeal, lies with the Common Court of Justice of Aruba and the Supreme Court of Justice in the Netherlands. Aruba is a member of regional organizations and bodies like the Association of the Caribbean States (since September 2001), the Economic Commission for Latin America and the Caribbean (ECLAC), participates in regional activities of the Caribbean Development and Cooperation Committee (CDCC) and is an observer in the (CARICOM). Aruba sees itself as bridge between the Caribbean, Latin America and the EU. In 2002 Aruba committed to implementing the internationally agreed tax standard2. In that context Aruba committed to conclude bilateral Tax Information Exchange Agreements (TIEA), one of the criteria on the basis of which a jurisdiction is deemed by Global Forum for Transparency and Exchange of Information for Tax Purposes to effectively implement the internationally agreed tax standard. On behalf of Aruba, the Kingdom of the Netherlands concluded TIEAs with countries and jurisdictions in the Caribbean region, North America and Europe3. Within the framework of the EU Savings Directive, Aruba exchanges information automatically about interests payments made by Aruban to residents of the EU Member States. Aruba is a member of the Association of Overseas Countries and Territories of the European Union (OCTA)4. OCTA was formally constituted by the OCTs in 2003 to provide a forum for its members to exchange ideas, to develop effective working relationships as a group with the EU and to defend their collective interests' vis-à-vis the European institutions. Membership of OCTA is open to all OCTs as listed in Annex 1A of the OAD. In 2009 Aruba held the chairmanship of the annual OCTA Ministerial Conference. This body represented at the level of the OCTs' heads of government is responsible for setting out the policy lines, approving the budget and making decisions. It also elects the Chairman of the Ministerial Conference. The daily management is in the hands of the Executive Committee. Work in OCTA has substantially improved the coordination of OCTs and secured linkages and synergies where relevant and possible in the wider regional integration efforts of the OCTs.

2 The internationally agreed tax standard was developed by the OECD and endorsed by G20 Finance Ministers and the UN Committee of Experts on International Cooperation in Tax Matters. It requires exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to a domestic tax interest requirement or bank secrecy for tax purposes. It also provides for extensive safeguards to protect the confidentiality of the information exchanged. 3 For an overview of the Tax Information Exchange Agreements concluded by the Kingdom of the Netherlands on behalf of Aruba, see the Treaty Database of the Dutch Ministry of Foreign Affairs: http://www.minbuza.nl/en/Key_Topics/Treaties/Search_the_Treaty_Database?pagenr=2&action=search&titel=TIEA& titel_zoekmanier=alle_woorden&verdrag_soort=verdrag_alle . 4 The association takes the legal form of a non-profit organisation under Belgian law.

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2.2. Economic Situation

The small scale economy of Aruba relies heavily on developments in the tourism sector, and since the overwhelming majority of tourists come from the , that country is of major importance to the evolution of the economy in Aruba The oil industry in Aruba accounts for approximately 13% of the economy. In the past, the refinery activities used to contribute two percentage points per half annum in terms of nominal economic growth. Economic development and migration are closely linked in Aruba. According to estimates more than 40% of the working population is foreigner. 28% of them work in the hotel and restaurant sector, 20% in commercial services, 16% in wholesale and retail and 15% in the industry. The introduction of a new immigration legislation meant to keep population growth under control has presented challenges for the tourism labor market, by making it difficult to find and keep qualified (foreign) employees. From 2004, the Aruban economy showed an average growth of 2.3%, 2004 being a record year (+ 8.7%). Fiscal deficit was reduced gradually since 2004 (8.9%) and it became a surplus of 1.0 % in 2008. During 2007 and 2008 government debt decreased. In 2009 the global financial crisis proved to be an external shock for the Aruban economy, made vulnerable by its openness and concentration of economic activities. The Aruban economy shrank by 7.6 per cent for three main reasons: 1) a decrease of tourist spending due to the crisis resulted in a decrease in total revenues of the , despite the total number of visitors to Aruba increased by 36,500 (+ 2.6%); 2) the crisis also led to a decrease in the construction field (in particular for new accommodation for the tourism sector)5; 3) the temporary closure of the oil refinery in July 2009 led to layoffs of contractors, fewer investments and decreasing economic activities on the island. Revenues from import duties decreased sharply and a deficit of 3.5 percent resulted. In 2008, the rising food and oil prices had already led to the rate peaking at 9.0 %. With the global financial crisis letting its effects being felt in 2009, the food and oil markets contracted and the reverse operation took place with a deflation of 2.1 % being recorded. For 2011 the foresees recovery of the economy.

5 The slowdown of construction activities is evidenced by the indicator ‘total cements imported’ in the table with 'Selective Macro Economic Indicators'. Table: Selective Macro Economic Indicators Indicator 2004 2005 2006 2007 2008 2009 Mid-year population (X 1,000) 97.7 100.6 102.8 104.0 105.3 107.4 GDP at market prices 3,983 4,159 4,334 4,658 4,996 4,695 (x AWG 1 M.) Real GDP (x AWG 1 M.) 2,915 2,973 3,006 3,048 3,069 2,836 Real GDP growth 8.7 2.0 1.1 1.4 0.7 -7.6 (percentage change) Nominal GDP per capita 40.8 41.3 42.1 44.8 47.5 44.0 (x AWG 1,000) Unemployment rate 9.5 8.8 9.3 7.1 6.9 10.3 Tourist stay over visitors (x 1,000) 728.2 732.5 694.4 772.1 826.8 812.6 Cruise visitors (x 1,000) 576.3 552.8 591.5 481.8 556.1 606.8 Tourism receipts (in AWG M.) 1,883 1,953 1,924 2,242 2,522 2,314 Total cements imported 59,675 88,719 78,413 77,832 67,040 47,746 (x 1.000 kg) Consumer inflation 2.5 3.4 3.6 5.4 9.0 -2.1 (period average) Source: Annual Statistical Digest, 2009, Central Bank Aruba Since 1986 the has a fixed conversion course with 1 USD = 1,79 AWG.

2.3. Social situation

Based on data from the Central Bureau for Statistics’ Aruba had 109,000 inhabitants in mid-2010. Aruba tries to control growth of population in general since it has a very high density. Since the main reason for population growth is immigration, stricter immigration policies kept the increase of population under control in the last 20 years. Main countries of origin of immigrants to Aruba are: the former Netherlands Antilles, the Netherlands, , , the and the USA.

Table: selective social indicators Census LFS LFS Census LFS 1991 1994 1997 2000+ 2007 Population 66,687 78,450 87,720 90,506 104,006 Working population15-64 45,563 55,236 61,366 62,637 73,287 Employment 15-64 28,740 35,743 38,736 41,286 50,967 Unemployment 15-64 1,866 2,492 3,144 3,098 3,089 Economically Active Pop 30,606 38,234 41,880 44,384 54,057 Economically Inactive Pop 14,780 16,931 19,486 17,840 19,230 Employment rate (%) 63.3 64.8 63.1 66.4 69.5 Unemployment rate (%) 6.1 6.5 7.5 7.0 5.7 Participation rate 15-64 (%) 67.4 69.3 68.2 71.3 73.8 Source: CBS Census 1991, 2000; CBS Labor Force Survey (LFS) 1994, 1997, 2007(Provisional).

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The reduction in the construction activity and the temporary closure of the refinery brought increased unemployment. In mid-2009 the minimum business wage was set at AWG. 1.542,90. Young and elder people are the most vulnerable social groups of Aruban society. School drop outs, especially at the lower secondary school level, teenage pregnancy and alcohol and drug abuse were identified as major issues affecting the youth. Although the total offer of Secondary Education in Aruba is diversified and responds to the needs of pupils of different age groups and levels, the number of drop outs in secondary school is alarming. Exact data (analyzed statistics) on the number of drop outs are not available in Aruba, but overall statistics (source: Central Bureau of Statistics 1995-2008) show a considerable decrease of the number of students between the ages of 15 and 19 leaving the school without a diploma. Evening classes (called 'second chance education' in Aruba) are not widespread enough in Aruba and there is a lack of qualified teachers at the local market for all levels. Due to this shortage of local teachers, which cannot entirely be dealt with by the Aruban Teachers Institute, many teachers are recruited from the Netherlands, to work under local conditions in Aruba for a period of three years. Only some of them decide to stay longer, or even permanently. Another factor contributing to the shortage of local teachers is that they there are a number of candidates having the educational level required (e.g. a Masters degree), but lacking the desired pedagogical training and certification. As there is no financial transfer from the Netherlands to Aruba to cover its social affairs, the salary, etc. of all teachers is paid by the country of Aruba. Aruba's ageing population is another source of concern. Between 1991 and 2000 the Aruban population rose by 18%, while the number of people older than 65 and between 55 and 64 year old increased by 53.3% and respectively 55.9%. On the other side the number of young Arubans aged 15-29 and 30-39 old decreased by respectively 4.0% and 8.7%. With the post-war generations reaching retirement age, the social system of pension and health insurance has come under pressure. The extent to which the social assistance for the elder will be able to cope with the increased numbers depends to a large extent on the capacity of the Aruban economy and government to attract foreign skilled personnel.

2.4. Environmental situation

The natural wealth which attracts tourists to Aruba is under threat on a number of fronts. The impact of the oil industry on the environment is felt especially on the south-east side of the island in which air and water pollution were detected. Although most of the sewage is being treated in a sewage water treatment plant, there are still some locations on the island where raw or partially treated sewage is discharged into the sea with negative effect on marine life. There is no selective waste collection and the waste dump adds to water and air pollution. Aruba still needs to implement basic legislation on environment6.

3. Policy agenda of the OCT

In the long term the Government of Aruba wants to develop Aruba as a quality trade mark in the main economic activities, the public sector, the private sector, health care and education. The focus of the current government’s policy is on good governance, fiscal reform, diversification of the economy and capacity building. The Government of Aruba developed an integral action plan

6 Environment Profile Aruba that focuses primarily on proactive damage control as a reaction to the crisis and, secondarily, a number of structural expenditure cuts. This action plan targets major urban renewal and neighborhood enhancement projects including the modernization of the roads network of Aruba. This investment program follows the international trends, functions as an economic stimulus plan for the local economy and improves the competitiveness of Aruba as a tourist destination in the region. Tourism is projected to rise in the coming years, together with investments in tourism facilities, infrastructure and the environment. The National Education Plan (NEP) of Aruba was approved through a participative process with all relevant stakeholders, including e.g. the private sector. As a result, the NEP should be able to fine- tune the schooling system to Aruba's labour needs, in particular in the tourism sector. In 2003 Aruba introduced a revised tax regime fully compliant with the OECD and European guidelines. The offshore tax regime was abolished as well as the tax holiday regime. Aruba introduced a dividend withholding tax at a general rate of 10%. In 2007 the profit tax rate was set at an overall flat rate of 28%, while at the same time investment allowances were abolished. Tax revenue as a percentage of GDP in Aruba is less than 20 percent.7 The main tax sources are the wage tax, profit tax, import duties and the turnover tax (since January 2007). The turnover tax was introduced in combination with a reduction of the wage and profit tax. In this way, the Government of Aruba aimed to shift the balance towards indirect taxes. With the arrival of the new Government, this tax was reduced by half as of 1st of January 2010. The pressure on the fiscal deficit significantly increased but on the other side it resulted in some economic stimulus for the (family) business sector. The relative small fiscal deficit in 2010 at around 2 % of the GDP primarily resulted from a large incidental tax receipt of 211 million. In the absence of incidental receipts, the fiscal deficit is forecasted to increase to around 8 per cent of GDP in 2011, due to a declined tax base in combination with stable expenditures. Consequently, the debt/GDP ratio increased from 46 % in 2009 to 53 % in 2011.An accurate prediction for government finance in 2011 is conditional upon various uncertainties in the real economy and the government’s policies, in particular the reform of the health care and pension funds. As a consequence of the financial crisis the Government of Aruba put in place measures to reduce expenditures by downsizing the public sector (fewer employees and less expenditure for goods and services). The policy of the government in the social sector aims at stimulating the well being of its community. The 'Social Dialogue' mentioned above resulted in a social reform plan with initial agreements on: • Measures to compensate the purchasing power of the lower income groups (minimum wage groups) • Measures to restore investment climate • Measures to recover the old age pension (AOV) • Introduction of a general supplementary pension • Measures to control the costs of the general health insurance (AZV) • Restructure of the government employees’ pension fund (APFA)

7 As noted by the IMF, this is well below the average in Caribbean which is around 24 %.

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Aruba's environmental policy aims at promoting harmonious economic development while at the same time focusing on environmental protection. The objective of environmentally sound and sustainable economic development requires an integrated and multi-disciplinary approach. Expansion and updating of the environmental legislation is anticipated in order to provide a regulatory framework to implement environmental policy. The Government of Aruba adopted the principle of the "polluter pays". In the interest of conserving a clean and healthy environment it makes sense to invest in the prevention of pollution rather than to pay later for the consequences of pollution. In this regard incentives and facilities that encourage environmental investments are considered of significant importance, such as the promotion of energy efficiency and conservation, the use of environmentally friendly products and efficient waste management. Aruba's Government is committed to stimulate the use of alternative energy. 10 wind mills are already providing 18% of Aruba's electricity consumption. Import duties for alternative energy equipment were reduced to 2% in January 2011. Aruba aims to have 40% of electricity consumption from nonfuel by 2025. The government recently implemented a monitoring system for air and water. The necessary equipment and training for personnel was financed by the funds available through co-financing between the Government of the Netherlands and the Government of Aruba. These measures will help to align the local situation with international standards and will be used for the development of the environmental policy and laws. Developing capacity is a key objective of the Government of Aruba, who sees education as a crucial lever in the pursuit of its goal to establish a knowledge economy. In light of this, the Government approved a National Education Plan (NEP) in August 2007. Through a participatory process with all relevant stakeholders, teachers, parents, students, school boards and the private sector, an analysis of the bottlenecks in Aruba's educational system was carried out and a vision for 2017 was determined following several conferences and the work of focus groups for over a year. The plan was endorsed by the Parliament in February 2009. National education takes the largest percentage (21%) of the total national budget expenditures (AWG. 1,300 M). The education budget is divided in two main sections: personnel and non- personnel expenses. The first section covers Salaries and Wages and Fringe benefits (83% of the education budget), while the second section referred to as budget for Goods and Services involves expenses pertaining to the physical infrastructure (operations and maintenance) including school supplies (17% of the education budget). The National Education Plan 2007-2017 incorporates policies aiming at improvements in the institutional capacity, the quality of educator workforce, awareness of family and community to support children and youth in their education, school responsibility and accountability, infrastructure and facilities. With the implementation of the National Education Plan the Government of Aruba aims to increase the educational level of the population through innovation and improvements in the educational system. Improved access to modern and quality education is expected to supply the new generations with the necessary tools to participate actively in the economy of the island and encourage the youth to participate in healthy activities. The overall objective of this policy is to enhance the educational system in Aruba in order to increase the students' possibilities to participate in the dynamic changing world. The Vision for 2017 is to create “responsible, satisfied global citizen, who is a life-long learner and contributes to the community’s quality of life”. In this way, the government aims to create new economic opportunities which will improve the social situation of the community. The government of Aruba realizes that in order to be able to compete in the world and achieve a sustainable economic development the population should benefit of an educational system that enables them to join actively in the work force. This will improve the living conditions of the population and give opportunities to the poor. Strengthening conditions for universal access to school in combination with a qualified educator workforce will make education more attractive, and contribute to a higher enrollment and completion rate, thus empowering the youth to participate in the economic development of the island. Moreover, a more active communication, mutual interest and participation between private sector and schools would constitute part of a response in order to fine-tune the schooling system to Aruba's labor needs, in particular in the tourism sector. In the international arena the government’s policy consists in becoming more active in the region and to comply with international standards regarding fiscal legislation and regulations such as the ones of the Global Forum on Transparency and Exchange of Information for Tax Purposes. In Europe, Aruba wants to strengthen its bounds with its two key partners, the Kingdom of the Netherlands on the one hand and the European Union on the other. The Government of Aruba is currently working on a strategy for the Kingdom of the Netherlands and has taken a more active interest in the activities of the European Union. Thus, Aruba has expressed an interest in voluntarily adopting parts of the EU acquis.

4. Assessment of past and ongoing EU cooperation

There was no allocation from the 9th EDF for Aruba, due to the important backlog from previous EDFs, but funds from 8th EDF were carried over to the 9th EDF and Aruba benefited from a reallocation of funds following the 9th EDF Mid-Term Review. The total amounted to EUR 9.8 million. Two projects were financed: the National Park Arikok and the National Museum. The overall objective pursued under these projects was to promote development in Aruba, dedicating specific attention to the integration of tourism into social, cultural and economic life in a manner that is sustainable and in harmony with the environment. The projects focused on (a) environmental conservation and (b) the preservation of the cultural heritage. The Government of Aruba placed great emphasis on improving its tourist product by developing more local attractions, thus actively contributing to sustainable growth of the tourism sector. The projects were successfully completed. Aruba became eligible for budget support under the 10th EDF. In terms of regional cooperation, Aruba collaborates with all other OCTs in the Caribbean, neighboring ACP’s and EU Outermost Regions through the different EC/OCT Regional Programmes, such as: “Strengthening the Integration of the British & Dutch OCTs in the Regional Response to HIV/AIDS through PANCAP”, “Regional Risk Reduction Initiative (R3I) (Disaster Management)” and “Strengthening the development of Small and Medium Enterprises of the British & Dutch OCTs in the Caribbean Region” projects. Aruba is interested in participating more actively in the EU Horizontal Programmes and Budget Lines for which the OCTs are eligible under the Overseas Association Decision; for instance as the 7th Framework Programme for Research and Technological Development, life long learning or Erasmus Mundus and has in that respect been arguing in favour of dedicated training sessions and seminars specifically targeting OCTs. The possibility to create synergies between EU financial

Page 13 of 25 Single Programming Document of Aruba under the 10th European Development Fund assistance to OCTs and funding possibilities under the above mentioned horizontal programmes, in particular the 7th Framework Programme was examined at the OCT/EU Forum which took place in March 2010. Aruba did not benefit of EIB loans since the time of the 6th EDF. The only donor other than the EU which has lately contributed to Aruba with substantial financing assistance are the Netherlands through the Fund for Development of Aruba (Fondo Desaroyo Aruba – FDA). Dutch aid is being phased out and currently most of the funds present in the FDA are funds from the Aruban Government. Details on Dutch cooperation and complementarity with EU and Government funding, in particular in the field of education, as well as donor coordination mechanisms are detailed in Part B of the present document. The FDA made the Logical Framework Approach and Project Cycle Management well known and they are currently applied by Government institutions in Aruba for all projects. It was acknowledged that the application of this methodology led to efficient implementation of projects.

5. Response strategy

Acknowledging the correspondence between the objectives of the National Education Plan and the commitment of the EU to support the OCTs in education (Art 15) and human resource development (Art 18) in the Overseas Association Decision, the EU intends to support the implementation of the Government of Aruba in the Education Sector by making available the entire 10th EDF allocation of 8.8 million EUR. The EU will follow the priorities of the Government of Aruba and namely universal access to education, quality improvement of educator workforce and a broader societal support for education with special emphasis of quality issues, education management and monitoring system societal support and public finance management. This intervention is expected to be complementary with the budget foreseen by the Government of Aruba for the education sector as well as the support offered by the Netherlands and Aruba through the Development Fund for Aruba (FDA). The assessments made by the European Commission concluded that Aruba has sound Public Finance Management systems, sufficient macroeconomic stability and potential capacity to successfully implement its policies while EU support will be a catalyst for a faster and more efficient implementation of the ambitious goals of the National Education Plan. Part B of this document explains in more detail that the Commission has assessed the eligibility criteria for sector budget support for Aruba and confirms that it considers Aruba eligible. The implementing institution is the Department of Education that developed an internal performance management framework with assistance from an EU-funded expert. The European Commission will monitor the evolution of pre-agreed performance indicators in the education sector as well as a number of specific public finance management improvement measures. Special emphasis will be placed on quality issues (teacher qualification, completion rates), improvement of the education management and monitoring system (in order to steer more efficient decision making processes and allocation of resources) as well as improvements in societal support (involvement of all major stakeholders in the education system). The arrangements for the measurement of the impact of the proposed programme and visibility measures are described in the relevant sections of Part B of the present SPD.

PART B : IMPLEMENTATION

1. Identification

SPSP Budget Support towards the implementation of the Title/Number National Education Plan 2007-17 Aruba - CRIS # DEC - FED/2011/ 023-008 EUR 8,8 million (EDF contribution) Total cost

Aid method / Sector Policy Support Programme/ Method of implementation Sector budget support (centralised management) Education policy and DAC-code 11110 Sector: administrative management

2. Rationale and country context

2.1. Country context and rationale for SPSP 2.1.1. Economic and social situation and poverty analysis Aruba is among the most developed islands in the Caribbean. Since 1986 it made impressive gains in per capita GDP (AWG 47.500 in 2008) thanks mostly to the expenditure of tourists coming from the United States. 2009 was preceded by a few years of modest real GDP growth and increasing inflation, especially in food and housing. The introduction of the business turn-over tax in order to cover government expenditures in 2007 was one of the main factors causing inflation.The drop in tourism caused by the 2008 financial crisis in the US led to a contraction of the real GDP by 7.6 percent in 2009. Construction activities in the tourism sector were put on hold and the refining activities of the Valero refinery temporarily stopped. The unemployment rate increased from 6.9 percent in 2008 to 11.3 percent in 2010. In this context, social problems on the island aggravated. The Aruban economy is slowly recovering. Tourism is picking up, and Aruba’s oil refinery is expected to reopen in 2011. Monetary policy should remain accommodative in the short-term, but it might have to react rapidly once the demand for private sector credit recovers. Fiscal challenges remain serious. In the 2010 budget the government presented a medium-term deficit-tracking path, envisaging a reduction of the deficit by around 1.5 percentage points per year in 2012-2014. 2.1.2. National development policy A new Government run by the former opposition party was formed following September 2009 elections. Priorities of the new Government are outlined in the Government Programme 2009-2013. The new administration developed an integral action plan that focuses primarily on major urban renewal and neighborhood enhancement projects as well as some structural expenditure cuts. Tourism on the island is expected to grow in the coming years thanks to the US recovery together with additional investments in tourism facilities and infrastructure. Within the framework of the Social Dialogue the government has taken the necessary

- 15 - Single Programming Document of Aruba under the 10th European Development Fund measures in order to upgrade the purchasing power of the population, such as increasing tax allowances. 1.2 billion AWG are foreseen in investments in high-quality tourism facilities, infrastructure and environmental enhancement in 2011 and 2012. Funding is expected mostly from the private sector or through private-public partnerships. On the long term the government’s investment policy is entirely aimed at quality. The government wants to transform Aruba as the island known for the quality of its product. Quality and efficiency should not be normative in the main economic activities, but also within the public sector, the private sector, health care and education. 2.2. Sector context: policies and challenges 2.2.1. Sector context and main features of the National Education Plan The Aruban education system is derived from the Dutch one. It is funded almost entirely by the Government. Both public-run and denominational (predominantly Catholic) education is provided in Aruba. Education is given in Dutch and in Papiamento languages. A legal framework for making school attendance compulsory is in the late stages of development. Participation in mainstream education is at 97 %, however drop out related problems are an increasing problem, in particular as far as secondary education is concerned. In 2006 the Government initiated a participatory process to develop a strategic plan for education. Consequently, in august of 2007, a strategic National Education Plan (NEP) for the period 2007-2017 was finalized, including analysis of bottlenecks, definition of goals, objectives and actions. It was supported by all major political parties and endorsed by the Aruban parliament in February 2009. The actual educational policy of the Government consists of, on one side maintenance of infrastructure and optimization of educational supplies, on the other side the modernization of the whole education system through implementation of the NEP. Following the adoption of the Government Program 2009 – 2013, the Ministry of Education and Justice prioritized 3 areas in the implementation of the NEP for the next 3 years: o Broader support for Education; o Strengthening the quality of the educator workforce; o Strengthening the universal access to education. 2.2.2. Educational sector budget and its medium term financial perspectives Aruba's GDP was 4,695 M AWG in 2009. The total budget of the Government of Aruba was 1,290M AWG for the 2010. From this budget, 18% is directly allocated to the national education system (235 M AWG in 2010). The Government of Aruba allocated 3,8% of Aruba’s GDP to the education system in 2007 and increased it to 4,7% in 2009. The educational budget increased by approximately 9% every year in the past 4 years. The Government of Aruba is committed not to cut educational budget in the period 2009-2013 even in case of worsened budgetary constraints. In 2010 funds were allocated in the following way: o 38% for secondary education (includes funds for Second Chance education); o 34% for primary education (including special education); o 19% for the supporting departments (Department of Education and Bureau of the Ministry of Education); o 9% for higher education The increase of the budget relates mostly to the budgetary component Salary and Wages. Investments planned for the fiscal year 2010 consist of 9 M AWG for the primary and secondary education system. Increases in the sector budget go mostly to hiring and upgrading of educators, administrative staff and professionals that are in the Internal Care Structure supporting the education system. The projected average annual growth of the budget through 2013 is about 5% each year8. This increase will mostly concern the primary (8%) and secondary education (5%). It is foreseen that the budget for supporting structures will not grow substantially in the coming 3 years (2%). The short to medium-term perspective for the education budget is to accomplish visible improvement of the overall quality of the national education system taking the following preliminary actions in order to: o Urgently improve the physical education infrastructure; o Give priority to investment in primary and secondary education improving the current educational preparation process (strengthening pedagogical structure); o Evaluate the implemented innovation projects in the secondary education system in order to use the “lessons learnt” for the implementation of the NEP (strengthening Ministry of Education towards quality education realization); o Transform the Department of Education (DoE) into an agile, creative, competent and relevant educational partner that has the trust of the stakeholders and the community as a whole; o Introduce structural evaluation and monitoring systems to gather data and to introduce principles of accountability within school management; o Invest in the decentralization of the current secondary school (HAVO/VWO) by building a second school (strengthening infrastructural structure); o Legislative initiatives in research and knowledge development. Total investment from the 2010 budget to contribute to the actions mentioned above is 36,7M AWG in 2010. The Fund for Development of Aruba (established with contributions from the Netherlands and the Aruban governments) provides 30M AWG while the Governmental budget reserved the remaining 6,7 M AWG.

2.3. Coordination between Government of Aruba and development partners

The executive branch of the Ministry of Education and Justice (MINJO), the Department of Education (DoE) is coordinating the implementation of the NEP, including funds from different sources avoiding duplications and ensuring complementarity (currently Aruba receives external funding only from the EDF and the Netherlands). The DoE together with the Ministry of Finance, Communication, Utilities and Energy is responsible for the financial administration following the national procurement and financial regulations.

8 In the previous year’s 2008-2010 the increase versus previous years in % was respectively: 10,6%, 10,1% and 6,5%.

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2.4. Assessment of the institutional capacity

The Department of Education (DoE) of Aruba is managing and monitoring the implementation of the priorities of the NEP. The DoE is the executive branch of the Bureau of the Minister of the Ministry of Justice and Education (MINJO9). A review of the NEP by the DoE took place in 2010. Institutional capacity in the implementing institution, the DoE, is one of the main issues identified, in particular: a) A special unit dealing with the National Education Plan has been established, in order to guarantee an efficient implementation of the NEP as well as statistics delivery. Key issues to be addressed on short term are staffing and software implementation; b) The implementation of a renewed Human Resources policy; c) design of a language teaching policy; d) Implementation of 'caring supportive measures' including for school drop outs in addition to existing primary and secondary school care systems; e) Investments in quality education: in control of internal performance improvements, statistics, training needs and teacher education, curriculum and general education improvement measures; f) Improving the overall educational management system: more efficiency with less budget; g) Development/improvement of a Performance Management Framework; h) Implementation of the Education Management Information System (EMIS). The Commission has assessed that the Department of Education has sufficient capacity to implement the National Education Plan. The main reasons leading to delays in the start up of the implementation are that some vacancies were not filled and insufficient budget for investments in the sector.

2.5. Performance monitoring

Although the NEP is being implemented since early 2009, monitoring and reporting of performance was not dealt with sufficiently in the initial phase of the implementation. This was identified as an area to be strengthened and an overall framework for performance monitoring for the implementation of the education sector policy has been developed. The monitoring system follows a 'logical framework' approach. Other performance monitoring measures foreseen to improve the NEP consist of: a) The division of Research & Statistics of the DoE, in cooperation with installed capacities of the CBS, will update their data processing and monitoring practices. b) Preparations are ongoing for the installation of an E(ducation) M(anagement) I(nformation) S(ystem) towards the end of 2011 (could possibly be advanced in time) in order to provide an information platform to support educational analysis, planning, policy, and decision-making functions of the educational management system. c) The introduction of a national student tracking (management) system.

2.6. Macro-economic framework

The sectors that mostly contribute to the GDP are tourism (70%) and oil (13%). In 2009, the tourism sector was severely affected by the global financial crisis. Considering that the vast majority of tourists (65% in 2009) come from the United States, the assumption of an US

9 Before jan.2010 it was called: Onderwijs, Sociale Zaken en Infrastructuur/OSZI, since than its abbreviation is MINJO (Ministerie van Justitie en Onderwijs). recovery leads to a potential positive trend in the GDP forecast for 2011. Although the importance of the Valero refinery for the Aruban economy is not as prominent as that of the tourism sector, its temporary closure in June 2009 affected the real GDP and other economic variables such as unemployment negatively in 2009. The government sees possibilities for cuts in government spending, in particular by reorganizing government tasks, lowering the public wage bill and taking action to reduce government transfers to the AZV (general health insurance). As far as revenues are concerned, the new government introduced taxes for the hotel and oil industries. As part of the announced economic stimulus plan, the government reduced the turnover tax by half from January 2010. This measure was deemed necessary as to improve the purchasing power of the citizens and provide an incentive for investment for businesses. Shortly after taking office the government settled a dragging fiscal dispute with the refinery with the consequence of a reduced fiscal deficit in 2010. By limiting expenditure costs on personnel (+0.9% compared to 2009) and goods and services (-2.4% compared to 2009), public deficit was kept at 3% of the GDP. Excise duties on alcohol and tobacco and import duties on luxury goods have increased effective January 1, 2011. In the absence of incidental receipts and structural measures, the fiscal deficit was forecasted to increase in 2011. The Government of Aruba relies that, as a consequence of the stimulus to the real economy provided by the elimination of the sales tax, higher government revenues from 2012 onwards will reduce the fiscal deficit. Following a new 'social dialogue' the retirement age is raised to 60 years and a Supplementary General Pension will be established from 2012 for every employee in Aruba that does not have a public pension scheme.

2.7. Public Financial Management

The Commission assessed the Public Finance Management system in 2008 and again in 2010. Both assessments concluded that the PFM system in Aruba is of reasonable quality and pointed out a number of issues that are planned to be tackled by the Government of Aruba which will be monitored yearly by the Commission. The Aruban PFM system scores fairly well on credibility of the budget, comprehensiveness and transparency. It has effective cash and debt management and effective commitment controls ensuring sufficient liquidity during the execution of the budget. The pay roll is the largest item of expenditures and this is fairly well-controlled. Although the legal and regulatory framework for public procurement is extensive, the unjustified use of exemptions diminishes its credibility. While efforts have been made to recover the backlog, the financial accounts are not prepared within the legal deadline of 6 months after the end of the fiscal year.. Ex ante scrutiny of the annual budget law is taken very seriously by Parliament but the ex post scrutiny of financial operations of the Government of Aruba by both the external auditor and the Parliament is weak partially caused the delay in drafting annual financial accounts. Political ambiguity and lack of expertise seem to be at the root of the problem. The new Parliament that entered office in 2009 has recognized the issue and it has made clearance of the backlog of unapproved financial accounts a priority.

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2.8. Eligibility for budget support

The Commission has assessed the eligibility criteria for budget support and confirms that it considers Aruba eligible. a) With the National Education Plan 2007-2017 a defined sector policy is in place. The NEP is fully integrated in the Government Programme 2009-2013 b) The assessment made by the Commission confirms that despite the recent economic downturn in Aruba, the Government of Aruba has maintained macro-economic stability, while the Aruban Central Bank has maintained monetary stability. With a positive GDP growth forecast for 2011 and following years, the Commission expects that the Government of Aruba will maintain this stability and therefore maintains its eligibility. c) Following its latest assessment of PFM in 2010, the Commission has agreed specific improvement activities with the Government of Aruba. Therefore the Commission can confirm that the PFM eligibility criterion has been met and that a monitoring framework exists for the period of the programme.

2.9. Lessons learnt

The Government of Aruba decided to introduce the successful project cycle methodology used by the Fund for Development of Aruba within the Department of Education for implementation of activities related to the implementation of the National Education Policy. An evaluation of EDF programmes for all OCTs is completed. Results of this evaluation indicate that long delays were frequent during the preparation of EU funded projects, especially when the project had infrastructure components. This conclusion is also valid for Aruba. The use of budget support in other OCT's resulted in less delays in the preparation and implementation of EU funded programmes. Budget support is therefore chosen for the 10th EDF programme for Aruba. The EC co-operation with Aruba through the years has been used to strengthen the economic development through the support of the main economic pillar, tourism. During the 9th EDF two projects were financed, which are the National Park Arikok and the National Museum. Although ultimately successful both projects required long preparations and had to be adjusted during their implementation increasing their budget, increasing the counterpart funding from the government or reducing the scope of some activities.

2.10. Complementary actions

In terms of regional cooperation, Aruba collaborates with all other OCTs in the Caribbean, neighboring ACP’s and EU Outermost Regions through the EC/OCT Regional Programme “Strengthening the Integration of the British & Dutch OCTs in the Regional Response to HIV/AIDS through PANCAP”. Aruba received assistance from the Netherlands in sectors such as good governance, health, education, social sector, sustainable economic development and national security. The Dutch Development Cooperation switched from project financing to programme approach since 2000. The Netherlands have agreed with the Aruban Government that funds from both sources would be deposited into the Fund for Development of Aruba (FDA) in yearly installments based on annual plans. Most funds currently placed in the FDA are Aruban. One of the objectives of the FDA funds is to increase the development capacity of the Aruban community and the efficiency of education. FDA funds are being used for strengthening institutional capacity and performance management in the educational sector by financing workshops and seminars, conferences and training abroad. FDA Projects effectively earmark higher education, teacher training, education programs for special groups, adult education and the construction of a second high school for the HAVO/VWO students. Educational institutions propose specific projects together with the Department of Education and submit the project proposals to the FDA through the Department of Economic Affairs, Commerce and Industry (DEACI) This Department functions also as the EU TAO office. Therefore DEACI plays a pivotal role in coordinating funds from different sources avoiding duplications and ensuring complementarity. No new commitments from the Government of the Netherlands are expected but the implementation of the current programme will to run until 2012. An UNESCO grant of approximately 50.000 USD was offered for participation at the EMIS schooling project for the DoE in Paris, the UNESCO bibliography and teacher training on ICT was offered ad-hoc. NGO support to Aruba's education is minimal. Aruba does not receive any other contributions from other donors.

2.11. Donor coordination

The EU is now the only major remaining donor in Aruba. Coordination within the sector is ensured by the sole implementing institution, the Department of Education while overall coordination is managed by the Department of Economic Affairs, Commerce and Industry, that functions also as the TAO office. The National Education Plan remains the overall policy of the Government of Aruba for education and the various actions will be financed by the (temporized) Dutch cooperation program 2006-2009 (expected to be implemented until 2012), and the government budget (including 10th EDF contribution). 3. Description 3.1. Objectives The overall objective of the programme is to support the Government of Aruba in the implementation of its National Education Plan (NEP), providing additional resources to carry out the main policy priorities and contribute to create “a responsible, satisfied global citizen, who is a life-long learner and contributes to the community’s quality of life” The purpose is to support three priority areas of the NEP: Universal access to education, quality improvement of educator workforce and a broader societal support for education. The Commission will monitor these priorities in the framework of this programme with special emphasis on quality issues (completion rates of secondary education and improvement of teacher's qualification will be monitored). Improvements of the education management and monitoring system will allow for more efficient decision making processes and allocation of resources. The programme will contribute to improvements in societal support and public finance management.. 3.2. Expected results For each of the three main priority areas, the results are:

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a) Universal access to education Improve access to school and learning and quality education at all levels of education having relevant legislation (e.g. law for obligatory education) and support structures in place (student care and special education systems and structures). b) Quality improvement of educator workforce Improve and maintain a qualified staff of educational personnel operating the education system, supported by a qualified and well functioning Department of Education. c) A broader societal support for education Restructuring the DoE to enhance efficiency, effectiveness of the department and to present itself as a trusted partner within the education system; Develop a partnership between the educational and private (civic) sector by harnessing and strengthening the relationship with partners in education to establish and maintain positive modalities of cooperation. The main activities will cover policy dialogue related to the objectives set and results in the education sector and improvements in public finance management, monitoring of conditions for disbursement and the actual provision of funds against performance. 3.3. Risks and assumptions As far as the implementation of the programme is concerned, the risks identified are: o Possible decrease in sector funding from the Government; o A Performance Monitoring System that is designed but not implemented; o Constraints in the capacity of the Aruban administration to implement the NEP; o Widening of the public deficit due to external or internal factors; o Slow implementation of the PFM improvement plan. However, the commitment made by the government of Aruba to the objectives of this programme and its financial support will translate in an increased attention towards efficient implementation of the NEP and the PFM measures agreed. Specific mitigating measures to the risks outlined above are: o the commitment of the Government to maintain the level of funding to the sector also in case of worsening economic circumstances; o the implementation of the Education Management Information System and active implementation of the performance monitoring system. It will be regularly monitored by the Commission; o the staffing issues within the Aruban administration are currently being addressed. A reorganization of the DoE is already taking place; o the commitment from all Aruban authorities to implement the PFM improvement plan. The awareness that budget support tranches are at risk if one of the three eligibility conditions is not met acts as a stimulus for Aruba to commit towards achievements. 3.4. Stakeholders The Ministry of Justice and Education , by means of the Bureau of the Minister and the executive branch, the Dartment of Education, provides strategic leadership. Highly participative structures are foreseen as part of the Broader Society. National Education Plan Advisory and Implementation councils are foreseen, with operational participation of the NGO and civil society sector, the Department of Education, the Inspectorate, , the school boards, and public schools (government schools) and support from the University of Aruba. 3.5. Crosscutting Issues An environmental profile of Aruba has been made. Gender attention is imminent in the National Education Plan, as well as under Fund for the Development of Aruba project execution. Both have a special focus on good governance, accountability and human rights maintenance. As far as good governance and accountability are concerned, the programme will support the improvement of the provided statistical data in the sector of education and the implementation of an internal performance management system for the implementation of the programme managed by the Department of Education. 4. Implementation issues 4.1. Method of implementation Direct centralized management. Sector budget support towards implementation of the National Education Plan 2007-2017. Out of the total budget of the programme/EDF contribution (EUR 8,800,000), EUR 400,000 will be set aside for monitoring, audit, evaluation and contingencies. The Territorial Authorizing Officer (TAO) has the overall responsibility for the implementation of the programme and has a coordinating role with the other parties involved (Department of Education, Ministry of Finance). 4.2. Procurement and grant award procedures All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by the Financial Regulations applicable to the 10th EDF. Neither grants nor programme estimates are foreseen. 4.3. Budget and calendar

Category breakdown: EU Contribution:

1.Sector Budget Support € 8.400.000

2.Monitoring, evaluations, audit € 200.000

3.Contingencies € 200.000

TOTAL € 8.800.000

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Proposed schedule of payments for the sector budget support: Fixed Variable Disbursement date foreseen for F&V Year Total Tranche tranche tranches (if FA is signed in Q3 2011): Y1 €2.000.000 € 0 €2.000.000 Q4 2011 Y2 €1.200.000 €2.000.000 €3.200.000 Q4 2012 Y3 €1.200.000 €2.000.000 €3.200.000 Q4 2013 Total: €4,400.000 €4.000.000 €8.400.000 Monitoring, audit, contingencies € 400.000 Variable tranches will only be foreseen in year 2 and 3. Foreseen operational duration is 36 month from signature of Financing Agreement. 4.4. Performance monitoring and criteria for disbursement The Territorial Authorizing Officer (TAO) is responsible for submitting monitoring reports on the progress made in the implementation of the general conditions, including the submission of analytical data, statistics, contracts, reports or any other documents necessary to assess whether the benchmarks of the individual indicators have been met, in order to facilitate the Commission decision on the release of the funds. For data gathering the TAO will liaise on a regular basis with the responsible Aruban institutions. More specifically, the TAO will submit in 2011, 2012 and 2013 (not later than 4 months before the following tranche is due) reports regarding the fulfilment of the general conditions (implementation of PFM reform and economic policy oriented towards macro-economic stability) as well as on the implementation of the National Education Plan during the previous 12 months. Joint reviews are conducted by the Government of Aruba, the representative of the EC Delegation and key sector stakeholders. An annual review meeting needs to take place at least 1 month after the submission of the report of the TAO and at least 1 month before the following tranche is due. Ad-hoc meetings will be organized whenever needed. 4.5. General conditions for disbursement of all tranches The conditions for disbursement of all tranches are: o A stability orientated macroeconomic policy is in place allowing for the continued use of budget support. o Satisfactory progress in the implementation of the National Education Plan o Satisfactory progress in the management of Public Finances. In order to measure progress in PFM, specific criteria have been agreed by the Government of Aruba and the Commission. For the disbursement of variable tranches , specific indicators have been agreed with the Government of Aruba in the fields of: quality (teacher training), access to education (enrolment rate), completion of education and therefore a reduction in drop-outs as well as the improvement of the education management system. 4.6. Evaluation An evaluation on the performance of the Sector Budget Support Programme may be conducted in the middle and/or at the end of the operational period of the programme. 4.7. Communication and visibility A joint press conference will be held by the TAO and the Delegation on the occasion of the signature of the Financing Agreement. The strategy for the communication will further include the regular issuing of press-releases against the achievements of significant milestones. All the materials (reports, signs, communications and press-releases) produced will respect the visibility guidelines from the European Commission. Signature of the relevant documents, education campaigns, joint annual reviews and events organized in the framework of the NEP implementation will be opportunities for visibility for the EU-Aruba cooperation.

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